On Monday, Bank of Baroda shares experienced a slight decline of 0.8%, despite the bank reporting significant year-on-year growth in deposits and total business. The bank's Q2FY24 figures revealed a deposit growth of 14.63% and a total business increase of 15.88%.
In the period, Bank of Baroda's total advances and deposits rose to Rs 10.25 lakh crore and Rs 12.49 lakh crore respectively. This robust financial performance was also reflected in an impressive net profit surge of 87.7%. Furthermore, the bank managed to decrease its gross non-performing assets from 6.26% to 3.51%.
Morgan Stanley (NYSE:MS) has rated the bank's stock as 'overweight', setting a target price of Rs 235 per share. Over the past six months, the bank's shares have delivered a return of 29.36%.
The bank also saw an increase in domestic CASA (Current Account Savings Account) deposits to Rs 4,23,600 crore. Additionally, it reported year-on-year growth in various loan segments including auto loans (22.1%), home loans (18.4%), personal loans (82.9%), mortgage loans (15.8%), and education loans (20.8%).
Despite these positive indicators, the bank disclosed a gross NPA (Non-Performing Assets) of Rs 34,832 crore, along with a net NPA ratio of 0.78% and a slippage ratio of 1.05%. These figures may have contributed to the slight dip in share prices observed on Monday.
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