{"id":238,"date":"2019-09-13T12:22:30","date_gmt":"2019-09-13T12:22:30","guid":{"rendered":"http:\/\/www.assetmultiplier.co.in\/blog\/?p=238"},"modified":"2019-09-13T12:26:29","modified_gmt":"2019-09-13T12:26:29","slug":"excerpts-from-an-interview-of-p-s-jayakumar-ceo-bank-of-baroda-with-cnbc-tv18","status":"publish","type":"post","link":"https:\/\/www.assetmultiplier.co.in\/blog\/2019\/09\/13\/excerpts-from-an-interview-of-p-s-jayakumar-ceo-bank-of-baroda-with-cnbc-tv18\/","title":{"rendered":"Excerpts from an interview of P.S.Jayakumar, CEO Bank of Baroda with  CNBC-TV18"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p><strong>Update\non the market: <\/strong>On Thursday, Nifty ended 5 days streak by\nclosing -0.5% at 10,980. Yes Bank,&nbsp;<a href=\"http:\/\/www.financialexpress.com\/auto\/new-cars\/marutisuzuki\/\" target=\"_blank\" rel=\"noreferrer noopener\">Maruti\nSuzuki<\/a>, Tata motors were among the biggest losers.\nIndiabulls Housing finance ltd, Asian paints, Axis bank were the gainers. Among\nsectoral indices Auto (-1.81%), Realty (-0.69%), IT(-0.68%), FMCG(-0.71%)\nclosed lower while PSU banks (0.18%),Pharma (0.18%), Financial services (0.24%)\nended on a positive note.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>Excerpts from an interview of P.S.Jayakumar, CEO Bank of\nBaroda with&nbsp; CNBC-TV18<\/strong><\/p>\n\n\n\n<ul><li>While\nhaving a discussion on amalgamation Mr Jayakumar says 3 things stand out of his\nmind, one is how do they define new business proposition, the second thing is\naround the people integration and the third which is equally important is the\ntechnology integration.<\/li><li>Mr\nJayakumar says, one of the biggest challenge while integrating is to articulate\nnew business model post the merger or amalgamation.<\/li><li>In\nBOB\u2019s case it is about the synergies, the cost structures, cost savings and the\nrevenue pickups that are coming in.<\/li><li>Customers\nare getting the benefit of a larger overseas and product platform.<\/li><li>Mr\nJayakumar says, getting the technology integration is the more difficult task\nbecause it takes much effort and energy to get in line with core banking\nsystems.<\/li><li>Speaking\nabout Products link to repo rate, Mr Jayakumar says that there could be some\nchallenges with respect to margins, because pricing depends on external\nbenchmark.<\/li><li>From\nearnings perspective, if the dilution that happens because of NPA\u2019s is managed\nthan then there is a pick up that is coming.<\/li><li>Further\nadding on margins, he says the consensus view seems to be further decline of 50\nbasis points (bps) in repo rate.<\/li><li>From\na short-term perspective if the treasury portfolio is improved and some\nresolutions that the bank is expecting are passed than the bank will be in\nposition to handle the net interest margins (NIM) <\/li><li>From\na long- term perspective, he believes that the monetary transmission takes\nplace and will not affect the margins of the bank.<\/li><li>Taking\nabout NPA\u2019s Mr Jayakumar says, there are two elements one is slippage number\nand other is recovery number. He says, that the recovery number would start\nmoving up in Q3 and Q4 as the insolvency and bankruptcy code (IBC) process and\nthe changes then on resolves itself.<\/li><li>Speaking\nwith respect to BOB\u2019s portfolio, the bank expects the net NPA as of March to be\nlower than the prior period or prior March and going towards the 3% or sub-3 %\npercent level.<\/li><\/ul>\n\n\n\n<p>Consensus Estimate (Source: market screener website)<\/p>\n\n\n\n<ul><li>The\nclosing price of Bank of Baroda was Rs 96 \/- as of 12th September 2019. It\ntraded at a price to Book Multiple (P\/B) multiple of 0.6x\/0.5x the consensus Book\nvalue estimates for FY20\/21E of Rs 165\/ 179 respectively. <\/li><li>Consensus\ntarget price of Rs 132\/- implies a P\/B multiple of 0.7x on B\/V of Rs 179 for\nthe year ending Mar-21E.<\/li><\/ul>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Update on the market: On Thursday, Nifty ended 5 days streak by closing -0.5% at 10,980. Yes Bank,&nbsp;Maruti Suzuki, Tata motors were among the biggest losers. Indiabulls Housing finance ltd, Asian paints, Axis bank were the gainers. Among sectoral indices Auto (-1.81%), Realty (-0.69%), IT(-0.68%), FMCG(-0.71%) closed lower while PSU banks (0.18%),Pharma (0.18%), Financial services [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/238"}],"collection":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=238"}],"version-history":[{"count":3,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/238\/revisions"}],"predecessor-version":[{"id":241,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/238\/revisions\/241"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=238"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=238"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=238"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}