{"id":450,"date":"2019-11-14T10:43:05","date_gmt":"2019-11-14T10:43:05","guid":{"rendered":"http:\/\/www.assetmultiplier.co.in\/blog\/?p=450"},"modified":"2019-11-14T10:47:42","modified_gmt":"2019-11-14T10:47:42","slug":"bank-of-baroda-no-further-slippages","status":"publish","type":"post","link":"https:\/\/www.assetmultiplier.co.in\/blog\/2019\/11\/14\/bank-of-baroda-no-further-slippages\/","title":{"rendered":"Bank of Baroda: No Further Slippages"},"content":{"rendered":"\n<p><strong>Update&nbsp;on the Indian Equity\nMarket:<\/strong><\/p>\n\n\n\n<p>On Wednesday, NIFTY closed -0.6%\nlower. Among sectoral indices, NIFTY media (-4.5%), NIFTY PSU Banks (-3.1%),\nNIFTY Metal (-2.0%), NIFTY Bank (-1.8%), NIFTY PVT Bank (-1.8%) closed lower.\nNone of the NIFTY sectoral Index ended on a positive note. The biggest losers\nwere Yes bank (-5.7%), GAIL (-4.8%), ZEEL (-4.7%), whereas Britannia (+4.9%),\nTCS (+3.7%) and Reliance (+2.9%) ended with gains.<\/p>\n\n\n\n<p><strong>Bank of Baroda: No Further Slippages<\/strong><\/p>\n\n\n\n<p><span style=\"text-decoration: underline;\">Excerpts from an interview of Mr Murali Ramaswami, executive director, Bank of Baroda with CNBC-TV18:<\/span><\/p>\n\n\n\n<ul><li>Speaking about slippages, Mr Ramaswami mentioned that slippages during&nbsp;the&nbsp;last\nquarter were Rs 6,001 cr and 4 accounts constituted 60%-65% of it.<\/li><li>He said&nbsp;there is nothing to worry about as&nbsp;the&nbsp;worst is\nbehind. Bank\u2019s provision coverage ratio is adequate and&nbsp;the&nbsp;operating\nperformance is growing continuously.<\/li><li>In total watch&nbsp;list of Rs 14,500 cr, DHFL is having exposure of Rs\n1,900 cr.<\/li><li>Mr Ramaswami&nbsp;doesn&#8217;t&nbsp;expect any further slippages in&nbsp;the&nbsp;corporate\nbook. About BBB accounts he says, that those are from quite some time with the\nbank and there are no new accounts.<\/li><li>Total exposure to NBFC\u2019s is Rs 1.05 trillion and Rs 97,000 Cr is\noutstanding. One of the groups NBFC have slipped last quarter but as of now none\nof them are showing any sense of overdue.<\/li><li>Out of Rs 97,000cr outstanding,&nbsp;around Rs 10,000 cr is non reputed\nprivate sector.<\/li><li>Speaking about NPA\u2019s he says,&nbsp;Gross NPA has come down from 10.28%\nto 10.25% on a quarterly basis. It will be sub-10% by the end of December\nquarter.<\/li><li>Net Interest Margin stood at 2.81%. Retail growth is primarily driven by\nauto and home loans. The current growth rate for auto and home loan is 16% and\nthe expectation is that it will increase to 20%.<\/li><li>Retail loan, which is around \u20b91.05\ntrillion is expected to rise to \u20b91.3-1.35\ntrillion in this quarter. But overall advances are flat.<\/li><li>Some NBFCS have paid back and the bank didn\u2019t take any additional\nexposure because of stress in that sector.<\/li><li>He added that HR integrations are complete, and the bank has saved \u20b9150 crores in amalgamation profits.<\/li><li>Speaking about MD, he says, that the bank does miss Mr Jayakumar. The\ngovernment has given power to the ED\u2019s to manage the business so there is no\nimpact.<\/li><\/ul>\n\n\n\n<p>Consensus Estimate (Source: market\nscreener website &amp; Investing.com)<\/p>\n\n\n\n<ul><li>The closing price of Bank of Baroda was&nbsp;\u20b9&nbsp;93 \/- as of 13-November-2019. It traded at a price to Book Multiple\n(P\/B) multiple of 0.59x\/0.54x\/0.48x&nbsp;of the consensus&nbsp;book value\nestimates for FY20\/21\/22E of&nbsp;\u20b9&nbsp;157\/172\/192 respectively.&nbsp;<\/li><li>Consensus target price of&nbsp;\u20b9&nbsp;128 \/- implies a P\/B multiple\nof 0.6x on B\/V of&nbsp;\u20b9&nbsp;192 for\nthe year ending Mar-22E.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Update&nbsp;on the Indian Equity Market: On Wednesday, NIFTY closed -0.6% lower. Among sectoral indices, NIFTY media (-4.5%), NIFTY PSU Banks (-3.1%), NIFTY Metal (-2.0%), NIFTY Bank (-1.8%), NIFTY PVT Bank (-1.8%) closed lower. None of the NIFTY sectoral Index ended on a positive note. The biggest losers were Yes bank (-5.7%), GAIL (-4.8%), ZEEL (-4.7%), [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4,160],"tags":[138,19],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/450"}],"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\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=450"}],"version-history":[{"count":2,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/450\/revisions"}],"predecessor-version":[{"id":452,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/450\/revisions\/452"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=450"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=450"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=450"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}