Bank of Baroda may post 11.9% growth in profit

Public sector lender Bank of Baroda is expected to report a 11.9 percent growth in profit Rs 282.6 crore for December quarter compared to Rs 252.7 crore in same quarter last year. Sequentially, however, it may fall 20.5 percent.
Net interest income is seen rising 19.5 percent year-on-year and 0.7 percent quarter-on-quarter to Rs 3,745.3 crore for quarter ended December 2017, according to average of estimates of analysts polled by CNBC-TV18.


Key things to watch
Analysts said if slippages come below Rs 3,500 crore (against Rs 3,451 crore in Q2FY18), gross non-performing assets improve (from 11.16 percent), and domestic net interest margin above 2.65 percent (2.68 percent) then that would be taken positively by the Street.
Provision expenses could increase due to ageing of NPAs while low cost deposit flow may remain strong aiding in controlling the cost of funds.
The Street will be keenly watching for operating profit growth (i.e. operating profit growth ex-treasury).
Exposure to 2nd list of National Company Law Tribunal cases and provisions thereof, and management commentary to capitalising on non-core asset sale will be seen closely.

Source - Moneycontrol
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