Brokerage advises purchasing this PSU bank stock, which has returned 165% over the last two years; be aware of the target price.

BoB’s balance sheet growth remained steady, according to the ICICI Securities research, with advances driven by retail loans expanding 12.5% YoY and liabilities growing 10.2% YoY due to a greater reliance on bulk deposits. Despite plans to pay retirees a salary settlement of Rs 800 crore, employee spending is still high.

PSU bank stock to purchase:

Because of the fifth phase of the Lok Sabha Elections in 2024, the stock market is closed today, May 20. The first of two special trading sessions on Saturday, May 18, saw modest increases for local market benchmarks Nifty50 and Sensex, driven by buying demand in IT, financial, and energy companies. The special sessions were conducted on Saturday by the NSE and BSE.

In the meantime, government banks have started the fiscal year 2023–24 with record earnings. Twelve banks saw an increase in total profit during this time, reaching Rs 1,42,129 crore. With Rs 18,676 crore, Bank of Baroda (BoB) secured the second place.

Following its financial year 2024 fourth quarter results, brokerage ICICI Securities is optimistic on BoB stock.

The target share price for Bank of Baroda

BoB’s balance sheet growth remained steady, according to the ICICI Securities research, with advances driven by retail loans expanding 12.5% YoY and liabilities growing 10.2% YoY due to a greater reliance on bulk deposits. Despite plans to pay retirees a salary settlement of Rs 800 crore, employee spending is still high.

In Q4FY24, the bank took provisions of Rs 550 crore, which raised credit costs and had an effect on earnings, which increased by 2.3% annually. The GNPA/NNPA ratio fell to 2.92%/0.68 percent, a sequential fall of 16/2 basis points. The management is optimistic about achieving a sufficient recovery because there is a partial government guarantee and 100% provision on the stressed aviation account.

The brokerage states that guidance is unchanged, with a projected growth rate of 12–14% in the future, margins remaining steady at 3.5%, and ROA at 1.1%. The company is currently trading at 1x FY26E ABV, which presents a chance for additional upside.

With a target price of, brokerage ICICI Securities has kept its “buy” rating on Bank of Baroda stock at Each stake is worth Rs 300. This suggests a gain of about 15% over its present value.

BoB shares finished at Rs 262.6 on Saturday, up 1.3% on the BSE.

BoB Q4 revenue
The lender’s net profit for the quarter that ended in March of FY24 increased by more than 2% to Rs 4,886 crore, compared to Rs 4,775 crore during the same time the previous year. The figure was Rs 4,579 crore for the quarter that ended in December of last year.

Comparing the reporting quarter’s net interest income (NII) to the same time last year, it increased 2.3% year over year to Rs 11,793 crore from Rs 11,525 crore.
During that time, the lender’s total provisioning fell by more than 8% to Rs 1,302 crore. from Rs 1,421 crore in the same period last year.

History of BSE share prices

The stock has surged more than 34% during the last half-year. It has yielded returns of 45% in a single year and 165% in two years.

Account opning link:

1. Groww Account- https://app.groww.in/v3cO/kyrp1zph
2. Kotak neo Account https://kotaksecurities.ref-r.com/c/i/32531/109103906