Bank of Baroda shares jumped more than 2% in morning trade after Citi maintained its Buy call setting a target price of ₹300 per share, indicating a potential upside of 23% from the current price of ₹244.49.
The bank’s global advance growth has surpassed expectations and deposit growth remains solid despite a 1.6% quarter-on-quarter slowdown. Citi estimates the bank’s core net interest margin (NIM) to stay constant, with some pressure from outside markets. Credit costs are expected to remain stable at 50-60 basis points, supported by contained slippages. Additionally, bigger recoveries are likely to boost the bank’s earnings.
As of 10:01 am, Bank of Baroda shares were trading 2.38% higher at Rs 250.90 on the NSE.
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