HSBC has maintained a Hold rating on Bank of Baroda, with a target price of ₹270, indicating a potential upside of approximately 13% from the current market price of ₹239.00.
Key Insights from HSBC’s Report
- Better-than-Expected Quarter: HSBC noted that Bank of Baroda had a stronger-than-anticipated Q2, driven by high non-core income, which offset pressure from Net Interest Margins (NIMs), fee income, and ad hoc provisions.
- Stable Asset Quality: The bank’s asset quality remained stable during the quarter, adding resilience in a challenging environment.
- Outlook for FY25-27: HSBC expects stable operating profitability for Bank of Baroda over the next few years, although normalizing credit costs may impact Return on Assets (RoA).
- EPS Growth Outlook: The earnings per share (EPS) growth outlook remains muted, with HSBC taking a cautious stance on future profitability.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should consult their financial advisors before making investment decisions.
