Bank of Baroda posts standalone net loss at Rs3,102.34cr in Q4FY18 vs. net profit of Rs154.72cr yoy : Misses Estimates

The bank’s standalone NII stood at Rs4,002.30cr, up 11.74% yoy but down 8.92% qoq.

May 28, 2018 05:05 IST India Infoline Research Team

Bank of Baroda Q4FY18

Standalone Results Q4FY18: ( cr)

Q4FY18 YoY (%)
NII 4,002.30 11.7
NPA (%) 12.3 180
Provisions 6,672.38 154.4
Net Loss (adjusted) 3,102.34 -
***NPA change is bps
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Reco. Price

130

Last updated on

18-May-2018


Bank of Baroda's Q4FY18 standalone revenue has declined by 0.9%% yoy to Rs12,735.2cr. Its NII for the quarter came at Rs4,002.3cr as against Rs3,581.9cr yoy, which has improved by 11.7%. The bank has reported standalone net loss of Rs3,102.3cr, which was below estimates, as against profit of Rs154.7cr reported in corresponding quarter last year. Its GNPA for Q4FY18 stood at 12.26% against 11.31% qoq, which has increased by 95 bps. NNPA for the quarter came at 5.49% against 4.91% qoq, which has increased by 52 bps qoq.
  • Total Advances stood at Rs4.6 lakh cr as at March 31, 2018, which has increased by 12.79% yoy from Rs4.08 lakh cr yoy. 
  • Domestic credit registered yoy growth of 17.97%  to Rs3.5 lakh cr as at March 31, 2018, within which the retail loans growth was 42.44%. 
  • Domestic CASA ratio improved to 41.18% for Q4FY18 from 40.57% qoq and 39.44% yoy.
  • Management sounded positive on the growth prospects, quality of growth achieved thus far, and improved performance of subsidiaries. It indicated that the bank was well positioned both in terms of PCR and capital adequacy moving ahead.
  • Management stated that it expected to achieve 15% CAGR in loan growth going forward, driven primarily by retail loans.
  • In an effort to increase non-interest income growth, the bank has launched a wealth management program and will also look to ramp up in the credit card space.
  • Total deposits stood at Rs5.9 lakh cr as on March 31, 2018 as against Rs6.01cr as at March 31, 2017.  
  • PCR  stood at 67.21% as on March 31, 2018.
  • Capital Adequacy Ratio of the Bank at 12.13% and CET-1 at 9.23%. It has plans for a QIP in FY19E and has Board approval to raise equity capital to the tune of Rs6,000cr.
  • CASA ratio as on March 31, 2018 was 41.18%, up from 39.44% as on March 31, 2017. 
  • Cost-to-income Ratio increased to 53.23% during Q4FY18 from 45.67% during Q4FY17. its CASA ratio stood at 35.8% as of FY18 (domestic CASA ratio of 41.2%). Within term deposits, the bank has increased retail TDs and reduced its large value deposits during FY18.
  • The GNPA and provision divergence for FY18 came at Rs2,919cr and Rs657.5cr respectively, whereas net NPA divergence for FY18 is at Rs2,623cr.
  • The bank, during the quarter, has availed RBI dispensation of NCLT provisioning.
  • The bank's exposure to NCLT List I is Rs7,158cr and NCLT List II is Rs3,830cr respectively.
  • Fresh slippages during the quarter were Rs4,274cr due to RBI's February 12 circular.
  • Corporate GNPLs increased 65% on a sequential basis, however, the MSME, retail and agri segments have all had a reduction in GNPLs in 4QFY18. Of the total slippages, ~80% were from the corporate and SME segments. Slippages came from telecom, food processing, textiles and petro products industries.
  • BoB declared a watch list of Rs10,040cr for FY19E. The watch list includes all SMA-2 accounts (Rs5,500cr as of FY18), stressed SMA-1 accounts and standard S4A accounts.
  • The board has approved fund raising upto Rs10,000cr.

Technical View:

Bank of Baroda ended at Rs. 141.20, up by 2.5 points or 1.8% from its previous closing of Rs. 138.70 on the BSE.
The scrip opened at Rs. 139 and touched a high and low of Rs. 142.60 and Rs. 139 respectively. A total of 1,32,79,819 (NSE+BSE) shares were traded on the counter. The stock traded above its 200 DMA.


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