Bank of Baroda stock rises after quarterly profit jumps 36%

what happened

Bank of Baroda shares traded higher on Monday, with the stock up more than 4% at the open, according to TradingView. The state-run lender reported net profit of Rs 6,532 crore for the September quarter, up from Rs 4,809 crore a year earlier, a rise of 36%.

Other income supported the result, nearly doubling to Rs 6,881 crore. That included Rs 1,340 crore from selling part of its holding in the National Stock Exchange (NSE). Net interest income rose 9% to Rs 13,026 crore, while net interest margin narrowed to 2.74% from 2.96%. Fee income fell 9%, but recoveries on written-off loans jumped 48%.

Nomura kept its Neutral rating but cut its target price to Rs 270 from Rs 280. The brokerage called the quarter strong, noting profit came in 12% above its estimate and core pre-provision profit beat its expectations by 6%. It also said management raised its FY27 credit growth guidance to 13-15%.

why it matters

For investors, part of the growth came from a one-time stake-sale gain rather than lending alone. Still, core pre-provision profit rose 12%, management kept its margin guidance at 2.75-2.95%, and Nomura expects the margin to reach the upper end of that range in the third and fourth quarters. The quality of the growth, not just the headline figure, will shape how the market values the stock.

market impact

Bank of Baroda shares and Indian banks: profit above estimates supports the stock

• ▲Bank of Baroda shares pressure up — profit above analyst estimates supports the stock

tags

instruments