Bank of Baroda (BOB IN) – Q1FY27 Result Update – Volatile core earnings but attractive valuation – ACCUMULATE
Published on 25 Jul 2026
BOB saw a mixed quarter; core PPoP was a 3% miss as higher core NII (4.6% beat) was offset by 27% miss on fees and 3.9% higher opex. Core reported NIM was stable QoQ at 2.69%. Fee declined by YoY as bank let go of processing/other fees to win high-ticket advances. Bank maintained FY27 guidance of 12-14% credit growth and 10-12% deposit growth. For FY27/28E we raise NIM by 5bps each, trim fee by avg. 10% while since sustainable ECL impact could be ~20bps, we raise FY28 provision by 12bps. Net impact on core PAT is not material. Stock is valued at 0.8x on FY28 ABV; we keep multiple at 0.9x and trim TP to INR 280 from INR 290. Retain ‘ACCUMULATE’.
