Bank of Baroda (BOB IN) – Q2FY27 Result Update – Incremental loan mix to determine NIM movement – ACCUMULATE
Published on 31 Oct 2026
BOB saw a soft quarter; core PPoP was 8.0% below PLe due to lower domestic loan growth, TWO recovery and higher opex. Loan growth, ex-FCNR was soft at 2.3% QoQ due to muted corporate accretion; RAM growth was decent at 5.5%. FCNR deposits garnered were USD8bn which were retained as a liquidity buffer. Asset quality remains a silver lining with lower net slippages/credit costs. Gain of INR32bn from NSE stake was partly utilized to create prudential provisions of INR13bn which can be utilized against ECL provision requirement in future. As we roll forward to Sep’28 ABV, we tweak multiple to 0.8x from 0.9x but keep TP at INR280. Retain ‘ACCUMULATE’.
