Bank of Baroda (BOB IN) – Q4FY26 Result Update – NIM would hinge on deposit availability – Accumulate
Published on 09 May 2026
BOB saw a stable quarter; adjusted for one-offs core PAT was 2.9% higher due to better fees and other opex. One-offs were: (1) IT refund of INR 10bn incl. in interest income (2) write-back of INR 5.2bn in staff cost due to actuarial impact (3) favorable IT order of INR 12.9bn leading to lower tax and (4) creation of floating provisions INR 15bn. Opex would normalize from Q1’27; we lower opex for FY27/28E by ~3%. Bank raised FY27 loan/deposit guidance by 100bps to 12-14%/10-12%, supported by strong Q4’26 business momentum. As we are cautious on the sector, we lower multiple to 0.9x to 1.0x on Mar’28 ABV and trim TP to INR 290 from INR 300. Retain ‘ACCUMULATE’.
