How to trade Baroda Bank after stock earnings fall by more than 2%; key levels of viewing
The shares of Varodata Bank Limited recovered from early losses on Monday after lenders operating in the country reported net profits of 1.9% year-on-year for the quarter ended June (Q1FY26), despite net interest margin pressure pressure (NIMS).
The stock fell as much as 2.33% to Rs 237.70 in early trade, but trade losses were Rs 242.77, down 0.28% of the NSE at 11:48 am. The Nifty 50 fell 0.17% at the same time.
Baroda Q1FY26 Results Highlights
Net profit: Rs 4541 crore, up 1.9% year-on-year (Rs 446 crore)
Net Interest Income (NII): Rs 11,435 crore, down 1.4%
Net interest margin (NIM-domestic): 2.91%, below 3.18%
Slip: Rs 3,476 crore vs Rs 2873 crore (QOQ)
The lender reported a total of 12.6% to Rs 12.07 trillion, retail loans rose 17.5% and home loans rose 16.5%. Corporate loans increased by 4.2% year-on-year.
Baroda Bank’s asset quality
Total NPA: 2.28%, below 2.88%
Net NPA: 0.60%, below 0.69%
Provide coverage: 93.18%
Capital adequacy ratio: 17.19%; CET-1: 17.61%
Brokerage landscape at Baroda Bank
HSBC: Hold, target 240 rupees (up from 230 rupees)
Nomura: Neutral, target 240 rupees (up from 235 rupees)
CLSA: Cumulative target Rs 290 (increased from Rs 270)
Jefferies: Keep, target 255 rupees (up from 245 rupees)
Baroda Bank’s stock has been in range since June, reaching 1.5% age, with a 5% increase in the 50s. The bank has a market capitalization of Rs 1.26 trillion.
