Bank of Baroda: Reduction in credit costs, loan growth to boost earnings

In Q1, advances and net interest income grew 9.4% and 28.7%, y-o-y, respectively

The Bank of Baroda (BoB) stock, like those many public sector lenders, was under pressure after the bank posted losses in the March quarter. 

However, it has gained 30 per cent from early July on hope that the worst in terms of asset quality might be over for public sector banks (PSBs) and, importantly, its own good performance in the June 2018 quarter (Q1), reported last Friday. With Q1 numbers showing asset quality improvement and pointing to better prospects, many analysts are positive on the bank.

In Q1, advances and net interest income grew 9.4 per cent and 28.7 per