Bank Of Baroda Shares Jump As Q4 Business Updates Cheer Investors, Analysts

BOB share price halted the three-session losing streak on Tuesday after the company posted its Q4 business updates.

What Happened: The state-owned bank released its Q4 business updates and also informed about the revision in its MCLR rates. Bank of Baroda total business grew 16.8% year-over-year to ₹21.77 lakh crore. In terms of total business, the company is now only behind the State Bank of India and Punjab National Bank in PSU banks.

Total deposits grew 15% YoY to 12.03 lakh crore in Q4FY23. Total gross advances grew 19% YoY to ₹9.73 lakh crore. Domestic deposits stood at 10.47 lakh crore up 13% from the year-ago period. Domestic gross advances saw a 17% rise at ₹9.73 lakh crore.

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The numbers have impressed global analysts. Citi maintained the ‘buy’ rating for the stock with a price target of ₹210, as it estimates that the company will double its profits in Q4. Morgan Stanley also maintained the ‘overweight’ rating for the stock with a price target of ₹220 – an over 30% upside from the stock’s last closing price of ₹166.20. JP Morgan also maintained its ‘overweight’ rating for the stock with a target price of ₹220.

The lender also increased its interest rates even as RBI paused the rate hikes in the last MPC meeting. The bank raised its Marginal Cost of Funds based Lending Rate (MCLR), which is essentially the rate below which the lender cannot give out loans. Now, the MCLR for a one-year tenure loan will be 8.60% as opposed to the earlier 8.55%.

Price Action: BoB share price was up 3.25% to trade at ₹171.60 in the early hours of trading on Tuesday.

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