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Future Outlook

• We pick BOB to play the PSU banking theme due to its strong growth in both Advances & Deposits on the back of a healthy liquidity position and attractive valuations.

• Lower slippages and improving asset quality with higher provision coverage gives us confidence on the banks ability to leverage it’s strong customer franchise and reach.

• Granular liability profile coupled with competitive cost of funds should in our view help the bank going forward. Loan growth guidance of 15% this fiscal and NNPA guidance of 0.75% provides comfort.

Technical Commentary

• Bank of Baroda has been moving with a higher top higher bottom formation on the weekly chart.

• Besides, it has been sustaining above the 50 EMA on the weekly timeframe. Additionally, the price is trading above the previous consolidation.

• On the higher end, the stock is likely to move towards 250/265. Support is placed at 174.

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