India's Bank of Baroda to see 12% loan growth over FY25-27, says UBS

Bank of Baroda

04/04/2025 09:40

** Bank of Baroda BOB.NS largely resists sell-off in Nifty PSU Bank index .NIFTYPSU; down 0.7% to 240 rupees

** Stock among smallest losers on NIFTYPSU, which is down ~2%

** UBS upgrades to "buy" from "neutral"; raises TP to 290 rupees from 270 rupees

** Says improving loan growth outlook aiding earnings growth despite bank's poor performance in past quarters on weak net interest income growth

** Expects 12% loan growth over FY25-FY27, with modest net interest margin compression

** Adds BOB corrected 16% in last one year, making its valuations attractive

** Stock rated "buy" on avg; median PT is 272.50 rupees, per data compiled by LSEG

** BOB down 2.7% YTD

 (Reporitng by Nishit Navin)

 ((nishit.navin@thomsonreuters.com;))