Street View - India's Bank of Baroda to rely on loan growth with margins under pressure

Bank of Baroda

11/05/2026 08:43

** Indian state-run lender Bank of Baroda BOB.NS posted on Friday Q4 profit beat aided by 12.9 billion rupees ($135.58 million) tax refund, recoveries from written-off accounts and lower operating expenses

** Shares rise 1.10% to 266.70 rupees to be top gainer on Nifty Bank index .NSEBANK, which is down about 1%

STRONGER LOAN GROWTH MAY HELP OFFSET MARGIN PRESSURE

** Citi ("buy"; TP: 340 rupees) says stronger loan growth guidance and stable asset quality could support earnings growth despite persistent core net interest margin pressure

** CLSA ("outperform"; TP: 335 rupees) expects healthy loan growth and easing stress formation to help offset margin compression in FY27

** Macquarie ("neutral"; TP: 280 rupees) says easing loan yields could continue to pressure margins, limiting earnings growth despite healthy loan expansion

** Morgan Stanley ("underweight"; TP: 225 rupees) says core profitability remains weak despite Q4 beat; sees limited room for return ratios to improve amid macro uncertainty, margin pressure

($1 = 95.1500 Indian rupees)

 (Reporting by Surbhi Misra in Bengaluru)

 ((Surbhi.Misra@thomsonreuters.com |  X: https://twitter.com/SurbhiMisra_  |;))