Brics PCG: 'Buy' Bank of Baroda

Brics PCG recommends 'Buy' on Bank of Baroda at Rs 220 with a target price of Rs 270.

The bank has posted better results than expected. However growth in operating performance was not reflected in the growth in the net profit due to higher provisioning requirements.

Going forward, the bank's profitability is expected to improve due to strong asset growth, de-risked investment portfolio, and higher proportion of CASA deposits