Weak credit growth, dragged by sluggish corporate loan off-take, coupled with muted operating profit and higher slippages may dent the March quarter (Q4FY21) earnings of state-owned lender Bank of Baroda.
“Elevated credit cost and modest net interest income (NII) is expected to dent earnings. Besides, asset quality may also remain under pressure during the quarter under study,” wrote analysts at Motilal Oswal Financial Services in an earnings preview note.
At the bourses, BoB stock has outperformed during the period under review, ACE Equity data show. In three months to March 31, the stock of the state-owned bank moved up 20.5 per cent,