Bank of Baroda
Public sector major Bank of Baroda has surprised the markets with 17 percent increase in quarterly net profit. The bank registered net profit of Rs1,362 crore during the first quarter compared to Rs 1,167 crore during the same period last year.
Bank of Baroda stock was up by more than a percent. The net interest income grew by 15 percent at Rs 3,328 crore. The non-interest income of the bank declined by 17 percent to Rs 1,024 crore during the first quarter.
Senior officials of 23 private as well as public sector banks and insurance companies are actively involved in the illegal activity of facilitating money laundering, a new sting operation by Cobrapost revealed.
The list of banks and insurances companies allegedly involved in facilitating money laundering includes Satate Bank of India (SBI), Life Insurance Corporation (LIC), Bank of Baroda, Canara Bank, Punjab National Bank, Indian Bank, Yes Bank, IDBI Bank, Federal Bank, Birla Sunlife and Reliance Capital.
In an exclusive report yesterday, Firstpost alleged that the Nassau branch of Bank of Baroda in Bahamas has transferred Dawood Ibrahim's funds. Ibrahim has been reported to become the principal provider of the financial services to narcotics traffickers and jihadist across South Asia.
His business estimated to be more than $3.5 billion a year and uses reputed companies to get easy access to the global financial system. Bank of Baroda was reported to be involved in transferring Dawood Ibrahim's funds.
The Bank of Baroda (BoB) stock slipped nearly eight per cent before closing down 7.5 per cent at Rs 802 a share on Monday, as against just 0.15 per cent decline in Sensex, after the bank reported a fall of 22 per cent fall in its net profit for the December 2012 quarter.
The steep fall in the net profit during the quarter was led by the steep increase in provisions that jumped 23 per cent year-on-year to Rs settle at 1,029 crore.
The results for Q3 was recently declared by Bank of Baroda, which showed that the company's Q3 NII was higher at Rs 1,601.2 crore versus Rs 1,461.8 crore, year-on-year, YoY.
The net profit for the bank was up at Rs 832.5 crore versus Rs 708.4 crore, YoY. Prior to this, Business News major CNBC-TV18 poll predicted the net profit at Rs 714.7 crore and net interest income at Rs 1,500.8 crore, so the numbers were better than expected.
Bank of Baroda Chairman M. D. Mallya has shared that the state owned and run bank has a United Arab Emirates exposure of 7-8% of its total loan book. Out of a loan book of 1.5 Trillion Rupees, UAE's exposure stands at about 100 Billion Rupees, adding more worries to Dubai's already existent debt problem.
Truck and heavy vehicle manufacturer, Ashok Leyland on Saturday signed a memorandum of understanding with Bank of Baroda to support finance for end-customers as well as dealers.
The partnership enables Ashok Leyland to utilize Bank of Baroda's comprehensive network and reach to service the value chain, from wholesale to retail.
Largest Public sector lender, Bank of Baroda (BoB) has announced that it would be offering up wealth management services in the United Arab Emirates (UAE), and its joining hands with Reliance Mutual Fund (RMF) marked the beginning of this process.
This is the first step by the bank towards offering wealth management services.
Under the venture, the bank will distribute the mutual fund products of Reliance in the Gulf Cooperation Council (GCC) region through its six branches in the UAE and three in Oman.
Stock market analyst Rajat K Bose suggested investors to sell Bank of Baroda stock with a stop loss above Rs 267 to achieve a target between Rs 255-Rs 252.
The investors are advised to sell the stock in order to avoid loss, as there are full chances of a downward trend in this stock.
If the stock fell below Rs 255, it may see more weakness.
After selling the stock in today’s session, the interested investors can enter the stock again, but only on declines.
In order to energize credit demand, State-run Bank of Baroda had slashed its benchmark prime lending rate (PLR) by 50 basis points to 12.75%.
The new rate will be effective from Feb. 27, 2008.
Rupa Nitsure, chief economist, Bank of Baroda, stated, “The bank decided to cut the lending rate to stimulate demand for customer and investment credit.”
Earlier this week, four other public banks including State Bank of India had abbreviated their PLRs by 25-50 basis points.