Bank of Baroda is top gainer

Bank of Baroda is currently the top gainer on the BSE today. The stock is up over 12.5% at Rs.208 levels with an intra day high at Rs.212.10. Its 52-week is at Rs.228.90.

The market is thrilled with the fact that Bank of Baroda, along with Canara Bank, for the first time ever, have got a private sector banker at the helm, to help bring in the much required professionalism. P.S Jayakumar, managing director and CEO of VBHC Value Homes will be heading BoB.

This apart, under the newly coined, Indradhanush plan for the banks, the Govt has unveiled a sevent-point reform package for the PSU banks and it said that the plan also included pumping in Rs,70,000 crore capital in the banks over the next four years. The Govt also plans to set up a Bank Board Bureau to monitor performance, recapitalisation and appointing new chiefs.

The performance of the bank was not very encouraging for Q1FY16 a 22.7% drop in its first quarter net profit, dragged down by higher employee costs and lower treasury gains. Gross non-performing assets (NPAs) as a percentage of total loans rose to 4.13% from 3.11% a year ago. Fresh slippages, or good loans turned bad in the quarter, was at Rs.1,685.01 crore, down from the year ago quarter’s Rs.1,881 crore, but up from the fourth quarter’s Rs.1,359 crore. Thus it is hoped that now probably with a more professional private sector CEO at helm, things could get better at BoB.