Shares of State-owned Bank of Baroda gained 1.4 per cent to quote at Rs 49.15 apiece on the BSE on Monday ahead of the bank’s June quarter result, scheduled to be released later in the day. At 9:34 am, the stock was trading 1 per cent higher at Rs 49 per share, as against 332 points, or 0.84 per cent, rally in the benchmark S&P BSE Sensex.
Analysts foresee the bank reporting sluggish business growth in Q1 on the back of Covid-19 induced nationwide lockdown. The bank’s loan growth, they say, would remain flat on a sequential basis, rising only marginally courtesy loans extended under the Emergency Credit Line Guarantee Scheme (ECLGS). Besides, asset quality is seen stable due to the moratorium facility provided by the Reserve Bank of India. That apart, recovery trends and loan book under moratorium, which was 65 per cent untill March 31, would be watched.
From its recent low of Rs 36 per share — also its 52-week low — hit on May 20, the stock price has surged 28 per cent till Friday on the BSE. In comparison, the benchmark S&P BSE Sensex has gained 23.4 per cent during the period, BSE data shows.