Bank of Baroda, Bank of India, Union Bank to share Q4 results today; earnings previews

Bank of Baroda (BOB), Union Bank of India (Union Bank) and Bank of India (BOI) are among PSU banks, which would be reporting their March quarter results today. For BOB, earnings and business growth may stay healthy. Margin is expected to moderate slightly while asset quality may improve further. Credit cost is likely to say in control for BOB, said analysts who believe loan growth development and opex should be key monitorables.

For Union Bank, analysts are expecting steady business growth in Q4. Margin is expected to remain broadly stable and there could be a steady improvement in asset quality. All eyes would be on SMA and restructuring books.

On Bank of India, Sharekhan said PSU lender reported healthy loan growth of 14 per cent YoY for Q4 while deposit growth was at 10 per cent YoY. Key monitorable would-be loan/ deposit growth, margin outlook and major recoveries lined up going ahead.

BOB Q4 results preview
Motilal Oswal expects BOB to log 0.8 per cent YoY rise in net profit at Rs 4,815 crore on 1.1 per cent drop in net interest income at Rs 11,394 crore.

"Sequential loan growth will be in the 3 per cent ballpark due to idiosyncratic growth trajectory. NII growth will be slightly slower than average loan growth due to rise in cost of deposits outpacing yield on advances. Consequently, NIM will be slightly lower sequentially," said YES Securities.

It said sequential fee income growth for BOB will broadly match loan growth. Slippages would be broadly stable on sequential basis but provisions will rise materially on sequential basis due to low base in 3Q, it said. This brokerage sees profit falling 10/7 per cent to Rs 4,266 crore.

Bank of India Q4 results preview
Sharekhan expects BOI to report 61.1 per cent YoY rise in profit at Rs 2,175 crore compared with Rs 1,350 crore YoY. NII is seen rising 1.9 per cent YoY to Rs 5,627 crore against 5,524 crore YoY. PPOP is seen falling 18.7 per cent YoY to Rs 3,400 crore.

Union Bank Q4 results preview
Motilal Oswal brokerage sees Union Bank to report 39.10 per cent YoY rise in net profit at Rs 3,869 crore on 14.4 per cent YoY rise in NII at Rs 9,441 crore. Anand Rathi sees profit at Rs 3,636 crore, up 30.7 per cent YoY. It sees NII rising 12.4 per cent YoY to Rs 9,273 crore.