Neutral on Bank of Baroda with target at Rs 146: Credit Suisse

Credit Suisse maintains neutral rating on Bank of Baroda post Q4 results and raised its target price to Rs 146 from Rs 124 earlier. The non performing loan (NPL) cover was shored up and additional provisions on pension liabilities were made which led to dent in profits, said the brokerage note.

The management expects NPL slippages to be elevated in FY17 as well. The return on equity (ROEs) would remain in single digits even with high leverage of 20x. At 0.9x FY18 BV, the global investment bank slashed EPS by 23%-48% on high provisions.