Bank of Baroda shares fall 2% after Q1 earnings. Why are brokerages slashing target prices?

Bank of Baroda shares fell 2% after Q1 FY27 results showed a 72% plunge in net profit to Rs 1,278 crore due to a one-off NMC Health litigation settlement charge, though net interest income rose 9% YoY to Rs 12,524 crore and asset quality improved YoY with net NPA at 0.50%. NIM compressed to 2.77% from 2.91% YoY, while global advances grew 17% YoY. Brokerages cut target prices, with JM Financial reducing to Rs 270 (from Rs 290), Motilal Oswal to Rs 275, Systematix to Rs 290, and Dolat Capital to Rs 250, citing NIM pressure, weak fee income, and the upcoming ECL transition.