The emission characteristics of a novel, specially designed broad area diode laser (BAL) with on-chip transversal Bragg resonance (TBR) grating in lateral direction were investigated in an off-axis external cavity setup. The internal TBR grating defines a low loss transversal mode at a specific angle of incidence and a certain wavelength. By providing feedback at this specific angle with an external mirror, it is possible to select this low loss transverse mode and stabilize the BAL. Near diffraction limited emission with an almost single lobed far field pattern could be realized, in contrast to the double lobed far field pattern of similar setups using standard BALs or phase-locked diode laser arrays. Furthermore, we could achieve a narrow bandwidth emission with a simplified setup without external frequency selective elements.