Views on Bank of India 3QFY2014 results - Angel Broking

Views of Mr. Vaibhav Agrawal (VP- Research – Banking, Angel Broking) on Bank of India 3QFY2014 results:

"Bank of India's asset quality performance during the quarter came largely on expected lines. NII for the bank grew at healthy pace of 18% yoy (despite advances growth of 27% yoy). Growth in other income came in at 17% yoy, higher than what we had built in. On the asset quality front, net slippages (slippages adjusted for recoveries and upgrades) came in largely flat on a qoq basis, while restructuring during the quarter came largely on guided lines. Provisioning expenses for the bank increased 53% yoy, as the bank provided much higher for NPAs during the quarter and maintained its PCR at 64%. Sequentially flat net slippages aided the bank to report sequentially flat absolute Gross NPA levels, while higher provisioning aided the bank to report sequentially flat net NPA levels. Overall earnings for the bank de-grew by 27% yoy to Rs. 586cr (excluding the impact of special provision of Rs. 68cr for deferred tax liability on special reserve, PAT de-growth would have been limited to 19% yoy). We await the management comments particularly regarding the asset quality outlook going ahead. We maintain our Neutral rating on the stock."

Bank of India 3QFY2014 Result Update (CMP: Rs. 189, Target Price: NA, Recommendation: Neutral)

Source : Equity Bulls

Keywords