Bank of India Q3 PAT likely to fall 5% at Rs 619 cr

Net interest income is seen going up by 2.5% to Rs 2,033 crore from Rs 1,987 crore during the same period.

Highlights

- Slippages could come in around Rs 1300 crore (lower than Rs 2800 crore in Q2)
* 58% of slippages in Q2 due to migration to system based NPA recognition

- Restructuring expected to remain high

- Higher provisioning will cause decline in PAT

- Expect NIMs to improve

- Recoveries expected to improve & cushion asset quality

Management comments

- NIMs likely to improve by 6-7 bps

- Loan growth likely to be 18-20%

- Kingfisher most likely to be classified as NPL
* Rs 550 crore exposure to KFA

- Expect slippages of Rs 1700 crore Vs Rs 2800 crore (QoQ)

- Rs 2500 crore exposure to Air India + 940 cr exposure to GTL
* This could lead to 24% increase in restructured loans

- Expect gross NPA at Rs 6500 cr by end of Q4FY12

- Expect 17-18% credit growth, 17% deposit growth