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Posted by :
NAUGHTY007we may c sub 370 levels by monday-sell...
BANK OF INDIA
Posted by :
shareking.co.in
BANK OF INDIA
Last close 383.05
Banking stocks is on the verge to spurt again. Those did not participated previously has now great time to enter once again. Buy this stock at the opening bell keeping stop loss of Rs.377 for an upper target of Rs.391, Cross over will take this to Rs.396 mark.
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BANK OF INDIA
Posted by :
insight95inWeekly Trend Decider 372. Higher level resistance are 387-389, thereafter do not remain short...
Heading
Posted by : NAUGHTY007poor results sell immediately while the going is goodbuy in dips if ur fancy...
sell
Posted by : vuppala1948
It is good that BOI Management has come forward to clarify the position of NPAs - not only for 2nd Qtr but also for the next 2 Qs.
BOI has indicated export oriented industries like Diamonds, gems etc as major contributing NPAs.If the loanee companies do not collapse but are only undergoing business recession, they may become performing assets again.No real surety in that, of course.
One opinion we find is - if Balance sheet size is big - and if capital adequacy ratio is adequate - such NPAs are only short term cause for worry.
Yet, ED Prabhakar`s statement serves as a good guide to short term investors.
The Ed has also clarified that from 1st April,BOI will come back to its earlier levels on all these parameters.
That is again a good enough indication for long term investors....
NSE Announcements on Bank of India
Posted by : MMB MessengerBank Of India has informed the Exchange that "The Investment Credit Rating Agency (ICRA) has revised the Credit Rating on our Bonds and Terms Deposits". The details of the same shall be available on the NSE website (http://www.nseindia.com) under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements). ...
Prabhakar ED of BOI told We are expecting another Rs 1,000 crore slippages to happen before March 2010. ED also told Going forward if some of our customers expect problems then it will be a different situation. Based on this points i advice not to enter at current level....
vuppala1948, (1) You had earlier mentioned that the hike in provision was due to impending salary hike. Kindly check your earlier message. Hence my comments. Subsequently, however, you have mentioned it may be due to higher NPA etc. (2) With regard to Andhra Bank and IOB, you have misread my posting. I mentioned that the history indicates that after the same gentleman who presided over the said two banks as CMD left, both the bank scrips took a beating....
sell
Posted by : vuppala1948
It may be ANY provision like - wage revision , or even NPA. But, even if it is ANY OTHER provision, like NPA provision, it is a one time provision related to the whole year - and not merely for the current Qtr - which means - next 2 qtrs will not have this huge provision of 602 cr compared to just 223 Cr in last Qtr.
This means, its EPS for the year will be just as good as last year.But, if it has something to do with the exit of one CMD and coming in of another, well,that is beyond analysis of financial results - but there, anything is possible.
My opinion otherwise is - this huge excess provisioning cannot just continue in next 2 QTRs.
Any way, thanks for your comments. May be, we can analyse Andhra Bank and IOB also - to see how PSBs have fared in the Qtr. ...
vuppala1948, The market is intelligent. Are you sure that the significant hike in provisioning is ONLY due to impending wage hike? Can you also clarify what is the position with regard to Gross NPA and Net NPA and how it compares QoQ?
As far as I see the results, history indicates similar trend after the exit of the previous CMD of BOI, even after his exit from Andhra Bank and IOB. That is to say, the Andhra Bank and IOB scrips showed marked decline in prices after the exit of the gentleman as CMD in these two banks also. Hence, my doubt about what you attributed to the increase in provisioning. Pray that the trend in provisioning does not continue in the next two quarters atleast.
Would like to have your considered views. ...
sell
Posted by : vuppala1948
If we add back provisions pertaining to whole year from current results, I feel, Rs.325 to 350 cr can be added back to NPT (out of 602 cr provision), which should give us a current qtr EPS of 12 Plus.
On the above Basis,the P/E is a paltry 6 - even compared to the industry average of 8 plus.
People were going for P/E of 18 plus madly - when very good scrips like BOI were and are available at P/Es of 6.At a P/E of at least 8, BOI should command a price of 400 +.
But, being the BEST LEADER among PSBs ( awarded for 2009), its P/E should be much more than 10-12. At current prices, it is a definite BUY - I feel.Medium to long term investors need not at all hesitate....
Your analysis is quite reasonable, I gree with you
PDAhuja...
sell
Posted by : thatipallivuppala, Please suggest me at what price i should enter boi. please advice us....
sell
Posted by : hariom equityThanks...for your best analysis of BOI-Q2 Results...
sell
Posted by : vuppala1948
The final EPS of BOI for the latest Qtr is 6.15 compared to 11.11 for last Qtr. On the face of it, it looks a dismal performance. True.
But, the one and only reason we find for this, after thorough analysis, is the increase of Provisions from 223 Cr in last Qtr to 602 Cr in current QTR.
Total income has grown from 5024 Cr to 5165 Cr. Total Expenditure has just marginally increased from 3930 cr to 3959 Cr.
Actually, Operating Profits has increased SIGNIFICANTLY from 1094 cr in last qtr to 1206 Cr in the current QTR.
The Higher provision of 602 Cr in current Qtr compared to just 223 Cr in last Qtr has brought down EPS to 6.16 from 11.13 in last Qtr.
The higher provision is generally a one time affair - presumably due to the impending hike in Salaries - and will not recur in subsequent Qtrs.
If this provision is taken out of recurring, BOI results are DEFINITELY much better than earlier Qtrs.
At the operating level, there is a significant increase in profits from 1094 cr to 1206 Cr.So, BOI is performing absolutely well - and not dismally.
Probably, BOI has been highly prudent to make provision for the higher amount in this Qtr itself, but the actual expenditure from such provisions will be spread throughout the 12 months (or even earlier years)and the final EPS will remain unaffected.
I feel, BOI will increase its EPS significantly in coming QTRs - since such provision will not be there.The annual EPS for current year should also be significantly HIGHER - and not lower , nor DISMAL - since, income has increased significantly and will increase further and expenditure is in check.
Actually, BOI has been selected for the BEST LEADER AWARD among Public sector Banks - for 2009, considering many parameters. I feel, it deserves this - and the depressing of EPS in current Qtr is of little consequence.
Market Reaction is of course, as usual, a knee Jerk reaction,without analysis. Add to it, the current reaction and you have a DISMAL MOOD to beat down any scrip without rhyme or reason. BOI has provided a reason - the lower EPS - and that is enough for a market madly selling at any price.
Market reaction in India is becoming a JOKE - nothing else....
