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According to analysts polled by CNBC-TV18, Bank of India's NII growth and profit decline is expected to be similar to last quarter. Asset quality may also remain elevated as slippages in Q3 was over Rs 3000 crore.
Bank of India's third quarter net profit fell 70.4 percent year-on-year to Rs 173.4 crore on higher provisions and employee expenses. Moreover, slow growth in net interest income and lower other income, operating profit impacted the profitability during the quarter.
Bank of India is expected to register a solid 39.8 percent increase (year-on-year) in profit at Rs 818.6 crore for October-December quarter, according to a CNBC-TV18 poll.
Worsening asset quality is a worry indeed, but Jignesh Shial, research analyst, IDBI Capital Markets says what is more worrying is that these banks are not growing, putting pressure on margins as well.
Bank of India has posted a 26.4 percent increase in its net profit on year-on-year basis to Rs 786 crore against Rs 621.77 crore led by fall in provisions and higher net interest income.
Net interest income of the bank is seen going up by 9 percent to Rs 2,745 crore in the quarter ended September 2014 compared to Rs 2,527 crore in same quarter last year.
One stock on my radar today was Bank of India which released what was quite a disconcerting set of numbers atleast in terms of the internals of the asset quality. The stock itself ended down around 11 percent odd which was plagued by higher slippages and restructured assets this quarter.
Market experts say that quarterly earnings posted by Punjab National Bank were way below estimates. They also cite high provisions as being the problem for the mismatch.
Siddharth Teli believes Bank of Baroda is good bet in the PSU banking space as there has been some upgrade in the earnings and there is a possibility of an uptick in margins going ahead.
VR Iyer of Bank of India believes the worst is over for the market and the public sector lender will see more recovery and further reduction in its non-performing assets going forward.
It seems that BoI has provided much more than what we were building in and yet its net profit is not so low, says Vaibhav Agarwal, Angel Broking.
The net interest income of Bank of India are expected to decrease by 3.1 percent Q-o-Q (up 12 percent Y-o-Y) to Rs 2,459.4 crore.
The net interest income of Bank of India is expected to increase by 1.6 percent Q-o-Q (up 17.4 percent Y-o-Y) to Rs 2,578.7 crore.
A spurt of loan defaults and lower net interest income in the three months that ended June triggered the second consecutive drop in quarterly profit for SBI, sending its shares to their lowest since December 2011
Bank of India (BOI) on Friday reported 8.6% rise in its net profit at Rs 964.18 crore for the Q1 ended June 30, 2013. Vaibhav Agrawal of Angel Broking expects Q2 NPA numbers for BOI might deteriorate.
KR Choksey expects Bank of India to report a 9 percent degrowth quarter-on-quarter (degrowth of 7 percent year-on-year) in net profit at Rs 828 crore.
Motilal Oswal expects Bank of India to report a 7.5 percent degrowth quarter-on-quarter (degrowth of 21.2 percent year-on-year) in net profit at Rs 699.6 crore.
With beginning of the so-called slack season (April-September), banks are not expected to spring any fresh surprise in the April-June quarter earnings. If not as dry as dust, the first quarter of FY14 will be watched for certain crucial factors like credit growth, net interest income, provisions and of course, asset quality.
According to Hemindra Hazari of Nirmal Bang it was far worse than the expectations.
Motilal Oswal has come with its March`13 quarterly earning estimates for financial sector. The research firm expects reforms and monetary easing to continue, thereby growth is expected to revive gradually.
Angel Broking has come with its March`13 quarterly earning estimates for banking sector. The research firm expects private banks to report healthy earnings growth of 23.0 percent yoy, however, the PSU banks with expected earnings decline of 13.1 percent yoy, would drag the overall earnings performance (de-growth of 3.2 percent yoy).
VR Iyer, CMD, Bank of India, says that Bank of India sees fresh slippages at Rs 1200 crore. However, the banks do not expect to see more slippages in Q4 and going forward. She also feels that gross and net NPA will come down significantly in near term.
State-controlled lender Bank of India is set to declare its results for the third quarter of financial year 2012-13 on Monday. Analysts on an average expect profit after tax of the bank to grow by 5 percent year-on-year to Rs 754 crore in the quarter.
Nirmal Bang has come with its December`12 quarterly earning estimates for banking sector. In 3QFY13, there exists a possibility of treasury profits and write-back of depreciation on investments, which we have not factored in on account of movement of yields and open market operations (OMO) conducted by the Reserve Bank of India (RBI).
Motilal Oswal has come with its December`12 quarterly earning estimates for banking sector. The research firm expects RBI to start cutting interest rates from 4QFY13.