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Shares of Bank of India tumbled more than 6 percent in the early trade on Tuesday as company reported net loss in the quarter ended March 2018.
The company reported a net loss of Rs 3,969.27 crore for the March quarter, as asset quality worsened and provisions increased. The bank had posted a loss of Rs 1,045.52 crore in the same quarter last year.
Net interest income or NII (the difference between interests earned and paid) fell 26 percent to Rs 2,563.85 crore from Rs 3,469 crore in the year-ago period.
Other income declined 21.5 percent to Rs 1,375.23 crore in Q4 from Rs 1,754 crore in Q4 FY17.
Brokerage: Deutsche Bank | Rating: Sell | Target: 85
Deutsche Bank has maintained sell rating on Bank of India and cut target price to Rs 85 from Rs 90 per share.
Operating parameters are concerning but recoveries are as expected, while residual stress at 4 percent is still large, it added.
Brokerage: Morgan Stanley | Rating: Underweight | Target: 105
Morgan Stanley has maintained underweight call on Bank Of India with a target of Rs 105 per share.
The company has reported a loss, which was driven by weak PPoP and higher provisions.
The slippages remained elevated at Rs 13,000 crore while upgrades & recoveries increased on QoQ basis.
Brokerage: Credit Suisse | Rating: Underperform | Target: 103
Credit Suisse has maintained underperform rating on Bank Of India and cut target price to Rs 103 from Rs 122 per share.
The reserach house cut EPS estimate by 17-35% on build in dilution.
Strong recoveries and large provisions helped to push net NPLs down 200 bps, QoQ. Meanwhile, the operating performance remained weak, as loan book contracted, it added.
At 09:42 hrs Bank Of India was quoting at Rs 102.25, down Rs 5.60, or 5.19 percent on the BSE.
Posted by Rakesh Patil
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