Bank of India Q2: Analysts expect 60% growth in PAT

Public sector lender Bank of India's profit after tax is expected to grow by 60 percent year-on-year to Rs 783 crore in the second quarter of FY13.

Net interest income is likely to rise by 17 percent to Rs 2,227 crore from Rs 1,904 crore during the same period. Analysts are closely watching September quarter's performance because Bank of India's PAT grew by 71 percent YoY to Rs 890 crore in previous quarter due to higher recoveries and write back of investments. Analysts feel the asset quality could be negative this quarter, which will remain uncertain. In previous quarter, its gross non-performing assets (NPAs) rose by 22 basis points QoQ to 2.56 percent and net NPAs went up by 22 basis points to 1.69 percent. Net interest margin is expected to recover 25-30 basis points QoQ. In previous quarter, NIMs fell to 2.27 percent in Q1FY13 as against 2.86 percent in March quarter.