Bank of India Q1 net may dip 21% at Rs 699.6 cr: MOST
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.
July 25, 2013 / 17:38 IST
Motilal Oswal has come out with its first quarter (April-June) earnings estimates for the banking sector. The brokerage house 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.
Net interest income is expected to increase by 2.7 percent Q-o-Q (up 24.4 percent Y-o-Y) to Rs 2542.5 crore, according to Motilal Oswal.Motilal Oswal report on Bank of IndiaLoan and deposit growth are expected to be 15 percent Y-o-Y and 18 percent Y-o-Y respectively, partially helped by currency depreciation, which is expected to translate into strong growth in international portfolio (formed 26 percent of overall business at end-FY13). NIM is expected to moderate by 5bp+ Q-o-Q. Slippages are expected to be at a high level; we have factored a slippage ratio of 2.8 percent. Upgradations and recoveries would be key for asset quality performance. While operating profit is expected to grow by 25 percent Y-o-Y led by higher credit cost, PBT and PAT each is expected to decline 21 percent Y-o-Y. Tax rate is expected to be at 26 percent. The stock trades at 0.6x FY14E and 0.5x FY15E BV, and 4.8x FY14E and 4.2x FY15E EPS. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
