Bank of India Q1 PAT may drop 7% at Rs 828 cr: KR Choksey
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.
July 25, 2013 / 17:44 IST
KR Choksey 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 9 percent degrowth quarter-on-quarter (degrowth of 7 percent year-on-year) in net profit at Rs 828 crore.
Net interest income is expected to increase by 5 percent Q-o-Q (up 27 percent Y-o-Y) to Rs 2596 crore, according to KR Choksey.KR Choksey report on Bank of IndiaNII will grow 10.3 percent Y-o-Y and 4.0 percent Q-o-Q led by Q-o-Q improvement in margins and steady loan growth 16.5 percent Y-o-Y. Fee income continues to be subdued due to balance sheet slowdown. Trading gains to be strong Q-o-Q due to decline in bond yields.Employee cost will increase 10 percent Q-o-Q due to wage revision provision.Given the higher exposure to wholesale loans and infra loans, we expect the bank to report sequentially lower loan restructuring. However, fresh slippages to come at Rs 1500 crore and we expect the bank to restructure loans amounting to Rs 1000-1200crore, higher than Q4FY13 (Rs 2159 crore). 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!
