Bank of India Q2 PAT seen up 69% at Rs 510cr: MOST
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.
October 30, 2013 / 11:55 IST
Motilal Oswal has come out with its second quarter (July-September) earnings estimates for the banking sector. The brokerage house expects Bank of India (BoI) to report a 47.1 percent plunge quarter-on-quarter (up 69 percent Y-o-Y) in net profit at Rs 510.1 crore.
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, according to Motilal Oswal.Motilal Oswal's Report on Bank of India:Loans and deposits growth is expected to be 23 percent Y-o-Y and 28 percent Y-o-Y, partially aided by currency depreciation, which is expected to translate into strong growth in international portfolio (formed 27 percent of overall business at end-1QFY14).NIM is expected to moderate by 10bp+ to 2.4 percent. Factored net investment loss of INR 1 billion, compared to a gain of INR 1.6 billion in 2QFY13 and INR 6 billion in 1QFY14.Slippages are expected to be high; we have factored a slippage ratio of 2.9 percent and credit cost of 1 percent.Sequentially, PAT is expected to decline 48 percent+. However, on a lower base of 2QFY13, PAT growth is expected to be strong at 69 percent Y-o-Y.Overall, we lower the earnings estimate by 8 percent for FY14E, to factor in lower NIMs and higher credit cost.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 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!
