Public sector lender Bank of India is expected to report a 25 percent growth (year-on-year) in second quarter profit after tax at Rs 780.3 crore, according to the average of estimates of analysts polled by CNBC-TV18. Profit in the year-ago period was Rs 622 crore.
In Q2FY14, profit doubled to Rs 622 crore from Rs 302 crore year-on-year as provision fell 21 percent to Rs 1,232 crore during the same period.
Net interest income is seen going up by 9 percent to Rs 2,745 crore in the quarter ended September 2014 compared to Rs 2,527 crore in same quarter last year.
Analysts feel asset quality continues to remain a concern for the bank as in Q1FY15, slippage continued to remain high at Rs 3,770 crore (included two accounts from power and iron & steel sectors) versus Rs 3,500 crore in Q4FY14. Total stressed asset addition was at Rs 5,400 crore in June quarter against Rs 5,894 crore in previous quarter. Net non-performing assets increased 14 basis points sequentially to 2.14 percent in Q1FY15.
Hence, factors to watch out for are loans (slipped from the restructured accounts) and net interest margin (fell 12 basis points sequentially to 2.16 percent in Q1FY15, mainly due to 29 basis points compression in domestic NIM at 2.5 percent).
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