In an interview to CNBC-TV18 Vaibhav Agarwal, Angel Broking reviewed second quarter financial performance of public sector lender Bank of India (BoI).
Below is the edited transcript of Vaibhav Agarwal’s interview with CNBC-TV18 Q: Your view on Bank of India asset quality? A: Its net NPA is sequentially – a big percentage has come as a huge positive surprise. It seems that they have provided much more than what we were building in and yet its net profit is not so low. Also, gross NPAs have come down. It has shown a positive asset quality surprise. Q: BoI has been a stark underperformer, it is down close to about 50 percent on year-to-date basis, it is trading at just about 0.5 times its price-to-book value. Do you think there is a case for rerating and people should invest in BOI even at current levels? A: To put things into perspective, a run rate of net profit at Rs 600 crore implies 11 percent return on equity. So, clearly there is a long way to go on profitability. Q: As yet you are not raising the target price for BoI? A: Going into the results we were neutral. We have to wait for more details before taking a calls on whether to revise it upwards or not.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!
