Here's how experts react to BoB's better-than-expected nos

Ekta: What have you made of the asset quality? Gross NPAs have risen 10 percent on an absolute basis and the provisions fallen 26 percent and the gross NPA and net NPA ratios have seen some amount of worsening, but not much. What is your sense on the asset quality parameters?

A: As far as gross NPA increase of about 10 percent, that looks slightly better than expectations considering that their run rate in the past few quarters has been much worse. As far as the net NPA, a Rs 300 crore increase in the context of what they have been seeing in the past, it is actually better than what we were expecting. In that light, even with this current number they have delivered Rs 1,000 crore plus PAT and I think it is good set of numbers compared to expectations.

Hatim Broachwala, Karvy Stock Broking

Ekta: What have you made of BOB numbers? Has it pretty much been in line for you?

A: The NII is in line with our expectations. Provisions have been far below our expectations. As a result, profitability has been around 15 percent more than our expectations. G&P has increased by around 17 bps sequentially. We need to find out the breakup between slippages and write-off but overall numbers are looking okay.Ekta: What would your call on BOB be?

A: Our target price is Rs 615, so it is more of a neutral kind of a rating.

Ekta: What is your expectation from the management commentary in terms of slippages and restructured loans this quarter?

A: We need to see as to how much of slippages are in the current quarter plus what kind of guidance does the management gives going ahead. Also, we need to find out the restructured numbers and so, it is difficult to comment before that.