Hold Bank of India: target of Rs 68: Sharekhan
Sharekhan recommended hold rating on Bank of India with a target price of Rs 68 in its research report dated February 10, 2021.
February 11, 2021 / 01:06 PM IST
Sharekhan's research report on Bank of India
Bank of India (BOI) reported mixed results, wherein operating performance was below expectations (NII, PPOP, PAT below estimates), but CASA deposits rose on a q-o-q basis and encouraging asset-quality performance. Global net interest margin (NIM) fell by 8 bps from 2.66% in Q2FY2021 to 2.58% in Q3FY2021, down 40 bps y-o-y. Domestic NIM also contracted to 2.81% in Q3FY2021, down 7 bps from Q2FY2021. We believe asset-quality headwinds are likely to persist in the medium term; however, high PCR and the expected recovery may somewhat soften the impact.
BOI currently trades at 0.31x/0.26x its FY2022E/FY2023E ABVPS. We have finetuned our estimates. We maintain our Hold rating with a revised PT of Rs. 68.
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