Moneycontrol
Get App
Last Updated : Nov 13, 2018 10:47 AM IST | Source: Moneycontrol.com

Bank of India falls 8% as it posts net loss in Q2; Credit Suisse cuts target to Rs 78

The lender reported a net loss of Rs 1,156.25 crore for the September quarter. The figure cannot be compared with that of last year as the bank had reported a net profit of Rs 179.07 crore during Q2 of FY18.

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Shares of Bank of India fell over 8 percent as investors reacted to its September quarter earnings.

It touched an intraday high of Rs 85.45 and an intraday low of Rs 79.90.

The lender reported a net loss of Rs 1,156.25 crore for the September quarter. The figure cannot be compared with that of last year as the bank had reported a net profit of Rs 179.07 crore during Q2 of FY18.

Close

The net interest income saw marginal 0.6 percent growth year on year to Rs 2,927 crore from Rs 2,908 crore last year.

On the asset quality front, the gross non-performing assets (NPAs) ratio fell to 16.36 percent from 16.66 percent in the previous quarter. The net NPA ratio, too, fell to 7.64 percent, down from 8.45 percent during the June quarter.

The amount of gross NPAs stood at Rs 61,560.65 crore against Rs 60,604.46 crore in the previous quarter. The net NPAs stood at Rs 25,994.1 crore against Rs 27,932.25 crore in the last quarter.

The lender reported provision of Rs 3,343 crore, a rise from Rs 2,564 crore during the previous quarter. Meanwhile, its provision coverage ratio stood at 69.12 percent against 66.7 percent last quarter.

Brokerage: Credit Suisse | Rating: Underperform | Target: Cut to Rs 78 from Rs 85

Credit Suisse said that growth will be a challenge despite expected capital infusion in the bank. The results account for elevated provisions and treasury losses. After contracting for 12 quarters, loan book grew 4% QoQ, it further added.

Brokerage: Morgan Stanley | Rating: Underweight | Target: Rs 70

The global research firm is underweight given weak balance sheet & profitability. Further, muted PPoP & elevated credit cost to weigh on earnings. It has kept RoE below CoE over the next several years.

Time to show-off your poker skills and win Rs.25 lakhs with no investment. Register Now!

First Published on Nov 13, 2018 10:47 am
Sections
Follow us on