Buy Bank of India; target Rs 275: Firstcall Research
Brokerage house Firstcall Research is bullish on Bank of India (BOI) and has recommended buy rating on the stock with a target price of Rs 275 in its December 09, 2013 research report.
December 12, 2013 / 14:50 IST
Firstcall Research report on Bank of India (BOI)
"Bank of India, large cap, government owned bank posted strong second quarter results with 15 percent jump in its Net Interest Income from Rs. 21960 mn to Rs. 25270 mn in the current quarter. Domestic Net Interest Margin (NIM) rose by 23 basis points YOY from 2.70 percent to 2.93 percent in Q2 FY14. Net profit rose by a whopping 106 percent in current quarter due to low base effect. Net profit stood at Rs. 6217.70 mn against Rs. 3018.50 mn in Q2 FY13. Other income also contributed rising by 23 percent at Rs. 11002.60 mn in quarter ended 30th September. Though gross and net non performing assets rose on absolute basis YOY, asset quality of the bank is still high and stable as Gross NPAs as a percentage of gross advances and Net NPAs as a percentage of net advances improved by 49 and 19 basis points respectively. Provisions and contingencies have also declined by 20.6 percent from Rs. 15521.10 mn to Rs. 12322.80 mn in Q2 FY14. Domestic and international revenues rose by 16.63 percent and 12.34 percent respectively YOY. CASA ratio is up by 13.85 percent and provision coverage ratio stands at 63.29 percent in Q2 FY14. With branch network of 4479 and 2905 ATMs and CAR of 10.77 percent after capital infusion of Rs. 10000 mn, Bank of India is expected to consolidate its position further in the coming quarters. Thus we recommend 'BUY' for the scrip with the target price of Rs 275," says Firstcall Research Report.Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
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