Hold Bank of India; target of Rs 53: Sharekhan

Sharekhan's research repor on Bank of India

Bank of India (BOI) posted positive results for Q1FY2021 with operational performance better than expectations, and sequentially asset quality improving in both absolute as well as percentage basis. Moratorium book stood at 53% by value (up from 46% in Q4), but around ~10% borrowers have two or more EMIs due, which is reasonable. Going forward, high PCR and expected recovery are cushions, but we expect asset-quality niggles to continue to impact FY2021 performance.

Outlook

We maintain our Hold rating on the stock with a revised price target of Rs. 53.