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Bank of India
We expect a fall in net interest income of the bank on account of higher cost of deposits for the
bank.We expect NIM to come down from Q1FY12 on this account.
Growth in business for the y‐o‐y will be in line with industry, however, we express our concerns on
CASA which has come down from 28% last year (Q2FY11) to 25% in Q1FY12.
We expect slippages of ~Rs.17 bn in the current quarter; the same as Q1FY12 on account of system
based recognition of NPA’s of loans below Rs.0.5 mn which constitutes ~Rs.200 bn worth of loan
portfolio. This should impact the asset quality on the negative side.
We expect provisions to go up higher than the Q1FY12 level on account of deteriorating asset
quality.We expect profits of the bank to be slightly lower by 2.1% q‐o‐q.
Currently, the stock is available at a P/ABV of ~0.9x FY13E.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Bank of India
We expect a fall in net interest income of the bank on account of higher cost of deposits for the
bank.We expect NIM to come down from Q1FY12 on this account.
Growth in business for the y‐o‐y will be in line with industry, however, we express our concerns on
CASA which has come down from 28% last year (Q2FY11) to 25% in Q1FY12.
We expect slippages of ~Rs.17 bn in the current quarter; the same as Q1FY12 on account of system
based recognition of NPA’s of loans below Rs.0.5 mn which constitutes ~Rs.200 bn worth of loan
portfolio. This should impact the asset quality on the negative side.
We expect provisions to go up higher than the Q1FY12 level on account of deteriorating asset
quality.We expect profits of the bank to be slightly lower by 2.1% q‐o‐q.
Currently, the stock is available at a P/ABV of ~0.9x FY13E.
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