Bank of India - Q4FY2013 Result Review - Angel Broking

Bank of India announced its 4QFY2013 results today. Bank reported subdued set of numbers, as its pre-provisioning profit grew by 3.0%. On the asset quality front, on an absolute basis, Gross and Net NPA levels increased by 1.6% and 9.0% qoq, respectively. Gross NPA ratio was 9bp lower at 3.0%, while Net NPA increased by 9bp at 2.1%. Due to the asset quality pressures (slippages and incremental restructuring) faced during the quarter, the provisioning expenses for the bank grew by 115.3% yoy and it reported a PBT level earnings decline of 57.0% yoy, however, tax write-backs during the quarter (at Rs. 192cr compared to tax expenses of Rs. 360cr during 4QFY2012) limited the net profit decline to 20.6% yoy. At the CMP, the stock is trading at 0.7x FY2015E ABV.

We recommend an Accumulate rating on the stock with a target price of Rs. 360.

Source : Equity Bulls

Keywords