IOB - Result Review - Angel Broking

Indian Overseas Bank reported weak set of numbers for the quarter, dragged by asset quality pressures. NII for bank de-grew by 0.9% yoy. Other income grew by 108.3% yoy primarily boosted by trading gains, thereby aiding pre-provisioning profit growth of 24.5% yoy. On the asset quality front, Gross and Net NPA levels jumped up sequentially by 12.5% and 13.7%, respectively, on an already large base. Consequently, the provisioning expenses for the bank increased 62% yoy, thereby resulting in earnings de-growth of 46.1% yoy.

At CMP stock trades at 0.3x FY2015E ABV. We maintain Neutral recommendation on the stock.

Source : Equity Bulls

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