Bank of India - 1QFY2014 Result Review - Angel Broking

Bank of India reported healthy operating numbers for the quarter, with better than expected asset quality numbers. NII expectedly grew at a healthy pace of 24.1% yoy. Other income grew by 40.4% yoy primarily boosted by trading gains, thereby aiding strong pre-provisioning profit growth of 30.3% yoy. On the asset quality front, Gross and Net NPA levels went up sequentially by 7.4% and 7.8% respectively better than peers. As the asset quality numbers came in better than expected, the increase in provisioning expenses was limited to 47.1% yoy, thereby resulting in earnings growth of 8.6% yoy. AT CMP BOI is currently trading at 0.4x FY2015E ABV.

We maintain our Accumulate recommendation on the stock.

Source : Equity Bulls

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