Bank of India Q2 profit seen down 2% to Rs 603 cr
Bank of India is likely to report a profit after tax of Rs 603 crore in the second quarter of FY12, a fall of 2% as compared to Rs 617 crore in the corresponding quarter of last fiscal.
Net interest income of the bank is expected to increase 8% to Rs 1,925 crore in the July-September quarter of FY12 versus Rs 1,776 crore in a year ago period.
Expectations
· Has been facing severe asset quality issues
· Reported Rs 1684 crore slippages in Q1
o Of which majority was seen in the agriculture portfolio – Rs 605 crore
· NPAs are likely to increase to due migration to system based NPA recognition
· Fresh slippages expected to continue
· NIMs should remain stable & could see some improvement
· In Q1 NIMs declined sharply by 75 bps QoQ to 2.2% due to
. Increase in cost of deposits
. Higher slippages
· Loan growth expected to remain healthy at 22%
· Deposit growth at 25%
....more info
Bank of India is likely to report a profit after tax of Rs 603 crore in the second quarter of FY12, a fall of 2% as compared to Rs 617 crore in the corresponding quarter of last fiscal.
Net interest income of the bank is expected to increase 8% to Rs 1,925 crore in the July-September quarter of FY12 versus Rs 1,776 crore in a year ago period.
Expectations
· Has been facing severe asset quality issues
· Reported Rs 1684 crore slippages in Q1
o Of which majority was seen in the agriculture portfolio – Rs 605 crore
· NPAs are likely to increase to due migration to system based NPA recognition
· Fresh slippages expected to continue
· NIMs should remain stable & could see some improvement
· In Q1 NIMs declined sharply by 75 bps QoQ to 2.2% due to
. Increase in cost of deposits
. Higher slippages
· Loan growth expected to remain healthy at 22%
· Deposit growth at 25%
....more info