Bank Of India Posts Decent Q3FY13 Numbers
DSIJ Intelligence / 28 Jan 2013
Bank of India (BOI) today posted a decent set of Q3FY13 numbers. On one hand, the bank has seen improvement in some of the key parameters like Net Interest Margin (NIM) and asset quality while on the other hand; it posted subdued growth in its top and bottomline for the Dec 2012 quarter.
| Particulars (%) | Dec-12 | Dec-11 |
|---|---|---|
| Net Interest Income (NII) | 2308.69 | 2068.12 |
| Net Profit (Rs/Cr) | 803.48 | 716.15 |
| CASA | 33.84 | 32.41 |
| NIM | 2.5 | 2.42 |
| CAR (Basel II) | 10.59 | 11.18 |
| Provisions (Rs/Cr) | 915.78 | 693.07 |
| Gross NPAs | 3.08 | 2.74 |
| Net NPAs | 1.97 | 1.78 |
| Return On Assets | 0.75 | 0.8 |
| Cost to Income Ratio (%) | 41.61 | 42.7 |
The bank’s NIM moderated marginally, as it decreased by 5 basis points to 2.5% on a sequential basis while it stood higher by 8 basis points on a YoY basis. We believe that with interest rate expected to soften, the bank may see improvement in their margins going ahead. As on Dec 31, 2012, Capital Adequacy Ratio (CAR) of the bank stood at 10.59%. One could note that the government may infuse some capital in the bank in this Mar 2013 quarter, to improve its overall CAR.
As on Dec 2012, the bank’s deposit grew by 13.62% to Rs 349117 crore (against the RBI estimate of deposit growth of 15% for FY13) and Advances grew by 20% to Rs 276486 crore (outpacing the RBI estimate of 16% for FY13). CASA deposits of the bank also improved standing at 33.84% against 32.41% in the similar period last year.
On the segmental front, retail banking segment performed well as the revenue from the same increased by 19% to Rs 2652 crore while profit grew at a robust rate of 39% to Rs 572 crore on a YoY basis. Profit from the treasury grew at a good rate of 43% to Rs 270 crore while Wholesale banking segment witnessed some pressure de-growing by 62% to Rs 105 crore on a YoY basis.
The bank added 147 branches and 158 ATMs during FY13, taking the total network to 4147 and 1833 respectively. Overall, we suppose that the bank posted decent performance for the Dec 2012 quarter. On the valuation front, the bank is currently available at a Price to book value of around 1x. We would advise our readers to invest in a staggering manner in the counter keeping in mind longer horizon to garner better returns.
| Particulars | Revenue | Operating Profit | ||||
|---|---|---|---|---|---|---|
| Segment (Rs/Cr) | Dec-12 | Dec-11 | % Change | Dec-12 | Dec-11 | % Change |
| Treasury Operations | 2361.63 | 2224.91 | 6.14 | 270.06 | 475.16 | 43.16 |
| Retail Banking | 2651.7 | 2228.15 | 19.01 | 572.21 | 410.78 | 39.30 |
| Wholesale Banking | 3843.08 | 3610.92 | 6.43 | 104.74 | 276.72 | -62.15 |
| Other Banking Operations | 127.32 | -44.67 | -385.02 | -7 | -123.84 | -94.35 |
| Inter Segment | 23.9 | 17.04 | 40.26 |
|
| |
| Total | 8959.83 | 8002.27 | 11.97 | 940.01 | 1038.82 | -9.51 |
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