Hot Chips - Bank of India

Bank of India
BSE Code: 532149
Volume: 656974
CMP: 228.95

Like other PSU banks, Bank of India (BOI) has put up decent growth in its financials. For FY09, BOI’s deposits and advances grew by over 26 per cent, while recording a significant growth of almost 50 per cent in its bottomline on YoY basis. Despite this performance, the counter hasn’t performed on the bourses as compared to other private banking counterparts. However technically, in the last few trading sessions, the volumes have shot up significantly. The counter is expected to move up briskly in the near future. As a fund manager put it, the banking story is still on and investors will do well by investing for long-term in the top PSBs like BOI on account of the banks' growing financials as well as attractive valuations. While on the derivatives front, the counter has witnessed decent rise in the open interest, volumes as well as price that indicates the long build-up in the counter. Thus investors with medium-term perspective can take exposure in the counter.