Bank of India at new low
Bank of India cup of woes just got filled to the brim. Rating agency, Standard & Poor’s (S&P) lowered the Bank’s standalone credit profile from BBB- to BB+. This lowering was done as S&P expects the Bank’s asset quality to remain weak over the next 12 months. The long term rating remains intact due to continued expectations of Govt support.
The Bank’s asset quality showed a serious dent during its Q4FY15 performance wherein Gross NPA deteriorated to 5.39%, showing a QoQ increase of 132 bps while Net NPA rose 88 bps to 3.38%. Even in terms of profitability, it was a bad show as it posted a loss of Rs.56 crore during the quarter and worst part is that this loss was despite a write back of Rs.773 crore.
The stock price hit a new low today at Rs.181.05 and even yesterday, it had hit a new 52-week low at Rs.186.05. The Bank declared its Q4 performance on 28th May and ever since then, the stock has been hitting new lows.