BoI falls like a pack of cards

Bank of India (BoI) declared Q3FY15 results and the share has reacted sharply, falling vertically down 5.5% and is now trading at Rs 231. While Q3 total income is flat QoQ at Rs. 11,947 crore (from Rs. 12,099 crore in Q2) net interest income (NII) contracted 8% QoQ to Rs. 2,780 crore.

Since provisions and write-offs rose to Rs. 1,581 crore in the third quarter (up from Rs. 963 in the second quarter), net profit was reduced t merely Rs. 173 crore, from Rs. 786 crore in the September 2014 quarter. Thus EPS for Q3 and 9mFY15 stand at Rs. 2.69 and Rs. 27.48 respectively.

Like all other PSU banks, the asset quality painted a similar grave picture. Gross NPAs, at Rs. 16,700 crore, are 4.07% of gross loans as against 3.54% as on 30trh September 2014. Net NPAs also ballooned to Rs. 10,061 crore representing 2.5% of net loans. On networth of Rs. 31,500 crore, current BVPS is Rs. 490. Hence at Rs. 231, share is trading at half its book value.