Buy Bank of India, target price Rs 120: Sharekhan by BNP Paribas
Bank of India with a target price of Rs 120. The current market price of Bank of India is Rs 106.74.
Bank of India, incorporated in the year 1906, is a banking company (having a market cap of Rs 43272.10 Crore).
Bank of India key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest On Balances with RBI and Other Inter-Bank Funds and Interest for the year ending 31-Mar-2023.
Financials For the quarter ended 30-06-2023, the company has reported a Consolidated Total Income of Rs 15926.04 Crore, down -4.73 % from last quarter Total Income of Rs 16715.95 Crore and up 42.10 % from last year same quarter Total Income of Rs 11207.57 Crore.
The bank has reported net profit after tax of Rs 1561.55 Crore in latest quarter.
Investment Rationale
BOI’s balance sheet has strengthened – capital ratios are healthy, with Tier-1 Capital at 13.8%. The bank’s excess liquidity profile (CD ratio ~71%, LCR ~179%) in an environment of deposit growth challenges, places it well to accelerate loan growth without worrying about the deposit growth.
The brokerage sees an upside risk to BOI’s earnings, led by healthy loan growth, stable margins, lower slippages in turn reduced credit cost along with strong recoveries. This should drive strong earnings growth in the near term and would boost the
return ratio profile.
Promoter/FII Holdings
Promoters held 81.41 per cent stake in the company as of 30-Jun-2023, while FIIs owned 2.25 per cent, DIIs 9.88 per cent.
