Sharekhan has given Buy recommendation for Bank of India with a target price of Rs. 100 in its research report issued on Jun 07, 2021
Sharekhan’s research report on Bank of India
Bank of India (BOI) posted mixed results for Q4FY2021 where, operational numbers were below expectations and NIMs contracted, but despite challenges, the asset quality improved. Weak topline resulted in margin contraction and FY2021 domestic NIMs stood at 2.7%, down 58 bps, while global NIM at 2.48% was down 45 bps from FY2020 levels. Asset quality improved with GNPA/NNPA at 13.77%/3.35%, down 83 bps/38 bps, respectively, from proforma GNPA/NNPA ratio, SMA 1 and 2 book has nearly halved on a q-o-q basis; CET-1 improved to 11.5%.
We have fine tuned our estimates and target multiples. We upgrade the stock to Buy with a revised PT of Rs. 100.