Bank of India Performance FY 08 - by Narasimhan
Bank of India announced its results for the year ended March 31, 08. The major financial indicators are tabulated below
| | | |
| | Year ended 31.03.08 | Year ended 31.03.07 |
| Deposits | 150012 | 119882 |
| | (25.13%) | |
| Advances | 114793 | 86791 |
| | (32.26%) | |
| Business Mix | 264805 | 206676 |
| | (28.13%) | |
| Net Interest Income | 4229 | 3440 |
| | (22.94%) | |
| Other Income | 2117 | 1563 |
| | (35.44%) | |
| Operating Expenses | 2645 | 2608 |
| | (1.42%) | |
| Operating Profit | 3701 | 2395 |
| | (54.53%) | |
| Core Operating Profit | 3028 | 1966 |
| (excl. Treasury) | (54.02%) | |
| Provisions | 1692 | 1272 |
| | (33.02%) | |
| Net Profit | 2009 | 1123 |
| | (78.90%) | |
| Gross NPA | 1931 | 2101 |
| Gross NPA % | 0.0168 | 0.0242 |
| Net NPA | 592 | 812 |
| Net NPA % | 0.0052 | 0.0095 |
| Provision Coverage | 81.25% | 69.91% |
| CRAR - Basel I | 12.95% | 11.58% |
| CRAR - Basel II | 12.04% | - |
| Net Int Margin -Domestic | 3.42% | 3.44% |
| Net Int Margin - Foreign | 1.21% | 1.38% |
| Net Int Margin -Global | 2.95% | 2.99% |
| Interest Spread | 2.64% | 2.71% |
| Return on Assets | 1.25% | 0.88% |
| Cost to Income Ratio | 41.68% | 52.13% |
| Return on Equity | 39.37% | 30.36% |
| EPS (Rs.) | 40.83 | 23.04 |
| Book value per Share (Rs) | 164.05 | 112.75 |
Net Interest income for the year went up by 22.94% to Rs. 42.29 Billion and at 22.94% over past year. The net profit has gone up to Rs. 20.09 Billion registering a growth of 78.90% over the previous year. The net interest margin at 3.42% has remained flat.
The non performing assets, net of provision, are 0.52% of the total assets giving bank to retain aggressive credit expansion strategy. The return of owned funds is higher at 39.37% despite the bank having raised resources from share holders. The return on assets is higher at 1.25%. The capital adequacy per Basel II is comfortable at 12.04%. 81.25% of the assets have been covered for provision after evaluating the risks associated.
What the investors can do?
The bank is showing a strong performance is continually posting good results.
Investors may hold this share as the good results will rekindle investor interest in this stock.
The stock prices show a short term peaking and near term investors can take a buy position. The long term buyers can wait till the market settles down to a lower level as the growth is unlikely to be linear and therefore will give ample opportunity to enter during the year.