Bank of India 1Q FY 2014

1QFY2014 Result Update | Banking
July 29, 2013
Bank of India
Performance Highlights
Particulars (` cr) NII Pre-prov. profit PAT 1QFY14 2,537 2,180 964 4QFY13 2,476 2,075 757 % chg (qoq) 2.5 5.1 27.4 1QFY13 2,044 1,674 887 % chg (yoy) 24.1 30.3 8.6
NEUTRAL
CMP Target Price
Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Banking 10,935 1.0 392/179 159,615 10 19,748 5,886 BOI.BO BOI@IN
`184 -
Source: Company, Angel Research
Bank of India reported a healthy operating performance for the quarter, with better than expected asset quality numbers. NII expectedly grew by 24.1% yoy. Other income grew by 40.4% yoy, primarily boosted by trading gains, thereby aiding strong pre-provisioning profit growth of 30.3% yoy. On the asset quality front, Gross and Net NPA levels increased sequentially by 7.4% and 7.8%, respectively. As the asset quality numbers came in better-than-expected, the increase in provisioning expenses was limited to 47.1% yoy, thereby resulting in earnings growth of 8.6% yoy. Healthy Business growth; Asset quality remains under pressure: During 1QFY2014, the bank registered a healthy 18.2% yoy growth in its overall gross advances, aided by robust 29.0% yoy growth in its international loan book partly on back of INR depreciation. Overall deposits for the bank grew at a robust pace of 22.4% yoy. The domestic CASA ratio declined 130bp qoq to 30.6%. The Domestic NIM improved by 7bp qoq to 3.1%, as the domestic cost of funds came in 13bp lower on back of reduced reliance on high cost bulk deposits. The bank reported a subdued performance on the non-interest income (excluding treasury) front with a de-growth of 11.3% yoy. Income from treasury quadrupled on a yoy basis at `524cr. During the quarter, the banks asset quality remained under pressure, as the annualized slippage ratio for the bank came in at 2.7%. Recoveries/upgrades during the quarter came in higher at `706cr as compared to `248cr in 4QFY2013 and an average of `502cr in the last four quarters. Gross and Net NPA levels increased by 7.4% and 7.8%, qoq respectively. The PCR remained stable sequentially at 61.0%. During the quarter, the bank restructured advances worth `755cr (compared to `2,159Cr restructured in 4QFY2013), thereby taking its total standard restructured book to ~`16,231cr (~5.3% of its loan book). The Management has guided for ~`1,500cr of slippages and `800-1,000cr of restructuring in the next quarter. Outlook and valuation: Recent macro developments (RBI liquidity tightening measures) amidst a weak macro-environment clearly indicate that the asset quality pressures for the banking sector are unlikely to abate as quickly as was anticipated earlier and are most likely to have a corresponding adverse implication on sectors loan growth and margins performance, going ahead. Our view on the sector as a whole and stock in particular, largely depend on RBIs policy directions and its possible implications on the sectors loan growth, margins and asset quality. Moreover, the bank is expected to raise capital this fiscal, which is likely to be at book-dilutive valuations. Currently, we recommend a Neutral rating on the stock.
Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 64.1 15.6 14.0 6.3
Abs. (%) Sensex BOI
3m 2.4 (43.7)
1yr 18.7 (40.4)
3yr 9.6 (53.4)
Key financials (Standalone)

Y/E March (` cr) NII % chg Net profit % chg NIM (%) EPS (`) P/E (x) P/ABV (x) RoA (%) RoE (%) FY2012 8,313 6.4 2,678 7.6 2.4 46.6 3.9 0.6 0.7 15.0 FY2013 9,024 8.5 2,750 2.7 2.2 46.1 4.0 0.5 0.7 13.0 FY2014E 10,640 17.9 3,280 19.3 2.3 55.0 3.3 0.5 0.7 13.7 FY2015E 11,995 12.7 3,710 13.1 2.2 62.2 3.0 0.4 0.7 13.9
Vaibhav Agrawal
022 3935 7800 Ext: 6808 vaibhav.agrawal@angelbroking.com Sourabh Taparia 022 3935 7800 Ext: 6872 sourabh.taparia@angelbroking.com
Harshal Patkar
022 3935 7800 Ext: 6847 harshal.patkar@angelbroking.com
Source: Company, Angel Research; Note: CMP as of July 27, 2013
Please refer to important disclosures at the end of this report
Bank of India | 1QFY2014 Result Update
Exhibit 1: 1QFY2014 performance (Standalone)

Particulars (` cr) Interest earned - on Advances / Bills - on investments - on balance with RBI & others - on others Interest Expended Net Interest Income Other income Other income excl. treasury - Fee Income - Treasury Income - Others Operating income Operating expenses - Employee expenses - Other Opex Pre-provision Profit Provisions & Contingencies - Provisions for NPAs - Provisions for Investments - Other Provisions PBT Provision for Tax PAT Effective Tax Rate (%)
1QFY14 8,541 6,190 1,885 465 0 6,004 2,537 1,181 657 313 524 344 3,718 1,537 963 575 2,180 695 627 (80) 148 1,486 522 964 35.1
4QFY13 8,005 5,926 1,720 398 127 5,696 2,310 1,094 937 380 157 557 3,404 1,495 855 640 1,909 1,511 1,089 258 164 398 (192) 590 (48.2)
% chg (qoq) 6.7 4.5 9.6 16.8 NA 5.4 9.8 7.9 (29.9) (17.6) 233.1 (38.3) 9.2 2.8 12.6 (10.2) 14.2 (54.0) (42.4) (131.0) (9.8) 273.0 NA 63.3 8334bp
1QFY13 7,709 5,541 1,896 272 0 5,666 2,044 841 740 303 100 437 2,884 1,211 743 468 1,674 472 569 (136) 39 1,201 314 887 26.1
% chg (yoy) 10.8 11.7 (0.6) 71.3 NA 6.0 24.1 40.4 (11.3) 3.3 421.9 (21.4) 28.9 27.0 29.5 22.9 30.3 47.1 10.2 (41.0) 282.0 23.7 66.2 8.6 898bp
FY2013 31,909 23,139 7,261 1,257 251 22,885 9,024 3,766 3,319 1,263 447 2,056 12,790 5,332 3,131 2,201 7,459 4,451 3,726 76 648 3,008 258 2,749 8.6
FY2012 28,481 20,241 7,142 834 264 20,167 8,314 3,321 2,912 1,272 409 1,641 11,635 4,941 3,053 1,887 6,694 3,116 2,026 437 654 3,578 900 2,678 25.2
% chg (yoy) 12.0 14.3 1.7 50.7 (4.9) 13.5 8.5 13.4 14.0 (0.7) 9.3 25.3 9.9 7.9 2.5 16.6 11.4 42.8 84.0 (82.5) (0.9) (15.9) (71.3) 2.7 (1657)bp
Exhibit 2: 1QFY2014 Actual vs. Estimates

Particulars (` cr) NII Non-interest income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT
Actual 2,537 1181 3,718 1,537 2,180 695 1,486 522 964
Estimates 2,497 861 3,358 1,426 1,933 1,008 925 166 758
Var (%) 1.6 37.2 10.7 7.8 12.8 (31.1) 60.7 213.4 27.1
July 29, 2013
Exhibit 3: 1QFY2014 performance analysis (Standalone)

Particulars Balance sheet Advances (` cr) Deposits (` cr) Credit-to-Deposit Ratio (%) Domestic current deposits (` cr) Domestic saving deposits (` cr) Domestic CASA deposits (` cr) Global CASA ratio (%) CAR (%) Tier 1 CAR (%) Profitability Ratios (%) Dom. cost of deposits Dom. yield on advances Dom. yield on investments Dom. yield on funds Dom. cost of funds Dom. Reported NIMs Cost-to-income ratio Asset quality Gross NPAs (` cr) Gross NPAs (%) Net NPAs (` cr) Net NPAs (%) Provision Coverage Ratio (%) Slippage Ratio LLP to avg assets (%) 9,413 3.0 6,409 2.1 61.0 2.7 0.5 8,765 3.0 5,947 2.1 60.9 2.7 1.0 7.4 5bp 7.8 4bp 5bp 5bp (47)bp 6,752 2.6 4,413 1.7 60.9 2.8 0.6 39.4 48bp 45.2 41bp 11bp (6)bp (5)bp 7.1 11.3 8.2 8.8 6.3 3.1 41.4 7.2 11.3 7.9 9.1 6.4 3.0 41.9 (5)bp (2)bp 28bp (29)bp (13)bp 7bp (52)bp 7.3 11.3 8.0 9.1 6.8 2.6 42.0 (15)bp 7bp 19bp (30)bp (58)bp 51bp (63)bp 305,600 289,368 414,964 381,840 73.6 18,367 78,320 96,687 23.3 10.7 8.0 75.8 16,769 77,031 93,800 24.6 11.0 8.2 5.6 261,341 8.7 338,983 (214)bp 9.5 1.7 3.1 (127)bp (36)bp (22)bp 77.1 15,926 67,308 83,233 24.6 11.4 8.3 16.9 22.4 (345)bp 15.3 16.4 16.2 (125)bp (76)bp (31)bp 1QFY14 4QFY13 % chg (qoq) 1QFY13 % chg (yoy)
Source: Company, Angel Research; Note: Profitability ratios excluding CIR for domestic operations
Healthy business growth; Domestic NIM improves sequentially

During 1QFY2014, the bank registered a healthy 18.2% yoy growth in its overall gross advances, aided by a robust growth in its international loan book (at 29.0% yoy partly on back of INR depreciation). Domestic advances for the bank grew by 13.9% yoy (aided by healthy growth of 22.9% yoy in agri segment and 22.5% yoy in SME segment). Overall, deposits for the bank grew at a robust pace of 22.4% yoy. Domestic CASA deposits grew at 16.2% yoy, as both savings and current deposits grew at a healthy pace of 16.4% and 15.3% yoy, respectively. Consequently, the domestic CASA ratio for the bank declined sequentially by 130bp to 30.6%. The domestic NIM improved by 7bp sequentially to 3.1%, as the domestic cost of funds came in lower by 13bp qoq, as the bank substantially reduced its reliance on high cost bulk deposits. Domestic yield on advances came in lower only by 2bp qoq to 11.3%. Global NIM grew by 4bp qoq to 2.5%.
July 29, 2013
Exhibit 4: Business growth remains healthy

Adv. yoy chg (%) 25.0 20.0 15.0 10.0 77.1 77.0 75.8 73.6 Dep. yoy chg (%) 79.2 CDR (%, RHS) 80.0 78.0 76.0 74.0 72.0 70.0 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
Exhibit 5: Healthy Domestic CASA growth

35.0 33.0 12.2 31.0 29.0 9.8 10.0 5.0 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 12.0 Domestic CASA ratio (%) CASA yoy growth (%, RHS) 15.3 16.3 20.0 15.0
21.6 15.7
19.5 11.2
20.0 13.6
16.3 20.0
16.9 22.4
31.2
31.8
32.8
31.9
25.0
Exhibit 6: Healthy Gr. in Agri and SME aides Domestic loan growth
Particulars (` cr) Agricultural SME Corporates Retail Domestic advances International Global advances 1QFY14 28,147 37,942 22,972 100,549 4QFY13 % chg (qoq) 27,622 37,230 22,350 88,932 1.9 1.9 2.8 13.1 1QFY13 % chg (yoy) 22,910 30,966 23,624 77,949 22.9 22.5 13.2 (2.8) 13.9 29.0 18.4 % to total 9.1 12.3 38.7 7.4 67.5 32.5 100.0
119,822 116,834 208,883 204,036 309,432 292,968
2.6 105,893 2.4 183,393 5.6 261,341
Exhibit 7: Trend in yield and cost ratios (Global)

Particulars (%) Cost of deposits Yield on advances Yield on investments Yield on funds Cost of funds Reported NIM
1QFY14 5.7 8.6 8.0 7.3 5.1 2.5
4QFY13 5.8 8.6 7.8 7.5 5.3 2.5
% chg (qoq) (4)bp (3)bp 23bp (25)bp (13)bp 4bp
1QFY13 5.9 8.9 8.0 7.9 5.8 2.3
30.6
5.0
27.0
% chg (yoy) (23)bp (28)bp 4bp (58)bp (65)bp 23bp
July 29, 2013
Exhibit 8: Costs of funds decline on lower bulk deposits

(%) 7.5 7.0 6.5 6.0 5.5 5.0 4.5 4.0 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
Exhibit 9: Domestic NIM increases by 7bp qoq

(%) 3.5 Reported NIM 3.00 2.80 3.07
Cost of funds 6.84 6.92 6.77 6.39 6.26
3.0 2.56 2.5 2.0 1.5 1QFY13
2.84
2QFY13
3QFY13
4QFY13
1QFY14
Subdued non-interest income (excl. treasury) performance

During the quarter, the banks performance on the non-interest income (excluding treasury) front was subdued with de-growth of 11.3% yoy to `657cr. Income from the forex segment grew sharply by 120.6% yoy to `206cr. On the CEB income front, the bank witnessed a modest growth of 3.3% yoy to `313cr. Income from treasury quadrupled on a yoy basis at `524cr. Overall, the non-interest income for the bank grew by 40.4% yoy to `1,181cr.
Exhibit 10: Subdued non-interest income (excl. Treasury) performance

Particulars (` cr) CEB Treasury Forex Others Other income Other income excl. treasury
1QFY14 4QFY13 313 524 206 138 1,181 657 380 157 185 371 1,094 937
% chg (qoq) 1QFY13 (17.6) 233.1 11.1 (62.8) 8.0 (29.9) 303 100 93 344 841 741
% chg (yoy) 3.3 421.9 120.6 (59.9) 40.4 (11.3)
Asset quality pressures continue

During the quarter, the banks asset quality remained under pressure, as the annualized slippage ratio for the bank came in at 2.7%, similar to the levels witnessed in 4QFY2013. Recoveries/upgrades during the quarter came in higher at `706cr as compared to `248cr in 4QFY2013 and an average of `502cr in the last four quarters. Despite elevated slippages, higher recoveries/upgrades, aided the bank to contain the sequential increase in gross NPA levels to 7.4%. The banks PCR remained largely stable sequentially at 61.0%. Net NPA levels came in higher sequentially by 7.8%. Gross and Net NPA ratio marginally inched up 5bp and 4bp qoq respectively to 3.0% and 2.1%. The Management has guided for ~`1,500cr of slippages in the next quarter and targets to contain its Gross and Net NPA ratio at 2.95% and 1.95%, respectively for FY2014. During the quarter, the bank restructured advances worth `755cr (compared to `2,159cr restructured in 4QFY2013), thereby taking its total standard restructured book to ~`16,231cr (~5.3% of its loan book). A large chunk of restructuring for the bank has come from sectors like Infra (including Power), Aviation, Textiles, and
July 29, 2013
Iron & Steel. Going ahead, as per the Management, the restructuring during the next quarter is likely to be in the range of `800-1,000cr.
Exhibit 11: Slippages stabilize at 2.7%

3.5 2.8 2.1 1.4 0.7 (0.0) 2.8 1QFY13 4.4 2QFY13 2.0 3QFY13 2.7 4QFY13 2.7 1QFY14 0.5 0.6 1.0 0.5 Slippages (%) 1.5 Credit cost (%, RHS) 1.8 1.5 1.2 0.9 0.6 0.3 -
Exhibit 12: NPA ratios stable sequentially

Gross NPAs (%) 4.0 3.5 3.0 2.5 2.0 1.5 1.0 59.0 60.9 61.0 60.7 60.9 Net NPAs (%) PCR (%, RHS) 63.0 61.0
2.6 1.7
3.4 2.0
3.1 2.0
3.0 2.1
0.5 -
3.0 2.1
55.0 1QFY14 10.7 2.7 2.8 8.2 8.0 1QFY14
1QFY13
2QFY13
3QFY13
4QFY13
Exhibit 13: Cost ratios improve marginally qoq

Cost-to-income ratio (%) 44.0 43.0 42.0 41.0 40.0 1.2 1.2 Opex to average assets (%, RHS) 1.4 1.4 1.4 1.3 1.4
Exhibit 14: Capital adequacy trends

12.0 11.4 3.1 8.0 1.3 1.3 4.0 8.3 8.1 7.6 Tier-I CAR (%) 11.1 3.0 Tier-II CAR (%) 11.0 10.6 3.0
42.0
40.0
42.8
41.9
39.0 38.0
41.4
1.2 1.2 1QFY13 2QFY13 3QFY13 4QFY13

1QFY13
2QFY13
3QFY13
4QFY13
1QFY14
July 29, 2013
Investment arguments
Reasonably high fee income with a moderate funding mix
International operations contribute a substantial ~32.5% (29.0% yoy growth in 1QFY2014, partly on account of INR depreciation) to the banks advances. International operations enable a wider spectrum of fee-based services to the banks domestic corporate and retail customers; further, they enable foreign currency fund-based services to Indian corporate, and savings products to the banks PIO clients abroad. The bank has a moderate funding mix, with domestic CASA ratio at 30.6% as of 1QFY2014.
Investment concerns Asset quality remains on the radar

After moderating in FY2011, asset quality pressures had again re-surfaced for the bank over the last two years. In FY2012, the annualized slippage ratio for the bank came in at 2.5%, while for FY2013 it increased to 2.9%. During 1QFY2014, the annualized slippage rate came in at 2.7%. Going ahead, we remain cautious on the incremental asset quality pressures (slippages and incremental restructuring) for the bank, as we take into account the banks high exposure to stressed sectors/companies, overall weak macro-economic environment and the recent macro developments.
Tier-I Capital adequacy ratio remains relatively low

As of 1QFY2014, the banks CAR under Basel-II stood at 10.7%, with tier I at 7.98%. Under Basel-III, the banks CAR stands at 10.4%, with tier-I at ~7.6%, lower vis--vis peers. Going forward, the bank plans to raise capital of ~`2,200cr in the second half of the current fiscal, apart from any capital infusion from the Government. Any capital raising for the bank is likely to be at book-decretive valuations.
Outlook and valuation

Recent macro developments (RBI liquidity tightening measures) amidst a weak macro-environment clearly indicate that the asset quality pressures for the banking sector are unlikely to abate as quickly as was anticipated earlier and are most likely to have a corresponding adverse implication on the sectors loan growth and margins performance, going ahead. Our view on the sector as a whole and stock in particular, largely depend on RBIs policy directions and its possible implications on the sectors loan growth, margins and asset quality. Moreover, the bank is expected to raise capital this fiscal, which is likely to be at book-dilutive valuations. Currently, we recommend a Neutral rating on the stock.
July 29, 2013
Exhibit 15: Key assumptions

Particulars (%) Credit growth Deposit growth CASA ratio NIMs Other income growth Growth in staff expenses Growth in other expenses Slippages Coverage
Earlier estimates FY2014E 16.0 15.0 25.2 2.3 1.6 15.0 15.0 2.7 65.0 FY2015E 16.0 15.0 25.3 2.2 9.2 15.0 15.0 2.2 67.5
Revised estimates FY2014E 14.0 15.0 25.2 2.3 2.0 17.5 15.0 2.8 60.0 FY2015E 16.0 15.0 25.3 2.2 6.0 12.5 15.0 2.3 65.0
Exhibit 16: Change in estimates

FY2014E Particulars (` cr) NII Non-interest income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT Earlier estimates 10,632 3,826 14,459 6,131 8,327 3,876 4,451 1,157 3,294 Revised estimates 10,640 3,842 14,482 6,209 8,273 3,449 4,824 1,544 3,280 % chg 0.1 0.4 0.2 1.3 (0.7) (11.0) 8.4 33.4 (0.4) Earlier estimates 11,999 4,177 16,176 7,051 9,125 2,961 6,164 2,095 4,069 FY2015E Revised estimates 11,995 4,074 16,069 7,049 9,020 3,400 5,620 1,910 3,710 % chg (0.0) (2.5) (0.7) (0.0) (1.2) 14.8 (8.8) (8.8) (8.8)
Exhibit 17: P/ABV band

1000 800 600 400 200 0 Price (`) 0.5x 0.8x 1.1x 1.4x 1.7x
Oct-02
Oct-09
Feb-05
Feb-12
Sep-12
Nov-06
May-03
May-10
July 29, 2013
Nov-13
Sep-05
Jun-07
Dec-03
Aug-08
Dec-10
Jan-08
Apr-06
Mar-02
Mar-09
Apr-13
Jul-04
Jul-11
Exhibit 18: Recommendation summary

Company AxisBk FedBk HDFCBk ICICIBk* SIB YesBk AllBk AndhBk BOB BOI BOM CanBk CentBk CorpBk DenaBk IDBI# IndBk IOB J&KBk OBC PNB SBI* SynBk UcoBk UnionBk UtdBk VijBk Reco. Buy Neutral Buy Buy Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Accumulate Neutral Neutral Neutral Neutral Neutral CMP (`) 1,107 347 645 932 22 367 76 74 573 184 47 269 55 303 59 68 97 45 1,129 157 596 1,765 94 62 134 43 42 Tgt. price (`) 1,348 745 1,131 1,979 Upside (%) 22 16 21 12 FY2015E P/ABV (x) 1.2 0.8 3.0 1.3 0.8 1.5 0.3 0.5 0.6 0.4 0.5 0.4 0.5 0.4 0.4 0.4 0.3 0.3 0.9 0.3 0.6 1.0 0.5 0.6 0.4 0.3 0.4 FY2015E Tgt. P/ABV (x) 1.5 3.5 1.6 1.1 FY2015E P/E (x) 7.1 6.7 14.3 9.4 5.3 7.4 2.3 3.2 4.0 3.0 3.6 3.1 3.5 2.9 2.4 3.1 2.4 2.6 5.4 2.5 3.6 6.2 3.4 4.0 2.8 2.2 3.9 FY2013-15E EPS CAGR (%) 19.1 2.9 26.3 17.4 5.7 16.9 18.3 (0.3) 16.8 16.2 10.0 15.4 40.1 5.7 3.7 25.1 7.0 67.0 (1.7) 17.0 10.8 17.5 (8.5) 67.5 14.7 54.6 9.5 FY2015E RoA (%) 1.6 1.0 1.9 1.6 0.9 1.3 0.7 0.7 0.9 0.7 0.6 0.8 0.5 0.7 0.7 0.8 0.9 0.5 1.2 0.8 1.0 1.0 0.6 0.6 0.7 0.6 0.4 FY2015E RoE (%) 18.1 12.3 22.8 16.2 16.2 22.8 13.6 13.2 16.0 13.9 15.3 14.2 12.8 14.2 14.7 13.3 14.7 11.7 16.8 12.9 15.7 17.0 14.6 13.6 15.2 14.7 11.5
Source: Company, Angel Research; Note:*Target multiples=SOTP Target Price/ABV (including subsidiaries), #Without adjusting for SASF
Company Background
Bank of India (BoI) is amongst the five largest banks in India, with a balance sheet size of over `4.8lakh cr. The bank has a pan-India network of above 4,300 branches, of which ~64% are located in rural and semi-urban areas. The bank also has considerable presence overseas, which accounts for ~32% of its total loans (amongst the highest in the Indian banking industry).
July 29, 2013
Income statement (Standalone)

Y/E March (` cr) NII - YoY Growth (%) Other Income - YoY Growth (%) Operating Income - YoY Growth (%) Operating Expenses - YoY Growth (%) Pre - Provision Profit - YoY Growth (%) Prov. & Cont. - YoY Growth (%) Profit Before Tax - YoY Growth (%) Prov. for Taxation - as a % of PBT PAT - YoY Growth (%) FY10 5,756 4.7 2,617 (14.3) 8,373 (2.1) 3,668 18.5 4,705 (13.8) 2,211 71.1 2,494 (40.1) 753 30.2 1,741 (42.1) FY11 7,811 35.7 2,642 1.0 10,452 24.8 5,068 38.2 5,384 14.4 1,889 (14.6) 3,495 40.2 1,007 28.8 2,489 42.9 FY12 8,313 6.4 3,321 25.7 11,635 11.3 4,941 (2.5) 6,694 24.3 3,116 65.0 3,578 2.3 900 25.2 2,678 7.6 FY13 9,024 8.5 3,766 13.4 12,790 9.9 5,332 7.9 7,459 11.4 4,451 42.8 3,008 (15.9) 258 8.6 2,750 2.7 FY14E 10,640 17.9 3,842 2.0 14,482 13.2 6,209 16.5 8,273 10.9 3,449 (22.5) 4,824 60.4 1,544 32.0 3,280 19.3 FY15E 11,995 12.7 4,074 6.0 16,069 11.0 7,049 13.5 9,020 9.0 3,400 (1.4) 5,620 16.5 1,910 34.0 3,710 13.1
Balance sheet (Standalone)

Y/E March (` cr) Share Capital Reserves & Surplus Deposits - Growth (%) Borrowings Tier 2 Capital Other Liab & Prov. Total Liabilities Cash balances Bank balances Investments Advances - Growth (%) Fixed Assets Other Assets Total Assets - Growth (%) FY10 526 13,704 229,762 21.1 14,079 8,320 8,590 274,982 15,603 15,628 67,080 168,491 17.9 2,352 5,829 274,982 21.9 FY11 547 16,743 298,886 30.1 12,862 9,160 12,975 351,173 21,782 15,528 85,872 213,096 26.5 2,481 12,413 351,173 27.7 FY12 575 20,387 318,216 6.5 22,749 9,366 13,243 384,535 14,987 19,725 86,754 248,833 16.8 2,772 11,466 384,535 9.5 FY13 597 23,322 381,840 20.0 25,889 9,478 11,477 452,603 21,967 32,869 94,614 289,368 16.3 2,870 10,916 452,603 17.7 FY14E 597 25,905 439,116 15.0 28,413 9,241 13,335 516,607 19,760 25,830 125,500 329,879 14.0 3,178 12,459 516,607 14.1 FY15E 597 28,813 504,983 15.0 32,522 9,010 15,390 591,315 22,724 29,566 138,576 382,660 16.0 3,528 14,261 591,315 14.5
July 29, 2013
10
Ratio analysis
Y/E March NIMs Cost to Income Ratio RoA RoE B/S ratios (%) CASA Ratio Credit/Deposit Ratio CAR - Tier I Asset Quality (%) Gross NPAs Net NPAs Slippages Loan Loss Prov./Avg. Assets Provision Coverage Per Share Data (`) EPS ABVPS DPS Valuation Ratios PER (x) P/ABVPS (x) Dividend Yield DuPont Analysis (%) NII (-) Prov. Exp. Adj. NII Treasury Int. Sens. Inc. Other Inc. Op. Inc. Opex PBT Taxes RoA Leverage (x) RoE 2.3 0.9 1.4 0.2 1.7 0.8 2.5 1.5 1.0 0.3 0.7 20.4 14.2 2.5 0.6 1.9 0.1 2.0 0.7 2.7 1.6 1.1 0.3 0.8 21.8 17.3 2.3 0.8 1.4 0.1 1.5 0.8 2.3 1.3 1.0 0.2 0.7 20.6 15.0 2.2 1.1 1.1 0.1 1.2 0.8 2.0 1.3 0.7 0.1 0.7 19.7 13.0 2.2 0.7 1.5 0.1 1.6 0.7 2.3 1.3 1.0 0.3 0.7 20.2 13.7 2.2 0.6 1.6 0.0 1.6 0.7 2.3 1.3 1.0 0.3 0.7 20.7 13.9 5.5 0.8 3.8 4.0 0.6 3.8 3.9 0.6 3.8 4.0 0.5 5.4 3.3 0.5 5.4 3.0 0.4 6.3 33.1 231.9 7.0 45.5 288.3 7.0 46.6 324.1 7.0 46.1 345.2 10.0 55.0 373.0 10.0 62.2 433.9 11.5 2.9 1.3 2.9 0.7 65.5 2.2 0.9 1.7 0.3 72.2 2.3 1.5 2.5 0.6 64.2 3.0 2.1 2.9 0.9 60.9 4.0 2.5 2.8 0.6 60.0 4.3 2.1 2.3 0.5 65.0 27.8 73.3 12.9 8.5 25.4 71.3 12.2 8.3 26.7 78.2 12.0 8.6 25.6 75.8 11.4 8.4 25.2 75.1 10.7 8.2 25.3 75.8 10.2 8.0 FY10 2.4 43.8 0.7 14.2 FY11 2.6 48.5 0.8 17.3 FY12 2.4 42.5 0.7 15.0 FY13 2.2 41.7 0.7 13.0 FY14E 2.3 42.9 0.7 13.7 FY15E 2.2 43.9 0.7 13.9
July 29, 2013
11
Research Team Tel: 022 - 39357800
E-mail: research@angelbroking.com
Website: www.angelbroking.com
DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Pvt. Ltd., its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Pvt. Ltd. or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Pvt. Ltd. has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Pvt. Ltd. endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Pvt. Ltd. and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Pvt. Ltd., nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Ltd. and its affiliates may have investment positions in the stocks recommended in this report.
Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered
Bank of India No No No No
Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors
Ratings (Returns):
Buy (> 15%) Reduce (-5% to -15%)
Accumulate (5% to 15%) Sell (< -15%)
Neutral (-5 to 5%)
July 29, 2013
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Bank of India 1Q FY 2014

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Bank of India 1Q FY 2014

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1QFY2014 Result Update | Banking

July 29, 2013

Source: Company, Angel Research

Abs. (%) Sensex BOI

1yr 18.7 (40.4)

3yr 9.6 (53.4)

Key financials (Standalone)

Source: Company, Angel Research; Note: CMP as of July 27, 2013

Please refer to important disclosures at the end of this report