InvestorQ : How should I approach the Bank of India stock after the recent results? Is it a good PSU banking stock to buy?
Priyanka N made post

How should I approach the Bank of India stock after the recent results? Is it a good PSU banking stock to buy?

Answer
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NISHA Nayak answered.
1 year ago


In the March quarter, Bank of India turned from a loss into profit by reporting net profit of Rs.252 crore against a huge loss of Rs.3969 crore in the fourth quarter last year. There was a 58% rise in the net interest income of the bank for the fourth quarter at Rs.4044 crore. While the gross NPAs still are quite high at 15.84%, the net NPAs are down to just 5.61%. While the NPA cycle may not have bottomed out, there is surely a sign that most of the losses in the account are more or less provided for. The bank may also get a reprieve from the NCLAT recoveries in the next couple of years, which could further boost its bottom line.

AT the current market price of Rs.81, it is quite close to its year lows and the downside risk may not be too high at these levels. Also the government has again promised to capitalize these PSU banks in the current fiscal year and that should give them some more room to manoeuvre their loan books. BOI could be one of the stocks to benefit from a likely turnaround in banking stocks.