Bank of India

Bank of India provides banking & financial services. Its services include cash management, forex, treasury products, trade finance, deposits, retail banking, and third-party products. The bank has 4,952 branches in India.

Bank of India - Recommendation

• High slippage due to BoI’s conservative approach on recognizing NPAs, despite most loans being under consortium‐lending arrangements.

• No major improvement is expected on margins

• Asset quality pressures get aggravated, no respite seen in the near term

Weak asset quality continues to put pressure on growth and profitability for the bank. Maintain NEUTRAL with a target price of Rs 140.

Bank of India - Financial Summary

BUSINESS DESCRIPTION

Bank of Baroda is engaged in providing various services, such as personal banking, corporate banking, international banking, small and medium enterprise (SME) banking, rural banking, non-resident Indian (NRI) services, and treasury services. The Bank's segments include Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations. The Bank offers personal banking services, such as deposits, loans, mobile banking and wealth management services; business banking services, such as Baroda Money Express, debit cards, and collection services; corporate banking services, such as appraisal and merchant banking, and cash management and remittances; international banking services, such as export, import, and trade finance, and correspondent banking; rural banking services, such as deposits, priority sector advances, financial inclusion and lockers, and treasury services, such as domestic and forex operations. The Bank operates a network of approximately 5,330 branches.

Bank of India, incorporated in the year 1906, is a Large Cap company (having a market cap of Rs 11,320.5 Cr.) operating in the Banks sector.

Bank of India key Products/Revenue Segments include

• Interest & Discount on Advances & Bills which contributed Rs 30370.90 Cr to Interest Income (72.66% of Total Interest Income)

• Income From Investment which contributed Rs 8952.13 Cr to Interest Income (21.41% of Total Interest Income)

• Interest On Balances with RBI and Other Inter-Bank Funds which contributed Rs 2120.94 Cr to Interest Income (5.07% of Total Interest Income)

• The interest which contributed Rs 352.49 Cr to Interest Income (0.84% of Total Interest Income)

for the year ending 31-Mar-2016.

The Bank has reported a Gross Non Performing Assets (Gross NPAs) of Rs 51874.50 Cr. (13.38% of total assets) and Net Non-Performing Assets (Net NPAs) of Rs 28260.40 Cr. (7.78% of total assets).

MANAGEMENT & GOVERNANCE