Bank of India will be reporting its third-quarter earnings on Monday and analysts expect the lender to report a net loss for the fourth time in the last five quarters.
- Slippages expected to remain elevated. Last quarter, it was a Rs 3,800 crore, analysts on street are working with Rs 4,500 crore. So anything below Rs 4,000 crore will be positive.
- The asset quality of gross non-performing assets (NPAs) can deteriorate on account of the elevated slippages and provisions can remain elevated due to the fact that slippages are elevated.
- One needs to see whether this 7.6 percent on net NPA on account of higher provision comes down to below 6 percent, which is the Reserve Bank of India’s (RBI) threshold for prompt corrective action (PCA) banks.
- Mark-to-market treasury gains will aid the profits and improvement in net interest margin (NIMs) will be positive. Last quarter it was at 2.27 percent.
- CNBC-TV18’s poll suggests an net interest income (NII) growth of 19.2 percent YoY while the net loss could decline to Rs 784 crore versus Rs 2,341 crore in the previous year same quarter.