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Analyst Meet / AGM - Analyst Meet

Expect restructuring of Rs 1000-1200 crore of advance in Q3FY2014

Bank of India

01-Nov-2013, 03:14
Bank of India conducted the analyst meet on 31 October 2013 to discuss the financial performance of bank for the quarter ended September 2013 and the prospects of the bank. Vijayalakshmi R Iyer- CMD addressed the meet:
Highlights:

Bank has further reduced the bulk deposits to 8.1% of total deposits at end September 2013 from 8.6% a quarter ago and 22.4% a year ago.
The strong deposit growth was driven by $1.13 billion for FCNR deposits raised during the quarter under review.
The CASA ratio eased slightly due to strong growth in other deposits. Bank proposes to improve the CASA deposits growth to 23% by end March 2014 from 14% at end September 2013.
Bank has improved the domestic CD ratio to 72.3% at end September 2013 from 66.1% a quarter ago and 68.9% a year ago. Bank proposes to further improve domestic CD ratio to support NIMs.
Bank has improved asset quality reducing the NNPA ratio on YoY as well as QoQ basis to 1.85% at end September 2013. Provision coverage ratio (PCR) improved to 63.29% at end of September 2013 compared to 60.97% a quarter ago as well as a year ago. Bank proposes to further improve PCR, going forward.
Top 100 accounts accounting for 47% of the NPA are managed at CMD level.
Bank has conducted fresh restructuring of advances worth Rs 855 crore the quarter ended September 2013, after Rs 755 crore in quarter ended June 2013.
Bank expects the restructuring of about Rs 1000-1200 crore in Q3FY2014, while anticipates that the overall restructured advance portfolio would remain steady.
As per the bank, the capital infusion of Rs 1000 crore would help to increase the CRAR Tier I ratio by 40 bps.
During the quarter bank has provided additional credit of Rs 6500 crore to NBFCs, which was among the major factors boosting credit growth.
The strong growth in foreign business mainly boosted the overall business growth of the bank, while about 50-60% of the increase in foreign business was contributed by Rupee depreciation.
Bank has targeted the advances growth of 18% and expects the deposits growth of 17% for FY2014, intending to grow 3% above the system growth.
Loan growth of the bank would be mainly driven by retail, SME and mid-corporate segments.
Bank expects the asset quality under cotrol, while targets strong recovery and upgradations.
Bank expects domestic NIM at 3.1%, while lowered the foreign margins guidance from 1.20% earlier to 1.15% for FY2014.
Bank sold assets amounting to Rs 370 crore to ARCs in the quarter ended September 2013 above the net present value recording the profit of about Rs 8 crore. Bank has received 10%-15% of receivables on asset sales in cash and the balance in terms of security receipts.