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Analyst Meet / AGM - Analyst Meet

Expect to receive government capital allocation in the second trache

Bank of India

12-Feb-2015, 06:00
Bank of India conducted an analyst meet on 12 February 2014 to discuss the financial performance of bank for the quarter ended December 2014 and the prospects of the bank. Vijayalakshmi R Iyer- CMD addressed the meet:
Highlights:

Bank stepped up provision for wage revision to 13% with the retrospective effects, as against provision made at the rate of 11% earlier. Thus, the wage revision provision jumped to Rs 178 crore in Q3FY2015 against Rs 81 crore in Q2FY2015 and Rs 40 crore in Q3FY2014. Bank is holding outstanding wage revision provisions worth Rs 680 crore.

Out of the fresh slippages of Rs 3356 crore in Q3FY2015, bank has recovered and upgraded about Rs 894 crore advances during auditing downgraded earlier on account of technical reasons.

As per the bank, in the absence of these upgraded slippages, banks reduced GNPA at 3.8% and NNPA at 2.32% at end December 2014 could have been below September 2014 levels. Meanwhile, banks net profit could have been higher at Rs 250 crore in Q3FY2015 against reported net profit of Rs 178 crore.

Slippages from restructured advances remained major contributor to overall slippages to NPA at Rs 1000 crore in Q3FY2015 in addition to Rs 1495 crore in the previous quarter.

Bank has conducted fresh restructuring of Rs 769 crore in Q3FY2015 and Rs 3989 crore in 9MFY2015. The outstanding standard restructured advances of the bank stood at Rs 20250 crore at end December 2014.

Bank has restructuring pipeline of Rs 750-1000 crore for Q4FY2015.

Bank targets loan growth of 10-12% for FY2015, to be mostly driven by international segment in Q4FY2015.

Bank is on track to meet regulatory priority sector lending targets for FY2015.

Bank proposes to grow CASA deposits by 12% in FY2015.

Bank proposes to achieve 5% growth in Q4FY2015 against degrowth in 9MFY2015.

Bank proposes to reduce GNPA below 4% and NNPA below 2.3% by end March 2015.

Bank targets domestic NIM at 2.65% and foreign NIM at 1.35% in Q4FY2015.

Bank proposes to open additional 50 branches and 100 ATMs in Q4FY2015.

Bank expects pick up in credit growth to be two quarters away.

Bank has tied up with the UFirst Money for payment bank license, which already has payment products and running profitably.

Bank could not receive any government budgetary capital allocation in the first list, which was based on profitability performance indicators. However, the bank has represented to the government and expects to receive decent capital allocation in the second tranche.