Bank of India slips 6% on weak Q1 nos, stock tanks 27% in 2019 so far

Bank of India shares hit a 52-week low of Rs 70.55 apeice, slipping as much as 6.74 per cent in the intra-day trade on the BSE on Tuesday, after the bank's June quarter result for 2019-20 (Q1FY20) showed a weakened asset quality.

The public sector lender reported a net profit of Rs 242.6 crore, which was below most analysts' expectations. For instance, analysts at Prabhudas Lilladher had estimated the profit to come in at Rs 389.4 crore. It had posted a profit of Rs 95.1 crore in Q1FY19 and Rs 251.8 crore in the March quarter of fiscal year 2018-19 (Q4FY19).

The bank further reported gross non-performing assets (GNPA) of Rs 620.68 billion in the recently concluded quarter, up 2.4 per cent from Rs 606.04 billion in the year ago period. The same was 606.61 in Q4FY19. The net NPA was at Rs 192.88 billion, up from Rs 191.18 billion in the March quarter of FY119, but down from 279.32 billion in the corresponding quarter of the previous fiscal.

Further, the bank's GNPA ratio deteriorated sequentially. It came in at 16.5 per cent, up from 15.84 per cent clocked in Q4FY19. The NNPA ratio was 5.79 per cent, up from 5.61 per cent in Q4FY19.

The stock surpassed its previous 52-week low of Rs 72.6 apiece, hit earlier in the day ahead of the results. Shares of the bank have slipped 27 per cent in the calendar year 2019 thus far. In comparison, the BSE Sensex has gained 5 per cent during the period.

"Bank will likely see small loan growth as against a contraction earlier. Most operating metrics will see improvement mainly on lower base of last year but overall operations remain week," analysts at Prabhudas Lilladher had said in an earnings preview note.

Analysts at Sharekhan, too, have kept the Bank in the watchlist. The brokerage had a hold rating on the stock before result announcement.

At 1:13 pm, the stock was trading 5.88 per cent lower at Rs 71.2 apiece as against a 0.13 per cent rise in the BSE Sensex.