Bob Net For '96-97 Seen At Rs 275 Cr

In its offer document the bank also proposes to offer a premium of Rs 75 for a Rs 10 share. The bank has stated that the profit forecast, reviewed by BS Vaid & Co and BC Jain & Co, is based on the past audited results for the year ended March 31.

The bank, which will soon be coming out with a Rs 850-1000 crore equity issue, has stated in the draft prospectus submitted to Securities and Exchange Board of India (Sebi) that the equity capital of the bank will come down to Rs 296 crore from Rs 577 crore after the issue. As a result the bank expects the P/E ratio, on the post-offer capital, to increase to 12.31, up from 8.16.

 

Total income of the bank is expected to go up to Rs 4,624 crore, up from Rs 3,996.37 crore as on March 31, while interest income is slated to jump to Rs 4,074 crore in 1996-97 from Rs 3530.17 crore. The bank has projected a lower expenditure for the year. Expenditure is projected to come down to Rs 3612 crore in 1996-97 from Rs 3792.10 crore.

According to the draft prospectus, reserves of BoB are projected to double during the current financial year. Free reserves, which stand at Rs 800.03 crore is expected to jump to Rs 1734 crore after the equity offering. Consequently, the earnings per share to the investor is projected to touch Rs 9.29 while book value is slated to jump to Rs 68.58 from Rs 23.87.

BoB has stated that the return on average networth is forecast to rise to 16.14 per cent in 1996-97 from 15.77 per cent.

The bank has an aggregate amount of Rs 160.52 crore relating to income tax matters while claims against the banks stood at Rs 32.23 crore as on March 31. These claims are not acknowledged as debt and are treated as contingent liabilities by the bank.

The income tax proceedings relate to the assessment year 1984-85 to 1990-91. The aggregate amount, relating to interest tax matters against the bank, are to the tune of Rs 42.12 crore.