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Shares of Bank of India fell as much as 6.2 per cent to Rs 101.10, their biggest intraday percentage fall since April 20 on weak Q4 results.
The public sector lender has posted a three-fold jump in net loss at Rs 3,969.27 crore during the quarter ended March 31, 2018, due to higher provisioning for bad loans. The bank’s losses were pegged at Rs 1,045.52 crore in the year-ago period.
Credit Suisse has cut the price target to Rs 103 from Rs 122 and maintained 'underperform' rating. It says with weak core profitability even as credit costs normalise, BoI will likely need capital to fund growth.
Morgan Stanley says pre-provisioning operating profit was 43 per cent below estimates due to weak net interest income and high operating expenses.
About 8 million shares changed hands in the first hour of trade, higher than 30-day average of about 7.8 million shares. One of 16 brokerages rated the stock as 'buy', two 'hold' and 13 “sell” or lower; its median price target is Rs 110, according to Thomson Reuters data.
Up to Monday's close, the stock had fallen 36.5 per cent this year compared with a 18.14 per cent decline in the state-run bank index.
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