Shares of Bank Of India tumbled over 8% on Monday after its profit missed analysts' estimates in the third quarter.
The public sector lender's profit rose 62% year-on-year to Rs 1,870 crore in the quarter ended December, according to an exchange filing on Friday. Analysts polled by Bloomberg had projected a consensus estimate of Rs 2,183 crore.
BOI Q3 FY24 Earnings Highlights (Standalone)
Net interest income down 2% to Rs 5,463.5 crore. (YoY)
Net profit up 62% at Rs 1,869.5 crore. (Bloomberg estimate: Rs 2,183 crore)
Gross NPA contracts to 5.35% vs 5.84% (QoQ)
Net NPA contracts to 1.41% vs 1.54% (QoQ)
Shares of the lender fell as much as 8.55% during the day to Rs 138.60 apiece, the lowest since Feb. 1. It was trading 6.73% lower at Rs 141.35 per share, compared to a 0.25% advance in the benchmark Nifty 50 at 11:00 a.m.
The share price has risen 78.70% in the last 12 months. The total traded volume so far in the day stood at 4.2 times its 30-day average. The relative strength index was at 62.
Two out of four analysts tracking BOI have a 'buy' rating on the stock, one recommends a 'hold' and another suggests a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 3.4%.
"There has been some pressure on margin because of the fact that there is liquidity tightness in the system," Rajneesh Karnatak, managing director and chief executive officer of Bank of India told NDTV Profit.
While the margins have been lower on a sequential basis, Karnatak said that on a nine-month basis both margin and NII have improved. He added that he doesn't see the tightness persisting.
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