homemarket Newsstocks NewsBank of India shares end near 52 week high after management sounds optimistic of better asset quality
Bank of India shares end near 52-week high after management sounds optimistic of better asset quality
The bank expects to see loan growth of 12 percent in FY23 against the previous guidance of 8-10 percent.
Bank of India expects key metrics around asset quality to improve further by the end of the year, after reporting its best asset quality performance in seven years.
In an interview to CNBC-TV18, Managing Director and CEO AK Das expects the Gross NPA ratio to fall below the 8 percent mark by the end of the current financial year.
Bank of India's Gross NPA for the September quarter stood at 8.51 percent, compared to 9.3 percent during the June quarter.
Das also expects the credit cycle to improve going forward and expects loan growth of 12 percent in the current financial year. The bank earlier expected that figure to be between 8-10 percent.
For the September quarter, net slippages stood at Rs 1,200 crore, while cash recovery and upgradation stood at Rs 1,800 crore.
The lender's Net Interest Margin (NIM) stood at 3.49 percent which Das believes will be a challenge to sustain. However, he is confident of the fact that it can be sustained above the mark of 3 percent.
Shares of Bank of India ended near their 52-week high, after gaining 5.2 percent on Thursday.
(Edited by : Rukmani Krishna)
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