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Bank Of India Stock Analysis

Mid Cap
Evaluated by 3276 users | BSE: 532149 | NSE: BANKINDIA |
Bank - Public
Bank of India was founded on September 07, 1906 by a group of eminent businessmen from Mumbai. The bank was under private ownership and control till July 1969 when it was nationalized along with 13 other banks. Beginning with one office in Mumbai, with a paid-up capital of Rs 50 lakh and 50...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Bank Of India has not performed well majority of the past ten years indicating its past ten year financial track record is not good
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Net Interest Income (Rs. Cr.)7,8788,3959,13510,95511,46511,84811,97910,63413,79815,399
Y-o-Y Gr. Rt.33-6.6%8.8%19.9%4.7%3.3%1.1%-11.2%29.8%11.6%
Total Income24,50031,93035,88042,44447,96345,76446,40544,15945,79649,400
Y-o-Y Gr. Rt.-30.3%12.4%18.3%13%-4.6%1.4%-4.8%3.7%7.9%
Adjusted EPS (Rs.)
Adjusted Earning per Share is the company’s net profit per share after adjusting for extra-ordinary/exceptional items
46.5247.4947.3246.530.27-75.98-13.94-34.2-19.67-9.31
Y-o-Y Gr. Rt.-2.1%-0.4%-1.7%-34.9%-351%NANANANA
Book Value per Share (Rs.)
The total value that a company will fetch upon liquidation (if it is closed down), after settling all obligations is called its Book Value. Book value of a company includes only tangible assets. Book value allocated to each outstanding share is called Book Value per share
298.56351.66390.8420.87435.65318.83248.06178.72132.96118.1
Y-o-Y Gr. Rt.-17.8%11.1%7.7%3.5%-26.8%-22.2%-28%-25.6%-11.2%
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%)
  • >1.25 : Very Good
  • 1-1.25 : Somewhat Good
  • <1 : Not Good
Net Profit/Total Funds (%)0.790.720.650.530.29-1.02-0.26-0.97-0.88-0.45
To view Net NPA to Net Advances (%) Colour Rating Guide click here
Net NPA to Net Advances (%): Colour Rating Guide
  • < 0.5 : Very Good
  • 0.5-1 : Somewhat Good
  • >1: Not Good
Net NPA to Net Advances (%)0.911.472.0623.367.796.98.265.613.88
To view Capital Adequacy Ratio Colour Rating Guide click here
Capital Adequacy Ratio: Colour Rating Guide
  • > 12% : Very Good
  • 9%-12% : Somewhat Good
  • <9%: Not Good
Capital Adequacy Ratio - - - - - - - - - 0%
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Bank Of India should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Interest Income7.7%6.1%8.7%11.6%
Total Income8.1%0.6%2.1%7.9%
Adjusted EPS
Adjusted Earnings per Share is the Company’s net profit per share after adjusting for extra-ordinary/exceptional items.
-183.6%-179%NANA
Book Value per Share
-9.8%-23%-21.9%-11.2%
Share Price -20.6% -21.9% -39.6% -39.9%
Key Financial Ratios
RATIOS \ YEARSMar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Interest Earned / Total Income89.2289.689.4589.8291.0891.9885.386.7689.5486.22
Margins
To view Margins Colour Rating Guide click here
Margins: Colour Rating Guide
  • >2.75 : Very Good
  • 1.75-2.75 : Somewhat Good
  • <1.75 : Not Good
NIM (%)2.332.252.061.991.912.032.011.832.342.49
Performance Ratios
To view Performance Ratios Colour Rating Guide click here
Performance Ratios: Colour Rating Guide
  • >15% : Very Good
  • 12%-15% : Somewhat Good
  • <12% : Not Good
Return on Equity (%)16.9714.6612.6110.866.24-23.04-6.11-21.19-16.21-7.77
Liquidity Ratio
To view Liquidity Ratio Colour Rating Guide click here
Liquidity Ratio: Colour Rating Guide
  • >35 : Very Good
  • 25-35 : Somewhat Good
  • <25 : Not Good
CASA (%) 25.426.625.6222.9222.2525.7931.833435.8436.45
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 89.10%
Institutions 5.85%
Non-Institutions 5.05%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Bank Of India and arrived at the following conclusion:

Past 10 year's financial track record indicates that Bank Of India is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Bank Of India's performance infers:

Bank Of India earnings have declined by -179%, whereas share price has depreciated -21.9% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Bank Of India share prices over the last 10 years. Here is what we found out:

Bank Of India share price has depreciated -22.6% annually over the past ten years.

Bank of India was founded on September 07, 1906 by a group of eminent businessmen from Mumbai. The bank was under private ownership and control till July 1969 when it was nationalized along with 13 other banks. Beginning with one office in Mumbai, with a paid-up capital of Rs 50 lakh and 50 employees, the bank has made a rapid growth over the years and blossomed into a mighty institution with a strong national presence and sizable international operations. In business volume,

Bank of India was founded on September 07, 1906 by a group of eminent businessmen from Mumbai. The bank was under private ownership and control till July 1969 when it was nationalized along with 13 other banks. Beginning with one office in Mumbai, with a paid-up capital of Rs 50 lakh and 50 employees, the bank has made a rapid growth over the years and blossomed into a mighty institution with a strong national presence and sizable international operations. In business volume, the bank occupies a premier position among the nationalized banks.

The bank has 3101 branches in India spread over all states/ union territories including 141 specialized branches. These branches are controlled through 48 Zonal Offices. There are 29 branches/ offices (including three representative offices) abroad. The bank came out with its maiden public issue in 1997 and follow on Qualified Institutions Placement in February 2008. Total number of shareholders as on September 30, 2009 is 2,15,790.

While firmly adhering to a policy of prudence and caution, the bank has been in the forefront of introducing various innovative services and systems. Business has been conducted with the successful blend of traditional values and ethics and the most modern infrastructure. The bank has been the first among the nationalized banks to establish a fully computerized branch and ATM facility at the Mahalaxmi Branch at Mumbai way back in 1989. The bank is also a founder member of SWIFT in India. It pioneered the introduction of the Health Code System in 1982, for evaluating/ rating its credit portfolio.

The bank's association with the capital market goes back to 1921 when it entered into an agreement with the Bombay Stock Exchange (BSE) to manage the BSE Clearing House. It is an association that has blossomed into a joint venture with BSE, called the BOI Shareholding Ltd. to extend depository services to the stock broking community.

International Operations

The bank has presence across 4 continents and 18 countries covering all the major financial centres such as London, New York, Paris, Tokyo, Singapore and Hong Kong. As on March 31, 2011, bank has a network of 29 branches and offices abroad, including 5 representative offices.

The bank has also received permission from RBI to expand its overseas operations in Bangladesh, Canada, China, Egypt, New Zealand, Madagascar, Qatar, South Africa, UK (Leeds and Coventry), UAE and Vietnam. In New Zealand, the subsidiary Bank of India (New Zealand) Limited has been registered as a bank by the local regulators RBNZ on March 31, 2011. The bank has a Global Processing Centre (GPC) at Singapore with identical IT systems at Bank’s foreign branches, thereby improving the Management Information system and the customer service.

The bank is acting as Mandated Lead Arranger (MLA) and Joint Book Runner (JBR) for Multicurrency International Syndication loans and has arranged loan in USD, JPY, EURO and GBP currencies for Indian Corporates for their expansion / acquisition and Joint Ventures, covering a wide range of industries. The bank has also opened Global Remittance Centre (GRC) in Mumbai. The inward remittances, SB accounts, NRE/NRO Account opening of NRI customers have been centralized at GRC. The bank has initiated the process for establishing a hub for the purpose of handling the documentation part of Trade Finance portfolio.

Products & Services

Bank of India provides a wide range of products and services in deposits, loans, NRI banking, cards, and online services such as Internet banking. Following are the new products and services introduced:

  • Kits introduced for NRI Customers opening NRE/ NRO accounts at foreign centers
  • Calculation of interest on Savings Bank account, from April 01, 2010, has been changed from monthly product basis to daily product basis
  • Launched Marathi version of the Bank’s website
  • As per Finance Ministry guidelines and recommendations, the bank’s corporate web-site (English) has been enabled for persons with Disabilities.
  • The bank introduced issuance of insta-pin for Debit-cum-ATM Card. This will address the customer grievance for non-receipt of Re-pin and also save the effort and expense in generating and mailing Re-pins.
  • As a fraud prevention measure, SMS alerts - Star Sandesh are generated and provided to all customers who have registered their mobile number with the bank for all Debit transactions from delivery channels
  • Enabling internet banking customers to make online Fixed Deposit
  • Star eTrade - Online share trading - Integration with Gupta Equities Extended the facility of online e-Payment to the customers holding Bank’s Debit-cum-ATM card. This will enable the customers to use their Debit-cum-ATM cards for e-payments in addition to credit card and Internet banking account.
  • Mobile Banking facility is introduced as the latest alternate delivery channel which allows customers to do banking activities virtually from the convenience of the Mobile phone at any time and from anywhere. This facility is extended to all Retail internet banking customers.
  • Online Interbank Fund Transfer across banks, through Star Connect Internet Banking Services, using RTGS/ NEFT
  • BOI Star e-Pay for Auto-pay or on-line payment of various utility services/ bills
  • e-Payment for Direct & Indirect, Central Excise & Service Tax and e-Freight Payment
  • Online payment of Directorate General of Foreign Trade (DGFT) license fees
  • Online application for education loan, online booking of Railway & Airlines ticket
  • Facility to make online bid-cum-application for Application Supported by Blocked Amount (ASBA) IPO issues by retail internet banking customers having account with any DPO.

Bank’s Subsidiaries / Associates

BOI Shareholding Ltd. (BOISL)

Bank’s association with the Capital Market spans a period of nine decades. The clearing and settlement function of Bombay Stock Exchange (BSE) was being handled by the Bank since 1921. In 1989, Bank set-up ‘BOI Shareholding Ltd. (BOISL)’, joint venture with BSE, to manage the clearing house activities of the Stock Exchange. The bank is holding 51% of its paid up capital of Rs 2 crore.

The company has been carrying out the rolling and weekly settlements of trades executed by member brokers operating on the Exchange, BOISL is also a Depository Participant (DP) of both the Depositories viz. the National Securities Depository Ltd. (NSDL) and the Central Depository Services (India) Ltd. (CDSL) and provides depository services to the clearing members and investors. BOISL is the first Securities Clearing House in the country to have been awarded the ISO 9001-2000 ISO Certification.

Securities Trading Corporation of India Ltd. (STCI)

STCI Ltd. is one of the leading primary dealers in the country. It was established in 1999 with the objectives of widening the gilt and other debt security market through development of a vibrant secondary market. Bank of India with 29.96% holding is the single largest stakeholder in STCI having paid-up capital of Rs 380 crore. The company is an associate company of the bank in terms of Accounting Standards 21 (AS-21) of the Institute of Chartered Accountants of India.

With growing perception that primary dealership by itself is no longer an attractive business, STCI decided to hive off the primary dealership business to its new subsidiary namely STCI Primary Dealer Ltd. which commenced its operations from June 25, 2007. The subsidiary which started on a cautious note has made steady progress since then.

After formation of subsidiary, STCI took up activities of IPO funding, margin funding, commodity future trading, Asset Management, investments in short term corporate loans / CP, equity trading.

Star Union Dai-ichi Life Insurance Company Ltd. (SUDLife)

Bank of India, Union Bank of India and Dai-ichi Mutual Life Insurance Company, Japan have formed ‘Star Union Dai-ichi Life Insurance Company’ to take advantage of the growing insurance market and to provide quality assured insurance to its clients spread across the length and breadth of the country. The company has commenced insurance business since February 2009. BOI holds 48% in the company’s paid up capital of Rs 250.00 crore.

Union Bank holds 26% stake and Dai-ichi Mutual Life Insurance Company, Japan holds 26% in addition to the bank’s stake. In terms of the Joint Venture Agreement, the bank has transferred its 3% stake in favour of Union Bank.

ASREC (India) Ltd. (Associate)

The company was floated by the Specified Undertaking of the Unit Trust of India to undertake securitization and asset reconstruction activities. The company was granted Certificate of Registration by RBI under the SARFAESI Act, 2002 in the second half of FY 2004-05 and has since commenced full-fledged operation. Currently the Bank is holding 26.02% stake, in the equity capital of the company which is Rs 27.06 crore.

Indo Zambia Bank Ltd. (IZB)

IZB is a joint venture of three Indian Banks viz. Bank of India, Bank of Baroda, Central Bank of India and Government of Zambia. Each of the Indian Banks holds 20% of the share capital, whereas Government of Zambia holds 40% of the share capital. Indo-Zambia Bank Ltd is fine example successful joint venture. It enjoys the patronage of two friendly republics, the Government of Republic of Zambia and Government of India.

PT Bank Swadeshi Tbk, Indonesia

During FY 2007-08 the bank acquired a stake of 76% in PT Bank Swadeshi Tbk at a total consideration of Indian Rs 3.77 crore. The Bank has three Directors on the Board of PT Bank Swadeshi Tbk.

Bank of India (Tanzania) Ltd.

Bank of India (Tanzania) Ltd. is wholly owned subsidiary of the Bank and commenced operations on June 16, 2008 with first branch at Dar-Es-Saleam.

Bank of India (New Zealand) Ltd.

Bank of India (New-Zealand) Ltd. is wholly owned subsidiary of the bank with Rs 176.95 crore paid up capital. The bank has received a license to operate as a bank from Reserve Bank of New Zealand on March 31, 2011. The operations are likely to start shortly.

Business Initiatives

Keeping its growth aspirations in mind, the bank embarked upon a new bold vision Sankalp 10,000. Sankalp 10,000 rests on the three pillars of customer first, building winning teams and high performance driven culture. Under Project Sankalp, the organizational structure of the bank has been redesigned in September 2010 with its division in two distinctly separate groups of businesses i.e. (a) National Banking Group and (b) Wholesale and International Banking Group in order to have a more focused attention to each business segment. The two groups are headed by the two executive directors of the bank.

  • National Banking Group (Head Office) - The national banking group is comprised of rural banking, financial inclusion, retail banking and SME banking business units.
  • Wholesale and International Banking Group (Head Office) - The wholesale and international banking group are comprised large corporate banking, mid-corporate banking, project finance, transaction banking, international banking and treasury.
  • 15 rural centralized Credit Processing Centers (CPC) have been started at Belgaon, Ujjain, Barabanki, Mehasana, Ludhiana, Karad, Amalapuram, Tanjavur, Barasat, Hardoi, Nadiad, Ratnagiri, Nashik, Solapur and Barnagar.
  • In all, 40 focused districts have been identified in 19 zones to target large and medium farmers and large institutions with high credit quality.
  • Five New Retail Business Centres were launched in 5 identified Zones namely Bangalore, Chandigarh, Mumbai South, New Delhi and Pune on Pilot basis on January 14, 2011.
  • Five SME City Centres at Ahmedabad, Coimbatore, Kolkata, Ludhiana, and Pune were launched on  December 14, 2010. Subsequently, seven more SME City Centres at Bangalore, Chandigarh, Hyderabad, NewDelhi, Nagpur, Mumbai North and Vadodara have started functioning.
  • Mid-Corporate branches at Ernakulam, Andheri and Seepz opened, 10 Mid-Corporate CPCs started functioning and large corporate branches at Mumbai (Nariman Point) and Hyderabad opened.
  • The bank is treating financial inclusion as social cause and implementing it as a movement taking all banking products and services to those who are currently deprived from these services. So far, first step towards achievement of financial inclusion was opening of No-Frill Accounts and accordingly, the Bank has opened 50.07 lakh No-Frill Accounts.
  • The bank is also implementing IT solutions on end to end basis using hand held devices and smart cards. The bank has issued/ enrolled 6.01 lakh smart cards.

Milestones

  • It was first nationalised bank to establish to a fully computerized and ATM facility.
  • The first Indian bank to open its branch outside country in London in 1946.
  • The bank became the first to open branch in Europe - Paris in 1974.
  • The bank is the first PSU Bank in India to implement Twofactor Authentication (2FA) - Star Token for both Retail and Corporate internet banking customers as an additional security measure.
  • The first banks to recognize the difficulties faced by MSME in the wake of economic slowdown and proactively set up MSME Care Centres (Help Desks) to provide timely and needy support to MSME units. A Nodal Officer for SME has been identified in each zones to take care of MSME clients.

Awards

2010-2011

  • The bank received the Winners Award in International Banking Technology Award 2010 from IBA in the Best Business Enablement Initiative category in recognition of its achievement in Banking Technology for the Year 2009.
  • The bank adjudged FE-EY Most Efficient Public Sector Bank 2010 by Dalal Street.
  • Mumbai North Zone of the bank received Third Prize for use of Official Language Hindi in Bank from Government of India, Ministry of Home Affairs, Official Language Department.
  • The bank received the consolation prize from Maharashtra State Level Bankers Committee for commendable work done in implementation of official language in Hindi.
  • The bank received National Award for Best Bank in West Zone for PMEGP under lending to KVIC in August 2010.
  • The bank has been rated by The Economic Times/The Nielsen company survey ‘The Most Trusted Brands’ (MTB) 2010 as follows:- Under PSU Banking Category - 2nd next to SBI- Under Top Service Brands - 8th rank

2009-2010

  • Best Performance in Western Zone under the Rural Employment Generation Program (REGP) of KVIC.
  • The bank rated by the Economic Times / The Nielsen Company survey as ‘The Most Trusted Brands’ (MTB) 2009 as follows :- Under PSU Banking Category - 2nd next to SBI.- Under Top Service Brands - 8th
  • The Debutant - 1st time in top 100
  • NDTV Profit Business Leadership Awards 2009 - Best PSU Bank
  • Outlook money NDTV Profit Awards 2009 - Best Education Loan Provider - Runner up
  • CIO Green Information Technology Award
  • Dun & Bradstreet - Rolta Corporate Awards 2009, Best Bank under Banking Category
  • FE-EY Most Efficient Public Sector Bank Awards 2010 by Dalal Street
  • Second Rank for excellent performance in lending to Micro & Small Enterprises Sector by the Ministry of Micro, Small & Medium Enterprises. Also, ‘Best Performing bank’ for covering maximum number of Micro & Small accounts under collateral free lending scheme of CGTMSE

2008-09

  • The NDTV Business Leadership Awards 2008 - India’s Best PSU Bank Award.
  • Business World - PWC Survey - No. 1 Public Sector Bank
  • Business Today - KPMG Survey - Ranked No. 1 - The Best Banks 2008.
  • Dun & Bradstreet Study 2008 - Best Public Sector Bank and Overall Best Bank in the country.
  • Dun & Bradstreet - Rolta Corporate Awards 2008 - Top Indian Company under ‘Banks’
  • Prestigious CIO 100 Award 2008 for the Bank’s Green IT initiative

2007-08

  • Second National Award for excellence in lending to MSE sector for the year 2006-07.
  • Golden Jubilee Award 2007, for performance under KVIC during 2006-2007 under Western Region, issued by Ministry of Micro, Small & Medium Enterprise, Government of India.
  • Best Performance Award under ‘Mission Shakti’ for financing Women SHGs during 2007-08 in the State of Orissa by the Government of Orissa.
  • The bank was awarded International Award for Excellence in outsourcing sponsored by Everest Group & Forbes at New York, USA
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719
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