The share price of the Mid-cap bank stock rose 2.3 percent of Rs 111.8 of its intraday high from its previous close of Rs 109.2 after the bank announced raising fund through Qualified Institutional Placement (QIP) upto 4000 crores.
According to media reports, the Bank of India intends to raise funds through a Qualified Institutional Placement (QIP). The QIP is expected to cost between Rs. 3,500 and Rs. 4,000 crore. It will consist of a base issue worth 2,000-2,500 crore, with a greenshoe option worth 1,500 crore.
According to the Bank of India report, the net revenue increased by 29 percent year over year, from Rs 13,001 crore in Q2FY23 to Rs 16,779 crore in Q2FY24. Their revenue rose by 5.3 percent sequentially from Rs 15,926 crore in Q1FY24 to the current levels.
In addition, the company’s net profit rose by 97 percent year over year, from Rs 752 crores in Q2FY23 to Rs 1,488 crores in Q2FY24. Their profit increased by 0.8 percent on a quarterly basis from Rs 1,501 crore in Q1FY24 to the current levels.
Bank of India is a midcap company with a market capitalization of Rs 44,810 crores. The promoters own 81 percent of the company, while the general public owns 6 percent, foreign institutional investors own 3 percent, and domestic institutional investors own 10 percent.
Bank of India share price has risen by 20 percent year to date and by 48 percent in six months. The return on equity (ROE) of 7.5 percent, and a return on capital employed (ROCE) of 9.5 percent, with a CASA of 38.33.
Additionally the stock is trading 0.75time its book value,the company has low price to earnings ratio of 8.32 compared to its peer companies and the net profit margin is 8.1 percent it is higher than last 3 years.
Bank of India is a bank based in India. Treasury Operations, Wholesale Banking, and Retail Banking are the bank’s segments. Treasury operations encompass the entire investment portfolio, which includes government and other securities, money market operations, and foreign exchange operations.
Written by Sriram KV
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