Visit http://indiaer.blogspot.com/ for complete details Canara Bank |
Strong operating performance; provisions remain low |
REDUCE
CMP: Rs657 Target Price: Rs636
n Canara Bank’s (CNBK) NII at Rs20.0bn was better than our expectations driven by 29bps qoq expansion in NIMs. Advances book was flat qoq
n However lower than expected other income and higher operating expenditure resulted in flat operating profit yoy
n Provisioning continues to remain low at 0.5% annualized as against an average of 0.8% for FY08-10
n At CMP the stock trades at 1.6x FY12ABV. We downgrade the stock to REDUCE rating with TP of Rs636
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