Visit http://indiaer.blogspot.com/ for complete details Allahabad Bank |
Robust performance; maintain strong BUY |
BUY
CMP: Rs241 Target Price: Rs300
n Superb results for Q2FY11 driven by 14% qoq growth in NII, 16% qoq growth in net profit. The growth was achieved on 8.4% qoq growth in loans and 16bps qoq expansion in NIMs
n The strong growth was achieved despite providing Rs349mn higher than Q2FY10 for pension/gratuity and provisions on the agri debt relief NPAs
n The slippages excluding agri NPAs were at Rs2.3bn, 1.1% annualised. The provision cover stood at 69% for Q2FY11
n Valuations attractive at 1.6x FY11E/1.2x FY12E ABV. We maintain our BUY rating with price target of Rs300 (at 1.5x FY12E ABV). Remains our top pick in mid-sized PSU banks
No comments:
Post a Comment