Visit http://indiaer.blogspot.com/ for complete details Corporation Bank |
Better than expectations |
BUY
CMP: Rs735 Target Price: Rs860
n CRPBK’s Q2FY11 NII/PAT at Rs7.2bn/Rs3.5bn better than expected driven by 33% yoy growth in advances and 38bps yoy expansion in NIMs to 2.6%.
n Though slippages at 1.0% annualized higher than 0.8% in FY10, still better than industry average.
n The reported provision cover improved by 150bps to 63.6%, PCR as per RBI norms at 79%
n Valuations not unreasonable at 1.4x FY12E ABV. With maintain our BUY recommendation on stock with TP of Rs860 (1.6x FY12E ABV)
No comments:
Post a Comment