Visit http://indiaer.blogspot.com/ for complete details Union Bank of India (UNBK IN, CMP: `385; TP: `381; Outperform)
• We expect deposit repricing benefits to continue with average yields rising faster than increase in cost of deposits. A 10bps improvement in margins QoQ is also expected.
• Fee income growth should be marginally lower then growth in advances due to pressure on income from sale of third-party products.
• We expect provisions to be relatively higher than in 1QFY11 due to slippages of `7bn expected during 2QFY11. We are estimating provisions of `2.8bn in 2QFY11 vs `1.97bn in 1QFY11
No comments:
Post a Comment