06 May 2011

South Indian Bank Strong results; Asset quality surprises positively BUY:: Emkay

Please Share:: Bookmark and Share India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


South Indian Bank
Strong results; Asset quality surprises positively


BUY

CMP: Rs 22                                       Target Price: Rs 30

n     SIB’s Q4FY11 results better than our expectations with net profit of Rs817mn and NII of Rs2.2bn
n     8.2% qoq growth in NII was led by a strong 8.7%qoq growth in advances and stable NIMs at 3.1%. Improvement in yields more than compensated for 33bps increase in cost of funds
n     The asset quality surprised positively as the gross and net NPAs were down by 9.2% and 19.2% qoq. The provision cover also improved by 324bpr to 73.9%
n     We remain extremely positive with strong RoEs + robust Tier I + clean asset quality. Maintain BUY with price target of Rs30. High gold loan portfolio a key risk

No comments:

Post a Comment