United Bank of India- Results inline with expectations- ACCUMULATE:: Emkay

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United Bank of India

Results inline with expectations

ACCUMULATE

CMP: Rs 99                                       Target Price: Rs 110

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n     UNTDB’s Q4FY11 results inline with expectation with net profit at Rs1.4bn and NII at Rs5.7bn. The NII growth driven by 26.7% growth in advances, albeit NIM’s contracted by 5bps

n     Pension liability revised downwards to Rs3.7bn (including Rs1bn for retired) vs Rs5.5bn stated earlier

n     The bank reported higher slippages of Rs3.3bn during the quarter as against slippages of Rs6.5bn for 9MFY11, resulting in higher slippage rate of 2.4% (annualized) for the quarter

n     At the CMP, the stock is quoting at 1.0x FY12E and 0.8x FY13E ABV. We maintain Accumulate rating with TP of Rs110