Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Results ahead of expectations
ING VYSYA bank (IVBL) results were above expectations. Net profit of
the bank in Q2FY12 increased 22.8% QoQ and 53.4% YoY at Rs 115.5 crs
on account of lower provisioning. Net interest income increased both
on YoY and QoQ basis. The bank’s asset quality has improved and the
bank reported overall decline in its gross and net NPAs.
NIM’s showed significant improvement both QoQ and YoY
Net Interest Income increased by 19.4% on YoY basis and 15.9% QoQ in
Q2FY12 to Rs. 304 crs primarily due to the repricing done in the
advances portfolio and capital infusion in end Q1 FY12. Management
indicated that NIMs for FY12 will remain broadly in the range of 3.15%‐
3.25%.
Non interest income decline on YoY basis; improves sequentially
Non interest income showed significant improvement on a sequential
basis and increased 15.6% to Rs 162.5 crs. However on a YoY basis it
declined 15.9% on a YoY basis due to one ‐ off investment gains
reported in Q2FY11.
Cost‐to‐income ratio shows improvement sequentially
Cost to income ratio of the bank stood at 59.4% for Q2FY12, as
compared to 63.5% in Q1FY12 and 58.8% in Q2FY11.
Advances continue to maintain growth momentum
Advances grew by 22.8% on a YoY basis aided by traction in business
banking segment. Management expects that the advance growth to be
in the range of 22%‐25% for FY12E.
Improvement in asset quality
The asset quality of the bank continued to improve resulting in high
reduction in provisions at Rs. 17.5 crs against Rs. 69.8 crs in Q2FY11.
Gross NPA ratio and Net NPA ratio were at 2.02% and 0.31%
respectively in Q2FY12. The provision coverage ratio improved to 84.8%
in Q2FY12 as against 72.8% in Q2FY11.
Valuation
The bank has continued to show an improvement in its financial and
operational parameters and we believe that the bank will continue to
impress with its strong financials. At CMP, the stock is trading at 1.22x
and 1.06x FY12E and FY13E Adj BVPS respectively and therefore we
maintain our BUY rating on the stock. Our target price for the stock is
Rs 479 based on a P/ABV multiple of 1.8x on its FY12E adjusted book
value of Rs.266 per share.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Results ahead of expectations
ING VYSYA bank (IVBL) results were above expectations. Net profit of
the bank in Q2FY12 increased 22.8% QoQ and 53.4% YoY at Rs 115.5 crs
on account of lower provisioning. Net interest income increased both
on YoY and QoQ basis. The bank’s asset quality has improved and the
bank reported overall decline in its gross and net NPAs.
NIM’s showed significant improvement both QoQ and YoY
Net Interest Income increased by 19.4% on YoY basis and 15.9% QoQ in
Q2FY12 to Rs. 304 crs primarily due to the repricing done in the
advances portfolio and capital infusion in end Q1 FY12. Management
indicated that NIMs for FY12 will remain broadly in the range of 3.15%‐
3.25%.
Non interest income decline on YoY basis; improves sequentially
Non interest income showed significant improvement on a sequential
basis and increased 15.6% to Rs 162.5 crs. However on a YoY basis it
declined 15.9% on a YoY basis due to one ‐ off investment gains
reported in Q2FY11.
Cost‐to‐income ratio shows improvement sequentially
Cost to income ratio of the bank stood at 59.4% for Q2FY12, as
compared to 63.5% in Q1FY12 and 58.8% in Q2FY11.
Advances continue to maintain growth momentum
Advances grew by 22.8% on a YoY basis aided by traction in business
banking segment. Management expects that the advance growth to be
in the range of 22%‐25% for FY12E.
Improvement in asset quality
The asset quality of the bank continued to improve resulting in high
reduction in provisions at Rs. 17.5 crs against Rs. 69.8 crs in Q2FY11.
Gross NPA ratio and Net NPA ratio were at 2.02% and 0.31%
respectively in Q2FY12. The provision coverage ratio improved to 84.8%
in Q2FY12 as against 72.8% in Q2FY11.
Valuation
The bank has continued to show an improvement in its financial and
operational parameters and we believe that the bank will continue to
impress with its strong financials. At CMP, the stock is trading at 1.22x
and 1.06x FY12E and FY13E Adj BVPS respectively and therefore we
maintain our BUY rating on the stock. Our target price for the stock is
Rs 479 based on a P/ABV multiple of 1.8x on its FY12E adjusted book
value of Rs.266 per share.
No comments:
Post a Comment