United Bank of India Downgrade to HOLD :Emkay,

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

United Bank of India

Downgrade to HOLD

HOLD

n     UNTDB’s NII (Rs6.2bn) marginally ahead of expectations. Net profit at Rs1.25bn was dragged by higher NPA provisions and tax outflow. Slippages at Rs6.2bn was a key -ve

n     Deposits were up 1.5% qoq; CASA ratio remains strong at ~40% levels. NIM expansion was aided by improvement in LDR and broad based loan growth

n     … however, with net NPL/networth at high 27%, tier-I CAR, adjusted for same, will fall to sub-7%. Resultant, growth rate is set to moderate. Factoring 16% loan CAGR over FY11-13E

n     Lowered our FY12/FY13 earnings estimates by 18%/21% by factoring in relatively higher credit cost, growth moderation and margin compression. Downgrade to HOLD with tp of Rs73