25 October 2010

Result Reviews – 2QFY2011 indian bank, by Angel Broking,

Bookmark and Share Visit http://indiaer.blogspot.com/ for complete details 􀂄 􀂄


Indian Bank
For 2QFY2011, Indian Bank registered moderate net profit growth of 11.8% yoy to
`416cr, above our estimates of `377cr mainly on account of lower provisioning expenses.
Advances grew moderately by 2.1% qoq and healthy 28.9% yoy, while deposits increased
strongly by 7.7% qoq and 22.4% yoy. On a sequential basis, calculated NIMs remained
flattish at 3.77% (up 3bp), in line with expectations. This resulted into healthy NII growth of
29.5% yoy. Gross and net NPA ratios of the bank improved to 1.29% (from 1.45% in
1QFY2011) and 0.73% (from 0.76% in 1QFY2011), respectively, with a provision
coverage ratio of 83.3%, including write-offs (83.0% in 1QFY2011). The operating cost
increased by 19.3% yoy and 18.8% qoq to `528cr. The cost-to-income ratio stood at
41.7%, above its eight-quarter average of 37.9%.
At the CMP, the stock is trading at 1.39x FY2012E ABV, close to our target multiple of
1.40x FY2012E ABV. Hence, we maintain Neutral on the stock.

No comments:

Post a Comment