South Indian Bank (SIB) : Research Report May 2011

by khalid on 08/05/2011 · 0 comments

South Indian Bank’s latest research report by Angel Broking is given below for serious investors, please have a look before invesring…….

Angel Broking is bullish on South Indian Bank stock and recommended ‘accumulate’ rating.
Current Market Price (CMP) is Rs 22.65
Target set by Angel Broking is Rs 25

Angel Broking research report is as follows :-

“The bank’s business growth continued to register strong traction, with advances growth at 27.1% yoy (6.8% qoq) and deposits growth at 29.2% yoy (10.1% qoq). The bank’s CASA deposits stood at Rs 6,404 crore (up by 5.9% qoq) and constituted 21.5% (down from 22.4% in 3QFY2011) of total deposits. NRE deposits increased by 2.7% sequentially to Rs 3,800 crore. The asset quality of the bank improved during 4QFY2011 with absolute gross and net NPAs decreasing by 9.2% and 19.3% qoq, respectively. Gross and net NPA ratios improved sequentially to 1.1% and 0.3%, respectively. The provision coverage ratio stood at 73.9% (70.7% in 3QFY2011) excluding technical write-offs. The slippage ratio for FY2011 stood at 0.7%, down from 1.5% in FY2010.”

“SIB plans to raise ~Rs 1,000 crore during FY2012, which will enable it to maintain its strong growth, especially in its gold loan business. Currently, the stock is trading at moderate valuations of 1.2x FY2013E ABV. In light of capital-raising and strong expansion plans, we value the bank at 1.3x FY2013E ABV. Hence, we recommend an Accumulate rating on the stock with a target price of Rs 25,” says Angel Broking research report.

Share’s Data :-
BSE Code : 532218
Market Cap : Rs 2,559.68 Crores
South Indian Bank Ltd. share’s CMP is Rs 22.65 on 6th May 2011.

Stay tuned to BelltheBull Blog for more on South Indian Bank Limited !

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