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South Indian Bank Q3FY18: Performance in line; Upside of 25% - IndiaNotes.com
South Indian Bank Q3FY18: Performance in line; Upside of 25%
Prabhudas Lilladher | Published: 11 Jan, 2018  | Source : IndiaNotes.com

SIB earnings were slightly below estimates on back of lower treasury gains, but bank continues to strengthen its core operating performance with improving loan growth to 16-17% (partly due to base effect) leading to better NII. Opex excluding the wage provisions (Rs100mn provision) was also under control. CASA remains slow on base effect from demonetisation but ratio remains stable. Bank has maintained its key guidances’ for FY18 on loan growth/margins/credit cost/slippages and we expect FY19/FY20 would see further improvement in return ratios as SIBs legacy balance sheet issues are now taken care and business focus has returned. Retain BUY with TP of Rs 40 (from Rs 37) based on 1.5x Sep-19E ABV.


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About Prabhudas Lilladher

Prabhudas Lilladher has a nationwide distribution network, consisting of branches, franchisees and associates, providing a comprehensive gamut of financial services in the Institutional and Retail domain. Their services includes Equity, derivatives; margin funding, mutual funds, PMS, IPOs and online trading.

 

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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.

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