The bank reported a healthy and stable performance across the parameters: Loan growth was healthy at 4.3%/18.7% QoQ/YoY led by retail, NIMs were sequentially stable at 4.3%, asset quality was stable, and cost/Income ratio inched down further.
NRB remains a key beneficiary of the strong volume growth witnessed in the automobile segment across sectors with OEMs accounting for ~65% of revenues. Exports are also growing at a robust pace led by a recovery in the North-American and European truck/PV markets (~20% of revenue).
Net Sales and PAT of the company are expected to grow at a CAGR of 28% and 42% over 2017 to 202GB respectively.Hence, we say that, we are Overweight in this particular scrip for Medium term investment.
Net Sales and Operating Profit of the company are expected to grow at a CAGR of 34% and 70% over 2017 to 202oE,respectively. Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.