City Union Bank Ltd. share price target

ICICI Securities Ltd | Retail Equity Research PAT came in at | 126 crore, up 12% YoY higher than estimated | 113 crore, mainly led by strong traction in net interest income (NII), up 21.4% YoY to | 307 crore & sharp surge in other income rising 38% YoY to | 143 crore (high trading income) vs. estimate | 116 crore Asset quality witnessed marginal deterioration but was still better placed relative to peers. Absolute GNPA increased 9% QoQ and 31% YoY to | 649 crore. Net additions came in at | 118 crore similar to...

Background: City Union Bank (CUB) among the smaller-sized banks in the private sector space operates a network of 528 branches. With about 2/3rds of its branches located in Tamil Nadu the bank's business is largely skewed towards the Southern India. Majority of its business comes from branches located in South India. CUB has a significant chunk of its branches in urban and semi-urban areas. With no identifiable promoters CUB is run by a team of...

Background: City Union Bank (CUB) among the smaller-sized banks in the private sector space operates a network of 525 branches. With about 2/3rds of its branches located in Tamil Nadu the bank's business is largely skewed towards the Southern India. Majority of its business comes from branches located in South India. CUB has a significant chunk of its branches in urban and semi-urban areas. With no identifiable promoters CUB is run by a team of...

CUB, yet again delivered a superior performance across parameters. Healthy book growth (18%) was broad based and CASA ratio (20.7%) was stable. Net stressed assets were stable QoQ, even as slippages (2.25% ann.) marginally increased. All time high NIM (4.2%) was a positive surprise, while recoveries of Rs 450mn (highest in last 6-qtrs) also impressed.

ICICI Securities Ltd | Retail Equity Research PAT came in at | 123.7 crore (in line), up 14.7% YoY, owing to strong traction in NII of 25% YoY to | 301 crore Higher traction in NII was due to 13 bps QoQ improvement in margins to 4.2% (highest in last several quarters) and healthy credit growth of 17% YoY to | 21972 crore The operational profit was up by 15.4% YoY to | 237 crore (in line) Asset quality witnessed some deterioration but seems under control...

Update 2: The City Union Bank Ltd. (CUB) Target of Rs.145 achieved. Book Profit. Update 1: The City Union Bank Ltd. (CUB) rallied from the low of 106 to the high of 130 after our report publication, so on 28th July 2016 we advised to book 50% profit and Trailed stop loss to 115....

As expected, CUB improved across parameters this quarter. Growth picked up in core segments (traders and MSME), NIM was healthy (4.1%), C-I was stable and, most important, asset quality seems to be on a gradual and sustainable mend.

City Union Bank reported a healthy set of numbers. PAT came in at | 123.5 crore, up 10.8% YoY vs. estimate of | 120 crore due to higher-than-expected NII of | 280 crore (up 25% YoY) . Higher traction in NII was owing to an 11 bps QoQ improvement in margins to 4.07% (highest in the last several quarters) and healthy credit growth of 18.5% YoY to | 21216 crore.Operational profit increased at a healthy pace of 19.6% YoY to | 236 crore, above our estimate of | 223 crore. ICICI Securities Limited maintain their BUY rating and revise our target price higher to | 140 from | 118 earlier as we raise our target multiple to 2.2x FY18E ABV vs. 1.9x earlier.

Background: City Union Bank (CUB) among the smaller-sized banks in the private sector space operates a network of 525 branches. With about 2/3rds of its branches located in Tamil Nadu the bank's business is largely skewed towards the Southern India. Majority of its business comes from branches located in South India. CUB has a significant chunk of its branches in urban and semi-urban areas. With no identifiable promoters CUB is run by a team of...

ICICI Securities Ltd | Retail Equity Research Overall the bank reported decent set of numbers though asset quality witnessed some deterioration but was better relative to peers....