City Union Bank Ltd. share price target

Background: City Union Bank (CUB) among the smaller-sized banks in the private sector space operates a network of 700 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 professionals. A slew of...

City Union Bank Ltd (CUB), the oldest private sector bank in India, is a mid-sized commercial bank headquartered in Tamil Nadu, having a network of 700 branches and 1,780 ATMs spread across the country and a loan book size of Rs.35,437cr Total Business grew by 8% YoY with advances growing at 8% supported by strong growth in ECLGS (Emergency Credit Line Guarantee Scheme) and Gold Loan....

We believe astute management, granular deposit franchise and stable CAR are key positives amidst tough macro conditions. Maintain Buy with revised target price to Rs 216 (2.5x FY23E ABV).

City Union Bank (CUB) is one the fastest growing small-sized bank with a rare status of being one of the most consistent bank in terms of growth and operating metrics

NII growth was healthy at 15.5% YoY, 8.7% QoQ to | 475 crore, mainly driven by margin expansion. NIMs jumped 21 bps YoY, 14 bps QoQ to 4.12%, led by a reduction in cost of funds and optimisation of credit deposit ratio. As a prudent measure, the bank had reversed interest on exposure of | 25 crore classified as SMA. Other income fell 13.2% YoY to | 169 crore, on account of YoY decline in treasury and fee income. Opex was flattish on a yearly basis while there was 7.6% rise QoQ and provisions remained elevated, up 12.7% QoQ, 64% YoY to | 177 crore. As a result, PAT showed...

Background: City Union Bank (CUB) among the smaller-sized banks in the private sector space operates a network of 700 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 professionals. A slew of...

City Union Bank Ltd (CUB), the oldest private sector bank in India, is a mid-sized commercial bank headquartered in Tamil Nadu, having a network of 700 branches and 1,780 ATMs spread across the country and a loan book size of Rs.35,437cr Total Business grew by 4% YoY with advances growing at 6% supported by strong growth in ECLGS (Emergency Credit Line Guarantee Scheme) and Gold Loan....

We upgrade our multiple from 1.8x to 2x on improved core performance and better visibility. Maintain a Buy with revised target price to Rs 180 (2x FY23E ABV)

City Union Bank (CUBK) posted in-line with expectations results; asset quality was largely stable with improving PCR. Margin also improved on a sequential basis. Asset quality improved on a sequential basis, with GNPA at 3.44% and NNPA at 1.81%...

City Union Bank (CUB) reported stable operating performance during Q1FY21. NII for the quarter grew by 5% YoY to Rs 437 cr. Operating profit of the bank grew merely by 1% YoY to Rs 356 cr. Provision remained higher due to Covid related contingent provision. CUB has made Covid provision of Rs 100 cr during the quarter, taking the total at Rs 225 cr (Rs 125 cr in Q4FY20). The bank has reported 17% decline in net profit at Rs 154 cr. On a sequential basis, bank has returned back to profitability as it had reported Rs 95 cr loss in Q4FY20, was supported by better margins, strong treasury gain and cost control. Asset quality of the bank...