South Indian Bank - 3QFY2013 Result Preview - Angel Broking

South Indian Bank (CMP: Rs.28 / TP: Rs.33 / Upside: 17.1%)

South Indian Bank is scheduled to announce its 3QFY2013 results today. We expect the bank to report a healthy growth of 17.8% yoy in net interest income (NII) to Rs.322cr. Non-interest income is expected to increase by 24.0% yoy to Rs.74cr. Operating expenses are expected to grow at 16.8% yoy to Rs.180cr.

Provisioning expenses are expected to increase by 71.4% yoy to Rs.38cr. Net profit is expected to grow at 17.7% yoy to Rs.120cr. At the CMP, the stock is trading at 1.2x FY2014E ABV.

We maintain our Buy recommendation on the stock with a target price of Rs.33.

Source : Equity Bulls

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