Syndicate Bank - Q4FY13 Result Review - Angel Broking

During 4QFY2013, Syndicate Bank announced moderate set of numbers on operating front, however reported improvement on the asset quality front. On the operating front, while NII came in flat yoy at 1,344cr (despite robust advance growth at 19.4% yoy), Non-Interest income grew strong at 33.3% yoy, leading to a moderate growth of 6.6% and 14.0% yoy, respectively in operating income and operating profit. On the asset quality front, the bank reported improvement, as its Gross and Net NPA ratios, came down sequentially by 31bp and 9bp, respectively to 1.99% and 0.76%, which aided it to report 32.9% yoy lower provisioning expenses and clock earnings growth of 91.4% yoy.

At the CMP, the stock is trading at 0.6x FY2015E ABV. We recommend Neutral on the stock.

Source : Equity Bulls

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