Canara Bank - Q4FY13 Result Review - Angel Broking

Canara Bank posted weak set of numbers for the quarter, as their reported earnings decline of 12.5% yoy. While NII grew at muted pace of around 2.5% yoy to Rs. 2,091cr, non-interest income unexpectedly grew by 30.8% yoy, leading to moderate 13.9% yoy growth in the operating profit to Rs. 1,698cr. On the asset quality front, while Gross and Net NPA levels were sequentially higher by only 2.8% each, however provisioning expenses grew by 63% yoy, much higher than our estimates, leading to a higher-than-estimated PAT decline of 12.5% yoy to Rs. 725cr. At the CMP, the stock trades at 0.7x FY2015E ABV.

We maintain our Accumulate recommendation on the stock with a target price of Rs. 461.

Source : Equity Bulls

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