South Indian Bank - Q4 FY2013 Result Preview - Angel Broking

South Indian Bank is scheduled to announce its 4QFY2013 results today. We expect the bank to report a healthy growth of 28.3% yoy in Net Interest Income (NII) to Rs. 365cr, on back of expectation of loan growth of 20.0% yoy. Non-interest income is expected to increase by 10.0% yoy to Rs. 91cr. Operating expenses are expected to grow marginally by 1.5% yoy to Rs. 207cr. While, provisioning and tax expenses are expected to increase to Rs. 47cr and Rs. 65cr, respectively during the quarter, as against Rs. 12cr and Rs. 29cr, respectively in 4QFY2012. Hence, we expect Net profit to grow by 11.5% yoy to Rs. 136cr. At the CMP, the stock is trading at 0.9x FY2015E ABV.

We recommend a Neutral rating on the stock.

Source : Equity Bulls

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