South Indian Bank - Q1FY2013-14 Result Review - Angel Broking

SIB reported weak set of numbers during the quarter, as it reported a bottom line de-growth of 6.7% yoy, which was lower than ours' as well as streets' estimates. On the operating front, while NII grew at moderate pace of 10%, however, boosted by treasury gains non-interest income grew strongly by 57%, leading to healthy 21% yoy growth in operating profits. On the asset quality front, the bank witnessed pressures, as its Gross NPA levels increased sequentially by 14%, while net NPA levels increased by 40% qoq, in spite of higher provisioning during the quarter (at Rs. 105cr compared to Rs. 66cr in 4QFY2013 and Rs. 25cr in 1QFY2013).

At the CMP, the stock is trading at 0.9x FY2015E ABV. We recommend a Neutral rating on the stock.

Source : Equity Bulls

Keywords