ING Vysya Bank (NOT RATED): Strong operating performance to the rescue - Ambit

ING Vysya Bank (IVB) reported 1QFY14 PAT of Rs1.70bn (up 35% YoY), largely in line with consensus estimates, owing to a strong operating performance. Steady NII and core non-interest income growth, along with contained operating costs led to operating profit growth of 50% YoY. However, net delinquencies increased during the quarter to 176bps, breaking away from the last three years' trend of very low net delinquencies. Two mid-corporate NPLs (Rs1.2bn) contributed to ~82% of total fresh delinquencies during 1QFY14. The management's outlook on future delinquencies from the mid-corporate and SME segments will be the key focus from the post-results conference call today. The stock is trading at 1.7x FY14 BV.

Source : Equity Bulls

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