Views on UCO Bank 3QFY2014 result - Angel Broking

Views of Mr. Vaibhav Agrawal (VP- Research – Banking, Angel Broking) on UCO Bank 3QFY2014 result:

"UCO bank reported strong earnings growth of 207% yoy (on strong CA surge due to Indo-Iran trade payments as witnessed during last few quarters). The operating performance was slightly below our estimates with NII growth at 33% yoy (flat sequentially). The operating income for bank increased by 28% yoy while Pre-provisioning profit increased 37% yoy. On the asset quality front the bank witnessed stability, as absolute Gross and Net NPA remained largely flat sequentially. Tax expense came at just Rs. 10cr for 3QFY2014 on back of MAT credit recognition (bank has recognized MAT credit to the tune of Rs. 364cr for 9MFY2014). UCO Bank's valuation at 0.7x FY2015E ABV remains much higher compared to peers. Hence, we maintain our Neutral rating on the stock."

Source : Equity Bulls

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