Views on Vijaya Bank 3QFY2014 results - Angel Broking

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

"Vijaya Bank delivered weak operating performance, while reported stable asset quality numbers. NII for the bank grew at moderate pace of 8% yoy, while non-interest income performance came in subdued, with a growth of 4% yoy. Opex growth at 43% yoy, was much higher than expected, resulted in sharp operating profit decline of 36% yoy. On the asset quality front, the bank reported stability, as the absolute Gross NPAs remained largely flat. Provisioning expenses for the bank grew by 55% yoy, thereby leading to a 8% qoq decline in Net NPAs. Overall, the bank reported steep earnings de-growth of 91% yoy to Rs. 11cr. We await management comments on the asset quality performance and sharp opex growth during the quarter and asset quality outlook going ahead. We maintain our Neutral rating on the stock."

Vijaya Bank 3QFY2014 Result Update (CMP: Rs. 37, Target Price: NA, Recommendation: Neutral)

Source : Equity Bulls

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