Views on Canara Bank 4QFY2014 results - Angel Broking

Views of Mr. Vaibhav Agrawal (VP Research – Banking, Angel Broking) on Canara Bank 4QFY2014 results:

"Canara Bank reported healthy numbers on the NII as well as asset quality front. On the operating front, NII growth was healthy at 21.3% yoy on back of advance growth of 24.3% yoy, while non-interest income grew 6.3% yoy, ahead of our expectations. Operating expenses grew by 23.1% yoy thus limiting operating profit growth to 10.9% yoy. The bank witnessed asset quality improvement during the quarter, as absolute Gross and Net NPAs for bank decreased by 6.2% and 13.2% sequentially. Thus Gross and Net NPAs improved by 30bp and 41bp to 2.5% and 2.0% respectively qoq. We await further clarity from management regarding asset quality performance during quarter. Provisioning expenses for the bank grew 45.0% yoy to Rs. 1091cr, leading to a earnings de-growth of 15.8% yoy. We maintain our Buy rating on the stock."

Source : Equity Bulls

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