Views on UCO Bank 4QFY2014 results - Angel Broking

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

"UCO bank reported improvement in asset quality while the operating performance was largely in-line with our estimates. NII for bank grew by 15.7% yoy (flat sequentially). The operating income for bank increased by 21.3% yoy while Pre-provisioning profit increased 33.0% yoy. On the asset quality front the bank witnessed improvement, as absolute Gross and Net NPA decreased sequentially by 10.0% and 15.7% yoy respectively. As a result the gross NPA and net NPA ratios decreased by 88bp and 68bp sequentially to 4.3% and 2.4% respectively. Tax expense came at Rs. 184cr for 4QFY2014 as against Rs. 6cr in 4QFY2013. Overall earnings came at Rs. 285cr in 4QFY2014 against Rs. 50cr in 4QFY2013. UCO Bank's valuation at 0.8x FY2016E ABV remains at a higher end compared to peers. Hence, we maintain our Neutral rating on the stock."

Source : Equity Bulls

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