Views on Canara Bank 1QFY2016 Results: Angel Broking

Views of Mr. Vaibhav Agrawal (VP Research - Banking, Angel Broking) on Canara Bank 1QFY2016 Results:

"Canara Bank reported 1QFY16 results, with de-growth in PAT by 40.7% yoy, which were below our estimates. Advances growth was lower than the system growth at 7% yoy, which led to NII growth of 3.6% yoy. Other income growth of 8.4% yoy led to 5% growth in operating income. Bank has made required provision for certain NPA in the current quarter itself, which it could have amortised over three quarters commencing from 1QFY16. Higher provisions led to 36.1% de-growth in PBT on yoy basis. On asset quality front, Gross NPA on absolute basis increased by 0.3% qoq, Net NPA increased by 1.7% qoq, whereas Gross NPA ratio and Net NPA ratio increased by 9bps qoq to 3.98% and 2.74% respectively. At CMP, stock is trading at 0.5x2017E P/ABV. We have NEUTRAL rating on the stock."

Shares of CANARA BANK was last trading in BSE at Rs.311.65 as compared to the previous close of Rs. 303.55. The total number of shares traded during the day was 741999 in over 8259 trades.

The stock hit an intraday high of Rs. 313.4 and intraday low of 295.3. The net turnover during the day was Rs. 226629140.

Source : Equity Bulls

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