Canara Bank 3QFY2016 Results: Angel Broking

Views of Mr. Vaibhav Agrawal (VP Research - Banking, Angel Broking) on Canara Bank 3QFY2016 Results:

"Canara Bank reported 3QFY16 results, with de-growth in PAT by 87.0% YoY at INR 85cr. Advances growth was lower than the system growth at 6.3% YoY and also bank registered NII de-growth of 6.5% YoY. PBT de-grew by 87.1% YoY due to steep rise in provisions by 69.8% YoY. The rise in provisions was partially due to Asset Quality Review (AQR) conducted by RBI wherein the bank has stated that the classification and provision directions given by RBI will be done over the 2 quarters ending March 2016. As expected, asset quality deteriorated largely with an increase of 157bp QoQ and 100bp QoQ respectively in the Gross and Net NPA ratio respectively. The Gross and Net NPA ratios now stand at 5.84% and 3.90% respectively. On an absolute basis, the closing gross and net NPA increased by 41.3% and 37.9% QoQ respectively. At CMP, the stock is trading at 0.3x2017E P/ABV. We maintain our NEUTRAL rating on the stock."

Shares of CANARA BANK was last trading in BSE at Rs.172.95 as compared to the previous close of Rs. 172.7. The total number of shares traded during the day was 1216559 in over 12237 trades.

The stock hit an intraday high of Rs. 180 and intraday low of 161.15. The net turnover during the day was Rs. 203874654.

Source : Equity Bulls

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