Fwd: South Indian Bank Q2FY12 Result Update; Gold loan drives performance; Accumulate; Target: Rs27

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Deepak Vaishnav

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Oct 22, 2011, 4:05:50 AM10/22/11
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South Indian Bank

Gold loan drives performance

 

ACCUMULATE

 

CMP: Rs23                                        Target Price: Rs27

n     SIB’s Q2FY12 earnings at Rs950mn ahead of expectation led by higher than expected NII growth

n     The NII grew by 31.1% to Rs2.6bn led by strong ~19%qoq growth in gold loan portfolio, and 20bps qoq expansion in NIM’s to 3%

n     High concentration of gold loan at 26% of the book, a concern. In case of any slowdown in gold loan book growth, rest of the book need to grow at more than 25%

n     Lowering earnings by 7.1/8.1% each for FY12/13 for higher opex and prov cost. Maintain ACCUMULATE with revised TP of Rs27

 

Regards,

Kashyap Jhaveri

Research Analyst | Emkay Global Financial Services Ltd. | www.emkayglobal.com | Email : kashyap...@emkayglobal.com 

Board No. : +91-22-6612 1212 | Extn. : 249 | DID : +91-22-6612 1249 | Mob : +91-98202 41712 | Fax : +91-22-6624 2410 |

 

 


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South Indian Bank Q2FY12 Result Update.pdf
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