To buy Customized Research reports, please email: suhani.adilabadkar@gmail.com or call: 9701063320

Monday, 24 October 2016



SOUTH INDIAN BANK -SEPTEMBER QUARTER RESULT FY17

South Indian Bank reported strong second quarter numbers with PAT & Net Interest Income rising 18% & 15% respectively. Profit After Tax stood at Rs. 1105 mn for the quarter against Rs. 934 mn in the same period previous year and also rose 16% sequentially. Net Interest Income stood at Rs. 4450 mn compared to Rs. 3880 mn in the corresponding quarter previous year, rising 15% YOY and 19% QOQ. Net Interest Margin (NIM) is reported at 2.75% rising by one basis point over the previous June quarter, but on yearly basis decline has been around 6 basis points. Other income also jumped 20% YOY from Rs. 1212 mn to Rs. 1459 mn in the current September quarter. Compared to the previous June quarter, other income declined by 16% in Q2 FY17. Asset Quality seems to be stable as Net NPAs have declined QOQ by 12 basis points whereas Gross NPAs were constant at 3.96%. Gross NPAs & Net NPAs stood at 3.96% & 2.77% respectively in the current September quarter FY17. Provisions for the current quarter were at Rs. 1283 mn compared to Rs. 675 in Q2 FY16, almost doubling YOY. All segments except corporate performed well in the current quarter. CASA ratio is stagnant at 22.80% YOY, though on quarterly basis it has dipped by 40 basis points. Advances witnessed QOQ growth of 5.60% whereas Deposits were constant at 4% over the previous two quarters. Advances & Deposits stood at Rs. 435480 mn & Rs. 601920 mn with yearly rise of 10% & 13% respectively in the current September quarter. South Indian Bank has around 454 branches in Kerala with a total of 854 branches & 1306 ATMs as on 30th September 2016. The bank has Capital Adequacy Ratio of 11.13%. The bank seems to be strong on profitability in the current September quarter but weak when it comes to asset quality & CASA ratio compared to other private sector competitors. The bank needs to expand to strengthen its CASA & credit growth in the long run. With new banks already in the fray along with small & payments bank, Indian banking sector is becoming more & more competitive.


Net Profit Margin for the Bank is seen at 5.33% X FY 17E and 5.19% x FY18E respectively. At CMP of Rs. 24.40, EPS is seen at 2.56 x FY17E and 2.62 x FY18E respectively. The PE ratio for the bank is seen at 9.53 x FY17E and 9.30 x FY18E respectively. P/B for the Bank is seen at 0.81 x FY17E and 0.75 x FY18E respectively. We recommend HOLD for medium and long term investment with the target price of Rs 40.



Disclaimer                                                   
                                                
The information and opinions contained in the research reports have been compiled or arrived at from sources believed reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness. The research report does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Clients should consider whether any advice or recommendation in this research is suitable for their particular circumstances and, if appropriate, seek professional advice, including but not limited to tax advice. The reports do not take into account the particular investment objectives, financial situations, risk profile or needs of individual clients. The user assumes the entire risk of any use made of this information. This report is not to be relied upon in substitution for the exercise of independent judgment.

The price and value of investments referred to in this research and the income from them may fluctuate. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur.

Research data and reports published/ emailed/ text messaged via Short Messaging Services, Online Messengers, WhatsApp etc/transmitted through mobile application/s, including but not limited to FLIP™, Video Widget, telephony networks, print or electronic media and or those made available/uploaded on social networking sites (e.g. Facebook, Twitter, LinkedIn etc) is for informational purposes only. The reports are provided for assistance and are not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Though disseminated to clients simultaneously, not all clients may receive the reports at the same time. We will not treat recipients as clients by virtue of their receiving this report.

The reports include projections, forecasts and other predictive statements which represent our assumptions and expectations in the light of currently available information. These projections and forecasts are based on industry trends, circumstances and factors which involve risks, variables and uncertainties. The actual performance of the companies represented in the report may vary from those projected.

The opinions expressed in the reports are subject to change but we have no obligation to tell our clients when our opinions or recommendations change. The reports are non-inclusive and do not consider all the information that the recipients may consider material to investments.

We shall not be in any way responsible for any indirect, special or consequential damages that may arise to any person from any inadvertent error in the information contained in the reports nor do they take guarantee or assume liability for any omissions of the information contained therein. Information contained therein cannot be the basis for any claim, demand or cause of action. These data, reports and information do not constitute scientific publication and do not carry any evidentiary value whatsoever.

The user should consult their own advisors to determine the merits and risks of investment and also read the Risk Disclosure Documents for Capital Markets and Derivative Segments as prescribed by Securities and Exchange Board of India before investing in the Indian Markets. The securities discussed in this report may not be suitable for all investors. Investors must make their own investment decision based on their own investment objectives, goals and financial position and based on their own analysis. Prospective investors and others are cautioned that any forward-looking statements, if any, are not predictions and may be subject to change without notice.

This report may provide the addresses of, or contain hyperlinks to websites. Except to the extent to which the report refers to material we take no responsibility whatsoever for the contents therein. Such addresses or hyperlinks are provided solely for your convenience and information and the content of the linked site does not in any way form part of this report. Accessing such website or following such link through this report shall be at your own risk.


The author of this Research Report accepts no liability and will not in any way be responsible for the contents of this report or for any losses, costs, expenses, charges, including notional losses/lost opportunities incurred by a recipient as a result of acting or non-acting on any information/material contained in the report. This is not an offer to sell or a solicitation to buy any securities or an attempt to influence the opinion or behavior of investors or recipients or provide any investment/tax advice. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.

4 comments:

  1. Good information. Thanks for sharing. If you want to know more about stock market related topics then visit Bank Nifty
    Bank Nifty
    HFFC IPO
    Stock Market

    ReplyDelete
  2. Thanks for your valuable information. stock investor is a stock related website which provides day to day information of the stock market.
    Marico Ltd
    Hindustan Petroleum Ltd

    ReplyDelete
  3. Thanks for sharing. Really useful information and it’s a great article with good resources. Checkout our Stock Investor website for more latest stock market update.
    Bharat Agri Fert & Realty Stock Price
    Bhansali Engg live share price
    Bhandari Hosiery Exports Ltd Share Price
    Bhakti Gems and Jewellery Share Price

    ReplyDelete