CANARA BANK: Operating performance healthy; loan growth gaining traction (CBK IN, Mkt Cap USD5.7b, CMP INR259, TP INR340, 31% Upside, Buy) Asset quality continues to improve Canara Bank (CBK) reported a healthy performance with 19% YoY NII growth (3% beat) driven by 8bp margin expansion in 2QFY23. This coupled with healthy treasury gains and traction in fee income drove overall earnings. The bank has further adopted the new tax regime and provided deferred tax worth INR24.5b. Tax rate for 2...
BOB reported a healthy 1QFY23 as core PPOP grew 11% YoY, while lower provisions drove net earnings (a significant beat). Business growth was healthy, with loans growing 3% QoQ. However, margin moderated by 6bp QoQ. Asset quality improved as fresh slippages moderated to INR32.7b, resulting in a significant decline in credit cost, with PCR increasing further to ~76%. Total SMA 1/2 (over INR50m) stands controlled at 48bp of loans. Collection efficiency (excluding Agri) improved to 98% in Jun’22....
CANARA BANK (IN), a company active in the Money Center Banks industry, reduced its market risk and raised its general evaluation. The independent financial analyst theScreener awarded an improved star rating to the company, which now shows 4 out of 4 possible stars; its market behaviour has improved and can be considered as defensive. theScreener believes that this new assessment merits an overall rating upgrade to Positive. As of the analysis date February 4, 2022, the closing price was INR 261...
The general evaluation of BANK OF INDIA (IN), a company active in the Money Center Banks industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 3 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date January 28, 2022, the closing price w...
The general evaluation of PUNJAB NATIONAL BANK (IN), a company active in the Money Center Banks industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 3 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date January 14, 2022, the closing ...
The general evaluation of BANK OF BARODA (IN), a company active in the Money Center Banks industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 3 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date January 11, 2022, the closing price ...
BANK OF BARODA: NII growth recovers sharply; collection efficiency stable QoQ (BOB IN, Mkt Cap USD5.7b, CMP INR81, TP INR100, 23% Upside, Upgrade to Buy) Bank of Baroda (BOB) reported a strong earnings performance, supported by a healthy core operating performance, despite sluggish business trends. Domestic NIM improved sharply by 39bp QoQ to 3.12%. Asset quality trends were stable sequentially in a challenging environment, with fresh slippage at INR51.3b (annualized slippage rate of 3.1...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
PUNJAB NATIONAL BANK: Sees a recovery in operating performance; remains watchful of asset quality (PNB IN, Mkt Cap USD6b, CMP INR40, TP INR45, 12% Upside, Neutral) Slippages remain elevated PNB reported a healthy performance, supported by a pick-up in NII and lower opex, even as provisions stood stable sequentially. Business growth remains under pressure, with a sequential decline in loans/deposits. However, margin witnessed ~5bp QoQ improvement to 2.73%. Slippages stood elevated (~6.2%...
Summary United Bank of India - Strategy, SWOT and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360˚ view of the company. Key Highlights United Bank of India (UBI) is a provider of a range of retail, commercial, and international banking solutions to individuals, SMEs, non-resident Indians (NRIs), and corporates. Its offer...
Summary Marketline's Corporation Bank Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments report includes business description, detailed reports on mergers and acquisitions (M&A), divestments, capital raisings, venture capital investments, ownership and partnership transactions undertaken by Corporation Bank since January2007. Marketline's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and...
Summary Marketline's Oriental Bank of Commerce Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments report includes business description, detailed reports on mergers and acquisitions (M&A), divestments, capital raisings, venture capital investments, ownership and partnership transactions undertaken by Oriental Bank of Commerce since January2007. Marketline's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown ...
Summary Marketline's United Bank of India Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments report includes business description, detailed reports on mergers and acquisitions (M&A), divestments, capital raisings, venture capital investments, ownership and partnership transactions undertaken by United Bank of India since January2007. Marketline's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the org...
Q3FY20 result highlights PNB’s performance remains weak with the bank reporting a loss of Rs4.9bn in 3Q20 versus profit of Rs5bn in 2Q20 and Rs2.5bn in 3Q19. Despite recovery of Rs26bn from Essar Steel, weak core performance coupled with higher divergence related provisioning drove the loss. The bank has deferred provisions (mainly fraud related) of Rs16bn. If these were upfronted the loss would be higher. Slippages remain high at Rs74bn though lower than Rs81bn qoq. Net loans declined 2% yo...
Q3FY20 result highlights BoB reported a PBT loss of Rs22bn and net loss of Rs14.1bn versus PAT of Rs4.4bn yoy and Rs7.4bn qoq. The consensus estimate for PAT was Rs6.8bn for 3Q. The loss was mainly on account of a sharp increase in credit cost and partly on account of weak loan growth. Slippage of Rs118bn is uncomfortably high compared to Rs72.6bn qoq and expectation of 68bn. Breakdown of slippage in exhibit 2. Slippage ratio rose from an already high 4.7% to 7.4% qoq. Total corporate slippa...
Bank of Baroda: PPoP in line adjusted for one-offs; Slippages remain elevated (BOB IN, Mkt Cap USD6.2b, CMP INR96, TP INR115, 20% Upside, Buy) Business growth remains muted; Asset quality deteriorates further BOB reported a weak 3QFY20, led by higher provisions and elevated slippages as it addressed the RBI divergence and recognized select large corporate accounts as NPLs (including DHFL). Muted business growth and one-offs in opex further drove 3QFY20 loss to INR14.1b. We have cut FY...
Summary Oriental Bank of Commerce - Strategy, SWOT and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360Ëš view of the company. Key Highlights Oriental Bank of Commerce (OBC) provides banking and treasury services to individual customers, agricultural sector, and SMEs, and MSMEs, government sector, small-scale industries i...
Q2FY20 result highlights BoB reported PAT of Rs7.3bn in 1Q20 growing 396% yoy and 4% qoq. PAT was better than our estimate of Rs5bn led by higher treasury gains. We view this as a soft result with slippage and watch list remaining elevated, a sequential increase in SMA2 loans, a very high share of treasury gains and weak loan growth. NIM improvement was the key positive highlight. Total slippage of Rs72bn was higher than Rs65bn qoq. Fresh slippage was Rs60bn (56bn qoq) while addition to exis...
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