City Union Bank Q2 Results Review - Strong Quarter; Growth Trends Improve: Dolat Capital

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.City Union Bank reported a good quarter with-better than expected net interest margin at 3.67%,healthy loan growth at 4% QoQ, andcontained slippages at 1.5% along with improved provision coverage ratio at 55%. NIM improvement was led by 20 bps rise in loan yields, mainly driven by tweaked gold portfolio yields. Growth in Q2 is primarily driven by existing business lines, while retail products will contribute to growth from Q4 FY25. Credit growth to gain momentum in H2 FY25 with significant improvement expected from FY26E. Additionally, PCR to improve hereon with net non-performing asset guided to be at 1.2-1.25% by FY25E.We tweak estimates, factoring in slightly improved growth for FY25E, lower net slippage, and higher PCR levels. Given improved visibility on growth, normalizing credit environment (where conservative lenders typically attract a valuation premium), and undemanding valuations (1.1 times Sep-26 adjusted book value), we revise rating from Accumulate to ‘Buy’ with target price of Rs 190 (from Rs 180 earlier), valuing the bank at 1.3 times Sep-26E P/ABV against RoA/RoE of 1.5%/13%..Click on the attachment to read the full report: .Tech Mahindra, Kotak Mahindra Bank, RBL Bank, IndiaMart, Mastek Q2 Results Review: HDFC Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

City Union Bank Q2 Results Review - Strong Quarter; Growth Trends Improve: Dolat Capital

Given bank's improved visibility on growth, normalizing credit environment and undemanding valuations, the brokerage revises rating from Accumulate to ‘Buy'.

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City Union Bank Q2 Results Review - Strong Quarter; Growth Trends Improve: Dolat Capital

Given bank's improved visibility on growth, normalizing credit environment and undemanding valuations, the brokerage revises rating from Accumulate to ‘Buy'.

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