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Jun 09, 2017 07:58 AM IST | Source:

Buy South Indian Bank; target of Rs 35: Edelweiss

Edelweiss is bullish on South Indian Bank has recommended buy rating on the stock with a target price of Rs 35 in its research report dated May 16, 2017.

  • bselive
  • nselive
Todays L/H

Edelweiss' research report on South Indian Bank

Slippages shot up to INR 11.5bn (10.2% versus run-rate of 1.7% during past 3 quarters), with major part (>INR6bn slippages) flowing from watch-list and restructured standard advances (>INR 3bn slippages). Meanwhile, strong recovery (driven by sale to ARCs of INR 12bn) pull down GNPLs to INR 11.5bn (down >35% QoQ).


SIB’s performance was marred by volatile asset quality, largely on corporate side. But, the bank’s endeavour to de-risk its balance sheet by shifting to retail segment, an improving retail franchise and valuations at 0.9x FY19E P/ABV lend comfort. We roll over to FY19E earnings and peg our target price at INR 35 (INR 29 earlier). We maintain ‘BUY/SP’.

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Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

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