ING Vysya Bank has target of Rs 450: PN Vijay

ING Vysya Bank has target of Rs 450, says PN Vijay, Portfolio Manager.

Vijay told CNBC-TV18, "ING Vysya Bank is a midsize private bank. It’s sort of in between in the private banking scenario. It’s a Bangalore based bank. It’s not part of the new crowd of Yes Bank, IndusInd Bank and others who came in after the reforms. But it’s slightly different from your Karur Vysya Bank and Federal Bank. It’s a very old bank. It’s almost 70-80 years old. But it got a infusion of foreign capital from ING Group of Netherlands when briefly the government opened up direct foreign investment by foreign banks into Indian private banks with voting rights. So it’s about the only bank which has a large foreign presence."
He further added, "Apart from that ING Vysya has had a very good quarter. The net profits went up by about 39% or so. The CASA was pretty okay at 34%, though the cost of money went up at trifle. The net interest margins remain steady at 3.3%."
"The great thing about ING Vysya is the asset quality. The net non-performing assets are as low as 0.2% and the total restructured assets are just about 1.2% of the total assets, which is one of the lowest in the Indian banking industry right now."
"In terms of valuations, it’s fairly undemanding at about current market price of Rs 360. It’s surely not cheap like some other PSU banks, but it’s trading at about 1.1 adjusted book to 14 values, which is pretty good for a bank of that quality and I am giving a target of about Rs 450 in the next 12 to 15 months on ING Vysya Bank."