ICICI Direct is bullish on DCB Bank has recommended buy rating on the stock with a target price of Rs 220 in its research report dated October 22, 2019.
ICICI Direct's research report on DCB Bank
Credit growth continued to decelerate by 12.4% YoY to Rs 24798 crore led by de-risking in corporate book & moderation within SME, retail & mortgage book. However, ex corporate loan, growth marginally moderated to 16% YoY. Deposit accretion lagged erstwhile growth with CASA growth at 22 quarter low of 7% YoY. However, term deposit growth stayed healthy at 14% YoY. CASA ratio for Q2FY2 stood at 23.2%, down 129 bps QoQ.
Therefore, we maintain our BUY recommendation and revise our target price downward to Rs 220 (earlier Rs 260), valuing it at ~2.0x FY21E ABV.
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