Buy South India Bank; target of Rs 20: Motilal Oswal
Motilal Oswal is bullish on South India Bank has recommended buy rating on the stock with a target price of Rs 20 in its research report dated December 13, 2018.
December 14, 2018 / 03:30 PM IST
Motilal Oswal's research report on South India Bank
Declining market share in its home state of Kerala has been a wake-up call for SIB. To recoup the recent loss in market share, SIB now aims to leverage its existing customer relationship by cross selling. The bank has constituted a separate ‘business development channel’ in addition to its existing branch network to speed up the sourcing of retail products. Also, the bank has centralized and automated its retail and SME lending operations, account opening operations and IT operations over the last two years.
We thus, arrive at FY20E RoA/RoE of 0.5%/9.1%. Maintain Buy with a TP of INR20 (0.8x FY20E ABV).
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