Sell Allahabad Bank; target of Rs 58: SPA Research

ALB reported disappointing set of numbers with 25% QoQ increase in GNPA led by 13% annualized slippages of INR 50.87bn. NII declined by 12.22% YoY to INR 13.93bn on back of 3.15% growth in advances and 50bps decline in NIM. Decline in NIM was due to interest reversal on back of higher slippages. PPOP declined by 22% YoY as there was write back of excess wage provisioning last year. CI ratio improved 196bps QoQ to 50.28%. PCR declined by 219bps to 46%. After recent run up in the stock, we change our recommendation to SELL with TP of INR 58 (0.8x FY18E ABVPS).For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.