Geojit recommended is bullish on City Union Bank has recommended buy rating on the stock with a target price of Rs 148 in its research report dated August 14, 2020.
Geojit's research report on City Union Bank
Total Business grew 6% YoY with deposits growing at 5% and advances at 7%. Net Interest Margin (NIM) improved 7bps sequentially to 3.98% during the quarter. Lower recognition of slippages led to reduction in GNPA/NNPA to 3.90/2.11% from 4.09/2.29% during Q4FY20. Despite moratorium provided, 70% of borrowers paid full instalments till July 2020 and ~88% paid at least one instalment.
Outlook
We expect that current uncertainties for FY21 are already factored and with improvement seen in this quarter, we maintain our valuation at 2.0x on FY22E Adj BVPS of Rs.74 with a target price of Rs.148 and recommend Buy rating.
For all recommendations report, click here
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