South Indian Bank Review - Steady Q4 With ~1.0% RoA Aided By Better NIM, Contained Opex: ICICI Securities

"NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.South Indian Bank Ltd. has reported Q4 FY24 profit after tax of Rs 2.9 billion (return on asset of 0.98%), aided by higher net interest margin and contained opex, while asset quality sustained improvement. Despite rise in cost of deposits, NIM jumped ~19 bps QoQ to 3.38%, driven by rise in yields. Post the recent rights issue, CET 1 stands strong at 16.66% with tier 1 at 17.65%. South Indian Bank aims for significant loan mix change in favour of granular retail and SME loans over the next 18-24 months. It has introduced affordable housing, commercial vehicle/construction equipment and loan against property in Q4, though current loan growth still remains driven by short-term, high-quality corporate segment. Our estimates are broadly unchanged and we see the bank delivering 85/95 bps RoA in FY25/26E, respectively. Valuations at 0.9/0.8 times FY25/26E adjusted book value are in-expensive. Maintain Buy with a revised target price of Rs 34..Click on the attachment to read the full report:.Kotak Mahindra Bank Pulls A 'Houdini' On The Charts, Says Analyst.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

South Indian Bank Review - Steady Q4 With ~1.0% RoA Aided By Better NIM, Contained Opex: ICICI Securities

Valuations inexpensive; maintain Buy with revised target price of Rs 34

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South Indian Bank Review - Steady Q4 With ~1.0% RoA Aided By Better NIM, Contained Opex: ICICI Securities

Valuations inexpensive; maintain Buy with revised target price of Rs 34

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