| Sanctions and disbursals are expected to show strong traction in 4QFY10. We expect loans to grow ~10% QoQ (~35% YoY). We expect NIM improvement of 10-15bp QoQ to 2.9% in 4QFY10 as repricing of wholesale borrowing will lead to a lower cost of funds.
Strong loan growth and margin improvement will translate into net income growth of 19% QoQ (~24% YoY). Asset quality is expected to improve QoQ. We expect gross NPA ratio of less than 1% in 4QFY10. Provision coverage ratio is expected to improve to 65-70% with net NPA of ~0.3%. The stock trades at P/BV of 2.1x FY11E and 1.7x FY12E. Maintain Buy. Safe Harbor Statement: Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints. Nothing in this article is, or should be construed as, investment advice. |
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http://in.groups.yahoo.com/group/investwise/
INVESTMENTS IN INDIA
We are low-risk, long-term investors.
Stocks, mutual funds and the entire investment gamut. Only financing/investment avenues in India will be discussed.
For any assistance, questions or improvement ideas, contact investwise-owner@yahoogroups.co.in
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NEW! ==== Check our LINKS and FILES sections for a world of information. REGULARLY UPDATED.
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http://in.groups.yahoo.com/group/investwise/
INVESTMENTS IN INDIA
We are low-risk, long-term investors.
Stocks, mutual funds and the entire investment gamut. Only financing/investment avenues in India will be discussed.
For any assistance, questions or improvement ideas, contact investwise-owner@yahoogroups.co.in
****************************************************************
NEW! ==== Check our LINKS and FILES sections for a world of information. REGULARLY UPDATED.
NEW! ==== Check "Tracklist" in Links and Files sections for Investment Ideas.
****************************************************************
.
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