Promoters held 0 per cent stake in the company as of Sept 30, 2020, while FIIs held 18.7 per cent, DIIs 27.5 per cent and public and others 53.8 per cent.
Promoters held 0 per cent stake in the company as of Sept 30, 2020, while FIIs held 18.7 per cent, DIIs 27.5 per cent and public and others 53.8 per cent.
Emkay Global has given a hold rating to City Union Bank with a target price of Rs 160. The share price moved up by 1.41 per cent from its previous close of Rs 152.45. The stock’s last traded price is Rs 154.55.
Financials The Bank reported a Gross Non Performing Assets (Gross NPAs) of Rs 1220.58 Crore (.00 % of total assets) and Net Non Performing Assets (Net NPAs) of Rs 631.44 Crore (.00% of total assets). For the quarter ended 30-09-2020, the company reported a Standalone Interest Income of Rs 898.82 Crore, up .74 % from last quarter Interest Income of Rs 892.18 Crore and up 4.30 % from last year same quarter Interest Income of Rs 861.76 Crore. The bank reported net profit after tax of Rs 157.67 Crore in latest quarter.
Investment Rationale The brokerage raises FY21 estimates by 3%, factoring in the Q1 beat, but still expect overall RoA to remain at the historic low of 1.1%. However, it expects the bank’s RoA to claw back to its traditional high level of 1.5% by FY23E, led by better growth and moderation in credit cost. It retains Hold with a revised TP of Rs160 (1.8x Dec’22E ABV). Key risks to the call include slower business resumption and higher-than-expected NPAs from the SME/corporate pool.
Promoter/FII Holdings Promoters held 0 per cent stake in the company as of Sept 30, 2020, while FIIs held 18.7 per cent, DIIs 27.5 per cent and public and others 53.8 per cent.
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