Allahabad Bank Q2FY11 Result Update
Ø Allahabad Bank (ALBK) delivered another strong quarter, with net profits increasing by 20% to INR 4025 Mn YoY.
Ø The net interest income increased by 60% to INR 9690 Mn YoY. NIMs improved to 3.34% from 3.10% sequentially and 2.84% YoY..
Ø ALBK’s Gross NPA declined to 1.77% in Q2FY11 from 1.78% YoY and Net NPAs increased to 0.56% from 0.35% YoY. ALBK is will capitalised with CAR at 13.49% wth Tier I Capital at 8.41%.
Outlook & Valuation
At the CMP INR 240 stock trades at 1.3x of its FY12E book value, we have BUY rating on the stock for 12-18 months target of INR 305.
Thanks & Regards,
Unicon Wealth Research