Views on Canara Bank 2QFY2016 Result: Angel Broking

Views of Mr. Vaibhav Agrawal (VP Research- Banking, Angel Broking) on Canara Bank 2QFY2016 Results:

"Canara Bank reported 2QFY16 results, with de-growth in PAT by 15.6% YoY. Advances growth was lower than the system growth at 3.9% YoY, however bank registered NII growth of 11.8% YoY. Other income growth of 18.5% YoY led to 13.8% growth in operating income. PBT de-grew by 9.9% YoY due to steep rise in provisions by 49% YoY. On the asset quality front, the asset quality deteriorated with an increase of 29bp and 16bp respectively in the Gross and Net NPA ratio respectively. On an absolute basis, the closing gross and net NPA increased by 7.2% and 5.6% QoQ respectively. At CMP, the stock is trading at 0.5x2017E P/ABV. We maintain our NEUTRAL rating on the stock."

Shares of CANARA BANK was last trading in BSE at Rs.274.3 as compared to the previous close of Rs. 279.45. The total number of shares traded during the day was 488125 in over 7445 trades.

The stock hit an intraday high of Rs. 284 and intraday low of 272.45. The net turnover during the day was Rs. 135277783.

Source : Equity Bulls

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