CMP Rs1,084, Target price Rs1,148, Upside 5.9%
± Successive fourth quarter of sequential balance sheet growth; loan assets were up 6.4% qoq. Deposits however declined sequentially.
± Net profit grew 31% yoy aided by healthy NII growth and lower provision charges
± Significant traction in corporate segment; Operating expenses were up 26% yoy owing to one-off items
± The 5C’s strategy - CASA, C/Income, Credit quality, Capital and Customer service remain on track
± Asset quality improves sequentially, PCR remained >70% level
± Adequately capitalized; focus on improving profitability and return ratios over FY10-13E. MP
