External broker reports(aggregated public sources), Sharekhan

Sharekhan

External broker reports(aggregated public sources)

Sharekhan is India's leading broking house providing services from easy online trading, research to wide array of financial products. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>Earnings grew by a mere 2% y-o-y on the back of higher provisions although operating profits rose ~11% y-o-y.</li><li>The bank reported higher credit cost at 59 bps of average advances (annualised) vs 34 bps q-o-q and 53 bps y-o-y to shore up the PCR levels (55% vs 53% q-o-q).</li><li>Asset quality is comfortable as net slippage remained negative for the fifth consecutive quarter as recoveries continued to outpace fresh slippages (1.7% stable q-o-q).</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Earnings grew by a mere 2% y-o-y on the back of higher provisions although operating profits rose ~11% y-o-y.The bank reported higher credit cost at 59 bps of average advances (annualised) vs 34 bps q-o-q and 53 bps y-o-y to shore up the PCR levels (55% vs 53% q-o-q).Asset quality is comfortable as net slippage remained negative for the fifth consecutive quarter as recoveries continued to outpace fresh slippages (1.7% stable q-o-q).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

City Union Bank - Recovery Under Way but Still Long Path to Cover

External broker reports(aggregated public sources), Axis Direct

Axis Direct

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Growth revival in sight: The management has indicated the growth visibility has improved post the implementation of new initiatives and tech overhaul.</li><li>Currently, the pick-up in growth has been in the traditional segments of MSME and Gold loans, led by strong demand.</li><li>This momentum is likely to continue, as the management expects CUB’s credit growth rate to converge with the systemic growth rate in FY25E and the pace to accelerate from FY26E onwards. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Growth revival in sight: The management has indicated the growth visibility has improved post the implementation of new initiatives and tech overhaul.Currently, the pick-up in growth has been in the traditional segments of MSME and Gold loans, led by strong demand.This momentum is likely to continue, as the management expects CUB’s credit growth rate to converge with the systemic growth rate in FY25E and the pace to accelerate from FY26E onwards. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

City Union Bank Ltd. - Growth Visibility Improves, Upgrade to BUY on Valuation Comfort!

<ul><li>Earnings grew by 16% y-o-y, led by lower provisions, although operating profits fell by ~10% y-o-y.</li><li>Total credit cost stood at 34 bps of average advances (annualized) versus 29 bps q-o-q and 142 bps y-o-y.</li><li>Net slippages remained negative for the fourth consecutive quarter led by higher recoveries and lower fresh slippages that lowered credit costs.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Earnings grew by 16% y-o-y, led by lower provisions, although operating profits fell by ~10% y-o-y.Total credit cost stood at 34 bps of average advances (annualized) versus 29 bps q-o-q and 142 bps y-o-y.Net slippages remained negative for the fourth consecutive quarter led by higher recoveries and lower fresh slippages that lowered credit costs.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

City Union Bank - Stable Performance on Asset Quality Leading to Lower Provisions

<ul><li>CUB’s credit growth improved by 10% YoY (flat QoQ) after multiple quarters of single-digit growth.</li><li>Deposit growth was slower a 6% YoY and de-grew by ~1% QoQ.</li><li>NII grew by 4% YoY and was flat QoQ. NIMs contracted by ~12bps QoQ and stood at 3.54%.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CUB’s credit growth improved by 10% YoY (flat QoQ) after multiple quarters of single-digit growth.Deposit growth was slower a 6% YoY and de-grew by ~1% QoQ.NII grew by 4% YoY and was flat QoQ. NIMs contracted by ~12bps QoQ and stood at 3.54%.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

City Union Bank Ltd. - Slow-Paced Recovery; Downgrade to HOLD!

<ul><li>Growth revival likely from FY25E onwards – While the implementation of digital lending processes has resulted in CUB holding back from growth, the management is confident of commencing its growth journey as the processes are near completion by mid-Jun’24.</li><li>This process revamping is also being extended towards the secured retail businesses such as Housing, LAP, and Micro-LAP and is expected to be completed by the end of Q1FY25 and will give a fillip to the bank’s credit growth.</li><li>Though the management has refrained from giving any growth guidance for FY25, it indicated Q1FY25 to be strong in terms of growth compared to Q1 historically, despite being a seasonally weak quarter. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Growth revival likely from FY25E onwards – While the implementation of digital lending processes has resulted in CUB holding back from growth, the management is confident of commencing its growth journey as the processes are near completion by mid-Jun’24.This process revamping is also being extended towards the secured retail businesses such as Housing, LAP, and Micro-LAP and is expected to be completed by the end of Q1FY25 and will give a fillip to the bank’s credit growth.Though the management has refrained from giving any growth guidance for FY25, it indicated Q1FY25 to be strong in terms of growth compared to Q1 historically, despite being a seasonally weak quarter. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

City Union Bank Ltd. - Muted Quarter; Recovery Expected From FY25E Onwards!

India

City Union Bank Limited is an Indian private sector bank that offers a comprehensive range of banking and financial services, including personal, corporate, and NRI banking, as well as digital services and loans. The bank serves a diverse clientele, focusing on the MSME sector, retail traders, and agriculturalists. Headquartered in Kumbakonam, Tamil Nadu, India, the bank was founded on October 31, 1904.

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City Union Bank (CUBK IN)

City Union Bank - Recovery Under Way but Still Long Path to Cover

Asset quality is comfortable as net slippage remained negative for the fifth consecutive quarter as recoveries continued to outpace fresh slippages...

Sharekhan

City Union Bank Ltd. - Growth Visibility Improves, Upgrade to BUY on Valuation Comfort!

The management has indicated the growth visibility has improved post the implementation of new initiatives and tech overhaul.

Axis Direct

City Union Bank - Stable Performance on Asset Quality Leading to Lower Provisions

Earnings grew by 16% y-o-y, led by lower provisions, although operating profits fell by ~10% y-o-y. Total credit cost stood at 34 bps of average...

Sharekhan

City Union Bank Ltd. - Slow-Paced Recovery; Downgrade to HOLD!

CUB’s credit growth improved by 10% YoY (flat QoQ) after multiple quarters of single-digit growth. Deposit growth was slower a 6% YoY and de-grew...

Axis Direct

City Union Bank Ltd. - Muted Quarter; Recovery Expected From FY25E Onwards!

While the implementation of digital lending processes has resulted in CUB holding back from growth, the management is confident of commencing its...

Axis Direct

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