Buy Karur Vysya Bank Ltd. target Rs 160: Angel Broking
Buy Karur Vysya Bank Ltd. at a price target of Rs 160 and a month to reach the target.
By ETMarkets.com |
Angel Broking has a buy call on Karur Vysya Bank Ltd. with a target price of Rs 160 .The current market price of Karur Vysya Bank Ltd. is 132.05 Time period given by analyst is month when Karur Vysya Bank Ltd. price can reach defined target.
Loan growth to pick up from FY18 onwards:
KVB had a fairly strong loan CAGR of 14.9% over FY11-17.However, FY17 was year of consolidation and loan book grew by only 4.7%. We expect loan growth to pick up to 11% over FY17-19. Deposit growth is expected at 9% during the period.
Asset quality likely to stabilize going ahead:
KVB’s slippages remained high during FY17 and hence GNPAs % went up to 3.58% vs 1.3%. However, large part of the troubled accounts has been classified as NPAs and hence gradually we expect the asset quality to improve.
NIM likely to see further improvement:
There were 25 bps improvements in NIM during FY17, with share of CASA growing and cost of fund coming down NIM is expected to improve further going ahead.
Loan growth to pick up from FY18 onwards:
KVB had a fairly strong loan CAGR of 14.9% over FY11-17.However, FY17 was year of consolidation and loan book grew by only 4.7%. We expect loan growth to pick up to 11% over FY17-19. Deposit growth is expected at 9% during the period.
Asset quality likely to stabilize going ahead:
KVB’s slippages remained high during FY17 and hence GNPAs % went up to 3.58% vs 1.3%. However, large part of the troubled accounts has been classified as NPAs and hence gradually we expect the asset quality to improve.
NIM likely to see further improvement:
There were 25 bps improvements in NIM during FY17, with share of CASA growing and cost of fund coming down NIM is expected to improve further going ahead.
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