Dolat Capital Market has given Buy recommendation for CSB Bank with a target price of Rs. 330 in its research report issued on Apr 09, 2021
Dolat Capital Market’s research report on CSB Bank
CSB Bank reported a good set of numbers with further improvement in NIM to 5.4%, sharp sequential improvement in pro forma GNPAs (down 70 bps), healthy loan growth (9% QoQ) and good traction in low cost liabilities (34% YoY CASA growth). However, one-time actuarial impact of revision in mortality assumptions (Rs381 mn) resulted in higher opex and weaker PPoP/PAT vs estimates.
We maintain our BUY recommendation on the stock with a TP of Rs330, valuing the bank at 2.2x of FY23E P/ABV against RoA/RoE of 1.4%/15%. The stock currently trades at 1.7x FY23E P/ABV.