South Indian Bank – For Investment
CMP:Rs 30.5 to 31.5

Stress free pvt bank at PSU price!!

Retail business back in reckoning
6 business lines- corporate loans (small ticket lending), MSME, mortgage, auto, agri & gold loan to propel overall loans. We expect 18% loan CAGR (FY17-19E) v/s 9% (FY14-17). 

Worst is over; watch-list ZERO
Asset quality improvement is incredible with 0 watch-list accounts by Q1FY18. We expect sharp GNPAs decline to 3.0% in FY19E from 3.6% (Jun’17) followed by credit costs decline to 0.7% by FY19E (current 1.4%) which forms key RoA expansion trigger ahead.

Accumulate for Investment