India's City Union Bank gains after Q1 profit rise; Investec raises TP

City Union Bank

01/08/2025 05:05

** Shares of City Union Bank CTBK.NS rise 2% to 219 rupees

** Private lender posts a 15.6% Y/Y rise in June-qtr net profit at 3.06 bln rupees ($34.92 mln), while gross non-performing assets fall to 2.99% Y/Y from 3.88% Y/Y

** Investec raises TP target price to 280 rupees from 260, implying 30.7% upside from last close; maintains "buy" rating

** Raises FY26/27 NIM estimates by 8/4 bps; PAT forecasts up 4/6% (RoA: 1.55/1.57%), partly offset by higher credit costs

** Says CTBK is top pick for its steady RoA, strong micro-market hold, clear growth path, and prudent risk approach

** CTBK rated "strong buy" by 22 analysts on average; median target price is 213.5 rupees – data compiled by LSEG

** Stock up 26% YTD

($1 = 87.6400 Indian rupees)

 (Reporting by Rudra Pratap Singh in Bengaluru)

 ((rudrapratap.singh@thomsonreuters.com))