India's City Union Bank tumbles as analysts flag weak Q4 report

City Union Bank

29/05/2023 08:19

** City Union Bank  CTBK.NS  fall ~9% to 127 rupees in heavy
volume, set for worst day in 3 months, as Q4 results disappoint
    ** At least four brokerages cut their rating on the stock
and 10 cut their price target, per Refinitiv data
    ** Lender reports 4% rise in Q4 net profit, but brokers note
"weak" fundamentals, incl net interest margin (NIM) pressure
    ** ICICI notes soft growth outlook, elevated gross slippages
(a loan becoming an NPA) and credit costs and expects continued
pressure on NIM
    ** Kotak says CTBK is "one of the slowest banks" to recover
from COVID and expects weak rev growth on high slippages, weak
loan and deposit growth
    ** Despite the downgrades, analysts avg rating on CTBK stays
at the equivalent of 'buy', while median PT drops by 1 rupee to
179 rupees - Refinitiv data
    ** About 14 mln shares traded, stock's busiest day since Apr
27 when RBI approval for re-appointment of City Union's MD, CEO

 (Reporting by Ashna Teresa Britto in Bengaluru)
 ((AshnaTeresa.Britto@thomsonreuters.com ; ( +91 8078332441))