*On our assumptions of lower loan growth and NIM, we reduce FY12-13 EPS estimates for Corporation Bank by ~4%. *
***Credit growth moderates. *After rising 37.4% yoy (and 20.7% qoq) in 4QFY11, credit growth moderated to ~22%. Deposit growth rose to 29.4% yoy, but was flat qoq. We expect credit and deposits to grow ~21% in FY12. *NIM declined steeply; likely to bounce back. *In 1QFY12, credit-deposits slipped to 67% vs. 74.4% in 4QFY11 due to a qoq drop in advances. Further, lower CASA and high reliance on bulk deposits led to a ~40bps decline in NIM. Hence, net interest income was flat yoy and declined 7.1% qoq. We expect FY12 NIM to settle at 2.2-2.3% (~30bps decline yoy) on better credit-deposits and increase in lending yields. *Asset quality stable. *Gross NPAs rose 7.1% qoq; however, slippage was contained at ~0.75%. Asset quality continues to be healthy, with net NPAs of 0.52% and NPA coverage ratio of 1.07%. Ri*sks. C*ontinuing macro headwinds and thereby slower loan growth, margin contraction and higher NPA costs. *Safe Harbor Statement:* *Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.* ** *Nothing in this article is, or should be construed as, investment advice.** * ** * * ** ** -- For Anything related with Stock market be Online at http://www.niftyviews.com/ Get free updates on your mobile phone. Sms "Join TSR " and send to 09223492234 FOR TRIAL STOCK/NIFTY/OPTION CALLS You received this message because you are subscribed to Google Group "STOCKRESEARCHER" group. To post to this group, send an email to [email protected] To unsubscribe email [email protected] for more info visit http://groups.google.com/group/STOCKRESEARCHER?hl=en-GB . This is Not a Spam Mail. Disclaimer :- "The opinions expressed by the members on this board are based on their individual experience and perceptions and to share information with other members with the best of intentions to help fellow members in investment decisions as equity investment is a risky venture."
