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Thursday, March 26, 2015

DCB Bank rises; Motilal Oswal starts coverage with 'buy'

India's DCB Bank shares gain as much as 2.7 per cent.

Motilal Oswal initiate coverage of stock with "buy" rating and price target of Rs. 155.

Loan book realignment from unsecure to secure, cost control and focus on strong granular liability profile, key reason for growth, says DCB Bank.

Oswal expects core revenues to clock healthy CAGR of 26 per cent over FY14-17, driven by strong loan growth and largely stable margins.

While there was a sharp improvement in NIM, helped by "healthy" asset quality management, provisioning coverage ratio remains best in sector.

“Expecting bank's liabilities to re-price faster and benefit margin from declining interest rates,” says Oswal.

Source : Thehindubusinessline


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