Allahabad Bank

Emkay Global Financial Services has recommended accumulate rating on Allahabad Bank with a target of Rs 220 in its July 23, 2010 research report.

“Allahabad Bank reported spectacular numbers for Q1FY11 with NII up 14.5% qoq and net profit up 54% qoq. Highlights were 29bps improvement in NIMs and lower NPAs sequentially. The slippages surprised positively as they stood at Rs 1.2 billion, 0.8% annualised vis-à-vis 1.4% for Q1FY10 and 1.7% for FY10. The gross NPAs were down by 7% qoq and net NPAs by 34% qoq. The provision cover stood at 73%. Valuations attractive at 1.2x FY11E/0.9x FY12E ABV. Upgrade to accumulate with price target of Rs 220 at 1.1x FY12E ABV,” says Emkay Global Financial Services research report.