City Union Bank ki Update: Nirmal Bang ki Report
City Union Bank (CUB) ke liye ek naya report aaya hai. Nirmal Bang ne CUB ke management se baat ki aur unke business model aur growth ko lekar kuch important points nikale. Chaliye dekhte hain kya hai is report mein.
Loan Growth aur Interest Margins
Bank ne kaha hai ki FY26 mein loan growth system credit growth se 2-3% zyada rahega. Lekin, net interest margins (NIMs) par pressure ho sakta hai. Good news yeh hai ki deposit repricing agle chaar-paanch mahino mein shuru ho jayegi, jisse FY26 ke liye NIMs ~3.5% tak pahunch sakte hain.
Profitability aur Retail Lending
Bank ko umeed hai ki higher recoveries aur credit costs mein savings, third-party distribution income mein increase, aur retail business ki productivity mein sudhar se RoA (Return on Assets) FY26 mein 1.5% par bana rahega. Retail lending agle paanch saalo mein bank ke loan book ka 5-7% ho sakta hai.
Asset Quality aur MD & CEO
Recoveries FY26 mein slippages se zyada hone ki umeed hai. Naye MD & CEO ke liye application process September 2025 se shuru hoga.
Financial Estimates aur Target Price
Hamne FY25-FY27E mein loan/earnings ka CAGR (Compound Annual Growth Rate) 14.2%/15.7% estimate kiya hai, jisse FY27E mein RoA/RoE sudhar kar 1.6%/13.3% ho jayega. City Union Bank ko 1.65x Jun-27E adjusted book value par value kiya hai, jisse target price Rs 260 derive hota hai.
Investment Recommendation
Hamara target multiple pichle paanch saal ke average multiple 1.5x se 11.7% premium par hai. City Union Bank par hum positive hain kyunki MSME loan business mein turnaround aur retail business ke recent launch se growth prospects improve hue hain. Asset quality aur PCR bhi improve hue hain. Hum City Union Bank par ‘Buy’ rating maintain karte hain.
