City Union Bank an underperformer: Karvy

Karvy Stock Broking has maintained its underperformer rating on City Union Bank with a target price of Rs 19 in its August 13, 2009 research report.

"In Q1FY10, City Union Bank (CUB) reported marginal de-growth of 0.7% (Y/Y) in net interest income to Rs 563 million compared to our estimates of Rs 604 million; deviation from our estimates was due to higher cost of deposits. We maintain our Under Performer rating on the stock with a price target of Rs 19 at 1.1x adjusted book value FY11. At current price, the stock quotes at 1.33x ABV FY11," says Karvy's research report.

Source : Money Control