Despite being a smaller sized bank and having a concentrated presence in south India, City Union Bank has all the features of a large private bank, believes Sandeep Raina of Nuvama Professional Clients Group. This reflects in its robust performance metrics across NIMs, cost-income ratio, credit cost, PPoP-Assets and return ratios.
As long as the stock stays above 136-140, bulls will be able to make a comeback, suggest experts. If the momentum continues, the short-term target is placed around 160, they say.
Cholamandalam Financial Holdings, where MFs held 25.72 per cent stake, has jumped 78 per cent to Rs 984.40 level on Thursday against December 30 2022's closing price of Rs 551.05.
City Union Bank share price: Prabhudas Lilladher has downgraded its rating from 'Buy' to 'Accumulate' with a one-year target price of Rs 160 from Rs 190 earlier. "We trim NIM (Net interest margin) by 18 basis points (bps) to 3.50 per cent and reduce multiple from 1.8x to 1.4x due to growth/pricing pressures emanating from higher competition," the brokerage stated.