Dolat Capital is bullish on City Union Bank (CUB) and has recommended buy rating on the stock with a target price of 53 in its February 3, 2012 research report.

City Union Bank Limited is a banking company. The Bank operates in four segments: Treasury, Corporate/wholesale banking, Retail Banking and Other Banking Operations. As of March 31, 2010, its deposits totaled 10,285 crores, net advances totaled 6,833 crores and net investments totaled 3,210 crores. Bank operated 222 branches and 152 automated teller machines. It provides Internet banking facilities to its customers. It has also tied up with number of banks and exchange houses for e-remittance services for Non-Resident Indian (NRIs). The Bank has associated itself with Visa International and introduced VISA debit cards and also with NFS & Bank of India (Cash Tree), which would enable the customer to have access to more than 52,000 ATMs in India.

In Q3 FY12, City Union Bank's (CUB) NII grew 17.3 percent YoY to 1.2 billion - in line with our estimates. However, NIM fell to 3.24 percent from 3.48 percent in Q3 FY11 and 3.41 percent in Q2 FY12. Operating expenses rose 34 percent to 686 million, whereas other income grew 40 percent to 508 million from 363 million in Q3FY11, resulting in a 17 percent  YoY jump in operating profit to 1.05 billion says Dolat Capital research report.

Currently CUB is trading at 43.65. Its 52 week high has 50.50 and its 52 week low has been 34.85. It is trading with an average volume of 556,773 everyday.