Angel Broking has recommended 'Accumulate' on South Indian Bank with target price of Rs 26 as against current market price Rs 24 in its report.

Commenting on the investment rationale Angel Broking said, ''South Indian Bank has reported a weak set of numbers for 4QFY2015. Its PAT for the quarter de-grew by 86.9% yoy, primarily on account of lower net interest income (NII) and higher provisioning.

Asset quality issues continued to linger during the year. With an improvement in the macro-economic environment, the bank expects the Gross NPA ratio to stabilize at current levels. Currently the stock trades at 0.8x FY2017E ABV. With negatives factored in lower valuations, we recommend an Accumulate rating on the stock with a price target of Rs 26.'' 

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