NSEI:CORPBANK

Stock Analysis Report

Executive Summary

Corporation Bank provides banking products and services for individuals and corporate customers in India.

Rewards

Earnings are forecast to grow 112.02% per year

Risk Analysis

Shareholders have been substantially diluted in the past year

Makes less than USD$1m in revenue (₹-22B)

Highly volatile share price over past 3 months



Snowflake Analysis

Adequate balance sheet with moderate growth potential.

Share Price & News

How has Corporation Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CORPBANK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.4%

CORPBANK

-2.1%

IN Banks

-2.4%

IN Market


1 Year Return

-14.6%

CORPBANK

13.8%

IN Banks

6.8%

IN Market

Return vs Industry: CORPBANK underperformed the Indian Banks industry which returned 13.8% over the past year.

Return vs Market: CORPBANK underperformed the Indian Market which returned 6.8% over the past year.


Shareholder returns

CORPBANKIndustryMarket
7 Day-0.4%-2.1%-2.4%
30 Day38.9%2.1%-0.6%
90 Day38.5%12.6%7.2%
1 Year-14.6%-14.6%14.2%13.8%8.9%6.8%
3 Year-47.2%-47.2%28.6%27.1%31.8%24.8%
5 Year-59.8%-60.9%11.9%8.3%40.3%27.8%

Price Volatility Vs. Market

How volatile is Corporation Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Corporation Bank undervalued compared to its fair value and its price relative to the market?

0.84x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CORPBANK's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate CORPBANK's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: CORPBANK is unprofitable, so we can't compare its PE Ratio to the Banks industry average.

PE vs Market: CORPBANK is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CORPBANK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CORPBANK is overvalued based on its PB Ratio (0.8x) compared to the IN Banks industry average (0.7x).


Next Steps

Future Growth

How is Corporation Bank forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

112.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CORPBANK is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (6.5%).

Earnings vs Market: CORPBANK is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CORPBANK's is expected to become profitable in the next 3 years.

Revenue vs Market: Insufficient data to determine if CORPBANK's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if CORPBANK's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CORPBANK's Return on Equity is forecast to be low in 3 years time (6.9%).


Next Steps

Past Performance

How has Corporation Bank performed over the past 5 years?

-50.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CORPBANK is currently unprofitable.

Growing Profit Margin: CORPBANK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CORPBANK is unprofitable, and losses have increased over the past 5 years at a rate of -50.5% per year.

Accelerating Growth: Unable to compare CORPBANK's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CORPBANK is unprofitable, making it difficult to compare its past year earnings growth to the Banks industry (25.8%).


Return on Equity

High ROE: CORPBANK has a negative Return on Equity (-37.26%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Corporation Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CORPBANK has a low level of unsold assets or inventory.

Debt Coverage by Assets: CORPBANK's debt is covered by short term assets (assets are 5.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: CORPBANK has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: CORPBANK has less than a year of cash runway if free cash flow continues to reduce at historical rates of -51.2% each year


Financial Institutions Analysis

Asset Level: CORPBANK's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if CORPBANK has a sufficient allowance for bad loans.

Low Risk Liabilities: CORPBANK's liabilities are made up of primarily low risk sources of funding.

Loan Level: CORPBANK has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CORPBANK's loans are broadly funded by customer deposits.

Level of Bad Loans: CORPBANK has a high level of bad loans (17.23%)


Next Steps

Dividend

What is Corporation Bank's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.5%industryaverage0.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate CORPBANK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CORPBANK's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CORPBANK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CORPBANK's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: CORPBANK is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CORPBANK's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of Corporation Bank's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

P. Bharathi (59yo)

0.8yrs

Tenure

₹2,801,656

Compensation

Mrs. P. V. Bharathi has been Chief Executive Officer, Managing Director and Executive Director of Corporation Bank since February 1, 2019. Mrs. Bharathi served as Executive Director of Canara Bank Limited  ...


CEO Compensation Analysis

Compensation vs Market: P.'s total compensation ($USD39.44K) is below average for companies of similar size in the Indian market ($USD633.49K).

Compensation vs Earnings: Insufficient data to compare P.'s compensation with company performance.


Management Age and Tenure

0.8yrs

Average Tenure

Experienced Management: CORPBANK's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

1.5yrs

Average Tenure

62yo

Average Age

Experienced Board: CORPBANK's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹90,859,968,18201 Apr 19
India
EntityCompany
Shares3,405,547,226
Max Price₹26.68

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 164.5%.


Management Team

  • Santanu Dash (56yo)

    Deputy GM

    • Tenure: 8.9yrs
    • Compensation: ₹1.58m
  • Birupaksha Mishra

    Executive Director

    • Tenure: 1yrs
    • Compensation: ₹2.64m
  • Ranjan Sinha

    Chief Customer Service Officer

    • Tenure: 6.1yrs
  • P. Bharathi (59yo)

    CEO, MD & Director

    • Tenure: 0.8yrs
    • Compensation: ₹2.80m
  • V. Muthukrishnan

    CFO & GM

    • Tenure: 0.7yrs
  • A. Vinod

    Chief Risk Officer

    • Tenure: 0.8yrs
  • A. Vijayakumar

    Chief Vigilance Officer

    • Tenure: 0.7yrs

Board Members

  • Manish Gupta

    Central Government Nominee Director

    • Tenure: 5.7yrs
  • Birupaksha Mishra

    Executive Director

    • Tenure: 1yrs
    • Compensation: ₹2.64m
  • Chitra Lal (67yo)

    Shareholder Director

    • Tenure: 2.3yrs
  • P. Bharathi (59yo)

    CEO, MD & Director

    • Tenure: 0.8yrs
    • Compensation: ₹2.80m
  • M. Rao (65yo)

    Part Time Non official Director

    • Tenure: 0.8yrs
  • Pradeep Jain (57yo)

    Shareholder Director

    • Tenure: 2.3yrs
  • K. Murthy

    Non-Official Director

    • Tenure: 2yrs
  • P. Panda

    RBI Nominee Director

    • Tenure: 0.7yrs

Company Information

Corporation Bank's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Corporation Bank
  • Ticker: CORPBANK
  • Exchange: NSEI
  • Founded: 1906
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ₹143.261b
  • Shares outstanding: 5.99b
  • Website: https://www.corpbank.com

Number of Employees


Location

  • Corporation Bank
  • P.B. No. 88
  • Mangaladevi Temple Road
  • Mangalore
  • Karnataka
  • 575001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532179BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 1997
CORPBANKNSEI (National Stock Exchange of India)YesEquity SharesININRDec 1997

Biography

Corporation Bank provides banking products and services for individuals and corporate customers in India. It offers savings accounts, current accounts, deposits, loans, agriculture loans, cards, cash manag ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 12:48
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.