We feel that UCO should fall to our TP of 28 as Bank may have *negative Return on Assets of -2.5%*

Short UCO Bank, target Rs 32: Manoj Murlidharan

Manoj Murlidharan of Religare Securities is of the view that one can short UCO Bank for target of Rs 32

WORST ASSET QUALITY in Indian banking space: UCO Bank Ltd:            *GNPA 15%+, Nnpa 10% and FY16 Loss almost 80% of market cap*

Q4 results today.

1) *GNPA will be more than 15%(a record in Indian banking space)*

2) *Nnpa 9.50%+(again highest in India).*

3) *CAR falling to 9%*  Much lower than RBI prescribed 12%.

4) *FY16 Loss around 2900-3000 cr ( 80% of market cap)*
For Q4 *alone* UCO should report LOSS of *more than 1800crores*.
*Highest ever NPA in Indian banking space* So far no other PSB has reported such high NPA.

Further, huge fresh *slippages*
Large no of *top 50 defaulters* are UCO's clients
With such huge deterioration in asset quality and sharply low Capital Adequacy Ratio, bank may come under RBI's monthly supervision

*Sell Sell*

TP Rs 28