Bank of India Result Updated

8/3/2019 Bank of India Result Updated

1/12

Please refer to important disclosures at the end of this report 1

Particulars (` cr) 3QFY12 2QFY12 % chg (qoq) 3QFY11 % chg (yoy)NII 2,068 1,904 8.6 1,987 4.1Pre-prov. profit 1,732 1,552 11.6 1,389 24.7

PAT 716 491 45.8 653 9.6Source: Company, Angel Research

For 3QFY2012, Bank of India posted a moderate set of results, with net profit

growing by 9.6% yoy to `716cr, above our estimates on account of higher

sequential rise in NIM than expected by us. We recommend Neutral on the stock.NPA levels decline sequentially; NIM improves sequentially: The banks advancesgrowth picked up during 3QFY2012, growing by 7.5% qoq (up 19.5% yoy).

Deposit growth was moderate during the quarter, growing by 2.7% qoq (up

21.7% yoy). As a result of faster rise in advances sequentially, credit-to-deposit

(CD) ratio increased by 331bp qoq to 75.0%. CASA deposits grew by rather

moderate 13.4% yoy with SA deposits growing at a slightly better pace of 14.3%

yoy. Domestic CASA ratio improved sequentially to 32.4% in 3QFY2012 from

31.3% in 2QFY2012. Domestic NIM of the bank improved by 14bp qoq in

3QFY2012 to 2.9%, on the back of uptick in yield on advances (up 24bp qoq) to

11.9%. Fee income performance was robust during the quarter, growing by

31.5% yoy (up 1.2% qoq). Recoveries from written-off accounts nearly trebled on

a yoy basis to `186cr. The banks NPA levels improved during 3QFY2012, withboth gross and net NPA levels declining by 2.5% and 3.6% sequentially,

respectively. As of 3QFY2012, gross NPA ratio stood at 2.7% (3.0% in

2QFY2012), while net NPA ratio stands at 1.8% (2.0% in 2QFY2012). Provision

coverage ratio continued to remain low at 60.9% in 3QFY2012 (59.1% in

2QFY2012). The 9MFY2012 annualized slippage ratio for the bank stands at

3.1% compared to 1.5% for 9MFY2011. The bank witnessed a chunky slippage of

~`500cr from its aviation account during the quarter.

Outlook and valuation: At the CMP, the stock is trading at cyclically moderatevaluations of 1.1x FY2013E ABV compared to historical range of 1.05-1.55x, with

a median of 1.25x. However, valuations are higher than peers, considering the

poor RoE outlook for the bank due to the macro headwinds. Accordingly,

we recommend Neutral on the stock.

Key financials

Y/E March (` cr) FY2010 FY2011 FY2012E FY2013ENII 5,756 7,811 7,996 9,374% chg 4.7 35.7 2.4 17.2

Net profit 1,741 2,489 2,441 2,603% chg (42.1) 42.9 (1.9) 6.6

NIM (%) 2.4 2.6 2.2 2.3

EPS (`) 33.1 45.5 44.6 47.6P/E (x) 10.4 7.6 7.7 7.2P/ABV (x) 1.5 1.2 1.2 1.1

RoA (%) 0.7 0.8 0.7 0.6

RoE (%) 14.2 17.3 14.4 13.7

Source: Company, Angel Research

NEUTRALCMP `344

Target Price -

Investment Period -

Stock Info

Sector Banking

Market Cap (` cr) 18,813

Beta 1.0

52 Week High / Low 498/261

Avg. Daily Volume 113,355

Face Value (`) 10

BSE Sensex 17,194

Nifty 5,199

Reuters Code BOI.BO

Bloomberg Code BOI@IN

Shareholding Pattern(%)

Promoters 65.9

MF / Banks / Indian Fls 11.9

FII / NRIs / OCBs 15.7Indian Public / Others 6.6

Abs. (%) 3m 1yr 3yr

Sensex (2.9) (6.2) 89.6

Bank of India 3.8 (21.6) 43.4

Vaibhav Agrawal022 3935 7800 Ext: 6808

[email protected]

Shrinivas Bhutda022 3935 7800 Ext: 6845

[email protected]

Varun Varma022 3935 7800 Ext: 6847

[email protected]

Bank of IndiaPerformance Highlights

3QFY2012 Result Update | Banking

January 31, 2012


2/12

Bank of India | 3QFY2012 Result Update

January 31, 2012 2

Exhibit 1:3QFY2012 performanceParticulars (` cr) 3QFY12 2QFY12 % chg (qoq) 3QFY11 % chg (yoy)Interest earned 7,150 6,886 3.8 5,468 30.8- on Advances / Bills 5,171 4,886 5.8 4,023 28.5- on investments 1,841 1,843 (0.1) 1,275 44.4

- on balance with RBI & others 182 133 37.0 151 20.5

- on others (45) 24 (290.2) 18 (353.0)

Interest Expended 5,083 4,982 2.0 3,481 46.0Net Interest Income 2,068 1,904 8.6 1,987 4.1Other income 852 842 1.2 648 31.5Other income excl. treasury 781 687 13.6 589 32.6

- Fee Income 320 326 (1.7) 284 12.9

- Treasury Income 71 154 (53.9) 59 20.3

- Recov. from written off a/cs 186 88 112.1 66 182.4

- Others 275 274 0.3 239 14.7

Operating income 2,920 2,746 6.3 2,635 10.8Operating expenses 1,188 1,194 (0.5) 1,246 (4.7)- Employee expenses 759 728 4.3 837 (9.3)

- Other Opex 429 467 (8.1) 409 4.8

Pre-provision Profit 1,732 1,552 11.6 1,389 24.7Provisions & Contingencies 693 1,154 (40.0) 498 39.2- Provisions for NPAs 333 824 (59.6) 124 169.4

- Provisions for Investments 119 151 (21.2) 66 80.9

- Other Provisions 241 179 34.4 309 (21.9)

PBT 1,039 397 161.6 891 16.6Provision for Tax 323 (94) (443.4) 238 35.8PAT 716 491 45.8 653 9.6Effective Tax Rate (%) 31.1 (23.7) 5472bp 26.7 438bp


Exhibit 2:3QFY2012 Actual vs. EstimatesParticulars (` cr) Actual Estimates Var (%)NII 2,068 1,962 5.4

Non-interest income 852 797 6.9

Operating income 2,920 2,758 5.8Operating expenses 1,188 1,216 (2.3)

Pre-prov. profit 1,732 1,543 12.3Provisions & cont. 693 710 (2.4)

PBT 1,039 832 24.8

Prov. for taxes 323 208 55.1

PAT 716 624 14.7Source: Company, Angel Research


3/12


January 31, 2012 3

Exhibit 3:3QFY2012 performance analysisParticulars 3QFY12 2QFY12 % chg (qoq) 3QFY11 % chg (yoy)Balance sheetAdvances (`cr) 230,355 214,332 7.5 192,754 19.5Deposits (`cr) 307,252 299,074 2.7 252,526 21.7

Credit-to-Deposit Ratio (%) 75.0 71.7 331bp 76.3 (136)bp

Domestic current deposits (`cr) 14,965 13,140 13.9 13,621 9.9

Domestic saving deposits (`cr) 63,606 63,513 0.1 55,667 14.3

Domestic CASA deposits (`cr) 78,571 76,652 2.5 69,287 13.4

Global CASA ratio (%) 25.6 25.6 (6)bp 27.4 (187)bp

CAR (%) 11.2 12.0 (79)bp 12.4 (123)bp

Tier 1 CAR (%) 7.7 8.3 (61)bp 8.0 (32)bp

Profitability Ratios (%)Cost of deposits 7.1 7.1 (1)bp 5.6 145bp

Yield on advances 11.9 11.7 24bp 10.4 158bp

Yield on investments 7.9 8.0 (6)bp 7.9 (4)bp

Yield on funds 9.3 9.2 7bp 8.3 98bp

Cost of funds 6.7 6.5 21bp 5.3 136bp

Reported NIM 2.9 2.8 14bp 3.5 (58)bp

Cost-to-income ratio 40.7 43.5 (281)bp 47.3 (661)bp

Asset qualityGross NPAs (` cr) 6,386 6,548 (2.5) 4,542 40.6

Gross NPAs (%) 2.7 3.0 (28)bp 2.4 38bp

Net NPAs (`cr) 4,093 4,245 (3.6) 1,660 146.5

Net NPAs (%) 1.8 2.0 (20)bp 0.9 90bp

Provision Coverage Ratio (%) 60.9 59.1 174bp 74.5 (1365)bp

LLP to avg assets (%) 0.4 0.9 (57)bp 0.2 19.5

Source: Company, Angel Research; Note: Profitability ratios excluding CIR for domestic operations

Credit offtake picks up sequentially

The banks advances growth picked up during 3QFY2012, growing by 7.5% qoq

(up 19.5% yoy) to `230,355cr. Deposit growth was moderate during the quarter,

growing by 2.7% qoq (up 21.7% yoy) to `307,252cr. As a result of faster rise in

advances sequentially, the credit-to-deposit (CD) ratio increased by 331bp qoq to

75.0%.

Domestic gross advances for the bank grew by 8.2% yoy, while international

advances growth was healthy at 60.2% yoy. However, removing the effect of rupee

depreciation, growth in the international book was at normalized levels. Share of

international advances in the total loan book has, thus, moved up to 29.1% as of

2QFY2012 from 26.3% as of 2QFY2012. On the deposits side, CASA deposits

grew by rather moderate 13.4% yoy, with saving account deposits growing at a

slightly better pace of 14.3% yoy. Domestic CASA ratio improved sequentially to

32.4% in 3QFY2012 from 31.3% in 2QFY2012.


4/12


January 31, 2012 4

Exhibit 4:Business momentum remains slows


Exhibit 5:Domestic CASA ratio improves


Exhibit 6:International segment higher due to sharp rupee depreciationParticulars (` cr) 3QFY12 2QFY12 % chg (qoq) 3QFY11 % chg (yoy) % to total Agricultural 20,780 19,641 5.8 20,540 1.2 9.0

SME 31,150 30,524 2.1 27,858 11.8 13.5

Corporates 93,391 91,304 2.3 86,885 7.5 40.5

Retail 18,004 16,395 9.8 15,620 15.3 7.8

Domestic advances 163,325 157,864 3.5 150,903 8.2 70.9International 67,030 56,468 18.7 41,851 60.2 29.1

Global advances 230,355 214,332 7.5 192,754 19.5 100.0Source: Company, Angel Research

Domestic NIM improves sequentially on uptick in yield on

advances

Domestic NIM of the bank improved by 14bp qoq in 3QFY2012 to 2.9% on the

back of uptick in yield on advances (up 24bp qoq) to 11.9%. Cost of deposits for

the bank remained flat sequentially at 7.1%. Management has guided for domestic

NIM to be ~3% and global NIM to be ~2.6% for FY2013.

Exhibit 7:Trend in yield and cost ratios (Global)Particulars (%) 3QFY12 2QFY12 % chg (qoq) 3QFY11 % chg (yoy)Cost of deposits 6.0 6.1 (13)bp 5.0 99bp

Yield on advances 9.5 9.4 4bp 8.8 67bp

Yield on investments 7.7 7.8 (8)bp 7.7 3bp

Yield on funds 8.0 8.1 (7)bp 7.4 56bp

Cost of funds 5.7 5.6 8bp 4.7 95bp

Reported NIM 2.6 2.4 11bp 3.1 (54)bp


6.2

10

.6

0.9

(0.3

)

7.5

4.8

18

.4

(1.9

)

2.0

2.7

76.3

71.3

73.3

71.7

75.0

65.0

68.0

71.0

74.0

77.0

(5.0)

-

5.0

10.0

15.0

20.0

3QFY11 4QFY11 1QFY12 2QFY12 3QFY12

Adv. qoq chg (%) Dep. qoq chg (%) CDR (%, RHS)

32

.3

28

.9

30

.2

31

.3

32

.4

22.2

18.3

14.312.6

13.4

-

10.0

20.0

30.0

20.0

23.0

26.0

29.0

32.0

35.0


Doemstic CASA ratio (%) CASA yoy growth (%, RHS)


5/12


January 31, 2012 5

Exhibit 8:Uptick in domestic yield on advances...


Exhibit 9:...leads to 14bp qoq increase in domestic NIM


Recoveries see a sharp rise in 3QFY2012Overall, other income performance was robust, growing by 31.5% yoy (up 1.2%

qoq) during 3QFY2012. Recoveries from written-off accounts nearly trebled to

`186cr, although on a low base. Treasury income also registered a strong

performance, growing by 20.3% yoy to `71cr. Growth in commission and

brokerage was moderate at 12.9% yoy to `320cr.

Exhibit 10:Moderate fee income growthParticulars (` cr) 3QFY12 2QFY12 % chg (qoq) 3QFY11 % chg (yoy)CEB 320 326 (1.7) 284 12.9

Treasury 71 154 (53.9) 59 20.3Forex 124 148 (16.5) 127 (2.5)

Recoveries 186 88 112.1 66 182.4

Others 151 126 20.0 112 34.3

Other income 852 842 1.2 648 31.5Other income excl. treasury 781 687 13.6 589 32.6


NPA levels decline for 3QFY2012

The banks NPA levels improved during 3QFY2012, with both gross and net

NPA levels declining by 2.5% and 3.6% sequentially, respectively. As of

3QFY2012, gross NPA ratio stands at 2.7% (3.0% in 2QFY2012), while net

NPA ratio stood at 1.8% (2.0% in 2QFY2012). Provision coverage ratio

continued to remain low at 60.9% (59.1% in 2QFY2012).

The 9MFY2012 annualized slippage ratio for the bank stands at 3.1%

compared to 1.5% for 9MFY2011. The bank witnessed a chunky slippage of

~`500cr from its aviation account during the quarter. The bank restructured

`3,010cr worth accounts during 3QFY2012. Slippages from the restructured

book during 3QFY2012 stood at `514cr.

10.35

10.6710.84

11.69

11.93

9.5

10.0

10.5

11.0

11.5

12.0

12.5


(%)

3.493.38

2.43

2.772.91

1.50

2.00

2.50

3.00

3.50

4.00


(%)


6/12


January 31, 2012 6

Exhibit 11:Credit costs down after jumping in 2QFY2012


Exhibit 12:NPA levels decline sequentially


Exhibit 13:Trend in opex


Exhibit 14:Cost ratios at normalized levels


Investment arguments

Embattled with asset-quality issues

Asset-quality pressures, which had moderated in FY2011 post the severe stress

witnessed in FY2010, once again re-surfaced in 1HFY2012 with slippages rate

rising to 4.2%. As of 9MFY2012, slippage ratio remains high at 3.1%. While the

spike in 1HFY2012 was partly due to migration to system-based NPA recognitionplatform, the rate of slippages could remain on the higher side in the coming

quarters as well due to the weak macro environment. As a result, earnings, which

are expected to decline by ~2% yoy in FY2012 due to lower NIMs, are likely to

remain subdued even in FY2013. Consequently, the banks RoEs, which were

unsustainably high at 28% in FY2008 and FY2009 and subsequently declined to

14% in FY2010 itself, are likely to remain at sub-14% until FY2013 as well, as the

bank continues to pay the price for high risk-taking in FY2008-09.

0.2

0.4

0.4

0.9

0.4

-

0.2

0.4

0.6

0.8

1.0


(%)

2.4

2.2

2.7

3.0

2.7

0.9

0.9

1.3

2.0

1.8

74.5

72.2

66.8

59.160.9

55.0

59.0

63.0

67.0

71.0

75.0

79.0

-

0.5

1.0

1.5

2.0

2.53.0

3.5


Gross NPAs (%) Net NPAs (%) PCR (%, RHS)

837

1,4

62

700

728

759

409

464

405

467

429

47.3

61.5

44.2 43.5 40.7

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

-

300

600

900

1,200

1,500

1,800

2,100

3

QFY11

4

QFY11

1

QFY12

2

QFY12

3

QFY12

Staff expenses (` cr) Other opex (` cr)

47

.3

61

.5

44

.2

43

.5

40

.7

1.7

2.4

1.3 1.4 1.3

-

0.5

1.0

1.5

2.0

2.5

-

20.0

40.0

60.0

80.0


Cost-to-income ratio (%) Opex to average assets (%, RHS)


7/12


January 31, 2012 7

Reasonably high fee income with a moderate funding mix

The banks international operations contribute a substantial 25.0% to its advances.

International operations enable a wider spectrum of fee-based services to the

banks domestic corporate and retail customers, foreign currency fund-basedservices to Indian corporates and savings products to the banks PIO clients

abroad. The bank has a better funding mix, with domestic CASA ratio at 32.4% as

of 3QFY2012.

Outlook and valuation

At the CMP, the stock is trading at cyclically moderate valuations of 1.1x FY2013E

ABV compared to its historical range of 1.05-1.55x with a median of 1.25x.

However, valuations are higher than peers considering the poor RoE outlook for

the bank due to macro headwinds. Accordingly, we recommend a Neutral ratingon the stock.


8/12


January 31, 2012 8

Exhibit 15:Key assumptionsParticulars (%) Earlier estimates Revised estimatesFY2012 FY2013 FY2012 FY2013Credit growth 17.0 16.0 16.0 16.0Deposit growth 15.0 16.0 13.0 16.0

CASA ratio 25.3 25.1 25.8 25.5

NIMs 2.1 2.1 2.2 2.3

Other income growth 18.3 6.7 18.3 6.9

Growth in staff expenses (15.0) 14.0 (15.0) 14.0

Growth in other expenses 15.0 14.0 12.0 14.0

Slippages 4.5 3.8 4.4 3.5

Coverage 62.0 60.0 62.0 63.0


Exhibit 16:Change in estimatesParticulars (` cr)

FY2012 FY2013Earlierestimates Revisedestimates % chg Earlierestimates Revisedestimates % chg

NII 7,761 7,996 3.0 8,930 9,374 5.0

Non-interest income 3,125 3,126 0.0 3,335 3,341 0.2

Operating income 10,886 11,121 2.2 12,265 12,715 3.7Operating expenses 4,786 4,738 (1.0) 5,456 5,401 (1.0)

Pre-prov. profit 6,100 6,383 4.6 6,809 7,314 7.4Provisions & cont. 3,088 3,128 1.3 3,120 3,461 10.9

PBT 3,012 3,255 8.1 3,689 3,853 4.4

Prov. for taxes 663 814 22.8 1,197 1,250 4.4

PAT 2,349 2,441 3.9 2,492 2,603 4.4Source: Company, Angel Research

Exhibit 17:P/ABV band


0

200

400

600

800

Mar-

02

Oc

t-02

May-0

3

Dec-0

3

Jul-04

Fe

b-0

5

Sep-0

5

Apr-

06

Nov-0

6

Jun-0

7

Jan-0

8

Aug-0

8

Mar-

09

Oc

t-09

May-1

0

Dec-1

0

Jul-11

Fe

b-1

2

Price (`) 0.8x 1.1x 1.4x 1.7x 2x


9/12


January 31, 2012 9

Exhibit 18:Recommendation summaryCompany Reco. CMP(`) Tgt. price(`) Upside(%) FY2013EP/ABV (x) FY2013ETgt P/ABV (x) FY2013EP/E (x) FY2011-13EEPS CAGR (%) FY2013ERoA (%) FY2013ERoE (%) AxisBk Buy 1,074 1,36126.7 1.7 2.2 9.3 18.2 1.5 20.2

FedBk Neutral 400 - - 1.1 - 8.6 16.2 1.2 13.2

HDFCBk Accumulate 491 516 5.2 3.3 3.5 17.1 30.4 1.8 21.0

ICICIBk* Buy 902 1,061 17.7 1.7 2.0 14.2 19.2 1.3 14.4

SIB Neutral 23 - - 1.1 - 6.9 13.5 0.9 17.5

YesBk Accumulate 330 367 11.1 2.1 2.3 10.9 20.1 1.4 20.6

AllBk Neutral 162 -- 0.7 - 4.5 9.1 0.9 17.3

AndhBk Neutral 102 -- 0.8 - 5.0 (4.8) 0.8 14.6

BOB Buy 753 907 20.3 1.0 1.3 5.8 9.8 1.1 19.3

BOI Neutral 344 - - 1.1 - 7.2 2.3 0.6 13.7BOM Accumulate 48 53 12.1 0.7 0.8 4.9 26.3 0.7 16.9

CanBk Accumulate 471 528 12.1 0.9 1.1 6.0 (7.4) 0.8 15.8CentBk Neutral 85 - - 0.7 - 5.3 (24.3) 0.4 11.4

CorpBk Accumulate 414 450 8.7 0.7 0.8 4.5 (1.8) 0.8 15.5

DenaBk Accumulate 68 72 6.4 0.5 0.5 3.5 2.4 0.8 14.9

IDBI# Accumulate 101 107 5.9 0.7 0.7 5.0 9.9 0.7 13.4

IndBk Neutral 221 - - 0.9 - 5.3 3.8 1.2 18.4

IOB Neutral 88 - - 0.6 - 4.6 5.3 0.5 12.8

J&KBk Neutral 830 - - 0.9 - 4.8 16.7 1.4 19.0

OBC Neutral 256 - - 0.7 - 5.6 (5.9) 0.7 11.3

PNB Accumulate 940 1,059 12.6 1.1 1.2 5.8 7.3 1.0 19.7

SBI* Accumulate 2,061 2,359 14.4 1.7 1.9 10.0 26.0 0.8 17.9

SynBk Accumulate 96 106 10.5 0.6 0.7 4.1 13.7 0.7 16.5

UcoBk Neutral 69 - - 0.8 - 4.4 10.9 0.6 15.4

UnionBk Reduce 229 217 (5.3) 1.0 0.9 5.8 0.1 0.7 15.8

UtdBk Neutral 70 - - 0.7 - 4.9 4.3 0.6 12.1

VijBk Reduce 56 52(7.4) 0.8 0.7 6.3 0.7 0.4 11.1

Source: Company, Angel Research; Note:*Target multiples=SOTP Target Price/ABV (including subsidiaries), #Without adjusting for SASF


10/12


January 31, 2012 10

Income statementY/E March (` cr) FY08 FY09 FY10 FY11 FY12E FY13ENII 4,229 5,499 5,756 7,811 7,996 9,374- YoY Growth (%) 22.9 30.0 4.7 35.7 2.4 17.2Other Income 2,117 3,052 2,617 2,642 3,126 3,341- YoY Growth (%) 35.4 44.2 (14.3) 1.0 18.3 6.9

Operating Income 6,346 8,551 8,373 10,452 11,121 12,715- YoY Growth (%) 26.8 34.7 (2.1) 24.8 6.4 14.3

Operating Expenses 2,645 3,094 3,668 5,068 4,738 5,401- YoY Growth (%) 1.4 17.0 18.5 38.2 (6.5) 14.0

Pre - Provision Profit 3,701 5,457 4,705 5,384 6,383 7,314- YoY Growth (%) 54.5 47.4 (13.8) 14.4 18.6 14.6

Prov. & Cont. 1,017 1,292 2,211 1,889 3,128 3,461- YoY Growth (%) 17.9 27.1 71.1 (14.6) 65.6 10.6

Profit Before Tax 2,685 4,164 2,494 3,495 3,255 3,853- YoY Growth (%) 75.1 55.1 (40.1) 40.2 (6.9) 18.4

Prov. for Taxation 675 1,157 753 1,007 814 1,250- as a % of PBT 25.2 27.8 30.2 28.8 25.0 32.4

PAT 2,009 3,007 1,741 2,489 2,441 2,603- YoY Growth (%) 78.9 49.7 (42.1) 42.9 (1.9) 6.6

Balance sheetY/E March (` cr) FY08 FY09 FY10 FY11 FY12E FY13EShare Capital 526 526 526 547 547 547Reserves & Surplus 10,063 12,969 13,704 16,743 18,676 20,738

Deposits 150,012 189,708 229,762 298,886 337,741 391,780

- Growth (%) 25.1 26.5 21.1 30.1 13.0 16.0

Borrowings 7,172 9,487 14,079 12,862 14,449 16,741

Tier 2 Capital 4,946 6,186 8,320 9,160 10,625 12,325

Other Liab & Prov. 6,110 6,625 8,590 12,975 12,469 14,963

Total Liabilities 178,830 225,502 274,982 351,173 394,507 457,095Cash balances 11,742 8,915 15,603 21,782 21,953 25,466

Bank balances 5,976 12,846 15,628 15,528 17,444 20,211

Investments 41,803 52,607 67,080 85,872 94,229 108,908

Advances 113,476 142,909 168,491 213,096 247,192

- Growth (%) 33.6 25.9 17.9 26.5 16.0 16.0

Fixed Assets 2,426 2,532 2,352 2,481 2,703 3,038

Other Assets 3,407 5,692 5,829 12,413 10,986 12,729

Total Assets 178,830 225,502 274,982 351,173 394,507 457,095- Growth (%) 26.3 26.1 21.9 27.7 12.3 15.9


11/12


January 31, 2012 11

Ratio analysisY/E March FY08 FY09 FY10 FY11 FY12E FY13ENIMs 2.7 2.8 2.4 2.6 2.2 2.3

Cost to Income Ratio 41.7 36.2 43.8 48.5 42.6 42.5RoA 1.3 1.5 0.7 0.8 0.7 0.6

RoE 27.6 29.2 14.2 17.3 14.4 13.7

B/S ratios (%)CASA Ratio 30.6 26.8 27.8 25.4 25.8 25.5

Credit/Deposit Ratio 75.6 75.3 73.3 71.3 73.2 73.2

CAR 13.0 13.0 12.9 12.2 12.3 12.0

- Tier I 8.2 8.9 8.5 8.3 8.2 7.8

Asset Quality (%)Gross NPAs 1.7 1.7 2.9 2.2 4.3 5.4

Net NPAs 0.5 0.4 1.3 0.9 2.3 2.5

Slippages 1.6 1.8 2.9 1.7 4.4 3.5

Loan Loss Prov./Avg. Assets 0.4 0.3 0.7 0.3 0.7 0.8

Provision Coverage 75.6 56.1 65.5 72.2 62.0 63.0

Per Share Data (`)EPS 38.2 57.2 33.1 45.5 44.6 47.6

ABVPS 167.8 215.2 229.4 287.1 291.8 3

DPS 4.0 8.0 7.0 7.0 8.0 8.5

Valuation RatiosPER (x) 9.0 6.0 10.4 7.6 7.7 7.2

P/ABVPS (x) 2.1 1.6 1.5 1.2 1.2 1.1

Dividend Yield 1.2 2.3 2.0 2.0 2.3 2.5

DuPont Analysis (%)NII 2.6 2.7 2.3 2.5 2.1 2.2

(-) Prov. Exp. 0.6 0.6 0.9 0.6 0.8 0.8

Adj. NII 2.0 2.1 1.4 1.9 1.3

Treasury 0.2 0.4 0.2 0.1 0.1 0.0

Int. Sens. Inc. 2.2 2.4 1.7 2.0 1.4 1.4

Other Inc. 1.1 1.1 0.8 0.7 0.7 0.7

Op. Inc. 3.3 3.6 2.5 2.7 2.1 2.2

Opex 1.7 1.5 1.5 1.6 1.3 1.3

PBT 1.7 2.1 1.0 1.1 0.9 0.9Taxes 0.4 0.6 0.3 0.3 0.2 0.3

RoA 1.3 1.5 0.7 0.8 0.7 0.6Leverage (x) 22.0 19.6 20.4 21.8 22.0 22.5

RoE 27.6 29.2 14.2 17.3 14.4 13.7


12/12


January 31 2012 12

Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com

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