Indian Bank, 1Q FY 2014
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Transcript of Indian Bank, 1Q FY 2014
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7/27/2019 Indian Bank, 1Q FY 2014
1/11
Please refer to important disclosures at the end of this report 1
Particulars (` cr) 1QFY14 4QFY13 % chg (qoq) 1QFY13 % chg (yoy)NII 1,097 1,107 (1.0) 1,153 (4.9)Pre-prov. profit 859 565 52.2 840 2.3
PAT 317 292 8.6 462 (31.3)Source: Company, Angel Research
Indian Bank reported a weak operating performance for 1QFY2014, as its NII
de-grew by 4.9% yoy. Boosted by treasury gains of `314cr as against `22cr in
1QFY2013, the non-interest income grew strongly by 137.8% yoy to `530cr,
thereby enabling a growth in pre-provisioning profit of 2.3% yoy. The bank
witnessed moderate asset quality pressure, as Gross and Net NPA levels
increased sequentially by around 4.4% each. The provisioning expenses for the
bank more than doubled yoy, hence earnings de-grew by 31.3% yoy.
NIM lower qoq; Asset quality pressures continue:During 1QFY2014, the banksadvances grew at a healthy pace of 16.3% yoy (up 3.4% qoq). Within advances,
growth in the agriculture and retail book grew at a relatively higher 21.1% yoy.
Deposits growth also came in healthy at 17.8% yoy (5.4% qoq), while the low-cost
CASA franchise grew at a modest pace of 7.9% yoy (2.7% qoq).Consequently,
the CASA ratio for the bank dipped by 245bp yoy (70bp qoq) to 26.9%.Reported
NIM for the bank declined by 14bp qoq to 2.7%, on back of 16bp decline in yield
on advances to 10.5%. During 1QFY2014, the banks non-interest income (excl.
treasury) grew at a moderate pace of 7.4% yoy to `215cr. Growth in fee income
was moderate at 6.8% yoy to`
147cr, while recoveries from written off accountscame in at `21cr as against `32cr in 1QFY2013.During 1QFY2014, slippages
for the bank declined sequentially, however remained elevated at `643cr
(annualized slippage ratio of 2.8%) as against ~`1,306cr in 4QFY2013
(annualized slippage ratio of 5.8%). Recoveries/upgrades came lower during the
quarter at `217cr, as compared to `751cr in 4QFY2013. Gross NPA increased by
8bp qoq to 3.4%, while net NPA increased by 5bp qoq to 2.3%. The banks PCR
increased by 111bp qoq to 61.3%. Additionally, the bank restructured advances
worth `601 during the quarter, thereby taking its restructured book (stated borrower
wise, after upgrading satisfactorily performing accounts) to `10,020cr.
Outlook and valuation:Recent liquidity tightening measures implemented by theReserve Bank of India (RBI) amidst an overall weak economic environment clearly
suggests that the asset quality pressures for the banking sector are unlikely toabate as quickly as was expected earlier. Overall, we have a cautious view on the
sector, with a positive bias towards more retail oriented banks on both assets as
well as on liabilities. Hence, we recommend a Neutral rating on the stock.Key financials (Standalone)Y/E March (` cr) FY2012 FY2013 FY2014E FY2015ENII 4,418 4,524 4,533 5,071% chg 9.5 2.4 0.2 11.9
Net profit 1,747 1,581 1,117 1,459% chg 1.9 (9.5) -29.4 30.7
NIM (%) 3.5 3.1 2.7 2.7
EPS (`) 39.6 35.8 24.9 32.9P/E (x) 1.9 2.1 3.1 2.3
P/ABV (x) 0.4 0.3 0.3 0.3
RoA (%) 1.3 1.0 0.6 0.8
RoE (%) 20.4 16.1 10.3 12.4
Source: Company, Angel Research; CMP as of August 5, 2013
NEUTRALCMP `71Target Price -
Investment Period -
Stock Info
Sector
Bloomberg Code
Shareholding Pattern (%)
Promoters 80.0
MF / Banks / Indian Fls 6.0
FII / NRIs / OCBs 8.4
Indian Public / Others 5.6
Abs. (%) 3m 1yr 3yr
Sensex (2.0) 11.5 5.6
Indian Bank (56.8) (59.2) (70.0)
Banking
Market Cap (`cr) 3,030
Beta 1.1
52 Week High / Low 219/69
Avg. Daily Volume 38,982
Face Value (`) 10
BSE Sensex 19,182
Nifty 5,685
Reuters Code INBA.BO
INBK@IN
Vaibhav Agrawal022 3935 7800 Ext: 6808
Sourabh Taparia022 3935 7800 Ext: 6872
Harshal Patkar022 3935 7800 Ext: 6847
harshal. atkar@an elbrokin .com
Indian BankPerformance Highlights
1QFY2014 Result Update | Banking
August 6, 2013
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Indian Bank | 1QFY2014 Result Update
August 6, 2013 2
Exhibit 1:1QFY2014 performance (Standalone)1QFY14 4QFY13 % chg (qoq) 1QFY13 % chg (yoy) FY13 FY12 % chg
Interest earned 3,666 3,562 2.9 3,374 8.7 13,893 12,231 13.6- on Advances / Bills 2,786 2,700 3.2 2,610 6.7 10,607 9,424 12.6- on investments 871 847 2.9 758 15.0 3,238 2,790 16.1
- on balance with RBI & others 9 15 (39.8) 6 44.7 48 17 179.4
Interest Expended 2,569 2,455 4.7 2,221 15.7 9,368 7,813 19.9Net Interest Income 1,097 1,107 (1.0) 1,153 (4.9) 4,524 4,418 2.4Other income 530 460 15.0 223 137.8 1,287 1,180 9.1Other income excl. treasury 215 334 (35.6) 200 7.4 1,074 1,066 0.7
- Fee Income 147 263 (44.1) 138 6.8 849 933 (9.1)
- Treasury Income 314 126 148.8 22 1,309.9 213 114 87.5
- Recoveries from written off accounts 21 71 (69.8) 32 (33.8) 195 133 46.5
Operating income 1,626 1,568 3.7 1,376 18.2 5,811 5,598 3.8Operating expenses 767 1,003 (23.5) 536 43.2 2,751 2,187 25.8- Employee expenses 576 781 (26.2) 369 56.1 1,974 1,484 33.0
- Other Opex 191 222 (14.1) 166 14.8 777 703 10.5
Pre-provision Profit 859 565 52.2 840 2.3 3,060 3,411 (10.3)Provisions & Contingencies 368 476 (22.6) 146 152.7 1,235 1,195 3.3PBT 491 89 452.1 695 (29.3) 1,825 2,216 (17.6)Provision for Tax 174 (203) (185.5) 233 (25.3) 245 469 (47.7)
PAT 317 292 8.6 462 (31.3) 1,580 1,747 (9.6)Effective Tax Rate (%) 35.4 (228.3) 26373bp 33.5 186bp 13.4 21.1 (772)bp
Source: Company, Angel Research
Exhibit 2:1QFY2014 Actual vs Angel estimatesParticulars (` cr) Actual Estimates Var. (%)NII 1,097 1,129 (2.9)Non-interest income 530 278 90.3
Operating income 1,626 1,408 15.5Operating expenses 767 635 20.7
Pre-prov. profit 859 772 11.3Provisions & cont. 368 271 35.9
PBT 491 501 (2.1)
Prov. for taxes 174 130 33.3PAT 317 371 (14.5)Source: Company, Angel Research
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Indian Bank | 1QFY2014 Result Update
August 6, 2013 3
Exhibit 3:1QFY2014 Performance (Standalone)1QFY14 4QFY13 % chg (qoq) 1QFY13 % chg (yoy)
Balance sheetAdvances (`cr) 109,213 105,643 3.4 93,876 16.3Deposits (`cr) 149,582 141,980 5.4 127,012 17.8
Credit-to-Deposit Ratio (%) 73.0 74.4 (139)bp 73.9 (90)bp
CASA deposits (`cr) 40,183 39,138 2.7 37,228 7.9
CASA ratio (%) 26.9 27.6 (70)bp 29.3 (245)bp
CAR (%) 13.1 13.1 (2)bp 13.0 8bp
Tier 1 CAR (%) 10.8 10.9 (5)bp 10.7 11bp
Profitability Ratios (%)Cost of deposits 7.1 7.1 4bp 7.0 9bp
Yield on advances 10.5 10.6 (16)bp 11.3 (84)bp
Reported NIM 2.7 2.9 (14)bp 3.3 (56)bp
Cost-to-income ratio 47.2 64.0 (1682)bp 38.9 824bp
Asset qualityGross NPAs (`cr) 3,723 3,565 4.4 1,554 139.6
Gross NPAs (%) 3.4 3.3 8bp 1.7 175bp
Net NPAs (` cr) 2,486 2,384 4.3 963 158.1
Net NPAs (%) 2.3 2.3 5bp 1.0 127bp
Provision Coverage Ratio (%) 61.3 60.1 111bp 75.1 (1383)bp
Slippage ratio (%) 2.8 5.8 (294)bp 1.2 162bp
Source: Company, Angel Research
Business growth remains healthy; NIM lower qoq
During 1QFY2014, the banks advances grew at a healthy pace of 16.3% yoy (up
3.4% qoq). Within advances, the agriculture and retail book grew at a relatively
higher 21.1% yoy.
On the liabilities side, growth in deposits also came in healthy at 17.8% yoy (5.4%
qoq), while the low-cost CASA franchise grew at a modest pace of 7.9% yoy (2.7%
qoq).Consequently, the CASA ratio for the bank dipped by 245bp yoy (70bp qoq)
to 26.9%.
The Reported NIM for the bank declined by 14bp qoq to 2.7%, on back of a 16bp
decline in yield on advances to 10.5%. Yields on advances declined primarily on
account of interest reversal on slippages.
Moderate growth in Non-interest income (excl. treasury)
During 1QFY2014, the banks non-interest income (excl. treasury) grew at a
moderate pace of 7.4% yoy to `215cr. Growth in fee income was moderate at
6.8% yoy to `147cr, while recoveries from written off accounts came in at `21cr as
against `32cr in 1QFY2013. Treasury gains came in at `314cr as against `22cr
reported in 1QFY2013, thereby aiding strong growth of 137.8% yoy in overall
other income for the bank to `530cr.
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Indian Bank | 1QFY2014 Result Update
August 6, 2013 4
Exhibit 4:Healthy business growth continues
Source: Company, Angel Research
Exhibit 5:CASA ratio declines sequentially by 70bp
Source: Company, Angel Research
Exhibit 6:Yields on advances declines by 16bp qoq...
Source: Company, Angel Research
Exhibit 7:...hence, Reported NIM declines by 14bp qoq
Source: Company, Angel Research
Asset quality pressure continues
During 1QFY2014, the bank witnessed moderate asset quality pressures, as the
gross NPA and net NPA increased by 4.4% and 4.3% sequentially. During
1QFY2014, slippages for the bank, though lower sequentially, however remained
elevated at `643cr (annualized slippage ratio of 2.8%) as against ~`1,306cr in
4QFY2013 (annualized slippage ratio of 5.8%). Recoveries/upgrades came lower
during the quarter at `217cr, as compared to `751cr in 4QFY2013. Gross NPAincreased by 8bp qoq to 3.4%, while net NPA increased by 5bp qoq to 2.3%. The
banks PCR increased by 111bp qoq to 61.3%.
Additionally, the bank restructured advances worth `601cr during the quarter,
thereby taking its restructured book (stated borrower wise, after upgrading
satisfactorily performing accounts) to `10,020cr.
13.8
10.8
13.3
17.0
16.3
15.0
12.9
13.5
17.5
17.8
73.9
72.4
73.3
74.4
73.0
70.0
72.0
74.0
76.0
-
5.0
10.0
15.0
20.0
1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
Adv. yoy chg (%) Dep. yoy chg (%) CDR (%, RHS)
29.
3
29.
0
28.
3
27.
6
26.
9
8.89.8
6.5 6.27.9
-
10.0
20.0
25.0
26.0
27.0
28.0
29.0
30.0
1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
CASA ratio CASA yoy growth (%, RHS)
11.29
11.13 11.13
10.61
10.45
10.00
10.50
11.00
11.50
1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
(%)
3.30
3.12 3.07
2.882.74
2.00
2.40
2.80
3.20
3.60
1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
(%)
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Indian Bank | 1QFY2014 Result Update
August 6, 2013 5
Exhibit 8:NPA ratio trends
Source: Company, Angel Research
Exhibit 9:Slippages remain elevated in 1QFY2014
Source: Company, Angel Research
Exhibit 10:Cost-to-income ratio higher yoy
Source: Company, Angel Research
Exhibit 11:Cost ratios trends
Source: Company, Angel Research
Investment arguments
Rural and semi-urban presence relatively high, moderate CASA
Indian Bank opened 10 branches in the current quarter, taking its total branch
network to ~2,100 as of 1QFY2014. The bank has a higher proportion of rural
and semi-urban presence (~55% of its total branches).Aided by this, the bank has
been able to maintain a moderate CASA in the vicinity of 27-28%, with the CASA
registering a healthy CAGR of 15.2% during FY200913.
Investment concerns
Relatively high yields are now reducing esp. on risk adjusted
basis
A larger portion of SME and mid-corporate loans has contributed to the banks
relatively high yield on advances. This has supported its NIM, which in FY2011 was
higher than even larger banks having ~40% CASA deposits vs. Indian Banks
~30%.Past experience shows that banks that delivered high NIMs on the back of
high yields later paid the price for the higher risk taken in the form of higher NPAs
in subsequent years. The bank has felt the heat on the asset-quality front in the
past one year, with significant slippages and continuing increase in its restructuring
book. Consequently, its margins on a risk-adjusted basis, which were 3.0% in
1.
7
2.
1
3.
2
3.
3
3.
4
1.
0
1.
3
2.
2
2.
3
2.
3
75.171.0
61.260.1
61.3
-
20.0
40.0
60.0
80.0
0.2
1.2
2.2
3.2
1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
Gross NPAs (%) Net NPAs (%) NPA coverage (%, RHS)
1.0 3
.36.3
5.8
2.8
-
1.0
2.0
3.0
4.0
5.06.0
7.0
1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
Slippages (%)
369
379
445
781
576
166
197
191
222
191
38.9 38.945.9
64.0
47.2
-
10.0
20.0
30.0
40.0
50.0
60.0
-
150
300
450
600
750
900
1,050
1,200
1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
Staff exps (` cr) Other opex (` cr) CIR (%, RHS)
38.9
38.9
45.9
64.0
47.2
1.5 1.51.6
2.5
1.9
-
0.5
1.0
1.5
2.0
2.5
3.0
-
20.0
40.0
60.0
80.0
1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
Cost-to-income ratio (%) Opex to average assets (%, RHS)
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Indian Bank | 1QFY2014 Result Update
August 6, 2013 6
FY2011, have now reduced to 2.2% in FY2013. Going ahead, we remain cautious
on the banks asset quality and NIM outlook as in case of other banks with
unsustainably high yields.
Outlook and valuation
Recent liquidity tightening measures implemented by the Reserve Bank of India
(RBI) amidst an overall weak economic environment clearly suggests that the asset
quality pressures for the banking sector are unlikely to abate as quickly as was
expected earlier. Overall, we have a cautious view on the sector, with a positive
bias towards more retail oriented banks on both assets as well as on liabilities.
Hence, we recommend a Neutral rating on the stock.
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Indian Bank | 1QFY2014 Result Update
August 6, 2013 7
Exhibit 12:Key assumptionsParticulars (%) Earlier estimates Revised estimatesFY2014E FY2015E FY2014E FY2015ECredit growth 15.0 15.0 13.0 15.0Deposit growth 13.0 13.0 12.0 13.0
CASA ratio 26.9 27.0 27.2 27.2
NIM 2.9 3.0 2.7 2.7
Other income growth (3.9) 4.6 9.2 (5.8)
Growth in staff expenses 5.0 3.0 8.0 5.0
Growth in other expenses 5.0 3.0 6.0 2.5
Slippages 2.5 2.3 2.5 2.3
Coverage ratio 62.5 65.0 60.0 62.5
Source: Company, Angel Research
Exhibit 13:Change in estimatesParticulars(` cr)
FY2014E FY2015EEarlierestimates Revisedestimates % chg Earlierestimates Revisedestimates % chg
NII 4,840 4,533 (6.3) 5,551 5,071 (8.6)
Non-interest income 1,237 1,407 13.7 1,295 1,325 2.3
Operating income 6,077 5,940 (2.3) 6,845 6,396 (6.6)Operating expenses 2,888 2,955 2.3 2,975 3,083 3.6
Pre-prov. profit 3,189 2,984 (6.4) 3,870 3,313 (14.4)Provisions & cont. 1,084 1,318 21.6 1,128 1,102 (2.3)
PBT 2,105 1,666(20.8)
2,743 2,211(19.4)
Prov. for taxes 547 550 0.5 932 751 (19.4)
PAT 1,558 1,117 (28.3) 1,810 1,459 (19.4)Source: Company, Angel Research
Exhibit 14:P/ABV band
Source: Company, Angel Research
0
50
100
150
200
250
300
350
400
450
500
Mar-07
Aug-0
7
Jan-0
8
Jun-0
8
Nov-0
8
Apr-09
Sep-0
9
Feb-1
0
Jul-10
Dec-1
0
May-1
1
Oct-11
Mar-12
Aug-1
2
Jan-1
3
Jun-1
3
Nov-1
3
Price(`) 0.5x 0.8x 1.1x 1.4x 1.7x
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Indian Bank | 1QFY2014 Result Update
August 6, 2013 8
Exhibit 15:Recommendation summaryCompany Reco. CMP(`) Tgt. price(`) Upside(%) FY2015EP/ABV (x) FY2015ETgt. P/ABV (x) FY2015EP/E (x) FY2013-15EEPS CAGR (%) FY2015ERoA (%) FY2015ERoE (%)AxisBk Buy 1,121 1,302 16 1.2 1.4 7.1 19.1 1.6 18.1
FedBk Neutral 356 - - 0.8 - 6.9 2.9 1.0 12.3
HDFCBk Buy 632 745 18 3.0 3.5 14.0 26.3 1.9 22.8
ICICIBk* Buy 903 1,068 18 1.3 1.5 9.3 15.8 1.6 15.4
SIB Neutral 21 - - 0.8 - 5.0 5.7 0.9 16.2
YesBk Accumulate 299 321 7 1.3 1.4 6.0 16.9 1.3 22.8
AllBk Reduce 70 66 (6) 0.3 0.3 2.3 12.6 0.6 12.4
AndhBk Reduce 59 51 (13) 0.4 0.4 3.5 (15.1) 0.5 10.0
BOB Neutral 504 - - 0.6 - 4.1 8.3 0.8 14.2
BOI Neutral 176 - - 0.4 - 2.8 16.2 0.7 13.9
BOM Neutral 42 - - 0.5 - 3.3 10.0 0.6 15.3
CanBk Neutral 249 - - 0.4 - 2.9 15.4 0.8 14.2CentBk Reduce 55 52 (5) 0.6 0.5 3.5 40.1 0.5 12.8
CorpBk Neutral 284 - - 0.3 - 2.9 2.3 0.7 13.5
DenaBk Neutral 48 - - 0.3 - 2.2 (3.3) 0.6 13.2
IDBI# Neutral 61 - - 0.3 - 2.7 25.1 0.8 13.3
IndBk Neutral 71 - - 0.3 - 2.1 (4.2) 0.8 12.4IOB Neutral 40 - - 0.3 - 2.7 57.5 0.5 10.5
J&KBk Neutral 1,122 - - 0.8 - 5.5 (3.5) 1.3 16.3
OBC Neutral 145 - - 0.3 - 2.3 17.0 0.8 12.9
PNB Neutral 538 - - 0.5 - 3.3 10.8 1.0 15.7
SBI* Accumulate 1,682 1,930 15 0.9 1.1 5.9 17.5 1.0 17.0
SynBk Neutral 79 - - 0.4 - 3.3 (16.0) 0.6 12.8
UcoBk Neutral 58 - - 0.5 - 3.7 66.4 0.6 13.5
UnionBk Neutral 120 - - 0.4 - 3.0 6.2 0.6 13.4
UtdBk Neutral 34 - - 0.3 - 1.7 54.6 0.6 14.7
VijBk Neutral 38 - - 0.4 - 4.2 (0.4) 0.4 9.8
Source: Company, Angel Research; Note: *Target multiples=SOTP Target Price/ABV (including subsidiaries),# Without adjusting for SASF
Company Background
Indian Bank is a Chennai-based mid-sized public sector bank, with 2,099branches (1417 ultra small branches) and a balance sheet size of ~`1.7lakh cr.
Around two-thirds of the bank's branches are spread across the southern states
with majority being in the parent state of Tamil Nadu.
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Income statement (Standalone)Y/E March (` cr) FY10 FY11 FY12 FY13 FY14E FY15ENII 3,161 4,036 4,418 4,524 4,533 5,071- YoY Growth (%) 21.2 27.7 9.5 2.4 0.2 11.9Other Income 1,316 1,182 1,232 1,288 1,407 1,325- YoY Growth (%) 27.1 (10.2) 4.3 4.5 9.2 (5.8)
Operating Income 4,478 5,218 5,650 5,812 5,940 6,396- YoY Growth (%) 22.9 16.5 8.3 2.9 2.2 7.7
Operating Expenses 1,730 1,926 2,187 2,751 2,955 3,083- YoY Growth (%) 22.3 11.3 13.5 25.8 7.4 4.3
Pre-Provision Profit 2,747 3,292 3,463 3,061 2,984 3,313- YoY Growth (%) 23.3 19.8 5.2 (11.6) (2.5) 11.0
Prov. & Cont. 396 657 1,195 1,235 1,318 1,102- YoY Growth (%) (10.6) 66.1 81.9 3.3 6.7 (16.4)
Profit Before Tax 2,352 2,634 2,268 1,826 1,666 2,211- YoY Growth (%) 31.7 12.0 (13.9) (19.5) (8.7) 32.7
Prov. for Taxation 797 920 521 245 550 751- as a % of PBT 33.9 34.9 23.0 13.4 33.0 34.0
PAT 1,555 1,714 1,747 1,581 1,117 1,459- YoY Growth (%) 24.9 10.2 1.9 (9.5) (29.4) 30.7
Preference Dividend 46 46 46 42 46 46PAT avl. To equity sh. 1,509 1,668 1,701 1,540 1,070 1,413- YoY Growth (%) 25.5 10.5 2.0 (9.5) (30.5) 32.0
Balance sheet (Standalone)Y/E March (` cr) FY10 FY11 FY12 FY13 FY14E FY15EShare Capital 830 830 830 830 830 830
Equity 430 430 430 430 430 430
Preference 400 400 400 400 400 400
Reserves & Surplus 7,442 8,691 9,972 11,143 11,961 13,045
Deposits 88,228 105,804 120,804 141,980 159,018 179,690
- Growth (%) 21.6 19.9 14.2 17.5 12.0 13.0
Borrowings 657 800 3,783 1,773 1,976 2,225
Tier 2 Capital 300 1,300 1,090 1,090 1,063 1,036
Other Liab. & Prov. 3,932 4,293 4,941 6,007 6,680 7,599
Total Liabilities 101,389 121,718 141,419 162,823 181,527 204,426Cash Balances 7,061 6,878 6,319 7,064 7,156 8,086
Bank Balances 1,052 1,684 2,494 2,574 3,177 3,577
Investments 28,268 34,784 37,976 41,805 45,480 48,403
Advances 62,146 75,250 90,324 105,643 119,376 137,283
- Growth (%) 20.8 21.1 20.0 17.0 13.0 15.0
Fixed Assets 1,580 1,606 1,631 1,691 1,828 1,997
Other Assets 1,282 1,516 2,676 4,046 4,511 5,080
Total Assets 101,389 121,718 141,419 162,823 181,527 204,426- Growth (%) 20.5 20.1 16.2 15.1 11.5 12.6
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Ratio AnalysisY/E March FY10 FY11 FY12 FY13 FY14E FY15EProfitability ratios (%)NIMs 3.5 3.7 3.5 3.1 2.7 2.7Cost to Income Ratio 38.6 36.9 38.7 47.3 49.8 48.2
RoA 1.7 1.5 1.3 1.0 0.6 0.8
RoE 25.6 23.5 20.4 16.1 10.3 12.4
B/S ratios (%)CASA Ratio 32.2 30.9 30.6 27.6 27.2 27.2
Credit/Deposit Ratio 70.4 71.1 74.8 74.4 75.1 76.4
CAR 12.7 13.6 13.5 13.1 12.5 12.0
- Tier I 11.1 11.0 11.1 10.9 10.5 10.2
Asset Quality (%)Gross NPAs 0.8 1.0 2.0 3.3 4.1 4.5
Net NPAs 0.2 0.5 1.3 2.3 2.6 2.4
Slippages 1.1 1.5 2.5 3.2 2.5 2.3
Loan loss prov. /avg.assets
0.4 0.6 0.6 0.6 0.6 0.5
Provision Coverage 93.6 84.3 70.1 60.1 60.0 62.5
Per Share Data (`)EPS 35.1 38.8 39.6 35.8 24.9 32.9
ABVPS 154.7 184.4 210.4 222.2 235.1 261.4
DPS 6.5 7.5 7.5 6.6 5.0 6.5
Valuation RatiosPER (x) 2.2 2.0 1.9 2.1 3.1 2.3
P/ABVPS (x) 0.5 0.4 0.4 0.3 0.3 0.3
Dividend Yield 8.5 9.8 9.8 8.7 6.6 8.5
DuPont Analysis (%)NII 3.4 3.6 3.4 3.0 2.6 2.6
(-) Prov. Exp. 0.4 0.6 0.9 0.8 0.8 0.6
Adj. NII 3.0 3.0 2.4 2.2 1.9 2.1
Treasury 0.4 0.1 0.1 0.1 0.2 0.0
Int. Sens. Inc. 3.4 3.2 2.5 2.3 2.0 2.1
Other Inc. 1.0 0.9 0.9 0.7 0.7 0.6
Op. Inc. 4.4 4.1 3.4 3.0 2.7 2.7
Opex 1.9 1.7 1.7 1.8 1.7 1.6
PBT 2.5 2.4 1.7 1.2 1.0 1.1
Taxes 0.9 0.8 0.4 0.2 0.3 0.4
RoA 1.7 1.5 1.3 1.0 0.6 0.8Leverage (x) 15.3 15.3 15.3 15.5 15.9 16.4
RoE 25.6 23.5 20.4 16.1 10.3 12.4
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7/27/2019 Indian Bank, 1Q FY 2014
11/11
Indian Bank | 1QFY2014 Result Update
August 6, 2013 11
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Indian Bank
1. Analyst ownership of the stock No
2. Angel and its Group companies ownership of the stock No
3. Angel and its Group companies' Directors ownership of the stock No
4. Broking relationship with company covered No
Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)Reduce (-5% to -15%) Sell (< -15%)
Note: We have not considered any Exposure below`
1 lakh for Angel, its Group companies and Directors