United Bank of India Result Updated

7/31/2019 United Bank of India Result Updated

1/11

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

Particulars (` cr) 4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy)NII 619 668 (7.3) 575 7.7Pre-prov. profit 478 483 (1.1) 425 12.4

PAT 149 226 (33.9) 143 4.2Source: Company, Angel Research;

For 4QFY2012, United Bank of India (UBI) registered a moderate set of numbers.

The companys net profit grew by 4.2% yoy (down 33.9% qoq) to `149cr, which was

lower than our estimates due to higher margin contraction and provisioning

expenses than estimated by us. We recommend a Buy rating on the stock.Slippages up on account of a chunky NPA account: For FY2012, the banksadvances and deposits grew mostly in-line with the industry at 17.8% and 14.5%,

respectively. CA deposit accretion picked up during 4QFY2012, with 33.6% qoq

growth (up 14.2% yoy), while savings accounts growth was reasonably healthy at

3.7% qoq (up 14.5% yoy). Reported CASA ratio on a qoq basis increased by 99bp

to 40.8%. The banks cost of deposits increased by 23bp sequentially due to higher

cost of borrowings on its bulk deposits. Also, yield on advances was lower during

4QFY2012 (down 29bp qoq) on account of interest reversals (`17cr on account of

Kingfisher) and FITL on restructured assets, which led to reported NIM of the bank

dipping by 38bp qoq to 3.0%. Fee income of the bank for 4QFY2012 grew by

52.4% qoq on account of stronger recoveries (doubled on a sequential basis to

`33cr) and fee income arising from processing charges, locker fees and incidentalcharges (booked for proceeding quarters also in some cases). The banks slippages

(`590cr) came in higher by 63.1% qoq on account of classifying Kingfisher as an NPA

in 4QFY2012 (exposure of `314cr). The banks restructured book increased by 37.7%

qoq, taking the outstanding restructured book to `3,106cr. The sharp jump in

restructuring book was due to restructuring of Air India (exposure of `475cr; NPV loss

from 1QFY2013) and Rajasthan SEB (~`500cr).

Outlook and valuation:We believe the bank has several levers for structurallyimproving its RoA, but execution risks in terms of improving yields while

maintaining the asset quality continue to remain an investment concern on the

stock. That said, the bank is trading at inexpensive valuations of 0.4x FY2013E

ABV (one of the lowest in the industry). The banks peers are trading at 0.6x-0.7xFY2014 ABV, in spite of having similar and in some cases much lower CASA

ratios. We value the stock at 0.6x FY2014E ABV and, hence, recommend a Buyrating on the stock with a target price of `78.Key financials

Y/E March (` cr) FY2011 FY2012 FY2013E FY2014ENII 2,169 2,479 2,899 3,390% chg 55.9 14.3 16.9 17.0

Net profit available to eq. shareholders 457 544 677 816% chg 49.7 19.0 24.5 20.5

NIM (%) 2.7 2.7 2.7 2.8

EPS (`) 13.3 15.1 18.8 22.6P/E (x) 4.4 3.9 3.1 2.6

P/ABV (x) 0.6 0.5 0.5 0.4

RoA (%) 0.6 0.7 0.7 0.7

RoE (%) 14.1 14.2 15.5 16.5

Source: Company, Angel Research

BUYCMP `58

Target Price `78

Investment Period 12 months

Stock Info

Sector Banking

Market Cap (` cr) 2,110

Beta 1.1

52 Week High / Low 102/46

Avg. Daily Volume 75,189

Face Value (`

) 10BSE Sensex 16,293

Nifty 4,929

Reuters Code UBOI.BO

Bloomberg Code UNTDB@IN

Shareholding Pattern (%)

Promoters 81.6

MF / Banks / Indian Fls 6.4

FII / NRIs / OCBs 1.2

Indian Public / Others 10.9

Abs. (%) 3m 1yr 3yr

Sensex (8.2) (12.3) 39.5

UBI* (25.3) (41.9) NA

*Note: Listed in March, 2010

Vaibhav Agrawal022 3935 7800 Ext: 6808

[email protected]

Varun Varma022 3935 7800 Ext: 6847

[email protected]

Sourabh Taparia022 3935 7800 Ext: 6872

[email protected]

United Bank of IndiaPerformance Highlights

4QFY2012 Result Update | Banking

May 11, 2012


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United Bank of India | 4QFY2012 Result Update

May 11, 2012 2

Exhibit 1:4QFY2012 performanceParticulars (` cr) 4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy)Interest earned 2,132 2,051 4.0 1,767 20.7- on Advances / Bills 1,606 1,567 2.5 1,320 21.7- on investments 491 482 1.9 426 15.1

- on balance with RBI & others 7 2 179.0 9 (20.1)

- on others 29 - NA 13 129.0

Interest Expended 1,513 1,383 9.4 1,193 26.9Net Interest Income 619 668 (7.3) 575 7.7Other income 238 163 45.7 219 8.5Other income excl. treasury 180 118 52.4 129 39.1

- Fee Income 48 46 4.6 44 9.0

- Treasury Income 58 45 28.3 90 (35.4)

- Recoveries from writ.-off acc 33 16 100.2 15 120.9

- Others 99 55 78.0 70 40.7

Operating income 857 831 3.1 794 7.9Operating expenses 379 348 9.1 369 2.8- Employee expenses 234 226 3.5 218 7.3

- Other Opex 146 122 19.5 151 (3.8)

Pre-provision Profit 478 483 (1.1) 425 12.4Provisions & Contingencies 307 199 53.9 284 8.1- Provisions for NPAs 342 93 266.4 111 206.5

PBT 171 284 (39.7) 141 21.2Provision for Tax 22 58 (62.2) (2) (1,194.5)PAT 149 226 (33.9) 143 4.2Effective Tax Rate (%) 12.8 20.4 (762)bp (1.4) 1420bp


Exhibit 2:4QFY2012 Actual vs. Angel estimatesParticulars (` cr) Actual Estimates % chgNet interest income 619 697 (11.2)

Non-interest income 238 189 25.9

Operating income 857 886 (3.3)Operating expenses 379 377 0.7

Pre-prov. profit 478 510 (6.3)Provisions & cont. 307 199 54.2

PBT 171 311 (44.9)Prov. for taxes 22 105 (79.1)

PAT 149 206 (27.6)Source: Company, Angel Research


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May 11, 2012 3

Exhibit 3:4QFY2012 performanceParticulars 4QFY12 3QFY12 %chg (qoq) 4QFY11 %chg (yoy)Balance sheetAdvances (`cr) 63,043 59,100 6.7 53,502 17.8Deposits (`cr) 89,116 82,815 7.6 77,845 14.5

Credit-to-Deposit Ratio (%) 70.7 71.4 (62)bp 68.7 201bp

Current deposits (`cr) 9,741 7,293 33.6 8,529 14.2

Saving deposits (`cr) 26,589 25,646 3.7 23,217 14.5

CASA deposits (`cr) 36,330 32,939 10.3 31,746 14.4

CASA ratio (%) 40.8 39.8 99bp 40.8 (1)bp

CAR (%) 12.7 12.6 6bp 13.1 (36)bp

Profitability Ratios (%)Cost of deposits 6.9 6.7 23bp 6.0 97bp

Yield on advances 11.7 12.0 (29)bp 10.7 98bp

Yield on investments 7.8 7.8 2bp 7.7 9bp

Reported NIM 3.0 3.4 (38)bp 3.1 (13)bp

Cost-to-income ratio 44.2 41.8 241bp 46.5 (223)bp

Asset qualityGross NPAs (` cr) 2,176 1,939 12.2 1,356 60.5

Gross NPAs (%) 3.4 3.3 13bp 2.5 90bp

Net NPAs (`cr) 1,076 1,178 (8.7) 757 42.0

Net NPAs (%) 1.7 2.0 (29)bp 1.4 30bp

Provision Coverage Ratio (%) 69.2 66.5 265bp 72.1 (298)bp

Slippage ratio (%) 4.4 2.7 171bp 3.2 126bp

NPA to avg. assets (%) 1.4 0.4 98bp 0.5 87bp


Advances growth for FY2012 in-line with industry

For FY2012, the banks advances and deposits grew mostly in-line with the

industry at 17.8% and 14.5%, respectively. On a qoq basis, advances and deposits

grew by 6.7% and 7.6%, respectively. Current account deposit accretion picked up

during 4QFY2012, with 33.6% qoq growth (up 14.2% yoy), while savings accounts

growth was reasonably healthy at 3.7% qoq (up 14.5% yoy). Reported CASA ratio

on a qoq basis increased by 99bp to 40.8%. The bank further reduced its bulk

deposits during the quarter, which now as a proportion of total deposits stands at

18.0% (23.5% in 4QFY2011).

We have factored in loan growth of 17.0% yoy for FY2013 and FY2014 each.


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May 11, 2012 4

Exhibit 4:Advances growth strong during 4QFY2012


Exhibit 5:CASA ratio above 40% levels


NIM declines by 38bp qoq

The banks cost of deposits increased by 23bp sequentially due to higher cost of

borrowings on its bulk deposits. Also, yield on advances was lower during

4QFY2012 (down 29bp qoq) on account of interest reversals (`17cr on account of

Kingfisher) and FITL on restructured assets, which led to reported NIM of the bank

dipping by 38bp qoq to 3.0%.

Exhibit 6:YoA down on account of interest reversal


Exhibit 7:NIM lower by 38bp qoq


Non-interest income strong during 4QFY2012

Fee income of the bank for 4QFY2012 grew by 52.4% qoq on account of stronger

recoveries (doubled on a sequential basis to `33cr) and fee income arising from

processing charges, locker fees and incidental charges (booked for proceeding

quarters also in some cases). The banks treasury income also grew by healthy

28.3% qoq (down by 35.4% yoy).

Slippages up on account of a chunky NPA

The banks slippages (`590cr) came in higher by 63.1% qoq on account of

classifying Kingfisher as an NPA in 4QFY2012 (exposure of `314cr). Annualizedslippage ratio for the quarter stood at 4.4%, up from 2.7% levels in 3QFY2012.

Gross NPA ratio and net NPA ratio deteriorated to 3.4% and 1.7% in 4QFY2012

5.6

(1.7

)

3.2

8.8

6.7

6.5

(1.0

)

1.5

5.8

7.6

68.768.2

69.4

71.470.7

66.0

68.0

70.0

72.0

(4.0)

(2.0)

-

2.0

4.0

6.08.0

10.0

4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

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

40.8

40.2

39.9

39.8

40.8

22.2

18.3

13.811.9

14.4

-

5.0

10.0

15.0

20.0

25.0

39.2

39.6

40.0

40.4

40.8

41.2


CASA ratio CASA yoy growth (%, RHS)

10.71

11.16

11.7011.98

11.69

9.60

10.20

10.80

11.40

12.00

12.60


3.133.02

3.163.38

3.00

2.00

2.50

3.00

3.50


(%)


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May 11, 2012 5

from 3.3% and 2.0% in 3QFY2012, respectively. As of 4QFY2012, provision-to-

coverage ratio including technical write-offs stood at 69.2% (66.5% in 3QFY2012).

The banks restructured book increased by 37.7% qoq, taking its outstanding

restructured book to `3,106cr. The sharp jump in restructuring book was due torestructuring of Air India (exposure of `475cr; NPV loss from 1QFY2013) and

Rajasthan SEB (`500cr). The bank has exposure to only West Bengal and

Maharashtra SEB other than the Rajasthan SEB and, hence, does not expect any

more restructuring on account of these loans.

Exhibit 8:NPA ratios on the higher side


Exhibit 9:Slippages up on account of chunky NPA


Exhibit 10:Cost-to-income ratio trends


Exhibit 11:Fee income growth trend


2.5

2.9

3.5

3.3

3.4

1.4

1.7

2.2

2.0

1.7

72.1

70.2

65.0 66.5

69.2

40.0

50.0

60.0

70.0

80.0

-

0.5

1.0

1.5

2.0

2.53.0

3.5

4.0


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

3.2

2.9

4.6

2.7

4.4

0.50.6

0.50.4

1.4

-

0.2

0.4

0.6

0.8

1.01.2

1.4

1.6

-

1.0

2.0

3.0

4.0

5.0


Slippages (%) Credit cost (%, RHS)

46.

5

43.

5

42.

7

41.

8

44.

2

1.7

1.4

1.5 1.51.5

1.3

1.4

1.5

1.6

1.7

1.8

38.0

40.0

42.0

44.0

46.0

48.0


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

0.6

0.5

0.5

0.5

0.7

5.8

16.2 14.3

(2.1)

39.1

(10.0)

-

10.0

20.0

30.0

40.0

50.0

-

0.2

0.4

0.6

0.8


Fee income to avg assets (%) Fee income yoy chg (%, RHS)


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May 11, 2012 6

Investment arguments

Structurally strong CASA than peers

UBI has historically had a strong CASA ratio. The banks average CASA ratioduring FY200512 has been 41.4%. Even during 4QFY2012, the bank had

maintained a strong CASA ratio of ~40%, which is the highest among its peers,

which consists of banks like UCO Bank, Allahabad Bank, Dena Bank and

Syndicate Bank. Of the total CASA deposits, saving deposits, which are less

volatile, accounted for 29.8% of the total deposits, while current deposits

accounted for 10.9%. This high proportion of CASA deposits is mainly because of

a large retail customer base spread across the eastern and northeastern regions.

Of the total branch network of ~1,700 branches, 81% is concentrated in the

eastern and northeastern regions. Moreover, 59% of UBIs branches are located in

rural and semi-urban areas, giving the bank an access to low-cost deposits.

leading to higher NIMIn 4QFY2010, UBI reported NIM of 2.48%. However, measures taken by

management in the form of shedding high-cost bulk deposits (18.0% in

4QFY2012 as against nearly 30% two years ago), improvement in CASA ratio by

over 250bp from 38.1% in 4QFY2010 to 40.8% in 4QFY2012, shedding of

low-yielding loans (~`1,700cr during FY2011) and a substantial increase in CD

ratio (664bp increase in FY2011 and 201bp increase in FY2012) have resulted in

a sharp rise in NIM to 3.0% in 4QFY2012 (lower sequentially by 38bp due to

one-off interest reversals). Further, we believe with a strong CASA ratio, the bank is

better placed than its peers to sustain its NIM, going forward.

Investment concerns

Lower other income compared to peers

During FY2012, other income excluding treasury grew by reasonably healthy

17.5% yoy, in-line with the banks advances growth. In spite of decent growth

witnessed other income, excluding treasury as a percentage of average assets,

stands at low 0.5%, which is on the lower side compared to peers. Even after

factoring in a 16.2% CAGR over FY201214E in other income excluding treasury

and taking into account revision in fee charges during 1HFY2012, the proportion

of other income excluding treasury to average assets is expected to only increase to

0.6% of overall assets.

Outlook and valuation

We believe the bank has several levers for structurally improving its RoA, but

execution risks in terms of improving yields while maintaining the asset quality

continue to remain an investment concern on the stock. That said, the bank is

trading at inexpensive valuations of 0.4x FY2013E ABV (one of the lowest in the

industry). The banks peers are trading at 0.6x-0.7x FY2014 ABV, in spite ofhaving similar and in some cases much lower CASA ratios. We value the stock at

0.6x FY2014E ABV and, hence, recommend a Buy rating on the stock with a targetprice of `78.


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May 11, 2012 7

Exhibit 12:Key assumptionsParticulars (%) Earlier estimates Revised estimatesFY2013 FY2014 FY2013 FY2014Credit growth 16.5 14.0 17.0 17.0Deposit growth 14.0 14.0 14.0 14.0

CASA ratio 39.6 39.1 39.7 39.3

NIMs 2.9 2.9 2.7 2.8

Other income growth (8.8) 10.6 (10.9) 13.0

Growth in staff expenses 15.0 15.0 15.0 15.0

Growth in other expenses 15.0 15.0 15.0 15.0

Slippages 3.0 3.0 2.9 2.7

Source: Angel Research

Exhibit 13:Change in estimatesParticulars (` cr) FY2013 FY2014Earlierestimates Revisedestimates Var. (%) Earlierestimates Revisedestimates Var. (%)NII 3,042 2,899 (4.7) 3,438 3,390 (1.4)

Non-interest income 624 653 4.6 690 737 6.9

Operating income 3,666 3,551 (3.1) 4,128 4,128 (0.0)Operating expenses 1,588 1,591 0.2 1,826 1,829 0.2

Pre-prov. profit 2,078 1,960 (5.7) 2,301 2,298 (0.1)Provisions & cont. 912 834 (8.5) 967 982 1.5

PBT 1,167 1,127 (3.4) 1,334 1,316 (1.3)

Prov. for taxes 379 366 (3.4) 433 427 (1.3)

PAT 788 761 (3.4) 901 889 (1.3)Source: Angel Research

Exhibit 14:P/ABV band


40

60

80

100

120

140

160

180

Mar-10

Jun-1

0

Sep-1

0

Dec-1

0

Mar-11

Jun-1

1

Sep-1

1

Dec-1

1

Mar-12

Jun-1

2

Sep-1

2

Dec-1

2

Mar-13

Price (`) 0.5x 0.65x 0.8x 0.95x 1.1x


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May 11, 2012 8

Exhibit 15:Recommendation summaryCompany Reco. CMP(`) Tgt. price(`) Upside(%) FY2014EP/ABV (x) FY2014ETgt P/ABV (x) FY2014EP/E (x) FY2012-14EEPS CAGR (%) FY2014ERoA (%) FY2014ERoE (%)AxisBk Buy 1,001 1,587 58.5 1.4 2.2 7.2 16.4 1.5 20.3

FedBk Neutral 415 - 0.6 - - 7.3 13.0 1.3 14.5

HDFCBk Accumulate 511 567 10.9 2.9 3.3 14.4 27.0 1.7 22.1

ICICIBk* Buy 813 1,201 47.8 1.3 1.9 10.0 20.4 1.5 16.0

SIB Neutral 22 - 2.2 - - 5.8 4.5 0.8 17.5

YesBk Buy 329 470 42.6 1.7 2.4 7.9 22.5 1.4 23.3

AllBk Accumulate 148 166 12.3 0.6 0.7 3.5 6.2 0.9 17.6

AndhBk Neutral 105 - - 0.6 - 4.1 3.3 0.9 16.0

BOB Buy 649 925 42.6 0.7 1.1 4.3 11.1 1.1 18.2

BOI Buy 353 411 16.3 0.7 1.0 4.5 23.3 0.8 16.9

BOM Accumulate 48 55 14.5 0.6 0.7 3.7 45.3 0.7 17.2

CanBk Buy 419 522 24.6 0.7 0.9 4.5 11.8 0.9 16.4CentBk Neutral 78 - - 0.7 - 3.9 45.7 0.5 13.8

CorpBk Buy 405 504 24.4 0.5 0.7 3.6 5.3 0.8 16.5

DenaBk Buy 85 114 34.3 0.5 0.7 3.3 6.2 0.9 16.9

IDBI# Buy 92 117 27.0 0.6 0.7 3.8 22.7 0.9 14.8

IndBk Buy 180 233 29.7 0.6 0.8 3.7 5.4 1.2 18.2

IOB Buy 82 101 23.9 0.5 0.6 3.8 28.3 0.6 13.9

J&KBk Accumulate 846 932 10.2 0.7 0.8 4.3 8.8 1.4 18.6

OBC Buy 219 274 25.1 0.5 0.6 3.4 27.7 0.8 14.3

PNB Buy 746 1,117 49.8 0.7 1.1 4.3 10.3 1.0 18.1

SBI* Buy 1,852 2,511 35.6 1.2 1.6 6.9 23.6 1.0 19.1

SynBk Buy 91 128 41.3 0.5 0.8 3.3 8.7 0.8 17.1

UcoBk Neutral 68 - - 0.7 - 3.8 13.0 0.6 15.4

UnionBk Buy 206 276 34.3 0.7 0.9 4.1 24.8 0.8 17.5

UtdBk Buy 58 78 33.6 0.4 0.6 2.6 22.5 0.7 16.5VijBk Neutral 53 - - 0.6 - 4.3 13.5 0.5 13.7

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


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May 11, 2012 9

Income statementY/E March (` cr) FY08 FY09 FY10 FY11 FY12 FY13E FY14ENII 1,150 905 1,162 1,391 2,169 2,549 2,859- YoY Growth (%) 13.7 (21.3) 28.4 19.8 55.9 17.5 12.1Other Income 348 466 491 559 637 672 658- YoY Growth (%) (22.1) 33.9 5.5 13.8 14.0 5.5 (2.0)

Operating Income 1,498 1,370 1,652 1,950 2,806 3,221 3,517- YoY Growth (%) 2.8 (8.5) 20.6 18.0 43.9 14.8 9.2

Operating Expenses 778 903 1,045 1,074 1,299 1,381 1,588- YoY Growth (%) (4.3) 16.0 15.7 2.8 21.0 6.3 15.0

Pre - Provision Profit 719 467 607 876 1,507 1,840 1,929- YoY Growth (%) 11.7 (35.1) 30.0 44.2 72.1 22.1 4.8

Prov. & Cont. 415 288 431 465 838 907 906- YoY Growth (%) 13.9 (30.7) 49.7 8.0 80.1 8.2 (0.2)

Profit Before Tax 304 179 176 411 669 933 1,023- YoY Growth (%) 8.8 (41.1) (1.6) 132.6 63.0 39.5 9.6

Prov. for Taxation 37 34 62 88 145 280 332- as a % of PBT 12.1 19.1 35.0 21.5 21.7 30.0 32.4

PAT 267 145 115 322 524 653 691- YoY Growth (%) 30.7 (45.7) (20.9) 181.0 62.5 24.7 5.8

Preference Dividend - - - 17 67 88 84PAT for Eqty.SH 267 145 115 305 457 565 608- YoY Growth (%) 30.7 (45.7) (20.9) 166.1 49.7 23.6 7.5

Balance sheetY/E March (` cr) FY08 FY09 FY10 FY11 FY12 FY13E FY14EShare Capital 1,532 1,782 866 1,144 1,161 1,161 1,161

Equity 1,532 1,532 316 344 361 361 361

Preference - 250 550 800 800 800 800

Reserves & Surplus 1,129 1,295 3,037 3,877 4,419 4,928 5,556

Deposits 46,971 54,536 68,180 77,845 89,116 101,593 115,815

- Growth (%) 26.4 16.1 25.0 14.2 14.5 14.0 14.0

Borrowings 1,162 457 915 2,887 3,060 3,479 3,957

Tier 2 Capital 1,275 1,525 1,525 1,525 1,860 2,176 2,546

Other Liab & Prov. 2,242 2,436 2,481 2,763 2,394 2,623 2,858Total Liabilities 54,311 62,031 77,005 90,041 102,010 115,960 131,893Cash balances 5,249 4,532 4,707 5,943 5,092 4,064 4,633

Bank balances 623 1,878 1,671 1,385 2,185 2,484 2,826

Investments 18,515 17,924 26,068 26,259 29,059 32,688 34,795

Advances 27,858 35,394 42,330 53,502 63,043 73,761 86,300

- Growth (%) 25.7 27.0 19.6 26.4 17.8 17.0 17.0

Fixed Assets 623 624 651 819 805 888 979

Other Assets 1,443 1,679 1,578 2,133 1,826 2,076 2,361

Total Assets 54,311 62,031 77,005 90,041 102,010 115,960 131,893- Growth (%) 28.4 14.2 24.1 16.9 13.3 13.7 13.7


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May 11, 2012 10

Ratio analysis

Y/E March FY08 FY09 FY10 FY11 FY12 FY13E FY14EProfitability ratios (%)NIMs 1.9 2.1 2.1 2.7 2.7 2.7 2.8Cost to Income Ratio 65.9 63.3 55.1 46.3 43.1 44.8 44.3

RoA 0.3 0.2 0.5 0.6 0.7 0.7 0.7

RoE 7.1 5.1 11.6 14.1 14.2 15.5 16.5

B/S ratios (%)CASA Ratio 38.6 37.8 38.1 40.8 40.7 39.7 39.3

Credit/Deposit Ratio 59.3 64.9 62.1 68.7 70.7 72.6 74.5

CAR 11.2 13.3 12.8 13.1 13.3 13.1 13.0

- Tier I 6.4 7.6 8.2 8.9 8.9 8.6 8.4

Asset Quality (%)Gross NPAs 2.7 2.8 3.2 2.5 3.4 4.3 4.8

Net NPAs 1.1 1.5 1.8 1.4 1.7 1.8 1.7

Slippages 1.4 2.9 2.7 2.3 3.6 2.9 2.7

Loan Loss Prov. /Avg. Assets 0.5 0.3 0.4 0.5 0.7 0.6 0.6

Provision Coverage 59.8 48.5 68.0 72.1 69.2 70.0 72.5

Per Share Data (`)EPS 0.9 0.7 9.6 13.3 15.1 18.8 22.6

ABVPS (75% cover.) 13.4 13.6 86.3 101.2 108.5 122.2 142.0

DPS 0.3 0.0 2.0 2.2 2.4 4.0 4.5

Valuation RatiosPER (x) 61.7 78.1 6.1 4.4 3.9 3.1 2.6

P/ABVPS (x) 4.4 4.3 0.7 0.6 0.5 0.5 0.4

Dividend Yield 0.5 - 3.4 3.8 4.1 6.8 7.7

DuPont AnalysisNII 1.9 2.0 2.0 2.60 2.6 2.7 2.7

(-) Prov. Exp. 0.6 0.7 0.7 1.00 1.0 0.8 0.8

Adj. NII 1.3 1.3 1.3 1.59 1.6 1.9 1.9

Treasury 0.4 0.4 0.3 0.24 0.2 0.0 0.0

Int. Sens. Inc. 1.6 1.6 1.6 1.83 1.8 1.9 2.0

Other Inc. 0.6 0.5 0.5 0.53 0.5 0.5 0.6

Op. Inc. 2.2 2.1 2.1 2.36 2.3 2.5 2.5

Opex 1.9 1.8 1.5 1.56 1.4 1.5 1.5PBT 0.4 0.3 0.6 0.80 0.9 1.0 1.1

Taxes 0.1 0.1 0.1 0.17 0.2 0.3 0.3

RoA 0.3 0.2 0.5 0.63 0.7 0.7 0.7Preference Dividend - - 0.0 0.08 0.1 0.1 0.1

ROA after Pref Div 0.3 0.2 0.4 0.55 0.6 0.6 0.7Leverage 23.7 25.7 26.4 25.84 25.0 24.9 25.1

RoE 7.1 5.1 11.6 14.14 14.2 15.5 16.5


11/11


May 11, 2012 11

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

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