IDBI Bank Result Updated

8/2/2019 IDBI Bank Result Updated

1/13

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

Particulars (` cr) 4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy)NII 1,211 1,059 14.3 1109 9.2Pre-prov. profit 1,195 824 44.9 1167 2.4

PAT 771 410 88.1 516 49.3Source: Company, Angel Research

For 4QFY2012, IDBI Bank reported a healthy performance. Net profit grew by

49.3% yoy to `771cr, above our estimates, primarily due to lower provisioning

expenses than estimated by us. Improvement in asset quality and NIM were the

key highlights of the result. We recommend Accumulate on the stock.Asset quality surprises positively: The banks loan book witnessed significanttraction in 4QFY2012 on account of meeting year-end targets (particularly priority

sector lending). The banks advances grew by 16.0% qoq (up 15.3% yoy) and

deposits grew by 18.8% qoq (up 16.6% yoy). Growth in current and savings

accounts was healthy at 33.6% yoy and 36.4% yoy, respectively. CASA ratio as of

4QFY2012 stood at 24.1% (19.7% in 3QFY2012). The banks NIM expanded by

18bp qoq during 4QFY2012 on account of lower cost of funds (down 26bp

sequentially), primarily due to higher CASA floats (CA deposits up 77.4% qoq).

The bank relies heavily on bulk deposits for its funding (~55% of overall deposits

as of 4QFY2012); however, the bank rolled over most of these deposits during

January 2012 and escaped the high costs that prevailed during most of

4QFY2012. The banks commission-based fee income increased sharply during

4QFY2012 by 94.3% qoq (up 24.9% yoy), as the bank realized pending fee

accruals (processing and syndication-based fee income) that got approved in

4QFY2012. For 4QFY2012, IDBI Banks asset quality surprised positively with

slippage ratio declining to 1.0% in 4QFY23012 from 3.1% in 3QFY2012.

Consequently, provisioning cost declined sharply by 32.6% qoq in 4QFY2012 to

`274cr (`406cr in 3QFY2012). The bank restructured ~`1,500cr worth of

accounts during 4QFY2012, of which `763cr relates to restructuring of Air India.

Outlook and valuation: Considering the banks healthy performance in4QFY2012, we have lowered our provisioning expense estimates for FY2013 by

8.3% and increased our bottom-line estimates by 12.6%. We value the stock at0.7x FY2014 ABV and, hence, recommend Accumulate on the stock with a targetprice of `117.Key financials

Y/E March (` cr) FY2011 FY2012 FY2013E FY2014ENII 4,329 4,545 5,598 6,890% chg 91.9 5.0 23.2 23.1

Net Profit 1,650 2,032 2,540 3,060% chg 60.0 23.1 25.0 20.5

NIM (%) 1.8 1.7 1.9 2.0

EPS (`) 16.8 15.9 19.9 23.9P/E (x) 6.3 6.6 5.3 4.4P/ABV (x) # 0.8 0.8 0.7 0.6

RoA (%) 0.7 0.7 0.8 0.9

RoE (%) 15.8 13.5 13.7 14.8

Source: Company, Angel Research; Note: # without adjusting for SASF

ACCUMULATECMP `105

Target Price `117

Investment Period 12 months

Stock Info

Sector Banking

Market Cap (` cr) 10,334

Beta 1.3

52 Week High / Low 154/77

Avg. Daily Volume 508,392

Face Value (`) 10

BSE Sensex 17,097

Nifty 5,201

Reuters Code IDBI.BO

Bloomberg Code IDBI@IN

Shareholding Pattern (%)

Promoters 70.5

MF / Banks / Indian Fls 14.6

FII / NRIs / OCBs 3.2

Indian Public / Others 11.7

Abs. (%) 3m 1yr 3yr

Sensex 2.1 (12.8) 50.9

IDBI Bank 9.4 (30.1) 55.6

Vaibhav Agrawal022 3935 7800 Ext: 6808

[email protected]

Varun Varma022 3935 7800 Ext: 6847

[email protected]

IDBI BankPerformance Highlights

4QFY2012 Result Update | Banking

April 23, 2012


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IDBI Bank | 4QFY2012 Result Update

April 23, 2012 2

Exhibit 1:4QFY2012 performanceParticulars (` cr) 4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy)Interest earned 6,079 5,849 3.9 5,025 21.0- on Advances / Bills 4,700 4,495 4.6 3,722 26.3- on investments 1,328 1,349 (1.6) 1,287 3.2

- on balance with RBI & others 32 5 512.9 5 528.7

- on others 20 0 NA 11 82.9

Interest Expended 4,869 4,790 1.6 3,917 24.3Net Interest Income 1,211 1,059 14.3 1,109 9.2Other income 777 432 79.9 676 15.0

Other income excl. treasury 738 384 92.3 628 17.6

- Fee Income 577 297 94.3 462 24.9

- Treasury Income 39 48 (18.8) 48 (18.8)

- Recoveries from written off a/c 56 19 194.7 73 (23.3)

- Others 105 68 54.7 93 13.4

Operating income 1,988 1,491 33.3 1,784 11.4Operating expenses 793 667 18.9 617 28.5- Employee expenses 383 294 30.3 305 25.9

- Other Opex 410 373 10.0 313 31.1

Pre-provision Profit 1,195 824 44.9 1,167 2.4Provisions & Contingencies 274 406 (32.6) 282 (2.9)- Provisions for NPAs 58 358 (83.8) 131 (55.7)

- Provisions for Investments 112 (85) NA 144 NA

- Other provisions 104 133 (22.2) 7 NAPBT 921 418 120.3 885 4.1Provision for Tax 150 8 1,754.1 369 (59.3)PAT 771 410 88.1 516 49.3Effective Tax Rate (%) 16.3 1.9 1435bp 41.7 (2537)bp

Source: Company, Angel Research

Exhibit 2:Actual vs. Angel estimatesParticulars (` cr) Actual Estimates Variation (%)NII 1,211 1,127 7.5

Non-Interest Income 777 659 17.8

Operating Income 1,988 1,786 11.3Operating Expenses 793 796 (0.3)

Pre-Prov. Profit 1,195 991 20.6Provisions & Cont. 274 500 (45.3)

PBT 921 491 87.7

Prov. for Taxes 150 102 47.4

PAT 771 389 98.3Source: Company, Angel Research


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April 23, 2012 3

Exhibit 3:4QFY2012 performanceParticulars 4QFY12 3QFY12 %chg (qoq) 4QFY11 %chg (yoy)Balance sheetAdvances (`cr) 181,158 156,217 16.0 157,098 15.3Deposits (`cr) 210,493 177,123 18.8 180,486 16.6

Credit-to-Deposit Ratio (%) 86.1 88.2 (213)bp 87.0 (98)bp

Current deposits (`cr) 31,722 17,881 77.4 23,742 33.6

Saving deposits (`cr) 19,002 16,958 12.1 13,936 36.4

CASA deposits (` cr) 50,724 34,839 45.6 37,678 34.6

CASA ratio (%) 24.1 19.7 443bp 20.9 322bp

CAR (%) 14.6 13.5 105bp 13.6 94bp

Profitability Ratios (%)Cost of funds 8.4 8.6 (26)bp 7.5 93bp

Yield on assets 10.5 10.1 34bp 9.8 65bp

Return on Earning Assets 10.7 10.4 35bp 10.1 67bp

Cost of Liabilities 7.4 7.7 (29)bp 6.7 69bp

Reported NIM 2.1 1.9 18bp 2.1 (3)bp

Cost-to-income ratio 39.9 44.7 (482)bp 34.6 531bp

Asset qualityGross NPAs ` cr) 4,551 4,640 (1.9) 2,785 63.4

Gross NPAs (%) 2.5 2.9 (45)bp 1.8 73bp

Net NPAs (`cr) 2,911 3,058 (4.8) 1,678 73.5

Net NPAs (%) 1.6 2.0 (35)bp 1.1 55bp

Provision Coverage Ratio (%) 68.3 69.1 (81)bp 74.7 (638)bp

Slippage ratio (%) 1.0 3.1 (218)bp 0.5 42bp

NPA provision to avg. assets (%) 0.1 0.6 (48)bp 0.2 (14)bp


Loan growth up on priority sector lending

The banks loan book witnessed significant traction in 4QFY2012 on account of

meeting year-end targets (particularly priority sector lending). The banks advances

grew by 16.0% qoq (up 15.3% yoy) and deposits grew by 18.8% qoq (up 16.6%

yoy). On a sequential basis, growth in loan book was driven by higher agri lending

(which increased by 58.3% qoq), corporate loans (which increased by 14.4% qoq)

and retail loans (largely priority sector home loans which increased by 11.5%

qoq) during 4QFY2012. Management has indicated that it would continue with its

strategy of growing slower than the system in FY2013 as well to increase its total

proportion of CASA deposits and has guided for loan growth of 15% over FY2013.

Exhibit 4:Agri and retail (home loans) lending up in 4QFY2012Particulars (` cr) 4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy) % to totalCorporate 123,588 108,013 14.4 103,388 19.5 68.2

SME 8,193 8,946 (8.4) 13,527 (39.4) 4.5

Agriculture 18,906 11,940 58.3 10,741 76.0 10.4

Retail 30,472 27,317 11.5 29,442 3.5 16.8

Total advances 181,158 156,217 16.0 157,098 15.3 100.0Source: Company, Angel Research


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April 23, 2012 4

CASA deposits grew strongly by 45.6% qoq, primarily on account of a sharp spike

in current account deposits (up 77.4% qoq) due to one-offs (higher CASA floats)

related to activities such as issuance of tax-free bonds. Saving account deposits

growth continued to witness higher traction growing by 12.1% qoq. On a yearlybasis, growth in current and savings accounts was healthy at 33.6% yoy and

36.4% yoy, respectively. CASA ratio as of 4QFY2012 stood at 24.1% (19.7% in

3QFY2012).

About a year back, the bank had waived off all transaction and service-related

charges on all current and saving bank accounts to attain higher growth in CASA

deposits. As a result, the bank has increased the number of saving accounts by

robust ~36% (to ~60.3lakh accounts) over the past one year.

Exhibit 5:Priority sector lending drives loan book growth


Exhibit 6:CASA deposit growth remains healthy


NIM increases sequentially on lower cost of funds

The banks NIM expanded by 18bp during 4QFY2012 on account of lower cost of

funds (down 26bp sequentially), primarily due to higher CASA floats (CA deposits

up 77.4% qoq). The bank relies heavily on bulk deposits for its funding (~55% of

overall deposits as of 4QFY2012); however, the bank rolled over most of these

deposits during January 2012 and escaped the high costs that prevailed during

most of 4QFY2012.

16.8

(1.

3)

0.6

0.2

16.0

20.1

(2.

3)

(1.

0)

1.5

18.8

87.0 87.989.4 88.2

86.1

60.0

70.0

80.0

90.0

100.0

(10.0)

-

10.0

20.0

30.0

4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

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

20.9

17.3

19.2

19.7

24.1

54.049.2

42.2

54.1

34.6

-

15.0

30.0

45.0

60.0

-

5.0

10.0

15.0

20.0

25.0


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


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April 23, 2012 5

Exhibit 7:Lower cost of funds sequentially...


Exhibit 8:...leading to higher NIM for 4QFY2012


Fee income picks up on year-end surge

The banks commission-based fee income increased sharply during 4QFY2012 by

94.3% qoq (up 24.9% yoy), as the bank realized pending fee accruals (processing

and syndication-based fee income) that got approved in 4QFY2012. Majority of

the commission-based fee income in 4QFY2012 was derived from processing

(project appraisals) and syndication-based fees. Management has attributed the

higher sequential growth in fee income to this year-end surge and expects fee

income to dip back to normalized levels again from 1QFY2013.

Exhibit 9:Fee income up on year end tractionParticulars (` cr) 4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy)CEB 577 297 94.3 462 24.9

Treasury 39 48 (18.8) 48 (18.8)

Forex 70 38 84.2 57 22.8

Recoveries 56 19 194.7 73 (23.3)

Others 35 30 17.2 36 (2.9)

Other income 777 432 79.9 676 14.9Other income excl. treasury 738 384 92.3 628 17.5


Slippages surprise positively during 4QFY2012

IDBI Banks asset quality surprised positively during the quarter, with slippage ratio

declining to 1.0% in 4QFY2012 from 3.1% in 3QFY2012. Consequently,

provisioning cost declined sharply by 32.6% qoq in 4QFY2012 to `274cr (`406cr

in 3QFY2012). The bank restructured ~`1,500cr worth of accounts during

4QFY2012, of which `763cr relates to restructuring of Air India.

The banks gross NPA during 4QFY2012 declined by 1.9% qoq and net NPA

declined by 4.8% qoq. As of 4QFY2012, the banks gross NPA ratio stood at

2.5% (2.9% in 3QFY2012) and net NPA ratio stood at 1.6% (1.8% in

3QFY2012).

The banks effective tax rate was lower at 16.3% for 4QFY2012. The bank utilizeddeferred tax credit worth `258cr during the quarter. Also, due to deferred tax

adjustments the banks tax liability further reduced by`184cr (reversal of earlier

years) and `65cr (not created for FY2012).

7.45

7.99 8.408.64

8.38

4.50

5.50

6.50

7.50

8.50

9.50


(%)

2.10 2.072.00

1.89

2.07

1.50

1.75

2.00

2.25


(%)


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April 23, 2012 6

Exhibit 10:Asset quality surprises positively


Exhibit 11:Slippages down significantly during 4QFY12


Exhibit 12:Branch expansion trend


Exhibit 13:Cost ratios inch up a bit


1.8

2.1

2.5

2.9

2.5

1.1

1.3

1.6

2.0

1.6

74.7 74.0

70.1 69.1 68.3

40.0

50.0

60.0

70.0

80.0

-

0.5

1.0

1.5

2.0

2.5

3.0

3.5


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

0.5 1.6 2.4 3.1 1.0

0.2

0.6

0.3

0.6

0.1

-

0.2

0.4

0.6

0.8

-

0.5

1.0

1.5

2.0

2.53.0

3.5


Slippages (%) Credit cost (%, RHS)

816

883

908

933

973

1,370

1,4591,496

1,5181,542

1,200

1,300

1,400

1,500

1,600

700

750

800

850

900

950

1,000


Branches ATMs (RHS)

1.0 0.9 1.0 1.1 1.2

34.6 34.937.1

44.739.9

10.0

20.0

30.0

40.0

-

0.3

0.6

0.9

1.2

1.5


Opex to average assets (%, RHS) CIR (% , RHS)(%)


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April 23, 2012 7

Investment arguments

Strong branch expansion and relatively healthy fee income

IDBI Bank enjoys the advantage of a modern, 100% CBS branch network, which isgrowing organically at a much faster rate than other PSU banks (1718% CAGR

post the FY2007 UWB acquisition). While the present 973 branches are

predominantly urban-concentrated (~66%), the bank intends to increase its

presence in semi-urban areas going forward. Management is planning to open

another 150 branches in FY2013, which we believe should continue to increase

the contribution of retail deposits in the banks funding mix and drive strong CASA

market share gains. The banks CASA deposits posted a 35.7% CAGR over

FY200712, and we have factored in a 21.7% CAGR over FY2012-14E.

Relative to other PSU banks, on account of the banks strong corporate

relationships and government mandates, the banks fee income at 0.7% is alsoreasonably healthy (though going forward, in light of the banks recent move to

waive off charges for retail depositors to attract CASA deposits as well as slower

balance sheet growth and consistent with managements guidance, we have

factored in moderate 13.0% yoy growth in fee income for FY2013).

RoA enjoying structural tailwinds

Historically, IDBI Bank has witnessed the lowest NIM in the industry, majorly on

account of high cost of funding due to the liability mix heavily skewed towards bulk

deposits. Also, since the bank relied heavily on corporate lending to increase its

loan book, yields on assets on an average have been lower than peers. In wake oflower NIMs, the bank has indicated a strategy of lower advances growth (~15%

for FY2013) than the system to concentrate on the increasing percentage of

low-cost CASA deposits and to consciously shift focus from large corporate lending

to retail and MSME lending to bring in higher-yielding loans.


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April 23, 2012 8

Investment concern

SASF A burden on the banks books

Due to the erstwhile DFI structure being challenged by a number of asset-quality

issues, IDBI Bank at the time of the merger had to set up a stressed asset

stabilization fund (SASF) to quarantine defaulted assets. The transfer value of the

SASF was ~`9,000cr, through which the bank has witnessed only ~`3,800cr

worth cash recoveries (as of FY2012). The possibility of an entire recovery seems

implausible and would lead to full provisioning expenses towards the amount that

remains unrecoverable. The SASF with an outstanding value of ~`5,200cr also

remains a burden on the banks investment books due to its special nature of zero

interest securities. Accordingly, we have adjusted 75% of the value of the SASF

against the banks net worth to arrive at ABV estimates for valuing the bank.

At the same time, the bank has material stakes in several financial institutions,

including NSE, CARE, NSDL and ARCIL, apart from subsidiaries such as IDBI

Federal Life, and the market value of all these investments is estimated to be about

`2,000cr more than the banks investment cost (about `15 per share, post 25%

holding company discount). Monetization of these investments could partially help

in compensating the decline in the banks net worth on account of legacy NPAs,

providing an upside to our estimates.

Outlook and valuation

The bank has been among the fastest-growing banks in terms of CASA deposits

over the past few years (CAGR of ~36% over FY2007-12) even when compared to

private banks and now has a market share of 2.1% (as of FY2011). At the CMP,

the bank is trading at valuations of 0.8x FY2013E P/ABV, adjusting for the SASF

amount (0.6x without adjusting). Considering the banks healthy performance in

4QFY2012, we have lowered our provisioning expense estimates for FY2013 by

8.3% and increased our bottom-line estimates by 12.6%. We value the stock at0.7x FY2014 ABV and, hence, recommend Accumulate on the stock with a targetprice of `117.Exhibit 14:Key assumptionsParticulars (%)

Earlier estimates Revised estimatesFY2013 FY2014 FY2013 FY2014

Credit growth 13.0 14.0 13.0 14.0

Deposit growth 15.0 15.0 15.0 15.0

CASA Ratio 24.6 26.0 25.6 27.0

NIMs 1.9 2.0 1.9 2.0

Other Income growth 12.8 13.3 13.6 12.2

Growth in Staff Expenses 20.8 20.8 20.8 20.8

Growth in Other Expenses 20.8 20.8 20.8 20.8

Slippages 2.2 1.8 1.5 1.5

Coverage Ratio 61.0 61.0 71.0 71.5

Source: Angel Research


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April 23, 2012 9

Exhibit 15:Change in estimatesParticulars (` cr) FY2013 FY2014Earlierestimates Revisedestimates Var. (%) Earlierestimates Revisedestimates Var. (%)NII 5,563 5,598 0.6 6,859 6,890 0.5

Non-interest income 2,258 2,406 6.6 2,559 2,699 5.5

Operating income 7,821 8,004 2.4 9,418 9,589 1.8Operating expenses 3,153 3,150 (0.1) 3,808 3,805 (0.1)

Pre-prov. profit 4,668 4,855 4.0 5,610 5,784 3.1Provisions & cont. 1,447 1,327 (8.3) 977 1,254 28.4

PBT 3,221 3,528 9.5 4,633 4,530 (2.2)Prov. for taxes 966 988 2.2 1,503 1,470 (2.2)

PAT 2,255 2,540 12.6 3,130 3,060 (2.2)Source: Angel Research

Exhibit 16:P/ABV# band

Source: Company, Angel Research; Note: #Without adjusting the book value for SASF

0

50

100

150

200

250

Apr-

06

Sep-0

6

Fe

b-0

7

Jul-07

Dec-0

7

May-0

8

Oc

t-08

Mar-

09

Aug-0

9

Jan-1

0

Jun-1

0

Nov-1

0

Apr-

11

Sep-1

1

Fe

b-1

2

Jul-12

Dec-1

2

Price (`) 0.5x 0.7x 0.9x 1.1x 1.3x


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April 23, 2012 10

Exhibit 17:Recommendation summaryCompany Reco. CMP(`) Tgt. price(`) Upside(%) FY2014EP/ABV (x) FY2014ETgt. P/ABV (x) FY2014EP/E (x) FY2012-14EEPS CAGR (%) FY2014ERoA (%) FY2014ERoE (%)AxisBk Buy 1,135 1,550 36.7 1.6 2.2 8.3 16.5 1.5 20.4

FedBk Neutral 417 - - 1.0 - 7.3 13.0 1.3 14.5

HDFCBk Neutral 545 - - 3.1 - 15.4 27.0 1.7 22.1

ICICIBk* Buy 843 1,135 34.6 1.4 1.9 10.8 19.8 1.4 16.2

SIB Neutral 24 - 4.5 1.0 1.1 6.1 6.7 0.9 17.7

YesBk Buy 359 477 33.0 1.8 2.4 8.5 22.7 1.5 23.3

AllBk Buy 177 205 16.0 0.7 0.8 4.3 (2.1) 1.0 17.0

AndhBk Neutral 120 - - 0.7 - 4.4 6.5 1.0 16.7

BOB Buy 744 943 26.7 0.9 1.1 4.9 12.2 1.1 19.2

BOI Accumulate 346 392 13.2 0.9 1.0 5.3 21.3 0.8 16.5

BOM Buy 52 62 19.7 0.6 0.8 3.8 26.8 0.9 17.5

CanBk Accumulate 471 532 13.0 0.8 0.9 4.9 10.9 0.9 16.7CentBk Reduce 100 92 (7.1) 0.9 0.8 5.0 45.7 0.5 13.8

CorpBk Buy 410 508 23.7 0.6 0.7 3.7 2.5 0.8 16.2

DenaBk Buy 93 118 26.7 0.6 0.7 3.6 6.2 0.9 16.9

IDBI# Accumulate 105 117 11.3 0.6 0.7 4.4 22.7 0.9 14.8IndBk Accumulate 219 240 9.6 0.8 0.8 4.5 5.4 1.2 18.2

IOB Accumulate 92 104 13.8 0.6 0.7 4.3 29.9 0.6 13.9

J&KBk Neutral 910 - - 0.8 - 4.6 8.8 1.4 18.6

OBC Buy 249 296 18.9 0.5 0.7 4.1 17.1 0.8 13.6

PNB Buy 887 1,138 28.2 0.9 1.1 5.0 8.8 1.1 18.5

SBI* Buy 2,192 2,593 18.3 1.4 1.6 8.1 23.6 1.0 19.1

SynBk Buy 106 128 20.3 0.6 0.8 3.9 8.7 0.8 17.2

UcoBk Neutral 79 - - 0.8 0.8 4.2 7.7 0.7 16.2

UnionBk Buy 218 266 22.4 0.7 0.9 4.4 27.2 0.8 17.4

UtdBk Buy 68 87 28.1 0.5 0.7 3.1 11.4 0.7 16.0

VijBk Reduce 58 55 (5.6) 0.7 0.7 5.0 14.2 0.5 13.2

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


11/13


April 23, 2012 11

Income statementY/E March (` cr) FY09 FY10 FY11 FY12E FY13E FY14ENII 1,239 2,256 4,329 4,545 5,598 6,890- YoY Growth (%) 83.2 82.0 91.9 5.0 23.2 23.1Other Income 1,562 2,181 2,084 2,119 2,406 2,699- YoY Growth (%) (9.8) 39.6 (4.4) 1.7 13.6 12.2

Operating Income 2,802 4,437 6,413 6,664 8,004 9,589- YoY Growth (%) 16.4 58.4 44.5 3.9 20.1 19.8

Operating Expenses 1,338 1,831 2,255 2,607 3,150 3,805- YoY Growth (%) 41.6 36.9 23.1 15.6 20.8 20.8

Pre - Provision Profit 1,464 2,605 4,158 4,056 4,855 5,784- YoY Growth (%) - 78.0 59.6 (2.4) 19.7 19.1

Prov. & Cont. 478 1,561 1,877 1,427 1,327 1,254- YoY Growth (%) (25.3) 226.3 20.3 (24.0) (7.0) (5.5)

Profit Before Tax 985 1,045 2,281 2,630 3,528 4,530- YoY Growth (%) 19.8 6.0 118.3 15.3 34.2 28.4

Prov. for Taxation 127 14 631 598 988 1,470- as a % of PBT 12.9 1.3 27.6 22.7 28.0 32.4

PAT 859 1,031 1,650 2,032 2,540 3,060- YoY Growth (%) 17.7 20.1 60.0 23.1 25.0 20.5

Balance sheetY/E March (` cr) FY09 FY10 FY11 FY12E FY13E FY14EShare Capital 725 725 985 1,279 1,279 1,279Reserves & Surplus 8,699 9,440 13,583 18,120 20,067 22,385

Deposits 112,401 167,667 180,486 210,493 242,066 278,376

- Growth (%) 54.0 49.2 7.6 16.6 15.0 15.0

Borrowings 35,532 35,010 36,607 40,566 45,500 52,253

Tier 2 Capital 8,885 12,699 14,962 12,912 14,591 16,633

Other Liab & Prov. 6,160 8,031 6,754 7,467 8,665 10,543

Total Liabili ties 172,402 233,573 253,377 290,837 332,168 381,470Cash balances 8,592 13,903 19,559 15,090 9,683 11,135

Bank balances 2,628 679 1,207 2,967 3,389 3,892

Investments 50,048 73,345 68,269 83,175 104,845 122,231

Advances 103,444 138,202 157,098 181,158 204,709 233,368

- Growth (%) 25.8 33.6 13.7 15.3 13.0 14.0

Fixed Assets 2,824 2,997 3,037 3,019 3,344 3,726

Other Assets 4,867 4,446 4,206 5,427 6,198 7,118

Total Assets 172,402 233,573 253,377 290,837 332,168 381,470- Growth (%) 31.9 35.5 8.5 14.8 14.2 14.8


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Ratio analysisY/E March FY09 FY10 FY11 FY12E FY13E FY14EProfitability ratios (%)NIMs 0.9 1.2 1.8 1.7 1.9 2.0Cost to Income Ratio 47.8 41.3 35.2 39.1 39.4 39.7

RoA 0.6 0.5 0.7 0.7 0.8 0.9

RoE 12.1 13.2 15.8 13.5 13.7 14.8

B/S ratios (%)CASA Ratio 14.8 14.6 20.9 24.1 25.6 27.0

Credit/Deposit Ratio 92.0 82.4 87.0 86.1 84.6 83.8

CAR 11.6 11.3 13.6 14.6 13.7 13.5

- Tier I 6.8 6.2 8.0 8.4 8.4 8.1

Asset Quality (%)Gross NPAs 1.4 1.5 1.8 2.5 2.9 3.1

Net NPAs 0.9 1.0 1.1 1.6 1.5 1.4

Slippages 0.8 1.4 1.4 2.0 1.5 1.5

Loan Loss Prov./Avg. Assets 0.1 0.4 0.5 0.4 0.4 0.3

Provision Coverage 33.9 70.0 74.7 68.3 71.0 71.5

Per Share Data (`)EPS 11.8 14.2 16.8 15.9 19.9 23.9

ABVPS# 94.6 110.3 128.5 132.0 148.8 166.9

DPS 2.5 3.0 3.5 3.5 4.0 5.0

Valuation RatiosPER (x) 8.9 7.4 6.3 6.6 5.3 4.4

P/ABVPS (x)# 1.1 1.0 0.8 0.8 0.7 0.6

Dividend Yield 2.4 2.9 3.3 3.3 3.8 4.8

DuPont Analysis (%)NII 0.8 1.1 1.8 1.7 1.8 1.9

(-) Prov. Exp. 0.3 0.8 0.8 0.5 0.4 0.4

Adj. NII 0.5 0.3 1.0 1.1 1.4 1.6

Treasury 0.3 0.3 0.1 0.1 0.1 0.0

Int. Sens. Inc. 0.8 0.7 1.1 1.2 1.4 1.6

Other Inc. 0.8 0.7 0.8 0.7 0.7 0.7

Op. Inc. 1.5 1.4 1.9 1.9 2.1 2.3

Opex 0.9 0.9 0.9 1.0 1.0 1.1PBT 0.7 0.5 0.9 1.0 1.1 1.3

Taxes 0.1 0.0 0.3 0.2 0.3 0.4

RoA 0.6 0.5 0.7 0.7 0.8 0.9Leverage (x) 21.3 25.9 23.3 18.0 16.9 17.3

RoE 12.1 13.2 15.8 13.5 13.7 14.8Note: # without adjusting for SASF


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