Financials Result Review

8/3/2019 Financials Result Review

1/21

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

Margins improve on aggressive pass through of rate hikes

During 2QFY2012, earnings growth for the banking sector was aided by

sequential margin expansion for almost all banks, which offsetted asset-quality

pressures. The banking industry has been swift in passing on the rate hikes by the

RBI though hikes in lending rates over the last six months. Also, the lesser

aggressive stance adopted by bigger established players such as SBI and ICICI

Bank in terms of credit growth and with HDFC Bank in any case focusing on

profitable growth rather than just market share (all three have a combined market

share of ~30% of the systems credit) have given leeway to other smaller banks as

well to price their loans. Reflecting this, the reported margin for our coverage

universe improved by ~15bp qoq during 2QFY2012.

Asset quality deteriorates; some PSU banks buck the trend

While most PSU banks witnessed asset-quality stress and reported higher

slippages in 2QFY2012, primarily on account of completion of transition to

system-based NPA recognition, some banks managed to buck the trend by

maintaining or sequentially improving their asset quality. Notably, banks that had

already switched over to system-based NPA recognition before the mandated

timeline of September 30, 2011, such as BOB, BOM, J&KBK and Vijaya Bank,

witnessed an improvement in their NPA ratios in 2QFY2012 compared to

1QFY2012. Apart from slippages arising due to the switchover to system-based

NPA recognition, delinquencies from the SME and agri books further aggravated

asset-quality pressures and led to higher provisioning expenses for most banks

during 2QFY2012. With interest rates expected to remain high until the onset of

FY2013 and sectors such as infra, real estate and exports continuing to face

macro headwinds, asset-quality concerns are expected to linger. However, that

said, incremental provisioning expenses in FY2011 and FY2012 by banks on

account of switchover to system-based NPA recognition and to meet the increasein NPA prudential norms and the mandated provision coverage ratio of 70% have

led to a high base. Hence, the percentage increase in actual provisioning

expenses in the P&L is not expected to increase significantly, even though genuine

slippages are expected to increase going forward.

Outlook and valuation

In light of the macro environment, we prefer banks with a more conservative

asset-quality profile, especially amongst mid caps (for instance, relatively lower

yield on advances and moderate credit growth) this includes banks such as

Syndicate Bank and Bank of Maharashtra. Also, from a medium-term perspective,we continue to prefer large private banks with a strong structural investment case

within which we prefer Axis Bank and ICICI Bank from a valuation perspective.

Banking indicatorsParticulars (%)Latest yoy credit growth 18.4

Latest yoy deposit growth 17.5

Latest credit-to-deposit ratio 73.9

MTD avg. LAF borrowings (`cr) 82,717

MTD avg. 1-year G-Sec yield 8.7

MTD avg. 10-year G-Sec yield 8.9

MTD avg. 3-month CP rate 9.7

MTD avg. 12-month CP rate 10.1Source: RBI, Bloomberg, Angel Research;

Policy ratesParticulars (%)Repo rate 8.5

Reverse repo rate 7.5

MSF rate 9.5

Cash reserve ratio (CRR) 6.00

Statutory liquidity ratio (SLR) 24.00

Source: RBI, Angel Research

Vaibhav Agrawal022 3935 7800 Ext: 6808

[email protected]

Shrinivas Bhutda022 3935 7800 Ext: 6845

[email protected]

Varun Varma022 3935 7800 Ext: 6847

[email protected]

Financials2QFY2012 Result Review

Sector Update | Banking

November 24, 2011


2/21

Sector Review | Banking

November 24, 2011 2

Margins improve on aggressive pass through of rate hikesby banks

During 2QFY2012, earnings growth for the banking sector was aided by

sequential margin expansion for almost all banks, which offsetted asset-quality

pressures. The banking industry has been swift in passing on the rate hikes by the

RBI though hikes in lending rates over the last six months. Almost all banks raised

their lending rates by 50bp within a week of a 50bp increment in the repo rate on

July 26, 2011.

Exhibit 1:Margin expansion* qoq for banks under coverage

Source: Company, Angel Research, Note: Domestic NIMs for SBI, BOB and BOI

Exhibit 2:Pvt. banks and SBI outperform on NII front yoy

Source: Company, Angel Research

The lesser aggressive stance adopted by bigger established players such as SBI

and ICICI Bank in terms of credit growth and with HDFC Bank in any casefocusing on profitable growth rather than just market share (all three have a

combined market share of ~30% of the systems credit) have given leeway to other

smaller banks as well to price their loans.

SBIs capital adequacy dropped significantly post the pension adjustments from its

reserves during 4QFY2011 (tier-I of 7.5% in 2QFY2012 compared to 9.6% in

3QFY2011). Further, with the government being strapped for cash due to its own

fiscal woes coupled with distressed market conditions, capital infusion has been

put on hold by the government, making SBI more focused on preserving capital

and generating more capital internally through higher profits. Moreover, its loan

book has witnessed continued stress over the last six months, prompting the banksmanagement, which changed post 3QFY2011 results, to adopt a more cautious

and profitability-focused lending approach. ICICI Bank has continued with its

consolidation strategy by exiting unattractive retail-based business segments and

reducing retail-based loans (35.0% share as of 2QFY2012 compared to 38.7%

share as of 4QFY2011) in favor of corporate and overseas advances.

With all three banks looking to maintain or improve their margins rather than

chasing market share gains, borrowers had to settle for higher rates, leading to

higher margin expansion for most other banks as well, creating a buffer to absorb

NPA provisioning expenses. Reflecting this, even though easing liquidity has kept

deposit rates in check in the last six months, banks have been able to increasetheir lending rates by 50bp-100bp. Consequently, the reported margin for our

coverage universe improved by ~15bp qoq during 2QFY2012.

(40.0)

(30.0)

(20.0)

(10.0)

-

10.0

20.0

30.0

40.0

50.0

60.0

AXSB

VIJAYA

UCOBK

BOI

CRPBK

INDBK

DENABK

ALLBK

BOB

SYNBK

CANBK

SIB

SBI

UTDBK

PNB

ANDBK

UNBK

YESBK

BOM

CENTBK

IOB

ICICIBK

IDBI

FEDBK

HDFCBK

J&KBK

OBC

(bp)

17.5

17.9

16.6

12.3

6.8

9.8

8.1

8.4

0.0

4.0

8.0

12.0

16.0

20.0

Large Pvt Other Pvt PSU PSU (excl. SBI)

% chg (yoy) % chg (qoq)


3/21


November 24, 2011 3

Exhibit 3:Yield on advances (calculated) for banks under our coverageBanks YoA - 1HFY12 YoA - 2HFY11 Diff. ALLBK 11.96 10.20

YESBK 12.01 10.55 146 ANDHBK 12.29 11.00

UCOBK 11.07 9.78 128

FEDBK 12.37 11.09 128

CORPBK 10.48 9.20 128

AXSB 10.14 8.95

IDBI 11.21 10.04 118

CENTBK 11.07 9.97 110

CANBK 10.51 9.42 109

SIB 12.06 11.03 103

VIJBK 11.07 10.06

PNB 11.09 10.11 99

SBI 9.84 8.90 94

OBC 11.09 10.21 88

SYNBK 10.69 9.81 88

IOB 10.73 9.87 87

BOM 10.76 9.96 80

DENABK 10.98 10.22 75

INDBK 11.22 10.47 75

UNIONBK 10.21 9.48 73

HDFCBK 10.91 10.22 69

ICICIBK 9.16 8.47 69

BOB 9.03 8.35 68

UTDBK 10.61 10.13 49

BOI 8.87 8.46 41

J&KBK 11.44 11.08 36


Credit growth slows on expected lines amid a weakening

economic outlook

Credit growth trends for SCBs have been on a declining trend since the beginningof CY2011. Credit growth as of November 4, 2011, dropped to its lowest level

since June 2010 (17 months) to below 19% (at 18.4%) on account of slowing

economy as well as a high base effect (22.1% yoy growth in November 2010).

Incremental credit in FY2012 YTD is lower by 21.9% yoy compared to last year

(FY2011 YTD); however, deposit accretion continued to be healthy with

incremental YTD deposits growing by 66.7% yoy.


4/21


November 24, 2011 4

Exhibit 4:Deposits increase, while credit offtake slows

Source: RBI, Angel Research; Note: #Between March 26, 2010, and

November 05, 2010, * Between March 25, 2011, and November 04, 2011

Exhibit 5:Credit deposit trends


The global economy inflicted by euro-sovereign crisis is facing headwinds and the

domestic economy has also been losing steam. High inflation and interest rates

are expected to keep credit growth sluggish going into FY2013. Accordingly, we

expect credit growth to slow down to 16-17% for FY2012.

Exhibit 6:Advances growth (%)Banks-Type 2QFY12 1QFY12 % chg(qoq) 2QFY11 % chg(yoy)Large PSU 2,036,842 1,993,903 2.2 1,712,031 19.0

Mid PSU 1,144,603 1,105,949 3.5 944,775 21.2

New Pvt 665,636 623,385 6.8 543,613 22.4Old Pvt 156,091 147,794 5.6 122,748 27.2

Grand Total 4,003,173 3,871,030 3.4 3,323,167 20.5Source: Company, Angel Research

Exhibit 7:Deposits growth (%)Banks-Type 2QFY12 1QFY12 % chg(qoq) 2QFY11 % chg(yoy)Large PSU 2,625,803 2,555,820 2.7 2,220,742 18.2

Mid PSU 1,581,672 1,522,322 3.9 1,322,580 19.6

New Pvt 789,056 735,313 7.3 674,893 16.9Old Pvt 214,595 202,953 5.7 169,377 26.7

Grand Total 5,211,126 5,016,409 3.9 4,387,591 18.8Source: Company, Angel Research

Exhibit 8:CD ratio for banks under our coverage


286,002319,960

241,815

449,403

-

100,000

200,000

300,000

400,000

500,000

Credit offtake (` cr) Deposit mobilisation (` cr)

FY2011# FY2012*(`cr)

-

5.0

10.0

15.0

20.0

25.0

30.0

Oct-08

Jan-0

9

Apr-09

Jul-09

Oct-09

Jan-1

0

Apr-10

Jul-10

Oct-10

Jan-1

1

Apr-11

Jul-11

Oct-11

Credit growth (%) Depos it growth (% )

55.0

65.0

75.0

85.0

HDFCBK

SYNBK

YESBK

IOB

ANDBK

UNBK

INDBK

PNB

UCOBK

BOM

AXSB

FEDBK

OBC

CANBK

SIB

UTDBK

VIJAYA

CENTBK

CRPBK

ALLBK

DENABK

J&KBK

(%)


5/21


November 24, 2011 5

Exhibit 9:CASA yearly growth rate trendsBank Saving Acc.2QFY12 Saving Acc.2QFY11 yoy (%) Current Acc.2QFY12 Current Acc.2QFY11 yoy (%) CASA2QFY12 CASA2QFY11 yoy (%)IDBI 18,265 10,925 67.2 15,216 12,621 20.6 33,481 23,546 42.2

AXSB 46,786 37,812 23.7 35,354 27,374 29.2 82,140 65,186 26.0

J&KBK 13,515 11,031 22.5 4,590 5,298 (13.4) 18,105 16,329 10.9

FEDBK 10,183 8,596 18.5 1,983 2,025 (2.1) 12,166 10,621 14.5

SIB 5,764 4,888 17.9 1,274 1,091 16.8 7,038 5,979 17.7

CANBK 64,043 54,339 17.9 16,732 17,662 (5.3) 80,775 72,001 12.2

BOI 63,513 54,153 17.3 13,140 13,915 (5.6) 76,652 68,068 12.6

HDFCBK 69,017 59,525 15.9 40,093 39,363 1.9 109,110 98,888 10.3

ALLBK 35,875 30,982 15.8 7,609 8,448 (9.9) 43,484 39,430 10.3

BOB 68,541 59,349 15.5 21,639 20,466 5.7 90,180 79,815 13.0

PNB 100,491 87,296 15.1 23,531 23,687 (0.7) 124,022 110,983 11.7

BOM 21,699 19,153 13.3 6,550 5,989 9.4 28,249 25,142 12.4UTDBK 24,693 21,834 13.1 6,513 5,578 16.8 31,206 27,412 13.8

OBC 25,558 22,660 12.8 8,624 9,261 (6.9) 34,182 31,921 7.1

IOB 33,610 29,863 12.6 11,301 9,231 22.4 44,912 39,094 14.9

VIJBK 13,261 11,800 12.4 4,596 4,306 6.7 17,857 16,106 10.9

INDBK 27,804 24,797 12.1 6,813 6,807 0.1 34,617 31,604 9.5

CORPBK 16,645 14,850 12.1 9,660 9,414 2.6 26,305 24,264 8.4

ICICIBK 70,149 63,248 10.9 32,997 34,857 (5.3) 103,146 98,105 5.1

SYNBK 32,578 29,563 10.2 10,497 10,911 (3.8) 43,075 40,474 6.4

UCOBK 25,787 23,552 9.5 6,257 5,251 19.2 32,044 28,803 11.3

ANDHBK 19,355 17,754 9.0 5,338 6,131 (12.9) 24,693 23,885 3.4

CENTBK 49,071 45,027 9.0 12,717 12,763 (0.4) 61,788 57,790 6.9

Source: Company, Angel ResearchExhibit 10:Banks with highest credit growthBank 1yr (%) 3year CAGR 5yr CAGRIOB 44.2 22.8 26.3VIJAYA 36.4 15.4 23.9SIB 29.9 25.1 26.3AXSB 26.7 33.6 44.9BOM 24.0 17.0 23.3CRPBK 17.0 30.4 29.4BOB 23.9 28.9 30.7 ANDBK 21.527.8 26.4UNBK 18.6 26.6 23.1

Source: Company, Angel Research, Note:3-year CAGR over FY08-FY11,

5-year CAGR over FY2006-11

Exhibit 11:Banks with lowest credit growthBank 1yr (%) 3year CAGR 5yr CAGRUCOBK 12.4 21.6 21.5YESBK 12.7 53.9 70.2CENTBK 12.7 21.1 28.2SBI 16.1 22.0 23.7ALLBK 16.6 23.5 26.3J&KBK 21.8 11.5 12.6 VIJAYA 36.415.4 23.9BOM 24.0 17.0 23.3SYNBK 18.9 18.6 24.0

Source: Company, Angel Research, Note:3-year CAGR over FY08-FY11,

5-year CAGR over FY2006-11


6/21


November 24, 2011 6

Asset quality broadly deteriorates; some PSU banks manage tobuck the trend

Most PSU banks witnessed asset-quality stress and reported higher slippages

(11 out of 21 PSU banks reporting more than a 20% qoq increase in theirNPA ratios) in 2QFY2012, primarily on account of completion of transition to

system-based NPA recognition, however some banks managed to buck the trend

by maintaining or sequentially improving their asset quality. Notably, banks that

had already switched over to system-based NPA recognition before the mandated

timeline of September 30, 2011, such as BOB, BOM, J&KBK and Vijaya Bank,

witnessed improvement in their NPA ratios in 2QFY2012 compared to 1QFY2012.

Also, few PSU banks particularly Dena Bank and PNB, though made substantial

switchover (`50lakhs and below for Dena, `10lakhs and below for PNB) during

2QFY2012, managed to surprise positively on the asset-quality front by reporting

lower-than-expected slippages. Also, in cases of Allahabad Bank, Andhra Bank,

Vijaya Bank and Central Bank, we were expecting a higher pressure on earnings

from asset-quality deterioration, which did not happen in 2Q, though we would

remain cautious regarding the same in the coming quarters.

Exhibit 12:Broadly asset quality weakened for most banks under our coverageBank Slippage ratio2QFY12 (%) Slippage ratio1QFY12 (%) change(bps) Qoq changeNNPA (%) PCR2QFY12 (%) PCR1QFY12 (%) change(ppt) Switchover in2QFY12 ANDHBK 6.1 1.4 478 222.1 61.7 82.0 (20.3)`25lakhs and below

OBC 6.3 1.6 469 86.8 63.8 75.1 (11.3) `10lakhs and below

UNBK 4.8 2.0 279 56.3 60.5 68.2 (7.7) `5lakhs and below

SYNBK 3.6 1.3 233 3.3 78.5 78.4 0.1 `25lakhs and below

BOI 5.3 3.2 214 57.8 59.1 66.8 (7.6) `5lakhs and below

CENTBK 3.8 1.8 199 62.2 56.8 65.2 (8.4) Above `10lakh

IOB 3.6 1.7 182 19.6 71.8 73.5 (1.7) `50lakhs and below

UTDBK 4.6 2.9 171 36.9 65.0 70.2 (5.2) `5lakhs and below

CRPBK 2.4 0.7 164 81.0 84.7 74.9 9.8 Fully done

ALLBK 2.2 0.6 158 12.8 79.6 79.9 (0.3)`50lakhs and below

INDBK 2.0 0.9 114 42.1 79.4 84.1 (4.8) Fully done

IDBI 2.4 1.6 77 26.4 70.1 74.0 (3.9) Fully done

SBI 4.2 3.9 33 29.6 63.5 67.3 (3.8) Fully done

DENABK 1.4 1.3 7 7.2 77.1 77.9 (0.8) `50lakhs and below

UCOBK 2.1 2.1 2 (0.8) 52.0 51.6 0.4`

50lakhs and belowBOB 1.0 1.0 (0) (0.7) 82.0 82.5 (0.5) Fully done

CANBK 2.3 2.6 (26) 8.6 68.6 69.5 (0.9) `2lakhs and below

PNB 1.6 1.9 (30) (0.1) 75.1 74.3 0.8 `10lakhs and below

J&KBK 0.8 1.3 (56) 6.3 92.0 92.5 (0.5) Fully done

BOM 0.8 1.6 (81) (46.5) 86.0 73.2 12.8 Fully done

VIJAYA 3.7 5.0 (129) (8.6) 66.1 63.4 2.7 Fully do



7/21


November 24, 2011 7

Apart from slippages arising due to the switchover to system-based NPA

recognition, delinquencies from the SME and agri books further aggravated

asset-quality pressures and led to higher provisioning expenses for most banks

during 2QFY2012. While broadly asset quality deteriorated for PSU banks, privatebanks on the contrary, which have sharply improved their asset quality over the

past two years, remained comfortable on the asset-quality front. Apart from some

concerns from the MFI segment, which led to higher restructuring during

2QFY2012 for ICICI Bank (~`740cr), Axis bank (~`230cr), Yes Bank (~`90cr)

and South Indian Bank (`81cr), overall slippages remained contained for private

banks under our coverage.

Exhibit 13:Gross NPA trends (%) Pvt vs. PSU


Exhibit 14:Net NPA trends (%) Pvt vs. PSU


Exhibit 15:Gross NPA trend (%) for the banking industry


Exhibit 16:Net NPA trend (%) for the banking industry


2.963.19

3.123.20

3.06 2.892.65

2.552.45

2.322.53 2.56

2.64 2.58 2.59 2.61

2.712.96

1.50

1.80

2.10

2.40

2.70

3.00

3.30

3.60

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

Pvt Banks PSU Banks

1.311.39

1.15

1.05

0.900.78

0.62 0.62 0.59

1.04

1.22 1.26

1.27 1.21 1.18 1.26 1.28

1.53

0.30

0.50

0.70

0.90

1.10

1.301.50

1.70

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

Pvt Banks PSU Banks

2.37

2.46

2.36

2.432.47

2.40

2.27

2.43

2.73

2.10

2.20

2.30

2.40

2.50

2.60

2.70

2.80

2QF

Y10

3QF

Y10

4QF

Y10

1QF

Y11

2QF

Y11

3QF

Y11

4QF

Y11

1QF

Y12

2QF

Y12

1.06

1.16

1.09 1.08 1.07

1.00 0.98

1.04

1.28

0.90

1.00

1.10

1.20

1.30

1.40

2QF

Y10

3QF

Y10

4QF

Y10

1QF

Y11

2QF

Y11

3QF

Y11

4QF

Y11

1QF

Y12

2QF

Y12


8/21


November 24, 2011 8

The incremental increase in base rates by banks, trailing the hikes in repo rates by

the RBI over the past year (average increase of 250300bp in base rates), coupled

with the slowdown in economic activity over the same period (more than 100bp

drop in GDP) is likely to have made debt servicing more challenging forborrowers. With interest rates expected to remain high until the onset of FY2013

and sectors such as infra, real estates and exports continuing to face macro

headwinds, asset-quality concerns are expected to linger. However, that said,

incremental provisioning expenses in the current fiscal by banks on account of

switchover to system-based NPA recognition and to meet the increase in NPA

prudential norms and the mandated provision coverage ratio of 70% have led to a

high base. Hence, the percentage increase in actual provisioning expenses in the

P&L is not expected to increase significantly, even though genuine slippages are

expected to increase going forward.

Exhibit 17:Movement in yields* PSU banksBank Yield onAssets(%)

Prov. Cost toassets(%)Risk-adjustedyields(%)

Slippageratio(%)PCR(%)

CASAratio(%)Fee inc. toassets(%)

FY2013EP/ABV(x)FY11-13E EPSCAGR(%)

FY2013ERoE(%)PNB 8.8 0.8 8.0 1.6 75.1 37.1 0.87 1.00 9.9 20.6

CANBK 8.5 0.5 8.1 2.3 68.6 25.8 0.74 0.82 (3.0) 17.2

UNBK 8.4 0.9 7.7 4.8 60.5 32.1 0.65 0.78 5.2 17.0

J&KBK 8.5 0.3 8.3 0.8 92.0 38.2 0.46 0.78 12.0 17.8

INDBK 9.1 0.6 8.6 2.0 79.4 29.8 0.82 0.75 7.4 19.4

UCOBK 8.7 1.0 7.9 2.1 52.0 26.3 0.44 0.68 15.9 16.7

ALLBK 9.4 0.9 8.6 2.2 79.6 30.6 0.71 0.67 12.2 18.4

ANDHBK 9.8 0.8 9.2 6.1 61.7 26.1 0.57 0.66 (1.0) 15.6

SYNBK 8.9 1.0 8.0 3.6 78.5 30.5 0.58 0.64 11.8 16.3

OBC 8.9 1.0 8.0 6.3 63.8 22.9 0.61 0.64 5.1 14.1

CENTBK 8.8 0.8 8.2 3.8 56.8 32.8 0.43 0.63 (16.1) 13.9

VIJAYA 8.9 0.8 8.3 3.7 66.1 23.0 0.50 0.63 3.6 11.7

BOM 8.9 1.3 7.6 0.8 86.0 40.7 0.80 0.63 26.8 15.6

CRPBK 8.5 0.5 8.2 2.4 84.7 21.8 0.75 0.59 1.5 16.6

IDBI 9.1 0.6 8.5 2.4 70.1 19.2 0.67 0.59 12.3 14.0

IOB 8.9 1.2 7.6 3.6 71.8 27.5 0.77 0.57 20.0 15.9

UBI 8.4 1.1 7.5 4.6 65.0 39.9 0.48 0.51 12.4 14.0

DENABK 8.9 0.4 8.5 1.4 77.1 35.6 0.66 0.45 7.5 16.4

Source: Company, Angel Research; Note*: Yield on assets, Prov. cost to assets, Risk-adjusted yields to assets and fee income to assets as of 1HFY2012 for

all banks. Tier-I ratio, CASA ratio, slippage ratio, PCR for all banks as of 2QFY2012, #FY2013 P/ABV without adjusting for SASF. Closing prices as of

November 24, 2011


9/21


November 24, 2011 9

Exhibit 18:Most banks comfortable on the capital adequacy frontBank Tier-I (%) Tier-II (%) CAR (%)FEDBK 14.0 1.0 15.1

ICICIBK 13.1 5.9 19.0HDFCBK 11.4 5.1 16.5

J&KBK 11.3 2.3 13.6

SIB 10.8 2.7 13.5

OBC 9.9 2.7 12.6

INDBK 9.9 2.3 12.2

YESBK 9.4 6.6 16.0

DENABK 9.3 3.3 12.6

VIJAYA 9.2 3.5

CANBK 9.2 3.6 12.8

UTDBK 8.9 4.0 13.0

ALLBK 8.9 4.1

BOB 8.8 3.9 12.7

UCOBK 8.6 5.0 13.6

SYNBK 8.6 3.3 11.9

ANDBK 8.5 4.0

UNBK 8.5 4.0 12.5

AXSB 8.5 2.9

PNB 8.4 3.9 12.2

BOI 8.3 3.7 12.0

CRPBK 8.2 5.4 13.6

CENTBK 7.9 4.9 12.8

IDBI 7.8 5.6 13.3

SBI 7.5 3.9 11.4

BOM 7.1 4.8 11.9

IOB 7.0 5.4 12.4


Fee income growth for banks moderates during 1HFY2012

Fee income performance of banks under our coverage was moderate in

1HFY2012, registering growth of 8.7% qoq and 13.4% yoy. Compared to FY2011,most banks witnessed a decline in fee income to average assets in 1HFY2012

(average of ~10bp for our coverage universe), in-line with the drop in credit

growth over the last six months. Some of the mid-sized banks who revised their fee

charges such as BOM and UBI outperformed in terms of change in their fees as %

of average total assets. On the other hand, IOBs high fee growth was attributable

to unsustainably high credit growth, while others like Indian and Central Bank had

non core elements (income tax refund in case of Indian Bank and strong recoveries

for Central Bank of India). Otherwise, generally several banks including large Pvt

and PSU Banks saw modest fee income performance.


10/21


November 24, 2011 10

Exhibit 19:Other income (excl. treasury) performance for banks under our coverageBank Fee income2QFY12 Fee income1QFY12 % chg (qoq) Fee income2QFY11 % chg (yoy) Fee inc toassets (%) FY2011 Fee inc toassets (%) 1HFY2012 Diff.BOM 1,470 1,644 (10.6) 1,088 35.0 0.63 0.80 0.17

IOB 3,781 3,544 6.7 2,598 45.5 0.72 0.77 0.05

OBC 2,591 2,522 2.8 2,133 21.5 0.59 0.61 0.02

SYNBK 2,324 2,334 (0.4) 2,295 1.3 0.60 0.58 (0.01)

BOI 6,874 5,504 24.9 5,485 25.3 0.74 0.70 (0.04)

UTDBK 1,147 1,032 11.1 1,004 14.3 0.53 0.48 (0.04)

VIJAYA 997 1,144(12.9) 937 6.4 0.55 0.50 (0.04)

BOB 7,242 5,669 27.8 5,712 26.8 0.74 0.69 (0.05)

CENTBK 2,794 1,779 57.1 2,025 38.0 0.49 0.43 (0.06)

CANBK 6,793 6,038 12.5 4,980 36.4 0.82 0.74 (0.08)

UNBK 4,009 3,710 8.1 3,786 5.9 0.73 0.65 (0.08)

SIB 42 37 13.8 39 8.0 0.54 0.45 (0.09)ICICIBK 1,820 1,668 9.1 1,722 5.7 1.74 1.65 (0.10)

INDBK 3,213 2,023 58.8 2,637 21.9 0.93 0.82 (0.11)

UCOBK 1,618 1,904 (15.0) 2,143 (24.5) 0.55 0.44 (0.11)

PNB 7,839 9,097 (13.8) 6,583 19.1 0.98 0.87 (0.11)

J&KBK 627 569 10.3 563 11.4 0.59 0.46 (0.13)

CRPBK 2,755 2,554 7.9 2,217 24.3 0.87 0.75 (0.13)

IDBI 4,331 4,079 6.2 5,292 (18.2) 0.81 0.67 (0.14)

DENABK 1,094 1,230 (11.0) 1,190 (8.1) 0.79 0.66 (0.14)

AXSB 1,207 1,09810.0 925 30.5 2.02 1.87 (0.15)

HDFCBK 1,213 1,161 4.4 1,013 19.8 1.77 1.60 (0.17)

ALLBK 3,022 2,59916.3 3,077 (1.8) 0.89 0.71 (0.17)

SBI 3,399 3,365 1.0 3,813 (10.8) 1.28 1.10 (0.19)

ANDHBK 1,557 1,576(1.2) 1,731 (10.1) 0.76 0.57 (0.19)

FEDBK 103 101 2.0 130 (20.8) 0.99 0.75 (0.24)



11/21



Outlook and valuation

The broad lending and deposit rates seem to have settled down. Further, with the

RBI indicating a pause in monetary tightening at least for the next policy review, we

expect margins of banks to remain at relatively similar levels for the next twoquarters, as witnessed in 2QFY2012. However, leftover upward deposit re-pricing

coupled with increased saving deposit rates in cases of some banks could result in

marginal NIM contraction.

With interest rates having been at the higher-end for quite some time now and

macro headwinds continuing to hit sectors such as power, textile and real estate

where banks have significant exposures material asset-quality concerns have

started to emerge. While NPA ratios of most PSU banks were expected to

deteriorate during 2QFY2012 on account of switchover to system-based NPA

recognition, fresh slippages from agri-based and SME segments and

uncharacteristically higher NPAs from metals and exports-oriented sectors resultedin higher-than-estimated provisioning expenses for most banks under our

coverage.

Accordingly, we prefer banks with a more conservative asset-quality profile,

especially amongst mid caps (for instance, relatively lower yield on advances and

moderate credit growth) this includes banks such as Syndicate Bank and Bank of

Maharashtra. Also, from a medium-term perspective, we continue to prefer large

private banks with a strong structural investment case within which we prefer Axis

Bank and ICICI Bank from a valuation perspective.

Exhibit 20:PSU banks price band (P/ABV)*

Source: C-line, Angel Research, Note:* For PSU banks , excl. SBI and IDBI

Exhibit 21:Large Pvt. banks price band (P/ABV)


-

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

Apr-01

Nov-0

1

Jun-0

2

Jan-0

3

Aug-0

3

Mar-04

Oct-04

May-0

5

Dec-0

5

Jul-06

Feb-0

7

Sep-0

7

Apr-08

Nov-0

8

Jun-0

9

Jan-1

0

Aug-1

0

Mar-11

Oct-11

-

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

Apr-01

Nov-0

1

Jun-0

2

Jan-0

3

Aug-0

3

Mar-04

Oct-04

May-0

5

Dec-0

5

Jul-06

Feb-0

7

Sep-0

7

Apr-08

Nov-0

8

Jun-0

9

Jan-1

0

Aug-1

0

Mar-11

Oct-11


12/21



Sector-wise performance

Exhibit 22:Large PSUs P&LParameter 2QFY12 1QFY12 % chg(qoq) 2QFY11 % chg(yoy)NII 23,090 21,489 7.5 19,539 18.2

Other Income 7,701 7,361 4.6 7,565 1.8

Operating Profit 30,791 28,849 6.7 27,103 13.6

Operating Expenses 13,293 12,452 6.8 12,038 10.4

Pre provision profit 17,497 16,398 6.7 15,065 16.1

Provisions &Contingencies

7,230 7,207 0.3 5,049 43.2

PBT 10,267 9,190 11.7 10,017 2.5

Tax 2,874 3,426 (16.1) 3,064 (6.2)

Net Profit 7,393 5,764 28.3 6,952 6.3


Exhibit 23:Mid PSUs P&LParameter 2QFY12 1QFY12 % chg(qoq) 2QFY11 % chg(yoy)NII 13,200 12,097 9.1 11,620 13.6

Other Income 3,406 3,350 1.7 2,978 14.4





4,351 3,580 21.5 3,144 38.4

PBT 5,019 5,066 (0.9) 4,908 2.3

Tax 1,202 1,286 (6.5) 1,356 (11.3)

Net Profit 3,817 3,780 1.0 3,552 7.5


Exhibit 24:New Pvt. P&LParameter 2QFY12 1QFY12 % chg(qoq) 2QFY11 % chg(yoy)NII 8,868 8,295 6.9 7,501 18.2

Other Income 4,852 4,540 6.9 4,049 19.8





1,173 1,142 2.7 1,594 (26.4)

PBT 6,181 5,707 8.3 4,781 29.3

Tax 1,870 1,699 10.1 1,394 34.2

Net Profit 4,311 4,008 7.6 3,388 27.3


Exhibit 25:Old Pvt. P&LParameter 2QFY12 1QFY12 % chg(qoq) 2QFY11 % chg(yoy)NII 1,779 1,614 10.2 1,493 19.1

Other Income 636 624 1.9 674 (5.8)




Provisions &

Contingencies

210 336 (37.3) 404 (48.0)

PBT 966 788 22.5 711 35.8

Tax 286 204 40.2 195 46.3

Net Profit 680 584 16.4 516 31.8

Source: Company, Angel ResearchExhibit 26:DuPont analysis 1HFY2012 vs. FY2011

Large PSU Mid PSU New Pvt Old Pvt Grand TotalParameter FY2011 1HFY2012 FY2011 1HFY2012 FY2011 1HFY2012 FY2011 1HFY2012 FY2011 1HFY2012NII 2.8 2.8 2.8 2.7 3.1 3.0 2.9 2.8 2.8 2.8

(-) Prov. Exp. 0.7 0.9 0.7 0.8 0.6 0.4 0.6 0.4 0.7 0.8 Adj NII 2.1 1.9 2.1 1.9 2.5 2.6 2.3 2.3 2.2 2.0

Other Inc. 1.1 1.0 0.8 0.7 1.8 1.7 1.2 1.0 1.1 1.0

Op. Inc. 3.2 2.8 2.9 2.6 4.3 4.3 3.5 3.4 3.3 3.0

Opex 1.8 1.6 1.7 1.5 2.2 2.2 2.0 1.9 1.8 1.7

PBT 1.4 1.2 1.2 1.1 2.1 2.1 1.5 1.4 1.5 1.3

Taxes 0.5 0.4 0.3 0.3 0.6 0.6 0.4 0.4 0.5 0.4

RoA 0.9 0.8 0.9 0.8 1.5 1.5 1.0 1.0 1.0 0.9Leverage 19.6 19.2 21.0 19.6 10.5 10.7 13.4 13.3 17.2 16.8

RoE 18.7 15.9 18.4 15.9 15.7 15.8 13.9 13.8 17.6 15.8Source: Company, Angel Research


13/21



Banking indicators watchExhibit 27:Credit and deposit growth trends


Exhibit 28:Investment-deposit ratio


Exhibit 29:LAF borrowings high over the last fortnight


Exhibit 30:Wholesale rates remain steady

Source: Bloomberg, Angel Research

Exhibit 31:Forex reserves


Exhibit 32:ECB demand picks up on rate differential


-

5.0

10.0

15.0

20.0

25.0

30.0

Oct-08

Jan-0

9

Apr-09

Jul-09

Oct-09

Jan-1

0

Apr-10

Jul-10

Oct-10

Jan-1

1

Apr-11

Jul-11

Oct-11

Credit growth (%) Depos it growth (% )

27.0

28.0

29.0

30.0

31.0

32.0

70.0

72.0

74.0

76.0

78.0

Nov-1

0

Dec-1

0

Jan-1

1

Feb-1

1

Mar-11

Apr-11

May-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oct-11

Credit-to-Deposit ratio (%) Inv-to-Dep ratio (% , RHS)

(2,000)

(1,500)

(1,000)

(500)

-

500

1,000

Dec-1

0

Jan-1

1

Feb-1

1

Mar-11

Apr-11

May-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oct-11

Nov-1

1

(` bn)

6.0

7.0

8.0

9.0

10.0

11.0

12.0

Nov-1

0

Dec-1

0

Jan-1

1

Feb-1

1

Mar-11

Apr-11

May-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oct-11

Nov-1

1

CP 3M CP 12M

-

80

160

240

320

400

Sep-1

0

Oct-10

Nov-1

0

Dec-1

0

Jan-1

1

Feb-1

1

Mar-11

Apr-11

May-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oct-11

Nov-1

1

(US$ Bn)

1.1

3.1

0.81.1

3.4

2.7

1.4

5.6

2.1 2.7

3.3

4.23.7

-

1.0

2.0

3.0

4.0

5.0

6.0

Aug-1

0

Sep-1

0

Oct-10

Nov-1

0

Dec-1

0

Jan-1

1

Feb-1

1

Mar-11

Apr-11

May-1

1

Jun-1

1

Jul-11

Aug-1

1

(US$ bn)


14/21



Exhibit 33:Corporate and government bond yields


Exhibit 34:G-sec yields indicating close to cyclical peak


Lending and deposit rates

Exhibit 35:Lending (average base rate) watchBank Current (%) 3m ch. (bp) 6m ch. (bp) 1yr ch. (bp) AXSB 10.00 19 102 240

BOB 10.00 19 95 250

BOI 10.00 19 85 225

CANBK 10.00 4 56 225

HDFCBK 10.75 - 81 225

ICICIBK 10.75 - 83 225

IDBI 10.75 - 83 225

PNB 10.75 - 81 225

SBI 10.75 11 85 225

UNBK 10.75 - 81 225


Exhibit 36:Peak retail FD rate in 1-3 years maturityBank Current (%) over 2QFY12 over 1QFY12 over 2QFY11 AXSB 9.25 - -

BOB 9.35 - 35 210

BOI 9.25 - - 150

CANBK 9.25 - - 200

HDFCBK 9.25 - - 175

ICICIBK 9.25 - - 150

IDBI 9.50 - - 175

PNB 9.40 - 25 215

SBI 9.25 - - 200

UNBK 9.25 - - 200

Source: Company, Angel Research; Note: all changes in bp

Sectoral distribution of credit

Exhibit 37:Credit growth driven by industry and services sectorSector Sep 2010 Sep 2011(` cr) % of total (` cr) % of total % chg (yoy) Agriculture 401,93312.6 433,791 11.4 7.9

Industry 1,417,200 44.3 1,742,163 45.9 22.9

- Micro & Small 213,741 6.7 242,991 6.4 13.7

- Medium 148,768 4.7 195,666 5.2 31.5

- Large 1,054,691 33.0 1,303,507 34.3 23.6

Services 764,823 23.9 912,413 24.0 19.3

Personal Loans 615,195 19.2 708,526 18.7 15.2

- Housing 317,150 9.9 366,889 9.7 15.7

- Vehicle 70,374 2.2 83,981 2.2 19.3

Non-food Credit 3,199,151 100 3,796,893 100 18.7Source: RBI, Angel Research

9.6

6

9.6

0

9.6

6

9.7

4

8.7

0

8.8

4

8.8

7

8.8

8

9.8

3

9.7

4

9.7

2

9.7

4

8.2

9

8.4

9

8.4

8

8.4

1

7.0

7.5

8.0

8.5

9.0

9.5

10.0

AAA 1 YrAAA 3 YrAAA 5 YrAAA 10 YrGsec 1YrGsec 5YrGsec 7YrGsec 10Yr

31-Oct-11 31-May-11(%)

4.5

5.5

6.5

7.5

8.5

9.5

(1.0)

-

1.0

2.0

3.0

4.0

Jun-0

5

Jan-0

6

Aug-0

6

Mar-07

Oct-07

May-0

8

Dec-0

8

Jul-09

Feb-1

0

Sep-1

0

Apr-11

Nov-1

1

G-Sec 1Yr and 10Yr Spread (%) Repo Rate (%, RHS)


15/21



Industry-wise distribution of credit

Exhibit 38:Strong growth being witnessed in metalsIndustry

Sep 2010 Sep 2011(` cr) % of total (` cr) % of total % chg (yoy)

Infrastructure 469,621 33.1 564,958 32.4 20.3

Metals 176,306 12.4 230,161 13.2 30.5

Textiles 123,764 8.7 145,482 8.4 17.5

Engineering 82,987 5.9 101,632 5.8 22.5

Chemicals 88,348 6.2 96,670 5.5 9.4

Food Processing 68,153 4.8 85,516 4.9 25.5

Oil and Gas 57,098 4.0 64,062 3.7 12.2

Construction 42,661 3.0 50,977 2.9 19.5

Vehicles 40,9152.9 50,097 2.9 22.4

Gems & Jewellery 33,962 2.4 46,786 2.7 37.8

Other Industries 233,384 16.5 305,823 17.6 31.0

Total 1,417,199 100 1,742,164 100 22.9Source: RBI, Angel Research


16/21



Valuation watch

Exhibit 39:Private banks P/ABV trends*

Source: Company, Angel Research; Note: Private banks under our coverage

Exhibit 40:Public sector banks P/ABV trends


Exhibit 41:Large private banks P/ABV trends


Exhibit 42:Large public sector banks P/ABV trends


Exhibit 43:Small private banks P/ABV trends*

Source: Company, Angel Research; Note: Small pvt. banks under our coverage

Exhibit 44:Mid-cap* public sector banks P/ABV trends

Source: Company, Angel Research, Note*:Mid and small PSU banks

0.60

1.00

1.40

1.80

2.20

2.60

3.00

3.40

Mar-05

Sep-0

5

Mar-06

Sep-0

6

Mar-07

Sep-0

7

Mar-08

Sep-0

8

Mar-09

Sep-0

9

Mar-10

Sep-1

0

Mar-11

Sep-1

1

P/ABV Median 15th percentile 85th percentile

0.50

0.80

1.10

1.40

1.70

2.00

Mar-05

Aug-0

5

Jan-0

6

Jun-0

6

Nov-0

6

Apr-07

Sep-0

7

Feb-0

8

Jul-08

Dec-0

8

May-0

9

Oct-09

Mar-10

Aug-1

0

Jan-1

1

Jun-1

1


0.60

1.00

1.40

1.80

2.20

2.60

3.00

3.40

Mar-05

Sep-0

5

Mar-06

Sep-0

6

Mar-07

Sep-0

7

Mar-08

Sep-0

8

Mar-09

Sep-0

9

Mar-10

Sep-1

0

Mar-11

Sep-1

1


0.70

1.00

1.30

1.60

1.90

2.20

Mar-05

Aug-0

5

Jan-0

6

Jun-0

6

Nov-0

6

Apr-07

Sep-0

7

Feb-0

8

Jul-08

Dec-0

8

May-0

9

Oct-09

Mar-10

Aug-1

0

Jan-1

1

Jun-1

1


0.30

0.70

1.10

1.50

1.90

2.30

Mar-05

Sep-0

5

Mar-06

Sep-0

6

Mar-07

Sep-0

7

Mar-08

Sep-0

8

Mar-09

Sep-0

9

Mar-10

Sep-1

0

Mar-11

Sep-1

1


0.30

0.60

0.90

1.20

1.50

Mar-05

Aug-0

5

Jan-0

6

Jun-0

6

Nov-0

6

Apr-07

Sep-0

7

Feb-0

8

Jul-08

Dec-0

8

May-0

9

Oct-09

Mar-10

Aug-1

0

Jan-1

1

Jun-1

1



17/21



Economy watch

Exhibit 45:Quarterly GDP trends

Source: CSO, Angel Research

Exhibit 46:IIP trends

Source: MOSPI, Angel Research

Exhibit 47:Monthly WPI inflation trends

Source: MOSPI, Angel Research

Exhibit 48:Manufacturing and services PMI

Source: Markit, Angel Research

Exhibit 49:Exports and imports growth trends


Exhibit 50:Eight core industry growth rates for September


7.5

6.15.8

6.3

8.6

7.3

9.4

8.8 8.9

8.37.8 7.7

5.0

6.0

7.0

8.0

9.0

10.0

2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

(%) 11.4

6.4

8.17.5

6.7

9.4

5.36.2

9.5

3.8 3.6

1.9

-

2.0

4.0

6.0

8.0

10.0

12.0

Oct-10

Nov-1

0

Dec-1

0

Jan-1

1

Feb-1

1

Mar-11

Apr-11

May-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

(%)

8.2

9.5 9.5 9.59.7 9.7

9.6 9.59.4

9.8 9.7 9.7

7.0

7.5

8.0

8.5

9.0

9.5

10.0

Nov-1

0

Dec-10

Jan-11

Feb-11

Mar-11

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

(%)

48.0

50.0

52.0

54.0

56.0

58.0

60.0

62.0

Oct-10

Nov-1

0

Dec-10

Jan-11

Feb-11

Mar-11

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Mfg. PMI Services PMI

(15.0)

-

15.0

30.0

45.0

60.0

75.0

90.0

Oct-10

Nov-1

0

Dec-1

0

Jan-1

1

Feb-1

1

Mar-11

Apr-11

May-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Exports growth Imports growth(%

2.3

-17.8

0.1

-6.4

4.4

-2.1

6.6

0.9

8.9

-20

-15

-10

-5

0

5

10

OverallIndex

Coal

Crude

Oil

NaturalGas

Refinery

Products

Fertilizers

Steel

Cement

Electricity


18/21



Exhibit 51:Recommendation summaryCompany Reco. CMP(`) Tgt. price(`) Upside(%) FY2013EP/ABV (x) FY2013ETgt P/ABV (x) FY2013EP/E (x) FY2011-13EEPS CAGR (%) FY2013ERoA (%) FY2013ERoE (%) AxisBk Buy 937 1,32241.1 1.52 2.2 8.2 17.7 1.5 20.0

FedBk Buy 340 407 19.7 0.92 1.1 6.9 19.5 1.2 14.0

HDFCBk Accumulate 427 489 14.7 2.88 3.3 14.9 30.5 1.7 20.9

ICICIBk* Buy 727 1,027 41.3 1.33 1.9 10.7 23.3 1.4 15.4

SIB Accumulate 21 22 9.5 1.00 1.1 5.9 15.6 1.0 18.2

YesBk Buy 264 316 19.4 1.67 2.0 8.8 19.9 1.3 20.8

AllBk Neutral 147 -- 0.67 - 3.9 12.2 1.0 18.4

AndhBk Neutral 96 -- 0.66 - 4.3 (1.0) 0.9 15.6

BOB Buy 696 845 21.3 0.95 1.2 4.9 14.2 1.2 20.7

BOI Neutral 325 - - 0.96 - 5.6 13.4 0.7 16.9

BOM Buy 45 54 19.5 0.63 0.8 4.6 26.8 0.6 15.6

CanBk Buy 418 510 22.0 0.82 1.0 4.9 (3.0) 0.9 17.2CentBk Neutral 87 - - 0.63 - 4.4 (16.1) 0.5 13.9

CorpBk Buy 357 438 22.7 0.59 0.7 3.6 1.5 0.8 16.6

DenaBk Neutral 62 - - 0.45 - 2.9 7.5 0.8 16.4

IDBI# Neutral 91 - - 0.59 - 4.3 12.3 0.7 14.0

IndBk Accumulate 189 208 10.4 0.75 0.8 4.2 7.4 1.3 19.4

IOB Accumulate 91 103 14.0 0.57 0.7 3.6 20.0 0.6 15.9

J&KBk Neutral 742 - - 0.78 - 4.7 12.0 1.3 17.8

OBC Accumulate 266 291 9.4 0.64 0.7 4.7 5.1 0.8 14.1

PNB Accumulate 885 1,017 15.0 1.00 1.2 5.2 9.9 1.1 20.6

SBI* Buy 1,654 2,12728.6

1.30 1.7 7.1 33.9 0.9 20.0SynBk Buy 96 119 24.2 0.64 0.8 4.2 11.8 0.7 16.3

UcoBk Neutral 58 - - 0.68 - 3.5 15.9 0.7 16.7

UnionBk Buy 206 238 15.5 0.78 0.9 4.7 5.2 0.8 17.0

UtdBk Buy 57 70 22.3 0.51 0.6 3.4 12.4 0.6 14.0

VijBk Neutral 50 -- 0.63 - 5.3 3.6 0.4 11.7

Source: Company, Angel Research; Note:*Target multiples=SOTP Target Price/ABV (including subsidiaries), #Without adjusting for SASF, CMP as of 24th Nov


19/21



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

DISCLAIMERThis document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investmentdecision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make

such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies

referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and

risks of such an investment.

Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make

investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this

document are those of the analyst, and the company may or may not subscribe to all the views expressed within.

Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and

trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's

fundamentals.

The information in this document has been printed on the basis of publicly available information, internal data and other reliablesources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as thisdocument is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any wayresponsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report .Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify,nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. WhileAngel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory,compliance, or other reasons that prevent us from doing so.

This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,

redistributed or passed on, directly or indirectly.

Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or

other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in

the past.

Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in

connection with the use of this information.

Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to thelatest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may haveinvestment positions in the stocks recommended in this report.


20/21



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

Disclosure of Interest Statement

Analyst ownership Angel and its Group companies Angel and its Group companies' Broking relationshipof the stock ownership of the stock Directors ownership of the stock with company covered

Axis Bank No Yes Yes NFedral Bank No No No No

HDFC Bank No No No No

ICICI Bank No No No No

SIB No No No No

Yes Bank No No No No

Allahabad Bank No No No No

Andhra Bank No No No N

Bank of Baroda No No No No

Bank of India No No No No

Bank of Maharashtra No No No No

Canara Bank No No No NoCentral Bank No No No No

Corporation Bank No No No No

Dena Bank No No No No

IDBI No No No No

Indian Bank No No No No

IOB No No No No

J&K Bank No No No No

OBC No No No No

PNB No No No No

SBI No No Yes No

Syndicate Bank No No No No

UCO Bank No No No No

Union Bank No No No No

United Bank of India No No No No

Vijaya Bank No No No N


21/21


6th Floor, Ackruti Star, Central Road, MIDC, Andheri (E), Mumbai- 400 093. Tel: (022) 39357800Research Team

Fundamental:

Sarabjit Kour Nangra VP-Research, Pharmaceutical [email protected]

Vaibhav Agrawal VP-Research, Banking [email protected]

Shailesh Kanani Infrastructure [email protected]

Srishti Anand IT, Telecom [email protected]

Bhavesh Chauhan Metals & Mining [email protected]

Sharan Lillaney Mid-cap [email protected]

V Srinivasan Research Associate (Cement, Power) [email protected]

Yaresh Kothari Research Associate (Automobile) [email protected]

Shrinivas Bhutda Research Associate (Banking) [email protected]

Sreekanth P.V.S Research Associate (FMCG, Media) [email protected]

Hemang Thaker Research Associate (Capital Goods) [email protected]

Nitin Arora Research Associate (Infra, Real Estate) [email protected]

Ankita Somani Research Associate (IT, Telecom) [email protected]

Varun Varma Research Associate (Banking) [email protected]

Saurabh Taparia Research Associate (Cement, Power) [email protected]

Technicals:

Shardul Kulkarni Sr. Technical Analyst [email protected]

Sameet Chavan Technical Analyst [email protected]

Derivatives:

Siddarth Bhamre Head - Derivatives [email protected]

Institutional Sales Team:

Mayuresh Joshi VP - Institutional Sales [email protected]

Hiten Sampat Sr. AVP - Institutional Sales [email protected]

Meenakshi Chavan Dealer [email protected]

Gaurang Tisani Dealer [email protected]

Akshay Shah Dealer [email protected]

Production Team:

Simran Kaur Research Editor [email protected]

Dilip Patel Production [email protected]

Financials Result Review

Documents

Transcript of Financials Result Review