Indian Bank 4Q FY 2013

7/30/2019 Indian Bank 4Q FY 2013

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

Particulars (` cr) 4QFY13 3QFY13 % chg (qoq) 4QFY12 % chg (yoy)NII 1,107 1,143 (3.2) 1,083 2.3Pre-prov. profit 565 748 (24.5) 797 (29.2)

PAT 292 331 (11.6) 345 (15.4)Source: Company, Angel Research

For 4QFY2013, Indian Bank reported a subdued performance, both on operatingas well as on the asset quality front. Surge in employee expenses (more thandouble on a yoy basis, on account of higher provisioning for pension and otheremployee benefits), resulted in 69.4% yoy increase in operating expenses and29.2% yoy decline in pre-provisioning profits. However, aided by higher tax

write-backs (of `203cr during the quarter, as against a tax write-back of `110crin 4QFY2012) the decline in earnings was capped at 15.4%.

NIMs lower qoq; Asset quality pressures continue: During 4QFY2013, the banksadvances grew at a healthy pace of 17.0% yoy (up 6.8% qoq). Within advances,growth in the agriculture and retail book was robust at 27.3% and 17.9%respectively, while the corporate book grew moderate by 10.1% yoy. Growth indeposits also came in healthy at 17.5% yoy(5.1% qoq), while the low-cost CASAfranchise grew at a modest pace of 6.2% yoy (2.3% qoq) and hence, the CASAratio for the bank dipped by 295bp yoy (76bp qoq) to 27.6%. Reported NIMs forthe bank declined by 19bp qoq to 2.9%, on back of 52bp decline in yield onadvances to 10.6%. The banks non-interest income (excl treasury) grew at ahealthy pace of 19.4% yoy to `334cr. Growth in fee income was moderate at

12.8% yoy, while recoveries from written off accounts grew strongly by 53.3% yoyto `71cr. The bank continued to witness asset quality pressures during thequarter, as slippages remained elevated at ~`1,300cr (annualized slippage ratioof 5.8%) as against ~`1,400cr in 3QFY2013. Better recoveries/upgrades duringthe quarter(at `751cr compared to `190cr in 3QFY2013), amidst elevatedslippages, aided the bank to contain the sequential increase in Gross and NetNPA levels to 12.1% and 11.3% respectively. While the gross NPA ratio increasedby 15bp sequentially to 3.3%, the increase in the net NPA ratio was 9bp to 2.3%.The banks PCR remained stable at 60.1%. During the quarter, the bankrestructured advances worth `1,200cr, thereby taking its restructured book (statedborrower wise, after upgrading satisfactorily performing accounts) to `9,704cr.Going ahead, the restructuring pipeline for the bank under CDR stands at `1,100cr

Outlook and valuation:The stock currently trades at 0.6x FY2015E ABV, below itseight-year trading range (0.8x-1.3x) and median of 1.0x. Although, we remaincautious on the banks asset quality, recent underperformance of the stock, in ourview, over-discounts the asset quality concerns. Hence, we recommend a Buyrating on the stock, with a target price of `186.Key financials (Standalone)Y/E March (` cr) FY2012 FY2013 FY2014E FY2015ENII 4,418 4,524 4,981 5,696% chg 9.5 2.4 10.1 14.4

Net profit 1,747 1,581 1,637 1,862% chg 1.9 (9.5) 3.5 13.8

NIM (%) 3.5 3.1 3.0 3.0

EPS (`) 39.6 35.7 37.0 42.2P/E (x) 4.0 4.5 4.3 3.8

P/ABV (x) 0.8 0.7 0.6 0.6

RoA (%) 1.3 1.0 0.9 1.0

RoE (%) 20.4 16.1 14.8 15.1

Source: Company, Angel Research

BUYCMP `160

Target Price `186

Investment Period 12 months

Stock Info

Sector

Bloomberg Code

Shareholding Pattern (%)

Promoters 80.0

MF / Banks / Indian Fls 6.3FII / NRIs / OCBs 8.0

Indian Public / Others 5.7

Abs. (%) 3m 1yr 3yr

Sensex 3.0 22.8 18.0

INBK (13.3) (11.6) (24.0)

Banking

Market Cap (`cr) 6,889

Beta 1.0

52 Week High / Low 219/151

Avg. Daily Volume 44,320

Face Value (`) 10

BSE Sensex 20,213

Nifty 6,147

Reuters Code INBA.BO

INBK@IN

Vaibhav Agrawal022 3935 7800 Ext: 6808

[email protected]

Sourabh Taparia022 3935 7800 Ext: 6872

[email protected]

Akshay Narang022 3935 7800 Ext: [email protected]

Harshal Patkar022 3935 7800 Ext: 6847

Indian BankPerformance Highlights

4QFY2013 Result Update | Banking

May 15, 2013


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Indian Bank | 4QFY2013 Result Update

May 15, 2013 2

Exhibit 1:4QFY2013 performance (Standalone)4QFY13 3QFY13 % chg (qoq) 4QFY12 % chg (yoy) FY13 FY12 % chg

Interest earned 3,562 3,546 0.4 3,191 11.6 13,893 12,231 13.6- on Advances / Bills 2,700 2,685 0.6 2,414 11.9 10,607 9,424 12.6- on investments 847 845 0.2 773 9.6 3,238 2,790 16.1

- on balance with RBI & others 15 17 (11.1) 5 206.9 48 17 179.4

Interest Expended 2,455 2,403 2.1 2,108 16.4 9,368 7,813 19.9Net Interest Income 1,107 1,143 (3.2) 1,083 2.3 4,524 4,418 2.4Other income 460 240 91.7 307 50.0 1,287 1,180 9.1Other income excl. treasury 334 206 62.0 280 19.4 1,074 1,066 0.7

- Fee Income 263 167 57.6 234 12.8 880 933 (5.7)

- Treasury Income 126 34 271.7 27 364.0 213 114 87.5

- Recoveries from written off accounts 71 39 81.0 46 53.3 195 133 46.5

Operating income 1,568 1,384 13.3 1,390 12.8 5,811 5,598 3.8Operating expenses 1,003 636 57.9 592 69.4 2,751 2,187 25.8- Employee expenses 781 445 75.6 386 102.0 1,974 1,484 33.0

- Other Opex 222 191 16.5 206 8.1 777 703 10.5

Pre-provision Profit 565 748 (24.5) 797 (29.2) 3,060 3,411 (10.3)Provisions & Contingencies 476 412 15.5 562 (15.4) 1,235 1,195 3.3PBT 89 336 (73.6) 235 (62.2) 1,825 2,216 (17.6)Provision for Tax (203) 6 (3,549.6) (110) 84.7 245 469 (47.7)

PAT 292 331 (11.6) 345 (15.4) 1,580 1,747 (9.6)Effective Tax Rate (%) (228.3) 1.8 (23010)bp (46.7) (18162)bp 13.4 21.1 (772)bp


Exhibit 2:4QFY2013 Actual vs. Angel estimatesParticulars (` cr) Actual Estimates Var. (%)NII 1,107 1,182 (6.3)Non-interest income 460 284 62.3

Operating income 1,568 1,466 7.0Operating expenses 1,003 658 52.4

Pre-prov. profit 565 808 (30.1)Provisions & cont. 476 319 49.1

PBT 89 489 (81.8)

Prov. for taxes (203) 130 (256.0)PAT 292 359 (18.5)Source: Company, Angel Research


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May 15, 2013 3

Exhibit 3:4QFY2013 Performance (Standalone)4QFY13 3QFY13 % chg (qoq) 4QFY12 % chg (yoy)

Balance sheetAdvances (`cr) 105,643 98,945 6.8 90,324 17.0Deposits (`cr) 141,980 135,077 5.1 120,804 17.5

Credit-to-Deposit Ratio (%) 74.4 73.3 116bp 74.8 (36)bp

CASA deposits (`cr) 39,138 38,268 2.3 36,866 6.2

CASA ratio (%) 27.6 28.3 (76)bp 30.5 (295)bp

CAR (%) 13.1 13.1 1bp 13.5 (39)bp

Tier 1 CAR (%) 10.9 10.8 13bp 11.1 (25)bp

Profitability Ratios (%)Cost of deposits 7.1 7.1 (7)bp 6.8 28bp

Yield on advances 10.6 11.1 (52)bp 10.9 (29)bp

Reported NIM 2.9 3.1 (19)bp 3.2 (28)bp

Cost-to-income ratio 64.0 45.9 1806bp 42.6 2137bp

Asset qualityGross NPAs (` cr) 3,565 3,180 12.1 1,851 92.6

Gross NPAs (%) 3.3 3.2 15bp 2.0 130bp

Net NPAs (` cr) 2,384 2,142 11.3 1,197 99.2

Net NPAs (%) 2.3 2.2 9bp 1.3 93bp

Provision Coverage Ratio (%) 60.1 61.2 (109)bp 70.1 (999)bp

Slippage ratio (%) 5.8 6.3 (50)bp 5.5 26bp


Business growth remains moderate; NIMs lower qoq

During 4QFY2013, the banks advances grew at a healthy pace of 17.0% yoy (up

6.8% qoq). Within advances, growth in the agriculture and retail book was robust

at 27.3% and 17.9% respectively, while the corporate book grew moderate by

10.1% yoy. Going forward, the management has guided for advances book

growth to be in the range of 18-20% in FY2014.

On the liabilities side, growth in deposits also came in healthy rate of 17.5% yoy

(5.1% qoq), while the low-cost CASA franchise grew at a modest pace of 6.2% yoy

(2.3% qoq). Consequently, the CASA ratio for the bank dipped by 295bp yoy

(76bp qoq) to 27.6%.

Reported NIMs for the bank declined by 19bp qoq to 2.9%, on back of 52bp

decline in yield on advances to 10.6%. Yields on advances declined primarily on

account of interest reversal on slippages (`101cr in 4QFY2013) and base rate

reduction effected by the bank.

Healthy growth in Non-interest income (excl. treasury)

During 4QFY2013, the banks non-interest income (excl. treasury) grew at a

healthy pace of 19.4% yoy to `334cr. Growth in fee income was moderate at

12.8% yoy to `263cr, recoveries from written off accounts grew strongly by 53.3%

yoy during the quarter to `71cr. Treasury gains came in at `126cr as against

`27cr reported in 4QFY2012. Overall, the other income for the bank grew

strongly by 50% yoy to `460cr.


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May 15, 2013 4

Exhibit 4:Business growth moderate in 4QFY2013


Exhibit 5:CASA ratio declines sequentially


Exhibit 6:52bp qoq lower yields on assetsresult in...


Exhibit 7:...19bp qoq fall in reported NIM


Asset quality continue to witness pressures

During 4QFY2013, the bank continued to witness asset quality pressures, as

slippages for the quarter remained elevated at ~`1,300cr (annualized slippage

ratio of 5.8%) as against ~`1,400cr in 3QFY2013 (annualized slippage ratio of

6.3%). Recoveries/upgrades also came higher during the quarter at `751cr, as

compared to `190cr in 3QFY2013. Better recoveries/upgrades during the quarter,

amidst elevated slippages, aided the bank to contain the sequential increase in

Gross and Net NPA levels to 12.1% and 11.3% respectively. While the gross NPA

ratio increased by 15bp sequentially to 3.3%, the increase in the net NPA ratio was

9bp to 2.3%. The banks PCRremained stable at 60.1%.

During the quarter, the bank restructured advances worth `1,200cr, thereby taking

its restructured book (stated borrower wise, after upgrading satisfactorily

performing accounts) to `9,704cr. Going ahead, the restructuring pipeline for the

bank under CDR stands at `1,100cr.

20.0

13.8

10.8

13.3

17.0

14.2

15.0

12.9

13.5

17.5

74.8

73.9

72.4

73.3

74.4

70.0

72.0

74.0

76.0

-

5.0

10.0

15.0

20.0

25.0

4QFY12 1QFY13 2QFY13 3QFY13 4QFY13

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

30.5

29.3

29.0

28.3

27.6

13.0

8.8 9.8

6.56.2

-

10.0

20.0

25.0

26.0

27.0

28.0

29.0

30.0

31.0


CASA ratio CASA yoy growth (%, RHS)

10.9011.29 11.13 11.13

10.61

6.00

8.00

10.00

12.00


(%)

3.163.30

3.12 3.07

2.88

2.00

2.40

2.80

3.20

3.60


(%) Reported NIM


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May 15, 2013 5

Exhibit 8:Asset quality under pressure.....


Exhibit 9:...on back of substantial surge in slippages


Exhibit 10:Cost-to-income ratio higher qoq


Exhibit 11:Opex-to-average asset rise sharply


Investment arguments

Indian Bank's performance has broadly been positive and balanced since its listing

in 2007, leading to a gradual improvement in the quality of earnings.

Rural and semi-urban presence relatively high, moderate CASA

Indian Bank opened 143 branches in the last 12 months, taking its total branch

network to ~2,100 as of 4QFY2013. The bank has a higher proportion of ruraland 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 30%, with the CASA

registering a 15.2% CAGR during FY200913.

Investment concerns

Relatively high yields

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 FY2012 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

2.0

1.

7

2.

1

3.

2

3.3

1.3

1.0

1.3

2.2

2.3

70.175.1

71.0

61.2 60.1

-

20.0

40.0

60.0

80.0

0.2

0.7

1.2

1.7

2.2


Gross NPAs (%) Net NPAs (%) NPA coverage (%, RHS)

5.

5

1.

0

3.

3

6.

3

4.

9

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0


Slippages (%)

386

369

379

445

781

206

166

197

191

222

42.638.9 38.9

45.9

64.0

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

-

150

300

450

600

750

900

1,050

1,200


Staff exps (` cr) Other opex (` cr) CIR (%, RHS)

42.6

38.9

38.9

45.9

64.0

1.71.5 1.5

1.6

2.5

-

0.5

1.0

1.5

2.0

2.5

3.0

-

20.0

40.0

60.0

80.0


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


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May 15, 2013 6

past one year, with significant increase in slippages and higher restructuring.

Hence, we remain cautious on the banks asset quality and NIM outlook as in case

of other banks with unsustainably high yields.

Outlook and valuation

The stock currently trades at 0.6x FY2015E ABV, below its eight-year trading range

(0.8x-1.3x) and median of 1.0x.Although, we remain cautious on the banks asset

quality, recent underperformance of the stock, in our view, over-discounts the asset

quality concerns. Hence, we recommend a Buy rating on the stock, with a targetprice of `186.


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May 15, 2013 7

Exhibit 12:Key assumptionsParticulars (%) Earlier estimates Revised estimatesFY2014E FY2015E FY2014E FY2015ECredit growth 15.0 15.0 15.0 15.0Deposit growth 13.0 13.0 13.0 13.0

CASA ratio 28.9 28.9 26.9 26.9

NIM 3.1 3.1 3.0 3.0

Other income growth 3.7 7.5 (6.4) 6.5

Growth in staff expenses 15.0 10.0 5.0 3.0

Growth in other expenses 5.0 5.0 5.0 3.0

Slippages 2.5 2.4 2.5 2.4

Coverage ratio 67.5 70.0 62.5 65.0


Exhibit 13:Change in estimatesParticulars(` cr)

FY2014E FY2015EEarlierestimates Revisedestimates % chg Earlierestimates Revisedestimates % chg

NII 5,125 4,981 (2.8) 5,731 5,696 (0.6)

Non-interest income 1,151 1,204 4.6 1,238 1,282 3.6

Operating income 6,276 6,185 (1.4) 6,968 6,978 0.1Operating expenses 2,689 2,888 7.4 2,918 2,975 2.0

Pre-prov. profit 3,587 3,297 (8.1) 4,051 4,003 (1.2)Provisions & cont. 1,020 959 (6.0) 1,230 1,183 (3.8)

PBT 2,567 2,338 (8.9) 2,821 2,821 (0.0)

Prov. for taxes 872 701 (19.6) 959 959 (0.0)

PAT 1,694 1,637 (3.4) 1,862 1,862 (0.0)Source: Company, Angel Research

Exhibit 14:P/ABV band


0

100

200

300

400

500

600

Mar-07

Jun-07

Sep-07

Dec-07

Mar-08

Jun-08

Sep-08

Dec-08

Mar-09

Jun-09

Sep-09

Dec-09

Mar-10

Jun-10

Sep-10

Dec-10

Mar-11

Jun-11

Sep-11

Dec-11

Mar-12

Jun-12

Sep-12

Dec-12

Mar-13

Jun-13

Sep-13

Dec-13

Mar-14

Price(`) 0.5x 0.8x 1.1x 1.4x 1.7x


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May 15, 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 1,509 1,853 22.8 1.6 2.0 9.9 17.3 1.6 17.6

FedBk Neutral 477 - - 1.0 - 7.7 12.4 1.2 14.2

HDFCBk Neutral 715 - - 3.4 - 16.8 22.8 1.8 21.8

ICICIBk* Buy 1,192 1,444 21.2 1.7 2.1 12.4 15.5 1.5 15.6

SIB Accumulate 25 26 5.3 0.9 1.0 5.5 9.5 1.0 17.0

YesBk Neutral 527 - - 2.2 - 11.0 14.9 1.3 22.1

AllBk Buy 126 149 17.9 0.5 0.6 3.5 12.6 0.8 14.2

AndhBk Neutral 93 - - 0.6 - 4.1 (0.3) 0.7 13.0

BOB Buy 729 851 16.8 0.8 0.9 5.1 15.9 0.9 15.7

BOI Accumulate 328 361 10.1 0.7 0.8 4.8 21.6 0.7 15.0

BOM Accumulate 58 62 6.6 0.6 0.7 4.1 15.5 0.7 16.5

CanBk Accumulate 429 451 5.1 0.7 0.8 5.0 15.1 0.8 14.2CentBk Neutral 71 - - 0.6 - 3.9 48.4 0.6 13.8

CorpBk Buy 413 476 15.2 0.5 0.6 3.8 7.1 0.7 14.5

DenaBk Neutral 95 - - 0.5 - 3.7 5.0 0.7 15.1

IDBI# Neutral 90 - - 0.5 - 4.0 26.5 0.8 13.4

IndBk Buy 160 186 16.3 0.6 0.7 3.8 8.8 1.0 15.1IOB Neutral 64 - - 0.4 - 3.1 83.4 0.7 13.4

J&KBk Neutral 1,342 - - 1.0 - 6.7 (5.2) 1.2 16.0

OBC Neutral 270 - - 0.6 - 4.2 18.4 0.8 13.3

PNB Buy 823 993 20.7 0.7 0.9 4.6 14.8 1.1 16.5

SBI* Accumulate 2,385 2,669 11.9 1.3 1.5 8.5 16.4 1.0 17.0

SynBk Accumulate 130 137 5.0 0.6 0.7 4.3 (4.4) 0.7 15.9

UcoBk Reduce 82 77 (5.2) 0.8 0.8 5.6 36.9 0.6 12.6

UnionBk Accumulate 243 260 6.8 0.7 0.8 5.1 15.7 0.7 15.4

UtdBk Accumulate 59 64 8.1 0.4 0.4 2.8 40.4 0.7 14.7

VijBk Neutral 54 - - 0.6 - 4.8 9.6 0.4 12.0

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 2,089

branches (1418 ultra small branches) and a balance sheet size of ~`1.6lakh 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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May 15, 2013 9

Income statement (Standalone)Y/E March (` cr) FY10 FY11 FY12 FY13 FY14E FY15ENII 3,161 4,036 4,418 4,524 4,981 5,696- YoY Growth (%) 21.2 27.7 9.5 2.4 10.1 14.4Other Income 1,316 1,182 1,232 1,287 1,204 1,282- YoY Growth (%) 27.1 (10.2) 4.3 4.4 (6.4) 6.5

Operating Income 4,478 5,218 5,650 5,811 6,185 6,978- YoY Growth (%) 22.9 16.5 8.3 2.8 6.4 12.8

Operating Expenses 1,730 1,926 2,187 2,751 2,888 2,975- YoY Growth (%) 22.3 11.3 13.5 25.8 5.0 3.0

Pre-Provis ion Profit 2,747 3,292 3,463 3,060 3,297 4,003- YoY Growth (%) 23.3 19.8 5.2 (11.6) 7.7 21.4

Prov. & Cont. 396 657 1,195 1,234 959 1,183- YoY Growth (%) (10.6) 66.1 81.9 3.2 (22.3) 23.4

Profit Before Tax 2,352 2,634 2,268 1,826 2,338 2,821- YoY Growth (%) 31.7 12.0 (13.9) (19.5) 28.0 20.6

Prov. for Taxation 797 920 521 245 701 959- as a % of PBT 33.9 34.9 23.0 13.4 30.0 34.0

PAT 1,555 1,714 1,747 1,581 1,637 1,862- YoY Growth (%) 24.9 10.2 1.9 (9.5) 3.5 13.8

Preference Dividend 46 46 46 46 46 46PAT avl. To equity sh. 1,509 1,668 1,701 1,535 1,590 1,815- YoY Growth (%) 25.5 10.5 2.0 (9.8) 3.6 14.2

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 12,383 13,799

Deposits 88,228 105,804 120,804 141,980 160,438 181,294

- Growth (%) 21.6 19.9 14.2 17.5 13.0 13.0

Borrowings 657 800 3,783 1,800 2,024 2,280

Tier 2 Capital 300 1,300 1,090 1,063 1,036 1,010

Other Liab. & Prov. 3,932 4,293 4,941 6,007 6,437 7,037

Total Liabilities 101,389 121,718 141,419 162,823 183,148 206,251Cash Balances 7,061 6,878 6,319 7,099 7,220 8,158

Bank Balances 1,052 1,684 2,494 2,872 3,205 3,609

Investments 28,268 34,784 37,976 42,307 45,782 48,698

Advances 62,146 75,250 90,324 105,643 121,489 139,712

- Growth (%) 20.8 21.1 20.0 17.0 15.0 15.0

Fixed Assets 1,580 1,606 1,631 1,821 1,987 2,171

Other Assets 1,282 1,516 2,676 3,080 3,465 3,902

Total Assets 101,389 121,718 141,419 162,823 183,148 206,251- Growth (%) 20.5 20.1 16.2 15.1 12.5 12.6


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May 15, 2013 10

Ratio AnalysisY/E March FY10 FY11 FY12 FY13 FY14E FY15EProfitability ratios (%)NIMs 3.5 3.7 3.5 3.1 3.0 3.0Cost to Income Ratio 38.6 36.9 38.7 47.3 46.7 42.6

RoA 1.7 1.5 1.3 1.0 0.9 1.0

RoE 25.6 23.5 20.4 16.1 14.8 15.1

B/S ratios (%)CASA Ratio 32.2 30.9 30.6 27.6 26.9 26.9

Credit/Deposit Ratio 70.4 71.1 74.8 74.4 75.7 77.1

CAR 12.7 13.6 13.5 12.9 12.7 12.4

- Tier I 11.1 11.0 11.1 10.9 10.8 10.7

Asset Quality (%)Gross NPAs 0.8 1.0 2.0 3.3 3.9 4.4

Net NPAs 0.2 0.5 1.3 2.3 2.2 2.1

Slippages 1.1 1.5 2.5 3.8 2.5 2.4

Loan loss prov. /avg.assets

0.4 0.6 0.6 0.5 0.5 0.5

Provision Coverage 93.6 84.3 70.1 60.1 62.5 65.0

Per Share Data (`)EPS 35.1 38.8 39.6 35.7 37.0 42.2

ABVPS 154.7 184.4 210.4 221.5 250.6 284.6

DPS 6.5 7.5 7.5 6.6 7.0 8.0

Valuation RatiosPER (x) 4.6 4.1 4.0 4.5 4.3 3.8

P/ABVPS (x) 1.0 0.9 0.8 0.7 0.6 0.6

Dividend Yield 4.1 4.7 4.7 4.1 4.4 5.0

DuPont Analysis (%)NII 3.4 3.6 3.4 3.0 2.9 2.9

(-) Prov. Exp. 0.4 0.6 0.9 0.8 0.6 0.6

Adj. NII 3.0 3.0 2.4 2.2 2.3 2.3

Treasury 0.4 0.1 0.1 0.1 0.0 0.0

Int. Sens. Inc. 3.4 3.2 2.5 2.2 2.4 2.4

Other Inc. 1.0 0.9 0.9 0.8 0.7 0.6

Op. Inc. 4.4 4.1 3.4 3.0 3.0 3.0

Opex 1.9 1.7 1.7 1.8 1.7 1.5

PBT 2.5 2.4 1.7 1.2 1.4 1.4

Taxes 0.9 0.8 0.4 0.2 0.4 0.5

RoA 1.7 1.5 1.3 1.0 0.9 1.0Leverage (x) 15.3 15.3 15.3 15.5 15.7 15.8

RoE 25.6 23.5 20.4 16.1 14.8 15.1


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May 15 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

Indian Bank 4Q FY 2013

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