Yes Bank Result Updated

8/2/2019 Yes Bank Result Updated

1/14

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

Particulars (` cr) 4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy)NII 448 428 4.8 349 28.6Pre-prov. profit 430 399 7.9 349 23.4

PAT 272 254 7.0 203 33.6Source: Company, Angel Research

Yes Bank reported a strong performance for 4QFY2012. The banks net profit

grew by 33.6% yoy to `272cr, in-line with our estimates. Strong momentum in

savings account deposits and maintenance of healthy asset quality were the key

positive takeaways from the results. We recommend Buy on the stock.Momentum in savings account deposits keeps NIM stable sequentially: On a yoybasis, advances and deposit growth for the bank was below system-average at

10.5% and 7.0%, respectively. Credit substitutes portfolio for the bank, however,

continued to grow at a strong pace (growth of 104.5% yoy). Savings deposits

more than doubled sequentially to `2,501cr, with incremental saving deposits per

branch for the bank increasing significantly from `1.0cr in 3QFY2012 to `3.6cr

for 4QFY2012. The significant traction in SA deposits helped the bank maintain

its cost of funds sequentially, despite tight liquidity conditions that prevailed during

most of the quarter and additional borrowings during 4QFY2012. The banks

investment book as a proportion of interest-earning assets increased during

4QFY2012 on the back of healthy growth in credit substitutes, which led to

sequentially flat yields on assets for the bank. Consequently, the banks NIM

remained flat sequentially at 2.8%. During 4QFY2012, the banks non-interest

income grew strongly by 26.0% qoq to `266cr on account of strong growth in financial

markets (up 42.4% qoq) and financial advisory (up 26.6% qoq) based fee income.

Outlook and valuation: Yes Bank has taken challenges of building a retail depositbase head-on, nearly doubling its branch network over the past 15 months to

356 branches and aggressively increasing savings rate to 7% as a smart

customer-acquisition strategy. In our view, the bank is in a sweet spot, wherein

retail franchise growth is likely to remain strong as large banks cede some market

share to it rather than offering higher savings rates to their entire customer base.

Even with retail growth prospects being stronger now, valuations at 1.8x FY2014E

ABV are still cheaper than peers such as IndusInd Bank (2.4x FY2014 ABV) as well

as its own historical median (2.5x over FY2007-FY2012), providing a favorable

risk-return trade-off in our view. Hence, we recommend Buy on the stock with atarget price of `469.Key financialsY/E March (` cr) FY2011 FY2012 FY2013E FY2014ENII 1,247 1,616 2,103 2,731% chg 58.2 29.6 30.2 29.9

Net profit 727 977 1,196 1,466% chg 52.2 34.4 22.4 22.5

NIM (%) 2.7 2.6 2.7 2.8

EPS (`) 20.9 27.7 33.9 41.5P/E (x) 17.0 12.9 10.5 8.6

P/ABV (x) 3.3 2.7 2.2 1.8

RoA (%) 1.5 1.5 1.4 1.4

RoE (%) 21.1 23.1 23.1 23.3

Source: Company, Angel Research

BUYCMP `357

Target Price `469

Investment Period 12 Months

Stock Info

Sector Banking

Market Cap (` cr) 12,605

Beta 1.3

52 Week High / Low 389/231

Avg. Daily Volume 450,719

Face Value (`

) 10BSE Sensex 17,131

Nifty 5,189

Reuters Code YESB.BO

Bloomberg Code YES@IN

Shareholding Pattern (%)

Promoters 26.1

MF / Banks / Indian Fls 20.4

FII / NRIs / OCBs 47.2Indian Public / Others 6.4

Abs. (%) 3m 1yr 3yr

Sensex 0.1 (12.5) 50.9

Yes Bank 8.9 12.6 367.1

Vaibhav Agrawal022 3935 7800 Ext: 6808

[email protected]

Varun Varma022 3935 7800 Ext: 6847

[email protected]

Sourabh Taparia022 3935 7800 Ext: 6872

[email protected]

Yes BankPerformance Highlights

4QFY2012 Result Update | Banking

April 26, 2012


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Yes Bank | 4QFY2012 Result Update

April 26, 2012 2

Exhibit 1:4QFY2012 performance summaryParticulars (` cr) 4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy)Interest earned 1,785 1,684 6.0 1,223 46.0- on Advances / Bills 1,196 1,173 2.0 888 34.7- on investments 578 506 14.3 327 76.9

- on balance with RBI & others 6 5 28.5 6 4.5

- on others 4 1 678.9 1 231.3

Interest Expended 1,337 1,256 6.4 874 52.9Net Interest Income 448 428 4.8 349 28.6Other income 266 211 26.0 187 42.6- Financial markets 48 41 17.8 41 17.8

- Financial advisory 81 98 (17.6) 54 50.7

- Transaction banking 64 61 4.9 50 28.3

- Retail and others 19 14 30.8 17 7.5

Operating income 715 639 11.8 535 33.5Operating expenses 284 240 18.3 186 52.4- Employee expenses 134 122 9.9 103 29.8

- Other Opex 151 118 27.1 83 80.3

Pre-provision Profit 430 399 7.9 349 23.4Provisions & Contingencies 28 22 27.4 43 (34.2)PBT 402 376 6.7 306 31.5Provision for Tax 130 122 6.3 102 27.4PAT 272 254 7.0 203 33.6Effective Tax Rate (%) 32.4 32.5 (14)bp 33.4 (106)bp


Exhibit 2:4QFY2012 Actual vs. estimatesParticulars (` cr) Actual Estimates Var. (%)Net interest income 448 454 (1.3)

Other income 266 230 15.6

Operating income 715 684 4.4Operating expenses 284 265 7.1

Pre-prov. profit 430 419 2.7Provisions & cont. 28 27 3.8

PBT 402 392 2.6

Prov. for taxes 130 124 4.7

PAT 272 267 1.6Source: Company, Angel Research


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April 26, 2012 3

Exhibit 3:4QFY2012 performance analysisParticulars 4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy)Balance sheetAdvances (`cr) 37,989 35,868 5.9 34,364 10.5Deposits (`cr) 49,152 46,929 4.7 45,939 7.0

Credit-to-Deposit Ratio (%) 77.3 76.4 86bp 74.8 249bp

Savings deposits (`cr) 2,501 1,203 108.0 851 194.0

CASA deposits (`cr) 7,392 5,914 25.0 4,751 55.6

CASA ratio (%) 15.0 12.6 244bp 10.3 470bp

CAR (%) 17.9 16.1 181bp 16.5 144bp

Tier 1 CAR (%) 9.9 9.2 70bp 9.7 20bp

Profitability Ratios (%)Yield on advances 12.5 12.4 10bp 10.7 180bp

Cost of funds 9.0 8.9 10bp 7.8 120bp

Reported NIM 2.8 2.8 0bp 2.8 0bp

Cost-to-income ratio 39.8 37.6 219bp 34.8 493bp

Asset qualityGross NPAs (` cr) 84 72 16.4 81 4.1

Gross NPAs (%) 0.2 0.2 2bp 0.2 (1)bp

Net NPAs (`cr) 17 14 21.2 9 90.8

Net NPAs (%) 0.05 0.04 1bp 0.0 2bp

Provision Coverage Ratio (%) 79.2 80.0 (82)bp 88.6 (946)bp


Customer assets growth remains healthy

On a yoy basis, advances and deposit growth for the bank was below

system-average at 10.5% and 7.0%, respectively. Loan growth was primarily driven

by growth in branch banking, which increased by 67.7% yoy. Growth in both the

corporate segment and commercial segment remained muted on a yoy basis;

however, the bank continued to grow its credit substitutes portfolio at a strong pace

(up 104.5% yoy). Consequently, total customer assets (loans + credit substitutes)

registered healthy growth of 20.3% yoy.

Exhibit 4:Balance sheet yoy growth remain muted in 4QFY12


Exhibit 5:...however share of branch banking improved


54

.8

71

.4

26

.1

44

.1

12

.7

10

.2

15

.3

18

.910

.5

7.0

-

20.0

40.0

60.0

80.0

Advances yoy growth (%) Deposits yoy growth (%)

(%)4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

65 63 61 63 60

23 24 24 21 22

12 12 15 15 18

-

20

40

60

80

100

4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

(%) Corp. and Insti. Banking Commercial Banking Branch Banking


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April 26, 2012 4

Strong traction in savings deposits post savings rate

deregulation

The bank had aggressively hiked savings account interest rates immediately post

the de-regulation, which is leading to a paradigm shift in the banks franchise

from a predominantly wholesale franchise to one that will increasingly have a

much needed retail play as well.

Highlighting the strong traction, savings account deposits more than doubled

sequentially to `2,501cr (almost tripled on an absolute basis since the savings

deposit rate deregulation in October 2011). The bank opened ~1lakh new

accounts during 4QFY2012 as compared to the quarterly run-rate of ~25,000

prior to savings rate deregulation.

In fact, incremental saving deposits per branch for the bank increased from `1.0cr

in 3QFY2012 to `3.6cr for 4QFY2012 and was higher than the `1.8cr achievedby IndusInd Bank during the quarter. Consequently, CASA ratio for the bank

increased substantially by 244bp qoq (470bp yoy) to 15.0. The share of retail

deposits (CASA and retail banking term deposits) has now risen to 32.7% of total

deposits from 23.5% a year ago, thereby reducing the banks dependence on

higher costing bulk corporate deposits.

During the quarter, the bank opened 25 branches (taking its network size to 356

branches). Management has guided for annual additions of 125+ branches going

forward.

Exhibit 6:CASA deposits growth picks up strongly...


Exhibit 7:...leading to a 244 bp qoq jump in CASA ratio


Exhibit 8:Incremental saving account deposits for Yes Bank higher than IndusIndParticulars SA4QFY12 SA3QFY12 SAqoq (%) Branch

Inc SA/branch in4QFY12Inc SA/branch in3QFY12

Yes Bank 2,501 1,203 108.0 356 3.6 1.0IndusInd Bank 4,694 3,977 18.0 400 1.8 1.9


68.6

49.8

19.7

46.555.6

-

35.0

70.0

105.0


(%)

10.310.9 11.0

12.6

15.0

6.0

8.0

10.0

12.0

14.0

16.0


(%)


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April 26, 2012 5

NIM flat on a sequential basis

The significant traction in savings account deposits helped the bank maintain its

cost of funds sequentially (up marginally by 10bp qoq) despite the tight liquidity

conditions that prevailed during most of the quarter and additional borrowings

during 4QFY2012. The banks investment book as a proportion of interest earning

assets increased during the quarter on the back of healthy growth in credit

substitutes, which led to sequentially flat yields on assets for the bank.

Consequently, the banks NIM remained flat sequentially at 2.8%.

Exhibit 9:Rise in cost of funds by 10bp qoq...


Exhibit 10:...offset by 10bp rise in YoA, leading to flat NIM


Non-interest income growth remains strong

During 4QFY2012, the banks non-interest income grew strongly by 26.0% qoq to

`266cr on account of strong growth in financial markets (up 42.4% qoq) and

financial advisory (up 26.6% qoq) based fee income. The traction in fee income

was primarily on account of higher loan sell-downs, debt syndication and

underwritings during the quarter. Gain from sale of corporate and government

bonds also led to higher treasury income for the bank during 4QFY2012.

As of 4QFY2012, the banks credit substitute portfolio stands at ~`8,000cr. The

expected downward trajectory in interest rates going ahead could lead to higher

MTM gains for the bank on its credit substitute portfolio (average duration of 2.5

years).

Exhibit 11:Overall other income growth remains healthy at 42.6% yoyParticulars (` cr) 4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy)Financial markets 69 48 42.4 24 185.5

Financial advisory 102 81 26.6 77 32.1

Transaction banking 70 64 9.5 65 7.0

Retail and others 26 19 36.9 20 27.4

Other income 266 212 26.0 187 42.6Source: Company, Angel Research

7.8

8.5 8.68.9 9.0

5.0

6.0

7.0

8.0

9.0


(%)

2.8 2.8

2.9

2.8 2.8

2.4

2.6

2.8

3.0


(%)


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April 26, 2012 6

Strong asset quality maintained

The bank maintained its strong asset-quality profile during the quarter as well, with

gross NPA ratio and the net NPA ratio remaining stable at marginal 0.22% (0.2%

in 3QFY2012) and 0.05% (0.04% in 3QFY2012), respectively. Provision coverage

ratio (excluding technical write-offs) remained healthy at 79.2%. Restructured

advances remained under control at 0.53% of average total assets.

Exhibit 12:Asset quality still amongst the best in industry


Operating costs rise on one-off expenses related to borrowing fees

Cost-to-income ratio for the bank increased by ~220bp qoq (due to one-off

expense related to fees on tier-2 and foreign currency borrowings during

4QFY2012), however it remained healthy at 39.8%. The bank recruited 629

employees in 4QFY2012, leading to a 29.8% yoy increase in staff expenses.

Considering the robust branch expansion plans (annual additions of 125+

branches) and continued recruitment of employees, we have factored in operating

expenses growth to be 37.0% yoy and 31.0% yoy for FY2013 and FY2014,

respectively.

Exhibit 13:Branch expansion gaining traction


Exhibit 14:Opex ratios increase on a yoy basis


81 56 69 72 849 3 14 14 17

89

95

80 80 79

50

60

70

80

90

100

-

20

40

60

80

100


Gross NPA (` cr, LHS) Net NPA ( cr , LHS) NPA coverage % (RHS)

214

255

305331

356

50

100

150

200

250

300

350

400


1.3 1.3 1.4 1.4 1.6

34.8

37.4

35.6

37.6

39.8

1.0

1.2

1.4

1.6

30.0

32.5

35.0

37.5

40.0

42.5


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


7/14


April 26, 2012 7

Capital adequacy continues to be strong

The banks capital adequacy ratio (CAR) continued to be strong at 17.9%, with

tier-I ratio at 9.9%. The improvement in tier-1 ratio (9.7% in 3QFY2012 including

9MFY2012 profits) was aided by issue of `150cr of tier-1 perpetual bonds during

the quarter. Overall, the bank raised `2,210cr of tier-I and tier-II bonds in

FY2012, which according to management is expected to support the banks

growth for the next 12-18 months. Yes Bank plans to raise `2,000-2,500cr of

equity capital via GDR or QIP route in the later part of the current fiscal to support

its future business growth.

Exhibit 15:Capital adequacy remains healthy


9.7 9.6 9.4 9.2 9.9

6.8 6.6 6.6 6.98.0

16.5 16.2 16.0 16.1

17.9

-

5.0

10.0

15.0

20.0


Tier-I CAR (%) Tier-II CAR (%)


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April 26, 2012 8

Investment arguments

Savings rates deregulation aiding retail customer acquisition

Yes Bank had aggressively hiked savings interest rates immediately post the

deregulation, which is leading to a paradigm shift in the banks franchise from a

predominantly wholesale franchise to one that will increasingly have a much

needed retail play as well.

Savings rate deregulation does not allow banks to offer differential rates to

different groups of customers and, hence, it would be unfavorable for larger

players to offer higher rates to their entire customer base just to protect some

amount of market share from competition from smaller players such as Yes Bank

(~33,000 branches and `8lakh cr savings deposits for large banks compared to

~350 branches and `2,501cr savings deposits for Yes Bank). While the loss in

market share for larger players would be minor, the gain for smaller banks suchas Yes Bank offering higher savings rates is expected to be significant, especially

considering the low bases of their retail franchises.

Yes Bank has witnessed strong traction in its savings deposits with SA deposits

more than doubling sequentially and almost tripling on an absolute basis since the

savings rate deregulation in October 2011. Even incremental saving deposits per

branch for the bank increased from `1.0cr in 3QFY2012 to `3.6cr for 4QFY2012

and was higher than the `1.8cr achieved by IndusInd Bank during the quarter.

We expect the strong pace in savings deposit accretion for the bank to continue

going ahead as well.

A-list management and ability to raise capital

Yes Bank has an A-list top management team, which brings to the table rich

experience from the best banks in India, including Bank of America, ABN AMRO,

Citibank, ICICI Bank, Rabo India and HDFC Bank. The banks performance also

benefits from managements ability to raise equity capital (at increasing,

book-accretive premiums).

Book-accretive equity capital raising likely in the next 12 months

Yes Bank plans to grow its customer asset base at 30-35% for the next 2-3 years,

leading to higher capital requirements. The bank is planning to raise

`2,000-2,500cr of equity capital via GDR or QIP route in the later part of the

current fiscal to support its future business growth. Capital raising is likely to be

book-accretive and will aid in further enhancing the bank's credit market share

going forward.

Strong asset quality

The bank has maintained strong asset quality in spite of growing at a fast clip over

the past few years (gross and net NPA ratios at just 0.22% and 0.05%,

respectively), which has been aided by the smaller size of its balance sheet so far.

The banks provision coverage ratio even without inclusion of technical write-offsremained healthy at 79.2% in 4QFY2012. The bank has also been astute in

managing its growth rate and asset-liability durations in-line with the changing

external environment.


9/14


April 26, 2012 9

Investment concerns

Medium-term downside risks to RoAs

The banks credit market share has steadily increased on the back of a robustcredit CAGR of 41.7% over FY2008-12, which at 0.8% represents an increasingly

meaningful market share. The bank has so far managed to source loans with

relatively above-average profitability, keeping its NIM above 2.7% since FY2009,

in spite of just 15.0% CASA ratio. Going forward though, as the size of the balance

sheet increases, we believe RoA compression remains a risk to the bank. Having

said that, the recent deregulation of savings account rates and the consequent

strong accretion of SA deposits for Yes Bank are likely to aid in countering this

impact.

Outlook and valuation

Yes Banks growth as well as managements track record has been excellent,

so far. However, as the banks balance sheet size continues to increase, it remains

to be seen whether it can continue to source as profitable lending opportunities as

its current loan portfolio. On the liabilities side, building a savings deposit

franchise involves execution risks.

However, Yes Bank has taken challenges of building a retail deposit base head-on

and has nearly doubled its branch network over the past 15 months to 356

branches and aggressively increased savings rate to 7% as a smart customer-

acquisition strategy. The bank has been able to almost triple its savings deposits

base since the savings deposit rate deregulation in October 2011. In our view, the

bank is in a sweet spot, wherein retail franchise growth is likely to remain strong as

large banks cede some market share to it rather than offering higher savings rates

to their entire customer base. Even with retail growth prospects being stronger

now, valuations at 1.8x FY2014E ABV are still cheaper than peers such as IndusInd

Bank (Bloomberg consensus of 2.4x FY2014 ABV) as well as its own historical

median (2.5x over FY2007-FY2012), providing a favorable risk-return trade-off in

our view. Hence, we recommend Buy on the stock with a target price of `469.Exhibit 16:Key assumptionsParticulars (%) Earlier estimates Revised estimates

FY2013 FY2014 FY2013 FY2014Credit growth 27.0 29.0 24.0 25.0

Deposit growth 28.0 29.0 25.0 25.0

CASA ratio 19.5 23.5 20.1 25.1

NIMs 2.8 2.9 2.7 2.8

Other income growth 27.4 31.0 29.0 27.7

Growth in staff expenses 33.8 34.0 37.0 31.0

Growth in other expenses 33.8 34.0 37.0 31.0

Slippages 0.5 0.7 0.5 0.8

Source: Angel Research


10/14


April 26, 2012 10

Exhibit 17:Change in estimatesParticulars (` cr) FY2013 FY2014Earlierestimates Revisedestimates Var. (%) Earlierestimates Revisedestimates Var. (%)NII 2,115 2,103 (0.6) 2,748 2,731 (0.6)

Non-interest income 1,046 1,106 5.7 1,371 1,413 3.1

Operating income 3,161 3,209 1.5 4,118 4,144 0.6Operating expenses 1,222 1,278 4.5 1,638 1,674 2.2

Pre-prov. profit 1,939 1,932 (0.4) 2,481 2,470 (0.4)Provisions & cont. 174 161 (7.3) 313 301 (3.8)

PBT 1,766 1,771 0.3 2,168 2,170 0.1

Prov. for taxes 573 574 0.3 704 704 0.1

PAT 1,193 1,196 0.3 1,465 1,466 0.1Source: Angel Research

Exhibit 18:P/ABV band


0

100

200

300

400

500

600

Jul-05

Dec-0

5

May-0

6

Oc

t-06

Mar-

07

Aug-0

7

Jan-0

8

Jun-0

8

Nov-0

8

Apr-

09

Sep-0

9

Fe

b-1

0

Jul-10

Dec-1

0

May-1

1

Oc

t-11

Mar-

12

Aug-1

2

Jan-1

3

Price (`) 1x 1.5x 2x 2.5x 3x


11/14


April 26, 2012 11

Exhibit 19:Recommendation summaryCompany Reco. CMP(`) Tgt. price(`) Upside(%) FY2014EP/ABV (x) FY2014ETgt P/ABV (x) FY2014EP/E (x) FY2012-14EEPS CAGR (%) FY2014ERoA (%) FY2014ERoE (%)AxisBk Buy 1,086 1,550 42.7 1.5 2.2 8.0 16.5 1.5 20.4

FedBk Neutral 408 - - 1.0 - 7.1 13.0 1.3 14.5

HDFCBk Neutral 541 - - 3.1 - 15.2 27.0 1.7 22.1

ICICIBk* Buy 842 1,135 34.9 1.4 1.9 10.8 19.8 1.4 16.2

SIB Neutral 24 - - 1.0 - 6.0 6.7 0.9 17.7

YesBk Buy 357 469 31.5 1.8 2.4 8.6 22.5 1.4 23.3AllBk Buy 165 205 24.6 0.6 0.8 4.0 (2.1) 1.0 17.0

AndhBk Accumulate 115 125 8.3 0.7 0.8 4.3 6.5 1.0 16.7

BOB Buy 767 943 23.0 0.9 1.1 5.0 12.2 1.1 19.2

BOI Buy 331 392 18.4 0.8 1.0 5.1 21.3 0.8 16.5

BOM Buy 51 62 21.7 0.6 0.8 3.8 26.8 0.9 17.5

CanBk Buy 441 532 20.7 0.7 0.9 4.6 10.9 0.9 16.7CentBk Neutral 96 - - 0.8 - 4.8 45.7 0.5 13.8

CorpBk Buy 401 508 26.7 0.6 0.7 3.6 2.5 0.8 16.2

DenaBk Buy 91 118 29.8 0.6 0.7 3.6 6.2 0.9 16.9

IDBI# Accumulate 104 117 12.8 0.6 0.7 4.3 22.7 0.9 14.8

IndBk Accumulate 212 240 13.3 0.7 0.8 4.3 5.4 1.2 18.2

IOB Buy 87 104 19.7 0.5 0.7 4.1 29.9 0.6 13.9

J&KBk Neutral 903 - - 0.8 - 4.6 8.8 1.4 18.6

OBC Buy 235 296 26.2 0.5 0.7 3.9 17.1 0.8 13.6

PNB Buy 849 1,138 34.0 0.8 1.1 4.7 8.8 1.1 18.5

SBI* Buy 2,159 2,593 20.1 1.4 1.6 8.0 23.6 1.0 19.1

SynBk Buy 98 128 30.0 0.6 0.8 3.6 8.7 0.8 17.2

UcoBk Neutral 76 - - 0.7 - 4.0 7.7 0.7 16.2

UnionBk Buy 219 266 21.4 0.7 0.9 4.4 27.2 0.8 17.4

UtdBk Buy 64 87 37.0 0.5 0.7 2.9 11.4 0.7 16.0

VijBk Neutral 55 - - 0.7 - 4.8 14.2 0.5 13.2

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


12/14


April 26, 2012 12

Income statement

Y/E March (` cr) FY08 FY09 FY10 FY11 FY12 FY13E FY14ENet Interest Income 331 511 788 1,247 1,616 2,103 2,731- YoY Growth (%) 92.9 54.6 54.1 58.2 29.6 30.2 29.9Other Income 361 435 576 623 857 1,106 1,413- YoY Growth (%) 79.7 20.6 32.3 8.3 37.5 29.0 27.7

Operating Income 691 946 1,363 1,870 2,473 3,209 4,144- YoY Growth (%) 85.8 36.9 44.1 37.2 32.2 29.8 29.1

Operating Expenses 341 419 500 680 933 1,278 1,674- YoY Growth (%) 76.3 22.7 19.5 35.9 37.2 37.0 31.0

Pre - Provision Profit 350 528 863 1,190 1,540 1,932 2,470- YoY Growth (%) 96.0 50.7 63.6 37.9 29.4 25.4 27.9

Prov. & Cont. 44 62 137 98 90 161 301- YoY Growth (%) 24.9 41.6 121.6 (28.2) (8.1) 78.6 86.7

Profit Before Tax 306 466 726 1,092 1,450 1,771 2,170- YoY Growth (%) 113.3 52.0 55.9 50.3 32.8 22.1 22.5

Prov. for Taxation 106 162 249 365 473 574 704- as a % of PBT 34.7 34.8 34.2 33.4 32.6 32.4 32.4

PAT 200 304 478 727 977 1,196 1,466- YoY Growth (%) 111.9 51.9 57.2 52.2 34.4 22.4 22.5

Balance sheetY/E March (` cr) FY08 FY09 FY10 FY11 FY12 FY13E FY14EShare Capital 296 297 340 347 353 353 353Reserves & Surplus 1,023 1,327 2,750 3,447 4,324 5,335 6,555

Deposits 13,273 16,169 26,799 45,939 49,152 61,440 76,800

- Growth (%) 61.5 21.8 65.7 71.4 7.0 25.0 25.0

Borrowings 986 2,189 2,564 3,333 6,002 7,503 9,337

Tier 2 Capital 728 1,513 2,185 3,358 8,154 10,111 12,639

Other Liab. & Prov. 677 1,405 1,745 2,583 5,677 7,336 8,899

Total Liabilities 16,982 22,901 36,383 59,007 73,662 92,078 114,582Cash Balances 959 1,278 1,995 3,076 2,333 2,458 3,072

Bank Balances 668 645 678 420 1,253 1,566 1,949

Investments 5,094 7,117 10,210 18,829 27,757 35,541 43,958

Advances 9,430 12,403 22,193 34,364 37,989 47,106 58,882

- Growth (%) 49.9 31.5 78.9 54.8 10.5 24.0 25.0

Fixed Assets 101 131 115 132 177 215 259

Other Assets 730 1,327 1,191 2,186 4,153 5,192 6,461

Total Assets 16,982 22,901 36,383 59,007 73,662 92,078 114,582- Growth (%) 52.9 34.8 58.9 62.2 24.8 25.0 24.4


13/14


April 26, 2012 13

Ratio analysis

Y/E March FY08 FY09 FY10 FY11 FY12 FY13E FY14EProfitability ratios (%)NIMs 2.5 2.7 2.8 2.7 2.6 2.7 2.8Cost to Income Ratio 49.4 44.2 36.7 36.3 37.7 39.8 40.4

RoA 1.4 1.5 1.6 1.5 1.5 1.4 1.4

RoE 19.0 20.6 20.3 21.1 23.1 23.1 23.3

B/S ratios (%)CASA Ratio 8.5 8.7 10.5 10.3 15.0 20.1 25.1

Credit/Deposit Ratio 71.0 76.7 82.8 74.8 77.3 76.7 76.7

CAR 13.6 16.6 20.6 16.5 23.8 23.5 23.4

- Tier I 8.5 9.5 12.9 9.7 9.6 9.3 9.1

Asset Quality (%)Gross NPAs 0.1 0.7 0.3 0.2 0.2 0.2 0.1

Net NPAs 0.0 0.4 0.1 0.0 0.0 0.0 0.0

Slippages 0.2 0.9 0.9 0.2 0.3 0.5 0.8

Loan Loss Prov. /Avg. Assets 0.0 0.3 0.3 0.1 0.1 0.1 0.2

Provision Coverage 80.0 48.5 78.4 88.6 79.2 79.1 79.1

Per Share Data (`)EPS 6.8 10.2 14.1 20.9 27.7 33.9 41.5

ABVPS (75% cover.) 44.6 53.9 91.0 109.3 132.5 161.1 195.7

DPS - - 1.5 2.5 4.0 4.5 6.0

Valuation RatiosPER (x) 52.8 34.9 25.4 17.0 12.9 10.5 8.6

P/ABVPS (x) 8.0 6.6 3.9 3.3 2.7 2.2 1.8

Dividend Yield - - 0.4 0.7 1.1 1.3 1.7

DuPont AnalysisNII 2.4 2.6 2.7 2.6 2.4 2.5 2.6

(-) Prov. Exp. 0.3 0.3 0.5 0.2 0.1 0.2 0.3

Adj. NII 2.0 2.3 2.2 2.4 2.3 2.3 2.4

Treasury 0.4 0.7 0.3 (0.1) 0.0 0.0 0.0

Int. Sens. Inc. 2.5 3.0 2.5 2.3 2.3 2.4 2.4

Other Inc. 2.1 1.4 1.6 1.4 1.2 1.3 1.3

Op. Inc. 4.6 4.4 4.1 3.7 3.6 3.7 3.7

Opex 2.4 2.1 1.7 1.4 1.4 1.5 1.6PBT 2.2 2.3 2.5 2.3 2.2 2.1 2.1

Taxes 0.8 0.8 0.8 0.8 0.7 0.7 0.7

RoA 1.4 1.5 1.6 1.5 1.5 1.4 1.4Leverage 13.3 13.6 12.6 13.9 15.7 16.0 16.4

RoE 19.0 20.6 20.3 21.1 23.1 23.1 23.3


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