Indian Bank, 1Q FY 2014

7/27/2019 Indian Bank, 1Q FY 2014

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

Particulars (` cr) 1QFY14 4QFY13 % chg (qoq) 1QFY13 % chg (yoy)NII 1,097 1,107 (1.0) 1,153 (4.9)Pre-prov. profit 859 565 52.2 840 2.3

PAT 317 292 8.6 462 (31.3)Source: Company, Angel Research

Indian Bank reported a weak operating performance for 1QFY2014, as its NII

de-grew by 4.9% yoy. Boosted by treasury gains of `314cr as against `22cr in

1QFY2013, the non-interest income grew strongly by 137.8% yoy to `530cr,

thereby enabling a growth in pre-provisioning profit of 2.3% yoy. The bank

witnessed moderate asset quality pressure, as Gross and Net NPA levels

increased sequentially by around 4.4% each. The provisioning expenses for the

bank more than doubled yoy, hence earnings de-grew by 31.3% yoy.

NIM lower qoq; Asset quality pressures continue:During 1QFY2014, the banksadvances grew at a healthy pace of 16.3% yoy (up 3.4% qoq). Within advances,

growth in the agriculture and retail book grew at a relatively higher 21.1% yoy.

Deposits growth also came in healthy at 17.8% yoy (5.4% qoq), while the low-cost

CASA franchise grew at a modest pace of 7.9% yoy (2.7% qoq).Consequently,

the CASA ratio for the bank dipped by 245bp yoy (70bp qoq) to 26.9%.Reported

NIM for the bank declined by 14bp qoq to 2.7%, on back of 16bp decline in yield

on advances to 10.5%. During 1QFY2014, the banks non-interest income (excl.

treasury) grew at a moderate pace of 7.4% yoy to `215cr. Growth in fee income

was moderate at 6.8% yoy to`

147cr, while recoveries from written off accountscame in at `21cr as against `32cr in 1QFY2013.During 1QFY2014, slippages

for the bank declined sequentially, however remained elevated at `643cr

(annualized slippage ratio of 2.8%) as against ~`1,306cr in 4QFY2013

(annualized slippage ratio of 5.8%). Recoveries/upgrades came lower during the

quarter at `217cr, as compared to `751cr in 4QFY2013. Gross NPA increased by

8bp qoq to 3.4%, while net NPA increased by 5bp qoq to 2.3%. The banks PCR

increased by 111bp qoq to 61.3%. Additionally, the bank restructured advances

worth `601 during the quarter, thereby taking its restructured book (stated borrower

wise, after upgrading satisfactorily performing accounts) to `10,020cr.

Outlook and valuation:Recent liquidity tightening measures implemented by theReserve Bank of India (RBI) amidst an overall weak economic environment clearly

suggests that the asset quality pressures for the banking sector are unlikely toabate as quickly as was expected earlier. Overall, we have a cautious view on the

sector, with a positive bias towards more retail oriented banks on both assets as

well as on liabilities. Hence, we recommend a Neutral rating on the stock.Key financials (Standalone)Y/E March (` cr) FY2012 FY2013 FY2014E FY2015ENII 4,418 4,524 4,533 5,071% chg 9.5 2.4 0.2 11.9

Net profit 1,747 1,581 1,117 1,459% chg 1.9 (9.5) -29.4 30.7

NIM (%) 3.5 3.1 2.7 2.7

EPS (`) 39.6 35.8 24.9 32.9P/E (x) 1.9 2.1 3.1 2.3

P/ABV (x) 0.4 0.3 0.3 0.3

RoA (%) 1.3 1.0 0.6 0.8

RoE (%) 20.4 16.1 10.3 12.4

Source: Company, Angel Research; CMP as of August 5, 2013

NEUTRALCMP `71Target Price -

Investment Period -

Stock Info

Sector

Bloomberg Code

Shareholding Pattern (%)

Promoters 80.0

MF / Banks / Indian Fls 6.0

FII / NRIs / OCBs 8.4

Indian Public / Others 5.6

Abs. (%) 3m 1yr 3yr

Sensex (2.0) 11.5 5.6

Indian Bank (56.8) (59.2) (70.0)

Banking

Market Cap (`cr) 3,030

Beta 1.1

52 Week High / Low 219/69

Avg. Daily Volume 38,982

Face Value (`) 10

BSE Sensex 19,182

Nifty 5,685

Reuters Code INBA.BO

INBK@IN

Vaibhav Agrawal022 3935 7800 Ext: 6808

[email protected]

Sourabh Taparia022 3935 7800 Ext: 6872

[email protected]

Harshal Patkar022 3935 7800 Ext: 6847

harshal. atkar@an elbrokin .com

Indian BankPerformance Highlights

1QFY2014 Result Update | Banking

August 6, 2013

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Indian Bank | 1QFY2014 Result Update

August 6, 2013 2

Exhibit 1:1QFY2014 performance (Standalone)1QFY14 4QFY13 % chg (qoq) 1QFY13 % chg (yoy) FY13 FY12 % chg

Interest earned 3,666 3,562 2.9 3,374 8.7 13,893 12,231 13.6- on Advances / Bills 2,786 2,700 3.2 2,610 6.7 10,607 9,424 12.6- on investments 871 847 2.9 758 15.0 3,238 2,790 16.1

- on balance with RBI & others 9 15 (39.8) 6 44.7 48 17 179.4

Interest Expended 2,569 2,455 4.7 2,221 15.7 9,368 7,813 19.9Net Interest Income 1,097 1,107 (1.0) 1,153 (4.9) 4,524 4,418 2.4Other income 530 460 15.0 223 137.8 1,287 1,180 9.1Other income excl. treasury 215 334 (35.6) 200 7.4 1,074 1,066 0.7

- Fee Income 147 263 (44.1) 138 6.8 849 933 (9.1)

- Treasury Income 314 126 148.8 22 1,309.9 213 114 87.5

- Recoveries from written off accounts 21 71 (69.8) 32 (33.8) 195 133 46.5

Operating income 1,626 1,568 3.7 1,376 18.2 5,811 5,598 3.8Operating expenses 767 1,003 (23.5) 536 43.2 2,751 2,187 25.8- Employee expenses 576 781 (26.2) 369 56.1 1,974 1,484 33.0

- Other Opex 191 222 (14.1) 166 14.8 777 703 10.5

Pre-provision Profit 859 565 52.2 840 2.3 3,060 3,411 (10.3)Provisions & Contingencies 368 476 (22.6) 146 152.7 1,235 1,195 3.3PBT 491 89 452.1 695 (29.3) 1,825 2,216 (17.6)Provision for Tax 174 (203) (185.5) 233 (25.3) 245 469 (47.7)

PAT 317 292 8.6 462 (31.3) 1,580 1,747 (9.6)Effective Tax Rate (%) 35.4 (228.3) 26373bp 33.5 186bp 13.4 21.1 (772)bp

Source: Company, Angel Research

Exhibit 2:1QFY2014 Actual vs Angel estimatesParticulars (` cr) Actual Estimates Var. (%)NII 1,097 1,129 (2.9)Non-interest income 530 278 90.3

Operating income 1,626 1,408 15.5Operating expenses 767 635 20.7

Pre-prov. profit 859 772 11.3Provisions & cont. 368 271 35.9

PBT 491 501 (2.1)

Prov. for taxes 174 130 33.3PAT 317 371 (14.5)Source: Company, Angel Research

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August 6, 2013 3

Exhibit 3:1QFY2014 Performance (Standalone)1QFY14 4QFY13 % chg (qoq) 1QFY13 % chg (yoy)

Balance sheetAdvances (`cr) 109,213 105,643 3.4 93,876 16.3Deposits (`cr) 149,582 141,980 5.4 127,012 17.8

Credit-to-Deposit Ratio (%) 73.0 74.4 (139)bp 73.9 (90)bp

CASA deposits (`cr) 40,183 39,138 2.7 37,228 7.9

CASA ratio (%) 26.9 27.6 (70)bp 29.3 (245)bp

CAR (%) 13.1 13.1 (2)bp 13.0 8bp

Tier 1 CAR (%) 10.8 10.9 (5)bp 10.7 11bp

Profitability Ratios (%)Cost of deposits 7.1 7.1 4bp 7.0 9bp

Yield on advances 10.5 10.6 (16)bp 11.3 (84)bp

Reported NIM 2.7 2.9 (14)bp 3.3 (56)bp

Cost-to-income ratio 47.2 64.0 (1682)bp 38.9 824bp

Asset qualityGross NPAs (`cr) 3,723 3,565 4.4 1,554 139.6

Gross NPAs (%) 3.4 3.3 8bp 1.7 175bp

Net NPAs (` cr) 2,486 2,384 4.3 963 158.1

Net NPAs (%) 2.3 2.3 5bp 1.0 127bp

Provision Coverage Ratio (%) 61.3 60.1 111bp 75.1 (1383)bp

Slippage ratio (%) 2.8 5.8 (294)bp 1.2 162bp


Business growth remains healthy; NIM lower qoq

During 1QFY2014, the banks advances grew at a healthy pace of 16.3% yoy (up

3.4% qoq). Within advances, the agriculture and retail book grew at a relatively

higher 21.1% yoy.

On the liabilities side, growth in deposits also came in healthy at 17.8% yoy (5.4%

qoq), while the low-cost CASA franchise grew at a modest pace of 7.9% yoy (2.7%

qoq).Consequently, the CASA ratio for the bank dipped by 245bp yoy (70bp qoq)

to 26.9%.

The Reported NIM for the bank declined by 14bp qoq to 2.7%, on back of a 16bp

decline in yield on advances to 10.5%. Yields on advances declined primarily on

account of interest reversal on slippages.

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

During 1QFY2014, the banks non-interest income (excl. treasury) grew at a

moderate pace of 7.4% yoy to `215cr. Growth in fee income was moderate at

6.8% yoy to `147cr, while recoveries from written off accounts came in at `21cr as

against `32cr in 1QFY2013. Treasury gains came in at `314cr as against `22cr

reported in 1QFY2013, thereby aiding strong growth of 137.8% yoy in overall

other income for the bank to `530cr.

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August 6, 2013 4

Exhibit 4:Healthy business growth continues


Exhibit 5:CASA ratio declines sequentially by 70bp


Exhibit 6:Yields on advances declines by 16bp qoq...


Exhibit 7:...hence, Reported NIM declines by 14bp qoq


Asset quality pressure continues

During 1QFY2014, the bank witnessed moderate asset quality pressures, as the

gross NPA and net NPA increased by 4.4% and 4.3% sequentially. During

1QFY2014, slippages for the bank, though lower sequentially, however remained

elevated at `643cr (annualized slippage ratio of 2.8%) as against ~`1,306cr in

4QFY2013 (annualized slippage ratio of 5.8%). Recoveries/upgrades came lower

during the quarter at `217cr, as compared to `751cr in 4QFY2013. Gross NPAincreased by 8bp qoq to 3.4%, while net NPA increased by 5bp qoq to 2.3%. The

banks PCR increased by 111bp qoq to 61.3%.

Additionally, the bank restructured advances worth `601cr during the quarter,

thereby taking its restructured book (stated borrower wise, after upgrading

satisfactorily performing accounts) to `10,020cr.

13.8

10.8

13.3

17.0

16.3

15.0

12.9

13.5

17.5

17.8

73.9

72.4

73.3

74.4

73.0

70.0

72.0

74.0

76.0

-

5.0

10.0

15.0

20.0

1QFY13 2QFY13 3QFY13 4QFY13 1QFY14

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

29.

3

29.

0

28.

3

27.

6

26.

9

8.89.8

6.5 6.27.9

-

10.0

20.0

25.0

26.0

27.0

28.0

29.0

30.0


CASA ratio CASA yoy growth (%, RHS)

11.29

11.13 11.13

10.61

10.45

10.00

10.50

11.00

11.50


(%)

3.30

3.12 3.07

2.882.74

2.00

2.40

2.80

3.20

3.60


(%)

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August 6, 2013 5

Exhibit 8:NPA ratio trends


Exhibit 9:Slippages remain elevated in 1QFY2014


Exhibit 10:Cost-to-income ratio higher yoy


Exhibit 11:Cost ratios trends


Investment arguments

Rural and semi-urban presence relatively high, moderate CASA

Indian Bank opened 10 branches in the current quarter, taking its total branch

network to ~2,100 as of 1QFY2014. The bank has a higher proportion of rural

and 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 27-28%, with the CASA

registering a healthy CAGR of 15.2% during FY200913.

Investment concerns

Relatively high yields are now reducing esp. on risk adjusted

basis

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 FY2011 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

past one year, with significant slippages and continuing increase in its restructuring

book. Consequently, its margins on a risk-adjusted basis, which were 3.0% in

1.

7

2.

1

3.

2

3.

3

3.

4

1.

0

1.

3

2.

2

2.

3

2.

3

75.171.0

61.260.1

61.3

-

20.0

40.0

60.0

80.0

0.2

1.2

2.2

3.2


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

1.0 3

.36.3

5.8

2.8

-

1.0

2.0

3.0

4.0

5.06.0

7.0


Slippages (%)

369

379

445

781

576

166

197

191

222

191

38.9 38.945.9

64.0

47.2

-

10.0

20.0

30.0

40.0

50.0

60.0

-

150

300

450

600

750

900

1,050

1,200


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

38.9

38.9

45.9

64.0

47.2

1.5 1.51.6

2.5

1.9

-

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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August 6, 2013 6

FY2011, have now reduced to 2.2% in FY2013. Going ahead, we remain cautious

on the banks asset quality and NIM outlook as in case of other banks with

unsustainably high yields.

Outlook and valuation

Recent liquidity tightening measures implemented by the Reserve Bank of India

(RBI) amidst an overall weak economic environment clearly suggests that the asset

quality pressures for the banking sector are unlikely to abate as quickly as was

expected earlier. Overall, we have a cautious view on the sector, with a positive

bias towards more retail oriented banks on both assets as well as on liabilities.

Hence, we recommend a Neutral rating on the stock.

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August 6, 2013 7

Exhibit 12:Key assumptionsParticulars (%) Earlier estimates Revised estimatesFY2014E FY2015E FY2014E FY2015ECredit growth 15.0 15.0 13.0 15.0Deposit growth 13.0 13.0 12.0 13.0

CASA ratio 26.9 27.0 27.2 27.2

NIM 2.9 3.0 2.7 2.7

Other income growth (3.9) 4.6 9.2 (5.8)

Growth in staff expenses 5.0 3.0 8.0 5.0

Growth in other expenses 5.0 3.0 6.0 2.5

Slippages 2.5 2.3 2.5 2.3

Coverage ratio 62.5 65.0 60.0 62.5


Exhibit 13:Change in estimatesParticulars(` cr)

FY2014E FY2015EEarlierestimates Revisedestimates % chg Earlierestimates Revisedestimates % chg

NII 4,840 4,533 (6.3) 5,551 5,071 (8.6)

Non-interest income 1,237 1,407 13.7 1,295 1,325 2.3

Operating income 6,077 5,940 (2.3) 6,845 6,396 (6.6)Operating expenses 2,888 2,955 2.3 2,975 3,083 3.6

Pre-prov. profit 3,189 2,984 (6.4) 3,870 3,313 (14.4)Provisions & cont. 1,084 1,318 21.6 1,128 1,102 (2.3)

PBT 2,105 1,666(20.8)

2,743 2,211(19.4)

Prov. for taxes 547 550 0.5 932 751 (19.4)

PAT 1,558 1,117 (28.3) 1,810 1,459 (19.4)Source: Company, Angel Research

Exhibit 14:P/ABV band


0

50

100

150

200

250

300

350

400

450

500

Mar-07

Aug-0

7

Jan-0

8

Jun-0

8

Nov-0

8

Apr-09

Sep-0

9

Feb-1

0

Jul-10

Dec-1

0

May-1

1

Oct-11

Mar-12

Aug-1

2

Jan-1

3

Jun-1

3

Nov-1

3

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

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August 6, 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 1,121 1,302 16 1.2 1.4 7.1 19.1 1.6 18.1

FedBk Neutral 356 - - 0.8 - 6.9 2.9 1.0 12.3

HDFCBk Buy 632 745 18 3.0 3.5 14.0 26.3 1.9 22.8

ICICIBk* Buy 903 1,068 18 1.3 1.5 9.3 15.8 1.6 15.4

SIB Neutral 21 - - 0.8 - 5.0 5.7 0.9 16.2

YesBk Accumulate 299 321 7 1.3 1.4 6.0 16.9 1.3 22.8

AllBk Reduce 70 66 (6) 0.3 0.3 2.3 12.6 0.6 12.4

AndhBk Reduce 59 51 (13) 0.4 0.4 3.5 (15.1) 0.5 10.0

BOB Neutral 504 - - 0.6 - 4.1 8.3 0.8 14.2

BOI Neutral 176 - - 0.4 - 2.8 16.2 0.7 13.9

BOM Neutral 42 - - 0.5 - 3.3 10.0 0.6 15.3

CanBk Neutral 249 - - 0.4 - 2.9 15.4 0.8 14.2CentBk Reduce 55 52 (5) 0.6 0.5 3.5 40.1 0.5 12.8

CorpBk Neutral 284 - - 0.3 - 2.9 2.3 0.7 13.5

DenaBk Neutral 48 - - 0.3 - 2.2 (3.3) 0.6 13.2

IDBI# Neutral 61 - - 0.3 - 2.7 25.1 0.8 13.3

IndBk Neutral 71 - - 0.3 - 2.1 (4.2) 0.8 12.4IOB Neutral 40 - - 0.3 - 2.7 57.5 0.5 10.5

J&KBk Neutral 1,122 - - 0.8 - 5.5 (3.5) 1.3 16.3

OBC Neutral 145 - - 0.3 - 2.3 17.0 0.8 12.9

PNB Neutral 538 - - 0.5 - 3.3 10.8 1.0 15.7

SBI* Accumulate 1,682 1,930 15 0.9 1.1 5.9 17.5 1.0 17.0

SynBk Neutral 79 - - 0.4 - 3.3 (16.0) 0.6 12.8

UcoBk Neutral 58 - - 0.5 - 3.7 66.4 0.6 13.5

UnionBk Neutral 120 - - 0.4 - 3.0 6.2 0.6 13.4

UtdBk Neutral 34 - - 0.3 - 1.7 54.6 0.6 14.7

VijBk Neutral 38 - - 0.4 - 4.2 (0.4) 0.4 9.8

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 2,099branches (1417 ultra small branches) and a balance sheet size of ~`1.7lakh 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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Income statement (Standalone)Y/E March (` cr) FY10 FY11 FY12 FY13 FY14E FY15ENII 3,161 4,036 4,418 4,524 4,533 5,071- YoY Growth (%) 21.2 27.7 9.5 2.4 0.2 11.9Other Income 1,316 1,182 1,232 1,288 1,407 1,325- YoY Growth (%) 27.1 (10.2) 4.3 4.5 9.2 (5.8)

Operating Income 4,478 5,218 5,650 5,812 5,940 6,396- YoY Growth (%) 22.9 16.5 8.3 2.9 2.2 7.7

Operating Expenses 1,730 1,926 2,187 2,751 2,955 3,083- YoY Growth (%) 22.3 11.3 13.5 25.8 7.4 4.3

Pre-Provision Profit 2,747 3,292 3,463 3,061 2,984 3,313- YoY Growth (%) 23.3 19.8 5.2 (11.6) (2.5) 11.0

Prov. & Cont. 396 657 1,195 1,235 1,318 1,102- YoY Growth (%) (10.6) 66.1 81.9 3.3 6.7 (16.4)

Profit Before Tax 2,352 2,634 2,268 1,826 1,666 2,211- YoY Growth (%) 31.7 12.0 (13.9) (19.5) (8.7) 32.7

Prov. for Taxation 797 920 521 245 550 751- as a % of PBT 33.9 34.9 23.0 13.4 33.0 34.0

PAT 1,555 1,714 1,747 1,581 1,117 1,459- YoY Growth (%) 24.9 10.2 1.9 (9.5) (29.4) 30.7

Preference Dividend 46 46 46 42 46 46PAT avl. To equity sh. 1,509 1,668 1,701 1,540 1,070 1,413- YoY Growth (%) 25.5 10.5 2.0 (9.5) (30.5) 32.0

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 11,961 13,045

Deposits 88,228 105,804 120,804 141,980 159,018 179,690

- Growth (%) 21.6 19.9 14.2 17.5 12.0 13.0

Borrowings 657 800 3,783 1,773 1,976 2,225

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

Other Liab. & Prov. 3,932 4,293 4,941 6,007 6,680 7,599

Total Liabilities 101,389 121,718 141,419 162,823 181,527 204,426Cash Balances 7,061 6,878 6,319 7,064 7,156 8,086

Bank Balances 1,052 1,684 2,494 2,574 3,177 3,577

Investments 28,268 34,784 37,976 41,805 45,480 48,403

Advances 62,146 75,250 90,324 105,643 119,376 137,283

- Growth (%) 20.8 21.1 20.0 17.0 13.0 15.0

Fixed Assets 1,580 1,606 1,631 1,691 1,828 1,997

Other Assets 1,282 1,516 2,676 4,046 4,511 5,080

Total Assets 101,389 121,718 141,419 162,823 181,527 204,426- Growth (%) 20.5 20.1 16.2 15.1 11.5 12.6

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August 6, 2013 10

Ratio AnalysisY/E March FY10 FY11 FY12 FY13 FY14E FY15EProfitability ratios (%)NIMs 3.5 3.7 3.5 3.1 2.7 2.7Cost to Income Ratio 38.6 36.9 38.7 47.3 49.8 48.2

RoA 1.7 1.5 1.3 1.0 0.6 0.8

RoE 25.6 23.5 20.4 16.1 10.3 12.4

B/S ratios (%)CASA Ratio 32.2 30.9 30.6 27.6 27.2 27.2

Credit/Deposit Ratio 70.4 71.1 74.8 74.4 75.1 76.4

CAR 12.7 13.6 13.5 13.1 12.5 12.0

- Tier I 11.1 11.0 11.1 10.9 10.5 10.2

Asset Quality (%)Gross NPAs 0.8 1.0 2.0 3.3 4.1 4.5

Net NPAs 0.2 0.5 1.3 2.3 2.6 2.4

Slippages 1.1 1.5 2.5 3.2 2.5 2.3

Loan loss prov. /avg.assets

0.4 0.6 0.6 0.6 0.6 0.5

Provision Coverage 93.6 84.3 70.1 60.1 60.0 62.5

Per Share Data (`)EPS 35.1 38.8 39.6 35.8 24.9 32.9

ABVPS 154.7 184.4 210.4 222.2 235.1 261.4

DPS 6.5 7.5 7.5 6.6 5.0 6.5

Valuation RatiosPER (x) 2.2 2.0 1.9 2.1 3.1 2.3

P/ABVPS (x) 0.5 0.4 0.4 0.3 0.3 0.3

Dividend Yield 8.5 9.8 9.8 8.7 6.6 8.5

DuPont Analysis (%)NII 3.4 3.6 3.4 3.0 2.6 2.6

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

Adj. NII 3.0 3.0 2.4 2.2 1.9 2.1

Treasury 0.4 0.1 0.1 0.1 0.2 0.0

Int. Sens. Inc. 3.4 3.2 2.5 2.3 2.0 2.1

Other Inc. 1.0 0.9 0.9 0.7 0.7 0.6

Op. Inc. 4.4 4.1 3.4 3.0 2.7 2.7

Opex 1.9 1.7 1.7 1.8 1.7 1.6

PBT 2.5 2.4 1.7 1.2 1.0 1.1

Taxes 0.9 0.8 0.4 0.2 0.3 0.4

RoA 1.7 1.5 1.3 1.0 0.6 0.8Leverage (x) 15.3 15.3 15.3 15.5 15.9 16.4

RoE 25.6 23.5 20.4 16.1 10.3 12.4

7/27/2019 Indian Bank, 1Q FY 2014

11/11


August 6, 2013 11

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 shouldmake such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of thecompanies referred to in this document (including the merits and risks involved), and should consult their own advisors to determinethe merits and risks of such an investment.

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Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions andtrading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company'sfundamentals.

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 Pvt. 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 Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannottestify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.While Angel Broking Pvt. Limited endeavours to update on a reasonable basis the information discussed in this material, there may beregulatory, compliance, or other reasons that prevent us from doing so.

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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

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Indian Bank, 1Q FY 2014

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