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Please refer to important disclosures at the end of this report 1
Particulars (` cr) 2QFY12 1QFY12 % chg (qoq) 2QFY11 % chg (yoy)
NII 1,661 1,590 4.5 1,536 8.2
Pre-prov. profit 1,205 1,166 3.4 1,131 6.6
PAT 353 464 (24.1) 303 16.2
Source: Company, Angel Research
For 2QFY2012, Union Bank of India reported disappointing numbers, which
were far below ours as well as street’s estimates, primarily because of the
considerably higher-than-expected provisioning expenses. Substantial
deterioration in asset quality was the key negative surprise from the results.
We downgrade the stock from Buy (on persistent stress on the asset quality) toAccumulate.
NIM improves on better CD ratio and loan yields; asset quality stress comes
to the fore: The bank’s business growth was muted, with advances growing
marginally by 1.2% qoq and deposits declining by 1.8% qoq. Even CASA
deposits base was almost flat sequentially and grew by just 8% on a yoy
basis. On the back of improvement in CD ratio and yield on advances, the
bank’s reported NIM improved by 11bp qoq to 3.2%. On the asset-quality
front, slippages ballooned to ` 1,821cr (annualized slippage ratio of 4.8%)
from an average quarterly run rate of ` 640cr over the past 12 quarters.
Management attributed a large part of the rise in slippages to the completion
of the switchover to system-based NPA recognition platform. Absoluteamounts of gross and net NPAs rose sharply by 37.1% qoq and 56.3% qoq,
respectively. Provision coverage ratio including technical write-offs slipped
sharply by 772bp qoq to 60.5%.
Outlook and valuation: In our view, Union Bank of India is structurally among
the more profitable and competitive PSU banks. We have a positive outlook
on the bank due to its robust traction in CASA deposits and relatively
fast-expanding branch network over the past few years. The asset quality
stress seems to have been largely factored into the price, in our view. Going
ahead, pick-up in recoveries from the technically slipped accounts is likely to
cushion further stress. The stock is trading at reasonable valuations of 0.8x
FY2013E P/ABV, well below its five-year median of 1.3x. Hence, werecommend an Accumulate rating with a target price of ` 238.
Key financials
Y/E March (` cr) FY2010 FY2011 FY2012E FY2013E
NII 4,192 6,216 6,725 7,621
% chg 9.9 48.3 8.2 13.3
Net profit 2,075 2,082 1,975 2,308
% chg 20.2 0.3 -5.1 16.9
NIM (%) 2.4 3.0 2.7 2.6
EPS (`) 41.1 39.6 37.5 43.8
P/E (x) 5.4 5.6 5.9 5.1P/ABV (x) 1.3 1.1 1.0 0.8
RoA (%) 1.2 1.0 0.8 0.8
RoE (%) 26.2 20.9 16.6 17.0
Source: Company, Angel Research
ACCUMULATECMP ` 222
Target Price ` 238
Investment Period 12 Months
Stock Info
Sector Banking
Market Cap ( ` cr) 11,029
Beta 1.0
52 Week High / Low 427/207
Avg. Daily Volume 112,577
Face Value ( `
) 10BSE Sensex 17,805
Nifty 5,360
Reuters Code UNBK.BO
Bloomberg Code UNBK@IN
Shareholding Pattern (%)
Promoters 57.1
MF / Banks / Indian Fls 14.7
FII / NRIs / OCBs 11.9Indian Public / Others 16.3
Abs. (%) 3m 1yr 3yr
Sensex (2.2) (10.7) 97.7
Union BoI (23.3) (41.5) 75.1
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Shrinivas Bhutda
022 – 3935 7800 Ext: 6845
Varun Varma
022 – 3935 7800 Ext: 6847
Union Bank of India
Performance Highlights
2QFY2012 Result Update | Banking
October 28, 2011
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Union Bank of India | 2QFY2012 Result Update
October 28, 2011 2
Exhibit 1: 2QFY2012 performance
Particulars (` cr) 2QFY12 1QFY12 % chg (qoq) 2QFY11 % chg (yoy)
Interest earned 5,110 4,916 4.0 3,952 29.3
- on Advances / Bills 3,859 3,754 2.8 2,776 39.0- on investments 1,141 1,063 7.3 985 15.8
- on balance with RBI & others 86 75 13.7 56 52.9
- on others 25 23 10.6 135 (81.5)
Interest Expended 3,449 3,326 3.7 2,416 42.7
Net Interest Income 1,661 1,590 4.5 1,536 8.2
Other income 501 484 3.5 510 (1.7)
Other income excl. treasury 401 371 8.1 379 5.9
- Fee Income 298 252 18.3 286 4.2
- Treasury Income 100 113 (11.5) 131 (23.7)
- Recov. from written off a/cs 42 59 (28.8) 45 (6.7)
- Others 61 60 1.6 48 27.9
Operating income 2,162 2,074 4.2 2,045 5.7
Operating expenses 957 908 5.4 915 4.6
- Employee expenses 591 592 (0.1) 592 (0.1)
- Other Opex 366 317 15.5 323 13.3
Pre-provision Profit 1,205 1,166 3.4 1,131 6.6
Provisions & Contingencies 623 428 45.4 599 4.0
- Provisions for NPAs 495 365 35.6 629 (21.3)
- Other Provisions 128 63 101.6 (30) (524.4)
PBT 582 737 (21.0) 532 9.5
Provision for Tax 230 273 (15.8) 228 0.6
PAT 353 464 (24.1) 303 16.2
Effective Tax Rate (%) 39.5 37.0 244bp 42.9 (349)bp
Source: Company, Angel Research
Exhibit 2: 2QFY2012 Actual vs. Estimates
Particulars (` cr) Actual Estimates Var. (%)
NII 1,661 1,619 2.6
Other income 501 443 13.1
Operating income 2,162 2,062 4.9
Operating expenses 957 956 0.1
Pre-prov. profit 1,205 1,106 8.9
Provisions & cont. 623 384 62.4
PBT 582 723 (19.4)
Prov. for taxes 230 234 (2.0)
PAT 353 488 (27.8)
Source: Company, Angel Research
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Union Bank of India | 2QFY2012 Result Update
October 28, 2011 3
Exhibit 3: 2QFY2012 performance analysis
Particulars 2QFY12 1QFY12 % chg (qoq) 2QFY11 % chg (yoy)
Balance sheet
Advances ( ` cr) 147,284 145,567 1.2 124,142 18.6Deposits ( ` cr) 195,572 199,178 (1.8) 177,780 10.0
Credit-to-Deposit Ratio (%) 75.3 73.1 223bp 69.8 548bp
CASA deposits ( ` cr) 62,754 62,748 0.0 58,111 8.0
Reported CASA ratio (%) 32.1 31.5 58bp 32.7 (60)bp
CAR (%) 12.5 12.9 (34)bp 12.5 1bp
Tier 1 CAR (%) 8.5 8.8 (28)bp 7.9 68bp
Profitability Ratios (%)
Yield on funds 9.3 9.1 15bp 8.3 97bp
Cost of funds 6.3 6.2 9bp 5.1 119bp
Reported NIM 3.2 3.1 11bp 3.4 (14)bp
Cost-to-income ratio 44.3 43.8 47bp 44.7 (46)bp
Asset quality
Gross NPAs ( ` cr) 5,136 3,745 37.1 3,524 45.7
Gross NPAs (%) 3.5 2.6 92bp 2.8 70bp
Net NPAs ( ` cr) 2,959 1,893 56.3 1,462 102.4
Net NPAs (%) 2.0 1.3 72bp 1.2 86bp
Provision Coverage Ratio (%) 60.5 68.2 (772)bp 70.1 (955)bp
Slippage ratio (%) 4.8 2.0 279bp 3.8 104bp
LLP to avg assets (%) 0.8 0.6 21bp 1.2 (41)bp
Source: Company, Angel Research
Contraction in business; branch expansion remains slow
The bank’s business growth was muted, with advances growing marginally by
1.2% qoq and deposits declining by 1.8% qoq. Even the CASA deposits base was
almost flat sequentially and grew by just 8% on a yoy basis. Due to a sequential
contraction in overall deposits, the CASA ratio improved marginally by 58bp qoq
to 32.1%
During 1QFY2012, the bank had opened 22 branches; this pace reduced in
2QFY2012 with the bank opening only 13 branches. Management aims to open
225 branches during FY2012, implying addition of ~200 new branches during
2HFY2012.
Considering the prevailing high interest rates, the bank has further revised its
growth forecasts downwards for FY2012. The bank now plans to grow its
advances by 17-18% (earlier 19%) and deposits by 16% (earlier 17%) in FY2012.
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Union Bank of India | 2QFY2012 Result Update
October 28, 2011 4
Exhibit 4: Contraction in business during 2QFY2012
Source: Company, Angel Research
Exhibit 5: CASA ratio improves marginally
Source: Company, Angel Research
Both NIM and fee income improve sequentially The bank’s CD ratio improved sequentially from 73.1% in 1QFY2012 to 75.3% as
of 2QFY2012. The yield on funds also improved by 15bp to 9.3%, leading to
reported NIM increasing by 11bp to 3.2%. Management has guided for reported
NIM to be at 3.2% for FY2012. However, considering the declining growth trend in
CASA deposits, on a conservative basis, we have factored in NIM to decline by
~28bp and ~11bp in FY2012 and FY2013, respectively.
Exhibit 6: Rise in yield on funds....
Source: Company, Angel Research
Exhibit 7: Leads to an 11bp qoq improvement in NIM
Source: Company, Angel Research
Growth in non-interest income (3.5% qoq) was driven by strong 18.3% qoq growth
in fee income to ` 298cr. Recoveries from written-off accounts fell sharply by 28.8%
qoq to ` 42cr, while treasury income also declined by 11.5% qoq to ` 100cr.
We expect core fee income to grow by 15.3% and 18.0% in FY2012 and FY2013,
respectively.
( 0 . 5
)
7 . 8
1 2 . 9
( 3 . 6
)
1 . 2
3 . 7
5 . 0
8 . 5
( 1 . 6
)
( 1 . 8
)
69.8
71.7
74.6
73.1
75.3
66.0
68.0
70.0
72.0
74.0
76.0
(5.0)
-
5.0
10.0
15.0
2QFY11 3QFY11 4QFY11 1QFY12 2QFY12
Adv. qoq chg (%) Dep. qoq chg (%) CDR (%, RHS)
3 2 . 7
3 3 . 3
3 1 . 8
3 1 . 5
3 2 . 1
18.3
27.1
19.2
12.4
8.0
-
10.0
20.0
30.0
29.0
30.0
31.0
32.0
33.0
34.0
2QFY11 3QFY11 4QFY11 1QFY12 2QFY12
CASA ratio (%) CASA yoy growth (%, RHS)
8.288.39
8.82
9.109.25
7.50
8.00
8.50
9.00
9.50
2QFY11 3QFY11 4QFY11 1QFY12 2QFY12
(%)
3.353.44 3.44
3.10
3.21
2.70
2.90
3.10
3.30
3.50
2QFY11 3QFY11 4QFY11 1QFY12 2QFY12
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Union Bank of India | 2QFY2012 Result Update
October 28, 2011 5
Exhibit 8: Break-up of non-interest income
Particulars (` cr) 2QFY12 1QFY12 % chg (qoq) 2QFY11 % chg (yoy)
CEB 298 252 18.3 286 4.2
Treasury 100 113 (11.5) 131 (23.7)Recoveries 42 59 (28.8) 45 (6.7)
Others 61 60 1.7 48 27.1
Other income 501 484 3.5 510 (1.8)
Other income excl. treasury 401 371 8.1 379 5.8
Source: Company, Angel Research
Slippages balloon during 2QFY2012
On the asset-quality front, slippages ballooned to ` 1,821cr (annualized slippage
ratio of 4.8%) from an average quarterly run rate of ` 640cr over the past 12
quarters. Management attributed a large part of the rise in slippages to the
completion of the switchover to system-based NPA recognition platform. Absolute
amount of gross and net NPAs rose sharply by 37.1% qoq and 56.3% qoq,
respectively. Provision coverage ratio including technical write-offs slipped sharply
by 772bp qoq to 60.5%.
On back of continued asset-quality pressures, we have increased our provisioning
estimates for the bank sharply by 37.6% and 39.2% for FY2012 and FY2013,
respectively. For FY2012, we have factored in gross NPA ratio of 3.4% and net
NPA ratio of 1.4%.
Exhibit 9: Slippages balloon in 2QFY2012
Source: Company, Angel Research
Exhibit 10: Asset-quality concerns persist
Source: Company, Angel Research
3 . 8
2 . 6
1 . 4
2 . 0
4 . 8
1.2
0.7
0.2
0.6
0.8
-
0.3
0.6
0.9
1.2
1.5
-
1.5
3.0
4.5
6.0
2QFY11 3QFY11 4QFY11 1QFY12 2QFY12
Slippages (%) Credit cost (%, RHS)
2 . 8
2 . 7
2 . 4
2 . 6
3 . 5
1 . 2
1 . 2
1 . 2
1 . 3
2 . 0
70.1 70.2
67.6 68.2
60.5
50.0
55.0
60.0
65.0
70.0
75.0
-
1.0
2.0
3.0
4.0
2QFY11 3QFY11 4QFY11 1QFY12 2QFY12
Gross NPAs (%) Net NPAs (%) PCR (%, RHS)
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Union Bank of India | 2QFY2012 Result Update
October 28, 2011 6
Exhibit 11: Only 13 branches opened during 2QFY12
Source: Company, Angel Research
Exhibit 12: Cost ratios back to normal levels
Source: Company, Angel Research
Sufficient capital adequacy The bank is well capitalized with CAR of 12.5% and tier-I capital of 8.5% (forming
68.1% of the total CAR). Post the recent capital infusion by the government
(cumulative ` 793cr during FY2011), its shareholding in the bank has increased to
57.1%, further increasing the headroom for raising tier-I capital in future.
Investment argument
CASA ratio expected to sustain at ~32% levels
We are relatively positive on the bank’s CASA growth outlook, owing to its large
branch expansion in recent years compared to its peers. The bank has opened~400 branches in the last two years, which according to us should aid the bank in
maintaining its CASA ratio at ~32% levels. The bank is aiming to open another
225 branches during FY2012.
Outlook and valuation
In our view, Union Bank of India is structurally among the more profitable and
competitive PSU banks. We have a positive outlook on the bank due to its robust
traction in CASA deposits and relatively fast-expanding branch network over the
past few years. The asset quality stress seems to have been largely factored into the
price, in our view. Going ahead, pick-up in recoveries from the technically slippedaccounts is likely to cushion further stress. The stock is trading at reasonable
valuations of 0.8x FY2013E P/ABV, well below its five-year median of 1.3x. Hence,
we recommend an Accumulate rating with a target price of `238.
2 , 8
6 9
2 , 9
9 3
3 , 0
1 6
3 , 0
3 8
3 , 0
5 1
2,4202,516
2,634 2,673
2,757
1,800
2,000
2,200
2,400
2,600
2,800
3,000
2,700
2,800
2,900
3,000
3,100
2QFY11 3QFY11 4QFY11 1QFY12 2QFY12
Branches ATMs (RHS)
4 4 . 7
4 0 . 2
6 2 . 5
4 3 . 8
4 4 . 3
1.81.6
2.6
1.5 1.6
-
0.6
1.2
1.8
2.4
3.0
-
15.0
30.0
45.0
60.0
75.0
2QFY11 3QFY11 4QFY11 1QFY12 2QFY12
Cost-to-income ratio (%) Opex to average assets (%, RHS)
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Union Bank of India | 2QFY2012 Result Update
October 28, 2011 7
Exhibit 13: Key assumptions
Particulars (%)Earlier estimates Revised estimates
FY2012 FY2013 FY2012 FY2013
Credit growth 17.0 18.0 17.0 18.0Deposit growth 18.0 18.0 18.0 18.0
CASA ratio 31.3 30.8 31.3 30.8
NIMs 2.6 2.5 2.7 2.6
Other income growth (1.3) 14.4 (1.3) 14.4
Growth in staff expenses (5.0) 15.0 (5.0) 15.0
Growth in other expenses 12.0 15.0 8.0 15.0
Slippages 1.8 1.8 2.4 2.5
Treasury gain/(loss) (% of investments) 69.5 70.0 68.0 70.0
Source: Company, Angel Research
Exhibit 14: Change in estimates
Particulars (` cr)
FY2012 FY2013
Earlierestimates
Revisedestimates
% chgEarlier
estimatesRevised
estimates% chg
NII 6,611 6,725 1.7 7,414 7,621 2.8
Non-interest income 2,013 2,013 - 2,302 2,302 -
Operating income 8,624 8,737 1.3 9,716 9,923 2.1
Operating expenses 3,982 3,928 (1.4) 4,579 4,517 (1.4)
Pre-prov. profit 4,642 4,809 3.6 5,136 5,406 5.2
Provisions & cont. 1,370 1,886 37.6 1,429 1,989 39.2
PBT 3,272 2,924 (10.6) 3,707 3,417 (7.8)Prov. for taxes 1,062 949 (10.6) 1,203 1,109 (7.8)
PAT 2,210 1,975 (10.6) 2,504 2,308 (7.8)
Source: Company, Angel Research
Exhibit 15: P/ABV band
Source: Company, Angel Research
0
100
200
300
400
500
O c t - 0 2
M a y - 0
3
D e c - 0
3
J u l - 0 4
F e b - 0
5
S e p - 0
5
A p r - 0 6
N o v - 0
6
J u n - 0
7
J a n - 0
8
A u g - 0
8
M a r - 0 9
O c t - 0 9
M a y - 1
0
D e c - 1
0
J u l - 1 1
F e b - 1
2
Price (`) 0.8x 1.1x 1.4x 1.7x 2x
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Union Bank of India | 2QFY2012 Result Update
October 28, 2011 8
Exhibit 16: Recommendation summary
Company Reco.CMP
(`)Tgt. price
(`)Upside
(%)FY2013EP/ABV (x)
FY2013ETgt. P/ABV (x)
FY2013EP/E (x)
FY2011-13EEPS CAGR (%)
FY2013ERoA (%)
FY2013ERoE (%)
AxisBk Buy 1,152 1,414 22.7 1.9 2.3 10.1 17.7 1.5 20.0
FedBk Accumulate 411 444 8.0 1.1 1.2 8.4 19.5 1.2 14.0
HDFCBk Neutral 483 497 2.9 3.3 3.4 16.8 30.5 1.7 20.9
ICICIBk* Buy 933 1,102 18.1 1.7 2.0 13.5 24.1 1.4 15.6
SIB Neutral 23 24 4.4 1.1 1.2 6.8 15.6 1.0 18.2
YesBk Accumulate 315 347 10.2 2.0 2.2 10.5 19.9 1.3 20.8
AllBk Buy 145 16916.4 0.7 0.8 4.1 8.9 0.9 17.7
AndhBk Neutral 118 1190.7 0.8 0.8 5.3 (0.9) 0.9 15.8
BOB Buy 739 871 17.9 1.0 1.2 5.6 10.6 1.1 19.6
BOI Accumulate 324 362 11.6 0.9 1.0 5.4 15.2 0.7 17.1
BOM Accumulate 50 55 10.7 0.7 0.7 4.3 38.1 0.6 16.5
CanBk Neutral 461 463 0.5 0.9 0.9 5.4 (2.8) 0.9 17.1CentBk Reduce 105 99 (5.1) 0.7 0.7 5.2 (14.6) 0.5 14.2
CorpBk Buy 415 489 17.9 0.7 0.8 4.2 2.3 0.8 16.8
DenaBk Neutral 76 74 (2.4) 0.6 0.6 3.7 5.8 0.8 16.2
IDBI# Neutral 114 115 1.4 0.7 0.8 5.4 12.3 0.7 14.0
IndBk Accumulate 205 220 7.1 0.8 0.9 5.3 0.2 1.1 17.4
IOB Neutral 98 96 (1.4) 0.6 0.6 3.9 20.3 0.6 15.9
J&KBk Neutral 819 820 0.1 0.9 0.9 5.7 6.7 1.2 16.4
OBC Neutral 305 314 3.2 0.7 0.7 5.3 5.4 0.8 13.9
PNB Accumulate 962 1,085 12.9 1.1 1.3 6.0 7.2 1.0 20.0
SBI* Buy 1,907 2,267 18.9 1.4 1.7 7.3 41.4 1.0 21.9
SynBk Accumulate 109 123 12.4 0.7 0.8 4.8 11.8 0.7 16.3
UcoBk Reduce 71 66 (7.0) 0.9 0.8 4.3 14.0 0.6 16.5
UnionBk Accumulate 222 238 7.3 0.8 0.9 5.1 5.2 0.8 17.0
UtdBk Accumulate 74 82 10.7 0.6 0.7 4.4 11.7 0.6 13.8
VijBk Neutral 56 53(4.9) 0.8 0.7 6.8 (3.2) 0.4 10.5
Source: Company, Angel Research; Note:*Target multiples=SOTP Target Price/ABV (including subsidiaries), #Without adjusting for SASF
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Union Bank of India | 2QFY2012 Result Update
October 28, 2011 9
Income statement
Y/E March (` cr) FY08 FY09 FY10 FY11 FY12E FY13E
NII 3,086 3,814 4,192 6,216 6,725 7,621
- YoY Growth (%) 10.6 23.6 9.9 48.3 8.2 13.3Other Income 1,233 1,483 1,975 2,039 2,013 2,302
- YoY Growth (%) 46.4 20.3 33.2 3.2 (1.3) 14.4
Operating Income 4,319 5,296 6,167 8,255 8,737 9,923
- YoY Growth (%) 18.9 22.6 16.4 33.9 5.8 13.6
Operating Expenses 1,593 2,214 2,508 3,950 3,928 4,517
- YoY Growth (%) 7.9 39.0 13.3 57.5 (0.6) 15.0
Pre - Provision Profit 2,726 3,082 3,659 4,305 4,809 5,406
- YoY Growth (%) 26.4 13.1 18.7 17.6 11.7 12.4
Prov. & Cont. 866 725 826 1,350 1,886 1,989
- YoY Growth (%) 11.6 (16.2) 13.9 63.3 39.7 5.5
Profit Before Tax 1,860 2,357 2,833 2,955 2,924 3,417
- YoY Growth (%) 34.8 26.7 20.2 4.3 (1.1) 16.9
Prov. for Taxation 473 630 758 873 949 1,109
- as a % of PBT 25.4 26.7 26.8 29.6 32.4 32.4
PAT 1,387 1,727 2,075 2,082 1,975 2,308
- YoY Growth (%) 64.1 24.5 20.2 0.3 (5.1) 16.9
Balance sheet
Y/E March (` cr) FY08 FY09 FY10 FY11 FY12E FY13E
Share Capital 505 505 505 635 635 635Reserves & Surplus 6,843 8,235 9,919 12,129 13,667 15,446
Deposits 103,859 138,703 170,040 202,461 238,904 281,907
- Growth (%) 21.9 33.5 22.6 19.1 18.0 18.0
Borrowings 4,760 3,885 3,125 7,126 8,409 9,922
Tier 2 Capital 3,750 4,890 6,090 6,190 7,242 8,546
Other Liab & Prov. 4,356 4,757 5,483 7,443 9,604 12,128
Total Liabilities 124,073 160,976 195,162 235,984 278,462 328,585
Cash balances 9,455 8,992 12,468 17,610 15,529 18,324
Bank balances 643 6,993 3,308 2,488 5,569 6,572
Investments 33,822 42,997 54,404 58,399 73,120 86,375
Advances 74,348 96,534 119,315 150,986 176,654
- Growth (%) 19.2 29.8 23.6 26.5 17.0 18.0
Fixed Assets 2,201 2,335 2,305 2,293 2,624 3,004
Other Assets 3,604 3,124 3,361 4,208 4,965 5,859
Total Assets 124,073 160,976 195,162 235,984 278,462 328,585
- Growth (%) 21.1 29.7 21.2 20.9 18.0 18.0
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Ratio analysis
Y/E March FY08 FY09 FY10 FY11 FY12E FY13E
NIMs 2.8 2.8 2.4 3.0 2.7 2.6
Cost to Income Ratio 36.9 41.8 40.7 47.8 45.0 45.5RoA 1.2 1.2 1.2 1.0 0.8 0.8
RoE 26.8 27.2 26.2 20.9 16.6 17.0
B/S ratios (%)
CASA Ratio 34.9 30.1 31.7 31.8 31.3 30.8
Credit/Deposit Ratio 71.6 69.6 70.2 74.6 73.9 73.9
CAR 12.5 11.2 11.7 12.0 12.6 11.4
- Tier I 7.5 6.9 7.4 8.1 8.2 7.3
Asset Quality (%)
Gross NPAs 2.2 2.0 2.2 2.4 3.4 4.0
Net NPAs 0.8 0.3 0.8 1.2 1.4 1.5
Slippages 1.2 1.6 1.8 2.4 2.4 2.5
Loan Loss Prov./Avg. Assets 0.5 0.4 0.4 0.6 0.6 0.6
Provision Coverage 63.7 83.1 74.0 67.6 68.0 70.0
Per Share Data (`)EPS 27.5 34.2 41.1 39.6 37.5 43.8
ABVPS 107.6 139.7 173.6 203.3 230.0 2
DPS 4.0 5.0 5.5 8.0 7.0 8.5
Valuation Ratios
PER (x) 8.1 6.5 5.4 5.6 5.9 5.1
P/ABVPS (x) 2.1 1.6 1.3 1.1 1.0 0.8
Dividend Yield 1.8 2.3 2.5 3.6 3.2 3.8
DuPont Analysis (%)
NII 2.7 2.7 2.4 2.9 2.6 2.5
(-) Prov. Exp. 0.8 0.5 0.5 0.6 0.7 0.7
Adj. NII 2.0 2.2 1.9 2.3 1.9
Treasury 0.3 0.2 0.3 0.2 0.1 0.1
Int. Sens. Inc. 2.2 2.4 2.2 2.5 2.0 1.9
Other Inc. 0.8 0.8 0.8 0.7 0.7 0.7
Op. Inc. 3.0 3.2 3.0 3.2 2.7 2.6
Opex 1.4 1.6 1.4 1.8 1.5 1.5
PBT 1.6 1.7 1.6 1.4 1.1 1.1Taxes 0.4 0.4 0.4 0.4 0.4 0.4
RoA before pref. div. 1.2 1.2 1.2 1.0 0.8 0.8
Pref. div. - - - 0.0 0.0 0.0
RoA 1.2 1.2 1.2 1.0 0.8 0.8
Leverage (x) 21.9 22.5 22.5 21.7 21.7 22.5
RoE 26.8 27.2 26.2 20.9 16.6 17.0
I S I E m e r g i n g M a r k e t s P D F u s - m c k i n
D o w n l o a d e d b y u s - m c k i n s e y 1 f r o m
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