SIB 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 334 353 (5.4) 285 17.3Pre-prov. profit 206 235 (12.4) 163 26.4

PAT 154 128 19.9 122 26.1Source: Company, Angel Research

South Indian Bank (SIB) reported modest set of numbers for the quarter, as their

earnings at PBT level declined by 7.0% yoy, however, aided by tax-write back (of

`14cr for the quarter, as against tax expense of `29cr for 4QFY2012), the bank

posted Net profit growth of 26.1%.

NIMs stable; Asset quality witnesses pressures: During 4QFY2013, the banksbusiness growth remained healthy, with advances growing by 16.6% yoy and

deposits growing by 21.3% yoy. Despite healthy 20.9% yoy growth in current

deposits, the growth in overall CASA deposits came in at 14.4% yoy, due to

relatively lower 13.0% yoy growth on the savings deposits front. CASA ratio

moderated by 112bp yoy and 199bp qoq to 18.6% yoy. Reported NIMs for

FY2013 remained stable at 3.2%. Going ahead, the management expects NIMs

to come down by 10bp over next few quarters. During 4QFY2013, the bank

registered a strong performance on the non-interest income (excl. treasury) front,

with a growth of 45.8% yoy to `107cr, which was aided largely by strong 41.4%

yoy growth in fee income. During the quarter, the bank faced asset quality

pressures, as annualized slippage ratio spiked to 2.2%, as against annualized

slippage ratio of 0.8% in 3QFY2013. Recoveries/upgrades also came in lower at

`47cr as compared to `73cr in last quarter. Despite sequentially higher slippages

and lower recovery/upgrades, Gross NPA levels, on an absolute basis declined by

8.6%, on back of higher write-offs. PCR for the bank dipped sharply by 1,608bp,

while Net NPA levels jumped up by 26.9% qoq.The bank added ~`293cr to its

restructured book in 4QFY2013, thereby taking its restructured book to `1,641cr.

Outlook and valuation: After witnessing improvement during the last quarter, theasset quality for the bank has again witnessed pressures. Aggressive yields on

non-gold loan portfolio (78% of total) and significant gold price correction on

gold loan book (22% of total), could further increase provisioning expenses and

hence provide downside risk to the banks ROA. The stock currently trades at

valuations of 0.9x FY2015E ABV. We recommend Neutral rating on the stock.Key financials (standalone)

Particulars (` cr) FY2012 FY2013 FY2014E FY2015ENII 1,022 1,281 1,513 1,719% chg 29.2 25.4 18.1 13.7

Net profit 402 502 560 602% chg 37.3 25.0 11.5 7.6

NIM (%) 2.9 2.9 2.9 2.8

EPS (`) 3.5 3.8 4.2 4.5P/E (x) 6.8 6.4 5.7 5.3

P/ABV (x) 1.3 1.2 1.0 0.9

RoA (%) 1.1 1.1 1.0 1.0

RoE (%) 21.6 20.6 18.2 17.0

Source: Company, Angel Research

NEUTRALCMP `25Target Price -

Investment Period -

Stock Info

Sector Banking

Market Cap (` cr) 3,212

Beta 0.9

52 Week High / Low 31/20

Avg. Daily Volume 775,280

Face Value (`) 1

BSE Sensex 20,083Nifty 6,065

Reuters CodeSIBK.BO

Bloomberg Code SIB@IN

Shareholding Pattern (%)

Promoters -

MF / Banks / Indian Fls 12.3

FII / NRIs / OCBs 46.2

Indian Public / Others 41.5

Abs. (%) 3m 1yr 3yr

Sensex 3.1 22.3 15.9

SIB (10.1) 5.0 63.8

Vaibhav Agrawal022 3935 7800 Ext: 6808

[email protected]

Sourabh Taparia022 3935 7800 Ext: 6872

[email protected]

Akshay Narang022 3935 7800 Ext: 6829

[email protected]

Harshal Patkar022 3935 7800 Ext: 6847

[email protected]

South Indian BankPerformance Highlights

4QFY2013 Result Update | Banking

May 10, 2013

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South Indian Bank | 4QFY2013 Result Update

May 10, 2013 2

Exhibit 1:4QFY2013 performance (standalone)Particulars (` cr) 4QFY13 3QFY13 % chg (qoq) 4QFY12 % chg (yoy) FY2013 FY2012 % chg (yoy)Interest earned 1,165 1,128 3.3 994 17.3 4,434 3,583 23.7- on Advances / Bills 943 924 2.1 803 17.4 3,576 2,868 24.7- on investments 197 183 7.5 164 19.9 746 621 20.2

- on balance with RBI & others 25 21 22.5 26 (3.9) 112 94 18.8

Interest Expended 832 775 7.3 709 17.3 3,153 2,562 23.1Net Interest Income 334 353 (5.4) 285 17.3 1,281 1,022 25.4Other income 121 66 82.8 83 46.6 335 247 35.6Other income excl. treasury 107 53 102.5 74 45.8 277 206 34.4

- Fee Income 95 50 92.2 67 41.4 50 38 30.6

- Treasury Income 14 13 4.1 9 53.5 58 41 41.6

- Others 12 3 252.8 6 93.3 227 168 35.2

Operating income 455 419 8.6 367 23.9 1,616 1,269 27.3Operating expenses 249 183 35.5 204 21.8 767 617 24.3- Employee expenses 163 108 50.4 128 27.0 473 374 26.3

- Other Opex 86 75 14.2 76 13.0 295 243 21.2

Pre-provision Profit 206 235 (12.4) 163 26.4 849 652 30.2Provisions & Contingencies 66 45 44.8 12 434.4 193 79 143.4- Provisions for NPAs 42 26 61.8 14 192.8 142 25 468.7

- Provisions for Investments 10 2 548.7 (10) - 11 14 (20.2)

- Provisions for Standard Assets 15 10 57.8 12 33.9 33 40 (18.1)

- Other Provisions (1) 8 - (3) - 6 0 -

PBT 140 190 (26.2) 151 (7.0) 656 572 14.6Provision for Tax (14) 62 (122.1) 29 (147.4) 154 171 (10.0)

PAT 154 128 19.9 122 26.1 502 402 25.1Effective Tax Rate (%) (9.7) 32.5 - 19.1 - 23.4 29.8 -


Exhibit 2:4QFY2013 Actual vs. Angel estimatesParticulars (` cr) Actual Estimates % chgNet interest income 334 365 (8.6)

Non-interest income 121 91 33.2

Operating income 455 456 (0.3)Operating expenses 249 207 20.0

Pre-prov. profit 206 249 (17.1)Provisions & cont. 66 47 39.4

PBT 140 201 (30.4)

Prov. for taxes (14) 65 (120.8)

PAT 154 136 13.1Source: Company, Angel Research

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May 10, 2013 3

Exhibit 3:4QFY2013 performance analysis (standalone)Particulars 4QFY13 3QFY13 % chg (qoq) 4QFY12 % chg (yoy)Balance sheetAdvances (` cr) 31,816 29,039 9.6 27,281 16.6Deposits (`cr) 44,262 38,940 13.7 36,501 21.3

Credit-to-Deposit Ratio (%) 71.9 74.6 (269)bp 74.7 (286)bp

Current deposits (`cr) 1,526 1,500 1.7 1,262 20.9

Saving deposits (` cr) 6,685 6,500 2.8 5,917 13.0

CASA deposits (`cr) 8,211 8,000 2.6 7,179 14.4

CASA ratio (%) 18.6 20.5 (199)bp 19.7 (112)bp

CAR (%) 13.9 13.9 6bp 14.0 (9)bp

Tier 1 CAR (%) 12.1 11.8 27bp 11.5 51bp

Profitability Ratios (%)Cost of deposits# 8.3 8.3 0bp 7.9 36bp

Yield on advances# 12.7 12.8 (10)bp 12.5 20bp

Reported NIM# 3.2 3.2 0bp 3.1 10bp

Cost-to-income ratio 54.7 43.8 1087bp 55.6 (92)bp

Asset qualityGross NPAs (`cr) 434 475 (8.6) 267 62.4

Gross NPAs (%) 1.4 1.6 (26)bp 1.0 39bp

Net NPAs (` cr) 250 197 26.9 77 226.1

Net NPAs (%) 0.8 0.7 10bp 0.3 50bp

Provision Coverage Ratio (%) 42.5 58.6 (1,608)bp 71.4 (2,887)bp

Slippage ratio (%) 2.2 0.8 140bp 1.3 87bp

Loan loss provision to avg.assets (%)

0.4 0.2 13bp 0.2 22bp

Source: Company, Angel Research; Note# : On a cumulative basis

Healthy business growth; NIMs stable for FY2013

During 4QFY2013, the banks business growth remained healthy, with advances

growing by 16.6% yoy and deposits growing by 21.3% yoy.Despite healthy 20.9%

yoy growth witnessed in current deposits, the growth in overall CASA deposits

came in moderate at 14.4% yoy, due to relatively lower 13.0% yoy growth on the

savings deposits front. CASA ratio moderated by 112bp yoy and 199bp qoq to

18.6% yoy. Going forward, the management ambitiously plans to grow its loanbook at 25% yoy.

The bank has been seeing weakness in its NRE savings account franchise since the

de-regulation in the NRE-TD rates.The NRE-SB deposits grew by 5.1% yoy during

4QFY2013, but have declined by 2.6% on a sequential basis due to the de-

regulation which came in 3QFY2012. High cost NRE term deposit grew by 276.8%

yoy, it now comprises ~60% of the NRI deposit portfolio.

Reported NIMs for FY2013 remained stable at 3.2%. Going ahead, the

management expects NIMs to come down by 10bp over next few quarters. Cost of

deposits for FY2013 stood stable at 8.3%, while yield on advances for FY2013

reduced marginally to 12.7% from 12.8% reported for 9MFY2013.

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May 10, 2013 4

Exhibit 4:NRI Deposit breakupDeposit type (` cr) 4QFY13 3QFY13 2QFY13 1QFY13 4QFY13NRE SB 1,427 1,465 1,372 1,536 1,358

NRO SB 225 219 207 200 188FCNR (B) +RFC 348 321 333 400 411

LOW COST TERM DEPOSIT 64 80 128 100 348

LOW COST NRI DEPOSIT (SUB TOTAL) 2,064 2,086 2,040 2,236 2,305HIGH COST NRE TERM DEPOSIT 3,904 3,346 2,978 2,232 1,036

NRO TERM DEPOSIT 554 563 661 932 1,275

TOTAL NRI DEPOSIT 6,522 5,994 5,680 5,400 4,617


The banks overall priority sector lending stands at ~30.0%. The management

plans to take it to 40% levels of its overall loan book by increasing focus on

housing, Gold and Vehicle loan segment within the PSL loans. Gold loan portfolio

for the bank stands at ~22% of overall loan book, of which (non PSL) has

improved on a qoq basis and now stands at ~`6,372cr, whereas the Agri/PSL

continued to decline steadily owing to stiff competition from PSU banks and now

stands at ~`600cr, down from `1,000cr in previous quarter.Owing to the recent

correction in Gold prices, the average LTV for the bank on its Gold loan portfolio

has gone up to ~85% (as compared to origination LTV of ~70%). As per the

management, none of its Gold loan book has LTV more than 95%.

Exhibit 5:Advances growth remains above systems


Exhibit 6:CASA ratio* witnesses pressure

Source: Company, Angel Research; Note* : Excluding FCNR, RFC

33.

1

23.

5

20.

6

17.

5

16.

6

22.

8

17.

5

16.

5

15.

1

21.

3

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

4QFY12 1QFY13 2QFY13 3QFY13 4QFY13

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

19.7

21.120.0

20.5

18.6

12.0

15.0

18.0

21.0

24.0


(%)

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May 10, 2013 5

Exhibit 7:NIM trends*

Source: Company, Angel Research; Note* On cumulative basis

Exhibit 8:Trend in yield on advances*

Source: Company, Angel Research; Note* On cumulative basis

Strong performance on non-interest income (excl. treasury) front

During 4QFY2013, the bank registered a strong performance on the non-interest

income (excl. treasury) front, with a growth of 45.8% yoy to `107cr, which was

aided largely by strong 41.4% yoy growth in fee income. Treasury income for the

bank came in higher at `14cr in 4QFY2013, as against `9cr in 4QFY2012.

Overall, non-interest income grew strongly by 46.6% yoy to `121cr.

Exhibit 9:Break-up of non-interest incomeParticulars (` cr) 4QFY13 3QFY13 % chg (qoq) 4QFY12 % chg (yoy)Fee Income 95 50 92.2 67 41.4

Treasury gains 14 13 4.1 9 53.5

Profit on exchange transactions 12 4 171.5 6 93.3

Non-interest income 121 66 82.8 83 46.6Excluding treasury 107 53 102.5 74 45.8

Source: Company, Angel Research;

Asset quality faces pressure, as slippages rise

During the quarter, the bank faced asset quality pressures, as slippages came in at

`148cr (annualized slippage ratio of 2.2%), as against `53cr in 3QFY2013

(annualized slippage ratio of 0.8%) and `67cr in 4QFY2012 (annualized slippage

ratio of 1.3%). Recoveries/upgrades for the bank also came in lower at `47cr as

compared to `73cr in 3QFY2013. Despite sequentially higher slippages and lower

recovery/upgrades, Gross NPA levels, on an absolute basis declined by 8.6%, on

back of higher write-offs. PCR for the bank dipped sharply by 1,608bp, while Net

NPA levels jumped up by 26.9% qoq.The bank added ~`293cr to its restructured

book in 4QFY2013, thereby taking its cumulative restructured book to `1,641cr.

On the NAFED exposure, the bank has provided ~`90cr in FY2013 and plans to

provide for ~`60cr by FY2014. On the employee related fraud worth `30cr in

FY2013, which the bank has provided for in full, it has managed to recover ~`5cr

during FY2013.

3.10

3.15

3.09

3.20 3.21

2.5

2.7

2.9

3.1

3.3

FY2012 1QFY13 1HFY13 9MFY13 FY2013

(%)

12.513.0

12.8 12.8 12.7

8.5

9.5

10.5

11.5

12.5

13.5

FY2012 1QFY13 1HFY13 9MFY13 FY2013

(%)

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May 10, 2013 6

Exhibit 10:Asset quality under pressure


Exhibit 11:...as Slippages rise


Exhibit 12:Opex. to average asset trends


Exhibit 13:Cost to income ratio trends


Exhibit 14:Capital adequacy ratio trends


267

295

496

475

434

77

95

242

197

250

71.467.7

51.2

58.6

42.5

39.0

44.0

49.0

54.0

59.0

64.0

69.0

74.0

-

75

150

225

300

375

450

525


Gross NPAs (` cr) Net NPA (` cr) PCR (%, RHS)

1.3 1.3

3.4

0.8

2.2

-

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0


S l ippage ratio (%)(%)

2.1

1.6 1.6 1.7

2.1

-

0.5

1.0

1.5

2.0

2.5


(%)55.6

44.246.1

43.8

54.7

30.0

36.0

42.0

48.0

54.0


(%)

11.5 10.912.3 11.8 12.1

2.52.3

2.12.1 1.9

12.014.0 13.2

14.413.9

-

4.0

8.0

12.0

16.0


Tier-I CAR Tier-II CAR (%)

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May 10, 2013 7

Investment arguments

Healthy business growth

The bank grew its advances and deposits at a healthy rate of 16.6% and 21.3%yoy, respectively, in FY2013. The gold loan portfolio of the bank has increased at

50.3% CAGR over FY200913. The gold loan portfolio now constitutes 22% of the

overall loan book. The management indicated that they would like to maintain the

gold loan portfolio at 22-25% levels of the overall loan book and hence would

now increase focus on the corporate segment and to drive the banks loan book

growth.

The banks tier-1 ratio, post the capital raising (`440cr via QIP during 2QFY2013)

stands at a healthy 12.1%, thereby giving enough headroom for the bank to grow

at a healthy pace going ahead.

NIMs likely to have peaked out

SIBs NIMs have consistently been healthy above 3% for last few quarters despite its

relatively lower CASA deposits (18.6%) due to increasing share of high-yielding

gold loans (21.7%). However, increasing competition in the gold loan space and

entry of several players is likely to reduce the so-far above-average profitability of

this segment going forward.Also move of deregulating interest rates on NRE

deposits has already diminished the competitive cost advantage of these deposits,

in our view.

The bank has managed the NIM impact by increasing its yield on advances;

however continuing to rely on this strategy going forward would likely have assetquality implications. Eventually, either on account of decline in NIMs or increase in

asset quality pressures, we expect downside risks to banks RoA.

Outlook and valuation

After witnessing improvement during the last quarter, the asset quality for the bank

has again witnessed pressures. Aggressive yields on non-gold loan portfolio (78%

of total) and significant gold price correction on gold loan book (22% of total),

could further increase provisioning expenses and hence provide downside risk to

the banks ROA. The stock currently trades at valuations of 0.9x FY2015E ABV. Werecommend Neutral rating on the stock.

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May 10, 2013 8

Exhibit 15:Key assumptionsParticulars (%) Earlier estimates Revised estimatesFY2014E FY2015E FY2014E FY2015ECredit growth 20.0 20.0 20.0 20.0Deposit growth 20.0 20.0 16.0 16.0

CASA ratio 18.0 17.0 17.7 17.3

NIMs 3.0 2.9 2.9 2.8

Other income growth 2.4 16.1 (2.6) 14.1

Growth in staff expenses 16.0 15.0 15.0 14.0

Growth in other expenses 16.0 15.0 12.5 12.5

Slippages 1.5 1.5 1.5 1.4

Coverage ratio 64.8 66.4 57.3 62.7


Exhibit 16:Change in estimatesParticulars (` cr)

FY2014 FY2015Earlierestimates Revisedestimates Var. (%) Earlierestimates Revisedestimates Var. (%)

NII 1,514 1,513 (0.1) 1,719 1,719 0.0Non-interest income 312 326 4.6 362 372 2.7

Operating income 1,826 1,839 0.7 2,081 2,091 0.5Operating expenses 842 875 3.9 968 992 2.5

Pre-prov. profit 984 964 (2.0) 1,113 1,099 (1.3)Provisions & cont. 169 164 (2.9) 203 186 (8.1)

PBT 815 800 (1.9) 910 913 0.2

Prov. for taxes 277 240 (13.4) 309 310 0.2

PAT 538 560 4.1 601 602 0.2Source: Angel Research

Exhibit 17:P/ABV band


0

5

10

15

20

2530

35

40

Apr-

06

Sep-0

6

Fe

b-0

7

Jul-07

Dec-0

7

May-0

8

Oct-08

Mar-

09

Aug-0

9

Jan-1

0

Jun-1

0

Nov-1

0

Apr-

11

Sep-1

1

Fe

b-1

2

Jul-12

Dec-1

2

May-1

3

Oct-13

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

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May 10, 2013 9

Exhibit 18:Recommendation summaryCompany Reco. CMP(`) Tgt. price(`) Upside(%) FY2015EP/ABV (x) FY2015ETgt. P/ABV (x) FY2015EP/E (x) FY2013-15EEPS CAGR (%) FY2015ERoA (%) FY2015ERoE (%)AxisBk Buy 1,468 1,714 16.7 1.6 1.9 9.6 17.3 1.6 17.6

FedBk Neutral 456 - - 1.0 - 7.7 10.0 1.2 13.7HDFCBk Neutral 703 - - 3.3 - 16.5 22.8 1.8 21.8ICICIBk* Buy 1,166 1,357 16.4 1.7 2.0 12.1 15.5 1.5 15.6

SIB Neutral 24 - - 0.9 - 5.3 11.4 1.0 17.1YesBk Neutral 509 520 2.1 2.2 2.2 10.6 14.9 1.3 22.1

AllBk Buy 123 142 15.1 0.5 0.6 3.4 12.6 0.8 14.2

AndhBk Neutral 91 - - 0.6 - 3.9 4.2 0.8 13.4BOB Buy 705 815 15.6 0.7 0.9 4.9 17.0 1.0 16.0

BOI Accumulate 337 360 6.8 0.7 0.8 4.9 21.8 0.8 15.1

BOM Neutral 57 - - 0.6 - 4.3 14.8 0.6 15.6CanBk Accumulate 423 461 8.9 0.7 0.8 4.9 14.0 0.8 14.1CentBk Neutral 72 - - 0.6 - 4.0 42.8 0.6 13.3CorpBk Accumulate 406 453 11.6 0.5 0.6 3.8 8.3 0.8 14.4

DenaBk Neutral 93 - - 0.5 - 3.5 4.3 0.8 15.3IDBI# Neutral 88 - - 0.5 - 4.7 15.2 0.7 11.3IndBk Buy 160 186 16.0 0.5 0.6 3.8 6.5 1.0 14.9

IOB Neutral 63 - - 0.4 - 3.1 53.3 0.7 13.1J&KBk Neutral 1,361 - - 1.0 - 6.8 (5.2) 1.2 16.0OBC Accumulate 259 282 9.2 0.5 0.6 4.1 17.5 0.8 13.1

PNB Buy 771 945 22.6 0.7 0.9 4.4 12.4 1.0 16.3

SBI* Accumulate 2,294 2,572 12.2 1.3 1.4 8.2 16.4 1.0 17.0

SynBk Neutral 128 - - 0.6 - 4.5 (3.5) 0.7 15.2UcoBk Neutral 74 - - 0.8 - 5.1 36.9 0.6 12.6UnionBk Accumulate 240 264 10.3 0.7 0.8 5.0 21.2 0.8 15.3

UtdBk Accumulate 60 64 6.9 0.4 0.4 2.9 40.4 0.7 14.7

VijBk Neutral 53 - - 0.6 - 4.8 21.2 0.5 11.7Source: Company, Angel Research; Note:*Target multiples=SOTP Target Price/ABV (including subsidiaries), #Without adjusting for SASF

Company BackgroundSouth Indian Bank (SIB) is a small old generation private sector bank with ~85% of

its branches in southern India (large base in Kerala). Like Federal Bank, SIB alsohas a large NRI customer base (approx. 15% of total deposits).Of late, the bank

has aggressively started focusing on the gold loan portfolio - a highly profitable

and secured loan segment. Gold loans accounted for ~22% of the bank's loan

book as of FY2013.

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May 10, 2013 10

Income statement (standalone)

Y/E March (` cr) FY09 FY10 FY11 FY12 FY13E FY14E FY15ENet Interest Income 523 568 791 1,022 1,281 1,513 1,719- YoY Growth (%) 32.7 8.7 39.2 29.2 25.4 18.1 13.7

Other Income 164 208 197 247 335 326 372- YoY Growth (%) 15.2 26.9 (5.6) 25.6 35.6 (2.6) 14.1

Operating Income 687 777 988 1,269 1,616 1,839 2,091- YoY Growth (%) 28.0 13.0 27.2 28.4 27.3 13.8 13.7

Operating Expenses 328 366 463 617 767 875 992- YoY Growth (%) 32.4 11.5 26.3 33.5 24.3 14.0 13.4

Pre - Provision Profit 359 411 525 652 849 964 1,099- YoY Growth (%) 24.3 14.5 27.9 24.0 30.2 13.6 14.0

Prov. and Cont. 57 43 80 79 193 164 186- YoY Growth (%) 0.7 (24.5) 84.4 (0.7) 143.4 (15.0) 13.7

Profit Before Tax 301 367 446 572 656 800 913- YoY Growth (%) 30.0 21.9 21.3 28.5 14.6 22.0 14.1

Prov. for Taxation 107 134 153 171 154 240 310- as a % of PBT 35.4 36.4 34.3 29.8 23.4 30.0 34.0

PAT 195 234 293 402 502 560 602- YoY Growth (%) 28.4 20.0 25.1 37.3 25.0 11.5 7.6

Balance sheet (standalone)

Y/E March (` cr) FY09 FY10 FY11 FY12 FY13E FY14E FY15EShare Capital 113 113 113 113 134 134 134

Reserve & Surplus 1,191 1,372 1,734 2,057 2,872 3,316 3,786

Deposits 18,092 23,012 29,721 36,501 44,262 51,344 59,559

- Growth (%) 19.4 27.2 29.2 22.8 21.3 16.0 16.0

Borrowings 257 1 25 323 1,026 1,188 1,373

Tier 2 Capital 155 330 265 265 258 252 246

Other Liab. & Prov. 571 706 962 1,111 1,242 1,392 1,524

Total Liabilities 20,379 25,534 32,820 40,370 49,795 57,625 66,621Cash balances 998 1,391 1,828 1,572 1,697 2,310 2,680

Bank balances 1,038 597 638 1,069 2,639 3,054 3,531

Investments 6,075 7,156 8,924 9,400 12,523 12,786 13,097

Advances 11,848 15,823 20,489 27,281 31,816 38,179 45,814

- Growth (%) 13.3 33.6 29.5 33.1 16.6 20.0 20.0

Fixed Assets 136 153 357 378 396 458 530

Other Assets 284 415 585 671 724 838 969

Total Assets 20,379 25,534 32,820 40,370 49,795 57,625 66,621- Growth (%) 19.2 25.3 28.5 23.0 23.3 15.7 15.6

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May 10, 2013 11

Ratio Analysis (standalone)

Y/E March FY09 FY10 FY11 FY12 FY13E FY14E FY15EProfitability ratios (%)NIMs 2.9 2.5 2.8 2.9 2.9 2.9 2.8

Cost to Income ratio 47.8 47.1 46.8 48.7 47.5 47.6 47.5

RoA 1.0 1.0 1.0 1.1 1.1 1.0 1.0

RoE 16.0 17.0 18.5 21.6 20.6 18.2 17.0

B/S ratios (%)CASA ratio 23.8 23.1 21.5 19.7 18.6 17.7 17.3

Credit/Deposit ratio 65.5 68.8 68.9 74.7 71.9 74.4 76.9

Net worth/ Assets 15.4 16.7 18.4 19.7 18.4 17.4 17.5

CAR 14.8 15.4 14.0 14.0 15.4 15.3 15.0

- Tier I 13.2 12.4 11.3 11.5 13.3 13.4 13.2

Asset Quality (%)Gross NPAs 2.2 1.3 1.1 1.0 1.4 1.5 1.6

Net NPAs 1.1 0.4 0.3 0.3 0.6 0.6 0.6

Slippages 1.6 1.5 0.7 0.8 2.0 1.5 1.4

NPA prov / avg. assets 0.1 0.2 0.1 0.1 0.3 0.2 0.2

Provision Coverage 48.4 70.8 73.9 71.4 54.2 57.3 62.7

Per Share Data (`)EPS 1.7 2.1 2.6 3.5 3.8 4.2 4.5

ABVPS (75% cover) 10.8 12.9 15.0 17.8 20.7 23.9 27.5

DPS 0.3 0.4 0.5 0.6 0.7 0.8 0.9

Valuation RatiosPER (x) 13.9 11.6 9.3 6.8 6.4 5.7 5.3P/ABVPS (x) 2.2 1.9 1.6 1.3 1.2 1.0 0.9

Dividend Yield 1.2 1.7 2.1 2.5 2.9 3.1 3.5

DuPont AnalysisNII 2.8 2.5 2.7 2.8 2.8 2.8 2.8

(-) Prov. Exp. 0.3 0.2 0.3 0.2 0.4 0.3 0.3

Adj NII 2.5 2.3 2.4 2.6 2.4 2.5 2.5

Treasury 0.2 0.3 0.1 0.1 0.1 0.0 0.0

Int. Sens. Inc. 2.7 2.6 2.6 2.7 2.5 2.6 2.5

Other Inc. 0.7 0.6 0.5 0.6 0.6 0.6 0.6

Op. Inc. 3.4 3.2 3.1 3.3 3.2 3.1 3.1

Opex 1.8 1.6 1.6 1.7 1.7 1.6 1.6

PBT 1.6 1.6 1.5 1.6 1.5 1.5 1.5

Taxes 0.6 0.6 0.5 0.5 0.3 0.4 0.5

RoA 1.0 1.0 1.0 1.1 1.1 1.0 1.0Leverage 15.4 16.7 18.4 19.7 18.4 17.4 17.5

RoE 16.0 17.0 18.5 21.6 20.6 18.2 17.0

7/30/2019 SIB 4Q FY 2013

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May 10 2013 12

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

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SIB 4Q FY 2013