Download - Indian Bank Result Updated
-
7/31/2019 Indian Bank Result Updated
1/11
Please refer to important disclosures at the end of this report 1
Particulars (` cr) 4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy)NII 1,083 1,170 (7.5) 1,111 (2.6)Pre-prov. profit 797 912 (12.5) 903 (11.7)
PAT 345 526 (34.3) 439 (21.3)Source: Company, Angel Research
Indian Bank reported a dismal performance for 4QFY2012, both on the
operational and asset quality front. The banks net profit declined by 21.3% yoy
(34.3% qoq) to`345cr, despite being aided by tax write back of`110cr, on the
back of almost 3.5 times higher provisioning, higher operating expenses and
muted growth in operating income. We recommend Accumulate on the stock.NIM declines sequentially; Asset quality deteriorates: During 4QFY2012,advances for the bank grew at a healthy pace of 20.0% yoy, mainly aided by
strong growth in the corporate and commercial and agri segments. On the
liability side, growth in deposits was rather moderate at 14.2% yoy. CASA
deposits grew at a relatively slow pace of 13.0% yoy, on the back of 8.7% yoy
growth in current account deposits despite decent 14.0% yoy growth in savings
accounts deposits, which led to a 33bp yoy fall in CASA ratio to 30.5% (up by
33bp sequentially). The banks yield on advances declined by 76bp qoq due to
interest reversal of `151cr, while cost of deposits also declined by 8bp qoq,
leading to a 42bp sequential fall in reported NIM to 3.2%. Growth in fee income
for the bank was strong at 31.9% yoy to `234cr. Recoveries from written-off
accounts were sluggish, declining by 48.3% yoy to`46cr. The banks asset quality
deteriorated sequentially during 4QFY2012, with both gross and net NPAs
increasing considerably on a qoq basis. Annualized slippage ratio increased on a
sequential basis to 5.5% in 4QFY2012 as against comfortable 1.6% witnessed in
3QFY2012, with major sectoral contributions from infra, glass, textile, gem and
gold trade, auto and engineering and real estate. PCR (incl. technical write offs)
dipped by 637bp to 70.1%. Additionally, the banks restructured book increased
by ~`3,330cr to`8,902cr during the quarter, mainly on account of restructuring
of loans worth ~`800cr to Air India and ~`1,200cr to the power sector. Going
ahead, the bank is expected to restructure ~`1,157cr worth of advances in
1QFY2013, of which ~50% would be Rajasthan discoms.
Outlook and valuation:The stock currently trades at 0.7x FY2014E ABV, below itsfive-year trading range (0.8x-1.3x) and median of 1.0x. Due to cheap valuations,we have an Accumulate rating on the stock with a target price of `197. However,in our view, upsides are likely to be lower than peers, as we remain circumspect
on the banks high RoAs.
Key financialsY/E March (` cr) FY2011 FY2012 FY2013E FY2014ENII 4,036 4,418 5,075 5,789% chg 27.7 9.5 14.9 14.1
Net profit 1,714 1,747 1,805 1,915% chg 10.2 1.9 3.3 6.1
NIM (%) 3.7 3.5 3.4 3.3
EPS (`) 38.8 39.8 41.1 43.7P/E (x) 4.6 4.5 4.3 4.1
P/ABV (x) 1.0 0.8 0.7 0.7
RoA (%) 1.5 1.3 1.2 1.1
RoE (%) 23.5 20.4 18.2 16.9
Source: Company, Angel Research
ACCUMULATECMP `177
Target Price `197
Investment Period 12 months
Stock Info
Sector Banking
Market Cap (`cr) 7,626
Beta 1.1
52 Week High / Low 265/167
Avg. Daily Volume 55,877
Face Value (`) 10
BSE Sensex 16,216
Nifty 4,908
Reuters Code INBA.BO
Bloomberg Code INBK@IN
Shareholding Pattern (%)
Promoters 80.0
MF / Banks / Indian Fls 4.7
FII / NRIs / OCBs 9.1
Indian Public / Others 6.2
Abs. (%) 3m 1yr 3yr
Sensex (9.1) (12.5) 36.6
Indian Bank (27.7) (23.6) 81.3
Vaibhav Agrawal022 3935 7800 Ext: 6808
Varun Varma022 3935 7800 Ext: 6847
Sourabh Taparia022 3935 7800 Ext: 6872
Indian BankPerformance Highlights
4QFY2012 Result Update | Banking
May 14, 2012
-
7/31/2019 Indian Bank Result Updated
2/11
Indian Bank | 4QFY2012 Result Update
May 14, 2012 2
Exhibit 1:4QFY2012performanceParticulars (` cr) 4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy)Interest earned 3,191 3,224 (1.0) 2,594 23.0- on Advances / Bills 2,414 2,494 (3.2) 1,984 21.6- on investments 773 725 6.5 605 27.7
- on balance with RBI & others 5 5 6.9 5 1.5
Interest Expended 2,108 2,054 2.7 1,483 42.2Net Interest Income 1,083 1,170 (7.5) 1,111 (2.6)Other income 307 281 9.1 272 13.0Other income excl. treasury 280 263 6.4 266 5.1
- Fee Income 234 235 (0.5) 177 31.9
- Treasury Income 27 18 48.2 5 404.4
- Recoveries from writ.-off acc 46 28 64.2 89 (48.3)
Operating income 1,390 1,451 (4.3) 1,383 0.5Operating expenses 592 540 9.7 480 23.5- Employee expenses 386 372 3.9 309 25.0
- Other Opex 206 168 22.8 170 20.8
Pre-provision Profit 797 912 (12.5) 903 (11.7)Provisions & Contingencies 562 236 137.9 127 343.1
PBT 235 675 (65.1) 776 (69.7)Provision for Tax (110) 150 (173.6) 337 (132.6)
PAT 345 526 (34.3) 439 (21.3)Effective Tax Rate (%) (46.7) 22.1 (6886)bp 43.5 (9019)bp
Source: Company, Angel Research
Exhibit 2:4QFY2012 actual vs. Angel estimatesParticulars (` cr) Actual Estimates Var. (%)NII 1,083 1,220 (11.3)Non-interest income 307 334 (8.0)
Operating income 1,390 1,554 (10.6)Operating expenses 592 581 2.0
Pre-prov. profit 797 973 (18.1)Provisions & cont. 562 202 178.6
PBT 235 771 (69.5)
Prov. for taxes (110) 247 (144.6)PAT 345 525 (34.2)Source: Company, Angel Research
-
7/31/2019 Indian Bank Result Updated
3/11
Indian Bank | 4QFY2012 Result Update
May 14, 2012 3
Exhibit 3:4QFY2012 performanceParticulars 4QFY12 3QFY12 %chg (qoq) 4QFY11 %chg (yoy)Balance sheetAdvances (`cr) 90,324 87,337 3.4 75,250 20.0Deposits (`cr) 120,804 118,970 1.5 105,804 14.2
Credit-to-Deposit Ratio (%) 74.8 73.4 136bp 71.1 365bp
Current deposits (`cr) 6,924 6,430 7.7 6,368 8.7
Saving deposits (`cr) 29,942 29,489 1.5 26,271 14.0
CASA deposits (`cr) 36,866 35,919 2.6 32,639 13.0
CASA ratio (%) 30.5 30.2 33bp 30.8 (33)bp
CAR (%) 13.5 11.8 163bp 13.6 (9)bp
Tier 1 CAR (%) 11.1 9.6 158bp 11.0 11bp
Profitability Ratios (%)Cost of deposits 6.8 6.9 (8)bp 5.6 115bp
Yield on advances 10.9 11.7 (76)bp 10.6 33bp
Yield on investments 7.5 7.6 (16)bp 7.2 27bp
Reported NIM 3.2 3.6 (42)bp 3.9 (70)bp
Cost-to-income ratio 42.6 37.2 544bp 34.7 794bp
Asset qualityGross NPAs (`cr) 1,851 1,190 55.5 740 150.0
Gross NPAs (%) 2.0 1.4 68bp 1.0 105bp
Net NPAs (`cr) 1,197 695 72.1 397 201.4
Net NPAs (%) 1.3 0.8 53bp 0.5 80bp
Provision Coverage Ratio (%) 70.1 76.5 (637)bp 84.3 (1417)bp
Slippage ratio (%) 5.5 1.6 397bp 1.9 361bp
NPA to avg. assets (%) 1.4 0.3 103bp 0.8 55bp
Source: Company, Angel Research
Advances growth healthy; NIM declines sequentially
During 4QFY2012, advances for the bank grew at a healthy pace of 20.0%
yoy, mainly aided by strong growth in the corporate and commercial and agri
segments, which grew by 20.9% and 24.5% yoy, respectively.
On the liability side, growth in deposits was rather moderate at 14.2% yoy.
CASA deposits grew at a slower pace of 13.0% yoy, on the back of 8.7% yoygrowth in current account deposits, despite decent 14.0% yoy growth in savings
accounts deposits, which led to a 33bp yoy fall in CASA ratio to 30.5% (up by
33bp sequentially).
The banks yield on advances declined by 76bp qoq to 10.9% due to interest
reversal of `151cr, while cost of deposits also declined by 8bp qoq to 6.8%,
leading to a 42bp sequential fall in reported NIM to 3.2%. Yield on investments for
the bank declined by 16bp qoq to 7.5%.
-
7/31/2019 Indian Bank Result Updated
4/11
Indian Bank | 4QFY2012 Result Update
May 14, 2012 4
Exhibit 4:Business growth trends
Source: Company, Angel Research
Exhibit 5:CASA ratio improved sequentially
Source: Company, Angel Research
Exhibit 6:76bp qoq dip in yield on advances leads to...
Source: Company, Angel Research
Exhibit 7:... sequential fall of 42bp in reported NIM
Source: Company, Angel Research
Strong growth in fee income as recoveries decline
Growth in fee income for the bank was strong at 31.9% yoy to `234cr. Treasury
income of the bank for the quarter came in at`27cr in 4QFY2012 vis--vis`5cr in
4QFY2011. Recoveries from written-off accounts were sluggish, declining by
48.3% yoy to`46cr. Overall, other income excluding treasury grew at a subdued
pace of 5.1% yoy to`280cr.
Asset quality deteriorates
The banks asset quality deteriorated sequentially during 4QFY2012, with gross
and net NPAs increasing considerably on a qoq basis. While gross NPAs increased
sequentially to 2.0% during the quarter from 1.4%, net NPA ratio climbed to 1.3%
from 0.8%. Annualized slippage ratio increased on a sequential basis to 5.5% in
4QFY2012 as against comfortable 1.6% witnessed in 3QFY2012. Major sectors
contributing to the steep rise in slippages were infra (`192cr), glass (`109cr), textile
(`97cr), gem and gold trade (`91cr), auto and engineering (`91cr), real estate
(`67cr) and agri (`66cr).Provision coverage ratio (including technical write-offs)
for the bank dipped by 637bp to 70.1%, marginally above the regulatory specifiedlevels of 70%.
20.1
21.3
23.5
18.2
20.0
24.0
21.3
18.6
17.8
14.2
71.1
74.7
73.873.4
74.8
68.0
70.0
72.0
74.0
76.0
-
5.0
10.0
15.0
20.0
25.0
30.0
4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
Adv. yoy chg (%) Dep. yoy chg (%) CDR (%, RHS)
30.8
31.0
29.8
30.2
30.5
15.1 15.0
9.511.1
13.0
-
10.0
20.0
29.0
30.0
31.0
32.0
4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
CASA ratio CASA yoy growth (%, RHS)
10.5711.13
12.0711.66
10.90
4.00
6.00
8.00
10.00
12.00
14.00
4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
(%)
3.86
3.43
3.763.58
3.16
2.00
2.40
2.80
3.20
3.60
4.00
4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
(%)
-
7/31/2019 Indian Bank Result Updated
5/11
Indian Bank | 4QFY2012 Result Update
May 14, 2012 5
Additionally, the banks restructured book increased by ~`3,330cr to `8,902cr
during the quarter. The increase in restructured book can be majorly attributed to
restructuring of loans worth ~`800cr to Air India and ~`1,200cr to the power
sector. Going ahead, the bank is expected to restructure ~`
1,157cr worth ofadvances in 1QFY2013, of which ~50% would be Rajasthan discoms.
Exhibit 8:Asset quality deteriorates in 4QFY2012
Source: Company, Angel Research
Exhibit 9:Slippage ratio surges in 4QFY2012
Source: Company, Angel Research
Exhibit 10:Cost-to-income ratio spikes up
Source: Company, Angel Research
Exhibit 11:Opex-to-average asset trends
Source: Company, Angel Research
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, visible
amongst other things in the substantial ~50bp decline in the bank's operating
costs as a percentage of assets. Additionally, the bank's CMD has a five-year
tenure, which provides a reasonable strategic stability to the bank.
Rural and semi-urban presence relatively high, moderate CASA
Indian Bank opened 95 branches in FY2012, taking its total branch network to
1,958. The bank has higher proportion of rural and semi-urban presence (~55%
of its total branches). Aided by this, the bank has moderate CASA of 30.5% as of
FY2012, with CASA registering a 17.2% CAGR during FY200712 and growing by
13.0% yoy in FY2012.
1.0
1.0
1.2
1.4
2.0
0.5
0.5
0.7
0.8
1.3
84.3 84.179.4 76.5
70.1
-
20.0
40.0
60.0
80.0
100.0
0.2
0.7
1.2
1.7
2.2
4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
Gross NPAs (%) Net NPAs (%) NPA coverage (%, RHS)
1.9
0.9 2
.01.6
5.5
0.8
0.2 0.3 0.3
1.4
-
0.20.4
0.6
0.8
1.0
1.2
1.4
1.6
-
1.0
2.0
3.0
4.0
5.0
6.0
4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
Slippages (%) Credit cost (%, RHS)
309
359
367
372
386
170
139
190
168
206
34.738.9 37.7 37.2
42.6
-
10.0
20.0
30.0
40.0
-
150
300
450
600
750
4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
Staff exps (` cr) Other opex (` cr) CIR (%, RHS)
34.7
38.9
37.7
37.2
42.6
1.6 1.6
1.7
1.6
1.7
1.5
1.6
1.6
1.7
1.7
1.8
-
10.0
20.0
30.0
40.0
50.0
4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
Cost-to-income ratio (%) Opex to average assets (%, RHS)
-
7/31/2019 Indian Bank Result Updated
6/11
Indian Bank | 4QFY2012 Result Update
May 14, 2012 6
Investment concerns
Relatively high yields
A larger portion of SME and mid-corporate loans has contributed to the banksrelatively 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 NIM 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 just started feeling the heat on the asset-quality
front, as evident from the surge in slippages and increased restructuring.
Accordingly, going ahead, as in case of other banks with unsustainably high
yields, we remain cautious on the banks asset quality and NIM outlook.
Outlook and valuation
The stock currently trades at 0.7x FY2014E ABV, below its five-year trading range
(0.8x-1.3x) and median of 1.0x. Due to cheap valuations, we have an Accumulaterating on the stock with a target price of `197. However, in our view, upsides arelikely to be lower than peers, as we remain circumspect on the banks high RoAs.
-
7/31/2019 Indian Bank Result Updated
7/11
Indian Bank | 4QFY2012 Result Update
May 14, 2012 7
Exhibit 12:Key assumptionsParticulars (%) Earlier estimates Revised estimatesFY2013E FY2014E FY2013E FY2014ECredit growth 17.5 18.0 18.0 18.0Deposit growth 17.0 17.0 19.0 18.0
CASA ratio 28.3 27.3 28.5 27.3
NIM 3.5 3.3 3.4 3.3
Other income growth 3.4 7.3 4.9 7.5
Growth in staff expenses 15.0 15.0 15.0 15.0
Growth in other expenses 15.0 15.0 15.0 15.0
Slippages 2.1 2.3 2.6 2.6
Coverage ratio 76.0 75.0 70.0 70.0
Source: Company, Angel Research
Exhibit 13:Change in estimatesParticulars(` cr)
FY2013 FY2014Earlierestimates Revisedestimates % chg Earlierestimates Revisedestimates % chg
NII 5,222 5,075 (2.8) 5,905 5,789 (2.0)
Non-interest income 1,248 1,238 (0.8) 1,339 1,330 (0.7)
Operating income 6,469 6,312 (2.4) 7,244 7,119 (1.7)Operating expenses 2,502 2,515 0.5 2,877 2,892 0.5
Pre-prov. profit 3,968 3,797 (4.3) 4,367 4,227 (3.2)Provisions & cont. 1,020 1,256 23.1 1,206 1,393 15.5
PBT 2,948 2,542 (13.8) 3,161 2,834 (10.3)
Prov. for taxes 956 737 (22.9) 1,026 920 (10.3)
PAT 1,991 1,805 (9.4) 2,135 1,915 (10.3)Source: Company, Angel Research
Exhibit 14:P/ABV bands
Source: Company, Angel Research
0
100
200
300
400
500
600
Mar-07
Jun-0
7
Sep-0
7
Dec-0
7
Mar-08
Jun-0
8
Sep-0
8
Dec-0
8
Mar-09
Jun-0
9
Sep-0
9
Dec-0
9
Mar-10
Jun-1
0
Sep-1
0
Dec-1
0
Mar-11
Jun-1
1
Sep-1
1
Dec-1
1
Mar-12
Jun-1
2
Sep-1
2
Dec-1
2
Mar-13
Price(`) 0.5x 0.8x 1.1x 1.4x 1.7x
-
7/31/2019 Indian Bank Result Updated
8/11
Indian Bank | 4QFY2012 Result Update
May 14, 2012 8
Exhibit 15:Recommendation summaryCompany Reco. CMP(`) Tgt.Price (`) Upside(%) FY2014EP/ABV (x) FY2014ETgt. P/ABV (x) FY2014EP/E (x) FY12-14ECAGR in EPS (%) FY2014ERoA (%) FY2014ERoE (%)AxisBk Buy 994 1,587 59.6 1.3 2.2 7.1 16.4 1.5 20.3
FedBk Neutral 413 - - 1.0 - 7.2 12.5 1.3 14.5
HDFCBk Accumulate 501 567 13.2 2.9 3.3 14.1 27.0 1.7 22.1
ICICIBk* Buy 799 1,201 50.3 1.3 1.9 9.9 20.4 1.5 16.0
SIB Neutral 22 - - 1.0 - 5.8 4.5 0.8 17.5
YesBk Buy 318 470 47.6 1.6 2.4 7.7 22.5 1.4 23.3
AllBk Accumulate 147 166 13.0 0.6 0.7 3.5 6.2 0.9 17.6
AndhBk Neutral 104 - - 0.6 - 4.1 3.3 0.9 16.0
BOB Buy 625 925 48.1 0.7 1.1 4.2 11.1 1.1 18.2
BOI Buy 353 411 16.3 0.7 1.0 4.5 23.3 0.8 16.9
BOM Buy 47 55 17.3 0.6 0.7 3.6 45.3 0.7 17.2
CanBk Buy 409 522 27.7 0.7 0.9 4.4 11.8 0.9 16.4CentBk Neutral 76 - - 0.7 - 3.7 100.1 0.5 14.4
CorpBk Buy 406 486 19.7 0.5 0.7 3.6 5.3 0.8 16.5
DenaBk Buy 82 111 35.9 0.5 0.7 3.1 6.6 0.9 17.0
IDBI# Buy 89 117 30.7 0.5 0.7 3.7 22.7 0.9 14.8
IndBk Accumulate 177 197 10.8 0.7 0.7 4.1 4.8 1.1 16.9IOB Buy 79 96 21.3 0.5 0.6 3.7 28.3 0.6 13.9
J&KBk Accumulate 861 960 11.5 0.8 0.9 4.4 8.8 1.4 18.6
OBC Buy 217 274 25.9 0.5 0.6 3.4 27.7 0.8 14.3
PNB Buy 724 1,066 47.3 0.7 1.1 4.1 10.3 1.0 18.1
SBI* Buy 1,840 2,511 36.5 1.1 1.6 6.8 23.6 1.0 19.1
SynBk Buy 90 131 45.4 0.5 0.7 3.0 17.3 0.8 17.1
UcoBk Neutral 66 - - 0.6 - 3.7 13.0 0.6 15.4
UnionBk Buy 201 276 37.3 0.7 0.9 4.0 24.8 0.8 17.5
UtdBk Buy 57 78 37.0 0.4 0.6 2.5 22.5 0.7 16.5
VijBk Neutral 52 - - 0.6 - 4.3 13.5 0.5 13.7
Source: Company, Angel Research; Note: *Target multiples=SOTP Target Price/ABV (including subsidiaries),# Without adjusting for SASF
-
7/31/2019 Indian Bank Result Updated
9/11
Indian Bank | 4QFY2012 Result Update
May 14, 2012 9
Income statementY/E March (` cr) FY08 FY09 FY10 FY11 FY12 FY13E FY14ENII 1,992 2,609 3,161 4,036 4,418 5,075 5,789- YoY Growth (%) 6.4 31.0 21.2 27.7 9.5 14.9 14.1Other Income 1,068 1,035 1,316 1,182 1,180 1,238 1,330- YoY Growth (%) 29.7 (3.0) 27.1 (10.2) (0.2) 4.9 7.5
Operating Income 3,060 3,644 4,478 5,218 5,598 6,312 7,119- YoY Growth (%) 13.5 19.1 22.9 16.5 7.3 12.8 12.8
Operating Expenses 1,400 1,415 1,730 1,926 2,187 2,515 2,892- YoY Growth (%) 12.3 1.1 22.3 11.3 13.5 15.0 15.0
Pre-Provision Profit 1,659 2,229 2,747 3,292 3,411 3,797 4,227- YoY Growth (%) 14.6 34.3 23.3 19.8 3.6 11.3 11.3
Prov. & Cont. 424 443 396 657 1,195 1,256 1,393- YoY Growth (%) (24.8) 4.3 (10.6) 66.1 81.9 5.0 10.9
Profit Before Tax 1,235 1,786 2,352 2,634 2,216 2,542 2,834- YoY Growth (%) 39.7 44.6 31.7 12.0 (15.9) 14.7 11.5
Prov. for Taxation 226 541 797 920 469 737 920- as a % of PBT 18.3 30.3 33.9 34.9 21.2 29.0 32.4
PAT 1,009 1,245 1,555 1,714 1,747 1,805 1,915- YoY Growth (%) 32.8 23.5 24.9 10.2 1.9 3.3 6.1
Preference Dividend 40 43 46 46 37 37 36PAT avl. To equity sh. 969 1,203 1,509 1,668 1,710 1,767 1,878- YoY Growth (%) 33.9 24.1 25.5 10.5 2.5 3.4 6.3
Balance sheetY/E March (` cr) FY08 FY09 FY10 FY11 FY12 FY13E FY14EShare Capital 830 830 830 830 830 830 830
Equity 430 430 430 430 430 430 430
Preference 400 400 400 400 400 400 400
Reserves & Surplus 4,381 6,306 7,442 8,691 9,972 11,339 12,793
Deposits 61,046 72,582 88,228 105,804 120,804 143,757 169,633
- Growth (%) 29.6 18.9 21.6 19.9 14.2 19.0 18.0
Borrowings 1,283 531 657 800 2,828 3,346 3,930
Tier 2 Capital 216 300 300 1,300 2,044 2,412 2,847
Other Liab. & Prov. 2,752 3,573 3,932 4,293 4,941 5,625 6,478
Total Liabilities 70,508 84,122 101,389 121,718 141,419 167,310 196,510Cash Balances 6,433 6,212 7,061 6,878 6,319 5,750 6,785
Bank Balances 340 472 1,052 1,684 2,494 2,951 3,466
Investments 21,915 22,801 28,268 34,784 37,976 46,990 54,642
Advances 39,839 51,465 62,146 75,250 90,324 106,582 125,767
- Growth (%) 37.1 29.2 20.8 21.1 20.0 18.0 18.0
Fixed Assets 539 1,594 1,580 1,606 1,631 1,871 2,132
Other Assets 1,442 1,578 1,282 1,516 2,676 3,165 3,718
Total Assets 70,508 84,122 101,389 121,718 141,419 167,310 196,510- Growth (%) 25.6 19.3 20.5 20.1 16.2 18.3 17.5
-
7/31/2019 Indian Bank Result Updated
10/11
Indian Bank | 4QFY2012 Result Update
May 14, 2012 10
Ratio analysis
Y/E March FY08 FY09 FY10 FY11 FY12 FY13E FY14EProfitability ratios (%)NIMs 3.2 3.5 3.5 3.7 3.5 3.4 3.3Cost to Income Ratio 45.8 38.8 38.6 36.9 39.1 39.8 40.6
RoA 1.6 1.6 1.7 1.5 1.3 1.2 1.1
RoE 25.8 24.7 25.6 23.5 20.4 18.2 16.9
B/S ratios (%)CASA Ratio 32.3 31.6 32.2 30.9 30.5 28.5 27.3
Credit/Deposit Ratio 65.3 70.9 70.4 71.1 74.8 74.1 74.1
CAR 12.9 13.3 12.7 13.6 14.2 13.8 13.3
- Tier I 11.4 11.3 11.1 11.0 11.0 10.6 10.2
Asset Quality (%)Gross NPAs 1.2 0.9 0.8 1.0 2.0 3.3 4.3
Net NPAs 0.2 0.2 0.2 0.5 1.3 1.6 1.8
Slippages 1.5 0.6 1.1 1.5 2.5 2.6 2.6
Loan loss prov. /avg. assets 0.6 0.0 0.4 0.6 0.6 0.7 0.7
Provision Coverage 79.9 79.6 93.6 84.3 70.1 70.0 70.0
Per Share Data (`)EPS 22.5 28.0 35.1 38.8 39.8 41.1 43.7
ABVPS 106.9 127.5 154.7 184.4 209.7 239.5 271.2
DPS 3.0 5.0 6.5 7.5 7.5 8.0 8.5
Valuation RatiosPER (x) 7.9 6.3 5.1 4.6 4.5 4.3 4.1
P/ABVPS (x) 1.7 1.4 1.1 1.0 0.8 0.7 0.7
Dividend Yield 1.7 2.8 3.7 4.2 4.2 4.5 4.8
DuPont Analysis (%)NII 3.1 3.4 3.4 3.6 3.4 3.3 3.2
(-) Prov. Exp. 0.7 0.6 0.4 0.6 0.9 0.8 0.8
Adj. NII 2.5 2.8 3.0 3.0 2.4 2.5 2.4
Treasury 0.4 0.3 0.4 0.1 0.1 0.1 0.0
Int. Sens. Inc. 2.9 3.1 3.4 3.2 2.5 2.5 2.5
Other Inc. 1.3 1.1 1.0 0.9 0.8 0.7 0.7
Op. Inc. 4.2 4.1 4.4 4.1 3.3 3.3 3.1
Opex 2.2 1.8 1.9 1.7 1.7 1.6 1.6PBT 2.0 2.3 2.5 2.4 1.7 1.6 1.6
Taxes 0.4 0.7 0.9 0.8 0.4 0.5 0.5
RoA 1.6 1.6 1.7 1.5 1.3 1.2 1.1Leverage (x) 16.2 15.3 15.3 15.3 15.4 15.6 16.1
RoE 25.8 24.7 25.6 23.5 20.4 18.2 16.9
-
7/31/2019 Indian Bank Result Updated
11/11
Indian Bank | 4QFY2012 Result Update
May 14, 2012 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 investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make
such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies
referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and
risks of such an investment.
Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make
investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this
document are those of the analyst, and the company may or may not subscribe to all the views expressed within.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals.
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 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 Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify,nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. WhileAngel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory,compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking orother advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in
the past.
Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in
connection with the use of this information.
Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to thelatest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may haveinvestment positions in the stocks recommended in this report.
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