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

[email protected]

Varun Varma022 3935 7800 Ext: 6847

[email protected]

Sourabh Taparia022 3935 7800 Ext: 6872

[email protected]

Indian BankPerformance Highlights

4QFY2012 Result Update | Banking

May 14, 2012


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


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


3/11


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


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%.


4/11


May 14, 2012 4

Exhibit 4:Business growth trends


Exhibit 5:CASA ratio improved sequentially


Exhibit 6:76bp qoq dip in yield on advances leads to...


Exhibit 7:... sequential fall of 42bp in reported NIM


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


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


(%)

3.86

3.43

3.763.58

3.16

2.00

2.40

2.80

3.20

3.60

4.00


(%)


5/11


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


Exhibit 9:Slippage ratio surges in 4QFY2012


Exhibit 10:Cost-to-income ratio spikes up


Exhibit 11:Opex-to-average asset trends


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


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


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


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


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


6/11


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.


7/11


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


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


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


8/11


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


9/11


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


10/11


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


11/11


May 14, 2012 11

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

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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

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