jammu & kashmir bank result updated

8/3/2019 Jammu & Kashmir Bank Result Updated

http://slidepdf.com/reader/full/jammu-kashmir-bank-result-updated 1/11

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

Particulars (` cr) 2QFY12 1QFY12 % chg (qoq) 2QFY11 % chg (yoy)

NII 434 437 (0.7) 373 16.5

Pre-Prov. Profit 313 316 (1.1) 284 10.0

PAT 200 182 9.5 163 22.3

Source: Company, Angel Research

For 2QFY2012, J&K Bank reported healthy 22.3% growth in its net profit to ` 200cr, higher than our expectations, mostly on account of lower provisioningexpenses than estimated by us. Asset quality remained stable; however, CASA ratioweakened by 222bp qoq and slipped to sub-40% levels (38.2%). We recommend a

Neutral rating on the stock.

Asset quality remains stable, however margins compress by 13bp sequentially: Thebank’s loan book grew sequentially by 6.9% to ` 28,236cr and deposits increasedsignificantly by 10.1% qoq to ` 47,425cr. The CD ratio due to heavy growth indeposits slipped below 60% (59.5% as of 2QFY2012). While CASA deposits grew by healthy 4.0% qoq, the pace was lower than the growth in overall deposits, leading toa 222bp decline in CASA ratio to 38.2%. The bank’s cost of deposits till 1QFY2012had only risen by 47bp since FY2010. The effect of rising interest rates was finally feltin 2QFY2012 as cost of deposits increased by 79bp qoq to 6.2%. Yield on advancesincreased by 38bp qoq to 11.8% and yield on investments rose sharply by 90bp to7.2%; however, the combined effect was not able to fully compensate for the jump incost of deposits, leading to a 13bp contraction in reported NIM to 3.7%. The bank

had already shifted to system-based NPA recognition and, hence, did not see any material rise in its NPA ratios. Gross NPA ratio as of 2QFY2012 stood at 1.9% (2.0%in 1QFY2012) and net NPA ratio stood at 0.2% (0.2% in 1QFY2012). Provisioningcoverage ratio including technical write-offs stood at healthy 92.0%.

Outlook and valuation: The stock is trading at 0.9x FY2013E ABV vis-à-vis its historicrange of 0.8-1.4x and five-year median of 1.0x. Immediate levers in the form ofincreased CD ratio from the current low of 59.5% into higher yielding advances arelikely to provide near-term higher momentum to NII growth for the bank relative toother mid-size banks. Further, with 38.2% CASA ratio, the bank is more favorably placed than its peers to handle NIM pressures from high deposit rates. On the flipside, a potential move to increase savings deposit rates would impact the banksignificantly. Also, the bank’s increasing non-J&K exposure on the asset side poses

medium-term concerns. Being amongst the highest outperformers since December2010, we believe in relative terms, the stock is now fairly priced. Hence,we recommend a Neutral rating on the stock.

Key financials Y/E March (` cr) FY2010 FY2011 FY2012E FY2013E

NII 1,119 1,544 1,771 1,897

% chg 11.9 37.9 14.7 7.1

Net Profit 512 615 739 771

% chg 25.0 20.1 20.2 4.4

NIM (%) 2.9 3.4 3.4 3.2

EPS (`) 105.7 126.9 152.5 159.1

P/E (x) 7.8 6.5 5.4 5.2

P/ABV (x) 1.3 1.1 1.0 0.9

RoA (%) 1.3 1.3 1.4 1.3

RoE (%) 18.2 19.0 19.7 17.8

Source: Com an , An el Research

NEUTRALCMP ` 823

Target Price -

Investment Period -

Stock Info

Sector Banking

Market Cap ( ` cr) 3,992

Beta 0.6

52 Week High / Low 935/695

Avg. Daily Volume 10,877

Face Value ( ` ) 10

BSE Sensex 16,858

Nifty 5,073

Reuters Code JKBK.BO

Bloomberg Code J&KBK@IN

Shareholding Pattern (%)

Promoters 53.2

MF / Banks / Indian Fls 2.9

FII / NRIs / OCBs 25.3

Indian Public / Others 18.7

Abs. (%) 3m 1yr 3yr

Sensex (3.5) (14.1) 78.6

J&K Bank (5.5) (7.2) 116.4

Vaibhav Agrawal

022 – 3935 7800 Ext: 6808

[email protected]

Shrinivas Bhutda

022 – 3935 7800 Ext: 6845

[email protected]

Varun Varma

022 – 3935 7800 Ext: 6847

[email protected]

Jammu and Kashmir Bank

Performance Highlights

2QFY2012 Result Update | Banking

November 2, 2011



Jammu and Kashmir Bank | 2QFY2012 Result Update

November 2, 2011 2

Exhibit 1: 2QFY2012 performance


Interest earned 1,156 1,056 9.4 899 28.6

- on Advances / Bills 806 751 7.4 635 26.9- on investments 343 299 14.5 259 32.1

- on balance with RBI & others 7 6 15.4 4 68.1

Interest Expended 721 619 16.6 526 37.1

Net Interest Income 434 437 (0.7) 373 16.5

Other income 71 67 6.3 74 (4.4)

Other income excl. treasury 63 57 10.3 56 11.4

- Fee Income 40 42 (4.5) 38 3.2

- Treasury Income 8 10 (16.3) 18 (53.3)

- Others 23 15 50.5 18 29.1

Operating income 505 504 0.3 447 13.1

Operating expenses 193 188 2.6 163 18.5

- Employee expenses 126 128 (1.8) 107 16.8

- Other Opex 67 60 12.0 55 21.6

Pre-provision Profit 313 316 (1.1) 284 10.0

Provisions & Contingencies 22 44 (49.8) 39 (42.5)

- Provisions for NPAs 13 25 (48.0) 39 (66.7)

- Provisions for Investments 4 4 22.7 (5) (193.9)

- Other Provisions 5 16 (69.4) 5 4.8

PBT 290 272 6.8 246 18.3

Provision for Tax 91 90 1.3 82 10.3

PAT 200 182 9.5 163 22.3

Effective Tax Rate (%) 31.3 33.0 (170)bp 33.5 (226)bp


Exhibit 2: 2QFY2012 Actual vs. Angel estimates

Particulars (` cr) Actual Estimates Var. (%)

Net interest income 434 426 2.0

Non-interest income 71 75 (5.1)

Operating income 505 501 1.0

Operating expenses 193 197 (2.1)

Pre-prov. profit 313 304 2.9

Provisions & cont. 22 42 (46.4)

PBT 290 262 10.8

Prov. for taxes 91 85 6.7

PAT 200 177 12.7





November 2, 2011 3

Exhibit 3: 2QFY2012 performance


Advances ( ` cr) 28,236 26,403 6.9 23,183 21.8

Deposits ( ` cr) 47,425 43,078 10.1 39,688 19.5

Credit-to-Deposit Ratio (%) 59.5 61.3 (175)bp 58.4 112bp

Current deposits ( ` cr) 4,590 4,198 9.3 5,298 (13.4)

Saving deposits ( ` cr) 13,515 13,204 2.4 11,031 22.5

CASA deposits ( ` cr) 18,105 17,401 4.0 16,329 10.9

CASA ratio (%) 38.2 40.4 (222)bp 41.1 (297)bp

CAR (%) 13.6 14.4 (76)bp 15.6 (195)bp

Tier 1 CAR (%) 11.3 11.8 (51)bp 12.8 (143)bp

Profitability Ratios (%)

Cost of deposits 6.2 5.4 79bp 5.2 96bp

Yield on advances 11.8 11.4 38bp 11.0 80bp

Yield on investments 7.2 6.3 90bp 6.1 112bpReported NIM 3.7 3.8 (13)bp 3.7 3bp

Cost-to-income ratio 38.1 37.3 88bp 36.4 174bp

Asset quality

Gross NPAs ( ` cr) 542 528 2.6 513 5.7

Gross NPAs (%) 1.9 2.0 (8)bp 2.2 (28)bp

Net NPAs ( ` cr) 62 58 6.3 31 100.7

Net NPAs (%) 0.2 0.2 0bp 0.1 9bp

Provision Coverage Ratio (%) 92.0 92.5 (46)bp 95.5 (347)bp

Slippage ratio (%) 0.8 1.3 (56)bp 1.9 (112)bp

NPA to avg. assets (%) 0.1 0.2 (10)bp 0.4 (25)bp


Strong growth in business; CASA ratio falls below 40%

The business picked up pace in 2QFY2012 post the sequential contraction

witnessed in 1QFY2012. The bank’s loan book grew sequentially by 6.9% to

` 28,236cr, while deposits increased significantly by 10.1% qoq to ` 47,425cr. The

CD ratio due to heavy growth in deposits slipped below 60% (59.5% as of

2QFY2012). While CASA deposits grew by healthy 4.0% qoq, the pace was much

lower than the growth in overall deposits, leading to a 222bp decline in CASA

ratio to 38.2%.

The bank’s outstanding loan book concentration within the J&K state is ~39%,

while that outside the state is ~61%. As margins are higher within the state due to

lower cost of deposits on account of higher proportion of CASA deposits,

management would like ~50% of loan portfolio concentrated within the J&K state

by the end of FY2012. The bank is planning to open 100 new branches in the

J&K, in order to increase its low-cost deposits and maintain its margins going

ahead.

Management is mulling an increase in savings deposit rate, which we feel might

not be required as the bank faces very less competition in the parent state of J&K,

which accounts for ~75% of its low-cost deposits. Any move to increase the

savings rate before its peers might be premature and would further raise the cost

of deposits for the bank (79bp qoq rise in 2QFY2012), eventually hurting its

profitability.




November 2, 2011 4

Exhibit 4: Strong business growth in 2QFY2012


Exhibit 5: CASA ratio falls below 40%


The bank’s cost of deposits till 1QFY2012 had only risen by 47bp since FY2010.The effect of rising interest rates was finally felt in 2QFY2012 as cost of deposits

grew by 79bp qoq (also partly due to a 222bp qoq decline in CASA ratio) to 6.2%.

Yield on advances increased by 38bp qoq to 11.8% and yield on investments rose

sharply by 90bp to 7.2%. However, the combined effect was not able to fully

compensate for the jump in cost of deposits, leading to a 13bp contraction in

reported NIM to 3.7%.

Exhibit 6: Sharp rise in cost of deposits in 2QFY2012...


Exhibit 7: ...leads to a 13bp qoq contraction in NIM


Healthy performance sequentially on other income front

During the quarter, non-interest income increased by 6.3% qoq to ` 71cr. Profits

from treasury declined by 16.3% qoq to ` 8cr, however income excluding treasury

witnessed healthy growth of 10.3% qoq to ` 63cr.

0 . 6

9 . 4 3

. 3 0 . 8

6 . 9

5 . 5

3 . 0

9 . 3

( 3 . 6

)

1 0 . 1

58.4

62.0

58.6

61.359.5

50.0

52.0

54.0

56.0

58.0

60.0

62.0

64.0

(5.0)

-

5.0

10.0

15.0

2QFY11 3QFY11 4QFY11 1QFY12 2QFY12

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

4 1 . 1

3 9 . 6

4 0 . 5

4 0 . 4

3 8 . 2

35.6

16.819.4

22.2

10.9

0.0

10.0

20.0

30.0

40.0

36.0

37.0

38.0

39.0

40.0

41.042.0


CASA ratio (%) CASA growth (% yoy, RHS))

5.21 5.12

5.36 5.38

6.17

4.00

4.75

5.50

6.25


3.663.70 3.72

3.82

3.69

3.00

3.20

3.40

3.60

3.80

4.00





November 2, 2011 5

Asset quality remains stable; Slippage ratio declines further

The bank had already shifted to system-based NPA recognition and, hence,

did not see any material rise in its NPA ratios. Gross NPA ratio as of

2QFY2012 stood at 1.9% (2.0% in 1QFY2012) and net NPA ratio stood at

0.2% (0.2% in 1QFY2012). Provisioning coverage ratio including technical

write-offs stood at healthy 92.0%.

The bank’s outstanding restructured book as of 2QFY2012 stands at ~` 2,200cr,

of which ` 188cr were restructured during the current quarter, highlighting the

concerns of increasing exposure outside J&K, where rather than relying on its own

credit appraisal, the bank mainly has to go for low-margin syndicated loans.

As more than half of the restructured book is through CDR mechanism,

management is confident that these accounts will continue performing going

ahead. We estimate slippage ratio to be 1.3% and 1.6% for FY2012 and FY2013,

respectively.

Exhibit 8: Best-in-class asset quality


Exhibit 9: Trend in NPA provision-to-avg. asset


Investment arguments

Robust asset quality

Over the years, the bank has maintained robust asset quality, with the

best-in-industry provision coverage ratio (92.0% as of 2QFY2012). Slippages

declined considerably (0.8% for 2QFY2012 compared to 1.3% for 4QFY2011),

and were lower compared to most other PSU banks. We have conservatively

factored in slippage levels of 1.3% and 1.6% for FY2012 and FY2013,

respectively.

Strong branch network and legacy – Dominant market share The bank has ~450 branches in J&K. Due to its strong branch network and legacy

of banking relationships, the bank has a dominant 70% market share in deposits

in J&K. CASA deposits constituted strong 47.8% of incremental deposits growth

from FY2004–11. This strong base of low-cost deposits is expected to sustain

relatively higher calculated NIM of 3.2–3.4% among mid-size banks.

2 . 2

2 . 0

2 . 0

2 . 0

1 . 9

0 . 1

0 . 0

0 . 2

0 . 2

0 . 2

95.598.4

92.7 92.5 92.0

70.0

80.0

90.0

100.0

-

0.5

1.0

1.5

2.0

2.5


Gross NPAs (%) Net NPAs (%) PCR (%, RHS)

0.4

0.1

0.3

0.2

0.1

0.0

0.1

0.2

0.3

0.4


NPA Provisions to Avg Assets (%)




November 2, 2011 6

Outlook and valuation

The stock is trading at 0.9x FY2013E ABV vis-à-vis its historic range of 0.8–1.4x and

five-year median of 1.0x. Immediate levers in the form of increased CD ratio from the

current low of 59.5% into higher yielding advances are likely to provide near-term

higher momentum to NII growth for the bank relative to other mid-size banks. Further,

with 38.2% CASA ratio, the bank is more favorably placed than its peers to handle

NIM pressures from high deposit rates. On the flip side, a potential move to increase

savings deposit rates would impact the bank significantly. Also the bank’s increasing

non-J&K exposure on the asset side poses medium-term concerns. Being amongst the

highest outperformers since December 2010, we believe in relative terms, the stock is

now fairly priced. Hence, we recommend a Neutral rating on the stock

Exhibit 10: Key assumptions

Particulars (%) Earlier estimates Revised estimatesFY2012 FY2013 FY2012 FY2013

Credit growth 16.0 20.0 18.0 20.0

Deposit growth 11.0 12.0 13.0 11.0

CASA ratio 40.4 40.0 39.7 39.6

NIMs 3.3 3.1 3.4 3.2

Other income growth (11.5) 17.6 (10.4) 17.6

Growth in staff expenses 2.5 13.0 2.5 13.0

Growth in other expenses 17.0 13.0 17.0 13.0

Slippages 1.3 1.6 1.3 1.6

Coverage ratio 91.0 85.0 91.0 85.0

Source: Angel Research

Exhibit 11: Change in estimates

Particulars (` cr)

FY2012 FY2013

Earlierestimates

Revisedestimates

Var. (%)Earlier

estimatesRevised

estimatesVar. (%)

NII 1,702 1,771 4.1 1,788 1,897 6.1

Non-interest income 323 327 1.2 380 384 1.2

Operating income 2,025 2,098 3.6 2,168 2,281 5.2

Operating expenses 812 812 - 918 918 -

Pre-prov. profit 1,213 1,286 6.0 1,250 1,364 9.0Provisions & cont. 189 192 1.2 214 222 3.6

PBT 1,024 1,094 6.9 1,037 1,142 10.2

Prov. for taxes 332 355 6.9 336 371 10.2

PAT 691 739 6.9 700 771 10.2

Source: Angel Research




November 2, 2011 7

Exhibit 12: P/ABV band

Source: Company, Bloomberg, Angel Research

0

300

600

900

1,200

1,500

M

a r - 0 2

O

c t - 0 2

M

a y - 0

3

D

e c - 0

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J u l - 0 4

F

e b - 0

5

S

e p - 0

5

A

p r - 0 6

N

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6

J u n - 0

7

J a n - 0

8

A u g - 0

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M

a r - 0 9

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M

a y - 1

0

D

e c - 1

0

J u l - 1 1

F

e b - 1

2

Price (`) 0.5x 0.75x 1x 1.25x 1.5x




November 2, 2011 8

Exhibit 13: Recommendation summary

Company Reco.CMP

(`)Tgt. price

(`)Upside

(%)FY2013EP/ABV (x)

FY2013ETgt P/ABV (x)

FY2013EP/E (x)

FY2011E-13EEPS CAGR (%)

FY2013ERoA (%)

FY2013ERoE (%)

AxisBk Buy 1,128 1,414 25.4 1.8 2.3 9.9 17.7 1.5 20.0

FedBk Accumulate 412 444 7.9 1.1 1.2 8.4 19.5 1.2 14.0

HDFCBk Neutral 483 - - 3.3 - 16.8 30.5 1.7 20.9

ICICIBk* Buy 887 1,114 25.6 1.6 2.0 13.0 23.3 1.4 15.4

SIB Neutral 23 - - 1.1 - 6.8 15.6 1.0 18.2

YesBk Buy 308 355 15.4 1.9 2.3 10.2 19.9 1.3 20.8

AllBk Accumulate 161 1695.2 0.7 0.8 4.3 12.2 1.0 18.4

AndhBk Neutral 118 -- 0.8 - 5.3 (0.9) 0.9 15.8

BOB Accumulate 800 881 10.1 1.1 1.2 5.7 14.2 1.2 20.7

BOI Accumulate 333 362 8.7 0.9 1.0 5.5 15.2 0.7 17.1

BOM Accumulate 50 55 10.9 0.7 0.7 4.3 38.1 0.6 16.5

CanBk Accumulate 482 510 5.9 0.9 1.0 5.6 (3.0) 0.9 17.2CentBk Neutral 101 - - 0.7 - 5.2 (16.1) 0.5 13.9

CorpBk Buy 428 498 16.3 0.7 0.8 4.4 1.5 0.8 16.6

DenaBk Neutral 82 - - 0.6 - 3.9 7.5 0.8 16.4

IDBI# Neutral 115 - - 0.7 - 5.4 12.3 0.7 14.0

IndBk Neutral 215 - - 0.9 - 5.5 0.2 1.1 17.4

IOB Accumulate 100 107 7.3 0.6 0.7 4.0 20.0 0.6 15.9

J&KBk Neutral 823 - - 0.9 - 5.2 12.0 1.3 17.8

OBC Accumulate 286 301 5.3 0.7 0.7 5.0 5.1 0.8 14.1

PNB Accumulate 979 1,106 13.0 1.1 1.3 5.8 9.9 1.1 20.6

SBI* Buy 1,909 2,239 17.3 1.4 1.7 7.3 41.4 1.0 21.9

SynBk Buy 107 123 15.3 0.7 0.8 4.7 11.8 0.7 16.3

UcoBk Neutral 74 - - 0.9 - 4.4 15.9 0.7 16.7

UnionBk Accumulate 225 238 5.8 0.9 0.9 5.1 5.2 0.8 17.0

UtdBk Buy 71 82 15.2 0.6 0.7 4.2 13.4 0.6 14.1

VijBk Neutral 60 -- 0.8 - 7.3 (3.2) 0.4 10.5

Source: Company, Angel Research; Note:*Target multiples=SOTP Target Price/ABV (including subsidiaries), #Without adjusting for SASF




November 2, 2011 9

Income statement

Y/E March (` cr) FY07 FY08 FY09 FY10 FY11E FY12E FY13E

Net Interest Income 768 810 1,000 1,119 1,544 1,771 1,897

- YoY Growth (%) 15.7 5.5 23.4 11.9 37.9 14.7 7.1Other Income 183 263 261 416 365 327 384

- YoY Growth (%) 64.8 44.1 (0.7) 59.2 (12.4) (10.4) 17.6

Operating Income 951 1,074 1,262 1,536 1,908 2,098 2,281

- YoY Growth (%) 22.7 13.0 17.5 21.7 24.3 9.9 8.7

Operating Expenses 372 404 471 577 759 812 918

- YoY Growth (%) 7.9 8.4 16.7 22.6 31.4 7.0 13.0

Pre - Provision Profit 578 670 791 958 1,149 1,286 1,364

- YoY Growth (%) 34.7 15.9 18.0 21.2 20.0 11.9 6.0

Prov. & Cont. 163 94 159 167 215 192 222

- YoY Growth (%) (3.1) (42.2) 69.3 4.6 29.1 (11.0) 15.6

Profit Before Tax 415 576 631 792 934 1,094 1,142

- YoY Growth (%) 59.0 38.7 9.6 25.3 18.0 17.1 4.4

Prov. for Taxation 141 216 222 279 319 355 371

- as a % of PBT 33.9 37.5 35.1 35.3 34.2 32.4 32.4

PAT 274 360 410 512 615 739 771

- YoY Growth (%) 55.2 31.2 13.8 25.0 20.1 20.2 4.4

Balance sheet

Y/E March (` cr) FY07 FY08 FY09 FY10 FY11E FY12E FY13E

Share Capital 48 48 48 48 48 48 48Reserves & Surplus 1,960 2,260 2,574 2,962 3,430 3,995 4,586

Deposits 25,194 28,593 33,004 37,237 44,676 50,484 56,037

- Growth (%) 7.3 13.5 15.4 12.8 20.0 13.0 11.0

Borrowings 620 752 997 500 505 427 475

Tier 2 Capital - - - 600 600 678 753

Other Liab. & Prov. 823 1,102 1,070 1,199 1,249 1,378 1,525

Total Liabilities 28,647 32,756 37,693 42,547 50,508 57,010 63,424

Cash Balances 1,855 3,220 2,303 2,745 2,975 3,281 3,642

Bank Balances 1,759 1,217 2,972 1,870 574 1,140 1,268

Investments 7,392 8,758 10,736 13,956 19,696 20,485 20,109

Advances 17,080 18,883 20,930 23,057 26,194 30,908

- Growth (%) 17.9 10.6 10.8 10.2 13.6 18.0 20.0

Fixed Assets 183 192 199 204 394 431 465

Other Assets 377 486 552 715 676 763 849

Total Assets 28,647 32,756 37,693 42,547 50,508 57,010 63,424

- Growth (%) 8.3 14.3 15.1 12.9 18.7 12.9 11.3




November 2, 2011 10

Ratio analysis

Y/E March FY07 FY08 FY09 FY10 FY11E FY12E FY13E

Profitability ratios (%)

NIMs 2.9 2.7 2.9 2.9 3.4 3.4 3.2Cost to Income Ratio 39.2 37.6 37.3 37.6 39.8 38.7 40.2

RoA 1.0 1.2 1.2 1.3 1.3 1.4 1.3

RoE 15.2 18.2 17.4 18.2 19.0 19.7 17.8

B/S ratios (%)

CASA Ratio 37.0 39.2 38.1 40.7 40.5 39.7 39.6

Credit/Deposit Ratio 67.8 66.0 63.4 61.9 58.6 61.2 66.2

CAR 13.2 12.8 14.5 15.9 13.7 14.1 14.5

- Tier I 12.6 12.1 13.8 12.8 11.3 11.7 12.1

Asset quality (%)

Gross NPAs 2.9 2.5 2.6 2.0 1.9 2.3 2.7

Net NPAs 1.1 1.1 1.4 0.3 0.2 0.3 0.5

Slippages 1.9 1.3 2.1 0.9 1.2 1.3 1.6

NPA Prov./Avg. Assets 0.3 0.1 0.2 0.4 0.3 0.3 0.3

Provision Coverage 61.4 58.0 48.6 86.1 89.7 91.0 85.0

Per Share Data (`)EPS 56.6 74.2 84.5 105.7 126.9 152.5 159.1

ABVPS 400.2 459.2 510.4 620.8 717.4 833.8 9

DPS 11.5 15.5 16.9 22.0 26.0 31.0 32.0

Valuation Ratios

PER (x) 14.5 11.1 9.7 7.8 6.5 5.4 5.2

P/ABVPS (x) 2.1 1.8 1.6 1.3 1.1 1.0 0.9

Dividend Yield 1.4 1.9 2.1 2.7 3.2 3.8 3.9

DuPont Analysis (%)

NII 2.8 2.7 2.9 2.8 3.3 3.3 3.2

(-) Prov. Exp. 0.6 0.3 0.5 0.4 0.5 0.4 0.4

Adj. NII 2.2 2.3 2.4 2.4 2.9 2.9 2

Treasury 0.1 0.3 0.2 0.4 0.2 0.0 0.0

Int. Sens. Inc. 2.3 2.6 2.6 2.8 3.1 3.0 2.8

Other Inc. 0.5 0.6 0.5 0.6 0.6 0.6 0.6

Op. Inc. 2.9 3.2 3.2 3.4 3.6 3.5 3.4

Opex 1.4 1.3 1.3 1.4 1.6 1.5 1.5PBT 1.5 1.9 1.8 2.0 2.0 2.0 1.9

Taxes 0.5 0.7 0.6 0.7 0.7 0.7 0.6

RoA 1.0 1.2 1.2 1.3 1.3 1.4 1.3

Leverage (x) 15.2 15.4 14.9 14.2 14.3 14.3 13.9

RoE 15.2 18.2 17.4 18.2 19.0 19.7 17.8




November 2, 2011 11

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

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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 way responsible 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. While Angel 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 Jammu & Kashmir 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

jammu & kashmir bank result updated

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