syndicate bank result updated

7/31/2019 Syndicate 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 1,337 1,325 0.9 1,161 15.1Pre-prov. profit 790 923 (14.3) 672 17.6

PAT 309 338 (8.5) 289 7.0Source: Company, Angel Research

Syndicate Bank reported a 22.0% yoy decline in its profit before tax (PBT) to `248cr,

despite healthy 17.6% growth in pre-provisioning profit on the back of higher

provisioning expenses, partly because the bank was one of the few PSU banks which

increased provision coverage sequentially. However, net profit grew by moderate 7.0%

yoy on the back of negative tax expense of `61cr during the quarter as against taxexpense of `30cr in 3QFY2012. We recommend a Buy rating on the stock.Business growth remains moderate; slippages surge: During the quarter, businessgrowth remained moderate. Advances grew by 15.8% yoy to `123,620cr, aided by

healthy growth of 17.6% and 29.7% yoy in agriculture and weaker section credit,

respectively. Growth in deposits was relatively high compared to advances growth at

16.5% yoy, mainly on account of 24.2% growth in term deposits to `108,606cr.

CASA deposits grew by 10.7% yoy on account of moderate growth of 9.9% yoy in

savings deposits and 12.9% yoy in current deposits. Consequently, CASA ratio

dipped by 154bp yoy to 29.4%. Reported NIM improved by 15bp qoq to 3.60%. The

banks asset quality deteriorated sequentially with slippages increasing to `1,059cr,

much above the average quarterly run rate of `591cr for the past four quarters.

Consequently, gross annualized slippage ratio for the bank increased substantially

on a sequential basis to 4.0% during 4QFY2012 as against 1.9% in 3QFY2012.

While gross NPAs increased from 2.3% to 2.5%, net NPA ratio increased from 0.9%

to 1.0%. The bank increased its provisioning coverage to 80.1% in 4QFY2012 from

78.5% in 3QFY2012. If the bank had not increased its provisioning coverage, PBT

would have been higher by`97cr (38.4% yoy). The bank restructured ~`1,700cr of

loans during the quarter (majorly Air Indias ~`1,000cr), taking its outstanding

restructured advances to ~`6,200cr (~4.8% of the overall loan book).

Outlook and valuation: The stock is currently trading at 0.5x FY2014E ABV (itsfive-year range of 0.61.1x and median of 0.8x). Also, valuations appear cheap

compared to its peers, which are trading at higher multiples, although they have

similar or poorer fundamentals. We value the stock at 0.7x FY2014E ABV andrecommend Buy on the stock with a target price of `131.Key financialsY/E March (` cr) FY2011 FY2012 FY2013E FY2014ENII 4,383 5,085 5,912 6,869% chg 60.0 16.0 16.3 16.2

Net profit 1,048 1,313 1,561 1,806% chg 28.8 25.3 18.9 15.7

NIM (%) 3.0 3.1 3.0 3.0

EPS (`) 18.3 21.8 25.9 30.0P/E (x) 5.0 4.2 3.5 3.0P/ABV (x) 0.8 0.6 0.6 0.5

RoA (%) 0.7 0.8 0.8 0.8

RoE (%) 17.6 17.2 16.9 17.1

Source: Company, Angel Research

BUYCMP `91

Target Price `131

Investment Period 12 Months

Stock Info

Sector Banking

Market Cap (` cr) 5,469

Beta 1.2

52 Week High / Low 125/67

Avg. Daily Volume 85,892

Face Value (`) 10

BSE Sensex 16,293

Nifty 4,929

Reuters Code SBNK.BO

Bloomberg Code SNDB@IN

Shareholding Pattern (%)

Promoters 66.2

MF / Banks / Indian Fls 17.5

FII / NRIs / OCBs 4.2

Indian Public / Others 12.1

Abs. (%) 3m 1yr 3yr

Sensex (8.2) (12.3) 39.5

Syndicate Bank (18.7) (20.2) 60.7

Vaibhav Agrawal022 3935 7800 Ext: 6808

[email protected]

Varun Varma022 3935 7800 Ext: 6847

[email protected]

Sourabh Taparia022 3935 7800 Ext: 6872

[email protected]

Syndicate BankPerformance Highlights

4QFY2012 Result Update | Banking

May 11, 2012


2/11

Syndicate Bank | 4QFY2012 Result Update

May 11, 2012 2

Exhibit 1:4QFY2012 performanceParticulars (` cr) 4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy)Interest earned 4,125 3,974 3.8 3,162 30.4- on Advances / Bills 3,300 3,212 2.7 2,593 27.2- on investments 755 733 3.1 574 31.7

- on balance with RBI & others 70 18 278.9 0 43,525.0

- on others - 10 (100.0) (5) (100.0)

Interest Expended 2,788 2,649 5.2 2,001 39.3Net Interest Income 1,337 1,325 0.9 1,161 15.1Other income 300 240 24.6 255 17.7Other income excl. treasury 286 235 21.6 247 16.1

- Fee Income 159 143 11.1 160 (0.7)

- Treasury Income 13 5 168.4 8 67.8

- Profit on exchange transactions 30 31 2.7 24 27.2

- Others 98 61 59.3 63 56.3

Operating income 1,636 1,565 4.5 1,416 15.6Operating expenses 846 643 31.6 744 13.7- Employee expenses 594 394 50.7 521 14.1

- Other Opex 252 248 1.3 223 12.9

Pre-provision Profit 790 923 (14.3) 672 17.6Provisions & Contingencies 542 544 (0.3) 353 53.6- Provisions for NPAs 321 386 (17.0) 176 82.1

- Provisions for Investments (12) 10 (221.5) 2 (606.3)

- Other Provisions 234 148 58.3 175 33.9

PBT 248 379 (34.5) 319 (22.2)Provision for Tax (61) 41 (249.5) 30 (306.0)PAT 309 338 (8.5) 289 7.0Effective Tax Rate (%) (24.6) 10.8 (3544)bp 9.3 (3395)bp


Exhibit 2:4QFY2012 Actual vs. Angel estimatesParticulars (` cr) Actual Estimates % chgNet interest income 1,337 1,368 (2.3)

Non-interest income 300 283 6.0

Operating income 1,636 1,651 (0.9)Operating expenses 846 689 22.7

Pre-prov. profit 790 962 (17.8)Provisions & cont. 542 432 25.6

PBT 248 530 (53.2)

Prov. for taxes (61) 201 (130.4)

PAT 309 329 (6.0)Source: Company, Angel Research


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May 11, 2012 3

Exhibit 3:4QFY2012 performanceParticulars 4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy)Balance sheetAdvances (`cr) 123,620 114,817 7.7 106,782 15.8Deposits (`cr) 157,941 143,128 10.3 135,596 16.5

Credit-to-Deposit Ratio (%) 78.3 80.2 (195)bp 78.8 (48)bp

Current deposits (`cr) 12,129 11,020 10.1 10,739 12.9

Saving deposits (`cr) 34,295 32,994 3.9 31,207 9.9

CASA deposits (`cr) 46,424 44,014 5.5 41,946 10.7

CASA ratio (%) 29.4 30.8 (136)bp 30.9 (154)bp

CAR (%) 12.2 11.5 76bp 13.0 (80)bp

Tier 1 CAR (%) 8.9 8.4 59bp 9.3 (37)bp

Profitability Ratios (%)Cost of deposits 6.9 6.9 1bp 5.8 112bp

Yield on advances 11.0 11.1 (10)bp 9.9 116bp

Reported NIM 3.6 3.5 15bp 3.4 17bp

Cost-to-income ratio 51.7 41.1 1064bp 52.5 (84)bp

Asset qualityGross NPAs (` cr) 3,183 2,674 19.0 2,599 22.5

Gross NPAs (%) 2.5 2.3 24bp 2.4 13bp

Net NPAs (`cr) 1,185 993 19.4 1,031 15.0

Net NPAs (%) 1.0 0.9 10bp 1.0 (1)bp

Provision Coverage Ratio (%) 80.1 78.5 156bp 77.2 288bp

Slippage ratio (%) 4.0 1.9 209bp 2.4 157bp

NPA to avg. assets (%) 0.7 0.9 (20)bp 0.5 26bp


Business growth remains moderate; NIM improves by 15bp qoq

During the quarter, business growth for the bank remained moderate. Advances

grew by 15.8% yoy to `123,620cr, aided by healthy growth of 17.6% and 29.7%

yoy in agriculture and weaker section credit, respectively. Growth in deposits was

relatively high compared to growth in advances at 16.5% yoy, mainly on account

of 24.2% growth in term deposits to `108,606cr.

CASA deposits grew by 10.7% yoy on account of moderate growth of 9.9% yoy insavings deposits and 12.9% yoy in current deposits. Consequently, CASA ratio

dipped by 154bp yoy to 29.4%. Even, on a sequential basis, CASA ratio declined

by 136bp on the back of a 3.9% qoq increase in savings deposits, despite a

healthy 10.1% qoq increase in current deposits.

Cost of deposits remained flat sequentially at 6.92%. Yield on investment grew by

57bp qoq to 8.04%, while yield on advances declined by 10bp qoq to 11.01%.

Reported NIM for the bank improved by 15bp qoq to 3.60%.


4/11


May 11, 2012 4

Exhibit 4:Business growth remains moderate


Exhibit 5:CASA ratio dips by 136bp qoq


Exhibit 6:CoD remains flat on a qoq basis


Exhibit 7:NIM improves by 15bp qoq


Asset quality deteriorates sequentially; slippages surge

The banks asset quality deteriorated sequentially with slippages increasing to

`1,059cr, much above the average quarterly run rate of `591cr for the past four

quarters. Consequently, gross annualized slippage ratio for the bank increased

substantially on a sequential basis to 4.0% during 4QFY2012 as against 1.9% in

3QFY2012. On an absolute basis, both gross and net NPAs for the bank

increased by ~19% sequentially. While gross NPAs increased from 2.3% to 2.5%,

net NPA ratio increased from 0.9% to 1.0%.

The bank increased its provisioning coverage (one of the few PSU banks to do so)

to 80.1% in 4QFY2012 from 78.5% in 3QFY2012. If the bank had not increased

its provisioning coverage, PBT would have been higher by`97cr (38.4% yoy).

The bank restructured ~`1,700cr of loans during the quarter (majorly Air Indias

~`1,000cr), taking its outstanding restructured advances to ~`6,200cr (~4.8% of

the overall loan book). In terms of CDR restructuring pipeline, management

specified a sum of `1,050cr pertaining to seven accounts, which are under active

stage of CDR discussion.

18.1

15.8

18.9

14.9

15.8

15.9

22.4

21.5

14.9

16.5

78.8

82.0

79.880.2

78.3

76.0

77.0

78.0

79.0

80.0

81.082.0

83.0

-

5.0

10.0

15.0

20.0

25.0

4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

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

30.9

31.1

30.5

30.8

29.4

14.8

5.8 6.4 6.6

10.7

-

7.5

15.0

22.5

25.0

27.5

30.0

32.5


CASA ratio CASA yoy growth (%, RHS)

5.80

6.366.69

6.91 6.92

4.00

6.00

8.00


3.43

3.16

3.44 3.453.60

2.00

2.50

3.00

3.50

4.00


(%)


5/11


May 11, 2012 5

Exhibit 8:Slippages surge in 4QFY2012


Exhibit 9:NPA ratio deteriorates slightly on a qoq basis

Source: Company, Angel Research; Note: PCR including tech. write-offs

Operating expenses increased by 13.7% yoyFor 4QFY2012, the banks operating expenses increased on a yoy basis by 13.7%,

driven by a 14.1% yoy increase in staff expenses. Cost-to-income ratio further

increased to 51.7% in 4QFY2012 from 41.1% witnessed in 3QFY2012. Operating

expense to average assets increased to 1.9% in 4QFY2012 from 1.6% in

3QFY2012.

Exhibit 10:Staff expenses increase by 14.1% yoy


Exhibit 11:Cost ratios deteriorate sequentially


2.4

1.3

3.6

1.9

4.0

-

1.0

2.0

3.0

4.0

5.0


(%)

2.4

2.4

2.4

2.3

2.5

1.0

0.9

0.9

0.9

1.0

77.2 78.4 78.5 78.5 80.1

50.0

60.0

70.0

80.0

90.0

-

0.5

1.0

1.5

2.0

2.5


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

521

454

449

394

594

(20.0)

(10.0)

-

10.0

20.0

30.0

40.0

50.0

-

200

400

600

800

1,000


Staff expenses (` cr) YoY change (%)

52.

5

47.

0

42.

8

41.

1

51.

7

2.01.7 1.7

1.6

1.9

-

0.5

1.0

1.5

2.0

2.5

-

15.0

30.0

45.0

60.0


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


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May 11, 2012 6

Investment argument

Better asset quality and moderate NIM to drive profitability

The bank witnessed a surge in slippages in 4QFY2012 to 4.0%. Though slippagesare likely to remain above average levels due to the deteriorating domestic macro

environment, we believe asset-quality pressures are likely to be well within

manageable levels for Syndicate Bank, as evident from the comfortable

provisioning coverage for the bank at 80.1% as of FY2012. The banks

conservative lending, visible in its low yield on advances (11.0% in FY2012) and

moderate advances growth (16.9% CAGR over FY2010-12), is expected to lead to

better asset quality than peers. Accordingly, we expect slippages to be at 2.7%

both for FY2013 and FY2014. Moreover, the banks reported its NIM at healthy

levels of 3.43% in FY2012. We expect the banks NIM to be at 3.0% in FY2013.

Outlook and valuation

We expect Syndicate Bank to deliver RoEs of 16.9% and 17.1% in FY2013 and

FY2014, respectively, on the back of its better asset-quality outlook than peers and

moderate NIM. The bank has a modest CASA franchise with a CASA ratio of

29.4% (as of 4QFY2012), while fee income is also modest at 0.6% of average

assets (as of FY2012).

However, that said, the banks cheaper valuations and lower

asset-quality concerns turn the tide in the stocks favor. The stock is currently

trading at 0.5x FY2014E ABV (its five-year range of 0.61.1x and median of 0.8x).

Also, valuations appear cheap compared to its peers, which are tradingat higher multiples, although they have similar or poorer fundamentals. We value

the stock at 0.7x FY2014E ABV and recommend Buy on the stock with a targetprice of `131.Exhibit 12:Key assumptionsParticulars (%) Earlier estimates Revised estimatesFY2013 FY2014 FY2013 FY2014Credit growth 13.5 14.0 17.0 17.0

Deposit growth 16.0 16.0 19.0 18.0

CASA ratio 28.2 27.4 27.4 26.2

NIMs 3.1 3.0 3.0 3.0

Other income growth 10.0 11.9 13.5 13.5

Growth in staff expenses 13.0 13.0 14.0 14.0

Growth in other expenses 13.0 13.0 14.0 14.0

Slippages 3.0 3.2 2.7 2.7

Coverage ratio 82.5 80.0 79.0 77.5

Source: Angel Research


7/11


May 11, 2012 7

Exhibit 13:Change in estimatesParticulars (` cr) FY2013 FY2014Earlierestimates Revisedestimates Var. (%) Earlierestimates Revisedestimates Var. (%)NII 5,904 5,912 0.1 6,658 6,869 3.2

Non-interest income 1,165 1,221 4.8 1,304 1,386 6.3

Operating income 7,069 7,133 0.9 7,961 8,255 3.7Operating expenses 3,003 3,208 6.8 3,393 3,657 7.8

Pre-prov. profit 4,066 3,925 (3.5) 4,568 4,598 0.7Provisions & cont. 1,832 1,786 (2.5) 1,928 1,924 (0.2)

PBT 2,234 2,139 (4.3) 2,640 2,674 1.3

Prov. for taxes 725 577 (20.3) 857 867 1.3

PAT 1,509 1,561 3.4 1,784 1,806 1.3Source: Angel Research

Exhibit 14:P/ABV band


0

40

80

120

160

200

240

Apr-06

Oct-06

Apr-07

Oct-07

Apr-08

Oct-08

Apr-09

Oct-09

Apr-10

Oct-10

Apr-11

Oct-11

Apr-12

Oct-12

Price (`) 0.5x 0.7x 0.9x 1.1x 1.3x


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May 11, 2012 8

Exhibit 15:Recommendation summaryCompany Reco. CMP(`) Tgt. price(`) Upside(%) FY2014EP/ABV (x) FY2014ETgt. P/ABV (x) FY2014EP/E (x) FY2012-14EEPS CAGR (%) FY2014ERoA (%) FY2014ERoE (%)AxisBk Buy 1,001 1,587 58.5 1.4 2.2 7.2 16.4 1.5 20.3

FedBk Neutral 415 - - 1.0 - 7.3 13.0 1.3 14.5

HDFCBk Accumulate 511 567 10.9 2.9 3.3 14.4 27.0 1.7 22.1

ICICIBk* Buy 813 1,201 47.8 1.3 1.9 10.0 20.4 1.5 16.0

SIB Neutral 22 - - 1.0 - 5.8 4.5 0.8 17.5

YesBk Buy 329 470 42.6 1.7 2.4 7.9 22.5 1.4 23.3

AllBk Accumulate 148 166 12.3 0.6 0.7 3.5 6.2 0.9 17.6

AndhBk Neutral 105 - - 0.6 - 4.1 3.3 0.9 16.0

BOB Buy 649 925 42.6 0.7 1.1 4.3 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 Accumulate 48 55 14.4 0.6 0.7 3.7 45.3 0.7 17.2

CanBk Buy 419 522 24.6 0.7 0.9 4.5 11.8 0.9 16.4CentBk Neutral 78 - - 0.7 - 3.8 100.1 0.5 14.4

CorpBk Buy 405 504 24.4 0.5 0.7 3.6 5.3 0.8 16.5

DenaBk Buy 85 111 30.7 0.5 0.7 3.2 6.6 0.9 17.0

IDBI# Buy 92 117 27.0 0.6 0.7 3.8 22.7 0.9 14.8

IndBk Buy 180 218 21.6 0.6 0.8 3.7 5.4 1.2 18.2

IOB Buy 82 96 18.0 0.5 0.6 3.8 28.3 0.6 13.9

J&KBk Neutral 846 - - 0.7 - 4.3 8.8 1.4 18.6

OBC Buy 219 274 25.1 0.5 0.6 3.4 27.7 0.8 14.3

PNB Buy 746 1,066 43.0 0.7 1.1 4.3 10.3 1.0 18.1

SBI* Buy 1,852 2,511 35.6 1.2 1.6 6.9 23.6 1.0 19.1

SynBk Buy 91 131 43.9 0.5 0.7 3.0 17.3 0.8 17.1UcoBk Neutral 68 - - 0.7 - 3.8 13.0 0.6 15.4

UnionBk Buy 206 276 34.3 0.7 0.9 4.1 24.8 0.8 17.5

UtdBk Buy 58 78 33.6 0.4 0.6 2.6 22.5 0.7 16.5

VijBk Neutral 53 - - 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 11, 2012 9

Income statement

Y/E March (` cr) FY08 FY09 FY10 FY11 FY12 FY13E FY14ENet Interest Income 2,073 2,548 2,740 4,383 5,085 5,912 6,869- YoY Growth (%) (3.6) 22.9 7.5 60.0 16.0 16.3 16.2Other Income 940 915 1,167 915 1,076 1,221 1,386- YoY Growth (%) 44.3 (2.7) 27.6 (21.6) 17.6 13.5 13.5

Operating Income 3,012 3,462 3,907 5,298 6,161 7,133 8,255- YoY Growth (%) 7.5 14.9 12.8 35.6 16.3 15.8 15.7

Operating Expenses 1,495 1,791 2,034 2,548 2,814 3,208 3,657- YoY Growth (%) 7.5 19.8 13.5 25.3 10.4 14.0 14.0

Pre - Provision Profit 1,518 1,671 1,874 2,750 3,347 3,925 4,598- YoY Growth (%) 7.6 10.1 12.1 46.8 21.7 17.3 17.2

Prov. & Cont. 512 635 700 1,464 1,920 1,786 1,924- YoY Growth (%) (25.5) 24.0 10.2 109.3 31.1 (6.9) 7.7

Profit Before Tax 1,006 1,036 1,174 1,285 1,427 2,139 2,674- YoY Growth (%) 39.0 3.1 13.3 9.5 11.0 49.8 25.0

Prov. for Taxation 157 124 361 237 114 577 867- as a % of PBT 15.7 11.9 30.7 18.5 8.0 27.0 32.4

PAT 848 913 813 1,048 1,313 1,561 1,806- YoY Growth (%) 18.4 7.6 (10.9) 28.8 25.3 18.9 15.7

Balance sheetY/E March (` cr) FY08 FY09 FY10 FY11 FY12 FY13E FY14EShare Capital 522 522 522 573 602 602 602Reserve &Surplus

3,769 4,488 5,105 6,478 8,439 9,650 11,037

Deposits 95,171 115,885 117,026 135,596 157,941 187,950 221,781

- Growth (%) 21.0 21.8 1.0 15.9 16.5 19.0 18.0

Borrowings 1,306 2,190 8,555 6,010 7,005 8,308 9,775

Tier 2 Capital 2,585 3,224 3,618 3,518 3,585 4,194 4,907

Other Liab. &Prov.

3,779 3,946 4,225 4,364 4,896 5,683 6,502

Total Liabilities 107,132 130,256 139,051 156,539 182,468 216,387 254,604Cash Balances 10,375 12,543 7,189 10,443 8,809 7,518 8,871

Bank Balances 1,282 1,861 5,545 1,523 5,076 6,020 7,083Investments 28,076 30,537 33,011 35,068 40,815 53,343 63,750

Advances 64,051 81,532 90,406 106,782 123,620 144,635 169,223

- Growth (%) 24.0 27.3 10.9 18.1 15.8 17.0 17.0

Fixed Assets 770 742 701 693 1,351 1,554 1,774

Other Assets 2,579 3,040 2,198 2,031 2,797 3,317 3,903

Total Assets 107,132 130,256 139,051 156,539 182,468 216,387 254,604- Growth (%) 20.0 21.6 6.8 12.6 16.6 18.6 17.7


10/11


May 11, 2012 10

Ratio analysis

Y/E March FY08 FY09 FY10 FY11 FY12 FY13E FY14EProfitability ratios (%)NIMs 2.2 2.2 2.1 3.0 3.1 3.0 3.0Cost to Income Ratio 49.6 51.7 52.0 48.1 45.7 45.0 44.3

RoA 0.9 0.8 0.6 0.7 0.8 0.8 0.8

RoE 24.0 21.6 16.6 17.6 17.2 16.9 17.1

B/S ratios (%)CASA Ratio 30.9 27.6 31.2 30.9 29.4 27.4 26.2

Credit/Deposit Ratio 67.3 70.4 77.3 78.8 78.3 77.0 76.3

CAR 11.2 12.7 12.7 13.0 13.7 13.3 13.0

- Tier I 6.6 7.9 8.2 9.3 10.1 9.6 9.3

Asset Quality (%)Gross NPAs 2.7 1.9 2.2 2.4 2.5 3.7 4.6

Net NPAs 1.0 0.8 1.1 1.0 1.0 1.5 2.0

Slippages 2.4 1.5 1.8 1.7 2.7 2.7 2.7

Loan Loss Prov. /Avg. Assets 0.4 0.3 0.4 0.6 0.8 0.8 0.7

Provision Coverage 62.6 58.1 73.3 75.7 80.1 79.0 77.5

Per Share Data (`)EPS 16.2 17.5 15.6 18.3 21.8 25.9 30.0

ABVPS (75% cover.) 69.9 82.9 98.8 116.1 143.6 163.8 186.8

DPS 2.8 3.0 3.0 3.7 3.8 5.0 6.0

Valuation RatiosPER (x) 5.6 5.2 5.8 5.0 4.2 3.5 3.0

P/ABVPS (x) 1.3 1.1 0.9 0.8 0.6 0.6 0.5

Dividend Yield 3.1 3.3 3.3 4.1 4.2 5.5 6.6

DuPont AnalysisNII 2.1 2.1 2.0 3.0 3.0 3.0 2.9

(-) Prov. Exp. 0.5 0.5 0.5 1.0 1.1 0.9 0.8

Adj. NII 1.6 1.6 1.5 2.0 1.9 2.1 2.1

Treasury 0.3 0.2 0.3 0.0 0.1 0.0 0.0

Int. Sens. Inc. 1.9 1.8 1.8 2.0 1.9 2.1 2.1

Other Inc. 0.6 0.6 0.6 0.6 0.6 0.6 0.6

Op. Inc. 2.5 2.4 2.4 2.6 2.5 2.7 2.7

Opex 1.5 1.5 1.5 1.7 1.7 1.6 1.6PBT 1.0 0.9 0.9 0.9 0.8 1.1 1.1

Taxes 0.2 0.1 0.3 0.2 0.1 0.3 0.4

RoA 0.9 0.8 0.6 0.7 0.8 0.8 0.8Leverage 27.8 28.1 27.4 24.9 22.2 21.6 22.3

RoE 24.0 21.6 16.6 17.6 17.2 16.9 17.1


11/11


May 11, 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 investmentdecision. 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 or

other 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 Syndicate 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

syndicate bank result updated

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