1QFY2012 Result Update | Banking

Aug 5, 2011

Syndicate Bank

ACCUMULATE

Performance Highlights

CMP
Target Price

Particulars (` cr)
NII

1QFY12 4QFY11 % chg (qoq) 1QFY11 % chg (yoy)

Investment Period

1,110

1,161

(4.4)

964

15.2

Pre-prov. profit

743

672

10.5

587

26.5

Stock Info

PAT

343

289

18.5

265

29.2

Sector

Source: Company, Angel Research

`115
`131
12 Months

Banking

Market Cap (` cr)

For 1QFY2012, Syndicate Bank reported a strong set of numbers, with net profit
increasing by robust 18.5% qoq (up by 29.2% yoy), in-line with our estimates.
A significant decline in slippages and a marginal improvement in CASA ratio were
the key positives of the result. We recommend an Accumulate rating on the stock.

6,579

Beta

1.2

52 Week High / Low

164/98

Avg. Daily Volume

198,759

Face Value (`)

10

BSE Sensex

Healthy business growth with stable asset quality: The banks advances grew by
2.0% qoq (up 15.8% yoy) to `108,928cr, while deposits declined by 2.0% qoq (up
by strong 22.4% yoy) to `132,889cr. CASA deposits declined sequentially by 1.4%
qoq to `41,346cr, primarily due to an 8.4% qoq decrease in current account
deposits. The effect of rising interest rates was felt in 1QFY2012, with cost of
deposits increasing by 56bp to 6.4%. Reported NIM witnessed a decline of 27bp
qoq to 3.2%, partly compensated by the 34bp qoq rise in yield on advances
to 10.2%. For 1QFY2012, CEB income grew by 28.7% yoy to `130cr, while
treasury income witnessed a robust increase of 190.0% yoy to `58cr. Slippages
declined considerably to `350cr during 1QFY2012 (slippage ratio of 1.3%)
compared to `542cr in 4QFY2011 (slippage ratio of 2.4%). NPA ratio was stable
sequentially, with gross NPA ratio at 2.4% (2.4% in 4QFY2011) and net NPA ratio
at 0.9% (1.0% in 4QFY2011). Until now, the bank has only switched over accounts
worth `25lakh and above to system-based NPA recognition.

Nifty

Outlook and valuation: At the CMP, the stock is trading at 0.8x FY2013E ABV
compared to its five-year range of 0.7x1.3x one-year forward ABV with a median
of 0.94x. Keeping in mind the banks stable asset quality and moderate NIM, the
valuation appears cheap relative to its peers. We value the stock at 0.9x FY2013E
ABV and, hence, recommend Accumulate with a target price of `131.

Syndicate Bank

17,306
5,211

Reuters Code

SBNK.BO

Bloomberg Code

SNDB@IN

Shareholding Pattern (%)

Promoters

69.5

MF / Banks / Indian Fls

12.6

FII / NRIs / OCBs

4.2

Indian Public / Others

Abs. (%)
Sensex

13.8

3m

1yr

3yr

(5.0)

(4.8)

15.7

4.3

7.8

90.8

Key financials
Y/E March (` cr)

FY2010

FY2011

FY2012E

FY2013E

2,740

4,383

4,359

4,545

7.5

60.0

(0.5)

4.3

813

1,048

1,007

1,236

(10.9)

28.8

(3.9)

22.7

NIM (%)

2.1

3.0

2.6

2.3

EPS (`)

15.6

18.3

17.6

21.6

P/E (x)

7.4

6.3

6.5

5.3

P/ABV (x)

1.3

1.1

0.9

0.8

RoA (%)

0.6

0.7

0.6

0.6

RoE (%)

16.6

17.6

14.3

15.6

NII
% chg
Net profit
% chg

Source: Company, Angel Research

Please refer to important disclosures at the end of this report

Vaibhav Agrawal
022 3935 7800 Ext: 6808
vaibhav.agrawal@angelbroking.com

Shrinivas Bhutda
022 3935 7800 Ext: 6845
shrinivas.bhutda@angelbroking.com

Varun Varma
022 3935 7800 Ext: 6847
varun.varma@angelbroking.com

Syndicate Bank | 1QFY2012 Result Update

Exhibit 1: 1QFY2012 performance

Particulars (` cr)

1QFY12 4QFY11 % chg (qoq) 1QFY11 % chg (yoy)

Interest earned

3,399

3,162

7.5

2,604

30.5

- on Advances / Bills

2,777

2,593

7.1

2,065

34.5

603

574

5.1

533

13.0

19

188.0

- on investments
- on balance with RBI & others
- on others

(5)

(100.0)

Interest Expended

2,288

2,001

14.4

1,641

39.5

Net Interest Income

1,110

1,161

(4.4)

964

15.2

Other income

291

255

14.5

215

35.3

Other income excl. treasury

233

247

(5.4)

195

19.5

- Fee Income

130

160

(18.8)

101

28.7

58

625.0

20

190.0

- Treasury Income
- Others

103

87

19.4

94

9.5

1,402

1,416

(1.0)

1,179

18.9

Operating expenses

659

744

(11.4)

592

11.4

- Employee expenses

454

521

(12.8)

421

7.9

- Other Opex

205

223

(8.1)

171

20.0

Pre-provision Profit

743

672

10.5

587

26.5

Provisions & Contingencies

327

353

(7.5)

235

39.2

- Provisions for NPAs

251

176

42.6

144

74.3

Operating income

- Provisions for Investments

38

38

- Other Provisions

38

174

(78.4)

53

(28.5)

416

319

30.4

353

18.0

73

30

145.9

87

(16.3)

PAT

343

289

18.5

265

29.2

Effective Tax Rate (%)

17.6

9.3

825bp

24.7

(718)bp

PBT
Provision for Tax

Source: Company, Angel Research

Exhibit 2: 1QFY2012 Actual vs. Angel estimates

Particulars (` cr)

Actual

Estimates

% chg

Net interest income

1,110

1,176

(5.6)

291

241

20.8

Non-interest income
Operating income

1,402

1,417

(1.1)

Operating expenses

659

672

(1.9)

Pre-prov. profit

743

745

(0.4)

Provisions & cont.

327

237

38.1

PBT

416

509

(18.3)

73

165

(55.8)

343

344

(0.3)

Prov. for taxes

PAT
Source: Company, Angel Research

Aug 5, 2011

Syndicate Bank | 1QFY2012 Result Update

Exhibit 3: 1QFY2012 performance

Particulars

1QFY12 4QFY11 % chg (qoq) 1QFY11 % chg (yoy)

Balance sheet
Advances (` cr)

108,928 106,782

Deposits (` cr)

132,889 135,596

Credit-to-Deposit Ratio (%)

94,062

15.8

(2.0) 108,560

2.0

22.4

82.0

78.8

322bp

86.6

(468)bp

Current deposits (` cr)

9,841

10,739

(8.4)

10,915

(9.8)

Saving deposits (` cr)

31,505

31,207

1.0

28,154

11.9

CASA deposits (` cr)

41,346

41,946

(1.4)

39,069

5.8

CASA ratio (%)

31.1

30.9

18bp

36.0

(488)bp

CAR (%)

12.1

13.0

(95)bp

12.4

(28)bp

8.8

9.3

(52)bp

8.3

47bp

Tier 1 CAR (%)

Profitability Ratios (%)
Cost of deposits
Yield on advances
Reported NIM
Cost-to-income ratio

6.4

5.8

56bp

5.3

109bp

10.2

9.9

34bp

9.1

111bp

3.2

3.4

(27)bp

3.1

7bp

47.0

52.5

(551)bp

50.2

(317)bp

Asset quality
Gross NPAs (` cr)

2,637

2,599

1.5

2,175

21.3

Gross NPAs (%)

2.4

2.4

(1)bp

2.3

8bp

Net NPAs (` cr)

1,018

1,031

(1.3)

985

3.3

Net NPAs (%)

0.9

1.0

(4)bp

1.1

(13)bp

78.4

77.2

125bp

73.9

457bp

Slippage ratio (%)

1.3

2.4

(109)bp

1.4

(10)bp

NPA to avg. assets (%)

0.6

0.5

17bp

0.4

22bp

Provision Coverage Ratio (%)

Source: Company, Angel Research

Business remains muted; NIM declines sequentially

During 1QFY2012, the banks advances grew by 2.0% qoq (up 15.8% yoy) to
`108,928cr, while deposits declined by 2.0% qoq (up a strong 22.4% yoy) to
`132,889cr. CASA deposits declined sequentially by 1.4% qoq to `41,346cr due
to an 8.4% qoq decrease in current account deposits.
The effect of rising interest rates was felt in 1QFY2012, with cost of deposits
increasing by 56bp to 6.4%. Reported NIM witnessed a decline of 27bp qoq
to 3.2%, partly compensated by the 34bp qoq rise in yield on advances
to 10.2%.

Aug 5, 2011

Syndicate Bank | 1QFY2012 Result Update

Exhibit 4: Growth remains muted in 1QFY2012

78.8

80.0

2.0

6.9
8.8

5.5
7.3

0.7
7.0

4.0

5.0

60.0

(2.0)

(7.2)

(5.0)

35.0

40.0
20.0
-

(10.0)

30.0
25.0

31.1

80.2

(%)
40.0

30.9

81.5

CDR (%, RHS)

100.0
82.0

33.1

Dep. qoq chg (%)

34.9

86.6

36.0

Adv. qoq chg (%)

10.0

Exhibit 5: CASA ratio improves in 1QFY2012

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

20.0

1QFY11 2QFY11 3QFY11 4QFY11 1QFY12

Source: Company, Angel Research

Source: Company, Angel Research

Exhibit 6: Sharp rise in cost of deposits in 1QFY2012...

Exhibit 7: ...leading to a 27bp qoq dip in reported NIM

(%)
(%)

(%)
6.60

6.36

6.30
6.00
5.40

3.50

5.80

5.70
5.27

4.00

3.55

3.58

3.43
3.16

3.09

3.00

5.44
5.14

2.50

5.10

2.00

4.80

1.50

4.50
1QFY11

2QFY11

Source: Company, Angel Research

3QFY11

4QFY11

1QFY12

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

Source: Company, Angel Research

Treasury income drives non-interest income

For 1QFY2012, CEB income grew by 28.7% yoy to `130cr, while treasury income
witnessed a robust increase of 190.0% yoy to `58cr. Other income excluding
treasury managed to grow by healthy 19.5% yoy to `233cr during 1QFY2012.
We estimate fee income to grow by 13.5% for both FY2012 and FY2013,
respectively.

Aug 5, 2011

Syndicate Bank | 1QFY2012 Result Update

Slippages reduce in 1QFY2012

Slippages declined considerably to `350cr during 1QFY2012 (slippage ratio of
1.3%) compared to `542cr in 4QFY2011 (slippage ratio of 2.4%). NPA ratio was
stable sequentially, with gross NPA ratio at 2.4% (2.4% in 4QFY2011) and net
NPA ratio at 0.9% (1.0% in 4QFY2011). Provision coverage ratio including
technical write-offs stood at 78.4%, (77.2% in 4QFY2011). We expect the banks
asset quality to remain stable and have factored in slippages at 1.8% each for
FY2012 and FY2013.
Until now, the bank has only switched over accounts worth `25lakh and above to
system-based NPA recognition. The bank has to complete the switchover of the rest
of the accounts by next quarter; however, management is expecting negligible
slippages from this transition, as it has been very disciplined regarding
non-deferment of NPAs.

Exhibit 8: Expect slippages to remain stable at 1.8%

Gross NPAs (%)

(%)
3.0
2.4
1.8
1.5

1.8

1.8

0.5

0.5

0.0
FY09

Source: Company, Angel Research

73.2

75.0
70.0

FY10

FY11

FY12E FY13E

65.0
60.0

2.4
0.9

1.0

FY08

PCR (%, RHS)

78.4
80.0

1.5

1.0

FY07

73.0

2.4
1.0

1.5

1.7

73.9

2.0

2.3
1.0

2.0

Net NPAs (%)

77.2

2.2
1.0

2.0

2.5

2.3
1.1

2.5

Exhibit 9: NPA ratio remains stable

55.0
50.0

1QFY11 2QFY11 3QFY11 4QFY11 1QFY12

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

Operating expenses decline qoq

For 1QFY2012, the banks operating expenses decreased by 11.4% qoq (up
11.4% yoy) to `659cr, driven by a 12.8% sequential decline in employee expenses
to `454cr on account of a high base, owing to pension expenses for retired
employees in 4QFY2011.

Aug 5, 2011

Syndicate Bank | 1QFY2012 Result Update

20.0

12.9

400

10.0

300

0.0

521

-12.8

461

370

421

100

-12.0

454

200

1QFY11 2QFY11 3QFY11 4QFY11 1QFY12

Source: Company, Angel Research

-10.0
-20.0

60.0
50.0

1.7

1.6

1.9

2.5

2.0
1.7

40.0

1.0

20.0
10.0

2.0
1.5

30.0

47.0

30.0

Opex to average assets (%, RHS)

47.8

500

16.8

41.9

24.6

600

Cost-to-income ratio (%)

QoQ growth (%)

50.2

Staff expenses (` cr)

Exhibit 11: Cost to income ratio improves in 1QFY2012

52.5

Exhibit 10: Employee expenses down by 12.8%

0.5
-

1QFY11 2QFY11 3QFY11 4QFY11 1QFY12

Source: Company, Angel Research

Stable asset quality and moderate-to-healthy NIM to drive

profitability
The banks asset quality has improved significantly over the years (average
slippage of 1.7% over FY200911 compared to an average of 2.2% over
FY200408). Going forward, we do not foresee any concerns emerging on this
front. The banks conservative lending, visible in its low yield on advances and
moderate advances growth (18.1% for FY2011), is expected to keep a check on
the delinquencies. Hence, we estimate slippages to remain stable at 1.8% for both
FY2012 and FY2013. Calculated NIM for the bank for FY2011 was incrementally
higher by 90bp over FY2010. Conservatively, we have factored in a contraction in
NIM due to the rising cost of deposits but expect calculated NIM to sustain at
~2.3% levels for FY2013.

Outlook and valuation

We expect Syndicate Bank to deliver RoE of ~15.0% each for FY2012 and
FY2013, respectively, on the back of its stable asset quality and moderate NIM.
The bank has a moderate CASA franchise with a CASA ratio of 31.1% (as of
1QFY2012), while fee income is also modest at 0.6% of average assets (as of
FY2011). However, that said, the banks relatively cheaper valuations, and lower
asset quality concerns, turns the tide in the stocks favour.
At the CMP, the stock is trading at 0.8x FY2013E ABV compared to its five-year
range of 0.7x1.3x one-year forward ABV with a median of 0.95x. Keeping in
mind the banks stable asset quality and moderate NIM, the valuation appears
cheap relative to its peers. We value the stock at 0.9x FY2013E ABV and, hence,
recommend Accumulate with a target price of `131.

Aug 5, 2011

Syndicate Bank | 1QFY2012 Result Update

Exhibit 12: Key assumptions

Earlier estimates

Particulars (%)

Revised estimates

FY2012

FY2013

FY2012

FY2013

Credit growth

15.0

15.0

15.0

15.0

Deposit growth

17.0

17.0

17.0

17.0

CASA ratio

30.0

29.1

30.0

29.1

NIMs

2.8

2.4

2.6

2.3

Other income growth

13.4

12.7

13.4

12.7

Growth in staff expenses

11.0

11.0

8.0

11.0

Growth in other expenses

15.0

15.0

15.0

15.0

1.7

1.7

1.8

1.8

78.5

75.0

79.0

75.0

Slippages
Coverage Ratio
Source: Angel Research

Exhibit 13: Change in estimates

FY2012
Particulars (` cr)

FY2013
Var. (%)

Earlier
estimates

Revised
estimates

Var. (%)

4,359

(5.1)

4,770

4,545

(4.7)

1,038

1,170

1,169

(0.0)

5,632

5,397

(4.2)

5,939

5,714

(3.8)

2,859

2,806

(1.9)

3,210

3,151

(1.8)

2,773

2,591

(6.6)

2,730

2,563

(6.1)

986

1,100

11.6

693

734

6.0

1,787

1,491

(16.6)

2,037

1,829

(10.2)

580

484

(16.6)

661

593

(10.2)

1,207

1,007

(16.6)

1,376

1,236

(10.2)

Earlier
estimates

Revised
estimates

NII

4,594

Non-interest income

1,038

Operating income
Operating expenses
Pre-prov. profit
Provisions & cont.
PBT
Prov. for taxes
PAT
Source: Angel Research

Exhibit 14: P/ABV band

Price (`)

0.5x

0.75x

1x

1.25x

1.5x

240
200
160
120
80
40

Feb-12

Jul-11

Dec-10

May-10

Oct-09

Mar-09

Aug-08

Jan-08

Jun-07

Nov-06

Apr-06

Sep-05

Feb-05

Jul-04

Dec-03

May-03

Oct-02

Mar-02

Source: Company, Angel Research

Aug 5, 2011

Syndicate Bank | 1QFY2012 Result Update

Exhibit 15: Recommendation summary

CMP
(`)

Tgt. price
(`)

Upside
(%)

FY2013E
P/ABV (x)

FY2013E
Tgt. P/ABV (x)

FY2013E
P/E (x)

FY2011E-13E
EPS CAGR (%)

FY2013E
RoA (%)

FY2013E
RoE (%)

1,244

1,648

32.4

2.0

2.7

10.3

20.9

1.5

21.0

390

441

13.2

1.1

1.2

8.0

19.0

1.2

13.9

Accumulate

473

519

9.7

3.2

3.5

16.5

30.5

1.7

20.9

ICICIBk*

Buy

966

1,281

32.6

1.8

2.3

13.7

25.8

1.5

16.0

SIB

Accumulate

22

24

10.8

1.1

1.3

6.8

11.6

0.9

17.2

YesBk

Buy

301

353

17.0

1.9

2.3

10.2

19.1

1.2

20.6

AllBk

Neutral

193

0.9

5.4

9.2

0.9

17.8

AndhBk

Neutral

134

0.9

6.0

(0.6)

0.9

15.9

BOB

Buy

863

1,018

17.9

1.2

1.4

6.5

10.8

1.1

19.6

BOI

Accumulate

362

397

9.7

1.0

1.1

5.7

18.7

0.8

18.0

BOM

Buy

52

61

17.5

0.7

0.8

4.9

30.8

0.6

14.8

CanBk

Accumulate

434

490

13.1

0.8

1.0

5.0

(2.4)

0.9

17.2

CentBk

Neutral

107

0.8

5.2

(14.0)

0.5

14.4

CorpBk

Buy

470

576

22.7

0.7

0.9

4.4

6.1

0.9

17.9

DenaBk

Neutral

81

0.6

3.8

7.0

0.8

16.5

IDBI#

Neutral

120

0.8

5.6

13.0

0.7

14.3

IndBk

Accumulate

215

242

12.6

0.8

1.0

4.5

10.4

1.4

20.4

IOB

Accumulate

127

143

12.5

0.8

0.9

4.9

22.4

0.7

16.4

J&KBk

Neutral

860

0.9

5.7

8.8

1.2

17.0

OBC

Accumulate

324

372

14.9

0.7

0.9

5.4

7.5

0.9

14.4

PNB

Accumulate

1,076

1,217

13.1

1.2

1.4

6.7

7.4

1.0

20.0

SBI*

Buy

2,233

2,776

24.3

1.7

2.1

8.3

44.2

1.1

22.6

SynBk

Accumulate

115

131

14.5

0.8

0.9

5.3

8.6

0.6

15.6

UcoBk

Neutral

UnionBk

Accumulate

UtdBk
VijBk

Company

Reco.

AxisBk

Buy

FedBk

Accumulate

HDFCBk

78

0.9

4.6

16.5

0.6

17.1

280

313

11.9

1.0

1.2

6.0

20.0

0.8

17.9

Buy

88

103

17.9

0.7

0.9

5.2

13.2

0.6

14.1

Neutral

60

0.8

6.5

61.9

0.4

11.7

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

Aug 5, 2011

Syndicate Bank | 1QFY2012 Result Update

Income statement
Y/E March (` cr)
Net Interest Income

FY07

FY08

FY09

FY10

FY11

FY12E FY13E

2,150

2,073

2,548

2,740

4,383

4,359

4,545

- YoY Growth (%)

14.3

(3.6)

22.9

7.5

60.0

(0.5)

4.3

Other Income

651

940

915

1,167

915

1,038

1,169

- YoY Growth (%)

Operating Income
- YoY Growth (%)
Operating Expenses
- YoY Growth (%)
Pre - Provision Profit
- YoY Growth (%)

10.1

44.3

(2.7)

27.6

(21.6)

13.4

12.7

2,801

3,012

3,462

3,907

5,298

5,397

5,714

13.3

7.5

14.9

12.8

35.6

1.9

5.9

1,390

1,495

1,791

2,034

2,548

2,806

3,151

(3.1)

7.5

19.8

13.5

25.3

10.1

12.3

1,411

1,518

1,671

1,874

2,750

2,591

2,563

36.0

7.6

10.1

12.1

46.8

(5.8)

(1.0)

Prov. & Cont.

687

512

635

700

1,464

1,100

734

- YoY Growth (%)

42.8

(25.5)

24.0

10.2

109.3

(24.9)

(33.2)

Profit Before Tax

724

1,006

1,036

1,174

1,285

1,491

1,829

- YoY Growth (%)

30.1

39.0

3.1

13.3

9.5

16.0

22.7

Prov. for Taxation

157

124

361

237

484

593

- as a % of PBT

1.0

15.7

11.9

30.7

18.5

32.4

32.4

PAT

716

848

913

813

1,048

1,007

1,236

- YoY Growth (%)

33.5

18.4

7.6

(10.9)

28.8

(3.9)

22.7

Balance sheet
Y/E March (` cr)

FY07

FY08

FY09

FY10

FY11

FY12E

FY13E

Share Capital

522

522

522

522

573

573

573

3,769

4,488

5,105

6,478

7,251

8,187

Reserve & Surplus

Deposits
- Growth (%)

95,171 115,885 117,026 135,596 158,647 185,617

46.6

21.0

21.8

1.0

15.9

17.0

17.0

Borrowings

1,374

1,306

2,190

8,555

6,010

7,032

8,208

Tier 2 Capital

2,405

2,585

3,224

3,618

3,518

4,045

4,652

3,239

3,779

3,946

4,225

4,364

5,601

6,554

Other Liab. & Prov.

Total Liabilities
Cash Balances
Bank Balances

89,277 107,132 130,256 139,051 156,539 183,150 213,792

6,574

10,375

12,543

7,189

10,443

10,312

12,065

2,925

1,282

1,861

5,545

1,523

3,663

4,276

Investments

25,234

28,076

30,537

33,011

35,068

43,214

52,568

Advances

51,670

64,051

81,532

90,406 106,782 122,799 141,219

- Growth (%)

41.7

24.0

27.3

10.9

18.1

15.0

15.0

Fixed Assets

772

770

742

701

693

786

890

2,102

2,579

3,040

2,198

2,031

2,376

2,774

Other Assets
Total Assets
- Growth (%)

Aug 5, 2011

3,105
78,634

89,277 107,132 130,256 139,051 156,539 183,150 213,792

46.2

20.0

21.6

6.8

12.6

17.0

16.7

Syndicate Bank | 1QFY2012 Result Update

Ratio analysis
Y/E March

FY07

FY08

FY09

FY10

FY11 FY12E FY13E

3.0

2.2

2.2

2.1

3.0

2.6

2.3

49.6

49.6

51.7

52.0

48.1

52.0

55.1

Profitability ratios (%)

NIMs
Cost to Income Ratio
RoA

1.0

0.9

0.8

0.6

0.7

0.6

0.6

RoE

24.6

24.0

21.6

16.6

17.6

14.3

15.6

CASA Ratio

30.6

30.9

27.6

31.2

30.9

30.0

29.1

Credit/Deposit Ratio

65.7

67.3

70.4

77.3

78.8

77.4

76.1

CAR

11.7

11.2

12.7

12.7

13.0

12.6

12.3

6.2

6.6

7.9

8.2

9.3

8.8

8.4

Gross NPAs

3.0

2.7

1.9

2.2

2.4

3.1

3.6

Net NPAs

0.8

1.0

0.8

1.1

1.0

1.3

1.8

Slippages

2.0

2.4

1.5

1.8

1.7

1.8

1.8

Loan Loss Prov. /Avg. Assets

0.5

0.4

0.3

0.4

0.6

0.5

0.3

72.8

62.6

58.1

49.7

57.8

57.5

49.9

EPS

13.7

16.2

17.5

15.6

18.3

17.6

21.6

ABVPS (75% cover.)

60.4

69.9

82.9

90.3

108.3

129.6

145.9

2.8

2.8

3.0

3.0

3.7

3.5

4.5

PER (x)

8.4

7.1

6.6

7.4

6.3

6.5

5.3

P/ABVPS (x)

1.9

1.6

1.4

1.3

1.1

0.9

0.8

Dividend Yield

2.4

2.4

2.6

2.6

3.2

3.1

3.9

NII

2.9

2.1

2.1

2.0

3.0

2.6

2.3

(-) Prov. Exp.

0.9

0.5

0.5

0.5

1.0

0.6

0.4

Adj. NII

1.9

1.6

1.6

1.5

2.0

1.9

1.9

Treasury

0.2

0.3

0.2

0.3

0.0

0.0

0.0

Int. Sens. Inc.

2.1

1.9

1.8

1.8

2.0

1.9

1.9

Other Inc.

0.7

0.6

0.6

0.6

0.6

0.6

0.6

Op. Inc.

2.8

2.5

2.4

2.4

2.6

2.5

2.5

Opex

1.8

1.5

1.5

1.5

1.7

1.7

1.6

PBT

1.0

1.0

0.9

0.9

0.9

0.9

0.9

Taxes

0.0

0.2

0.1

0.3

0.2

0.3

0.3

B/S ratios (%)

- Tier I
Asset Quality (%)

Provision Coverage
Per Share Data (`)

DPS
Valuation Ratios

DuPont Analysis

RoA

Aug 5, 2011

1.0

0.9

0.8

0.6

0.7

0.6

0.6

Leverage

25.8

27.8

28.1

27.4

24.9

24.1

25.1

RoE

24.6

24.0

21.6

16.6

17.6

14.3

15.6

10

Syndicate Bank | 1QFY2012 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This 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 reliable
sources 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 this
document 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.
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nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While
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Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the
latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have
investment positions in the stocks recommended in this report.

Disclosure of Interest Statement

1. Analyst ownership of the stock
2. Angel and its Group companies ownership of the stock
3. Angel and its Group companies' Directors ownership of the stock
4. Broking relationship with company covered

Syndicate Bank
No
No
No
No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors

Ratings (Returns):

Aug 5, 2011

Buy (> 15%)

Reduce (-5% to 15%)

Accumulate (5% to 15%)

Sell (< -15%)

Neutral (-5 to 5%)

11