1QFY2013 Result Update | Banking

August 7, 2012

UCO Bank
Performance Highlights

Particulars (` cr) NII Pre-prov. profit PAT 1QFY13 1,043 780 362 4QFY12 1,051 728 253 % chg (qoq) (0.7) 7.2 43.4 1QFY12 809 612 293 % chg (yoy) 29.0 27.6 23.9

NEUTRAL
CMP Target Price
Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Banking 4,670 1.3 95/45 390,988 10 17,602 5,337 UCBK.BO UCO@IN

`70 -

Source: Company, Angel Research

For 1QFY2013, Uco Bank reported a 23.9% yoy growth in its net profit to `362cr, despite strong growth of 29.0% yoy on the NII front, due to a sharp decline in the treasury income and increased provisioning. NIMs decline qoq; Asset quality deteriorates sequentially: During 1QFY2013, the bank registered a healthy growth of 24.0% and 21.5%, yoy in its advances and deposits respectively. Despite a moderate growth of 9.3% yoy in savings deposits, the overall CASA deposits growth remained healthy at 17.2% yoy, aided by a strong growth of 48.1% yoy in current deposits. The management attributed the strong growth in current deposits to the substantial float being made available on opening of rupee account with the bank for facilitating Indo-Iran trade payments (covering 45% of oil imports from Iran and Indian exports). The CASA ratio came in at 23.3%. The reported overall NIMs for the bank declined by 27bp qoq to 2.4%. The banks non-interest income (excluding treasury) increased by 15.5% yoy. On the asset quality front, gross and net NPA ratios increased sequentially by 40bp and 27bp respectively. Slippages remained elevated on an absolute basis at `862cr, of which a chunky advance of ~`500cr was contributed by a single group from the bio-chemical industry. The management guided for upgradation of the same in the second quarter. The annualized slippage ratio came in at 3.0% (~1.3% excluding the chunky advance) compared to 3.4% in 4QFY2012. The banks PCR dipped sequentially by 167bp to 52.7% and remains one of the lowest in the industry. The bank restructured advances worth ~`3,800cr during the quarter, of which ~`2,800cr were on account of restructuring of Air India and two discoms, in-line with managements earlier guidance. The management expects further restructuring of advances worth ~`1,000cr to discoms in the second quarter. Outlook and valuation: Going forward, we expect the banks earnings to find support from higher exposure to the SME and retail segments, improvement in other income and moderate asset quality pressures aided by increased recoveries. However, at the current market price, the stock is trading at 0.7x FY2013E ABV, which we believe factors in the improvement expected in earnings. Also, a lower provisioning coverage ratio (higher provisioning burden as the bank moves to 70%) and low core tier-I capital (slower credit growth to accord with Basel-3 norms) are a further overhang. Hence, we maintain our Neutral recommendation on the stock. Key financials (Standalone)
Y/E March (` cr) NII % chg Net profit % chg NIM (%) EPS (`) P/E (x) P/ABV (x) RoA (%) RoE (%)
Source: Company, Angel Research

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 65.2 14.9 3.9 16.0

Abs. (%) Sensex UCO Bank

3m 3.7 (4.2)

1yr 1.3 (10.2)

3yr 15.7 58.4

FY2011 3,845 65.4 907 (10.4) 2.6 12.6 5.6 1.0 0.6 20.7

FY2012 3,902 1.5 1,109 22.3 2.3 14.2 5.0 0.9 0.6 19.4

FY2013E 4,494 15.2 1,318 18.9 2.4 17.3 4.1 0.8 0.7 17.0

FY2014E 5,182 15.3 1,345 2.1 2.4 17.7 4.0 0.7 0.6 15.3

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

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

Sourabh Taparia
022 3935 7800 Ext: 6872 sourabh.taparia@angelbroking.com

Please refer to important disclosures at the end of this report

UCO Bank | 1QFY2013 Result Update

Exhibit 1: 1QFY2013 performance (Standalone)

Particulars (` cr) Interest earned - on Advances / Bills - on investments - on balance with RBI & others - on others Interest Expended Net Interest Income Other income Other income excl. treasury - Fee Income - Treasury Income - Recoveries from written off accounts - Others Operating income Operating expenses - Employee expenses - Other Opex Pre-provision Profit Provisions & Contingencies - Provisions for NPAs - Provisions for Investments - Other Provisions PBT Provision for Tax PAT Effective Tax Rate (%)
Source: Company, Angel Research

1QFY13 4,175 3,303 841 25 5 3,131 1,043 233 220 62 13 24 133 1,276 496 332 164 780 409 205 (180) 384 372 9 362 2.4

4QFY12 3,965 3,106 820 16 24 2,914 1,051 252 219 68 33 42 109 1,303 574 369 206 728 456 379 (365) 442 272 19 253 7.1

% chg (qoq) 5.3 6.4 2.6 60.5 (79.3) 7.5 (0.7) (7.6) 0.4 (8.7) (61.0) (41.7) 22.4 (2.0) (13.7) (10.0) (20.3) 7.2 (10.4) (45.9) (13.2) 36.6 (52.6) 43.4 (461)bp

1QFY12 3,401 2,630 748 16 8 2,593 809 275 190 47 85 17 126 1,084 472 330 142 612 310 1,410 (1,100) 302 9 293 3.1

% chg (yoy) 22.7 25.6 12.5 54.9 (34.7) 20.8 29.0 (15.5) 15.5 32.0 (84.9) 44.0 5.5 17.7 5.0 0.5 15.4 27.6 32.0 NA 23.0 (4.2) 23.9 (70)bp

FY2012 14,632 11,383 3,156 55 38 10,730 3,902 966 770 235 196 84 451 4,868 2,056 1,383 673 2,811 1,661 756 255 650 1,150 42 1,109 3.6

FY2011 11,371 8,505 2,700 124 41 7,526 3,845 925 834 160 91 18 656 4,770 2,075 1,480 595 2,695 1,750 1,180 192 379 945 38 907 4.0

% chg (yoy) 28.7 33.8 16.9 (56.0) (6.6) 42.6 1.5 4.3 (7.8) 46.9 115.4 366.7 (31.4) 2.0 (0.9) (6.6) 13.1 4.3 (5.1) (35.9) 32.8 71.7 21.8 9.4 22.3 (41)bp

Exhibit 2: 1QFY2013 Actual vs estimates

Particulars (` cr) Net interest income Other income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT
Source: Company, Angel Research

Actual 1,043 233 1,276 496 780 409 372 9 362

Estimates 1,074 233 1,306 556 751 320 430 108 323

Var. (%) (2.8) 0.0 (2.3) (10.8) 4.0 27.6 (13.6) (91.5) 12.3

August 7, 2012

UCO Bank | 1QFY2013 Result Update

Exhibit 3: 1QFY2013 performance analysis (Standalone)

Particulars Advances (` cr) Deposits (` cr) Credit-to-Deposit Ratio (%) Current deposits (` cr) Saving deposits (` cr) CASA deposits (` cr) CASA ratio (%) CAR (%) Tier 1 CAR (%) Profitability Ratios (%) Reported NIM Cost-to-income ratio Asset quality Gross NPAs (` cr) Gross NPAs (%) Net NPAs (` cr) Net NPAs (%) Provision Coverage Ratio (%) Slippage ratio (%) Credit cost (%) Source: Company, Angel Research 4,624 3.9 2,614 2.2 52.7 3.0 0.5 4,086 3.5 2,264 2.0 54.4 3.4 0.9 13.2 40bp 15.5 27bp (167)bp (41)bp (43)bp 3,361 3.5 2,040 2.2 48.6 2.1 0.0 37.6 38bp 28.2 8bp 414bp 93bp 45bp 2.4 38.8 2.7 44.1 (27)bp (526)bp 2.5 43.3 (2)bp (448)bp 1QFY13 4QFY12 119,163 115,540 155,010 154,003 76.9 9,291 26,861 36,151 23.3 12.3 8.2 75.0 7,685 26,267 33,952 22.0 12.4 8.1 % chg (qoq) 1QFY12 3.1 185bp 20.9 2.3 6.5 128bp (2)bp 6bp 96,092 75.3 6,272 24,569 30,841 24.2 13.5 8.5 0.7 127,534 % chg (yoy) 24.0 21.5 153bp 48.1 9.3 17.2 (86)bp (118)bp (37)bp

Business growth healthy; NIMs decline sequentially

During 1QFY2013, the bank registered a healthy growth in its business, with advances and deposits witnessing an increase of 24.0% and 21.5%, on a yoy basis respectively. On the liabilities front, despite a moderate growth of 9.3% yoy in savings deposits, the overall CASA deposits growth remained healthy at 17.2% yoy, aided by a strong growth of 48.1% yoy (20.9% qoq) in current deposits. The management attributed the strong growth in current account deposits to the substantial float being made available on opening of rupee account with the bank for facilitating Indo-Iran trade payments (covering 45% of oil imports from Iran and Indian exports). The reported CASA ratio, though moderated on a yoy basis by 86bp to 23.3%, but was up sequentially by 128bp. During the quarter, the reported overall NIMs for the bank declined by 27bp qoq to 2.4%. Higher slippages led to interest reversals, which resulted in lower sequential yield on advances for the bank. The management has guided for domestic NIMs to improve going forward, so as to aid overall FY2013 domestic NIMs of ~3.0%. As of 1QFY2013, the banks share of bulk deposits (including CDs) to total deposits stood at ~29%. As per the management, most of these bulk deposits are at card rate, thereby limiting the applicability of regulatory diktat for reducing the share of high cost bulk deposits to 15% by FY2013.

August 7, 2012

UCO Bank | 1QFY2013 Result Update

Exhibit 4: Healthy business growth in 1QFY2013

Adv. yoy chg (%) 30.0 25.0 20.0 15.0 10.0 72.8 75.3 74.0 75.0 Dep. yoy chg (%) CDR (%, RHS) 76.9 78.0 77.0 76.0 75.0 74.0 73.0 72.0 71.0 70.0

Exhibit 5: CASA ratio expands sequentially

(%) 27.0 26.0 25.0 24.0 23.0 22.0 21.0 20.0 19.0 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13

17.5 7.3

12.4 8.5

18.4 18.5

16.6 6.0

24.0 21.5

22.7

26.3

22.3

22.0

5.0 -

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

Source: Company, Angel Research

Source: Company, Angel Research

Exhibit 6: YoA lower sequentially on higher slippages

12.00 11.60 11.20 10.80 10.40 10.00 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 11.43 11.54 11.30 11.87

Exhibit 7: Hence, NIMs decline on a qoq basis

3.10 2.90 2.70 2.50 2.30 2.10 1.90 1.70 1.50 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2.46 2.84 2.89 2.71 2.44

10.87

Source: Company, Angel Research

Source: Company, Angel Research

Healthy growth in non-interest income on strong growth in fee income and higher recoveries
During 1QFY2013, non interest income excluding treasury increased by 15.5% yoy, primarily due to strong growth in CEB income and higher recoveries from written-off accounts. The CEB income came in at `62cr, registering a growth of 32% on a yoy basis, while recoveries from written off accounts came in at `24cr in 1QFY2013 compared to `17cr in 1QFY2012. The income from trading profits (treasury income) came in much lower at `13cr compared to `85cr in 1QFY2012.

Asset quality deteriorates sequentially

The banks asset quality deteriorated during 1QFY2013, with gross and net NPA ratios increasing sequentially by 40bp and 27bp respectively to 3.9% and 2.2%. On an absolute basis, the slippages during the quarter remained elevated at `862cr, of which a chunky advance of ~`500cr was contributed by a single group from the bio-chemical industry. The management guided for upgradation of the same in the second quarter. Annualized slippage ratio came in at 3.0% (~1.3% excluding the chunky advance) compared to 3.4% in 4QFY2012. The banks PCR

August 7, 2012

23.3

UCO Bank | 1QFY2013 Result Update

dipped sequentially by 167bp to 52.7% and remains one of the lowest in the industry.

The bank restructured advances amounting to ~`3,800cr during 1QFY2013, of which ~`2,800cr was on account of restructuring of Air India and two discoms, in-line with management guidance during 4QFY2012. The management further expects advances worth ~`1,000cr to discoms to restructure in the second quarter. Exhibit 8: Slippages remain at elevated levels
Slippages (%) 4.5 0.7 3.0 0.3 1.5 0.5 Credit cost (%, RHS) 0.9 1.0 0.8 0.6 0.4 5.0 4.0 3.0 2.0 1.0 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13
Source: Company, Angel Research; note*excluding technical write-offs

Exhibit 9: Asset quality deteriorates sequentially

Gross NPAs (%) Net NPAs (%) 54.4 52.0 48.6 52.7 51.2 PCR* (%, RHS) 56.0 54.0 52.0 50.0 48.0

2.1

2.1

2.2

3.4

3.0

3.5 2.2

3.6 2.1

3.5 2.0

3.5 2.0

1QFY12 2QFY12 3QFY12 4QFY12 1QFY13

3.9 2.2

0.2 -

46.0 44.0

Source: Company, Angel Research

Exhibit 10: Network expansion remains steady

Branches 2,450 2,400 2,350 2,300 2,250 2,200 2,150 2,100 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13
Source: Company, Angel Research

Exhibit 11: Cost ratios decline sequentially

Cost-to-income ratio (%) 1,000 800 600 400 50.0 45.0 40.0 35.0 30.0 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13
Source: Company, Angel Research
1.23 1.35 1.27

ATMs (RHS)

Opex to average assets (%, RHS)

1.33 1.09

1.50

1.00

2,209

2,231

2,260

2,394

2,400

0.50
43.6 41.4 40.0 44.1 38.8

200 -

August 7, 2012

UCO Bank | 1QFY2013 Result Update

Investment arguments
Improvement in core profitability
The bank had a relatively lower NIM of 1.9% in FY2010 due to low CASA ratio of ~23% and high exposure to relatively low-yielding corporate loans, which constituted 65% of its total loan book. While the reported NIM has risen to 2.8% in FY2012 due to a decline in cost of wholesale deposits, going forward, an increase in retail and SME loans and introduction of segments such as gold loans are expected to lead to sustainable NIMs for the bank.

Outlook and valuation

Going forward, we expect the banks earnings to find support from its higher exposure to the SME and retail segments, improvement in other income and moderate asset-quality pressures aided by increased recoveries. However, at the current market price, the stock is trading at 0.7x FY2013E ABV, which we believe factors in the improvement expected in earnings. Also, lower provisioning coverage ratio (higher provisioning burden as the bank moves to 70%) and low core tier-I capital (slower credit growth to accord with Basel-3 norms) are a further overhang. Hence, we maintain our Neutral recommendation on the stock.

Exhibit 12: Key assumptions

Particulars (%) Credit growth Deposit growth CASA ratio NIMs Other income growth Growth in staff expenses Growth in other expenses Slippages Coverage ratio
Source: Angel Research

Earlier estimates FY2013 13.5 13.0 21.9 2.5 4.8 15.0 15.0 2.5 56.0 FY2014 15.0 15.0 21.5 2.5 14.1 15.0 15.0 2.5 56.5

Revised estimates FY2013 14.0 13.0 21.9 2.4 3.0 10.0 10.0 2.3 54.5 FY2014 15.0 15.0 21.5 2.4 16.3 15.0 15.0 2.3 56.0

August 7, 2012

UCO Bank | 1QFY2013 Result Update

Exhibit 13: Change in estimates

FY2013 Particulars (` cr) NII Non-interest income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT
Source: Angel Research

FY2014 Var. (%) (2.9) (1.8) (2.7) (4.3) (1.6) (1.5) (1.6) (21.3) 4.9 Earlier estimates 5,283 1,154 6,438 2,719 3,718 1,736 1,983 643 1,339 Revised estimates 5,182 1,156 6,338 2,601 3,737 1,745 1,992 646 1,345 Var. (%) (1.9) 0.1 (1.5) (4.3) 0.5 0.6 0.5 0.5 0.5

Earlier estimates 4,630 1,012 5,642 2,365 3,277 1,602 1,675 419 1,256

Revised estimates 4,494 994 5,488 2,262 3,226 1,578 1,648 330 1,318

Exhibit 14: P/ABV band

180 160 140 120 100 80 60 40 20 0 Price (`) 0.5x 0.8x 1.1x 1.4x 1.7x

Mar-04

Mar-05

Mar-06

Mar-07

Mar-08

Mar-09

Mar-10

Mar-11

Mar-12

Source: Company, Angel Research

August 7, 2012

Mar-13

Sep-04

Sep-05

Sep-06

Sep-07

Sep-08

Sep-09

Sep-10

Sep-11

Sep-12

UCO Bank | 1QFY2013 Result Update

Exhibit 15: Recommendation summary

Company AxisBk FedBk HDFCBk ICICIBk* SIB YesBk AllBk AndhBk BOB BOI BOM CanBk CentBk CorpBk DenaBk IDBI# IndBk IOB J&KBk OBC PNB SBI* SynBk UcoBk UnionBk UtdBk VijBk Reco. Buy Accumulate Neutral Buy Accumulate Buy Accumulate Accumulate Buy Buy Neutral Buy Neutral Accumulate Buy Buy Accumulate Accumulate Neutral Buy Buy Buy Buy Neutral Buy Buy Neutral CMP (`) 1,090 416 600 974 23 371 133 99 658 289 47 363 72 402 92 87 179 73 943 234 755 2,059 98 70 171 57 54 Tgt. price (`) 1,373 458 1,169 27 453 147 107 851 354 421 454 107 105 197 84 278 975 2,443 119 238 79 Upside (%) 26.0 10.2 20.1 13.4 22.4 11.2 7.7 29.2 22.6 15.9 12.9 16.8 20.5 10.2 14.3 18.6 29.2 18.6 21.5 39.3 37.3 FY2014E P/ABV (x) 1.5 1.0 3.4 1.6 1.0 1.9 0.5 0.6 0.8 0.7 0.6 0.6 0.7 0.6 0.6 0.5 0.6 0.5 0.8 0.5 0.8 1.3 0.6 0.7 0.6 0.4 0.6 FY2014E Tgt P/ABV (x) 1.9 1.1 1.9 1.1 2.3 0.6 0.7 1.0 0.9 0.8 0.7 0.7 0.7 0.7 0.5 0.6 1.0 1.5 0.7 0.8 0.6 FY2014E P/E (x) 7.6 7.2 16.6 11.9 5.6 8.7 3.2 3.9 4.5 4.1 4.1 4.3 3.3 3.6 3.6 3.7 4.0 3.2 5.2 3.6 4.3 7.8 3.3 4.0 3.5 2.5 4.6 FY2012-14E EPS CAGR (%) 18.1 12.1 27.9 20.9 9.0 24.2 4.6 2.7 10.1 23.5 35.6 7.2 103.6 2.1 5.1 21.2 6.4 31.0 5.1 29.0 9.9 23.1 15.7 11.7 23.6 23.2 13.0 FY2014E RoA (%) 1.6 1.3 1.8 1.4 0.9 1.5 0.9 0.9 1.0 0.8 0.6 0.8 0.6 0.8 0.8 0.9 1.1 0.6 1.2 0.9 1.0 1.0 0.8 0.6 0.8 0.8 0.5 FY2014E oE (%) 20.8 14.7 22.0 15.5 18.5 23.8 17.0 15.8 18.0 17.0 15.5 15.3 15.1 16.3 16.4 14.7 17.4 14.4 17.5 14.3 18.0 18.1 17.8 15.3 17.1 16.7 13.3

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

Company Background
UCO Bank is a mid-size public sector bank with a balance sheet size of ~`1.8lakh cr. Its branches are concentrated in the eastern and north eastern states (~38%), with relatively large number in the parent state of West Bengal (~15%). It has got significant rural and semi-urban presence, with ~58% of its total network of 2,400 branches and 916 ATMs, located in these areas.

August 7, 2012

UCO Bank | 1QFY2013 Result Update

Exhibit 16: Income statement (Standalone)

Y/E March (` cr) Net Interest Income - YoY Growth (%) Other Income - YoY Growth (%) Operating Income - YoY Growth (%) OperatingExpenses - YoY Growth (%) Pre - Provision Profit - YoY Growth (%) Prov. & Cont. - YoY Growth (%) Profit Before Tax - YoY Growth (%) Prov. for Taxation - as a % of PBT PAT - YoY Growth (%) FY09 1,645 10.5 1,020 32.1 2,665 17.9 1,613 23.5 1,052 10.2 488 (15.2) 564 48.9 6 1.1 558 35.3 FY10 2,324 41.3 966 (5.3) 3,290 23.5 1,718 6.5 1,572 49.4 600 23.1 972 72.3 (41) (4.2) 1,012 81.5 FY11 3,845 65.4 925 (4.2) 4,770 45.0 2,075 20.8 2,695 71.5 1,781 196.8 914 (5.9) 8 0.8 907 (10.4) FY12 3,902 1.5 966 4.3 4,868 2.0 2,056 (0.9) 2,811 4.3 1,740 (2.3) 1,071 17.2 (37) (3.5) 1,109 22.3 FY13E 4,494 15.2 994 3.0 5,488 12.7 2,262 10.0 3,226 14.7 1,578 (9.3) 1,648 53.8 330 20.0 1,318 18.9 FY14E 5,182 15.3 1,156 16.3 6,338 15.5 2,601 15.0 3,737 15.9 1,745 10.6 1,992 20.9 646 32.4 1,345 2.1

Balance sheet (Standalone)

Y/E March (` cr) Share Capital - Equity - Preference Reserve & Surplus Deposits - Growth (%) Borrowings Tier 2 Capital Other Liab. & Prov. Total Liabilities Cash Balances Bank Balances Investments Advances - Growth (%) Fixed Assets Other Assets Total Assets - Growth (%) FY09 1,249 549 700 2,708 100,222 25.4 2,062 3,075 2,348 111,664 6,589 4,265 29,385 68,804 24.9 719 1,903 111,664 24.4 FY10 1,699 549 1,150 3,511 122,416 22.1 1,889 4,375 3,430 137,319 7,243 862 43,521 82,505 19.9 710 2,479 137,319 23.0 FY11 2,451 628 1,823 4,969 145,278 18.7 1,100 4,375 5,227 163,398 10,404 6,576 42,927 99,071 20.1 739 3,681 163,398 19.0 FY12 2,488 665 1,823 6,126 154,003 6.0 8,526 4,375 4,980 180,498 7,812 5,792 45,772 115,540 16.6 802 4,782 180,498 10.5 FY13E 2,488 665 1,823 7,043 13.0 9,623 4,988 5,559 6,961 6,537 52,236 14.0 878 5,397 12.9 FY14E 2,488 665 1,823 7,987 15.0 11,022 5,362 6,341 8,005 7,487 59,205 15.0 975 6,181 14.5

174,024 200,128

203,724 233,327

131,716 151,473

203,724 233,327

August 7, 2012

UCO Bank | 1QFY2013 Result Update

Ratio analysis (Standalone)

Y/E March Profitability ratios (%) NIMs Cost to Income Ratio RoA RoE B/S ratios (%) CASA Ratio Credit/Deposit Ratio CAR - Tier I Asset Quality (%) Gross NPAs Net NPAs Slippages Loan Loss Prov. /Avg. Assets Provision Coverage Per Share Data (`) EPS ABVPS (75% cover.) DPS Valuation Ratios PER (x) P/ABVPS (x) Dividend Yield DuPont Analysis NII (-) Prov. Exp. Adj. NII Treasury Int. Sens. Inc. Other Inc. Op. Inc. Opex PBT Taxes RoA Leverage RoE * 1.6 0.5 1.1 0.3 1.5 0.7 2.2 1.6 0.6 0.0 0.6 38.2 21.1 1.9 0.5 1.4 0.2 1.6 0.6 2.2 1.4 0.8 (0.0) 0.8 38.9 31.6 2.6 1.2 1.4 0.1 1.4 0.6 2.0 1.4 0.6 0.0 0.6 34.3 20.7 2.3 1.0 1.3 0.1 1.4 0.4 1.8 1.2 0.6 (0.0) 0.6 30.1 19.4 2.3 0.8 1.5 0.0 1.6 0.5 2.0 1.2 0.9 0.2 0.7 28.4 17.0 2.4 0.8 1.6 0.0 1.6 0.5 2.1 1.2 0.9 0.3 0.6 28.4 15.3 6.9 1.6 1.6 3.8 1.2 3.3 5.6 1.0 4.3 5.0 0.9 4.3 4.1 0.8 4.3 4.0 0.7 4.3 10.2 43.1 1.1 18.4 56.9 2.3 12.6 67.9 3.0 14.2 79.3 3.0 17.3 88.1 3.0 17.7 99.2 3.0 2.2 1.2 1.2 0.3 47.2 2.0 1.2 1.6 0.3 50.0 3.1 1.8 3.3 0.8 51.6 3.5 2.0 2.4 0.4 54.4 4.2 2.3 2.3 0.5 54.5 4.8 2.4 2.3 0.5 56.0 24.1 68.7 11.9 6.5 24.7 67.4 13.2 7.1 22.0 68.2 13.8 8.6 22.3 75.0 12.3 8.1 21.9 75.7 12.8 8.4 21.5 75.7 12.3 8.0 1.7 60.5 0.6 21.1 1.9 52.2 0.8 31.6 2.6 43.5 0.6 20.7 2.3 42.2 0.6 19.4 2.4 41.2 0.7 17.0 2.4 41.0 0.6 15.3 FY09 FY10 FY11 FY12 FY13E FY14E

Note: * RoE calculated on PAT for equity share holders post preference dividend

August 7, 2012

10

UCO Bank | 1QFY2013 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. 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 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 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

UCO Bank No No No No

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

Ratings (Returns):

Buy (> 15%) Reduce (-5% to -15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

August 7, 2012

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