Indian Bank 4Q FY 2013

4QFY2013 Result Update | Banking
May 15, 2013
Indian Bank
Performance Highlights
Particulars (` cr) NII Pre-prov. profit PAT
Source: Company, Angel Research
BUY
CMP Target Price
3QFY13 1,143 748 331 % chg (qoq) (3.2) (24.5) (11.6) 4QFY12 1,083 797 345 % chg (yoy) 2.3 (29.2) (15.4)
`160 `186
12 months
4QFY13 1,107 565 292
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 6,889 1.0 219/151 44,320 10 20,213 6,147 INBA.BO INBK@IN
For 4QFY2013, Indian Bank reported a subdued performance, both on operating as well as on the asset quality front. Surge in employee expenses (more than double on a yoy basis, on account of higher provisioning for pension and other employee benefits), resulted in 69.4% yoy increase in operating expenses and 29.2% yoy decline in pre-provisioning profits. However, aided by higher tax write-backs (of `203cr during the quarter, as against a tax write-back of `110cr in 4QFY2012) the decline in earnings was capped at 15.4%. NIMs lower qoq; Asset quality pressures continue: During 4QFY2013, the banks advances grew at a healthy pace of 17.0% yoy (up 6.8% qoq). Within advances, growth in the agriculture and retail book was robust at 27.3% and 17.9% respectively, while the corporate book grew moderate by 10.1% yoy. Growth in deposits also came in healthy at 17.5% yoy (5.1% qoq), while the low-cost CASA franchise grew at a modest pace of 6.2% yoy (2.3% qoq) and hence, the CASA ratio for the bank dipped by 295bp yoy (76bp qoq) to 27.6%. Reported NIMs for the bank declined by 19bp qoq to 2.9%, on back of 52bp decline in yield on advances to 10.6%. The banks non-interest income (excl treasury) grew at a healthy pace of 19.4% yoy to `334cr. Growth in fee income was moderate at 12.8% yoy, while recoveries from written off accounts grew strongly by 53.3% yoy to `71cr. The bank continued to witness asset quality pressures during the quarter, as slippages remained elevated at ~`1,300cr (annualized slippage ratio of 5.8%) as against ~`1,400cr in 3QFY2013. Better recoveries/upgrades during the quarter(at `751cr compared to `190cr in 3QFY2013), amidst elevated slippages, aided the bank to contain the sequential increase in Gross and Net NPA levels to 12.1% and 11.3% respectively. While the gross NPA ratio increased by 15bp sequentially to 3.3%, the increase in the net NPA ratio was 9bp to 2.3%. The banks PCR remained stable at 60.1%. During the quarter, the bank restructured advances worth `1,200cr, thereby taking its restructured book (stated borrower wise, after upgrading satisfactorily performing accounts) to `9,704cr. Going ahead, the restructuring pipeline for the bank under CDR stands at `1,100cr Outlook and valuation: The stock currently trades at 0.6x FY2015E ABV, below its eight-year trading range (0.8x-1.3x) and median of 1.0x. Although, we remain cautious on the banks asset quality, recent underperformance of the stock, in our view, over-discounts the asset quality concerns. Hence, we recommend a Buy rating on the stock, with a target price of `186.
Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 80.0 6.3 8.0 5.7
Abs. (%) Sensex INBK
3m 3.0
1yr 22.8
3yr 18.0
(13.3) (11.6) (24.0)
Vaibhav Agrawal
022 3935 7800 Ext: 6808 vaibhav.agrawal@angelbroking.com
Key financials (Standalone)

Y/E March (` cr) NII % chg Net profit % chg NIM (%) EPS (`) P/E (x) P/ABV (x) RoA (%) RoE (%)
FY2012 4,418 9.5 1,747 1.9 3.5 39.6 4.0 0.8 1.3 20.4
FY2013 4,524 2.4 1,581 (9.5) 3.1 35.7 4.5 0.7 1.0 16.1
FY2014E 4,981 10.1 1,637 3.5 3.0 37.0 4.3 0.6 0.9 14.8
FY2015E 5,696 14.4 1,862 13.8 3.0 42.2 3.8 0.6 1.0 15.1
Sourabh Taparia
022 3935 7800 Ext: 6872 sourabh.taparia@angelbroking.com
Akshay Narang
022 3935 7800 Ext: 6829 akshay.narang@angelbroking.com
Harshal Patkar
022 3935 7800 Ext: 6847 harshal.patkar@angelbroking.com
Please refer to important disclosures at the end of this report
Indian Bank | 4QFY2013 Result Update
Exhibit 1: 4QFY2013 performance (Standalone)

4QFY13 Interest earned - on Advances / Bills - on investments - on balance with RBI & others Interest Expended Net Interest Income Other income Other income excl. treasury - Fee Income - Treasury Income - Recoveries from written off accounts Operating income Operating expenses - Employee expenses - Other Opex Pre-provision Profit Provisions & Contingencies PBT Provision for Tax PAT Effective Tax Rate (%)
3QFY13 3,546 2,685 845 17 2,403 1,143 240 206 167 34 39 1,384 636 445 191 748 412 336 6 331 1.8
% chg (qoq) 0.4 0.6 0.2 (11.1) 2.1 (3.2) 91.7 62.0 57.6 271.7 81.0 13.3 57.9 75.6 16.5 (24.5) 15.5 (73.6) (3,549.6) (11.6) (23010)bp
4QFY12 3,191 2,414 773 5 2,108 1,083 307 280 234 27 46 1,390 592 386 206 797 562 235 (110) 345 (46.7)
% chg (yoy) 11.6 11.9 9.6 206.9 16.4 2.3 50.0 19.4 12.8 364.0 53.3 12.8 69.4 102.0 8.1 (29.2) (15.4) (62.2) 84.7 (15.4) (18162)bp
FY13 13,893 10,607 3,238 48 9,368 4,524 1,287 1,074 880 213 195 5,811 2,751 1,974 777 3,060 1,235 1,825 245 1,580 13.4
FY12 12,231 9,424 2,790 17 7,813 4,418 1,180 1,066 933 114 133 5,598 2,187 1,484 703 3,411 1,195 2,216 469 1,747 21.1
% chg 13.6 12.6 16.1 179.4 19.9 2.4 9.1 0.7 (5.7) 87.5 46.5 3.8 25.8 33.0 10.5 (10.3) 3.3 (17.6) (47.7) (9.6) (772)bp
3,562 2,700 847 15 2,455 1,107 460 334 263 126 71 1,568 1,003 781 222 565 476 89 (203) 292 (228.3)
Exhibit 2: 4QFY2013 Actual vs. Angel estimates

Particulars (` cr) NII Non-interest income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT Source: Company, Angel Research Actual 1,107 460 1,568 1,003 565 476 89 (203) 292 Estimates 1,182 284 1,466 658 808 319 489 130 359 Var. (%) (6.3) 62.3 7.0 52.4 (30.1) 49.1 (81.8) (256.0) (18.5)
May 15, 2013
Exhibit 3: 4QFY2013 Performance (Standalone)

4QFY13 Balance sheet Advances (`cr) Deposits (`cr) Credit-to-Deposit Ratio (%) CASA deposits (`cr) CASA ratio (%) CAR (%) Tier 1 CAR (%) Profitability Ratios (%) Cost of deposits Yield on advances Reported NIM Cost-to-income ratio Asset quality Gross NPAs (` cr) Gross NPAs (%) Net NPAs (` cr) Net NPAs (%) Provision Coverage Ratio (%) Slippage ratio (%)
3QFY13 98,945 135,077 73.3 38,268 28.3 13.1 10.8 7.1 11.1 3.1 45.9 3,180 3.2 2,142 2.2 61.2 6.3
% chg (qoq) 6.8 5.1 116bp 2.3 (76)bp 1bp 13bp (7)bp (52)bp (19)bp 1806bp 12.1 15bp 11.3 9bp (109)bp (50)bp
4QFY12 90,324 120,804 74.8 36,866 30.5 13.5 11.1 6.8 10.9 3.2 42.6 1,851 2.0 1,197 1.3 70.1 5.5
% chg (yoy) 17.0 17.5 (36)bp 6.2 (295)bp (39)bp (25)bp 28bp (29)bp (28)bp 2137bp 92.6 130bp 99.2 93bp (999)bp 26bp
105,643 141,980 74.4 39,138 27.6 13.1 10.9 7.1 10.6 2.9 64.0 3,565 3.3 2,384 2.3 60.1 5.8
Business growth remains moderate; NIMs lower qoq

During 4QFY2013, the banks advances grew at a healthy pace of 17.0% yoy (up 6.8% qoq). Within advances, growth in the agriculture and retail book was robust at 27.3% and 17.9% respectively, while the corporate book grew moderate by 10.1% yoy. Going forward, the management has guided for advances book growth to be in the range of 18-20% in FY2014. On the liabilities side, growth in deposits also came in healthy rate of 17.5% yoy (5.1% qoq), while the low-cost CASA franchise grew at a modest pace of 6.2% yoy (2.3% qoq). Consequently, the CASA ratio for the bank dipped by 295bp yoy (76bp qoq) to 27.6%. Reported NIMs for the bank declined by 19bp qoq to 2.9%, on back of 52bp decline in yield on advances to 10.6%. Yields on advances declined primarily on account of interest reversal on slippages ( `101cr in 4QFY2013) and base rate reduction effected by the bank.
Healthy growth in Non-interest income (excl. treasury)

During 4QFY2013, the banks non-interest income (excl. treasury) grew at a healthy pace of 19.4% yoy to `334cr. Growth in fee income was moderate at 12.8% yoy to `263cr, recoveries from written off accounts grew strongly by 53.3% yoy during the quarter to `71cr. Treasury gains came in at `126cr as against `27cr reported in 4QFY2012. Overall, the other income for the bank grew strongly by 50% yoy to `460cr.
May 15, 2013
Exhibit 4: Business growth moderate in 4QFY2013

Adv. yoy chg (%) 25.0
20.0 74.8
Exhibit 5: CASA ratio declines sequentially

CASA ratio 31.0 30.0 74.0 29.0 28.0
72.0
Dep. yoy chg (%)
CDR (%, RHS) 76.0

74.4
CASA yoy growth (%, RHS) 20.0
73.9
73.3 72.4
13.0 8.8 9.8 6.5 10.0

6.2
15.0 10.0
27.0
20.0 14.2
13.8 15.0
10.8 12.9
13.3 13.5
17.0 17.5
30.5
29.3
28.3
5.0
-
26.0
70.0
25.0 4QFY12 1QFY13 2QFY13 3QFY13 4QFY14
27.6
29.0
4QFY12 1QFY13 2QFY13 3QFY13 4QFY13

Exhibit 6: 52bp qoq lower yields on assets result in...

(%) 12.00 11.29 11.13 11.13
Exhibit 7: ...19bp qoq fall in reported NIM

(%)
Reported NIM 3.16 3.30 3.12 3.07 2.88
10.90
10.61
3.60 3.20
2.80
10.00
8.00
2.40 2.00
6.00
4QFY12
1QFY13
2QFY13
3QFY13
4QFY13
Asset quality continue to witness pressures

During 4QFY2013, the bank continued to witness asset quality pressures, as slippages for the quarter remained elevated at ~`1,300cr (annualized slippage ratio of 5.8%) as against ~`1,400cr in 3QFY2013 (annualized slippage ratio of 6.3%). Recoveries/upgrades also came higher during the quarter at `751cr, as compared to `190cr in 3QFY2013. Better recoveries/upgrades during the quarter, amidst elevated slippages, aided the bank to contain the sequential increase in Gross and Net NPA levels to 12.1% and 11.3% respectively. While the gross NPA ratio increased by 15bp sequentially to 3.3%, the increase in the net NPA ratio was 9bp to 2.3%. The banks PCR remained stable at 60.1%. During the quarter, the bank restructured advances worth `1,200cr, thereby taking its restructured book (stated borrower wise, after upgrading satisfactorily performing accounts) to `9,704cr. Going ahead, the restructuring pipeline for the bank under CDR stands at `1,100cr.
May 15, 2013
Exhibit 8: Asset quality under pressure.....

Gross NPAs (%) 75.1 2.2 70.1 1.7 1.2 0.7 0.2 4QFY12 1QFY13 2QFY13 3QFY13 4QFY14
Exhibit 9: ...on back of substantial surge in slippages

7.0 6.0 5.0 4.0 3.0 2.0 Slippages (%)
Net NPAs (%)

71.0
NPA coverage (%, RHS) 80.0 61.2 60.1 60.0 40.0 20.0 -
2.0 1.3
1.7 1.0
2.1 1.3
3.2 2.2
3.3 2.3
5.5
3.3
6.3
4QFY12
1QFY13
1.0
2QFY13
3QFY13
3QFY14
Exhibit 10: Cost-to-income ratio higher qoq

Staff exps (` cr) Other opex (` cr)
Exhibit 11: Opex-to-average asset rise sharply

64.0
CIR (%, RHS)
Cost-to-income ratio (%)
Opex to average assets (%, RHS)
1,200 1,050 900 750

600 450 300
70.0 60.0
50.0
80.0 60.0
40.0
4.9
2.5 3.0 2.5 2.0
1.5 1.0
1.0
42.6
222
45.9 38.9
369 166
38.9
1.7
40.0
1.5
1.5
1.6
206
191
197
30.0 20.0
42.6
38.9
38.9
64.0
45.9
20.0
386
379
445
781
150 -
10.0
0.5

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.
Rural and semi-urban presence relatively high, moderate CASA

Indian Bank opened 143 branches in the last 12 months, taking its total branch network to ~2,100 as of 4QFY2013. The bank has a higher proportion of rural and semi-urban presence (~55% of its total branches). Aided by this, the bank has been able to maintain a moderate CASA in the vicinity of 30%, with the CASA registering a 15.2% CAGR during FY2009 13.
Investment concerns
Relatively high yields
A larger portion of SME and mid-corporate loans has contributed to the banks relatively 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 NIMs 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 felt the heat on the asset-quality front in the
May 15, 2013
past one year, with significant increase in slippages and higher restructuring. Hence, we remain cautious on the banks asset quality and NIM outlook as in case of other banks with unsustainably high yields.
Outlook and valuation

The stock currently trades at 0.6x FY2015E ABV, below its eight-year trading range (0.8x-1.3x) and median of 1.0x. Although, we remain cautious on the banks asset quality, recent underperformance of the stock, in our view, over-discounts the asset quality concerns. Hence, we recommend a Buy rating on the stock, with a target price of `186.
May 15, 2013
Exhibit 12: Key assumptions

Particulars (%) Credit growth Deposit growth CASA ratio NIM Other income growth Growth in staff expenses Growth in other expenses Slippages Coverage ratio
Earlier estimates FY2014E 15.0 13.0 28.9 3.1 3.7 15.0 5.0 2.5 67.5 FY2015E 15.0 13.0 28.9 3.1 7.5 10.0 5.0 2.4 70.0
Revised estimates FY2014E 15.0 13.0 26.9 3.0 (6.4) 5.0 5.0 2.5 62.5 FY2015E 15.0 13.0 26.9 3.0 6.5 3.0 3.0 2.4 65.0
Exhibit 13: Change in estimates

Particulars (` cr) NII Non-interest income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT Earlier estimates 5,125 1,151 6,276 2,689 3,587 1,020 2,567 872 1,694 FY2014E Revised % chg estimates 4,981 1,204 6,185 2,888 3,297 959 2,338 1,637 (2.8) 4.6 (1.4) 7.4 (8.1) (6.0) (8.9) (3.4) FY2015E Earlier estimates 5,731 1,238 6,968 2,918 4,051 1,230 2,821 959 1,862 Revised % chg estimates 5,696 1,282 6,978 2,975 4,003 1,183 2,821 959 1,862 (0.6) 3.6 0.1 2.0 (1.2) (3.8) (0.0) (0.0) (0.0)
701 (19.6)
Exhibit 14: P/ABV band

Price(`)
600 500 400 300 200 100 0 0.5x 0.8x 1.1x 1.4x 1.7x
Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14
May 15, 2013
Exhibit 15: Recommendation summary

Company Reco. 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 Buy Neutral Neutral Buy Accumulate Neutral Buy Neutral Buy Accumulate Accumulate Accumulate Neutral Buy Neutral Neutral Buy Neutral Neutral Neutral Buy Accumulate Accumulate Reduce Accumulate Accumulate Neutral CMP (`) 1,509 477 715 1,192 25 527 126 93 729 328 58 429 71 413 95 90 160 64 1,342 270 823 2,385 130 82 243 59 54 Tgt. price (`) 1,853 1,444 26 149 851 361 62 451 476 186 993 2,669 137 77 260 64 Upside (%) 22.8 21.2 5.3 17.9 16.8 10.1 6.6 5.1 15.2 16.3 20.7 11.9 5.0 (5.2) 6.8 8.1 FY2015E P/ABV (x) 1.6 1.0 3.4 1.7 0.9 2.2 0.5 0.6 0.8 0.7 0.6 0.7 0.6 0.5 0.5 0.5 0.6 0.4 1.0 0.6 0.7 1.3 0.6 0.8 0.7 0.4 0.6 FY2015E Tgt. P/ABV (x) 2.0 2.1 1.0 0.6 0.9 0.8 0.7 0.8 0.6 0.7 0.9 1.5 0.7 0.8 0.8 0.4 FY2015E P/E (x) 9.9 7.7 16.8 12.4 5.5 11.0 3.5 4.1 5.1 4.8 4.1 5.0 3.9 3.8 3.7 4.0 3.8 3.1 6.7 4.2 4.6 8.5 4.3 5.6 5.1 2.8 4.8 FY2013-15E EPS CAGR (%) 17.3 12.4 22.8 15.5 9.5 14.9 12.6 (0.3) 15.9 21.6 15.5 15.1 48.4 7.1 5.0 26.5 8.8 83.4 (5.2) 18.4 14.8 16.4 (4.4) 36.9 15.7 40.4 9.6 FY2015E RoA (%) 1.6 1.2 1.8 1.5 1.0 1.3 0.8 0.7 0.9 0.7 0.7 0.8 0.6 0.7 0.7 0.8 1.0 0.7 1.2 0.8 1.1 1.0 0.7 0.6 0.7 0.7 0.4 FY2015E RoE (%) 17.6 14.2 21.8 15.6 17.0 22.1 14.2 13.0 15.7 15.0 16.5 14.2 13.8 14.5 15.1 13.4 15.1 13.4 16.0 13.3 16.5 17.0 15.9 12.6 15.4 14.7 12.0
Source: Company, Angel Research; Note: *Target multiples=SOTP Target Price/ABV (including subsidiaries), # Without adjusting for SASF
Company Background
Indian Bank is a Chennai-based mid-sized public sector bank, with 2,089 branches (1418 ultra small branches) and a balance sheet size of ~`1.6lakh cr. Around two-thirds of the bank's branches are spread across the southern states with majority being in the parent state of Tamil Nadu.
May 15, 2013
Income statement (Standalone)

Y/E March (` cr) NII - YoY Growth (%) Other Income - YoY Growth (%) Operating Income - YoY Growth (%) Operating Expenses - 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 (%) Preference Dividend PAT avl. To equity sh. - YoY Growth (%) FY10 3,161 21.2 1,316 27.1 4,478 22.9 1,730 22.3 2,747 23.3 396 (10.6) 2,352 31.7 797 33.9 1,555 24.9 46 1,509 25.5 FY11 4,036 27.7 1,182 (10.2) 5,218 16.5 1,926 11.3 3,292 19.8 657 66.1 2,634 12.0 920 34.9 1,714 10.2 46 1,668 10.5 FY12 4,418 9.5 1,232 4.3 5,650 8.3 2,187 13.5 3,463 5.2 1,195 81.9 2,268 (13.9) 521 23.0 1,747 1.9 46 1,701 2.0 FY13 4,524 2.4 1,287 4.4 5,811 2.8 2,751 25.8 3,060 (11.6) 1,234 3.2 1,826 (19.5) 245 13.4 1,581 (9.5) 46 1,535 (9.8) FY14E 4,981 10.1 1,204 (6.4) 6,185 6.4 2,888 5.0 3,297 7.7 959 (22.3) 2,338 28.0 701 30.0 1,637 3.5 46 1,590 3.6 FY15E 5,696 14.4 1,282 6.5 6,978 12.8 2,975 3.0 4,003 21.4 1,183 23.4 2,821 20.6 959 34.0 1,862 13.8 46 1,815 14.2
Balance sheet (Standalone)

Y/E March (` cr) Share Capital Equity Preference Reserves & 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 (%) FY10 830 430 400 7,442 88,228 21.6 657 300 3,932 101,389 7,061 1,052 28,268 62,146 20.8 1,580 1,282 101,389 20.5 FY11 830 430 400 8,691 105,804 19.9 800 1,300 4,293 121,718 6,878 1,684 34,784 75,250 21.1 1,606 1,516 121,718 20.1 FY12 830 430 400 9,972 120,804 14.2 3,783 1,090 4,941 141,419 6,319 2,494 37,976 90,324 20.0 1,631 2,676 141,419 16.2 FY13 830 430 400 11,143 141,980 17.5 1,800 1,063 6,007 162,823 7,099 2,872 42,307 105,643 17.0 1,821 3,080 162,823 15.1 FY14E 830 430 400 12,383 160,438 13.0 2,024 1,036 6,437 183,148 7,220 3,205 45,782 121,489 15.0 1,987 3,465 183,148 12.5 FY15E 830 430 400 13,799 181,294 13.0 2,280 1,010 7,037 206,251 8,158 3,609 48,698 139,712 15.0 2,171 3,902 206,251 12.6
May 15, 2013
Ratio Analysis
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 0.8 0.2 1.1 0.4 93.6 35.1 154.7 6.5 4.6 1.0 4.1 3.4 0.4 3.0 0.4 3.4 1.0 4.4 1.9 2.5 0.9 1.7 15.3 25.6 1.0 0.5 1.5 0.6 84.3 38.8 184.4 7.5 4.1 0.9 4.7 3.6 0.6 3.0 0.1 3.2 0.9 4.1 1.7 2.4 0.8 1.5 15.3 23.5 2.0 1.3 2.5 0.6 70.1 39.6 210.4 7.5 4.0 0.8 4.7 3.4 0.9 2.4 0.1 2.5 0.9 3.4 1.7 1.7 0.4 1.3 15.3 20.4 3.3 2.3 3.8 0.5 60.1 35.7 221.5 6.6 4.5 0.7 4.1 3.0 0.8 2.2 0.1 2.2 0.8 3.0 1.8 1.2 0.2 1.0 15.5 16.1 3.9 2.2 2.5 0.5 62.5 37.0 250.6 7.0 4.3 0.6 4.4 2.9 0.6 2.3 0.0 2.4 0.7 3.0 1.7 1.4 0.4 0.9 15.7 14.8 4.4 2.1 2.4 0.5 65.0 42.2 284.6 8.0 3.8 0.6 5.0 2.9 0.6 2.3 0.0 2.4 0.6 3.0 1.5 1.4 0.5 1.0 15.8 15.1 32.2 70.4 12.7 11.1 30.9 71.1 13.6 11.0 30.6 74.8 13.5 11.1 27.6 74.4 12.9 10.9 26.9 75.7 12.7 10.8 26.9 77.1 12.4 10.7 3.5 38.6 1.7 25.6 3.7 36.9 1.5 23.5 3.5 38.7 1.3 20.4 3.1 47.3 1.0 16.1 3.0 46.7 0.9 14.8 3.0 42.6 1.0 15.1 FY10 FY11 FY12 FY13 FY14E FY15E
Slippages
Loan loss prov. /avg. assets Provision Coverage Per Share Data (`) EPS ABVPS 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 (x) RoE
May 15, 2013
10
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
Indian 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%)
May 15, 2013
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Indian Bank 4Q FY 2013

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Indian Bank 4Q FY 2013

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4QFY2013 Result Update | Banking

May 15, 2013

4QFY13 1,107 565 292

Banking 6,889 1.0 219/151 44,320 10 20,213 6,147 INBA.BO INBK@IN

Abs. (%) Sensex INBK

(13.3) (11.6) (24.0)

Key financials (Standalone)

Please refer to important disclosures at the end of this report