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1QFY2014 Result Update | Banking

August 3, 2013

Dena Bank
Performance Highlights

Particulars (` cr) NII Pre-prov. profit PAT


Source: Company, Angel Research

NEUTRAL
CMP Target Price
4QFY13 562 401 126 % chg (qoq) 7.6 46.3 50.6 1QFY13 612 458 239 % chg (yoy) (1.2) 28.0 (20.7)

`47 12 months

1QFY14 605 586 189

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 1,633 1.3 128/46 394,694 10 19,164 5,678 DENA.BO DBNK@IN

Dena Bank reported a weak operating performance for 1QFY2014, as its NII de-grew by 1.2% yoy. The non-interest income grew strongly by 158.0% yoy, propelled by treasury gains of `248cr vs. `32cr in 1QFY2013. Overall, the pre-provisioning profit for the bank grew by 28.0% yoy. The bank witnessed significant asset quality deterioration during the quarter, as Gross and Net NPA levels increased by around 21% qoq. Consequently, provisioning expenses increased by 120.6% yoy and earnings de-grew by 20.7% yoy.

Business growth moderates; Asset quality deteriorates qoq: During 1QFY2014,


the advance book for the bank grew moderately by 8.9% yoy, while deposits grew at a healthy pace of 18.3% yoy. Loan growth was primarily aided by a healthy growth of 25% plus in agriculture, MSME and retail book. CASA deposits grew at a moderate pace of 6.9% yoy. CASA ratio has been trending downwards for the bank and even during the quarter it declined by 91bp qoq to 27.9%. Reported NIM increased by 9bp qoq to 2.5%, aided by an 11bp qoq decline in cost of deposits. The banks non-interest income (excluding treasury), grew at a moderate pace of 7.2% yoy to `117cr, on back of subdued CEB income performance (8.2% yoy decline to `56cr). Slippages during the quarter came in at `408cr (annualized slippage rate of 2.5%), in-line with the Managements guidance. Of incremental slippages, an account from the IT sector (at `98cr) was the largest. Recoveries and Upgrades came in sequentially lower at `103cr compared to `146cr in 4QFY2013. PCR dipped by 144bp sequentially to 68.1%. As of 1QFY2014, the banks outstanding restructured book stood at ~`6,538cr (as compared to `5,423cr in 4QFY2013). Going ahead, the Management has guided for advances worth `800cr to be in the restructuring pipeline. Outlook and valuation: The bank has witnessed a marked decline in its CASA ratio over the last two years (from 35.2% to 27.9% as of 1QFY2014), which can be largely attributed to strong growth in term deposits (CAGR of 28.8%) to fund its aggressive loan book growth. We are cautious on the banks asset quality performance, in-line with the sectoral outlook, post the recent macro developments in midst of overall weak macro fundamentals. Moreover, the bank plans to raise capital to the tune of `2,180cr, which is likely to be at book-dilutive valuations. Hence, we recommend a Neutral rating on the stock.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 55.2 8.1 16.9 19.7

Abs. (%) Sensex Dena Bank

3m (2.1) (48.7)

1yr 11.3 (49.1)

3yr 6.0 (54.3)

Key financials (standalone)


Y/E March (` cr) NII % chg Net profit % chg NIM (%) EPS (`) P/E (x) P/ABV (x) RoA (%) RoE (%)

FY2012
2,101 19.1 803 31.3 2.7 22.9 2.2 0.4 1.0 20.7

FY2013
2,383 13.4 810 0.9 2.4 23.1 2.1 0.4 0.8 17.6

FY2014E
2,508 5.2 613 (24.4) 2.2 17.5 2.8 0.3 0.5 11.9

FY2015E
2,823 12.6 758 23.6 2.4 21.6 2.3 0.3 0.6 13.2

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

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

Harshal Patkar
022 3935 7800 Ext: 6847 harshal.patkar@angelbroking.com

Source: Company, Angel Research; Note: CMP as of August 2, 2013

Please refer to important disclosures at the end of this report

Dena Bank | 1QFY2014 Result Update

Exhibit 1: 1QFY2014 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 - Recov. from written off a/cs 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

1QFY14 2,400 1,793 597 10 1,795 605 366 118 56 248 11 970 384 239 145 586 228 109 (22) 141 358 169 189 47.2

4QFY13 2,304 1,737 557 8 3 1,742 562 235 152 136 83 16 797 397 248 148 401 342 143 98 101 59 (67) 126 (113.7)

% chg (qoq) 4.2 3.3 7.2 18.1 (100.0) 3.0 7.6 55.2 (22.9) (59.0) 198.8 (31.3) 21.7 (3.2) (3.8) (2.1) 46.3 (33.3) (23.8) (122.4) 39.8 508.9 (352.6) 50.6 16085bp

1QFY13 2,137 1,651 449 10 27 1,525 612 142 110 61 32 6 754 296 172 124 458 103 95 (34) 42 355 116 239 32.7

% chg (yoy) 12.3 8.7 32.8 (3.1) (100.0) 17.7 (1.2) 158.0 7.2 (8.2) 674.0 83.3 28.7 29.7 38.8 17.2 28.0 120.6 15.0 (34.5) 234.3 1.0 45.7 (20.7) 1448bp

FY2013 8,899 6,819 2,019 31 30 6,516 2,383 655 498 412 157 44 3,039 1,300 792 508 1,739 706 374 54 279 1,032 222 810 21.5

FY2012 6,794 5,161 1,544 38 51 4,693 2,101 582 547 478 35 70 2,683 1,155 715 440 1,528 562 262 104 196 966 163 803 16.9

% chg 31.0 32.1 30.8 (18.5) (40.7) 38.8 13.4 12.6 (9.0) (13.9) 353.4 (36.8) 13.2 12.6 10.8 15.4 13.8 25.6 42.6 (48.5) 42.5 6.9 36.2 0.9 463bp

Exhibit 2: 1QFY2014 Actual vs. Angel estimates


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

Actual 605 366 970 384 586 228 358 169 189

Estimates 590 207 798 334 464 240 223 58 165

% chg 2.4 76.4 21.6 15.0 26.4 (5.1) 60.5 191.1 14.6

August 3, 2013

Dena Bank | 1QFY2014 Result Update

Exhibit 3: 1QFY2014 performance analysis (standalone)


Particulars Balance sheet Advances (` cr) Deposits (` cr) Credit-to-Deposit Ratio (%) Current deposits (` cr) Savings deposits (` cr) 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 (%) Loan loss prov. to avg. assets (%)
Source: Company, Angel Research

1QFY14 4QFY13 64,975 94,359 68.9 5,509 20,845 26,354 27.9 11.1 7.3 7.6 11.3 2.6 39.6 1,757 2.7 1,114 1.7 68.1 2.5 0.4 65,781 97,207 67.7 6,755 21,283 28,038 28.8 11.0 7.3 7.7 11.3 2.5 49.7 1,452 2.2 917 1.4 69.6 2.8 0.5

% chg (qoq) 1QFY13 (1.2) (2.9) 119bp (18.4) (2.1) (6.0) (91)bp 9bp 2bp (11)bp 1bp 9bp (1017)bp 21.0 51bp 21.5 35bp (144)bp (35)bp (12)bp 59,642 79,736 74.8 5,282 19,361 24,643 30.9 12.4 8.3 7.7 12.0 3.1 39.3 1,076 1.8 597 1.0 75.6 1.4 0.4

% chg (yoy) 8.9 18.3 (594)bp 4.3 7.7 6.9 (298)bp (123)bp (105)bp (9)bp (61)bp (51)bp 32bp 63.3 90bp 86.6 73bp (748)bp 113bp (3)bp

Advance growth remains moderate; NIM increases qoq


During 1QFY2014, the banks advance book grew at a moderate pace of 8.9% yoy, while deposits grew at a healthy pace of 18.3% yoy. Moderate loan growth was primarily aided by strong growth in agriculture, MSME and retail advances, which increased by 29.4%, 27.7% and 25.7% yoy, respectively. Going forward, the Management has guided for a 16% yoy growth in its advances and deposits for FY2014. CASA deposits grew at a moderate pace of 6.9% yoy, as current deposits grew at a muted pace of 4.3% yoy, while savings deposits too grew at a subdued pace of 7.7% yoy. The banks CASA ratio has been trending downwards and even during the quarter it declined by 91bp qoq to 27.9%. Going ahead, the Management targets to increase its CASA ratio to a level of 30-32% by FY2014. Cost of deposits declined by 11bp qoq to 7.6%, aided by reduction in high-cost bulk deposits. Yield on advances remained stable sequentially at 11.3%. Yield on investments increased by 7bp qoq to 7.6%. The Reported NIM increased 9bp qoq to 2.5%.

August 3, 2013

Dena Bank | 1QFY2014 Result Update

Exhibit 4: Advance growth moderates


50.0 40.0 30.0 20.0
39.1 26.1 37.8 30.1 30.5 24.2

Exhibit 5: CASA ratio lower sequentially


CDR (%, RHS) 76.0 74.0 72.0 68.9

Adv. yoy chg (%) 74.8

Dep. yoy chg (%) 73.7

34.0 32.0 30.0 28.0


30.9

CASA ratio 16.4 10.8

CASA yoy growth (%, RHS)

20.0 16.0 12.0

70.4 67.7
16.0 26.0 8.9 18.3

70.0 68.0 66.0 64.0

10.3 5.4
31.9 31.0 28.8

6.9

8.0 4.0 -

1QFY13 2QFY13 3QFY13 4QFY13 1QFY14


Source: Company, Angel Research

24.0 1QFY13 2QFY13 3QFY13


Source: Company, Angel Research

4QFY13

1QFY14

Exhibit 6: Cost of deposits declined 11bp qoq...


(%) 8.00 7.75 7.50 7.68 7.75 7.64 7.70 7.59

Exhibit 7: ...hence, NIM improved sequentially by 9bp


3.20
(%)

3.06 2.86 2.88

2.90

27.9

10.0

26.0

2.60

2.55 2.46

7.25 7.00 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14


Source: Company, Angel Research

2.30 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14


Source: Company, Angel Research

Moderate growth in non-interest income (excl. treasury) on lower CEB; Strong performance on Treasury front
During 1QFY2014, the non-interest income (excluding treasury) grew at a moderate pace of 7.2% yoy to `117cr, on back of subdued CEB income performance (8.2% yoy decline to `56cr). Recoveries from written off accounts came in at `11cr compared to `6cr in 1QFY2013, while Forex income grew strongly at 31.8% yoy to `29cr. Overall non-interest income for the bank grew by 158.0% yoy to `366cr, mostly due to strong performance on the treasury front (`248cr in 1QFY2014 compared to `32cr in 1QFY2013).

Asset quality deteriorates sequentially


The bank witnessed significant asset quality pressures during the quarter, as its gross and net NPA levels increased sequentially by 21.0% and 21.5%, respectively. The Gross NPA ratio as of 1QFY2014 stands at 2.7% (2.2% in 4QFY2013), while net NPA ratio stands at 1.7% (1.4% in 4QFY2013). Slippages during the quarter came in at `408cr (annualized slippage rate of 2.5%), compared to `401cr in 4QFY2013 (annualized slippage rate of 2.8%). Of incremental slippages, an account from the IT sector (at `98cr) was the largest.. Recoveries and upgrades came in sequentially lower at `103cr compared to `146cr in 4QFY2013. PCR (including technical write-offs) dipped by 144bp sequentially to 68.1%.
August 3, 2013

Dena Bank | 1QFY2014 Result Update

As of 1QFY2014, the banks outstanding restructured book stood at ~`6,538cr (as compared to `5,423cr in 4QFY2013). Going ahead, the Management has guided for advances worth `800cr to be in the restructuring pipeline.

Exhibit 8: Slippage ratio remain elevated


Slippages (%) 3.0 2.5 2.0 1.5 1.0
1.4 2.0 1.7 2.8 2.5

Exhibit 9: NPA ratios higher sequentially


0.6 0.4 2.5 2.0 Gross NPAs (%) 75.6 72.5 70.6 69.6 Net NPAs (%) PCR (%, RHS) 80.0 75.0 68.1 70.0 65.0
1.8 1.0 2.0 1.2 2.1 1.3 2.2 1.4 2.7 1.7

Credit cost (%, RHS) 0.5

0.4 0.3 0.3

0.4

1.5 1.0 0.5

0.2

0.5 -

1QFY13 2QFY13 3QFY13 4QFY13 1QFY14

1QFY13 2QFY13 3QFY13 4QFY13 1QFY14


Source: Company, Angel Research

60.0

Source: Company, Angel Research

Exhibit 10: Cost ratios stable yoy


Cost-to-income ratio (%) 60.0 45.0 1.3 30.0 15.0 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
Source: Company, Angel Research

Exhibit 11: Steady network expansion continues


1.5 1.4 1.4 1.3 1.2 1.1 1,550 1,500 1,450 1,400 1,350
1,358 1,417 1,431 1,464 1,492

Opex to average assets (%, RHS) 1.4

Branches 561 576

ATMs (RHS) 693 620

800 700 600 500 400 300 200 100 -

545

1.2
39.3 39.9

1.2
41.7 49.7 39.6

1,300 1,250

1QFY13

2QFY13

3QFY13

4QFY13

1QFY14

Source: Company, Angel Research

August 3, 2013

Dena Bank | 1QFY2014 Result Update

Outlook and valuation


Dena Bank has a structurally strong CASA franchise (majority of the branches being in rural and semi-urban areas of CASA rich western India), aiding a better NIM than peers. The bank has witnessed a marked decline in its CASA ratio from 35.2% as of 1QFY2012 to 27.9% as of 1QFY2014, which can be attributed to a) muted performance on CASA deposits front (CAGR of 8.8%) and b) strong traction witnessed in term deposits (CAGR of 28.8%) required to fuel its aggressive loan book growth. Despite challenging macro fundamentals, the bank has aggressively grown its loan book over the last couple of years. We are cautious on the banks asset quality performance, in-line with the sectoral outlook, post the recent macro developments in midst of overall weak macro fundamentals. Moreover, the bank plans to raise capital to the tune of `2,180cr, which is likely to be at book-dilutive valuations. Hence, we recommend a Neutral rating on the stock.

Exhibit 12: Key assumptions


Particulars (%) Credit growth Deposit growth CASA ratio NIM Other income growth Growth in staff expenses Growth in other expenses Slippages Earlier estimates FY2014 15.0 8.0 29.5 2.3 5.4 15.0 13.0 2.0 70.0 FY2015 15.0 10.0 30.3 2.4 4.1 13.0 13.0 1.6 72.5 Revised estimates FY2014 15.0 6.0 29.5 2.2 21.9 15.0 15.0 2.0 68.0 FY2015 15.0 10.0 30.3 2.4 (11.4) 12.0 12.0 1.8 72.0

Coverage ratio
Source: Angel Research

Exhibit 13: Change in estimates


FY2014E Particulars (` cr) NII Non-interest income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT
Source: Angel Research

FY2015E Var. (%) (2.2) 15.7 1.6 0.7 2.3 21.3 (10.9) 16.5 (20.5) Earlier estimates 2,904 719 3,623 1,677 1,946 625 1,321 449 872 Revised estimates 2,823 708 3,531 1,674 1,857 709 1,148 390 758 Var. (%) (2.8) (1.6) (2.6) (0.2) (4.6) 13.4 (13.1) (13.1) (13.1)

Earlier estimates 2,565 691 3,255 1,484 1,771 729 1,042 271 771

Revised estimates 2,508 799 3,307 1,495 1,812 884 929 316 613

August 3, 2013

Dena Bank | 1QFY2014 Result Update

Exhibit 14: P/ABV Band


250 200 150 100 50 0 Price (`) 0.3x 0.6x 0.9x 1.2x 1.5x

Jul-04

Jul-06

Jul-08

Jul-10

Mar-03

Mar-05

Mar-07

Mar-09

Mar-11

Jul-12

Nov-03

Nov-05

Nov-07

Nov-09

Nov-11

Mar-13

Source: Company, Angel Research

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 Neutral Buy Buy Neutral Neutral Neutral Reduce Neutral Neutral Neutral Neutral Reduce Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Accumulate Neutral Neutral Neutral Neutral Neutral CMP (`) 1,104 350 631 887 21 308 67 58 488 170 40 242 57 280 47 60 70 40 1,099 137 524 1,681 75 58 117 33 38 Tgt. price (`) 1,302 745 1,068 51 52 1,930 Upside (%) 18 18 20 (11) (8) 15 FY2015E P/ABV (x) 1.2 0.8 3.0 1.3 0.8 1.3 0.3 0.4 0.5 0.4 0.4 0.4 0.6 0.3 0.3 0.3 0.3 0.3 0.8 0.3 0.5 0.9 0.4 0.5 0.4 0.2 0.4 FY2015E Tgt. P/ABV (x) 1.4 3.5 1.5 0.4 0.5 1.1 FY2015E P/E (x) 7.0 6.7 14.0 9.2 5.0 6.2 2.2 3.5 3.9 2.7 3.1 2.8 3.6 2.9 2.2 2.7 2.1 2.6 5.4 2.2 3.2 5.9 3.2 3.7 2.9 1.7 4.2
#

FY2013-15E EPS CAGR (%) 19.1 2.9 26.3 15.8 5.7 16.9 12.6 (15.1) 8.3 16.2 10.0 15.4 40.1 2.3 (3.3) 25.1 (4.2) 57.5 (3.5) 17.0 10.8 17.5 (16.0) 66.4 6.2 54.6 (0.4)

FY2015E RoA (%) 1.6 1.0 1.9 1.6 0.9 1.3 0.6 0.5 0.8 0.7 0.6 0.8 0.5 0.7 0.6 0.8 0.8 0.5 1.3 0.8 1.0 1.0 0.6 0.6 0.6 0.6 0.4

FY2015E RoE (%) 18.1 12.3 22.8 15.4 16.2 22.8 12.4 10.0 14.2 13.9 15.3 14.2 12.8 13.5 13.2 13.3 12.4 10.5 16.3 12.9 15.7 17.0 12.8 13.5 13.4 14.7 9.8

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

August 3, 2013

Nov-13

Dena Bank | 1QFY2014 Result Update

Company Background
Dena Bank is a mid-sized PSU bank, with a balance sheet size of ~`1,10,000cr. The bank has a branch network of 1,492 branches and 693 ATMs. The bank's branches are mainly concentrated in the rural and semiurban areas (~58% of overall branches) and has a major presence in the state of Gujarat.

August 3, 2013

Dena Bank | 1QFY2014 Result Update

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 (%) FY10 1,100 3.3 589 36.9 1,689 13.0 848 10.4 841 15.7 154 (16.8) 687 26.8 176 25.6 511 21.0 FY11 1,763 60.3 534 (9.3) 2,297 36.0 1,073 26.6 1,224 45.6 326 111.7 898 30.8 287 31.9 612 19.6 FY12 2,101 19.1 582 9.1 2,683 16.8 1,155 7.6 1,528 24.9 563 72.8 966 7.5 163 16.9 803 31.3 FY13E 2,383 13.4 655 12.6 3,039 13.2 1,300 12.6 1,739 13.8 706 25.6 1,032 6.9 222 21.5 810 0.9 FY14E 2,508 5.2 799 21.9 3,307 8.8 1,495 15.0 1,812 4.2 884 25.1 929 (10.0) 316 34.0 613 (24.4) FY15E 2,823 12.6 708 (11.4) 3,531 6.8 1,674 12.0 1,857 2.4 709 (19.8) 1,148 23.6 390 34.0 758 23.6

Balance sheet (standalone)


Y/E March (` cr) Share Capital 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 (%) FY10 287 2,315 51,344 19.3 46 1,516 2,079 57,587 4,355 759 15,694 35,462 22.8 407 908 57,587 18.8 FY11 333 3,323 64,210 25.1 176 1,516 1,281 70,838 4,721 687 18,769 44,828 26.4 404 1,429 70,838 23.0 FY12 350 4,127 77,167 20.2 2,365 1,516 1,863 87,388 5,195 356 23,028 56,693 26.5 407 1,710 87,388 23.4 FY13E 350 5,414 26.0 6,048 2,366 2,056 8,644 1,177 34,343 65,781 16.0 1,112 2,383 29.8 FY14E 350 5,925 6.0 3,521 2,307 2,215 4,637 1,760 33,704 73,675 12.0 1,116 2,465 3.5 FY15E 350 6,540 113,344 10.0 3,864 2,249 2,452 128,799 5,100 1,932 33,148 84,726 15.0 1,188 2,705 128,799 9.8

97,207 103,040

113,440 117,357

113,440 117,357

August 3, 2013

Dena Bank | 1QFY2014 Result Update

Ratio Analysis (standalone)


Y/E March 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 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 2.1 0.3 1.8 0.3 2.1 0.8 2.9 1.6 1.3 0.3 1.0 24.4 23.5 2.7 0.5 2.2 0.0 2.3 0.8 3.1 1.7 1.4 0.4 1.0 21.9 20.9 2.7 0.7 1.9 0.0 2.0 0.7 2.7 1.5 1.2 0.2 1.0 20.4 20.7 2.4 0.7 1.7 0.2 1.8 0.5 2.3 1.3 1.0 0.2 0.8 21.8 17.6 2.2 0.8 1.4 0.2 1.6 0.5 2.1 1.3 0.8 0.3 0.5 22.3 11.9 2.3 0.6 1.7 0.1 1.8 0.5 2.3 1.4 0.9 0.3 0.6 21.5 13.2 2.8 0.6 4.0 2.7 0.5 4.4 2.2 0.4 6.1 2.1 0.4 9.5 2.8 0.3 5.1 2.3 0.3 7.1 17.8 83.4 2.0 18.3 103.5 2.2 22.9 122.6 3.0 23.1 135.6 4.7 17.5 147.0 2.5 21.6 168.6 3.5 1.8 1.2 2.2 0.2 78.6 1.9 1.2 2.1 0.4 74.6 1.7 1.0 1.6 0.3 75.5 2.2 1.4 2.0 0.4 69.6 2.9 1.7 2.0 0.5 68.0 3.3 1.5 1.8 0.4 72.0 36.0 69.1 12.8 8.2 35.5 69.8 13.4 9.8 34.6 73.5 11.5 8.9 29.0 67.7 11.0 7.3 29.5 71.5 11.4 7.8 30.3 74.8 11.2 7.9 FY10 2.1 50.2 1.0 23.5 FY11 2.8 46.7 1.0 20.9 FY12 2.7 43.0 1.0 20.7 FY13E 2.4 42.8 0.8 17.6 FY14E 2.2 45.2 0.5 11.9 FY15E 2.4 47.4 0.6 13.2

August 3, 2013

10

Dena Bank | 1QFY2014 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 Pvt. 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 Pvt. 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 Pvt. 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 Pvt. 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 Pvt. 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 Pvt. 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 Pvt. 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

Dena 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 3, 2013

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