1QFY2014 Result Update | Banking

Aug 6, 2013

Oriental Bank of Commerce

Performance Highlights

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

1QFY14 1,307 1,088 353 4QFY13 1,214 947 308 % chg (qoq) 7.7 15.0 14.8 1QFY13 1,126 897 391 % chg (yoy) 16.1 21.4 (9.7)

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 4,007 1.2 368/134 105,354 10 18,733 5,542 ORBC.BO OBC@IN

`137 -

Source: Company, Angel Research

Oriental Bank of Commerce reported a healthy operating performance for the quarter with NII growth of 16.1% yoy. The bank continued to face asset quality pressure during the quarter, as slippages remained high at 2.4%. The provisioning expenses for the bank grew by 60.4%, resulting in bottom-line de-growth of 9.7% yoy. Moderate business growth; NIM improves marginally: The banks business growth was moderate during the quarter, as advances grew by 12.4% yoy largely aided by healthy 22.1% yoy growth in retail loan book. On the deposits front, growth was lower at 11.5% yoy, mostly due to shedding of high cost bulk deposits (now stand at 17.7% of the overall deposits as against 20.3% in 4QFY2013). CASA deposits too grew at a moderate pace of 10.1% yoy. The CASA ratio declined by 81bp qoq to 23.7%. Sequentially, cost of deposits declined marginally by 8bp to 7.7% and yield on advances increased by 5bp to 12.0%. Consequently, the NIM for the bank improved 8bp qoq to 2.9%. The banks other income excluding treasury de-grew by 21.2% yoy. The treasury income came in strong at `206cr compared to `13cr loss in 1QFY2013. On the asset quality front, despite high slippages (at `762cr or 2.4%), better recoveries and upgrades performance (at `385cr as compared to `249cr for 4QFY2013) aided the bank to limit the increase in Gross and Net NPA levels to 2.8% and 1.2% qoq, respectively. The PCR (incl. technical write-offs) for the bank improved 88bp qoq to 63.9%. Going ahead, the bank expects slippages of ~`750-800cr per quarter for the remaining quarters of FY2014. During the quarter, the bank restructured advances worth `419cr, thereby taking its total outstanding restructuring book to `10,268cr. The restructuring pipeline for the bank stands at `1,400cr.
Outlook and valuation: The bank has been witnessing asset quality pressures on its loan book lately. We remain wary of the incremental asset quality and margins concerns for the bank, as we take into consideration its high exposure to stressed sectors, its predominantly wholesale based funding profile and recent macro developments amidst an overall weak economic environment. Overall, we have a cautious view on the sector, with a positive bias towards more retail-oriented banks, on both assets as well as on liabilities. Hence, we recommend a neutral rating on the stock.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 58.0 24.6 10.3 7.1

Abs. (%) Sensex OBC

3m (4.8) (46.6)

1yr 7.6 (41.5)

3yr 3.2 (64.8)

Key financials (standalone)

Y/E March (` cr) NII % chg Net profit % chg NIM (%) EPS (`) P/E (x) P/ABV (x) RoA (%) RoE (%) FY2012 4,216 0.9 1,147 (23.7) 2.6 39.3 3.5 0.4 0.7 10.8 FY2013 4,701 11.5 1,328 15.8 2.5 45.5 3.0 0.4 0.7 11.5 FY2014E 5,336 13.5 1,362 2.5 2.6 46.7 2.9 0.3 0.6 10.8 FY2015E 5,878 10.2 1,532 12.5 2.5 52.5 2.6 0.3 0.6 11.1

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 6, 2013

Please refer to important disclosures at the end of this report

Oriental Bank of Commerce | 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. - 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

1QFY14 4,718 3,635 1,045 30 7 3,411 1,307 538 332 193 206 140 1,845 757 450 306 1,088 533 345 32 156 556 202 353 36.4

4QFY13 4,534 3,494 969 12 60 3,321 1,214 462 394 229 68 165 1,675 729 443 286 947 759 499 49 212 188 (120) 308 (64.0)

% chg (qoq) 4.0 4.0 7.9 155.9 (88.2) 2.7 7.7 16.5 (15.5) (15.8) 201.8 (15.1) 10.1 3.8 1.7 7.1 15.0 (29.8) (30.8) (34.5) (26.3) 195.9 NA 14.8 10040bp

1QFY13 4,287 3,332 946 8 1 3,161 1,126 408 422 170 (13) 252 1,534 638 376 262 897 332 430 (132) 34 564 173 391 30.7

% chg (yoy) 10.0 9.1 10.5 258.9 589.3 7.9 16.1 31.7 (21.2) 13.5 NA (44.5) 20.3 18.7 19.7 17.2 21.4 60.4 (19.8) NA 361.2 (1.6) 16.8 (9.7) 574bp

FY2013 17,705 13,758 3,854 31 61 13,004 4,701 1,655 1,486 766 169 720 6,356 2,665 1,576 1,089 3,691 2,155 1,581 (74) 648 1,536 208 1,328 13.5

FY2012 15,815 12,075 3,385 319 36 11,599 4,216 1,240 1,071 726 169 345 5,456 2,315 1,357 959 3,141 1,715 1,079 285 351 1,426 284 1,142 19.9

% chg 12.0 13.9 13.8 (90.1) 69.9 12.1 11.5 33.4 38.8 5.5 (0.4) 108.7 16.5 15.1 16.2 13.6 17.5 25.6 46.6 NA 84.7 7.7 (26.8) 16.3 (638)bp

Exhibit 2: 1QFY2014 Actual vs. Angel 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 1,307 538 1,845 757 1,088 533 556 202 353

Estimates 1,247 331 1,578 683 895 456 439 114 325

Var. (%) 4.8 62.6 16.9 10.9 21.6 16.8 26.6 77.2 8.8

August 6, 2013

Oriental Bank of Commerce | 1QFY2014 Result Update

Exhibit 3: 1QFY2014 performance (standalone)

Particulars (` cr) 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 (%) Cost of deposits Yield on advances Yield on investments Yield on funds Cost of funds Reported NIM Cost-to-income ratio Asset quality Gross NPAs (` cr) Gross NPAs (%) Net NPAs (` cr) Net NPAs (%) Provision coverage ratio (%) Slippage ratio (%) NPA to avg. assets (%) 4,303 3.4 2,936 2.3 63.9 2.4 0.7 4,184 3.2 2,903 2.3 63.0 3.7 1.0 2.8 15bp 1.2 7bp 88bp (135)bp (33)bp 3,378 3.0 2,306 2.1 64.4 2.5 1.0 27.4 39bp 27.3 29bp (54)bp (15)bp (27)bp 7.7 12.0 7.4 9.5 6.9 2.9 41.0 7.8 12.0 7.4 9.5 6.9 2.8 43.5 (8)bp 5bp 6bp (6)bp (4)bp 8bp (249)bp 8.0 12.4 7.5 9.5 7.0 2.8 41.6 (28)bp (35)bp (4)bp (6)bp (19)bp 11bp (55)bp 1QFY14 127,995 176,275 72.6 10,551 31,293 41,844 23.7 12.0 9.2 4QFY13 128,955 175,898 73.3 11,663 31,522 43,185 24.6 12.0 9.2 % chg (qoq) (0.7) 0.2 (70)bp (9.5) (0.7) (3.1) (81)bp 0bp 0bp 1QFY13 113,896 158,152 72.0 9,899 28,092 37,990 24.0 12.3 9.9 % chg (yoy) 12.4 11.5 59bp 6.6 11.4 10.1 (28)bp (25)bp (74)bp

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

Business growth moderate; NIM higher by 8bp qoq

The business growth for the bank was moderate with advances growing by 12.4% yoy and deposits growing by 11.5% yoy. The growth in advances was driven by healthy growth in retail book which grew by 22.1% yoy. The Management targets

to achieve a loan growth of 13% for FY2014.

On the deposits front, growth was lower at 11.5% yoy mostly due to shedding of high cost bulk deposits (now stand at 17.7% of the overall deposits as against 20.3% in 4QFY2013). CASA deposits too grew at a moderate pace of 10.1%

yoy, with savings deposits growing by 11.4% yoy and current account deposits growing by 6.6% yoy. CASA ratio declined 81bp qoq and 28bp yoy to 23.7%.
Sequentially, cost of deposits declined marginally by 8bp to 7.7% on account of stable CASA ratio and shedding of high cost bulk deposits. Yield on advances for the bank increased by 5bp to 12.0%. Consequently, the NIM for the bank improved 8bp qoq to 2.9%.

August 6, 2013

Oriental Bank of Commerce | 1QFY2014 Result Update

Exhibit 4: Business growth moderate

Adv. yoy chg (%) 20.0 15.0 72.0 10.0 5.0 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
Source: Company, Angel Research

Exhibit 5: CASA ratio declines sequentially

CDR (%, RHS) 74.0 72.6 26.0 24.5 72.0 23.0 21.5 70.0 20.0 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
Source: Company, Angel Research

Dep. yoy chg (%) 73.4 73.3

CASA ratio
15.9 12.5 15.6

CASA yoy growth (%, RHS)

14.8 10.1

20.0 15.0 10.0 5.0 -

71.8

16.0 9.4

12.7 9.8

11.7 7.9

15.2 12.8

12.4 11.5

24.0

24.1

23.9

24.6

Exhibit 6: Lower CoD due to shedding off of bulk deposits

8.00 7.98 7.93 7.80 7.78 7.70

Exhibit 7: NIM improves 8bp qoq

(%) 3.00 2.79 2.75 2.79 2.84 2.82 2.90

7.50 2.50

7.00 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14

Source: Company, Angel Research

2.25 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14

Source: Company, Angel Research

Subdued performance on non-interest income (excl. treasury) front

During the quarter, the banks non-interest income (excluding treasury) registered a decline of 21.2% yoy to `332cr. The performance on the CEB front was moderate, with CEB income increasing by 13.5% yoy to `193cr. The treasury income came in strong at `206cr compared to a `13cr loss in 1QFY2013, thereby aiding strong growth of 31.7% yoy in overall other income.

Slippages remain high; however, better recoveries and upgrades performance results in moderate increase in NPA levels
During the quarter, the bank continued to face asset quality pressure, as slippages remained high at `762cr (annualized slippage rate of 2.4%) as compared to `1,040 in 4QFY2013 and `707cr in 1QFY2013. Performance on recoveries and upgrades for the bank came in healthy at `385cr for the quarter as compared to `249cr for 4QFY2013. Going ahead, the bank expects slippages of ~`750-800cr per quarter for the remaining quarters of FY2014. Despite high slippages, better recoveries and upgrades performance aided the bank to limit the increase in Gross and Net NPA levels to 2.8% and 1.2% qoq, respectively. Gross NPA stood at 3.4% (3.2% for 4QFY2013), while

August 6, 2013

23.7

Oriental Bank of Commerce | 1QFY2014 Result Update

the net NPA for the bank remained flat at 2.3%. The PCR (incl. technical write-offs) for the bank increased by 88bp qoq to 63.9%. During the quarter, the bank restructured advances worth `419cr, thereby taking its total outstanding restructuring book to `10,268cr. The restructuring pipeline for the bank is `1,400cr for the next quarter. Exhibit 8: NPA ratios trend
Gross NPAs (%) 3.0 2.5 2.0 1.5 1.0 64.4 64.5 63.6 63.0 Net NPAs (%) PCR (%, RHS) 70.0 63.9 65.0 60.0 55.0

Exhibit 9: Slippages remain high

4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.7 1.0 0.7 0.7 Slippages (%) Credit cost (%, RHS) 1.0 1.2 1.0 0.8 0.6 0.4

3.0 2.1

2.9 2.0

3.0 2.1

3.2 2.3

3.4 2.3

2.5

2.3

2.9

3.7

1QFY13 2QFY13 3QFY13 4QFY13 1QFY14

50.0

2.4

0.5

0.5 -

0.2 -

1QFY13

2QFY13

3QFY13

4QFY13

1QFY14

Source: Company, Angel Research; Note: PCR incl. technical write-offs

Source: Company, Angel Research

Exhibit 10: Opex trends

Staff Exp (` cr) Other opex (` cr) Staff Exp (yoy gr.)-RHS

Exhibit 11: Cost ratios trends

70.0 44.0 43.0 42.0 41.0 40.0 39.0 41.6 1QFY13 41.1 2QFY13 41.5 3QFY13 43.5 4QFY13 41.0 1QFY14 1.4 1.4 1.4 CIR (%) Opex to average assets (%, RHS) 1.5 1.5 1.6 1.5 1.5 1.4 1.4 1.3

700

286

600

306

262

500 400 300 200

276

265

50.0 30.0 10.0

17.7

31.7 7.5

11.9

19.7

376

366

391

443

100 -

450

(10.0) (30.0)

1QFY13

2QFY13

3QFY13

4QFY13

1QFY14

Source: Company, Angel Research

Source: Company, Angel Research

Investment concerns
Modest CASA franchise and fee income
The banks relatively higher presence in metro and urban areas, compared to other PSBs, exposes it to increased competition, leading to lower CASA ratio. As a result, it is relatively more exposed to NIM pressures on account of its CASA ratio being one of the lowest amongst peers (23.7% as of 1QFY2014). The banks fee income, at 0.8% of average assets in FY2013, is also on the lower side.

August 6, 2013

Oriental Bank of Commerce | 1QFY2014 Result Update

Outlook and valuation

The bank has been witnessing asset quality pressures on its loan book lately. We remain wary of the incremental asset quality and margin concerns for the bank, as we take into consideration its high exposure to stressed sectors, its predominantly wholesale based funding profile and recent macro developments amidst an overall weak economic environment. Overall, we have a cautious view on the sector, with a positive bias towards more retail-oriented banks, on both assets as well as on liabilities. Hence, we recommend a Neutral rating 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 FY2014 15.0 11.0 24.5 2.6 (13.1) 10.0 7.5 2.5 66.0 FY2015 15.0 13.0 24.4 2.7 4.7 7.5 7.5 2.6 67.5

Revised estimates FY2014 13.0 11.0 24.5 2.6 (4.4) 15.0 15.0 2.8 62.5 FY2015 15.0 13.0 24.4 2.5 (0.1) 7.5 7.5 2.6 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
Source: Angel Research

FY2014 Earlier Revised Earlier Var. (%) estimates estimates estimates

5,351 1,439 6,790 2,904 3,885 1,690 2,195 571 1,625 5,336 1,581 6,918 3,065 3,853 1,790 2,063 701 1,362 (0.3) 9.9 1.9 5.5 (0.8) 5.9 (6.0) 22.8 (16.2) 6,170 1,506 7,676 3,122 4,553 1,801 2,752 936 1,817

FY2015 Revised estimates

5,878 1,580 7,459 3,295 4,164 1,843 2,321 789 1,532

Var. (%)
(4.7) 4.9 (2.8) 5.5 (8.6) 2.3 (15.7) (15.7) (15.7)

August 6, 2013

Oriental Bank of Commerce | 1QFY2014 Result Update

Exhibit 14: P/ABV band

Price (`) 900 800 700 600 500 400 300 200 100 0
Dec-06 Dec-08 Dec-10 Aug-07 Aug-09 Aug-11 Dec-12 Apr-06 Apr-08 Apr-10 Apr-12 Aug-13

0.4x

0.7x

1x

1.3x

1.6x

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 Neutral Neutral Neutral Neutral Neutral Neutral CMP (`) 1,090 338 608 866 20 274 67 57 488 166 40 239 54 268 45 57 70 39 1,063 137 521 1,641 75 54 113 34 36 Tgt. price (`) 1,255 745 1,038 51 50 Upside (%) 15 23 20 (10) (8) FY2014E P/ABV (x) 1.2 0.8 2.9 1.2 0.8 1.2 0.3 0.4 0.6 0.4 0.5 0.4 0.5 0.3 0.3 0.3 0.3 0.3 0.8 0.3 0.5 0.9 0.4 0.5 0.4 0.3 0.4 FY2014E Tgt P/ABV (x) 1.4 3.5 1.5 0.4 0.5 FY2014E P/E (x) 6.9 6.5 13.5 9.0 4.8 5.5 2.2 3.4 3.9 2.7 3.4 4.0 3.4 2.7 2.1 2.6 2.1 2.5 5.2 2.6 3.2 5.8 3.2 3.5 2.8 1.7 4.1 FY2012-14E EPS CAGR (%) 19.1 2.9 26.3 15.8 5.7 16.9 12.6 (15.1) 8.3 16.2 5.4 (3.4) 40.1 2.3 (3.3) 25.1 (4.2) 57.5 (3.5) 7.4 10.8 17.5 (16.0) 66.4 6.2 54.6 (0.4) FY2014E RoA (%) 1.6 1.0 1.9 1.6 0.9 1.3 0.6 0.5 0.8 0.7 0.5 0.6 0.5 0.7 0.6 0.8 0.8 0.5 1.3 0.6 1.0 1.0 0.6 0.6 0.6 0.6 0.4 FY2014E RoE (%) 18.1 12.3 22.8 15.4 16.2 22.8 12.4 10.0 14.2 13.9 14.1 10.4 12.8 13.5 13.2 13.3 12.4 10.5 16.3 11.1 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 6, 2013

Oriental Bank of Commerce | 1QFY2014 Result Update

Company Background
Oriental Bank of Commerce is a mid-sized PSU bank with a balance sheet size of ~`2.0 lakhcr. The bank's branches are mainly concentrated in the northern states (~60%), with majority being in the state of Punjab (~20%). The bank, unlike most other PSU banks, has more than half of its branches located in the urban and metropolitan areas (~55%).

August 6, 2013

Oriental Bank of Commerce | 1QFY2014 Result Update

Income statement (standalone)

Y/E March (` cr) Net Interest Income - 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 (%) Reported PAT - YoY Growth (%) FY09 FY10 FY11 FY12 FY13 FY14E FY15E

1,997 18.7 1,071 70.7 3,068 32.8 1,383 28.1 1,685 37.0 526 (1748.9) 1,159 (8.1) 254 21.9 905 7.6 905 156.3

2,907 45.6 1,200 12.0 4,107 33.9 1,686 21.9 2,421 43.7 818 55.6 1,604 38.3 469 29.3 1,134 25.3 1,134 25.3

4,178 43.7 960 (20.0) 5,138 25.1 1,892 12.2 3,245 34.0 1,208 47.8 2,037 27.0 534 26.2 1,503 32.5 1,503 32.5

4,216 0.9 1,240 29.2 5,456 6.2 2,315 22.4 3,141 (3.2) 1,715 41.9 1,426 (30.0) 279 19.5 1,147 (23.7) 1,147 (23.7)

4,701 11.5 1,655 33.4 6,356 16.5 2,665 15.1 3,691 17.5 2,155 25.6 1,536 7.7 208 13.5 1,328 15.8 1,328 15.8

5,336 13.5 1,581 (4.4) 6,918 8.8 3,065 15.0 3,853 4.4 1,790 (16.9) 2,063 34.3 701 34.0 1,362 2.5 1,362 2.5

5,878 10.2 1,580 (0.1) 7,459 7.8 3,295 7.5 4,164 8.1 1,843 3.0 2,321 12.5 789 34.0 1,532 12.5 1,532 12.5

Balance sheet (standalone)

Y/E March (` cr) Share Capital 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 (%)
FY09 FY10 FY11 FY12 FY13 FY14E FY15E

251 7,153 26.3 722 2,250 3,838 6,880 5,345 28,489 68,500 25.5 1,384 1,984 24.1

251 7,987 22.3 2,337 2,550 4,048 8,087 6,513 35,785 83,489 21.9 1,394 2,162 22.1

292 10,805 15.6 2,589 3,050 5,553 9,515 2,103 49,545 14.9 1,398 2,874 17.4

292 11,651 12.2 3,059 2,200 4,368 8,462 265 52,101 16.8 1,421 3,308 10.0

292 12,484 12.8 4,454 3,225 4,345 8,172 418 58,555 15.2 1,227 3,370 13.0

292 13,555 11.0 5,115 3,144 5,024 8,786 3,336 59,481 13.0 1,319 3,735 10.8

292 14,746 13.0 5,760 3,066 5,937 9,928 3,756 63,521 15.0 1,441 4,206 12.6

98,369 120,258 139,054 155,965 175,898 195,246 220,628

112,583 137,431 161,343 177,535 200,697 222,376 250,429

95,908 111,978 128,955 145,719 167,577

112,583 137,431 161,343 177,535 200,697 222,376 250,429

August 6, 2013

Oriental Bank of Commerce | 1QFY2014 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 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 FY09 FY10 FY11 FY12 FY13 FY14E FY15E

2.0 45.1 0.9 14.8 23.7 69.6 12.0 8.4 1.5 0.6 0.9 0.2 58.2 36.1 250.4 7.3 3.8 0.5 5.3 2.0 0.5 1.4 0.5 1.9 0.6 2.5 1.4 1.1 0.2 0.9 16.6 14.8

2.4 41.1 0.9 16.5 25.0 69.4 12.5 9.3 1.7 0.9 1.6 0.4 76.7 45.3 292.2 9.1 3.0 0.5 6.6 2.3 0.7 1.7 0.3 2.0 0.6 2.6 1.3 1.3 0.4 0.9 18.2 16.5

2.9 36.8 1.0 17.1 24.6 69.0 14.2 11.2 2.0 1.0 1.8 0.6 76.8 51.5 350.0 10.4 2.7 0.4 7.6 2.8 0.8 2.0 0.1 2.0 0.6 2.6 1.3 1.4 0.4 1.0 17.0 17.1

2.6 42.4 0.7 10.8 24.1 71.8 12.7 10.1 3.2 2.2 4.0 0.6 61.5 39.3 350.4 7.9 3.5 0.4 5.8 2.5 1.0 1.5 0.1 1.6 0.6 2.2 1.4 0.8 0.2 0.7 15.9 10.8

2.5 41.9 0.7 11.5 24.6 73.3 12.0 9.2 3.2 2.3 2.8 0.8 63.0 45.5 382.4 9.2 3.0 0.4 6.7 2.5 1.1 1.3 0.1 1.4 0.8 2.2 1.4 0.8 0.1 0.7 16.3 11.5

2.6 44.3 0.6 10.8 24.5 74.6 11.5 9.0 4.2 2.6 2.8 0.6 62.5 46.7 408.5 8.5 2.9 0.3 6.2 2.5 0.8 1.7 0.1 1.8 0.6 2.4 1.4 1.0 0.3 0.6 16.7 10.8

2.5 44.2 0.6 11.1 24.4 76.0 10.9 8.6 4.9 2.5 2.6 0.6 65.0 52.5 451.5 10.0 2.6 0.3 7.3 2.5 0.8 1.7 0.1 1.8 0.6 2.4 1.4 1.0 0.3 0.6 17.2 11.1

August 6, 2013

10

Oriental Bank of Commerce | 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

Oriental Bank of Commerce No No No No

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

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 6, 2013

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