Kotak Mahindra Bank

Nifty Series
Key Triggers - One of the best NIMs in the industry - Improving Asset Quality - Best placed to benefit out of capital market boom

CMP: 427.25
March 11, 2011
3 month stock view vis-à-vis Nifty Bankex Expected price range – 3 Months Post Breakout Levels Support Resistance Rs.350 Rs.498 Performer Outperformer Rs.382-Rs.441

Key Risks
- Banking business now getting focus, competition intensifying - Pressure on Margins - Too dependent on capital markets Company Background: Established in 1985, the Kotak Mahindra group has been one of India's most reputed financial conglomerates. In February 2003, Kotak Mahindra Finance Ltd, the group's flagship company was given the license to carry on banking business by the Reserve Bank of India (RBI). This approval created banking history since Kotak Mahindra Finance Ltd. is the first non-banking finance company in India to convert itself in to a bank as Kotak Mahindra Bank Ltd. Today, it is one of the fastest growing bank and among the most admired financial institutions in India. Kotak Mahindra Bank has over 245 branches and a customer base of over 8 lakhs. Spread all over India, not just in the metros but in Tier II cities and rural India as well, it is redefining the reach and power of banking. The bank offers personal finance solutions of every kind from savings accounts to credit cards, distribution of mutual funds to life insurance products. Kotak Mahindra Bank offers transaction banking, operates lending verticals, manages IPOs and provides working capital loans. Kotak Bank has one of the largest and most respected Wealth Management teams in India, providing the widest range of solutions to high net worth individuals, entrepreneurs, business families and employed professionals. The bank offers several value added services to customers including netcards, best compliments cards, Les Concierges, bill payments, home banking services, mutual funds on net, electronic fund transfer on net, mutual fund on phone and other investment platforms. The bank’s experience has been that different customers partake these at different magnitude, depending on their comfort for risk appetite and technology friendliness. The bank has arrangements with UTI Bank and HDFC Bank under which its customers can use s everal hundreds of ATMs of these banks across the city. There is a minor cost involved in the service. But the arrangement has brought in savings for the bank by way of infrastructure costs. The bank is one of the faster growing ones in the country. It is amongst the top five private banks in India. Though the bank is relatively young as compared to its peers, the group to which the bank belongs is a pioneer in the finance business. Assets managed/ advised by the Group as on December 31, 2010 was Rs. 510 b n (December 31, 2009 Rs.524 bn; September 30, 2010 Rs.497 bn;March 31, 2010 Rs.452 bn). The group has a network of close to 2,000 branches and franchises across the country servicing close to 8.3 mn customer accounts. Key Promoter Mr. Uday S. Kotak Mr. Uday Kotak is the Executive Vice-Chairman and Managing Director of the Bank, and its principal founder and promoter. Mr. Kotak is an alumnus of Jamnalal Bajaj Institute of Management Studies. In 1985, when he was still in his early twenties, Mr. Kotak thought of setting up a bank when private Indian banks were not even seen in the game. First Kotak Capital Management Finance Ltd (which later became Kotak Mahindra Finance Ltd), and then with Kotak Mahindra Finance Ltd, Kotak became the first non-banking finance company in India's corporate history to be converted into a bank. Over the years, Kotak Mahindra Group grew into several areas like stock broking and investment banking to car finance, life insurance and mutual funds. Among the many awards to Mr. Kotak's credit are the CNBC TV18 Innovator of the Year Award in 2006 and the Ernst & Young Entrepreneur of the Year Award in 2003. He was featured as one of the Global Leaders for Tomorrow at the World Economic Forum's annual meet at Davos in 1996.

Kotak Mahindra Bank

Kotak Mah Investments Ltd

Kotak Mahindra Old Mutual Life Insurance

Kotak Kotak Mahindra Kotak Mah Kotak Mahindra Securities Capital Company International Prime Ltd

Kotak Mahindra AMC

Kotak Kotak Private Equity Trustee Group Co Ltd

The Bank owns 100% stake in all subsidiaries (except Kotak Mahindra Old Mutual Life, where it holds 74% stake). Apart from the above, Kotak Mah UK Ltd, Kotak Mahindra Inc, Kotak Investment Advisors Ltd, Kotak Mahindra Trusteeship Services, Kotak Forex Brokerage, Kotak Mahindra Pension Fund, Kotak Mah Financial Services Ltd and Global Investment Opp Fund are also its 100% subsidiaries.

Retail Research


The investment focus here is on development projects and enterprise level investments.56 100.833 per share (FV Rs.97 6. Kotak International Business: Kotak International Business specializes in providing a range of services to overseas customers seeking to invest in India. an established brand and quality management.00 % Holding as on 31/12/2009 48. residential townships.56 4. strategists and fund-raisers. traditional insurance policies and gratuity group plans to credit-term plans for businesses. shopping centres. industrial real estate. asset management. As these savings get converted into investments (organic or inorganic). KMB is in a good spot to benefit from the buoyancy in the sector. For institutions and high net worth individuals outside India. Kotak Mahindra Asset Management Company Ltd: Kotak Mahindra Asset Management Company offers a complete bouquet of asset management products and services that are designed to suit the diverse risk return profiles of each and every type of investor. which would further drive economic activity. retail.03 6.79 25. Also on offer are inventory funding and infrastructure funding to car dealers with strategic arrangements via various car manufacturers in India as their preferred financier. rising disposable incomes and changing mindset of people in favor of consumption would be the key drivers of GDP growth. Kotak Securities operations include stock broking and distribution of various financial products including private and secondary placement of debt.Some of the other interests of the group apart from banking: Kotak Mahindra Old Mutual Life Insurance Ltd: A 74:26 joint venture between Kotak Mahindra Bank Ltd and Old Mutual. Kotak International Business offers asset management through a range of offshore funds with specific advisory and discretionary investment management services.10) to Sumitomo Mitsui Banking Corporation (Source: Capitaline Database) Retail Research 2 . Kotak Mahindra Capital Company: Kotak Investment Banking (KMCC) is a full-service investment bank in India offering a wide suite of capital market and advisory solutions to leading domestic and multinational corporations. Corporate savings have also increased significantly in the recent past.17 25. and proprietary investments. life insurance.93 4. What differentiates KPEG is not merely funding companies. financial institutions and government companies.00 % Holding as on 30/06/2010 48. both in real estate intensive businesses. Shareholding Pattern Shareholding Pattern Promoter FII Other Institutions Public and Non Institutions Total Investment Rationale: Well placed to benefit out of economic growth India’s macro economic indicators portend supernormal growth in financial services.23 100. economic expansion would receive further impetus. KMAMC and Kotak Mahindra Bank are the sponsors of Kotak Mahindra Pension Fund Ltd. Kotak Securities Ltd: Kotak Securities is one of the largest broking houses in India with a wide geographical reach.61 23. which has been appointed as one of six fund managers to manage pension funds under the New Pension Scheme (NPS).99 5.78 18. Structured Finance services and Infrastructure Advisory & Fund Mobilization.00 % Holding as on 31/03/2010 48.27 28. Restructuring and Recapitalization services. The savings rate in India has been increasing since independence and has crossed 33. advisors. IT parks. multi -utility vehicles and pre-owned cars.00 The Bank allotted 16400000 Preferential Shares on 11/08/2010 at Rs. Kotak Life Insurance offers a wide choice of life insurance products such as unit-linked plans.23 28. % Holding as on 31/12/2010 45. banks.98 18.22 22. Private Equity Advisory. Kotak Realty Fund: Kotak Realty Fund deals with equity investments covering sectors such as hotels.47 100.84 24. With a proven track record of helping build companies.7% in FY10. KPEG also offers expertise with a combination of equity capital.02 100. investment banking. The savings rate has accelerated significantly over last 6-8 years in tandem with stronger growth in GDP. Kotak Life Insurance aims to bring about a change in the mindset of today's informed insurance customer. Higher GDP growth and increasing savings rate would lead to higher investible surplus.96 100. driven by accelerated growth in manufacturing and services. India’s GDP would double to US$2t over the next six years. Changing demographics in favor of a younger population in India. health care. but also having a close involvement in their growth as board members. Kotak Mahindra Bank (KMB) together with its subsidiaries has a presence across financial services – lending. going forward. Kotak Mahindra Prime Ltd: Kotak Mahindra Prime Ltd is among India's largest dedicated passenger vehicle finance companies. M&A Advisory. With the promise of complete financial independence. Its services encompass Equity & Debt Capital Markets. education and property management. equity and mutual funds. strategic support and value added services. broking.00 % Holding as on 30/09/2010 45. KMPL offers loans for the entire range of passenger cars. Kotak Private Equity Group: Kotak Private Equity Group helps nurture emerging businesses and mid-size enterprises to evolve into tomorrow's industry leaders.39 19. Given its integrated business model.

Most of India’s household savings is locked in bank deposits and government securities. NIM% 6. mutual funds and equity remains dismal. the penetration of insurance.4 5. An increasing proportion of secured loans and a rise in the cost of funds are leading to moderation in margins. regulations become simplified.2 6 5. which provides it significant business synergies. we believe that insurance.8 5. The fact that it was able to withstand the global turmoil and still report stronger NIMs is a witness to its impressive capability to compete in the Indian banking sector. Though comparatively young. However the same has seen a marginal dip in FY11 though the overall NIMs are quite healthy.6 5. mutual funds and equities would gain traction. Despite faster growth over the last couple of years.4%. Though this may seem like a fall from the current levels. the bank has performed exceedingly well in order to achieve such strong NIMs. The NIMs for FY10 stood at 6.2 5 FY07 FY08 FY09 FY10 Q1FY11 Q2FY11 Q3FY11 3 Retail Research . the NIMs above the 5%% levels would still be a very healthy number when compared to the industry. While strong corporate relationships help it to gain access to high networth individual (HNI) clients. The number of branches at the end of December 2010 for the bank and the group stood as follows: Business Banking Securities Life Insurance Mutual Fund & Others Total No of Branches Branches 298 1358 203 140 1999 290 270 250 230 210 190 170 FY08 FY09 FY10 9MFY11 One of the best NIMs in the industry KMB has been able to improve its NIM over the past years consistently and earns the best NIMs in the whole industry.4 6. and marketing efforts by financial services companies intensify. The bank has been in operation since the past eight years only. The group with its varied experience and footprints across segments supports the bank in its total business. As financial literacy improves . the influence that it has amongst a large base of affluent retail clients strengthens its corporate relationships. The bank is looking to maintain its NIM above the 5% levels going ahead. The bank has been able to increase its presence across the nation rapidly. KMB has a strong franchise in both the retail and corporate segments.3% as against 6% in FY09 and the same for Q3FY11 stood at 5.

The Net NPA% stood at 0.00 FY07 FY08 Gross NPA FY09 Net NPA FY10 GNPA% 9MFY11 NNPA% 5.05 crs at the end of FY10.00 400.00 0. The group’s scale and reach. The improving performance on asset quality was due to a fall in incremental slippages and higher recoveries and upgrades. managed to reduce the Net NPAs on both absolute and percentage basis.00 600. There has been an improvement in the quality of assets over the past few years for the bank.62% while the Net NPAs stood at 1.00 100. given its established relationships and synergies arising out of its IB and asset management businesses.73% of the net assets at the end of FY10.00 Wealth management business – a key focus KMB has a wealth management unit within its elf. Loan Book of the bank set to grow The advances of the banks have grown decently over the past few years.95% in Q2FY11. This is despite the immense competition in the market for the bank especially in the form of PSU banks that may lend for comparatively cheaper rates. coupled with a strong brand has enabled the bank to scale up its wealth management unit. It is present in 14 cities. It reported a Gross NPA of Rs 767. India have more 400. Asset Quality 900.00 2.53% as against 2.24 crs for FY10.00 500.81% in Q3FY11 as against 0. The Gross NPAs dropped both on an absolute and percentage basis. which focuses on HNIs. According to NCAER. Gross NPAs as a percentage of the total gross assets stood at 3.01 crs in Q2FY11. With strong economic prospects forecasted.Improving asset quality The bank has managed to report better asset quality at the end of FY10.00 300. It fell from Rs 751.50 2. The Net NPAs stood at Rs 235. The Gross and Net NPA % after peaking in FY09 has begun to fall sharply. It stood at Rs 28884.50 3.00 200. Wealth Management offers a huge and highly profitable opportunity and very few Indian banks are currently focusing on this segment. The bank though increased its Gross NPAs on an absolute and percentage basis for FY10.00 3.00 4. Retail Research 4 . KMB could continue to remain a dominant player in this business. the asset quality further strengthened.00 800. The advances of the bank have grown steadily over the past few quarters for the bank especially since Q1FY11.000 households with investible assets of over Rs10m each. It is currently the wealth manager/advisor to over 3. By the end of 9MFY11.28 crs in Q3FYY11 as against Rs 253. with about 110 relationship managers.8 crs at the end of 9MFY11 as compared to Rs 20775.700 families and around 30% of the top-300 wealthy families in India. The advances of the bank are set to grow in the coming years as the demand for funds have increased over the recent past.00 1.33 crs while the Net NPAs were Rs 360.00 700.00 0.20 crs in Q3FY11 while the Gross NPA% stood at 2.78% in Q2FY11.14 crs in Q2FY11 to Rs 744.50 0. The Net NPAs also behaved in the similar fashion.50 4. we believe that wealth management should grow at a much stronger pace.50 1.

6 6476. Personal Loans.50 40096.90 Q4FY10 3693.60 3027.60 7194.30 26506.30 3328.80 Q1FY11 4030.2 1147.80 13375.20 Q4FY10 3693.60 13935.8 26506.1 1169.90 14286.1 1490.60 Q3FY10 3424.3 9883.6 8324.30 28884.80 11594.40 3247.9 2924.70 2924.30 11038.7 4020.4 1441.30 Q2FY11 4536. CV and CE segment has however seen an increase in advances consistently and the bank is keen to increase its exposure in this segment going ahead.2 3328.50 37514.90 4074.0 5983.4 1818.5 5246.00 1354.30 3087. Agriculture finance.6 Q1FY11 4030. Retail Research 5 .3 8476.20 1159.50 1492. over the past one-year reduced its exposure to the personal loans and other segments while it has increased its exposure in the corporate banking segment to a decent extent.60 96.90 3622. Advances Split: Rs Crs .50 6626.30 8934.10 7064.50 5983.6 Q3FY11 15446.20 7846.1 2497.60 9219.80 29337.80 4765.00 3088.4 6626.20 Q3FY10 3424.20 40441.5 28884.4 1545.80 3752.8 10407.0 Q2FY11 14619.80 62. It can be observed here that the bank.60 23188.40 5299.10 1226.0 4711.00 3844.90 11809.1 3752.6 1221.7 21405.6 Q1FY11 13604.5 1315.Consolidated Commercial vehicles & Construction equipments Auto Loans Mortgage loans Personal loans Agriculture Finance Corporate Banking Others Total Advances The above table shows the advances split of the bank over the past few quarters.20 1192.60 5885.10 Advances – as per segmental classification (Standalone) Retail Corporate Others Total Advances Investment / Treasury Assets Total Advances and Investments Advances Split: Rs Crs .8 Q2FY11 4536.70 43171.Advances 35000 30000 25000 20000 15000 10000 5000 0 Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10 Q2FY10 Q3FY10 Q4FY10 Q1FY11 Q2FY11 Q3FY11 The loan book of the bank consists of lending to the corporate banking segment.40 9487.00 29724.00 38801. and other advances. CVs and CEs.60 15613. Mortgage Loans.60 7993.40 2497.1 23188.4 1493.1 1628.80 32978.standalone CVs and CEs Personal Loans Mortgage Loans Agriculture Finance Corporate Banking Others Total Advances Q3FY11 5058.50 6541.6 3088.40 77.2 20775.60 Q3FY11 5058. The capital adequacy ratio is comfortable (much above the 9% minimum) and the Bank need not raise equity funds in a hurry to increase its lendings for some more quarters.

With more branches to come up in the coming years. The same stood at 178 branches a couple of years ago. the total deposits stood including CODs stood at Rs 28288 crs as against Rs 22186 crs in Q3FY10 and Rs 28287 crs in Q2FY11. This is without considering the certificate of deposits.9% in Q2FY11 mainly due to the flat growth witnessed in deposits. The total deposits at the end of FY10 stood at Rs 19500 crs as against Rs 13877 crs at the end of FY09. The general trend observed within the Indian banks in terms of their CASA is in the range of 30% to 45% of the total deposits. At the end of 9MFY11. Retail Research 6 . The higher proportion of the CASA in the overall deposits has helped the bank contain its cost of deposits and hence reduce the overall interest expenses. For Q3FY11. The bank has been quite aggressive in the previous fiscal year in terms of its overall branch network. The proportion of CASA to the total deposits becomes important in controlling the expenses liabilities of any given bank. the bank could witness further increase in the CASA ratio in the next couple of years. In Q3FY11. the CASA% stood at 28% as against 31. Deposits and CASA% 30000 25000 20000 15000 10000 5000 0 Q1FY10 Q2FY10 Q3FY10 Q4FY10 Q1FY11 Q2FY11 Q3FY11 32 31 30 29 28 27 26 25 Total Deposits CASA% The deposits of KMB have been growing handsomely over the past years. The bank is looking to take the total branches to 320 by the end of FY11 and to 500 branches by the end of FY12. The total branch network of the bank stood at 249 branches at the end of FY10. Even though the bank has been able to maintain a good momentum in the deposit growth over the past few years. The CASA as a percentage of total deposits stood at 31% at the end of FY10. the branch network of the bank stood at 298.Capital Adequacy Ratio 24 23 22 21 20 19 18 17 FY08 FY09 Standalone CAR% FY10 Group CAR% 9MFY11 Strong deposit franchise with growing CASA deposits set to continue fuelling the growth of KMB The current accounts and savings account ratio (CASA) helps determine the cost of deposits of any particular bank. the current situation and the industry outlook has created pressure in the deposit growth of the bank. It can be observed here that no significant increase was seen in the deposits during the third quarter as the entire banking industry in the country faced a similar problem of depleting deposits during the quarter. The CASA content in the total deposits have also been growing constantly hence reducing the expense liability of the bank.

13 13. Minority Int. Also the income of the company continued to fall during the three quarters of FY11.74 36. while some of its group companies have been in for years now.80 18. Kotak Securities 260.44 -0.03 0.0 Kotak SecuritiesStock Broking 100% 145.34 39.40 Q2FY11 194. Kotak Mahindra Capital Company.65 66.85 30.14 -17.78 21.23% as on December 31. 2010. Net NPA of KMP as on December 31.9 Bn as against Rs 34. This will add strength to the consolidated figures of KMB going ahead.00 145.1 Bn in 9MFY10. and Other Adj.5 substantial fall in the bottomline of the company.1 crs as against Rs 650.57 Q3FY10 142. Car 166.64 7.26 10.49 1307.13 -0. Company Wise PAT Company – Rs Crs Kotak Mahindra Bank Kotak Mahindra Prime Kotak Securities Kotak Mah Capital Company Kotak Mahindra Old Mutual Life Insurance Kotak Mahindra AMC and Trustee Company International Subsidiaries Kotak Investment Advisors Kotak Mahindra Investments Others Total Consolidated PAT Affiliates.87 93.86 69.45 FY10 561.54 383. The total branch network however reduced to 203 by the end of December 2010 as against 214 branches at 69.000 secondary market customers.4 crs. Prime Other Lending 100% 231. Retail Research 7 .11 166.38 331.46 -7. which led to a 65. The group companies have performed pretty well over the years.85 22. For 9MFY11.01 888.76 7. 2010 stood at Rs 39.70 61.11 356.4 business net NPA ratio stood at 0. PAT (after MI and Adj) Source: Capitaline Q3FY11 187.32 10.83 209. The group companies have been performing well over the last many years (except Kotak Mahindra AMC) and is expected to do well going ahead.1 Kotak Mahindra Asset AMC Management 100% 9.34 364. the total income of the company stood at Rs 568. Kotak Securities.46 6. The key performance of the group companies is expected to continue growing in the coming years.74 7.45 32. Domestic MF Debt rules the asset management book of the company with 45% of the overall assets under management coming from the sector.14 334.7% of total average daily market volumes for 9MFY11. The bank has been formed only few years ago.22 72.44 -2. 2010 was up 40% y-o-y to Rs 10439.62 23.18 1.58 19.80 57.99 -0.66 -0. Kotak Securities has a network of over 1. The key performances of some of the subsidiary companies: Company Business Stake PAT 9MFY11 FY10 Remarks Kotak Mahindra Investment Capital Banking Company 100% 23.20 5.60 107. Kotak Securities.358 offices (own & franchisees) across 448 cities and towns a nd services more than 6.1 accounted for 3.68 46.78 -3.2 crs.8 Kotak Mahindra Old Mutual Life Insurance Life Insurance 74% 30.2 the end of December 2009 The fall in the profits of this company has been quite drastic.52 7.75 34.05 383.44 59.31 13.78 1075.13 26.56 11.11 9MFY11 569.38 49. Kotak Mahindra Prime.84 -0.33.31 895.48 231.37 9MFY10 358.61 7. The total AUM of the company at the end of 9MFY11 stood at Rs 7800 crs as against Rs 5700 crs in 9MFY10.33 51.96 Kotak Mahindra Car Finance.85 Euromoney Real Estate Poll – 2010. as the company had witnessed huge losses in Q2FY11 and Q1FY11.33 22. Kotak Mahindra Life Insurance and Kotak Mahindra AMC amongst others.76 -0.6 crs in 9MFY10. Total advances as on December 31.43 12.46 80.24 8.74 27. one of the most respected brokerage houses in the country is a major contributor towards the success of the group.44 2.41 260.0 Kotak was named Best Investment Bank for Equity Finance in India in the 21.31 -0.10 23.44 1307.53 24.Strong performance of the subsidiary companies KMB’s subsidiaries include.10 1093.00 Kotak Mahindra Asset Management Company – Asset Management The Average AUM of the company at the end of 9MFY11 stood at Rs 29.

The total branch network however reduced to 203 by the end of December 2010 as against 214 branches at the end of December 2009.8 crs in 9MFY10. Branches and Franchisee 1600 1400 1200 1000 800 600 400 200 0 FY08 FY09 FY10 9MFY11 10 0 FY08 877 783 30 20 1113 60 50 40 Avg Daily Volumes (Rs Bn) 1358 53 46 39 33 FY09 FY10 9MFY11 Kotak Mahindra Old Mutual Life Insurance – Life Insurance For 9MFY11. the total income of the company stood at Rs 568.3 15.5 20% 0% FY08 FY09 Individual Group FY10 Renewal 9MFY11 11.1 crs as against Rs 650.6 crs in 9MFY10.8 crs as against Rs 209.4 1.8 5.1 crs as against Rs 24. the company reported a net profit of Rs 30.3 crs in 9MFY10. Adjusted Premium Equivalent 100% 80% 60% 40% 9.0 1.3 10.8 Retail Research 8 .2 1. The total AUM of the company at the end of 9MFY11 stood at Rs 7800 crs as against Rs 5700 crs in 9MFY10.Q3FY11 4% 15% 45% 17% 10% Domestic MF Debt Offshore Funds 9% Domestic MF Equity Insurance Alternate Asset PMS Kotak Securities – Stock Broking For 9MFY11.7 9.9 1.7% of total average daily market volumes for 9MFY11.4 11.Asset Management . Kotak Securities accounted for 3. The PAT for 9MFY11 stood at Rs 145. It clocked average daily volumes of around Rs 4600 crs during 9MFY11 compared to around Rs 4000 crs during 9MFY10.0 5.

A criterion of reciprocity is required for any Indian bank to open an office abroad.70% 14. enabling the SBI to take over eight former state-associate banks as its subsidiaries.2 crs (1. under the current ownership structure.Healthy key ratios of the bank Some of the key financial ratios of the bank have been healthy and impressive at the end of 9MFY11. The banking system in India is significantly different from that of other Asian nations because of the country’s unique geographic.e. the ratio was slightly higher at 53. it has been relatively easy for the public sector banks to re-capitalize. The establishment of RBI as the central bank of the country in 1935 ended the quasi-central banking role of the Imperial Bank of India. Subsequently in 1959.9% 20. and 1980). a bankers’ bank and a banker to the Government. Since 1991.50% 510 401 700 0. In order for the banking industry to serve as an instrument of state policy. urban. metro. KMB reported a CI Ratio of 47. the State Bank of India (“SBI”) was constituted in 1955. balanced regional economic growth.14% 9MFY11 5. resulting in the establishment of joint stock banks.Rs Bn Advances . excluding the acquired stressed assets.80% 19.7% with tier 1 ratio of 16. the sector has been assigned the role of providing support to other economic sectors such as agriculture. size.33% FY09 6. Between about 30 and 35 percent of the population resides in metro and urban cities and the rest is spread in several semi-urban and rural centers.6 18. India has followed the path of growth-led exports rather than the “export led growth” of other Asian economies. and a limited number of semi-urban centers). On the other hand. especially massive branch expansion and attracting more people to the system. FY08 5. as their Government dominated ownership structure has reduced the conflicts of interest that private banks would face.18% FY10 6. the State Bank of India (Subsidiary Bank) Act was passed. it was subjected to various nationalization schemes in different phases (1955. and economic characteristics.84% in FY10 down from 66.20% 18. 14 private banks were nationalized followed by six private banks in 1980.38% of advances) while the net non-performing assets stood at Rs.Rs Bn Net NPA% Industry Scenario Banking Sector in India The evolution of the modern commercial banking industry in India can be traced to 1786 with the establishment of the Bank of Bengal in Calcutta. In 1921.25% of advances).10% 94. a healthy one and much above the minimum requirement of 9% by the RBI. The country’s economic policy framework combines socialistic and capitalistic features with a heavy bias towards public sector investment. In order to serve the economy in general and the rural sector in particular. social. Going ahead if the bank can bring down its cost income ratio further. Bombay and Madras.0% 17.40% 15. The credit deposit ratio of the bank stood at a healthy 87% at the end of FY10. which took on the role of a commercial bank. 1969. The RONW of the bank stood at 15. These features are reflected in the structure.5%.6% in 9MFY11 marginally lower than 16.60% 18.3 10. The Provision Coverage ratio of the bank was healthy at 72% at the end of 9MFY11. and extreme disparities in income. However at the end of 9MFY11. 498. As at March 31. the limited liability concept was introduced in banking. India has a large population and land size.3 crs (2. Three presidency banks were set up in Calcutta. The bank at the end of 9MFY11 reported a CAR of 18.51% Source: Bank Presentation Retail Research 9 . 2010.50% 365 220 406 0. given the increases in non-performing assets (NPAs).Rs Bn Total Assets . the former state-owned and state associate banks. Another impressive ratio of the bank has been the cost to income ratio. The banking system has had to serve the goals of economic policies enunciated in successive five -year development plans. many financial reforms have been introduced substantially transforming the banking industry in India.60% 2.70% 16. the All India Rural Credit Survey Committee recommended the creation of a statepartnered and state sponsored bank taking over the Imperial Bank of India and integrating with it. at the same time. small-scale industries exports.30% 113.40% 452 297 551 1. Consolidated Ratios: Particulars NIM BVPS RONW ROAA Group CAR CAR Standalone Tier 1 CAR Standalone AUM . In 1860. a diverse culture. to attain operational efficiency suitable for modern financial intermediation.30% 2.00% 339 225 402 1. These features have left the Indian banking sector with weaknesses and strengths.20% 2. the three presidency banks were amalgamated to form the Imperial Bank of India. the gross non-performing assets of the Bank stood at Rs. Accordingly.30% 18. the country has a large reservoir of managerial and technologically advanced talents.76% in FY09.5 22.7% 19. In 1969.90% 16. 257.50% 1.67%. and banking activities in the developed commercial centers (i. and diversity of the country’s banking and financial sector.6 15.60% 84. which are marked among its regions. though still healthy. There are high levels of illiteracy among a large percentage of its population but. with emphasis on self-reliance through import substitution. particularly concerning equitable income distribution. A big challenge facing Indian banks is how. banking remained internationally isolated (few Indian banks had presence abroad in international financial centers) because of preoccupations with domestic priorities. Moreover. and the reduction and elimination of private sector monopolies in trade and industry.6% 22.. it could boost the bottomline of the bank significantly.9% in 9MFY10. The banking system’s international isolation was also due to strict branch licensing controls on foreign banks already operating in the country as well as entry restrictions facing new foreign banks. As a result.40% 142.

The banking industry is consolidating. Public sector banks have lost their market share to the more dynamic private sector banks and. the increasing disintermediation and competition for good quality credit could exert some pressure on revenue streams and margins.87 crs as against Rs 444.4%. The profitability ratios of Indian commercial banks are relatively moderate but their core recurring income and profits are on a rising trend. Public sector banks appear marginally less profitable than their private sector counterparts. the reduction in the use of traditional transaction methods has been slower than expected with many banking customers preferring to use the old methods.53 crs as against Rs 2044.4% y-o-y jump in its interest income from Rs 832. the public sector banks.5 crs registering a jump of 21. The net interest income of the group stood at Rs 922. While the onus for this change lies mainly with bank managements. the bank reported a 36. secure transaction channels requires significant investment and therefore gives larger-scale banks a competitive advantage. The trend towards consolidation in the global financial services industry is stimulating the emergence of competitors in the market offering broad ranges of products and services. profitability and non-performing assets (NPAs). growth and value creation in the sector remain limited to a small part of it. as well as by the competitive advantage that foreign-owned banks enjoy due to premium consumer perception and better access to funding. an enabling policy and regulatory framework will also be critical to their success.36 crs as against Rs 888. Despite widespread adoption by both banks and customers of these new transaction methods. the PAT stood at Rs 569. to a lesser extent. helps to ensure such banks sources of relatively cheap and stable funding and provides them with a comfortable liquidity profile.92 crs in Q3FY10. innovation. The PAT of the group stood at Rs 383. are expected to sustain in the 5. The robust deposit franchises of the larger Indian banks and.45 crs in 9MFY10.87 crs as against Rs 142.76 crs in Q3FY10 and Rs 470. growth and value creation. The banking sector in India has become increasingly more competitive in recent years.60 crs in 9MFY10.80 crs in Q3FY11.4% range over FY10-12E. which comprise the Reserve Bank of India (RBI). However. It is likely that the use of 24-hour self-service channels. This is coupled with a shift from mere price competition to competition based on other factors such as innovation. which have also come off 90bps since Q4FY10 to 5. which India aspires to be.71 crs in Q2FY11. The number of customer transactions continues to grow at a considerably higher rate than the growth of the underlying balances or accounts. While the balance sheet of public sector banks maintained their growth momentum. The PAT of the bank at the end of Q3FY11 stood at Rs 187. The cost of banking intermediation in India is higher and bank penetration is far lower than in other markets.41 crs in Q3FY10 to Rs 1135.08% on a q-o-q basis to Rs 571. Recent Performance of the bank – Q3FY11 The operating performance of financing business was strong in 9MFY11 with robust advance growth and consistent decline in NPLs. unlike their global counterparts. mobile phone and voice response units and the sophistication of products sold via such channels will increase. A weak banking structure has been unable to fuel continued growth. management moderated loan growth target to 30% for FY11 (from 35-40% earlier). Ministry of Finance and related government and financial sector regulatory entities. Reported NIMs.48 crs in Q3FY11. internet. particularly for savings accounts. customer service and the range of products and services offered. The sector now compares favorably with banking sectors in the region on metrics like growth.78 crs in Q3FY10 while for 9MFY11 the net interest income on a consolidated basis stood at Rs 2558.70 crs in Q3FY10 to Rs 1653. the private sector banks and foreign banks registered a deceleration in growth rate. there is a trend among the younger portfolio of customers of increased use in system -aided self-service methods.40 crs in 9MFY10. in particular in retail banking. credit cards and simple investments. The interest expenses of the group stood at Rs 730. The scheduled commercial banks in India. Continued local consolidation will most likely be induced by existing economies of scale. to foreign banks. Installing automated.60% y-o-y growth in its interest income from Rs 1184. the net interest income stood at Rs 1623. lower yields and redemption pressure.40 crs in Q3FY11.40 crs in Q3FY10 and for 9MFY11 it stood at Rs 1075. For 9MFY11. as such services become increasingly commonplace. and greater operating efficiency and pricing power. and foreign banks in India appear to be more profitable. The policy makers.The last decade has seen many positive developments in the Indian banking sector. considering the high inflation and rising interest rate environment. Going forward.57 crs as against Rs 331. The growing importance of these channels may reduce the importance of extensive branch networks and result in increased competition from other financial institutions. India’s banking industry must strengthen itself significantly if it has to support the modern and vibrant economy.92 crs in Q3FY11 as against Rs 345. On a standalone basis. broad access to capital. This is reflected in their market valuation.88% y-o-y. However. The net interest income as a result jumped 17. such as ATMs. have made several notable efforts to improve regulation in the sector. the group reported a 39.93 crs in Q3FY11 as against Rs 739.0-5. showed considerable resilience against the backdrop of global financial crisis and its effects on India’s economy.89 crs in Q2FY11. A few banks have established an outstanding track record o f innovation. improved regulations.38 crs in Q3FY10 and Rs 194. in addition to frequently having a more sophisticated product offering. On a consolidated basis. However. Retail Research 10 . Many banks are therefore seeking to reduce the cost of servicing individual transactions to maintain their profit margins. which has harmed the long-term health of their economies.43% on a y-o-y basis and 5. The interest expenses of the bank stood at Rs 563. in particular. both regionally and within individual countries.48 crs as against Rs 358. It may also lower barriers to entry into the market for new competitors such as providers of direct or electronic banking services. Earnings of capital market businesses will continue to reel under pressure due to increased fragmentation. The failure to respond to changing market realities has stunted the development of the financial sector in many developing countries. For 9MFY11.

The loan book has grown at a pace of 25% for the past 2 years and is expected to grow further going ahead with more demands fo r funds arising out of the growing economy. Conclusion Kotak Mahindra Bank is one of the leading private sector banks in the country. the spreads could narrow down thereby putting pres sure on the margins of the bank. but could deteriorate going ahead w ith increasing lending by the bank. It stood at 31% of the total deposits considering the certificate of deposits at the end of FY10 while it stood at 35. If the trend continues and revival is not fast then it could impact the overall business of the bank negatively.4% at the end of Q3FY11. 26% of its PBT in FY10 was derived from capital market activities. Though the bank is comparatively new. The bank has a healthy CAR of 18. It is important that the bank is able to come out of the same trend going forward and improve its NIMs in order to remain competent. Going ahead as the bank is not required to increase its provisions substantially. At the CMP of Rs. The NIMs of the bank stands atop all other banks at 6. Currently the cost income ratio of the bank is healthy but not as good as many other banks hence it needs to improve its cost income ratio further. one of the premium brokerage houses has done exceedingly well for the bank and remains one of the consistent contributors towards the group’s success. the business of the group could get affected. The Cost Income ratio of the bank has been quite impressive as it came down from the levels of 66% a year ago.427.25. the bank quotes at 2. the cost to income ratio of the bank stood at 53. Also the bank has done well in order to achieve a strong provision coverage ratio of 72%. which is above the minimum 70% requirement of RBI. • The bank has reported a fall in NIMs for period ended 31st December 2010. The Credit Deposit ratio of the bank at the end of FY10 stood at a healthy 87%.5% going ahead. This will help the bank increase its overall customer base and spread the network across the country. however there is a huge pres sure on margins for all banks and maintaining it in the aforesaid range could be a bit tough for KMB in the next couple of quarters. It has strong loan book growth and is expected to perform well going ahead. making it extremely competitive in the industry. If the bank is unable to get cheaper borrowing.4%.84% by the end of FY10.Risks and Concerns • The asset quality at the moment is impressive. The different parameters of the bank have been quite impressive for KMB by the end of FY10.6 times its FY12 E Consolidated ABV. The group companies of the bank have also performed quite well over the past few years. Other private sector banks like Axis and ICICI have healthier CASA ratios.33% for FY10 and at 5. The bank boasts of having a fine quality management.4% at the end of Q3FY11.67%. • The cost to income ratio of the bank needs to be maintained at lower levels. • The deposits have taken a beating for most banks in the country over the past couple of quarters and KMB has not been an exception. both public and private banks. At the end of 9MFY11. • The CASA of the bank needs to consistently grow as the business grows as this helps the bank reduce its cost of deposits. • Most of the business of the group is mainly dependent on the capital markets. The bank from the current 300 branches is expected to open another 200 and take the tally to 500 branches in another 12 months period. The bank could look to maintain the NIMs in the range of 5% to 5. The bank is performing well as compared to its peers. to 47. Kotak Securities. It faces stiff competition from peers. The CASA ratio of the bank has also been quite impressive. however over the past few quarters it has not done well due to the lackluster performance of the equity markets. It follows a different model of business (banking and equities). • Intense competition from global and local players in equity markets could pose a major challenge to KMB in maintaining its market share and leadership position. it could see a growth in the deposits and increase in the CASA ratio. Hence in an event of downfall in the capital markets. The management of expenses of the bank has been quite impressive. the Kotak Group is well established in the financial services sector in the country. Retail Research 11 . the profits could see some more growth. The growing Indian economy could help the bank in increasing its loan book as more demand for money is expected in the country going ahead. The bank has performed very well over the past few years. With the bank looking to increase its overall branches. though the dependence on an overall basis is falling gradually.

64 200.39 1126.74 563.93 1526.53 4.58 4290.75 4485.67 38.16 708.08 3883.42 968.81 2.63 0.30 53.23 786.50 279.4165 18.52 4.65 328.34 1667.53 6328.06 6377.35 1491.56 0.60 41.15 2848.38 Q3FY10 832.48 3.21 5.06 84.82 861.06 33.96 0.37 330.21 87.98 FY10 4840.29 543.83 209.0774 144.60 19.09 165.75 39.07 -2.15 2309.67 0.83 345.63 307.88 0.15 17.28 2.18 0.85 1890.28 0.03 25.23 66.93 833.38 347.88 3517.28 209.08 1623.89 3070.19 1540.33 887.75 45.40 265.99 17.46 367.91 225.85 142.32 330.66 38.03 1658.46 61.72 717.66 272.34 129.21 2752.40 36.45 19.71 243.88 11.58 Q3FY10 1184.51 569.10 986.83 15.01 -4.00 0.00 0.47 35.01 235.92 744.10 378.18 136.25 2.26 1154.23 2558.40 106.91 7.95 5.55 -15.34 1300.32 12.65 751.50 2073.69 1014.2833 467.34 47.43 % Chg 14.6491 18.88 336.49 260.12 9MFY11 4418.75 0.27 812.53 0.44 248.25 1.05 470.94 1205.6068 1845.92 198.83 -49.21 21.40 827.19 2555.41 2567.8513 381.3199 -3.20 34.56 23.20 928.89 149.52 6.12 % Chg 29.25 0.66 1156.20 235.54 194.85 Q2FY11 1449.76 1447.29 415.86 528.70 25.10 17.74 272.39 389.00 968.27 1101.89 168.24 1870.13 0.533 -80.71 3512.23 1534.45 -4.88 0.80 1277.93 294.06 131.29 71.39 368.40 878.04 956.25 86.30 -19.Financials Standalone Results Particulars Interest Earned Interest/Discount on Advances Income on Investments Interest on bal with RBI Others Other Income Total Income Interest Expended Employee Expenses Other Operating Expenses Operating Expenses Total Expenditure Net Interest Income Operating Profit before Prov & Cont Prov & Cont PBT Tax PAT Equity CAR .96 18.10 4344.66 0.18 1.31 34.26 32.33 7.98 385.95 12.19 187.55 6577.06 3758.00 1300.67 Q3FY11 1135.43 1108.55 503.24 4141.83 -49.44 % Chg 9MFY11 9MFY10 11.48 314.68 191.26 1.55 0.97 187.76 132.69 Q2FY11 1433.12 -19.6129 0.83 326.01 2.87 % Chg 39.34 5883.88 9.68 956.80 35.4693 -3.26 63.25 6136.76 15.01 2.15 3338.00 0.86 13.45 4.96 1244.24 68.29 1010.00 209.42 1042.92 2374.11 16.70 904.5746 465.16 575.19 1134.05 57.8418 0.40 % Chg 36.03 928.7396 376.87 54.60 0.02 571.02 628.93 31.24 467.26 997.69 17.10 13.18 FY09 4473.05 280.27 21.61 161.67 441.261 358.31 27.60 350.55 640.63 532.26 144.7992 19.61 12 Retail Research .98 -49.80 140.79 Q3FY10 1196.23 9MFY10 3353.06 2.76 986.50 1332.00 811.71 366.61 422.52 2.25 27.99 138.26 83.18 2348.00 0.62 Source: Capitaline % Chg 31.67 Q2FY11 1014.74 61.37 1142.14 138.24 30.66 2751.52 119.3917 118.77 31.84 5.66 356.61 30.43 186.Basel II EPS Gross NPA Net NPA Gross NPA% Net NPA% Return On Assets Segmental Financials Particulars – Rs Crs (Standalone) Segmental Revenue Corporate/Wholesale Banking Treasury and BMU Retail Banking Less: Intersegmental Revenues Add: Unallocable Revenues Total Segment Revenues Segmental PBT Corporate/Wholesale Banking Treasury and BMU Retail Banking Less: Interest Add: Other Income Net PBT Capital Employed Corporate/Wholesale Banking Treasury and BMU Retail Banking Unallocated Net Assets Total Capital Employed Consolidated Results Particulars Interest Earned Interest/Discount on Advances Income on Investments Interest on bal with RBI Others Other Income Q3FY11 1653.84 227.10 -3.48 358.31 486.6959 -3.51 281.09 49.52 68.00 272.49 223.00 6.15 426.9 5.09 43.81 5.43 2.21 1590.31 0.90 1522.7642 17.66 17.77 425.72 42.72 776.15 18.88 9.10 33.71 0.46 3687.64 744.86 3813.78 0.93 0.67 Source: Capitaline Q3FY11 1631.20 -64.1507 347.41 645.14 234.26 58.58 826.43 -4.12 -0.95 0.96 12.86 813.75 9.87 368.24 -7.10 13.54 -31.53 0.70 19.39 -6.14 253.72 2540.43 847.81 39.72 3365.26 281.08 -59.81 0.54 744.22 55.7374 12.70 54.26 34.47 139.66 2.33 1154.74 187.

94 75.39 -1.43 331.96 2.87 396.72 1197.16 1772.97 Source: Capitaline FY10 348.95 1.81 8029.62 990.51 47.79 9.32 1016.18 13885.89 1169.43 1075.21 51.86 8.18 901.78 606.67 2178.17 3662.93 -36.22 992.12 0.10 3.97 2044.51 1300.66 40233.39 2374.42 1766.77 7.69 FY09 4366.30 5507.04 -9.40 347.86 -64.11 2.81 991.07 157.38 0.78 1108.39 1816.54 3.47 730.49 4.38 395.06 21.89 739.27 663.70 274.84 11979.97 147.91 62.94 1860.09 -52.93 1172.88 91.17 9.65 572.59 FY08 3648.77 10108.96 606.42 -96.49 444.59 1309.04 5.95 7869.91 4220.40 4.93 595.66 382.26 470.45 4.96 1283.39 1327.92 91.27 27.11 18.40 1672.57 368.21 4.14 366.60 106.86 21819.03 2145.04 4058.37 2492.51 2558.83 4184.01 901.12 0.44 521.62 1192.33 55114.36 2668.43 156.49 161.19 152.36 18.33 6245.89 1012.92 3885.93 12772.15 14.67 6176.20 5930.72 12.61 FY08 344.76 -57.72 3.69 1.73 -18.52 -395.72 42.92 -4.80 54.02 3.36 368.97 1309.39 FY09 345.95 1144.17 1690.77 1108.67 383.93 2402.74 5.03 12.81 2094.62 -10.27 20.88 0.97 363.64 -4.00 -2.15 1.72 2.Profit on sale of investments Premium on Insurance Business Other income Total Income Interest Expended Employee Expenses Policy Holders expenses Other Operating Expenses Operating Expenses Total Expenditure Net Interest Income Operating Profit before Prov & Cont Prov & Cont PBT Tax PAT before minority interest Less: Minority Interest Add: Share in Profits of Associates Net Profit Equity EPS Gross NPA Net NPA Gross NPA% Net NPA% Return On Assets Consolidated – P&L A/c Particulars Interest Income Interest Expenses Net Interest Income Other Income Total Income Operating Expenses Staff Cost Other Operating Expenses Total Expenditure Operating Profit Depreciation Provisions Profit before Taxes Taxes Profit after Taxes Minority Interest P/L of Associate Company Net Profit after Minority Interest Extra ordinary items Adj.83 2090.03 6.23 13691.48 6.01 3544.23 0.71 1.03 768.70 4.34 2367.96 5367.88 14.85 19.57 7040.43 542.50 -2.19 1121.31 -22.06 -59.81 8199.62 1407.45 377.18 24.21 863.57 4385.02 Source: Capitaline FY10 4601.03 373.92 1149.45 347.49 -17.59 888.87 393.84 1007. In Crs) LIABILITIES Capital Reserves & Surplus Equity Application Money Minority Interest Deposits Borrowings Other Liabitlies Total ASSETS Cash & Bank Balances with RBI & Others 14.45 843.70 4.11 24.86 13821.14 7562.69 13.91 1.36 1307.45 -6.70 12.56 1992.55 922.67 5479.92 -14.72 536.44 652.78 400.30 -45.49 1063.48 1831.89 -24.36 125.93 53.97 1341. Net Profit after Tax Consolidated – Balance Sheet Financial Year (Rs.52 23.05 -12.00 21.20 16.09 40597.53 1690.85 449.11 4485.34 1260.66 1876.53 364.32 331.63 480.60 863.68 2072.11 14.24 568.87 2390.54 -85.76 -1.93 604.70 11363.06 1902.09 -52.92 312.23 58.14 8.02 -42.05 705.93 2405.42 2372.99 5.69 0.97 332.23 0.37 0.46 381.17 1534.75 575.88 9.04 16.86 2828.62 388.02 7755.97 15.38 11.04 -19.00 -2.79 2.12 958.30 387.24 490.14 98.65 7935.20 363.98 1783.64 9.67 3.64 4.65 572.63 64.35 25.43 5.66 1711.84 19.43 22.00 653.15 5.44 652.39 4178.11 363.33 0.08 13 Retail Research .45 2940.59 125.56 15.80 80.31 -22.82 12.20 3685.96 1206.51 1338.72 2.94 726.97 904.05 -16.47 12.60 6.73 142.99 407.70 274.

18 28315.89 811.05 12513.5 FY12E 2749.79 130.26 0.74 0.14 1546.49 223.15 300.63 807.65 5119.97 2335.36 811.08 72.95 0.93 40233.38 40.81 Source: Capitaline FY12E 5084.59 20775.4 2592.26 0.61 1397.21 12.93 5904.87 42.73 29724.51 817.00 125.95 18.33 28711.5 321.74 2233.00 4.00 63.18 213.07 86.68 12569.00 270.38 595.38 20.97 11.00 28.22 9141.14 4191.6 48699.7 17201.02 32.25 3178.31 FY08 1225.8 FY11E 2233.30 0.47 1858.45 2410.88 426.4 3296.50 2869.79 293.20 94.00 114.59 702.99 561.96 106.22 583.44 4.21 95.79 633.99 485.87 FY09 1518.24 325.88 1156.64 2094.78 426.68 306.29 19484.17 9.83 2785. In Crs) LIABILITIES Capital Reserves & Surplus Deposits Borrowings Other Liabitlies Total ASSETS Cash & Bank Balances with RBI & Others Balances at short & call notices Advances Investments Fixed Assets Other assets Total Assets Key Financials and Ratios (Standalone) Particulars Net Interest Income % Growth PBT % Growth PAT % Growth EPS % Growth BV % Growth Adj BV % Growth CASA % % Growth Cost Income Ratio % % Growth Credit Deposit Ratio % FY08 2535.03 1391.28 29.93 276.74 -18.38 -58.54 23.38 350.77 9.34 28711.37 FY10 1858.Profit and Loss A/c Particulars Interest Income Interest Expenses Net Interest Income Other Income Fee based Income Treasury Income Miscellaneous Income Operating Income Operating Expenses Staff Cost Other Operating Expenses Operating Profit Provisions Profit before Taxes Taxes Profit after Taxes Standalone .64 1420.00 104.80 601.00 200.36 1309.15 19.99 210.53 272.03 341.67 3249.97 8.83 88.11 1365.38 200.00 715.29 47.47 22497.74 103.0 62105.0 48699.34 110.17 FY09 3065.00 397.67 3559.23 637.02 10.25 1288.8 36558.62 13313.45 843.84 FY11E 4142.13 21984.11 103.31 1683.04 427.38 18.00 220.86 15644.00 1425.10 FY09 345.9 748.87 FY11E 366.66 31.32 1826.16 84.15 441.35 FY12E 366.92 941.35 796.43 0. HDFC Sec Estimates Retail Research .97 430.00 86.4 860.60 23.5 3206.23 8.72 15.80 0.39 555.59 43.34 50.6 3705.87 34.00 293.81 40597.67 214.76 2643.49 439.6 14610.70 856.81 276.00 320.0 43168.18 15552.84 -28.38 1460.00 745.46 6140.10 90.95 FY08 344.24 2486.35 519.7 6135.38 26.69 1605.99 -6.Balances at short & call notices Advances Investments Fixed Assets Other assets Total Assets Standalone .52 -3.82 79.03 16423.39 561.8 2708.00 94.38 -32.80 23886.0 7100.6 31891.68 336.38 2749.00 2828.00 76.23 39.03 149.35 145.03 7.35 1622.07 3257.73 4.33 5.9 27717.32 16625.65 0.12 670.60 676.00 136.38 37436.07 3.75 13.10 -6.10 249.3 482.91 412.60 1700.00 189.41 37436.71 28315.60 1518.14 628.34 9110.80 983.27 FY10 3255.56 1225.2 3627.75 1725. HDFC Sec Estimates Source: Capitaline.78 613.7 6713.07 66.Balance Sheet Financial Year (Rs.00 1368.06 101.19 1138.10 55114.54 575.12 1908.00 3425.11 276.69 14 Source: Capitaline.14 22.31 2085.87 995.5 8230.41 18.38 1189.79 397.08 222.11 FY10 348.00 1168.84 18.10 338.5 62105.60 1296.66 52.05 8.

The information contained herein is from sources believed reliable. and buy and sell securities referred to herein.LHS PABV .LHS PABV .78 -18. HDFC Sec Estimates One Year Forward PABV 31/03/2008 15/05/2008 27/06/2008 08/08/2008 23/09/2008 07/11/2008 24/12/2008 09/02/2009 26/03/2009 15/05/2009 26/06/2009 07/08/2009 18/09/2009 06/11/2009 18/12/2009 04/02/2010 19/03/2010 05/05/2010 16/06/2010 28/07/2010 08/09/2010 21/10/2010 03/12/2010 17/01/2011 Date Daily Closing Price .0 2.33 4.3.com) RETAIL RESEARCH Fax: (022) 3075 3435 Corporate Office : HDFC Securities Limited.27 Source: Capitaline.22 5. but not limited to. or perform investment banking. This document is not to be reported or copied or made available to others.97 -4.% Growth NIM % % Growth 0. Office Floor 8.2 . Mumbai 400 042 Fax: (022) 30753435 Website: www. Bulding –B.0 4.5. We may have from time to time positions or options on.0 3.56 4.49 -0.08 0.com Disclaimer: This document has been prepared by HDFC Securities Limited and is meant for sole use by the recipient and not for circulation.15 5. Kanjurmarg (East). Opp. We may from time to time solicit from.19 -7. ”Alpha”. I Think Techno Campus.2.07 5. Crompton Greaves.LHS PABV .62 5. This report is intended for Retail Clients only and not for any other category of clients.hdfcsec.3.LHS PABV . We do not represent that it is accurate or complete and it should not be relied upon as such. or other services for. including.com Email: hdfcsecretailresearch@hdfcsec. Near Kanjurmarg Station.0 0.00 12.0 1. any company mentioned in this document. Institutional Clients Retail Research 01/03/2011 700 600 500 400 300 200 100 0 5. It should not be considered to be taken as an offer to sell or a solicitation to buy any security.67 -2.5 .0 Actual PABV 15 .samuel@hdfcsec.LHS Actual P/ABV-RHS Technical supports/resistances Analyst: Tiju K Samuel (tiju.00 5.

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