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2QFY2012 Result Update | Banking

November 2, 2011

UCO Bank
Performance Highlights

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


Source: Company, Angel Research

NEUTRAL
CMP Target Price
1QFY12 809 612 293 % chg (qoq) 24.9 16.2 (21.1) 2QFY12 1,002 704 119 % chg (yoy) 0.9 0.9 93.6

`74 -

2QFY12 1,010 711 231

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 4,669 1.4 152/61 549,035 10 17,465 5,258 UCBK.BO UCO@IN

For 2QFY2012, UCO Bank reported a 93.6% yoy increase (down 21.1% qoq) in its PAT to `231cr, above our estimates, mostly due to higher net interest income than estimated by us. Reported net interest margin witnessed a sequential improvement of 38bp. We maintain our Neutral recommendation on
the stock. Bank further sheds low-cost deposits during 2QFY2012; NIM improves by 38bp: During 2QFY2012, advances declined by 0.6% qoq (up 12.4% yoy) to `95,549cr, while deposits increased by 3.0% qoq (up 8.5% yoy) to `131,312cr. The bank shed `2,000cr worth bulk deposits during 2QFY2012 (`20,000cr in 1HFY2012). On the deposits side, CASA deposits registered growth of 11.3% yoy. On a sequential basis, CASA deposits increased by relatively higher 3.9% compared to overall deposits growth, leading to an increase in CASA ratio by 212bp to 26.3% in 2QFY2012. The banks cost of deposits decreased by 8bp qoq to 7.2%, while yield on advances increased by 56bp qoq to 11.4%, leading to a 38bp qoq increase in reported NIM. Asset quality of the bank, however, continued to be

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 68.1 10.2 4.3 17.4

under pressure as the bank switched over accounts worth `50lakhs and below to system-based NPA during 2QFY2012. Gross NPA ratio as of 2QFY2012 stood at 3.6% (3.5% in 1QFY2012), while net NPA ratio stood at 2.1% (2.2% in 1QFY2012).
Outlook and valuation: Structurally, the bank has had relatively higher exposure to large corporates, low CASA of ~26% and low fee income (0.6% of total assets as of FY2011). Going forward, we expect the banks earnings to find support from its increasing exposure to the SME and retail segments, improving other income and moderating asset-quality pressures, aided by increasing recoveries. However, at the CMP, the stock is trading at 0.9x FY2013E ABV, which we believe factors in the improvement expected in earnings quality. Hence, we maintain our Neutral recommendation on the stock. Key financials
Y/E March (` cr) NII % chg Net profit % chg NIM (%) EPS (`) P/E (x) P/ABV (x) RoA (%) RoE (%)
Source: Company, Angel Research

Abs. (%) Sensex UCO Bank

3m (3.6) (9.3)

1yr (14.2) (45.7)

3yr 78.4 170.5

FY2010 2,324 41.3 1,012 81.5 1.9 18.4 4.0 1.3 0.8 31.6

FY2011 3,845 65.4 907 (10.4) 2.6 12.6 5.9 1.1 0.6 20.7

FY2012E 3,886 1.1 1,154 27.3 2.4 15.5 4.8 1.0 0.7 17.6

FY2013E 4,372 12.5 1,241 7.5 2.4 16.9 4.4 0.9 0.7 16.7

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

Shrinivas Bhutda
022 3935 7800 Ext: 6845 shrinivas.bhutda@angelbroking.com

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

Please refer to important disclosures at the end of this report

Uco Bank | 2QFY2012 Result Update

Exhibit 1: 2QFY2012 performance


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 Operating income Operating expenses - Employee expenses - Other Opex Pre-provision Profit Provisions & Contingencies - Provisions for NPAs - Other Provisions PBT Provision for Tax PAT Effective Tax Rate (%)
Source: Company, Angel Research

2QFY12 1QFY12 % chg (qoq) 2QFY11 % chg (yoy) 3,528 2,755 765 7 1 2,518 1,010 203 162 1,213 502 335 167 711 475 244 231 236 5 231 2.1 3,401 2,630 748 16 8 2,593 809 275 190 1,084 472 330 142 612 310 310 302 9 293 3.1 3.7 4.8 2.2 (57.3) (82.2) (2.9) 24.9 (26.4) (15.0) 11.9 6.4 1.5 17.7 16.2 53.3 (25.5) (22.0) (48.1) (21.1) (105)bp 2,735 2,022 656 47 11 1,734 1,002 229 214 1,231 527 385 142 704 580 430 150 124 5 119 4.0 29.0 36.2 16.6 (85.2) (87.5) 45.2 0.9 (11.6) (24.5) (1.5) (4.6) (12.9) 17.9 0.9 (18.1) (43.2) NA 89.8 (1.4) 93.6 (193)bp

Exhibit 2: 2QFY2012 Actual vs. estimates


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

Actual 1,010 203 1,213 502 711 475 236 5 231

Estimates 795 249 1,044 502 542 331 211 21 190

Var. (%) 27.0 (18.4) 16.2 0.1 31.1 43.5 11.7 (76.6) 21.5

November 2, 2011

Uco Bank | 2QFY2012 Result Update

Exhibit 3: 2QFY2012 performance analysis


Particulars Balance sheet Advances (` cr) Deposits (` cr) Credit-to-Deposit Ratio (%) CASA deposits (` cr) CASA ratio (%) CAR (%) Tier 1 CAR (%) Profitability Ratios (%) Cost of deposits Yield on advances Yield on investments Reported NIM Cost-to-income ratio Asset quality Gross NPAs (` cr) Gross NPAs (%) Net NPAs (` cr) Net NPAs (%) Slippage ratio (%) LLP to average assets (%)
Source: Company, Angel Research

2QFY12 95,549 131,312 72.8 32,044 26.3 13.6 8.6 7.2 11.4 7.4 2.8 41.4 3,542 3.6 2,022 2.1 2.1 0.7

1QFY12 96,092 127,534 75.3 30,841 24.2 13.5 8.5 7.2 10.9 7.4 2.5 43.6 3,361 3.5 2,040 2.2 2.1 -

% chg (qoq) (0.6) 3.0 (258)bp 3.9 212bp 4bp 7bp (8)bp 56bp 7bp 38bp (215)bp 5.4 14bp (0.8) (4)bp 2bp 65bp

2QFY11 84,971 121,001 70.2 28,803 25.3 13.6 7.8 5.7 10.5 7.5 3.6 43.3 2,058 2.4 1,005 1.2 3.3 1.3

% chg (yoy) 12.4 8.5 254bp 11.3 98bp (5)bp 77bp 147bp 94bp (5)bp (73)bp (191)bp 72.1 125bp 101.2 93bp (118)bp (61)bp

Bank sheds `2,000 worth bulk deposits during 2QFY2012; Loan portfolio contracts further
During 2QFY2012, advances declined by 0.6% qoq (up 12.4% yoy) to `95,549cr, while deposits increased by 3.0% qoq (up 8.5% yoy) to `131,312cr. The bank shed `2,000cr worth bulk deposits during 2QFY2012 (`20,000cr in 1HFY2012). On the deposits side, CASA deposits registered growth of 11.3% yoy. On a sequential basis, CASA deposits increased by relatively higher 3.9% compared to the overall deposits growth, leading to an increase in CASA ratio by 212bp to 26.3% in 2QFY2012. As of 2QFY2012, the banks bulk deposits and CDs comprised ~40% of the overall deposits. The bank opened 22 branches and 44 ATMs during the quarter. We estimate the loan book to grow by 12% and 18% for FY2012 and FY2013, respectively.

November 2, 2011

Uco Bank | 2QFY2012 Result Update

Exhibit 4: Loan portfolio contraction in 1HFY2012


Adv. qoq chg (%) 30.0 20.0 74.1 75.3 72.8 Dep. qoq chg (%) CDR (%, RHS) 80.0 76.0 72.0 68.0

Exhibit 5: Business trend on a yoy basis


Adv. yoy chg (%) 25.0 20.0 15.0 10.0 Dep. yoy chg (%)

3.9 1.8

5.3

68.2

(3.0) (12.2)

(0.2)

(0.6)

3.0

10.0

10.7 20.3

70.2

21.9 19.8

20.4 16.0

18.8 18.7

17.5 7.3

(10.0) (20.0)

64.0 60.0

5.0 -

2QFY11 3QFY11 4QFY11 1QFY12 2QFY12


Source: Company, Angel Research

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

Source: Company, Angel Research

The bank has shed `20,000cr high-cost deposits during 1HFY2012, the effect of which was witnessed in cost of deposits for 2QFY2012. The banks cost of deposits decreased by 8bp qoq to 7.2%, while yield on advances increased by 56bp qoq to 11.4%, leading to a 38bp qoq increase in reported NIM.

Exhibit 6: Further improvement in yield on advances...


11.60 11.20 10.80 10.40 10.00 9.60 9.20 8.80 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 10.49 10.09 9.86 10.87 11.43

Exhibit 7: ...leading to a 38bp qoq rise in reported NIM


4.00 3.57 3.50 3.00 2.50 2.00 1.50 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 2.35 2.46 3.11 2.84

Source: Company, Angel Research

Source: Company, Angel Research

Weak core other income for 2QFY2012


During 2QFY2012, other income declined by 11.6% yoy to `203cr (down by 26.4% qoq). Treasury income was strong, growing by 173.3% yoy to `41cr; however, other income excluding treasury fell down by 24.5% (down 15.0% qoq) `162cr.

Slippages much lower compared to last quarter; however, NPA ratios deteriorate further
The asset quality of the bank, however, continued to be under pressure as the bank switched over accounts worth `50lakhs and below to system-based NPA during 2QFY2012. Gross NPA ratio as of 2QFY2012 stood at 3.6% (3.5% in 1QFY2012), while net NPA ratio stood at 2.1% (2.2% in 1QFY2012). Slippages for the quarter stood at `513cr, out of which management attributed 25% of the slippages to switchover to system-based NPA recognition.
The banks deferred tax credit is almost over; and from 3QFY2012, the bank might have to make full tax provisions.

November 2, 2011

12.4 8.5

Uco Bank | 2QFY2012 Result Update

Exhibit 8: Slippage ratio stable for 2QFY2012


Slippages (%) 6.0 4.5 3.3 3.0 1.5 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 2.2 0.2 2.1 1.3 1.0 0.7 2.1 5.7 Credit cost (%, RHS) 1.4 1.2 1.0 0.8 0.6 0.4 0.2 -

Exhibit 9: Asset quality deteriorates


Gross NPAs (%) 3.2 2.8 2.4 2.0 1.6 1.2 0.8 0.4 51.2 56.8 42.1 39.3 42.9 Net NPAs (%) PCR* (%, RHS) 60.0 50.0 40.0 30.0 20.0

2.4 1.2

2.6 1.1

3.1 1.8

3.5 2.2

3.6 2.1
1.34

10.0 -

2QFY11 3QFY11 4QFY11 1QFY12 2QFY12


Source: Company, Angel Research; note*excluding technical write-offs

Source: Company, Angel Research

Exhibit 10: 22 branches opened during 2QFY2012


Branches 2,240 2,220 2,200 2,180

Exhibit 11: Improvement in cost-to-income ratio


Cost-to-income ratio (%) 50.0
1.54

Opex to average assets (%, RHS) 2.00

45.0 40.0

1.45

1.46 1.22

1.50 1.00 0.50 -

2,158

2,167

2,202

2,209

2,231

2,160 2,140 2,120

42.8

40.0

49.0

43.6

30.0 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12
Source: Company, Angel Research

Source: Company, Angel Research

November 2, 2011

41.4

35.0

Uco Bank | 2QFY2012 Result Update

Investment arguments
Improvement in core profitability
The bank had relatively lower NIM of 1.9% in FY2010 due to low CASA ratio of ~25% and high exposure to relatively low-yielding corporate loans, which constituted 69% of its total loan book. While reported NIM has risen to 3.1% in FY2011 due to a decline in cost of wholesale deposits, going forward, an increase in retail and SME loans is expected to partly stem the fall in NIM due to high prevailing deposit rates. We have factored in a ~24bp decline in NIM for FY2012.

Improvement in operating environment to lower credit cost


The bank's gross and net NPAs stood at 3.6% and 2.1%, respectively, in 2QFY2012, with cumulative restructured advances at `6,790cr as of 2QFY2012 (7.1% of loans, 84.8% of net worth). Going forward, we expect stronger recoveries and lower slippages, which are expected to result in a decline in provisioning expense, as a percentage of average assets, to 0.7% for FY2013 from 1.2% in FY2011.

Outlook and valuation


Structurally, the bank has had relatively higher exposure to large corporates, low CASA of ~26% and low fee income low fee income (0.6% of total assets as of FY2011). Going forward, we expect the banks earnings to find support from its increasing exposure to the SME and retail segments, improving other income and moderating asset-quality pressures, aided by increasing recoveries. However, at the CMP, the stock is trading at 0.9x FY2013E ABV, which we believe factors in the improvement expected in earnings quality. Hence, we maintain our Neutral recommendation on the stock.

Exhibit 12: Key assumptions


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

Earlier estimates FY2012 17.0 9.0 22.8 1.9 14.3 (5.0) 10.0 2.0 53.0 FY2013 19.0 19.0 21.8 1.9 19.2 15.0 17.0 2.0 50.0

Revised estimates FY2012 12.0 4.0 23.9 2.4 7.1 (7.0) 12.0 2.7 54.0 FY2013 18.0 18.0 23.1 2.4 18.3 15.0 17.0 2.7 55.0

November 2, 2011

Uco Bank | 2QFY2012 Result Update

Exhibit 13: Change in estimates


FY2012 Particulars (` cr) NII Non-interest income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT
Source: Angel Research

FY2013 Var. (%) 20.7 (6.3) 14.1 (0.9) 27.9 40.6 15.4 15.4 15.4 Earlier estimates 3,534 1,261 4,795 2,383 2,412 804 1,608 402 1,206 Revised estimates 4,372 1,172 5,544 2,363 3,181 1,344 1,837 596 1,241 Var. (%) 23.7 (7.0) 15.6 (0.8) 31.9 67.3 14.2 48.2 2.9

Earlier estimates 3,218 1,058 4,276 2,061 2,215 1,103 1,111 111 1,000

Revised estimates 3,886 991 4,877 2,043 2,833 1,551 1,282 128 1,154

Exhibit 14: P/ABV band


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

Dec-07

Apr-06

Jul-07

Aug-04

Aug-09

Mar-04

Mar-09

Feb-07

Oct-08

Apr-11

Nov-05

May-08

Source: Company, Angel Research

November 2, 2011

Nov-10

Feb-12

Sep-06

Sep-11

Jun-05

Jan-05

Jan-10

Jun-10

Uco Bank | 2QFY2012 Result Update

Exhibit 15: Recommendation summary


Company AxisBk FedBk HDFCBk ICICIBk* SIB YesBk AllBk AndhBk BOB BOI BOM CanBk CentBk CorpBk DenaBk IDBI# IndBk IOB J&KBk OBC PNB SBI* SynBk UcoBk UnionBk UtdBk VijBk Reco. Buy Accumulate Neutral Buy Neutral Buy Accumulate Neutral Accumulate Accumulate Accumulate Accumulate Neutral Buy Neutral Neutral Neutral Accumulate Neutral Accumulate Accumulate Buy Buy Neutral Accumulate Buy Neutral CMP (`) 1,128 412 483 887 23 308 161 118 800 333 50 482 101 428 82 115 215 100 823 286 979 1,909 107 74 225 71 60 Tgt. price (`) 1,414 444 1,114 355 169 881 362 55 510 498 107 301 1,106 2,239 123 238 82 Upside (%) 25.4 7.9 25.6 15.4 5.2 10.1 8.7 10.9 5.9 16.3 7.3 5.3 13.0 17.3 15.3 5.8 15.2 FY2013E P/ABV (x) 1.8 1.1 3.3 1.6 1.1 1.9 0.7 0.8 1.1 0.9 0.7 0.9 0.7 0.7 0.6 0.7 0.9 0.6 0.9 0.7 1.1 1.4 0.7 0.9 0.9 0.6 0.8 FY2013E Tgt P/ABV (x) 2.3 1.2 2.0 2.3 0.8 1.2 1.0 0.7 1.0 0.8 0.7 0.7 1.3 1.7 0.8 0.9 0.7 FY2013E P/E (x) 9.9 8.4 16.8 13.0 6.8 10.2 4.3 5.3 5.7 5.5 4.3 5.6 5.2 4.4 3.9 5.4 5.5 4.0 5.2 5.0 5.8 7.3 4.7 4.4 5.1 4.2 7.3 FY2011E-13E EPS CAGR (%) 17.7 19.5 30.5 23.3 15.6 19.9 12.2 (0.9) 14.2 15.2 38.1 (3.0) (16.1) 1.5 7.5 12.3 0.2 20.0 12.0 5.1 9.9 41.4 11.8 15.9 5.2 13.4 (3.2) FY2013E RoA (%) 1.5 1.2 1.7 1.4 1.0 1.3 1.0 0.9 1.2 0.7 0.6 0.9 0.5 0.8 0.8 0.7 1.1 0.6 1.3 0.8 1.1 1.0 0.7 0.7 0.8 0.6 0.4 FY2013E RoE (%) 20.0 14.0 20.9 15.4 18.2 20.8 18.4 15.8 20.7 17.1 16.5 17.2 13.9 16.6 16.4 14.0 17.4 15.9 17.8 14.1 20.6 21.9 16.3 16.7 17.0 14.1 10.5

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

November 2, 2011

Uco Bank | 2QFY2012 Result Update

Income statement
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 (%) FY08 1,488 (6.2) 772 40.3 2,260 5.7 1,306 9.5 954 1.0 575 (1.9) 379 5.7 (33) (8.8) 412 30.4 FY09 1,645 10.5 1,020 32.1 2,665 17.9 1,613 23.5 1,052 10.2 488 (15.2) 564 48.9 6 1.1 558 35.3 FY10 2,324 41.3 966 (5.3) 3,290 23.5 1,718 6.5 1,572 49.4 600 23.1 972 72.3 (41) (4.2) 1,012 81.5 FY11 3,845 65.4 925 (4.2) 4,770 45.0 2,075 20.8 2,695 71.5 1,781 196.8 914 (5.9) 8 0.8 907 (10.4) FY12E 3,886 1.1 991 7.1 4,877 2.2 2,043 (1.6) 2,833 5.1 1,551 (12.9) 1,282 40.3 128 10.0 1,154 27.3 FY13E 4,372 12.5 1,172 18.3 5,544 13.7 2,363 15.7 3,181 12.3 1,344 (13.3) 1,837 43.2 596 32.4 1,241 7.5

Balance sheet
Y/E March (` cr) Share Capital - Equity - Preference Reserve & Surplus Deposits - Growth (%) Borrowings Tier 2 Capital Other Liab. & Prov. Total Liabilities Cash Balances Bank Balances Investments Advances - Growth (%) Fixed Assets Other Assets Total Assets - Growth (%) FY08 799 799 2,127 79,909 23.2 1,716 2,950 2,294 89,795 5,703 2,401 24,250 55,082 17.2 684 1,676 89,795 19.9 FY09 1,249 549 700 2,708 100,222 25.4 2,062 3,075 2,348 111,664 6,589 4,265 29,385 68,804 24.9 719 1,903 111,664 24.4 FY10 1,699 549 1,150 3,511 122,416 22.1 1,889 4,375 3,430 137,319 7,243 862 43,521 82,505 19.9 710 2,479 137,319 23.0 FY11 2,451 628 1,823 4,969 145,278 18.7 1,100 4,375 5,227 163,398 10,404 6,576 42,927 99,071 20.1 739 3,681 163,398 19.0 FY12E 2,451 628 1,823 5,760 151,089 4.0 2,148 4,900 5,520 171,867 9,821 4,297 42,165 110,959 12.0 754 3,872 171,867 5.2 FY13E 2,451 628 1,823 6,602 178,285 18.0 2,528 5,782 6,581 202,228 11,589 5,056 49,236 130,932 18.0 860 4,556 202,228 17.7

November 2, 2011

Uco Bank | 2QFY2012 Result Update

Ratio analysis
Y/E March Profitability ratios (%) NIMs Cost to Income Ratio RoA RoE B/S ratios (%) CASA Ratio Credit/Deposit Ratio CAR - Tier I Asset Quality (%) Gross NPAs Net NPAs Slippages Loan Loss Prov. /Avg. Assets Provision Coverage Per Share Data (`) EPS ABVPS (75% cover.) DPS Valuation Ratios PER (x) P/ABVPS (x) Dividend Yield DuPont Analysis NII (-) Prov. Exp. Adj. NII Treasury Int. Sens. Inc. Other Inc. Op. Inc. Opex PBT Taxes RoA Leverage RoE * 1.8 0.7 1.1 0.3 1.4 0.7 2.0 1.6 0.5 (0.0) 0.5 35.1 17.6 1.6 0.5 1.1 0.3 1.5 0.7 2.2 1.6 0.6 0.0 0.6 38.2 21.1 1.9 0.5 1.4 0.2 1.6 0.6 2.2 1.4 0.8 (0.0) 0.8 38.9 31.6 2.6 1.2 1.4 0.1 1.4 0.6 2.0 1.4 0.6 0.0 0.6 34.3 20.7 2.3 0.9 1.4 0.1 1.5 0.5 2.0 1.2 0.8 0.1 0.7 30.3 17.6 2.3 0.7 1.6 0.1 1.7 0.6 2.2 1.3 1.0 0.3 0.7 29.4 16.7 14.4 3.3 1.3 7.3 1.7 1.5 4.0 1.3 3.1 5.9 1.1 4.0 4.8 1.0 3.4 4.4 0.9 4.0 5.2 22.6 1.0 10.2 43.1 1.1 18.4 56.8 2.3 12.6 67.6 3.0 15.5 76.3 2.5 16.9 85.6 3.0 3.0 2.0 2.2 0.4 33.9 2.2 1.2 1.2 0.3 47.2 2.0 1.2 1.6 0.3 42.0 3.1 1.8 3.3 0.8 42.1 4.3 2.3 2.7 0.6 47.9 4.8 2.4 2.7 0.5 51.0 25.7 68.9 10.1 5.1 24.1 68.7 11.9 6.5 24.7 67.4 13.2 7.1 22.0 68.2 13.8 8.6 23.9 73.4 15.0 9.4 23.1 73.4 13.4 8.1 1.9 57.8 0.5 17.6 1.7 60.5 0.6 21.1 1.9 52.2 0.8 31.6 2.6 43.5 0.6 20.7 2.4 41.9 0.7 17.6 2.4 42.6 0.7 16.7 FY08 FY09 FY10 FY11 FY12E FY13E

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

November 2, 2011

10

Uco Bank | 2QFY2012 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

UCO Bank No No No No

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

Ratings (Returns):

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

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

Neutral (-5 to 5%)

November 2, 2011

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