Corporation Bank 4Q FY 2013

7/30/2019 Corporation Bank 4Q FY 2013

1/11

Please refer to important disclosures at the end of this report 1

Particulars (` cr) 4QFY13 3QFY13 % chg (qoq) 4QFY12 % chg (yoy)NII 931 883 5.4 834 11.6Pre-prov. profit 922 759 21.5 814 13.3

PAT 356 303 17.3 351 1.2Source: Company, Angel Research

Corporation Bank reported healthy performance for the quarter, both on the

operating as well as on the asset quality front. NII expectedly grew at 11.6% yoy,

while non-interest income grew strongly by 35.3% yoy, higher than expected

(aided by strong recoveries and robust fee income performance), thereby leading

to operating profit growth of 13.3% yoy. While, the bank witnessed sequential

improvement in asset quality (Gross NPA levels down by 10.3%), it utilized thehigher non-interest income generated during the quarter to shore up its PCR (up

by 402bp qoq) and hence reported flat earnings performance.

Business growth healthy; Asset quality improves sequentially: During the quarter,the banks business grew at a healthy rate, with the advances and deposits

registering a growth of 18.2% and 21.9% yoy, respectively. Saving deposits grew

by healthy 16.6% yoy (9.8% qoq), while current deposits exhibited the typical year

end surge for the bank, as it increased by 55.2% qoq. CASA ratio declined by

44bp yoy to 21.7% (up by 122bp sequentially). The yield on advances moderated

by 4bp qoq, and consequentially, the NIMs also dropped by 4bp qoq to 2.3%.

The treasury income for the bank came in at `124cr compared to `96cr reported

in 4QFY2012. Non-interest income (excluding treasury) showed a strong growthof 39.8% yoy, majorly driven by strong increase of 66.6% yoy in recoveries from

written off accounts, robust growth of 27.8% yoy in fee income. During the

quarter, the bank witnessed improvement on the asset quality front, as gross NPA

levels, on an absolute basis, declined by 10.3% qoq. The bank utilized the higher

non-interest income generated during the quarter, to shore up its provisioning

coverage ratio (up by 404bp qoq to 62.1%) and hence, the Net NPA levels, on an

absolute basis, declined by higher 16.9% qoq. In relative terms, Gross and Net

NPA ratios improved sequentially by 46bp and 44bp respectively to 1.7% and

1.2%. Additionally, the bank restructured advances worth ~`1,254cr, thereby

taking its outstanding restructured book to `7,675cr.

Outlook and valuation: The banks low CASA ratio (21.7% as of 4QFY2013) hascontributed to higher margin pressures. At the current market price, the stock tradesat 0.5x FY2015E ABV, below its historic trading range of 0.7-1.4x and median of

1.0x. We value the bank at 0.6x FY2015E ABV and recommend an Accumulaterating on the stock with a target price of `453.Key financials (standalone)Y/E March (` cr) FY2012 FY2013 FY2014E FY2015ENII 3,147 3,426 4,011 4,474% chg 7.0 8.9 17.1 11.6

Net profit 1,576 1,435 1,505 1,646% chg 11.5 (8.9) 4.9 9.4

NIM (%) 2.1 2.0 2.0 2.0

EPS (`) 106.4 93.8 98.4 107.6P/E (x) 3.8 4.3 4.1 3.8

P/ABV (x) 0.7 0.7 0.6 0.5

RoA (%) 1.0 0.8 0.7 0.7

RoE (%) 20.4 16.1 14.8 14.5

Source: Company, Angel Research

ACCUMULATECMP `406

Target Price `453

Investment Period 12 Months

Stock Info

Sector

Bloomberg Code

Shareholding Pattern (%)

Promoters 59.8

MF / Banks / Indian Fls 29.4

FII / NRIs / OCBs 3.9

Indian Public / Others 6.9

Abs. (%) 3m 1yr 3yr

Sensex 3.1 22.3 15.9

CRPBK (0.5) 0.4 (23.8)

Reuters Code CRBK.BO

CRPBK@IN

BSE Sensex 20,083

Nifty 6,095

Avg. Daily Volume 19,262

Face Value (`) 10

Beta 0.9

52 Week High / Low 495/362

Banking

Market Cap (`cr) 6,210

Vaibhav Agrawal022 3935 7800 Ext: 6808

[email protected]

Sourabh Taparia022 3935 7800 Ext: 6872

[email protected]

Akshay Narang022 3935 7800 Ext: 6829

[email protected]

Harshal Patkar022 3935 7800 Ext: 6847

[email protected]

Corporation BankPerformance Highlights

4QFY2013 Result Update | Banking

May 10, 2013


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Corporation Bank | 4QFY2013 Result Update

May 10, 2013 2

Exhibit 1:4QFY2013 performance (standalone)Particulars (` cr) 4QFY13 3QFY13 % chg (qoq) 4QFY12 % chg (yoy) FY2013 FY2012 % chg (yoy)Interest earned 4,068 3,871 5.1 3,586 13.4 15,334 13,018 17.8- on Advances / Bills 3,059 2,838 7.8 2,691 13.7 11,449 9,563 19.7- on investments 907 911 (0.4) 805 12.7 3,432 3,070 11.8

- on balance with RBI & others 10 1 600.4 11 (5.9) 42 36 17.0

- on others 92 120 (23.9) 79 16.1 412 349 18.1

Interest Expended 3,137 2,987 5.0 2,752 14.0 11,908 9,871 20.6Net Interest Income 931 883 5.4 834 11.6 3,426 3,147 8.9Other income 567 387 46.6 423 34.0 1,608 1,553 3.5Other income excl. treasury 443 320 38.5 327 35.3 1,328 1,188 11.7

- Fee Income (CEB income) 302 239 26.5 236 27.8 987 832 18.6

- Treasury Income 124 67 85.3 96 29.7 280 365 (23.2)

- Recov. from written off a/cs 63 44 43.2 38 66.6 153 164 (7.1)

- Others 78 37 110.0 53 46.3 188 192 (2.2)

Operating income 1,498 1,270 17.9 1,257 19.2 5,034 4,700 7.1Operating expenses 576 511 12.6 443 30.0 1,997 1,784 12.0- Employee expenses 284 263 8.0 216 31.6 990 913 8.4

- Other opex 291 248 17.5 227 28.4 1,006 870 15.6

Pre-provision Profit 922 759 21.5 814 13.3 3,037 2,917 4.1Provisions & Contingencies 460 406 13.3 338 36.2 1,351 1,011 33.6- Provisions for NPAs 136 324 (58.2) 178 (24.0) 928 618 50.2

- Provisions for Investments 84 (1) (8,209.6) (55) (253.5) (5) 85 (106.2)

- Other Provisions 240 83 188.6 214 12.0 429 308 39.2

PBT 463 353 31.1 477 (2.9) 1,686 1,906 (11.5)Provision for Tax 107 50 115.3 125 (14.6) 251 399 (37.2)PAT 356 303 17.3 351 1.2 1,435 1,506 (4.7)Effective Tax Rate (%) 23.1 14.1 905bp 26.3 (315)bp 14.9 21.0 (608)bp


Exhibit 2:4QFY2013 Actual vs estimatesParticulars (` cr) Actual Estimates Var. (%)Net interest income 931 917 1.5

Other income 567 413 37.4

Operating income 1,498 1,330 12.6Operating expenses 576 535 7.6

Pre-prov. profit 922 795 16.1Provisions & cont. 460 439 4.8

PBT 463 356 29.9

Prov. for taxes 107 53 100.2

PAT 356 303 17.5Source: Company, Angel Research


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May 10, 2013 3

Exhibit 3:4QFY2013 performance analysis (standalone)Particulars 4QFY13 3QFY13 % chg (qoq) 4QFY12 % chg (yoy)Balance sheetAdvances (

`cr) 118,717 104,443 13.7 100,469 18.2

Deposits (`cr) 166,005 140,384 18.3 136,142 21.9

Credit-to-Deposit Ratio (%) 71.5 74.4 (288)bp 73.8 (228)bp

Current deposits (`cr) 15,237 9,818 55.2 12,305 23.8

Saving deposits (` cr) 20,759 18,904 9.8 17,808 16.6

CASA deposits (`cr) 35,996 28,722 25.3 30,113 19.5

CASA ratio (%) 21.7 20.5 122bp 22.1 (44)bp

CAR (%) 12.3 12.6 (24)bp 13.0 (67)bp

Tier 1 CAR (%) 8.3 8.1 25bp 8.3 0bp

Profitability Ratios (%)Cost of deposits 8.0 8.1 (4)bp 8.0 (1)bp

Yield on advances 11.5 11.6 (4)bp 11.7 (20)bp

Yield on investments 7.7 7.8 (6)bp 7.8 (3)bp

Reported NIM 2.3 2.4 (4)bp 2.4 (10)bp

Cost-to-income ratio 38.4 40.3 (183)bp 35.2 319bp

Asset qualityGross NPAs (`cr) 2,048 2,284 (10.3) 1,274 60.7

Gross NPAs (%) 1.7 2.2 (46)bp 1.3 46bp

Net NPAs (` cr) 1,411 1,698 (16.9) 869 62.3

Net NPAs (%) 1.2 1.6 (44)bp 0.9 32bp

Provision Coverage Ratio (%) 62.1 58.0 404bp 65.3 (324)bp

Slippage ratio (%) (0.3) 2.8 (307)bp 0.8 (104)bp

Loan loss prov. to avg. assets (%) 0.3 0.8 (47)bp 0.5 (16)bp


Business growth healthy; NIMs decline sequentially

During 4QFY2013, the banks business grew at a healthy rate, with the advances

and deposits registering a growth of 18.2% and 21.9% yoy, respectively.

Within advances, strong growth was seen in retail advances, SME and agriculture

which grew by 39.0%, 36.1% and 32.6% yoy respectively. Also, gold loans almost

doubled yoy.

Both saving and current deposits grew at a healthy pace of 16.6% and 23.8% yoy

which resulted in a healthy CASA deposits growth of 19.5% yoy. However, the

CASA ratio for the bank dipped by 44bp yoy to 21.7% although it was up by

122bp sequentially.

During the quarter, cost of deposits for the bank came off by 4bp qoq to 8.0%.

The yield on advances for the bank reduced marginally by 4bp qoq to 11.5% and

the yield on investments reduced by 6bp qoq to 7.8%. The reported NIM for the

bank improved sequentially by 12bp to 2.4%. Consequentially, the NIM also

dropped by 4bp qoq to 2.3%.

The bank has added more than 200 branches in the current financial year and has

healthy branch addition plans of around 300 branches in FY2013-14, which is

expected to strengthen its liability franchise going ahead.


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May 10, 2013 4

Exhibit 4:Business growth healthy


Exhibit 5:Cost of deposits sequentially lower by 4bp


Exhibit 6:Yield on advances came off by 4bp qoq


Exhibit 7:NIMs decline by 4bp sequentially


Robust fee income growth and higher recoveries drive strong

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

Non-interest income (excluding treasury) showed a strong growth of 39.8% yoy to

`443cr on account of robust growth in fee income and higher recoveries. Fee

income grew at a robust pace of 27.8% yoy to `302cr, while recoveries from

written-off accounts were higher by 66.6% yoy to `63cr. The treasury income for

the bank came in at `124cr compared to `96cr reported in 4QFY2012. Overall,non-interest income for the bank grew by 37.4% to `567cr.

Asset quality improves sequentially

The banks asset quality improved during 4QFY2013, with both gross and net NPA

levels decreasing on an absolute basis by 10.3% and 16.9% qoq, respectively.

Gross and Net NPA ratios were lower sequentially by 46bp and 44bp respectively to

1.7% and 1.2%. As per the management, slippages during the quarter amounted to

`300cr. Annualized slippages ratio came in at 1.8% for FY2013 as compared to

2.5% for 9MFY2013. PCR increased by 404bp sequentially to 62.1%.

Additionally, the bank restructured advances worth ~`1,254cr, of which majoraccounts were TamilNadu SEB (`700cr) and Global Coke (`100cr). The outstanding

restructured book reduced to `7,675cr in 4QFY2013 from `8,895cr in 3QFY2013

primarily on back of upgradations on satisfactory performance.

15.7

24.9

20.2

13.1

18.2

16.6

13.9

19.2

10.9

21.9

73.873.5

68.3

74.4

71.5

64.0

66.0

68.0

70.0

72.0

74.0

76.0

-

10.0

20.0

30.0

4QFY12 1QFY13 2QFY13 3QFY13 4QFY13

Adv. yoy chg (%) Dep. yoy chg (%) CDR (%, RHS)

8.03

8.10

8.30

8.068.02

7.80

7.90

8.00

8.10

8.20

8.30

8.40


(%)

11.71

11.62

11.87

11.5511.51

11.25

11.50

11.75

12.00


(%)

2.41

2.29

2.23

2.35

2.31

2.10

2.20

2.30

2.40

2.50


(%)


5/11


May 10, 2013 5

Exhibit 8:Slippages and credit cost trend


Exhibit 9:NPA ratios decline sequentially


Exhibit 10:Opex increased by 12.6% qoq, hence...


Exhibit 11:...Cost ratios decline sequentially


1.3

1.7

2.0

2.2

1.7

0.9

1.2

1.4

1.6

1.2

65.3

61.060.4

58.0

62.1

54.0

56.0

58.0

60.0

62.0

64.0

66.0

-

0.5

1.0

1.5

2.0

2.5


Gross NPAs (%) Net NPAs (%) PCR (%, RHS)

216 239 204263 284

227 227 240248

291

443 466 443511

576

-

150

300

450

600

750


Staff exps ( cr) Other opex ( cr)

35.2

41.0

39.3

40.3

38.4

1.1

1.2

1.1

1.2

1.3

1.0

1.1

1.1

1.2

1.2

1.3

1.3

20.0

25.0

30.0

35.0

40.0

45.0


Cost-to-income ratio (%) Opex to average assets (%, RHS)


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May 10, 2013 6

Investment arguments

Modern and cost-efficient network to support moderate CASA

growth

During FY2008-13, the CASA deposits of the bank grew at a CAGR of ~13%

which was quite robust. We believe the banks efficient network (1,707 branches

currently) supported by a consistent track record in early adoption of emerging

technologies creates a positive traction in its deposit franchise, which is tempered

mainly by substantial competition from larger banks. The bank also plans to open

another 300 branches and 2,000 ATMs in FY2013-14 which would further give a

boost to low-cost deposits.

Low operating cost, owing to corporate-centric business

Large corporates comprise ~44% of the banks credit book as of 4QFY2013

(~46% as of 4QFY2012), leading to relatively low operating costs for the bank.

Consequently, the bank is among the most cost-efficient PSU banks, both in terms

of opex/average assets (1.3x as of 4QFY2013) as well as branch and employee

productivity.

Outlook and valuation

The banks low CASA ratio (21.7% as of 4QFY2013) has contributed to higher

margin pressures. At the current market price, the stock trades at 0.5x FY2015E

ABV, below its historic trading range of 0.7-1.4x and median of 1.0x. We valuethe bank at 0.6x FY2015E ABV and recommend an Accumulate rating on the stockwith a target price of `453.Exhibit 12:Key assumptionsParticulars (%) Earlier estimates Revised estimatesFY2014E FY2015E FY2014E EFY2015ECredit growth 14.0 14.0 15.0 15.0

Deposit growth 12.0 13.0 11.0 13.0

CASA ratio 21.8 21.6 21.4 21.2

NIMs 2.2 2.2 2.0 2.0

Other income growth 0.4 7.8 (3.8) 6.4

Growth in staff expenses 15.0 10.0 15.0 10.0

Growth in other expenses 7.5 7.5 10.0 10.0

Slippages 1.9 1.7 1.8 1.7

Coverage Ratio 65.0 70.0 68.0 70.0

Source: Angel Research


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May 10, 2013 7

Exhibit 13:Change in estimatesParticulars (` cr) FY2014E FY2015EEarlierestimates Revisedestimates Var. (%) Earlierestimates Revisedestimates Var. (%)NII 3,937 4,011 1.9 4,400 4,474 1.7

Non-interest income 1,460 1,547 6.0 1,573 1,647 4.7

Operating income 5,397 5,558 3.0 5,973 6,121 2.5Operating expenses 2,176 2,246 3.2 2,368 2,471 4.4

Pre-prov. profit 3,221 3,312 2.8 3,606 3,650 1.2Provisions & cont. 1,175 1,222 4.0 1,153 1,157 0.4

PBT 2,046 2,090 2.2 2,453 2,494 1.7

Prov. for taxes 573 585 2.2 834 848 1.7

PAT 1,473 1,505 2.2 1,619 1,646 1.7Source: Angel Research

Exhibit 14:P/ABV band


0

200

400

600

800

1,000

1,200

1,400

Mar-02

Sep-0

2

Mar-03

Sep-0

3

Mar-04

Sep-0

4

Mar-05

Sep-0

5

Mar-06

Sep-0

6

Mar-07

Sep-0

7

Mar-08

Sep-0

8

Mar-09

Sep-0

9

Mar-10

Sep-1

0

Mar-11

Sep-1

1

Mar-12

Sep-1

2

Mar-13

Sep-1

3

Price (`) 0.5x 0.8x 1.1x 1.4x 1.7x


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May 10, 2013 8

Exhibit 15:Recommendation summaryCompany Reco. CMP(`) Tgt.price (`) Upside(%) FY2015EP/ABV (x) FY2015ETgt. P/ABV (x) FY2015EP/E (x) FY13-15ECAGR in EPS (%) FY2015ERoA (%) FY2015ERoE (%)AxisBk Buy 1,468 1,714 16.7 1.6 1.9 9.6 17.3 1.6 17.6

FedBk Neutral 456 - - 1.0 - 7.7 10.0 1.2 13.7

HDFCBk Neutral 703 - - 3.3 - 16.5 22.8 1.8 21.8

ICICIBk* Buy 1,166 1,357 16.4 1.7 2.0 12.1 15.5 1.5 15.6

SIB Neutral 24 - - 0.9 - 5.3 11.4 1.0 17.1

YesBk Neutral 509 - - 2.2 - 10.6 14.9 1.3 22.1

AllBk Buy 123 142 15.1 0.5 0.6 3.4 12.6 0.8 14.2

AndhBk Neutral 91 - - 0.6 - 3.9 4.2 0.8 13.4

BOB Buy 705 815 15.6 0.7 0.9 4.9 17.0 1.0 16.0

BOI Accumulate 337 360 6.8 0.7 0.8 4.9 21.8 0.8 15.1

BOM Neutral 57 - - 0.6 - 4.3 14.8 0.6 15.6

CanBk Accumulate 423 461 8.9 0.7 0.8 4.9 14.0 0.8 14.1CentBk Neutral 72 - - 0.6 - 4.0 42.8 0.6 13.3

CorpBk Accumulate 406 453 11.6 0.5 0.6 3.8 8.3 0.8 14.4DenaBk Neutral 93 - - 0.5 - 3.5 4.3 0.8 15.3

IDBI# Neutral 88 - - 0.5 - 4.7 15.2 0.7 11.3

IndBk Buy 160 186 16.0 0.5 0.6 3.8 6.5 1.0 14.9

IOB Neutral 63 - - 0.4 - 3.1 53.3 0.7 13.1

J&KBk Neutral 1,361 - - 1.0 - 6.8 (5.2) 1.2 16.0

OBC Accumulate 259 282 9.2 0.5 0.6 4.1 17.5 0.8 13.1

PNB Buy 771 945 22.6 0.7 0.9 4.4 12.4 1.0 16.3

SBI* Accumulate 2,294 2,572 12.2 1.3 1.4 8.2 16.4 1.0 17.0

SynBk Neutral 128 - - 0.6 - 4.5 (3.5) 0.7 15.2

UcoBk Neutral 74 - - 0.8 - 5.1 36.9 0.6 12.6

UnionBk Accumulate 2 40 264 10.3 0.7 0.8 5.0 21.2 0.8 15.3

UtdBk Accumulate 60 64 6.9 0.4 0.4 2.9 40.4 0.7 14.7

VijBk Neutral 53 - - 0.6 - 4.8 21.2 0.5 11.7

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

Company background

Corporation Bank is a mid-size PSU bank, with a balance sheet size of ~`1.9lakhcr. The bank has a network of 1,700+ branches, mainly concentrated in the

southern states (~50%), with majority being in the parent state of Karnataka

(~26%). The banks recent branch additions have been largely in rural and semi-

urban areas, which have aided a shift in its branch mix. Resultantly, rural and

semi-urban branches now account for ~54% of the total branches as against

~50% in previous year.


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May 10, 2013 9

Income statement (standalone)

Y/E March (` cr) FY10 FY11 FY12 FY13 FY14E FY15ENet Interest Income 1,903 2,940 3,147 3,426 4,011 4,474- YoY Growth (%) 12.6 54.5 7.0 8.9 17.1 11.6Other Income 1,493 1,324 1,562 1,608 1,547 1,647- YoY Growth (%) 34.9 (11.3) 18.0 2.9 (3.8) 6.4

Operating Income 3,397 4,264 4,709 5,034 5,558 6,121- YoY Growth (%) 21.4 25.5 10.4 6.9 10.4 10.1

Operating Expenses 1,260 1,642 1,784 1,997 2,246 2,471- YoY Growth (%) 20.4 30.3 8.6 12.0 12.5 10.0

Pre - Provision Profit 2,137 2,622 2,926 3,037 3,312 3,650- YoY Growth (%) 22.0 22.7 11.6 3.8 9.1 10.2

Prov. & Cont. 474 689 951 1,351 1,222 1,157- YoY Growth (%) 29.8 45.2 38.1 42.1 (9.6) (5.3)

Profit Before Tax 1,662 1,934 1,974 1,686 2,090 2,494- YoY Growth (%) 19.9 16.3 2.1 (14.6) 24.0 19.3

Prov. for Taxation 492 520 399 251 585 848- as a % of PBT 29.6 26.9 20.2 14.9 28.0 34.0

PAT 1,170 1,413 1,576 1,435 1,505 1,646- YoY Growth (%) 31.1 20.8 11.5 (8.9) 4.9 9.4

Balance sheet (standalone)

Y/E March (` cr) FY10 FY11 FY12 FY13 FY14E FY15EShare Capital 143 148 148 153 153 153Reserve & Surplus 5,631 6,990 8,128 9,413 10,553 11,808

Deposits 92,734 116,748 136,142 166,005 184,266 208,221

- Growth (%) 25.3 25.9 16.6 21.9 11.0 13.0

Borrowings 4,290 10,628 9,648 8,414 9,319 10,494

Tier 2 Capital 4,788 5,338 4,600 4,485 4,373 4,264

Other Liab. & Prov. 4,081 3,658 4,894 4,972 5,598 6,335

Total Liabilities 111,667 143,509 163,560 193,442 214,263 241,275Cash Balances 8,835 8,142 9,288 8,848 8,292 9,370

Bank Balances 1,957 2,250 2,410 3,835 3,214 3,619

Investments 34,523 43,453 47,475 58,164 61,952 66,479

Advances 63,203 86,850 100,469 118,717 136,524 157,003

- Growth (%) 30.3 37.4 15.7 18.2 15.0 15.0

Fixed Assets 293 329 356 443 476 520

Other Assets 2,857 2,484 3,563 3,435 3,804 4,284

Total Assets 111,667 143,509 163,560 193,442 214,263 241,275- Growth (%) 28.5 28.5 14.0 18.3 10.8 12.6


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May 10, 2013 10

Ratio analysis

Y/E March FY10 FY11 FY12 FY13 FY14E FY15EProfitability ratios (%)NIMs 2.0 2.4 2.1 2.0 2.0 2.0Cost to Income Ratio 37.1 38.5 37.9 39.7 40.4 40.4

RoA 1.2 1.1 1.0 0.8 0.7 0.7

RoE 21.9 21.9 20.4 16.1 14.8 14.5

B/S ratios (%)CASA Ratio 28.6 26.0 22.1 21.7 21.4 21.2

Credit/Deposit Ratio 68.2 74.4 73.8 71.5 74.1 75.4

CAR 15.4 14.1 13.0 12.0 11.7 11.2

- Tier I 9.3 8.7 8.3 8.1 8.1 8.0

Asset Quality (%)Gross NPAs 1.0 0.9 1.3 1.7 2.4 2.9

Net NPAs 0.3 0.5 0.9 1.2 1.2 1.2

Slippages 1.0 1.3 1.4 1.8 1.8 1.7

Loan Loss Prov. /Avg. Assets 0.3 0.4 0.4 0.5 0.5 0.4

Provision Coverage 80.8 74.7 65.3 62.1 68.0 70.0

Per Share Data (`)EPS 81.6 95.4 106.4 93.8 98.4 107.6

ABVPS (75% cover.) 402.6 481.5 542.3 594.1 677.7 762.2

DPS 16.5 20.0 20.5 19.0 20.5 22.0

Valuation RatiosPER (x) 5.0 4.3 3.8 4.3 4.1 3.8

P/ABVPS (x) 1.0 0.8 0.7 0.7 0.6 0.5

Dividend Yield 4.1 4.9 5.0 4.7 5.0 5.4

DuPont AnalysisNII 1.9 2.3 2.0 1.9 2.0 2.0

(-) Prov. Exp. 0.5 0.5 0.6 0.8 0.6 0.5

Adj. NII 1.4 1.8 1.4 1.2 1.4 1.5

Treasury 0.6 0.2 0.2 0.2 0.1 0.0

Int. Sens. Inc. 2.1 1.9 1.7 1.3 1.4 1.5

Other Inc. 0.9 0.9 0.8 0.7 0.7 0.7

Op. Inc. 2.9 2.8 2.4 2.1 2.1 2.2

Opex 1.3 1.3 1.2 1.1 1.1 1.1PBT 1.7 1.5 1.3 0.9 1.0 1.1

Taxes 0.5 0.4 0.3 0.1 0.3 0.4

RoA 1.2 1.1 1.0 0.8 0.7 0.7Leverage 18.6 19.8 19.9 20.0 20.1 20.1

RoE 21.9 21.9 20.4 16.1 14.8 14.5


11/11


May 10, 2013 11

Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com

DISCLAIMERThis document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investmentdecision. 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 reliablesources 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 thisdocument is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any wayresponsible 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. WhileAngel 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.

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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 thelatest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may haveinvestment positions in the stocks recommended in this report.

Disclosure of Interest Statement Corporation Bank

1. Analyst ownership of the stock No

2. Angel and its Group companies ownership of the stock No

3. Angel and its Group companies' Directors ownership of the stock No

4. Broking relationship with company covered No

Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)Reduce (-5% to -15%) Sell (< -15%)

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

Documents

Corporation Bank 4Q FY 2013