bank of india 1q fy 2014

7/27/2019 Bank of India 1Q FY 2014

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Bank of India | 1QFY2014 Result Update

July 29, 2013 2

Exhibit 1:1QFY2014 performance (Standalone)Particulars (` cr) 1QFY14 4QFY13 % chg (qoq) 1QFY13 % chg (yoy) FY2013 FY2012 % chg (yoy)Interest earned 8,541 8,005 6.7 7,709 10.8 31,909 28,481 12.0- on Advances / Bills 6,190 5,926 4.5 5,541 11.7 23,139 20,241 14.3- on investments 1,885 1,720 9.6 1,896 (0.6) 7,261 7,142 1.7

- on balance with RBI & others 465 398 16.8 272 71.3 1,257 834 50.7

- on others 0 127 NA 0 NA 251 264 (4.9)

Interest Expended 6,004 5,696 5.4 5,666 6.0 22,885 20,167 13.5Net Interest Income 2,537 2,310 9.8 2,044 24.1 9,024 8,314 8.5Other income 1,181 1,094 7.9 841 40.4 3,766 3,321 13.4Other income excl. treasury 657 937 (29.9) 740 (11.3) 3,319 2,912 14.0

- Fee Income 313 380 (17.6) 303 3.3 1,263 1,272 (0.7)

- Treasury Income 524 157 233.1 100 421.9 447 409 9.3

- Others 344 557 (38.3) 437 (21.4) 2,056 1,641 25.3

Operating income 3,718 3,404 9.2 2,884 28.9 12,790 11,635 9.9Operating expenses 1,537 1,495 2.8 1,211 27.0 5,332 4,941 7.9- Employee expenses 963 855 12.6 743 29.5 3,131 3,053 2.5

- Other Opex 575 640 (10.2) 468 22.9 2,201 1,887 16.6

Pre-provision Profit 2,180 1,909 14.2 1,674 30.3 7,459 6,694 11.4Provisions & Contingencies 695 1,511 (54.0) 472 47.1 4,451 3,116 42.8- Provisions for NPAs 627 1,089 (42.4) 569 10.2 3,726 2,026 84.0

- Provisions for Investments (80) 258 (131.0) (136) (41.0) 76 437 (82.5)

- Other Provisions 148 164 (9.8) 39 282.0 648 654 (0.9)

PBT 1,486 398 273.0 1,201 23.7 3,008 3,578 (15.9)Provision for Tax 522 (192) NA 314 66.2 258 900 (71.3)

PAT 964 590 63.3 887 8.6 2,749 2,678 2.7Effective Tax Rate (%) 35.1 (48.2) 8334bp 26.1 898bp 8.6 25.2 (1657)bp

Source: Company, Angel Research

Exhibit 2:1QFY2014 Actual vs. EstimatesParticulars (` cr) Actual Estimates Var (%)NII 2,537 2,497 1.6

Non-interest income 1181 861 37.2

Operating income 3,718 3,358 10.7Operating expenses 1,537 1,426 7.8

Pre-prov. profit 2,180 1,933 12.8Provisions & cont. 695 1,008 (31.1)

PBT 1,486 925 60.7

Prov. for taxes 522 166 213.4

PAT 964 758 27.1Source: Company, Angel Research


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July 29, 2013 3

Exhibit 3:1QFY2014 performance analysis (Standalone)Particulars 1QFY14 4QFY13 % chg (qoq) 1QFY13 % chg (yoy)Balance sheetAdvances (`cr) 305,600 289,368 5.6 261,341 16.9Deposits (`cr) 414,964 381,840 8.7 338,983 22.4

Credit-to-Deposit Ratio (%) 73.6 75.8 (214)bp 77.1 (345)bp

Domestic current deposits (`cr) 18,367 16,769 9.5 15,926 15.3

Domestic saving deposits (`cr) 78,320 77,031 1.7 67,308 16.4

Domestic CASA deposits (`cr) 96,687 93,800 3.1 83,233 16.2

Global CASA ratio (%) 23.3 24.6 (127)bp 24.6 (125)bp

CAR (%) 10.7 11.0 (36)bp 11.4 (76)bp

Tier 1 CAR (%) 8.0 8.2 (22)bp 8.3 (31)bp

Profitability Ratios (%)Dom. cost of deposits 7.1 7.2 (5)bp 7.3 (15)bp

Dom. yield on advances 11.3 11.3 (2)bp 11.3 7bp

Dom. yield on investments 8.2 7.9 28bp 8.0 19bp

Dom. yield on funds 8.8 9.1 (29)bp 9.1 (30)bp

Dom. cost of funds 6.3 6.4 (13)bp 6.8 (58)bp

Dom. Reported NIMs 3.1 3.0 7bp 2.6 51bp

Cost-to-income ratio 41.4 41.9 (52)bp 42.0 (63)bp

Asset qualityGross NPAs (` cr) 9,413 8,765 7.4 6,752 39.4

Gross NPAs (%) 3.0 3.0 5bp 2.6 48bp

Net NPAs (`cr) 6,409 5,947 7.8 4,413 45.2

Net NPAs (%) 2.1 2.1 4bp 1.7 41bp

Provision Coverage Ratio (%) 61.0 60.9 5bp 60.9 11bp

Slippage Ratio 2.7 2.7 5bp 2.8 (6)bp

LLP to avg assets (%) 0.5 1.0 (47)bp 0.6 (5)bp

Source: Company, Angel Research; Note: Profitability ratios excluding CIR for domestic operations

Healthy business growth; Domestic NIM improves sequentially

During 1QFY2014, the bank registered a healthy 18.2% yoy growth in its overall

gross advances, aided by a robust growth in its international loan book (at 29.0%

yoy partly on back of INR depreciation). Domestic advances for the bank grew by

13.9% yoy (aided by healthy growth of 22.9% yoy in agri segment and 22.5% yoy

in SME segment).

Overall, deposits for the bank grew at a robust pace of 22.4% yoy. Domestic CASA

deposits grew at 16.2% yoy, as both savings and current deposits grew at a

healthy pace of 16.4% and 15.3% yoy, respectively. Consequently, the domestic

CASA ratio for the bank declined sequentially by 130bp to 30.6%.

The domestic NIM improved by 7bp sequentially to 3.1%, as the domestic cost of

funds came in lower by 13bp qoq, as the bank substantially reduced its reliance on

high cost bulk deposits. Domestic yield on advances came in lower only by 2bp

qoq to 11.3%. Global NIM grew by 4bp qoq to 2.5%.


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July 29, 2013 4

Exhibit 4:Business growth remains healthy


Exhibit 5:Healthy Domestic CASA growth


Exhibit 6:Healthy Gr. in Agri and SME aides Domestic loan growthParticulars (` cr) 1QFY14 4QFY13 % chg (qoq) 1QFY13 % chg (yoy) % to totalAgricultural 28,147 27,622 1.9 22,910 22.9 9.1

SME 37,942 37,230 1.9 30,966 22.5 12.3

Corporates 119,822 116,834 2.6 105,893 13.2 38.7

Retail 22,972 22,350 2.8 23,624 (2.8) 7.4

Domestic advances 208,883 204,036 2.4 183,393 13.9 67.5International 100,549 88,932 13.1 77,949 29.0 32.5

Global advances 309,432 292,968 5.6 261,341 18.4 100.0Source: Company, Angel Research

Exhibit 7:Trend in yield and cost ratios (Global)Particulars (%) 1QFY14 4QFY13 % chg (qoq) 1QFY13 % chg (yoy)Cost of deposits 5.7 5.8 (4)bp 5.9 (23)bp

Yield on advances 8.6 8.6 (3)bp 8.9 (28)bp

Yield on investments 8.0 7.8 23bp 8.0 4bp

Yield on funds 7.3 7.5 (25)bp 7.9 (58)bp

Cost of funds 5.1 5.3 (13)bp 5.8 (65)bp

Reported NIM 2.5 2.5 4bp 2.3 23bp


21

.6

19

.5

20

.0

16

.3

16

.9

15

.7

11

.2

13

.6

20

.0

22

.4

77.1 77.0

79.2

75.8

73.6

70.0

72.0

74.0

76.0

78.0

80.0

-

5.0

10.0

15.0

20.0

25.0

1QFY13 2QFY13 3QFY13 4QFY13 1QFY14

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

31

.2

31

.8

32

.8

31

.9

30

.6

12.2

9.8

12.0

15.316.3

-

5.0

10.0

15.0

20.0

25.0

27.0

29.0

31.0

33.0

35.0


Domestic CASA ratio (%) CASA yoy growth (%, RHS)


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July 29, 2013 5

Exhibit 8:Costs of funds decline on lower bulk deposits


Exhibit 9:Domestic NIM increases by 7bp qoq


Subdued non-interest income (excl. treasury) performance

During the quarter, the banks performance on the non-interest income (excluding

treasury) front was subdued with de-growth of 11.3% yoy to `657cr. Income from

the forex segment grew sharply by 120.6% yoy to `206cr. On the CEB income

front, the bank witnessed a modest growth of 3.3% yoy to `313cr. Income from

treasury quadrupled on a yoy basis at `524cr. Overall, the non-interest income for

the bank grew by 40.4% yoy to `1,181cr.

Exhibit 10:Subdued non-interest income (excl. Treasury) performanceParticulars (` cr) 1QFY14 4QFY13 % chg (qoq) 1QFY13 % chg (yoy)CEB 313 380 (17.6) 303 3.3Treasury 524 157 233.1 100 421.9

Forex 206 185 11.1 93 120.6

Others 138 371 (62.8) 344 (59.9)

Other income 1,181 1,094 8.0 841 40.4Other income excl. treasury 657 937 (29.9) 741 (11.3)


Asset quality pressures continue

During the quarter, the banks asset quality remained under pressure, as the

annualized slippage ratio for the bank came in at 2.7%, similar to the levels

witnessed in 4QFY2013. Recoveries/upgrades during the quarter came in higher

at `706cr as compared to `248cr in 4QFY2013 and an average of `502cr in the

last four quarters. Despite elevated slippages, higher recoveries/upgrades, aided

the bank to contain the sequential increase in gross NPA levels to 7.4%. The

banks PCR remained largely stable sequentially at 61.0%. Net NPA levels came in

higher sequentially by 7.8%. Gross and Net NPA ratio marginally inched up 5bp

and 4bp qoq respectively to 3.0% and 2.1%. The Management has guided for

~`1,500cr of slippages in the next quarter and targets to contain its Gross and

Net NPA ratio at 2.95% and 1.95%, respectively for FY2014.

During the quarter, the bank restructured advances worth `755cr (compared to

`2,159cr restructured in 4QFY2013), thereby taking its total standard restructured

book to ~`16,231cr (~5.3% of its loan book).A large chunk of restructuring for

the bank has come from sectors like Infra (including Power), Aviation, Textiles, and

6.84 6.92

6.776.39 6.26

4.0

4.5

5.0

5.5

6.0

6.5

7.0

7.5


(%) Cost of funds

2.56

2.84 2.803.00 3.07

1.5

2.0

2.5

3.0

3.5


Reported NIM(%)


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July 29, 2013 6

Iron & Steel. Going ahead, as per the Management, the restructuring during the

next quarter is likely to be in the range of `800-1,000cr.

Exhibit 11:Slippages stabilize at 2.7%


Exhibit 12:NPA ratios stable sequentially


Exhibit 13:Cost ratios improve marginally qoq


Exhibit 14:Capital adequacy trends


2.8 4.4 2.0 2.7 2.7

0.5

1.5

0.6

1.0

0.5

-

0.3

0.6

0.9

1.2

1.5

1.8

(0.0)

0.7

1.4

2.1

2.8

3.5


Slippages (%) Credit cost (%, RHS)

2.6

3.4

3.1

3.0

3.0

1.7

2.0

2.0

2.1

2.1

60.961.0

60.7 60.9 61.0

55.0

59.0

63.0

-

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0


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

42

.0

40

.0

42

.8

41

.9

41

.4

1.21.2

1.41.4

1.3

1.2

1.2

1.3

1.3

1.4

1.4

38.0

39.0

40.0

41.0

42.0

43.0

44.0


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

8.3 8.1 7.6 8.2 8.0

3.1 3.03.0

2.8 2.7

11.4 11.110.6 11.0 10.7

-

4.0

8.0

12.0


Tier-I CAR (%) Tier-I I CAR (%)


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July 29, 2013 7

Investment arguments

Reasonably high fee income with a moderate funding mix

International operations contribute a substantial ~32.5% (29.0% yoy growth in

1QFY2014, partly on account of INR depreciation) to the banks advances.

International operations enable a wider spectrum of fee-based services to the

banks domestic corporate and retail customers; further, they enable foreign

currency fund-based services to Indian corporate, and savings products to the

banks PIO clients abroad. The bank has a moderate funding mix, with domestic

CASA ratio at 30.6% as of 1QFY2014.

Investment concerns

Asset quality remains on the radarAfter moderating in FY2011, asset quality pressures had again re-surfaced for the

bank over the last two years. In FY2012, the annualized slippage ratio for the bank

came in at 2.5%, while for FY2013 it increased to 2.9%. During 1QFY2014, the

annualized slippage rate came in at 2.7%. Going ahead, we remain cautious on

the incremental asset quality pressures (slippages and incremental restructuring)

for the bank, as we take into account the banks high exposure to stressed

sectors/companies, overall weak macro-economic environment and the recent

macro developments.

Tier-I Capital adequacy ratio remains relatively low

As of 1QFY2014, the banks CAR under Basel-II stood at 10.7%, with tier I at

7.98%. Under Basel-III, the banks CAR stands at 10.4%, with tier-I at ~7.6%,

lower vis--vis peers. Going forward, the bank plans to raise capital of ~`2,200cr

in the second half of the current fiscal, apart from any capital infusion from the

Government. Any capital raising for the bank is likely to be at book-decretive

valuations.

Outlook and valuation

Recent macro developments (RBI liquidity tightening measures) amidst a weak

macro-environment clearly indicate that the asset quality pressures for the banking

sector are unlikely to abate as quickly as was anticipated earlier and are most

likely to have a corresponding adverse implication on the sectors loan growth and

margins performance, going ahead. Our view on the sector as a whole and stock

in particular, largely depend on RBIs policy directions and its possible implications

on the sectors loan growth, margins and asset quality. Moreover, the bank is

expected to raise capital this fiscal, which is likely to be at book-dilutive valuations.

Currently, we recommend a Neutral rating on the stock.


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July 29, 2013 8

Exhibit 15:Key assumptionsParticulars (%) Earlier estimates Revised estimatesFY2014E FY2015E FY2014E FY2015ECredit growth 16.0 16.0 14.0 16.0Deposit growth 15.0 15.0 15.0 15.0

CASA ratio 25.2 25.3 25.2 25.3

NIMs 2.3 2.2 2.3 2.2

Other income growth 1.6 9.2 2.0 6.0

Growth in staff expenses 15.0 15.0 17.5 12.5

Growth in other expenses 15.0 15.0 15.0 15.0

Slippages 2.7 2.2 2.8 2.3

Coverage 65.0 67.5 60.0 65.0


Exhibit 16:Change in estimatesParticulars (` cr)

FY2014E FY2015EEarlierestimates Revisedestimates % chg Earlierestimates Revisedestimates % chg

NII 10,632 10,640 0.1 11,999 11,995 (0.0)

Non-interest income 3,826 3,842 0.4 4,177 4,074 (2.5)

Operating income 14,459 14,482 0.2 16,176 16,069 (0.7)Operating expenses 6,131 6,209 1.3 7,051 7,049 (0.0)

Pre-prov. profit 8,327 8,273 (0.7) 9,125 9,020 (1.2)Provisions & cont. 3,876 3,449 (11.0) 2,961 3,400 14.8

PBT 4,451 4,824 8.4 6,164 5,620 (8.8)

Prov. for taxes 1,157 1,544 33.4 2,095 1,910 (8.8)

PAT 3,294 3,280 (0.4) 4,069 3,710 (8.8)Source: Company, Angel Research

Exhibit 17:P/ABV band


0

200

400

600

800

1000

Mar-

02

Oc

t-02

May-0

3

Dec-0

3

Jul-04

Fe

b-0

5

Sep-0

5

Apr-

06

Nov-0

6

Jun-0

7

Jan-0

8

Aug-0

8

Mar-

09

Oc

t-09

May-1

0

Dec-1

0

Jul-11

Fe

b-1

2

Sep-1

2

Apr-

13

Nov-1

3

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


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July 29, 2013 9

Exhibit 18:Recommendation summaryCompany Reco. CMP(`) Tgt. price(`) Upside(%) FY2015EP/ABV (x) FY2015ETgt. P/ABV (x) FY2015EP/E (x) FY2013-15EEPS CAGR (%) FY2015ERoA (%) FY2015ERoE (%)AxisBk Buy 1,107 1,348 22 1.2 1.5 7.1 19.1 1.6 18.1

FedBk Neutral 347 - - 0.8 - 6.7 2.9 1.0 12.3

HDFCBk Buy 645 745 16 3.0 3.5 14.3 26.3 1.9 22.8

ICICIBk* Buy 932 1,131 21 1.3 1.6 9.4 17.4 1.6 16.2

SIB Neutral 22 - - 0.8 - 5.3 5.7 0.9 16.2

YesBk Neutral 367 - - 1.5 - 7.4 16.9 1.3 22.8

AllBk Neutral 76 - - 0.3 - 2.3 18.3 0.7 13.6

AndhBk Neutral 74 - - 0.5 - 3.2 (0.3) 0.7 13.2

BOB Neutral 573 - - 0.6 - 4.0 16.8 0.9 16.0

BOI Neutral 184 - - 0.4 - 3.0 16.2 0.7 13.9BOM Neutral 47 - - 0.5 - 3.6 10.0 0.6 15.3

CanBk Neutral 269 - - 0.4 - 3.1 15.4 0.8 14.2CentBk Neutral 55 - - 0.5 - 3.5 40.1 0.5 12.8

CorpBk Neutral 303 - - 0.4 - 2.9 5.7 0.7 14.2

DenaBk Neutral 59 - - 0.4 - 2.4 3.7 0.7 14.7

IDBI# Neutral 68 - - 0.4 - 3.1 25.1 0.8 13.3

IndBk Neutral 97 - - 0.3 - 2.4 7.0 0.9 14.7

IOB Neutral 45 - - 0.3 - 2.6 67.0 0.5 11.7

J&KBk Neutral 1,129 - - 0.9 - 5.4 (1.7) 1.2 16.8

OBC Neutral 157 - - 0.3 - 2.5 17.0 0.8 12.9

PNB Neutral 596 - - 0.6 - 3.6 10.8 1.0 15.7

SBI* Accumulate 1,765 1,979 12 1.0 1.1 6.2 17.5 1.0 17.0

SynBk Neutral 94 - - 0.5 - 3.4 (8.5) 0.6 14.6

UcoBk Neutral 62 - - 0.6 - 4.0 67.5 0.6 13.6

UnionBk Neutral 134 - - 0.4 - 2.8 14.7 0.7 15.2

UtdBk Neutral 43 - - 0.3 - 2.2 54.6 0.6 14.7

VijBk Neutral 42 - - 0.4 - 3.9 9.5 0.4 11.5

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

Company Background

Bank of India (BoI) is amongst the five largest banks in India, with a balance sheet

size of over `4.8lakh cr. The bank has a pan-India network of above 4,300branches, of which ~64% are located in rural and semi-urban areas. The bank

also has considerable presence overseas, which accounts for ~32% of its total

loans (amongst the highest in the Indian banking industry).


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July 29, 2013 10

Income statement (Standalone)Y/E March (` cr) FY10 FY11 FY12 FY13 FY14E FY15ENII 5,756 7,811 8,313 9,024 10,640 11,995- YoY Growth (%) 4.7 35.7 6.4 8.5 17.9 12.7Other Income 2,617 2,642 3,321 3,766 3,842 4,074- YoY Growth (%) (14.3) 1.0 25.7 13.4 2.0 6.0

Operating Income 8,373 10,452 11,635 12,790 14,482 16,069- YoY Growth (%) (2.1) 24.8 11.3 9.9 13.2 11.0

Operating Expenses 3,668 5,068 4,941 5,332 6,209 7,049- YoY Growth (%) 18.5 38.2 (2.5) 7.9 16.5 13.5

Pre - Provision Profit 4,705 5,384 6,694 7,459 8,273 9,020- YoY Growth (%) (13.8) 14.4 24.3 11.4 10.9 9.0

Prov. & Cont. 2,211 1,889 3,116 4,451 3,449 3,400- YoY Growth (%) 71.1 (14.6) 65.0 42.8 (22.5) (1.4)

Profit Before Tax 2,494 3,495 3,578 3,008 4,824 5,620- YoY Growth (%) (40.1) 40.2 2.3 (15.9) 60.4 16.5

Prov. for Taxation 753 1,007 900 258 1,544 1,910- as a % of PBT 30.2 28.8 25.2 8.6 32.0 34.0

PAT 1,741 2,489 2,678 2,750 3,280 3,710- YoY Growth (%) (42.1) 42.9 7.6 2.7 19.3 13.1

Balance sheet (Standalone)Y/E March (` cr) FY10 FY11 FY12 FY13 FY14E FY15EShare Capital 526 547 575 597 597 597Reserves & Surplus 13,704 16,743 20,387 23,322 25,905 28,813

Deposits 229,762 298,886 318,216 381,840 439,116 504,983

- Growth (%) 21.1 30.1 6.5 20.0 15.0 15.0

Borrowings 14,079 12,862 22,749 25,889 28,413 32,522

Tier 2 Capital 8,320 9,160 9,366 9,478 9,241 9,010

Other Liab & Prov. 8,590 12,975 13,243 11,477 13,335 15,390

Total Liabilities 274,982 351,173 384,535 452,603 516,607 591,315Cash balances 15,603 21,782 14,987 21,967 19,760 22,724

Bank balances 15,628 15,528 19,725 32,869 25,830 29,566

Investments 67,080 85,872 86,754 94,614 125,500 138,576

Advances 168,491 213,096 248,833 289,368 329,879 382,660

- Growth (%) 17.9 26.5 16.8 16.3 14.0 16.0

Fixed Assets 2,352 2,481 2,772 2,870 3,178 3,528

Other Assets 5,829 12,413 11,466 10,916 12,459 14,261

Total Assets 274,982 351,173 384,535 452,603 516,607 591,315- Growth (%) 21.9 27.7 9.5 17.7 14.1 14.5


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July 29, 2013 11

RatioanalysisY/E March FY10 FY11 FY12 FY13 FY14E FY15ENIMs 2.4 2.6 2.4 2.2 2.3 2.2

Cost to Income Ratio 43.8 48.5 42.5 41.7 42.9 43.9RoA 0.7 0.8 0.7 0.7 0.7 0.7

RoE 14.2 17.3 15.0 13.0 13.7 13.9

B/S ratios (%)CASA Ratio 27.8 25.4 26.7 25.6 25.2 25.3

Credit/Deposit Ratio 73.3 71.3 78.2 75.8 75.1 75.8

CAR 12.9 12.2 12.0 11.4 10.7 10.2

- Tier I 8.5 8.3 8.6 8.4 8.2 8.0

Asset Quality (%)Gross NPAs 2.9 2.2 2.3 3.0 4.0 4.3

Net NPAs 1.3 0.9 1.5 2.1 2.5 2.1

Slippages 2.9 1.7 2.5 2.9 2.8 2.3

Loan Loss Prov./Avg. Assets 0.7 0.3 0.6 0.9 0.6 0.5

Provision Coverage 65.5 72.2 64.2 60.9 60.0 65.0

Per Share Data (`)EPS 33.1 45.5 46.6 46.1 55.0 62.2

ABVPS 231.9 288.3 324.1 345.2 373.0 433.9

DPS 7.0 7.0 7.0 10.0 10.0 11.5

Valuation RatiosPER (x) 5.5 4.0 3.9 4.0 3.3 3.0

P/ABVPS (x) 0.8 0.6 0.6 0.5 0.5 0.4

Dividend Yield 3.8 3.8 3.8 5.4 5.4 6.3

DuPont Analysis (%)NII 2.3 2.5 2.3 2.2 2.2 2.2

(-) Prov. Exp. 0.9 0.6 0.8 1.1 0.7 0.6

Adj. NII 1.4 1.9 1.4 1.1 1.5 1.6

Treasury 0.2 0.1 0.1 0.1 0.1 0.0

Int. Sens. Inc. 1.7 2.0 1.5 1.2 1.6 1.6

Other Inc. 0.8 0.7 0.8 0.8 0.7 0.7

Op. Inc. 2.5 2.7 2.3 2.0 2.3 2.3

Opex 1.5 1.6 1.3 1.3 1.3 1.3

PBT 1.0 1.1 1.0 0.7 1.0 1.0Taxes 0.3 0.3 0.2 0.1 0.3 0.3

RoA 0.7 0.8 0.7 0.7 0.7 0.7Leverage (x) 20.4 21.8 20.6 19.7 20.2 20.7

RoE 14.2 17.3 15.0 13.0 13.7 13.9


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July 29 2013 12

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

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risks of such an investment.

Angel Broking Pvt. Ltd., 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 Pvt. Ltd. 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 Pvt. Ltd. has not independently verified all the information contained within this document. Accordingly, we cannottestify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.While Angel Broking Pvt. Ltd. endeavours to update on a reasonable basis the information discussed in this material, there may beregulatory, compliance, or other reasons that prevent us from doing so.

This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,

redistributed or passed on, directly or indirectly.

Angel Broking Pvt. Ltd. and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or

other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in

the past.

Neither Angel Broking Pvt. Ltd., 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 Pvt. Ltd. and its affiliates may haveinvestment positions in the stocks recommended in this report.

Disclosure of Interest Statement Bank of India

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

bank of india 1q fy 2014

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