Sector Review | Banking

August 27, 2012

Banking - 1QFY2013 Result Analysis

Economic environment challenging
1QFY2013 snapshot - Asset quality woes continue: The slippage levels in 1QFY2013 for PSU banks were higher by 27.7% qoq compared to an 11.2% qoq rise in 4QFY2012. However, slippages for State Bank of India (SBI) constituted 36.6% of the overall slippages in 1QFY2013 as compared to 18.9% in 4QFY2012. Hence, looking at the PSU segment excluding SBI, the slippage levels remained flattish sequentially (though high on absolute basis). Private banks vis--vis PSU banks continued to fare well on the asset quality front. However while for 4QFY2012 private banks had managed to reduce their gross and net NPAs levels by 2.0% and 8.6% qoq respectively, for 1QFY2013 they witnessed a 6.4% and 11.3% qoq rise in their gross and net NPA books. Private banks, aided by a strong performance at the operating income front, reported a 32.2% yoy growth in PBT levels, while PSU banks owing to higher margin compressions and provisioning expenses managed to grow their PBT by a moderate 10.3% yoy, which too was aided by a sharp decline in PCR, leading to a 17% qoq increase in net NPAs. ROAs expected to have a downward bias: Margins for the banking sector remained under pressure in 1QFY2013 on account of asset quality stress, with 19 out of 27 banks under our coverage reporting sequentially lower margins. Banks with higher NPAs during 1QFY2013 such as SBI and Bank of Baroda (BOB) witnessed the highest qoq margin compression. Any material downward movement in the lending and deposit rates for the banking sector is likely to be restricted given the high persistent inflation and the corresponding rate action outlook of the Reserve Bank of India (RBI). Meanwhile, the decelerating economic growth environment and elevated interest rates are pointing towards further economic stress and are expected to lead to further asset quality pressures for the banks. Hence, in our view, the movement in overall core ROAs is expected to have a negative bias over the coming quarters. Economic environment remains challenging; Continue to prefer private banks: The downward interest rate movement, going by the monsoon deficiency and recent rally in commodity prices, is expected to be much slower than anticipated earlier. In fact, inflation levels have the potential to inch up further from the current levels, thus certainly delaying the start of the downward interest rate cycle. The slippages which started off from particular stressed sectors of the economy such as real estate, airlines and textiles have become more broad-based in nature. Deficient monsoons and declaration of drought by some state governments could lead to fresh agri slippages and further aggravate the prevailing asset quality situation. Private banks, having structurally stronger balance sheets and cyclically better asset quality profiles hence remain our preferred segment choice with Yes Bank, Axis Bank and ICICI Bank being our top picks. While the entire PSU segment is relatively more burdened with rising asset quality concerns, a few banks such as Punjab National Bank and Union Bank are available at their 8-year low valuations and hence provide a case for value buys from an 18-24 month perspective.
Please refer to important disclosures at the end of this report

Banking indicators
Particulars* Latest yoy credit growth Latest yoy deposit growth Latest credit-to-deposit ratio Monthly Avg. LAF (` cr) Monthly Avg. 1 yr G-Sec yield Monthly Avg. 10 yr G-Sec yield Monthly Avg. 3M CP Monthly Avg. 12M CP (%) 17.8 14.5 75.2 47,058 8.0 8.2 8.6 9.1

Source: RBI, Bloomberg, Angel Research; Note*: Monthly averages are on preceding 30 day basis

Policy rates
Particulars Repo rate Reverse repo rate MSF rate Cash reserve ratio (CRR) Statutory liquidity ratio (SLR)
Source: RBI, Angel Research

(%) 8.0 7.0 9.0 4.75 23.00

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

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

Sourabh Taparia
022 3935 7800 Ext: 6872 sourabh.taparia@angelbroking.com

Banking | Sector Review

Margins expected to have a downward bias

Margins for the banking sector remained under pressure in 1QFY2013 on account of asset quality stress, with 19 out of 27 banks under our coverage reporting sequentially lower margins. Banks with higher NPAs during 1QFY2013 such as SBI and BOB witnessed the highest qoq margin compression.

Exhibit 1: Margins compressed for most banks

20.0 10.0 (10.0) (20.0) (30.0) (40.0) (50.0) (60.0) (70.0) (80.0)

Exhibit 2: Private banks* outperform on NII front yoy

30.0 25.0 20.0 15.0 10.0
26.8 23.7 14.2 (1.5) 2.5 3.0 14.0 0.1

% chg (yoy)

% chg (qoq)

5.0
INDBK OBC PNB HDFCBK CENTBK SIB UTDBK IDBI ICICIBK YESBK ANDBK ALLBK J&KBK CANBK CRPBK FEDBK DENABK IOB AXSB BOB UNBK BOM UCOBK VIJAYA SYNBK SBI BOI

0.0 Large Pvt (5.0) Other Pvt PSU PSU (excl. SBI)

Source: Company, Angel Research, Note:*Domestic NIMs for SBI, BOB and BOI

Source: Company, Angel Research, Note:*For banks under our coverage

Exhibit 3: CD ratios for banks under our coverage

Bank SYNBK HDFCBK CENTBK UCOBK IDBI ANDHBK IOB DENABK ICICIBK ALLBK J&KBK OBC BOB SBI CD ratio 1QFY2013 CD Ratio FY2012 78.3 79.2 75.2 75.0 86.1 79.0 78.9 73.5 99.3 69.6 62.0 71.8 74.7 83.1 82.1 82.8 78.3 76.9 87.5 80.4 80.2 74.8 100.2 70.4 62.6 72.0 74.7 83.1 Chg (bps) 386 363 311 185 144 140 138 133 93 77 55 22 1 (0) Bank AXSB BOI CRPBK YESBK UTDBK INDBK PNB VIJAYA SIB UNBK FEDBK BOM CANBK CD ratio 1QFY2013 CD Ratio FY2012 77.1 78.2 73.8 77.3 70.7 74.8 77.4 69.7 74.7 79.8 77.2 73.3 71.1 76.9 77.9 73.5 76.7 70.1 73.9 76.4 68.6 73.6 78.3 75.2 71.2 67.4 Chg (bps) (25) (27) (31) (54) (66) (86) (98) (113) (113) (152) (191) (206) (367)

Source: Company, Angel Research,

August 27, 2012

Banking | Sector Review

Exhibit 4: CASA yearly growth rate trends

Bank YESBK IDBI FEDBK AXSB J&KBK HDFCBK SIB ICICIBK UTDBK BOB BOI ANDHBK BOM SBI CORPBK PNB OBC CENTBK INDBK DENABK IOB UNIONBK ALLBK UCOBK CANBK SYNBK VIJBK SA 1QFY13 3,001 17,606 11,977 52,777 16,081 76,674 6,390 77,923 27,830 75,562 67,308 22,485 24,023 390,410 18,350 107,425 28,092 53,943 30,936 19,361 36,370 50,565 38,608 26,861 66,504 34,275 13,441 SA 1QFY12 654 13,639 9,451 42,899 13,204 64,785 5,464 66,858 24,120 65,654 58,838 19,721 21,106 344,387 16,200 94,875 24,875 47,867 27,500 17,280 32,488 45,413 34,800 24,569 60,912 31,505 13,414 yoy growth 359.2 29.1 26.7 23.0 21.8 18.4 16.9 16.6 15.4 15.1 14.4 14.0 13.8 13.4 13.3 13.2 12.9 12.7 12.5 12.0 12.0 11.3 10.9 9.3 9.2 8.8 0.2 CA 1QFY13 5,169 17,037 2,514 34,165 4,480 41,682 1,445 30,754 8,447 24,214 15,926 6,269 7,596 83,485 9,419 25,723 9,899 10,837 6,292 5,282 10,985 18,177 7,865 9,291 11,398 9,987 4,949 CA 1QFY12 4,111 16,838 2,247 31,515 4,198 38,811 1,326 29,796 6,914 21,567 15,329 5,581 6,526 85,971 8,600 26,384 8,880 12,686 6,720 4,963 9,179 17,335 8,055 6,272 15,193 9,841 4,613 yoy growth 25.7 1.2 11.9 8.4 6.7 7.4 9.0 3.2 22.2 12.3 3.9 12.3 16.4 (2.9) 9.5 (2.5) 11.5 (14.6) (6.4) 6.4 19.7 4.9 (2.4) 48.1 (25.0) 1.5 7.3 CASA 1QFY13 8,170 34,643 14,491 86,942 20,560 118,356 7,835 108,677 36,277 99,776 83,233 28,754 31,619 473,895 27,769 133,148 37,990 64,780 37,228 24,643 46,355 68,742 46,473 36,151 77,902 44,262 18,390 CASA 1QFY12 4,764 30,477 11,698 74,414 17,401 103,596 6,790 96,654 31,034 87,221 74,168 25,302 27,632 430,358 24,800 121,259 33,755 60,553 34,220 22,243 41,663 62,748 42,855 30,841 76,105 41,346 18,027 yoy growth 71.5 13.7 23.9 16.8 18.2 14.2 15.4 12.4 16.9 14.4 12.2 13.6 14.4 10.1 12.0 9.8 12.5 7.0 8.8 10.8 11.3 9.6 8.4 17.2 2.4 7.1 2.0 CASA Ratio 16.3 18.1 28.7 39.1 38.7 46.0 21.1 40.6 40.5 32.2 31.2 26.7 39.6 46.1 20.7 34.6 24.0 32.9 29.3 30.9 25.1 30.9 29.6 23.3 23.3 28.1 21.3

Source: Company, Angel Research

Savings growth has been moderating for the entire banking industry due to the high differential between the savings and the term deposit rates, while decelerating economic environment has led to current account deposits remaining flat yoy for most banks. Private banks however continued to outperform PSU banks on the savings account deposits (SA) front with Yes Bank witnessing the highest SA growth within banks under our coverage (significant traction being witnessed post the hike in savings rate to 6-7%). Large private banks fared well, with both - Axis Bank and HDFC Bank reporting a healthy growth of 23.0% and 18.4% yoy respectively. Growth in savings deposits was however relatively lower for ICICI Bank at 16.6% yoy (in line with its deposits growth). Federal Bank and South Indian Bank, despite deregulation of NRE-TD rates, managed to grow their NRE savings deposit franchise by 26.7% and 16.9% yoy respectively. IDBI Bank with 29.1% yoy growth (on account of traction in savings account deposits due to waiver of CASA charges during FY2012), J&K Bank with 21.8% yoy growth (insulation from competition in its parent state of J&K) and United Bank with 15.4% yoy growth (majority presence in eastern states of India) were the top 3 performers on the SA front within the PSU segment.
August 27, 2012

Banking | Sector Review

Exhibit 5: Yield on advances# for banks under our coverage

Bank SIB HDFCBK JKBK YESBK ICICIBK* VIJBK OBC AXSB ALBK UNBK UTDBK CANBK DENABK UCOBK YoA 1QFY2013 12.6 11.9 12.4 13.0 9.9 11.4 11.8 10.9 11.9 10.8 11.1 10.9 11.4 11.3 YoA 1QFY2012 11.4 10.8 11.4 12.2 9.0 10.7 11.1 10.1 11.2 10.1 10.5 10.3 10.7 10.8 Chg (bps) 112 110 99 87 86 77 74 73 68 63 62 62 61 48 Bank IOB BOM CRPBK INDBK SBI* PNB SYNDBK IDBI BOB* ANDBK BOI* FEDBK CNTBK YoA 1QFY2013 10.8 11.0 11.0 11.3 9.9 11.1 10.5 11.3 9.0 11.8 8.6 12.3 11.1 YoA 1QFY2012 10.4 10.6 10.6 11.0 9.6 10.8 10.2 11.0 8.8 11.8 8.6 12.2 11.0 Chg (bps) 42 39 38 38 36 30 30 28 16 7 5 5 3

Source: Company, Angel Research, Note:*including international operations for SBI, ICICI, BOI and BOB, #Calculated yields

Fee income performance modest for the quarter

Fee income growth (excluding treasury) was moderate at 11.5% yoy for banks under our coverage. The better performers on the fee income front within the PSU segment were Oriental Bank of Commerce (OBC), Bank of India (BOI) and Andhra bank (witnessed significant jump in recoveries from written-off accounts). Most banks however saw their fee income revenues moderate on account of slowing capital market activities and lower credit off-take and sanctions.

August 27, 2012

Banking | Sector Review

Exhibit 6: Other income (excl. treasury) performance for banks under our coverage
Bank OBC SIB BOI ANDHBK UTDBK J&KBK HDFCBK CENTBK BOB UNBK IDBI UCOBK ICICIBK PNB IOB CRPBK AXSB INDBK ALLBK SBI FEDBK SYNBK CANBK BOM VIJAYA DENABK 1QFY2013 422 55 740 211 134 73 1,463 220 689 436 473 220 1,901 1,030 401 285 1,185 200 255 3,278 98 222 594 155 103 110 4QFY2012 301 74 894 207 180 114 1,563 334 761 628 738 219 2,070 1,111 437 327 1,442 280 296 5,290 124 286 674 177 114 191 % chg (qoq) 40.1 (25.2) (17.1) 2.1 (25.2) (35.7) (6.4) (34.0) (9.4) (30.6) (35.9) 0.4 (8.2) (7.3) (8.1) (13.0) (17.8) (28.4) (14.0) (38.0) (21.0) (22.4) (11.9) (12.8) (10.1) (42.7) 1QFY2012 252 37 550 158 103 57 1,161 178 567 371 408 190 1,668 910 354 255 1,098 202 260 3,365 101 233 628 164 114 123 % chg (yoy) 67.3 49.8 34.5 33.9 30.0 28.7 26.0 23.9 21.6 17.6 16.0 15.5 14.0 13.2 13.2 11.6 8.0 (0.9) (2.1) (2.6) (2.8) (4.8) (5.4) (6.0) (10.3) (10.9)

Source: Company, Angel Research

August 27, 2012

Banking | Sector Review

No catalyst for improvement on the asset quality front

The entire FY2012 was riddled with asset quality concerns for the banking sector and further deteriorating economic growth environment and high interest servicing costs kept fresh slippages high in 1QFY2013 as well. The slippage levels in 1QFY2013 for the PSU banks were higher by 27.7% qoq compared to an 11.2% qoq rise in 4QFY2012. Slippages for SBI constituted 36.6% of the overall slippages in 1QFY2013 as compared to 18.9% in 4QFY2012. Hence, looking at the PSU segment excluding SBI, the slippage levels remained flattish sequentially (though high on absolute basis). The mid PSU banks such as Central Bank, Indian Bank, OBC, Allahabad Bank and United Bank, which had seen a sharp surge in slippages in 4QFY2012, managed to lower their slippage levels by 40-60% qoq, while banks such as SBI, BOI, Union Bank, IDBI Bank, Canara Bank and Corporation Bank witnessed much higher levels of slippages in 1QFY2013 compared to 4QFY2012 (low base for some of them).

Exhibit 7: Gross NPA trends (%) Private vs PSU

3.60 3.30 3.00 2.70 2.40 2.10 1.80 1.50 2.24 2.34 2.42 2.35 2.25 2.33 2.24 2.17 2.01 2.05 2.87 2.80 2.70 2.85 2.57 2.36 2.45 3.02 2.98 3.34

Exhibit 8: Net NPA trends (%) Private vs PSU

1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 1.06 0.92 0.79 1.10 1.12 1.13 1.07 1.08 1.16 1.73 1.47 1.56 1.50

0.69

0.55

0.56

0.54

0.54

0.46

0.49

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12
1.30

Pvt Banks

PSU Banks

Pvt Banks

PSU Banks

Source: Company, Angel Research

Source: Company, Angel Research

Exhibit 9: Gross NPA trend (%) for the banking industry

3.10 2.90 2.70 2.50 2.30 2.10 2.43 2.47 2.40 2.27 2.43 2.85 2.73 2.80 3.09

Exhibit 10: Net NPA trend (%) for the banking industry
1.50 1.40 1.30 1.20 1.10 1.00 0.90 1.08 1.36 1.28 1.49

1.07 1.00 0.98

1.04

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

Source: Company, Angel Research

Source: Company, Angel Research

August 27, 2012

1QFY13

1QFY13

Banking | Sector Review

Private banks vis--vis PSU banks continued to fare well on the asset quality front. However while for 4QFY2012 private banks had managed to reduce their gross and net NPA levels by 2.0% and 8.6% qoq respectively, for 1QFY2013 they witnessed a 6.4% and 11.3% qoq rise in their gross and net NPA books (13.6% and 17.0% qoq for PSU banks). Provisioning expenses for private banks hence were higher by 25.2% qoq and 4.0% yoy (34.9% qoq and 16.5% yoy rise for new private banks while a 14.2% qoq and 38.3% decline for old private banks). The slippages for most of the PSU banks during 1QFY2013 were higher on account of large ticket size NPAs mainly originating from the mid corporate and SME segments. The GDP growth targets have been revised downwards to 5.5-6% for FY2013 and with downward movement in interest rates expected to be much slower than earlier estimated, NPAs from the mid-corporate segment are expected to continue to flow going ahead as well. The rainfall has been deficit in almost all parts of the country and with many state governments near to declaring droughts in their states, agri loan books of the banks could also come under pressure in the coming quarters.

Exhibit 11: Asset quality continued to weaken during 1QFY2013

Bank SBI CRPBK UNBK BOI IDBI ANDHBK VIJAYA CANBK ICICIBK SIB FEDBK AXSB UCOBK BOB SYNBK BOM DENABK PNB IOB J&KBK ALLBK UTDBK OBC INDBK CENTBK Slippages (%) 1QFY013 5.0 2.9 3.7 2.6 2.3 4.0 3.3 2.6 1.3 1.3 3.1 1.1 3.0 1.8 3.4 3.1 1.4 3.8 2.5 1.0 2.1 1.9 2.5 1.0 3.8 Slippages (%) 4QFY2012 2.3 0.8 1.6 0.7 1.0 2.6 2.8 2.1 1.2 1.3 3.4 1.4 3.4 2.3 4.0 3.9 2.2 4.7 3.6 2.4 4.1 4.4 5.5 5.5 10.9 change (bps) 268 212 206 194 135 134 51 47 12 4 (30) (37) (41) (49) (54) (79) (82) (90) (118) (135) (199) (252) (297) (450) (717) qoq (%) GNPA 18.9 32.6 20.0 14.6 20.7 31.2 (1.5) 11.6 3.6 10.3 8.3 15.8 13.2 19.1 (3.3) (0.2) 12.5 14.5 12.5 4.7 5.0 1.6 (5.7) (16.0) 3.2 qoq (%) NNPA 28.5 36.4 23.9 20.7 19.5 71.0 (1.9) 10.9 2.4 24.4 18.7 28.0 15.5 19.5 (0.1) 17.0 4.4 10.4 12.8 (2.4) 9.1 2.8 (6.2) (19.5) 6.5 PCR 1QFY13 (%) 64.3 61.0 59.0 60.9 65.5 60.4 64.1 66.5 80.6 67.7 83.2 71.1 52.7 65.3 80.7 79.3 75.6 62.8 67.1 94.1 73.6 69.3 64.4 75.1 40.8 PCR 4QFY12 (%) 68.1 65.3 62.2 64.2 68.3 71.1 62.4 67.6 80.4 71.4 84.7 73.8 54.4 65.4 80.1 80.4 75.5 62.7 67.7 93.8 74.0 69.2 61.5 70.1 40.6 change (bps) (381) (428) (322) (332) (278) (1,075) 172 (106) 23 (365) (146) (275) (167) (10) 65 (103) 9 8 (57) 33 (43) 17 290 495 14

Source: Company, Angel Research

August 27, 2012

Banking | Sector Review

Exhibit 12: Aggregate gross NPA levelsPrivate Banks

Bank (` cr) Pvt. New Pvt. Old Total 1QFY13 15,154 4,255 19,409 4QFY12 14,326 3,914 18,240 1QFY12 14,370 3,625 17,995 %yoy 5.5 17.4 7.9 %qoq 5.8 8.7 6.4

Exhibit 13: Aggregate gross NPA levels PSU Banks

Bank (` cr) PSU Large PSU Med Total 1QFY13 85,749 38,400 124,149 4QFY12 72,788 36,453 109,241 1QFY12 52,553 24,631 77,184 %yoy 63.2 55.9 60.8 %qoq 17.8 5.3 13.6

Source: Company, Angel Research

Source: Company, Angel Research

Exhibit 14: Aggregate net NPA levels Private Banks

Bank (` cr) Pvt. New Pvt. Old Total 1QFY13 3,370 1,300 4,670 4QFY12 3,035 1,161 4,197 1QFY12 3,383 962 4,345 %yoy (0.4) 35.2 7.5 %qoq 11.0 12.0 11.3

Exhibit 15: Aggregate net NPA levels PSU Banks

Bank (` cr) PSU Large PSU Med Total 1QFY13 42,480 21,605 64,084 4QFY12 34,795 19,998 54,794 1QFY12 24,920 11,303 36,223 %yoy 70.5 91.1 76.9 %qoq 22.1 8.0 17.0

Source: Company, Angel Research

Source: Company, Angel Research

Restructuring books too become heavier

Almost all banks resorted to higher restructuring during 1QFY2013 similar to last quarter with loans to state electricity boards (SEBs; discoms majorly) again being the primary contributors to bad loans. Canara Bank (up 78.0% qoq) and Allahabad Bank (up 68.8% qoq) witnessed highest sequential rises in their restructuring books. Mid PSU banks such as Central Bank (13.4%), Indian Bank (10.6%) and Allahabad Bank (9.7%) have the highest restructuring book as a percentage of their total advances, while private banks restructuring books only amounted to 0-2% of their total advances. While most banks have stated that a majority of discom restructuring is over for them, fresh approvals through the CDR route (`17,957cr in 1QFY2013 vs `8,001 in 4QFY2012) however, are likely to lead to higher private restructuring in the coming quarters. Hence, although the pace of fattening of restructuring books is expected to slow down, large ticket size private restructuring is expected to keep the restructuring pipeline of most banks active.

August 27, 2012

Banking | Sector Review

Exhibit 16: Restructuring book as of 1QFY2013

Bank (` cr) CENTBK INDBK ALLBK OBC IOB PNB CRPBK ANDHBK BOI UNBK UCOBK DENABK UTDBK IDBI SYNBK CANBK VIJAYA FEDBK BOB SIB SBI AXSB ICICIBK YESBK HDFCBK
Source: Company, Angel Research

1QFY13 20,686 9,918 10,727 10,954 13,368 25,519 8,352 6,769 20,589 13,521 9,200 4,255 4,093 10,886 8,302 14,056 3,629 2,238 15,745 1,195 36,904 3,827 4,172 197 640

4QFY12 17,347 8,902 6,353 9,510 12,641 25,009 7,539 5,955 17,574 11,879 7,300 3,410 3,106 10,037 6,200 7,896 2,939 2,036 15,084 1,021 37,168 3,060 4,256 201 782

Ch.qoq (%) 19.2 11.4 68.8 15.2 5.8 2.0 10.8 13.7 17.2 13.8 26.0 24.8 31.8 8.5 33.9 78.0 23.5 9.9 4.4 17.0 (0.7) 25.1 (2.0) (2.4) (18.1)

% of adv. 13.4 10.6 9.7 9.6 9.0 8.7 8.5 7.8 7.8 7.8 7.7 7.1 6.5 6.5 6.4 6.2 6.1 5.9 5.5 4.4 4.0 2.2 1.6 0.5 0.3

August 27, 2012

Banking | Sector Review

Exhibit 17: CDR Snapshot

Year (` cr) FY10 FY11 1QFY12 2QFY12 3QFY12 4QFY12 FY12 1QFY13 Outstanding
Source: Company, Angel Research

Referred No. of cases 31 49 18 18 23 28 87 41 433 Additions 20,175 22,614 4,595 21,095 19,187 23,012 67,889 20,528 227,021

Approved No. of cases 31 27 10 7 17 16 50 17 309 Additions 17,763 6,615 8,141 2,095 21,364 8,001 39,601 17,957 168,472

Larger banks perform relatively better on earnings front

Public sector banks posted a weak to moderate set of results for 1QFY2013. On the operating income front, large PSU banks excluding SBI registered a moderate growth of 15.0% yoy (including SBI, growth was lower at 12.9% yoy), while the growth in the mid-PSU segment was also modest at 11.6% yoy.

Exhibit 18: Large PSU P&L (excl. SBI)

Parameter (` cr) NII Other Income Operating Income Operating Expenses Pre provision profit Provisions PBT Tax Net Profit % chg % chg 1QFY13 4QFY12 1QFY12 (qoq) (yoy)

Exhibit 19: Mid PSU P&L

Parameter (` cr)

1QFY13 4QFY12 13,707 3,509 17,216 7,594 9,622 3,987 5,635 1,230 4,406 13,470 17,623 9,184 3,826 3,701

% chg 1QFY12 (qoq)

% chg (yoy)

13,473 4,478 17,951 7,406 10,545 3,842 6,703 1,717 4,986

13,736 19,179 7,904 11,275 3,825 1,182

(1.9) (6.4) (6.3) (6.5) 0.4 45.3

11,765 3,851 15,616 6,460 9,155 3,050 6,105 4,181

14.5 16.3 15.0 14.6 15.2 26.0 9.8 19.3

NII Other Income Operating Income Operating Expenses Pre provision profit Provisions PBT Tax

1.8 (2.3) 4.8 47.3 19.0

12,097 3,327 15,424 6,801 8,623 3,546 5,077 1,297 3,780

13.3 5.5 11.6 11.6 11.6 12.4 11.0 (5.2) 16.6

5,442 (17.7)

4,153 (15.5) 8,439 (10.0) 5,357 (25.6) 125 881.0

7,450 (10.0) 6,268 (20.5)

1,924 (10.8)

Net Profit

Source: Company, Angel Research

Source: Company, Angel Research

Provisioning expenses were significantly up in 1QFY2013 across all PSU banks on back of continued fresh slippages leading to moderate growth in PBT levels (9.8% for large PSU and 11.0% for mid PSU). Lower tax expenses on account of higher provisioning expenses propped up bottom-line growth to 19.3% and 16.6% yoy for large and mid PSU banks respectively.

August 27, 2012

10

Banking | Sector Review

Exhibit 20: New Pvt. P&L

Parameter (` cr) NII Other Income Operating Income Operating Expenses Pre provision profit Provisions PBT Tax Net Profit % chg % chg 1QFY13 4QFY12 1QFY12 (qoq) (yoy)

Exhibit 21: Old Pvt. P&L

Parameter (` cr) NII Other Income Operating Income Operating Expenses Pre provision profit Provisions PBT Tax Net Profit

1QFY13 4QFY12 1,968 719 2,687 1,367 1,320 207 1,113 334 779 1,914 805 2,719 1,450 1,269 241 1,028 283 745

% chg 1QFY12 (qoq)

% chg (yoy)

10,534 5,593 16,127 7,321 8,806 1,330 7,476 2,281 5,195

10,240 6,121 16,360 7,543 8,817 986 7,831 2,407 5,424

2.9 (8.6) (1.4) (2.9) (0.1) 34.9 (4.5) (5.2) (4.2)

8,295 4,540 12,835 5,986 6,849 1,142 5,707 1,699 4,008

27.0 23.2 25.6 22.3 28.6 16.5 31.0 34.3 29.6

2.8 (10.6) (1.2) (5.7) 4.0 (14.2) 8.3 18.0 4.6

1,614 624 2,238 1,114 1,124 336 788 204 584

21.9 15.3 20.1 22.7 17.5 (38.3) 41.2 63.9 33.3

Source: Company, Angel Research

Source: Company, Angel Research

Private banks continued with their impressive performance in 1QFY2013 with earning growth of 30.1%; however asset quality pressures were visible during the quarter which resulted in higher provisioning expenses for the new private banks (up 16.5% yoy). The older private banks reported to lower provisioning expenses (down 38.3% yoy) despite a 17.4% increase in their gross NPAs on account of lower provisioning (net NPAs up by 35.2% yoy).

Exhibit 22: Advances growth (%)

Banks-Type Large PSU Mid PSU New Pvt. Old Pvt. Grand Total 1QFY13 % chg 4QFY12 (qoq) 1QFY12 % chg (yoy)

Exhibit 23: Deposits growth (%)

Banks-Type Large PSU Mid PSU New Pvt. Old Pvt. Grand Total 1QFY13 4QFY12 % chg (qoq) 1QFY12 % chg (yoy)

2,357,536 1,374,589 771,011 159,180 4,662,316

2,320,938 1,354,885 731,040 157,070 4,563,933

1.6 1.5 5.5 1.3 2.2

1,994,015 1,149,609 623,384 128,384 3,895,392

18.2 19.6 23.7 24.0 19.7

2,958,479 1,831,198 884,872 212,980 5,887,528

2,886,738 1,807,245 852,361 207,028 5,753,372

2.5 1.3 3.8 2.9 2.3

2,555,820 1,582,120 735,313 178,205 5,051,458

15.8 15.7 20.3 19.5 16.6

Source: Company, Angel Research; Note:*excluding DHB and LVB

Source: Company, Angel Research; Note:*excluding DHB and LVB

Exhibit 24: DuPont analysis

Pvt. New* Parameter NII (-) Prov. Exp. Adj NII Treasury FY11 3.1 0.6 2.5 0.0 2.5 1.8 4.3 2.2 2.1 0.6 1.5 10.4 15.1 FY12 3.1 0.4 2.7 (0.0) 2.7 1.7 4.4 2.2 2.2 0.7 1.5 10.9 16.5 FY13E 3.2 0.4 2.8 0.0 2.8 1.7 4.5 2.2 2.3 0.7 1.6 11.4 17.8 FY14E 3.3 0.4 2.9 0.0 2.9 1.7 4.6 2.3 2.3 0.8 1.6 12.1 19.1 FY11 2.8 0.7 2.1 0.1 2.2 1.0 3.2 1.8 1.4 0.5 0.9 18.1 16.8 PSU Large FY12 2.8 0.8 2.0 0.0 2.0 0.9 3.0 1.6 1.3 0.4 0.9 18.6 17.2 FY13E 2.8 0.8 2.1 0.0 2.1 0.9 3.0 1.6 1.4 0.4 0.9 17.7 16.7 FY14E 2.9 0.8 2.1 0.0 2.1 0.9 3.0 1.6 1.4 0.5 1.0 18.1 17.2 FY11 2.8 0.8 2.1 0.1 2.2 0.7 2.8 1.7 1.2 0.3 0.9 21.5 18.4 PSU Mid FY12 2.7 0.9 1.7 0.1 1.8 0.6 2.5 1.5 1.0 0.2 0.8 21.0 16.0 FY13E 2.7 0.8 1.9 0.0 2.0 0.6 2.6 1.5 1.1 0.3 0.8 20.4 16.2 FY14E 2.8 0.7 2.0 0.0 2.1 0.6 2.7 1.5 1.2 0.4 0.8 20.6 16.0

Int. Sens. Inc.

Other Inc. Op. Inc. Opex PBT Taxes ROA Leverage ROE

Source: Company, Angel Research, Note: *our coverage universe only

August 27, 2012

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Banking | Sector Review

Outlook and valuation

The downward interest rate movement, going by the monsoon deficiency and recent rally in commodity prices is expected to be much slower than anticipated earlier. In fact, inflation levels have the potential to inch up further from the current levels thus certainly delaying the start of the downward interest rate cycle. The slippages which started off from particular stressed sectors of the economy such as real estate, airlines and textiles have become more broad-based in nature. Deficient monsoons and declaration of drought by some state governments could lead to fresh agri slippages and further aggravate the prevailing asset quality situation. Private banks, having structurally stronger balance sheets and cyclically better asset quality profile hence remain our preferred segment choice with Yes Bank, Axis Bank and ICICI Bank being our top picks. While the entire PSU segment is relatively more burdened with rising asset quality concerns, few banks such as PNB and Union Bank are available at their 8-year low valuations and hence provide a case for value buys from an 18-24 month perspective.

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Banking | Sector Review

Exhibit 25: 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 Buy Buy Neutral Neutral Buy Buy Accumulate Buy Accumulate Buy Buy Buy Buy Buy Accumulate Buy Buy Buy Buy Neutral Buy Buy Neutral CMP (`) 1,039 415 595 935 22 337 123 93 625 266 44 324 65 375 87 84 163 69 938 222 680 1,846 93 64 155 52 49 Tgt. price (`) 1,373 458 1,169 27 453 829 323 47 421 70 436 107 101 190 80 1,026 278 950 2,270 119 230 79 Upside (%) 32 11 25 20 35 33 21 7 30 7 16 23 20 16 16 9 25 40 23 27 49 52 FY2014E P/ABV (x) 1.4 1.0 3.4 1.5 0.9 1.7 0.5 0.6 0.7 0.6 0.6 0.6 0.6 0.5 0.5 0.5 0.6 0.4 0.8 0.5 0.7 1.2 0.5 0.6 0.5 0.4 0.6 FY2014E Tgt. P/ABV (x) 1.9 1.1 1.9 1.1 2.3 1.0 0.8 0.6 0.8 0.7 0.6 0.7 0.6 0.7 0.5 0.9 0.6 1.0 1.4 0.7 0.8 0.6 FY2014E P/E (x) 7.3 7.1 16.5 11.4 5.3 7.9 3.0 3.8 4.2 3.7 3.9 3.8 3.0 3.4 3.4 3.6 3.6 3.1 4.9 3.4 3.9 7.1 3.2 3.6 3.1 2.3 4.3
#

FY2012-14E EPS CAGR (%) 18.1 12.1 27.9 20.9 9.0 24.2 4.6 0.9 10.1 23.5 35.6 7.2 103.6 2.1 5.1 21.2 6.4 31.0 7.6 29.0 9.9 21.8 15.7 11.7 23.6 23.2 13.0

FY2014E RoA (%) 1.6 1.3 1.8 1.4 0.9 1.5 0.9 0.9 1.0 0.8 0.6 0.8 0.6 0.8 0.8 0.9 1.1 0.6 1.3 0.9 1.0 1.0 0.8 0.6 0.8 0.8 0.5

FY2014E RoE (%) 20.8 14.7 22.0 15.5 18.5 23.8 17.0 15.3 18.0 17.0 15.5 15.3 15.1 16.3 16.4 14.7 17.4 14.4 18.0 14.3 18.0 17.8 17.8 15.3 17.1 16.7 13.3

Source: Company, Angel Research; Note:*Target multiples=SOTP Target Price/ABV (including subsidiaries), CMP as of 27th August, 2012.

Without adjusting for SASF,

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Banking indicators watch

Exhibit 26: Credit and deposit growth trends
Credit growth (%) 24.0 22.0 20.0 18.0 16.0 14.0 12.0 10.0 Deposit growth (%)

Exhibit 27: Investment-Deposit ratio

Credit/Deposit (%) 80.0 78.0 76.0 74.0 72.0 Investment/Deposit (%) 32.0 31.0 30.0 29.0 28.0 27.0
Feb-12 Sep-11 Jul-11 May-11 May-12 Dec-11 Jun-11 Jan-12 Jun-12 Jul-12 Jun-12 Aug-11 Mar-12 Nov-11 Aug-12 Jul-12 Jun-12 Jul-12 Aug-12 Aug-12 Apr-11 Oct-11 Apr-12

Feb-12

Sep-11

Jul-11

May-11

May-12

Dec-11

Jun-11

Aug-11

Jan-12

Jun-12

Jul-12

Source: RBI, Angel Research

Nov-11

Mar-12

Aug-12

Oct-11

Apr-12

70.0

Source: RBI, Angel Research

Exhibit 28: CP rates have eased considerably...

(%) 13.0 12.0 11.0 10.0 9.0 8.0 7.0 6.0
Dec-11 Aug-11 Jan-12 Jun-12 Mar-12 Nov-11 May-12 Aug-12 Oct-11 Feb-12 Apr-12 Sep-11 Jul-12

Exhibit 29: ...similar to CD rates

(%) 12.0 11.0 10.0 9.0 8.0 7.0 6.0
Feb-12 Sep-11 May-12 May-12 Apr-12 Dec-11 Aug-11 Jan-12 Mar-12 Oct-11 Nov-11 Apr-12

CP 3M

CP 12M

CD 3M

CD 12M

Source: RBI, Angel Research

Source: Bloomberg, Angel Research

Exhibit 30: LAF borrowings

( ` bn) 500 (500) (1,000) (1,500) (2,000) (2,500)
Sep-11 Feb-12 May-12 Dec-11 Jan-12 Jun-12 Jul-12 Nov-11 Mar-12 Aug-12 Oct-11 Apr-12

Exhibit 31: Forex reserves depleting on adverse BOP situation

US$ Bn 340 320 300 280 260 240
Feb-12 Dec-11 Dec-11 Feb-12 Sep-11 Sep-11 Jan-12 Nov-11 Mar-12 Oct-11 Apr-12 Jun-12

Source: RBI, Angel Research

Source: RBI, Angel Research

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Banking | Sector Review

Exhibit 32: Corporate and government bond yields

(%) 10.0 9.5 9.0 8.5 8.0
9.75 9.41 9.55 9.45 9.45 9.47 9.40 9.45 8.26 8.07 8.18 8.00 8.38 8.18

Exhibit 33: G-Sec yields spread vs Repo rate

4.0 3.0 2.0 1.0 8.50 8.21

24-May-12

24-Aug-12

G-Sec 1Yr and 10Yr Spread (%)

Repo Rate (%, RHS)

9.5 8.5 7.5 6.5 5.5 4.5

7.5 7.0

(1.0)
Dec-05 Dec-10 Jun-08 Aug-07 Mar-07 Nov-08 May-06 May-11 Mar-12 Aug-12 Jan-08 Apr-09 Oct-06 Feb-10 Sep-09 Oct-11 Jul-10

AAA 1 Yr AAA 3 Yr AAA 5 Yr AAA 10 Gsec 1Yr Gsec 3Yr Gsec 5Yr Yr

Gsec 10Yr

Source: Bloomberg, Angel Research; Note:*5yr Gsec. as of 14th August

Source: Bloomberg, Angel Research

Sectoral and Industry-wise distribution of credit

Exhibit 34: Credit growth driven by industry sector
Sector Agriculture Industry - Micro & Small - Medium - Large Services Personal Loans - Housing - Vehicle Non-food Credit
Source: RBI, Angel Research

June 2011 (` cr) 453,812 1,667,577 233,383 187,105 1,247,090 892,281 695,257 358,828 82,330 3,708,927 % of total 12.2 45.0 6.3 5.0 33.6 24.1 18.7 9.7 2.2 100.0 (` cr) 529,873 2,006,890 262,166 200,576 1,544,148 1,062,675 799,488 413,384 98,928 4,398,926

June 2012 % of total 12.0 45.6 6.0 4.6 35.1 24.2 18.2 9.4 2.2 100.0 % chg (yoy) 16.8 20.3 12.3 7.2 23.8 19.1 15.0 15.2 20.2 18.6

Exhibit 35: Strong growth being witnessed in Metals & Engineering

Industry Infrastructure Metals Textiles Engineering Chemicals Food Processing Oil and Gas Construction Vehicles Gems & Jewellery Other Industries Total
Source: RBI, Angel Research

June 2011 (` cr) 552,682 214,921 146,145 95,824 92,287 86,482 64,202 50,668 46,420 41,559 276,385 1,667,575 % of total 33.1 12.9 8.8 5.7 5.5 5.2 3.9 3.0 2.8 2.5 16.6 100.0 (` cr) 625,773 263,122 157,509 121,376 111,255 103,642 80,328 58,621 57,849 53,025 374,389 2,006,889

June 2012 % of total 31.2 13.1 7.8 6.0 5.5 5.2 4.0 2.9 2.9 2.6 18.7 100.0 % chg (yoy) 13.2 22.4 7.8 26.7 20.6 19.8 25.1 15.7 24.6 27.6 35.5 20.3

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Banking | Sector Review

Valuation watch
Exhibit 36: Private banks* P/ABV trends
P/ABV 3.40 3.00 2.60 2.20 1.80 1.40 1.00 0.60
Dec-10 Dec-05 Jun-08 Jan-08 Aug-12 Aug-07 Mar-12 Apr-09 Mar-07 Apr-04 Oct-11 Oct-06 Feb-10 Nov-08 Feb-05 Jul-10 Sep-09 Jul-05 Sep-04 May-11 May-06

Exhibit 37: Public sector banks P/ABV trends

85th percentile P/ABV 1.80 1.50 1.20 0.90 0.60 0.30
Dec-05 Dec-10 Jan-08 Jun-08 Aug-07 Mar-07 Nov-08 May-06 May-11 Aug-12 Mar-12 Mar-12 Mar-12 Apr-04 Apr-09 Oct-06 Feb-05 Feb-10 Sep-04 Sep-09 Oct-11 Oct-11 Oct-11 Jul-05 Jul-10

Median

15th percentile

Median

15th percentile

85th percentile

Source: Company, Angel Research; Note: *pvt. banks under our coverage

Source: Company, Angel Research

Exhibit 38: Large private banks P/ABV trends

P/ABV 3.40 3.00 2.60 2.20 1.80 1.40 1.00 0.60
Dec-10 Dec-05 Jun-08 Jan-08 Aug-12 Aug-07 Mar-12 Apr-09 Mar-07 Apr-04 Oct-06 Oct-11 Feb-10 Nov-08 Feb-05 Jul-10 Sep-09 Jul-05 Sep-04 May-11 May-06

Exhibit 39: Large public sector banks P/ABV trends

P/ABV 2.10 1.80 1.50 1.20 0.90 0.60 0.30
Dec-05 Dec-10 Jan-08 Jun-08 Aug-07 Mar-07 Nov-08 May-06 May-11 Aug-12 Apr-04 Oct-06 Apr-09 Feb-05 Feb-10 Sep-04 Sep-09 Jul-05 Jul-10

Median

15th percentile

85th percentile

Median

15th percentile

85th percentile

Source: Company, Angel Research

Source: Company, Angel Research

Exhibit 40: Small private* banks P/ABV trends

P/ABV 2.40 2.10 1.80 1.50 1.20 0.90 0.60 0.30
Dec-10 Dec-05 Jun-08 Jan-08 Aug-12 Aug-07 Mar-12 Apr-09 Mar-07 Apr-04 Oct-06 Oct-11 Feb-10 Nov-08 Feb-05 Jul-10 Sep-09 Jul-05 Sep-04 May-11 May-06

Exhibit 41: Mid-cap* public sector banks P/ABV trends

P/ABV 1.80 1.50 1.20 0.90 0.60 0.30
Dec-05 Dec-10 Jan-08 Jun-08 Aug-07 Mar-07 Nov-08 May-06 May-11 Aug-12 Apr-04 Oct-06 Apr-09 Feb-05 Feb-10 Sep-04 Sep-09 Jul-05 Jul-10

Median

15th percentile

85th percentile

Median

15th percentile

85th percentile

Source: Company, Angel Research; Note: *Small pvt. banks under our coverage

Source: Company, Angel Research, Note:*Mid and small PSU banks

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Economy watch
Exhibit 42: Quarterly GDP trends
(%) 10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0
4QFY09 1QFY10 2QFY10 3QFY10 4QFY10 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

Exhibit 43: IIP trends

(%)

9.8

9.4 8.5 7.6 8.2

9.2 8.0 6.7 6.1 5.3

8.0 6.0 6.0 4.0 2.0 3.7 3.4 2.5 2.7 1.0 4.3 2.5

7.5 5.9

7.4

Sep-11

Feb-12

Jul-11

May-12 Jun-12

Dec-11

Aug-11

Jan-12

Mar-12

(2.0) (4.0) (6.0)

Nov-11

Oct-11

Apr-12

(2.8) (0.9) (5.0)

(1.8)

Source: CSO, Angel Research

Source: MOSPI, Angel Research

Exhibit 44: Monthly WPI inflation trends

(%) 12.0 10.0 8.0 6.0 4.0 2.0 0.0 9.8 10.0 9.9 9.5 7.7 6.9 7.4 7.7 7.5 7.6 7.3 6.9

Exhibit 45: Manufacturing and services PMI

60.0 58.0 56.0 54.0 52.0 50.0 48.0 Mfg. PMI Services PMI

Dec-11

Aug-11

Jan-12

Nov-11

Mar-12

Sep-11

Oct-11

Feb-12

Apr-12

Jul-11

Feb-12

Sep-11

May-12

Dec-11

Aug-11

Jan-12

Source: MOSPI, Angel Research

Nov-11

Mar-12

Oct-11

Apr-12

Jun-12

Source: Markit, Angel Research

Exhibit 46: Exports and imports growth trends

(%) 75.0 60.0 45.0 30.0 15.0 0.0 Exports yoy growth Imports yoy growth

Exhibit 47: Policy rates - RBI

(%) 9.00

Repo rate

Reverse Repo rate

May-12

Jul-12

CRR 8.00 7.00

8.00 7.00 6.00 5.00

4.75

Dec-11

Aug-11

Jan-12

Mar-12

Nov-11

Oct-11

Feb-12

Sep-11

Apr-12

May-12

Jun-12

Jul-11

Sep-11

Feb-12

May-12

Dec-11

Aug-11

Jan-12

Jun-12

Jul-12

Mar-12

(30.0)

Source: Bloomberg, Angel Research

Source: Office of the Economic Adviser, Angel Research

August 27, 2012

Nov-11

Aug-12

Oct-11

Apr-12

(15.0)

4.00

Jul-12

Jun-12

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Banking | Sector Review

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.

August 27, 2012

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Banking | Sector Review

Disclosure of Interest Statement

Analyst ownership of the stock 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 No No No No No No No No No No No No No No No No No No No No No No No No No No No Angel and its Group companies ownership of the stock Yes No No No No No No No No No No No No No No No No No No No No No No No No No No Angel and its Group companies' Directors ownership of the stock Yes No No No No No No No No No No No No No No No No No No No No Yes No No No No No Broking relationship with company covered No No No No No No No No No No No No No No No No No No No No No No No 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%)

August 27, 2012

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Banking | Sector Review

6th Floor, Ackruti Star, Central Road, MIDC, Andheri (E), Mumbai- 400 093. Tel: (022) 39357800
Research Team Fundamental: Sarabjit Kour Nangra Vaibhav Agrawal Bhavesh Chauhan Sharan Lillaney V Srinivasan Yaresh Kothari Nitin Arora Ankita Somani Varun Varma Saurabh Taparia Rahul Kaul Bhupali Gursale Vinay Rachh Amit Patil Shareen Batatawala Twinkle Gosar Tejashwini Kumari Technicals: Shardul Kulkarni Sameet Chavan Sacchitanand Uttekar Derivatives: Siddarth Bhamre Institutional Sales Team: Mayuresh Joshi Hiten Sampat Meenakshi Chavan Gaurang Tisani Akshay Shah Production Team: Tejas Vahalia Dilip Patel Research Editor Production tejas.vahalia@angelbroking.com dilipm.patel@angelbroking.com VP - Institutional Sales Sr. A.V.P- Institution sales Dealer Dealer Sr. Executive mayuresh.joshi@angelbroking.com hiten.sampat@angelbroking.com meenakshis.chavan@angelbroking.com gaurangp.tisani@angelbroking.com akshayr.shah@angelbroking.com Head - Derivatives siddarth.bhamre@angelbroking.com Sr. Technical Analyst Technical Analyst Technical Analyst shardul.kulkarni@angelbroking.com sameet.chavan@angelbroking.com sacchitanand.uttekar@angelbroking.com VP-Research, Pharmaceutical VP-Research, Banking Sr. Analyst (Metals & Mining) Analyst (Mid-cap) Analyst (Cement, Power, FMCG) Analyst (Automobile) Analyst (Infra) Analyst (IT, Telecom) Analyst (Banking) Analyst (Banking) Analyst (Cap Goods, Real Estate) Economist Research Associate Research Associate Research Associate Research Associate Research Associate sarabjit@angelbroking.com vaibhav.agrawal@angelbroking.com bhaveshu.chauhan@angelbroking.com sharanb.lillaney@angelbroking.com v.srinivasan@angelbroking.com yareshb.kothari@angelbroking.com nitin.arora@angelbroking.com ankita.somani@angelbroking.com varun.varma@angelbroking.com sourabh.taparia@angelbroking.com rahul.kaul@angelbroking.com bhupali.gursale@angelbroking.com vinay.rachh@angelbroking.com amit.patil@angelbroking.com shareen.batatawala@angelbroking.com gosar.twinkle@angelbroking.com tejashwini.kumari@angelbroking.com

Angel Broking Ltd: BSE Sebi Regn No : INB 010996539 / CDSL Regn No: IN - DP - CDSL - 234 - 2004 / PMS Regn Code: PM/INP000001546 Angel Securities Ltd:BSE: INB010994639/INF010994639 NSE: INB230994635/INF230994635 Membership numbers: BSE 028/NSE:09946 Angel Capital & Debt Market Ltd: INB 231279838 / NSE FNO: INF 231279838 / NSE Member code -12798 Angel Commodities Broking (P) Ltd: MCX Member ID: 12685 / FMC Regn No: MCX / TCM / CORP / 0037 NCDEX : Member ID 00220 / FMC Regn No: NCDEX / TCM / CORP / 0302

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