bank of india, 4th february, 2013

7/29/2019 Bank of India, 4th February, 2013

1/12

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

Pre-prov. profit 1,856 1,854 0.1 1,732 7.2

Source: Company, Angel Research

During 3QFY2013, Bank of India reported a net profit growth of 12.2% yoy,mainly aided by lower tax expenses, while the earnings at PBT level declined by9.5% yoy. Key highlight from the results was the moderation witnessed on theslippages front.

During 3QFY2013, the

overall advances for the bank registered a healthy growth by 20% yoy. Domesticadvances grew by 15.7% yoy (aided by strong growth in agri segment and higherlending in segments such as corporate and retail), while international advancesgrew by 30.5% yoy (due to higher short term credit). Domestic CASA depositsgrew at 12.0% yoy, largely aided by 13.2% growth in domestic saving deposits.The domestic reported CASA ratio for the bank improved sequentially by ~100bpto 32.8%. Domestic NIM came off by 4bp sequentially to 2.8%, while the foreignNIMs declined significantly by 10bp qoq to 1.1%. Despite, 8.6% yoy decline inincome from the CEB segment, the bank witnessed a moderate 9% yoy growth innon-interest income (excluding treasury), aided by higher recoveries from written-offaccounts and strong growth in income from the forex segment. During the quarter,the asset quality pressures for the bank showed early signs of abating, as theannualized slippage ratio came in much lower sequentially at 2.0%, compared to3.6% in 1HFY2013. Recoveries/upgrades improved sequentially to `679cr comparedto an average of `540cr in the last two quarters. The bank reported higher write-offsduring the quarter at `811cr compared to a total of `316cr in 1HFY2013. Higherwrite-offs coupled with lower slippages and better recoveries/upgrades, aided thebank to maintain its gross NPA levels sequentially, on an absolute basis. The banksPCR remained largely stable sequentially at 60.7%. Of the slippages during thequarter, nearly 55% came from a single account in the steel sector. Additionally, thebank restructured advances worth ~`2,200cr during the quarter, of which almost40% came from the textile industry. As of 3QFY2013, the standard restructured bookof the bank stands at ~6.5% of the total loan book.

At CMP, the stock trades at a discount to its peers such asBOB and PNB, as its RoE (even after factoring healthy earnings CAGR of 18.2%

over FY2012-14E) is expected to reach ~16% in FY2014, which is still lower thanits peers. Hence, we value Bank of India at 1.0x (at 10% discount to peers) toarrive at a target price of `380, which still leaves an upside of 7.4% from theCMP;

Key financials (Standalone)

% chg 35.7 6.4 9.2 22.0

% chg 42.9 7.6 6.1 31.7

NIM (%) 2.6 2.4 2.3 2.4

P/E (x) 7.8 7.6 7.2 5.4

P/ABV (x) 1.2 1.1 1.0 0.9

RoA (%) 0.8 0.7 0.7 0.8

RoE (%) 17.3 15.0 13.6 16.0


CMP `354

Target Price `380

Investment Period 12 months

Stock Info

Sector Banking

Market Cap (` cr) 20,303

Beta 1.1

52 Week High / Low 408/254

Avg. Daily Volume 129,838

Face Value (`) 10

BSE Sensex 19,781Nifty 5,999

Reuters Code BOI.BO

Bloomberg Code BOI@IN

Shareholding Pattern (%)

Promoters 62.7

MF / Banks / Indian Fls 16.5

FII / NRIs / OCBs 14.5

Indian Public / Others 6.3

Abs. (%) 3m 1yr 3yr

Sensex 6.6 14.3 20.9

BOI 26.6 3.9 (3.2)

022 3935 7800 Ext: 6808

[email protected]

022 3935 7800 Ext: 6872

[email protected]

Performance Highlights

3QFY2013 Result Update | Banking

February 1, 2013


2/12

Bank of India 3QFY2013 Result Update

February 1, 2013 2

Exhibit 1:3QFY2013 performance (Standalone)

- on Advances / Bills 5,791 5,881 (1.5) 5,171 12.0 17,213 14,654 17.5- on investments 1,809 1,835 (1.4) 1,841 (1.7) 5,541 5,325 4.1

- on balance with RBI & others 298 289 2.9 182 63.1 859 536 60.3

- on others 125 0 - (45) - 125 156 (19.7)

Other income excl. treasury 851 791 7.6 781 9.0 2,382 2,019 18.0

- Fee Income 293 288 1.8 320 (8.6) 883 920 (4.0)

- Treasury Income 86 103 (16.7) 71 20.8 290 335 (13.6)

- Recov. from written off a/cs 246 167 47.7 186 32.4 649 305 113.2

- Others 312 337 (7.2) 275 13.7 850 794 7.0

- Employee expenses 833 700 19.1 759 9.8 2,276 2,186 4.1

- Other Opex 557 536 3.8 429 29.8 1,561 1,301 20.0

- Provisions for NPAs 591 1,477 (60.0) 333 77.5 2,637 1,545 70.7

- Provisions for Investments 20 (66) - 119 (83.2) (182) 360 -

- Other Provisions 305 141 116.3 241 26.4 484 510 (5.0)

Effective Tax Rate (%) 14.5 0.0 1449bp 31.1 (1654)bp 18.4 23.8 (540)bp


Exhibit 2:3QFY2013 Actual vs. EstimatesNII 2,308 2,253 2.5

Non-interest income 937 936 0.1

Operating expenses 1,390 1,374 1.2

Provisions & cont. 916 1072 (14.6)

PBT 940 743 26.5

Prov. for taxes 137 186 (26.5)



3/12


February 1, 2013 3

Exhibit 3:3QFY2013 performance analysis (Standalone)

Advances (`cr) 276,486 256,148 7.9 230,355 20.0Deposits (`cr) 349,117 332,695 4.9 307,252 13.6

Credit-to-Deposit Ratio (%) 79.2 77.0 220bp 75.0 422bp

Domestic current deposits (`cr) 15,972 13,192 21.1 14,965 6.7

Domestic saving deposits (`cr) 72,000 70,978 1.4 63,606 13.2

Domestic CASA deposits (` cr) 87,972 84,170 4.5 78,571 12.0

Global CASA ratio (%) 25.2 25.3 (10)bp 25.6 (37)bp

CAR (%) 10.6 11.1 (51)bp 11.2 (59)bp

Tier 1 CAR (%) 7.6 8.1 (43)bp 7.7 (1)bp

Dom. cost of deposits 7.3 7.3 (7)bp 7.1 21bp

Dom. yield on advances 11.6 11.9 (32)bp 11.9 (35)bp

Dom. yield on investments 7.8 8.0 (18)bp 7.9 (8)bp

Dom. yield on funds 9.4 9.4 (1)bp 9.3 15bp

Dom. cost of funds 6.8 6.9 (15)bp 6.7 9bp

Dom. Reported NIMs 2.8 2.8 (4)bp 2.9 (11)bp

Cost-to-income ratio 42.8 40.0 282bp 40.7 214bp

Gross NPAs (` cr) 8,625 8,899 (3.1) 6,386 35.1

Gross NPAs (%) 3.1 3.4 (34)bp 2.7 34bp

Net NPAs (`cr) 5,455 5,228 4.3 4,093 33.3

Net NPAs (%) 2.0 2.0 (7)bp 1.8 19bp

Provision Coverage Ratio (%) 60.7 61.0 (22)bp 60.9 (13)bp

Slippage Ratio 2.0 4.4 (243)bp 1.0 99bp

LLP to avg assets (%) 0.6 1.5 (90)bp 0.4 21bp

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

Advance growth healthy; Global NIM declines sequentially

During 3QFY2013, the overall advances for the bank registered a healthy growth

by 20.0% yoy. Domestic gross advances for the bank grew by 15.7% yoy (aided by

strong growth of 20.1% in agri segment and higher lending in segments such as

corporate and retail), while growth in international advances was 30.5% yoy (due

to higher short term credit).

Overall deposits for the bank grew at a moderate pace of 13.6% yoy. Domestic

CASA deposits grew at 12.0% yoy, largely aided by 13.2% growth in domestic

saving deposits. Domestic reported CASA ratio for the bank improved sequentially

by ~100bp to 32.8%.

Domestic NIM for the bank came off slightly by 4bp sequentially to 2.8% as

domestic yield on advances declined by 32bp, much higher than the 7bp qoq fall

in domestic costs of deposits. Domestic yield on advances moderated by 32bp qoq

as interest reversal on slipped advances was higher during 3QFY2013.

Foreign NIM for the bank declined by 10bp sequentially to 1.1%, as 35bp qoq fall

in foreign yield on funds more than offset the 23bp fall in foreign costs of funds.


4/12


February 1, 2013 4

Sharp fall of 35bp in foreign yield on funds was on account of higher short-term

lending by the bank, taking advantage of excess liquidity.

The overall NIM came off sequentially by 6bp to 2.36% (adjusting for interest on

income tax refund, it would have been 2.34%). Going forward during 4QFY2013,

the Management has guided for domestic NIM to be in the range of 2.95-3.0%,

and global NIM to be 2.6%, as they target higher domestic lending and also due

to expectation of no interest reversals.

Exhibit 4:Loan growth remains healthy


Exhibit 5:Domestic CASA ratio improves sequentially


Exhibit 6:Strong Gr. in Agri and higher corporate loans aide Domestic loan Gr.Agricultural 24,949 23,034 8.3 20,780 20.1 9.0

SME 32,561 31,459 3.5 31,150 4.5 11.8

Corporates 110,556 107,753 2.6 93,391 18.4 40.0

Retail 20,914 20,280 3.1 18,004 16.2 7.6

International 87,506 73,622 18.9 67,030 30.5 31.6


Exhibit 7:Trend in yield and cost ratios (Global)Cost of deposits 6.0 6.1 (10)bp 6.0 4bp

Yield on advances 8.9 9.2 (32)bp 9.5 (58)bp

Yield on investments 7.7 7.9 (17)bp 7.7 (6)bp

Yield on funds 7.9 8.0 (13)bp 8.0 (8)bp

Cost of funds 5.6 5.8 (21)bp 5.7 (5)bp

Reported NIM 2.4 2.4 (6)bp 2.6 (19)bp


19.5

16.8

22.9

19.5

20.0

21.7

6.5

15.7

11.2

13.6

75.0

78.2 77.9

77.0

79.2

72.0

74.0

76.0

78.0

80.0

-

5.0

10.0

15.0

20.0

25.0

3QFY12 4QFY12 1QFY13 2QFY13 3QFY13

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

32.4

32.8

31.2

31.8

32.8

13.4

11.212.2

9.8 12.0

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

30.0

30.5

31.0

31.5

32.0

32.5

33.0


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


5/12


February 1, 2013 5

Exhibit 8:Domestic YoA lower by 32bp


Exhibit 9:Domestic NIM decline by 4bp qoq


Moderate growth in non-interest income (excluding treasury)aided by higher recoveries/forex income

Despite an 8.6% yoy decline in the income from commission, exchange and

brokerage (CEB) segment, the bank witnessed moderate performance on the non-

interest income (excluding treasury) front, with a growth of 9.0% yoy, aided by

higher recoveries from written-off accounts and strong growth in income from

forex segment. Recoveries from written-off accounts grew by 32.4% yoy to `246cr,

while income from forex segment grew at a strong pace of 46.2% yoy to `181cr.

Income from treasury grew by 20.8% yoy to `86cr. Overall, non-interest income

for the bank grew by 10% yoy.

Exhibit 10:Higher recoveries & Strong forex income gr. aides non-int. inc. Gr.CEB 293 288 1.8 320 (8.6)

Treasury 86 103 (16.7) 71 20.8

Forex 181 184 (1.5) 124 46.2

Recoveries 246 167 47.7 186 32.4

Others 131 153 (14.1) 151 (13.0)

Other income excl. treasury 851 791 7.6 781 9.0


Asset quality pressures show signs of abating, as slippages came

in moderate

During the quarter, the asset quality pressures for the bank showed early signs of

abating, as annualized slippage ratio for the bank came in much lower

sequentially at 2.0%, compared to 3.6% in 1HFY2013. Recoveries/upgrades

during the quarter came in higher sequentially at `679cr compared to an average

of `540cr in last two quarters. The bank reported higher write-offs during the

quarter at `811cr compared to a total of `316cr in 1HFY2013. Higher write-offs

coupled with lower slippages and better recoveries/upgrades, aided the bank tomaintain its gross NPA levels sequentially, on an absolute basis. The banks PCR

remained largely stable sequentially at 60.7%. Gross and net NPA ratio came off

by 34bp and 7bp, sequentially to 3.1% and 2.0%, respectively.

11.93

12.26

11.25

11.9

11.58

10.5

11.0

11.5

12.0

12.5


(%)

2.91

3.29

2.56

2.84 2.80

1.50

2.00

2.50

3.00

3.50


(%)


6/12


February 1, 2013 6

Of the slippages during the quarter, nearly 55% came from a single account in the

steel sector. Additionally, the bank restructured advances worth ~`2,200cr during

the quarter, compared to ~`4,800cr in 1HFY2013. Almost 40% of the

restructuring during the quarter came in the textile industry. As of 3QFY2013, thestandard restructured book of the bank stood at ~`18,136cr, ~6.5% of the loan

book. Going forward, as per the Management, no major advances are in the

restructuring pipeline.

Exhibit 11:Slippages moderated in 3QFY2013


Exhibit 12:NPA ratios improve sequentially


Exhibit 13:Trend in other income excluding treasury


Exhibit 14:Cost ratios deteriorate sequentially


1.0 0.7 2.8 4.4 2.0

0.40.5 0.6

1.5

0.6

-

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)

2.7

2.3

2.6

3.4

3.1

1.8

1.5

1.7

2.0

2.0

60.9

64.2

60.9 61.0 60.7

55.0

59.0

63.0

67.0

-

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0


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

0.91.0

0.8 0.80.8

32.628.3

34.5

15.1

9.0 -

10.0

20.0

30.0

40.0

50.0

-

0.2

0.4

0.6

0.8

1.0


OIET to avg assets (%) OIET yoy chg (%, RHS)

40.7

41.9

42.0

40.0

42.8

1.3 1.61.2 1.2

1.4

-

0.5

1.0

1.5

2.0

38.0

39.0

40.0

41.0

42.0

43.0

44.0


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


7/12


February 1, 2013 7

Investment arguments

Reasonably high fee income with a moderate funding mix

The banks international operations contribute a substantial ~29% (30.5% yoygrowth in 3QFY2013 primarily due to rupee depreciation) to the banks advances.

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

banks domestic corporate and retail customers; foreign currency fund-based

services to Indian corporates; and savings products to the banks PIO clients

abroad. The bank has a moderate funding mix, with domestic reported CASA ratio

at 33.8% as of 3QFY2013.

Investment concerns

Asset quality still remains on the radar

Asset quality pressures, which had moderated in FY2011 post the severe stress

witnessed in FY2010, had again re-surfaced for the bank in FY2012 (slippages at

2.5% in FY2012, compared to 2.9% in FY2010 and 1.7% in FY2011). These

pressures had continued in 1HFY2013 as well, with annualized slippages coming

in at 3.6%. Though, in 3QFY2013, the annualized slippage ratio has moderated

to 2.0%. We would remain watchful of the asset quality trends for the bank, for the

next few quarters.

Outlook and valuation

At CMP, the stock trades at a discount to its peers such as BOB and PNB, as its RoE

(even after factoring healthy earnings CAGR of 18.2% over FY2012-14E) isexpected to reach ~16% in FY2014E, which is still lower than peers. Hence, we

value Bank of India at 1.0x (at 10% discount to peers) to arrive at a target price of

`380, which still leaves an upside of 7.4% from the CMP;


8/12


February 1, 2013 8

Exhibit 15:Key assumptions

Credit growth 18.0 15.0 17.0 17.0Deposit growth 17.0 15.0 15.0 15.0

CASA ratio 25.6 25.4 26.0 25.8

NIMs 2.2 2.4 2.3 2.4

Other income growth 10.5 2.4 12.0 0.9

Growth in staff expenses 6.0 15.0 4.0 15.0

Growth in other expenses 14.0 10.0 15.0 10.0

Slippages 3.9 2.8 3.0 2.6

Coverage 60.5 65.0 63.5 65.0


Exhibit 16:Change in estimates

NII 8,898 9,075 2.0 11,000 11,070 0.6

Non-interest income 3,670 3,719 1.3 3,758 3,753 (0.1)

Operating expenses 5,388 5,346 (0.8) 6,089 6,039 (0.8)

Provisions & cont. 4,075 3,756 (7.8) 3,223 3,244 0.7

PBT 3,105 3,691 18.9 5,447 5,539 1.7

Prov. for taxes 714 849 18.9 1,767 1,797 1.7


Exhibit 17:P/ABV band


0

200

400

600

800

1000

Mar-02

Sep-02

Mar-03

Sep-03

Mar-04

Sep-04

Mar-05

Sep-05

Mar-06

Sep-06

Mar-07

Sep-07

Mar-08

Sep-08

Mar-09

Sep-09

Mar-10

Sep-10

Mar-11

Sep-11

Mar-12

Sep-12

Mar-13

Price (`) 0.8x 1.1x 1.4x 1.7x 2x


9/12


February 1, 2013 9

xhibit 18:Recommendation summary

AxisBk Buy 1,508 1,753 16.2 2.0 2.4 10.8 16.4 1.6 20.1

FedBk Accumulate 511 557 8.9 1.2 1.4 9.9 6.4 1.2 13.1

HDFCBk Neutral 640 - - 3.6 - 17.7 28.1 1.8 22.1

ICICIBk* Buy 1,171 1,397 19.3 1.9 2.2 14.1 21.6 1.5 15.6

SIB Buy 28 34 21.9 1.1 1.4 6.8 6.9 1.0 17.7

YesBk Accumulate 532 576 8.4 2.7 2.9 12.5 24.1 1.5 23.6

AllBk Buy 160 188 18.0 0.7 0.8 4.8 (5.2) 0.8 14.7

AndhBk Neutral 111 - - 0.8 - 5.1 (4.6) 0.8 13.8

BOB Neutral 867 - - 1.0 - 6.3 6.5 1.0 17.1

BOM Neutral 59 60 1.9 0.7 0.7 4.5 44.3 0.6 16.9

CanBk Accumulate 472 516 9.2 0.9 1.0 5.9 4.1 0.8 14.7CentBk Neutral 83 - - 0.7 - 4.1 95.5 0.5 14.3

CorpBk Buy 428 517 20.7 0.7 0.8 4.3 (3.1) 0.8 14.8

DenaBk Buy 108 132 22.6 0.7 0.8 4.4 3.5 0.8 15.9

IDBI# Buy 106 122 15.1 0.7 0.8 4.7 18.4 0.9 14.1

IndBk Buy 203 245 20.9 0.7 0.9 4.7 4.4 1.1 16.8

IOB Accumulate 80 88 10.2 0.5 0.6 4.0 23.9 0.6 13.4

J&KBk Neutral 1,377 - - 1.2 - 7.0 9.2 1.4 18.0

OBC Neutral 322 - - 0.7 - 5.4 23.2 0.8 13.5

PNB Buy 899 1,053 17.1 0.9 1.1 5.4 8.0 1.0 17.5

SBI* Accumulate 2,410 2,600 7.9 1.6 1.7 9.4 21.5 1.0 17.7

SynBk Buy 133 157 17.5 0.7 0.9 4.8 12.4 0.7 16.4

UcoBk Neutral 75 - - 0.8 - 5.0 2.6 0.5 13.5

UnionBk Accumulate 249 286 14.9 0.8 1.0 5.3 20.7 0.8 16.6

UtdBk Buy 74 87 17.5 0.5 0.6 3.4 19.6 0.7 16.1

VijBk Accumulate 58 62 6.8 0.7 0.7 5.3 9.7 0.5 12.6

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 `4lakh cr. The bank has a pan-India network of around 4,150branches, of which ~64% are located in rural and semi-urban areas. The bank

also has considerable presence overseas, which accounts for ~29% of its total

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


10/12


February 1, 2013 10

- YoY Growth (%) 30.0 4.7 35.7 6.4 9.2 22.0

- YoY Growth (%) 44.2 (14.3) 1.0 25.7 12.0 0.9

- YoY Growth (%) 34.7 (2.1) 24.8 11.3 10.0 15.9

- YoY Growth (%) 17.0 18.5 38.2 (2.5) 8.2 13.0

- YoY Growth (%) 47.4 (13.8) 14.4 24.3 11.3 17.9

- YoY Growth (%) 27.1 71.1 (14.6) 65.0 20.5 (13.6)

- YoY Growth (%) 55.1 (40.1) 40.2 2.3 3.2 50.1

- as a % of PBT 27.8 30.2 28.8 25.2 23.0 32.4

- YoY Growth (%) 49.7 (42.1) 42.9 7.6 6.1 31.7

Share Capital 526 526 547 575 575 575Reserves & Surplus 12,969 13,704 16,743 20,387 22,628 25,569

Deposits 189,708 229,762 298,886 318,216 365,948 420,841

- Growth (%) 26.5 21.1 30.1 6.5 15.0 15.0

Borrowings 9,487 14,079 12,862 22,749 25,958 29,709

Tier 2 Capital 6,186 8,320 9,160 9,366 9,131 8,903

Other Liab & Prov. 6,625 8,590 12,975 13,243 14,546 16,600

Cash balances 8,915 15,603 21,782 14,987 16,468 16,834

Bank balances 12,846 15,628 15,528 19,725 22,507 25,760

Investments 52,607 67,080 85,872 86,754 92,526 100,595

Advances 142,909 168,491 213,096 248,833 291,135 340,628

- Growth (%) 25.9 17.9 26.5 16.8 17.0 17.0

Fixed Assets 2,532 2,352 2,481 2,772 3,068 3,406

Other Assets 5,692 5,829 12,413 11,466 13,083 14,974

- Growth (%) 26.1 21.9 27.7 9.5 14.1 14.5


11/12


February 1, 2013 11

NIMs 2.8 2.4 2.6 2.4 2.3 2.4

Cost to Income Ratio 36.2 43.8 48.5 42.5 41.8 40.7RoA 1.5 0.7 0.8 0.7 0.7 0.8

RoE 29.2 14.2 17.3 15.0 13.6 16.0

CASA Ratio 26.8 27.8 25.4 26.7 26.0 25.8

Credit/Deposit Ratio 75.3 73.3 71.3 78.2 79.6 80.9

CAR 13.0 12.9 12.2 12.0 11.3 10.8

- Tier I 8.9 8.5 8.3 8.6 8.3 8.2

Gross NPAs 1.7 2.9 2.2 2.3 3.4 4.1

Net NPAs 0.4 1.3 0.9 1.5 1.9 2.0

Slippages 1.8 2.9 1.7 2.5 3.0 2.6

Loan Loss Prov./Avg. Assets 0.3 0.7 0.3 0.6 0.8 0.6

Provision Coverage 74.6 65.5 72.2 64.2 63.5 65.0

EPS 57.2 33.1 45.5 46.6 49.5 65.1

ABVPS 223.9 231.9 288.3 324.1 351.8 400.2

DPS 8.0 7.0 7.0 7.0 9.0 12.0

PER (x) 6.2 10.7 7.8 7.6 7.2 5.4

P/ABVPS (x) 1.6 1.5 1.2 1.1 1.0 0.9

Dividend Yield 2.3 2.0 2.0 2.0 2.5 3.4

NII 2.7 2.3 2.5 2.3 2.2 2.4

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

Adj. NII 2.1 1.4 1.9 1.4 1.3 1.7

Treasury 0.4 0.2 0.1 0.1 0.1 0.0

Int. Sens. Inc. 2.4 1.7 2.0 1.5 1.4 1.7

Other Inc. 1.1 0.8 0.7 0.8 0.8 0.8

Op. Inc. 3.6 2.5 2.7 2.3 2.2 2.5

Opex 1.5 1.5 1.6 1.3 1.3 1.3

PBT 2.1 1.0 1.1 1.0 0.9 1.2Taxes 0.6 0.3 0.3 0.2 0.2 0.4

Leverage (x) 19.6 20.4 21.8 20.6 19.7 20.1


12/12


February 1 2013 12

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

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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.

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.

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

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, 4th february, 2013

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