Syndicate Bank 4Q FY 2013

4QFY2013 Result Update | Banking
May 3, 2013
Syndicate Bank
Performance Highlights
Particulars (` cr) NII Pre-prov. profit PAT 4QFY13 1,344 901 592 3QFY13 1,400 864 508 % chg (qoq) (4.0) 4.3 16.5 4QFY12 1,337 790 309 % chg (yoy) 0.6 14.0 91.4
NEUTRAL
CMP Target Price
Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others
`129 -
Source: Company, Angel Research
For 4QFY2013, Syndicate Bank announced a moderate set of numbers on the operating front, however reported improvement on the asset quality front. While NII came in flat yoy at `1,344cr (despite robust advance growth at 19.4% yoy), Non Interest income grew strongly at 33.3% yoy, leading to a moderate growth of 14.0% yoy in operating profit. Gross and Net NPA ratios, improved sequentially by 31bp and 9bp, respectively to 2.0% and 0.8%, which aided the bank to report 32.9% yoy lower provisioning expenses, thereby enabling it to clock 91.4% yoy earnings growth. NIM declines qoq; Slippages lower sequentially: During 4QFY2013, the bank witnessed a healthy growth in its business, as advances grew by 19.4% yoy, while growth in deposits came in at 17.4% yoy. Despite the 14.9% yoy growth witnessed in current deposits, the growth in CASA deposits remained moderate at 11.9% yoy, due to moderate growth of 10.9% yoy in saving deposits. CASA ratio for the bank was lower by 145bp qoq (136bp yoy) to 28.0%. The bank shed around `3,718cr of differential rate deposits during the quarter and hence as of 4QFY2013, the share of bulk deposits to total deposits stood reduced to 16.0% from 17.4% in 3QFY2013. NIMs came down by 32bp sequentially at 3.0%, primarily due to 40bp decline in yield on advances. The bank witnessed improvement on the asset quality front during the quarter, as slippages came in much lower at `624cr (annualized slippage ratio of 2.0%) as compared to average quarterly run rate of around `1,000cr for the last few quarters and were largely contributed by two chunky slippages amounting to ~`450cr. Aided by lower slippages, Gross NPA levels, on an absolute basis, came down by 5.7% qoq, while Net NPA levels remained flat sequentially. The banks PCR improved by 40bp sequentially to 83.4% and remains on the higher side within the PSU segment. During the quarter, the bank restructured advances worth ~`1,000cr (which included ~`300-400cr exposure to Tamil Nadu SEB), thereby takings its outstanding restructured book to ~`9,216cr. Outlook and valuation: Although the bank has a moderate CASA and fee income franchise, with the CASA ratio of 28.0% as of 4QFY2013 and fee income at 0.7% of average assets as of FY2013, it has relatively comfortable asset quality outlook than peers. At CMP, it is currently trading at 0.6x FY2015E ABV, which in our view, factors in the relative comfort towards the asset quality. Hence, we remain Neutral on the stock. Key financials (Standalone)
Y/E March (` cr) NII % chg Net profit % chg NIM (%) EPS (`) P/E (x) P/ABV (x) RoA (%) RoE (%)
Banking 7,786 1.3 145/84 168,581 10 19,576 5,944 SBNK.BO SNDB@IN
66.2 15.9 6.5 11.4
Abs. (%) Sensex Syndicate Bank
3m (1.0) (3.0)
1yr 14.1 25.2
3yr 12.6 39.6
Vaibhav Agrawal
022 3935 7800 Ext: 6808 vaibhav.agrawal@angelbroking.com
FY2012 5,085 16.0 1,313 25.3 3.1 21.8 5.9 1.0 0.8 17.9
FY2013 5,454 7.3 2,004 52.6 2.8 33.3 3.9 0.8 1.0 22.8
FY2014E 5,963 9.3 1,630 (18.7) 2.6 27.1 4.8 0.7 0.7 16.0
FY2015E 6,791 13.9 1,830 12.3 2.6 30.4 4.3 0.6 0.7 15.9
Sourabh Taparia
022 3935 7800 Ext: 6872 sourabh.taparia@angelbroking.com
Akshay Narang
022 3935 7800 Ext: 6829 akshay.narang@angelbroking.com
Harshal Patkar
022 3935 7800 Ext: 6847 harshal.patkar@angelbroking.com
Please refer to important disclosures at the end of this report
Syndicate Bank | 4QFY2013 Result Update
Exhibit 1: 4QFY2013 performance (Standalone)

Particulars (` cr) Interest earned - on Advances / Bills - on investments - on balance with RBI & others - on others Interest Expended Net Interest Income Other income Other income excl. treasury - Fee Income - Treasury Income - Profit on exchange transactions - Others Operating income Operating expenses - Employee expenses - Other Opex Pre-provision Profit Provisions & Contingencies - Provisions for NPAs - Provisions for Investments - Other Provisions PBT Provision for Tax PAT Effective Tax Rate (%)
4QFY13 4,381 3,465 831 85 3,037 1,344 399 357 172 42 19 166 1,744 843 579 264 901 364 160 (14) 218 537 (55) 592 (10.2)
3QFY13 4,221 3,333 813 75 2,821 1,400 269 234 132 35 28 74 1,669 805 550 254 864 530 208 6 316 334 (174) 508 (52.1)
% chg (qoq) 3.8 4.0 2.2 14.0 7.7 (4.0) 48.3 52.5 30.3 20.0 4.0 123.8 4.5 4.7 5.1 3.7 4.3 (31.4) (23.1) (31.1) 60.8 (68.4) 16.5 4190bp
4QFY12 4,125 3,300 755 70 2,788 1,337 300 286 159 13 30 98 1,636 846 594 252 790 542 321 (12) 234 248 (61) 309 (24.6)
% chg (yoy) 6.2 5.0 10.0 22.5 8.9 0.6 33.3 24.8 8.3 213.0 5.0 70.1 6.6 (0.4) (2.6) 4.8 14.0 (32.9) (50.1) 15.2 (6.8) 116.4 (10.1) 91.4 1440bp
FY2013 17,121 13,524 3,231 287 78 11,667 5,454 1,174 1,049 412 125 150 487 6,628 3,179 2,179 1,000 3,450 1,886 1,110 (18) 795 1,563 (441) 2,004 (28.2)
FY2012 15,268 12,371 2,736 151 10 10,183 5,085 1,076 987 466 88 9 513 6,161 2,814 1,892 923 3,347 1,919 1,415 38 467 1,427 114 1,313 8.0
% chg 12.1 9.3 18.1 90.4 653.3 14.6 7.3 9.2 6.3 (11.6) 41.4 1,566.7 (4.9) 7.6 13.0 15.2 8.3 3.1 (1.7) (21.6) 70.2 9.5 52.6 -
Exhibit 2: 4QFY2013 Actual vs. Angel estimates

Particulars (` cr) Net interest income Non-interest income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT
Actual 1,344 399 1,744 843 901 364 537 (55) 592
Estimates 1,446 317 1,762 863 899 497 403 (43) 445
% chg (7.0) 26.0 (1.1) (2.4) 0.2 (26.7) 33.5 29.2 33.1
May 3, 2013
Exhibit 3: 4QFY2013 performance (Standalone)

Particulars Balance sheet Advances (` cr) Deposits (` cr) Credit-to-Deposit Ratio (%) Current deposits (` cr) Saving deposits (` cr) CASA deposits (` cr) CASA ratio (%) CAR (%) Tier 1 CAR (%) Profitability Ratios (%) Cost of deposits Yield on advances Reported NIM Cost-to-income ratio Asset quality Gross NPAs (` cr) Gross NPAs (%) Net NPAs (` cr) Net NPAs (%) Provision Coverage Ratio (%) Slippage ratio (%) NPA to avg. assets (%)
4QFY13 147,569 185,356 79.6 13,937 38,017 51,954 28.0 12.6 9.0 6.6 10.04 2.97 48.3 2,979 2.0 1,125 0.8 83.4 2.0 0.3
3QFY13 134,629 164,075 82.1 11,430 36,930 48,360 29.5 11.4 7.8 6.7 10.5 3.29 48.2 3,160 2.3 1,141 0.9 83.0 2.9 0.4
% chg (qoq) 9.6 13.0 (244)bp 21.9 2.9 7.4 (145)bp 121bp 120bp (14)bp (42)bp (32)bp 10bp (5.7) (32)bp (1.4) (9)bp 40bp (90)bp (13)bp
4QFY12 123,620 157,941 78.3 12,129 34,295 46,424 29.4 12.2 8.9 6.9 11.0 3.6 51.7 3,183 2.5 1,185 1.0 80.1 4.0 0.7
% chg (yoy) 19.4 17.4 134bp 14.9 10.9 11.9 (136)bp 35bp 2bp (36)bp (97)bp (63)bp (338)bp (6.4) (54)bp (5.1) (20)bp 335bp (195)bp (42)bp
Business growth healthy; Global NIM decline 32bp sequentially to 3.0%

During 4QFY2013, the bank witnessed healthy growth in its business, as advances grew by 19.4% yoy, while growth in deposits came in at 17.4% yoy. Despite the 14.9% yoy growth witnessed in current deposits, the growth in CASA deposits remained moderate at 11.9% yoy, due to moderate growth of 10.9% yoy in saving deposits. CASA ratio for the bank was lower by 145bp qoq (136bp yoy) to 28.0%. Continuing its strategy of lowering dependence on bulk deposits, the bank shed around `3,718cr of bulk deposits in 4QFY2013 compared to `3,300cr in 3QFY2013. Thus the share of bulk deposits to total deposits (differential rate deposits and Certificate of deposits) stands reduced to 16.0% from 17.4% as of 3QFY2013. During the quarter, the bank witnessed a 40bp sequential decline in its yield on advances to 10.0%, while cost of deposits for the bank came off by 14bp qoq (largely due to shedding of high cost bulk deposits). Hence, the NIM for the bank declined by 32bp sequentially to 3.0%.
May 3, 2013
Exhibit 4: Business growth healthy

Adv. yoy chg (%) 25.0 20.0 15.0 10.0 78.3 82.1 81.3 79.6 Dep. yoy chg (%) 82.1 CDR (%, RHS) 83.0 82.0 81.0 80.0 79.0 78.0
Exhibit 5: CASA ratio declined sequentially

CASA ratio 32.5 10.7 30.0 8.1 27.5 7.1 7.5 9.9 CASA yoy growth (%, RHS) 11.9 15.0
29.4
28.1
29.9
29.5
15.8 16.5
16.8 18.4
12.7 10.5
17.3 14.6
19.4 17.4
77.0 76.0 25.0
28.0
5.0 -
4QFY12 1QFY13 2QFY13 3QFY13 4QFY13
4QFY12 1QFY13 2QFY13 3QFY13 4QFY13

Exhibit 6: 14bp qoq fall in CoD, was fully offset by...
Exhibit 7: ...45bp fall in YoA, resulting in decrease in NIMs

(%) 4.00
Reported NIM
7.00
6.92
7.08
7.00 6.70 6.56
3.60 3.50 3.00 2.50 2.00 3.19 3.33 3.29 2.97
5.00 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13

4QFY12
1QFY13
2QFY13
3QFY13
4QFY13
Strong performance on non-interest income front

During 4QFY2013, the non-interest income (excluding treasury) for the bank grew strongly by 24.8% yoy to `357cr, largely due to a strong growth of 70.1% yoy in others segment (possibly due to higher recoveries), even as growth in the fee income remained moderate at 8.3% yoy. Treasury income for the bank came in at `42cr, much higher compared to `13cr in 4QFY2012. Overall, the bank reported a strong growth of 33.3% yoy in its non-interest income.
Sequential lower slippages aiding improvement in asset quality

The bank witnessed improvement on the asset quality front during the quarter, as slippages came in much lower at `624cr (annualized slippage ratio of 2.0%) as compared to average quarterly run rate of around `1,000cr for the last few quarters and were largely contributed by two chunky slippages (one account each from textiles and shipping) amounting to ~`450cr. Recoveries at `260cr in 4QFY2013, were in-line with the recovery performance seen in the previous two quarters. Aided by lower slippages, Gross NPA levels, on an absolute basis, came down by 5.7% qoq, while Net NPA levels remained flat sequentially. Gross and net NPA ratios were lower sequentially by 31bp and 9bp, respectively to 2.0% and 0.8%. The provisioning coverage ratio for the bank improved 40bp sequentially and stood comfortable at 83.4% (on the higher side within the PSU segment).
May 3, 2013
During the quarter, the bank restructured advances worth ~`1,000cr during the quarter (which included ~`300-400cr exposure to Tamil Nadu SEB), thereby takings its outstanding restructured book to `9,216cr (6.1% of its overall loan book).
Exhibit 8: Slippages reducing slowly

(%) 5.0 4.0 3.0 2.0 1.0 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 4.0 3.4 3.3 2.9 2.0
Exhibit 9: NPA ratios improve sequentially

Gross NPAs (%) 2.5 2.0 1.5 1.0 80.1 Net NPAs (%) 82.3 83.0 PCR (%, RHS) 83.4 90.0 80.0 70.0 60.0 50.0 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13
Source: Company, Angel Research; Note: PCR including tech. write-offs
80.7
2.5 1.0
2.4 0.9
2.5 0.9
2.3 0.9
Exhibit 10: Network expansion at steady pace

3,000 2,900 2,800 2,700 2,600 2,500 2,400 2,300 2,200 2,100 2,000
Exhibit 11: Cost ratios remain elevated

Cost-to-income ratio (%) 60.0 1.9 1.6 45.0 1.8 1.7 1.6 Opex to average assets (%, RHS) 2.5 2.0 1.5 1.0
2,700
2,707
2,738
2,761
2,934
2.0 0.8
0.5
51.7
45.9
49.2
48.2
48.3
0.5 -
30.0 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13
CAR on the lower side; Capital raising via Equity in current fiscal
As of 4QFY2013, the banks total CAR stood at 12.6%, with the tier-1 ratio at 8.96%, which remains on the lower side. In FY2012 the bank had received `327cr capital infusion from the Life Insurance Corporation of India. In FY2013, the bank raised ~`1,000cr of capital in form of Tier-II bonds. To propel its further growth plans, the bank has plans to raise equity capital in the current fiscal.
Tax rate negative for FY2013

During FY2013, the bank has written back tax provisions amounting to `441cr, primarily due to utilization of MAT credit of `574cr and Deferred Tax of `231cr. Going ahead in FY2014, the Management has further MAT credit, which it plans to utilize in the current fiscal. However, at the same time, the Management has guided at an overall tax expense rate of around 25%.
May 3, 2013
Investment arguments
Relatively better asset quality and moderate NIM to aid profitability
Slippages remained high for the last four quarters but have started to cool down. Slippages for 4QFY2013 were at `624cr, of which two accounts from the textiles and shipping accounted for ~`450cr. We believe asset-quality pressures are likely to be well within manageable limits for the bank, as evident from the comfortable provisioning coverage for the bank at 83.4% as of 4QFY2013 and also improvement in gross as well as net NPA levels. Further, recoveries and upgrades have been encouragingly high during FY2013. The banks conservative lending, visible in its low yield on advances (reported at 10.5% in FY2013 and 11.0% in FY2012), and moderate advances growth (16.3% CAGR over FY2010-13), are expected to lead to a relatively better asset quality than peer banks. We expect slippages to be at 3.0% in FY2014 and 2.5% in FY2015.
Outlook and valuation

Although, the bank has a moderate CASA and fee income franchise, with a CASA ratio of 28.0% as of 4QFY2013 and fee income at 0.7% of average assets as of FY2013, it has relatively comfortable asset quality outlook than peers. At CMP, it is currently trading at 0.6x FY2015E ABV, factoring-in the relative comfort towards the asset quality, leaving scope for limited upside from here on. Hence, we remain Neutral on the stock.
Exhibit 12: Key assumptions

Particulars (%) Credit growth Deposit growth CASA ratio NIMs Other income growth Growth in staff expenses Growth in other expenses Slippages Coverage ratio
Source: Angel Research
Earlier estimates FY2014 15.0 15.0 27.7 2.9 10.3 10.0 7.5 2.5 78.5 FY2015 15.0 16.0 26.9 2.8 15.1 10.0 7.5 2.5 75.0
Revised estimates FY2014 15.0 15.0 26.8 2.6 8.5 10.0 7.5 2.4 80.0 FY2015 15.0 15.0 26.3 2.6 14.4 10.0 7.5 2.3 75.0
May 3, 2013
Exhibit 13: Change in estimates

Particulars (` cr) NII Non-interest income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT
Source: Angel Research
Earlier estimates 6,135 1,205 7,340 3,494 3,846 1,572 2,273 682 1,591
FY2013 Revised estimates 5,963 1,274 7,238 3,472 3,766 1,533 2,233 603 1,630
Var. (%) (2.8) 5.8 (1.4) (0.6) (2.1) (2.5) (1.8) (11.6) 2.4
Earlier estimates 6,825 1,386 8,212 3,816 4,395 1,778 2,618 890 1,728
FY2014 Revised estimates 6,791 1,458 8,249 3,792 4,457 1,684 2,773 942 1,830
Var. (%) (0.5) 5.2 0.5 (0.6) 1.4 (5.2) 5.9 5.9 5.9
Exhibit 14: P/ABV band

300 250 200 150 100 50 0 Price (`) 0.5x 0.7x 0.9x 1.1x 1.3x
Oct-04
Oct-05
Oct-06
Oct-07
Oct-08
Oct-09
Oct-10
Oct-11
Oct-12
May 3, 2013
Oct-13
Apr-04
Apr-05
Apr-06
Apr-07
Apr-08
Apr-09
Apr-10
Apr-11
Apr-12
Apr-13
Exhibit 15: Recommendation summary

Company AxisBk FedBk HDFCBk ICICIBk* SIB YesBk AllBk AndhBk BOB BOI BOM CanBk CentBk CorpBk DenaBk IDBI# IndBk IOB J&KBk OBC PNB SBI* SynBk UcoBk UnionBk UtdBk VijBk Reco. Buy Neutral Neutral Buy Neutral Neutral Buy Neutral Buy Accumulate Neutral Buy Neutral Buy Accumulate Neutral Buy Accumulate Neutral Accumulate Buy Buy Neutral Reduce Accumulate Accumulate Accumulate CMP (`) 1,474 1,130 132 699 327 395 376 91 163 62 256 746 2,217 72 240 60 52 Tgt. price (`) 1,737 1,352 155 815 360 461 453 101 193 70 282 889 2,567 68 264 68 55 Upside (%) 17.9 2.3 1.4 19.7 3.4 (0.4) 17.6 3.7 16.6 10.1 2.6 16.7 1.9 20.4 11.4 2.1 18.2 12.3 (0.3) 10.4 19.2 15.8 0.4 (5.7) 10.1 13.2 5.9 FY2015E P/ABV (x) 1.6 1.0 3.2 1.6 0.9 2.1 0.5 0.6 0.7 0.7 0.6 0.6 0.6 0.5 0.5 0.5 0.5 0.4 1.0 0.5 0.7 1.2 0.6 0.7 0.7 0.4 0.6 FY2015E Tgt. P/ABV (x) 1.9 1.9 0.6 0.9 0.8 0.8 0.6 0.6 0.7 0.5 0.6 0.8 1.4 0.7 0.8 0.5 0.6 FY2015E P/E (x) 9.7 7.5 16.0 11.7 5.3 10.4 3.7 3.9 4.8 4.8 4.3 4.6 3.9 3.6 3.4 4.8 3.9 3.1 6.6 4.0 4.2 7.9 4.5 5.0 5.0 2.9 4.7
#
FY2013-15E EPS CAGR (%) 17.3 10.0 22.8 15.5 11.4 14.9 12.6 4.2 17.0 21.8 14.8 14.0 42.8 8.3 4.3 15.2 6.5 53.3 (5.2) 17.5 12.4 16.4 (3.5) 36.9 21.2 40.4 21.2
FY2015E RoA (%) 1.6 1.2 1.8 1.5 1.0 1.3 0.8 0.8 1.0 0.8 0.6 0.8 0.6 0.8 0.8 0.7 1.0 0.7 1.2 0.8 1.0 1.0 0.7 0.6 0.8 0.7 0.5
FY2015E RoE (%) 17.6 13.7 21.8 15.6 17.1 22.1 14.2 13.4 16.0 15.1 15.6 14.1 13.3 14.4 15.3 11.3 14.9 13.1 16.0 13.1 16.3 17.0 15.2 12.6 15.3 14.7 11.7
Source: Company, Angel Research; Note:*Target multiples=SOTP Target Price/ABV (including subsidiaries), Without adjusting for SASF
Company Background
Syndicate Bank is a south-based mid-sized PSU bank, with an asset base in excess of `3.1lakh cr. The bank has 2,900+ branches, with a more spread out network than other regional banks, having 52% branches in the south and the remaining spread across several states of the country (12% of branches in the northern region). The bank also has a reasonable presence overseas, which accounts for ~17% of its total advances.
May 3, 2013
Income statement (Standalone)

Y/E March (` cr) Net Interest Income - YoY Growth (%) Other Income - YoY Growth (%) Operating Income - YoY Growth (%) Operating Expenses - YoY Growth (%) Pre - Provision Profit - YoY Growth (%) Prov. & Cont. - YoY Growth (%) Profit Before Tax - YoY Growth (%) Prov. for Taxation - as a % of PBT PAT - YoY Growth (%) FY09 2,548 22.9 915 (2.7) 3,462 14.9 1,791 19.8 1,671 10.1 635 24.0 1,036 3.1 124 11.9 913 7.6 FY10 2,740 7.5 1,167 27.6 3,907 12.8 2,034 13.5 1,874 12.1 700 10.2 1,174 13.3 361 30.7 813 (10.9) FY11 4,383 60.0 915 (21.6) 5,298 35.6 2,548 25.3 2,750 46.8 1,464 109.3 1,286 9.5 238 18.5 1,048 28.8 FY12 5,085 16.0 1,076 17.6 6,161 16.3 2,814 10.4 3,347 21.7 1,919 31.1 1,427 11.0 114 8.0 1,313 25.3 FY13E 5,454 7.3 1,174 9.2 6,628 7.6 3,179 13.0 3,450 3.1 1,886 (1.7) 1,563 9.5 (441) (28.2) 2,004 52.6 FY14E 5,963 9.3 1,274 8.5 7,238 9.2 3,472 9.2 3,766 9.2 1,533 (18.7) 2,233 42.8 603 27.0 1,630 (18.7) FY15E 6,791 13.9 1,458 14.4 8,249 14.0 3,792 9.2 4,457 18.4 1,684 9.9 2,773 24.2 942 34.0 1,830 12.3
Balance sheet (Standalone)

Y/E March (` cr) Share Capital Reserve & Surplus Deposits - Growth (%) Borrowings Tier 2 Capital Other Liab. & Prov. Total Liabilities Cash Balances Bank Balances Investments Advances - Growth (%) Fixed Assets Other Assets Total Assets - Growth (%) FY09 522 4,488 21.8 2,190 3,224 3,946 12,543 1,861 30,537 81,532 27.3 742 3,040 21.6 FY10 522 5,105 1.0 8,555 3,618 4,225 7,189 5,545 33,011 10.9 701 2,198 6.8 FY11 573 6,478 15.9 6,010 3,518 4,364 10,443 1,523 35,068 18.1 693 2,031 12.6 FY12 602 8,439 16.5 7,072 3,518 4,896 8,809 5,076 40,815 15.8 1,352 2,797 16.6 FY13E 602 9,939 17.4 9,384 3,430 6,401 8,095 8,489 45,638 19.4 1,434 3,887 17.9 FY14E 602 11,184 15.0 10,750 3,344 7,387 9,592 6,161 54,924 15.0 1,593 4,453 14.6 FY15E 602 12,595 15.0 12,334 3,260 8,813 11,031 7,068 62,596 15.0 1,773 5,109 14.7
115,885 117,026 135,596 157,941 185,356 213,159 245,133
130,256 139,051 156,539 182,468 215,112 246,427 282,737
90,406 106,782 123,620 147,569 169,704 195,160
130,256 139,051 156,539 182,468 215,112 246,427 282,737
May 3, 2013
Ratio analysis
Y/E March Profitability ratios (%) NIMs Cost to Income Ratio RoA RoE B/S ratios (%) CASA Ratio Credit/Deposit Ratio CAR - Tier I Asset Quality (%) Gross NPAs Net NPAs Slippages Loan Loss Prov. /Avg. Assets Provision Coverage Per Share Data (`) EPS ABVPS (75% cover.) DPS Valuation Ratios PER (x) P/ABVPS (x) Dividend Yield DuPont Analysis NII (-) Prov. Exp. Adj. NII Treasury Int. Sens. Inc. Other Inc. Op. Inc. Opex PBT Taxes RoA Leverage RoE 2.1 0.5 1.6 0.2 1.8 0.6 2.4 1.5 0.9 0.1 0.8 28.1 21.6 2.0 0.5 1.5 0.3 1.8 0.6 2.4 1.5 0.9 0.3 0.6 27.4 16.6 3.0 1.0 2.0 0.0 2.0 0.6 2.6 1.7 0.9 0.2 0.7 24.9 17.6 3.0 1.1 1.9 0.1 1.9 0.6 2.5 1.7 0.8 0.1 0.8 23.1 17.9 2.7 0.9 1.8 0.1 1.9 0.5 2.4 1.6 0.8 (0.2) 1.0 22.6 22.8 2.6 0.7 1.9 0.0 2.0 0.5 2.5 1.5 1.0 0.3 0.7 22.7 16.0 2.6 0.6 1.9 0.0 2.0 0.5 2.5 1.4 1.0 0.4 0.7 23.0 15.9 7.4 1.5 2.3 8.3 1.3 2.3 7.1 1.1 2.9 5.9 1.0 2.9 3.9 0.8 5.2 4.8 0.7 4.3 4.3 0.6 4.6 17.5 83.6 3.0 15.6 98.9 3.0 18.3 116.1 3.7 21.8 133.5 3.8 33.3 158.4 6.7 27.1 179.1 5.5 30.4 202.5 6.0 1.9 0.8 1.5 0.3 60.4 2.2 1.1 1.8 0.4 73.3 2.4 1.0 1.7 0.6 77.2 2.5 1.0 2.9 0.9 80.1 2.0 0.8 2.9 0.7 83.4 2.8 1.0 2.4 0.5 80.0 3.7 1.4 2.3 0.5 75.0 27.6 70.4 12.7 7.9 31.2 77.3 12.7 8.2 30.9 78.8 13.0 9.3 29.5 78.3 12.2 8.9 28.0 79.6 12.6 9.0 26.8 79.6 12.0 8.8 26.3 79.6 11.4 8.6 2.2 51.7 0.8 21.6 2.1 52.0 0.6 16.6 3.0 48.1 0.7 17.6 3.1 45.7 0.8 17.9 2.8 48.0 1.0 22.8 2.6 48.0 0.7 16.0 2.6 46.0 0.7 15.9 FY09 FY10 FY11 FY12 FY13E FY14E FY15E
May 3, 2013
10
Research Team Tel: 022 - 39357800
E-mail: research@angelbroking.com
Website: www.angelbroking.com
DISCLAIMER
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Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered
Syndicate Bank No No No No
Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors
Ratings (Returns):
Buy (> 15%) Reduce (-5% to -15%)
Accumulate (5% to 15%) Sell (< -15%)
Neutral (-5 to 5%)
May 3, 2013
11

Syndicate Bank 4Q FY 2013

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Syndicate Bank 4Q FY 2013

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4QFY2013 Result Update | Banking

Source: Company, Angel Research

Banking 7,786 1.3 145/84 168,581 10 19,576 5,944 SBNK.BO SNDB@IN

66.2 15.9 6.5 11.4

Abs. (%) Sensex Syndicate Bank

1yr 14.1 25.2

3yr 12.6 39.6

Please refer to important disclosures at the end of this report