1QFY2012 Result Update | Banking

August 11, 2011

Corporation Bank
Performance Highlights

Particulars (` cr) NII Pre-prov. profit PAT 1QFY12 708 576 351 4QFY11 762 747 345 % chg (qoq) (7.1) (22.8) 1.8 1QFY11 698 620 334 % chg (yoy) 1.4 (7.1) 5.3

BUY
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 Banking 6,722 0.8 815/446 8,278 10 17,059 5,138 CPBK.BO CRPBK@IN

`454 `566
12 Months

Source: Company, Angel Research

For 1QFY2012, Corporation Bank registered marginal net profit growth of 5.3% yoy (up 1.8% qoq) to `351cr, marginally above our estimates. The bank wrote back excess tax provision of ~`63cr during the quarter, leading to an effective tax rate of 14.1% for 1QFY2012. Asset quality remained stable with slippage ratio under 1% for 1QFY2012. We maintain our Buy rating on the stock. Loan book shrinks significantly; asset quality stable: During 1QFY2012, the banks advances declined substantially by 9.1% qoq (up by healthy 21.8% yoy) to `78,904cr, while deposits increased marginally by 0.9% qoq (up by healthy 29.4% yoy) to `117,782cr. The bank did not undertake any branch network expansion in 1QFY2012. Although the yield on advances increased by 89bp qoq to 11.2%, higher cost of deposits led to reported NIM declining by 38bp sequentially to 2.1%. During 1QFY2012, other income decreased by 40.9% qoq to `290cr due to a 58.1% qoq fall in treasury income to `34cr. On the assetquality front, the bank showed signs of improvement in 1QFY2012, with the slippage rate declining from 1.1% in 4QFY2011 to 0.8% in 1QFY2012. The bank has already shifted fully to system-based NPA recognition. Outlook and valuation: The banks low CASA ratio (~26%) has contributed to higher margin pressures, given high prevailing interest rates. However, currently the stock is trading at 0.7x FY2013E ABV, one of the cheapest in the industry, which we believe provides a margin of safety from the current macro headwinds. Also, the key positive for the bank is its proactive investment in modern distribution and payment systems, which has led to consistently faster CASA growth than peers. Further, with the switchover to system-based NPA recognition already out of the way, we expect relatively lower concerns to surface on the asset-quality front compared to peers. We recommend Buy on the stock with a target price of `566. Key financials
Y/E March (` cr) NII % chg Net profit % chg NIM (%) EPS (`) P/E (x) P/ABV (x) RoA (%) RoE (%)
Source: Company, Angel Research

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 58.5 30.8 5.0 5.7

Abs. (%) Sensex Corporation Bk

3m (8.2) (18.4)

1yr (5.6) (21.7)

3yr 10.0 60.6

FY2010
1,903 12.6 1,170 31.1 2.0 81.6 5.6 1.1 1.2 21.9

FY2011
2,940 54.5 1,413 20.8 2.4 95.4 4.8 1.0 1.1 21.9

FY2012E
2,942 0.1 1,363 (3.5) 2.0 92.0 4.9 0.8 0.9 17.8

FY2013E
3,364 14.3 1,492 9.4 1.9 100.7 4.5 0.7 0.8 17.0

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

Shrinivas Bhutda
022 3935 7800 Ext: 6845 shrinivas.bhutda@angelbroking.com

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

Please refer to important disclosures at the end of this report

Corporation Bank | 1QFY2012 Result Update

Exhibit 1: 1QFY2012 performance

Particulars (` cr) Interest earned Interest expenses NII Non-interest income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT EPS (`) Cost-to-income ratio (%) Effective tax rate (%) Net NPA (%)
Source: Company, Angel Research

1QFY12 2,978 2,271 708 290 997 421 576 167 409 58 351 23.7 42.2 14.1 0.5

4QFY11 2,555 1,794 762 490 1,252 506 747 269 477 132 345 23.3 40.4 27.6 0.5

% chg (qoq) 16.6 26.6 (7.1) (40.9) (20.4) (16.8) (22.8) (37.9) (14.2) (56.2) 1.8 1.8

1QFY11 2,028 1,330 698 266 964 343 620 127 494 160 334 23.3 35.6 32.4 0.4

% chg (yoy) 46.9 70.7 1.4 8.9 3.5 22.6 (7.1) 32.1 (17.1) (63.9) 5.3 2.0

Exhibit 2: 1QFY2012 Actual vs. estimates

Particulars (` cr) Net interest income Other income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT
Source: Company, Angel Research

Actual 708 290 997 421 576 167 409 58 351

Estimates 809 296 1,105 412 693 212 481 144 337

Var. (%) (12.5) (2.2) (9.8) 2.1 (16.8) (21.1) (14.9) (60.0) 4.4

Loan book shrinks significantly during 1QFY2012

During 1QFY2012, the banks advances declined substantially by 9.1% qoq (up by healthy 21.8% yoy) to `78,904cr, while deposits were up marginally by 0.9% qoq (up by healthy 29.4% yoy) to `117,782cr. The bank did not undertake any branch network expansion in 1QFY2012; however, management plans to open up 200 branches and operationalise 2,000 ATMs during FY2012. We expect the banks loan book to grow at 13.0% and 18.0% for FY2012 and FY2013, respectively.

August 11, 2011

Corporation Bank | 1QFY2012 Result Update

Exhibit 3: Sharp decline in advances for 1QFY2012

Adv. qoq chg (%) 25.0 20.0 15.0 10.0 5.0 (5.0) (10.0) (15.0) 72.0 Dep. qoq chg (%) 73.0 74.4 CDR (%, RHS) 76.0 72.0

Exhibit 4: No growth in the banks branch network

Branches 1,400 1,350 1,300 1,250 1,200 1,150 1,100 1,050 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12
Source: Company, Angel Research

ATMs (RHS) 1,250 1,174 1,250 1,300 1,250

71.2

20.7 18.5

2.5

7.7 6.5

3.1 1.7

0.9

67.0

68.0 64.0 60.0

1,145

1,159

1,200 1,150

1,159

1,176

1,255

1,361

1,362

(1.8)

(9.1)

1,100 1,050

1QFY11 2QFY11 3QFY11 4QFY11 1QFY12

Source: Company, Angel Research

NII growth below expectations

In 1QFY2012, the banks NII decreased by 7.1% qoq (up only marginally 1.4% yoy) to `708cr. Although the yield on advances increased by 89bp qoq to 11.2%, higher cost of deposits led to reported NIM declining by 38bp sequentially to 2.1% from 2.5% in 4QFY2011.

Exhibit 5: Reported NIM dips...

3.00 2.62 2.60 2.20 1.80 1.40 1.00 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 2.71 2.48 2.10

Exhibit 6: ...leading to slower NII growth

NII (` cr) YoY chg (%, RHS) 60.0 42.0 40.5 29.2 50.0 40.0 30.0 20.0 1,000 800 600 400

2.64

49.2

698

715

842

762

708

200 -

1.4

10.0 -

1QFY11 2QFY11 3QFY11 4QFY11 1QFY12

Source: Company, Angel Research

Source: Company, Angel Research

Weak non-interest income for 1QFY2012

During 1QFY2012, other income decreased by 40.9% qoq to `290cr due to a 58.1% qoq decline in treasury income to `34cr. Other income excluding treasury was also weak and declined by 37.5% to `255cr. We estimate core fee income to grow by 9.8% and 12.6% for FY2012 and FY2013, respectively.

NPA ratios stable; Slippage ratio falls below 1%

On the asset-quality front, the bank showed signs of improvement in 1QFY2012, with the slippage rate declining from 1.1% in 4QFY2011 to 0.8% in 1QFY2012. However, due to the 9.1% sequential decline in loan book, gross NPA ratio increased by 7.3% qoq to `848cr, while net NPA ratio increased by 3.5% qoq to `412cr. As of 1QFY2012, gross NPA ratio stood at 1.1%, while net NPA ratio stood at 0.5%. The banks provision coverage ratio including technical write-offs improved to 74.9% in 1QFY2012 from 74.7% in 4QFY2011.

August 11, 2011

Corporation Bank | 1QFY2012 Result Update

The bank shifted fully to system-based NPA recognition during FY2011, without taking the benefit of relaxation for smaller accounts till September 2011. We estimate the banks slippage ratio to improve from 1.3% in FY2011 to 1.1% in FY2013.

Exhibit 7: Slippages lower sequentially

2.0 1.6 1.2 0.8 0.4 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 1.1 1.1 1.1 0.8 1.8

Exhibit 8: NPA ratios stable

Gross NPAs (%) 1.4 1.2 1.0 0.8 0.6 0.4 72.8 76.7 74.7 74.9 78.5 Net NPAs (%) PCR (%, RHS) 80.0 78.0 76.0 74.0 72.0

1.1 0.4

1.1 0.4

1.3 0.6

0.9 0.5

1QFY11 2QFY11 3QFY11 4QFY11 1QFY12

Source: Company, Angel Research

1.1 0.5

0.2

70.0 68.0

Source: Company, Angel Research

Operating expenses decline qoq

For 1QFY2012, the banks operating expenses decreased by 16.8% qoq (up 1.9% 22.6% yoy) to `421cr, driven by a 28.2% sequential decline in employee expenses to `215cr on account of a high base, owing to pension expenses for retired employees in 4QFY2011.

Exhibit 9: Lower employee expenses for 1QFY2012

Staff exps (` cr) Other opex (` cr)

Exhibit 10: Stable opex-to-avg. assets

Cost-to-income ratio (%) 45.0 Opex to average assets (%, RHS) 2.0 1.2 1.3 1.5 1.2 1.2 1.5 1.0

600 450 300 150 171 1QFY11 2QFY11 3QFY11 368 181 187 370 187 183

506 421 206 206 300 343 173

40.0 35.0 30.0

35.6

39.1

33.4

40.4

215

20.0 4QFY11 1QFY12 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12

Source: Company, Angel Research

42.2

25.0

0.5 -

Source: Company, Angel Research

August 11, 2011

Corporation Bank | 1QFY2012 Result Update

Investment arguments
Modern, cost-efficient network to support moderate CASA growth
During FY200711, growth in the banks average CASA deposits was robust relative to peers at 20.4%. We believe the banks efficient and expanding network, supported by a consistent track record in early adoption of emerging technologies, creates a positive traction in its deposit franchise, which is tempered mainly by substantial competition from larger banks.

Low operating cost, superior asset quality owing to corporate, urban-centric business
Large corporates comprise ~38% of the banks credit book, leading to relatively low yield on advances, but simultaneously offering superior asset quality to the bank. Corporation Bank is also among the most cost-efficient PSU banks, both in terms of opex/average assets as well as branch and employee productivity.

Outlook and valuation

The banks low CASA ratio (~26%) has contributed to higher margin pressures, given high prevailing interest rates. However, currently the stock is trading at 0.7x FY2013E ABV, one of the cheapest in the industry, which we believe provides a margin of safety from the current macro headwinds. Also, the key positive for the bank is its proactive investment in modern distribution and payment systems, which has led to consistently faster CASA growth than peers. Further, with the switchover to system-based NPA recognition already out of the way, we expect relatively lower concerns to surface on the asset-quality front compared to peers. We value the bank at 0.9x FY2013E ABV and recommend Buy on the stock with a target price of `566.

Exhibit 11: 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 FY2012 18.0 18.0 24.9 2.2 1.7 15.0 1.3 73.0 FY2013 19.0 19.0 23.6 2.1 11.5 15.0 15.0 1.3 75.0

Revised estimates FY2012 13.0 14.0 25.7 2.0 (3.3) 15.0 1.1 75.0 FY2013 18.0 18.0 24.7 1.9 13.7 15.0 15.0 1.1 75.0

August 11, 2011

Corporation Bank | 1QFY2012 Result Update

Exhibit 12: Change in estimates

FY2012 Particulars (` cr) NII Non-interest income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT
Source: Angel Research

FY2013 Earlier estimates 3,698 1,501 5,199 2,017 3,182 826 2,356 764 1,592 Revised Var. (%) estimates 3,364 1,457 4,821 2,017 2,804 596 2,208 716 1,492 (9.0) (2.9) (7.3) (11.9) (27.8) (6.3) (6.3) (6.3)

Earlier estimates 3,284 1,347 4,631 1,754 2,877 757 2,120 636 1,484

Revised Var. (%) estimates 2,942 1,281 4,223 1,754 2,469 627 1,843 479 1,363 (10.4) (4.9) (8.8) (14.2) (17.3) (13.1) (24.7) (8.1)

Exhibit 13: P/ABV band

Price (`) 1,200 1,000 800 600 400 200 0 0.5x 0.8x 1.1x 1.4x 1.7x

Dec-03

Aug-08

Dec-10

Apr-06

Jul-04

Mar-02

Mar-09

Feb-05

Jul-11

May-03

Nov-06

Source: Company, Angel Research

August 11, 2011

May-10

Feb-12

Oct-02

Sep-05

Oct-09

Jun-07

Jan-08

Corporation Bank | 1QFY2012 Result Update

Exhibit 14: 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 Accumulate Buy Accumulate Buy Neutral Neutral Buy Accumulate Accumulate Accumulate Neutral Buy Neutral Neutral Accumulate Accumulate Neutral Accumulate Accumulate Buy Buy Neutral Accumulate Buy Neutral CMP Tgt. Upside (`) price (`) (%) 1,211 400 479 942 22 306 196 135 840 347 54 462 111 454 85 121 216 127 852 339 1,108 2,250 113 79 282 87 61 1,648 441 519 1,281 24 353 1,018 397 61 490 566 232 143 372 1,217 2,776 131 313 103 36.0 10.3 8.3 35.9 10.5 15.2 21.2 14.5 13.5 6.2 24.8 7.6 12.3 9.5 9.8 23.4 16.4 11.2 18.3 FY2013E P/ABV (x) 1.9 1.1 3.2 1.7 1.1 2.0 0.9 0.9 1.2 1.0 0.7 0.9 0.8 0.7 0.6 0.8 0.9 0.8 0.9 0.8 1.3 1.7 0.8 1.0 1.0 0.7 0.8 FY2013E Tgt. P/ABV (x) 2.7 1.2 3.5 2.3 1.3 2.3 1.4 1.1 0.8 1.0 0.9 1.0 0.9 0.9 1.4 2.1 0.9 1.2 0.9 FY2013E P/E (x) 10.0 8.2 16.7 13.3 6.8 10.3 5.5 6.0 6.3 5.4 5.1 5.3 5.4 4.5 4.1 5.6 5.4 4.9 5.8 5.7 6.9 8.3 5.2 4.6 6.0 5.1 6.6 FY11-13E CAGR in EPS (%) 20.9 19.0 30.5 25.8 11.6 19.1 9.2 (0.6) 10.8 18.7 30.8 (2.4) (14.0) 2.7 7.0 13.0 1.2 22.4 7.3 7.5 7.4 44.2 8.6 16.0 20.0 13.2 61.9 FY2013E RoA (%) 1.5 1.2 1.7 1.5 0.9 1.2 0.9 0.9 1.1 0.8 0.6 0.9 0.5 0.8 0.8 0.7 1.2 0.7 1.2 0.9 1.0 1.1 0.6 0.6 0.8 0.6 0.4 FY2013E RoE (%) 21.0 13.9 20.9 16.0 17.2 20.6 17.8 15.9 19.6 18.0 14.8 17.2 14.4 17.0 16.5 14.3 17.8 16.4 16.5 14.4 20.0 22.6 15.6 17.0 17.9 14.1 11.7

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

August 11, 2011

Corporation Bank | 1QFY2012 Result Update

Income statement
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 (%) FY08 1,443 4.8 700 9.4 2,143 6.2 892 11.0 1,251 3.1 186 (53.3) 1,065 30.5 330 31.0 735 37.1 FY09 1,691 17.2 1,107 58.2 2,798 30.6 1,047 17.3 1,752 40.0 365 96.8 1,386 30.1 493 35.6 893 21.5 FY10 1,903 12.6 1,493 34.9 3,397 21.4 1,260 20.4 2,137 22.0 474 29.8 1,662 19.9 492 29.6 1,170 31.1 FY11 2,940 54.5 1,324 (11.3) 4,264 25.5 1,642 30.3 2,622 22.7 689 45.2 1,934 16.3 520 26.9 1,413 20.8 FY12E 2,942 0.1 1,281 (3.3) 4,223 (1.0) 1,754 6.8 2,469 (5.8) 627 (9.0) 1,843 (4.7) 479 26.0 1,363 (3.5) FY13E 3,364 14.3 1,457 13.7 4,821 14.2 2,017 15.0 2,804 13.6 596 (4.9) 2,208 19.8 716 32.4 1,492 9.4

Balance sheet
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 (%) FY08 143 4,085 55,424 30.9 2,138 800 3,867 66,458 7,104 1,812 16,512 39,186 30.8 272 1,572 66,458 26.1 FY09 143 4,753 73,984 33.5 2,072 2,738 3,215 86,906 5,591 4,949 24,938 48,512 23.8 299 2,617 86,906 30.8 FY10 143 5,631 92,734 25.3 4,290 4,788 4,081 111,667 8,835 1,957 34,523 63,203 30.3 293 2,857 111,667 28.5 FY11 148 6,990 116,748 25.9 10,628 5,338 3,658 143,509 8,142 2,250 43,453 86,850 37.4 331 2,482 143,509 28.5 FY12E 148 8,035 133,092 14.0 10,505 6,031 3,802 161,613 8,651 3,232 48,432 98,141 13.0 362 2,795 161,613 12.6 FY13E 148 9,173 157,049 18.0 12,396 7,117 4,821 190,704 10,208 3,814 57,163 115,806 18.0 414 3,298 190,704 18.0

August 11, 2011

Corporation Bank | 1QFY2012 Result Update

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 2.4 0.3 2.1 0.2 2.3 0.9 3.3 1.5 1.8 0.6 1.2 14.9 18.4 2.2 0.5 1.7 0.6 2.3 0.9 3.2 1.4 1.8 0.6 1.2 16.8 19.6 1.9 0.5 1.4 0.6 2.1 0.9 2.9 1.3 1.7 0.5 1.2 18.6 21.9 2.3 0.5 1.8 0.2 1.9 0.9 2.8 1.3 1.5 0.4 1.1 19.8 21.9 1.9 0.4 1.5 0.0 1.6 0.8 2.4 1.1 1.2 0.3 0.9 19.9 17.8 1.9 0.3 1.6 0.0 1.6 0.8 2.4 1.1 1.3 0.4 0.8 20.1 17.0 8.9 1.5 2.3 7.3 1.3 2.8 5.6 1.1 3.6 4.8 1.0 4.4 4.9 0.8 4.1 4.5 0.7 4.5 51.2 294.8 10.5 62.2 341.1 12.5 81.6 398.3 16.5 95.4 466.4 20.0 92.0 552.4 18.5 100.7 629.3 20.5 1.5 0.3 0.6 0.2 77.1 1.1 0.3 0.6 0.2 74.2 1.0 0.3 1.0 0.3 80.8 0.9 0.5 1.3 0.4 74.7 1.5 0.6 1.1 0.3 75.0 1.9 0.6 1.1 0.3 75.0 35.0 70.7 12.1 9.6 31.4 65.6 12.7 8.3 28.6 68.2 14.4 8.7 26.0 74.4 13.3 8.2 25.7 73.7 14.3 8.8 24.7 73.7 14.0 8.4 2.5 41.6 1.2 18.4 2.3 37.4 1.2 19.6 2.0 37.1 1.2 21.9 2.4 38.5 1.1 21.9 2.0 41.5 0.9 17.8 1.9 41.8 0.8 17.0 FY08 FY09 FY10 FY11 FY12E FY13E

August 11, 2011

Corporation Bank | 1QFY2012 Result Update

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.

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

Corporation 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%)

August 11, 2011

10