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

Pre-prov. profit 2,533 2,841 (10.8) 2,528 0.2

Source: Company, Angel Research

Punjab National Bank (PNB) registered a disappointing performance for2QFY2013, with its net profit declining by 11.6% yoy. The banks disappointingperformance was a result of a muted performance on the operating front(operating profit came in flat yoy) and considerably higher provisioning expenses onthe back of significant deterioration in the asset-quality, evident from elevated

slippages (quarterly slippages at a high of 6.2%) and ballooned restructuring.During 2QFY2013, advance for the bank

grew by healthy pace of 18.4% yoy aided by strong traction in services and retail

lending. Growth in CASA deposits came in healthy at 15.6% yoy (current deposits

grew by 19.2% yoy, while savings deposits grew by 14.8% yoy). Reported CASA ratio

improved by 170bp sequentially to 37.0%. Interest reversal of `163cr on slippages

and full effect of base rate reduction, resulted in a 43bp qoq decline in the yield on

advances, which coupled with a 6bp qoq decline in yield on investment, resulted in

a10bp qoq decline in reported NIMs to 3.5%. Non-interest income (excl. treasury) de-

grew by 2.4% yoy, due to flat performance on the fee income front and lower

recoveries. During the quarter, the bank disappointed on the asset quality front, with

slippages of `4,544cr compared to `2,769cr in 1QFY2013 and `2,819 in

4QFY2012. Annualized slippage ratio came in at 6.2% compared to 3.8% in1QFY2013 and 4.7% in 4QFY2012. Recoveries and upgrades during the quarter

came in much lower at `492cr compared to `1,466cr in 1QFY2013. Consequently,

the gross and net NPA levels increased significantly, on an absolute basis, by 40.4%

and 60.3%, qoq respectively. Going ahead, the management expects slippages to

continue in-line with the slowing economy. The bank restructured ~`2,770cr during

the quarter, thereby taking its outstanding restructured book to `27,852cr.

The banks valuations are currently at a low of 0.8x FY2014

ABV compared to its eight year range of 1.01.6x and median of 1.4x, due to the

asset quality concerns facing the sector, which are likely to persist for the next few

quarters for lack of visible macro-economic catalyst for improvement in the near term.

We have adjusted our estimates and target price downwards to factor in the

continued asset quality deterioration. The bank structurally has lower cost of depositsthan peers and has cyclically already experienced relatively higher asset quality pain

than peers. That said, valuation-wise, the stock trades at even below the lower end of

its historical range, factoring in most of the fundamental concerns.

% chg 39.3 13.6 13.6 17.7

% chg 13.5 10.2 (6.3) 21.7

NIM (%) 3.6 3.3 3.2 3.3

P/E (x) 5.4 5.3 5.6 4.6

P/ABV (x) 1.2 1.0 1.0 0.8

RoA (%) 1.3 1.2 0.9 1.0

RoE (%) 24.4 21.1 16.3 17.3


CMP `757

Target Price `843

Investment Period 12 Months

Stock Info

Sector Banking

Market Cap (` cr) 25,676

Beta 1.1

52 Week High / Low 1091/659

Avg. Daily Volume 96,898

Face Value (`) 10

BSE Sensex 18,636

Nifty 5,666

Reuters Code PNBK.BO

Bloomberg Code PNB@IN

Shareholding Pattern (%)

Promoters 56.1

MF / Banks / Indian Fls 20.6

FII / NRIs / OCBs 17.4

Indian Public / Others 5.9

Abs. (%) 3m 1yr 3yr

Sensex 10.7 4.7 16.1

PNB 5.7 (21.3) (9.8)

022 3935 7800 Ext: 6808

[email protected]

022 3935 7800 Ext: 6847

[email protected]

022 3935 7800 Ext: 6872

[email protected]

Performance Highlights

2QFY2013 Result Update | Banking

October 29, 2012

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Punjab National Bank | 2QFY2013 Result Update

October 29, 2012 2

Exhibit 1:2QFY2013 performance

- on Advances / Bills 7,987 8,197 (2.6) 7,045 13.4 16,184 13,621 18.8- on investments 2,311 2,283 1.2 1,852 24.8 4,594 3,538 29.8

- on balance with RBI & others 55 54 1.4 48 14.1 110 82 33.5

- on others 68 11 514.2 7 936.6 79 26 197.8

Other income excl. treasury 765 1,030 (25.7) 784 (2.4) 1,795 1,694 6.0

- Fee Income 475 666 (28.7) 477 (0.4) 1,141 1,075 6.1

- Treasury Income incl. MF Div. 140 136 2.9 105 33.3 276 279 (1.1)

- Recov. from written off a/cs 60 87 (31.0) 68 (11.8) 147 177 (16.9)

- Others 230 277 (16.8) 239 (3.6) 507 442 14.9

- Employee expenses 1,426 1,420 0.5 1,240 15.0 2,846 2,453 16.0

- Other Opex 596 601 (0.8) 573 3.9 1,196 1,086 10.2

- Provisions for NPAs 1,140 900 26.7 319 257.4 130.5

- Other Provisions (66) 132 (149.9) 391 (116.9) (56.3)

Effective Tax Rate (%) 27.0 31.1 (415)bp 33.7 (673)bp 29.3 32.0 (275)bp


Exhibit 2:2QFY2013 Actual vs Angel estimatesNet interest income 3,649 3,746 (2.6)

Other income 905 1,075 (15.8)

Operating expenses 2,022 2,042 (1.0)

Provisions & cont. 1,074 988 8.7

PBT 1,459 1,791 (18.5)

Prov. for taxes 393 581 (32.3)


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October 29, 2012 3

Exhibit 3:2QFY2013 performance analysisAdvances (`cr) 294,747 294,468 0.1 249,020 18.4

Deposits (`cr) 400,747 385,355 4.0 341,783 17.3Credit-to-Deposit Ratio (%) 73.5 76.4 (287)bp 72.9 69bp

Current deposits (`cr) 28,040 25,723 9.0 23,531 19.2

Saving deposits (`cr) 115,389 107,425 7.4 100,491 14.8

CASA deposits (` cr) 143,429 133,148 7.7 124,022 15.6

Reported CASA ratio (%) 37.0 35.6 140bp 37.1 (10)bp

CAR (%) 11.7 12.6 (84)bp 12.2 (50)bp

Tier 1 CAR (%) 8.7 9.3 (61)bp 8.4 35bp

Cost of deposits 6.9 7.0 (7)bp 6.5 39bp

Yield on advances 11.1 11.5 (43)bp 11.9 (83)bp

Yield on investments 7.9 7.9 (6)bp 7.8 8bp

Yield on funds 8.9 9.1 (26)bp 9.0 (14)bp

Cost of funds 5.8 5.9 (16)bp 5.5 23bp

Reported NIM 3.5 3.6 (10)bp 4.0 (45)bp

Cost-to-income ratio 44.4 41.6 283bp 41.8 262bp

Gross NPAs (` cr) 14,024 9,988 40.4 5,150 172.3

Gross NPAs (%) 4.5 3.3 112bp 2.1 241bp

Net NPAs (`cr) 7,883 4,917 60.3 2,089 277.5

Net NPAs (%) 2.7 1.7 101bp 0.8 185bp

Provision Coverage Ratio (%) 54.3 62.8 (850)bp 75.1 (2077)bp

Slippage ratio (%) 6.2 3.8 242bp 1.6 455bp

Credit cost (%) 1.0 0.8 19bp 0.3 66bp


Healthy business growth continues in 2QFY2013

During 2QFY2013, the banks business grew at a healthy pace, with advances

and deposits registering a growth of 18.4% and 17.3% yoy, respectively. Growth in

advances was primarily on the back of increased advances to the services sector

(growth of 45.8% yoy). Retail loan book for the bank increased by a healthy 20.3%

yoy, as robust growth was witnessed in all segments viz- housing, auto and others.

Overseas advances registered a growth of 62.1% yoy (partly on account of INR

depreciation). As of 2QFY2013, the overseas loan book for the bank accounted

for 9% of its total loan book. The banks commercial real estate exposure declined

by 8.5% yoy during 2QFY2013.

On the liabilities front, current deposits witnessed traction, with a healthy growth of

19.2% yoy (9.0% sequentially), while growth in saving deposits was relatively lower

at 14.8% yoy (7.4% qoq). Overall CASA deposits grew by 7.7% sequentially, much

higher than the growth of 4.0% qoq registered in overall deposits. Consequently,

the reported CASA ratio improved by 140bp qoq to 37.0%.

During 2QFY2013, the bank shed around `2,079cr of high costing bulk deposits

(including CDs). Consequentially, the banks share of bulk deposits (including

CDs) reduced from 22.2% as of 1QFY2013 and 23.8% as of 2QFY2012 to 20.8%

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October 29, 2012 4

as of 2QFY2013. As per the management, ~80% of outstanding bulk deposits

cost more than 9% and would be due for re-pricing in the next quarter. The

management is expected to reduce its high cost bulk deposits portfolio to ~15% by

FY2013, which though could lead to lower balance sheet growth, but would aidhigher NIMs.

Exhibit 4:Traction in services and retail lending aids healthy loan book Gr.Agri 40,291 44,591 (9.6) 35,076 14.9

Retail 29,745 29,280 1.6 24,732 20.3

MSME 30,701 30,960 (0.8) 29,145 5.3

Medium & Large Corporates 93,487 92,558 1.0 87,318 7.1

Comm. Real Estate 9,473 9,759 (2.9) 10,353 (8.5)

Services & Others 64,681 59,679 8.4 44,356 45.8

Food credit 5,723 6,615 (13.5) 4,214 35.8

Overseas advances 26,772 25,987 3.0 16,511 62.1


Exhibit 5:Business growth remains healthy


Exhibit 6:CASA ratio improve sequentially


NIMs decline by 10bp sequentiallyThe banks yield on advances declined by 43bp qoq, on account of a) interest

reversal of `163cr during the quarter, b) full impact of base rate cut in May 2012

and c) the banks policy of charging recently reduced rates for housing loan

products to existing customers. Yield on investments for the bank also came in

lower by 6bp sequentially to 7.9%. Overall, yield on funds declined by 26bp qoq

to 8.9%. The banks cost of deposits decreased marginally by 7bp qoq to 6.9%.

Consequently, the reported NIMs of the bank declined by 10bp qoq to 3.5%. The

management has maintained its NIMs guidance of ~3.5% for FY2013.

19.3

18.7

21.3

21.2

18.4

25.0

23.4

21.3

18.9

17.3

72.973.7

77.4

76.4

73.5

70.0

72.0

74.0

76.0

78.0

-

5.0

10.0

15.0

20.0

25.0

30.0

2QFY12 3QFY12 4QFY12 1QFY13 2QFY13

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

36.3

35.3

35.3

34.6

35.8

11.7 11.7 11.59.8

15.6

-

10.0

20.0

20.0

23.0

26.0

29.0

32.0

35.0

38.0


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

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October 29, 2012 5

Exhibit 7:Yield on funds lower by 26bp sequentially


Exhibit 8:NIM declines by 10bp qoq


Subdued performance on the non-interest income (excludingtreasury) front

During 2QFY2013, the non-interest income (excluding treasury) de-grew by 2.4%

yoy, due to flat performance on the fee income front and lower recoveries.

Commission, exchange and brokerage (CEB) income for the bank remained flat

on a yoy basis, as a 14.3% yoy growth in the LC/LG (letter of credit/ letter of

guarantee) income was offset by a 20.8% yoy decline in the processing fees

income stream. The bank has started selling life policies of MetLife from November

and has seen healthy traction in income on this front. Recoveries from written-off

accounts declined by 11.8% yoy to `60cr, whereas income from forex transactions

declined by 4.5% yoy to `127cr. Treasury income (including dividend from MFs)came in at `127cr compared to `133cr in 2QFY2012 and `212cr in 1QFY2013.

Overall, the non-interest income came in `905cr, registering a marginal growth of

1.7% yoy.

Exhibit 9:Growth in non-interest inc. aided by higher forex and CEB inc.CEB 475 666 (28.7) 477 (0.4)

Treasury incl. MF Dividend 140 136 2.9 105 33.3

Forex 127 212 (40.1) 133 (4.5)

Recoveries 60 87 (31.0) 68 (11.8)

Others 103 66 56.1 107 (3.7)

Other income excl. treasury 765 1,030 (25.7) 784 (2.5)


Slippages surge, amidst lower recoveries and/upgrades

During 2QFY2013, the bank disappointed significantly on the asset quality front,

with slippages of `4,544cr compared to `2,769cr in 1QFY2013 and `2,819 in

4QFY2012. Annualized slippage ratio came in at 6.2% compared to 3.8% in

1QFY2013 and 4.7% in 4QFY2012. Recoveries and upgrades during the quartercame in much lower at `492cr compared to `1,466cr in 1QFY2013.

Consequently, gross and net NPA levels increased significantly, on an absolute

9.019.18

8.67

9.13

8.87

7.00

7.50

8.00

8.50

9.00

9.50


(%)

3.953.88

3.503.60

3.50

2.60

2.80

3.00

3.20

3.40

3.60

3.80

4.00

4.20


(%)

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October 29, 2012 6

basis, by 40.4% and 60.3%, qoq respectively. Going ahead, the management

expects slippages to continue in-line with the slowing economy.

Additionally, the bank restructured ~`2,770cr during the quarter (compared to

`1,239cr restructured in 1QFY2013), thereby taking its outstanding restructuredbook, which is stated borrower-wise, to `27,852cr (9.4% of net advances). More

than 50% of the incremental restructuring came from the infrastructure sector

(which includes power). Other sectors that contributed to the incremental

restructuring during the quarter included textiles, iron & steel and, drilling. Out of

the outstanding restructured book, ~30.5% is power (majorly discoms). Slippages

from the restructuring book for the bank have been ~18.5%, considering total

slippages currently and outstanding restructured book as of 1HFY2012. The

provisioning coverage ratio for the bank dipped sharply by 850bp qoq and

2,077bp yoy to 54.3%.

Exhibit 10:Slippages came in at a high of 6.2%


Exhibit 11:NPA ratios jump up on higher slippages

Source: Company, Angel Research;

Exhibit 12:Slippages surge, amidst lower recoveries/upgrades in 2QFY13Opening 9,988 8,720 14.5 4,894 104.1 4,379

Additions 4,544 2,769 64.1 993 357.6 6,672

Deductions 508 1,500 (66.1) 737 (31.0) 2,331

- Write offs 16 34 (52.9) 18 (11.1) 126

- Recoveries 384 570 (32.6) 513 (25.1) 1,675

- Upgrades 108 896 (87.9) 206 (47.4) 530

Closing 14,024 9,988 40.4 5,150 172.3 8,720


Cost-to-income ratio up by 262bp yoy and 283bp qoq to 44.4%

Operating expenses for the bank were higher by 11.5% on a yoy basis, on the

back of 15.0% yoy increase in employee expenses (as provisions for employee

benefits as per AS-15 increased by 23.3% yoy) and 3.9% yoy increase in other

operating expenses. However, growth in operating income was modest at 4.9%

yoy, which led the cost-to-income ratio to increase by 262bp yoy and 283bp qoq

to 44.4%.

1.6

2.8

4.7

3.8

6.2

0.3

0.6

0.90.8

1.0

-

0.2

0.4

0.6

0.8

1.0

1.2

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0


Slippages (%) Credit cost (%, RHS)

2.1

2.4

2.9

3.3

4.5

0.8

1.1

1.5

1.7

2.7

75.170.0

62.7 62.8

54.3

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

-

1.0

2.0

3.0

4.0

5.0


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

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October 29, 2012 7

Exhibit 13:Steady branch expansion continues


Exhibit 14:Cost-to-income ratio spikes up on lower income


Investment arguments

Strong CASA legacy, but losing market share

PNB has a structural advantage of having relatively better CASA ratio of 37.0% (as

of 2QFY2013), which is driven by strong rural and semi-urban presence,

especially in North India (total of 5,748 branches and 6,000+ ATMs). Although

the high CASA ratio is expected to sustain the higher NIMs, the bank has been

losing its market share like most other public sector banks on account of slow

branch expansion and competition from private banks savings market share

declined by 53bp to 7.4% during FY200812.

Investment concerns

Weak asset quality not surprising

PNB was one of the highest risk-taking banks immediately post the Lehman crisis

and initially, started delivering very high yield on assets and ROEs of as much as

26%. For the last couple of years, we had been concerned that the inevitable

seasoning of that book would lead to asset quality issues for the bank and that is

what is getting increasingly reflected in the numbers.

During FY2012, slippage ratio for the bank was the highest in the last four years at

2.7%. In fact in 1HFY2013, the banks annualized slippage ratio has spiked upsharply to 4.2%. Taking into account the aggressive restructuring carried out in

2HFY2012, the banks relatively higher exposure to risky sectors and the overall

weak macro-economic environment, we remain cautious on the incremental asset

quality pressures in the near term.

Outlook and valuation

The banks valuations are currently at a low of 0.8x FY2014 ABV compared to its

eight year range of 1.01.6x and median of 1.4x, due to the asset quality concerns

facing the sector, which are likely to persist for the next few quarters for lack of

visible macro-economic catalyst for improvement in the near term. We haveadjusted our estimates and target price downwards to factor in the continued asset

quality deterioration. The bank structurally has lower cost of deposits than peers

and has cyclically already experienced relatively higher asset quality pain than

5,3

15

5,3

93

5,6

58

5,6

97

5,7

48

5,619

5,793

6,0096,059

6,005

5,300

5,400

5,500

5,600

5,700

5,800

5,900

6,000

6,100

5,000

5,100

5,200

5,300

5,400

5,500

5,600

5,700

5,800


Branches ATMs (RHS)

41.8

40.4

36.0

41.6

44.4

1.8 1.8

1.5

1.8 1.7

-

0.5

1.0

1.5

2.0

-

10.0

20.0

30.0

40.0

50.0


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

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October 29, 2012 8

peers. That said, valuation-wise, the stock trades at even below the lower end of its

historical range factoring in most of the fundamental concerns.

Exhibit 15:Key assumptions

Credit growth 12.0 14.0 12.0 15.0

Deposit growth 13.0 15.0 13.0 16.0

CASA ratio 35.2 34.9 35.2 34.6

NIMs 3.3 3.3 3.2 3.3

Other income growth 7.7 6.1 5.1 5.6

Growth in staff expenses 20.0 12.0 20.0 12.0

Growth in other expenses 12.0 12.0 7.0 10.0

Slippages 3.2 2.9 4.3 3.3Coverage 65.0 70.0 60.0 65.0

Source: Angel Research

Exhibit 16:Change in estimates

NII 15,408 15,236 (1.1) 17,902 17,939 0.2

Non-interest income 4,526 4,416 (2.4) 4,803 4,662 (2.9)

Operating expenses 8,221 8,107 (1.4) 9,207 9,031 (1.9)

Provisions & cont. 4,295 5,005 16.5 5,151 5,322 3.3

PBT 7,418 6,541 (11.8) 8,346 8,248 (1.2)

Prov. for taxes 2,407 1,962 (18.5) 2,708 2,676 (1.2)

Source: Angel Research

Exhibit 17:P/ABV band


0

400

800

1,200

1,600

2,000

2,400

A

pr-04

O

ct-04

A

pr-05

O

ct-05

A

pr-06

O

ct-06

A

pr-07

O

ct-07

A

pr-08

O

ct-08

A

pr-09

O

ct-09

A

pr-10

O

ct-10

A

pr-11

O

ct-11

A

pr-12

O

ct-12

Price (`) 0.5x 0.9x 1.3x 1.7x 2.1x

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October 29, 2012 9

Exhibit 18:Recommendation summary

AxisBk Buy 1,222 1,476 20.7 1.7 2.0 8.9 16.0 1.6 20.2

FedBk Neutral 486 - - 1.2 - 9.4 6.7 1.1 13.3

HDFCBk Neutral 641 - - 3.6 - 17.8 27.9 1.9 22.0

ICICIBk* Buy 1,069 1,270 18.9 1.7 2.0 12.9 21.7 1.5 15.7

SIB Accumulate 22 25 11.0 0.9 1.1 5.8 4.2 0.9 16.9

YesBk Buy 415 492 18.8 2.1 2.5 9.8 23.5 1.5 23.5

AllBk Neutral 132 - - 0.5 - 3.6 (0.4) 0.9 15.7

AndhBk Reduce 106 97 (8.5) 0.7 0.6 4.3 1.0 0.9 15.3

BOB Accumulate 754 860 14.0 0.9 1.0 5.5 6.4 1.0 17.0

BOI Accumulate 280 319 14.1 0.7 0.8 4.1 20.8 0.8 16.3

BOM Neutral 53 - - 0.7 - 4.4 38.9 0.7 16.1

CanBk Accumulate 421 449 6.5 0.8 0.8 4.9 7.2 0.9 15.3CentBk Neutral 71 - - 0.7 - 3.4 100.1 0.6 14.7

CorpBk Accumulate 405 447 10.5 0.7 0.7 4.0 (2.2) 0.8 15.1

DenaBk Neutral 107 - - 0.7 - 4.4 3.1 0.8 15.9

IDBI# Accumulate 95 108 14.0 0.6 0.7 4.1 20.1 0.9 14.4

IndBk Neutral 177 - - 0.6 - 4.2 2.8 1.1 16.3

IOB Neutral 74 - - 0.5 - 3.6 24.5 0.6 13.3

J&KBk Neutral 1,145 - - 1.0 - 6.1 6.5 1.3 17.7

OBC Neutral 315 - - 0.7 - 4.8 29.0 0.9 14.4

SBI* Accumulate 2,170 2,353 8.4 1.4 1.5 8.4 21.7 1.0 17.7

SynBk Neutral 120 - - 0.7 - 4.4 11.5 0.7 16.6

UcoBk Neutral 75 - - 0.8 - 4.6 7.9 0.6 14.4

UnionBk Accumulate 201 226 12.6 0.7 0.8 4.3 19.8 0.8 16.3

UtdBk Buy 65 78 19.3 0.5 0.6 2.9 20.7 0.7 16.2

VijBk Neutral 55 - - 0.7 - 4.8 12.1 0.5 13.0

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

Company Background

Punjab National Bank is the country's second-largest bank, with a balance sheet

size of over `4.7lakh cr and a pan-India network of ~5,750 branches. The bank'snetwork is primarily spread over northern India, in Punjab, Haryana and Uttar

Pradesh. Almost 62% of its branches are based in rural and semi-urban

hinterland, which results in a large legacy of low-cost CASA deposits (at 37.0% of

deposits, amongst the highest in the sector).

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October 29, 2012 10

Income statement

- YoY Growth (%) 27.0 20.6 39.3 13.6 13.6 17.7

- YoY Growth (%) 46.2 23.6 0.1 16.3 5.1 5.6

- YoY Growth (%) 32.1 21.5 27.6 14.2 11.6 15.0

- YoY Growth (%) 19.3 13.2 33.6 10.0 15.8 11.4

- YoY Growth (%) 43.4 27.5 23.6 17.2 8.8 17.5

- YoY Growth (%) 38.1 44.9 75.3 43.6 39.9 6.3

- YoY Growth (%) 44.5 24.0 11.2 7.2 (7.1) 26.1

- as a % of PBT 35.1 33.9 32.5 30.6 30.0 32.4

- YoY Growth (%) 50.9 26.4 13.5 10.2 (6.3) 21.7

Share Capital 315 315 317 339 339 339Reserve & Surplus 14,338 17,408 21,192 27,478 31,071 35,421

Deposits 209,761 249,330 312,899 379,588 428,935 497,565

- Growth (%) 26.0 18.9 25.5 21.3 13.0 16.0

Borrowings 4,374 8,572 20,399 26,074 28,332 32,695

Tier 2 Capital 8,085 10,690 11,190 11,190 10,911 10,638

Other Liab. & Prov. 10,045 10,318 12,328 13,524 15,533 17,804

Cash Balances 17,058 18,328 23,777 18,493 19,302 19,903

Bank Balances 4,355 5,146 5,914 10,335 11,619 13,409

Investments 63,385 77,724 95,162 122,629 140,706 166,195

Advances 154,703 186,601 242,107 293,775 329,028 378,382

- Growth (%) 29.5 20.6 29.7 21.3 12.0 15.0

Fixed Assets 2,397 2,513 3,106 3,169 3,456 3,868

Other Assets 5,020 6,320 8,259 9,793 11,010 12,705

- Growth (%) 24.1 20.1 27.5 21.1 12.4 15.4

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October 29, 2012 11

Ratio analysis

NIMs 3.3 3.2 3.6 3.3 3.2 3.3Cost to Income Ratio 42.3 39.4 41.3 39.7 41.3 40.0

RoA 1.4 1.4 1.3 1.2 0.9 1.0

RoE 25.8 26.6 24.4 21.1 16.3 17.3

CASA Ratio 38.8 40.8 38.5 35.3 35.2 34.6

Credit/Deposit Ratio 73.8 74.8 77.4 77.4 76.7 76.0

CAR 12.6 14.2 12.4 12.6 12.3 11.8

- Tier I 8.1 9.1 8.4 9.3 9.3 9.3

Gross NPAs 1.6 1.7 1.8 2.9 4.9 5.8

Net NPAs 0.2 0.5 0.8 1.5 2.4 2.4

Slippages 1.4 1.8 2.3 2.7 4.3 3.3

Loan Loss Prov. /Avg. Assets 0.4 0.4 0.6 0.6 0.9 0.8

Provision Coverage 89.5 81.2 73.2 62.7 60.0 65.0

EPS 98.0 123.9 139.9 144.0 135.0 164.3

ABVPS (75% cover.) 416.7 514.8 628.2 734.2 795.8 936.5

DPS 20.0 22.0 22.0 21.8 25.0 31.0

PER (x) 7.7 6.1 5.4 5.3 5.6 4.6

P/ABVPS (x) 1.8 1.5 1.2 1.0 1.0 0.8

Dividend Yield 2.6 2.9 2.9 2.9 3.3 4.1

NII 3.2 3.1 3.5 3.2 3.1 3.2

(-) Prov. Exp. 0.4 0.5 0.7 0.9 1.0 1.0

Adj. NII 2.7 2.6 2.8 2.4 2.1 2.3

Treasury 0.3 0.3 0.1 0.1 0.1 0.0

Int. Sens. Inc. 3.0 2.9 2.8 2.4 2.2 2.3

Other Inc. 1.0 1.0 1.0 0.9 0.8 0.8

Op. Inc. 4.0 3.9 3.8 3.4 3.0 3.1

Opex 1.9 1.8 1.9 1.7 1.7 1.6PBT 2.1 2.2 1.9 1.7 1.3 1.5

Taxes 0.8 0.7 0.6 0.5 0.4 0.5

Leverage 18.6 18.5 18.6 18.0 17.3 17.3

7/31/2019 PNB-2QFY2013RU

12/12


October 29 2012 12

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

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