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| India Infoline Research Team / 14:47 , Jul 23, 2010 |
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CMP Rs1,056, Target Rs1,246, Upside 17.9%
- Healthy growth in Advances; C/D ratio at multi-quarter high
- Impressive NIM management continues; YoF improvement came-in as a positive surprise
- Modest growth in fee income; C/I ratio spikes due to higher operating expenses
- Asset quality deteriorates, but not a cause for concern
- RoA and RoE decline but stay strong; bank remains adequately capitalized for growth
- Raise book value estimates; Retain BUY with TP Rs1,246
Result table
| (Rs m) |
Q1 FY11 |
Q4 FY10 |
% qoq |
Q1 FY10 |
% yoy |
| Total Interest Income |
59,919 |
56,076 |
6.9 |
52,074 |
15.1 |
| Interest expended |
(33,733) |
(31,097) |
8.5 |
(33,456) |
0.8 |
| Net Interest Income |
26,186 |
24,980 |
4.8 |
18,618 |
40.6 |
| Other income |
8,715 |
8,532 |
2.2 |
9,702 |
(10.2) |
| Total Income |
34,901 |
33,511 |
4.1 |
28,320 |
23.2 |
| Operating expenses |
(13,919) |
(11,001) |
26.5 |
(12,626) |
10.2 |
| Provisions |
(5,341) |
(6,219) |
- |
(3,018) |
- |
| PBT |
15,640 |
16,291 |
(4.0) |
12,676 |
23.4 |
| Tax |
(4,958) |
(5,756) |
- |
(4,355) |
- |
| Adjusted PAT |
10,683 |
10,536 |
1.4 |
8,321 |
28.4 |
| Exceptionals |
- |
815 |
- |
- |
- |
| Reported PAT |
10,683 |
11,350 |
(5.9) |
8,321 |
28.4 |
| EPS |
135.5 |
144.0 |
(5.9) |
105.6 |
28.4 |
| Key Ratios |
Q1 FY11 |
Q4 FY10 |
chg qoq |
Q1 FY10 |
chg yoy |
| NIM (%) |
3.9 |
4.0 |
(0.1) |
3.4 |
0.6 |
| Yield on adv (%) |
10.3 |
10.2 |
0.1 |
10.7 |
(0.4) |
| Yield on inv (%) |
6.8 |
6.6 |
0.2 |
6.7 |
0.1 |
| Yield on Funds (%) |
8.0 |
7.8 |
0.2 |
8.4 |
(0.4) |
| Cost of Deposits (%) |
5.0 |
4.9 |
0.1 |
5.9 |
(0.9) |
| Cost of Funds (%) |
4.5 |
4.4 |
0.1 |
5.4 |
(0.9) |
| CASA (%) |
40.9 |
40.8 |
0.0 |
41.3 |
(0.4) |
| C/D (x) |
0.77 |
0.75 |
0.02 |
0.72 |
0.05 |
| Non-int income (%) |
25.0 |
25.5 |
(0.5) |
34.3 |
(9.3) |
| Cost to Income (%) |
39.9 |
32.8 |
7.1 |
44.6 |
(4.7) |
| Provisions/Income (%) |
7.8 |
9.6 |
(1.8) |
4.9 |
2.9 |
| BV (Rs) |
548.7 |
529.0 |
19.7 |
443.1 |
105.6 |
| RoE (%) |
24.7 |
27.3 |
(2.6) |
24.6 |
0.1 |
| RoA (%) |
1.4 |
1.6 |
(0.2) |
1.4 |
0.0 |
| CAR (%) |
13.8 |
14.2 |
(0.4) |
14.5 |
(0.7) |
| Gross NPA (%) |
1.8 |
1.7 |
0.1 |
1.8 |
0.0 |
| Net NPA (%) |
0.7 |
0.5 |
0.1 |
0.2 |
0.5 | Source: Company, India Infoline Research
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