Financials: A Story of Contracting Halves

Financials
We conducted our Banks/Financials conference with participation from ~20

banks/NBFCs and banking tour covering regulators/industry experts. Overall
feedback suggested very weak credit offtake but extremely mixed views on near
termassetquality.Apartfromeasingrates,themostcertainpositiveoutcomewas
oneasingregulatorypressureforthesectorespeciallyforNBFCs.Overallfeedback
was split in two contrasting halves with PSU banks at one end and retail
banks/NBFCsontheother(positive)andcorporatebanks/financierslikeICICI/IDFC
having a mixed outlook. We continue our preference for ICICI/Axis/Yes and also
believe most retail NBFCs are well positioned for an easing rate cycle and risks
fromtighteningregulationsisnearingtheend.
September10,2012
AdarshParasrampuria
adarshparasrampuria@plindia.com
+91-22-66322236
ParulGulati
parulgulati@plindia.com
+91-22-66322242
TableofContents
PageNo.
ListofParticipants
SnapshotKeytakeaways
Growth targets revised down; a few exceptions though: Most banks have
revised their system growth target to ~14-15% with negligible term/capex
related off take and SME/Retail is thus the focus area. PSU banks were most
cautious on growth outlook also constrained by FinMin dictat on bulk deposits.
Among private banks/NBFCs, kotak's caution inched up (~20% now v/s 25%
earlier) and Shriram (1215%) continues with its low growth expectations.
Mahindra Finance (~30%) still remains most sanguine on growth, followed by
IndusInd (+25%). ICICI bank still remains positive on domestic loan book (20%
growth) but expects slower core fee income momentum (<10% growth).
Marginstolookup;especiallyforprivatebanks/NBFCs: Lower wholesale rates

is a boon for NBFCs and also for banks like ICICI/Yes aided by lower competition
on bulk deposits. Pricing power is robust on the corporate side with retail seeing
some pricing competition. In spite of higher competition, retail banks/NBFCs
with fixed rate book (MMFS/HDFCB/KMB/IIB) and wholesale funded
institutions like IDFC/Yes have a positive outlook on margins. Reduced
dependence on bulk deposits is a structural positive for PSUs but we believe
PSU's margins may be impacted as the rate cut cycle begins in 2H13.
Incremental spreads for LICHF is fine (1.6-1.7%) but slow disbursements in
builder portfolio with impact the margin improvement process.
MixedfeedbackonAssetquality: (1) Retail asset quality continues to hold firm

except for CVs where SHTF/IIB continue to be sanguine but Kotak/HDFCBand
more importantly, CIBIL seemed more cautious. (2)Asset quality for PSUbanks
continue to remain more linked to macro which is not showing signs of pick-up
as yet (3) PFC/REC were positive on SEB reforms but CRISIL was suspect on a
complete turnaround for SEBs and PFCs involvement in most stressed power
assets is a further drag (4) Private corporate financiers like ICICI/Yes/IDFC
expect some marginal inch up in NPAs but dont see material change to their
credit costs guidance (ICICI -70/75bps, IDFC- Gross NPA of 1%).
Regulatory intensity to come off; a certain positive in an uncertain

environment: We believe regulatory intensity will be significantly lower now
with RBI keen to implement most regulations relating to NBFCs in a nondisruptive way (90 v/s 180 days) and pausing on tightening for gold NBFCs.
Dynamic provisions (final guidelines under work) could pose some challenges for
banks but RBI does not see capital issues for most banks under BASEL III.
Regulatorytrip:
RBI- Banks regulations
RBI -NBFC regulations
CIBIL takeaways
CRISIL takeaways
ICICI Bank
HDFC Bank
10
SBI
12
Kotak Bank
14
YES Bank
16
IndusInd
18
HDFC Limited
20
Shriram Transport
22
Mahindra Finance
24
PFC/REC
26
IDFC
29
LIC Housing
31
Union Bank
33
Central Bank
35
Indian Overseas Bank
37
UCO Bank
39
City Union Bank
41
Prabhudas Lilladher Pvt. Ltd. and/or its associates (the 'Firm') does and/or seeks to do business with companies covered in its research reports. As a result investors should be aware that
the Firm may have a conflict of interest that could affect the objectivity of the report. Investors should consider this report as only a single factor in making their investment decision.
Please refer to important disclosures and disclaimers at the end of the report
PostConferenceUpdate
Astoryofcontractinghalves
Financials
ListofParticipants
Monday,3rdSeptemberDay1
HDFC Bank
Tuesday,4thSeptemberDay2
Mr. Sashi Jagdishan
CFO
Mr. Bhavin Lakhpatwala
VP, Finance
State Bank of India Mr. Vishvesh Ramamoorthy CGM, FRT
ICICI Bank
Kotak Bank
Mr. Anindya Banerjee
Head, Corp. Strgy.
Mr. Rakesh Mookim
Investor Relation
Mr. Dipak Gupta
Jt. MD
Mr. Sundar Raman
AVP Ex. VP
Ms. Rita G
GM, PPR
PFC
Mr. Nagarajan
Dir. Finance
REC
Mr. D S Ahluwalia
Ex. Dir. Finance IDFC
Mr. Bimal Giri
Dir. Corp. Planning & IR
Mr. Sanjay Kumar
DGM, Finance
HDFC Ltd.
Mr. Keki Mistry
Vice Chairman & CEO
Mr. Jaideep Iyer
Deputy CFO
IndusInd Bank
Mr. Paul Abraham
COO
Mr. Aparajit Bhandarkar
Ex. VP
Mr. Sohali Chander
Head, Corp. Banking
Mr. Suresh Samtani
CFO
Mr. Narendra
CMD
Mr. Sudipto Sil
ACM, Fin. & IR
City Union Bank
Mr. S Sundar
CFO & Sr. GM
Mr. S Rajam
Asst. GM
YES Bank
LIC Housing
Shriram Transport Mr.Umesh Revankar

Union Bank
Mr. Sanjay Mundra
VP
Mr. D Sarkar
CMD
Wednesday,5thSeptember(RegulatoryTour,Mumbai)Day3
Mr. S S Mundra
ED
CIBIL (Credit Bureau)
Mr. S K Jain
ED
RBI- Banking regulations Mr. Deepak Singhal
MD
RBI - NBFC regulations
Mahindra Finance Mr. Ramesh Iyer
Central Bank
UCO Bank
MD
Mr. V Ravi
CFO
Mr. Dinesh Prajapati
Sr. GM
Mr. VK Tanksale
CMD
Mr. K Eswar
GM, Treasury
Mr. Arun Kaul
CMD
September 10, 2012
CRISIL
Mr. Satish Pillai
COO
CGM
Mrs. Mangala Vaidyanathan GM

Mrs. Tuli Roy
GM
Mr. RK Wangu
GM
Mr. Sudip Sural
Director
Mr. Suman Chowdhary
Director
Financials
SnapshotofConferencetakeawaysforcoveragecompanies
Outlookon
PositiveFeedback
NegativeFeedback
1. Still expect domestic growth of ~20%

2. Margins stable at 3.0% near term. Expect ~20bps
improvement over next 2 yrs
1. Core fees growth may not be double digits as earlier envisaged
HDFC Bank
1. Next leg of ROA improvement from operating cost

efficiency improvement (2-3% reduction in C/I expected)
1. Some strain in CVs for the industry but manageable at the

moment
Kotak Bank
1. Asset book positioned for a rising rate cycle.

2. Conservative mgt view to help avoid future stress
1. Growth expectation now at ~20%

2. Signifcant problem in CVs especially considering a fuel price
hike
IndusInd
1. Still very positive on growth expectations

2. Expects fee income momentum to continue as well
1. Management sanguine on CV asset quality -- Feedback from

peers/CIBIL cautious
1. Biggest beneficiary of easing wholesale rates
1. Growth expectations remain moderate (~20%)

2. NPA accretion to inch up but manageable
SBI
1. SBI still maintaining guidance of 3.75% on margins -Deposit rate cut positive
1. Growth outlook very weak- Expect 14-15% growth

2. Macro situation too fluid for slippages guidance --Macro
weakness to weigh on near term asset quality
HDFC Ltd
1. Growth continues to remain robust

2. No impact from pre-payment charges abolition
LICHF
1. Growth outlook robust

2. No impact from pre-payment charges abolition
1. Margin recovery to be more gradual than previously estimated

due to slower than expected pickup in developer book
PFC/REC
1. Management positive on SEB reforms. UP tariffs to be

raised in Sep-12
1. PFC involved in most stressed private power projects.

2. CRISIL not sanguine on SEB health even after reforms
MMFS
1. Most bullish on growth -- ~30% expectation

2. Asset quality on tractor/CV cycle manageable - Monsoon
recovery positive
1. Growth expectation continue to remain moderate
2. Management not unduly concerned on CV cycle - 80%
customers linked to movement of essentials
Growth NIMs
Fees
Opex
ICICI Bank
Yes Bank
SHTF
Positive feedback/improvement
September 10, 2012
Asset
Quality
Neutral/No change in guidance
1. Feedback from peers/CIBIL on CV cycle negative
Negative feedback/Deterioration
Financials
RBIMeetingwithHeadofBankingregulations:
Provisionsonrestructuringnecessary:RBI believes with ~10% NPV hits and 5%

standard provisioning recommended, overall provisioning for restructured
accounts is meaningful now. RBI does not distinguish between sectors for
provisioning on restructured accounts but for systemic issues they have in the
past given exceptions on restructuring and lower provision on SEB restructuring
could be a possibility once the FRP for SEBs is finalised.
Dynamic provisioning: RBI is currently working on the final guidelines on

dynamic provisioning and what surprised was that RBI still believes that they
could start implementation of dynamic provisions by FY14 v/s market
expectations of some push back given the current credit cycle. According to RBI,
just 8-9 banks mostly private sector banks have segmental data to compute
internal credit loss ratios and hence dynamic provisions when implemented will
be a drag for most PSU banks.
ComfortablewithgoldlendingbyBanks:After tightening of gold lending norms

for NBFCs, the regulatory gap for gold lending between banks and NBFCs have
increased but RBI seemed comfortable with lower restrictions on gold lending
by banks and the key reason is the limited complaints they have received
against banks in past either regarding pricing or auctions. Also, gold exposures is
a lot less concentrated for banks v/s standalone gold lending companies.
BaselIIIcapitalrequirementsnotasystemicissue:RBI has recently estimated

that banks would need Rs1.75trn over FY12-18 to comply with Basel III capital
guidelines. Though some small PSU banks will have to face significant dilution,
RBI does not believe that capital raising will be a systemic issue considering
capital raised/generated by banks in the last 4-5yrs.
Otherhighlights:(1) RBI in its banking supervision has not come across strong
evidence of evergreening by banks using NBFCs as a conduit as this was one of
the larger investor concern in our meetings. (2) RBI acknowledges that moral
hazard issues have led to higher Agri NPAs but believes that it is a national
necessity and considerations on new PSL guidelines will be limited.
Increaseinprovisionsforrestructuring
recommendedmorelikelytobeaccepted
RBIintendstoimplementdynamic
provisionsbyFY14Weexpectbanks
resistancemaydelayimplementation.
RBIcomfortablewithGoldlendingby
banksWedontexpectadverse
regulationsforbanksconcentratingon
goldlending
RBIdoesnotseeBaselIIIcapitalneedsasa
systemicchallenge
September 10, 2012
Financials
RBIMeetingwithHeadofNBFCregulations:
Overall regulatory landscape for NBFCs: RBI indicated that the tighter
regulations for NBFCs over the last ~24mnts, is just a catch up on regulations for
NBFCs v/s Banks as there have not been significant changes in NBFC regulations
from 1997-98 to 2010 while Basel-I/II and other periodic regulatory changes
happened for Banks. RBI appreciates NBFCs role in promoting financial inclusion
and considers them systemically very important.
Regulatory window for PSU NBFCs: PFC/RECs NPA recognition and also
provisioning norms allowed are much less stringent than other PSUs. In line with
Usha Thorat committee recos, RBI wants to close the regulatory gap by
introducing standard provisioning for PFC/REC. Feedback from RBI and PFC
suggests that the window to provide standard provisioning will be upto FY16,
limiting provisioning to only 0.05% of advances a yr. Restructuring could
increase for IFCs and RBI is working on the same.
Gold NBFCs: High growth and some pricing and auctions process was RBI key
issues with Gold NBFCs and with growth coming off and also lesser complains on
auctions/pricing, we sense regulatory intervention will be fairly limited including
no intention of any regulations regarding auctions. RBI is cognizant of LTV
calculation misuse (including making charges) but does not see any near term
regulatory intervention on this. Also, RBI is willing to reconsider relaxing some
tightening of these regulations if they see industry wide discipline in all
processes mentioned above.
NPArecognition180to90days: RBI intends to bring down NPA recognition of

NBFCs from 180 to 90 days but does not intend to implement this in a disruptive
manner and this stance seemed a little different from our earlier interactions
hinting to higher transition time to move from 180 to 90 days NPA recognition.
Others:(1) On investor concerns on smaller NBFCs being used as a conduit for

ever greening by banks, RBI mentioned that nothing material has come to their
attention and this is regularly monitored by both the Banks/NBFCs supervisory
team (2) Do not intend to extend dynamic provisions for NBFCs in the near
term.
Overall,RBIcomfortablewithNBFCsin
general
ConvergenceonNPArecognitionand
provisionforPSUNBFCs(PFC/REC)onlyby
FY16
ComfortablenowwithslowgrowthofGold
NBFCs.Doesnotintendtomicromanage
pricingandauctioningprocessofgold
NBFCs
ImplementationofNPArecognitionfrom
180to90daysonlyinnondisruptive
manner
Overall, we continue to maintain that regulatory intensity will significantly come

off for NBFCs and peaking rate cycle + manageable retail asset quality builds a
positiveenvironmentformostNBFCs.
September 10, 2012
Financials
CIBILCreditbureau
Retailassetqualityexceptforsomestress
inCVsatthemargin
Updateoncurrentretailassetquality:Retail asset quality continues to hold up

and CIBIL believes the structural story of better underwriting by banks aided by
data from CIBIL continues. Auto especially CVs is the only segment where CIBIL
is sensing some marginal deterioration in credit behaviour and they are keeping
a close watch but even in these categories they have not seen material
deterioration in 30/60/90 day delinquencies.
DetailsfromourJuly12UpdateonCIBIL:
CIBIL Breadth and depth: All Banks/NBFC/Financial institutions are mandated

to submit monthly data on retail loans to any one credit bureau, largest of them
being CIBIL. CIBILs coverage is extensive with ~230m a/cs and ~135m
individuals covering ~800 financial institutions. Unlike general perception of
CIBILisaton of only urban/metro centres, only 35% of CIBILs retail records are
from top-20 cities, with 65% from smaller towns and rural areas. CIBIL not only
gets data on NPAs but also repayment details of every retail loan o/s and hence,
they can generate reports on early stress indicators like 30/60 day overdue as
well.
CIBIL, gauging usageand the impact: Most retail loan applications are
referred to CIBIL and the hit rate (probability of finding a CIBIL record) on
aggregate basis is ~70-75%, with credit cards having a hit rate of +90% and 2wheelers of <50%. According to CIBIL, surprisingly, delinquency rates for
portfolio without CIBIL hit are similar to portfolio with CIBIL hit. This does not
undermine importance of credit bureaus but this is because banks/NBFCs do
more extensive due-diligence while lending to people without a CIBIL record.
PSU banks use of CIBIL data is limited though a few PSU banks have increased
number of CIBIL queries.
Lowcreditcostsinunsecuredretailbook,afunctionofcherrypickingamidst
low growth and competitive intensity: CIBIL suggests that high credit quality
being witnessed in the unsecured loan book could be attributed to calibrated
growth strategy by the players in the market. Further post the FY08-09 hit, lots
of player have avoided this segment allowing the remaining players to cheery
pick among the customers. Loan growth in credit card has inched up in FY12 but
still remain very modest at 15% and CIBIL does not see any negative surprises in
unsecured book in the near term.
For more details please refer to our July-12 note CIBIL'isedIndiaNosignsof

anycrackyet
September 10, 2012
Financials
S&PCRISIL:MeetingwithHeadofInfraandBanksrating
Increase in restructructing from RS2trn to Rs3.25trn does not still consider

problemofprivatepowersectorlargely:CRISIL recently increased its FY11-13
forecast for additional restructuring from Rs2.0trn to Rs3.25trn with large part
of the increase coming from SEB restructuring increasing from Rs0.6trn to
Rs1.5trn in line with the FRP (financial restructuring package) for SEBs being
discussed. CRISIL does not expect large scale restructuring on their private
power portfolio in FY13 and hence their increased restructuring forecast does
not capture restructuring expected in private power mainly in FY14-15.
InfraConcernedwithgas;alsonotveryconvincedonSEBhealth:On the Infra

side, CRISIL is extremely concerned on private gas based power plants as
substituting domestic gas for imported LNG is still not viable in spite of ~20% fall
in RPLNG short term contracts. On coal based plants, CRISIL expects some
restructuring but with domestic coal production ramp up does not expect many
projects to be duds though the recent scams makes it difficult to put a number
to the overall private power restructuring expected. Though most SEBs have
taken back to back hikes, CRISIL overall was not too sanguine about SEB health
as even the best outcome on current reforms at best reduce current losses and
the estimated Rs3.0trn of loans will continue to remain a burden and hence we
do not rule out some NPV hits in the FRP for SEBs.
Upgrade: downgrade ratio still worsening: The upgrade to downgrade ratios

continue to worsen and currently is just under 1.0x v/s 1.15x 6mnts back but
CRISIL does not expected the ratio to worsen to 0.85x low seen in the FY08-09
crisis. All CRISIL's estimates are based on GDP growth expectation of 5.7%
growth and downside to this GDP growth estimate could imply further
deterioration.
Some positive news flow though: Though CRISIL was not at all sanguine on
asset quality some possible positives in the near term according to them could
be (1) The FRP for SEBs could provide some liquidity to the SEB chain and some
ancillary industries facing stress due to cash flow constraints could get some
relief post the implementation of the FRP, though CRISIL cautions that
additional liquidity will still be required to fund interim SEB losses. (2) Longer
term NPA worries from thermal power plants seem limited given viable
alternate of imported coal and more importantly increase in domestic coal
production expected at a steady pace.
Retailassetqualityexceptforsomestress
inCVsatthemargin
InInfraGasassetsremainarealworry.
Also,CRISILisnotveryconvincedaboutthe
reformprocess
September 10, 2012
ICICIBank
September10,2012
Still targeting20% growth in domestic loan book: ICICI maintained its growth
target of 20% in the domestic business largely driven by project disbursals and
pick up in retail credit and such an outcome will be positive in our view as most
banks did indicate that system growth could be ~15%. The target areas in retail
are housing, Auto, and CVs, even though price competition has intensified.
Feeincomecouldmissguidance: Growth in fees income looks challenging given

the weak environment especially large corporate related fund and non fund
based fees and hence core fee could be lower than double digit growth
guidance. But with a low base of project finance, 3rd party and corporate fees,
ICICI expects pick up in fee growth from FY14.
Structural improvement in margins: Mgt maintained their overall FY13 NIM

guidance of +3.0% and expects margins to inch further to 3.2% over the next 23yrs due to (1) Lower share of overseas book (2) Higher share of non-mortgage
secured credit and (3) easing rates. Wholesale TD rates are coming off
marginally but the cost of retail deposits remains sticky (before SBI cut TD rates).
ICICI is awaiting impact of SBIs lower mortgage rates on their volumes before
moving on mortgage rates.
RIDF investments: There could be a rise in RIDF requirements, but ultimate

allocation to ICICI could be less as the total PSL shortfall in the system could rise
due to increased requirements from foreign banks. Within PSL, ICICI is looking at
gold loans and tractor loans but does not want to do direct Agri lending.
AssetQuality: ICICI maintained its credit cost guidance of 75bps and noted that
the guidance has buffer for slippages like Deccan (Rs5bn exposure). Retail
quality continues to remain robust and but ICICI is seeing some inch-up in
slippages in their SME book but stress seems manageable. Restructuring
pipeline continues to remain thin. ICICI does have some non fund based
exposure to Essar (NavBharat acquisition) which is facing CBI scrutiny currently.
Adarsh Parasrampuria
+91-22-66322236
Parul Gulati
+91-22-66322242
Rating
Price
Target Price
Implied Upside
Sensex
Nifty
BUY
Rs934
Rs1,100
17.8%
17,767
5,363
(PricesasonSeptember10,2012)
Tradingdata
Market Cap. (Rs bn)
Shares o/s (m)
3M Avg. Daily value (Rs m)
Majorshareholders
Promoters
Foreign
Domestic Inst.
Public & Other
StockPerformance
(%)
1M
6M
Absolute
(2.1)
2.2
Relative
(3.3)
0.7
HowwedifferfromConsensus
EPS(Rs)
PL
Cons.
2013
68.0
79.4
2014
78.8
92.6
1,079.3
1,155.2
4008.9
0.00%
34.85%
27.79%
37.36%
12M
4.2
(1.2)
%Diff.
14.4
14.9
PricePerformance(RIC:ICBK.BO,BB:ICICIBCIN)
(Rs)
1,200
Keyfinancials(Y/eMarch)
Net interest income (Rs m)
Growth(%)
Operating profit (Rs m)
PAT (Rs m)
EPS (Rs)
Growth(%)
Net DPS (Rs)
2011
90,169
11.1
90,476
51,514
44.7
23.9
14.0
2012
107,342
19.0
103,865
64,653
56.0
25.1
14.0
2013E
131,311
22.3
129,986
78,535
68.0
21.5
17.0
2014E
154,445
17.6
154,013
91,008
78.8
15.9
19.7
2011
2.34
9.7
1.34
2.0
2.0
20.9
1.5
2012
2.44
11.2
1.47
1.8
1.8
16.7
1.5
2013E
2.62
12.4
1.57
1.6
1.6
13.7
1.8
2014E
2.71
13.2
1.60
1.5
1.5
11.9
2.1
1,000
800
600
400
200
Source:Bloomberg
Sep-12
Jul-12
May-12
Mar-12
Jan-12
Nov-11
Sep-11
Profitability&Valuation
NIM(%)
RoAE(%)
RoAA(%)
P / BV (x)
P / ABV (x)
PE (x)
Netdividendyield(%)
Source:CompanyData;PLResearch
PrabhudasLilladher Pvt. Ltd. and/or its associates (the 'Firm') does and/or seeks to do business with companies covered in its research reports. As a result investors should be aware that the
Firm may have a conflict of interest that could affect the objectivity of the report. Investors should consider this report as only a single factor in making their investment decision.
ICICI Bank
IncomeStatement(Rsm)
Y/eMarch
Int. Earned from Adv.
Int. Earned from Invt.
Others
Total Interest Income
Interest expense
NII
Growth(%)
Treasury Income
NTNII
Non Interest Income
Total Income
Growth(%)
Operating Expense
OperatingProfit
Growth(%)
NPA Provisions
Investment Provisions
Total Provisions
PBT
Tax Provisions
EffectiveTaxRate(%)
PAT
Growth(%)
BalanceSheet(Rsm)
Y/eMarch
2011
2012
2013E
2014E
164,248
79,052
16,441
259,740
169,571
90,169
11.1
(2,023)
68,501
66,479
326,219
(1.7)
66,172
90,476
(7.0)
19,769
2,038
22,868
67,607
16,093
23.8
51,514
28.0
221,299
96,840
17,287
335,427
228,085
107,342
19.0
(757)
75,784
75,028
410,454
25.8
78,504
103,865
14.8
9,932
4,132
15,891
87,973
23,321
26.5
64,653
25.5
259,119
113,373
19,016
391,508
260,197
131,311
22.3
4,000
85,627
89,627
481,135
17.2
90,953
129,986
25.1
21,404
1,000
22,404
107,582
29,047
27.0
78,535
21.5
293,749
127,783
21,739
443,271
288,827
154,445
17.6
4,500
99,584
104,084
547,355
13.8
104,515
154,013
18.5
28,345
1,000
29,345
124,668
33,660
27.0
91,008
15.9
2011
2012
2013E
2014E
Par Value
10
No. of equity shares
1,152
Equity
11,518
Networth
550,909
Adj. Networth
526,836
Deposits
2,256,021
Growth(%)
11.6
Low Cost deposits
1,016,465
%oftotaldeposits
45.1
TotalLiabilities
4,062,336
Net Advances
2,163,659
Growth(%)
19.4
Investments
1,346,859
TotalAssets
4,062,336
Source:CompanyData,PLResearch.
10
1,155
11,552
604,052
585,444
2,555,000
13.3
1,110,194
43.5
4,736,471
2,537,277
17.3
1,595,600
4,736,471
10
1,155
11,552
659,603
638,428
2,995,777
17.3
1,304,715
43.6
5,272,929
2,917,868
15.0
1,702,078
5,272,929
10
1,155
11,552
723,976
698,671
3,560,326
18.8
1,554,147
43.7
6,132,489
3,399,316
16.5
1,962,952
6,132,489
QuarterlyFinancials(Rsm)
Y/eMarch
Q2FY12
Interest Income
Interest Expense
NetInterestIncome
Non Interest Income
CEB
Treasury
NetTotalIncome
Operating Expenses
Employee Expenses
Other Expenses
OperatingProfit
Core Operating Profit
Provisions
Loan loss provisions
Investment Depreciation
Profitbeforetax
Tax
PATbeforeEO
Extraordinary item
PAT
Q3FY12
Q4FY12
Q1FY13
81,576
56,512
25,064
17,396
18,200
(800)
42,460
18,922
8,427
10,495
23,538
24,338
3,188
20,350
5,318
15,032
15,032
85,919
58,799
27,120
18,919
19,570
(650)
46,039
19,168
8,366
10,495
26,871
27,521
3,411
23,460
6,179
17,281
17,281
91,746
60,699
31,048
22,285
20,700
1,580
53,332
22,216
11,031
11,185
31,116
29,536
4,693
26,423
7,405
19,018
19,018
95,457
63,527
31,929
18,799
19,010
(210)
50,729
21,235
9,870
11,365
29,493
29,703
4,659
24,835
6,684
18,151
18,151
2011
2012
2013E
2014E
934
934
1,152
1,155
1,076,145 1,079,260
26.5
22.8
44.7
56.0
478
523
478
523
20.9
16.7
2.0
1.8
2.0
1.8
14.0
14.0
1.5
1.5
934
1,155
1,079,260
20.5
68.0
571
571
13.7
1.6
1.6
17.0
1.8
934
1,155
1,079,260
17.6
78.8
627
627
11.9
1.5
1.5
19.7
2.1
KeyRatios
Y/eMarch
CMP (Rs)
Equity Shrs. Os. (m)
Market Cap (Rs m)
M/CaptoAUM(%)
EPS (Rs)
Book Value (Rs)
Adj. BV (75%) (Rs)
P/E (x)
P/BV (x)
P/ABV (x)
DPS (Rs)
DividendYield(%)
Profitability(%)
Y/eMarch
2011
2012
2013E
2014E
2.3
1.3
9.7
2.4
1.5
11.2
2.6
1.6
12.4
2.7
1.6
13.2
Efficiency
Y/eMarch
2011
2012
2013E
2014E
CostIncomeRatio(%)
CDRatio(%)
Business per Emp. (Rs m)
Profit per Emp. (Rs m)
Business per Branch (Rs m)
Profit per Branch (Rs m)
42.2
95.9
78
9
1,748
20
43.0
99.3
78
10
1,751
22
41.2
97.4
78
10
1,768
23
40.4
95.5
80
11
1,809
24
AssetQuality
Y/eMarch
2011
2012
2013E
2014E
Gross NPAs (Rs m)

100,333
Net NPAs (Rs m)
24,074
Gr.NPAstoGrossAdv.(%)
4.6
NetNPAstoNetAdv.(%)
1.1
NPACoverage(%)
76.0
94,744
18,608
3.7
0.7
80.4
107,811
21,175
3.7
0.7
80.4
128,842
25,306
3.8
0.7
80.4
NIM
RoAA
RoAE
September 10, 2012
HDFCBank
September10,2012
Asset Quality: Marginally cautious on CVs; sanguine on others: HDFCB was

sanguine on all parts of their retail book except some pockets of pain in MHCV
segments. In the mid sized fleet category (~50 fleet size), HDFCB has seen
cheque bounce rates going up but again they believe that delinquency levels is
just normalising from very low credit costs levels. In spite of some inch-up in
delinquencies expected in CVs, HDFCB continues to maintain its ~80-100bps of
credit cost guidance which has proven to be conservative over last 6 qtrs.
Maintain margin guidance: HDFCB maintained their margin guidance of 4.14.3% range in spite of some pricing competition in Cars/CVs as they believe that
falling rate environment will be positive for their fixed rate lending book and
hence expect to maintain margin in a tight range.
Cost efficiency improvement Next profitability driver: As credit costs are at

cyclical lows, HDFCB believes that the next round of ROA improvement will be
led by cost efficiency improvement with 50-100bps yrly improvement in costincome to be expected over the next 2-3yrs. HDFCB is not the most aggressive in
terms of employee compensation (operating currently at the 2nd quartile) and
believes the new branch strain will get lower over the next 2-3 yrs and will be a
key factor in improving cost efficiency.
PSL targets Opportunity rather than burden HDFCB well positioned: Of all
banks in our conference, HDFCB was the only one which sees the PSL guidelines
as an opportunity. Management said that they are present in ~400 districts of
the 650 districts and they can tap ~200 more districts profitably. Also, they have
added PSL targets to branch staff KRAs over last 2-3 yrs and have seen strong
branch driven traction on PSL lending.
+91-22-66322236
Parul Gulati
+91-22-66322242
Rating
Price
Target Price
Implied Upside
Sensex
Nifty
Accumulate
Rs591
Rs610
3.2%
17,767
5,363
Tradingdata
Market Cap. (Rs bn)
Shares o/s (m)
Majorshareholders
Promoters
Foreign
Domestic Inst.
Public & Other
StockPerformance
(%)
1M
6M
Absolute
(1.8)
13.0
Relative
(3.0)
11.5
EPS(Rs)
PL
Cons.
2013
28.1
27.8
2014
33.4
34.6
1,387.2
2,346.7
1574
23.06%
31.13%
10.66%
35.15%
12M
24.9
19.6
%Diff.
1.3
3.4
PricePerformance(RIC:HDBK.BO,BB:HDFCBIN)
(Rs)
700
600
500
400
300
200
100
0
Growth(%)
PAT (Rs m)
EPS (Rs)
Growth(%)
Net DPS (Rs)
2011
105,431
25.7
77,254
39,264
16.9
31.0
3.3
2012
122,968
16.6
89,504
51,671
22.0
30.4
4.3
2013E
152,369
23.9
114,322
65,952
28.1
27.6
5.5
2014E
183,798
20.6
141,074
78,479
33.4
19.0
5.7
2011
4.22
16.7
1.57
5.4
5.5
35.0
0.6
2012
4.00
18.7
1.68
4.6
4.7
26.8
0.7
2013E
4.15
20.3
1.79
4.0
4.0
21.0
0.9
2014E
4.16
20.6
1.78
3.4
3.4
17.7
1.0
Source:Bloomberg
Sep-12
Jul-12
May-12
Mar-12
Jan-12
Nov-11
Sep-11
NIM(%)
RoAE(%)
RoAA(%)
P / BV (x)
P / ABV (x)
PE (x)
Netdividendyield(%)
HDFC Bank
Y/eMarch
Others
Interest expense
NII
Growth(%)
Treasury Income
NTNII
Non Interest Income
Total Income
Growth(%)
Operating Expense
OperatingProfit
Growth(%)
NPA Provisions
Total Provisions
PBT
Tax Provisions
EffectiveTaxRate(%)
PAT
Growth(%)
BalanceSheet(Rsm)
Y/eMarch
2011
2012
2013E
2014E
150,850
46,754
1,678
199,282
93,851
105,431
25.7
(534)
43,886
43,352
242,634
21.4
71,529
77,254
20.2
14,430
19,061
58,193
18,929
32.5
39,264
33.1
205,366
65,046
2,452
272,864
149,896
122,968
16.6
(1,944)
54,381
52,437
325,300
34.1
85,901
89,504
15.9
8,021
14,367
75,137
23,466
31.2
51,671
31.6
243,405
82,541
2,319
328,264
175,895
152,369
23.9
2,000
66,163
68,163
396,427
21.9
106,210
114,322
27.7
16,870
18,043
96,280
30,328
31.5
65,952
27.6
294,714
95,428
2,481
392,623
208,824
183,798
20.6
3,000
80,802
83,802
476,424
20.2
126,526
141,074
23.4
24,747
26,506
114,568
36,089
31.5
78,479
19.0
2011
2012
2013E
2014E
Par Value
2
2,326
Equity
4,652
Networth
253,793
Adj. Networth
250,829
Deposits
2,085,864
Growth(%)
24.6
Low Cost deposits
1,099,083
%oftotaldeposits
52.7
TotalLiabilities
2,773,517
Net Advances
1,599,827
Growth(%)
27.1
Investments
709,293
TotalAssets
2,773,517
2
2,347
4,693
299,244
295,720
2,467,064
18.3
1,194,059
48.4
3,379,093
1,954,200
22.2
974,829
3,379,098
2
2,347
4,693
350,126
345,561
2,937,985
19.1
1,445,488
49.2
3,969,988
2,345,040
20.0
1,081,949
3,969,988
2
2,347
4,693
412,987
406,337
3,686,418
25.5
1,824,776
49.5
4,870,093
2,931,300
25.0
1,300,729
4,870,093
Y/eMarch
Q2FY12
Interest Income
Interest Expense
NetInterestIncome
Non Interest Income
CEB
Treasury
NetTotalIncome
Operating Expenses
Employee Expenses
Other Expenses
OperatingProfit
Provisions
Profitbeforetax
Tax
PATbeforeEO
Extraordinary item
PAT
Q3FY12
Q4FY12
Q1FY13
67,177
37,732
29,445
12,117
12,059
(13)
41,562
20,304
8,231
12,073
21,258
21,271
3,661
17,598
5,604
11,994
11,994
72,026
40,867
31,160
14,200
14,932
(818)
45,360
21,580
8,674
12,905
23,780
24,598
3,292
20,488
6,191
14,297
14,297
73,880
39,997
33,883
14,920
15,625
(715)
48,803
24,671
9,284
15,387
24,132
24,847
2,983
21,149
6,618
14,531
14,531
80,074
45,234
34,841
15,295
14,581
665
50,135
24,326
9,932
14,394
25,809
25,144
4,873
20,936
6,762
14,174
14,174
2011
2012
2013E
2014E
591
591
2,326
2,347
1,375,089 1,387,245
49.6
41.1
16.9
22.0
109
128
108
126
35.0
26.8
5.4
4.6
5.5
4.7
3.3
4.3
0.6
0.7
591
2,347
1,387,245
34.9
28.1
149
148
21.0
4.0
4.0
5.5
0.9
591
2,347
1,387,245
28.5
33.4
176
174
17.7
3.4
3.4
5.7
1.0
KeyRatios
Y/eMarch
CMP (Rs)
Market Cap (Rs m)
M/CaptoAUM(%)
EPS (Rs)
Book Value (Rs)
Adj. BV (75%) (Rs)
P/E (x)
P/BV (x)
P/ABV (x)
DPS (Rs)
DividendYield(%)
Profitability(%)
Y/eMarch
2011
2012
2013E
2014E
4.2
1.6
16.7
4.0
1.7
18.7
4.1
1.8
20.3
4.2
1.8
20.6
Efficiency
Y/eMarch
2011
2012
2013E
2014E
CostIncomeRatio(%)
CDRatio(%)
48.1
76.7
66
7
1,856
20
49.0
79.2
69
8
1,936
23
48.2
79.8
72
9
2,011
25
47.3
79.5
78
9
2,191
26
AssetQuality
Y/eMarch
2011
2012
2013E
2014E
Gross NPAs (Rs m)

16,943
Net NPAs (Rs m)
2,964
1.1
NetNPAstoNetAdv.(%)
0.2
NPACoverage(%)
82.5
19,994
3,523
1.0
0.2
82.4
25,906
4,565
1.1
0.2
82.4
37,738
6,650
1.3
0.2
82.4
NIM
RoAA
RoAE
September 10, 2012
11
StateBankofIndia
September10,2012
Credit growth sluggish; push on retail to continue: SBI is seeing very limited
pickup in industrial credit and hence acknowledged that they now expect
system credit growth of 14-15%. For SBI, deposit growth was stronger than
industry trend of 13-14% and hence SBI has moved on lowering deposit rates. As
growth remain elusive in other segments, SBI management said that they will
continue to concentrate on retail segments as perceived risk is lower but it is
still too early to ascertain impact from the cut in rates in mortgages/autos.
Maintains margin guidance of 3.75%; we see some risks: In spite of its

aggressive retail pricing, SBI maintained its margin guidance of 3.75% for FY13
and management believes that they are just passing on the benefit of SLR cut
and not offering low rates at the cost of margins. SBI has reduced deposit rate
by 50-100bps which is again positive for margins, but very low rates on retail,
cut in rates for SME customers and high NPA % will pressure margins in our view
Corporate asset quality Weak Macro will continue to weight: After

disappointing the street in 1Q13 on delinquencies, SBI continues to refrain from
providing guidance on slippages as Macro situation continues to remain fluid.
Management re-iterated that they will have ~Rs30bn of recoveries over next 2
qtrs from slippages they had in 1Q13. We believe a significant pick up in asset
quality is unlikely in the near term given weak macros. Also, SBI seems to have
some exposure to companies where CBI respective coal block allocations.
+91-22-66322236
Parul Gulati
+91-22-66322242
Rating
Price
Target Price
Implied Upside
Sensex
Nifty
Accumulate
Rs1,861
Rs2,100
12.8%
17,767
5,363
Tradingdata
Market Cap. (Rs bn)
Shares o/s (m)
Majorshareholders
Promoters
Foreign
Domestic Inst.
Public & Other
StockPerformance
(%)
1M
6M
Absolute
(1.4)
(16.4)
Relative
(2.6)
(17.9)
EPS(Rs)
PL
Cons.
2013
281.9
269.1
2014
316.1
315.4
1,248.9
671.0
7885.8
61.58%
8.52%
17.31%
12.59%
12M
(4.7)
(10.0)
%Diff.
4.8
0.2
PricePerformance(RIC:SBI.BO,BB:SBININ)
(Rs)
3,000
Growth(%)
PAT (Rs m)
EPS (Rs)
Growth(%)
Net DPS (Rs)
2011
455,500
36.2
328,735
108,139
170.3
(7.6)
25.2
2012
578,778
27.1
403,012
154,173
229.8
34.9
35.0
2013E
621,348
7.4
423,520
189,193
281.9
22.7
42.0
2014E
700,160
12.7
464,071
212,113
316.1
12.1
50.4
2011
2.95
13.0
0.70
1.4
1.5
10.9
1.4
2012
3.33
16.3
0.89
1.2
1.2
8.1
1.9
2013E
3.18
16.6
0.97
1.0
1.1
6.6
2.3
2014E
3.12
16.3
0.94
0.9
1.0
5.9
2.7
2,500
2,000
1,500
1,000
500
Source:Bloomberg
Sep-12
Jul-12
May-12
Mar-12
Jan-12
Nov-11
Sep-11
NIM(%)
RoAE(%)
RoAA(%)
P / BV (x)
P / ABV (x)
PE (x)
Netdividendyield(%)
State Bank of India

Y/eMarch
Others
Interest expense
NII
Growth(%)
Treasury Income
NTNII
Non Interest Income
Total Income
Growth(%)
Operating Expense
OperatingProfit
Growth(%)
NPA Provisions
Total Provisions
PBT
Tax Provisions
EffectiveTaxRate(%)
PAT
Growth(%)
BalanceSheet(Rsm)
Y/eMarch
2011
2012
2013E
2014E
837,972 1,113,415
276,795
337,052
21,597
21,507
1,136,364 1,471,974
680,864
893,196
455,500 578,778
36.2
27.1
10,614
(9,668)
184,197
193,171
194,811
183,503
1,331,176 1,655,477
13.0
24.4
321,577
359,269
328,735 403,012
34.1
22.6
125,176
155,147
7,661
8,556
133,198
162,444
195,537 240,568
87,398
86,395
44.7
35.9
108,139 154,173
(7.6)
42.6
1,283,663
380,777
25,032
1,689,472
1,068,124
621,348
7.4
4,400
209,239
213,639
1,903,111
15.0
411,467
423,520
5.1
138,739
(5,000)
136,864
286,656
97,463
34.0
189,193
22.7
1,468,166
425,667
29,185
1,923,017
1,222,857
700,160
12.7
6,600
234,347
240,947
2,163,965
13.7
477,036
464,071
9.6
139,563
142,688
321,383
109,270
34.0
212,113
12.1
2011
2012
2013E
2014E
Par Value
10
635
Equity
6,350
Networth
834,712
Adj. Networth
671,981
Deposits
12,555,625
Growth(%)
12.5
Low Cost deposits
5,637,899
%oftotaldeposits
44.9
TotalLiabilities
16,449,168
Net Advances
10,064,015
Growth(%)
15.7
Investments
4,191,564
TotalAssets
16,449,168
10
671
6,710
1,062,300
851,349
14,146,894
12.7
5,755,887
40.7
18,262,305
11,636,702
15.6
4,609,491
18,262,305
10
671
6,710
1,218,518
885,742
16,045,051
13.4
6,528,182
40.7
20,760,254
13,382,207
15.0
4,951,629
20,760,254
10
671
6,710
1,391,061
990,890
18,754,242
16.9
7,630,460
40.7
24,164,779
15,657,183
17.0
5,683,186
24,164,779
Y/eMarch
Q2FY12
Q3FY12
Q4FY12
Q1FY13
Interest Income
Interest Expense
NetInterestIncome
Non Interest Income
CEB
Treasury
NetTotalIncome
Operating Expenses
Employee Expenses
Other Expenses
OperatingProfit
Provisions
Profitbeforetax
Tax
PATbeforeEO
Extraordinary item
PAT
259,671
155,452
104,219
34,272
26,003
281
138,492
63,749
39,143
24,605
74,743
74,462
33,855
40,888
12,784
28,104
28,104
276,614
161,956
114,659
21,260
26,415
(10,904)
135,918
63,318
39,113
24,205
72,600
83,504
24,074
48,526
15,895
32,631
32,631
286,955
169,918
117,038
52,640
42,160
(260)
169,678
73,710
54,310
19,400
95,968
96,228
31,404
64,564
24,061
40,503
40,503
289,168
177,979
111,189
34,988
26,027
2,210
146,177
64,410
41,371
23,039
81,767
79,557
24,563
57,204
19,688
37,516
37,516
2011
2012
2013E
2014E
1,861
1,861
635
671
1,181,812 1,248,915
7.2
6.8
170.3
229.8
1,315
1,583
1,213
1,493
10.9
8.1
1.4
1.2
1.5
1.2
25.2
35.0
1.4
1.9
1,861
671
1,248,915
6.0
281.9
1,816
1,658
6.6
1.0
1.1
42.0
2.3
1,861
671
1,248,915
5.2
316.1
2,073
1,902
5.9
0.9
1.0
50.4
2.7
KeyRatios
Y/eMarch
CMP (Rs)
Market Cap (Rs m)
M/CaptoAUM(%)
EPS (Rs)
Book Value (Rs)
Adj. BV (75%) (Rs)
P/E (x)
P/BV (x)
P/ABV (x)
DPS (Rs)
DividendYield(%)
Profitability(%)
Y/eMarch
2011
2012
2013E
2014E
2.9
0.7
13.0
3.3
0.9
16.3
3.2
1.0
16.6
3.1
0.9
16.3
Efficiency
Y/eMarch
2011
2012
2013E
2014E
CostIncomeRatio(%)
CDRatio(%)
49.4
80.2
101
5
1,670
8
47.1
82.3
107
6
1,763
11
49.3
83.4
113
7
1,863
12
50.7
83.5
123
8
2,017
12
AssetQuality
Y/eMarch
2011
2012
2013E
2014E
Gross NPAs (Rs m)

323,163
Net NPAs (Rs m)
162,731
3.2
NetNPAstoNetAdv.(%)
1.6
NPACoverage(%)
49.6
496,487
210,951
4.3
1.8
57.5
745,814
332,776
5.6
2.5
55.4
938,948
400,171
6.0
2.6
57.4
NIM
RoAA
RoAE
September 10, 2012
13
KotakMahindraBank
September10,2012
Slowing on Growth: With managements slow economic growth scenario

materializing, Kotak has moderated growth targets significantly to ~20% v/s
+30% growth delivered over the last few qtrs with significant slowdown in CV/CE
portfolio. Core fee income will also moderate but kotak expects to monetise fee
assets in their distressed portfolio and that could aid P&L over next 12mnts.
MomentumonSAacquisitionstrong:SA account accretion continues at a brisk

pace with ~40-45% of the acquisition being coroprate salary accounts. Kotak
believes that even at ~100bps lower term deposit rates from current levels, they
would be willing to hold on their SA rate of 6% as once acquired balances are
generally sticky and SA offers them a signifcant cross sell oppurtunity.
AssetqualityExtremelycautiousonCVs: Kotak has been sounding caution on

CVs for the last 3 mnts but management commentary on CV cycle was more
draconian now especially considering an impending diesel price hike. Kotak
expects some negative outcome for mid level fleet operators over the nest
6mnts. Kotaks corporate book asset quality is manageable but is very
concerned on some industry Infra exposures.
AssetqualityVeryearlyinpickingupweakingsignalinSME/corporates: Kotak
discussed that their ability to exit problem accounts early is linked to (1) Smaller
size of their exposure in most corporates (2) short term nature of their funding
and (3) Cashflow escrowing in most cases.
+91-22-66322236
Parul Gulati
+91-22-66322242
Rating
Price
Target Price
Implied Upside
Sensex
Nifty
Reduce
Rs571
Rs530
-7.2%
17,767
5,363
Tradingdata
Market Cap. (Rs bn)
Shares o/s (m)
Majorshareholders
Promoters
Foreign
Domestic Inst.
Public & Other
StockPerformance
(%)
1M
6M
Absolute
(1.6)
2.3
Relative
(2.8)
0.8
EPS(Rs)
PL
Cons.
2013
23.7
28.2
2014
29.2
34.3
463.0
810.3
545.9
45.21%
28.58%
4.46%
21.75%
12M
24.3
19.0
%Diff.
16.2
14.9
PricePerformance(RIC:KTKM.BO,BB:KMBIN)
(Rs)
700
600
500
400
300
200
100
0
Growth(%)
PAT (Rs m)
EPS (Rs)
Growth(%)
Net DPS (Rs)
2011
29,972
15.7
23,135
14,924
20.3
14.5
0.5
2012
34,698
15.8
25,533
16,650
20.5
1.5
0.6
2013E
42,694
23.0
31,397
19,178
23.7
15.2
0.7
2014E
52,010
21.8
39,604
23,642
29.2
23.3
0.9
2011
5.21
15.5
2.59
3.8
3.8
28.2
0.1
2012
4.68
13.9
2.25
3.6
3.6
27.8
0.1
2013E
4.66
13.9
2.09
3.2
3.2
24.1
0.1
2014E
4.63
15.1
2.11
2.8
2.8
19.6
0.1
Source:Bloomberg
Sep-12
Jul-12
May-12
Mar-12
Jan-12
Nov-11
Sep-11
NIM(%)
RoAE(%)
RoAA(%)
P / BV (x)
P / ABV (x)
PE (x)
Netdividendyield(%)
Kotak Mahindra Bank

Y/eMarch
Others
Interest expense
NII
Growth(%)
Treasury Income
NTNII
Non Interest Income
Total Income
Growth(%)
Operating Expense
OperatingProfit
Growth(%)
NPA Provisions
Total Provisions
PBT
Tax Provisions
EffectiveTaxRate(%)
PAT
Growth(%)
BalanceSheet(Rsm)
Y/eMarch
2011
2012
2013E
2014E
48,691
9,572
182
58,445
28,473
29,972
15.7
912
16,815
17,727
76,171
21.5
24,563
23,135
(1.4)
1,250
531
1,613
21,522
6,598
30.7
14,924
21.1
69,014
13,064
64
82,141
47,444
34,698
15.8
920
17,130
18,050
100,191
31.5
27,214
25,533
10.4
1,200
(181)
1,007
24,526
7,876
32.1
16,650
11.6
87,728
16,472
64
104,265
61,570
42,694
23.0
800
19,457
20,257
124,521
24.3
31,554
31,397
23.0
3,128
3,128
28,269
9,092
32.2
19,178
15.2
105,314
20,473
64
125,852
73,842
52,010
21.8
1,100
23,350
24,450
150,302
20.7
36,856
39,604
26.1
4,725
4,725
34,879
11,237
32.2
23,642
23.3
2013E
2014E
5
5
810
810
4,052
4,052
128,824
146,864
124,889
143,458
385,365
486,415
31.7
26.2
124,024
160,517
32.2
33.0
825,262 1,006,134
541,637
664,545
28.1
22.7
212,377
258,245
825,262 1,006,134
5
810
4,052
166,275
162,486
628,842
29.3
216,950
34.5
1,238,997
819,872
23.4
319,900
1,238,997
2011
Par Value
5
737
Equity
3,684
Networth
111,134
Adj. Networth
107,218
Deposits
292,610
Growth(%)
22.5
Low Cost deposits
87,905
%oftotaldeposits
30.0
TotalLiabilities
656,622
Net Advances
422,706
Growth(%)
37.4
Investments
167,789
TotalAssets
656,622
2012
Y/eMarch
Q2FY12
Q3FY12
Q4FY12
Q1FY13
14,646
8,592
6,055
2,125
8,179
4,379
2,152
2,228
3,800
3,800
(24)
3,824
1,224
2,600
2,600
16,410
9,895
6,515
2,820
9,334
4,898
2,260
2,638
4,436
4,436
307
4,129
1,368
2,761
2,761
17,448
10,571
6,877
2,542
9,420
4,966
2,248
2,718
4,453
4,453
46
4,407
1,438
2,969
2,969
18,158
10,945
7,213
2,411
9,625
5,141
2,566
2,575
4,484
4,484
341
4,142
1,318
2,824
2,824
2011
2012
2013E
2014E
571
737
421,048
64.1
20.3
151
149
28.2
3.8
3.8
0.5
0.1
571
810
463,023
56.1
20.5
159
157
27.8
3.6
3.6
0.6
0.1
571
810
463,023
46.0
23.7
181
179
24.1
3.2
3.2
0.7
0.1
571
810
463,023
37.4
29.2
205
203
19.6
2.8
2.8
0.9
0.1
2011
2012
2013E
2014E
5.2
2.6
15.5
4.7
2.2
13.9
4.7
2.1
13.9
4.6
2.1
15.1
Efficiency
Y/eMarch
2011
2012
2013E
2014E
CostIncomeRatio(%)
CDRatio(%)
51.5
144.5
68
14
2,228
46
51.6
140.6
77
14
2,511
45
50.1
136.6
83
14
2,711
45
48.2
130.4
91
15
2,967
48
AssetQuality
Y/eMarch
2011
2012
2013E
2014E
Gross NPAs (Rs m)

6,977
Net NPAs (Rs m)
3,916
1.7
NetNPAstoNetAdv.(%)
0.9
NPACoverage(%)
43.9
7,141
3,935
1.3
0.7
44.9
8,722
3,406
1.3
0.5
60.9
10,903
3,789
1.3
0.5
65.2
Interest Income
Interest Expense
NetInterestIncome
Non Interest Income
CEB
Treasury
NetTotalIncome
Operating Expenses
Employee Expenses
Other Expenses
OperatingProfit
Provisions
Profitbeforetax
Tax
PATbeforeEO
Extraordinary item
PAT
KeyRatios
Y/eMarch
CMP (Rs)
Market Cap (Rs m)
M/CaptoAUM(%)
EPS (Rs)
Book Value (Rs)
Adj. BV (75%) (Rs)
P/E (x)
P/BV (x)
P/ABV (x)
DPS (Rs)
DividendYield(%)
Profitability(%)
Y/eMarch
NIM
RoAA
RoAE
September 10, 2012
15
YESBank
September10,2012
Growth moderating: Yes bank is aiming a growth of mid 20s, but notes that
RWA growth could be less than balance sheet growth as share of retail advances
increases. As of now the approach to growth is that of flight to safety and the
bank has sold of some of the loans/credit substitutes. The bank has a bottom up
approach towards opportunities and have not taken a sectoral focus on lending.
Asset Quality Not seeing much stress as of now: The bank is not seeing any
large concerns on asset quality even at 5-6% GDP growth and also the
restructuring pipeline continues to remain slim. The bank pointed out that
delinquency should not exceed 2008 levels but put a caveat that in 2008 the
economic down cycle was very short.
MarginsExpectedtoimprove:Yes bank pointed out positive impact on margin

from increasing proportion of CASA, lower cost of wholesale funds as PSU have
cut down on bulk deposits. Also with the rate cycle expected to ease, Yes bank
will be a beneficiary of wholesale rates coming off.
TradeoffbetweengrowthandOpexefficiency:In spite of slowing growth, Yes

intends to continue to build its branch network to 800 by FY15. Management
believes that ~150-180 branches added over last 1.5 yrs will improve in
efficiency and aid improvement in operating efficiency even as new additions
add to the branch strain. Cost income have moved up to 38% from 35% last yr
and management is comfortable with ~40-42% cot income as they get more
retail both on liabilities and assets.
+91-22-66322236
Parul Gulati
+91-22-66322242
Rating
Price
Target Price
Implied Upside
Sensex
Nifty
BUY
Rs333
Rs450
35.1%
17,767
5,363
Tradingdata
Market Cap. (Rs bn)
Shares o/s (m)
Majorshareholders
Promoters
Foreign
Domestic Inst.
Public & Other
StockPerformance
(%)
1M
6M
Absolute
(6.6)
(9.1)
Relative
(7.8)
(10.6)
EPS(Rs)
PL
Cons.
2013
33.4
33.3
2014
41.6
39.8
117.6
353.0
1048.5
26.06%
42.88%
14.16%
16.90%
12M
13.3
8.0
%Diff.
0.4
4.4
PricePerformance(RIC:YESB.BO,BB:YESIN)
(Rs)
450
400
350
300
250
200
150
100
50
0
Growth(%)
PAT (Rs m)
EPS (Rs)
Growth(%)
Net DPS (Rs)
2011
12,469
58.3
11,904
7,271
20.9
48.9
2.5
2012
16,156
29.6
15,417
9,784
27.7
32.1
2.5
2013E
21,172
31.0
20,152
11,805
33.4
20.8
3.5
2014E
26,521
25.3
25,348
14,671
41.6
24.3
4.5
2011
2.61
21.1
1.52
3.0
3.0
15.9
0.8
2012
2.44
23.1
1.47
2.5
2.5
12.0
0.8
2013E
2.60
22.7
1.45
2.1
2.1
10.0
1.1
2014E
2.70
23.1
1.50
1.7
1.7
8.0
1.4
Source:Bloomberg
Sep-12
Jul-12
May-12
Mar-12
Jan-12
Nov-11
Sep-11
NIM(%)
RoAE(%)
RoAA(%)
P / BV (x)
P / ABV (x)
PE (x)
Netdividendyield(%)
YES Bank
Y/eMarch
Others
Interest expense
NII
Growth(%)
Treasury Income
NTNII
Non Interest Income
Total Income
Growth(%)
Operating Expense
OperatingProfit
Growth(%)
NPA Provisions
Total Provisions
PBT
Tax Provisions
EffectiveTaxRate(%)
PAT
Growth(%)
BalanceSheet(Rsm)
Y/eMarch
2011
2012
2013E
2014E
29,891
10,273
253
40,417
27,948
12,469
58.3
(464)
6,696
6,233
46,650
58.4
6,798
11,904
37.9
914
(72)
982
10,922
3,650
33.4
7,271
52.2
44,268
18,470
335
63,074
46,917
16,156
29.6
379
8,207
8,586
71,659
53.6
9,325
15,417
29.5
523
160
902
14,514
4,730
32.6
9,784
34.6
51,134
24,913
436
76,483
55,311
21,172
31.0
800
10,772
11,572
88,056
22.9
12,593
20,152
30.7
2,631
2,631
17,521
5,716
32.6
11,805
20.7
61,244
28,211
463
89,917
63,396
26,521
25.3
1,000
14,227
15,227
105,144
19.4
16,400
25,348
25.8
3,574
3,574
21,774
7,103
32.6
14,671
24.3
2011
2012
2013E
2014E
Par Value
10
347
Equity
3,471
Networth
37,941
Adj. Networth
37,849
Deposits
459,389
Growth(%)
71.4
Low Cost deposits
47,509
%oftotaldeposits
10.3
TotalLiabilities
590,070
Net Advances
343,636
Growth(%)
54.8
Investments
188,288
TotalAssets
590,070
10
353
3,530
46,766
46,592
491,517
7.0
73,921
15.0
736,621
379,886
10.5
277,573
736,621
10
353
3,530
57,126
56,793
629,884
28.2
113,379
18.0
890,364
455,864
20.0
336,986
890,364
10
353
3,530
69,939
69,368
760,552
20.7
152,110
20.0
1,070,678
578,947
27.0
374,528
1,070,678
Y/eMarch
Q2FY12
Q3FY12
Q4FY12
Q1FY13
14,387
10,530
3,856
2,141
5,997
2,138
1,100
1,038
3,859
3,859
379
3,481
1,130
2,350
2,350
16,841
12,565
4,276
2,114
6,390
2,402
1,217
1,185
3,988
3,988
224
3,765
1,224
2,541
2,541
17,851
13,369
4,482
2,664
7,146
2,842
1,337
1,505
4,304
4,304
285
4,019
1,301
2,718
2,718
18,863
14,142
4,722
2,881
7,603
3,007
1,552
1,455
4,596
4,596
300
4,296
1,395
2,901
2,901
2011
2012
2013E
2014E
333
347
115,635
19.6
20.9
109
109
15.9
3.0
3.0
2.5
0.8
333
353
117,580
16.0
27.7
132
132
12.0
2.5
2.5
2.5
0.8
333
353
117,580
13.2
33.4
162
162
10.0
2.1
2.1
3.5
1.1
333
353
117,580
11.0
41.6
198
198
8.0
1.7
1.7
4.5
1.4
2011
2012
2013E
2014E
2.6
1.5
21.1
2.4
1.5
23.1
2.6
1.5
22.7
2.7
1.5
23.1
Efficiency
Y/eMarch
2011
2012
2013E
2014E
CostIncomeRatio(%)
CDRatio(%)
36.3
74.8
206
19
3,752
34
37.7
77.3
194
22
3,541
40
38.5
72.4
211
23
3,836
42
39.3
76.1
226
25
4,116
45
AssetQuality
Y/eMarch
2011
2012
2013E
2014E
Gross NPAs (Rs m)

805
Net NPAs (Rs m)
92
0.2
NetNPAstoNetAdv.(%)
NPACoverage(%)
88.6
839
175
0.2
79.2
1,600
333
0.4
0.1
79.2
2,743
571
0.5
0.1
79.2
Interest Income
Interest Expense
NetInterestIncome
Non Interest Income
CEB
Treasury
NetTotalIncome
Operating Expenses
Employee Expenses
Other Expenses
OperatingProfit
Provisions
Profitbeforetax
Tax
PATbeforeEO
Extraordinary item
PAT
KeyRatios
Y/eMarch
CMP (Rs)
Market Cap (Rs m)
M/CaptoAUM(%)
EPS (Rs)
Book Value (Rs)
Adj. BV (75%) (Rs)
P/E (x)
P/BV (x)
P/ABV (x)
DPS (Rs)
DividendYield(%)
Profitability(%)
Y/eMarch
NIM
RoAA
RoAE
September 10, 2012
17
IndusIndBank
September10,2012
Growth Outlook: Management seemed less cautious than Kotak bank and
expects to grow ~25-30% in FY13. Management is still seeing opportunities in
building up a 2nd hand vehicle, car and LAP business. IIB has stayed away from
mortgages given low yields but is increasing focus on LAP and expects to build a
significant book though competition is increasing in the LAP space.
Margins Worst behind us: Like most retail banks, IIB believes that worst in
terms of margins is behind and easing rates should aid in improving margins. IIB
has seen its NIMs come off for 5 qtrs now and lower funding costs will aid ROAs
going forward.
Feeincometractiontocontinue:Fee income/assets for IIB has already reached

industry best levels of 2% but management expects the growth to still continue.
They believe on the corporate side, FX and IB business still have significant room
for growth and outstrip B/S growth. On the retail side, increasing distribution
will add to cross sell opportunities which has been limited.
Asset quality sanguine: Falling CV rentals have been our concern echoed by
Kotak/HDFCB but IIB is not seeing any material stress in their CV portfolio
currently though diesel price hike can be a risk to this portfolio. Corporate book
is working capital linked and with no Infra exposure, management expects
strong trend to continue. Overall IIB continues to guide 60-70bps of credit costs
v/s our 75-80bps credit cost assumption.
+91-22-66322236
Parul Gulati
+91-22-66322242
Rating
Price
Target Price
Implied Upside
Sensex
Nifty
BUY
Rs313
Rs400
27.8%
17,767
5,363
Tradingdata
Market Cap. (Rs bn)
Shares o/s (m)
Majorshareholders
Promoters
Foreign
Domestic Inst.
Public & Other
StockPerformance
(%)
1M
6M
Absolute
(2.9)
(1.0)
Relative
(4.0)
(2.5)
EPS(Rs)
PL
Cons.
2013
21.4
21.5
2014
26.5
27.1
146.5
467.7
161.1
19.41%
34.22%
8.70%
37.67%
12M
17.0
11.7
%Diff.
0.4
2.4
PricePerformance(RIC:INBK.BO,BB:IIBIN)
(Rs)
400
350
300
250
200
150
100
50
0
Growth(%)
PAT (Rs m)
EPS (Rs)
Growth(%)
Net DPS (Rs)
2011
13,765
55.3
10,817
5,773
12.4
46.1
2.0
2012
17,042
23.8
13,730
8,026
17.2
38.5
2.2
2013E
21,654
27.1
17,712
10,010
21.4
24.7
3.2
2014E
27,621
27.6
22,531
12,375
26.5
23.6
4.2
2011
3.42
19.3
1.43
3.8
3.8
25.3
0.6
2012
3.32
19.3
1.56
3.2
3.2
18.3
0.7
2013E
3.36
20.3
1.56
2.7
2.7
14.6
1.0
2014E
3.44
21.2
1.54
2.3
2.3
11.8
1.3
Source:Bloomberg
Sep-12
Jul-12
May-12
Mar-12
Jan-12
Nov-11
Sep-11
NIM(%)
RoAE(%)
RoAA(%)
P / BV (x)
P / ABV (x)
PE (x)
Netdividendyield(%)
IndusInd Bank
Y/eMarch
Others
Interest expense
NII
Growth(%)
Treasury Income
NTNII
Non Interest Income
Total Income
Growth(%)
Operating Expense
OperatingProfit
Growth(%)
NPA Provisions
Total Provisions
PBT
Tax Provisions
EffectiveTaxRate(%)
PAT
Growth(%)
BalanceSheet(Rsm)
Y/eMarch
2011
2012
2013E
2014E
28,346
7,333
215
35,894
22,129
13,765
55.3
376
6,761
7,137
43,030
32.0
10,085
10,817
53.7
1,841
76
2,019
8,798
3,025
34.4
5,773
64.8
42,166
10,782
644
53,592
36,549
17,042
23.8
583
9,535
10,118
63,710
48.1
13,430
13,730
26.9
1,783
(10)
1,804
11,927
3,900
32.7
8,026
39.0
53,304
12,397
644
66,345
44,691
21,654
27.1
800
12,395
13,195
79,540
24.8
17,138
17,712
29.0
2,838
2,838
14,874
4,864
32.7
10,010
24.7
63,248
15,292
725
79,265
51,644
27,621
27.6
800
16,114
16,914
96,179
20.9
22,004
22,531
27.2
4,142
4,142
18,388
6,014
32.7
12,375
23.6
2011
2012
2013E
2014E
Par Value
10
466
Equity
4,658
Networth
38,247
Adj. Networth
37,518
Deposits
343,654
Growth(%)
28.7
Low Cost deposits
93,309
%oftotaldeposits
27.2
TotalLiabilities
454,104
Net Advances
261,656
Growth(%)
27.3
Investments
135,508
TotalAssets
454,104
10
468
4,677
45,114
44,168
423,615
23.3
115,631
27.3
573,753
350,640
34.0
145,719
573,764
10
468
4,677
53,373
52,282
531,587
25.5
161,050
30.3
713,452
434,793
24.0
181,811
713,452
10
468
4,677
63,449
61,880
667,486
25.6
216,240
32.4
893,198
547,839
26.0
223,615
893,198
Y/eMarch
Q2FY12
Q3FY12
Q4FY12
Q1FY13
13,239
9,047
4,192
2,392
2,119
6,584
3,254
1,152
2,102
3,330
3,330
470
2,860
929
1,931
1,931
13,897
9,591
4,307
2,651
2,503
6,958
3,465
1,261
2,204
3,492
3,492
428
3,064
1,005
2,060
2,060
14,810
10,166
4,644
2,921
2,640
7,565
3,774
1,334
2,439
3,791
3,791
460
3,331
1,097
2,234
2,234
16,320
11,479
4,841
3,188
2,690
8,029
3,989
1,526
2,463
4,040
4,040
535
3,505
1,143
2,363
2,363
2011
2012
2013E
2014E
313
466
145,927
32.1
12.4
82
82
25.3
3.8
3.8
2.0
0.6
313
468
146,531
25.5
17.2
96
96
18.3
3.2
3.2
2.2
0.7
313
468
146,531
20.5
21.4
114
114
14.6
2.7
2.7
3.2
1.0
313
468
146,531
16.4
26.5
136
136
11.8
2.3
2.3
4.2
1.3
2011
2012
2013E
2014E
3.4
1.4
19.3
3.3
1.6
19.3
3.4
1.6
20.3
3.4
1.5
21.2
Efficiency
Y/eMarch
2011
2012
2013E
2014E
CostIncomeRatio(%)
CDRatio(%)
48.2
76.1
86
8
2,018
19
49.4
82.8
88
9
1,843
19
49.2
81.8
88
9
1,644
17
49.4
82.1
89
9
1,590
16
AssetQuality
Y/eMarch
2011
2012
2013E
2014E
Gross NPAs (Rs m)

2,659
Net NPAs (Rs m)
728
1.0
NetNPAstoNetAdv.(%)
0.3
NPACoverage(%)
72.6
3,471
947
1.0
0.3
72.7
4,001
1,091
0.9
0.3
72.7
5,751
1,569
1.0
0.3
72.7
Interest Income
Interest Expense
NetInterestIncome
Non Interest Income
CEB
Treasury
NetTotalIncome
Operating Expenses
Employee Expenses
Other Expenses
OperatingProfit
Provisions
Profitbeforetax
Tax
PATbeforeEO
Extraordinary item
PAT
KeyRatios
Y/eMarch
CMP (Rs)
Market Cap (Rs m)
M/CaptoAUM(%)
EPS (Rs)
Book Value (Rs)
Adj. BV (75%) (Rs)
P/E (x)
P/BV (x)
P/ABV (x)
DPS (Rs)
DividendYield(%)
Profitability(%)
Y/eMarch
NIM
RoAA
RoAE
September 10, 2012
19
HDFC
September10,2012
GrowthoutlookSanguine: HDFC maintained its growth guidance of ~20% with

ex-Mumbai portfolio seeing robust growth in individual segments. Rate
differentials with SBI is very limited at the moment to impact volumes for HDFC
ltd. Management has not seen any increase in pre-payment rates due to the
abolition of pre-payment charges and believes operational hassles/charges in
switching to a new financier will prevent their dual rate customers to switch
over to SBI.
Margins stable: Margins continue to remain stable for HDFC and lower
wholesale rates are further aiding margins as pricing environment is getting
competitive.
Reiterated safe nature of nonindividual loan portfolio: HDFC re-emphasised

that non-individual portfolio risk profile to be low with only 13%
builder/construction finance and rest ~20% constituted by rental discounting
and corporate construction loans. Even in the builder portfolio, HDFC
emphasised they lend only at SPV level for construction with significant LTV
comfort.
Accounting: Company will declare IFRS related accounts from Sep-12 and this
should help address investor concerns on some aggressive accounting followed
by HDFC Ltd. Also, HDFC in its recent presentation have clarified on various
consolidated accounts as well adjusting for the interest on ZCBs.
+91-22-66322236
Parul Gulati
+91-22-66322242
Rating
Price
Target Price
Implied Upside
Sensex
Nifty
BUY
Rs741
Rs800
8.0%
17,767
5,363
Tradingdata
Market Cap. (Rs bn)
Shares o/s (m)
Majorshareholders
Promoters
Foreign
Domestic Inst.
Public & Other
StockPerformance
(%)
1M
6M
Absolute
7.4
8.9
Relative
6.2
7.4
EPS(Rs)
PL
Cons.
2013
32.3
31.8
2014
37.8
37.7
1,094.7
1,477.0
2337.8
0.00%
66.74%
19.48%
13.78%
12M
12.0
6.7
%Diff.
1.5
0.5
PricePerformance(RIC:HDFC.BO,BB:HDFCIN)
Source:Bloomberg
Sep-12
Jul-12
May-12
Mar-12
Jan-12
Nov-11
Sep-11
(Rs)
800
700
600
500
400
300
200
100
0
KeyFinancials(Y/eMarch)
Growth(%)
Non-interest income (Rs m)
Operating Profit (Rs m)
PAT (Rs m)
EPS (Rs)
Growth(%)
Net DPS (Rs)
2011
41,335
26.1
11,847
49,370
35,350
24.1
22.4
9.0
2012
49,765
20.4
12,210
57,456
41,226
27.9
15.8
11.0
2013E
62,220
25.0
12,554
69,542
49,462
32.3
15.7
13.2
2014E
74,155
19.2
13,476
81,570
57,975
37.8
17.2
15.5
Profitability&valuation
2011
2012
2013E
2014E
Spreads/Margins(%)
RoAE(%)
RoAA(%)
P/E (x)
P/BV (x)
P/ABV (x)
Netdividendyield(%)
3.2
21.7
2.8
30.8
6.3
6.3
1.2
3.2
22.7
2.7
26.6
5.8
5.8
1.5
3.4
22.4
2.7
23.0
4.5
4.5
1.8
3.4
21.5
2.7
19.6
4.0
4.0
2.1
HDFC
Y/eMarch
Int. Inc. / Opt. Inc.
Interest Expenses
Netinterestincome
Growth(%)
Non interest income
Growth(%)
Net operating income
Expenditure
Employees
Other expenses
Depreciation
Total expenditure
PPP
Growth(%)
Provision
Other income
Exchange Gain / (Loss)
Profitbeforetax
Tax
Effectivetaxrate(%)
PAT
Growth(%)
BalanceSheet(Rsm)
Y/eMarch
2011
2012
2013E
2014E
116,934
75,599
41,335
26.1
11,847
16.1
53,181
1,755
2,056
3,812
49,370
24.2
700
700
48,670
13,320
27.4
35,350
25.1
161,333
111,568
49,765
20.4
12,210
3.1
61,975
2,058
2,461
4,519
57,456
16.4
800
800
56,656
15,430
27.2
41,226
16.6
188,615
126,395
62,220
25.0
12,554
2.8
74,775
226,627
152,472
74,155
19.2
13,476
7.3
87,631
2,367
2,865
5,232
69,542
21.0
880
880
68,662
19,201
28.0
49,462
20.0
2,722
3,339
6,061
81,570
17.3
968
968
80,602
22,628
28.1
57,975
17.2
2011
2012
Sourcesoffunds
Equity
2,934
Reserves & Surplus
163,572
Networth
173,165
Growth(%)
13.9
Loan funds
907,854
Growth(%)
Deposits
246,251
Other Liabilities
67,751
Total
1,395,021
Applicationoffunds
Net fixed assets

2,340
Advances
1,171,266
Growth(%)
19.6
Net current assets
121,537
Investments
20,955
Growth(%)
58.7
Deferred tax asset
Other Assets
78,923
Total
1,395,021
September 10, 2012
2,954
180,563
190,176
9.8
1,028,347
13.3
362,928
93,749
1,675,199
2,340
1,408,746
20.3
112,350
39,205
87.1
112,559
1,675,199
2013E
2014E
3,063
242,550
252,273
32.7
1,208,347
17.5
422,928
93,749
1,977,297
3,063
276,831
286,554
13.6
1,413,347
17.0
552,928
93,749
2,346,578
2,325
1,684,892
19.6
140,729
22,949
(41.5)
126,403
1,977,297
2,295
2,025,259
20.2
153,642
22,949
142,432
2,346,578
Y/eMarch
Q2FY12
Int. Inc. / Operating Inc.
Income from securitization
Interest Expenses
NetInterestIncome
Growth
Non interest income
Netoperatingincome
Growth
Operating expenditure
PPP
Growth
Provision
Profit before tax
Tax
Prov. for deferred tax liability
Effectivetaxrate(%)
PAT
Growth
KeyRatios
Y/eMarch
CMP (Rs)
Eq. Shrs. O/s. (m)
Market Cap (Rs m)
Market Cap to AUM (%)
EPS (Rs)
Book Value (Rs)
Adjusted Book Value (Rs)
P/E (x)
P/BV (x)
P/ABV (x)
DPS (Rs)
Dividend Yield (%)
Q3FY12
Q4FY12
Q1FY13
39,970
26,905
13,064
18.0
1,722
14,786
18.0
1,409
13,377
18.0
13,377
3,670
27.4
9,707
20.2
43,018
30,124
12,894
17.2
1,707
14,601
10.0
1,319
13,282
9.6
13,282
3,470
26.1
9,812
10.3
47,438
29,389
18,049
26.3
1,472
19,521
17.9
1,280
18,242
17.3
18,242
4,980
27.3
13,262
16.0
48,520
1
33,882
14,638
19.3
903
15,541
18.9
1,742
13,799
17.4
13,799
3,780
27.4
10,019
18.6
2011
2012
2013E
2014E
741
1,467
1,087,229
0.8
24.1
118.1
118.1
30.8
6.3
6.3
9.0
1.2
741
1,477
1,094,715
0.7
27.9
128.8
128.8
26.6
5.8
5.8
11.0
1.5
741
1,532
1,135,296
0.6
32.3
164.7
164.7
23.0
4.5
4.5
13.2
1.8
741
1,532
1,135,296
0.5
37.8
187.1
187.1
19.6
4.0
4.0
15.5
2.1
AssetQuality
Y/eMarch
2011
2012
2013E
2014E
Gross NPAs (Rs m)

Net NPAs (Rs m)
Gross NPAs to Gross Adv. (%)
Net NPAs to Net Adv. (%)
NPA Coverage (%)
9,019
0.8
10,425
0.7
12,468
0.7
14,987
0.7
Profitability(%)
Y/eMarch
2011
2012
2013E
2014E
NIM
3.2
RoAA
2.8
RoAE
21.7
3.2
2.7
22.7
3.4
2.7
22.4
3.4
2.7
21.5
21
ShriramTransportFinance
September10,2012
Growthoutookremainstepid: SHTF is comfortable with 12-15% of growth and

continues to maintain LTVs at ~65% and does not want to compromise on
quality for growth. SHTF also noted they have restricted the growth on
construction equipment business as well. SHTF was positive on rural centres
where they have increased presence through small centres which could be
converted to branches in line with the increase in business. As of now ~20-30%
of transactions are being sourced through its Automalls.
Margins: Due to competition in new CV business, hence large part of the growth
will have to be driven by higher margin old CVs. Margins have come off in FY12
by ~30bps to ~7.5% and they expect margins to stay in the 7.3-7.7% range.
AssetqualityNotascautiousaspeers: SHTF has recognised all mining related

assets and does not expect any negative surprise. Management re-iterated that
only ~20% of their exposure is in industrial transportation and other ~80% is
linked to transportation of essentials and does not expect material deterioration
in asset quality. With overall freight availability coming off, impending diesel
price hike and negative feedback on peers like HDFC/KMB we remain cautious
on the CV cycle.
Accessingregulations: (1) Final securitisation guidelines warrant moving the off

b/s sheet book from direct assignment to PTC route. Though management
believes that impact will be limited, actual implementation will be tested only in
2H which is a seasonally qtr for securitisations. (2) On the 90 v/s 180 day NPA
recognition, management believes that transition time will be large (3-4 yrs) and
feedback from RBI also suggested that the implementation will happen in a nondisruptive manner.
+91-22-66322236
Parul Gulati
+91-22-66322242
Rating
Price
Target Price
Implied Upside
Sensex
Nifty
Accumulate
Rs636
Rs575
-9.6%
17,767
5,363
Tradingdata
Market Cap. (Rs bn)
Shares o/s (m)
Majorshareholders
Promoters
Foreign
Domestic Inst.
Public & Other
StockPerformance
(%)
1M
6M
Absolute
12.1
13.2
Relative
10.9
11.7
EPS(Rs)
PL
Cons.
2013
60.3
62.3
2014
67.2
71.8
144.0
226.3
139.1
46.21%
40.06%
1.99%
11.74%
12M
(4.6)
(9.9)
%Diff.
3.3
6.4
PricePerformance(RIC:SRTR.BO,BB:SHTFIN)
Source:Bloomberg
Sep-12
Jul-12
May-12
Mar-12
Jan-12
Nov-11
Sep-11
(Rs)
800
700
600
500
400
300
200
100
0
Growth(%)
PAT (Rs m)
EPS (Rs)
Growth(%)
Net DPS (Rs)
2011
14,107
3.1
955
24,037
12,299
54.4
40.5
6.5
2012
12,377
(12.3)
1,015
26,492
12,574
55.6
2.2
6.5
2013E
15,847
28.0
981
27,761
13,647
60.3
8.5
7.2
2014E
22,129
39.6
1,005
31,056
15,214
67.2
11.5
10.1
2011
2012
2013E
2014E
Spreads/Margins(%)
RoAE(%)
RoAA(%)
P/E (x)
P/BV (x)
P/ABV (x)
Netdividendyield(%)
6.0
28.1
5.2
11.7
2.9
3.0
1.0
4.6
23.1
4.7
11.4
2.4
2.4
1.0
4.9
20.7
4.2
10.5
2.0
2.0
1.1
5.7
19.5
4.0
9.5
1.7
1.7
1.6
Shriram Transport Finance
Y/eMarch
Interest Expenses
Netinterestincome
Growth(%)
Non interest income
Growth(%)
Expenditure
Employees
Other expenses
Depreciation
Total expenditure
PPP
Growth(%)
Provision
Other income
Profitbeforetax
Tax
Effectivetaxrate(%)
PAT
Growth(%)
BalanceSheet(Rsm)
Y/eMarch
2011
2012
2013E
2014E
37,115
23,008
14,107
3.1
955
(1.3)
30,410
2,732
3,533
108
6,374
24,037
38.8
5,548
18,489
6,190
33.5
12,299
40.9
36,989
24,612
12,377
(12.3)
1,015
6.3
34,327
3,701
3,999
135
7,835
26,492
10.2
7,683
18,809
6,235
33.1
12,574
2.2
44,726
28,878
15,847
28.0
981
(3.4)
36,385
55,299
33,170
22,129
39.6
1,005
2.5
40,640
4,219
4,263
141
8,623
27,761
4.8
7,348
20,413
6,766
33.1
13,647
8.5
4,809
4,627
148
9,585
31,056
11.9
8,177
22,878
7,664
33.5
15,214
11.5
2011
2012
Sourcesoffunds
Equity
2,262
Reserves & Surplus
46,782
Networth
49,044
Growth(%)
27.6
Loan funds
198,817
Growth(%)
Others
Minority Interest
Deferred Tax Liability
Total
247,861
Applicationoffunds
Net fixed assets

384
Advances
198,656
Growth(%)
10.5
Net current assets
10,407
Investments
36,507
Growth(%)
96.7
Other Assets
1,906
Total
247,861
September 10, 2012
2,263
57,660
59,923
22.2
231,219
16.3
291,142
397
219,019
10.3
29,912
39,646
8.6
2,167
291,142
2013E
2014E
2,263
69,391
71,654
19.6
289,113
25.0
360,767
2,263
81,935
84,198
17.5
325,143
12.5
409,341
467
292,438
33.5
18,615
47,081
18.8
2,167
360,767
490
350,925
20.0
1,198
54,561
15.9
2,167
409,341
Y/eMarch
Q2FY12
Q3FY12
Q4FY12
Q1FY13

Interest Expenses
NetInterestIncome
Growth
Non interest income
Netoperatingincome
Growth
PPP
Growth
Provision
Profit before tax
Tax
Effectivetaxrate(%)
PAT
Growth
9,675
4,825
6,153
3,522
(4.4)
258
8,605
19.0
1,788
6,560
18.9
2,363
4,454
1,460
32.8
2,994
0.2
9,458
4,927
6,347
3,110
(23.2)
294
8,331
2.1
1,867
6,171
(1.9)
1,920
4,545
1,518
33.4
3,027
0.4
9,158
5,157
6,259
2,899
(10.6)
255
8,311
5.4
1,782
6,274
0.8
1,918
4,611
1,530
33.2
3,081
(9.6)
8,876
5,323
6,173
2,702
1.8
702
8,727
1.2
1,940
6,085
(5.9)
2,026
4,761
1,543
32.4
3,219
(7.3)
KeyRatios
Y/eMarch
2011
2012
2013E
2014E
636
226
143,865
58.0
54.4
216.8
213.5
11.7
2.9
3.0
6.5
1.0
636
226
143,951
49.4
55.6
264.8
260.5
11.4
2.4
2.4
6.5
1.0
636
226
143,951
39.9
60.3
316.6
311.6
10.5
2.0
2.0
7.2
1.1
636
226
143,951
35.2
67.2
372.0
366.0
9.5
1.7
1.7
10.1
1.6
CMP (Rs)
Eq. Shrs. O/s. (m)
Market Cap (Rs m)
EPS (Rs)
Book Value (Rs)
P/E (x)
P/BV (x)
P/ABV (x)
DPS (Rs)
Dividend Yield (%)
AssetQuality
Y/eMarch
2011
2012
2013E
2014E
Gross NPAs (Rs m)

Net NPAs (Rs m)
NPA Coverage (%)
5,286
745
2.7
0.4
85.9
6,938
977
3.2
0.4
85.9
8,325
1,129
2.8
0.4
86.4
9,991
1,354
2.8
0.4
86.4
Profitability(%)
Y/eMarch
2011
2012
2013E
2014E
NIM
6.0
RoAA
5.2
RoAE
28.1
4.6
4.7
23.1
4.9
4.2
20.7
5.7
4.0
19.5
23
Mahindra&MahindraFinancialServices
September10,2012
Bullish on Growth: Management remains extremely bullish on growth, clearly

an exception to the overall tone of significant slowdown. Management at the
minimum intends to double their current ~Rs200bn loan book in 3 yrs and
believe that they will achieve their 2x size faster than 3yrs as they continue to
penetrate new OEMs and add new product categories.
Adding new growth drivers: Mahindra's biggest advantage is that it is well

diversified in 4-5 product categories and management is adding new product
categories. Mahindra Finance plans to build a SME book largely lending to the
Mahindra ecosystem. Also apart from penetrating new OEMs in most of its
product categories, they plan to increase the share of high yielding 2nd hand
vehicle portfolio to 12-15% of their loan book from 7-8% currently.
Positionedtobenefitfromaneasingratecycle:Margins have come off over the

last 6 qtrs as Mahindra Finance has not passed on the entire rate hikes to
customers and with an easing rate cycle, expects margins to improve over FY1314. Long term funding rates have already come off by 20-30bps and with limited
dependence on direct assignments, MMFS expects margins to improve.
AssetqualityMaintainingLTVdisciplinekey:Management believes that they

have had a tight control on LTVs (avg. 66-67%) in spite of the high growth and
hence does not expect large negative asset quality surprises. Tractor portfolio
could have been partially exposed to the low monsoon but recent pickup is
positive. We factor in ~170bps of credit costs from ~100bps delivered in FY12
and hence some pick up delinquencies in Tractor/CV book is factored by us and
the street.
+91-22-66322236
Parul Gulati
+91-22-66322242
Rating
Price
Target Price
Implied Upside
Sensex
Nifty
BUY
Rs815
Rs847
3.9%
17,767
5,363
Tradingdata
Market Cap. (Rs bn)
Shares o/s (m)
Majorshareholders
Promoters
Foreign
Domestic Inst.
Public & Other
StockPerformance
(%)
1M
6M
Absolute
3.8
15.0
Relative
2.6
13.5
EPS(Rs)
PL
Cons.
2013
72.4
73.5
2014
87.6
89.3
83.6
102.7
86.8
57.23%
32.45%
5.41%
4.91%
12M
24.4
19.1
%Diff.
1.5
1.9
PricePerformance(RIC:MMFS.BO,BB:MMFSIN)
Source:Bloomberg
Sep-12
Jul-12
May-12
Mar-12
Jan-12
Nov-11
Sep-11
(Rs)
900
800
700
600
500
400
300
200
100
0
Growth(%)
PAT (Rs m)
EPS (Rs)
Growth(%)
Net DPS (Rs)
2011
12,231
35.4
387
8,623
4,631
45.2
26.0
10.2
2012
15,549
27.1
269
10,823
6,201
60.4
33.6
14.2
2013E
20,999
35.1
277
14,672
7,434
72.4
19.9
16.3
2014E
26,016
23.9
319
18,008
8,993
87.6
21.0
19.7
2011
2012
2013E
2014E
Spreads/Margins(%)
RoAE(%)
RoAA(%)
P/E (x)
P/BV (x)
P/ABV (x)
Netdividendyield(%)
12.0
22.0
4.6
18.0
3.4
3.5
1.2
10.7
22.8
4.3
13.5
2.8
3.0
1.7
11.1
22.7
3.9
11.3
2.3
2.4
2.0
10.9
22.9
3.8
9.3
2.0
2.1
2.4
Mahindra & Mahindra Financial Services
Y/eMarch
Interest Expenses
Netinterestincome
Growth(%)
Non interest income
Growth(%)
Expenditure
Employees
Other expenses
Depreciation
Total expenditure
PPP
Growth(%)
Provision
Other income
Profitbeforetax
Tax
Effectivetaxrate(%)
PAT
Growth(%)
BalanceSheet(Rsm)
Y/eMarch
2011
2012
2013E
2014E
18,833
6,602
12,231
35.4
387
1.6
13,524
2,062
511
158
2,731
8,623
16.1
1,598
7,025
2,393
34.1
4,631
34.5
26,752
11,203
15,549
27.1
269
(30.4)
16,743
2,955
511
196
3,662
10,823
25.5
1,570
9,253
3,051
33.0
6,201
33.9
34,917
13,918
20,999
35.1
277
3.1
22,169
43,030
17,015
26,016
23.9
319
15.0
27,227
3,694
511
314
4,520
14,672
35.6
3,739
10,932
3,498
32.0
7,434
19.9
4,617
511
206
5,335
18,008
22.7
4,783
13,225
4,232
32.0
8,993
21.0
2011
2012
Sourcesoffunds
Equity
1,025
Reserves & Surplus
23,856
Networth
24,901
Growth(%)
44.1
Loan funds
96,750
Growth(%)
Others
Minority Interest

1
Total
121,652
Applicationoffunds
Net fixed assets

818
Advances
123,844
Growth(%)
48.5
Net current assets
(9,827)
Investments
6,746
Growth(%)
212.4
Other Assets
Total
121,652
September 10, 2012
1,027
28,483
29,510
18.5
139,611
44.3
169,121
1,000
174,963
41.3
(11,867)
5,025
(25.5)
169,121
2013E
2014E
1,027
34,991
36,018
22.1
173,154
24.0
209,172
1,027
41,621
42,648
18.4
227,194
31.2
269,842
1,029
215,524
23.2
(13,571)
6,190
23.2
209,172
1,235
275,899
28.0
(15,216)
7,924
28.0
269,842
Y/eMarch
Q2FY12
Q3FY12
Q4FY12
Q1FY13

Interest Expenses
NetInterestIncome
Growth
Non interest income
Netoperatingincome
Growth
PPP
Growth
Provision
Profit before tax
Tax
Effectivetaxrate(%)
PAT
Growth
6,491
2,589
3,902
22.8
196
4,098
21.3
1,521
2,539
22.3
523
2,016
661
32.8
1,355
16.3
7,328
3,150
4,178
23.2
138
4,316
18.8
1,520
2,797
22.8
494
2,303
756
32.8
1,547
33.5
8,389
3,304
5,085
28.4
81
5,166
24.5
1,603
3,563
37.9
142
3,421
1,144
33.4
2,277
45.4
8,351
3,475
4,876
47.0
39
4,916
39.3
1,667
3,248
56.6
854
2,395
784
32.8
1,610
57.6
KeyRatios
Y/eMarch
2011
2012
2013E
2014E
815
102
83,456
68.6
45.2
243.1
235.8
18.0
3.4
3.5
10.2
1.2
815
103
83,649
49.5
60.4
287.4
275.5
13.5
2.8
3.0
14.2
1.7
815
103
83,649
40.0
72.4
350.8
336.1
11.3
2.3
2.4
16.3
2.0
815
103
83,649
31.0
87.6
415.3
396.9
9.3
2.0
2.1
19.7
2.4
CMP (Rs)
Eq. Shrs. O/s. (m)
Market Cap (Rs m)
EPS (Rs)
Book Value (Rs)
P/E (x)
P/BV (x)
P/ABV (x)
DPS (Rs)
Dividend Yield (%)
AssetQuality
Y/eMarch
2011
2012
2013E
2014E
Gross NPAs (Rs m)

Net NPAs (Rs m)
NPA Coverage (%)
5,488
745
4.4
0.5
86.4
5,543
1,219
3.2
0.7
78.0
6,839
1,504
3.2
0.7
78.0
8,610
1,894
3.1
0.7
78.0
Profitability(%)
Y/eMarch
2011
2012
2013E
2014E
NIM
12.0
RoAA
4.6
RoAE
22.0
10.7
4.3
22.8
11.1
3.9
22.7
10.9
3.8
22.9
25
PowerFinanceCorporation/REC
September10,2012
Upbeatonstatereformaction;UPtomoveontariffsbySep12:The PFC/REC
management was very upbeat on tariff hikes taken by the states (17 of 27
states) in FY13 including large ones like TN. PFC expects tariff hike to be taken
by UP by mid Sep-12 which will be a big relief. These hikes surely bring some
states close to break even but hikes not being implemented in Agri continue to
increase hike requirements for commercial/personal segments. Of all states,
PFC was extremely positive on prospects of a turnaround of SEBs in MP and
believes MP SEBs could turn profitable in due course.
NoclarityonFRP;Don'tseePFC/RECtakinghaircut/NPVhits:The restructuring
package (FRP) is still in works and PFC management said there is limited clarity
still on the terms of restructuring (Media sources: 50% debt to be shifted to
state govt. and other 50% to be offered a 3 yr moratorium). PFC/REC have
categorially denied taking any haircut on these loans but transfer of debt to
state governments and getting state government bonds could entail some NPV
loss due to lower yields on state govt. debt in our view.
Fresh sanctions to SEBs Part of restructuring: Both PFC/REC as part of the

ongoing restructuring will provide Rs170bn each to the SEBs for working capital
requirements. PFC/REC who have largely refrained from funding losses of SEBs
will now do so as some burden gets shifted from banks to PFC/REC but
management believes that these loans remain contingent on going reform
performance and guarantees by each state.
Regulatory provisioning: (1) Usha Thorat committee had recommened

applicability of standard asset provisioning (0.25%) for PFC/REC and according to
the mgt, they intend to provide this over next 4 yrs (0.05% annually) (2) Also, on
providing for risk weight on undisbursed sanction, PFC/REC have asked RBI for
an exemption upto FY17 and is currently under consideration.
+91-22-66322236
Parul Gulati
+91-22-66322242
Rating
Price
Target Price
Implied Upside
Sensex
Nifty
NotRated
Rs164
NA
NA
17,767
5,363
Tradingdata
Market Cap. (Rs bn)
Shares o/s (m)
214.4
1,320.0
506.1
Majorshareholders
Promoters
Foreign
Domestic Inst.
Public & Other
73.72%
9.76%
9.50%
7.02%
StockPerformance
(%)
1M
Absolute
(12.3)
Relative
(13.3)
6M
(17.2)
(18.6)
12M
8.4
3.2
EPS(Rs)
PL
Cons.
2013
NA
28.4
2014
NA
31.9
%Diff.
NA
NA
PricePerformance(RIC:PWFC.BO,BB:POWFIN)
(Rs)
250
200
150
100
50
Source:Bloomberg
Sep-12
Jul-12
May-12
Mar-12
Jan-12
Nov-11
Sep-11
Contd27
2009
2010
2011
2012
21,245
14.3
19,477
19,700
17.2
63.2
31,072
46.3
29,569
23,573
20.5
19.7
37,047
19.2
35,040
26,196
22.8
11.1
43,533
17.5
41,043
30,317
23.4
2.6
2009
2010
2011
2012
Spreads/Margins(%)
RoAE(%)
RoAA(%)
3.0
18.9
2.8
3.5
19.0
2.7
3.4
18.4
2.4
3.4
16.9
2.4

Growth(%)
PAT (Rs m)
EPS (Rs)
Growth(%)
Note:AllFinancialsofPowerFinanceCorporation
Power Finance Corporation / REC
PFCPrivatepowerportfolioSomereschulementshapenning:
PFC already has 3 private power projects as NPAs and we continue to have
news flow on JAS Infra/Abhijit power where PFC also has a large exposure.
PFC has rescheduled ~Rs6bn of exposure in 2 projects in FY13 and there may
be similar reschedulements (payments psuhed by 12mnts) going forward. (1)
DansEnergy: Hydropower project in Sikkim, Rs4bn exposure and (2) Krishna
Godawari Power, 67 MW, Rs1.5bn exposure.
PFC has ~Rs10bn exposure to Suzlon. Repayments have been timely upto July
with some marginal delays in August.
September 10, 2012
27
Power Finance Corporation / REC
Y/eMarch
2009
2010
2011
2012
Interest Earned
Interest Expended
NII
Other Income
TotalIncome
Employee Cost
Other Expenses
PPOP
Provisions and Contingencies
OperatingProfit
Provision for Tax
ProfitAfterTax
65,580
44,335
21,245
262
21,506
408
428
20,242
766
19,477
205
19,700
81,664
50,592
31,072
770
31,842
654
563
30,061
492
29,569
6,560
23,573
102,831
65,784
37,047
480
37,527
578
401
36,146
1,106
35,040
9,246
26,196
130,149
86,616
43,533
223
43,756
721
564
42,470
1,428
41,043
10,725
30,317
17.2
20.5
22.8
23.4
2009
2010
2011
2012
11,478
103,601
115,078
530,691
35,768
796,615
11,478
121,130
132,608
677,719
23,602
966,537
11,478
140,347
151,825
860,504
33,183
1,197,338
13,199
193,876
207,075
1,101,259
47,416
1,355,751
752
359
3,928
663,627
127,950
796,615
745
314
13,943
803,453
148,081
966,537
767
539
23,503
1,002,091
170,438
1,197,338
765
592
0
1,300,718
53,676
1,355,751
AdjustedEPS(Rs)
BalanceSheet(Rsm)
Y/eMarch
SourcesofFunds
Equity Paid Up
Reserves and Surplus
Net Worth
Total Debt
Current liabilities
TotalLiabilities
ApplicationofFunds
Net Block
Investments
Cash and Bank balance
Loans and Advances
Other Current Assets
TotalAssets
GrowthRatios
Y/eMarch
2009
2010
2011
2012
NII
PPOP
Operating Profit
Profit After Tax
Adjusted EPS
Loans and Advances
Total Assets
14.3%
14.6%
11.0%
63.2%
63.2%
25.6%
26.9%
46.3%
48.5%
51.8%
19.7%
19.7%
21.1%
21.3%
19.2%
20.2%
18.5%
11.1%
11.1%
24.7%
23.9%
17.5%
17.5%
17.1%
15.7%
2.6%
29.8%
13.2%
2009
2010
2011
2012
3.0%
0.0%
3.0%
0.1%
0.1%
2.8%
0.1%
2.7%
0.0%
2.8%
6.8
18.9%
3.5%
0.1%
3.6%
0.1%
0.1%
3.4%
0.1%
3.4%
0.7%
2.7%
7.1
19.0%
3.4%
0.0%
3.5%
0.1%
0.0%
3.3%
0.1%
3.2%
0.9%
2.4%
7.6
18.4%
3.4%
0.0%
3.4%
0.1%
0.0%
3.3%
0.1%
3.2%
0.8%
2.4%
7.1
16.9%
ROADecomposition
Y/eMarch
NII
Other Income
TotalIncome
Employee Cost
Other Expenses
PPOP
Operating Profit
Provision for Tax
ROA
Leverage
ROE
Note:AllFinancialsofPowerFinanceCorporation
September 10, 2012
28
InfrastructureDevelopmentFinance
Growth outlook: Management believes that 15%-20% growth is quite
managebale citing refinancing opportunities still available largely subsituting
mid- sized PSU banks (30%-40% of the growth from re-financing). Risk aversion
of PSU banks, consolidation of financiers and better funding rates are reasons
for IDFCs gain in market share in re-financing. Going ahead, IDFC believes, Roads
could offer some opportunities considering that bids by the developer have
become reasonbale as they face increasing scrutiny from financers.
September10,2012
+91-22-66322236
Parul Gulati
+91-22-66322242
Rating
Price
Target Price
Implied Upside
Sensex
Nifty
BUY
Rs128
Rs145
13.3%
17,767
5,363
Assetquality:Gasprojectsremainaconcern: IDFC expects to limit GNPA to< 1%

even in these challenging conditions and IDFC already has +1.5% provisioning on
its books. The large concern remains under construction gas based projects (~23%% of the book) wherein there could be some rescheduling, but they do not
expect NPV hits. IDFCs has already provided Rs0.6bn for their Rs1.4bn Deccan
chronicle exposure and expects to write some more in coming qtrs. There have
been ~4-5 power projects that have either been recognised as NPA or promoters
face CBI charges and IDFC does not have any exposure to these SPVs.
193.1
1,512.4
898
Margins to be maintained in spite of high refinancing share: IDFC has seen

improvement in spreads over last 2-3 qtrs and expects to maintain spreads in
spite of higher share of re-financing business where spreads are ~50-75bps
lower.Softness in wholesale rates and more importantly pricing power is aiding
IDFCs margins in spite of higher re-financing business.
Tradingdata
Market Cap. (Rs bn)
Shares o/s (m)
Majorshareholders
Promoters
Foreign
Domestic Inst.
Public & Other
StockPerformance
(%)
1M
6M
Absolute
(3.3)
(12.4)
Relative
(4.5)
(13.9)
EPS(Rs)
PL
Cons.
2013
12.3
11.6
2014
14.4
13.9
0.00%
48.52%
34.72%
16.76%
12M
12.2
6.8
%Diff.
6.2
3.2
PricePerformance(RIC:IDFC.BO,BB:IDFCIN)
Source:Bloomberg
Sep-12
Jul-12
May-12
Mar-12
Jan-12
Nov-11
Sep-11
(Rs)
160
140
120
100
80
60
40
20
0
Capital market related businesses: Apart from its core lending business, the
company is focussing on its PE business wherein it plans to double the existing
AUM by adding ~$1.5 billion in the next two years through three new funds.
Prospects of other capital market business continues to remain challenging.
Growth(%)
PAT (Rs m)
EPS (Rs)
Growth(%)
Net DPS (Rs)
2011
16,053
57.7
9,402
20,135
12,791
8.8
7.2
1.8
2012
20,032
24.8
9,756
24,570
15,541
10.3
17.4
2.3
2013E
23,847
19.0
9,209
27,268
18,651
12.3
20.0
2.5
2014E
27,990
17.4
10,371
31,832
21,737
14.4
16.5
3.0
2011
2012
2013E
2014E
Spreads/Margins(%)
RoAE(%)
RoAA(%)
P/E (x)
P/BV (x)
P/ABV (x)
Netdividendyield(%)
3.8
14.7
3.0
14.6
1.8
1.8
1.4
3.6
13.7
2.8
12.4
1.6
1.6
1.8
3.6
14.3
2.8
10.4
1.4
1.4
1.9
3.5
14.9
2.8
8.9
1.3
1.3
2.3
Infrastructure Development Finance Corporation
Y/eMarch
Interest Expenses
Netinterestincome
Growth(%)
Non interest income
Growth(%)
Expenditure
Employees
Other expenses
Depreciation
Total expenditure
PPP
Growth(%)
Provision
Other income
Profitbeforetax
Tax
Effectivetaxrate(%)
PAT
Growth(%)
BalanceSheet(Rsm)
Y/eMarch
2011
2012
2013E
2014E
39,929
23,875
16,053
57.7
9,402
(13.7)
25,455
2,956
2,365
5,320
20,135
29.2
2,346
17,788
4,998
28.1
12,791
20.4
54,594
34,562
20,032
24.8
9,756
3.8
29,788
3,050
2,169
5,219
24,570
22.0
2,850
21,720
6,179
28.4
15,541
21.5
70,168
46,321
23,847
19.0
9,209
(5.6)
33,057
82,591
54,601
27,990
17.4
10,371
12.6
38,361
3,386
2,404
5,789
27,268
11.0
1,542
25,726
7,075
27.5
18,651
20.0
3,826
2,703
6,529
31,832
16.7
1,850
29,982
8,245
27.5
21,737
16.5
2011
2012
Sourcesoffunds
Equity
14,609
Reserves & Surplus
89,475
Networth
104,084
Growth(%)
48.5
Loan funds
364,939
Growth(%)
Others
Minority Interest

17,643
Total
493,167
Applicationoffunds
Net fixed assets

4,469
Advances
376,523
Growth(%)
50.4
Net current assets
11,049
Investments
69,611
Growth(%)
50.0
Other Assets
31,515
Total
493,167
September 10, 2012
15,124
107,727
122,850
18.0
457,850
25.5
22,590
609,790
3,798
481,846
28.0
6,981
75,339
8.2
41,828
609,791
2013E
2014E
15,124
122,267
137,391
11.8
550,925
20.3
24,618
719,434
15,124
139,213
154,337
12.3
674,048
22.3
26,838
861,722
4,075
578,215
20.0
8,377
85,733
13.8
42,783
719,183
4,310
705,422
22.0
10,053
97,596
13.8
43,810
861,192
Y/eMarch
Q2FY12
Q3FY12
Q4FY12
Q1FY13

Interest Expenses
NetInterestIncome
Growth
Non interest income
Netoperatingincome
Growth
PPP
Growth
Provision
Profit before tax
Tax
Effectivetaxrate(%)
PAT
Growth
4,980
33.2
3,850
8,830
35.0
1,320
7,510
40.9
630
6,920
1,710
24.7
5,230
53.4
5,460
18.7
2,150
7,610
12.7
1,266
6,344
23.7
978
5,366
1,537
28.6
3,812
18.8
5,860
23.6
1,330
7,190
8.4
1,500
5,690
13.6
840
4,910
1,560
31.8
3,350
17.1
6,290
30.2
1,370
7,660
29.2
1,170
6,490
35.5
1,030
5,530
1,730
31.3
3,800
21.0
KeyRatios
Y/eMarch
2011
2012
2013E
2014E
128
1,461
186,563
37.8
8.8
71.2
71.0
14.6
1.8
1.8
1.8
1.4
128
1,512
193,128
31.7
10.3
81.2
80.8
12.4
1.6
1.6
2.3
1.8
128
1,512
193,128
26.9
12.3
90.8
90.2
10.4
1.4
1.4
2.5
1.9
128
1,512
193,128
22.4
14.4
102.1
101.1
8.9
1.3
1.3
3.0
2.3
2011
2012
2013E
2014E
793
389
0.2
0.1
51.0
1,446
714
0.3
0.1
50.6
2,168
976
0.4
0.2
55.0
3,036
1,366
0.4
0.2
55.0
2011
2012
2013E
2014E
NIM
3.8
RoAA
3.0
RoAE
14.7
3.6
2.8
13.7
3.6
2.8
14.3
3.5
2.8
14.9
CMP (Rs)
Eq. Shrs. O/s. (m)
Market Cap (Rs m)
EPS (Rs)
Book Value (Rs)
P/E (x)
P/BV (x)
P/ABV (x)
DPS (Rs)
Dividend Yield (%)
AssetQuality
Y/eMarch
Gross NPAs (Rs m)
Net NPAs (Rs m)
NPA Coverage (%)
Profitability(%)
Y/eMarch
30
LICHousingFinance
September10,2012
Sanguine on Individual book growth; Developer book remains a challenge:

Management seemed upbeat about growth in individual loan book with strong
demand from southern states and specific pockets in Central India (Indore,
Bhopal, Bhuveneswar), East (Patna, Kolkata,etc) and also Pune. With strong
individual disbursements, mgt believes +20% growth will not be challenge.
Developer book sanctions are building up only gradually and repayment
intensity continues and management is still seeing a contraction in developer
book which is negative for their margins recovery.
Not to overreact to competition: LICHF does not want to overreact to

competition in this cycle and they believe differential pricing of 50bps with the
lowest rates offered by SBI is manageable as in the past they have done +20%
loan growth with ~differential pricing (Nov-08). It has been only ~1mnt past SBI's
new offer and hence too early to access the impact but LICHF is not unduly
concerned by the low rates by SBI especially as this has not been followed up by
other large players (most banks at 10.5% v/s 10.2% by SBI).
Margins to look up but only gradually: The delay in the build up of the
developer book is having its toll on margins. Incremental spreads at 1.6% is fine
in this environment and re-pricing of Rs120bn of fixed O floaty book is also
happening on expected lines but developer book continues to shrink as a % of
B/S and that is impacting margin recovery (1% lower developer book impacts
margins by ~6bps).
Trimming FY13 spreads marginally, Adjusting PT lower to Rs300/share;

MaintainBUY:Due to delay in build up of developer book, we trim our spread
assumptions by ~8-10bps and PAT/EPS by 4% and similarly trim down PT to
Rs300/share. Margin expansion has not panned out as earlier envisaged but
with negligible asset quality and regulatory risks we continue to maintain BUY.
+91-22-66322236
Parul Gulati
+91-22-66322242
Rating
Price
Target Price
Implied Upside
Sensex
Nifty
BUY
Rs246
Rs300
22.0%
17,767
5,363
Tradingdata
Market Cap. (Rs bn)
Shares o/s (m)
Majorshareholders
Promoters
Foreign
Domestic Inst.
Public & Other
StockPerformance
(%)
1M
6M
Absolute
(0.6)
(0.1)
Relative
(1.8)
(1.6)
EPS(Rs)
PL
Cons.
2013
23.4
23.5
2014
29.9
30.0
124.4
505.0
446.8
40.31%
34.25%
9.45%
15.99%
12M
12.8
7.4
%Diff.
0.5
0.4
PricePerformance(RIC:LICH.BO,BB:LICHFIN)
(Rs)
300
250
200
150
100
50
Source:Bloomberg
Sep-12
Jul-12
May-12
Mar-12
Jan-12
Nov-11
Sep-11
Growth(%)
PAT (Rs m)
EPS (Rs)
Growth(%)
Net DPS (Rs)
2011
14,144
58.2
3,567
15,548
9,745
20.5
47.2
3.5
2012
13,916
(1.6)
2,324
13,870
9,142
18.1
(11.8)
3.6
2013E
17,293
24.3
2,389
16,888
11,814
23.4
29.2
4.0
2014E
21,981
27.1
2,866
21,533
15,084
29.9
27.7
6.0
2011
2012
2013E
2014E
Spreads/Margins(%)
RoAE(%)
RoAA(%)
P/E (x)
P/BV (x)
P/ABV (x)
Netdividendyield(%)
3.2
25.8
2.2
12.0
2.8
2.8
1.4
2.5
18.6
1.6
13.6
2.2
2.2
1.5
2.5
19.2
1.7
10.5
1.9
1.9
1.6
2.6
20.9
1.8
8.2
1.6
1.6
2.4
LIC Housing Finance
Y/eMarch
Interest Expenses
Netinterestincome
Growth(%)
Non interest income
Growth(%)
Expenditure
Employees
Other expenses
Depreciation
Total expenditure
PPP
Growth(%)
Provision
Other income
Profitbeforetax
Tax
Effectivetaxrate(%)
PAT
Growth(%)
BalanceSheet(Rsm)
Y/eMarch
2011
2012
2013E
2014E
45,121
30,977
14,144
58.2
3,567
98.7
17,710
681
1,419
62
2,162
15,548
76.3
2,609
2
12,942
3,197
24.7
9,745
47.2
59,827
45,911
13,916
(1.6)
2,324
(34.8)
16,241
724
1,572
74
2,371
13,870
(10.8)
1,561
12,309
3,167
25.7
9,142
(6.2)
77,117
59,825
17,293
24.3
2,389
2.8
19,682
93,447
71,466
21,981
27.1
2,866
19.9
24,847
833
1,879
82
2,794
16,888
21.8
704
16,184
4,370
27.0
11,814
29.2
975
2,250
90
3,314
21,533
27.5
869
20,663
5,579
27.0
15,084
27.7
2011
2012
Sourcesoffunds
Equity
950
Reserves & Surplus
40,741
Networth
41,691
Growth(%)
23.1
Loan funds
451,628
Growth(%)
Others
Minority Interest
Total
493,319
Applicationoffunds
Net fixed assets

474
Advances
510,898
Growth(%)
34.2
Net current assets
(32,085)
Investments
14,032
Growth(%)
1.0
Other Assets
Total
493,319
September 10, 2012
1,010
55,812
56,822
36.3
560,873
24.2
617,695
622
630,802
23.5
(27,479)
13,750
(2.0)
617,695
2013E
2014E
1,010
65,277
66,287
16.7
698,592
24.6
764,878
1,010
76,831
77,841
17.4
872,088
24.8
949,929
552
777,735
23.3
(30,762)
17,465
27.0
764,879
606
960,818
23.5
(33,050)
21,802
24.8
949,929
Y/eMarch
Q2FY12
Interest Expenses
NetInterestIncome
Growth
Non interest income
Netoperatingincome
Growth
PPP
Growth
Provision
Profit before tax
Tax
Effectivetaxrate(%)
PAT
Growth
KeyRatios
Y/eMarch
CMP (Rs)
Eq. Shrs. O/s. (m)
Market Cap (Rs m)
EPS (Rs)
Book Value (Rs)
P/E (x)
P/BV (x)
P/ABV (x)
DPS (Rs)
Dividend Yield (%)
Q3FY12
Q4FY12
Q1FY13
14,579
11,238
3,341
9.5
574
3,916
5.9
561
3,354
5.1
2,047
1,307
323
24.7
984
(58.0)
15,387
12,129
3,258
(7.5)
539
3,796
(30.4)
534
3,263
(33.3)
(797)
4,060
1,003
24.7
3,057
43.2
16,280
12,572
3,708
(11.8)
610
4,318
(16.7)
854
3,464
(22.7)
(24)
3,488
952
27.3
2,536
(19.4)
17,179
13,674
3,505
(2.9)
494
3,999
(5.0)
521
3,479
(8.2)
436
3,043
766
25.2
2,277
(11.2)
2011
2012
2013E
2014E
246
475
116,964
23.7
20.5
87.8
87.4
12.0
2.8
2.8
3.5
1.4
246
505
124,352
20.1
18.1
112.5
110.8
13.6
2.2
2.2
3.6
1.5
246
505
124,352
16.3
23.4
131.3
127.9
10.5
1.9
1.9
4.0
1.6
246
505
124,352
13.1
29.9
154.1
150.5
8.2
1.6
1.6
6.0
2.4
AssetQuality
Y/eMarch
2011
2012
2013E
2014E
Gross NPAs (Rs m)

Net NPAs (Rs m)
NPA Coverage (%)
2,420
168
0.5
93.1
2,652
849
0.4
0.1
68.0
4,224
1,716
0.5
0.2
59.4
5,214
1,837
0.5
0.2
64.8
Profitability(%)
Y/eMarch
2011
2012
2013E
2014E
NIM
3.2
RoAA
2.2
RoAE
25.8
2.5
1.6
18.6
2.5
1.7
19.2
2.6
1.8
20.9
32
UnionBankofIndia
September10,2012
GrowthandFeeoutlook: Credit growth in large corporates continues to remain

a challenge and Union bank has identified retail, SME and Agri as focus areas for
growth in FY13. Fee income has been sluggish for union bank. Management
expects to see traction from FX and treasury business but believes that given the
dominance of larger banks like SBI and private players like ICICI/Axis in
syndication, he sees limited opportunities in that space.
AssetqualityOutlook: The bank is guiding for gross slippages at Rs 6-7bn per

quarter v/s Rs16bn seen in 1Q13. Restructuring pipeline still looks large with
~Rs30bn in accounts due for restructuring mainly SEB and steel sectors.
Construction/Infra contractor segment is showing some weakness now as
payments are getting delayed.
Somecorrectiveassetqualitymeasures: System driven recognition has led to a

sharp spike in NPAs in FY12 but management believes that erroneous recording
of moratorium period of both retail and corporate loans by branch staff had
exaggerated the numbers and better branch procedures will aid to reduce
errors going forward. Also over the last 2 qtrs, Union bank has not renewed
Rs70bn of short term unsecured corporate loans in order to keep a check on
asset quality, compromising on growth.
Performance evaluation now based on profitability v/s growth: The bank

highlighted that government is setting much broader parameters to evaluate a
banks performance like NIMs, ROAs, agricultural credit and NPAs. The shift in
focus from just credit growth to above qualitative metrics is a welcome move
along with the reduction in dependence on bulk deposits required by FinMin.
+91-22-66322236
Parul Gulati
+91-22-66322242
Rating
Price
Target Price
Implied Upside
Sensex
Nifty
NotRated
Rs160
NA
NA
17,767
5,363
Tradingdata
Market Cap. (Rs bn)
Shares o/s (m)
88.4
550.5
200.0
Majorshareholders
Promoters
Foreign
Domestic Inst.
Public & Other
54.35%
9.47%
19.60%
16.58%
StockPerformance
(%)
1M
Absolute
(2.4)
Relative
(3.5)
6M
(32.5)
(33.9)
12M
(33.5)
(38.8)
EPS(Rs)
PL
Cons.
2013
NA
38.9
2014
NA
48.2
%Diff.
NA
NA
200

Growth(%)
PAT (Rs m)
EPS (Rs)
Growth(%)
150
100
PricePerformance(RIC:UNBK.BO,BB:UNBKIN)
(Rs)
300
250
50
Source:Bloomberg
Sep-12
Jul-12
May-12
Mar-12
Jan-12
Nov-11
Sep-11
NIM(%)
RoAE(%)
RoAA(%)
2009
2010
2011
2012
38,136
33.6
30,820
17,266
34.2
24.5
41,924
9.9
36,593
20,749
41.1
20.2
62,162
48.3
43,050
20,819
39.6
(3.6)
69,089
11.1
52,538
17,871
32.3
18.5
2009
2.7
21.5
1.2
2010
2.4
21.7
1.2
2011
2.9
18.0
1.0
2012
2.8
13.2
0.7
Union Bank of India
Y/eMarch
2009
Interest Earned
118,894
Interest Expended
80,758
NII
38,136
Other Income
14,826
Total Income
52,961
Operating Expenses
22,141
PPOP
30,820
7,254
Profit Before Tax
23,566
Taxes
6,300
ProfitAfterTax
17,266
Earnings Per Share (Rs)
BalanceSheet(Rsm)
Y/eMarch
SourcesofFunds
Equity Paid Up
Net Worth
Deposits
Borrowings
TotalLiabilities
ApplicationofFunds
Gross Block
Investments
Advances
TotalAssets
GrowthRatios
Y/eMarch
2010
2011
2012
133,027
164,526
211,443
91,103
102,364
142,354
41,924 62,162 69,089
19,747
20,388
23,324
61,672
82,550
92,413
25,078
39,500
39,875
36,593
43,050
52,538
8,264
13,496
25,410
28,329
29,554
27,128
7,580
8,735
9,256
20,749 20,819 17,871
34.2
41.1
39.6
32.3
2009
2010
2011
2012
5,051
5,051
5,243
5,505
82,352
99,187
121,292
139,715
87,404
104,238
126,535
145,221
1,387,028 1,700,397 2,024,613 2,228,689
87,749
92,153
133,160
179,095
1,609,755 1,951,6182,359,8442,622,114
32,666
34,559
35,984
38,068
429,970
544,035
583,991
623,636
159,849
157,767
200,984
156,751
965,342 1,193,153 1,509,861 1,778,821
1,609,755 1,951,6182,359,8442,622,114
2009
2010
2011
2012
NII
33.6%
PPOP
19.4%
PBT
26.7%
PAT
24.5%
EPS
24.5%
Advances
30.0%
Deposits
33.5%
Borrowings
84.3%
Networth
19.0%
9.9%
18.7%
20.2%
20.2%
20.2%
23.6%
22.6%
5.0%
19.3%
48.3%
17.6%
4.3%
0.3%
-3.6%
26.5%
19.1%
44.5%
21.4%
11.1%
22.0%
-8.2%
-14.2%
-18.5%
17.8%
10.1%
34.5%
14.8%
September 10, 2012
AssetQuality(Rsm)
Y/eMarch
2009
2010
2011
2012
Gross NPAs to Gross Advances
2.0%
2.2%
2.4%
3.0%
Net NPAs (funded) to Net Advances
0.3%
0.8%
1.2%
1.7%
a) Opening Balance
16,566
19,234
26,709
36,228
b) Additions during the year
11,767
17,852
29,235
37,601
c) Reductions during the year
9,099
10,377
19,716
19,331
19,234
26,709
36,228
54,499
GrossDelinquency
1.2%
1.5%
1.9%
2.1%
NetDelinquency
0.3%
0.6%
0.6%
1.0%
MovementofNPAs(Gross)
d) Closing balance
EfficiencyRatio
Y/eMarch
2009
2010
2011
2012
Cost to Income
41.8%
40.7%
47.8%
43.1%
C/D Ratio
69.6%
70.2%
74.6%
79.8%
ROADecomposition
Y/eMarch
2009
2010
2011
2012
NII
Other Income
Total Income
OperatingExpenses
PPOP
ProvisionsandContingencies
Profit Before Tax
Taxes
ROA
Leverage (x)
ROE
2.7%
1.0%
3.7%
1.6%
2.2%
0.5%
1.7%
0.4%
1.2%
17.7
21.5%
2.4%
1.1%
3.5%
1.4%
2.1%
0.5%
1.6%
0.4%
1.2%
18.6
21.7%
2.9%
0.9%
3.8%
1.8%
2.0%
0.6%
1.4%
0.4%
1.0%
18.7
18.0%
2.8%
0.9%
3.7%
1.6%
2.1%
1.0%
1.1%
0.4%
0.7%
18.3
13.2%
CapitalAdequacy
Y/eMarch
2009
2010
2011
2012
Total CAR (Basel II)
13.0%
13.0%
12.5%
13.3%
Tier-1 (Basel II)
8.7%
8.7%
7.9%
8.2%
Tier- 2
4.3%
4.3%
4.6%
5.1%
34
CentralBankofIndia
September10,2012
Qualityovergrowth:The bank is looking at growth of 14%-15% in FY13 as the

current slowdown gives the opportunity to consolidate. Bank is trying to build
on retail fee income streams with doubling of 3rd party distribution income,
significant increase in ATMs (better inter-bank ATM fees) and targeting
significant increase in debit cards by yr end.
AssetqualityOutlook:CBOI believes that lumpy accounts have been accounted

for and delinquencies should normalize at ~2.0% going forward with ~Rs30bn of
annual slippages and ~Rs30-40bn of recoveries/upgrades expected. Of
Rs14.4bn of slippages in 1QFY13, Rs 8.0bn related to 5 accounts and
management expects ~Rs5bn of recoveries from 1Q13 slippages in the near
term.
OtherHighlights:(1) On the HR front, the management expects average age of

the employees to come off significantly in 5 yrs due to high retirements
currently. (2) The bank has bulk deposit of ~31% and inline with FinMin directive
aims to bring dependence down to <15%. (3) CBOI aims to deliver margins of 3%
by 4Q13, ROAs of 0.8% in FY13 and 1.0% by FY14, as margins improve and
delinquencies remain under control.
+91-22-66322236
Parul Gulati
+91-22-66322242
Rating
Price
Target Price
Implied Upside
Sensex
Nifty
NotRated
Rs64
NA
NA
17,346
5,238
Tradingdata
Market Cap. (Rs bn)
Shares o/s (m)
46.9
736.1
60.7
Majorshareholders
Promoters
Foreign
Domestic Inst.
Public & Other
79.15%
2.69%
10.79%
7.37%
StockPerformance
(%)
1M
Absolute
(7.9)
Relative
(9.0)
6M
(37.5)
(38.9)
12M
(37.2)
(42.4)
EPS(Rs)
PL
Cons.
2013
NA
15.8
2014
NA
20.2
%Diff.
NA
NA
80

Growth(%)
PAT (Rs m)
EPS (Rs)
Growth(%)
60
40
20
NIM(%)
RoAE(%)
RoAA(%)
PricePerformance(RIC:CBI.BO,BB:CBOIIN)
(Rs)
120
100
Source:Bloomberg
Sep-12
Jul-12
May-12
Mar-12
Jan-12
Nov-11
Sep-11
2009
2010
2011
2012
22,285
0.2
14,367
5,712
12.5
4.8
25,453
14.2
20,585
10,582
24.9
99.7
53,253
109.2
25,914
12,524
28.1
13.2
51,686
(2.9)
28,149
5,330
5.5
(80.5)
2009
1.6
10.7
0.4
2010
1.5
17.9
0.6
2011
2.7
18.5
0.6
2012
2.4
5.9
0.2
PostConferenceNote
Central Bank of India
Y/eMarch
2009
2010
2011
2012
Interest Earned
104,552
120,643
152,206
191,495
Interest Expended
82,267
95,190
98,952
139,809
NII
22,285 25,453 53,253 51,686
Other Income
10,700
17,352
12,650
13,953
Total Income
32,984
42,805
65,904
65,639
Operating Expenses
18,617
22,220
39,990
37,490
PPOP
14,367
20,585
25,914
28,149
5,118
5,090
9,322
21,686
Profit Before Tax
9,250
15,495
16,592
6,463
Taxes
3,537
4,913
4,068
1,133
ProfitAfterTax
5,712 10,582 12,524 5,330
BalanceSheet(Rsm)
Y/eMarch
SourcesofFunds
Equity Paid Up
Net Worth
Deposits
Borrowings
TotalLiabilities
ApplicationofFunds
Gross Block
Investments
Advances
TotalAssets
GrowthRatios
Y/eMarch
12.5
24.9
28.1
5.5
2009
2010
2011
2012
4,041
4,041
4,041
7,361
50,909
59,211
68,266
100,984
54,951
63,252
72,307
108,345
1,312,718 1,621,075 1,793,560 1,961,733
8,043
73,266
128,880
129,196
1,476,552 1,826,716 2,097,573 2,297,997
31,817
33,340
35,593
37,708
430,607
505,629
545,045
592,433
122,512
192,170
152,828
141,266
854,832 1,053,835 1,297,254 1,475,129
1,476,552 1,826,716 2,097,573 2,297,997
2009
2010
2011
2012
NII
0.2%
PPOP
13.3%
PBT
8.6%
PAT
3.8%
EPS
4.8%
Advances
17.1%
Deposits
19.0%
Borrowings
79.1%
Networth
6.9%
14.2%
43.3%
67.5%
85.3%
99.7%
23.3%
23.5%
811.0%
15.1%
109.2%
25.9%
7.1%
18.3%
13.2%
23.1%
10.6%
75.9%
14.3%
-2.9%
8.6%
-61.0%
-57.4%
-80.5%
13.7%
9.4%
0.2%
49.8%
September 10, 2012
AssetQuality(Rsm)
Y/eMarch
2009
2010
2011
2012
2.7%
2.3%
1.8%
4.8%
1.2%
0.7%
0.7%
3.1%
a) Opening Balance
23,500
23,160
24,580
23,940
8,730
10,330
14,090
68,490
9,070
8,910
14,730
19,700
23,160
24,580
23,940
72,730
GrossDelinquency
1.0%
1.0%
1.1%
4.6%
NetDelinquency
0.0%
0.1%
0.0%
3.3%
d) Closing balance
EfficiencyRatio
Y/eMarch
2009
2010
2011
2012
Cost to Income
56.4%
51.9%
60.7%
57.1%
C/D Ratio
65.1%
65.0%
72.3%
75.2%
ROADecomposition
Y/eMarch
2009
2010
2011
2012
NII
Other Income
Total Income
OperatingExpenses
PPOP
Profit Before Tax
Taxes
ROA
Leverage (x)
ROE
1.6%
0.8%
2.4%
1.4%
1.1%
0.4%
0.7%
0.3%
0.4%
25.5
10.7%
1.5%
1.1%
2.6%
1.3%
1.2%
0.3%
0.9%
0.3%
0.6%
27.9
17.9%
2.7%
0.6%
3.4%
2.0%
1.3%
0.5%
0.8%
0.2%
0.6%
28.9
18.5%
2.4%
0.6%
3.0%
1.7%
1.3%
1.0%
0.3%
0.1%
0.2%
24.3
5.9%
CapitalAdequacy
Y/eMarch
2009
2010
2011
2012
11.6%
11.6%
12.2%
13.1%
Tier-1 (Basel II)
6.3%
6.3%
6.8%
7.0%
Tier- 2
5.3%
5.3%
5.4%
6.2%
36
IndianOverseasBank
September10,2012
GrowthOutlook: The bank is looking at growth of 20% YoY in FY13 higher than
projected by most other PSUs. The areas of focus are working capital finance,
SME and retail. The SME segment is expected to grow at 25%-30%. In large
corporates, roads sector offers some opportunity to grow + working capital
requirement for completed project will also aid growth.
Asset Quality: The bank is looking at higher gross addition to NPA in FY13
against ~Rs32bn in FY12 (2.5% of advances). Though monsoon has improved offlate, management highlighted that its Agri portfolio is more concentrated in
southern states which have mostly received adequate rainfall.
Other highlights: (1)Bulk deposit for the bank is at ~28% and bank is allowing
some higher cost deposit to mature to comply with FinMins directive. (2)
CapitalInfusion: Assuming 18%-20% growth, management expects ~Rs220bn of
capital requirement through FY18 and for FY13 management expects ~Rs15bn
of capital infusion by the government.
+91-22-66322236
Parul Gulati
+91-22-66322242
Rating
Price
Target Price
Implied Upside
Sensex
Nifty
NotRated
Rs68
NA
NA
17,767
5,363
Tradingdata
Market Cap. (Rs bn)
Shares o/s (m)
53.9
797.0
99.0
Majorshareholders
Promoters
Foreign
Domestic Inst.
Public & Other
69.62%
3.15%
14.32%
12.91%
StockPerformance
(%)
1M
Absolute
(4.9)
Relative
(6.0)
6M
(32.6)
(34.0)
12M
(37.6)
(42.8)
EPS(Rs)
PL
Cons.
2013
NA
17.2
2014
NA
22.5
%Diff.
NA
NA
PricePerformance(RIC:IOBK.BO,BB:IOBIN)
(Rs)
120
100
80
Growth(%)
PAT (Rs m)
EPS (Rs)
Growth(%)
60
40
20
NIM(%)
RoAE(%)
RoAA(%)
Source:Bloomberg
Sep-12
Jul-12
May-12
Mar-12
Jan-12
Nov-11
Sep-11
2009
2010
2011
2012
28,696
7.1
25,237
13,258
24.3
10.3
31,679
10.4
18,446
7,070
13.0
(46.7)
42,080
32.8
28,606
10,725
17.3
33.6
50,162
19.2
35,341
10,501
13.2
(24.0)
2009
2.6
22.1
1.2
2010
2.5
11.2
0.6
2011
2.7
16.7
0.7
2012
2.5
12.2
0.5
Y/eMarch
2009
2010
2011
2012
Interest Earned
96,414
102,458
121,015
178,971
Interest Expended
67,718
70,779
78,934
128,809
NII
28,696 31,679 42,080 50,162
Other Income
15,958
11,433
12,251
16,810
Total Income
44,654
43,111
54,331
66,972
Operating Expenses
19,417
24,665
25,725
31,631
PPOP
25,237
18,446
28,606
35,341
5,694
8,657
12,684
22,364
Profit Before Tax
19,543
9,790
15,922
12,977
Taxes
6,285
2,720
5,197
2,476
ProfitAfterTax
13,258 7,070 10,725 10,501
24.3
BalanceSheet(Rsm)
Y/eMarch
SourcesofFunds
Equity Paid Up
Net Worth
Deposits
Borrowings
TotalLiabilities
ApplicationofFunds
Gross Block
Investments
Advances
TotalAssets
2009
13.0
2010
17.3
2011
2012
23,527
24,605
25,356
26,998
312,154
376,506
486,105
555,659
109,219
98,246
120,187
162,611
748,853
789,992
1,118,330
1,407,244
1,210,734 1,310,916 1,787,843 2,196,482
2009
2010
2011
2012
NII
7.1%
PPOP
26.1%
PBT
18.1%
PAT
10.3%
EPS
10.3%
Advances
23.9%
Deposits
18.7%
Borrowings
65.2%
Networth
47.2%
10.4%
-26.9%
-49.9%
-46.7%
-46.7%
5.5%
10.7%
-14.4%
-23.0%
32.8%
55.1%
62.6%
51.7%
33.6%
41.6%
31.1%
115.5%
32.9%
19.2%
23.5%
-18.5%
-2.1%
-24.0%
25.8%
22.9%
22.0%
35.7%
September 10, 2012
2009
2010
2011
2012
2.5%
4.5%
2.7%
2.7%
1.3%
2.5%
1.2%
1.4%
a) Opening Balance
9,970
19,234
36,111
30,896
22,619
31,268
21,693
31,848
13,354
14,392
26,908
23,543
d) Closing balance
19,234
36,111
30,896
39,201
GrossDelinquency
3.0%
4.0%
1.9%
2.3%
NetDelinquency
1.2%
2.1%
0.5%
0.6%
13.2
5,448
5,448
6,187
7,970
66,062
69,798
87,062
111,307
71,510
55,037
73,169
99,288
1,001,159
1,107,947
1,452,288
1,784,342
104,946
89,822
193,554
236,138
1,210,734 1,310,916 1,787,843 2,196,482
GrowthRatios
Y/eMarch
AssetQuality(Rsm)
Y/eMarch
EfficiencyRatio
Y/eMarch
2009
2010
2011
2012
Cost to Income
43.5%
57.2%
47.3%
47.2%
C/D Ratio
74.8%
71.3%
77.0%
78.9%
ROADecomposition
Y/eMarch
2009
2010
2011
2012
NII
Other Income
Total Income
OperatingExpenses
PPOP
Profit Before Tax
Taxes
ROA
Leverage (x)
ROE
2.6%
1.4%
4.0%
1.7%
2.3%
0.5%
1.8%
0.6%
1.2%
18.6
22.1%
2.5%
0.9%
3.4%
2.0%
1.5%
0.7%
0.8%
0.2%
0.6%
19.9
11.2%
2.7%
0.8%
3.5%
1.7%
1.8%
0.8%
1.0%
0.3%
0.7%
24.2
16.7%
2.5%
0.8%
3.4%
1.6%
1.8%
1.1%
0.7%
0.1%
0.5%
23.1
12.2%
CapitalAdequacy
Y/eMarch
2009
2010
2011
2012
14.6%
14.6%
14.8%
13.2%
Tier-1 (Basel II)
8.2%
8.2%
8.7%
7.9%
Tier- 2
6.4%
6.4%
6.1%
5.3%
38
UCOBank
September10,2012
GrowthOutlook:Growth remains benign and Uco bank expects loan growth to

remain within RBIs projection for the system (~16%). The bank is focussing on
non corporate book with targeted increase in gold loans to Rs15bn, Home loans
from Rs30bn to Rs45bn. Also Uco bank is targeting non-fund based trade
income by increasing their LC business to Rs150bn from Rs85bn now.
CASA Initiatives: The bank is targeting at improving CASA balances through

customer acquisition and capturing higher share of flow business. Uco is now
the sole banker for the oil payments made to Iran and CA balances on this
account is has increased to ~Rs 25bn over the past two months, and the bank
see the CA balances increasing further on this count.
Otherhighlights:(1)The bank has bulk deposit of ~30% and inline with FinMin
directive aims to bring dependence down to <15%. (2) Uco expects significant
reduction in the average age of the employees over next 5 yrs as with ~24000
employees currently, Uco has ~2000 retirements every yr which they are
replacing with a younger workforce (3) Ucos tierI capital is ~8% and
management estimates total capital requirement of Rs140bn over next 5 yrs .
+91-22-66322236
Parul Gulati
+91-22-66322242
Rating
Price
Target Price
Implied Upside
Sensex
Nifty
NotRated
Rs65
NA
NA
17,767
5,363
Tradingdata
Market Cap. (Rs bn)
Shares o/s (m)
43.8
664.7
147.6
Majorshareholders
Promoters
Foreign
Domestic Inst.
Public & Other
65.19%
3.57%
14.88%
16.36%
StockPerformance
(%)
1M
Absolute
(3.4)
Relative
(4.5)
6M
(20.1)
(21.5)
12M
(9.2)
(14.4)
EPS(Rs)
PL
Cons.
2013
NA
16.9
2014
NA
19.3
%Diff.
NA
NA
PricePerformance(RIC:UCBK.BO,BB:UCOIN)
(Rs)
100
80
60
Growth(%)
PAT (Rs m)
EPS (Rs)
Growth(%)
2009
2010
2011
2012
16,447
10.6
12,016
5,577
10.2
96.9
23,241
41.3
17,056
10,122
18.4
81.5
38,449
65.4
26,950
9,065
14.4
(21.6)
39,021
1.5
28,114
11,087
16.7
15.5
2009
1.6
18.0
0.6
2010
1.9
27.7
0.8
2011
2.6
18.8
0.6
2012
2.3
17.9
0.6
40
20
Source:Bloomberg
Sep-12
Jul-12
May-12
Mar-12
Jan-12
Nov-11
Sep-11
NIM(%)
RoAE(%)
RoAA(%)
PostConferenceNote
UCO Bank
Y/eMarch
2009
2010
2011
2012
Interest Earned
81,214
95,263
113,708
146,324
Interest Expended
64,767
72,022
75,259
107,303
NII
16,447 23,241 38,449 39,021
Other Income
10,199
9,659
9,254
9,656
Total Income
26,646
32,901
47,703
48,677
Operating Expenses
14,630
15,844
20,754
20,562
PPOP
12,016
17,056
26,950
28,114
5,634
4,997
14,948
14,478
Profit Before Tax
6,382
12,060
12,002
13,636
Taxes
805
1,938
2,936
2,549
ProfitAfterTax
5,577 10,122 9,065 11,087
AssetQuality(Rsm)
Y/eMarch
2009
2010
2011
2012
2.2%
2.0%
3.1%
3.5%
1.2%
1.2%
1.8%
2.0%
a) Opening Balance
16,520
15,395
16,664
31,504
6,665
11,090
27,299
24,012
7,790
9,821
12,460
14,653
15,395
16,664
31,504
40,862
1.0%
1.3%
2.8%
2.1%
0.2%
0.2%
1.5%
0.8%
d) Closing balance
GrossDelinquency
NetDelinquency
BalanceSheet(Rsm)
Y/eMarch
SourcesofFunds
Equity Paid Up
Net Worth
Deposits
Borrowings
TotalLiabilities
ApplicationofFunds
Gross Block
Investments
Advances
TotalAssets
GrowthRatios
Y/eMarch
10.2
18.4
14.4
16.7
2009
2010
2011
2012
5,494
5,494
6,275
6,647
27,077
35,112
49,687
61,257
32,570
40,605
55,962
67,904
1,002,216 1,224,156 1,452,776 1,540,035
51,374
62,638
54,748
129,014
1,116,642 1,373,195 1,633,985 1,804,984
13,394
14,013
15,145
16,702
293,848
435,214
429,273
457,715
108,534
81,043
169,804
136,037
688,039
825,045
990,708 1,155,400
1,116,642 1,373,195 1,633,985 1,804,984
2009
2010
2011
2012
NII
10.6%
PPOP
26.0%
PBT
35.8%
PAT
35.3%
EPS
96.9%
Advances
24.9%
Deposits
25.4%
Borrowings
199.4%
Networth
11.3%
41.3%
41.9%
89.0%
81.5%
81.5%
19.9%
22.1%
21.9%
24.7%
65.4%
58.0%
-0.5%
-10.4%
-21.6%
20.1%
18.7%
-12.6%
37.8%
1.5%
4.3%
13.6%
22.3%
15.5%
16.6%
6.0%
135.7%
21.3%
September 10, 2012
EfficiencyRatio
Y/eMarch
2009
2010
2011
2012
Cost to Income
54.9%
48.2%
43.5%
42.2%
C/D Ratio
68.7%
67.4%
68.2%
75.0%
ROADecomposition
Y/eMarch
2009
2010
2011
2012
NII
Other Income
Total Income
OperatingExpenses
PPOP
Profit Before Tax
Taxes
ROA
Leverage (x)
ROE
1.6%
1.0%
2.6%
1.5%
1.2%
0.6%
0.6%
0.1%
0.6%
32.6
18.0%
1.9%
0.8%
2.6%
1.3%
1.4%
0.4%
1.0%
0.2%
0.8%
34.0
27.7%
2.6%
0.6%
3.2%
1.4%
1.8%
1.0%
0.8%
0.2%
0.6%
31.1
18.8%
2.3%
0.6%
2.8%
1.2%
1.6%
0.8%
0.8%
0.1%
0.6%
27.8
17.9%
CapitalAdequacy
Y/eMarch
2009
2010
2011
2012
13.7%
13.7%
13.2%
11.9%
Tier-1 (Basel II)
8.5%
8.5%
7.1%
6.5%
Tier- 2
5.2%
5.2%
6.2%
5.5%
40
CityUnionBank
September10,2012
SMEfocused:City Union bank is primarily focused on SME /Retail segments and

the exposure to a single client is usually less than Rs50mn. Trading and MSME
comprises 50% of the loan book. Retail Loans contribute 12%, Agriculture 14%,
and Large industries 16%. A large part of its book is linked to working capital
(65%) and almost all lending is done against hard collaterals (mainly real estate
promoter residence).
Growth Outlook; branch expansion strategy: The bank aims to grow at +25%
and plans to increase branch network to 500 branches by FY15 from ~300
branches currently. ~70% branches are in Tamil Nadu and new incremental
branches will also be of similar geographical spread. Outside TN, CUB is
expanding in centres where clients have business links especially in large textiles
hubs near Ludhiana in North and Gujarat/Maharashtra in West.
AssetQualityUpdateontextiles:The bank is seeing asset quality concerns on

agri. portfolio (comprising 14%) as there is a tendency on the part of the framers
to delay payments expecting some kind of waivers in the upcoming election.
Textile portfolio is not seeing any issues, though the sector is facing power
shortage issues. Health of spinning industry has improved significantly in the last
12mnts after the crash in cotton prices. In 2011. Overall, smaller ticket sizes and
fully secured lending has been key strengths in CUBs asset quality and
management continues to remain focused on fully secured hard collateral based
lending.
+91-22-66322236
Parul Gulati
+91-22-66322242
Rating
Price
Target Price
Implied Upside
Sensex
Nifty
NotRated
Rs51
NA
NA
17,346
5,238
Tradingdata
Market Cap. (Rs bn)
Shares o/s (m)
20.9
410.0
35.7
Majorshareholders
Promoters
Foreign
Domestic Inst.
Public & Other
StockPerformance
(%)
Absolute
Relative
0.00%
21.82%
7.33%
70.85%
1M
1.3
0.2
6M
9.2
7.8
12M
11.8
6.6
EPS(Rs)
PL
Cons.
2013
NA
7.8
2014
NA
9.8
%Diff.
NA
NA
PricePerformance(RIC:CTBK.BO,BB:CUBKIN)
(Rs)
60
50
40
30
2009
2010
2011
2012

Growth(%)
PAT (Rs m)
EPS (Rs)
Growth(%)
2,426
18.3
2,267
1,221
3.8
20.1
2,781
14.7
2,558
1,528
3.8
0.2
4,200
51.0
3,610
2,151
5.3
38.9
4,998
19.0
4,271
2,803
6.9
29.3
2009
2.9
19.9
1.5
2010
2.7
20.6
1.5
2011
3.2
23.5
1.6
2012
3.0
24.9
1.7
20
10
Source:Bloomberg
Sep-12
Jul-12
May-12
Mar-12
Jan-12
Nov-11
Sep-11
NIM(%)
RoAE(%)
RoAA(%)
City Union Bank
Y/eMarch
2009
2010
2011
2012
Interest Earned
Interest Expended
NII
Other Income
Total Income
Operating Expenses
PPOP
Profit Before Tax
Taxes
ProfitAfterTax
6,012
3,962
2,050
851
2,901
1,088
1,813
457
1,356
339
1,017
8,044
5,618
2,426
1,237
3,663
1,395
2,267
484
1,783
562
1,221
9,566
6,785
2,781
1,435
4,216
1,659
2,558
605
1,953
425
1,528
12,184
7,984
4,200
1,574
5,774
2,164
3,610
790
2,821
670
2,151
BalanceSheet(Rsm)
Y/eMarch
SourcesofFunds
Equity Paid Up
Net Worth
Deposits
Borrowings
TotalLiabilities
ApplicationofFunds
Gross Block
Investments
Advances
TotalAssets
GrowthRatios
Y/eMarch
3.2
3.8
2009
2010
3.8
2011
2009
2010
2011
2012
1.8%
1.4%
1.2%
1.0%
1.1%
0.6%
0.5%
0.4%
a) Opening Balance
829
1,021
882
1,125
864
1,075
1,207
1,444
673
1,161
964
1,334
d) Closing balance
1,021
935
1,125
1,235
GrossDelinquency
1.5%
1.6%
1.3%
1.2%
NetDelinquency
0.3%
0.1%
0.3%
0.1%
5.3
2012
320
5,349
5,669
64,250
26
73,490
320
6,289
6,609
82,066
401
92,510
400
7,857
8,256
102,846
401
115,594
405
9,661
10,066
129,143
1,862
145,915
975
17,180
8,169
45,371
73,490
1,112
23,975
8,851
56,453
92,510
1,466
32,104
11,002
68,335
115,594
1,691
36,162
12,863
92,555
145,915
2009
2010
2011
2012
NII
18.3%
PPOP
25.1%
PBT
31.5%
PAT
20.1%
EPS
20.1%
Advances
24.4%
Deposits
27.7%
Borrowings
1419.9%
Networth
16.6%
14.7%
12.8%
9.5%
25.1%
0.2%
21.0%
25.3%
-0.2%
24.9%
51.0%
41.1%
44.4%
40.8%
38.9%
35.4%
25.6%
364.7%
21.9%
19.0%
18.3%
18.5%
30.3%
29.3%
31.1%
26.5%
87.3%
23.5%
September 10, 2012
AssetQuality(Rsm)
Y/eMarch
EfficiencyRatio
Y/eMarch
2009
2010
2011
2012
Cost to Income
38.1%
39.3%
37.5%
39.6%
C/D Ratio
68.8%
66.4%
71.7%
74.3%
ROADecomposition
Y/eMarch
2009
2010
2011
2012
NII
Other Income
Total Income
OperatingExpenses
PPOP
Profit Before Tax
Taxes
ROA
Leverage (x)
ROE
2.9%
1.5%
4.4%
1.7%
2.7%
0.6%
2.1%
0.7%
1.5%
13.5
19.9%
2.7%
1.4%
4.1%
1.6%
2.5%
0.6%
1.9%
0.4%
1.5%
14.0
20.6%
3.2%
1.2%
4.4%
1.7%
2.8%
0.6%
2.2%
0.5%
1.6%
14.3
23.5%
3.0%
1.3%
4.3%
1.7%
2.6%
0.6%
2.0%
0.3%
1.7%
14.6
24.9%
CapitalAdequacy
Y/eMarch
2009
2010
2011
2012
12.8%
12.8%
13.5%
12.7%
Tier-1 (Basel II)
11.8%
11.8%
12.4%
11.5%
0.9%
0.9%
1.1%
1.2%
Tier- 2
42
Financials
THIS PAGE IS INTENTIONALLY LEFT BLANK
September 10, 2012
43
Financials
Prabhudas Lilladher Pvt. Ltd.

3rd Floor, Sadhana House, 570, P. B. Marg, Worli, Mumbai-400 018, India
Tel: (91 22) 6632 2222 Fax: (91 22) 6632 2209
RatingDistributionofResearchCoverage
%ofTotalCoverage
60%
53.3%
50%
40%
30%
24.0%
22.0%
20%
10%
0.7%
0%
BUY
Accumulate
Reduce
PLsRecommendationNomenclature
Sell
BUY
Over 15% Outperformance to Sensex over 12-months
Accumulate
Outperformance to Sensex over 12-months
Reduce
Underperformance to Sensex over 12-months
Sell
Over 15% underperformance to Sensex over 12-months
TradingBuy
Over 10% absolute upside in 1-month
TradingSell
Over 10% absolute decline in 1-month
NotRated(NR)
No specific call on the stock
UnderReview(UR)
Rating likely to change shortly
This document has been prepared by the Research Division of Prabhudas Lilladher Pvt. Ltd. Mumbai, India (PL) and is meant for use by the recipient only as
information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of PL. It should not be
considered or taken as an offer to sell or a solicitation to buy or sell any security.
The information contained in this report has been obtained from sources that are considered to be reliable. However, PL has not independently verified the accuracy
or completeness of the same. Neither PL nor any of its affiliates, its directors or its employees accept any responsibility of whatsoever nature for the information,
statements and opinion given, made available or expressed herein or for any omission therein.
Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The
suitability or otherwise of any investments will depend upon the recipient's particular circumstances and, in case of doubt, advice should be sought from an
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September 10, 2012
44

Financials: A Story of Contracting Halves

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Financials

We conducted our Banks/Financials conference with participation from ~20

Marginstolookup;especiallyforprivatebanks/NBFCs: Lower wholesale rates

MixedfeedbackonAssetquality: (1) Retail asset quality continues to hold firm

Regulatory intensity to come off; a certain positive in an uncertain

RBI -NBFC regulations

Indian Overseas Bank

City Union Bank

Mr. Sashi Jagdishan

Mr. Bhavin Lakhpatwala

State Bank of India Mr. Vishvesh Ramamoorthy CGM, FRT

Mr. Anindya Banerjee

Head, Corp. Strgy.

Mr. Rakesh Mookim

Mr. Dipak Gupta

Mr. Sundar Raman

Ex. Dir. Finance IDFC

Mr. Bimal Giri

Dir. Corp. Planning & IR

Mr. Sanjay Kumar

Mr. Keki Mistry

Vice Chairman & CEO

Mr. Jaideep Iyer

Mr. Paul Abraham

Mr. Aparajit Bhandarkar

Mr. Sohali Chander

Head, Corp. Banking

Mr. Suresh Samtani

Indian Overseas Bank

Mr. Sudipto Sil

ACM, Fin. & IR

City Union Bank

CFO & Sr. GM

Shriram Transport Mr.Umesh Revankar

Mr. Sanjay Mundra

CIBIL (Credit Bureau)

RBI- Banking regulations Mr. Deepak Singhal

RBI - NBFC regulations

Mahindra Finance Mr. Ramesh Iyer

Mr. Dinesh Prajapati

Mr. Arun Kaul

September 10, 2012

Mr. Satish Pillai

Mrs. Mangala Vaidyanathan GM

Mr. Sudip Sural

Mr. Suman Chowdhary

1. Still expect domestic growth of ~20%

1. Core fees growth may not be double digits as earlier envisaged

1. Next leg of ROA improvement from operating cost

1. Some strain in CVs for the industry but manageable at the

1. Asset book positioned for a rising rate cycle.

1. Growth expectation now at ~20%

1. Still very positive on growth expectations

1. Management sanguine on CV asset quality -- Feedback from

1. Biggest beneficiary of easing wholesale rates

1. Growth expectations remain moderate (~20%)

1. Growth outlook very weak- Expect 14-15% growth

1. Growth continues to remain robust

1. Growth outlook robust

1. Margin recovery to be more gradual than previously estimated

1. Management positive on SEB reforms. UP tariffs to be

1. PFC involved in most stressed private power projects.