2QFY2013 Result Update | Banking

November, 2 2012

Jammu and Kashmir Bank

Performance Highlights

NEUTRAL
CMP Target Price `1,227 2QFY12 434 313 200 % chg (yoy) 27.3 35.1 35.0

Particulars (` cr) NII Pre-Prov. Profit PAT

2QFY13 553 423 270

1QFY13 536 415 246

% chg (qoq) 3.2 1.8 9.5

Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Banking

Source: Company, Angel Research

Jammu and Kashmir Bank (J&K Bank) reported a healthy set of numbers with net profit growing by 35.0% yoy. The results were above our estimates because of higher operating income and lower provisioning expenses than estimated by us. We recommend a Neutral rating on the stock. Slippages under control: For 2QFY2013, the loan growth for the bank was healthy at 21.4% yoy, while deposit growth was reasonably healthy at 15.8% yoy. The CD ratio of the bank remained on the lower end at 62.4% as of 2QFY2013. On the liabilities front, the growth in current account deposits was muted, however savings bank deposits continued to see traction growing by a healthy 21.4% yoy. The cost of deposits for the bank was higher by 8bp sequentially at 6.9%, however yield on advances increased by 30bp to 12.7%, leading to a 14bp expansion in the reported NIMs. The banks commissions, exchange and brokerage (CEB) income grew by a strong 35.9% yoy to `46cr, however the miscellaneous income was lower by 35.1% yoy, leading to a muted 3.3% yoy growth in fee income. Income from treasury more than tripled on a yoy basis during the quarter at `26cr. The banks asset quality remained stable

5,947 0.9 1249/645 12,115 10 18,755 5,698 JKBK.BO JKBK@IN

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 53.2 3.9 25.2 17.7

sequentially, with gross NPA ratio at 1.6% and net NPA ratio at 0.16%. The banks PCR which is highest in the industry, stood strong at 93.3%.
Outlook and valuation: At the current market price, the stock is trading at 1.1x FY2014E ABV vis--vis its historic range of 0.81.4x and eight-year median of 1.0x. Immediate levers in the form of increased CD ratio from the current low of 62.4% to higher yielding advances are likely to provide near-term higher momentum to NII growth for the bank relative to other mid-size banks. The bank also has a higher CASA ratio, capital adequacy and provision coverage than most other mid-sized banks. However, post the recent rally in the stock price, the stock is trading at the upper end (1.1x) of the FY2014 P/ABV range for PSU banks (0.5-0.9x). Also, in our view, the bank may face headwinds from any increasing competition in its home state and also from asset quality pressures in its large corporate book outside J&K. Hence, we recommend a Neutral rating on the stock.

Abs. (%) Sensex J&K Bank

3m 9.4 36.5

1yr 7.4 49.0

3yr 18.0 116.8

Key financials (standalone)

Y/E March (` cr) NII % chg Net Profit % chg NIM (%) EPS (`) P/E (x) P/ABV (x) RoA (%) RoE (%)
Source: Company, Angel Research

FY2011 1,544 37.9 615 20.1 3.4 126.9 9.7 1.7 1.3 19.0

FY2012 1,838 19.1 803 30.6 3.4 165.7 7.4 1.5 1.5 21.2

FY2013E 2,255 22.7 1,099 36.9 3.6 226.7 5.4 1.2 1.7 24.4

FY2014E 2,514 11.5 936 -14.9 3.6 193.0 6.4 1.1 1.3 17.7

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

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

Sourabh Taparia
022 3935 7800 Ext: 6872

Please refer to important disclosures at the end of this report

Jammu and Kashmir Bank | 2QFY2013 Result Update

Exhibit 1: 2QFY2013 performance (standalone)

Particulars (` cr) Interest earned - on Advances / Bills - on investments - on balance with RBI & others Interest Expended Net Interest Income Other income Other income excl. treasury - Fee Income - Treasury Income - Others Operating income Operating expenses - Employee expenses - Other Opex Pre-provision Profit Provisions & Contingencies - Provisions for NPAs - Provisions for Investments - Other Provisions PBT Provision for Tax PAT Effective Tax Rate (%)
Source: Company, Angel Research

2QFY13 1,501 1,061 417 23 948 553 91 65 46 26 19 644 221 143 78 423 33 9 14 9 390 120 270 30.9

1QFY12 1,476 1,028 422 26 941 536 93 73 51 20 22 629 214 138 76 415 50 26 24 365 119 246 32.5

% chg (qoq) 1.7 3.2 (1.1) (13.3) 0.8 3.2 (2.6) (11.5) (9.8) 29.5 (15.3) 2.3 3.3 3.7 2.6 1.8 (34.9) (65.4) #DIV/0! (61.4) 6.9 1.4 9.5 (167)bp

2QFY12 1,156 806 343 7 721 434 71 63 34 8 29 505 193 126 67 313 22 13 4 5 290 91 200 31.3

% chg (yoy) 29.9 31.6 21.7 229.2 31.4 27.3 27.7 3.3 35.9 208.3 (35.1) 27.3 14.6 13.9 15.9 35.1 46.9 (30.8) 220.7 94.4 34.2 32.5 35.0 (39)bp

1HFY13 2,977 2,089 839 49 1,888 1,088 184 138 97 46 41 1,273 435 281 154 838 83 35 14 34 755 239 516 31.7

1HFY12 2,212 1,557 642 13 1,340 871 138 120 75 19 44 1,010 381 253 127 629 67 38 8 21 562 180 382 32.1

% chg 34.6 34.2 30.7 279.8 40.9 24.9 33.3 15.3 28.7 148.9 (7.5) 26.0 14.2 10.9 20.9 33.2 24.5 (7.9) 76.7 63.5 34.2 32.5 35.0 (40)bp

Exhibit 2: 2QFY2013 Actual vs. Angel estimates

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

Actual 553 91 644 221 423 33 390 120 270

Estimates 541 85 626 230 396 51 346 112 234

Var. (%) 2.1 6.8 2.8 (3.9) 6.6 (35.2) 12.8 7.3 15.4

November 2, 2012

Jammu and Kashmir Bank | 2QFY2013 Result Update

Exhibit 3: 2QFY2013 performance

Particulars (` cr) Balance sheet Advances (` cr) Deposits (` cr) Credit-to-Deposit Ratio (%) Current deposits (` cr) Saving deposits (` cr) CASA deposits (` cr) CASA ratio (%) CAR (%) Tier 1 CAR (%) Profitability Ratios (%) Cost of deposits Yield on advances Yield on investments Reported NIM Cost-to-income ratio Asset quality Gross NPAs (` cr) Gross NPAs (%) Net NPAs (` cr) Net NPAs (%) Provision Coverage Ratio (%) Slippage ratio (%) NPA to avg. assets (%)
Source: Company, Angel Research

2QFY13 1QFY13 34,272 54,927 62.4 4,552 16,408 20,960 38.2 13.7 11.6 7.0 12.7 7.5 3.9 34.3 552 1.6 55 0.16 93.3 1.2 0.1 33,225 53,117 62.6 4,480 16,081 20,560 38.7 13.8 11.5 6.9 12.4 7.7 3.8 34.0 541 1.6 48 0.14 94.1 1.0 0.2

% chg (qoq) 2QFY12 3.2 3.4 (15)bp 1.6 2.0 1.9 (55)bp (2)bp 9bp 8bp 30bp (24)bp 14bp 33bp 2.0 (1)bp 14.9 2bp (79)bp 15bp (11)bp 28,236 47,425 59.5 4,590 13,515 18,105 38.2 13.6 11.3 5.4 11.2 6.3 3.7 38.1 542 1.9 62 0.2 92.0 0.8 0.1

% chg (yoy) 21.4 15.8 286bp (0.8) 21.4 15.8 (2)bp 12bp 27bp 164bp 156bp 120bp 22bp (380)bp 1.8 (30)bp (10.8) (6)bp 130bp 43bp (4)bp

Loan growth healthy

For 2QFY2013, the loan growth for the bank was healthy at 21.4% yoy, while deposit growth was reasonably healthy at 15.8%. The CD ratio of the bank remained on the lower end at 62.4% as of 2QFY2013. On the liabilities front, the growth in CA deposits was muted, however savings bank deposits continued to see traction growing by a healthy 21.4% yoy. The growth in savings deposits has been strong for J&K Bank inspite of lower growth levels for the industry (due to the high rate differential between savings and term deposits) on account of strong regional presence in the parent state of J&K. The banks outstanding loan book concentration within the J&K state is ~41%, (37% in J&K as of FY2012 end) while that outside the state is ~59%. For FY2013, the management aims at growing its advances at 25% yoy, with a majority of the growth coming in from the state of J&K.

November 2, 2012

Jammu and Kashmir Bank | 2QFY2013 Result Update

Exhibit 4: Strong growth in loan book

Adv. yoy chg (%) 30.0 25.0 20.0 15.0 10.0 5.0 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13
Source: Company, Angel Research

Exhibit 5: CASA growth trends

CDR (%, RHS) 63 63.0 62 62.0 61.0 60.0 41.0 40.0 39.0 38.0 10.9 21.1 20.1 18.2 15.8 10.0 20.0 CASA ratio (%) CASA growth (% yoy, RHS)) 30.0

Dep. yoy chg (%)

62 61 60

38.2

40.2

40.7

38.7

21.8 19.5

17.2 19.3

26.3 19.4

25.8 23.3

21.4 15.8

59.0 58.0

36.0

38.2

37.0

0.0

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

Source: Company, Angel Research

NIM increases by 14bp

The cost of deposits for the bank was higher by 8bp sequentially at 6.9%, however yield on advances increased by 30bp to 12.7%, leading to a 14bp expansion in the reported NIM. The bank earns ~6% spreads in the state of J&K compared to sub-3% in the rest of India. Higher growth in the parent state over the last year compared to rest of India has led to a steady rise in the NIM for the bank.

Exhibit 6: Yield on advances higher by 30bp

12.80 12.40 12.00 11.60 11.20 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 12.41 12.15 11.80 12.19 12.71

Exhibit 7: NIM increase by 14bp

(%) 4.00 3.80 3.60 3.40 3.20 3.00 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3.69 3.63 3.94 3.80

3.86

Source: Company, Angel Research

Source: Company, Angel Research

Fee income growth muted

The banks CEB income grew by a strong 35.9% yoy to `46cr, however the miscellaneous income was lower by 35.1% yoy, leading to a muted 3.3% yoy growth in fee income. Income from treasury more than tripled on a yoy basis during the quarter to `26cr. The bank has 22cr shares (investment value at `10 a share) of Metlife India of which they would be selling 5.2cr shares to Metlife India at a price of `36.50 and 6.64cr shares to Punjab National Bank (the price of which is yet to be decided) post an approval by the IRDA. The trading gains from this transaction are likely to appear in 2HFY2013.

November 2, 2012

Jammu and Kashmir Bank | 2QFY2013 Result Update

Slippages under control

The banks asset quality remained stable sequentially, with the gross NPA ratio at 1.6% and net NPA ratio at 0.16%. The bank had brought accounts between `10-50lakh worth under the system driven NPA recognition during 1QFY2013. Despite bringing the remaining accounts under system driven NPA recognition during 2QFY2013 (accounts worth `8,293cr), the slippage levels were controlled at `98cr (annualised slippage ratio of 1.2%). The banks PCR, which is highest in the industry, stood strong at 93.3%. The bank provided `12.5cr provisions on investments on account of `50cr exposure to Deccan Chronicle. The bank restructured over `200cr worth of
accounts during 2QFY2013, taking the total restructuring book to `1,501cr. The management expects no major restructuring to be in the pipeline.

Exhibit 8: Best-in-class asset quality

Gross NPAs (%) 2.5 2.0 1.5 1.0 92.0 94.1 Net NPAs (%) 93.8 94.1 PCR (%, RHS) 100.0 93.3 90.0

Exhibit 9: Credit costs under control

NPA Provisions to Avg Assets (%) 0.3 0.3 0.2 0.1 0.1 0.1

0.2

80.0

0.1

1.9 0.2

1.8 0.2

1.5 0.2

1.6 0.1

1.6 0.2

0.5 -

70.0 2QFY12 3QFY12 4QFY12 1QFY12 2QFY13

0.0 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13

Source: Company, Angel Research

Source: Company, Angel Research

Investment arguments
Robust asset quality till now
Over the years, the bank has maintained its robust asset quality profile, with the best-in-industry PCR (93.3% as of 2QFY2013). During 2QFY2013, slippages were under control (slippage ratio of 1.2% in 2QFY2013 despite switchover of accounts less than `10lakh under system driven NPA recognition, while recoveries, upgrades and write-offs were healthy too. Going ahead, we have factored in slippage levels of 1.3% and 1.4% for FY2013 and FY2014, respectively.

Strong branch network and legacy Dominant market share

The bank, with ~525 branches as of 1HFY2013, has the highest number of branches in J&K (much higher than the combined total of 300 branches of State Bank of India [SBI] and Punjab & Sind Bank). Due to its strong branch network and legacy of banking relationships, the bank has a dominant 65% market share in deposits in J&K. The CASA deposits constituted a strong 46.7% of incremental deposits growth from FY200512. This strong base of low-cost deposits is expected to sustain a relatively higher NIM of 3.754.0% vs other mid-size banks.

November 2, 2012

Jammu and Kashmir Bank | 2QFY2013 Result Update

Outlook and valuation

At the current market price, the stock is trading at 1.1x FY2014E ABV vis--vis its historic range of 0.81.4x and eight-year median of 1.0x. Immediate levers in the form of increased CD ratio from the current low of 62.4% to higher yielding advances are likely to provide near-term higher momentum to NII growth for the bank relative to other mid-size banks. The bank also has a higher CASA ratio, capital adequacy and provision coverage than most other mid-sized banks. However, post the recent rally in the stock price, the stock is trading at the upper end (1.1x) of the FY2014 P/ABV range for PSU banks (0.5-0.9x). Also, in our view, the bank may face headwinds from any increasing competition in its home state and also from asset quality pressures in its large corporate book outside J&K. Hence, we recommend a Neutral rating on the stock.

Exhibit 10: Key assumptions

Particulars (%) Credit growth Deposit growth CASA ratio NIMs Other income growth Growth in staff expenses Growth in other expenses Slippages Coverage ratio
Source: Angel Research

Earlier estimates FY2013 20.0 11.0 41.4 3.6 13.3 17.0 17.0 1.5 85.0 FY2014 19.0 11.0 41.6 3.5 2.9 17.0 17.0 1.7 80.0

Revised estimates FY2013 20.0 11.0 41.4 3.6 51.7 17.0 17.0 1.3 87.5 FY2014 19.0 11.0 41.6 3.6 (26.9) 17.0 17.0 1.7 80.0

Exhibit 11: Change in estimates

FY2013 Particulars (` cr) NII Non-interest income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT
Source: Angel Research

FY2014 Var. (%) 1.5 34.0 6.2 9.8 (30.3) 17.9 17.9 17.9 Earlier estimates 2,460 390 2,850 1,098 1,752 403 1,349 438 911 Revised estimates 2,514 370 2,885 1,098 1,786 401 1,385 449 936 Var. (%) 2.2 (4.9) 1.2 2.0 (0.4) 2.7 2.7 2.7

Earlier estimates 2,222 378 2,600 939 1,662 281 1,380 448 932

Revised estimates 2,255 507 2,762 939 1,824 196 1,627 528 1,099

November 2, 2012

Jammu and Kashmir Bank | 2QFY2013 Result Update

Exhibit 12: P/ABV band (standalone)

1,800 1,500 1,200 900 600 300 0 Price (`) 0.3x 0.6x 0.9x 1.2x 1.5x

Apr-06

Apr-07

Apr-08

Apr-09

Apr-10

Apr-11

Oct-06

Oct-07

Oct-08

Oct-09

Oct-10

Oct-11

Apr-12

Source: Company, Bloomberg, Angel Research

Exhibit 13: Recommendation summary

Company AxisBk FedBk HDFCBk ICICIBk* SIB YesBk AllBk AndhBk BOB BOI BOM CanBk CentBk CorpBk DenaBk IDBI# IndBk IOB J&KBk OBC PNB SBI* SynBk UcoBk UnionBk UtdBk VijBk Reco. Buy Neutral Neutral Buy Accumulate Buy Neutral Reduce Accumulate Neutral Neutral Accumulate Neutral Accumulate Neutral Accumulate Accumulate Neutral Neutral Neutral Accumulate Accumulate Neutral Neutral Accumulate Accumulate Neutral CMP (`) 1,217 475 631 1,079 23 420 138 107 743 283 53 427 71 400 110 96 169 74 1,227 328 756 2,153 121 76 223 65 56 Tgt. price (`) 1,476 1,270 25 492 97 817 449 447 103 181 819 2,353 235 74 Upside (%) 21 18 7 17 (9) 10 5 12 7 7 8 9 5 15 FY2014E P/ABV (x) 1.6 1.2 3.6 1.7 1.0 2.1 0.6 0.7 0.9 0.7 0.7 0.8 0.7 0.7 0.7 0.6 0.6 0.5 1.1 0.7 0.8 1.4 0.7 0.8 0.8 0.5 0.7 FY2014E Tgt P/ABV (x) 2.0 2.0 1.1 2.5 0.6 1.0 0.8 0.7 0.7 0.7 0.9 1.5 0.8 0.5 FY2014E P/E (x) 8.8 9.2 17.5 13.0 6.0 9.9 3.7 4.4 5.4 4.4 4.4 5.0 3.4 3.9 4.5 4.4 4.0 3.7 6.4 5.0 4.6 8.3 4.5 4.6 4.8 2.9 4.9 FY2012-14E EPS CAGR (%) 16.0 6.7 27.9 21.7 4.2 23.5 (0.4) 1.0 6.4 16.9 38.9 7.2 100.1 (2.2) 3.1 17.5 2.8 23.0 7.9 29.0 6.8 21.7 11.5 7.9 20.3 20.7 12.1 FY2014E RoA (%) 1.6 1.1 1.9 1.5 0.9 1.5 0.9 0.9 1.0 0.8 0.7 0.9 0.6 0.8 0.8 0.9 1.1 0.6 1.3 0.9 1.0 1.0 0.7 0.6 0.8 0.7 0.5 FY2014E RoE (%) 20.2 13.3 22.0 15.7 16.9 23.5 15.7 15.3 17.0 15.8 16.1 15.3 14.7 15.1 15.9 13.9 16.3 13.1 17.7 14.4 17.3 17.7 16.6 14.4 16.4 16.2 13.0

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

November 2, 2012

Oct-12

Jammu and Kashmir Bank | 2QFY2013 Result Update

Company Background
J&K Bank is a mid-sized public sector bank, with a branch network of over 600 branches and operations mostly concentrated in the parent state of J&K (~80% branches). The bank has the highest number of branches (~ 525) in J&K (SBI with ~160 branches comes a distant second), allowing the bank to maintain a favorable deposit mix along with healthy margins.

Income statement (standalone)

Y/E March (` cr) Net Interest Income - YoY Growth (%) Other Income - YoY Growth (%) Operating Income - YoY Growth (%) Operating Expenses - YoY Growth (%) Pre - Provision Profit - YoY Growth (%) Prov. & Cont. - YoY Growth (%) Profit Before Tax - YoY Growth (%) Prov. for Taxation - as a % of PBT PAT - YoY Growth (%) FY08 810 5.5 263 44.1 1,074 13.0 404 8.4 670 15.9 94 (42.2) 576 38.7 216 37.5 360 31.2 FY09 1,000 23.4 261 (0.7) 1,262 17.5 471 16.7 791 18.0 159 69.3 631 9.6 222 35.1 410 13.8 FY10 1,119 11.9 416 59.2 1,536 21.7 577 22.6 958 21.2 167 4.6 792 25.3 279 35.3 512 25.0 FY11 1,544 37.9 365 (12.4) 1,908 24.3 759 31.4 1,149 20.0 215 29.1 934 18.0 319 34.2 615 20.1 FY12 1,838 19.1 334 (8.4) 2,172 13.8 802 5.7 1,370 19.2 169 (21.3) 1,201 28.5 398 33.1 803 30.6 FY13E 2,255 22.7 507 51.7 2,762 27.2 939 17.0 1,824 33.1 196 15.9 1,627 35.5 528 32.4 1,099 36.9 FY14E 2,514 11.5 370 (26.9) 2,885 4.4 1,098 17.0 1,786 (2.0) 401 104.3 1,385 (14.9) 449 32.4 936 (14.9)

Balance sheet (standalone)

Y/E March (` cr) Share Capital Reserves & Surplus Deposits - Growth (%) Borrowings Tier 2 Capital Other Liab. & Prov. Total Liabilities Cash Balances Bank Balances Investments Advances - Growth (%) Fixed Assets Other Assets Total Assets - Growth (%) FY08 48 2,260 28,593 13.5 752 1,102 32,756 3,220 1,217 8,758 18,883 10.6 192 486 32,756 14.3 FY09 48 2,574 15.4 997 1,070 2,303 2,972 FY10 48 2,962 12.8 500 600 1,199 2,745 1,870 FY11 48 3,430 44,676 20.0 505 600 1,249 50,508 2,975 574 19,696 26,194 13.6 394 676 50,508 18.7 FY12 48 4,045 53,347 19.4 641 600 1,588 60,269 2,784 1,670 21,624 33,077 26.3 420 693 60,269 19.3 FY13E 48 4,885 11.0 671 585 1,657 2,665 1,341 FY14E 48 5,601 11.0 745 570 1,851 2,629 1,491

33,004 37,237

59,215 65,729

37,693 42,547

67,061 74,545

10,736 13,956 20,930 23,057 10.8 199 552 15.1 10.2 204 715 12.9

22,137 21,844 39,693 47,235 20.0 454 771 11.3 19.0 489 858 11.2

37,693 42,547

67,061 74,545

November 2, 2012

Jammu and Kashmir Bank | 2QFY2013 Result Update

Ratio analysis (standalone)

Y/E March Profitability ratios (%) NIMs Cost to Income Ratio RoA RoE B/S ratios (%) CASA Ratio Credit/Deposit Ratio CAR - Tier I Asset quality (%) Gross NPAs Net NPAs Slippages NPA Prov./Avg. Assets Provision Coverage Per Share Data (`) EPS ABVPS DPS Valuation Ratios PER (x) P/ABVPS (x) Dividend Yield DuPont Analysis (%) NII (-) Prov. Exp. Adj. NII Treasury Int. Sens. Inc. Other Inc. Op. Inc. Opex PBT Taxes RoA Leverage (x) RoE 2.7 0.3 2.3 0.3 2.6 0.6 3.2 1.3 1.9 0.7 1.2 15.4 18.2 2.9 0.5 2.4 0.2 2.6 0.5 3.2 1.3 1.8 0.6 1.2 14.9 17.4 2.8 0.4 2.4 0.4 2.8 0.6 3.4 1.4 2.0 0.7 1.3 14.2 18.2 3.3 0.5 2.9 0.2 3.1 0.6 3.6 1.6 2.0 0.7 1.3 14.3 19.0 3.3 0.3 3.0 0.1 3.1 0.5 3.6 1.4 2.2 0.7 1.5 14.6 21.2 3.5 0.3 3.2 0.3 3.5 0.5 4.0 1.5 2.6 0.8 1.7 14.1 24.4 3.6 0.6 3.0 0.0 3.0 0.5 3.5 1.6 2.0 0.6 1.3 13.4 17.7 16.5 2.7 1.3 14.5 2.4 1.4 11.6 2.0 1.8 9.7 1.7 2.1 7.4 1.5 2.7 5.4 1.2 3.7 6.4 1.1 3.2 74.2 15.5 84.5 16.9 105.7 620.8 22.0 126.9 717.4 26.0 165.7 844.1 33.5 226.7 46.0 193.0 39.0 459.2 510.4 1017.4 1165.1 2.5 1.1 1.3 0.1 58.0 2.6 1.4 2.1 0.2 48.6 2.0 0.3 0.9 0.4 90.1 1.9 0.2 1.2 0.3 92.7 1.5 0.1 1.2 0.2 93.8 1.8 0.3 1.3 0.2 87.5 2.6 0.6 1.7 0.5 80.0 39.2 66.0 12.8 12.1 38.1 63.4 14.5 13.8 40.7 61.9 15.9 12.8 40.5 58.6 13.7 11.3 40.7 62.0 13.4 11.1 41.4 67.0 14.1 12.1 41.6 71.9 14.3 12.4 2.7 37.6 1.2 18.2 2.9 37.3 1.2 17.4 2.9 37.6 1.3 18.2 3.4 39.8 1.3 19.0 3.4 36.9 1.5 21.2 3.6 34.0 1.7 24.4 3.6 38.1 1.3 17.7 FY08 FY09 FY10 FY11 FY12 FY13E FY14E

November 2, 2012

Jammu and Kashmir Bank | 2QFY2013 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

Jammu & Kashmir Bank No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors

Ratings (Returns):

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

November 2, 2012

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