4QFY2012 Result Update | Banking

May 11, 2012

UCO Bank
Performance Highlights

Particulars (` cr) NII Pre-prov. profit PAT

Source: Company, Angel Research

NEUTRAL
CMP Target Price
3QFY12 1,033 761 333 % chg (qoq) 1.7 (4.3) (24.0) 4QFY12 844 580 226 % chg (yoy) 24.4 25.6 11.9

`68 -

4QFY12 1,051 728 253

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 4,242 1.3 102/45 459,182 10 16,293 4,929 UCBK.BO UCO@IN

For 4QFY2012, UCO Bank reported an 11.9% yoy increase (down 24.0% qoq) in its net profit to `253cr, which was below our estimates, mostly due to lower non-interest income and higher provisioning expenses than estimated by us. We maintain our Neutral recommendation on the stock.
Asset quality deteriorates during 4QFY2012: For FY2012, the banks advances grew by reasonably healthy 16.6% yoy (up 9.1% qoq); however, the banks deposits growth was low at 6.0% yoy (up 7.6% qoq). CA deposit accretion picked up during 4QFY2012 with 24.2% qoq growth (up 4.4% yoy); however, savings accounts growth was moderate at 2.0% qoq (up 8.1% yoy). Reported CASA ratio on a qoq basis remained stable at 22.0%. Reported NIM of the bank declined by 18bp qoq, as higher cost of funding bulk deposits increased cost pressures, while interest reversals led to lower yield on advances. During 4QFY2012, fee income increased by 10.4% qoq, primarily due to a sharp rise in recoveries from writtenoff accounts. Slippages for the bank spiked up sharply during 4QFY2012 to `841cr (slippage ratio of 3.4%). The banks PCR improved qoq by 317bp to 54.4%, although it remains one of the lowest in the industry. Outlook and valuation: Structurally, the bank has had a relatively high exposure to large corporates, low CASA of ~22% and low fee income. Going forward, we expect the banks earnings to find support from its increasing exposure to the SME and retail segments (gold loans etc.), improving other income and moderating asset-quality pressures, aided by increasing recoveries. However, at the CMP, the stock is trading at 0.7x FY2013E ABV, which we believe factors in the improvement expected in earnings quality. Also, lower provisioning coverage ratio (higher provisioning burden as the bank moves to 70%) and low core tier-I capital (slower credit growth to accord with Basel-3 norms) are a further overhang. Hence, we maintain our Neutral recommendation on the stock. Key financials
Y/E March (` cr) NII % chg Net profit % chg NIM (%) EPS (`) P/E (x) P/ABV (x) RoA (%) RoE (%)
Source: Company, Angel Research

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 65.2 14.7 3.8 16.3

Abs. (%) Sensex UCO Bank

3m (8.2) (14.2)

1yr (12.3) (32.4)

3yr 39.5 101.2

FY2011 3,845 65.4 907 (10.4) 2.6 12.6 5.4 1.0 0.6 20.7

FY2012 3,902 1.5 1,109 22.3 2.3 14.0 4.8 0.8 0.6 16.2

FY2013E 4,595 17.7 1,302 17.5 2.4 16.9 4.0 0.7 0.7 16.5

FY2014E 5,205 13.3 1,363 4.7 2.4 17.9 3.8 0.7 0.6 15.4

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 sourabh.taparia@angelbroking.com

Please refer to important disclosures at the end of this report

Uco Bank | 4QFY2012 Result Update

Exhibit 1: 4QFY2012 performance

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

4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy) 3,965 3,106 820 16 24 2,914 1,051 252 219 1,303 574 369 206 728 456 379 77 272 19 253 7.1 3,738 2,893 824 16 6 2,706 1,033 235 198 1,268 507 348 159 761 420 133 287 341 8 333 2.3 6.1 7.4 (0.5) (1.7) 310.0 7.7 1.7 7.1 10.4 2.7 13.3 5.9 29.6 (4.3) 8.5 184.8 (73.1) (20.1) 140.5 (24.0) 471bp 3,068 2,298 728 20 24 2,224 844 292 265 1,136 556 381 175 580 341 94 247 239 13 226 5.5 29.2 35.2 12.7 (19.8) (0.7) 31.0 24.4 (13.7) (17.4) 14.6 3.2 (3.2) 17.3 25.6 33.8 304.5 NA 13.8 45.2 11.9 153bp

Exhibit 2: 4QFY2012 Actual vs. estimates

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

Actual 1,051 252 1,303 574 728 456 272 19 253

Estimates 1,074 297 1,370 554 816 400 416 75 342

Var. (%) (2.2) (15.1) (4.9) 3.7 (10.8) 14.0 (34.7) (74.3) (26.0)

May 11, 2012

Uco Bank | 4QFY2012 Result Update

Exhibit 3: 4QFY2012 performance analysis

Particulars 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 (%) Reported NIM Cost-to-income ratio Asset quality Gross NPAs (` cr) Gross NPAs (%) Net NPAs (` cr) Net NPAs (%) Provision Coverage Ratio (%) Slippage ratio (%) Credit cost (%) Source: Company, Angel Research 4,086 3.5 2,264 2.0 54.4 3.4 0.9 3,696 3.5 2,131 2.0 51.2 2.2 0.3 10.6 (1)bp 6.2 (8)bp 317bp 123bp 54bp 3,150 3.1 1,825 1.8 51.6 5.7 0.2 29.7 35bp 24.1 12bp 279bp (229)bp 63bp 2.7 44.1 2.9 40.0 (18)bp 411bp 2.4 43.3 36bp 77bp 4QFY12 3QFY12 % chg (qoq) 9.1 101bp 24.2 2.0 6.3 (27)bp 2bp 30bp 4QFY11 99,071 68.2 7,360 24,308 31,668 21.8 13.8 8.6 % chg (yoy) 16.6 6.0 683bp 4.4 8.1 7.2 25bp (145)bp (52)bp 115,540 105,919 154,003 143,108 75.0 7,685 26,267 33,952 22.0 12.4 8.1 74.0 6,190 25,741 31,931 22.3 12.3 7.8

7.6 145,278

Advances growth healthy; NIM declines sequentially

For FY2012, the banks advances grew by reasonably healthy 16.6% yoy (up 9.1% qoq), but the banks deposit growth was moderately low at 6.0% yoy (up 7.6% qoq). Strong growth in advances on a qoq basis was primarily due to aggressive lending though LC discounting (~`5,000cr added during last the 3-4 months) and introduction of gold loan portfolio (`1,000cr build from scratch mostly over the last quarter as per the management). On the deposits front, management cited lower yearly growth as a strategy to reduce the banks dependence on bulk deposits. Current account deposit accretion picked up during 4QFY2012, with 24.2% qoq growth (up 4.4% yoy), but savings accounts growth was moderate at 2.0% qoq (up 8.1% yoy). Reported CASA ratio on a qoq basis remained stable at 22.0%. Reported NIM of the bank declined by 18bp qoq during the quarter. The bank has a high dependence on bulk deposits for its funding, which led to higher cost of borrowing for the bank during the quarter. Also, higher slippages during the quarter led to interest reversal, which resulted in lower sequential yield on advances for the bank. Management has guided for advances growth in-line with RBIs projections of 16-17% for FY2013.

May 11, 2012

Uco Bank | 4QFY2012 Result Update

Exhibit 4: Healthy growth in loan book in 4QFY2012

Adv. qoq chg (%) 30.0 20.0 75.3 72.8 74.0 75.0 Dep. qoq chg (%) CDR (%, RHS) 80.0 76.0 72.0 68.0

Exhibit 5: YoY trend in business

Adv. yoy chg (%) 20.0 15.0 10.0 Dep. yoy chg (%)

10.7 20.3

3.0

68.2

(3.0) (12.2)

(0.6)

9.1 7.6

10.0

10.9 9.0

18.8 18.7

17.5 7.3

12.4 8.5

18.4 18.5

(10.0) (20.0)

64.0 60.0

4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

Source: Company, Angel Research

Source: Company, Angel Research

Exhibit 6: YoA (calc.) down sequentially

12.00 11.50 11.00 10.50 10.00 9.50 9.00 8.50 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12 9.75 10.78 11.50 11.49 11.22

Exhibit 7: NIM declines sequentially

3.10 2.70 2.35 2.30 1.90 1.50 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12 2.84 2.46 2.89 2.71

Source: Company, Angel Research

Source: Company, Angel Research

Higher recoveries led to healthy qoq growth in non-interest income

During 4QFY2012, fee income increased by 10.4% qoq, primarily due to a sharp rise in recoveries from written-off accounts (`42cr in 4QFY2012 compared to `12cr in 3QFY2012). Growth in CEB income was, however, muted sequentially at 1.6% qoq, as the banks income through underwriting and syndication was lower on account of slower corporate activities. On an annual basis, fee income performance was weak, declining by 7.7% compared to FY2011. We have factored in fee income growth of 17.3% for both FY2013 and FY2014.

Slippages jump up; Restructuring pipeline heavy

The banks asset quality deteriorated during 4QFY2012, with gross and net NPA levels increasing by 10.6% and 6.2% sequentially, respectively. The banks slippages spiked up sharply during 4QFY2012 to `841cr (annualized slippage ratio of 3.4%). The banks PCR improved qoq by 317bp to 54.4%, but it remains one of the lowest in the industry.

May 11, 2012

16.6 6.0

5.0

Uco Bank | 4QFY2012 Result Update

The bank restructured accounts amounting to ~`1,000cr during FY2012, of which restructuring in 4QFY2012 contributed only ~`200cr for the bank (much lesser than what other PSU banks have witnessed). However, the pipeline looks heavy currently, with Air India (~`1,000cr) and couple of SEBs (total SEB exposure at `5,000cr-`6,000cr) expected to restructure in the coming few quarters (Air India from 1QFY2013). Exhibit 8: Slippage ratio spikes up in 4QFY2012
Slippages (%) 6.0 4.5 3.0 0.2 1.5 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12 2.1 5.7 0.7 3.4 2.1 2.2 0.3 Credit cost (%, RHS) 0.9 1.0 0.8 0.6 0.4 0.2 3.2 2.8 2.4 2.0 1.6 1.2 0.8 0.4 -

Exhibit 9: NPA levels high for UCO Bank

Gross NPAs (%) Net NPAs (%)

3.1

1.8

3.5

2.2

3.6

2.1

3.5

2.0

3.5
1.33

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

Source: Company, Angel Research

Source: Company, Angel Research; note*excluding technical write-offs

Exhibit 10: 59 branches opened during 4QFY2012

Branches 2,350 2,300 2,250 2,200

Exhibit 11: Opex and cost-to-income ratio trends

Cost-to-income ratio (%) 50.0 45.0 40.0
1.46 1.35 1.27 1.23

Opex to average assets (%, RHS) 1.50 1.40 1.30 1.20 1.10

2,202

2,209

2,231

2,260

49.0

43.6

41.4

40.0

2,100 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

30.0 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

Source: Company, Angel Research

Source: Company, Angel Research

May 11, 2012

44.1

2,150

2,319

35.0

2.0

Uco Bank | 4QFY2012 Result Update

Investment arguments
Improvement in core profitability
The bank had relatively lower NIM of 1.9% in FY2010 due to low CASA ratio of ~22% and high exposure to relatively low-yielding corporate loans, which constituted 65% of its total loan book. While reported NIM has risen to 2.8% in FY2012 due to a decline in cost of wholesale deposits, going forward, an increase in retail and SME loans and introduction of gold loan portfolio are expected to lead to sustainable NIMs for the bank, going ahead.

Improvement in operating environment to lower credit cost

The banks gross and net NPAs stood at 3.5% and 2.0%, respectively, in 4QFY2012, with outstanding restructured advances at `7,300cr as of 4QFY2012. Although the restructuring pipeline looks heavy, it is expected to be mostly from state-owned entities, which should only lead to marginal NPV hit (only in case of Air India). Also, going forward, we expect stronger recoveries and lower slippages, which are expected to result in a decline in provisioning expenses, as a percentage of average assets, to 0.8% for FY2013 from 1.0% in FY2012.

Outlook and valuation

Structurally, the bank has had a relatively high exposure to large corporates, low CASA of ~22% and low fee income. Going forward, we expect the banks earnings to find support from its increasing exposure to the SME and retail segments (gold loans etc.), improving other income and moderating asset-quality pressures, aided by increasing recoveries. However, at the CMP, the stock is trading at 0.7x FY2013E ABV, which we believe factors in the improvement expected in earnings quality. Also, lower provisioning coverage ratio (higher provisioning burden as the bank moves to 70%) and low core tier-I capital (slower credit growth to accord with Basel-3 norms) are a further overhang. Hence, we maintain our Neutral recommendation on the stock.

May 11, 2012

Uco Bank | 4QFY2012 Result Update

Exhibit 12: 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 15.0 16.0 21.1 2.4 6.6 15.0 15.0 2.4 56.0 FY2014 15.0 15.0 20.7 2.4 14.3 15.0 15.0 2.3 57.0

Revised estimates FY2013 15.0 16.0 21.1 2.4 6.6 15.0 15.0 2.4 56.0 FY2014 15.0 15.0 20.7 2.4 14.3 15.0 15.0 2.3 57.0

Exhibit 13: 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. (%) (0.9) (5.8) (1.8) 1.0 (3.7) (3.6) (3.8) (3.8) (3.8) Earlier estimates 5,196 1,247 6,443 2,692 3,751 1,655 2,096 680 1,416 Revised estimates 5,205 1,176 6,380 2,719 3,661 1,643 2,018 655 1,363 Var. (%) 0.2 (5.7) (1.0) 1.0 (2.4) (0.7) (3.7) (3.7) (3.7)

Earlier estimates 4,634 1,092 5,727 2,341 3,385 1,580 1,806 451 1,354

Revised estimates 4,595 1,029 5,623 2,365 3,259 1,522 1,736 434 1,302

Exhibit 14: P/ABV band

200 180 160 140 120 100 80 60 40 20 0 Price (`) 0.5x 0.8x 1.1x 1.4x 1.7x

Sep-04

Sep-05

Sep-06

Sep-07

Sep-08

Sep-09

Sep-10

Sep-11

Mar-04

Mar-05

Mar-06

Mar-07

Mar-08

Mar-09

Mar-10

Mar-11

Mar-12

Sep-12

Source: Company, Angel Research

May 11, 2012

Mar-13

Uco Bank | 4QFY2012 Result Update

Exhibit 15: 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 Accumulate Buy Neutral Buy Accumulate Neutral Buy Buy Accumulate Buy Neutral Buy Buy Buy Buy Buy Accumulate Buy Buy Buy Buy Neutral Buy Buy Neutral CMP (`) 1,001 415 511 813 22 329 148 105 649 353 48 419 78 405 85 92 180 82 846 219 746 1,852 91 68 206 58 53 Tgt. price (`) 1,587 567 1,201 470 166 925 411 55 522 504 114 117 233 101 932 274 1,117 2,511 128 276 78 Upside (%) 58.5 0.6 10.9 47.8 2.2 42.6 12.3 42.6 16.3 14.5 24.6 24.4 34.3 27.0 29.7 23.9 10.2 25.1 49.8 35.6 41.3 34.3 33.6 FY2014E P/ABV (x) 1.4 2.9 1.3 1.7 0.6 0.6 0.7 0.7 0.6 0.7 0.7 0.5 0.5 0.6 0.6 0.5 0.7 0.5 0.7 1.2 0.5 0.7 0.7 0.4 0.6 FY2014E Tgt P/ABV (x) 2.2 3.3 1.9 2.4 0.7 1.1 1.0 0.7 0.9 0.7 0.7 0.7 0.8 0.6 0.8 0.6 1.1 1.6 0.8 0.9 0.6 FY2014E P/E (x) 7.2 7.3 14.4 10.0 5.8 7.9 3.5 4.1 4.3 4.5 3.7 4.5 3.9 3.6 3.3 3.8 3.7 3.8 4.3 3.4 4.3 6.9 3.3 3.8 4.1 2.6 4.3 FY2012-14E EPS CAGR (%) 16.4 13.0 27.0 20.4 4.5 22.5 6.2 3.3 11.1 23.3 45.3 11.8 45.7 5.3 6.2 22.7 5.4 28.3 8.8 27.7 10.3 23.6 8.7 13.0 24.8 22.5 13.5 FY2014E RoA (%) 1.5 1.3 1.7 1.5 0.8 1.4 0.9 0.9 1.1 0.8 0.7 0.9 0.5 0.8 0.9 0.9 1.2 0.6 1.4 0.8 1.0 1.0 0.8 0.6 0.8 0.7 0.5 FY2014E RoE (%) 20.3 14.5 22.1 16.0 17.5 23.3 17.6 16.0 18.2 16.9 17.2 16.4 13.8 16.5 16.9 14.8 18.2 13.9 18.6 14.3 18.1 19.1 17.1 15.4 17.5 16.5 13.7

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

May 11, 2012

Uco Bank | 4QFY2012 Result Update

Income statement
Y/E March (` cr) Net Interest Income - YoY Growth (%) Other Income - YoY Growth (%) Operating Income - YoY Growth (%) Operating Expenses - YoY Growth (%) Pre - Provision Profit - YoY Growth (%) Prov. & Cont. - YoY Growth (%) Profit Before Tax - YoY Growth (%) Prov. for Taxation - as a % of PBT PAT - YoY Growth (%) FY09 1,645 10.5 1,020 32.1 2,665 17.9 1,613 23.5 1,052 10.2 488 (15.2) 564 48.9 6 1.1 558 35.3 FY10 2,324 41.3 966 (5.3) 3,290 23.5 1,718 6.5 1,572 49.4 600 23.1 972 72.3 (41) (4.2) 1,012 81.5 FY11 3,845 65.4 925 (4.2) 4,770 45.0 2,075 20.8 2,695 71.5 1,781 196.8 914 (5.9) 8 0.8 907 (10.4) FY12 3,902 1.5 966 4.3 4,868 2.0 2,056 (0.9) 2,811 4.3 1,661 (6.7) 1,150 25.8 42 3.6 1,109 22.3 FY13E 4,595 17.7 1,029 6.6 5,623 15.5 2,365 15.0 3,259 15.9 1,522 (8.4) 1,736 51.0 434 25.0 1,302 17.5 FY14E 5,205 13.3 1,176 14.3 6,380 13.5 2,719 15.0 3,661 12.3 1,643 7.9 2,018 16.2 655 32.4 1,363 4.7

Balance sheet
Y/E March (` cr) Share Capital - Equity - Preference Reserve & Surplus Deposits - Growth (%) Borrowings Tier 2 Capital Other Liab. & Prov. Total Liabilities Cash Balances Bank Balances Investments Advances - Growth (%) Fixed Assets Other Assets Total Assets - Growth (%) FY09 1,249 549 700 2,708 100,222 25.4 2,062 3,075 2,348 111,664 6,589 4,265 29,385 68,804 24.9 719 1,903 111,664 24.4 FY10 1,699 549 1,150 3,511 122,416 22.1 1,889 4,375 3,430 137,319 7,243 862 43,521 82,505 19.9 710 2,479 137,319 23.0 FY11 2,451 628 1,823 4,969 145,278 18.7 1,100 4,375 5,227 163,398 10,404 6,576 42,927 99,071 20.1 739 3,681 163,398 19.0 FY12 2,488 665 1,823 6,126 154,003 6.0 2,256 10,645 4,980 180,498 7,812 5,792 45,771 115,540 16.6 802 4,782 180,498 10.5 FY13E 2,488 665 1,823 7,016 178,644 16.0 2,608 12,242 5,647 208,645 7,146 6,695 55,506 132,871 15.0 899 5,527 208,645 15.6 FY14E 2,488 665 1,823 7,971 205,441 15.0 2,980 13,160 6,370 238,410 8,218 7,651 62,428 152,802 15.0 996 6,316 238,410 14.3

May 11, 2012

Uco Bank | 4QFY2012 Result Update

Ratio analysis
Y/E March Profitability ratios (%) NIMs Cost to Income Ratio RoA RoE B/S ratios (%) CASA Ratio Credit/Deposit Ratio CAR - Tier I Asset Quality (%) Gross NPAs Net NPAs Slippages Loan Loss Prov. /Avg. Assets Provision Coverage Per Share Data (`) EPS ABVPS (75% cover.) DPS Valuation Ratios PER (x) P/ABVPS (x) Dividend Yield DuPont Analysis NII (-) Prov. Exp. Adj. NII Treasury Int. Sens. Inc. Other Inc. Op. Inc. Opex PBT Taxes RoA Leverage RoE * 1.6 0.5 1.1 0.3 1.5 0.7 2.2 1.6 0.6 0.0 0.6 38.2 21.1 1.9 0.5 1.4 0.2 1.6 0.6 2.2 1.4 0.8 (0.0) 0.8 38.9 31.6 2.6 1.2 1.4 0.1 1.4 0.6 2.0 1.4 0.6 0.0 0.6 34.3 20.7 2.3 1.0 1.3 0.1 1.4 0.4 1.9 1.2 0.7 0.0 0.6 29.9 16.2 2.4 0.8 1.6 0.1 1.6 0.5 2.1 1.2 0.9 0.2 0.7 28.7 16.5 2.3 0.7 1.6 0.1 1.6 0.5 2.1 1.2 0.9 0.3 0.6 29.0 15.4 6.7 1.6 1.6 3.7 1.2 3.4 5.4 1.0 4.4 4.8 0.8 4.4 4.0 0.7 4.4 3.8 0.7 4.4 10.2 43.1 1.1 18.4 56.8 2.3 12.6 67.2 3.0 14.0 80.0 3.0 16.9 90.6 3.0 17.9 101.7 3.0 2.2 1.2 1.2 0.3 47.2 2.0 1.2 1.6 0.3 50.0 3.1 1.8 3.3 0.8 50.4 3.5 2.0 2.4 0.4 54.4 4.1 2.1 2.4 0.4 56.0 4.6 2.2 2.3 0.4 57.0 24.1 68.7 11.9 6.5 24.7 67.4 13.2 7.1 22.0 68.2 13.8 8.6 22.1 75.0 21.1 9.4 21.1 74.4 20.7 9.0 20.7 74.4 19.7 8.6 1.7 60.5 0.6 21.1 1.9 52.2 0.8 31.6 2.6 43.5 0.6 20.7 2.3 42.2 0.6 16.2 2.4 42.1 0.7 16.5 2.4 42.6 0.6 15.4 FY09 FY10 FY11 FY12 FY13E FY14E

Note: * RoE calculated on PAT for equity share holders post preference dividend

May 11, 2012

10

Uco Bank | 4QFY2012 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

UCO 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%)

May 11, 2012

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