Bank of india ru2 qfy2011-221010

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

Particulars (` cr) 2QFY11 1QFY11 % chg (qoq) 2QFY10 % chg (yoy)
NII 1,776 1,740 2.0 1,409 26.1
Pre-prov. profit 1,380 1,411 (2.2) 1,206 14.4
PAT 617 725 (14.9) 323 90.8
Source: Company, Angel Research
Bank of India posted robust net profit growth of 90.8% yoy, but it came in lower
by 14.9% qoq to `617cr for 2QFY2011. Net profit growth was aided by lower
provisioning expenses and lower effective tax rate.
Operating performance in line with industry; Asset quality disappoints: Advances
grew 2.6% qoq and 20.8% yoy to `1,81,437cr and deposits grew 3.2% qoq and
21.3% yoy to `2,41,071cr. Reported NIM declined by 8bp sequentially to 2.81%
due to the 30bp qoq increase in cost of funds, which was partially offset by the
9bp increase in yield on advances and 36bp rise in yield on investments. NII
grew by a healthy 26.1% yoy to `1,776cr. The domestic CASA ratio improved to
33.2% (32.6% in 1QFY2011). Slippages remained high sequentially at `818cr
(annualised slippage ratio of 1.94%) compared to `618cr in 1QFY2011
(annualised slippage ratio of 1.47%). NPA ratios improved on account of growth
in advances with gross NPAs at 2.64% (2.70% in 1QFY2011) and 1.14% (1.18%
in 1QFY2011), respectively. Restructured assets declined from `10,129cr in
1QFY2011 to `10,032cr in 2QFY2011 (5.5% of advances and 64% of the net
worth). There were slippages of `243cr (much higher than `72cr of 1QFY2011)
from restructured assets.
Outlook and Valuation: The bank’s RoEs are expected to improve over the
coming quarters on the back of declining NPA provisions, notwithstanding the
higher-than-expected slippages in 2QFY2011. We had upgraded the stock to
Accumulate at ~`340 levels (at 1.1x FY2012E P/ABV). However, at the CMP, the
stock is trading at 8.9x FY2012E EPS of `60.5 and 1.69x FY2012E ABV, which
we believe prices in the expected improvement in the bank’s fundamentals.
Hence, we remain Neutral on the stock.
Key Financials
Y/E March (` cr) FY2009 FY2010 FY2011E FY2012E
NII 5,499 5,756 7,215 8,020
% chg 30.0 4.7 25.3 11.2
Net Profit 3,007 1,741 2,617 3,184
% chg 49.7 (42.1) 50.3 21.6
NIM (%) 2.8 2.4 2.5 2.4
EPS (`) 57.2 33.1 49.8 60.5
P/E (x) 9.4 16.2 10.8 8.9
P/ABV (x) 2.5 2.5 2.0 1.7
RoA (%) 1.5 0.7 0.9 0.9
RoE (%) 29.2 14.2 18.9 19.8
NEUTRAL
CMP `537
Target Price -
Investment Period -
Stock Info
Sector Banking
Market Cap (` cr) 28,178
Beta 0.9
52 Week High / Low 588/309
Avg. Daily Volume 171,020
Face Value (`) 10
BSE Sensex 20,166
Nifty 6,066
Reuters Code BOI.BO
Bloomberg Code BOI@IN
Shareholding Pattern (%)
Promoters 64.5
MF / Banks / Indian Fls 13.3
FII / NRIs / OCBs 15.4
Indian Public / Others 6.8
Abs. (%) 3m 1yr 3yr
Sensex 11.3 20.1 14.5
Bank of India 32.9 19.9 108.4
Vaibhav Agrawal
022 – 4040 3800 Ext: 333
vaibhav.agrawal@angelbroking.com
Amit Rane
022 – 4040 3800 Ext: 326
amitn.rane@angelbroking.com
Shrinivas Bhutda
022 – 4040 3800 Ext: 316
shrinivas.bhutda@angelbroking.com
2QFY2011 Result Update | Banking
October 22, 2010
Bank of India
Performance Highlights

Bank of India | 2QFY2011 Result Update
October 22, 2010 2
Exhibit 1: 2QFY2011 performance
Interest earned 5,156 4,822 6.9 4,489 14.8
Interest expenses 3,380 3,081 9.7 3,080 9.7
NII 1,776 1,740 2.0 1,409 26.1
Non-interest income 585 586 (0.2) 676 (13.5)
Operating income 2,361 2,326 1.5 2,085 13.2
Operating expenses 981 916 7.1 879 11.6
Pre-prov. profit 1,380 1,411 (2.2) 1,206 14.4
Provisions & cont. 527 386 36.7 602 (12.4)
PBT 852 1,025 (16.8) 604 41.1
Prov. for taxes 235 300 (21.4) 280 (16.1)
PAT 617 725 (14.9) 323 90.8
EPS (`) 11.7 13.8 (14.9) 6.1 90.8
Cost-to-income ratio (%) 41.6 39.4 42.2
Effective tax rate (%) 27.6 29.2 46.5
Net NPA (%) 1.1 1.2 1.1
Exhibit 2: 2QFY2011 Actual v/s Angel estimates
Particulars (` cr) Actual Estimates Var. (%)
NII 1,776 1,820 (2.4)
Non-interest income 585 502 16.5
Operating income 2,361 2,321 1.7
Operating expenses 981 949 3.3
Pre-prov. profit 1,380 1,372 0.5
Provisions & cont. 527 422 25.1
PBT 852 951 (10.3)
Prov. for taxes 235 315 (25.4)
PAT 617 635 (2.9)

October 22, 2010 3
Advances growth in line with industry; deposits growth higher
For 2QFY2011, the bank’s net advances grew 2.6% qoq and 20.8% yoy to
`1,81,437cr and deposits grew 3.2% qoq and 21.3% yoy to `2,41,071cr. The
domestic gross advances grew 3.8% qoq and 22.3% yoy to `1,44,661cr and the
overseas gross loan book registered growth of 5.9% qoq and 24.1% yoy to
`39,681cr.
Demand for domestic loans was primarily driven by the corporates (up 44.4% yoy).
Agricultural advances were up 17.4% yoy, while the SME segment registered a
decline of 6.8% yoy. Growth in retail advances was sluggish both sequentially and
on yoy basis. Management is expecting strong traction in infrastructure lending
(sanction of `13,000cr) especially power and roads segments, going ahead.
Considering moderate overall growth so far, we have reduced our credit growth
estimates for FY2011 from 20.0% to 18.0%.
Exhibit 3: Trend in advances and deposits
Exhibit 4: Corporate domestic lending showing strong traction
Agricultural 19,302 17,782 8.5 16,439 17.4
SME 27,253 31,100 (12.4) 29,232 (6.8)
Corporates 82,779 75,024 10.3 57,310 44.4
Retail 15,327 15,453 (0.8) 15,272 0.4
- Housing 7,449 7,985 (6.7) 6,894 8.1
- Business Mortgage 1,577 1,659 (4.9) 2,065 (23.6)
- Auto 1,295 1,257 3.0 1,020 27.0
- Education 5,006 4,552 10.0 5,293 (5.4)
Total domestic advances 144,661 139,359 3.8 118,253 22.3
8.3
5.2
5.3
6.3
2.1 1.6
4.5
7.4
4.9
2.6
6.1
3.1
4.6
10.5
2.8
1.9
3.7
11.5
1.7
3.2
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
100,000
140,000
180,000
220,000
260,000
1QFY09
2QFY09
3QFY09
4QFY09
1QFY10
2QFY10
3QFY10
4QFY10
1QFY11
2QFY11
Advances (` cr) Deposits (` cr)
Advances qoq growth (%, RHS) Deposits qoq growth (%, RHS)

October 22, 2010 4
Exhibit 5: Corporates continue their dominance in domestic advances
NIMs decline sequentially in spite of ~90bp increase in CASA
The domestic CASA ratio improved to 33.2% (from 32.3% in 1QFY2011). CASA
deposits increased by a healthy 29.0% yoy, driven by yoy growth of 27.1% and
29.5% in current and savings deposits, respectively. The global reported NIM
declined by 8bp sequentially to 2.81% in 2QFY2011, due to the 30bp qoq
increase in cost of funds, which was partially offset by the 9bp increase in yield on
advances and the 36bp rise in yield on investments. Consequently, NII came in
slightly lower than our estimates, registering a 26.1% yoy and 2.0% qoq growth to
`1,776cr.
For 3QFY2011, management expects to sustain NIM in the range of 2.90-2.95%
on the back of focus on mid-corporate, SME and retail segments.
Exhibit 6: Trend in spreads – Global
Particulars (%) 2QFY10 3QFY10 4QFY10 1QFY11 2QFY11
Cost of deposits 5.59 5.26 4.79 4.79 4.99
Yield on advances 8.97 8.41 8.12 8.38 8.47
Yield on investments 7.14 7.36 6.98 6.90 7.26
Yield on funds 7.66 7.35 6.90 6.96 7.25
Cost of funds 5.26 4.90 4.53 4.45 4.75
Reported NIM 2.57 2.60 2.57 2.89 2.81
Agri
14%
SME
19%
Corporates
57%
Housing
5%
Business
Mortgage
1%
Auto
1%
Education
1%
Others
2%Retail
11%

October 22, 2010 5
Exhibit 7: Trend in spreads - Domestic
Non-interest income declines
CEB income recorded a decent growth of 21.4% yoy and 20.4% qoq. Recoveries
were down by 44.6% yoy to `30cr compared to `54cr in 2QFY2010. Total non-
interest income declined 13.5% yoy to `585cr due to lower treasury gains (down
48.0% yoy). However, non-interest income excluding treasury grew 11.5% yoy. We
expect total non-interest income to decline by 7.8% in FY2011E.
Exhibit 8: Break-up of non-interest income
CEB 301 250 20.4 248 21.4
Treasury 147 231 (36.3) 283 (48.0)
Recoveries 30 37 (18.4) 54 (44.6)
Others 107 68 55.8 91 16.9
Total 585 586 (0.2) 676 (13.5)
Exhibit 9: Trend in non-interest income mix
3.46 2.83 3.08 3.11 3.01 3.29 3.17
6.29 6.00 5.86
5.48
5.05 4.95
5.32
9.19
8.47 8.51 8.20
7.66 7.74 8.05
3.00
5.00
7.00
9.00
11.00
-
1.00
2.00
3.00
4.00
4QFY09
1QFY10
2QFY10
3QFY10
4QFY10
1QFY11
2QFY11
Reported NIM (%, LHS) Cost of Funds (%) Yield on Funds (%)
230 264 287 311 263 248 252 334 250 301
181 120
672
342
276 283 212
194
231 147
-
300
600
900
1,200
1QFY09
2QFY09
3QFY09
4QFY09
1QFY10
2QFY10
3QFY10
4QFY10
1QFY11
2QFY11
CEB Treasury Recoveries Others(` cr)

October 22, 2010 6
Slippages higher than expected
Slippages remained high sequentially at `818cr (annualized slippage ratio of
1.94%) compared to `618cr in 1QFY2011 (annualized slippage ratio of 1.47%).
Textiles, Engineering and Chemicals sector were the major contributors to the
slippages. NPA ratios improved on account of growth in advances with gross NPAs
at 2.64% (2.7% in 1QFY2011) and 1.14% (1.18% in 1QFY2011), respectively. The
provision coverage ratio including technical write-offs improved to 70.0% from
68.3% in 1QFY2011.
Restructured assets declined from `10,129cr in 1QFY2011 to `10,032cr in
2QFY2011 (5.5% of advances and 64% of the net worth). There were slippages of
`243cr (much higher than `72cr of 1QFY2011) from restructured assets. The
cumulative slippages from restructured advances increased to `1,866cr (18.6% of
the restructured advances).
Exhibit 10: Trend in asset quality
Source: Company, Angel Research, Note: NPA coverage excluding write-offs till 4QFY2009
Operating costs under control; provisions rise
Total operating expenses increased 7.1% qoq and 11.6% yoy to `981cr. The cost-
to-income ratio stood at 41.6%, above the bank’s eight-quarter average of 40.3%.
Till date, the bank has made excess provision of ~`170cr in employee costs, which
is expected to provide a cushion against future liabilities.
69 69 68
75
67
59
70
66
68 70
35
50
65
80
-
1,500
3,000
4,500
6,000
1QFY09
2QFY09
3QFY09
4QFY09
1QFY10
2QFY10
3QFY10
4QFY10
1QFY11
2QFY11
Gross NPAs (` cr) Net NPAs (` cr) Coverage ratio (%, RHS)

October 22, 2010 7
Exhibit 11: Trend in opex
During the quarter, provisioning expenses were up by 36.7% sequentially, on
account of floating provisions of `158cr for meeting the mandated norm of 70%
provision coverage for NPAs.
Exhibit 12: Break-up of provisioning expenses
NPA 286 308 (7.0) 470 (39.1)
Investment related 63 1 - 134 (53.2)
Others 178 78 129.8 (2) -
527 386 36.7 602 (12.4)
Sufficient capital adequacy
The bank is well capitalised with a CAR of 13.0% and tier-I capital of 8.4%
(forming 64.6% of the total CAR). With the Government of India holding at 64.5%,
the bank has adequate headroom to raise additional tier-I capital.
Exhibit 13: Comfortable capital adequacy
460
482
518
478
533
545
619
599
574
603
215
316
293
333
320
334
317
401
342
378
38.6 39.6
31.5
36.5
43.8 42.2
45.3 43.9
39.4
41.6
-
10.0
20.0
30.0
40.0
50.0
-
200
400
600
800
1,000
1,200
1QFY09
2QFY09
3QFY09
4QFY09
1QFY10
2QFY10
3QFY10
4QFY10
1QFY11
2QFY11
Staff expenses (` cr) Other opex (` cr) Cost-to-income ratio (%, RHS)
8.9 9.2 9.2 9.4 8.5 8.5 8.4
4.1 4.1 4.4 4.3
4.5 4.8 4.7
0.0
3.0
6.0
9.0
12.0
15.0
4QFY09
1QFY10
2QFY10
3QFY10
4QFY10
1QFY11
2QFY11
Tier-I CAR (%) Tier-II CAR (%)

October 22, 2010 8
Investment Arguments
Lower provisions to drive RoE
During the 2008 global meltdown, the bank faced severe asset quality pressure
and reported a slippage rate of 2.9% in FY2010 (from 1.8% in FY2009.) As a
result, the NPA provision/assets increased to 0.7% in FY2010 from 0.3% in
FY2009 in turn exerting pressure on the bank’s RoE. However, as observed in the
1QFY2011 results, the bank has overcome the worst in terms of asset quality.
Further, with an improvement in the operating environment, we expect the NPA
provision/assets to decline sharply to 0.4% by FY2012, leading to RoE of 19.8% by
FY2012 from 14.2% in FY2010.
Efficient capital management aiding RoE outlook
The bank’s CAR is at a comfortable 13.3%, with 8.5% tier-1 component reinforced
by strong internal generation that leaves comfortable headroom for tier-II sources.
The bank’s leverage is amongst the highest within peers, aided by relatively higher
use of tier-1 bonds and revaluation reserves. With the government holding at 64%,
the bank is not facing pronounced near-term constraints on the equity front.
Reasonably high fee income with moderate funding mix
The international operations contribute a substantial 21.2% to the bank’s
advances. The international operations enable a wider spectrum of fee-based
services to its domestic corporate and retail customers, foreign currency
fund-based services to the Indian corporates and savings products to its PIO clients
abroad. The bank has a CASA relatively better funding mix with domestic CASA
ratio at 33.2% as of 2QFY2011.
Outlook and Valuation
The bank’s RoEs are expected to improve over the coming quarters on the back of
declining NPA provisions, notwithstanding the higher-than-expected slippages in
2QFY2011. We had upgraded the stock to Accumulate at ~`340 levels (at 1.1x
FY2012E P/ABV). However, at the CMP, the stock is trading at 8.9x FY2012E EPS
of `60.5 and 1.69x FY2012E ABV, which we believe prices in the expected
improvement in the bank’s fundamentals. Hence, we remain Neutral on the stock.

October 22, 2010 9
Exhibit 14: Key Assumptions
Particulars (%)
Earlier Estimates Revised Estimates
FY2011E FY2012E FY2011E FY2012E
Credit growth 20.0 18.0 18.0 18.0
Deposit growth 18.0 17.0 17.0 18.0
CASA ratio 27.6 27.3 27.8 27.3
NIMs 2.5 2.4 2.5 2.4
Other income growth (8.7) 16.9 (7.8) 15.3
Growth in staff expenses 8.0 14.0 8.0 14.0
Growth in other expenses 8.0 14.0 8.0 14.0
Slippages 2.3 1.9 2.3 2.0
Treasury gain/(loss) (% of investments) 0.2 0.1 0.2 0.1
Exhibit 15: Change in estimates
Particulars (` cr)
FY2011 FY2012
Earlier
estimates
Revised
estimates
% chg
Earlier
estimates
Revised
estimates
% chg
NII 7,326 7,215 (1.5) 8,161 8,020 (1.7)
Non-interest income 2,390 2,412 0.9 2,794 2,782 (0.4)
Operating income 9,715 9,627 (0.9) 10,955 10,802 (1.4)
Operating expenses 3,961 3,961 - 4,516 4,516 -
Pre-prov. profit 5,754 5,666 (1.5) 6,439 6,286 (2.4)
Provisions & cont. 1,653 1,817 9.9 1,428 1,462 2.3
PBT 4,101 3,849 (6.1) 5,011 4,824 (3.7)
Prov. for taxes 1,361 1,232 (9.5) 1,704 1,640 (3.7)
PAT 2,740 2,617 (4.5) 3,307 3,184 (3.7)
Exhibit 16: P/ABV band
0
100
200
300
400
500
600
700
Apr-02
Sep-02
Feb-03
Jul-03
Dec-03
May-04
Oct-04
Mar-05
Aug-05
Jan-06
Jun-06
Nov-06
Apr-07
Sep-07
Feb-08
Jul-08
Dec-08
May-09
Oct-09
Mar-10
Aug-10
Jan-11
Price (`) 0.4x 0.8x 1.2x 1.6x 2x

October 22, 2010 10
Exhibit 17: Recommendation summary
Company Reco.
CMP
(`)
Tgt. Price
(`)
Upside
(%)
FY2012E
P/ABV (x)
FY2012E
Tgt P/ABV (x)
FY2012E
P/E (x)
FY2010-12E EPS
CAGR (%)
FY2012E
RoA (%)
FY2012E
RoE (%)
AxisBk Buy 1,464 1,705 16.5 2.7 3.2 14.0 29.6 1.6 21.1
FedBk Accumulate 477 512 7.4 1.4 1.5 10.0 32.6 1.4 14.8
HDFCBk Accumulate 2,324 2,510 8.0 3.7 4.0 19.6 35.7 1.7 20.4
ICICIBk* Buy 1,132 1,350 19.3 2.3 2.6 18.3 31.0 1.4 15.5
SIB Neutral 28 - - 1.7 - 9.6 18.0 1.0 17.8
YesBk Neutral 370 - - 2.9 - 17.0 24.4 1.2 18.2
BOI Neutral 537 - - 1.7 - 8.9 35.2 0.9 19.8
CorpBk Neutral 775 - - 1.4 - 7.5 12.5 1.0 20.1
DenaBk Neutral 125 - - 1.0 - 6.1 3.0 0.7 17.7
IndBk Neutral 303 - - 1.4 - 7.3 8.4 1.3 21.1
IOB Accumulate 161 172 7.0 1.1 1.2 8.0 24.5 0.7 14.8
OBC Neutral 486 - - 1.3 - 7.3 21.6 0.9 18.1
PNB Neutral 1,331 - - 1.8 - 8.8 10.6 1.2 22.3
SBI* Accumulate 3,201 3,556 11.1 2.0 2.6 14.1 24.0 1.1 19.2
UcoBk Neutral 126 - - 1.2 - 5.5 12.0 0.8 24.9
UnionBk Neutral 414 - - 1.6 - 7.3 17.2 1.1 23.9
Source: Company, Angel Research; Note:* target multiples=SOTP target price/ABV (including subsidiaries)

October 22, 2010 11
Income statement
Y/E March (` cr) FY06 FY07 FY08 FY09 FY10 FY11E FY12E
Net Interest Income 2,632 3,440 4,229 5,499 5,756 7,215 8,020
- YoY Growth (%) 17.7 30.7 22.9 30.0 4.7 25.3 11.2
Other Income 1,184 1,563 2,117 3,052 2,617 2,412 2,782
- YoY Growth (%) 2.5 32.0 35.4 44.2 (14.3) (7.8) 15.3
Operating Income 3,816 5,003 6,346 8,551 8,373 9,627 10,802
- YoY Growth (%) 12.5 31.1 26.8 34.7 (2.1) 15.0 12.2
Operating Expenses 2,115 2,608 2,645 3,094 3,668 3,961 4,516
- YoY Growth (%) 9.5 23.3 1.4 17.0 18.5 8.0 14.0
Pre - Provision Profit 1,701 2,395 3,701 5,457 4,705 5,666 6,286
- YoY Growth (%) 16.5 40.8 54.5 47.4 (13.8) 20.4 10.9
Prov. & Cont. 786 862 1,017 1,292 2,211 1,817 1,462
- YoY Growth (%) (21.4) 9.7 17.9 27.1 71.1 (17.8) (19.5)
Profit Before Tax 916 1,533 2,685 4,164 2,494 3,849 4,824
- YoY Growth (%) 98.6 67.4 75.1 55.1 (40.1) 54.4 25.3
Prov. for Taxation 214 410 675 1,157 753 1,232 1,640
- as a % of PBT 23.4 26.7 25.2 27.8 30.2 32.0 34.0
PAT 701 1,123 2,009 3,007 1,741 2,617 3,184
- YoY Growth (%) 106.3 60.1 78.9 49.7 (42.1) 50.3 21.6
Balance sheet
Y/E March (` cr) FY06 FY07 FY08 FY09 FY10 FY11E FY12E
Share Capital 488 488 526 526 526 526 526
Reserves & Surplus 4,496 5,407 10,063 12,969 13,704 15,740 18,250
Deposits 93,932 119,882 150,012 189,708 229,762 268,821 317,209
- Growth (%) 19.2 27.6 25.1 26.5 21.1 17.0 18.0
Borrowings 5,894 6,621 7,172 9,487 14,079 16,473 19,438
Tier 2 Capital 3,297 4,759 4,946 6,186 8,320 9,818 11,585
Other Liab & Prov. 4,168 4,480 6,110 6,315 8,000 9,660 11,817
Total Liabilities 112,274 141,637 178,830 225,192 274,392 321,039 378,826
Cash balances 5,588 7,197 11,742 8,915 15,603 18,818 23,791
Bank balances 5,858 10,209 5,976 12,846 15,628 16,052 18,941
Investments 31,782 35,493 41,803 52,607 67,080 78,551 91,199
Advances 65,174 84,936 113,476 142,909 168,491 198,819 234,606
- Growth (%) 16.4 30.3 33.6 25.9 17.9 18.0 18.0
Fixed Assets 810 789 2,426 2,532 2,352 2,669 3,055
Other Assets 3,063 3,014 3,407 5,382 5,239 6,130 7,233
Total Assets 112,274 141,637 178,830 225,192 274,392 321,039 378,826
- Growth (%) 18.2 26.2 26.3 25.9 21.8 17.0 18.0

October 22, 2010 12
Ratio analysis
Y/E March FY06 FY07 FY08 FY09 FY10 FY11E FY12E
Profitability ratios (%)
NIMs 2.6 2.8 2.7 2.8 2.4 2.5 2.4
Cost to Income Ratio 55.4 52.1 41.7 36.2 43.8 41.1 41.8
RoA 0.7 0.9 1.3 1.5 0.7 0.9 0.9
RoE 15.4 21.2 27.6 29.2 14.2 18.9 19.8
B/S ratios (%)
CASA Ratio 35.0 32.2 30.6 26.8 27.8 27.8 27.3
Credit/Deposit Ratio 69.4 70.8 75.6 75.3 73.3 74.0 74.0
CAR 10.8 11.6 13.0 12.1 12.0 11.9 11.8
- Tier I 6.8 6.5 8.2 8.3 7.9 7.7 7.5
Asset Quality (%)
Gross NPAs 3.7 2.4 1.7 1.7 2.9 3.5 3.8
Net NPAs 1.5 1.0 0.5 0.4 1.3 1.5 1.5
Slippages 1.2 1.4 1.6 1.8 2.9 2.3 2.0
Loan Loss Prov./Avg. Assets 0.5 0.4 0.4 0.3 0.7 0.5 0.4
Provision Coverage 53.7 64.5 75.6 56.1 65.5 70.0 70.0
Per Share Data (`)
EPS 14.4 23.0 38.2 57.2 33.1 49.8 60.5
ABVPS 88.1 113.2 167.8 215.2 215.6 273.0 319.0
DPS 3.0 3.5 4.0 8.0 7.0 9.5 11.0
Valuation Ratios
PER (x) 37.3 23.3 14.0 9.4 16.2 10.8 8.9
P/ABVPS (x) 6.1 4.7 3.2 2.5 2.5 2.0 1.7
Dividend Yield 0.6 0.7 0.7 1.5 1.3 1.8 2.1
DuPont Analysis (%)
NII 2.5 2.7 2.6 2.7 2.3 2.4 2.3
(-) Prov. Exp. 0.8 0.7 0.6 0.6 0.9 0.6 0.4
Adj. NII 1.8 2.0 2.0 2.1 1.4 1.8 1.9
Treasury 0.1 0.2 0.2 0.4 0.2 0.0 0.0
Int. Sens. Inc. 1.9 2.2 2.2 2.5 1.7 1.8 1.9
Other Inc. 1.0 1.1 1.1 1.1 0.8 0.8 0.8
Op. Inc. 2.9 3.3 3.3 3.6 2.5 2.6 2.7
Opex 2.0 2.1 1.7 1.5 1.5 1.3 1.3
PBT 0.9 1.2 1.7 2.1 1.0 1.3 1.4
Taxes 0.2 0.3 0.4 0.6 0.3 0.4 0.5
RoA 0.7 0.9 1.3 1.5 0.7 0.9 0.9
Leverage (x) 22.7 24.0 22.0 19.6 20.3 21.5 21.7
RoE 15.4 21.2 27.6 29.2 14.2 18.9 19.8

October 22, 2010 13
Research Team Tel: 022 - 4040 3800 E-mail: research@angeltrade.com Website: www.angeltrade.com
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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
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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
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Disclosure of Interest Statement Bank of India
1. Analyst ownership of the stock No
2. Angel and its Group companies ownership of the stock No
3. Angel and its Group companies' Directors ownership of the stock No
4. Broking relationship with company covered No
Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors.
Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
Reduce (-5% to 15%) Sell (< -15%)

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