QFY14: Allahabad Bank continues to report tepid sets of numbers - SPA SecuritiesIndiaNotes.com
ALB continued to report tepid set of numbers with sharp deterioration in asset quality and ~18.8% decline in non interest income. NII surged by 28.1% YoY to INR 13528 mn on the back of 37 bps improvement in NIMs to 2.67%.
Shriram Transport Finance Company Q1FY15: Buy for a target of Rs1130IndiaNotes.com
Shriram Transport’s 1QFY15 PAT declined 10% YoY and (up 4% QoQ to INR3b (In line). Moderation in AUM growth (+4% YoY to INR544b), decline in disbursements (7% YoY), and improvement in margins (10bp QoQ) are key highlights of the quarter; buy.
Ride the Short Duration Wave - June 2019iciciprumf
Triggers to watch out for -
Current situation in the Fixed Income space
Our Outlook on what lies ahead
Segment of the yield curve, which stands to benefit
Read the full document to know more.
Stock Recommendation: Buy Punjab National Bank on dips for a target of Rs185IndiaNotes.com
In Q3FY15, PNB continued to disappoint on asset quality front and posted an overall lackluster performance. GNPA% and NNPA% have gone up sequentially from 5.65% and 3.26% in Q2FY15 to 5.97% and 3.82% in Q3FY15. NII remains almost flat y-o-y and q-o-q at Rs 4233 cr. Profitability was up 2.5% y-o-y and 34.6% q-o-q to Rs 774.6 cr. Provisions have declined 7.7% y-o-y and 17% q-o-q to Rs 1467.8 cr. Overall loan growth is up 11.2% y-o-y to Rs 372086 cr.
QFY14: Allahabad Bank continues to report tepid sets of numbers - SPA SecuritiesIndiaNotes.com
ALB continued to report tepid set of numbers with sharp deterioration in asset quality and ~18.8% decline in non interest income. NII surged by 28.1% YoY to INR 13528 mn on the back of 37 bps improvement in NIMs to 2.67%.
Shriram Transport Finance Company Q1FY15: Buy for a target of Rs1130IndiaNotes.com
Shriram Transport’s 1QFY15 PAT declined 10% YoY and (up 4% QoQ to INR3b (In line). Moderation in AUM growth (+4% YoY to INR544b), decline in disbursements (7% YoY), and improvement in margins (10bp QoQ) are key highlights of the quarter; buy.
Ride the Short Duration Wave - June 2019iciciprumf
Triggers to watch out for -
Current situation in the Fixed Income space
Our Outlook on what lies ahead
Segment of the yield curve, which stands to benefit
Read the full document to know more.
Stock Recommendation: Buy Punjab National Bank on dips for a target of Rs185IndiaNotes.com
In Q3FY15, PNB continued to disappoint on asset quality front and posted an overall lackluster performance. GNPA% and NNPA% have gone up sequentially from 5.65% and 3.26% in Q2FY15 to 5.97% and 3.82% in Q3FY15. NII remains almost flat y-o-y and q-o-q at Rs 4233 cr. Profitability was up 2.5% y-o-y and 34.6% q-o-q to Rs 774.6 cr. Provisions have declined 7.7% y-o-y and 17% q-o-q to Rs 1467.8 cr. Overall loan growth is up 11.2% y-o-y to Rs 372086 cr.
LIC Housing Finance Q1FY15: Buy for a target of Rs332IndiaNotes.com
LICHFL’s Q1FY15 results were below our estimates due to lower than expected NIMs (due to high cost of borrowings), higher other operating expenses (substantial rise in advertising cost) & higher taxes [due to Deffered Tax Liability impact].
Asset quality was better among peers but in tight liquidity situation it would remain challenging. Margin was compressed slightly in sequential basis but management continued to guided domestic NIM at 3% level from present of 2.95%. NSL value bank at Rs.634/share which is 0.75 times of FY14E’s book value.
Union bank reported profit growth of 15.4% largely due to lower provisions and Narnolia Securities Limited value bank at Rs.152/share which is 0.5 times of FY14E’s book contingencies led by lower slippage and restructure assets value.
JM Financial's loan against property is designed to meet the financial needs of a person to get loan at low interest to meet your current financial requirements. To know more about availing loan against property click jmfl.com
Bajaj Finance reported net profit of Rs 211.4 cr (+20.3% YoY) in Q1FY15 which was above expectations primarily due to higher than expected Net Interest Income (NII). NII increased 23.2% YoY and 23.0% QoQ with increase in consumer durable segment.
India Equity Analytics today by Narnolia Securities Limited. We recommended Kajaria Ceremics and Zensar Tech to BUY the stock with target price of Rs 350 and Rs 440 respectively. Also book profit on HDFC LTD stock.
LIC Housing Finance Q1FY15: Buy for a target of Rs332IndiaNotes.com
LICHFL’s Q1FY15 results were below our estimates due to lower than expected NIMs (due to high cost of borrowings), higher other operating expenses (substantial rise in advertising cost) & higher taxes [due to Deffered Tax Liability impact].
Asset quality was better among peers but in tight liquidity situation it would remain challenging. Margin was compressed slightly in sequential basis but management continued to guided domestic NIM at 3% level from present of 2.95%. NSL value bank at Rs.634/share which is 0.75 times of FY14E’s book value.
Union bank reported profit growth of 15.4% largely due to lower provisions and Narnolia Securities Limited value bank at Rs.152/share which is 0.5 times of FY14E’s book contingencies led by lower slippage and restructure assets value.
JM Financial's loan against property is designed to meet the financial needs of a person to get loan at low interest to meet your current financial requirements. To know more about availing loan against property click jmfl.com
Bajaj Finance reported net profit of Rs 211.4 cr (+20.3% YoY) in Q1FY15 which was above expectations primarily due to higher than expected Net Interest Income (NII). NII increased 23.2% YoY and 23.0% QoQ with increase in consumer durable segment.
India Equity Analytics today by Narnolia Securities Limited. We recommended Kajaria Ceremics and Zensar Tech to BUY the stock with target price of Rs 350 and Rs 440 respectively. Also book profit on HDFC LTD stock.
Bajaj Finance Q1FY15: AUM growth remained strong at Rs269.4 bn, buyIndiaNotes.com
Bajaj Finance Q1FY15 PAT stood at INR2.11b, up 20% YoY and 16% QoQ (11% above est. of INR1.9b). Strong AUM growth (+40% YoY and 12% QoQ) and stable asset quality QoQ (GNPA/NNPA 1.13/0.27%) were highlights of the quarter. Buy
Yes Bank: Reports tepid set of numbers in Q1FY15; HoldIndiaNotes.com
Yes Bank reported tepid set of numbers which were marginally below our estimates. While NII grew by 13.1% YoY to INR 7453 mn, profit grew by 9.6% to INR 4395 mn dented largely by 3.7% decline in non interest income and 25.1% surge in operating expenses. Hold
ING Vyasa Bank Q2FY14 Result: Maintain neutralIndiaNotes.com
ING Vysya Bank’s (VYSB) 2QFY15 PAT was 9% above estimate at INR1.8b (+2% YoY) led by better-than-expected NIM (+10bp) and lower provisioning. Reported NIM improved 17bp QoQ to 3.54%. However, adjusted for interest reversal on account of stressed accounts in 1QFY15, NIM was stable QoQ at 3.54%.
Karur Vysya Bank is a privately held Indian bank, headquartered in Karur in Tamil Nadu. The company operates in four business segments: treasury operations, corporate/ wholesale banking operations, retail banking operations and other banking operations. The company's investments are categorized into three categories, held to maturity, held for trading and available for sale. Karur Vysya Bank
Canara Bank: Slippages rise q-o-q to Rs26bn during Q1FY15IndiaNotes.com
During the quarter, stress levels remained high with gross slippages at INR26b (gross slippage ratio of 4.1%) as compared to INR21.4b in 4QFY14. However with an improvement in growth and likelihood of reforms, pressure on asset quality and earnings should ease.
Axis Bank Q1FY15: NIMs largely stable; BuyIndiaNotes.com
In Q1FY15, Axis posted NII of Rs 3310.5 cr, up 15.5% yoy and 4.6% qoq. NIMs have been stable at 3.88%. Growth in loans was sustained at 16.3% with momentum in the retail advances keeping up. Fee income growth was muted. Buy at CMP and add on dips.
ING Vysya Bank: Sharp deterioration in asset quality impacts NIM in Q1FY15IndiaNotes.com
ING Vysya Bank’s PAT declined 18% YoY to ~INR1.4b (22% below est.). Sharp deterioration in asset quality not only impacted NIMs (negative impact of 15bp) but also led to higher provisioning of INR1b (61% above estimate). Estimated downgraded, maintain buy.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
Canara Bank's operating performance to improve in remaining 9MFY16E
1. 1
BFSI
Canara Bank
Canara Bank reported stable set of operational numbers for Q1FY16 which were inline with our estimate and though there
was no big ticket NPA, slippages continue to be >3% of advances. Pre-provisioning operating profit (PPOP) increased by
11.6% YoY on back of 3.6%/8.4% increase in NII/other income and ~2% decline in operating expense. Due to higher
provisioning, PCR improved 173bps QoQ to 59.02%. We expect Canara Bank's operating performance to improve in remaining
9MFY16E on back of pickup in credit, increasing NIM and moderating operating cost. We maintain our BUY rating on the
stock with target price of INR 450, based on 0.85x FY17E ABV.
NII below our estimate due to lower credit growth
Canara Bank reported 3.6% YoY increase in NII to INR 25.17bn, which
wasbelowourestimateofINR26.55bn,primarilyduetolowercredit
growthof6.96%YoY(SPAeof10.33%)andlowerNIM.CDratiodeclined
194bps YoY to 68.68% as deposits grew by 10% YoY.
Credit growth muted but non corporate credit grew by 18%
Canara Bank reported muted credit growth of 6.96% YoY as it
continues to be cautious on lending to large corporate. However,
credit to high yielding sectors like retail, MSME and agriculture
togethergrewby18%andthesetogethernowconstitute~46.5%of
the loan book compared to 42% last year. Apart from lack of credit
demand, credit growth was also limited due to weak capital
structure of the bank (CET 1 of 7.65%).
CASA improved by 31bps YoY but declined sequentially
During the quarter, CASA ratio improved by 31bps YoY but grew
sequentially by 72bps to 23.24%. We expect CASA ratio to improve
gradually from Q2FY16 as Q2 & Q4 are best quarters in terms of
CASA mobilization and also supported by branch expansion in
last two years. During the last two years, the bank has aggressively
added branch network, 35% of the total 5708 branches were added
in last two years. We expect CASA ratio to improve to 24.5% by
FY17E driven by CASA CAGR of ~14% over FY15-17E.
NIM declined by 11bps YoY to ~2.13% due to lower spread
NIM declined by 11 bps YoY to 2.13% due to lower spread and CD
ratio. Interest rate spread declined as there was contraction in
yield on advances after cut in base rate in Q1FY16. We expect NIM
Shareholding (%) Jun-15
Promoters 64.48
FIIs 8.30
DIIs 20.65
Others 6.57
Relative Price Performance
August 07, 2015 RESULTUPDATE-Q1FY16
to improve in Q2FY16E following decline in cost of deposits due
to lower deposit rates and lower bulk deposits which declined by
47% YoY and now contributes 6.32% of total deposit compared to
13% last year.
Slippages higher at 3.1%, PCR improved to ~59%
Slippages continue to remain high at INR 25bn (3.1% of advances)
similar to ~INR 27bn quarterly run-rate in FY15. However, slippages
during the quarter was contributed mainly by SME and agriculture
sectors (~55% of slippages) while medium and large industries
contributed only ~25% of slippages. Due to higher provisioning,
PCR improved 173bps QoQ to 59.02%.
Outlook & Valuation
While operating performance of the bank is showing normalcy,
slippages continue to be high at >3% of advances, even though
there was no big ticket default during the quarter. We are also
disappointed on lack of scaling up of CASA deposit despite strong
branch addition in last two years. However, the management has
guided for stronger CASA mobilization and targets to bring cost of
deposit <7% in next quarter. We expect Canara Bank's operating
performance to improve in remaining 9MFY16E on back of pickup
in credit, increasing NIM and moderating operating cost. While
its capital adequacy at 10.75% (CET 1 of 7.65%) is relatively low,
it is adequately capitalized given weak credit demand outlook
and equity infusion program of the government. We maintain our
BUY rating on the stock with target price of INR 450, based on
0.85x FY17E ABV.
Key Data
BSE Code 532483
NSE Code CANBK
Bloomberg Code CBK IN
Reuters Code CNBK.BO
Shares O/S (mn) 475.20
Face Value 10
Mcap (INR bn) 156.39
52 Week H/L 478/254
2W Avg. Qty, NSE 3700896
Free Float (INR bn) 55.55
Beta 1.42
Y/E March (INR bn) FY14 FY15 FY16E FY17E
Interest income 395 438 479 564
Interest Expended 306 341 360 421
Net interest income 89 97 119 143
Growth (%) 13.52% 8.04% 23.10% 20.24%
NIM (%) 2.09% 2.03% 2.20% 2.31%
APAT 24 27 27 45
Growth (%) -15.11% 10.83% -0.60% 68.10%
EPS (INR) 53 57 52 88
ABV (INR) 394 363 403 514
P/ABV (x) 0.67 0.93 0.77 0.61
Net NPA 1.98% 2.65% 2.50% 1.78%
RoA 0.59% 0.57% 0.51% 0.76%
RoE 10.11% 10.40% 8.94% 13.24%
Dividend Yield 4.16% 3.11% 3.53% 3.53%
Sensex: 28282 CMP:INR312 Target: INR 450
Deepak Tewary
deepak.tewary@spagroupindia.com
Ph. No. 91 33 40114800/ 859
60
70
80
90
100
110
120
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
Apr-15
May-15
Jun-15
Jul-15
Aug-15
CanBank Sensex
2. 2
BFSI
Source:Company, SPA Research
Other Highlights
• During the quarter, the bank restructured asset worth INR
7.19bn against management guidance of ~INR 5bn. However,
there was no slippages from standard restructured accounts
and NPA in restructured accounts declined to INR 56.67bn
compared to 58.8bn in Q4FY15. Of the total restructured
amount, infrastructure, iron & steel, textile and construction
constitutes 51%, 11%, 7% and 11% respectively.
• NetProfitdeclinedby40.6%YoYtoINR4.79bn(SPAe:INR4.83bn)
despite PPOP improving by 11.6% due to higher provisioning
for NPA, which increased by 72.5% YoY to 13.6bn. Due to higher
NPA provisioning, PCR improved 173bps QoQ to 59.02%. Non-
interest income increased by 8.4% YoY because of higher trading
profit and recovery in written-off accounts.
• Canara Bank added 26 branches and 506 ATMs during the
quarter taking the total strength of branches to 5708 and ATMs
to 9039.
• As per Basel III norms, Canara Bank's CAR stands at 10.75% at
the end of Q1FY16 with tier 1 / CET1 capital at 8.28%/7.65%.
During the quarter, Canara Bank allotted 40mn shares to LIC
at NR 380.08 after which, government's shareholding
decreased to 64.48% from 69.91%.
Quarterly Financials
Particulars(INRbn) Q1FY16 Q4FY15 Q1FY15 % YoY % QoQ
Interest Earned 111.4 111.0 107.0 4.1% 0.3%
Interest Expended 86.2 86.2 82.7 4.2% 0.1%
Net Interest Income 25.2 24.9 24.3 3.6% 1.2%
NIM (%) 2.13 2.09 2.24 (11 bps) 04 bps
Other Income 11.1 13.3 10.3 8.4% -16.1%
Net Total Income 36.3 38.1 34.6 5.0% -4.8%
Operating Expenses 16.3 20.8 16.6 -2.1% -21.8%
Paymentsto/Provisionsforemployees 10.6 11.6 10.4 2.0% -8.9%
Other operating expenses 5.7 9.2 6.2 -9.0% -38.1%
Cost/Income Ratio (%) 44.80 54.55 48.06 (326 bps) (975 bps)
OperatingProfits 20.0 17.3 18.0 11.6% 15.6%
Provisions & Contingencies 13.6 10.1 7.9 72.5% 34.7%
ProfitBefore Tax 6.4 7.2 10.1 -36.1% -10.9%
Provision for Tax 1.7 1.1 2.0 -17.5% 50.0%
NetProfit 4.8 6.1 8.1 -40.7% -21.9%
EPS 9.3 12.9 17.5 - -
Equity 5.2 4.8 4.6 - -
GNPA 130.8 130.3 81.6 60.3% 0.4%
NNPA 88.9 87.4 61.5 44.5% 1.7%
GNPA (%) 3.98 3.89 2.67 131 bps 09 bps
NNPA (%) 2.74 2.65 2.03 71 bps 09 bps
RoA (%) 0.36 0.50 0.66 (30 bps) (14 bps)
NIM to improve due to higher retail lending and repricing
of liability
0.00%
3.00%
6.00%
9.00%
12.00%
Q1FY15 Q2FY15 Q3FY15 FY15E FY16E FY17E
1.8%
1.9%
2.0%
2.1%
2.2%
2.3%
2.4%
Cost of deposit Yield on Advances NIM (RHS)
CASA impacted due to lower current deposit growth
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16
21.5%
22.0%
22.5%
23.0%
23.5%
24.0%
24.5%
25.0%
CASA Ratio (RHS) Growth in Deposit Growth in Advances
Cost/Income Ratio - decline due to no wage hike related
provisioning; expect it to stabilize ~46% in FY17E
40.0%
45.0%
50.0%
55.0%
Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16
3. 3
BFSI
Financials
Income StatementY
Y/E March (INR bn) FY14 FY15 FY16E FY17E
Interest income 395 438 479 564
Growth (%) 16.05% 10.63% 9.58% 17.72%
Interest Expended 306 341 360 421
Net interest income 89 97 119 143
Growth (%) 13.52% 8.04% 23.10% 20.24%
Other Income 39 45 49 58
Net Income 129 142 168 201
Operating Expenditure 61 73 81 92
Operating Income 68 69 88 110
Provisions & Contingencies 37 35 50 45
PBT 31 35 38 64
Tax 6 8 11 19
PAT 24 27 27 45
Extra-ordinary Items 0 0 0 0
APAT 24 27 27 45
Growth (%) -15.11% 10.83% -0.60% 68.10%
EPS (INR) 52.86 56.86 52.13 87.63
Balance Sheet
Y/E March (INR bn) FY14 FY15 FY16E FY17E
SOURCES OF FUNDS
Equity Share Capital 4.6 4.8 5.2 5.2
Reserves 292 313 350 391
Total Shareholders Funds 296 318 356 396
Total Deposits 4207 4738 5293 6007
Growth (%) 18.23% 12.63% 11.70% 13.50%
Borrowings 272 257 165 336
Other Liabilities & Provisions 147 166 243 180
Total Liabilities 4923 5479 6057 6920
APPLICATION OF FUNDS
Current Assets 448 486 439 496
Investments 1268 1453 1678 1904
Advances 3011 3300 3729 4289
Growth (%) 24.32% 9.62% 13.00% 15.00%
Fixed Assets 66 69 77 85
Other Assets 129 170 133 146
Total Assets 4923 5479 6057 6920
Key Ratios
Y/E March (INR bn) FY14 FY15 FY16E FY17E
Per Share Data (INR)
EPS 52.86 56.86 52.13 87.63
BVPS 642.16 668.50 690.12 768.62
ABVPS 393.63 362.76 402.68 513.76
DPS 11.00 10.50 11.00 11.00
Profitability Ratios
Yield on Advances 10.62% 10.72% 10.22% 10.22%
Cost of Deposits 7.49% 7.41% 7.01% 7.00%
Net Interest Margin 2.09% 2.03% 2.20% 2.31%
RoA 0.59% 0.57% 0.51% 0.76%
RoE 10.11% 10.40% 8.94% 13.24%
Balance Sheet Ratios
Credit/Deposit Ratio 71.56% 69.65% 70.46% 71.39%
Investment/Deposit Ratio 30.15% 30.67% 31.70% 31.70%
CASA Ratio 24.55% 23.96% 24.21% 24.50%
Capital Adequacy Ratio (CAR) 10.63% 10.56% 9.99% 9.59%
Tier I 7.68% 8.02% 7.75% 7.65%
Aseet Quality Ratios
Gross NPA 2.51% 3.95% 3.75% 2.83%
Net NPA 1.98% 2.65% 2.50% 1.78%
Provision Coverage Ratio 60.11% 57.29% 58.85% 62.82%
Slippage Ratio 3.91% 3.29% 2.50% 1.00%
Efficiency Ratios
Cost to Income Ratio 47.22% 51.10% 47.82% 45.63%
Business per Employee (in INR mn) 147.93 148.92 156.69 168.29
Profit per Employee (in INR mn) 0.50 0.50 0.47 0.74
Valuation Ratios
P/E(x) 5.00 5.94 5.98 3.56
P/ABV (x) 0.67 0.93 0.77 0.61
Dividend Yield 4.16% 3.11% 3.53% 3.53%
4. 4
BFSI
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