The document provides an analysis and outlook of the Indian banking sector as of June 5th, 2012 by Witty Advisory. It discusses key parameters like earnings per share, price-to-earnings ratio, revised banking rates, ratio analysis terms, and an outlook on major banks. Overall, it finds the banking sector has been relatively insulated from the global financial crisis but notes signs of slowing economic growth. It provides performance metrics and commentary on several large banks and concludes with a short-term outperforming outlook for the sector overall in the long-term.

1. Banking Sector
(Published on 5th June 2012)
By
Witty Advisory
Outshining Vista

2.  Introduction
 Key Points
 Important Definitions
 Revised Banking Rates
 Ratio Analysis Terms
 More Parameters
 Outlook on Various Banks
 Statement
 Overall Outlook on a banking sector
 Long Term Prospects
 About Witty Advisory
6/5/2012 BANKING SECTOR OUTLOOK 2

3.  The global financial system is still far away from
a full recovery on account of a slowdown in the
US economy as well as the Euro debt crisis.
However, the Indian banking sector has been
relatively well shielded by the central bank and
has managed to sail through most of the crisis
with relative ease. But, with the economic
buoyancy the world over showing signs of
cooling off, the investment cycle has been
wavering in the country.
6/5/2012 BANKING SECTOR OUTLOOK 3

4.  Retail lending (especially mortgage financing) that
formed a significant portion of the portfolio for most
banks in the last two years lost some weightage on the
banks’ portfolios due to their risk weightage. However,
on the liabilities side, with better penetration in the semi
urban and rural areas, banks garnered a higher
proportion of low cost deposits thereby economizing on
the cost of funds. However, the RBI recently deregulated
the savings account deposit rate. However only a few
smaller private sector banks have increased their rates
while the others have maintained status quo.
6/5/2012 BANKING SECTOR OUTLOOK 4

5.  Supply Liquidity is controlled by the Reserve Bank of India
(RBI).
Demand India is a growing economy and demand for credit
is high though it could be cyclical.
Barriers to entry Licensing requirement, investment in
technology and branch network, capital requirements.
Bargaining power of suppliers High during periods of tight
liquidity. Trade unions in public sector banks can be anti
reforms. Depositors may invest elsewhere if interest rates fall.
6/5/2012 BANKING SECTOR OUTLOOK 5

6.  Bargaining power of customers For good creditworthy
borrowers bargaining power is high due to the
availability of large number of banks.
Competition High- There are public sector banks,
private sector and foreign banks along with non banking
finance companies competing in similar business
segments. Plus the RBI is planning to issue a few new
banking licenses.
6/5/2012 BANKING SECTOR OUTLOOK 6

7.  Bank Rate- This is the rate at which RBI lends money to
other banks (or financial institutions).
 Cash Reserve Ratio- Banks in India are required to
hold a certain proportion of their deposits in the form
of cash. However, actually Banks don’t hold these as
cash with themselves, but deposit such case with
Reserve Bank of India (RBI) .
 Statutory Liquidity Ratio (SLR)- This term is used by
bankers and indicates the minimum percentage of
deposits that the bank has to maintain in form of gold,
cash or other approved securities with themselves.
6/5/2012 BANKING SECTOR OUTLOOK 7

8.  Repo Rate under LAF- It is the rate at which the RBI lends
shot-term money to the banks against securities.
 Reverse Repo Rate under LAF-It is the rate at which banks
park their short-term excess liquidity with the RBI.
 Marginal Standing Facility (MSF)-Under this scheme,
Banks will be able to borrow up to 1% of their respective Net
Demand and Time Liabilities". The rate of interest on the
amount accessed from this facility will be 100 basis points
(i.e. 1%) above the Repo rate. This scheme is likely to
reduce volatility in the overnight rates and improve monetary
transmission.
6/5/2012 BANKING SECTOR OUTLOOK 8

9.  Bank Rate
 9.00%
 Cash Reserve Ratio (CRR)
 4.75%
 Statutory Liquidity Ratio (SLR)
 24%
 Repo Rate under LAF
 8.00%
 Reverse Repo Rate under LAF
 7.00%
 Marginal Standing Facility
 9.00%
6/5/2012 BANKING SECTOR OUTLOOK 9

10.  Earnings Per Share(EPS)- The portion of
a company's profit allocated to each
outstanding share of common
stock. Earnings per share serves as an
indicator of a company's profitability.
 Formula- Net Income-Dividend/Average
outstanding charges
6/5/2012 BANKING SECTOR OUTLOOK 10

11.  Price-to-Earnings ratio(P/E) -In stock
trading, it is the measure of the price paid
for a share relative to the annual net
income or profit earned by the firm per
share.
 Formula-Market Ratio Per Share/Earnings
Per Share
6/5/2012 BANKING SECTOR OUTLOOK 11

12.  Price/Cash flow ratio (also called price-
to-cash flow ratio or P/C)- It is a ratio
used to compare a company's market
value to its cash flow.
 Formula- Market Capital/Cash Flow
6/5/2012 BANKING SECTOR OUTLOOK 12

13.  Book Value- In accounting,It is the value
of an asset according to its balance sheet
account balance. For assets, the value is
based on the original cost of the asset
less any depreciation, amortization or
Impairment costs made against the asset.
6/5/2012 BANKING SECTOR OUTLOOK 13

14.  The Price-to-Book ratio(P/B ratio)- It is a
financial ratio used to compare a
company's book value to its current
market price.
 Formula- (1)-Market Cap/Book Value
(2)-CMP/Book Value Pr Share
6/5/2012 BANKING SECTOR OUTLOOK 14

15.  Dividend-They are the payments made by
a corporation to its shareholder members.
It is the portion of corporate profits paid
out to stockholders.
 It is generally calculated in terms of
percentage.
6/5/2012 BANKING SECTOR OUTLOOK 15

16.  Dividend Yield- It is the company's total
annual dividend payments divided by its
market capitalization, or the dividend per
share, divided by the price per share.
 It is often expressed as a percentage.
6/5/2012 BANKING SECTOR OUTLOOK 16

17. Results-
 Quarterly
 Half yearly
 Annual
Statements-
 Balance Sheet
 P&L
 Cash Flow
6/5/2012 BANKING SECTOR OUTLOOK 17

18. Shareholding
 Promoter's holding
 Institutional investors
 Private Corporate Bodies
 NRI's/OCB's/Foreign Others
 Government
NPA (Non Performing Assets)
6/5/2012 BANKING SECTOR OUTLOOK 18

19. Average
 EPS- 114.42
Average
 P/E- 18.49
 P/C- 16.38 Average
 BOOK VALUE (Rs.)- 968.97 Outstanding
 PRICE/BOOK- 2.18 Outstanding
 DIV (%)- 300.00 Good
 DIV YIELD (%)- 1.42 Average
 NPA- 4.44%
Poor
6/5/2012 BANKING SECTOR OUTLOOK 19

20.  Profit Margin-
Quarterly(Q4)- Increased
Half yearly- Increased
Annual- Decreased
 Promoter’s Holding remains the same.
 FII’s have increased.
 Other Investors have increased.
 Total Debt increased from last year.
6/5/2012 BANKING SECTOR OUTLOOK 20

21.  Dividend has increased from last year.
 Profit Before Tax has increased.
 Unsecured loans have increased.
 Depreciation has increased.
 Operating Profit has increased.
 NPA has decreased sharply.
6/5/2012 BANKING SECTOR OUTLOOK 21

22. Short Term-
Out Performer
Long Term-
Overweight
6/5/2012 BANKING SECTOR OUTLOOK 22

23. Poor
 EPS- 52.18
 P/E- 15.50 Average
 P/C- 15.09 Average
 BOOK VALUE (Rs.)- 477.88 Good
 PRICE/BOOK- 1.80 Outstanding
 DIV (%)- 140.00 Good
 DIV YIELD (%)- 1.63 Average
 NPA (%)- 0.73
Better
6/5/2012 BANKING SECTOR OUTLOOK 23

24.  Profit Margin-
Quarterly- Increased
Half yearly- Increased
Annual- Increased
 FII’s have increased.
 Other Investors have increased.
 Total Debt increased from last year.
6/5/2012 BANKING SECTOR OUTLOOK 24

25.  Dividend has increased from last year.
 Profit Before Tax has increased.
 Unsecured loans have increased.
 Depreciation has decreased.
 Operating Profit has increased.
 NPA has come down from 0.84% to 0.73%.
6/5/2012 BANKING SECTOR OUTLOOK 25

26. Short Term-
Out performer
Long Term-
Out performer
6/5/2012 BANKING SECTOR OUTLOOK 26

27. Average
 EPS- 96.44
 P/E- 11.62 Average
 P/C- 10.83 Average
 BOOK VALUE (Rs.)- 459.86 Good
 PRICE/BOOK- 2.44 Outstanding
 DIV (%)- 140.00% Good
 DIV YIELD (%)- 1.25%
Average
 NPA (%)- )- 0.3%
Poor
6/5/2012 BANKING SECTOR OUTLOOK 27

28.  Profit Margin-
Quarterly- Increased
Half yearly- Decreased
Annual- Decreased
 FII’s have increased.
 Other Investors have Decreased.
 Total Debt increased from last year.
6/5/2012 BANKING SECTOR OUTLOOK 28

29.  Dividend has decreased from last year.
 Profit After Tax has increased.
 Unsecured loans have increased.
 Depreciation has increased.
 Operating Profit has increased.
 NPA has increased.
6/5/2012 BANKING SECTOR OUTLOOK 29

30. Short Term-
Under performer
Long Term-
Neutral
6/5/2012 BANKING SECTOR OUTLOOK 30

31. Average
 EPS- 20.15
 P/E- 4.58 Outstanding
 P/C- 4.39 Outstanding
 BOOK VALUE (Rs.)- 99.29 Outstanding
 PRICE/BOOK- 0.93 Outstanding
 DIV (%)- 22.00% Good
 DIV YIELD (%)- 2.38%
Good
 NPA (%)- 1.15%
Better
6/5/2012 BANKING SECTOR OUTLOOK 31

32.  Profit Margin-
Quarterly- Increased
Half yearly- Decreased
Annual- Increased
 FII’s investment remain same.
 Other Investors have Increased.
 Total Debt Decreased from last year.
6/5/2012 BANKING SECTOR OUTLOOK 32

33.  Dividend has decreased from last year.
 Profit After Tax has increased.
 Unsecured loans have increased.
 Depreciation has increased.
 Operating Profit has increased.
 NPA has come down.
6/5/2012 BANKING SECTOR OUTLOOK 33

34. Short Term-
Out performer
Long Term-
Out performer
6/5/2012 BANKING SECTOR OUTLOOK 34

35.  EPS- 41.56 Average
 P/E- 10.00 Average
 P/C- 9.29 Average
 BOOK VALUE (Rs.)- 298.34 Good
 PRICE/BOOK- 1.39 Outstanding
 DIV (%)- 85.00 Good
 DIV YIELD (%)- 2.05 Good
 NPA (%)- 0.81%
Better
6/5/2012 BANKING SECTOR OUTLOOK 35

36.  Profit Margin-
Quarterly- Increased
Half yearly- Decreased
Annual- Increased
 FII’s investment has increased.
 Other Investors have Increased.
 Total Debt has increased from last year.
6/5/2012 BANKING SECTOR OUTLOOK 36

37.  Dividend has increased from last year.
 Profit After Tax has increased.
 Unsecured loans have increased.
 Depreciation has increased.
 Operating Profit has decreased.
 NPA has come down.
6/5/2012 BANKING SECTOR OUTLOOK 37

38. Short Term-
Out performer
Long Term-
Neutral
6/5/2012 BANKING SECTOR OUTLOOK 38

39.  EPS- 75.68 Average
 P/E- 5.77 Good
 P/C- 5.52 Good
 BOOK VALUE (Rs.)- 405.00 Good
 PRICE/BOOK- 1.08 Outstanding
 DIV (%)- 110.00 Good
 DIV YIELD (%)- 2.52
Good
 NPA (%)- 1.73%
Better
6/5/2012 BANKING SECTOR OUTLOOK 39

40.  Profit Margin-
Quarterly- Increased
Half yearly- Decreased
Annual- Increased
 FII’s investment has increased.
 Other Investors have Decreased.
 Total Debt has decreased from last year.
6/5/2012 BANKING SECTOR OUTLOOK 40

41.  Dividend has increased from last year.
 Profit After Tax has increased.
 Unsecured loans have increased.
 Depreciation has decreased.
 Operating Profit has increased.
 NPA has come down.
6/5/2012 BANKING SECTOR OUTLOOK 41

42. Short Term-
Out performer
Long Term-
Out performer
6/5/2012 BANKING SECTOR OUTLOOK 42

43.  EPS- 15.89 Average
 P/E- 6.49 Average
 P/C- 6.49 Average
 BOOK VALUE (Rs.)- 117.31 Outstanding
 PRICE/BOOK- 0.88 Outstanding
 DIV (%)- 15.00 Poor
 DIV YIELD (%)- 3.40 Good
 NPA (%)- 2.1% Poor
6/5/2012 BANKING SECTOR OUTLOOK 43

44.  Profit Margin-
Quarterly- Increased
Half yearly- Increased
Annual- Increased
 FII’s investment has decreased.
 Other Investors have Decreased.
 Total Debt has decreased from last year.
6/5/2012 BANKING SECTOR OUTLOOK 44

45.  Dividend has decreased from last year.
 Profit After Tax has increased.
 Unsecured loans have increased.
 Depreciation has increased.
 Operating Profit has increased.
 NPA has increased.
6/5/2012 BANKING SECTOR OUTLOOK 45

46. Short Term-
Out performer
Long Term-
Neutral
6/5/2012 BANKING SECTOR OUTLOOK 46

47. Average
 EPS- 38.61
 P/E- 9.20 Average
 P/C- 8.65 Average
 BOOK VALUE (Rs.)- 278.47 Outstanding
 PRICE/BOOK- 1.28 Outstanding
 DIV (%)- 70.00 Good
 DIV YIELD (%)- 1.97 Average
 NPA (%)- 1.47% Better
6/5/2012 BANKING SECTOR OUTLOOK 47

48.  Profit Margin-
Quarterly- Increased
Half yearly- Decreased
Annual- Increased
 FII’s investment has decreased.
 Other Investors have Decreased.
 Total Debt has increased from last year.
6/5/2012 BANKING SECTOR OUTLOOK 48

49.  Dividend has Increased from last year.
 Profit After Tax has increased.
 Unsecured loans have increased.
 Depreciation has increased.
 Operating Profit has increased.
 NPA has decreased from 1.78% to 1.47%.
6/5/2012 BANKING SECTOR OUTLOOK 49

50. Short Term-
Out performer
Long Term-
Neutral
6/5/2012 BANKING SECTOR OUTLOOK 50

51.  EPS- 22.02 Poor
 P/E- 24.67 Poor
 P/C- 24.67 Poor
 BOOK VALUE (Rs.)- 108.17 Average
 PRICE/BOOK- 5.02 Average
 DIV (%)- 215.00 Good
 DIV YIELD (%)- 0.61 Poor
 NPA (%)-0.2% Better
6/5/2012 BANKING SECTOR OUTLOOK 51

52.  Profit Margin-
Quarterly- Decreased
Half yearly- Increased
Annual- Decreased
 FII’s investment has decreased sharply.
 Other Investors have increased.
 Total Debt has increased from last year.
6/5/2012 BANKING SECTOR OUTLOOK 52

53.  Dividend has Increased from last year.
 Profit After Tax has increased.
 Unsecured loans have increased.
 Depreciation has increased.
 Operating Profit has increased.
 NPA has decreased.
6/5/2012 BANKING SECTOR OUTLOOK 53

54. Short Term-
Under performer
Long Term-
Under performer
6/5/2012 BANKING SECTOR OUTLOOK 54

55.  EPS- 17.15 Poor
 P/E- 19.07 Poor
 P/C- 19.07 Poor
 BOOK VALUE (Rs.)- 81.59 Average
 PRICE/BOOK- 4.01 Good
 DIV (%)- 22.00 Average
 DIV YIELD (%)- 0.61
Poor
 NPA (%)-0.29%
Better
6/5/2012 BANKING SECTOR OUTLOOK 55

56.  Profit Margin-
Quarterly- Increased
Half yearly- Increased
Annual- Decreased
 FII’s investment has increased.
 Other Investors have increased.
 Total Debt has decreased from last year.
6/5/2012 BANKING SECTOR OUTLOOK 56

57.  Dividend has Increased from last year.
 Profit After Tax has increased.
 Unsecured loans have increased.
 Depreciation has increased.
 Operating Profit has increased.
 NPA has decreased.
6/5/2012 BANKING SECTOR OUTLOOK 57

58. Short Term-
Neutral
Long Term-
Neutral
6/5/2012 BANKING SECTOR OUTLOOK 58

59.  EPS- 27.62 Poor
 P/E- 12.69 Poor
 P/C- 12.69 Poor
 BOOK VALUE (Rs.)- 107.46 Good
 PRICE/BOOK- 3.26 Outstanding
 DIV (%)- 40.00 Average
 DIV YIELD (%)- 0.71
Poor
 NPA (%)- 0.47
Better
6/5/2012 BANKING SECTOR OUTLOOK 59

60.  Profit Margin-
Quarterly (Q4)- Increased
Half yearly- Decreased
Annual- Decreased
 FII’s investment has increased.
 Other Investors have decreased.
 Total Debt has increased from last year.
6/5/2012 BANKING SECTOR OUTLOOK 60

61.  Dividend has Increased from last year.
 Profit After Tax has increased.
 Unsecured loans have increased.
 Depreciation has increased.
 Operating Profit has increased.
 NPA has remained the same.
6/5/2012 BANKING SECTOR OUTLOOK 61

62. Short Term-
Out performer
Long Term-
Underweight
6/5/2012 BANKING SECTOR OUTLOOK 62

63. Poor
 EPS- 29.27
 P/E- 7.66 Average
 P/C- 6.99 Average
 BOOK VALUE (Rs.)- 201.72 Outstanding
 PRICE/BOOK- 1.11 Outstanding
 DIV (%)- 80.00 Good
 DIV YIELD (%)- 3.57 Good
 NPA (%)-1.70% Better
6/5/2012 BANKING SECTOR OUTLOOK 63

64.  Profit Margin-
Quarterly - Decreased
Half yearly- Decreased
Annual- Decreased
 FII’s investment has Decreased.
 Other Investors have increased.
 Total Debt has decreased from last year.
6/5/2012 BANKING SECTOR OUTLOOK 64

65.  Dividend has Increased from last year.
 Profit After Tax has increased.
 Unsecured loans have increased.
 Depreciation has decreased.
 Operating Profit has decreased.
 NPA has decreased.
6/5/2012 BANKING SECTOR OUTLOOK 65

66. Short Term-
Under performer
Long Term-
Neutral
6/5/2012 BANKING SECTOR OUTLOOK 66

67.  EPS- 137.42 Good
 P/E- 6.16 Good
 P/C- 5.84 Good
 BOOK VALUE (Rs.)- 591.43 Outstanding
 PRICE/BOOK- 1.43 Outstanding
 DIV (%)- 220.00 Good
 DIV YIELD (%)- 2.60 Good
 NPA (%)-1.51 Poor
6/5/2012 BANKING SECTOR OUTLOOK 67

68.  Profit Margin-
Quarterly - Decreased
Half yearly- Decreased
Annual- Decreased
 FII’s investment has Decreased.
 Other Investors have decreased.
 Total Debt has increased from last year.
6/5/2012 BANKING SECTOR OUTLOOK 68

69.  Dividend has Increased from last year.
 Profit After Tax has increased.
 Unsecured loans have increased.
 Depreciation has increased.
 Operating Profit has increased.
 NPA has increased.
6/5/2012 BANKING SECTOR OUTLOOK 69

70. Short Term-
Neutral
Long Term-
Out performer
6/5/2012 BANKING SECTOR OUTLOOK 70

71.  EPS- 115.99 Good
 P/E- 6.62 Good
 P/C- 6.27 Good
 BOOK VALUE (Rs.)- 534.43 Outstanding
 PRICE/BOOK- 1.44
Outstanding
 DIV (%)- 165.00
Good
 DIV YIELD (%)- 2.15
 NPA (%)-0.51% Good
Better
6/5/2012 BANKING SECTOR OUTLOOK 71

72.  Profit Margin-
Quarterly - increased
Half yearly- Decreased
Annual- increased
 FII’s investment remains the same.
 Other Investors have remained the same.
 Total Debt has decreased from last year.
6/5/2012 BANKING SECTOR OUTLOOK 72

73.  Dividend has Increased from last year.
 Profit After Tax has increased.
 Unsecured loans have increased.
 Depreciation has increased.
 Operating Profit has increased.
 NPA has decreased.
6/5/2012 BANKING SECTOR OUTLOOK 73

74. Short Term-
Out performer
Long Term-
Out performer
6/5/2012 BANKING SECTOR OUTLOOK 74

75. Average
 EPS- 41.48
 P/E- 5.54 Good
 P/C- 5.15 Good
 BOOK VALUE (Rs.)- 349.97 Outstanding
 PRICE/BOOK- 0.66 Outstanding
 DIV (%)- 104.00 Good
 DIV YIELD (%)- 4.53 Excellent
 NPA (%)- 2.1%
Better
6/5/2012 BANKING SECTOR OUTLOOK 75

76.  Profit Margin-
Quarterly(Q4) – Decreased
Half yearly- Decreased
Annual- increased
 FII’s investment increased.
 Other Investors have increased.
 Total Debt has decreased from last year.
6/5/2012 BANKING SECTOR OUTLOOK 76

77.  Dividend has Increased from last year.
 Profit After Tax has increased.
 Unsecured loans have increased.
 Depreciation has increased.
 Operating Profit has increased.
 NPA has decreased.
6/5/2012 BANKING SECTOR OUTLOOK 77

78. Short Term-
Neutral
Long Term-
Out performer
6/5/2012 BANKING SECTOR OUTLOOK 78

79.  EPS- 34.48 Average
 P/E- 4.87 Good
 P/C- 4.69 Good
 BOOK VALUE (Rs.)- 153.33 Excellent
 PRICE/BOOK- 1.09 Outstanding
 DIV (%)- 60.00
Good
 DIV YIELD (%)- 3.58
Good
 NPA (%)- 1.77%
Better
6/5/2012 BANKING SECTOR OUTLOOK 79

80.  Profit Margin-
Quarterly – increased
Half yearly- increased
Annual- Decreased
 FII’s investment decreased.
 Other Investors have decreased.
 Total Debt has decreased from last year.
6/5/2012 BANKING SECTOR OUTLOOK 80

81.  Dividend has Increased from last year.
 Profit After Tax has decreased.
 Unsecured loans have increased.
 Depreciation has decreased.
 Operating Profit has decreased.
 NPA has decreased.
6/5/2012 BANKING SECTOR OUTLOOK 81

82. Short Term-
Neutral
Long Term-
Out performer
6/5/2012 BANKING SECTOR OUTLOOK 82

83. Poor
 EPS- 7.25
 P/E- 7.53 Poor
 P/C- 6.50 Poor
 BOOK VALUE (Rs.)- 51.68 Excellent
 PRICE/BOOK- 1.06 Outstanding
 DIV (%)- 20.00 Average
 DIV YIELD (%)- 3.66 Good
 NPA (%)- 2.2% Better
6/5/2012 BANKING SECTOR OUTLOOK 83

84.  Profit Margin-
Quarterly – increased
Half yearly- increased
Annual- Decreased
 FII’s investment increased.
 Other Investors have decreased.
 Total Debt has decreased from last year.
6/5/2012 BANKING SECTOR OUTLOOK 84

85.  Dividend has remained the same.
 Profit After Tax has decreased.
 Unsecured loans have increased.
 Depreciation has decreased.
 Operating Profit has decreased.
 NPA has decreased.
6/5/2012 BANKING SECTOR OUTLOOK 85

86. Short Term-
Neutral
Long Term-
Under performer
6/5/2012 BANKING SECTOR OUTLOOK 86

87.  EPS- 11.99 Average
 P/E- 7.31 Average
 P/C- 6.59 Average
 BOOK VALUE (Rs)- 104.68 Excellent
 PRICE/BOOK- 0.84 Outstanding
 DIV (%)- 50.00 Good
 DIV YIELD (%)- 5.70
Outstanding
 NPA (%)- 1.33%
Better
6/5/2012 BANKING SECTOR OUTLOOK 87

88.  Profit Margin-
Quarterly – Decreased
Half yearly- Decreased
Annual- increased
 FII’s investment decreased.
 Other Investors have decreased.
 Total Debt has increased from last year.
6/5/2012 BANKING SECTOR OUTLOOK 88

89.  Dividend has increased.
 Profit After Tax has increased.
 Unsecured loans have increased.
 Depreciation has decreased.
 Operating Profit has increased.
 NPA has decreased.
6/5/2012 BANKING SECTOR OUTLOOK 89

90. Short Term-
Under performer
Long Term-
Neutral
6/5/2012 BANKING SECTOR OUTLOOK 90

91. Average
 EPS- 23.55
 P/E- 5.06 Average
 P/C- 4.68 Good
 BOOK VALUE (Rs)- 116.02 Outstanding
 PRICE/BOOK- 1.03 Outstanding
 DIV (%)- 55.00 Good
 DIV YIELD (%)- 4.62 Excellent
 NPA (%)- 1.48%
Better
6/5/2012 BANKING SECTOR OUTLOOK 91

92.  Profit Margin-
Quarterly – Decreased
Half yearly- Decreased
Annual- increased
 FII’s investment decreased.
 Other Investors have decreased.
 Total Debt has increased from last year.
6/5/2012 BANKING SECTOR OUTLOOK 92

93.  Dividend has increased.
 Profit After Tax has increased.
 Unsecured loans have increased.
 Depreciation has decreased.
 Operating Profit has increased.
 NPA has increased from last quarter.
6/5/2012 BANKING SECTOR OUTLOOK 93

94. Short Term-
Under performer
Long Term-
Neutral
6/5/2012 BANKING SECTOR OUTLOOK 94

95.  EPS- 42.82 Average
 P/E- 5.20 Good
 P/C- 5.00 Good
 BOOK VALUE (Rs)- 184.44 Excellent
 PRICE/BOOK- 1.21 Outstanding
 DIV (%)- 75.00 Good
 DIV YIELD (%)- 3.37
Good
 NPA (%)- 2.4%
Poor
6/5/2012 BANKING SECTOR OUTLOOK 95

96.  Profit Margin-
Quarterly – increased
Half yearly- Decreased
Annual- Decreased
 FII’s investment increased.
 Other Investors have decreased.
 Total Debt has increased from last year.
6/5/2012 BANKING SECTOR OUTLOOK 96

97.  Dividend has increased.
 Profit After Tax has increased.
 Unsecured loans have increased.
 Depreciation has decreased.
 Operating Profit has increased.
 NPA has increased from last quarter.
6/5/2012 BANKING SECTOR OUTLOOK 97

98. Short Term-
Neutral
Long Term-
Out performer
6/5/2012 BANKING SECTOR OUTLOOK 98

99.  EPS- 16.27 Average
 P/E- 4.75 Good
 P/C- 4.42 Good
 BOOK VALUE (Rs)- 77.97 Outstanding
 PRICE/BOOK- 0.99 Outstanding
 DIV (%)- 30.00
Good
 DIV YIELD (%)- 3.88
Good
 NPA (%)- 3.49%
Poor
6/5/2012 BANKING SECTOR OUTLOOK 99

100.  Profit Margin-
Quarterly – increased
Half yearly- Decreased
Annual- Decreased
 FII’s investment increased.
 Other Investors have decreased.
 Total Debt has decreased from last year.
6/5/2012 BANKING SECTOR OUTLOOK 100

101.  Dividend has increased.
 Profit After Tax has decreased.
 Unsecured loans have increased.
 Depreciation has increased.
 Operating Profit has increased.
 NPA has increased from last quarter.
6/5/2012 BANKING SECTOR OUTLOOK 101

102. Short Term-
Neutral
Long Term-
Out performer
6/5/2012 BANKING SECTOR OUTLOOK 102

103.  EPS- 18.52 Average
 P/E- 3.86 Good
 P/C- 3.63 Good
 BOOK VALUE (Rs)- 154.33 Good
 PRICE/BOOK- 0.46 Outstanding
 DIV (%)- 20.00 Good
 DIV YIELD (%)- 2.80
Good
 NPA (%)- 0.63%
Better
6/5/2012 BANKING SECTOR OUTLOOK 103

104.  Profit Margin-
Quarterly – Decreased
Half yearly- Decreased
Annual- Decreased
 FII’s investment Decreased.
 Other Investors have remained the same.
 Total Debt has decreased from last year.
6/5/2012 BANKING SECTOR OUTLOOK 104

105.  Dividend has increased.
 Profit After Tax has decreased.
 Unsecured loans have increased.
 Depreciation has increased.
 Operating Profit has increased.
 NPA has decreased.
6/5/2012 BANKING SECTOR OUTLOOK 105

106. Short Term-
Under performer
Long Term-
Neutral
6/5/2012 BANKING SECTOR OUTLOOK 106

107.  EPS- 21.48 Average
 P/E- 4.83 Good
 P/C- 4.57 Good
 BOOK VALUE (Rs)- 111.07 Good
 PRICE/BOOK- 0.93 Outstanding
 DIV (%)- 37.00 Good
 DIV YIELD (%)- 3.58
Good
 NPA (%)- 1.1%
Better
6/5/2012 BANKING SECTOR OUTLOOK 107

108.  Profit Margin-
Quarterly – increased
Half yearly- increased
Annual- increased
 FII’s investment increased.
 Other Investors have decreased.
 Total Debt has decreased from last year.
6/5/2012 BANKING SECTOR OUTLOOK 108

109.  Dividend has increased.
 Profit After Tax has increased.
 Unsecured loans have increased.
 Depreciation has decreased.
 Operating Profit has increased.
 NPA has decreased.
6/5/2012 BANKING SECTOR OUTLOOK 109

110. Short Term-
Neutral
Long Term-
Out performer
6/5/2012 BANKING SECTOR OUTLOOK 110

111.  EPS- 10.47 Average
 P/E- 8.98 Poor
 P/C- 7.78 Poor
 BOOK VALUE (Rs)- 94.42 Good
 PRICE/BOOK- 1.00 Outstanding
 DIV (%)- 25.00 Average
 DIV YIELD (%)- 2.66 Good
 NPA (%)- 1.37% Poor
6/5/2012 BANKING SECTOR OUTLOOK 111

112.  Profit Margin-
Quarterly – decreased
Half yearly- decreased
Annual- decreased
 FII’s investment increased.
 Other Investors have decreased.
 Total Debt has decreased from last year.
6/5/2012 BANKING SECTOR OUTLOOK 112

113.  Dividend has increased.
 Profit After Tax has increased.
 Unsecured loans have increased.
 Depreciation has increased.
 Operating Profit has increased.
 NPA has increased from last quarter.
6/5/2012 BANKING SECTOR OUTLOOK 113

114. Short Term-
Under performer
Long Term-
Neutral
6/5/2012 BANKING SECTOR OUTLOOK 114

115.  EPS- 2.29 Poor
 P/E- 18.25 Poor
 P/C- 18.25 Poor
 BOOK VALUE (Rs)- 27.34 Good
 PRICE/BOOK- 1.53 Good
 DIV (%)- 0.00 Blank
 DIV YIELD (%)- 0.00
Blank
 NPA (%)- 0.57%
Better
6/5/2012 BANKING SECTOR OUTLOOK 115

116.  Profit Margin-
Quarterly – increased
Half yearly- increased
Annual- increased
 FII’s investment increased.
 Other Investors have increased.
 Total Debt has increased from last year.
6/5/2012 BANKING SECTOR OUTLOOK 116

117.  Dividend has increased.
 Profit After Tax has increased.
 Unsecured loans have increased.
 Depreciation has decreased.
 Operating Profit has decreased.
 NPA has decreased.
6/5/2012 BANKING SECTOR OUTLOOK 117

118. Short Term-
Neutral
Long Term-
Neutral
6/5/2012 BANKING SECTOR OUTLOOK 118

119.  EPS- 3.19 Poor
 P/E- 7.26 Poor
 P/C- 6.83
Poor
 BOOK VALUE (Rs)- 14.96
Good
 PRICE/BOOK- 1.55
Good
 DIV (%)- 50.00
 DIV YIELD (%)- 2.16 Good
 NPA (%)- 0.25% Good
Better
6/5/2012 BANKING SECTOR OUTLOOK 119

120.  Profit Margin-
Quarterly – increased
Half yearly- increased
Annual- decreased
 FII’s investment increased.
 Other Investors have increased.
 Total Debt has decreased.
6/5/2012 BANKING SECTOR OUTLOOK 120

121.  Dividend has increased.
 Profit After Tax has increased.
 Unsecured loans have increased.
 Depreciation has increased.
 Operating Profit has decreased.
 NPA has increased.
6/5/2012 BANKING SECTOR OUTLOOK 121

122. Short Term-
Neutral
Long Term-
Under performer
6/5/2012 BANKING SECTOR OUTLOOK 122

123.  EPS- 14.65 Poor
 P/E- 37.01 Poor
 P/C- 35.39 Poor
 BOOK VALUE (Rs)- 92.27 Average
 PRICE/BOOK- 5.88 Average
 DIV (%)- 10.00
Average
 DIV YIELD (%)- 0.09
Poor
 NPA (%)- 0.72%
Better
6/5/2012 BANKING SECTOR OUTLOOK 123

124.  Profit Margin-
Quarterly – decreased
Half yearly- decreased
Annual- increased
 FII’s investment increased.
 Other Investors have decreased.
 Total Debt has decreased from last year.
6/5/2012 BANKING SECTOR OUTLOOK 124

125.  Dividend is poor.
 Profit After Tax has increased.
 Unsecured loans have increased.
 Depreciation has increased.
 Operating Profit has increased.
 NPA has decreased.
6/5/2012 BANKING SECTOR OUTLOOK 125

126. Short Term-
Neutral
Long Term-
Under performer
6/5/2012 BANKING SECTOR OUTLOOK 126

127.  EPS- 6.87 Average
 P/E- 6.77 Average
 P/C- 6.87 Average
 BOOK VALUE (Rs)-24.67 Good
 PRICE/BOOK- 1.88 Outstanding
 DIV (%)- 85.00 Good
 DIV YIELD (%)- 1.83 Average
 NPA (%)- 0.44% Better
6/5/2012 BANKING SECTOR OUTLOOK 127

128.  Profit Margin-
Quarterly – decreased
Half yearly- decreased
Annual- decreased
 FII’s investment increased.
 Other Investors have increased.
 Total Debt has increased from last year.
6/5/2012 BANKING SECTOR OUTLOOK 128

129.  Dividend is good.
 Profit After Tax has increased.
 Unsecured loans have increased.
 Depreciation has increased.
 Operating Profit has increased.
 NPA has come down.
6/5/2012 BANKING SECTOR OUTLOOK 129

130. Short Term-
Neutral
Long Term-
Overweight
6/5/2012 BANKING SECTOR OUTLOOK 130

131.  The banking sector is under a tremendous pressure
due to bad Non Performing Assets(NPA’s).
 The Inflation is another big factor which is pulling
the banking sector down.
 The government is in a fix between controlling the
inflation and increasing the industrial output
because recent IIP nos. showed a great downfall of
industrial growth.
 The rating agencies downgrading the banks are
creating further negativity in the market.
.
6/5/2012 BANKING SECTOR OUTLOOK 131

132.  The global cues are affecting the Indian market in a
big way.
 The strengthening of Dollar against Rupee is
making the Indian economy fall and deviating the
fiscal deficit target as proposed by FM.
 THE GAAR problems have postponed for an year,
now it will be implemented in FY14 which is a good
news for the banking sector as now FII’s would start
entering into the market more often than not.
6/5/2012 BANKING SECTOR OUTLOOK 132

133.  Although the banking sector is burning with
pressure but still the RBI is making a clear effort of
increasing the cash flow in the market as recently it
has surprised the market by reducing the Repo and
Reverse Repo rate by 50 bps.
 The IIP nos. have forced the government to take this
very step despite of huge Inflation rate.
 The inflation nos. have shown some improvement
recently so that would definitely encourage RBI to
reduce rates further especially CRR.
6/5/2012 BANKING SECTOR OUTLOOK 133

134.  Our outlook is positive for banking sector in
the long run.
 We expect further cuts in the rates by RBI.
 Expect some new policies to be implemented
by the government which would enhance the
cash flow in the country.
 Banks are improving with their NPA nos.
which is a good sign for the sector.
6/5/2012 BANKING SECTOR OUTLOOK 134

135.  Investing in stock market has long been an exciting and
able way to build wealth and nurture investments.
Everyday thousands of companies offer shares for sale
on national and international exchanges. But there are
some mental loopholes which have derailed their
investments. Research, Patience, Advice, Timings, Trust
are all factors being successful with investing in
companies existed on stock exchanges. We at Witty
Advisory offer wise stock tips solution to help you
become an expert investor.
6/5/2012 BANKING SECTOR OUTLOOK 135

136.  Advantages -
• Customers-
Our greatest Assets.
• Our Team-
From every corner of the world, Diversity of backgrounds share their
experience,
skill to nurture our clients
• Professionalism-
We never treat our customers as friends because that would abolish our
strength as
Witty Advisory .
• Commitment-
To provide service, par extrovert to nurture the inner strength of
investors.
6/5/2012 BANKING SECTOR OUTLOOK 136

137. • Vision -
Our vision serves as the framework for our guidebook and directs every
aspect of our business by
describing what we need to accomplish in order to continue achieving
sustainable, Quality growth
Target -
To access the whole market within our reach. Our Working Moto -
Be close to your friends but be closer to your enemies. Mission -
Our guide map for success starts with our mission which is Outshining
Vista.
6/5/2012 BANKING SECTOR OUTLOOK 137

138.  Outshining Vista -
To cross the boundaries of sphere of Views and
Ideas.
 We Ensure -
• Feeling of optimism.
• Scope of accomplishment.
• Transcending perceptions.
6/5/2012 BANKING SECTOR OUTLOOK 138

139. All reasonable care has been taken to ensure the information contained here is not
misleading and untrue all the time of publication.
However we make no log standing commitment as to its accuracy or completeness.
You agree and understand that the information and material contained in this website
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Users are advised to use the data for the purpose of information only and rely on their
own judgments while making investment decisions. The investments discussed or
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Witty Advisory is not responsible for the content of any of the linked sites. By providing
access for other websites, Witty Advisory is neither recommending nor endorsing the
content of the linked websites.
6/5/2012 BANKING SECTOR OUTLOOK 139

140. Each member of the team involved in the
preparation of the grading report, hereby
affirms that there exists no conflict of interest
that can bias the grading recommendation of
the company.
The team is not liable for any mishap on the
part of Witty Advisory.
6/5/2012 BANKING SECTOR OUTLOOK 140

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6/5/2012 BANKING SECTOR OUTLOOK 141