Syndicate Bank - Moneycontrol.com

Banking / Annual Report Analysis
India Research
Syndicate Bank
DOLAT CAPITAL
CMP: ` 104 Target Price: ` 152 Buy
BSE Sensex 17,233
NSE Nifty 5,235
Scrip Details
Equity ` 6,020mn
Face Value ` 10/-
Market Cap ` 62.6bn
USD 1.1bn
52 week High/Low ` 125 / 67
Avg. Volume (no) 638,392
BSE Code 532276
NSE Symbol SYNDIBANK
Bloomberg Code SNDB IN
Reuters Code SBNK.BO
Shareholding Pattern as on June’12(%)
Promoter 66.17
MF/Banks/FIs 17.75
FIIs 3.68
Public / Others 12.40
Syndicate Bank relative to Bank Nifty
115
110
105
100
95
90
85
80
Jul-11
Sep-11
Financials
Nov-11
Jan-12
Mar-12
May-12
Jul-12
Syndicate Bank Bank Nifty
Followings are key observations in Syndicate Bank’s financial
performance:
� Improvement in liability profile: In FY12, Syndicate Bank recorded
substantial improvement on deposit profile; whole-sale deposits & CDs
proportion declined by 470bps to 21% from 26% a year back and core retail
deposits increased by almost 430bps to 69%
� Prudent & measured credit book expansion : In FY12, the bank grew its
credit book slower than the industry at 15.8% compared to 17.5% of the
industry with taking higher amount collaterals. On maturity profile front, the
bank’s credit portfolio average maturity remained almost same with 33% of
credit book in less than 1 year maturity buckets. The bank reduced its
concentration risk of credit portfolio & exposure reflecting into lesser
concentration in top twenty loan accounts and borrowers
� Rating of credit book: Syndicate Bank’s proportion of unrated credit book
slightly increased to 53% from 51% a year back and share of unrated credit
book (with more 100% risk weight) remained almost constant at 5.9%
� Margin and assets’ risk weights: On margin front, the bank managed to
maintain margin even in a difficult scenario mainly on the back of stability on
low-cost deposits share with decrease in bulk deposit proportion on liability
side and marginal increase in exposure to riskier assets. Also, higher
proportion of investments diverted towards longer tenure papers aiding yield
on the book. The bank’s RWAs/assets ratio increased to 53.6% from 51% a
year back aiding asset yield. The bank’s margin improved by 4bps to 3.06%
� Revamp of core fee Income: Non-fund revenue stream was robust with
strong core fee income at ` 5.5bn. The incumbent CMD believes that there
is a scope to further strengthen fee income with existing infrastructure
� Asset quality under control: In detailed classification of GNPA, proportion
of sub-standard loans went up sharply to 61% from 44% in FY11. On the
fresh restructuring 1front, the bank added ` 31.5bn. Major areas of loan
restructuring were agriculture, MSME, CRE and large industries. Out of total
loan restructured, ` 11bn came from Air India account alone
� Steady expansion in foot-prints: The bank added 214 branches in FY12
compared to 186 in FY11 and even in lackluster scenario during FY12, the
bank maintained its pace in customer base expansion which aided core
deposits mobilisation
Overall, we maintain our positive stance on the stock and estimate that the
bank would report RoAA of ~0.8% and RoAE of 16-18% in FY13-14. We reiterate
our stock rating to Buy with a price target of ` 152. At current price, it quotes at
0.7x and 0.6x ABV FY13 and FY14 respectively; based on our target price, the
stock would trade at 0.9x adjusted book value FY14. The stock is available at
an attractive dividend yield of 4.6% (on FY13’s dividend).
Year NII PPP NP NIM (%) BV (`) ABV (`) RoAA (%) RoAE (%) P/B (x) P/ABV (x) P/E (x)
FY11 43,828 27,498 10,479 3.0 116 101 0.7 17.6 0.9 1.0 5.2
FY12 50,850 33,468 13,134 3.1 133 115 0.8 17.9 0.8 0.9 4.8
FY13E 57,746 37,926 16,652 3.0 167 147 0.8 18.4 0.6 0.7 3.8
FY14E 66,791 42,807 17,807 3.0 190 169 0.8 16.6 0.5 0.6 3.5
Figures in ` mn
Sr. Analyst: Rakesh Kumar Associate: Hetal Shah
Tel : +9122 4096 9750
E-mail: rakesh@dolatcapital.com
Tel : +9122 4096 9725
E-mail: hetals@dolatcapital.com
July 13, 2012

India Research
DOLAT CAPITAL
� Branch expansion: Syndicate Bank added 214 branches in FY12 compared
to 186 in FY11. In FY12, most of the branch addition took place in rural & semiurban
areas towards fulfillment of RBI’s guidelines on financial inclusion. During
the year, 68 branches were opened in under-banked areas and 44 branches
were added in minority concentration districts. In FY12, the bank reached the
financial inclusion target. Like-wise in FY11, out of 188 fresh branches additions,
the bank opened 76 branches in under-banked areas and 36 branches in minority
concentrated districts. In FY13, the bank’s management is planning to add
another 300 branches reach at 3000 mark; Syndicate bank would also add
almost 500 ATMs to take the total to 1750.
Chart 1: Syndicate Bank’s Branch profile
Source : Company, Dolat Research
Branch network FY10 FY11 FY12
Rural 666 803 873
Semi-urban 552 589 672
Urban 541 551 584
Metro & Port Town 548 550 566
Ultra Small - - 14
Overseas 1 1 1
Total 2,308 2,494 2,710
% to Total FY10 FY11 FY12
Rural 28.9 32.2 32.2
Semi-urban 23.9 23.6 24.8
Urban 23.4 22.1 21.5
Metro & Port Town 23.7 22.1 20.9
Ultra Small - - 0.5
� Steady expansion of customer base: The bank’s customer base enlarged to
28.4mn from 26.4mn a year back registering a growth of 7.6%. In FY11, the
bank maintained similar pace of 7.7%. Even in lackluster scenario during FY12,
the bank maintained its customer base expansion pace. The bank’s credit card
base increased by 13% YoY to 80125.
July 13, 2012 Syndicate Bank
2

India Research
Chart 2: Syndicate Bank’s Customer base
Source : Company, Dolat Research
DOLAT CAPITAL
� Improvement in deposit franchise: During FY12, the bank recorded substantial
improvement on deposit profile; whole-sale deposits & CDs proportion declined
by 470bps to 21% from 26% a year back and core retail deposits increased by
almost 430bps to 69%. The bank’s total whole-sale deposits came down by
4.7% YoY to ` 335bn whereas total core deposits increased by 24% YoY to `
1.1tn. The bank’s CASA deposit share drifted down by 130bps to 29.4% mainly
due to tepid mobilization of saving deposits.
Chart 3: Syndicate Bank’s CASA & Whole-sale Deposit share (%)
Source : Company, Dolat Research
The bank’s deposit concentration (deposits of twenty largest depositors) marginally
increased to 14.8% from 14.6% a year back. Average maturity profile of also remained
almost the same at 1.24 years with 54% of deposits in up to 1 year maturity
buckets compared to 52% of deposits in FY11.
On the front of other liabilities, the bank did not raise any tier I or tier II capitals in
FY12; other unsecured borrowings increased in-line with balance-sheet expansion
pace. During the year, the bank raised equity capital of ` 3.3bn at 104 per share.
July 13, 2012 Syndicate Bank
3

India Research
Chart 4: Syndicate Bank’s Capital Adequacy
Source : Company, Dolat Research
DOLAT CAPITAL
� Change in headcount and employees composition: Over the period,
proportion of officers has been increasing. Also, with CBS system in place and
operational though not at optimum level, over a period of time going ahead,
proportion of clerks & sub-staff should come down. In FY12, total headcount
came down by 5.6% to 26,904.
Particulars FY07 FY08 FY09 FY10 FY11 FY12
Officers 9,520 9,498 9,966 10,944 11,512 10,829
Clerks 11,192 11,355 11,274 10,766 11,074 10,221
Sub-staffs 3,648 3,803 3,828 3,859 3,702 5,854
Part-time Sweepers 1,600 1,981 2,053 2,144 2,221 -
Total 25,960 26,637 27,121 27,713 28,509 26,904
Increase (%) 2.6 1.8 2.2 2.9 (5.6)
� Credit composition likely to tilt in favor of retail, MSME and agriculture:
In FY12, with respect to tenure of credit book, the bank’s credit composition
increased in favor of term loans to 80% from 77% in FY11. In terms of security
available for the credit book, proportion of secured loans increased to 67% from
62%. Also, exposure to public sector entities came down but on sensitive
exposure front, exposure to commercial real estate (CRE) increased substantially
to 4.4% from 2.5% in FY11. The increased exposure to CRE is backed by lease
rentals.Essentially, in FY12, Syndicate Bank grew its credit book slower than
the industry with taking higher amount collaterals.
On maturity profile front, the bank’s credit portfolio average maturity remained
almost same with 33% of credit book in upto 1 year maturity buckets as compared
to 32% in FY11. The bank’s cumulative domestic asset-liability mismatch (for
maturity buckets up to 1 year) increased to 28% from 23% of total deposits in
FY11. Shorter end of liabilities funded longer-term investment papers.
On credit portfolio & exposure concentration issues, the bank de-risked its
credit portfolio & exposure reflecting into lesser concentration in top twenty loan
accounts and borrowers. Though, concentration of NPA jumped to 23.4% from
8.0% in FY11. The sharp rise was mainly due to addition of two loan accounts
in Q4 FY12.
On credit book front, the bank’s key focus areas remain on retail banking
(particularly Housing loans), MSME and Agriculture. In an effort to enhance
advances yield, the bank would focus more on MSME, agriculture and some of
the retail segments. More credit disbursement would be done at RO/branch
level.
July 13, 2012 Syndicate Bank
4

India Research
Credit Mix:
DOLAT CAPITAL
(` mn) FY09 FY10 FY11 FY12 Gr. (FY11-12) Cagr (FY10-12)
Priority Sector 273,640 327,130 366,110 413,830 13.0 12.5
SME 68,650 110,060 132,440 147,360 11.3 15.7
Micro & Small Enterprises 56,920 97,416 119,110 133,600 12.2 17.1
Agriculture 107,690 131,350 147,460 174,090 18.1 15.1
Domestic Retail 177,950 200,178 226,631 247,250 9.1 11.1
Housing Loans 66,140 73,044 81,200 84,240 3.7 7.4
Total Dom. Credit 732,031 815,570 959,763 1,089,872 13.6 15.6
% to Total Dom. Credit FY09 FY10 FY11 FY12
Priority Sector 37.4 40.1 38.1 38.0
SME 9.4 13.5 13.8 13.5
Micro & Small Enterprises 7.8 11.9 12.4 12.3
Agriculture 14.7 16.1 15.4 16.0
Domestic Retail 24.3 24.5 23.6 22.7
Housing Loans 9.0 9.0 8.5 7.7
� Investment portfolio composition changing in favor of G-Sec bonds: In
FY12, the bank’s G-Sec investment share increased; SLR securities composition
increased to 90% from 86.8% in FY11. Also, higher proportion of investments
diverted towards longer tenure papers aiding yield on the book. Most of incremental
investments were added in HTM category. On N-SLR book (accounts for 10% of
total investment book) front, investments in unlisted securities, unrated securities
& below investment securities have collectively went up to 5.9% (of total N-SLR
investments) from 4.9% in FY11.
Break-up of Investment book (INR mn) Mar-11 Mar-12
HTM 277757 352661
% to Net Investments 79.1 86.3
AFS 73349 56194
% to Net Investments 20.9 13.7
HFT 0 1.2
% to Net Investments 0.0 0.0
Gross Investment 351106 408856
Depreciation & Provision for NPI 430 705
Net Investment 350676 408151
� Effective use and more emphasis on SARFAESI: In FY12, the bank made
effective use of SARFAESI by recovering ` 6.9bn against ` 2.7bn in previous
year. Overall, the bank recorded total NPA recovery of ` 11.4bn comprising `
8.4bn of recovery towards principal and ` 3.0bn towards uncharged interest and
` 23mn towards written-off bad debts accounts.
� Upward change in “salary increase/future cost” actuarial assumption:
The bank revised its “salary increase/future cost” actuarial assumption to 5%
per year from earlier 4% assumption. The revision also reflected into higher
present value of defined benefit obligation of pension, gratuity and privilege leaves
at ` 51.6bn from ` 48bn in previous year.
July 13, 2012 Syndicate Bank
5

India Research
Chart 5: Syndicate Bank’s Asset Quality
Source : Company, Dolat Research
DOLAT CAPITAL
� Higher incremental gross slippages and fresh restructuring: The bank
recorded fresh slippages of ` 31.6bn compared to ` 15.9bn; gross slippages o
increased to 2.7% from 1.6% in previous year.
Though, reduction also increased sharply containing rise in GNPA. Also, much
higher credit cost of 1.2% compared to 0.9% in FY11 and higher write offs
further reduced NNPA. Provision coverage (including write-offs) improved to 80%
from 77% a year back. Slippages from CBS-based automatic recognition of
NPLs and slippages from restructured loan book were at ` 11bn and ` 8.8bn
respectively. Close to 2/3 rd of total slippages came from these two events and
total slippage from restructured loan book was almost 16%.
In detailed classification of GNPA, proportion of sub-standard loans went up
sharply, even if we take into account expected up-gradation of two chunky loan
accounts (of ` 4.5bn), the share of sub-standard loans still looks higher. With
aging of GNPAs, NPA provisions would go up in FY13. On sector-wise stressed
loans, agriculture sector NPA increased to 2.9% from 2.0% a year back and
industry NPA came down 1.2% from 2.3% in FY11.
` Mn FY09 FY10 FY11 FY12
Substandard 5899 9554 11327 19281
Doubtful 1 5441 5684 8348 4014
Doubtful 2 4291 4563 5333 6533
Doubtful 3 149 102 162 889
Loss Assets 165 166 821 1110
Total NPAs 15945 20068 25990 31827
% to Total NPAs FY09 FY10 FY11 FY12
Substandard 37.0 47.6 43.6 60.6
Doubtful 1 34.1 28.3 32.1 12.6
Doubtful 2 26.9 22.7 20.5 20.5
Doubtful 3 0.9 0.5 0.6 2.8
Loss Assets 1.0 0.8 3.2 3.5
On the fresh restructuring front, the bank added ` 31.5bn (against ` 40bn in
FY11) and total reduction was ` 9.0bn. In FY12, sacrifice (NPV losses) on
restructured loan book was ` 1.2bn compared to 1.1bn in previous year. Major
areas of loan restructuring were agriculture, MSME, CRE and large industries.
Out of total loan restructured, ` 11bn came from Air India account.
July 13, 2012 Syndicate Bank
6

India Research
DOLAT CAPITAL
Sector/industry wise details of loan restructuring in FY-12
Category Jun-11 Sep-11 Dec-11 Mar-12
Agriculture 11,500 11,580 13,150 15,840
MSME 5110 5020 4770 11,680
Housing loan 2400 2260 2380 2400
Large Industries 10,240 10,060 10,160 9950
Commercial Real Estate 7630 6950 6690 4410
Personnel Banking Scheme 230 170 190 190
Retail Trade 790 790 780 760
Education 120 120 130 160
All other advances (Whole sale trade,
infrastructure, Govt. Sponsored,
Consumer loans, NBFCs etc.) 7660 12,030 11,410 23,630
Total 45,660 48,980 49,660 69,010
` Mn Jun-11 Sep-11 Dec-11 Mar-12
Outstanding at the beg. of the quarter 45280 45660 48980 49660
Addition during the quarter 2410 4850 4430 20920
Reduction during quarter 2030 1530 3750 1570
Balance at the end of the quarter 45660 48980 49660 69010
� Focus on fee income: The bank has planned to establish separate vertical at
corporate Office and regional Offices to accelerate marketing efforts to augment
fee based income. The incumbent CMD believes that there is a scope to further
strengthen fee income with existing infrastructure. There is emphasis (in terms
of increasing awareness of branch level employees) being put at branch level to
revamp fee-based income. Total Forex turnover increased by 13% YoY to `4.9tn
and income on foreign exchange transaction grew by 12.4% YoY. Recovery on
written-off accounts increased by 27% YoY to ` 1.0bn. Core fee income (CXB)
recorded growth of 25% YoY to ` 5.5bn. Income on the bancassurance business
in FY12 was moderate at ` 75mn compared to ` 70mn in previous year. Overall,
other income revenue stream was robust with strong core fee income.
Chart 6: Syndicate Bank’s Core Fee Income
Source : Company, Dolat Research
July 13, 2012 Syndicate Bank
7

India Research
Chart 7: Syndicate Bank’s margin, Risk-adjusted
margins (%)
Source : Company, Dolat Research
DOLAT CAPITAL
� Core interest income strengthen: The bank managed to maintain margin
even in a difficult scenario mainly on the back of stability on low-cost deposits
share with decrease in bulk deposit proportion on liability side and marginal
increase in exposure to riskier assets (reflecting into sharper increase in credit
risk). On liability side, the bank managed to contain rise in costs and on asset
front, it improved yields with credit portfolio rebalancing in favor of term loans
and high-yielding advances. The bank’s RWAs/assets ratio increased to 53.6%
from 51% a year back. The bank’s margin improved by 4bps to 3.06%.
Chart 8: Syndicate Bank’s cost of deposit and yields
(%)
� Rating & risk weight of credit book: Syndicate Bank’s proportion of unrated
credit book slightly increased to 53% from 51% a year back and share of unrated
credit book (with more 100% risk weight) remained almost constant at 5.9%.
July 13, 2012 Syndicate Bank
8

India Research
DOLAT CAPITAL
Valuation
Overall, we maintain our positive stance on the stock and estimate that the bank
would report RoAA of ~0.8% and RoAE of 16-18% in FY13-14. We reiterate our
stock rating to Buy with a target price of ` 152. At current price, it quotes at 0.7x
and 0.6x ABV FY13 and FY14 respectively; based on our target price, the stock
would trade at 0.9x adjusted book value FY14. The stock is available at an attractive
dividend yield of 4.6% (on FY13’s dividend).
Syndicate Bank’s DuPont’s Model FY09 FY10 FY11 FY12 FY13E FY14E
Total interest income earned 8.03 7.46 7.75 9.01 8.53 8.43
Other income 0.77 0.87 0.62 0.63 0.61 0.59
Commission, Exchange & Brokerage 0.23 0.27 0.30 0.33 0.34 0.31
Profit on sale of investment 0.16 0.29 0.02 0.05 0.02 0.01
Other fee income 0.38 0.31 0.30 0.26 0.25 0.27
Total interest expenses (5.88) (5.43) (4.78) (6.01) (5.60) (5.54)
NII 2.15 2.03 2.97 3.00 2.92 2.89
Pay to / Prov for Employees (0.94) (0.99) (1.20) (1.12) (1.07) (1.08)
Op.Exps & Admin Exps (0.57) (0.52) (0.52) (0.54) (0.55) (0.55)
Total Oper. Exps. (1.51) (1.51) (1.72) (1.66) (1.61) (1.63)
Provisions & Cont and Taxes (0.64) (0.79) (1.15) (1.20) (1.08) (1.08)
Prov for NPAs (0.38) (0.39) (0.63) (0.83) (0.70) (0.64)
Prov for income tax (0.09) (0.27) (0.16) (0.07) (0.16) (0.20)
Other Provisions (0.17) (0.13) (0.36) (0.31) (0.22) (0.24)
Net Profit (RoAA) 0.77 0.60 0.71 0.77 0.84 0.77
RoAE 21.58 16.57 17.64 17.88 18.44 16.57
July 13, 2012 Syndicate Bank
9

India Research
INCOME STATEMENT ` mn
Particulars Mar11 Mar12 Mar13E Mar14E
Net Interest Income 43,828 50,850 57,746 66,791
CXB 4,422 5,514 6,775 7,090
Profits on sale of investments 352 888 400 300
Profits on foreign exchange 979 1,166 1,310 1,511
Other operating income 3,398 3,192 3,565 4,827
Total other income 9,151 10,759 12,050 13,728
Total Income 52,979 61,609 69,796 80,519
Salaries 17,733 18,915 21,100 25,064
Other operating costs 7,748 9,226 10,770 12,648
Total Overheads 25,481 28,141 31,870 37,712
Profit before provisions 27,498 33,468 37,926 42,807
Bad Debt Provisions 9,290 13,997 13,855 14,782
Stnd. Asset Provision 246 2,628 2,546 3,465
Investment Provisions 387 385 650 700
Other provision 4,720 2,184 1,063 1,380
Total provisions 14,644 19,195 18,114 20,327
Profit before tax 12,854 14,273 19,812 22,480
Tax 2,375 1,139 3,160 4,673
Reported Net profit 10,479 13,134 16,652 17,807
BALANCE SHEET
Particulars Mar11 Mar12 Mar13E Mar14E
Cash with RBI 104,431 88,086 100,512 119,157
Cash at call 15,225 50,756 33,296 30,580
Total Cash 119,657 138,843 133,808 149,737
Govt. securities 303,025 365,005 413,049 476,020
Other investments 47,651 43,145 67,241 77,492
Total Investments 350,676 408,151 480,290 553,512
Bills discounted 15,093 12,860 29,092 34,477
Cash credit 229,677 235,229 320,017 379,249
Term loans 823,050 988,113 1,105,513 1,310,132
Total Credit 1,067,819 1,236,202 1,454,622 1,723,858
Gross Fixed Assets 13,478 20,753 16,597 17,710
Accumulated Depreciation 6,707 7,475 7,855 8,390
Net Fixed Assets 6,770 13,278 8,742 9,320
Capital work in progress 157 237 0 0
Other Assets 20,309 27,970 48,093 66,537
Total Assets 1,565,388 1,824,681 2,125,555 2,502,965
Demand Deposits 107,388 122,214 134,047 158,213
Savings Deposits 312,066 342,959 388,273 458,273
Term Deposits 936,507 1,114,238 1,326,600 1,565,767
Total Deposits 1,355,961 1,579,411 1,848,920 2,182,253
Perpetual Debts (IPDI) 7,730 7,730 11,730 14,230
Upper Tier II Capital 8,197 8,197 9,197 12,697
Subordinate Debt 19,250 19,250 20,750 22,500
Other Borrowings 60,099 70,722 80,520 97,883
Total Borrowings 95,276 105,899 122,197 147,310
Other liabilities 43,642 48,960 50,723 55,580
Equity 5,733 6,020 6,020 6,020
Reserves 64,776 84,392 97,696 111,802
Total Equity 70,508 90,412 103,715 117,822
Total Liab & Equity
E-estimates
1,565,388 1,824,681 2,125,555 2,502,965
IMPORTANT RATIOS
DOLAT CAPITAL
Particulars Mar11 Mar12 Mar13E Mar14E
DPS (`) 3.7 3.8 4.8 5.3
Book Value (`) 116.1 133.5 166.6 190.4
Adjusted Book Value (`) 101.5 115.4 147.5 169.3
EPS (`) 20.0 21.8 27.7 29.6
EPS Growth (%) 28.5 8.9 26.8 6.9
Payout (%) 18.5 17.4 17.2 17.7
Net interest margin (%) 3.0 3.1 3.0 3.0
Spread (%) 2.7 2.6 2.6 2.6
Cost-to-income (%) 48.1 45.7 45.7 46.8
ROAA
Net Interest Income 3.0 3.0 2.9 2.9
Other Income 0.6 0.6 0.6 0.6
Less Overheads (1.7) (1.7) (1.6) (1.6)
Less Provisions (1.0) (1.1) (0.9) (0.9)
Less Tax (0.2) (0.1) (0.2) (0.2)
ROAA 0.7 0.8 0.8 0.8
ROAE 17.6 17.9 18.4 16.6
Valuation
Price Earnings (x) 5.2 4.8 3.8 3.5
Price to Book Value (x) 0.9 0.8 0.6 0.5
Price to Adjusted BV (x) 1.0 0.9 0.7 0.6
Dividend Yield (%) 3.6 3.7 4.6 5.0
Asset Quality
Gross NPLs 25,990 31,827 36,910 42,529
Restructured standard Loans 45,285 60,620 98,000 112,110
Gross Impaired Loans 71,275 92,447 134,910 154,639
Net NPLs 10,308 11,854 13,662 16,062
Provision coverage ratio (%) 60.3 62.8 63.0 62.2
Gross NPLs (%) 2.4 2.5 2.5 2.4
Net NPLs (%) 1.0 1.0 0.9 0.9
Assumptions
Yield on Advances (%) 9.3 10.7 10.2 10.0
Yield on Investment (%) 6.5 7.2 6.8 6.8
Cost of Deposits (%) 4.9 6.4 6.1 6.0
Interest Inc. on Cash (%) 0.1 1.2 0.4 0.5
CRAR (%) 13.0 12.2 11.4 10.8
Growth in credit book (%) 18.1 15.8 17.7 18.5
Growth in Deposits (%) 15.9 16.5 17.1 18.0
Growth in Investments (%) 6.2 16.4 17.7 15.2
Gross slippages ratio (%) 1.6 2.7 2.5 2.5
Credit Cost (%)
E-estimates
0.9 1.2 1.0 0.9
July 13, 2012 Syndicate Bank
10

India Research
Intentionally Left Blank
DOLAT CAPITAL
July 13, 2012 Syndicate Bank
11

DOLAT CAPITAL
BUY Upside above 20%
ACCUMULATE Upside above 5% and up to 20%
REDUCE Upside of upto 5% or downside of upto 15%
SELL Downside of more than 15%
Analyst Sector/Industry/Coverage E-mail Tel.+91-2-4096 9700
Amit Khurana, CFA Director - Research amit@dolatcapital.com 91-22-40969745
Amit Purohit Consumer amitp@dolatcapital.com 91-22-40969724
Bhavin Shah Pharma & Agro Chem bhavin@dolatcapital.com 91-22-40969731
Mayur Milak Auto & Auto Ancillary mayurm@dolatcapital.com 91-22-40969749
Priyank Chandra Oil & Gas priyank@dolatcapital.com 91-22-40969737
Rahul Jain IT Services rahul@dolatcapital.com 91-22-40969754
Rakesh Kumar Financials rakesh@dolatcapital.com 91-22-40969750
Ram Modi Metals & Mining ram@dolatcapital.com 91-22-40969756
Nehal Shah Midcaps nehals@dolatcapital.com 91-22-40969753
Prachi Save Derivative Analyst prachi@dolatcapital.com 91-22-40969733
Associates Sector/Industry/Coverage E-mail Tel.+91-22-4096 9700
Dhaval S. Shah Engineering & Capital Goods dhaval@dolatcapital.com 91-22-40969726
Hardick Bora Pharma & Agro Chem hardickb@dolatcapital.com 91-22-40969748
Hetal Shah Financials hetals@dolatcapital.com 91-22-40969725
Mahvash Ariyanfar Economy & Midcaps mahvash@dolatcapital.com 91-22-40969736
Pranav Joshi Financials pranavj@dolatcapital.com 91-22-40969706
Equity Sales/Dealing Designation E-mail Tel.+91-22-4096 9797
Purvag Shah Principal purvag@dolatcapital.com 91-22-40969747
Janakiram Karra Director - Institutional Sales janakiram@dolatcapital.com 91-22-40969712
Vikram Babulkar Director - Institutional Sales vikram@dolatcapital.com 91-22-40969746
Kapil Yadav AVP - Institutional Sales kapil@dolatcapital.com 91-22-40969735
Parthiv Dalal AVP - Institutional Sales parthiv@dolatcapital.com 91-22-40969705
P. Sridhar Head Dealing - Equities sridhar@dolatcapital.com 91-22-40969728
Mihir Thaker Senior Sales Trader mihir@dolatcapital.com 91-22-40969727
Aadil R. Sethna Head of Derivatives aadil@dolatcapital.com 91-22-40969708
Chirag Makati Asst. Vice President - Derivatives chiragm@dolatcapital.com 91-22-40969703
Dolat Dolat Dolat Dolat Dolat Capital Market Pvt. Ltd.
20, Rajabahadur Mansion, 1st Floor, Ambalal Doshi Marg, Fort, Mumbai - 400 001
This report contains a compilation of publicly available information, internally developed data and other sources believed to be reliable. While
all reasonable care has been taken to ensure that the facts stated are accurate and the opinion given are fair and reasonable, we do not take
any responsibility for inaccuracy or omission of any information and will not be liable for any loss or damage of any kind suffered by use of
or reliance placed upon this information. For Pvt. Circulation & Research Purpose only.
Our Research reports are also available on Reuters, Thomson Publishers and Bloomberg (DCML )