Syndicate Bank - Moneycontrol.com

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
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