andhra bank, 1q fy 2014

7/27/2019 Andhra Bank, 1Q FY 2014

1/11

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

Particulars ( ` cr) 1QFY14 4QFY13 % chg (qoq) 1QFY13 1QFY14

NII 874 953 (8.3) 938 (6.9)

Pre-prov. profit 746 714 4.6 703 6.1

PAT 231 345 (32.9) 362 (36.1) Source: Company, Angel Research

Andhra Bank reported a disappointing operating performance for the quarter,with NII de-growth of 6.9% yoy. Boosted by treasury gains of ` 286cr compared to ` 25cr in 1QFY2013, the non-interest income for the bank almost doubled on ayoy basis. Overall the operating profit grew at a subdued pace of 6.1% yoy. Onthe asset quality front, stress continued as Gross and Net NPA levels increasedsequentially by 27.8% and 33.3% respectively. Consequently, the provisioning forthe bank increased by 86.3% yoy, thereby resulting in earnings de-growth of36.1% yoy.

NIM declines sequentially; Asset quality faces persistent stress : During 1QFY2014,the bank witnessed a healthy growth in its business, as advances and depositsgrew by 16.0% and 16.8% yoy, respectively. Healthy advance growth was largely aided by strong growth in agri and SME book, which grew by 34.2% and 28.4%yoy respectively. CASA ratio declined by 267bp yoy and 163bp qoq to 24.0%.Reported NIM dipped by 34bp qoq to 2.7%, on account of 65bp sequential fall inyield on advances, which more than offset the 18bp qoq decline in cost ofdeposits. Non-interest income (excluding treasury) de-grew by 14.0% yoy, whichwas largely due to 4.5% yoy de-growth in CEB income and weak performance on

the recoveries front. The bank continued to witness asset quality pressures, asslippages came in at ` 1,180cr (annualized slippage ratio of 4.5%) as compared to ` 889cr (slippage rate of 4.3%) in 4QFY2013. Recoveries/upgrades came in lowerduring the quarter at ` 103cr compared to ` 349cr in 4QFY2013. The PCR dipped substantially by 455bp sequentially to 45.0%, amongst the lowest inthe industry. During the quarter, the bank also restructured advances worth ` 650cr, thereby taking its total restructured book to ` 9,846cr (9.8% of totaladvances). The Management has guided for advances worth ~ ` 3,300cr to be in therestructuring pipeline for 1QFY2014, which includes an advance of ~ ` 2,000cr to

AP SEB, ` 385cr to a private sector power player, and ` 135cr to a steel player.

Outlook and valuation: We believe that the asset quality pressures for the bankingsector are unlikely to abate as quickly as was expected earlier, considering the

recent macro developments amidst an overall weak macro environment.Moreover, the banks relatively high risk exposures, particularly to sectors likepower, iron and steel and textile, create risk of higher deterioration in asset quality over the next few quarters, in our view. Hence, we recommend Neutral rating onthe stock. Key financials (standalone)Y/E March ( ` cr) FY2012 FY2013 FY2014E FY2015ENII 3,759 3,757 3,686 4,250% chg 16.7 (0.1) (1.9) 15.3Net profit 1,345 1,289 687 930% chg 6.1 (4.1) (46.7) 35.4NIM (%) 3.3 2.8 2.4 2.5EPS ( ) 24.0 23.0 12.3 16.6P/E (x) 2.5 2.6 4.9 3.6P/ABV (x) 0.5 0.5 0.5 0.4RoA (%) 1.2 1.0 0.4 0.5RoE (%) 19.2 16.2 7.9 10.0

Source: Company, Angel Research; Note: CMP as of August 8, 2013

NEUTRALCMP ` 59Target Price -

Investment Period -

Stock Info

Sector Banking

Market Cap ( ` cr) 3,285

Beta 1.2

52 Week High / Low 130/55

Avg. Daily Volume 154,296

Face Value ( `

) 10BSE Sensex 18,789

Nifty 5,566

Reuters Code ADBK.BO

Bloomberg Code ANDB@IN

Shareholding Pattern (%)

Promoters 58.0

MF / Banks / Indian Fls 12.4

FII / NRIs / OCBs 13.6Indian Public / Others 16.1

Abs. (%) 3m 1yr 3yr

Sensex (6.0) 6.8 3.6

Andhra Bank (35.4) (41.1) (58.7)

Vaibhav Agrawal022 3935 7800 Ext: [email protected]

Sourabh Taparia022 3935 7800 Ext: [email protected]

Harshal Patkar022 3935 7800 Ext: [email protected]

Andhra Bank

Performance Highlights

1QFY2014 Result Update | Banking

August 12, 2013

7/27/2019 Andhra Bank, 1Q FY 2014

2/11

Andhra Bank | 1QFY2014 Result Update

August 12, 2013 2

Exhibit 1: 1QFY2014 performance (standalone) Particulars ( ` cr) 1QFY14 4QFY13 % chg (qoq) 1QFY13 1QFY14 FY2013 FY2012 % chg

Interest earned 3,386 3,359 0.8 3,121 8.5 12,910 11,339 13.9

- on Advances / Bills 2,722 2,645 2.9 2,520 8.0 10,327 9,278 11.3- on investments 654 691 (5.4) 579 12.9 2,476 1,974 25.4

- on balance with RBI & others 11 23 (52.7) 22 (51.2) 89 75 18.8

- on others - - - - - 18 12 49.3

Interest Expended 2,513 2,406 4.4 2,183 15.1 9,153 7,579 20.8

Net Interest Income 874 953 (8.3) 938 (6.9) 3,757 3,759 (0.1)

Other income 468 354 32.1 236 98.4 1,047 860 21.8

Other income excl. treasury 182 249 (27.0) 211 (14.0) 883 739 19.5

- CEB 62 75 (17.4) 65 (4.5) 273 262 4.2

- Treasury Income 286 105 171.5 25 1,061.4 164 121 36.0

- Recoveries from writ.-off acc 12 43 (71.9) 44 (72.3) 125 37 236.7

- Others 108 131 (17.5) 103 5.0 485 440 10.2

Operating income 1,342 1,307 2.6 1,174 14.3 4,804 4,619 4.0

Operating expenses 595 594 0.3 471 26.5 2,037 1,804 12.9

- Employee expenses 385 381 1.0 297 29.8 1,287 1,150 11.9

- Other Opex 210 213 (1.1) 174 20.8 750 654 14.7

Pre-provision Profit 746 714 4.6 703 6.1 2,767 2,815 (1.7)

Provisions & Contingencies 385 365 5.4 207 86.3 996 991 0.5

- Provisions for NPAs 276 187 47.6 157 75.5 615 482 27.6

- Provisions for Investments 1 66 (98.5) 13 (92.6) 96 61 58.4

- Other Provisions 108 112 (3.8) 36 201.0 285 448 (36.4)

PBT 361 349 3.7 497 (27.3) 1,771 1,824 (2.9)

Provision for Tax 130 4 3,199.5 135 (3.7) 482 480 0.5

PAT 231 345 (32.9) 362 (36.1) 1,289 1,345 (4.1)

Effective Tax Rate (%) 36.0 1.1 3485bp 27.2 881bp 27.2 26.3 92bp

Source: Company, Angel Research

Exhibit 2: 1QFY2014 Actual vs. Angel estimates Particulars ( ` cr) Actual Estimates Var. (%)

Net interest income 874 976 (10.4)

Non-interest income 468 235 98.6

Operating income 1,342 1,211 10.8Operating expenses 595 522 14.0

Pre-prov. profit 746 689 8.3

Provisions & cont. 385 222 73.4

PBT 361 467 (22.7)

Prov. for taxes 130 117 11.3

PAT 231 350 (34.0)


7/27/2019 Andhra Bank, 1Q FY 2014

3/11

7/27/2019 Andhra Bank, 1Q FY 2014

4/11


August 12, 2013 4

Exhibit 4: Business growth healthy


Exhibit 5: CASA ratio declines sequentially


Exhibit 6: 65bp qoq lower Yield on advances, result in..


Exhibit 7: ..34bp sequential fall in reported NIM


De-growth in CEB income and lower recoveries, but strongtreasury aid robust growth in non-interest income

During 1QFY2014, the non-interest income (excluding treasury) de-grew by 14.0%yoy to ` 182cr, which was largely due to 4.5% yoy de-growth in CEB income to ` 62cr and weak performance on recoveries front. Recoveries came in lower duringthe quarter at ` 12cr compared to ` 44cr in 1QFY2013. Income from exchangetransactions grew at a moderate pace of 9.5% to ` 28cr. Treasury gains for the

bank came in much higher at ` 286cr compared to ` 25cr in 1QFY2013, thereby aiding the overall non-interest income to almost double on a yoy basis to ` 468cr.

Elevated slippages coupled with lower recoveries/upgradesresulted in persistent asset quality stress

During 1QFY2014, the asset quality for the bank continued to see stress, as itsgross and net NPA levels increased sequentially by 27.8% and 33.3%, respectively.Consequently, gross and net NPA ratios were higher by 102bp and 82bp qoqrespectively to 4.7% and 3.3%. During the quarter, slippages came in at ` 1,180cr(annualized slippage ratio of 4.5%) as compared to ` 889cr (slippage ratio of

4.3%) in 4QFY2013. Almost `

421cr of the slippages during the quarter came fromits restructured book. Going ahead, the Management expects further slippages tocome from restructured book. Recoveries/upgrades came in lower during the

1 4

. 4

1 5

. 9

1 4

. 0

1 7

. 6

1 6

. 0

1 8

. 5

1 5

. 0

1 4

. 0

1 7

. 0

1 6

. 8

80.4

78.5

80.3

79.5 79.8

76.5

77.5

78.5

79.5

80.5

81.5

-

10.0

20.0

1QFY13 2QFY13 3QFY13 4QFY13 1QFY14

Adv. yoy chg (%) Dep. yoy chg (%) CDR (%, RHS)

2 6

. 7

2 5

. 9

2 6

. 0

2 5

. 7

2 4

. 0

13.6 14.0

11.413.6

5.1

-2.04.06.08.010.012.014.0

16.0

22.0

23.0

24.0

25.0

26.0

27.0


CASA ratio CASA yoy growth (%, RHS)

12.08 12.00 12.0511.89

11.24

10.00

10.40

10.80

11.20

11.60

12.00

12.40


3.333.13

3.35

3.04

2.70

2.00

2.40

2.80

3.20

3.60


(%)

7/27/2019 Andhra Bank, 1Q FY 2014

5/11


August 12, 2013 5

quarter at ` 103cr compared to ` 349cr in 4QFY2013. PCR dipped substantially by 455bp sequentially to 45.0%, amongst the lowest in the industry.

During the quarter, the bank also restructured advances worth ` 650cr, thereby taking its total restructured book to ` 9,846cr (9.8% of total advances). TheManagement has guided for advances worth ~ ` 3,300cr to be in the restructuringpipeline for 1QFY2014, which includes an advance of ~ ` 2,000cr to AP SEB, ` 385cr to a private sector power player and ` 135cr to a steel player.

Exhibit 8: Asset quality stress continues...


Exhibit 9: ...on back of elevated slippages

Source: Company, Angel Research; Note: PCR including tech. write-offs

Exhibit 10: Cost-to-income lower sequentially


Exhibit 11: Employee expenses trends


2 . 7

3 . 5

3 . 7

3 . 7

4 . 7

1 . 5

2 . 2

2 . 3

2 . 5

3 . 3

60.453.2 52.4 49.6

45.0

-

15.0

30.0

45.0

60.0

75.0

-

1.0

2.0

3.0

4.0

5.0


Gross NPAs (%) Net NPAs (%) PCR (%, RHS)

4 . 0

3 . 7

2 . 2

4 . 3

4 . 5

0.5

0.40.5

0.5

0.7

-

0.2

0.4

0.6

0.8

-

1.0

2.0

3.0

4.0

5.0


Slippages (%) Credit cost (%, RHS)

4 0

. 1

4 2

. 7

4 1

. 1

4 5

. 4

4 4

. 4

1.5 1.51.5

1.7

1.6

1.3

1.4

1.5

1.6

1.7

1.8

36.0

38.0

40.0

42.0

44.0

46.0


Cost-to-income ratio (%) Opex to average assets (%, RHS)

2 9 7

2 9 7

3 1 2

3 8 1

3 8 5

(6.8)

0.1

5.1

22.2

1.0

(10.0)

(5.0)

-

5.0

10.0

15.0

20.0

25.0

-

10 0

20 0

30 0

40 0

50 0


Staff expenses (`cr) QoQ growth (% , RHS)

7/27/2019 Andhra Bank, 1Q FY 2014

6/11


August 12, 2013 6

Investment concerns

Moderate fee income; low CASA

During FY200712, fee income for the bank reported a CAGR of only 10.9%compared to advances posting a CAGR of 23.4%. Consequently, fee income as aproportion of overall assets for the bank has declined from 1.1% in FY2007 to0.6% in FY2013. On the CASA front, the banks market share has fallen by 26bpover FY2005-FY2013; and at 24.0% as of 1QFY2014, the banks CASA ratio is onthe lower end compared to peers.

Risk-adjusted yields continue trending lower

The bank had one of the highest yields in the industry (at 12.5% for FY2012),which also reflected in its relatively healthy NIM (at 3.7% for FY2012), which was

partly attributed to the banks high concentration in the hinterland of its homestate. We believed that it would be difficult for the bank to remain insulated fromcompetition on the lending side and as a result, as expected, its yield on advancesand margins declined to 12.0% and 3.2%, respectively in FY2013 and furthercame in lower at 11.2% and 2.7%, respectively for 1QFY2014. Moreover, thebanks provisioning expenses as a proportion of average assets have alsoincreased from 0.65% for FY2011 to 0.75% for FY2013 and 1QFY2014. Goingforward, in the current environment, the banks provisioning expenses are likely toincrease at a faster rate, given the high yield on advances and relatively highexposure to stressed sectors.

Outlook and valuation

We believe that the asset quality pressures for the banking sector are unlikely toabate as quickly as was expected earlier, considering the recent macrodevelopments amidst an overall weak macro environment. Moreover, the banksrelatively high risk exposures, particularly to sectors like power, iron and steel andtextile, create risk of higher deterioration in asset quality over the next few quarters,in our view. Hence, we recommend Neutral rating on the stock.

7/27/2019 Andhra Bank, 1Q FY 2014

7/11


August 12, 2013 7

Exhibit 12: Key assumptions

Particulars (%)Earlier estimates Revised estimates

FY2014 FY2015 FY2014 FY2015

Credit growth 14.0 14.0 13.0 14.0Deposit growth 14.0 14.0 13.0 14.0

CASA ratio 24.8 24.5 25.0 24.8

NIMs 2.7 2.7 2.4 2.5

Other income growth (2.3) 10.1 12.9 (3.6)

Growth in staff expenses 10.0 10.0 15.0 7.5

Growth in other expenses 7.5 7.5 12.5 7.5

Slippages 2.9 2.9 3.5 3.0

Coverage Ratio 56.0 60.0 48.5 52.5

Source: Angel Research

Exhibit 13: Change in estimates

Particulars ( ` cr)FY2014 FY2015

Earlierestimates

Revisedestimates Var. (%)

Earlierestimates

Revisedestimates Var. (%)

NII 4,156 3,686 (11.3) 4,688 4,250 (9.3)

Non-interest income 1,024 1,183 15.5 1,127 1,140 1.1

Operating income 5,180 4,868 (6.0) 5,815 5,390 (7.3)

Operating expenses 2,222 2,324 4.6 2,424 2,498 3.1

Pre-prov. profit 2,958 2,544 (14.0) 3,391 2,892 (14.7)

Provisions & cont. 1,480 1,504 1.7 1,450 1,483 2.3

PBT 1,478 1,040 (29.6) 1,941 1,408 (27.4)Prov. for taxes 414 354 (14.6) 660 479 (27.4)

PAT 1,064 687 (35.5) 1,281 930 (27.4)

Source: Angel Research

Exhibit 14: P/ABV band


0

40

80

120

160

200

240

A p r -

0 2

D e c - 0

2

A u g - 0

3

A p r -

0 4

D e c - 0

4

A u g - 0

5

A p r -

0 6

D e c - 0

6

A u g - 0

7

A p r -

0 8

D e c - 0

8

A u g - 0

9

A p r -

1 0

D e c - 1

0

A u g - 1

1

A p r -

1 2

D e c - 1

2

A u g - 1

3

Price (`) 0.6x 0.8x 1x 1.2x 1.4x

7/27/2019 Andhra Bank, 1Q FY 2014

8/11


August 12, 2013 8

Exhibit 15: Recommendation summary

Company Reco. CMP( )Tgt.

price ( ` )Upside

(%)FY2015EP/ABV (x)

FY2015ETgt. P/ABV (x)

FY2015EP/E (x)

FY13-15EEPS CAGR (%)

FY2015ERoA (%)

FY2015ERoE (%)

AxisBk Buy 1,086 1,255 15.6 1.2 1.4 6.9 19.1 1.6 18.1

FedBk Neutral 318 - - 0.7 - 6.1 2.9 1.0 12.3

HDFCBk Buy 611 745 22.0 2.9 3.5 13.6 26.3 1.9 22.8

ICICIBk* Buy 875 1,038 18.6 1.3 1.5 9.1 15.8 1.6 15.4

SIB Neutral 20 - - 0.8 - 4.9 5.7 0.9 16.2YesBk Neutral 283 - - 1.2 - 5.7 16.9 1.3 22.8

AllBk Neutral 71 - - 0.4 - 2.4 12.6 0.6 12.4AndhBk Neutral 59 - - 0.4 - 3.5 (15.1) 0.5 10.0BOB Neutral 512 - - 0.6 - 4.1 8.3 0.8 14.2BOI Neutral 170 - - 0.4 - 2.7 16.2 0.7 13.9BOM Neutral 40 - - 0.4 - 3.4 5.4 0.5 14.1

CanBk Neutral 244 - - 0.5 - 4.0 (3.4) 0.6 10.4CentBk Neutral 57 - - 0.6 - 3.6 40.1 0.5 12.8CorpBk Neutral 272 - - 0.3 - 2.8 2.3 0.7 13.5

DenaBk Neutral 46 - - 0.3 - 2.1 (3.3) 0.6 13.2

IDBI# Neutral 58 - - 0.3 - 2.6 25.1 0.8 13.3

IndBk Neutral 72 - - 0.3 - 2.2 (4.2) 0.8 12.4

IOB Neutral 40 - - 0.3 - 2.7 57.5 0.5 10.5

J&KBk Neutral 1,013 - - 0.8 - 5.0 (3.5) 1.3 16.3

OBC Neutral 141 - - 0.3 - 2.7 7.4 0.6 11.1

PNB Neutral 540 - - 0.5 - 3.3 10.8 1.0 15.7

SBI* Neutral 1,661 - - 0.9 - 5.8 17.5 1.0 17.0

SynBk Neutral 72 - - 0.4 - 3.1 (16.0) 0.6 12.8

UcoBk Neutral 56 - - 0.5 - 3.6 66.4 0.6 13.5

UnionBk Neutral 117 - - 0.4 - 2.9 6.2 0.6 13.4

UtdBk Neutral 35 - - 0.3 - 1.7 54.6 0.6 14.7

VijBk Neutral 37 - - 0.4 - 4.1 (0.4) 0.4 9.8

Source: Company, Angel Research; Note: *Target multiples=SOTP Target Price/ABV (including subsidiaries); # without adjusting for SASF

Company Background

Andhra Bank is a mid-sized PSU bank, with a balance sheet size of ~ ` 1.5lakh cr.

The bank has a network of over 1,880 branches, mainly concentrated in thesouthern region (~two-third of total branches in the parent state of AndhraPradesh).

7/27/2019 Andhra Bank, 1Q FY 2014

9/11


August 12, 2013 9

Income statement (standalone)Y/E March ( ` cr) FY10 FY11 FY12 FY13 FY14E FY15E

NII 2,195 3,221 3,759 3,757 3,686 4,250

- YoY growth (%) 34.9 46.8 16.7 (0.1) (1.9) 15.3Other income 965 897 860 1,047 1,183 1,140

- YoY growth (%) 26.0 (7.0) (4.1) 21.8 12.9 (3.6)

Operating income 3,159 4,118 4,619 4,804 4,868 5,390

- YoY growth (%) 32.1 30.3 12.2 4.0 1.3 10.7

Operating expenses 1,350 1,705 1,804 2,037 2,324 2,498

- YoY growth (%) 22.2 26.3 5.8 12.9 14.1 7.5

Pre-prov. profit 1,810 2,413 2,815 2,767 2,544 2,892

- YoY growth (%) 40.5 33.3 16.7 (1.7) (8.1) 13.7

Prov. & cont. 374 646 991 996 1,504 1,483

- YoY growth (%) (4.1) 72.8 53.3 0.5 51.0 (1.4)

PBT 1,436 1,767 1,824 1,771 1,040 1,408

- YoY growth (%) 59.9 23.1 3.2 (2.9) (41.3) 35.4

Prov. for taxation 390 500 480 482 354 479

- as a % of PBT 27.2 28.3 26.3 27.2 34.0 34.0

PAT 1,046 1,267 1,345 1,289 687 930

- YoY growth (%) 60.1 21.2 6.1 (4.1) (46.7) 35.4

Balance sheet (standalone)Y/E March ( ` cr) FY10 FY11 FY12 FY13 FY14E FY15E

Share Capital 485 560 560 560 560 560Reserves & Surplus 3,925 5,933 6,920 7,882 8,404 9,105

Deposits 77,688 92,156 105,851 123,796 139,889 159,473

- Growth (%) 30.8 18.6 14.9 17.0 13.0 14.0

Borrowings 2,832 4,620 5,221 8,099 9,111 10,338

Tier 2 Capital 3,020 3,020 3,020 3,020 2,945 2,871

Other Liab. & Prov. 2,392 2,612 2,974 2,943 3,667 4,390

Total Liabilities 90,342 108,901 124,545 146,299 164,575 186,737

Cash Balances 6,699 7,184 5,564 6,022 6,295 7,176

Bank Balances 4,469 3,275 3,082 767 2,469 2,801

Investments 20,881 24,204 29,629 37,632 40,719 45,586

Advances 56,114 71,435 83,223 98,373 111,162 126,724

- Growth (%) 27.1 27.3 16.5 18.2 13.0 14.0

Fixed Assets 356 317 303 303 331 364

Other Assets 1,825 2,485 2,745 3,200 3,600 4,085

Total Assets 90,342 108,901 124,545 146,299 164,575 186,737

- Growth (%) 31.9 20.5 14.4 17.5 12.5 13.5

7/27/2019 Andhra Bank, 1Q FY 2014

10/11


August 12, 2013 10

Ratio analysis (standalone)Y/E March FY10 FY11 FY12 FY13 FY14E FY15E

Profitability ratios (%)

NIMs 2.8 3.3 3.3 2.8 2.4 2.5Cost to Income Ratio 42.7 41.4 39.1 42.4 47.7 46.4

RoA 1.3 1.3 1.2 1.0 0.4 0.5

RoE 26.0 23.2 19.2 16.2 7.9 10.0

B/S ratios (%)

CASA Ratio 29.4 29.1 26.4 25.7 25.0 24.8

Credit/Deposit Ratio 72.2 77.5 78.6 79.5 79.5 79.5

CAR 13.9 14.4 13.2 11.8 10.9 10.1

- Tier I 8.2 9.7 9.0 8.5 8.0 7.6

Asset Quality (%)

Gross NPAs 0.9 1.4 2.1 3.7 5.4 6.1

Net NPAs 0.2 0.4 0.9 2.4 3.3 3.4

Slippages 0.9 1.4 1.8 3.3 3.5 3.0

Loan Loss Prov. /Avg. Assets 0.4 0.5 0.4 0.5 0.7 0.7

Provision Coverage 91.6 83.9 71.1 49.6 48.5 52.5

Per Share Data ( ` )

EPS 21.6 22.6 24.0 23.0 12.3 16.6

ABVPS (75% cover.) 90.9 116.0 131.9 129.1 126.1 136.6

DPS 5.0 5.5 5.5 5.0 2.5 3.5

Valuation Ratios

PER (x) 2.8 2.6 2.5 2.6 4.9 3.6

P/ABVPS (x) 0.7 0.5 0.5 0.5 0.5 0.4Dividend Yield 8.4 9.2 9.2 8.4 4.2 5.9

DuPont Analysis

NII 2.8 3.2 3.2 2.8 2.4 2.4

(-) Prov. Exp. 0.5 0.6 0.8 0.7 1.0 0.8

Adj. NII 2.3 2.6 2.4 2.0 1.4 1.6

Treasury 0.4 0.1 0.1 0.1 0.2 0.0

Int. Sens. Inc. 2.7 2.7 2.5 2.2 1.6 1.6

Other Inc. 0.8 0.8 0.6 0.6 0.6 0.6

Op. Inc. 3.5 3.5 3.1 2.8 2.2 2.2

Opex 1.7 1.7 1.5 1.5 1.5 1.4PBT 1.8 1.8 1.6 1.3 0.7 0.8

Taxes 0.5 0.5 0.4 0.4 0.2 0.3

RoA 1.3 1.3 1.2 1.0 0.4 0.5

Leverage 19.7 18.3 16.7 17.0 17.9 18.9

RoE 26.0 23.2 19.2 16.2 7.9 10.0

7/27/2019 Andhra Bank, 1Q FY 2014

11/11


August 12 2013 11

Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com

DISCLAIMER

This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investmentdecision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should makesuch investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companiesreferred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits andrisks of such an investment.

Angel Broking Pvt. Ltd., its affiliates, directors, its proprietary trading and investment businesses may, from time to time, makeinvestment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in thisdocument are those of the analyst, and the company may or may not subscribe to all the views expressed within.

Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions andtrading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company'sfundamentals.

The information in this document has been printed on the basis of publicly available information, internal data and other reliablesources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as thisdocument is for general guidance only. Angel Broking Pvt. Ltd. or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report .

Angel Broking Pvt. Ltd. has not independently verified all the information contained within this document. Accordingly, we cannottestify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.

While Angel Broking Pvt. Ltd. endeavours to update on a reasonable basis the information discussed in this material, there may beregulatory, compliance, or other reasons that prevent us from doing so.

This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,redistributed or passed on, directly or indirectly.

Angel Broking Pvt. Ltd. and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking orother advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or inthe past.

Neither Angel Broking Pvt. Ltd., nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or inconnection with the use of this information.

Note: Please refer to the important ` Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to thelatest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Ltd. and its affiliates may haveinvestment positions in the stocks recommended in this report.

Disclosure of Interest Statement Andhra Bank

1. Analyst ownership of the stock No

2. Angel and its Group companies ownership of the stock No

3. Angel and its Group companies' Directors ownership of the stock No

4. Broking relationship with company covered No

Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)Reduce (-5% to -15%) Sell (< -15%)

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors

andhra bank, 1q fy 2014

Documents