Allahabad Bank, 1Q FY 2014

1QFY2014 Result Update | Banking
August 5, 2013
Allahabad Bank
Performance Highlights
Particulars (` cr) NII Pre-prov. profit PAT 1QFY14 1,312 1,022 413 4QFY13 1,056 767 126 % chg (qoq) 24.2 33.2 227.5 1QFY13 1306 956 514 % chg (yoy) 0.5 6.9 (19.6)
NEUTRAL
CMP Target Price
Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Banking 3,363 1.2 191/66 260,529 10 19,164 5,678 ALBK.BO ALBK@IN
`67 -
Source: Company, Angel Research
Allahabad Bank reported a muted operating performance for the quarter, as its NII remained largely flat yoy. Non-interest income grew strongly by 61.9% yoy, as treasury gains more than tripled to `177cr. Operating profit grew at a subdued pace of 6.9% yoy. The bank witnessed significant asset quality deterioration during the quarter, as Gross and Net NPA levels increased sequentially by around 20% each. Consequently, the provisioning expenses for the bank grew by 42.3% yoy and hence, the earnings declined by 19.6% yoy. NIM stable qoq; Slippages remain higher for 1QFY2014: During 1QFY2014, the bank witnessed a healthy growth in its business, as advances and deposits grew at 16.7% and 14.9% yoy, respectively. Overall CASA deposits grew at 14.4% yoy; hence, the CASA ratio remained largely flat yoy to 29.5%. The banks yield on funds declined 22bp qoq to 9.9%, on back of lower yield on advances (44bp qoq). Cost of funds also declined by 22bp qoq to 7.1% and hence, the reported NIM remained stable qoq at 2.8%. The bank witnessed strong growth of 27.4% yoy on the non-interest income (excluding treasury) to `324cr. Fee Income grew at a moderate pace of 12.6% yoy. During the quarter, slippages remained elevated at `1,694cr (annualized slippage rate at 5.2%). Of the slippage during the quarter, eight chunky accounts contributed ~`680cr. Recoveries and Upgrades came in at `399cr as against `460cr in 4QFY2013. As of 1QFY2014, the Gross NPA ratio has reached 4.8%, higher by 280bp yoy and 86bp qoq, while Net NPA has reached to 3.9%, up by 278bp yoy and 68bp qoq. The PCR declined by 2,539bp yoy and 182bp qoq to 48.2%. Additionally, the bank restructured advances worth `339cr, thereby taking its outstanding restructured book to `13,595cr (10.5% of net advances). Going forward, the Management has guided at a restructuring pipeline of `1,500cr, and almost half of these advances are already classified as non-performing in their books. Outlook and valuation: The banks asset quality has come under severe pain over the past five quarters, as Gross NPAs have almost tripled and Net NPA levels have nearly grown four times. Going ahead, we remain concerned on the banks asset quality, as we take into account banks aggressively high yields on advances, its exposures to stressed sectors, overall weak macro environment and recent macro developments. Moreover, the bank has requested a capital infusion of `1,500cr from the Government of India, which is likely to be at book dilutive valuations. Hence, we recommend a Neutral rating on the stock. Key financials (standalone)
Y/E March (` cr) NII % chg Net profit % chg NIM (%) EPS (`) P/E (x) P/ABV (x) RoA (%) RoE (%) FY2012 5,163 28.3 1,867 31.2 3.2 37.3 1.8 0.4 1.1 21.6 FY2013 4,866 (5.7) 1,185 (36.5) 2.6 23.7 2.9 0.4 0.6 11.8 FY2014E 5,315 9.2 1,299 9.6 2.5 26.0 2.6 0.4 0.6 11.8 FY2015E 5,884 10.7 1,503 15.7 2.5 30.0 2.3 0.3 0.6 12.4
Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 55.2 20.0 8.3 14.5
Abs. (%) Sensex

Allahabad Bank
3m (2.9) (50.9)
1yr 11.3 (49.2)
3yr 6.0 (65.9)
Vaibhav Agrawal
022 3935 7800 Ext: 6808 vaibhav.agrawal@angelbroking.com
Sourabh Taparia
022 3935 7800 Ext: 6872 sourabh.taparia@angelbroking.com
Harshal Patkar
022 3935 7800 Ext: 6847 harshal.patkar@angelbroking.com
Source: Company, Angel Research; Note: CMP as of August 2, 2013
Please refer to important disclosures at the end of this report
Allahabad Bank | 1QFY2014 Result Update
Exhibit 1: 1QFY2014 performance (standalone)

Particulars (` cr) Interest earned - on Advances / Bills - on investments - on balance with RBI & others - on others Interest Expended Net Interest Income Other income Other income excl. treasury - Fee Income - Treasury Income - Others Operating income Operating expenses - Employee expenses - Other Opex Pre-provision Profit Provisions & Contingencies - Provisions for NPAs - Provisions for Investments - Other Provisions PBT Provision for Tax PAT Effective Tax Rate (%)
1QFY14 4,564 3,407 1,058 38 61 3,252 1,312 501 324 269 177 55 1,813 791 526 266 1,022 446 441 (8) 12 576 163 413 28.3
4QFY13 4,252 3,126 1,098 18 10 3,196 1,056 525 427 257 98 170 1,581 813 545 268 767 622 513 31 78 145 19 126 12.9
% chg (qoq) 7.3 9.0 (3.6) 109.2 498.8 1.7 24.2 (4.4) (24.0) 4.7 80.6 (67.4) 14.7 (2.7) (3.5) (1.0) 33.2 (28.4) (13.9) (125.7) (84.7) 298.1 776.2 227.5 1546bp
1QFY13 4,458 3,297 1,070 72 18 3,152 1,306 310 255 239 55 16 1,615 660 436 224 956 313 270 (96) 139 642 128 514 20.0
% chg (yoy) 2.4 3.3 (1.1) (47.7) 230.3 3.2 0.5 61.9 27.4 12.6 221.8 255.3 12.2 19.9 20.7 18.4 6.9 42.3 63.5 (91.7) (91.4) (10.3) 27.2 (19.6) 834bp
FY2013 17,436 12,745 4,473 159 58 12,569 4,866 1,477 1,224 918 253 306 6,343 2,958 1,986 972 3,385 1,833 1,482 (176) 527 1,553 367 1,185 23.7
FY2012 15,523 11,664 3,716 123 20 10,361 5,163 1,299 1,186 954 113 232 6,461 2,691 1,835 857 3,770 1,607 1,184 221 203 2,163 296 1,867 13.7
% chg 12.3 9.3 20.4 29.7 191.3 21.3 (5.7) 13.7 3.2 (3.8) 123.9 32.1 (1.8) 9.9 8.3 13.5 (10.2) 14.0 25.1 (179.9) 160.3 (28.2) 24.1 (36.5) 997bp
Exhibit 2: 1QFY2014 Actual vs estimates

Particulars (` cr) Net interest income Other income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT
Actual 1,312 501 1,813 791 1,022 446 576 163 413
Estimates 1,153 364 1,517 765 752 340 412 124 288
Var. (%) 13.7 37.9 19.5 3.4 35.9 30.9 39.9 32.2 43.3
August 5, 2013
Exhibit 3: 1QFY2014 performance analysis (standalone)

Particulars (` cr) Balance sheet Advances (` cr) Deposits (` cr) Credit-to-Deposit Ratio (%) Current deposits (` cr) Saving deposits (` cr) CASA deposits (` cr) CASA ratio (%) CAR (%) Tier 1 CAR (%) Profitability Ratios (%) Cost of deposits Yield on advances Yield on investments Yield on funds Cost of funds Reported NIM Cost-to-income ratio Asset quality Gross NPAs (` cr) Gross NPAs (%) Net NPAs (` cr) Net NPAs (%) Provision coverage ratio (%) Annualized slippage ratio (%) NPA prov. to avg. assets (%)
1QFY14
4QFY13 % chg (qoq)
1QFY13 % chg (yoy) 16.7 14.9 115bp 12.6 14.7 14.4 (13)bp (187)bp (129)bp (55)bp (144)bp (15)bp (97)bp (58)bp (34)bp 279bp 185.1 280bp 313.2 278bp (2539)bp 311bp 27bp
128,941 129,490 180,177 178,742 71.6 8,854 44,288 53,142 29.5 11.1 8.0 7.3 11.0 7.5 9.9 7.1 2.8 43.6 6,164 4.8 4,922 3.9 48.2 5.2 0.9 72.4 9,954 44,975 54,929 30.7 11.0 8.1 7.3 11.4 7.6 10.1 7.3 2.8 51.5 5,137 3.9 4,127 3.2 50.0 9.3 1.7
(0.4) 110,462 0.8 156,867 (88)bp (11.1) (1.5) (3.3) (124)bp 4bp (4)bp (1)bp (44)bp (5)bp (22)bp (22)bp 2bp (782)bp 20.0 86bp 19.3 68bp (182)bp (407)bp (86)bp 70.4 7,865 38,608 46,473 29.6 12.9 9.3 7.8 12.4 7.7 10.8 7.7 3.2 40.8 2,162 2.0 1,191 1.1 73.6 2.1 0.6
Healthy business growth; NIM stable qoq

During 1QFY2014, the bank witnessed a healthy growth in its business, as advances and deposits grew at 16.7% and 14.9% yoy, respectively. On a sequential basis, both advances and deposits for the bank remained largely flat. Within advances, Retail credit grew at a healthy pace of 15.9% yoy (flat sequentially) and constitutes 13.7% of its loan book. The healthy retail portfolio growth was largely driven by strong growth of 34.9% yoy in the trade loan book, even as growth in home loan portfolio was moderate at 10.5% yoy. Current deposits grew moderately by 12.6% yoy (declined by 11.1% qoq), while savings deposits grew at a healthy pace of 14.7% yoy (almost flat sequentially), thereby aiding overall CASA deposits to grow by 14.4% yoy (decline by 3.3% qoq). Consequently, the CASA ratio for the bank declined 124bp qoq (largely flat yoy) to 29.5%. The banks yield on advances declined by 44bp qoq to 11.0%, as the bank had reduced base rate in 4QFY2013 which got fully reflected in the quarter under consideration. Hence, overall yield on funds for the bank declined by 22bp to 9.9%. Cost of funds also declined by 22bp qoq to 7.1% and hence, the reported NIM remained stable sequentially at 2.8%.
August 5, 2013
Exhibit 4: Healthy Business growth continues

Adv. yoy chg (%) 30.0 70.4 68.4 Dep. yoy chg (%) 70.6 72.4 CDR (%, RHS) 71.6 75.0 70.0 65.0 60.0
Exhibit 5: CASA ratio declines sequentially

CASA ratio 32.0 30.0 28.0 26.0 24.0 8.4 15.8 12.8 12.9 14.4 CASA yoy growth (%, RHS) 20.0 15.0 10.0
20.0
10.0
11.9 17.2
15.8 14.0
20.0 17.4
16.5 12.0
16.7 14.9
29.6
30.3
30.2
30.7
55.0 50.0
22.0 20.0
1QFY13 2QFY13 3QFY13 4QFY13 1QFY14

29.5
5.0 -

Exhibit 6: YoA decline on full effect of lower base rate

(%) 13.0 12.0 11.0 10.0 9.0 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 12.43 11.53 11.43 11.43 10.99
Exhibit 7: NIM remains stable qoq

(%) 3.5 3.2 2.9 2.6 2.3 2.0 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 3.17 2.80 3.02 2.81 2.83
Strong growth in non-interest income (excluding treasury); Treasury gains more than triple
During the quarter, the bank witnessed a strong performance on the non-interest income (excluding treasury) front, registering a growth of 27.4% yoy to `324cr. Fee income for the bank grew at a moderate pace of 12.6%, while income from others segment grew to `55cr during the quarter as compared to `15cr in 1QFY2013. Treasury income for the bank during the quarter more than tripled on a yoy basis to `177cr, and aided the overall non-interest income to grow by 61.9% yoy to `501cr.
Asset quality deterioration continues, as slippages remain elevated

Over the past one year, the bank has witnessed severe asset quality pain, as Gross NPAs have almost tripled and Net NPA levels have more than quadrupled, on a yoy basis. During 1QFY2014, the bank continued witnessing significant asset quality deterioration, as Gross and Net NPA levels increased sequentially by 20.0% and 19.3% yoy, respectively. During the quarter, slippages remained elevated at `1,694cr (annualized slippage rate at 5.2%). Of the slippage during the quarter, eight chunky accounts contributed ~`680cr. Recoveries and Upgrades came in at
August 5, 2013
`399cr compared to `460cr in 4QFY2013. As of 1QFY2014, the Gross NPA ratio has reached 4.8%, higher by 280bp yoy and 86bp qoq, while Net NPA has reached to 3.9%, up by 278bp yoy and 68bp qoq. PCR for the bank has declined by 2,539bp yoy to 48.2% (a sequentially decline of 182bp). Additionally, the bank restructured advances worth `339cr, thereby taking its outstanding restructured book to `13,595cr (10.5% of net advances). Going forward, the Management has guided for a restructuring pipeline of `1,500cr, and almost half of these advances are already classified as non-performing in their books.
Exhibit 8: NPA ratios portray a rising trend

6.0 5.0 4.0 3.0 2.0 Gross NPAs (%) 73.6 60.8 Net NPAs (%) 61.0 50.0 48.2 PCR (%, RHS) 80.0 70.0 60.0 50.0 40.0 30.0 20.0
Exhibit 9: Slippages remain at elevated levels

Slippages (%) 10.0 8.0 6.0 4.0 2.0 2.1 1QFY13 6.2 2QFY13 3.6 3QFY13 9.3 4QFY13 5.2 1QFY14 0.6 0.8 0.7 Credit cost (%, RHS) 1.0 1.2 0.9 1.0 0.8 0.6 0.4 0.2 -
2.0 1.1
3.0 2.1
2.9 2.1
3.9 3.2
4.8 3.9
1.0 -
10.0 -

Source: Company, Angel Research; Note: PCR incl. technical write-offs
Exhibit 10: Branch expansion slows

2,750 2,700 2,650 2,600 2,550 2,500 2,450 2,400 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 2,537 2,564 2,664 2,716 2,727
Exhibit 11: Cost ratios trends

Cost-to-income ratio (%) 60.0 45.0 30.0 15.0 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
Opex to average assets (%, RHS) 1.7 1.6 1.5 1.8 1.7 1.6 1.5
1.5
1.5
40.8
45.7
48.5
51.5
43.6
1.4 1.3
August 5, 2013
Investment arguments
Healthy retail deposit base
Allahabad Bank has a substantial 61% of its branches in the CASA deposit-rich rural and semi-urban areas, which ensure higher sustainability of the low-cost deposits reservoir, also reflected in the healthy 16.3% CAGR in the banks saving account deposits over FY200613. Although the banks CASA market share reduced by 25bp over FY2006FY2013 to 2.4%, the decline in market share has been one of the lowest in its peer group. The bank is now planning to diversify its branch network by expanding in the economically vibrant states of Gujarat and Maharashtra. The banks better CASA ratio, of ~30% is also likely to help in moderating the expected NIM pressures, emanating from asset quality stress. As compared to peers such as IOB, OBC, and Corporation Bank, the bank has a higher structural CASA share.
Investment concerns Higher yielding loans leading to higher NPAs

Allahabad Bank has one of the highest reported yields on advances amongst all PSU banks. We were always wary of incremental asset quality pressures arising from such high yields on advances, which showed up in the form of higher slippages during FY2013 and 1QFY2014.
Over the past five quarters, the bank has witnessed severe asset quality pain, as Gross NPAs have almost tripled and Net NPA levels have nearly grown four times. As of 1QFY2014, Gross NPA ratio has reached 4.8% as of 1QFY2014 from 1.8% as of 4QFY2012, while Net NPA has reached to 3.9% from 1.0% over the same period. Further, the PCR for the bank has declined by 2,582bp to 48.2% over the same period. Moreover, restructured advances as a proportion of net advances have increased from 5.7% as of FY2012 end to 10.5% as of 1QFY2014. The yield on advances also dropped from 12.43% as of
1QFY2013 to 11.0% as of 1QFY2014, partly on account of interest reversals on heavy slippages. Going ahead, we remain cautious on the banks asset quality, as we take into account banks aggressively high yields on advances, its exposure to stressed sectors, overall weak macro environment and recent macro developments.
Outlook and valuation

The banks asset quality has come under severe pain over the past five quarters, as
Gross NPAs have almost tripled and Net NPA levels have nearly grown four times. Going ahead, we remain concerned on the banks asset quality, as we take
into account the banks aggressively high yields on advances, its exposure to stressed sectors, overall weak macro environment and recent macro developments. Moreover, the bank has requested a capital infusion of `1,500cr from the Government of India, which is likely to be at book dilutive valuations. Hence, we recommend a Neutral rating on the stock.
August 5, 2013
Exhibit 12: Key assumptions

Particulars (%) Credit growth Deposit growth CASA ratio NIMs Other income growth Growth in staff expenses Growth in other expenses Slippages Coverage Ratio
Source: Angel Research
Earlier estimates FY2014 15.0 10.0 30.7 2.5 2.6 12.5 5.0 3.0 55.0 FY2015 15.0 13.0 30.6 2.5 8.1 10.0 5.0 2.8 60.0
Revised estimates FY2014 13.0 9.0 30.9 2.5 3.5 11.0 11.0 3.8 49.5 FY2015 15.0 13.0 30.8 2.5 7.5 10.0 5.0 3.0 55.0
Exhibit 13: Change in estimates

FY2014 Particulars (` cr) Earlier estimates 5,190 1,515 6,705 3,255 3,450 1,479 1,970 591 1,379 Revised Var. (%) estimates 5,315 2.4 1,528 6,843 3,284 3,560 1,704 1,855 557 1,299 0.9 2.1 0.9 3.2 15.2 (5.8) (5.8) (5.8) Earlier estimates 5,897 1,638 7,535 3,529 4,006 1,494 2,512 854 1,658 FY2015 Revised Var. (%) estimates 5,884 (0.2) 1,643 7,528 3,558 3,970 1,694 2,276 774 1,503 0.3 (0.1) 0.8 (0.9) 13.3 (9.4) (9.4) (9.4)
NII Non-interest income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT
Source: Angel Research
Exhibit 14: P/ABV band

Price (`) 400 350 300 250 200 150 100 50 0 0.3x 0.6x 0.9x 1.2x 1.5x
Apr-06
Apr-07
Apr-08
Apr-09
Apr-10
Apr-11
Apr-12
Oct-06
Oct-07
Oct-08
Oct-09
Oct-10
Oct-11
Oct-12
Apr-13
August 5, 2013
Oct-13
Exhibit 15: Recommendation summary

Company AxisBk FedBk HDFCBk ICICIBk* SIB YesBk AllBk AndhBk BOB BOI BOM CanBk CentBk CorpBk DenaBk IDBI# IndBk IOB J&KBk OBC PNB SBI* SynBk UcoBk UnionBk UtdBk VijBk Reco. Buy Neutral Buy Buy Neutral Neutral Neutral Reduce Neutral Neutral Neutral Neutral Reduce Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Accumulate Neutral Neutral Neutral Neutral Neutral CMP (`) 1,104 350 631 887 21 308 67 58 488 170 40 242 57 280 47 60 70 40 1,099 137 524 1,681 75 58 117 33 38 Tgt. price (`) 1,302 745 1,068 51 52 1,930 Upside (%) 18 18 20 (11) (8) 15 FY2015E P/ABV (x) 1.2 0.8 3.0 1.3 0.8 1.3 0.3 0.4 0.5 0.4 0.4 0.4 0.6 0.3 0.3 0.3 0.3 0.3 0.8 0.3 0.5 0.9 0.4 0.5 0.4 0.2 0.4 FY2015E Tgt. P/ABV (x) 1.4 3.5 1.5 0.4 0.5 1.1 FY2015E P/E (x) 7.0 6.7 14.0 9.2 5.0 6.2 2.2 3.5 3.9 2.7 3.1 2.8 3.6 2.9 2.2 2.7 2.1 2.6 5.4 2.2 3.2 5.9 3.2 3.7 2.9 1.7 4.2 FY2013-15E EPS CAGR (%) 19.1 2.9 26.3 15.8 5.7 16.9 12.6 (15.1) 8.3 16.2 10.0 15.4 40.1 2.3 (3.3) 25.1 (4.2) 57.5 (3.5) 17.0 10.8 17.5 (16.0) 66.4 6.2 54.6 (0.4) FY2015E RoA (%) 1.6 1.0 1.9 1.6 0.9 1.3 0.6 0.5 0.8 0.7 0.6 0.8 0.5 0.7 0.6 0.8 0.8 0.5 1.3 0.8 1.0 1.0 0.6 0.6 0.6 0.6 0.4 FY2015E RoE (%) 18.1 12.3 22.8 15.4 16.2 22.8 12.4 10.0 14.2 13.9 15.3 14.2 12.8 13.5 13.2 13.3 12.4 10.5 16.3 12.9 15.7 17.0 12.8 13.5 13.4 14.7 9.8
Source: Company, Angel Research; Note:*Target multiples=SOTP Target Price/ABV (including subsidiaries), #Without adjusting for SASF
Company Background
Allahabad Bank is a mid-sized public sector bank, with a branch network of over 2,700 branches and balance sheet of over `2.0lakh cr. The bank's branches are mostly concentrated in the northern (~40%) and eastern (~40%) states of India.
August 5, 2013
Income statement (standalone)

Y/E March (` cr) Net Interest Income - YoY Growth (%) Other Income - YoY Growth (%) Operating Income - YoY Growth (%) Operating Expenses - YoY Growth (%) Pre - Provision Profit - YoY Growth (%) Prov. & Cont. - YoY Growth (%) Profit Before Tax - YoY Growth (%) Prov. for Taxation - as a % of PBT PAT - YoY Growth (%) FY10 2,650 22.8 1,516 32.7 4,166 26.2 1,618 15.6 2,549 34.1 777 (5.9) 1,772 64.7 565 31.9 1,206 57.0 FY11 4,022 51.8 1,370 (9.6) 5,393 29.4 2,338 44.5 3,055 19.9 1,124 44.7 1,931 9.0 508 26.3 1,423 18.0 FY12 5,163 28.3 1,299 (5.2) 6,461 19.8 2,691 15.1 3,770 23.4 1,607 43.0 2,163 12.0 296 13.7 1,867 31.2 FY13 4,866 (5.7) 1,477 13.7 6,343 (1.8) 2,958 9.9 3,385 (10.2) 1,833 14.0 1,553 (28.2) 367 23.7 1,185 (36.5) FY14E 5,315 9.2 1,528 3.5 6,843 7.9 3,284 11.0 3,560 5.2 1,704 (7.0) 1,855 19.5 557 30.0 1,299 9.6 FY15E 5,884 10.7 1,643 7.5 7,528 10.0 3,558 8.4 3,970 11.5 1,694 (0.6) 2,276 22.7 774 34.0 1,503 15.7
Balance sheet (standalone)

Y/E March (` cr) Share Capital Reserves & Surplus Deposits - Growth (%) Borrowings Tier 2 Capital Other Liab. & Prov. Total Liabilities Cash Balances Bank Balances Investments Advances - Growth (%) Fixed Assets Other Assets Total Assets - Growth (%) FY10 447 6,306 106,056 24.8 1,424 4,012 3,455 121,699 7,184 1,984 38,429 71,605 21.8 1,118 1,379 121,699 24.6 FY11 476 8,031 131,887 24.4 3,006 3,912 3,974 151,286 7,901 3,126 43,247 93,625 30.8 1,148 2,239 151,286 24.3 FY12 500 10,007 159,593 21.0 5,183 3,912 3,740 182,935 8,712 5,313 54,283 111,145 18.7 1,198 2,283 182,935 20.9 FY13 500 10,852 178,742 12.0 6,386 3,712 4,181 204,373 7,808 5,263 58,306 129,490 16.5 1,252 2,255 204,373 11.7 FY14E 500 11,859 194,828 9.0 6,949 3,619 4,651 222,407 8,767 5,727 57,814 146,323 13.0 1,321 2,454 222,407 8.8 FY15E 500 13,040 220,156 13.0 7,826 3,529 5,412 250,462 9,907 6,449 61,627 168,272 15.0 1,443 2,764 250,462 12.6
August 5, 2013
Ratio Analysis (standalone)

Y/E March Profitability ratios (%) NIMs Cost to Income Ratio RoA RoE B/S ratios (%) CASA Ratio Credit/Deposit Ratio CAR - Tier I Asset Quality (%) Gross NPAs Net NPAs Slippages Loan Loss Prov./Avg. Assets Provision Coverage Per Share Data (`) EPS ABVPS DPS Valuation Ratios PER (x) P/ABVPS (x) Dividend Yield DuPont Analysis (%) NII (-) Prov. Exp. Adj. NII Treasury Int. Sens. Inc. Other Inc. Op. Inc. Opex PBT Taxes RoA Leverage (x) RoE 2.4 0.7 1.7 0.5 2.2 0.9 3.1 1.5 1.6 0.5 1.1 20.2 22.2 2.9 0.8 2.1 0.1 2.2 0.9 3.1 1.7 1.4 0.4 1.0 20.2 21.0 3.1 1.0 2.1 0.1 2.2 0.7 2.9 1.6 1.3 0.2 1.1 19.3 21.6 2.5 0.9 1.6 0.1 1.7 0.6 2.3 1.5 0.8 0.2 0.6 19.2 11.8 2.5 0.8 1.7 0.1 1.8 0.6 2.4 1.5 0.9 0.3 0.6 19.4 11.8 2.5 0.7 1.8 0.0 1.8 0.7 2.5 1.5 1.0 0.3 0.6 19.6 12.4 2.5 0.5 8.0 2.3 0.4 8.7 1.8 0.4 8.7 2.9 0.4 8.7 2.6 0.4 7.3 2.3 0.3 8.0 27.0 131.7 5.5 29.9 160.5 6.0 37.3 192.1 6.0 23.7 168.7 6.0 26.0 173.6 5.0 30.0 203.4 5.5 1.7 0.7 2.1 0.8 78.9 1.7 0.8 2.4 0.6 75.7 1.8 1.0 2.4 0.7 74.0 3.9 3.2 5.3 0.8 50.0 5.2 3.8 3.8 0.6 49.5 5.5 3.4 3.0 0.6 55.0 34.5 67.5 13.6 8.1 33.5 71.0 13.0 8.6 30.5 69.6 12.8 9.1 30.7 72.4 11.0 8.1 30.9 75.1 10.8 8.1 30.8 76.4 10.3 7.9 2.5 38.8 1.1 22.2 3.0 43.4 1.0 21.0 3.2 41.7 1.1 21.6 2.6 46.6 0.6 11.8 2.5 48.0 0.6 11.8 2.5 47.3 0.6 12.4 FY10 FY11 FY12 FY13 FY14E FY15E
August 5, 2013
10
Research Team Tel: 022 - 39357800
E-mail: research@angelbroking.com
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DISCLAIMER
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Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered
Allahabad Bank No No No No
Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors
Ratings (Returns):
Buy (> 15%) Reduce (-5% to -15%)
Accumulate (5% to 15%) Sell (< -15%)
Neutral (-5 to 5%)
August 5, 2013
11

Allahabad Bank, 1Q FY 2014

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Allahabad Bank, 1Q FY 2014

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1QFY2014 Result Update | Banking

Source: Company, Angel Research

Abs. (%) Sensex

1yr 11.3 (49.2)

3yr 6.0 (65.9)

Source: Company, Angel Research; Note: CMP as of August 2, 2013

Please refer to important disclosures at the end of this report