Dena Bank, 1Q FY 2014

7/27/2019 Dena 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 % chg (yoy)NII 605 562 7.6 612 (1.2)Pre-prov. profit 586 401 46.3 458 28.0

PAT 189 126 50.6 239 (20.7)Source: Company, Angel Research

Dena Bank reported a weak operating performance for 1QFY2014, as its NIIde-grew by 1.2% yoy. The non-interest income grew strongly by 158.0% yoy,propelled by treasury gains of `248cr vs. `32cr in 1QFY2013. Overall, thepre-provisioning profit for the bank grew by 28.0% yoy. The bank witnessed

significant asset quality deterioration during the quarter, as Gross and Net NPAlevels increased by around 21% qoq. Consequently, provisioning expensesincreased by 120.6% yoy and earnings de-grew by 20.7% yoy.

Business growth moderates; Asset quality deteriorates qoq:During 1QFY2014,the advance book for the bank grew moderately by 8.9% yoy, while deposits grewat a healthy pace of 18.3% yoy. Loan growth was primarily aided by a healthygrowth of 25% plus in agriculture, MSME and retail book. CASA deposits grew ata moderate pace of 6.9% yoy. CASA ratio has been trending downwards for thebank and even during the quarter it declined by 91bp qoq to 27.9%. ReportedNIM increased by 9bp qoq to 2.5%, aided by an 11bp qoq decline in cost ofdeposits. The banks non-interest income (excluding treasury), grew at a moderatepace of 7.2% yoy to `117cr, on back of subdued CEB income performance(8.2% yoy decline to `56cr). Slippages during the quarter came in at `408cr

(annualized slippage rate of 2.5%), in-line with the Managements guidance.Of incremental slippages, an account from the IT sector (at `98cr) was thelargest. Recoveries and Upgrades came in sequentially lower at `103cr comparedto `146cr in 4QFY2013. PCR dipped by 144bp sequentially to 68.1%. As of1QFY2014, the banks outstanding restructured book stood at ~`6,538cr(as compared to `5,423cr in 4QFY2013). Going ahead, the Managementhas guided for advances worth `800cr to be in the restructuring pipeline.

Outlook and valuation: The bank has witnessed a marked decline in its CASAratio over the last two years (from 35.2% to 27.9% as of 1QFY2014), which canbe largely attributed to strong growth in term deposits (CAGR of 28.8%) to fund itsaggressive loan book growth. We are cautious on the banks asset qualityperformance, in-line with the sectoral outlook, post the recent macrodevelopments in midst of overall weak macro fundamentals. Moreover, the bank

plans to raise capital to the tune of `2,180cr, which is likely to be at book-dilutivevaluations. Hence, we recommend a Neutral rating on the stock.

Key financials (standalone)

Y/E March (` cr) FY2012 FY2013 FY2014E FY2015ENII 2,101 2,383 2,508 2,823% chg 19.1 13.4 5.2 12.6

Net profit 803 810 613 758% chg 31.3 0.9 (24.4) 23.6

NIM (%) 2.7 2.4 2.2 2.4

EPS (`) 22.9 23.1 17.5 21.6P/E (x) 2.2 2.1 2.8 2.3P/ABV (x) 0.4 0.4 0.3 0.3

RoA (%) 1.0 0.8 0.5 0.6

RoE (%) 20.7 17.6 11.9 13.2

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

NEUTRALCMP `47Target Price -

Investment Period 12 months

Stock Info

Sector Banking

Market Cap (` cr) 1,633

Beta 1.3

52 Week High / Low 128/46

Avg. Daily Volume 394,694

Face Value (`

) 10BSE Sensex 19,164

Nifty 5,678

Reuters Code DENA.BO

Bloomberg Code DBNK@IN

Shareholding Pattern (%)

Promoters 55.2

MF / Banks / Indian Fls 8.1

FII / NRIs / OCBs 16.9

Indian Public / Others 19.7

Abs. (%) 3m 1yr 3yr

Sensex (2.1) 11.3 6.0

Dena Bank (48.7) (49.1) (54.3)

Vaibhav Agrawal022 3935 7800 Ext: 6808

[email protected]

Sourabh Taparia022 3935 7800 Ext: 6872

[email protected]

Harshal Patkar022 3935 7800 Ext: [email protected]

Dena BankPerformance Highlights

1QFY2014 Result Update | Banking

August 3, 2013

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

2/11

Dena Bank | 1QFY2014 Result Update

August 3, 2013 2

Exhibit 1:1QFY2014 performance (standalone)Particulars (` cr) 1QFY14 4QFY13 % chg (qoq) 1QFY13 % chg (yoy) FY2013 FY2012 % chgInterest earned 2,400 2,304 4.2 2,137 12.3 8,899 6,794 31.0- on Advances / Bills 1,793 1,737 3.3 1,651 8.7 6,819 5,161 32.1- on investments 597 557 7.2 449 32.8 2,019 1,544 30.8

- on balance with RBI & others 10 8 18.1 10 (3.1) 31 38 (18.5)

- on others - 3 (100.0) 27 (100.0) 30 51 (40.7)

Interest Expended 1,795 1,742 3.0 1,525 17.7 6,516 4,693 38.8Net Interest Income 605 562 7.6 612 (1.2) 2,383 2,101 13.4Other income 366 235 55.2 142 158.0 655 582 12.6Other income excl. treasury 118 152 (22.9) 110 7.2 498 547 (9.0)

- Fee Income 56 136 (59.0) 61 (8.2) 412 478 (13.9)

- Treasury Income 248 83 198.8 32 674.0 157 35 353.4

- Recov. from written off a/cs 11 16 (31.3) 6 83.3 44 70 (36.8)

Operating income 970 797 21.7 754 28.7 3,039 2,683 13.2Operating expenses 384 397 (3.2) 296 29.7 1,300 1,155 12.6- Employee expenses 239 248 (3.8) 172 38.8 792 715 10.8

- Other Opex 145 148 (2.1) 124 17.2 508 440 15.4

Pre-provision Profit 586 401 46.3 458 28.0 1,739 1,528 13.8Provisions & Contingencies 228 342 (33.3) 103 120.6 706 562 25.6- Provisions for NPAs 109 143 (23.8) 95 15.0 374 262 42.6

- Provisions for Investments (22) 98 (122.4) (34) (34.5) 54 104 (48.5)

- Other Provisions 141 101 39.8 42 234.3 279 196 42.5

PBT 358 59 508.9 355 1.0 1,032 966 6.9Provision for Tax 169 (67) (352.6) 116 45.7 222 163 36.2

PAT 189 126 50.6 239 (20.7) 810 803 0.9Effective Tax Rate (%) 47.2 (113.7) 16085bp 32.7 1448bp 21.5 16.9 463bp

Source: Company, Angel Research

Exhibit 2:1QFY2014 Actual vs. Angel estimatesParticulars (` cr) Actual Estimates % chgNet interest income 605 590 2.4

Non-interest income 366 207 76.4

Operating income 970 798 21.6Operating expenses 384 334 15.0

Pre-prov. profit 586 464 26.4

Provisions & cont. 228 240 (5.1)

PBT 358 223 60.5

Prov. for taxes 169 58 191.1

PAT 189 165 14.6Source: Company, Angel Research

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

3/11


August 3, 2013 3

Exhibit 3:1QFY2014 performance analysis (standalone)Particulars 1QFY14 4QFY13 % chg (qoq) 1QFY13 % chg (yoy)Balance sheetAdvances (` cr) 64,975 65,781 (1.2) 59,642 8.9Deposits (`cr) 94,359 97,207 (2.9) 79,736 18.3

Credit-to-Deposit Ratio (%) 68.9 67.7 119bp 74.8 (594)bp

Current deposits (`cr) 5,509 6,755 (18.4) 5,282 4.3

Savings deposits (`cr) 20,845 21,283 (2.1) 19,361 7.7

CASA deposits (`cr) 26,354 28,038 (6.0) 24,643 6.9

CASA ratio (%) 27.9 28.8 (91)bp 30.9 (298)bp

CAR (%) 11.1 11.0 9bp 12.4 (123)bp

Tier 1 CAR (%) 7.3 7.3 2bp 8.3 (105)bp

Profitability Ratios (%)Cost of deposits 7.6 7.7 (11)bp 7.7 (9)bp

Yield on advances 11.3 11.3 1bp 12.0 (61)bp

Reported NIM 2.6 2.5 9bp 3.1 (51)bp

Cost-to-income ratio 39.6 49.7 (1017)bp 39.3 32bp

Asset qualityGross NPAs (`cr) 1,757 1,452 21.0 1,076 63.3

Gross NPAs (%) 2.7 2.2 51bp 1.8 90bp

Net NPAs (` cr) 1,114 917 21.5 597 86.6

Net NPAs (%) 1.7 1.4 35bp 1.0 73bp

Provision Coverage Ratio (%) 68.1 69.6 (144)bp 75.6 (748)bp

Slippage ratio (%) 2.5 2.8 (35)bp 1.4 113bp

Loan loss prov. to avg. assets (%) 0.4 0.5 (12)bp 0.4 (3)bp


Advance growth remains moderate; NIM increases qoq

During 1QFY2014, the banks advance book grew at a moderate pace of

8.9% yoy, while deposits grew at a healthy pace of 18.3% yoy. Moderate loan

growth was primarily aided by strong growth in agriculture, MSME and retail

advances, which increased by 29.4%, 27.7% and 25.7% yoy, respectively. Going

forward, the Management has guided for a 16% yoy growth in its advances and

deposits for FY2014.

CASA deposits grew at a moderate pace of 6.9% yoy, as current deposits grew at a

muted pace of 4.3% yoy, while savings deposits too grew at a subdued pace of

7.7% yoy. The banks CASA ratio has been trending downwards and even during

the quarter it declined by 91bp qoq to 27.9%. Going ahead, the Management

targets to increase its CASA ratio to a level of 30-32% by FY2014.

Cost of deposits declined by 11bp qoq to 7.6%, aided by reduction in high-cost

bulk deposits. Yield on advances remained stable sequentially at 11.3%. Yield

on investments increased by 7bp qoq to 7.6%. The Reported NIM increased

9bp qoq to 2.5%.

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

4/11


August 3, 2013 4

Exhibit 4:Advance growth moderates


Exhibit 5:CASA ratio lower sequentially


Exhibit 6:Cost of deposits declined 11bp qoq...


Exhibit 7:...hence, NIM improved sequentially by 9bp


Moderate growth in non-interest income (excl. treasury) onlower CEB; Strong performance on Treasury front

During 1QFY2014, the non-interest income (excluding treasury) grew at a

moderate pace of 7.2% yoy to `117cr, on back of subdued CEB income

performance (8.2% yoy decline to `56cr). Recoveries from written off accounts

came in at `11cr compared to `6cr in 1QFY2013, while Forex income grew

strongly at 31.8% yoy to `29cr. Overall non-interest income for the bank grew by

158.0% yoy to `366cr, mostly due to strong performance on the treasury front

(`248cr in 1QFY2014 compared to `32cr in 1QFY2013).

Asset quality deteriorates sequentially

The bank witnessed significant asset quality pressures during the quarter, as its

gross and net NPA levels increased sequentially by 21.0% and 21.5%, respectively.

The Gross NPA ratio as of 1QFY2014 stands at 2.7% (2.2% in 4QFY2013), while

net NPA ratio stands at 1.7% (1.4% in 4QFY2013). Slippages during the quarter

came in at `408cr (annualized slippage rate of 2.5%), compared to `401cr in

4QFY2013 (annualized slippage rate of 2.8%). Of incremental slippages, anaccount from the IT sector (at `98cr) was the largest.. Recoveries and upgrades

came in sequentially lower at `103cr compared to `146cr in 4QFY2013. PCR

(including technical write-offs) dipped by 144bp sequentially to 68.1%.

39.1

37.8

30.5

16.0

8.9

26.1

30.1

24.2

26.0

18.3

74.8

70.4

73.7

67.7

68.9

64.0

66.0

68.0

70.0

72.0

74.0

76.0

-

10.0

20.0

30.0

40.0

50.0

1QFY13 2QFY13 3QFY13 4QFY13 1QFY14

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

30.9

31.9

31.0

28.8

27.9

10.8

16.4

10.3

5.46.9

-

4.0

8.0

12.0

16.0

20.0

24.0

26.0

28.0

30.0

32.0

34.0


CASA ratio CASA yoy growth (%, RHS)

7.687.64

7.757.70

7.59

7.00

7.25

7.50

7.75

8.00


(%)

3.06

2.86 2.88

2.46

2.55

2.30

2.60

2.90

3.20


(%)

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

5/11


August 3, 2013 5

As of 1QFY2014, the banks outstanding restructured book stood at ~`6,538cr

(as compared to `5,423cr in 4QFY2013). Going ahead, the Management has

guided for advances worth `800cr to be in the restructuring pipeline.

Exhibit 8:Slippage ratio remain elevated


Exhibit 9:NPA ratios higher sequentially


Exhibit 10:Cost ratios stable yoy


Exhibit 11:Steady network expansioncontinues


1.4

2.0

1.7

2.8

2.5

0.4

0.3

0.3

0.5

0.4

-

0.2

0.4

0.6

-

0.5

1.0

1.5

2.0

2.5

3.0


Slippages (%) Credit cost (%, RHS)

1.8

2.0

2.1

2.2

2.7

1.0

1.2

1.3

1.4

1.7

75.672.5

70.669.6

68.1

60.0

65.0

70.0

75.0

80.0

-

0.5

1.0

1.5

2.0

2.5


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

39.3

39.9

41.7

49.7

39.6

1.3

1.2 1.2

1.4

1.4

1.1

1.2

1.3

1.4

1.5

-

15.0

30.0

45.0

60.0


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

1,

358

1,

417

1,

431

1,

464

1,

492

545 561576

620693

-

100

200

300

400

500

600

700

800

1,250

1,300

1,350

1,400

1,450

1,500

1,550


Branches ATMs (RHS)

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

6/11


August 3, 2013 6

Outlook and valuation

Dena Bank has a structurally strong CASA franchise (majority of the branches

being in rural and semi-urban areas of CASA rich western India), aiding a better

NIM than peers. The bank has witnessed a marked decline in its CASA ratio from

35.2% as of 1QFY2012 to 27.9% as of 1QFY2014, which can be attributed to

a) muted performance on CASA deposits front (CAGR of 8.8%) and b) strong

traction witnessed in term deposits (CAGR of 28.8%) required to fuel its aggressive

loan book growth.

Despite challenging macro fundamentals, the bank has aggressively grown its loan

book over the last couple of years. We are cautious on the banks asset quality

performance, in-line with the sectoral outlook, post the recent macro developments in

midst of overall weak macro fundamentals. Moreover, the bank plans to raise capital

to the tune of `2,180cr, which is likely to be at book-dilutive valuations. Hence, werecommend a Neutral rating on the stock.Exhibit 12:Key assumptionsParticulars (%) Earlier estimates Revised estimatesFY2014 FY2015 FY2014 FY2015Credit growth 15.0 15.0 15.0 15.0

Deposit growth 8.0 10.0 6.0 10.0

CASA ratio 29.5 30.3 29.5 30.3

NIM 2.3 2.4 2.2 2.4

Other income growth 5.4 4.1 21.9 (11.4)

Growth in staff expenses 15.0 13.0 15.0 12.0Growth in other expenses 13.0 13.0 15.0 12.0

Slippages 2.0 1.6 2.0 1.8

Coverage ratio 70.0 72.5 68.0 72.0

Source: Angel Research

Exhibit 13:Change in estimatesParticulars (` cr)

FY2014E FY2015EEarlierestimates Revisedestimates Var. (%) Earlierestimates Revisedestimates Var. (%)

NII 2,565 2,508 (2.2) 2,904 2,823 (2.8)Non-interest income 691 799 15.7 719 708 (1.6)

Operating income 3,255 3,307 1.6 3,623 3,531 (2.6)Operating expenses 1,484 1,495 0.7 1,677 1,674 (0.2)

Pre-prov. profit 1,771 1,812 2.3 1,946 1,857 (4.6)Provisions & cont. 729 884 21.3 625 709 13.4

PBT 1,042 929 (10.9) 1,321 1,148 (13.1)

Prov. for taxes 271 316 16.5 449 390 (13.1)

PAT 771 613 (20.5) 872 758 (13.1)Source: Angel Research

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

7/11


August 3, 2013 7

Exhibit 14:P/ABV Band


Exhibit 15:Recommendation summaryCompany Reco. CMP(`) Tgt. price(`) Upside(%) FY2015EP/ABV (x) FY2015ETgt. P/ABV (x) FY2015EP/E (x) FY2013-15EEPS CAGR (%) FY2015ERoA (%) FY2015ERoE (%)AxisBk Buy 1,104 1,302 18 1.2 1.4 7.0 19.1 1.6 18.1

FedBk Neutral 350 - - 0.8 - 6.7 2.9 1.0 12.3

HDFCBk Buy 631 745 18 3.0 3.5 14.0 26.3 1.9 22.8

ICICIBk* Buy 887 1,068 20 1.3 1.5 9.2 15.8 1.6 15.4

SIB Neutral 21 - - 0.8 - 5.0 5.7 0.9 16.2

YesBk Neutral 308 - - 1.3 - 6.2 16.9 1.3 22.8

AllBk Neutral 67 - - 0.3 - 2.2 12.6 0.6 12.4

AndhBk Reduce 58 51 (11) 0.4 0.4 3.5 (15.1) 0.5 10.0

BOB Neutral 488 - - 0.5 - 3.9 8.3 0.8 14.2

BOI Neutral 170 - - 0.4 - 2.7 16.2 0.7 13.9

BOM Neutral 40 - - 0.4 - 3.1 10.0 0.6 15.3

CanBk Neutral 242 - - 0.4 - 2.8 15.4 0.8 14.2

CentBk Reduce 57 52 (8) 0.6 0.5 3.6 40.1 0.5 12.8

CorpBk Neutral 280 - - 0.3 - 2.9 2.3 0.7 13.5

DenaBk Neutral 47 - - 0.3 - 2.2 (3.3) 0.6 13.2IDBI# Neutral 60 - - 0.3 - 2.7 25.1 0.8 13.3

IndBk Neutral 70 - - 0.3 - 2.1 (4.2) 0.8 12.4IOB Neutral 40 - - 0.3 - 2.6 57.5 0.5 10.5

J&KBk Neutral 1,099 - - 0.8 - 5.4 (3.5) 1.3 16.3

OBC Neutral 137 - - 0.3 - 2.2 17.0 0.8 12.9

PNB Neutral 524 - - 0.5 - 3.2 10.8 1.0 15.7

SBI* Accumulate 1,681 1,930 15 0.9 1.1 5.9 17.5 1.0 17.0

SynBk Neutral 75 - - 0.4 - 3.2 (16.0) 0.6 12.8

UcoBk Neutral 58 - - 0.5 - 3.7 66.4 0.6 13.5

UnionBk Neutral 117 - - 0.4 - 2.9 6.2 0.6 13.4

UtdBk Neutral 33 - - 0.2 - 1.7 54.6 0.6 14.7

VijBk Neutral 38 - - 0.4 - 4.2 (0.4) 0.4 9.8

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

0

50

10 0

15 0

20 0

25 0

Mar-03

Nov-03

Jul-04

Mar-05

Nov-05

Jul-06

Mar-07

Nov-07

Jul-08

Mar-09

Nov-09

Jul-10

Mar-11

Nov-11

Jul-12

Mar-13

Nov-13

Price (`) 0.3x 0.6x 0.9x 1.2x 1.5x

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

8/11


August 3, 2013 8

Company Background

Dena Bank is a mid-sized PSU bank, with a balance sheet size of

~`1,10,000cr. The bank has a branch network of 1,492 branches and 693

ATMs. The bank's branches are mainly concentrated in the rural and semi-urban areas (~58% of overall branches) and has a major presence in the state

of Gujarat.

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

9/11


August 3, 2013 9

Income statement (standalone)

Y/E March (` cr) FY10 FY11 FY12 FY13E FY14E FY15ENII 1,100 1,763 2,101 2,383 2,508 2,823- YoY Growth (%) 3.3 60.3 19.1 13.4 5.2 12.6Other Income 589 534 582 655 799 708- YoY Growth (%) 36.9 (9.3) 9.1 12.6 21.9 (11.4)

Operating Income 1,689 2,297 2,683 3,039 3,307 3,531- YoY Growth (%) 13.0 36.0 16.8 13.2 8.8 6.8

Operating Expenses 848 1,073 1,155 1,300 1,495 1,674- YoY Growth (%) 10.4 26.6 7.6 12.6 15.0 12.0

Pre - Provision Profit 841 1,224 1,528 1,739 1,812 1,857- YoY Growth (%) 15.7 45.6 24.9 13.8 4.2 2.4

Prov. & Cont. 154 326 563 706 884 709- YoY Growth (%) (16.8) 111.7 72.8 25.6 25.1 (19.8)

Profit Before Tax 687 898 966 1,032 929 1,148- YoY Growth (%) 26.8 30.8 7.5 6.9 (10.0) 23.6

Prov. for Taxation 176 287 163 222 316 390- as a % of PBT 25.6 31.9 16.9 21.5 34.0 34.0

PAT 511 612 803 810 613 758- YoY Growth (%) 21.0 19.6 31.3 0.9 (24.4) 23.6

Balance sheet (standalone)

Y/E March (` cr) FY10 FY11 FY12 FY13E FY14E FY15EShare Capital 287 333 350 350 350 350Reserve & Surplus 2,315 3,323 4,127 5,414 5,925 6,540

Deposits 51,344 64,210 77,167 97,207 103,040 113,344

Growth (%) 19.3 25.1 20.2 26.0 6.0 10.0

Borrowings 46 176 2,365 6,048 3,521 3,864

Tier 2 Capital 1,516 1,516 1,516 2,366 2,307 2,249

Other Liab. & Prov. 2,079 1,281 1,863 2,056 2,215 2,452

Total Liabilities 57,587 70,838 87,388 113,440 117,357 128,799Cash balances 4,355 4,721 5,195 8,644 4,637 5,100

Bank balances 759 687 356 1,177 1,760 1,932

Investments 15,694 18,769 23,028 34,343 33,704 33,148

Advances 35,462 44,828 56,693 65,781 73,675 84,726

Growth (%) 22.8 26.4 26.5 16.0 12.0 15.0

Fixed Assets 407 404 407 1,112 1,116 1,188

Other Assets 908 1,429 1,710 2,383 2,465 2,705

Total Assets 57,587 70,838 87,388 113,440 117,357 128,799Growth (%) 18.8 23.0 23.4 29.8 3.5 9.8

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

10/11


August 3, 2013 10

Ratio Analysis (standalone)

Y/E March FY10 FY11 FY12 FY13E FY14E FY15ENIMs 2.1 2.8 2.7 2.4 2.2 2.4

Cost to Income Ratio 50.2 46.7 43.0 42.8 45.2 47.4RoA 1.0 1.0 1.0 0.8 0.5 0.6

RoE 23.5 20.9 20.7 17.6 11.9 13.2

B/S ratios (%)CASA Ratio 36.0 35.5 34.6 29.0 29.5 30.3

Credit/Deposit Ratio 69.1 69.8 73.5 67.7 71.5 74.8

CAR 12.8 13.4 11.5 11.0 11.4 11.2

- Tier I 8.2 9.8 8.9 7.3 7.8 7.9

Asset Quality (%)Gross NPAs 1.8 1.9 1.7 2.2 2.9 3.3

Net NPAs 1.2 1.2 1.0 1.4 1.7 1.5

Slippages 2.2 2.1 1.6 2.0 2.0 1.8

Loan Loss Prov./Avg. Assets 0.2 0.4 0.3 0.4 0.5 0.4

Provision Coverage 78.6 74.6 75.5 69.6 68.0 72.0

Per Share Data (`)EPS 17.8 18.3 22.9 23.1 17.5 21.6

ABVPS 83.4 103.5 122.6 135.6 147.0 168.6

DPS 2.0 2.2 3.0 4.7 2.5 3.5

Valuation RatiosPER (x) 2.8 2.7 2.2 2.1 2.8 2.3

P/ABVPS (x) 0.6 0.5 0.4 0.4 0.3 0.3

Dividend Yield 4.0 4.4 6.1 9.5 5.1 7.1

DuPont Analysis (%)NII 2.1 2.7 2.7 2.4 2.2 2.3

(-) Prov. Exp. 0.3 0.5 0.7 0.7 0.8 0.6

Adj. NII 1.8 2.2 1.9 1.7 1.4 1.7

Treasury 0.3 0.0 0.0 0.2 0.2 0.1

Int. Sens. Inc. 2.1 2.3 2.0 1.8 1.6 1.8

Other Inc. 0.8 0.8 0.7 0.5 0.5 0.5

Op. Inc. 2.9 3.1 2.7 2.3 2.1 2.3

Opex 1.6 1.7 1.5 1.3 1.3 1.4

PBT 1.3 1.4 1.2 1.0 0.8 0.9Taxes 0.3 0.4 0.2 0.2 0.3 0.3

RoA 1.0 1.0 1.0 0.8 0.5 0.6Leverage (x) 24.4 21.9 20.4 21.8 22.3 21.5

RoE 23.5 20.9 20.7 17.6 11.9 13.2

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

11/11


August 3, 2013 11

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

DISCLAIMERThis 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 shouldmake such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of thecompanies referred to in this document (including the merits and risks involved), and should consult their own advisors to determinethe merits and risks of such an investment.

Angel Broking Pvt. Limited, 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. Limited or any of its affiliates/ group companies shall not be in any wayresponsible 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. Limited 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. Limited 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. Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment bankingor other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report orin the past.

Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise fromor in connection 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. Limited and its affiliates mayhave investment positions in the stocks recommended in this report.

Disclosure of Interest Statement Dena 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

Dena Bank, 1Q FY 2014

Documents

Transcript of Dena Bank, 1Q FY 2014