2QFY2012 Result Update | Banking

November 9, 2011

Vijaya Bank
Performance Highlights

Particulars (` cr) NII Pre-prov. profit PAT

Source: Company, Angel Research;

NEUTRAL
CMP Target Price
% chg (qoq) 21.4 4.4 181.8 2QFY11 487 296 144 % chg (yoy) 5.4 14.8 41.0

`59 -

2QFY12 513 340 204

1QFY12 423 326 72

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 2,765 1.4 115/52 424,665 10 17,362 5,221 VJBK.BO VJYBK@IN

For 2QFY2012, Vijaya Bank reported a decent set of numbers, which were considerably higher than our expectations partly on account of lower effective tax rate of 16.5%. Overall, results surprised positively with the absolute amount of gross and net NPAs declining sequentially. We maintain our Neutral stance on the stock. Business growth momentum sustained; slippages elevated but more than offset by recoveries and upgrades: For 2QFY2012, the banks advances growth was healthy on a yoy basis at 36.4% and deposits growth was also ahead of peers at 24.1% yoy. CASA ratio as of 2QFY2012 dipped by 105bp qoq and 275bp yoy to 23.0%. Reported NIM for the quarter improved by 40bp qoq on the back of a 51bp qoq expansion in yield on advances. Considering the banks weak deposit franchise, cost of deposits increased by 36bp qoq to 7.6%. Non-interest income declined by 10.2% yoy, primarily on account of a 75% yoy dip in treasury income. On the asset-quality front, though the annualized slippage ratio came off from 5.0% witnessed in 1QFY2012, it remained elevated at 3.7%. However, aggressive recoveries and stronger upgrades led to a 4.7% and 8.6% qoq decline in gross and net NPAs, respectively. Consequently, gross and net NPA ratios improved to 2.5% (from 2.8% in 1QFY2012) and 1.4% (from 1.7% in 1QFY2012), respectively. Provision coverage ratio (including technical write-offs) improved by 266bp qoq to 66.1%. Outlook and valuation: During 2QFY2012, Vijaya Banks asset-quality concerns persisted with slippages remaining elevated. However, in line with the managements guidance, the bank did witness a rise in recoveries and upgrades leading to a sequential decline in gross and net NPAs. Despite this, RoA is likely to remain at low levels of ~0.4-0.5% for FY2012 and FY2013. Currently, the stock is trading at 0.7x FY2013E ABV, which is slightly expensive compared to its peers which have better return ratios. Hence, we remain Neutral on the stock.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 57.7 8.0 5.2 25.8

Abs. (%) Sensex Vijaya Bank

3m 3.0 (1.8)

1yr (17.1) (48.7)

3yr 74.2 107.1

Key financials
Y/E March (` cr) NII % chg Net profit % chg NIM (%) EPS (`) P/E (x) P/ABV (x) RoA (%) RoE (%)
Source: Company, Angel Research

FY2010 1,449 28.8 507 93.3 2.3 10.8 5.4 1.0 0.7 18.8

FY2011 1,947 34.3 524 3.3 2.6 8.8 6.7 0.9 0.5 13.8

FY2012E 1,981 1.7 540 3.0 2.3 9.1 6.5 0.8 0.5 12.3

FY2013E 2,136 7.8 558 3.4 2.2 9.4 6.2 0.7 0.4 11.7

Vaibhav Agrawal
022 3935 7800 Ext: 6808 [email protected]

Shrinivas Bhutda
022 3935 7800 Ext: 6845 [email protected]

Varun Varma
022 3935 7800 Ext: 6847 [email protected]

Please refer to important disclosures at the end of this report

Vijaya Bank | 2QFY2012 Result Update

Exhibit 1: 2QFY2012 performance

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 - Recoveries from written off a/cs - 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 (%) Source: Company, Angel Research 2QFY12 1QFY12 % chg (qoq) 2QFY11 % chg (yoy) 1,993 1,503 458 32 1,479 513 106 100 21 6 21 58 619 279 165 114 340 96 59 38 (1) 244 40 204 16.5 1,785 1,331 446 8 1,362 423 168 114 89 54 25 591 266 169 96 326 231 154 77 94 22 72 23.3 11.6 12.9 2.7 (88.9) 314.1 8.6 21.4 (37.3) (12.9) (76.4) (88.9) (16.0) 4.7 5.0 (2.5) 18.3 4.4 (58.5) (61.7) (50.6) 158.8 83.4 181.8 (681)bp 1,403 996 400 7 916 487 118 94 21 24 21 52 605 309 209 100 296 102 126 (23) (1) 194 50 144 25.7 42.0 50.8 14.6 (80.0) 376.2 61.5 5.4 (10.2) 6.4 (75.0) 11.6 2.3 (9.6) (21.0) 14.1 14.8 (5.6) (53.2) 25.5 (19.3) 41.0 (919)bp

Exhibit 2: 2QFY2012 Actual vs. Angel estimates

Particulars (` cr) Net interest income Non-interest income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT
Source: Company, Angel Research

Actual 513 106 619 279 340 96 244 40 204

Estimates 434 120 554 323 232 106 125 31 94

% chg 18.2 (12.0) 11.7 (13.5) 46.7 (9.7) 94.6 28.8 116.6

November 9, 2011

Vijaya Bank | 2QFY2012 Result Update

Exhibit 3: 2QFY2012 performance analysis

Particulars 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 Reported NIM Cost-to-income ratio Asset quality Gross NPAs (` cr) Gross NPAs (%) Net NPAs (` cr) Net NPAs (%) Provision coverage ratio (%) Slippage ratio (%) Loan loss provision to avg. assets (%)
Source: Company, Angel Research

2QFY12 1QFY12 %chg (qoq) 2QFY11 %chg (yoy) 53,679 77,802 69.0 4,596 13,261 17,857 23.0 12.6 9.2 7.6 11.8 2.7 45.1 1,381 2.5 761 1.4 66.1 3.7 0.3 51,100 76,000 67.2 18,240 24.0 13.0 7.3 11.3 2.3 45.0 1,449 2.8 833 1.7 63.4 5.0 0.7 5.0 2.4 176bp (2.1) (105)bp (41)bp 36bp 51bp 40bp 15bp (4.7) (29)bp (8.6) (23)bp 266bp (129)bp (47)bp 39,343 62,668 62.8 4,306 11,800 16,106 25.7 14.3 9.7 5.6 10.2 3.2 51.1 970 2.4 521 1.3 68.8 2.3 0.7 36.4 24.1 621bp 6.7 12.4 10.9 (275)bp (162)bp (47)bp 198bp 162bp (44)bp (597)bp 42.3 10bp 46.2 10bp (269)bp 148bp (43)bp

November 9, 2011

Vijaya Bank | 2QFY2012 Result Update

Business growth momentum sustained; NIM rebounds by 40bp qoq

For 2QFY2012, the banks advances growth was healthy on a yoy basis at 36.4% and deposits growth was also ahead of peers at 24.1% yoy. CASA deposits declined sequentially (by 2.1%) for the second straight quarter; increased by muted 10.9% yoy. Consequently, CASA ratio as of 2QFY2012 dipped by 105bp qoq and 275bp yoy to 23.0%.

Exhibit 4: Business growth remains strong

Adv. qoq chg (%) 20.0 15.0 10.0 Dep. qoq chg (%)

Exhibit 5: CD ratio continues to expand

(%) 70.0 68.0 66.0 66.6 66.5 67.2 69.0

6.4 6.6

4.9 3.8

(5.0) (10.0)

(6.2) (0.0)

5.0 2.4

5.0

16.4 9.7

64.0 62.0 60.0 58.0

62.8

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

Source: Company, Angel Research

Source: Company, Angel Research

Reported NIM for the quarter improved by 40bp qoq on the back of a 51bp qoq expansion in yield on advances. Considering the banks weak deposit franchise, cost of deposits increased rather sharply by 36bp qoq to 7.6%.

Exhibit 6: Uptick in yield on advances...

(%) 12.00 11.50 11.00 10.50 10.00 9.50 9.00 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 10.20 10.32 10.48 11.31 11.82

Exhibit 7: ...leads to rise in reported NIM

(%) 3.50 3.20 2.90 2.60 2.30 2.00 1.70 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 3.44 3.16 2.82 2.32 2.72

Source: Company, Angel Research

Source: Company, Angel Research

Other income declines on lower treasury gains

For 2QFY2012, non-interest income declined by 10.2% yoy, primarily due to a 75% yoy dip in treasury income. Fee income and recoveries from written-off accounts were virtually flat on a yoy basis. We are building in core fee income growth of 17% and 14% for FY2012 and FY2013, respectively.

Slippages remain elevated but offset by recoveries and upgrades

On the asset-quality front, though the annualized slippage ratio came off from the 5.0% witnessed in 1QFY2012, it remained elevated at 3.7%. However, aggressive recoveries and stronger upgrades led to a 4.7% qoq decline in gross NPAs. Net
November 9, 2011

Vijaya Bank | 2QFY2012 Result Update

NPAs also declined by 8.6% qoq. Consequently, gross and net NPA ratios improved to 2.5% (from 2.8% in 1QFY2012) and 1.4% (from 1.7% in 1QFY2012), respectively. Provision coverage ratio (including technical write-offs) improved by 266bp qoq to 66.1%. The bank had completed the switchover to system-based NPA recognition platform in 1QFY2012 itself. We were expecting recoveries and upgrades to pick up in 2QFY2012, and (in-line with our expectations) they did witness a rise during the quarter.

Exhibit 8: Asset quality improves a bit

Gross NPAs (%) 3.0 2.5 2.0 1.5 1.0 68.8 67.8 63.7 63.4 Net NPAs (%) PCR (%, RHS) 66.1 70.0 60.0 50.0 40.0

2.4

1.3

2.5

1.4

2.6

1.5

2.8

1.7

2.5

2QFY11 3QFY11 4QFY11 1QFY12 2QFY12

1.4

0.5

30.0

Source: Company, Angel Research

Cost ratios remain under control

Operating expenses declined by 9.6% yoy, primarily due to a 21.0% yoy decrease in employee expenses. The sharp fall in employee expense on a yoy basis was likely due to a high base effect because of pension costs related to retired employees. However, with overall operating expenses under control, cost ratios remained stable sequentially.

Exhibit 9: Cost-to-income ratio improves by ~600bp yoy

Cost-to-income ratio (%) 90.0 2.5 Opex to average assets (%, RHS) 3.0 2.4 60.0 1.7 1.7 1.3 30.0 1.3 1.8 1.2

51.1

48.8

82.3

45.0

2QFY11 3QFY11 4QFY11 1QFY12 2QFY12

45.1

0.6 -

Source: Company, Angel Research

November 9, 2011

Vijaya Bank | 2QFY2012 Result Update

Investment concerns
Unfavorable deposit mix
Vijaya Banks CASA ratio as of 2QFY2012 stood at 23.0%, which is on the lower side. In fact, with the persistence of higher FD interest rates, the banks CASA ratio has been witnessing a declining trend over the past few quarters. The banks CASA ratio has fallen from 25.7% in 2QFY2011 to 23.0% as of 2QFY2012. The bank also has a high proportion of bulk deposits at ~33% as of FY2011. Owing to an unfavorable deposit mix and high prevailing interest rates, we expect the banks NIM to remain under pressure in the short term. The only positive surprise on the NIM front can come in the form of recognition of interest income, which was reversed at the time of switchover to system-based NPA recognition platform.

Lower return ratios

The banks RoA and RoE at 0.5% and 13.8% in FY2011 are on the lower side. This is mainly on account of lower other income excluding treasury (at 0.55% of average assets as of FY2011) and high operating expenses (at 1.65% of average assets excluding pension-related provisions with respect to retired employees as of FY2011). The bank is also facing asset-quality pressures, as evident in its higher slippages (5.0% in 1QFY2012 and 3.7% for 2QFY2012) and lower provision coverage ratio of 66.1% as of 2QFY2012.

Outlook and valuation

We have tweaked our estimates to factor in the better-than-expected NIM trajectory witnessed in 2QFY2012, a lower effective tax rate and a slightly lower other income growth. The sustainability of cost ratios at relatively lower levels has led us to cut our operating expenses forecast by ~6% each for FY2012 and FY2013. In spite of the upward revision in our earnings forecasts, the CAGR growth in EPS is expected to be a muted 3.9% over FY2011-13E. During 2QFY2012, Vijaya Banks asset-quality concerns persisted with slippages remaining elevated. However, in line with the managements guidance, the bank did witness a rise in recoveries and upgrades leading to a sequential decline in gross and net NPAs. Despite this, RoA is likely to remain at low levels of ~0.40.5% for FY2012 and FY2013. Currently, the stock is trading at 0.7x FY2013E ABV, which is slightly expensive compared to its peers which have better return ratios. Hence, we maintain our Neutral recommendation on the stock.

November 9, 2011

Vijaya Bank | 2QFY2012 Result Update

Exhibit 10: 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 FY2012 18.0 15.0 24.9 2.1 4.7 (17.0) 10.0 2.6 63.0 FY2013 21.0 14.0 24.8 2.1 16.1 12.0 13.0 2.3 63.0

Revised estimates FY2012 21.0 14.0 25.1 2.3 2.8 (25.0) 10.0 2.5 68.0 FY2013 18.0 14.0 25.0 2.2 14.0 12.0 13.0 2.2 68.0

Exhibit 11: Change in estimates

FY2012 Particulars (` cr) NII Non-interest income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT
Source: Angel Research

FY2013 Earlier estimates 2,022 648 2,670 1,465 1,205 466 739 240 499 Revised Var. (%) estimates 2,136 625 2,761 1,374 1,387 561 826 268 558 5.7 (3.6) 3.4 (6.2) 15.1 20.2 11.8 11.8 11.8

Earlier estimates 1,775 558 2,334 1,304 1,030 506 524 131 393

Revised Var. (%) estimates 1,981 548 2,529 1,223 1,306 605 701 161 540 11.6 (1.8) 8.4 (6.2) 26.8 19.6 33.8 23.1 37.3

Exhibit 12: P/ABV band

Price (`) 140 120 100 80 60 40 20 0 0.4x 0.7x 1x 1.3x 1.6x

Oct-02

Feb-05

Oct-09

May-03

Nov-06

May-10

Dec-03

Dec-10

Mar-02

Aug-08

Source: Company, Angel Research

November 9, 2011

Mar-09

Feb-12

Sep-05

Jun-07

Jan-08

Jul-04

Apr-06

Jul-11

Vijaya Bank | 2QFY2012 Result Update

Exhibit 13: Recommendation summary

Company AxisBk FedBk HDFCBk ICICIBk* SIB YesBk AllBk AndhBk BOB BOI BOM CanBk CentBk CorpBk DenaBk IDBI IOB J&KBk OBC PNB SBI* SynBk UcoBk UnionBk UtdBk VijBk
#

Reco. Buy Accumulate Neutral Buy Accumulate Buy Neutral Neutral Buy Accumulate Accumulate Accumulate Neutral Buy Neutral Neutral Accumulate Accumulate Neutral Neutral Accumulate Buy Buy Neutral Accumulate Buy Neutral

CMP (`) 1,112 403 477 862 23 307 166 114 789 325 49 477 100 424 77 111 213 101 817 297 968 1,863 103 71 224 70 59

Tgt. price (`) 1,414 444 1,114 24 355 918 346 55 523 498 227 107 1,106 2,194 123 245 82 -

Upside (%) 27.2 10.1 29.2 5.3 15.9 16.3 6.4 13.0 9.8 17.4 6.5 6.2 14.2 17.8 19.3 9.2 17.1 -

FY2013E P/ABV (x) 1.8 1.1 3.2 1.6 1.1 1.9 0.8 0.8 1.1 1.0 0.6 0.9 0.7 0.7 0.6 0.7 0.8 0.6 0.9 0.7 1.1 1.5 0.7 0.8 0.8 0.6 0.7

FY2013E Tgt P/ABV (x) 2.3 1.2 2.0 1.2 2.3 1.3 1.0 0.7 1.0 0.8 0.9 0.7 1.3 1.7 0.8 0.9 0.7 -

FY2013E P/E (x) 9.7 8.2 16.6 12.7 6.7 10.2 4.4 5.1 5.6 5.6 4.2 5.6 5.1 4.3 3.6 5.2 4.8 4.0 5.1 5.2 5.7 8.0 4.5 4.2 5.1 4.1 6.2

FY2011-13E EPS CAGR (%) 17.7 19.5 30.5 23.3 15.6 19.9 12.2 (1.0) 14.2 13.4 38.1 (3.0) (16.1) 1.5 7.5 12.3 7.4 20.0 12.0 5.1 9.9 33.9 11.8 15.9 5.2 13.4 3.9

FY2013E RoA (%) 1.5 1.2 1.7 1.4 1.0 1.3 1.0 0.9 1.2 0.7 0.6 0.9 0.5 0.8 0.8 0.7 1.3 0.6 1.3 0.8 1.1 0.9 0.7 0.7 0.8 0.6 0.4

FY2013E RoE (%) 20.0 14.0 20.9 15.4 18.2 20.8 18.4 15.6 20.7 16.9 16.5 17.2 13.9 16.6 16.4 14.0 19.4 15.9 17.8 14.1 20.6 20.0 16.3 16.7 17.0 14.1 11.7

IndBk

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

November 9, 2011

Vijaya Bank | 2QFY2012 Result Update

Income statement
Y/E March (` cr)
NII - 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 (%)

FY07 1,072 10.2 336 (8.9) 1,408 5.0 650 4.3 758 5.5 410 (23.9) 348 93.8 16 4.7 331 161.1

FY08 830 (22.6) 532 58.3 1,362 (3.3) 701 7.9 661 (12.8) 383 (6.6) 278 (20.2) (84) (30.1) 361 9.0

FY09 1,125 35.5 699 31.3 1,824 33.9 925 31.9 899 36.0 357 (6.8) 541 95.1 279 51.5 262 (27.3)

FY10 1,449 28.8 679 (2.8) 2,129 16.7 1,072 15.9 1,057 17.6 356 (0.4) 701 29.5 194 27.6 507 93.3

FY11 1,947 34.3 533 (21.5) 2,480 16.5 1,433 33.8 1,047 (1.0) 439 23.3 608 (13.3) 84 13.8 524 3.3

FY12E 1,981 1.7 548 2.8 2,529 2.0 1,223 (14.7) 1,306 24.8 605 37.9 701 15.3 161 23.0 540 3.0

FY13E 2,136 7.8 625 14.0 2,761 9.2 1,374 12.4 1,387 6.2 561 (7.3) 826 17.9 268 32.4 558 3.4

Balance sheet
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 (%) FY07 434 1,463 37,605 35.7 198 950 1,708 42,358 3,400 1,670 12,018 24,224 45.4 186 859 42,358 34.3 FY08 434 2,026 27.5 1,919 1,650 2,204 5,662 436 FY09 934 2,216 13.7 619 1,650 2,428 5,730 1,942 FY10 934 2,542 61,932 13.6 289 1,650 2,877 70,222 4,100 1,450 21,107 41,522 16.8 493 1,551 70,222 12.5 FY11 1,673 3,144 73,248 18.3 525 1,500 1,600 81,691 4,882 542 25,139 48,719 17.6 486 1,924 81,691 16.4 FY12E 1,673 3,463 83,503 14.0 1,409 1,815 2,051 5,428 1,878 24,910 58,943 21.0 542 2,212 15.0 FY13E 1,673 3,799 95,194 14.0 1,601 2,142 2,293 6,188 2,134 25,716 69,553 18.0 597 2,513 13.6

47,952 54,535

56,184 62,382

93,913 106,701

16,617 17,388 31,689 35,468 30.8 508 1,273 32.6 11.9 493 1,361 11.0

56,184 62,382

93,913 106,701

November 9, 2011

Vijaya Bank | 2QFY2012 Result Update

Ratio analysis
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 (75% cover.) 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 RoE 2.9 1.1 1.8 0.2 2.0 0.7 2.7 1.8 0.9 0.0 0.9 21.3 19.1 1.7 0.8 0.9 0.4 1.3 0.7 2.0 1.4 0.6 (0.2) 0.7 24.9 18.3 1.9 0.6 1.3 0.5 1.8 0.7 2.5 1.6 0.9 0.5 0.4 26.8 11.9 2.2 0.5 1.6 0.4 2.1 0.6 2.7 1.6 1.1 0.3 0.7 26.6 18.8 2.6 0.6 2.0 0.2 2.1 0.5 2.7 1.9 0.8 0.1 0.5 25.4 13.8 2.3 0.7 1.6 0.1 1.6 0.6 2.2 1.4 0.8 0.2 0.5 25.2 12.3 2.1 0.6 1.6 0.1 1.6 0.6 2.2 1.4 0.8 0.3 0.4 26.3 11.7 7.7 1.4 3.4 7.0 1.2 3.4 9.7 1.2 1.7 5.4 1.0 4.3 6.7 0.9 4.3 6.5 0.8 3.4 6.2 0.7 3.4 7.6 42.6 2.0 8.3 47.3 2.0 6.1 50.8 1.0 10.8 57.4 2.5 8.8 65.3 2.5 9.1 73.3 2.0 9.4 79.4 2.0 2.3 0.6 2.3 0.3 74.5 1.6 0.6 1.7 0.2 64.5 1.9 0.8 2.1 0.2 58.2 2.4 1.4 3.4 0.7 41.5 2.6 1.5 3.3 0.5 41.1 3.1 2.1 2.5 0.5 34.0 3.7 2.4 2.2 0.5 35.7 30.8 64.4 11.2 7.1 27.3 66.1 11.2 5.7 24.0 65.0 12.3 7.2 24.6 66.9 11.6 7.1 25.3 66.5 12.9 9.2 25.1 70.6 14.6 8.6 25.0 73.1 14.0 8.1 3.0 46.2 0.9 19.1 1.7 51.5 0.7 18.3 2.0 50.7 0.4 11.9 2.3 50.3 0.7 18.8 2.6 57.8 0.5 13.8 2.3 48.4 0.5 12.3 2.2 49.8 0.4 11.7 FY07 FY08 FY09 FY10 FY11 FY12E FY13E

November 9, 2011

10

Vijaya Bank | 2QFY2012 Result Update

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 investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document 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 and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources 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 this document is for general guidance only. Angel Broking Limited 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 Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, 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 Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or 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 the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

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

Vijaya 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%)

November 9, 2011

11