3QFY2012 Result Update | Banking

February 1, 2012

Jammu and Kashmir Bank

Performance Highlights

ACCUMULATE
CMP Target Price `811 `877
12 Months
3QFY11 390 281 168 % chg (yoy) 15.7 15.2 27.0

Particulars (` cr) NII Pre-Prov. Profit PAT

3QFY12 451 324 213

2QFY12 434 313 200

% chg (qoq) 3.8 3.5 6.8

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 3,912 0.5 915/645 5,396 10 17,301 5,236 JKBK.BO J&KBK@IN

Source: Company, Angel Research

For 3QFY2012, J&K Bank reported healthy 27% growth in its net profit to `213cr, higher than our expectations, mostly on account of lower-than-estimated provisioning expenses. Maintenance of asset quality in healthy state, sharp traction in saving account deposits and largely stable margins were the key positive takeaways from the results. We recommend an Accumulate on the stock. NIM largely stable; asset quality maintains strong trajectory: The banks advances maintained the traction witnessed in 2QFY12, by registering growth of 5.3% qoq (17.2% yoy). On the deposits side yoy growth was healthy at 19.3%. Though, the credit-deposit ratio improved by 142bp qoq to 61%, it remains possibly the lowest amongst peers. Saving account deposits growth was an impressive 10.8% qoq and 27.3% yoy. CASA deposits grew by healthy 21.1% yoy better than most of the peers, leading to a 200bp qoq rise in CASA ratio to 40.2%. The banks cost of deposits rose by 45bp qoq to 6.6%, leading to a decline in reported NIM albeit by a marginal 6bp qoq to 3.6%. On the asset quality front, the bank maintained

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 53.2 3.0 25.0 18.9

its healthy track record with slippages contained well within manageable levels at 0.7% as compared to 0.8% in 2QFY2012. Absolute amount of gross NPAs was almost stable sequentially, while net NPAs saw a sharp decrease of 24.3% qoq to `47cr. Restructuring at `47cr for the quarter was also amongst the lowest compared to peers. Provision coverage ratio including technical writeoffs was a robust 94%. Outlook and valuation: At the CMP, the stock is trading at 0.8x FY2013E ABV vis-vis its historic range of 0.81.4x and five-year median of 1.0x. Immediate levers in the form of increased CD ratio from the current low of 61.1% to higher yielding advances are likely to provide near-term higher momentum to NII growth for the bank relative to other mid-size banks. The banks increasing non-J&K exposure on the asset side poses medium-term concerns. Being amongst the highest outperformers since December 2010, we believe in relative terms, the stock is now closer to fair value. Hence, we recommend an Accumulate on the stock with a target price of `877.

Abs. (%) Sensex J&K Bank

3m (1.0) (1.6)

1yr (4.0) 9.4

3yr 83.6 176.1

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 1,119 11.9 512 25.0 2.9 105.7 7.7 1.3 1.3 18.2

FY2011 1,544 37.9 615 20.1 3.4 126.9 6.4 1.1 1.3 19.0

FY2012E 1,790 16.0 794 29.0 3.4 163.7 5.0 1.0 1.5 21.0

FY2013E 1,988 11.0 838 5.6 3.4 172.9 4.7 0.8 1.4 19.0

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

Jammu and Kashmir Bank | 3QFY2012 Result Update

Exhibit 1: 3QFY2012 performance

Particulars (` cr) Interest earned - on Advances / Bills - on investments - on balance with RBI & 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 (%)
Source: Company, Angel Research

3QFY12 1QFY12 % chg (qoq) 3QFY11 % chg (yoy) 1,267 880 375 12 816 451 74 65 39 9 26 524 201 131 70 324 18 15 (0) 3 305 92 213 30.2 1,156 806 343 7 721 434 71 63 34 8 29 505 193 126 67 313 22 13 4 5 290 91 200 31.3 9.6 9.2 9.4 69.0 13.1 3.8 3.4 3.3 14.3 3.8 (9.5) 3.7 4.2 4.2 4.2 3.5 (18.7) 15.4 (103.3) (31.6) 5.2 1.6 6.8 (107)bp 935 650 280 5 545 390 78 60 40 18 19 467 186 128 59 281 31 15 0 15 250 82 168 32.9 35.5 35.4 33.7 155.0 49.6 15.7 (5.1) 8.6 (4.2) (50.8) 35.5 12.3 7.8 2.5 19.5 15.2 (40.7) (193.8) (78.6) 22.1 12.0 27.0 (271)bp

Exhibit 2: 3QFY2012 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 451 74 524 201 324 18 305 92 213

Estimates 459 80 538 205 333 36 297 96 201

Var. (%) (1.7) (7.5) (2.6) (2.0) (2.9) (49.8) 2.8 (4.3) 6.2

February 1, 2012

Jammu and Kashmir Bank | 3QFY2012 Result Update

Exhibit 3: 3QFY2012 performance

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 Reported NIM Cost-to-income ratio Asset quality Gross NPAs (` cr) Gross NPAs (%) Net NPAs (` cr) Net NPAs (%) Provision Coverage Ratio (%) Slippage ratio (%) NPA to avg. assets (%)
Source: Company, Angel Research

3QFY12 1QFY12 29,734 48,779 61.0 4,621 14,974 19,595 40.2 13.6 11.4 6.6 12.2 7.6 3.6 38.3 545 1.8 47 0.2 94.1 0.7 0.1 28,236 47,425 59.5 4,590 13,515 18,105 38.2 13.6 11.3 6.2 11.8 7.2 3.7 38.1 542 1.9 62 0.2 92.0 0.8 0.1

% chg (qoq) 3QFY11 5.3 2.9 142bp 0.7 10.8 8.2 200bp 1bp 12bp 45bp 35bp 35bp (6)bp 18bp 0.6 (9)bp (24.3) (6)bp 207bp (2)bp 1bp 25,363 40,877 62.0 4,415 11,760 16,175 39.6 15.5 12.8 5.1 10.7 6.5 3.7 39.9 504 2.0 11 0.0 98.4 0.6 0.1

% chg (yoy) 17.2 19.3 (109)bp 4.7 27.3 21.1 60bp (187)bp (136)bp 150bp 144bp 104bp (7)bp (158)bp 8.2 (15)bp 342.3 12bp (435)bp 14bp (2)bp

Moderate business growth; Healthy CASA deposits growth

The banks advances maintained the traction witnessed in 2QFY12, by registering growth of 5.3% qoq. Even on a yoy basis advances growth was a reasonable 17.2%. On the deposits side yoy growth was healthy at 19.3% (2.9% qoq). Though, the credit-deposit ratio improved by 142bp qoq to 61%, it remains possibly the lowest amongst peers. Saving account deposits growth was an impressive 10.8% qoq and 27.3% yoy, in spite of the management not proceeding with the plan of raising saving account interest rates post the deregulation by the RBI. Current account deposit growth was a muted 0.7% qoq and 4.7% yoy. Overall CASA deposits grew by healthy 21.1% yoy better than most of the peers, leading to a 200bp qoq improvement in CASA ratio to 40.2%. The banks outstanding loan book concentration within the J&K state is ~40%, while that outside the state is ~60%. As margins are higher within the state, management would like ~50% of loan portfolio concentrated within the J&K state by the end of FY2012 (though this could be challenging, in our view). The bank is planning to open 100 new branches in the J&K, in order to increase its low-cost deposits and maintain its margins going ahead. Management plans to roll out more than 60 branches in 4QFY2012, to take the branch network to ~625.

February 1, 2012

Jammu and Kashmir Bank | 3QFY2012 Result Update

Management had earlier envisaged a move to hike the saving account interest rates post the deregulation by the central bank, though the management has now indicated that it is not planning to raise the rates in the short term.

Exhibit 4: Moderate business growth

Adv. qoq chg (%) 15.0 10.0 5.0 62.0 58.6 Dep. qoq chg (%) 61.3 59.5 CDR (%, RHS) 65.0 61.0 62.0 59.0

Exhibit 5: Healthy CASA growth

CASA ratio (%) 41.0 40.0 39.0 38.0 37.0 22.2 16.8
19.4

CASA growth (% yoy, RHS)) 30.0 21.1 20.0 10.9

6.9 10.1

9.4 3.0

3.3 9.3

0.8

5.3 2.9

56.0

39.6

40.5

40.4

38.2

(5.0)

(3.6)

50.0

40.2

10.0

53.0

0.0

3QFY11 4QFY11 1QFY12 2QFY12 3QFY12

Source: Company, Angel Research

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

Source: Company, Angel Research

NIM declines albeit marginally

The banks cost of deposits rose by 45bp qoq to 6.6% in spite of the strong traction in CASA deposits, especially the saving account deposits. The yield on advances witnessed an increase of 35bp qoq to 12.2%. In spite of the ~150bp qoq improvement in CD ratio, the reported NIM of the bank declined albeit by a marginal 6bp qoq to 3.6%. Going forward, management exuded confidence in maintaining margins within the range of 3.5-4.0%.

Exhibit 6: Sharp rise in cost of deposits in 3QFY2012...

7.00 6.50 6.00 5.50 5.00 4.50 4.00 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12 5.12 5.36 5.38 6.17 6.62

Exhibit 7: ...leads to a 13bp qoq contraction in NIM

4.00 3.82 3.80 3.60 3.40 3.20 3.00 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12 3.70 3.72 3.69 3.63

Source: Company, Angel Research

Source: Company, Angel Research

Asset quality remains stable; Slippage ratio declines further

On the asset quality front, the bank maintained its healthy track record with slippages contained well within manageable levels at 0.7% as compared to 0.8% in 2QFY2012. Absolute amount of gross NPAs was almost stable sequentially, while net NPAs saw a sharp decrease of 24.3% qoq to `47cr. Consequently, the Gross and net NPA ratios improved on a sequential basis from 1.9% to 1.8% and from 0.22% to 0.16%, respectively. Provisioning coverage ratio including technical write-offs stood at a healthy 94.1%, one of the best in the industry.
February 1, 2012

Jammu and Kashmir Bank | 3QFY2012 Result Update

The banks outstanding restructured book as of 3QFY2012 stands at ~`1,700cr, of which just `47cr were restructured during the current quarter. The relatively higher share of restructured loans, in our view, highlights the concerns of increasing exposure outside J&K, where rather than relying on its own credit appraisal, the bank mainly has to go for low-margin syndicated loans. Management seemed confident of reducing the restructured advances book further to ~`1,300-`1,400cr over the next 2-3 quarters.

Exhibit 8: Best-in-class asset quality

Gross NPAs (%) 2.5 2.0 1.5 1.0 98.4 92.7 92.5 92.0 94.1 Net NPAs (%) PCR (%, RHS) 100.0 90.0

Exhibit 9: Credit costs remain low

NPA Provisions to Avg Assets (%) 0.3 0.3 0.2 0.1 80.0 0.1 0.1

0.2

0.1

2.0 0.0

2.0 0.2

2.0 0.2

1.9 0.2

3QFY11 4QFY11 1QFY12 2QFY12 3QFY12

Source: Company, Angel Research

1.8 0.2
70.0

0.5

0.0 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12

Source: Company, Angel Research

Investment arguments
Robust asset quality
Over the years, the bank has maintained robust asset quality, with the best-in-industry provision coverage ratio (94.1% as of 3QFY2012). Slippages declined considerably (0.7% for 3QFY2012 compared to 1.3% for 4QFY2011), and were lower compared to most other PSU banks. We have factored in slippage levels of 0.9% and 1.2% for FY2012 and FY2013, respectively.

Strong branch network and legacy Dominant market share

The bank with ~450 branches has the highest number of branches in J&K (SBI with 156 comes a distant second). Due to its strong branch network and legacy of banking relationships, the bank has a dominant 70% market share in deposits in J&K. CASA deposits constituted strong 47.8% of incremental deposits growth from FY200411. This strong base of low-cost deposits is expected to sustain relatively higher NIM of 3.23.4% vs. other mid-size banks.

Outlook and valuation

At the CMP, the stock is trading at 0.8x FY2013E ABV vis--vis its historic range of 0.81.4x and five-year median of 1.0x. Immediate levers in the form of increased CD ratio from the current low of 61.1% to higher yielding advances are likely to provide near-term higher momentum to NII growth for the bank relative to other mid-size banks. The banks increasing non-J&K exposure on the asset side poses medium-term concerns. Being amongst the highest outperformers since December 2010, we believe in relative terms, the stock is now closer to fair value. Hence, we recommend an Accumulate on the stock with a target price of `877.
February 1, 2012

Jammu and Kashmir Bank | 3QFY2012 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

17.0 12.0 40.1 3.4 (11.0) 2.5 17.0 1.3 91.0

Revised estimates FY2012

17.0 12.0 40.1 3.4 (12.2) 2.5 17.0 0.9 94.0

FY2013
16.0 9.0 40.7 3.5 14.4 13.0 13.0 1.6 85.0

FY2013
16.0 9.0 40.7 3.4 9.2 15.0 15.0 1.2 87.0

Exhibit 11: Change in estimates

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

FY2012 Revised Earlier estimates estimates

1,804 325 2,129 812 1,317 190 1,127 366 761 1,790 320 2,110 812 1,298 123 1,175 381 794

Var. (%)
(0.8) (1.4) (0.9) (1.4) (35.2) 4.3 4.3 4.3

Earlier estimates
2,004 372 2,376 918 1,458 257 1,202 390 812

FY2013 Revised estimates

1,988 350 2,337 934 1,403 162 1,241 403 838

Var. (%)
(0.8) (5.9) (1.6) 1.8 (3.8) (36.8) 3.3 3.3 3.3

Exhibit 12: P/ABV band

Price (`) 1,500 0.5x 0.75x 1x 1.25x 1.5x

1,200

900

600

300

Oct-09

Nov-06

May-10

Dec-10

Aug-08

Source: Company, Bloomberg, Angel Research

February 1, 2012

Mar-09

Feb-12

Jun-07

Jan-08

Apr-06

Jul-11

Jammu and Kashmir Bank | 3QFY2012 Result Update

Exhibit 13: 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 Neutral Buy Neutral Accumulate Neutral Neutral Buy Neutral Accumulate Accumulate Neutral Accumulate Neutral Accumulate Neutral Neutral Accumulate Neutral Accumulate Accumulate Accumulate Neutral Neutral Accumulate Reduce CMP (`) 1,088 401 497 888 23 335 164 102 755 341 48 472 85 416 69 100 227 88 811 269 956 2,077 98 71 234 70 56 Tgt. price (`) 1,361 1,061 367 907 53 528 450 107 877 1,036 2,359 106 75 52 Upside (%) 25.2 19.5 9.3 20.1 11.4 11.9 8.1 7.2 8.1 8.4 13.6 8.5 7.7 (8.2) FY2013E P/ABV (x) 1.8 1.1 3.4 1.6 1.1 2.1 0.7 0.8 1.0 1.1 0.7 0.9 0.8 0.7 0.5 0.7 0.9 0.6 0.8 0.7 1.1 1.7 0.6 0.9 1.0 0.7 0.8 FY2013E Tgt P/ABV (x) 2.2 2.0 2.3 1.3 0.8 1.1 0.8 0.7 0.9 1.2 1.9 0.7 0.7 0.7 FY2013E P/E (x) 9.4 8.7 17.3 14.0 6.9 11.1 4.6 5.0 5.8 7.2 4.9 6.0 5.5 4.5 3.6 4.9 5.4 4.6 4.7 5.9 6.0 10.1 4.1 4.6 5.9 4.8 6.4 FY2011E-13E EPS CAGR (%) 18.2 16.2 30.4 19.2 13.5 20.1 9.1 (4.8) 9.8 2.3 26.3 (7.4) (25.1) (1.8) 2.4 9.9 3.8 5.3 16.7 (5.9) 6.4 26.0 13.7 10.9 0.1 4.3 0.7 FY2013E RoA (%) 1.5 1.2 1.8 1.3 0.9 1.4 0.9 0.8 1.1 0.6 0.7 0.8 0.4 0.8 0.8 0.7 1.2 0.5 1.4 0.7 1.0 0.8 0.7 0.6 0.7 0.6 0.4 FY2013E RoE (%) 20.2 13.2 21.0 14.4 17.5 20.6 17.3 14.6 19.3 13.7 16.9 15.8 11.4 15.5 14.9 13.4 18.4 12.8 19.0 11.3 19.4 17.9 16.5 15.4 15.8 12.1 11.1

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

February 1, 2012

Jammu and Kashmir Bank | 3QFY2012 Result Update

Income statement
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 (%) FY07 768 15.7 183 64.8 951 22.7 372 7.9 578 34.7 163 (3.1) 415 59.0 141 33.9 274 55.2 FY08 810 5.5 263 44.1 1,074 13.0 404 8.4 670 15.9 94 (42.2) 576 38.7 216 37.5 360 31.2 FY09 1,000 23.4 261 (0.7) 1,262 17.5 471 16.7 791 18.0 159 69.3 631 9.6 222 35.1 410 13.8 FY10 1,119 11.9 416 59.2 1,536 21.7 577 22.6 958 21.2 167 4.6 792 25.3 279 35.3 512 25.0 FY11E 1,544 37.9 365 (12.4) 1,908 24.3 759 31.4 1,149 20.0 215 29.1 934 18.0 319 34.2 615 20.1 FY12E 1,790 16.0 320 (12.2) 2,110 10.6 812 7.0 1,298 13.0 123 (42.7) 1,175 25.8 381 32.4 794 29.0 FY13E 1,988 11.0 350 9.2 2,337 10.7 934 15.0 1,403 8.1 162 31.5 1,241 5.6 403 32.4 838 5.6

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 48 1,960 25,194 7.3 620 823 28,647 1,855 1,759 7,392 17,080 17.9 183 377 28,647 8.3 FY08 48 2,260 13.5 752 1,102 3,220 1,217 FY09 48 2,574 15.4 997 1,070 2,303 2,972 FY10 48 2,962 37,237 12.8 500 600 1,199 42,547 2,745 1,870 13,956 23,057 10.2 204 715 42,547 12.9 FY11E 48 3,430 44,676 20.0 505 600 1,249 50,508 2,975 574 19,696 26,194 13.6 394 676 50,508 18.7 FY12E 48 4,038 12.0 424 672 1,350 3,252 1,131 FY13E 48 4,679 9.0 463 732 1,371 3,545 1,237

28,593 33,004

50,037 54,540

32,756 37,693

56,569 61,835

8,758 10,736 18,883 20,930 10.6 192 486 14.3 10.8 199 552 15.1

20,354 20,222 30,647 35,550 17.0 428 757 12.0 16.0 454 828 9.3

32,756 37,693

56,569 61,835

February 1, 2012

Jammu and Kashmir Bank | 3QFY2012 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 NPA 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 2.8 0.6 2.2 0.1 2.3 0.5 2.9 1.4 1.5 0.5 1.0 15.2 15.2 2.7 0.3 2.3 0.3 2.6 0.6 3.2 1.3 1.9 0.7 1.2 15.4 18.2 2.9 0.5 2.4 0.2 2.6 0.5 3.2 1.3 1.8 0.6 1.2 14.9 17.4 2.8 0.4 2.4 0.4 2.8 0.6 3.4 1.4 2.0 0.7 1.3 14.2 18.2 3.3 0.5 2.9 0.2 3.1 0.6 3.6 1.6 2.0 0.7 1.3 14.3 19.0 3.3 0.2 3.1 0.0 3.2 0.6 3.7 1.5 2.2 0.7 1.5 14.2 21.0 3.4 0.3 3.1 0.0 3.1 0.5 3.7 1.6 2.1 0.7 1.4 13.4 19.0 14.3 2.0 1.4 10.9 1.8 1.9 9.6 1.6 2.1 7.7 1.3 2.7 6.4 1.1 3.2 5.0 1.0 4.1 4.7 0.8 4.3 56.6 11.5 74.2 15.5 84.5 510.4 16.9 105.7 620.8 22.0 126.9 717.4 26.0 163.7 842.7 33.0 172.9 975.0 35.0 400.2 459.2 2.9 1.1 1.9 0.3 61.4 2.5 1.1 1.3 0.1 58.0 2.6 1.4 2.1 0.2 48.6 2.0 0.3 0.9 0.4 90.1 1.9 0.2 1.2 0.3 92.7 2.0 0.2 0.9 0.1 94.0 2.3 0.4 1.2 0.2 87.0 37.0 67.8 13.2 12.6 39.2 66.0 12.8 12.1 38.1 63.4 14.5 13.8 40.7 61.9 15.9 12.8 40.5 58.6 13.7 11.3 40.1 61.2 14.3 11.9 40.7 65.2 15.0 12.6 2.9 39.2 1.0 15.2 2.7 37.6 1.2 18.2 2.9 37.3 1.2 17.4 2.9 37.6 1.3 18.2 3.4 39.8 1.3 19.0 3.4 38.5 1.5 21.0 3.4 40.0 1.4 19.0 FY07 FY08 FY09 FY10 FY11E FY12E FY13E

February 1, 2012

Jammu and Kashmir Bank | 3QFY2012 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

Jammu & Kashmir 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%)

February 1, 2012

10