4QFY2012 Result Update | Banking

May 11, 2012

Syndicate Bank
Performance Highlights

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

Source: Company, Angel Research

BUY
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 5,469 1.2 125/67 85,892 10 16,293 4,929 SBNK.BO SNDB@IN
1,325 923 338 0.9 (14.3) (8.5) 1,161 672 289 15.1 17.6 7.0

`91 `131
12 Months

4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy) 1,337 790 309

Syndicate Bank reported a 22.0% yoy decline in its profit before tax (PBT) to `248cr, despite healthy 17.6% growth in pre-provisioning profit on the back of higher provisioning expenses, partly because the bank was one of the few PSU banks which increased provision coverage sequentially. However, net profit grew by moderate 7.0% yoy on the back of negative tax expense of `61cr during the quarter as against tax expense of `30cr in 3QFY2012. We recommend a Buy rating on the stock. Business growth remains moderate; slippages surge: During the quarter, business growth remained moderate. Advances grew by 15.8% yoy to `123,620cr, aided by healthy growth of 17.6% and 29.7% yoy in agriculture and weaker section credit, respectively. Growth in deposits was relatively high compared to advances growth at 16.5% yoy, mainly on account of 24.2% growth in term deposits to `108,606cr. CASA deposits grew by 10.7% yoy on account of moderate growth of 9.9% yoy in savings deposits and 12.9% yoy in current deposits. Consequently, CASA ratio dipped by 154bp yoy to 29.4%. Reported NIM improved by 15bp qoq to 3.60%. The banks asset quality deteriorated sequentially with slippages increasing to `1,059cr, much above the average quarterly run rate of `591cr for the past four quarters. Consequently, gross annualized slippage ratio for the bank increased substantially on a sequential basis to 4.0% during 4QFY2012 as against 1.9% in 3QFY2012. While gross NPAs increased from 2.3% to 2.5%, net NPA ratio increased from 0.9% to 1.0%. The bank increased its provisioning coverage to 80.1% in 4QFY2012 from 78.5% in 3QFY2012. If the bank had not increased its provisioning coverage, PBT would have been higher by `97cr (38.4% yoy). The bank restructured ~`1,700cr of loans during the quarter (majorly Air Indias ~`1,000cr), taking its outstanding restructured advances to ~`6,200cr (~4.8% of the overall loan book). Outlook and valuation: The stock is currently trading at 0.5x FY2014E ABV (its five-year range of 0.61.1x and median of 0.8x). Also, valuations appear cheap compared to its peers, which are trading at higher multiples, although they have similar or poorer fundamentals. We value the stock at 0.7x FY2014E ABV and recommend Buy on the stock with a target price of `131. 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

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 66.2 17.5 4.2 12.1

Abs. (%) Sensex Syndicate Bank

3m (8.2) (18.7)

1yr (12.3) (20.2)

3yr 39.5 60.7

FY2011 4,383 60.0 1,048 28.8 3.0 18.3 5.0 0.8 0.7 17.6

FY2012 5,085 16.0 1,313 25.3 3.1 21.8 4.2 0.6 0.8 17.2

FY2013E 5,912 16.3 1,561 18.9 3.0 25.9 3.5 0.6 0.8 16.9

FY2014E 6,869 16.2 1,806 15.7 3.0 30.0 3.0 0.5 0.8 17.1

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

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

Sourabh Taparia
022 3935 7800 Ext: 6872 [email protected]

Please refer to important disclosures at the end of this report

Syndicate Bank | 4QFY2012 Result Update

Exhibit 1: 4QFY2012 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 - Profit on exchange transactions - 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

4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy) 4,125 3,300 755 70 2,788 1,337 300 286 159 13 30 98 1,636 846 594 252 790 542 321 (12) 234 248 (61) 309 (24.6) 3,974 3,212 733 18 10 2,649 1,325 240 235 143 5 31 61 1,565 643 394 248 923 544 386 10 148 379 41 338 10.8 3.8 2.7 3.1 278.9 (100.0) 5.2 0.9 24.6 21.6 11.1 168.4 2.7 59.3 4.5 31.6 50.7 1.3 (14.3) (0.3) (17.0) (221.5) 58.3 (34.5) (249.5) (8.5) (3544)bp 3,162 2,593 574 0 (5) 2,001 1,161 255 247 160 8 24 63 1,416 744 521 223 672 353 176 2 175 319 30 289 9.3 30.4 27.2 31.7 43,525.0 (100.0) 39.3 15.1 17.7 16.1 (0.7) 67.8 27.2 56.3 15.6 13.7 14.1 12.9 17.6 53.6 82.1 (606.3) 33.9 (22.2) (306.0) 7.0 (3395)bp

Exhibit 2: 4QFY2012 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 1,337 300 1,636 846 790 542 248 (61) 309

Estimates 1,368 283 1,651 689 962 432 530 201 329

% chg (2.3) 6.0 (0.9) 22.7 (17.8) 25.6 (53.2) (130.4) (6.0)

May 11, 2012

Syndicate Bank | 4QFY2012 Result Update

Exhibit 3: 4QFY2012 performance

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 (%) NPA to avg. assets (%)
Source: Company, Angel Research

4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy) 123,620 114,817 157,941 143,128 78.3 12,129 34,295 46,424 29.4 12.2 8.9 6.9 11.0 3.6 51.7 3,183 2.5 1,185 1.0 80.1 4.0 0.7 80.2 11,020 32,994 44,014 30.8 11.5 8.4 6.9 11.1 3.5 41.1 2,674 2.3 993 0.9 78.5 1.9 0.9 7.7 106,782 10.3 135,596 (195)bp 10.1 3.9 5.5 (136)bp 76bp 59bp 1bp (10)bp 15bp 1064bp 19.0 24bp 19.4 10bp 156bp 209bp (20)bp 78.8 10,739 31,207 41,946 30.9 13.0 9.3 5.8 9.9 3.4 52.5 2,599 2.4 1,031 1.0 77.2 2.4 0.5 15.8 16.5 (48)bp 12.9 9.9 10.7 (154)bp (80)bp (37)bp 112bp 116bp 17bp (84)bp 22.5 13bp 15.0 (1)bp 288bp 157bp 26bp

Business growth remains moderate; NIM improves by 15bp qoq

During the quarter, business growth for the bank remained moderate. Advances grew by 15.8% yoy to `123,620cr, aided by healthy growth of 17.6% and 29.7% yoy in agriculture and weaker section credit, respectively. Growth in deposits was relatively high compared to growth in advances at 16.5% yoy, mainly on account of 24.2% growth in term deposits to `108,606cr. CASA deposits grew by 10.7% yoy on account of moderate growth of 9.9% yoy in savings deposits and 12.9% yoy in current deposits. Consequently, CASA ratio dipped by 154bp yoy to 29.4%. Even, on a sequential basis, CASA ratio declined by 136bp on the back of a 3.9% qoq increase in savings deposits, despite a healthy 10.1% qoq increase in current deposits. Cost of deposits remained flat sequentially at 6.92%. Yield on investment grew by 57bp qoq to 8.04%, while yield on advances declined by 10bp qoq to 11.01%. Reported NIM for the bank improved by 15bp qoq to 3.60%.

May 11, 2012

Syndicate Bank | 4QFY2012 Result Update

Exhibit 4: Business growth remains moderate

Adv. yoy chg (%) 25.0 20.0 15.0 10.0 79.8 78.8 82.0 80.2 78.3 Dep. yoy chg (%) CDR (%, RHS) 83.0 82.0 81.0 80.0 79.0 78.0 77.0 76.0 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
Source: Company, Angel Research

Exhibit 5: CASA ratio dips by 136bp qoq

CASA ratio 32.5 14.8 30.0 5.8 6.4 6.6 10.7 15.0 CASA yoy growth (%, RHS) 22.5

27.5

7.5

18.1 15.9

15.8 22.4

18.9 21.5

14.9 14.9

15.8 16.5

30.9

31.1

30.5

30.8

5.0 -

29.4

25.0 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

Source: Company, Angel Research

Exhibit 6: CoD remains flat on a qoq basis

8.00 6.69 6.91 6.92

Exhibit 7: NIM improves by 15bp qoq

(%) 4.00 3.50 3.00 2.50 3.43 3.16 3.44 3.45 3.60

6.36 6.00 5.80

4.00 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

2.00 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

Source: Company, Angel Research

Source: Company, Angel Research

Asset quality deteriorates sequentially; slippages surge

The banks asset quality deteriorated sequentially with slippages increasing to `1,059cr, much above the average quarterly run rate of `591cr for the past four quarters. Consequently, gross annualized slippage ratio for the bank increased substantially on a sequential basis to 4.0% during 4QFY2012 as against 1.9% in 3QFY2012. On an absolute basis, both gross and net NPAs for the bank increased by ~19% sequentially. While gross NPAs increased from 2.3% to 2.5%, net NPA ratio increased from 0.9% to 1.0%. The bank increased its provisioning coverage (one of the few PSU banks to do so) to 80.1% in 4QFY2012 from 78.5% in 3QFY2012. If the bank had not increased its provisioning coverage, PBT would have been higher by `97cr (38.4% yoy). The bank restructured ~`1,700cr of loans during the quarter (majorly Air Indias ~`1,000cr), taking its outstanding restructured advances to ~`6,200cr (~4.8% of the overall loan book). In terms of CDR restructuring pipeline, management specified a sum of `1,050cr pertaining to seven accounts, which are under active stage of CDR discussion.

May 11, 2012

Syndicate Bank | 4QFY2012 Result Update

Exhibit 8: Slippages surge in 4QFY2012

(%) 5.0 4.0 3.0 2.0 1.0 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12 2.4 1.9 1.3 3.6 4.0

Exhibit 9: NPA ratio deteriorates slightly on a qoq basis

Gross NPAs (%) 2.5 2.0 1.5 1.0 77.2 78.4 78.5 78.5 80.1 80.0 70.0 60.0 50.0 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
Source: Company, Angel Research; Note: PCR including tech. write-offs

Net NPAs (%)

PCR (%, RHS) 90.0

2.4 1.0

2.4 0.9

2.4 0.9

2.3 0.9

Source: Company, Angel Research

Operating expenses increased by 13.7% yoy

For 4QFY2012, the banks operating expenses increased on a yoy basis by 13.7%, driven by a 14.1% yoy increase in staff expenses. Cost-to-income ratio further increased to 51.7% in 4QFY2012 from 41.1% witnessed in 3QFY2012. Operating expense to average assets increased to 1.9% in 4QFY2012 from 1.6% in 3QFY2012.

Exhibit 10: Staff expenses increase by 14.1% yoy

Staff expenses (` cr) 1,000 800 600 YoY change (%) 50.0 40.0 30.0 20.0

Exhibit 11: Cost ratios deteriorate sequentially

Cost-to-income ratio (%) 60.0 45.0 30.0 2.0 1.7 1.7 1.6 Opex to average assets (%, RHS) 2.5 1.9 2.0 1.5 1.0

594

521

454

449

400 200 -

10.0 (10.0) (20.0)

394

52.5

47.0

42.8

41.1

51.7

15.0 -

2.5 1.0

0.5

0.5 -

4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

Source: Company, Angel Research

4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

Source: Company, Angel Research

May 11, 2012

Syndicate Bank | 4QFY2012 Result Update

Investment argument
Better asset quality and moderate NIM to drive profitability
The bank witnessed a surge in slippages in 4QFY2012 to 4.0%. Though slippages are likely to remain above average levels due to the deteriorating domestic macro environment, we believe asset-quality pressures are likely to be well within manageable levels for Syndicate Bank, as evident from the comfortable provisioning coverage for the bank at 80.1% as of FY2012. The banks conservative lending, visible in its low yield on advances (11.0% in FY2012) and moderate advances growth (16.9% CAGR over FY2010-12), is expected to lead to better asset quality than peers. Accordingly, we expect slippages to be at 2.7% both for FY2013 and FY2014. Moreover, the banks reported its NIM at healthy levels of 3.43% in FY2012. We expect the banks NIM to be at 3.0% in FY2013.

Outlook and valuation

We expect Syndicate Bank to deliver RoEs of 16.9% and 17.1% in FY2013 and FY2014, respectively, on the back of its better asset-quality outlook than peers and moderate NIM. The bank has a modest CASA franchise with a CASA ratio of 29.4% (as of 4QFY2012), while fee income is also modest at 0.6% of average assets (as of FY2012). However, that said, the banks cheaper valuations and lower asset-quality concerns turn the tide in the stocks favor. The stock is currently trading at 0.5x FY2014E ABV (its five-year range of 0.61.1x and median of 0.8x). Also, valuations appear cheap compared to its peers, which are trading at higher multiples, although they have similar or poorer fundamentals. We value the stock at 0.7x FY2014E ABV and recommend Buy on the stock with a target price of `131.

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 FY2013 13.5 16.0 28.2 3.1 10.0 13.0 13.0 3.0 82.5 FY2014 14.0 16.0 27.4 3.0 11.9 13.0 13.0 3.2 80.0

Revised estimates FY2013 17.0 19.0 27.4 3.0 13.5 14.0 14.0 2.7 79.0 FY2014 17.0 18.0 26.2 3.0 13.5 14.0 14.0 2.7 77.5

May 11, 2012

Syndicate Bank | 4QFY2012 Result Update

Exhibit 13: Change in estimates

FY2013 Particulars (` cr) NII Non-interest income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT
Source: Angel Research

FY2014 Var. (%) 0.1 4.8 0.9 6.8 (3.5) (2.5) (4.3) (20.3) 3.4 Earlier estimates 6,658 1,304 7,961 3,393 4,568 1,928 2,640 857 1,784 Revised estimates 6,869 1,386 8,255 3,657 4,598 1,924 2,674 867 1,806 Var. (%) 3.2 6.3 3.7 7.8 0.7 (0.2) 1.3 1.3 1.3

Earlier estimates 5,904 1,165 7,069 3,003 4,066 1,832 2,234 725 1,509

Revised estimates 5,912 1,221 7,133 3,208 3,925 1,786 2,139 577 1,561

Exhibit 14: P/ABV band

Price (`) 240 200 160 120 80 40 0
Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11 Oct-06 Oct-07 Oct-08 Oct-09 Oct-10 Oct-11 Apr-12 Oct-12

0.5x

0.7x

0.9x

1.1x

1.3x

Source: Company, Angel Research

May 11, 2012

Syndicate Bank | 4QFY2012 Result Update

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 Accumulate Buy Neutral Buy Accumulate Neutral Buy Buy Accumulate Buy Neutral Buy Buy Buy Buy Buy Neutral Buy Buy Buy Buy Neutral Buy Buy Neutral CMP (`) 1,001 415 511 813 22 329 148 105 649 353 48 419 78 405 85 92 180 82 846 219 746 1,852 91 68 206 58 53 Tgt. price (`) 1,587 567 1,201 470 166 925 411 55 522 504 111 117 218 96 274 1,066 2,511 131 276 78 Upside (%) 58.5 10.9 47.8 42.6 12.3 42.6 16.3 14.4 24.6 24.4 30.7 27.0 21.6 18.0 25.1 43.0 35.6 43.9 34.3 33.6 FY2014E P/ABV (x) 1.4 1.0 2.9 1.3 1.0 1.7 0.6 0.6 0.7 0.7 0.6 0.7 0.7 0.5 0.5 0.6 0.6 0.5 0.7 0.5 0.7 1.2 0.5 0.7 0.7 0.4 0.6 FY2014E Tgt. P/ABV (x) 2.2 3.3 1.9 2.4 0.7 1.1 1.0 0.7 0.9 0.7 0.7 0.7 0.8 0.6 0.6 1.1 1.6 0.7 0.9 0.6 FY2014E P/E (x) 7.2 7.3 14.4 10.0 5.8 7.9 3.5 4.1 4.3 4.5 3.7 4.5 3.8 3.6 3.2 3.8 3.7 3.8 4.3 3.4 4.3 6.9 3.0 3.8 4.1 2.6 4.3 FY2012-14E EPS CAGR (%) 16.4 13.0 27.0 20.4 4.5 22.5 6.2 3.3 11.1 23.3 45.3 11.8 100.1 5.3 6.6 22.7 5.4 28.3 8.8 27.7 10.3 23.6 17.3 13.0 24.8 22.5 13.5 FY2014E RoA (%) 1.5 1.3 1.7 1.5 0.8 1.4 0.9 0.9 1.1 0.8 0.7 0.9 0.5 0.8 0.9 0.9 1.2 0.6 1.4 0.8 1.0 1.0 0.8 0.6 0.8 0.7 0.5 FY2014E RoE (%) 20.3 14.5 22.1 16.0 17.5 23.3 17.6 16.0 18.2 16.9 17.2 16.4 14.4 16.5 17.0 14.8 18.2 13.9 18.6 14.3 18.1 19.1 17.1 15.4 17.5 16.5 13.7

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

May 11, 2012

Syndicate Bank | 4QFY2012 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 (%) FY08 2,073 (3.6) 940 44.3 3,012 7.5 1,495 7.5 1,518 7.6 512 (25.5) 1,006 39.0 157 15.7 848 18.4 FY09 2,548 22.9 915 (2.7) 3,462 14.9 1,791 19.8 1,671 10.1 635 24.0 1,036 3.1 124 11.9 913 7.6 FY10 2,740 7.5 1,167 27.6 3,907 12.8 2,034 13.5 1,874 12.1 700 10.2 1,174 13.3 361 30.7 813 (10.9) FY11 4,383 60.0 915 (21.6) 5,298 35.6 2,548 25.3 2,750 46.8 1,464 109.3 1,285 9.5 237 18.5 1,048 28.8 FY12 5,085 16.0 1,076 17.6 6,161 16.3 2,814 10.4 3,347 21.7 1,920 31.1 1,427 11.0 114 8.0 1,313 25.3 FY13E FY14E 5,912 16.3 1,221 13.5 7,133 15.8 3,208 14.0 3,925 17.3 1,786 (6.9) 2,139 49.8 577 27.0 1,561 18.9 6,869 16.2 1,386 13.5 8,255 15.7 3,657 14.0 4,598 17.2 1,924 7.7 2,674 25.0 867 32.4 1,806 15.7

Balance sheet
Y/E March (` cr) Share Capital Reserve & 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 (%) FY08 522 3,769 FY09 522 4,488 FY10 522 5,105 FY11 573 6,478 FY12 602 8,439 FY13E 602 9,650 FY14E 602 11,037

95,171 115,885 117,026 135,596 157,941 187,950 221,781 21.0 1,306 2,585 3,779 21.8 2,190 3,224 3,946 1.0 8,555 3,618 4,225 15.9 6,010 3,518 4,364 16.5 7,005 3,585 4,896 19.0 8,308 4,194 5,683 18.0 9,775 4,907 6,502

107,132 130,256 139,051 156,539 182,468 216,387 254,604 10,375 1,282 28,076 64,051 24.0 770 2,579 20.0 12,543 1,861 30,537 81,532 27.3 742 3,040 21.6 7,189 5,545 33,011 10.9 701 2,198 6.8 10,443 1,523 35,068 18.1 693 2,031 12.6 8,809 5,076 40,815 15.8 1,351 2,797 16.6 7,518 6,020 53,343 17.0 1,554 3,317 18.6 8,871 7,083 63,750 17.0 1,774 3,903 17.7

90,406 106,782 123,620 144,635 169,223

107,132 130,256 139,051 156,539 182,468 216,387 254,604

May 11, 2012

Syndicate Bank | 4QFY2012 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 2.1 0.5 1.6 0.3 1.9 0.6 2.5 1.5 1.0 0.2 0.9 27.8 24.0 2.1 0.5 1.6 0.2 1.8 0.6 2.4 1.5 0.9 0.1 0.8 28.1 21.6 2.0 0.5 1.5 0.3 1.8 0.6 2.4 1.5 0.9 0.3 0.6 27.4 16.6 3.0 1.0 2.0 0.0 2.0 0.6 2.6 1.7 0.9 0.2 0.7 24.9 17.6 3.0 1.1 1.9 0.1 1.9 0.6 2.5 1.7 0.8 0.1 0.8 22.2 17.2 3.0 0.9 2.1 0.0 2.1 0.6 2.7 1.6 1.1 0.3 0.8 21.6 16.9 2.9 0.8 2.1 0.0 2.1 0.6 2.7 1.6 1.1 0.4 0.8 22.3 17.1 5.6 1.3 3.1 5.2 1.1 3.3 5.8 0.9 3.3 5.0 0.8 4.1 4.2 0.6 4.2 3.5 0.6 5.5 3.0 0.5 6.6 16.2 69.9 2.8 17.5 82.9 3.0 15.6 98.8 3.0 18.3 116.1 3.7 21.8 143.6 3.8 25.9 163.8 5.0 30.0 186.8 6.0 2.7 1.0 2.4 0.4 62.6 1.9 0.8 1.5 0.3 58.1 2.2 1.1 1.8 0.4 73.3 2.4 1.0 1.7 0.6 75.7 2.5 1.0 2.7 0.8 80.1 3.7 1.5 2.7 0.8 79.0 4.6 2.0 2.7 0.7 77.5 30.9 67.3 11.2 6.6 27.6 70.4 12.7 7.9 31.2 77.3 12.7 8.2 30.9 78.8 13.0 9.3 29.4 78.3 13.7 10.1 27.4 77.0 13.3 9.6 26.2 76.3 13.0 9.3 2.2 49.6 0.9 24.0 2.2 51.7 0.8 21.6 2.1 52.0 0.6 16.6 3.0 48.1 0.7 17.6 3.1 45.7 0.8 17.2 3.0 45.0 0.8 16.9 3.0 44.3 0.8 17.1 FY08 FY09 FY10 FY11 FY12 FY13E FY14E

May 11, 2012

10

Syndicate Bank | 4QFY2012 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

Syndicate 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%)

May 11, 2012

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