money matters hahahaha
TRANSCRIPT
8/8/2019 Money Matters Hahahaha
http://slidepdf.com/reader/full/money-matters-hahahaha 1/12
8/8/2019 Money Matters Hahahaha
http://slidepdf.com/reader/full/money-matters-hahahaha 2/12
8/8/2019 Money Matters Hahahaha
http://slidepdf.com/reader/full/money-matters-hahahaha 3/12
8/8/2019 Money Matters Hahahaha
http://slidepdf.com/reader/full/money-matters-hahahaha 4/12
MOMF – BUY
Figure 5: …but internal process reveal a complex web of processes, requiring client handholding by the syndicator at every step of the process
Preparation of
appraisal note
at the bank
branch
Submission of
information
memorandum
to the lead
bank
Processing
information
Additional
information
needed?
No
Yes
Appraisal note
review by branch
head
Additional
information
needed?
Seek additionalinformation
Seek additionalinformation
Yes
Incorporate
changes in
appraisal note
α
α
No
Preparation of
appraisal note
at the bank
branch
Submission of
information
memorandum
to the lead
bank
Processing
information
Additional
information
needed?
No
Yes
Appraisal note
review by branch
head
Additional
information
needed?
Seek additionalinformation
Seek additionalinformation
Yes
Incorporate
changes in
appraisal note
α
α
No
8/8/2019 Money Matters Hahahaha
http://slidepdf.com/reader/full/money-matters-hahahaha 5/12
8/8/2019 Money Matters Hahahaha
http://slidepdf.com/reader/full/money-matters-hahahaha 6/12
8/8/2019 Money Matters Hahahaha
http://slidepdf.com/reader/full/money-matters-hahahaha 7/12
MOMF – BUY
With a significant rise in the participation of the private sector ininfrastructure investments and a likely acceleration in investments bymanufacturing and services over the medium term, we forecast
syndication volumes will grow by 20% during FY10–FY13ii to Rs4.2trn.We believe there would likely be upside surprises to this estimate.
Figure 8: Planned infrastructure investment in the XI Plan
Sectors Rs bn Sectoral shares (%)
Electricity (incl. NCE) 6,665 32.4
Roads and bridges 3,142 15.3
Telecom 2,584 12.6
Railways (incl.
MRTS)
2,618
12.7
Irrigation (incl. Watershed) 2,533 12.3
Water Supply and Sanitation 1,437 7.0
Ports 880 4.3
Airports 310 1.5
Storage 224 1.1
Gas 169 0.8
Total
20,562
100.0Source: Planning Commission, RBI, IIFL Research
Figure 9: Expected share of private sector in infrastructure investments under XI Plan
‐
1,000
2,000
3,000
4,000
5,000
FY03 FY04 FY05 FY06 FY07 FY08P FY09P FY10P FY11P FY12P
Electricity Roads Railways Irrigation Water supply Ports Airports
(Rs bn)
Source: Planning
commission,
RBI,
IIFL
Research
Figure 10: Private sector GFCF
0
50
100
150
200
250
300
FY98 FY00 FY02 FY04 FY06 FY08 FY10 FY12ii
(10)0
10
20
30
40
50
60
70
80GFCF: Private corporate sector YoY (RHS)
(USD$ bn)
(%)
Source: Planning commission, RBI, IIFL Research
We believe MOMF is well-positioned for this opportunity. We forecastMOMF’s market share in loan syndication volume will rise from 8% inFY10 to 11% in FY13ii. Contribution of power and infrastructure sector
in the overall volume of loan syndication would likely rise from 52% inFY10. Strong growth in syndication volume and lower competitionintensity should augur well for transaction fees as well.
Figure 11: Estimated market size and market share for MOMF
0
1000
2000
3000
4000
5000
FY09 FY10 FY11ii FY12ii FY13ii
0
2
4
6
8
10
12
Syndication
vol umes MMOF
market
share
(RHS)
(Rs bn) %
Source: Planning commission, RBI, IIFL Research
8/8/2019 Money Matters Hahahaha
http://slidepdf.com/reader/full/money-matters-hahahaha 8/12
8/8/2019 Money Matters Hahahaha
http://slidepdf.com/reader/full/money-matters-hahahaha 9/12
8/8/2019 Money Matters Hahahaha
http://slidepdf.com/reader/full/money-matters-hahahaha 10/12
8/8/2019 Money Matters Hahahaha
http://slidepdf.com/reader/full/money-matters-hahahaha 11/12
MOMF – BUY
11
Financial summary
Income statement summary (Rs m)
Y/e 31
Mar
FY09A
FY10A FY11ii FY12ii FY13ii
Net interest income 22 55 181 997 1,792
Fee Income 1,610 2,007 2,409 3,011 3,764
Others 110 182 594 1,301 2,279
Non‐interest income 1,720 2,189 3,003 4,312 6,043
Total operating income 1,742 2,244 3,184 5,309 7,835
Total operating expenses 185 341 602 1,032 1,476
Pre provision operating profit 1,558 1,904 2,582 4,276 6,359
Profit before
tax
1,558
1,904 2,582 4,276 6,359
Taxes 530 640 872 1,444 2,147
Net profit 1,028 1,263 1,710 2,832 4,211
Balance sheet summary (Rs m)
Y/e 31 Mar FY09A FY10A FY11ii FY12ii FY13ii
Net loans & advances 187 802 6,814 20,442 46,404
Cash & equivalents 1,111 1,058 4,872 5,894 5,262
Other interest‐earning assets 60 64 70 77 85
Total interest‐earning assets 1,358 1,923 11,756 26,413 51,752
Fixed assets 30 37 44 50 56
Other assets 968 2,590 2,849 3,356 3,577
Total assets 2,356 4,550 14,649 29,820 55,385
Other interest‐bearing liabilities 218 279 1,953 14,162 35,405
Total interest‐bearing liabilities 218 279 1,953 14,162 35,405
Non‐interest‐bearing liabilities 609 1,462 1,754 2,050 2,407
Total liabilities
827
1,741 3,708 16,212 37,812
Total Shareholder's equity 1,529 2,809 10,941 13,608 17,573
Total liabilities & equity 2,356 4,550 14,649 29,820 55,385Source: Company data, IIFL Research
Ratio analysis
Y/e 31
Mar
FY09A FY10A FY11ii FY12ii
FY13ii
Balance Sheet Structure Ratios (%)
Loan Growth ‐65.5 328.0 750.0 200.0 127.0
Growth in Total Assets (%) 125.8 93.1 222.0 103.6 85.7
Profitability Ratios
Net Interest Margin 6.0 11.2 4.7 7.3 5.4
Return on Average Equity 110.8 57.9 24.9 23.1 27.0
Non‐Interest
Income
as
%
of
Total
Income
98.7 97.5 94.3 81.2 77.1
Net Profit Growth 2276.5 22.9 35.4 65.6 48.7
FDEPS Growth 701.4 19.0 ‐4.9 65.6 48.7
Efficiency Ratios (%)
Cost to Income Ratio 10.6 15.2 18.9 19.4 18.8
Salaries as % of Non‐Interest costs 70.3 41.2 35.0 32.6 31.9
Assumptions
Y/e 31 Mar FY09A FY10A FY11ii FY12ii FY13ii
Growth in syndication volumes (%) NA 153 50 25 25
Debt syndication fees (bps) NA 15 12 12 12
Loan syndication fees (bps) 126 93 75 75 75
Source: Company data, IIFL Research
8/8/2019 Money Matters Hahahaha
http://slidepdf.com/reader/full/money-matters-hahahaha 12/12