oriental bank of commerce result updated

8/3/2019 Oriental Bank of Commerce Result Updated

1/11

Please refer to important disclosures at the end of this report 1

Particulars (` cr) 2QFY12 1QFY12 % chg (qoq) 2QFY11 % chg (yoy)NII 989 1,018 (2.8) 1,077 (8.1)Pre-prov. profit 758 801 (5.4) 806 (5.9)

PAT 168 355 (52.7) 398 (57.8)Source: Company, Angel Research

For 2QFY2012, OBC reported a disappointing set of results with net profit

dipping by 57.8% yoy due to considerably higher-than-expected provisioning

expenses. On the pre-provision profit level, results were in-line with our

expectations. A sharp surge in slippages and the consequent interest income

reversal leading to a qoq decline in reported NIM were the key negatives of theresults. We recommend Accumulate on the stock on inexpensive valuations.Higher slippages dent overall profitability: On the business side, the banks netadvances showed healthy momentum rising by 6.4% qoq (up by reasonable

20.6% yoy) as compared to deposits increasing by 3.5% qoq (up 18.9% yoy),

leading to a 195bp qoq expansion in CD ratio. CASA deposits growth was muted

both on a sequential (just 1.3%) and on a yoy (7.1%) basis. Consequently,

calculated CASA ratio dipped by 252bp yoy (down 49bp qoq) to 22.9%. The

recognition of slippages under the system-based NPA recognition platform led to

an interest income reversal of `137cr, which partly dragged down the banks

reported NIM. Sequentially, cost of funds rose by 29bp vs. a 12bp rise in yield on

funds, leading to a 30bp fall in reported NIM to 2.6%. On the asset-quality front,the bank surprised negatively by reporting annualized slippage ratio of 6.3%,

which was considerably higher than the 1.8% witnessed in FY2011. Absolute

gross and net NPAs rose sharply by 52.9% and 86.8% qoq, respectively, and the

PCR (including technical write-offs) dipped sharply to 63.8%.

Outlook and valuation: We believe the current inexpensive valuations of 0.7xFY2013E ABV largely factor in the asset-quality stress faced by the bank. Going

forward, incremental slippages are expected to moderate on completion of the

migration exercise; and with our expectation of interest rates peaking at the

current levels, the bank is expected to benefit from the stable to declining trend in

wholesale interest rates going forward. Hence, we recommend an Accumulaterating on the stock with a target price of`301.

Key financialsY/E March (` cr) FY2010 FY2011 FY2012E FY2013ENII 2,907 4,178 4,119 4,483% chg 45.6 43.7 (1.4) 8.8

Net profit 1,134 1,503 1,190 1,660% chg 25.3 32.5 (20.8) 39.5

NIM (%) 2.4 2.9 2.5 2.3

EPS (`) 45.3 51.5 40.8 56.9P/E (x) 6.3 5.6 7.0 5.0P/ABV (x) 1.0 0.8 0.8 0.7

RoA (%) 0.9 1.0 0.7 0.8

RoE (%) 16.5 17.1 11.1 14.1

Source: Company, Angel Research

ACCUMULATECMP `286

Target Price `301

Investment Period 12 months

Stock Info

Sector Banking

Market Cap (`cr) 8,347

Beta 1.0

52 Week High / Low 545/275

Avg. Daily Volume 81,152

Face Value (`) 10BSE Sensex 17,465

Nifty 5,258

Reuters Code ORBC.BO

Bloomberg Code OBC@IN

Shareholding Pattern (%)

Promoters 58.0

MF / Banks / Indian Fls 25.4

FII / NRIs / OCBs 9.9

Indian Public / Others 6.7

Abs. (%) 3m 1yr 3yr

Sensex (3.6) (14.2) 78.4

OBC (17.1) (45.9) 135.0

Vaibhav Agrawal022 3935 7800 Ext: 6808

[email protected]

Shrinivas Bhutda022 3935 7800 Ext: 6845

[email protected]

Varun Varma022 3935 7800 Ext: 6847

[email protected]

Oriental Bank of CommercePerformance Highlights

2QFY2012 Result Update | Banking

November 2, 2011


2/11

Oriental Bankof Commerce | 2QFY2012 Result Update

November 2, 2011 2

Exhibit 1:2QFY2012 performanceParticulars (` cr) 2QFY12 2QFY12 % chg (qoq) 2QFY11 % chg (yoy)Interest earned 3,801 3,597 5.7 2,992 27.0- on Advances / Bills 2,873 2,684 7.1 2,209 30.1- on investments 829 769 7.9 702 18.1

- on balance with RBI & others 98 110 (10.9) 81 21.5

- on others 1 34 (97.9) 0 -

Interest Expended 2,812 2,578 9.1 1,915 46.8Net Interest Income 989 1,018 (2.8) 1,077 (8.1)Other income 277 324 (14.3) 214 29.6Other income excl. treasury 259 252 2.8 213 21.5

- Fee Income 192 147 30.7 165 16.4

- Treasury Income. 18 72 (74.5) 1 -

- Recov. from written off a/cs 26 39 (33.3) 18 42.2

- Others 41 66 (38.1) 30 36.6

Operating income 1,267 1,342 (5.6) 1,291 (1.9)Operating expenses 509 541 (5.9) 485 4.8- Employee expenses 278 320 (12.9) 276 0.7

- Other Opex 230 221 4.2 209 10.3

Pre-provision Profit 758 801 (5.4) 806 (5.9)Provisions & contingencies 485 314 54.4 226 114.5- Provisions for NPAs 342 135 152.8 220 55.8

- Provisions for Investments 80 134 (40.0) 0 -

- Other Provisions 63 45 39.0 7 843.3

PBT 273 487 (44.0) 580 (52.9)Provision for Tax 105 132 (20.6) 182 (42.2)PAT 168 355 (52.7) 398 (57.8)Effective Tax Rate (%) 38.5 27.2 1,135bp 31.4 713bp


Exhibit 2:2QFY2012 Actual vs. Angel estimatesParticulars (` cr) Actual Estimates Var. (%)Net interest income 989 1,026 (3.6)

Other income 277 255 8.9

Operating income 1,267 1,281 (1.1)Operating expenses 509 536 (5.1)

Pre-prov. profit 758 745 1.8Provisions & cont. 485 265 83.1

PBT 273 480 (43.1)

Prov. for taxes 105 156 (32.4)

PAT 168 324 (48.2)Source: Company, Angel Research


3/11


November 2, 2011 3

Exhibit 3:2QFY2012 performanceParticulars (` cr) 2QFY12 1QFY12 % chg (qoq) 2QFY11 % chg (yoy)

Advances (`cr) 104,530 98,216 6.4 86,703 20.6

Deposits (`cr) 149,552 144,554 3.5 125,786 18.9Credit-to-Deposit Ratio (%) 69.9 67.9 195bp 68.9 97bp

Current deposits (`cr) 8,624 8,880 (2.9) 9,261 (6.9)

Saving deposits (`cr) 25,558 24,875 2.7 22,660 12.8

CASA deposits (`cr) 34,182 33,755 1.3 31,921 7.1

CASA ratio (%) 22.9 23.4 (49)bp 25.4 (252)bp

CAR (%) 12.6 13.6 (105)bp 12.8 (21)bp

Tier 1 CAR (%) 9.9 10.8 (85)bp 9.4 52bp

Profitability Ratios (%)Cost of deposits 7.6 7.2 44bp 5.9 177bp

Yield on advances 11.7 11.4 27bp 10.3 137bp

Yield on investments 7.5 7.4 2bp 7.3 13bp

Yield on funds 9.1 8.9 12bp 8.3 74bp

Cost of funds 6.7 6.4 29bp 5.3 138bp

Reported NIM 2.6 2.9 (30)bp 3.3 (66)bp

Cost-to-income ratio 40.2 40.3 (14)bp 37.6 257bp

Asset qualityGross NPAs (`cr) 3,111 2,035 52.9 1,457 113.5

Gross NPAs (%) 3.0 2.1 88bp 1.7 128bp

Net NPAs (`cr) 1,978 1,059 86.8 607 226.1

Net NPAs (%) 1.9 1.1 81bp 0.7 120bp

Provision coverage ratio (%) 63.8 75.1 (1,131)bp 81.0 (1,723)bp

Annualized slippage ratio (%) 6.3 1.6 469bp 1.5 475bp

NPA to avg. assets (%) 0.8 0.3 48bp 0.6 19bp

Source: Company, Angel Research; Note: PCR including technical write-offs


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November 2, 2011 4

Advances growth picks up a bit; NIM declines on interest income

reversal on fresh slippages

The banks advances showed healthy momentum, rising by 6.4% qoq (up by a

reasonable 20.6% yoy) during the quarter. Sequential growth in advances was

driven by large and mid corporates, rising by 25.7% yoy and 15.3% yoy,

respectively. Growth in retail credit was muted at 7.2% yoy; in fact, sequentially

retail outstanding credit declined by 2.6% qoq.

On the deposits side, growth was relatively slower at 3.5% qoq and 18.9% yoy.

CASA deposit growth for the bank fell to sub-10% levels, thereby denting the

already weak liability franchise of the bank. Incremental CASA ratio for the quarter

and on a yoy basis was at sub-10% levels. Savings account growth was moderate

at 12.8% yoy (up 2.7% qoq); however, current account witnessed a decline of 6.9%

yoy (down 2.9% qoq).

Moderating CASA deposits trend and a higher share of bulk deposits in deposits

growth led to a 44bp qoq rise in cost of deposits to 7.6%. The rise in yield on

advances was restricted to 27bp qoq partly on account of reversal of interest

income of `137cr on technical slippages witnessed during the quarter.

Consequently, reported NIM fell sequentially by 30bp to 2.6% a deviation from

the trend witnessed in case of almost all the banks.

Exhibit 4:Advances growth gains momentum


Exhibit 5:Moderation in CASA continues


Exhibit 6:Higher cost of deposits leads to...


Exhibit 7:.... a 30bp sequential drop in reported NIM


0.7

4.7

5.6

2.4

6.4

2.2

2.8

7.5

4.0

3.5

68.970.2

69.067.9

69.9

55.0

60.0

65.0

70.0

75.0

-

2.0

4.0

6.0

8.0

2QFY11 3QFY11 4QFY11 1QFY12 2QFY12

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

25.4

25.2

24.6

23.4

22.9

24.920.5

13.712.7

7.1

-

7.5

15.0

22.5

30.0

20.0

21.5

23.0

24.5

26.0


CASA ratio CASA yoy growth (%, RHS)

5.866.08

6.51

7.19

7.63

5.00

5.50

6.00

6.50

7.00

7.50

8.00


3.30

3.102.98 2.94

2.64

2.00

2.50

3.00

3.50


(%)


5/11


November 2, 2011 5

Fee and forex income drive other income growth

Other income growth for the bank was healthy at 29.5%, driven by higher forex

and recoveries from written-off accounts. Fee income showed healthy traction on a

sequential basis, increasing by 30.7% qoq and 16.4% yoy. Management had in

1QFY2012 guided for 25% growth in fee income for FY2012.

Exhibit 8:Reasonable growth in fee incomeParticulars (` cr) 2QFY12 1QFY12 % chg (qoq) 2QFY11 % chg (yoy)CEB 192 147 30.7 165 16.4

Treasury 18 72 (74.5) 1 2,186.3

Forex 39 48 (18.3) 27 43.9

Recoveries 26 39 (33.3) 18 42.2

Others 2 18 (90.0) 3 (35.3)

Other income 277 324 (14.3) 214 29.5Other income excl. treasury 259 252 2.8 213 21.5Source: Company, Angel Research

Asset quality deteriorates

The bank disappointed on the asset-quality front, with absolute gross and net

NPAs ballooning by 52.9% and 86.8% qoq, respectively. Consequently, gross and

net NPA ratios increased considerably to 3.0% (from 2.1% in 1QFY2012) and

1.9% (from 1.1% in 1QFY2012). Provision coverage ratio (including technical

write-offs) dipped by more than 11% sequentially to 63.8%.

We were building in higher slippages considering the pending migration for

accounts below`10lakhs and the slowing domestic economic growth environment;

however, slippages came in considerably higher than expected. The banks

annualized slippage ratio surged to 6.3% from 1.8% in FY2011. During the

quarter, the bank completed migration of loan accounts below `10lakhs to

system-based NPA recognition platform and attributed around half of the

slippages to this exercise. Even excluding the one-off, slippages rate at over 3%

remained above manageable levels. In addition to this, the bank also restructured

loans of `550cr during the quarter (as compared to `88cr in 1QFY12), taking

outstanding restructured loans to 3.9%.

Exhibit 9:NPA ratios deteriorate; PCR dips ~1,100bp

Source: Company, Angel Research; Note: PCR incl. technical write-offs

Exhibit 10:Huge surge in slippages


1.7

1.9

2.0

2.1

3.0

0.7

0.9

1.0

1.1

1.9

81.077.4 76.8

75.1

63.8

50.0

60.0

70.0

80.0

90.0

-

0.5

1.0

1.5

2.0

2.5

3.0


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

1.5

2.2

3.1

1.6

6.3

0.6

0.5

1.0

0.3

0.8

-

0.2

0.4

0.6

0.8

1.0

1.2

-

1.3

2.6

3.9

5.2

6.5


Slippages (%) Credit cost (%, RHS)


6/11


November 2, 2011 6

The bank could not resort to aggressive write-offs, considering the weakened

profitability for the quarter. The overall pace of deductions in gross NPAs was

considerably lower than fresh slippages. With the completion of migration to

system-based NPA recognition platform, we expect the pace of incrementalslippages to moderate a bit, going forward. Also, recoveries and upgrades are

expected to pick up given the technical nature of at least some portion of fresh

slippages witnessed over 1HFY2012.

Opex under control

Operating expenses for the bank were within control, rising by just 4.8% yoy on the

back of largely stable employee expenses. Due to the 1.9% yoy decline in

operating income as compared to 4.8% yoy growth in operating expenses, the

banks cost-to-income ratio increased to 40.2% from 37.6% in 2QFY2012.

However, opex-to-average assets ratio improved (to 1.2% from 1.4% in

2QFY2011) on the back of higher assets base.

Exhibit 11:Operating costs remain under control


Exhibit 12:Stable cost ratios


Investment concerns

Modest CASA franchise and fee income

OBC is relatively more exposed to NIM pressures in the current higher interest rate

environment on account of bulk deposits comprising a substantial 27.2% of

deposits at the end of 2QFY2012 and CASA ratio being one of the lowest amongst

peers (22.9%). The banks weaker liability franchise came to the fore in2QFY2012, wherein it witnessed a 44bp qoq rise in cost of deposits (relatively

higher than peers). The banks fee income, at 0.6% of average assets in FY2011,

is amongst the lowest in PSU banks.

Outlook and valuation

We have cut our estimates for FY2012 by 15% to factor in the disappointing

performance on the asset-quality front. In spite of the miss on NIM in 2QFY2012,

we maintain our NIM estimate for FY2012, as we expect recoveries from fresh

slippages to gain momentum going forward, leading to recognition of interest

income reversed during 2QFY2012. We expect the bank to report a muted 5.1%

CAGR in earnings over FY2011-13E on account of the weak liability franchise

leading to NIM pressures and incremental stress on asset quality due to migration

to system-based NPA recognition platform and the deteriorating domestic

macroeconomic environment.

276

277

242

320

278

209

210

228 2

21

230

-

150

300

450

600


Staff expenses (` cr) Other opex (` cr)

37.6 38.6 35.8 40.3 40.2

1.41.3

1.2

1.3

1.2

1.0

1.1

1.2

1.3

1.4

30.0

32.5

35.0

37.5

40.0

42.5


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


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November 2, 2011 7

Having said that, we believe the current inexpensive valuations of 0.7x FY2013E

ABV largely factor in the asset-quality stress faced by the bank. Going forward,

incremental slippages are expected to moderate on completion of the migration

and with our expectation of interest rates peaking at the current levels, the bank isexpected to benefit from the stable to declining trend in wholesale interest rates

going forward. Hence, we recommend an Accumulate rating on the stock with atarget price of `301.Exhibit 13:Key assumptionsParticulars (%) Earlier estimates Revised estimatesFY2012 FY2013 FY2012 FY2013Credit growth 17.0 18.0 19.0 16.0

Deposit growth 14.0 14.0 14.0 14.0

CASA ratio 24.4 23.9 24.4 23.9

NIMs 2.5 2.3 2.5 2.3

Other income growth 17.9 11.8 19.6 10.4

Growth in staff expenses 18.0 12.0 17.0 12.0

Growth in other expenses 10.0 15.0 10.0 15.0

Slippages 1.8 1.8 3.1 2.5

Coverage ratio 76.0 75.0 65.0 70.0

Treasury gain/(loss) (% of investments) 0.2 0.2 0.2 0.2

Source: Angel Research

Exhibit 14:Change in estimatesParticulars (` cr) FY2012 FY2013Earlierestimates Revisedestimates Var. (%) Earlierestimates Revisedestimates Var. (%)NII 4,136 4,119 (0.4) 4,499 4,483 (0.3)

Non-interest income 1,132 1,148 1.4 1,265 1,268 0.2

Operating income 5,269 5,267 (0.0) 5,764 5,751 (0.2)Operating expenses 2,166 2,155 (0.5) 2,453 2,442 (0.5)

Pre-prov. profit 3,103 3,112 0.3 3,311 3,309 (0.0)Provisions & cont. 1,019 1,350 32.4 839 851 1.5

PBT 2,083 1,762 (15.4) 2,472 2,458 (0.6)

Prov. for taxes 676 572 (15.4) 802 797 (0.6)

PAT 1,408 1,190 (15.4) 1,670 1,660 (0.6)Source: Angel Research


8/11


November 2, 2011 8

Exhibit 15:P/ABV band


Exhibit 16:Recommendation summaryCompany Reco. CMP(`) Tgt. price(`) Upside(%) FY2013EP/ABV (x) FY2013ETgt P/ABV (x) FY2013EP/E (x) FY2011-13EEPS CAGR (%) FY2013ERoA (%) FY2013ERoE (%) AxisBk Buy 1,128 1,41425.4 1.8 2.3 9.9 17.7 1.5 20.0

FedBk Accumulate 412 444 7.9 1.1 1.2 8.4 19.5 1.2 14.0

HDFCBk Neutral 483 - - 3.3 - 16.8 30.5 1.7 20.9

ICICIBk* Buy 887 1,114 25.6 1.6 2.0 13.0 23.3 1.4 15.4

SIB Neutral 23 - - 1.1 - 6.8 15.6 1.0 18.2

YesBk Buy 308 355 15.4 1.9 2.3 10.2 19.9 1.3 20.8

AllBk Accumulate 161 1695.2 0.7 0.8 4.3 12.2 1.0 18.4

AndhBk Neutral 118 -- 0.8 - 5.3 (0.9) 0.9 15.8

BOB Accumulate 800 881 10.1 1.1 1.2 5.7 14.2 1.2 20.7

BOI Accumulate 333 362 8.7 0.9 1.0 5.5 15.2 0.7 17.1

BOM Accumulate 50 55 10.9 0.7 0.7 4.3 38.1 0.6 16.5

CanBk Accumulate 482 510 5.9 0.9 1.0 5.6 (3.0) 0.9 17.2

CentBk Neutral 101 - - 0.7 - 5.2 (16.1) 0.5 13.9

CorpBk Buy 428 498 16.3 0.7 0.8 4.4 1.5 0.8 16.6

DenaBk Neutral 82 - - 0.6 - 3.9 7.5 0.8 16.4

IDBI# Neutral 115 - - 0.7 - 5.4 12.3 0.7 14.0

IndBk Neutral 215 - - 0.9 - 5.5 0.2 1.1 17.4

IOB Accumulate 100 107 7.3 0.6 0.7 4.0 20.0 0.6 15.9

J&KBk Neutral 823 - - 0.9 - 5.2 12.0 1.3 17.8

OBC Accumulate 286 301 5.3 0.7 0.7 5.0 5.1 0.8 14.1PNB Accumulate 979 1,106 13.0 1.1 1.3 5.8 9.9 1.1 20.6

SBI* Buy 1,909 2,239 17.3 1.4 1.7 7.3 41.4 1.0 21.9

SynBk Buy 107 123 15.3 0.7 0.8 4.7 11.8 0.7 16.3

UcoBk Neutral 74 - - 0.9 - 4.4 15.9 0.7 16.7

UnionBk Accumulate 225 238 5.8 0.9 0.9 5.1 5.2 0.8 17.0

UtdBk Buy 71 82 15.2 0.6 0.7 4.2 13.4 0.6 14.1 VijBk Neutral 60 -- 0.8 - 7.3 (3.2) 0.4 10.5

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

0

100

200

300

400

500

600

700

Apr-06

Nov-0

6

Jun-0

7

Jan-0

8

Aug-0

8

Mar-09

Oct-09

May-1

0

Dec-1

0

Jul-11

Feb-1

2

Price (`) 0.4x 0.7x 1x 1.3x 1.6x


9/11


November 2, 2011 9

Income statement

Y/E March (` cr) FY07 FY08 FY09 FY10 FY11 FY12E FY13ENet Interest Income 1,691 1,682 1,997 2,907 4,178 4,119 4,483- YoY Growth (%) 5.4 (0.6) 18.7 45.6 43.7 (1.4) 8.8Other Income 612 628 1,071 1,200 960 1,148 1,268- YoY Growth (%) 10.6 2.6 70.7 12.0 (20.0) 19.6 10.4

Operating Income 2,303 2,310 3,068 4,107 5,138 5,267 5,751- YoY Growth (%) 6.7 0.3 32.8 33.9 25.1 2.5 9.2

Operating Expenses 998 1,080 1,383 1,686 1,892 2,155 2,442- YoY Growth (%) 3.3 8.2 28.1 21.9 12.2 13.9 13.3

Pre - Provision Profit 1,305 1,230 1,685 2,421 3,245 3,112 3,309- YoY Growth (%) 9.5 (5.7) 37.0 43.7 34.0 (4.1) 6.3

Prov. & Cont. 252 (32) 526 818 1,208 1,350 851- YoY Growth (%) 10.8 (112.6) (1748.9) 55.6 47.8 11.7 (36.9)

Profit Before Tax 1,053 1,262 1,159 1,604 2,037 1,762 2,458- YoY Growth (%) 9.2 19.9 (8.1) 38.3 27.0 (13.5) 39.5

Prov. for Taxation 226 421 254 469 534 572 797- as a % of PBT 21.5 33.3 21.9 29.3 26.2 32.4 32.4

PAT 827 841 905 1,134 1,503 1,190 1,660- YoY Growth (%) 2.9 1.7 7.6 25.3 32.5 (20.8) 39.5

Reported PAT 581 353 905 1,134 1,503 1,190 1,660- YoY Growth (%) 4.2 (39.2) 156.3 25.3 32.5 (20.8) 39.5

Balance sheetY/E March (` cr) FY07 FY08 FY09 FY10 FY11 FY12E FY13EShare Capital 251 251 251 251 292 292 292

Reserves & Surplus 5,350 5,525 7,153 7,987 10,805 11,741 13,063

Deposits 63,996 77,857 98,369 120,258 139,054 158,522 180,715

- Growth (%) 27.5 21.7 26.3 22.3 15.6 14.0 14.0

Borrowings 623 1,840 722 2,337 2,589 3,672 4,179

Tier 2 Capital 1,476 1,726 2,250 2,550 3,050 3,630 4,210

Other Liab. & Prov. 2,242 3,507 3,838 4,048 5,553 5,755 6,496

Total Liabilities 73,936 90,705 112,583 137,431 161,343 183,612 208,954Cash Balances 5,336 7,322 6,880 8,087 9,515 10,304 11,746

Bank Balances 2,173 2,892 5,345 6,513 9,574 9,181 10,448

Investments 19,808 23,951 28,489 35,785 42,075 45,183 48,943

Advances 44,138 54,566 68,500 83,489 95,908 114,131 132,392

- Growth (%) 31.5 23.6 25.5 21.9 14.9 19.0 16.0

Fixed Assets 383 387 1,384 1,394 1,398 1,543 1,703

Other Assets 2,098 1,587 1,984 2,162 2,874 3,270 3,722

Total Assets 73,936 90,705 112,583 137,431 161,343 183,612 208,954- Growth (%) 25.4 22.7 24.1 22.1 17.4 13.8 13.8


10/11


November 2, 2011 10

Ratio analysisY/E March FY07 FY08 FY09 FY10 FY11 FY12E FY13EProfitability ratios (%)NIMs 2.7 2.1 2.0 2.4 2.9 2.5 2.3Cost to Income Ratio 43.3 46.7 45.1 41.1 36.8 40.9 42.5

RoA 1.2 1.0 0.9 0.9 1.0 0.7 0.8

RoE 15.4 14.8 14.8 16.5 17.1 11.1 14.1

B/S ratios (%)CASA Ratio 30.3 27.9 23.7 25.0 24.6 24.4 23.9

Credit/Deposit Ratio 69.0 70.1 69.6 69.4 69.0 72.0 73.3

CAR 12.5 12.1 11.4 11.8 13.3 13.9 13.8

- Tier I 10.1 9.3 8.0 8.7 10.5 10.7 10.4

Asset Quality (%)Gross NPAs 3.2 2.3 1.5 1.7 2.0 3.7 3.8

Net NPAs 0.5 1.0 0.6 0.9 1.0 2.3 2.8

Slippages 1.1 1.3 0.9 1.6 1.8 3.1 2.5

Loan Loss Prov./Avg. Assets (0.3) (0.2) 0.2 0.4 0.6 0.6 0.4

Provision Coverage 85.2 57.9 58.2 76.7 76.8 65.0 70.0

Per Share Data (`)EPS 33.0 33.6 36.1 45.3 51.5 40.8 56.9

ABVPS 223.5 221.8 250.4 292.2 350.0 360.5 415.6

DPS 4.7 4.7 7.3 9.1 10.4 7.5 10.0

Valuation RatiosPER (x) 8.7 8.5 7.9 6.3 5.6 7.0 5.0

P/ABVPS (x) 1.3 1.3 1.1 1.0 0.8 0.8 0.7

Dividend Yield 1.6 1.6 2.6 3.2 3.6 2.6 3.5

DuPont Analysis (%)NII 2.5 2.0 2.0 2.3 2.8 2.4 2.3

(-) Prov. Exp. 0.4 (0.0) 0.5 0.7 0.8 0.8 0.4

Adj. NII 2.2 2.1 1.4 1.7 2.0 1.6 1.9

Treasury 0.2 0.2 0.5 0.3 0.1 0.1 0.0

Int. Sens. Inc. 2.3 2.3 1.9 2.0 2.0 1.7 1.9

Other Inc. 0.8 0.6 0.6 0.6 0.6 0.6 0.6

Op. Inc. 3.1 2.8 2.5 2.6 2.6 2.3 2.5

Opex 1.5 1.3 1.4 1.3 1.3 1.2 1.2PBT 1.6 1.5 1.1 1.3 1.4 1.0 1.3

Taxes 0.3 0.5 0.2 0.4 0.4 0.3 0.4

RoA 1.2 1.0 0.9 0.9 1.0 0.7 0.8Leverage (x) 12.3 14.5 16.6 18.2 17.0 16.2 16.6

RoE 15.4 14.8 14.8 16.5 17.1 11.1 14.1


11/11


November 2, 2011 11

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

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Disclosure of Interest Statement Oriental Bank of Commerce

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

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oriental bank of commerce result updated

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