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7/27/2019 Oriental Bank, 1Q FY 2014
http://slidepdf.com/reader/full/oriental-bank-1q-fy-2014 1/11
Please refer to important disclosures at the end of this report 1
Particulars (` cr) 1QFY14 4QFY13 % chg (qoq) 1QFY13 % chg (yoy)
NII 1,307 1,214 7.7 1,126 16.1
Pre-prov. profit 1,088 947 15.0 897 21.4
PAT 353 308 14.8 391 (9.7)
Source: Company, Angel Research
Oriental Bank of Commerce reported a healthy operating performance forthe quarter with NII growth of 16.1% yoy. The bank continued to face assetquality pressure during the quarter, as slippages remained high at 2.4%. Theprovisioning expenses for the bank grew by 60.4%, resulting in bottom-line
de-growth of 9.7% yoy.Moderate business growth; NIM improves marginally: The bank’s business growthwas moderate during the quarter, as advances grew by 12.4% yoy largely aided by healthy 22.1% yoy growth in retail loan book. On the deposits front,growth was lower at 11.5% yoy, mostly due to shedding of high cost bulkdeposits (now stand at 17.7% of the overall deposits as against 20.3% in4QFY2013). CASA deposits too grew at a moderate pace of 10.1% yoy. TheCASA ratio declined by 81bp qoq to 23.7%. Sequentially, cost of depositsdeclined marginally by 8bp to 7.7% and yield on advances increased by 5bpto 12.0%. Consequently, the NIM for the bank improved 8bp qoq to 2.9%. The bank’s other income excluding treasury de-grew by 21.2% yoy. Thetreasury income came in strong at ` 206cr compared to ` 13cr loss in
1QFY2013. On the asset quality front, despite high slippages (at `
762cr or2.4%), better recoveries and upgrades performance (at ` 385cr as comparedto ` 249cr for 4QFY2013) aided the bank to limit the increase in Gross andNet NPA levels to 2.8% and 1.2% qoq, respectively. The PCR (incl. technicalwrite-offs) for the bank improved 88bp qoq to 63.9%. Going ahead, the bankexpects slippages of ~ ` 750-800cr per quarter for the remaining quarters ofFY2014. During the quarter, the bank restructured advances worth ` 419cr,thereby taking its total outstanding restructuring book to ` 10,268cr. Therestructuring pipeline for the bank stands at ` 1,400cr.
Outlook and valuation: The bank has been witnessing asset quality pressures on its
loan book lately. We remain wary of the incremental asset quality and margins
concerns for the bank, as we take into consideration its high exposure to stressed
sectors, its predominantly wholesale based funding profile and recent macro
developments amidst an overall weak economic environment. Overall, we have a
cautious view on the sector, with a positive bias towards more retail-oriented
banks, on both assets as well as on liabilities. Hence, we recommend a neutral
rating on the stock.
Key financials (standalone)Y/E March (` cr) FY2012 FY2013 FY2014E FY2015E
NII 4,216 4,701 5,336 5,878
% chg 0.9 11.5 13.5 10.2
Net profit 1,147 1,328 1,362 1,532
% chg (23.7) 15.8 2.5 12.5
NIM (%) 2.6 2.5 2.6 2.5
EPS (`) 39.3 45.5 46.7 52.5
P/E (x) 3.5 3.0 2.9 2.6
P/ABV (x) 0.4 0.4 0.3 0.3
RoA (%) 0.7 0.7 0.6 0.6
RoE (%) 10.8 11.5 10.8 11.1
Source: Company, Angel Research; Note: CMP as of August 6, 2013
NEUTRALCMP ` 137
Target Price -
Investment Period -
Stock Info
Sector Banking
Market Cap ( ` cr) 4,007
Beta 1.2
52 Week High / Low 368/134
Avg. Daily Volume 105,354
Face Value ( `
) 10BSE Sensex 18,733
Nifty 5,542
Reuters Code ORBC.BO
Bloomberg Code OBC@IN
Shareholding Pattern (%)
Promoters 58.0
MF / Banks / Indian Fls 24.6
FII / NRIs / OCBs 10.3
Indian Public / Others 7.1
Abs. (%) 3m 1yr 3yr
Sensex (4.8) 7.6 3.2
OBC (46.6) (41.5) (64.8)
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Sourabh Taparia
022 – 3935 7800 Ext: 6872
Harshal Patkar
022 – 3935 7800 Ext: 6847
Oriental Bank of Commerce
Performance Highlights
1QFY2014 Result Update | Banking
Aug 6, 2013
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Oriental Bank of Commerce | 1QFY2014 Result Update
August 6, 2013 2
Exhibit 1: 1QFY2014 performance (standalone)
Particulars (` cr) 1QFY14 4QFY13 % chg (qoq) 1QFY13 % chg (yoy) FY2013 FY2012 % chg
Interest earned 4,718 4,534 4.0 4,287 10.0 17,705 15,815 12.0
- on Advances / Bills 3,635 3,494 4.0 3,332 9.1 13,758 12,075 13.9- on investments 1,045 969 7.9 946 10.5 3,854 3,385 13.8
- on balance with RBI & others 30 12 155.9 8 258.9 31 319 (90.1)
- on others 7 60 (88.2) 1 589.3 61 36 69.9
Interest Expended 3,411 3,321 2.7 3,161 7.9 13,004 11,599 12.1
Net Interest Income 1,307 1,214 7.7 1,126 16.1 4,701 4,216 11.5
Other income 538 462 16.5 408 31.7 1,655 1,240 33.4
Other income excl. treasury 332 394 (15.5) 422 (21.2) 1,486 1,071 38.8
- Fee Income 193 229 (15.8) 170 13.5 766 726 5.5
- Treasury Income. 206 68 201.8 (13) NA 169 169 (0.4)
- Others 140 165 (15.1) 252 (44.5) 720 345 108.7
Operating income 1,845 1,675 10.1 1,534 20.3 6,356 5,456 16.5
Operating expenses 757 729 3.8 638 18.7 2,665 2,315 15.1
- Employee expenses 450 443 1.7 376 19.7 1,576 1,357 16.2
- Other Opex 306 286 7.1 262 17.2 1,089 959 13.6
Pre-provision Profit 1,088 947 15.0 897 21.4 3,691 3,141 17.5
Provisions & contingencies 533 759 (29.8) 332 60.4 2,155 1,715 25.6
- Provisions for NPAs 345 499 (30.8) 430 (19.8) 1,581 1,079 46.6
- Provisions for Investments 32 49 (34.5) (132) NA (74) 285 NA
- Other Provisions 156 212 (26.3) 34 361.2 648 351 84.7
PBT 556 188 195.9 564 (1.6) 1,536 1,426 7.7
Provision for Tax 202 (120) NA 173 16.8 208 284 (26.8)
PAT 353 308 14.8 391 (9.7) 1,328 1,142 16.3
Effective Tax Rate (%) 36.4 (64.0) 10040bp 30.7 574bp 13.5 19.9 (638)bp
Source: Company, Angel Research
Exhibit 2: 1QFY2014 – Actual vs. Angel estimates
Particulars (` cr) Actual Estimates Var. (%)
Net interest income 1,307 1,247 4.8
Other income 538 331 62.6
Operating income 1,845 1,578 16.9
Operating expenses 757 683 10.9
Pre-prov. profit 1,088 895 21.6
Provisions & cont. 533 456 16.8
PBT 556 439 26.6
Prov. for taxes 202 114 77.2
PAT 353 325 8.8
Source: Company, Angel Research
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Oriental Bank of Commerce | 1QFY2014 Result Update
August 6, 2013 3
Exhibit 3: 1QFY2014 performance (standalone)
Particulars (` cr) 1QFY14 4QFY13 % chg (qoq) 1QFY13 % chg (yoy)
Advances ( ` cr) 127,995 128,955 (0.7) 113,896 12.4
Deposits ( ` cr) 176,275 175,898 0.2 158,152 11.5Credit-to-Deposit Ratio (%) 72.6 73.3 (70)bp 72.0 59bp
Current deposits ( ` cr) 10,551 11,663 (9.5) 9,899 6.6
Saving deposits ( ` cr) 31,293 31,522 (0.7) 28,092 11.4
CASA deposits ( ` cr) 41,844 43,185 (3.1) 37,990 10.1
CASA ratio (%) 23.7 24.6 (81)bp 24.0 (28)bp
CAR (%) 12.0 12.0 0bp 12.3 (25)bp
Tier 1 CAR (%) 9.2 9.2 0bp 9.9 (74)bp
Profitability Ratios (%)
Cost of deposits 7.7 7.8 (8)bp 8.0 (28)bp
Yield on advances 12.0 12.0 5bp 12.4 (35)bp
Yield on investments 7.4 7.4 6bp 7.5 (4)bp
Yield on funds 9.5 9.5 (6)bp 9.5 (6)bp
Cost of funds 6.9 6.9 (4)bp 7.0 (19)bp
Reported NIM 2.9 2.8 8bp 2.8 11bp
Cost-to-income ratio 41.0 43.5 (249)bp 41.6 (55)bp
Asset quality
Gross NPAs ( ` cr) 4,303 4,184 2.8 3,378 27.4
Gross NPAs (%) 3.4 3.2 15bp 3.0 39bp
Net NPAs ( ` cr) 2,936 2,903 1.2 2,306 27.3
Net NPAs (%) 2.3 2.3 7bp 2.1 29bp
Provision coverage ratio (%) 63.9 63.0 88bp 64.4 (54)bp
Slippage ratio (%) 2.4 3.7 (135)bp 2.5 (15)bp
NPA to avg. assets (%) 0.7 1.0 (33)bp 1.0 (27)bp
Source: Company, Angel Research; Note: PCR including technical write-offs
Business growth moderate; NIM higher by 8bp qoq
The business growth for the bank was moderate with advances growing by 12.4%
yoy and deposits growing by 11.5% yoy. The growth in advances was driven by
healthy growth in retail book which grew by 22.1% yoy. The Management targets
to achieve a loan growth of 13% for FY2014.
On the deposits front, growth was lower at 11.5% yoy mostly due to shedding of
high cost bulk deposits (now stand at 17.7% of the overall deposits as against
20.3% in 4QFY2013). CASA deposits too grew at a moderate pace of 10.1%
yoy, with savings deposits growing by 11.4% yoy and current account deposits
growing by 6.6% yoy. CASA ratio declined 81bp qoq and 28bp yoy to 23.7%.
Sequentially, cost of deposits declined marginally by 8bp to 7.7% on account of
stable CASA ratio and shedding of high cost bulk deposits. Yield on advances for
the bank increased by 5bp to 12.0%. Consequently, the NIM for the bank
improved 8bp qoq to 2.9%.
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Oriental Bank of Commerce | 1QFY2014 Result Update
August 6, 2013 4
Exhibit 4: Business growth moderate
Source: Company, Angel Research
Exhibit 5: CASA ratio declines sequentially
Source: Company, Angel Research
Exhibit 6: Lower CoD due to shedding off of bulk deposits
Source: Company, Angel Research
Exhibit 7: NIM improves 8bp qoq
Source: Company, Angel Research
Subdued performance on non-interest income (excl. treasury)
front
During the quarter, the bank’s non-interest income (excluding treasury) registered
a decline of 21.2% yoy to ` 332cr. The performance on the CEB front was
moderate, with CEB income increasing by 13.5% yoy to ` 193cr. The treasury
income came in strong at ` 206cr compared to a ` 13cr loss in 1QFY2013, thereby
aiding strong growth of 31.7% yoy in overall other income.
Slippages remain high; however, better recoveries and upgrades
performance results in moderate increase in NPA levels
During the quarter, the bank continued to face asset quality pressure, as
slippages remained high at ` 762cr (annualized slippage rate of 2.4%) as
compared to ` 1,040 in 4QFY2013 and ` 707cr in 1QFY2013. Performance
on recoveries and upgrades for the bank came in healthy at ` 385cr for the
quarter as compared to ` 249cr for 4QFY2013. Going ahead, the bank
expects slippages of ~ ` 750-800cr per quarter for the remaining quarters of
FY2014. Despite high slippages, better recoveries and upgrades performance
aided the bank to limit the increase in Gross and Net NPA levels to 2.8% and
1.2% qoq, respectively. Gross NPA stood at 3.4% (3.2% for 4QFY2013), while
1 6 . 0
1 2 . 7
1 1 . 7
1 5 . 2
1 2 . 4
9 . 4
9 . 8
7 . 9
1 2 . 8
1 1 . 5
72.071.8
73.4 73.3
72.6
70.0
72.0
74.0
-
5.0
10.0
15.0
20.0
1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
Adv. yoy chg (%) Dep. yoy chg (%) CDR (%, RHS)
2 4 . 0
2 4 . 1
2 3 . 9
2 4 . 6
2 3 . 7
12.5
15.9 15.6
14.8
10.1
-
5.0
10.0
15.0
20.0
20.0
21.5
23.0
24.5
26.0
1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
CASA ratio CASA yoy growth (%, RHS)
7.98 7.93
7.80 7.787.70
7.00
7.50
8.00
1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
2.79 2.792.84 2.82
2.90
2.25
2.50
2.75
3.00
1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
(%)
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Oriental Bank of Commerce | 1QFY2014 Result Update
August 6, 2013 5
the net NPA for the bank remained flat at 2.3%. The PCR (incl. technical
write-offs) for the bank increased by 88bp qoq to 63.9%.
During the quarter, the bank restructured advances worth ` 419cr, thereby
taking its total outstanding restructuring book to ` 10,268cr. The restructuring
pipeline for the bank is ` 1,400cr for the next quarter.
Exhibit 8: NPA ratios trend
Source: Company, Angel Research; Note: PCR incl. technical write-offs
Exhibit 9: Slippages remain high
Source: Company, Angel Research
Exhibit 10: Opex trends
Source: Company, Angel Research
Exhibit 11: Cost ratios trends
Source: Company, Angel Research
Investment concerns
Modest CASA franchise and fee income
The bank’s relatively higher presence in metro and urban areas, compared to
other PSBs, exposes it to increased competition, leading to lower CASA ratio. As a
result, it is relatively more exposed to NIM pressures on account of its CASA ratio
being one of the lowest amongst peers (23.7% as of 1QFY2014). The bank’s fee
income, at 0.8% of average assets in FY2013, is also on the lower side.
3 . 0
2 . 9
3 . 0
3 . 2
3 . 4
2 . 1
2 . 0
2 . 1
2 . 3
2 . 3
64.4 64.5 63.663.0
63.9
50.0
55.0
60.0
65.0
70.0
-
0.5
1.0
1.5
2.0
2.5
3.0
1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
Gross NPAs (%) Net NPAs (%) PCR (%, RHS)
2 . 5
2 . 3
2 . 9
3 . 7
2 . 4
1.0
0.7
0.7
1.0
0.7
-
0.2
0.4
0.6
0.8
1.0
1.2
-
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
Slippages (%) Credit cost (%, RHS)
3 7 6
3 6 6
3 9 1
4 4 3
4 5 0
2 6 2
2 7 6
2 6 5
2
8 6
3 0 6
17.731.7
7.5
11.9 19.7
(30.0)
(10.0)
10.0
30.0
50.0
70.0
-
100
200
300
400
500
600
700
1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
Staff Exp (` cr) Other opex (` cr) Staff Exp (yoy gr.)-RHS
41.6 41.1 41.5 43.5 41.0
1.4
1.41.4
1.5 1.5
1.3
1.4
1.4
1.5
1.5
1.6
39.0
40.0
41.0
42.0
43.0
44.0
1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
CIR (%) Opex to average assets (%, RHS)
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Oriental Bank of Commerce | 1QFY2014 Result Update
August 6, 2013 6
Outlook and valuation
The bank has been witnessing asset quality pressures on its loan book lately. We
remain wary of the incremental asset quality and margin concerns for the bank, as
we take into consideration its high exposure to stressed sectors, its predominantly
wholesale based funding profile and recent macro developments amidst an overall
weak economic environment. Overall, we have a cautious view on the sector, with
a positive bias towards more retail-oriented banks, on both assets as well as on
liabilities. Hence, we recommend a Neutral rating on the stock.
Exhibit 12: Key assumptions
Particulars (%)Earlier estimates Revised estimates
FY2014 FY2015 FY2014 FY2015
Credit growth 15.0 15.0 13.0 15.0
Deposit growth 11.0 13.0 11.0 13.0CASA ratio 24.5 24.4 24.5 24.4
NIMs 2.6 2.7 2.6 2.5
Other income growth (13.1) 4.7 (4.4) (0.1)
Growth in staff expenses 10.0 7.5 15.0 7.5
Growth in other expenses 7.5 7.5 15.0 7.5
Slippages 2.5 2.6 2.8 2.6
Coverage ratio 66.0 67.5 62.5 65.0
Source: Angel Research
Exhibit 13: Change in estimates
Particulars (` cr)FY2014 FY2015
Earlierestimates
Revisedestimates
Var. (%)Earlier
estimatesRevised
estimatesVar. (%)
NII 5,351 5,336 (0.3) 6,170 5,878 (4.7)
Non-interest income 1,439 1,581 9.9 1,506 1,580 4.9
Operating income 6,790 6,918 1.9 7,676 7,459 (2.8)
Operating expenses 2,904 3,065 5.5 3,122 3,295 5.5
Pre-prov. profit 3,885 3,853 (0.8) 4,553 4,164 (8.6)
Provisions & cont. 1,690 1,790 5.9 1,801 1,843 2.3
PBT 2,195 2,063 (6.0) 2,752 2,321 (15.7)
Prov. for taxes 571 701 22.8 936 789 (15.7)
PAT 1,625 1,362 (16.2) 1,817 1,532 (15.7)
Source: Angel Research
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Oriental Bank of Commerce | 1QFY2014 Result Update
August 6, 2013 7
Exhibit 14: P/ABV band
Source: Company, Angel Research
Exhibit 15: Recommendation summary
Company Reco.CMP
(`)Tgt. price
(`)Upside
(%)FY2014EP/ABV (x)
FY2014ETgt P/ABV (x)
FY2014EP/E (x)
FY2012-14EEPS CAGR (%)
FY2014ERoA (%)
FY2014ERoE (%)
AxisBk Buy 1,090 1,255 15 1.2 1.4 6.9 19.1 1.6 18.1
FedBk Neutral 338 - - 0.8 - 6.5 2.9 1.0 12.3
HDFCBk Buy 608 745 23 2.9 3.5 13.5 26.3 1.9 22.8
ICICIBk* Buy 866 1,038 20 1.2 1.5 9.0 15.8 1.6 15.4
SIB Neutral 20 - - 0.8 - 4.8 5.7 0.9 16.2
YesBk Neutral 274 - - 1.2 - 5.5 16.9 1.3 22.8
AllBk Neutral 67 - - 0.3 - 2.2 12.6 0.6 12.4 AndhBk Reduce 57 51 (10) 0.4 0.4 3.4 (15.1) 0.5 10.0
BOB Neutral 488 - - 0.6 - 3.9 8.3 0.8 14.2
BOI Neutral 166 - - 0.4 - 2.7 16.2 0.7 13.9
BOM Neutral 40 - - 0.5 - 3.4 5.4 0.5 14.1
CanBk Neutral 239 - - 0.4 - 4.0 (3.4) 0.6 10.4
CentBk Reduce 54 50 (8) 0.5 0.5 3.4 40.1 0.5 12.8
CorpBk Neutral 268 - - 0.3 - 2.7 2.3 0.7 13.5
DenaBk Neutral 45 - - 0.3 - 2.1 (3.3) 0.6 13.2
IDBI# Neutral 57 - - 0.3 - 2.6 25.1 0.8 13.3
IndBk Neutral 70 - - 0.3 - 2.1 (4.2) 0.8 12.4
IOB Neutral 39 - - 0.3 - 2.5 57.5 0.5 10.5
J&KBk Neutral 1,063 - - 0.8 - 5.2 (3.5) 1.3 16.3
OBC Neutral 137 - - 0.3 - 2.6 7.4 0.6 11.1
PNB Neutral 521 - - 0.5 - 3.2 10.8 1.0 15.7
SBI* Neutral 1,641 - - 0.9 - 5.8 17.5 1.0 17.0
SynBk Neutral 75 - - 0.4 - 3.2 (16.0) 0.6 12.8
UcoBk Neutral 54 - - 0.5 - 3.5 66.4 0.6 13.5
UnionBk Neutral 113 - - 0.4 - 2.8 6.2 0.6 13.4
UtdBk Neutral 34 - - 0.3 - 1.7 54.6 0.6 14.7
VijBk Neutral 36 - - 0.4 - 4.1 (0.4) 0.4 9.8
Source: Company, Angel Research; Note:*Target multiples=SOTP Target Price/ABV (including subsidiaries), #Without adjusting for SASF
0
100
200
300
400
500
600
700800
900
A p r - 0 6
D e c - 0 6
A u g - 0 7
A p r - 0 8
D e c - 0 8
A u g - 0 9
A p r - 1 0
D e c - 1 0
A u g - 1 1
A p r - 1 2
D e c - 1 2
A u g - 1 3
Price (`) 0.4x 0.7x 1x 1.3x 1.6x
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Oriental Bank of Commerce | 1QFY2014 Result Update
August 6, 2013 8
Company Background
Oriental Bank of Commerce is a mid-sized PSU bank with a balance sheet size of
~ ` 2.0 lakhcr. The bank's branches are mainly concentrated in the northern states
(~60%), with majority being in the state of Punjab (~20%). The bank, unlike most
other PSU banks, has more than half of its branches located in the urban and
metropolitan areas (~55%).
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Oriental Bank of Commerce | 1QFY2014 Result Update
August 6, 2013 9
Income statement (standalone)
Y/E March (` cr) FY09 FY10 FY11 FY12 FY13 FY14E FY15E
Net Interest Income 1,997 2,907 4,178 4,216 4,701 5,336 5,878
- YoY Growth (%) 18.7 45.6 43.7 0.9 11.5 13.5 10.2Other Income 1,071 1,200 960 1,240 1,655 1,581 1,580
- YoY Growth (%) 70.7 12.0 (20.0) 29.2 33.4 (4.4) (0.1)
Operating Income 3,068 4,107 5,138 5,456 6,356 6,918 7,459
- YoY Growth (%) 32.8 33.9 25.1 6.2 16.5 8.8 7.8
Operating Expenses 1,383 1,686 1,892 2,315 2,665 3,065 3,295
- YoY Growth (%) 28.1 21.9 12.2 22.4 15.1 15.0 7.5
Pre - Provision Profit 1,685 2,421 3,245 3,141 3,691 3,853 4,164
- YoY Growth (%) 37.0 43.7 34.0 (3.2) 17.5 4.4 8.1
Prov. & Cont. 526 818 1,208 1,715 2,155 1,790 1,843
- YoY Growth (%) (1748.9) 55.6 47.8 41.9 25.6 (16.9) 3.0
Profit Before Tax 1,159 1,604 2,037 1,426 1,536 2,063 2,321
- YoY Growth (%) (8.1) 38.3 27.0 (30.0) 7.7 34.3 12.5
Prov. for Taxation 254 469 534 279 208 701 789
- as a % of PBT 21.9 29.3 26.2 19.5 13.5 34.0 34.0
PAT 905 1,134 1,503 1,147 1,328 1,362 1,532
- YoY Growth (%) 7.6 25.3 32.5 (23.7) 15.8 2.5 12.5
Reported PAT 905 1,134 1,503 1,147 1,328 1,362 1,532
- YoY Growth (%) 156.3 25.3 32.5 (23.7) 15.8 2.5 12.5
Balance sheet (standalone)Y/E March (` cr) FY09 FY10 FY11 FY12 FY13 FY14E FY15E
Share Capital 251 251 292 292 292 292 292
Reserves & Surplus 7,153 7,987 10,805 11,651 12,484 13,555 14,746
Deposits 98,369 120,258 139,054 155,965 175,898 195,246 220,628
- Growth (%) 26.3 22.3 15.6 12.2 12.8 11.0 13.0
Borrowings 722 2,337 2,589 3,059 4,454 5,115 5,760
Tier 2 Capital 2,250 2,550 3,050 2,200 3,225 3,144 3,066
Other Liab. & Prov. 3,838 4,048 5,553 4,368 4,345 5,024 5,937
Total Liabilities 112,583 137,431 161,343 177,535 200,697 222,376 250,429
Cash Balances 6,880 8,087 9,515 8,462 8,172 8,786 9,928Bank Balances 5,345 6,513 2,103 265 418 3,336 3,756
Investments 28,489 35,785 49,545 52,101 58,555 59,481 63,521
Advances 68,500 83,489 95,908 111,978 128,955 145,719 167,577
- Growth (%) 25.5 21.9 14.9 16.8 15.2 13.0 15.0
Fixed Assets 1,384 1,394 1,398 1,421 1,227 1,319 1,441
Other Assets 1,984 2,162 2,874 3,308 3,370 3,735 4,206
Total Assets 112,583 137,431 161,343 177,535 200,697 222,376 250,429
- Growth (%) 24.1 22.1 17.4 10.0 13.0 10.8 12.6
7/27/2019 Oriental Bank, 1Q FY 2014
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Oriental Bank of Commerce | 1QFY2014 Result Update
August 6, 2013 10
Ratio analysis (standalone)
Y/E March FY09 FY10 FY11 FY12 FY13 FY14E FY15E
Profitability ratios (%)
NIMs 2.0 2.4 2.9 2.6 2.5 2.6 2.5Cost to Income Ratio 45.1 41.1 36.8 42.4 41.9 44.3 44.2
RoA 0.9 0.9 1.0 0.7 0.7 0.6 0.6
RoE 14.8 16.5 17.1 10.8 11.5 10.8 11.1
B/S ratios (%)
CASA Ratio 23.7 25.0 24.6 24.1 24.6 24.5 24.4
Credit/Deposit Ratio 69.6 69.4 69.0 71.8 73.3 74.6 76.0
CAR 12.0 12.5 14.2 12.7 12.0 11.5 10.9
- Tier I 8.4 9.3 11.2 10.1 9.2 9.0 8.6
Asset Quality (%)
Gross NPAs 1.5 1.7 2.0 3.2 3.2 4.2 4.9
Net NPAs 0.6 0.9 1.0 2.2 2.3 2.6 2.5
Slippages 0.9 1.6 1.8 4.0 2.8 2.8 2.6
Loan Loss Prov./Avg. Assets
0.2 0.4 0.6 0.6 0.8 0.6 0.6
Provision Coverage 58.2 76.7 76.8 61.5 63.0 62.5 65.0
Per Share Data (`)EPS 36.1 45.3 51.5 39.3 45.5 46.7 52.5
ABVPS 250.4 292.2 350.0 350.4 382.4 408.5 451.5
DPS 7.3 9.1 10.4 7.9 9.2 8.5 10.0
Valuation Ratios
PER (x) 3.8 3.0 2.7 3.5 3.0 2.9 2.6
P/ABVPS (x) 0.5 0.5 0.4 0.4 0.4 0.3 0.3
Dividend Yield 5.3 6.6 7.6 5.8 6.7 6.2 7.3
DuPont Analysis (%)
NII 2.0 2.3 2.8 2.5 2.5 2.5 2.5
(-) Prov. Exp. 0.5 0.7 0.8 1.0 1.1 0.8 0.8
Adj. NII 1.4 1.7 2.0 1.5 1.3 1.7 1.7
Treasury 0.5 0.3 0.1 0.1 0.1 0.1 0.1
Int. Sens. Inc. 1.9 2.0 2.0 1.6 1.4 1.8 1.8
Other Inc. 0.6 0.6 0.6 0.6 0.8 0.6 0.6
Op. Inc. 2.5 2.6 2.6 2.2 2.2 2.4 2.4
Opex 1.4 1.3 1.3 1.4 1.4 1.4 1.4
PBT 1.1 1.3 1.4 0.8 0.8 1.0 1.0
Taxes 0.2 0.4 0.4 0.2 0.1 0.3 0.3
RoA 0.9 0.9 1.0 0.7 0.7 0.6 0.6
Leverage (x) 16.6 18.2 17.0 15.9 16.3 16.7 17.2
RoE 14.8 16.5 17.1 10.8 11.5 10.8 11.1