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					                                                                                             4QFY2012 Result Update | Banking
                                                                                                                          May 4, 2012



    Corporation Bank                                                                       BUY
                                                                                           CMP                                   `385
    Performance Highlights                                                                 Target Price                          `522
 
Particulars (` cr)      4QFY12       3QFY12       % chg (qoq)     4QFY11    % chg (yoy)    Investment Period             12 Months
NII                          834         862             (3.2)       762           9.5
                                                                                           Stock Info
Pre-prov. profit             814         826             (1.4)       747           9.1
PAT                          351         402            (12.7)       345           1.7     Sector                            Banking
Source: Company, Angel Research                                                            Market Cap (` cr)                      5,707

During 4QFY2012, Corporation Bank registered flat yoy growth in net profit to              Beta                                     1.0
`351cr, which was below our estimates mainly on account of lower-than-expected             52 Week High / Low                575/336
operating income (due to lower NIM) and higher-than-expected provisioning.                 Avg. Daily Volume                     13,646
Key positive from the results was stability seen on the asset quality front.               Face Value (`)                           10
We recommend Buy on the stock.                                                             BSE Sensex                            16,831
Business growth healthy; asset quality stable: Advances for the bank grew at a             Nifty                                  5,087
healthy pace of 8.8% qoq, largely driven by segments such as retail, SME and agri.         Reuters Code                      CPBK.BO
Deposits also grew by healthy 7.5% qoq. CASA ratio for the bank declined by                Bloomberg Code                 CRPBK@IN
383bp yoy to 22.1%, on the back of a 12.5% yoy decline witnessed in current
account deposits despite reasonable 9.7% yoy growth in saving deposits. Sequential
dip in yield on advances by 20bp, coupled with qoq an increase of 39bp in cost of          Shareholding Pattern (%)
deposits, led to a qoq decline in reported NIM by 25bp to 2.41%. Non-interest
                                                                                           Promoters                               58.5
income excl. treasury dipped by 19.9% yoy to `327cr, mainly on the back of a
                                                                                           MF / Banks / Indian Fls                 30.6
15.3% yoy decline in fee income to `236cr and lower recoveries from written-off
accounts (`38cr in 4QFY2012 compared to `93cr in 4QFY2011). The bank’s asset               FII / NRIs / OCBs                        4.8
quality continued to remain at stable levels, with both gross and net NPA ratio            Indian Public / Others                   5.5
declining sequentially by 9bp and annualized slippage ratio at comfortable levels of
0.75%. Provision coverage ratio also improved by 242bp qoq to 65.3%. The bank’s
restructured book grew sharply during the quarter by ~`3,000cr (absolute increase          Abs. (%)              3m       1yr       3yr
of 66.1% qoq) to `7,539cr, which primarily included accounts of Air India and              Sensex               (4.4)    (8.9)     38.7
Rajasthan SEBs. Going forward, management guided that ~`600cr advance to
                                                                                           Corporation Bk      (10.4)   (30.8)     72.5
U.P. discom is the only major advance in restructuring pipeline, while adding that
there would be no NPV loss on any SEB advances.

Outlook and valuation: The bank’s low CASA ratio (22.1% as of FY2012) has
contributed to higher margin pressures. However, currently the stock is trading at
0.5x FY2014E ABV, one of the cheapest in the industry, which we believe provides
sufficient margin of safety. We value the bank at 0.7x FY2014E ABV and
recommend Buy on the stock with a target price of `522.

Key financials
Y/E March (` cr)                   FY2011         FY2012          FY2013E     FY2014E
                                                                                          Vaibhav Agrawal
NII                                  2,940          3,147           3,738        4,278
                                                                                          022 – 3935 7800 Ext: 6808
% chg                                 54.5             7.0           18.8         14.4
                                                                                          vaibhav.agrawal@angelbroking.com
Net profit                           1,413          1,506           1,592        1,669
% chg                                 20.8             6.6            5.7           4.8
                                                                                          Varun Varma
NIM (%)                                 2.4            2.1            2.2           2.1
                                                                                          022 – 3935 7800 Ext: 6847
EPS (`)                               95.4          101.7           107.5        112.6    varun.varma@angelbroking.com
P/E (x)                                 4.2            3.9            3.7           3.6
P/ABV (x)                               0.8            0.7            0.6           0.6   Sourabh Taparia
RoA (%)                                 1.1            1.0            0.9           0.8   022 – 3935 7800 Ext: 6872
RoE (%)                               21.9           19.5            17.9         16.5    sourabh.taparia@angelbroking.com
Source: Company, Angel Research

Please refer to important disclosures at the end of this report                                                                      1
                                                Corporation Bank | 4QFY2012 Result Update



              Exhibit 1: 4QFY2012 performance
              Particulars (` cr)                  4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy)
              Interest earned                       3,586    3,363         6.6       2,555      40.3
              - on Advances / Bills                 2,691    2,457         9.5       1,882      43.0
              - on investments                       805          816     (1.4)       591       36.2
              - on balance with RBI & others          11           12     (8.2)         4     145.2
              - on others                             79           78      1.8         78        1.4
              Interest Expended                     2,752    2,501        10.0       1,794      53.4
              Net Interest Income                    834          862     (3.2)       762        9.5
              Other income                           423          442     (4.2)       490     (13.7)
              Other income excl. treasury            327          330     (0.8)       409     (19.9)
              - Fee Income                           236          210     12.3        279     (15.3)
              - Treasury Income                       96          112    (14.0)        82       17.1
              - Recov. from written off a/cs          38           55    (30.8)        93     (59.3)
              - Others                                53           65    (18.2)        37       44.7
              Operating income                      1,257    1,303        (3.5)      1,252       0.4
              Operating expenses                     443          478     (7.2)       506     (12.4)
              - Employee expenses                    216          247    (12.6)       300     (27.9)
              - Other opex                           227          230     (1.4)       206       10.1
              Pre-provision Profit                   814          826     (1.4)       747        9.1
              Provisions & Contingencies             338          301     12.0        269       25.3
              - Provisions for NPAs                  178          177      0.8        187      (4.8)
              - Provisions for Investments           (55)          50   (208.9)        55    (200.8)
              - Other Provisions                     214           74    188.9         28     675.3
              PBT                                    477          524     (9.1)       477      (0.1)
              Provision for Tax                      125          122      2.5        132      (4.9)
              PAT                                    351          402    (12.7)       345        1.7
              Effective Tax Rate (%)                 26.3     23.3      298bp         27.6   (133)bp
              Source: Company, Angel Research




              Exhibit 2: 4QFY2012 – Actual vs. estimates
              Particulars (` cr)                        Actual           Estimates           Var. (%)
              Net interest income                           834               897               (7.1)
              Other income                                  423               474              (10.8)
              Operating income                          1,257               1,372               (8.4)
              Operating expenses                            443               480               (7.8)
              Pre-prov. profit                              814               892               (8.7)
              Provisions & cont.                            338               294               14.9
              PBT                                           477               598              (20.3)
              Prov. for taxes                               125               182              (31.1)
              PAT                                           351               416             (15.5)
              Source: Company, Angel Research




May 4, 2012                                                                                        2
                                                   Corporation Bank | 4QFY2012 Result Update



              Exhibit 3: 4QFY2012 performance analysis
              Particulars                           4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy)
              Balance sheet
              Advances (` cr)                       100,469   92,378       8.8   86,850     15.7
              Deposits (` cr)                       136,142 126,607        7.5 116,748      16.6
              Credit-to-Deposit Ratio (%)              73.8     73.0     83bp      74.4    (59)bp
              Current deposits (` cr)                12,305    9,641     27.6    14,071    (12.5)
              Saving deposits (` cr)                 17,808   17,115       4.0   16,226       9.7
              CASA deposits (` cr)                   30,113   26,756     12.5    30,297     (0.6)
              CASA ratio (%)                           22.1     21.1     99bp      26.0   (383)bp
              CAR (%)                                  13.0     12.8     16bp      14.1   (111)bp
              Tier 1 CAR (%)                            8.3      7.9     46bp       8.7    (36)bp
              Profitability Ratios (%)
              Cost of deposits                          8.0      7.6     39bp       6.4    163bp
              Yield on advances                        11.7     11.9    (20)bp     10.5    119bp
              Yield on investments                      7.8      7.8     (4)bp      7.4     32bp
              Reported NIM                              2.4      2.7    (25)bp      2.8    (36)bp
              Cost-to-income ratio                     35.2     36.6   (140)bp     40.4   (514)bp
              Asset quality
              Gross NPAs (` cr)                       1,274    1,249       2.0     790      61.2
              Gross NPAs (%)                            1.3      1.4     (9)bp      0.9     35bp
              Net NPAs (` cr)                          869      885      (1.8)     398     118.6
              Net NPAs (%)                              0.9      1.0     (9)bp      0.5     41bp
              Provision Coverage Ratio (%)             65.3     62.9    242bp      74.7   (940)bp
              Slippage ratio (%)                        0.8      1.7    (97)bp      1.1    (39)bp
              Loan loss prov. to avg. assets (%)        0.5      0.5     (3)bp      0.6    (11)bp
              Source: Company, Angel Research



              Healthy growth in business; NIMs decline sequentially
              During 4QFY2012, the bank’s advances grew at a healthy pace of 8.8% qoq to
              `100,469cr, while deposits grew by 7.5% qoq to `136,142cr. Growth in advances
              was largely driven by segments such as retail, SME and agri, which witnessed
              growth of 18.3%, 10.0% and 8.0% qoq, respectively. Going forward, management
              guided for continued focus on these segments, which is expected to aid NIM
              expansion.

              CASA ratio for the bank declined by 383bp yoy to 22.1% on the back of a 12.5%
              yoy decline witnessed in current account deposits, despite reasonable 9.7% yoy
              growth in saving deposits. The bank plans to add 300 branches in FY2013 as
              compared to 139 in FY2012, which is expected to strengthen its liability franchise.

              Yield on advances for the bank declined sequentially during the quarter by 20bp,
              which coupled with a qoq increase in cost of deposits by 39bp, led to a decline in
              reported NIM by 25bp to 2.41%.




May 4, 2012                                                                                    3
                                                                                          Corporation Bank | 4QFY2012 Result Update



Exhibit 4: Business growth remains healthy                                     Exhibit 5: Sequentially higher cost of deposits...

          Adv. qoq chg (%)           Dep. qoq chg (%)           CDR (%, RHS)    8.50
                                                                                                                                    8.03
  30.0                                                                80.0      8.00                                       7.64
             74.4                                           73.8                                                  7.56
                                                 73.0                                                 7.27
                                                                      75.0      7.50
  20.0                               67.7
                        67.0                                          70.0      7.00
                                                                                          6.40
  10.0                                                                65.0      6.50
                                     3.5
             20.7
             18.5




                                                 13.2
                                     2.4



                                                 5.0


                                                           8.8
                                                           7.5
                               0.9




                                                                      60.0      6.00
    -
                                                                      55.0      5.50
                       (9.1)




 (10.0)                                                               50.0      5.00
           4QFY11 1QFY12 2QFY12 3QFY12 4QFY12                                           4QFY11      1QFY12       2QFY12   3QFY12   4QFY12


Source: Company, Angel Research                                                Source: Company, Angel Research



Exhibit 6: ..coupled with a qoq dip in yield on advances                       Exhibit 7: ...led to a sequential 25bp decline in NIM
 12.40                                                                          3.00
                                                        11.91                             2.77
 12.00                                   11.75                      11.71                                                  2.66
                                                                                2.70
 11.60                                                                                                            2.43              2.41
                             11.15                                              2.40
 11.20
                                                                                                      2.10
 10.80       10.52                                                              2.10
 10.40
                                                                                1.80
 10.00
  9.60                                                                          1.50
            4QFY11      1QFY12         2QFY12       3QFY12         4QFY12               4QFY11      1QFY12       2QFY12   3QFY12   4QFY12

Source: Company, Angel Research                                                Source: Company, Angel Research


                                                           Non-interest income declines on fee income de-growth and
                                                           lesser recoveries

                                                           During 4QFY2012, the bank’s non-interest income excl. treasury dipped by 19.9%
                                                           yoy to `327cr, mainly on the back of a 15.3% yoy decline in fee income to `236cr
                                                           and lower recoveries from written-off accounts (`38cr in 4QFY2012 compared to
                                                           `93cr in 4QFY2011 i.e., a sharp decline of 59.3% yoy). Treasury income for the
                                                           bank grew by 17.1% yoy to `96cr.

                                                           Asset quality remains stable
                                                           During 4QFY2012, the bank’s asset quality continued to remain at stable levels,
                                                           with both gross and net NPA ratio declining sequentially by 9bp and annualized
                                                           slippage ratio at comfortable levels of 0.75%. As of 4QFY2012, gross NPA ratio
                                                           stood at 1.3% (1.4% in 3QFY2012), while net NPA ratio stood at 0.9% (1.0% in
                                                           3QFY2012). Provision coverage ratio for the bank improved by 242bp qoq to
                                                           65.3%.

                                                           However, the bank’s restructured book grew sharply during the quarter by
                                                           ~`3,000cr (absolute increase of 66.1% qoq) to `7,539cr, which primarily included
                                                           accounts of Air India and Rajasthan SEBs (combined exposure of ~`2,594cr).
                                                           Further, slippages from restructured assets during FY2012 have been higher for
                                                           the bank at ~11.3%. Going forward, management guided that advance of


May 4, 2012                                                                                                                                 4
                                                                                                Corporation Bank | 4QFY2012 Result Update



                                                            ~`600cr given to U.P. discom is the only major advance in the restructuring
                                                            pipeline and clarified that payments from other SEBs were regular. Further,
                                                            management added that the bank will not take/has not taken any NPV loss on any
                                                            SEBs coming for restructuring/already restructured.


Exhibit 8: Slippages during the quarter                                             Exhibit 9: Asset quality remained stable
                     Slippages (%)               Credit cost (%, RHS)                         Gross NPAs (%)             Net NPAs (%)           PCR (%, RHS)
            0.6
 2.5                                                                          0.6     1.6                                                               80.0
                                     0.5            0.5                                        74.7       74.9
                                                                 0.5                  1.4
 2.0                                                                                                                                                    75.0
                                                                                      1.2
                                                                              0.4
 1.5                                                                                  1.0                                                               70.0
                        0.2                                                                                             64.7                  65.3
                                                                                      0.8
 1.0                                                                                                                                62.9                65.0
                                                                              0.2     0.6
                                                                                      0.4
 0.5                                                                                                                                                    60.0
             1.1




                        0.7




                                     2.4




                                                    1.7




                                                                  0.8




                                                                                               0.9
                                                                                               0.5


                                                                                                         1.1
                                                                                                         0.5


                                                                                                                    1.3
                                                                                                                    0.9


                                                                                                                                   1.4
                                                                                                                                   1.0


                                                                                                                                              1.3
                                                                                                                                              0.9
                                                                                      0.2
  -                                                                           -        -                                                                55.0
           4QFY11    1QFY12      2QFY12          3QFY12         4QFY12                       4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

Source: Company, Angel Research                                                     Source: Company, Angel Research



Exhibit 10: Opex decline, both qoq and yoy...                                       Exhibit 11: ...leading to a dip in cost ratios
               Staff exps (` cr)            Other opex (` cr)                                Cost-to-income ratio (%)            Opex to average assets (%, RHS)
  600                                                                                 45.0                                                                 2.0
               506
                                                          478
                                           442                          443                       1.5
                          421                                                         40.0
  450                                                                                                                     1.2          1.3                 1.5
               206                                                                                           1.2                                 1.1
                                           207            230                         35.0
                          206                                           227
  300                                                                                                                                                      1.0
                                                                                      30.0
  150          300                                                                                                                                         0.5
                                           235            247                         25.0
                                                                                                  40.4



                                                                                                             42.2



                                                                                                                          38.7



                                                                                                                                       36.6



                                                                                                                                                 35.2
                          215                                           216

       -                                                                              20.0                                                                 -
            4QFY11      1QFY12       2QFY12           3QFY12        4QFY12                     4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

Source: Company, Angel Research                                                     Source: Company, Angel Research



                                                            Investment arguments
                                                            Modern, cost-efficient network to support moderate CASA
                                                            growth

                                                            During FY2007-12, CASA deposits of the bank grew at a 15.9% CAGR, which was
                                                            quite robust relative to its peers. We believe the bank’s efficient and expanding
                                                            network (1,500 branches currently and management plans to add ~300 branches
                                                            in FY2013, mainly in states having untapped SME clusters such as Gujarat,
                                                            Rajasthan, Haryana, Orissa, Punjab Bihar and West Bengal) supported by a
                                                            consistent track record in early adoption of emerging technologies creates a
                                                            positive traction in its deposit franchise, which is tempered mainly by substantial
                                                            competition from larger banks.




May 4, 2012                                                                                                                                                      5
                                                  Corporation Bank | 4QFY2012 Result Update



              Low operating cost, superior                          asset       quality        owing          to
              corporate-centric business

              Large corporates comprise ~44.7% of the bank’s credit book as of FY2012
              (38.8% as of FY2011), leading to relatively low yield on advances, but
              simultaneously offering superior asset quality to the bank. As of 4QFY2012, gross
              and net NPA ratio for the bank were 1.3% and 0.9%, respectively. The bank is also
              among the most cost-efficient PSU banks, both in terms of opex/average assets
              (1.1x as of 4QFY2012) as well as branch and employee productivity.


              Outlook and valuation
              The bank’s low CASA ratio (22.1% as of FY2012) has contributed to higher margin
              pressures. However, currently the stock is trading at 0.5x FY2014E ABV, one of the
              cheapest in the industry, which we believe provides sufficient margin of safety.
              We value the bank at 0.7x FY2014E ABV and recommend Buy on the stock with a
              target price of `522.

              Exhibit 12: Key assumptions
                                                                  Earlier estimates        Revised estimates
              Particulars (%)
                                                                 FY2013E FY2014E          FY2013 EFY2014E
              Credit growth                                          16.5        16.0         16.0        16.0
              Deposit growth                                         16.0        16.0         16.0        16.0
              CASA ratio                                             22.4        21.6         21.0        20.2
              NIMs                                                    2.2          2.1         2.2            2.1
              Other income growth                                    (1.9)         9.6        (5.7)           9.4
              Growth in staff expenses                               17.0        18.0         17.0        17.0
              Growth in other expenses                               17.0        18.0         17.0        17.0
              Slippages                                               1.8          1.8         1.4            1.4
              Coverage Ratio                                         65.0        66.5         69.0        73.0
              Source: Angel Research


              Exhibit 13: Change in estimates
                                                     FY2013E                             FY2014E
              Particulars (` cr)          Earlier     Revised                 Earlier      Revised
                                                                 Var. (%)                             Var. (%)
                                         estimates   estimates               estimates    estimates
              NII                         3,786       3,738       (1.3)       4,268        4,278        0.2
              Non-interest income         1,575       1,464       (7.0)       1,726        1,602       (7.2)
              Operating income            5,361       5,203       (3.0)       5,995        5,880       (1.9)
              Operating expenses          2,130       2,087       (2.1)       2,514        2,441       (2.9)
              Pre-prov. profit            3,231       3,116       (3.6)       3,481        3,439       (1.2)
              Provisions & cont.           906         809       (10.7)       1,036         969        (6.5)
              PBT                         2,324       2,307       (0.8)       2,445        2,470        1.0
              Prov. for taxes              721         715        (0.8)        793          801         1.0
              PAT                         1,604       1,592       (0.8)       1,652        1,669        1.0
              Source: Angel Research




May 4, 2012                                                                                                    6
                                                                                           Corporation Bank | 4QFY2012 Result Update



                                                       Exhibit 14: P/ABV band
                                                                       Price (`)         0.5x          0.8x      1.1x          1.4x           1.7x
                                                        1,400

                                                        1,200

                                                        1,000

                                                          800

                                                          600

                                                          400

                                                          200

                                                             0


                                                                 Sep-02

                                                                 Sep-03

                                                                 Sep-04

                                                                 Sep-05

                                                                 Sep-06

                                                                 Sep-07

                                                                 Sep-08

                                                                 Sep-09

                                                                 Sep-10

                                                                 Sep-11

                                                                 Sep-12
                                                                 Mar-02

                                                                 Mar-03

                                                                 Mar-04

                                                                 Mar-05

                                                                 Mar-06

                                                                 Mar-07

                                                                 Mar-08

                                                                 Mar-09

                                                                 Mar-10

                                                                 Mar-11

                                                                 Mar-12

                                                                 Mar-13
                                                       Source: Company, Angel Research



Exhibit 15: Recommendation summary
                          CMP       Tgt. Upside          FY2014E             FY2014E      FY2014E             FY12-14E         FY2014E         FY2014E
Company Reco.
                            (`) price (`)   (%)          P/ABV (x)      Tgt. P/ABV (x)      P/E (x)      CAGR in EPS (%)        RoA (%)         RoE (%)
AxisBk      Buy          1,010    1,587   57.1                1.4                 2.2          7.3                 16.4            1.5            20.3
FedBk       Neutral        413           -        -              1.0                 -           7.2                13.0                1.3          14.5
HDFCBk      Accumulate     537        567      5.6               3.1               3.3          15.1                27.0                1.7          22.1
ICICIBk*    Buy            834     1,201      44.1               1.4               1.9          10.3                20.4                1.5          16.0
SIB         Neutral          23          -        -              1.0                 -           5.9                 6.7                0.9          17.7
YesBk       Buy            333        470     40.9               1.7               2.4           8.0                22.5                1.4          23.3
AllBk       Accumulate     170        194     14.2               0.7               0.8           4.2                (2.1)               1.0          16.8
AndhBk      Neutral        114           -        -              0.7                 -           4.2                 6.5                1.0          16.7
BOB         Buy            687        926     34.8               0.8               1.1           4.8                 8.6                1.1          18.2
BOI         Accumulate     353        386      9.4               0.8               1.0           5.2                16.4                0.8          16.9
BOM         Buy              52        62     20.1               0.6               0.8           3.8                26.8                0.9          17.5
CanBk       Buy            426        532     24.8               0.7               0.9           4.5                10.9                0.9          16.7
CentBk      Neutral          93          -        -              0.8                 -           4.6                45.7                0.5          13.8
CorpBk      Buy            385        522     35.5               0.5               0.7           3.4                 5.3                0.8          16.5
DenaBk      Buy              87       118     36.1               0.5               0.7           3.4                 6.2                0.9          16.9
IDBI#       Buy              96       117     22.0               0.6               0.7           4.0                22.7                0.9          14.8
IndBk       Accumulate     209        240     15.0               0.7               0.8           4.3                 5.4                1.2          18.2
IOB         Buy              84       104     24.7               0.5               0.7           4.0                29.9                0.6          13.9
J&KBk       Neutral        906           -        -              0.8                 -           4.6                 8.8                1.4          18.6
OBC         Buy            228        285     25.0               0.5               0.6           3.6                27.7                0.8          14.3
PNB         Buy            804     1,138      41.5               0.8               1.1           4.5                 8.8                1.1          18.5
SBI*        Buy          1,994     2,593      30.1               1.2               1.6           7.4                23.6                1.0          19.1
SynBk       Buy              97       128     31.4               0.6               0.8           3.5                 8.7                0.8          17.2
UcoBk       Reduce           72        67     (6.9)              0.8               0.8           5.3                 4.6                0.5          12.9
UnionBk     Buy            217        266     22.7               0.7               0.9           4.4                27.2                0.8          17.4
UtdBk       Buy              64        87     36.3               0.5               0.7           3.0                11.4                0.7          16.0
VijBk       Accumulate       55        59      5.7               0.7               0.7           4.7                11.0                0.5          13.7
Source: Company, Angel Research; Note: *Target multiples=SOTP Target Price/ABV (including subsidiaries), # Without adjusting for SASF




May 4, 2012                                                                                                                                            7
                                            Corporation Bank | 4QFY2012 Result Update



              Income statement
              Y/E March (` cr)             FY09      FY10        FY11       FY12       FY13E     FY14E
              Net Interest Income         1,691      1,903      2,940       3,147      3,738      4,278
              - YoY Growth (%)             17.2       12.6       54.5         7.0       18.8       14.4
              Other Income                1,107      1,493      1,324       1,553      1,464      1,602
              - YoY Growth (%)             58.2       34.9      (11.3)       17.3       (5.7)       9.4
              Operating Income            2,798      3,397      4,264       4,700      5,203      5,880
              - YoY Growth (%)             30.6       21.4       25.5        10.2       10.7       13.0
              Operating Expenses          1,047      1,260      1,642       1,784      2,087      2,441
              - YoY Growth (%)             17.3       20.4       30.3         8.6       17.0       17.0
              Pre - Provision Profit      1,752      2,137      2,622       2,917      3,116      3,439
              - YoY Growth (%)             40.0       22.0       22.7        11.2        6.8       10.4
              Prov. & Cont.                 365       474         689       1,011        809       969
              - YoY Growth (%)             96.8       29.8       45.2        46.8      (20.0)      19.7
              Profit Before Tax           1,386      1,662      1,934       1,906      2,307      2,470
              - YoY Growth (%)             30.1       19.9       16.3        (1.5)      21.1        7.1
              Prov. for Taxation            493       492         520        399         715       801
              - as a % of PBT              35.6       29.6       26.9        21.0       31.0       32.4
              PAT                           893      1,170      1,413       1,506      1,592      1,669
              - YoY Growth (%)             21.5       31.1       20.8         6.6        5.7        4.8



              Balance sheet
              Y/E March (` cr)          FY09       FY10        FY11        FY12       FY13E      FY14E
              Share Capital              143        143         148         148         148        148
              Reserve & Surplus         4,753      5,631       6,990       8,128       9,341     10,605
              Deposits                 73,984     92,734     116,748     136,142     157,925    183,193
              - Growth (%)               33.5       25.3        25.9        16.6        16.0       16.0
              Borrowings                2,072      4,290      10,628       3,680       4,261      4,937
              Tier 2 Capital            2,738      4,788       5,338      10,568      12,259     14,220
              Other Liab. & Prov.       3,215      4,081       3,658       4,894       5,455      6,325
              Total Liabilities        86,906   111,667      143,509     163,560     189,389    219,428
              Cash Balances             5,591      8,835       8,142       9,288       6,317      7,328
              Bank Balances             4,949      1,957       2,250       2,410       2,790      3,233
              Investments              24,938     34,523      43,453      47,475      59,212     68,447
              Advances                 48,512     63,203      86,850     100,469     116,544    135,191
              - Growth (%)               23.8       30.3        37.4        15.7        16.0       16.0
              Fixed Assets               299        293         331         356         400        449
              Other Assets              2,617      2,857       2,482       3,563       4,125      4,780
              Total Assets             86,906   111,667      143,509     163,560     189,389    219,428
              - Growth (%)               30.8       28.5        28.5        14.0        15.8       15.9




May 4, 2012                                                                                          8
                                             Corporation Bank | 4QFY2012 Result Update



              Ratio analysis
              Y/E March                          FY09    FY10    FY11    FY12    FY13E   FY14E
              Profitability ratios (%)
              NIMs                                 2.3     2.0     2.4     2.1     2.2     2.1
              Cost to Income Ratio                37.4    37.1    38.5    37.9    40.1    41.5
              RoA                                  1.2     1.2     1.1     1.0     0.9     0.8
              RoE                                 19.6    21.9    21.9    19.5    17.9    16.5
              B/S ratios (%)
              CASA Ratio                          31.4    28.6    26.0    22.1    21.0    20.2
              Credit/Deposit Ratio                65.6    68.2    74.4    73.8    73.8    73.8
              CAR                                 13.6    15.4    14.1    18.7    18.7    18.5
              - Tier I                             8.9     9.3     8.7     8.7     8.6     8.3
              Asset Quality (%)
              Gross NPAs                           1.1     1.0     0.9     1.3     1.9     2.4
              Net NPAs                             0.3     0.3     0.5     0.9     0.9     0.9
              Slippages                            0.6     1.0     1.3     1.4     1.4     1.4
              Loan Loss Prov. /Avg. Assets         0.2     0.3     0.4     0.4     0.4     0.4
              Provision Coverage                  74.2    80.8    72.8    65.0    69.0    73.0
              Per Share Data (`)
              EPS                                 62.2    81.6    95.4   101.7   107.5   112.6
              ABVPS (75% cover.)                 341.1   402.6   479.5   541.8   627.0   720.1
              DPS                                 12.5    16.5    20.0    20.5    22.0    23.5
              Valuation Ratios
              PER (x)                              6.4     4.9     4.2     3.9     3.7     3.6
              P/ABVPS (x)                          1.2     1.0     0.8     0.7     0.6     0.6
              Dividend Yield                       3.1     4.1     5.0     5.1     5.5     5.9
              DuPont Analysis
              NII                                  2.2     1.9     2.3     2.0     2.1     2.1
              (-) Prov. Exp.                       0.5     0.5     0.5     0.7     0.5     0.5
              Adj. NII                             1.7     1.4     1.8     1.4     1.7     1.6
              Treasury                             0.6     0.6     0.2     0.2     0.1     0.1
              Int. Sens. Inc.                      2.3     2.1     1.9     1.6     1.7     1.7
              Other Inc.                           0.9     0.9     0.9     0.8     0.8     0.7
              Op. Inc.                             3.2     2.9     2.8     2.4     2.5     2.4
              Opex                                 1.4     1.3     1.3     1.2     1.2     1.2
              PBT                                  1.8     1.7     1.5     1.2     1.3     1.2
              Taxes                                0.6     0.5     0.4     0.3     0.4     0.4
              RoA                                  1.2     1.2     1.1     1.0     0.9     0.8
              Leverage                            16.8    18.6    19.8    19.9    19.9    20.2
              RoE                                 19.6    21.9    21.9    19.5    17.9    16.5




May 4, 2012                                                                                 9
                                                                                    Corporation Bank | 4QFY2012 Result Update




  Research Team Tel: 022 - 39357800                   E-mail: research@angelbroking.com                    Website: www.angelbroking.com

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 Disclosure of Interest Statement                                           Corporation Bank
 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

 Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors


 Ratings (Returns):              Buy (> 15%)                            Accumulate (5% to 15%)                     Neutral (-5 to 5%)
                                 Reduce (-5% to -15%)                   Sell (< -15%)


May 4, 2012                                                                                                                                10

				
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