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					                                                                                                   4QFY2012 Result Update | Banking
                                                                                                                              May 11, 2012



    Syndicate Bank                                                                              BUY
                                                                                                 CMP                                    `91
    Performance Highlights                                                                       Target Price                          `131
 
    Particulars (` cr)              4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy)                 Investment Period            12 Months
    NII                               1,337      1,325               0.9    1,161      15.1
    Pre-prov. profit                    790          923        (14.3)        672      17.6      Stock Info
    PAT                                 309          338            (8.5)     289       7.0      Sector                            Banking
Source: Company, Angel Research                                                                  Market Cap (` cr)                      5,469
Syndicate Bank reported a 22.0% yoy decline in its profit before tax (PBT) to `248cr,            Beta                                     1.2
despite healthy 17.6% growth in pre-provisioning profit on the back of higher                    52 Week High / Low                    125/67
provisioning expenses, partly because the bank was one of the few PSU banks which                Avg. Daily Volume                     85,892
increased provision coverage sequentially. However, net profit grew by moderate 7.0%
                                                                                                 Face Value (`)                           10
yoy on the back of negative tax expense of `61cr during the quarter as against tax
                                                                                                 BSE Sensex                            16,293
expense of `30cr in 3QFY2012. We recommend a Buy rating on the stock.
                                                                                                 Nifty                                  4,929
Business growth remains moderate; slippages surge: During the quarter, business
                                                                                                 Reuters Code                     SBNK.BO
growth remained moderate. Advances grew by 15.8% yoy to `123,620cr, aided by
healthy growth of 17.6% and 29.7% yoy in agriculture and weaker section credit,                  Bloomberg Code                  SNDB@IN
respectively. Growth in deposits was relatively high compared to advances growth at
16.5% yoy, mainly on account of 24.2% growth in term deposits to `108,606cr.
CASA deposits grew by 10.7% yoy on account of moderate growth of 9.9% yoy in                     Shareholding Pattern (%)
savings deposits and 12.9% yoy in current deposits. Consequently, CASA ratio                     Promoters                               66.2
dipped by 154bp yoy to 29.4%. Reported NIM improved by 15bp qoq to 3.60%. The                    MF / Banks / Indian Fls                 17.5
bank’s asset quality deteriorated sequentially with slippages increasing to `1,059cr,
                                                                                                 FII / NRIs / OCBs                        4.2
much above the average quarterly run rate of `591cr for the past four quarters.
                                                                                                 Indian Public / Others                  12.1
Consequently, gross annualized slippage ratio for the bank increased substantially
on a sequential basis to 4.0% during 4QFY2012 as against 1.9% in 3QFY2012.
While gross NPAs increased from 2.3% to 2.5%, net NPA ratio increased from 0.9%
to 1.0%. The bank increased its provisioning coverage to 80.1% in 4QFY2012 from                  Abs. (%)              3m        1yr      3yr
78.5% in 3QFY2012. If the bank had not increased its provisioning coverage, PBT                  Sensex               (8.2)   (12.3)     39.5
would have been higher by `97cr (38.4% yoy). The bank restructured ~`1,700cr of                  Syndicate Bank      (18.7)   (20.2)     60.7
loans during the quarter (majorly Air India’s ~`1,000cr), taking its outstanding
restructured advances to ~`6,200cr (~4.8% of the overall loan book).
Outlook and valuation: The stock is currently trading at 0.5x FY2014E ABV (its
five-year range of 0.6–1.1x and median of 0.8x). Also, valuations appear cheap
compared to its peers, which are trading at higher multiples, although they have
similar or poorer fundamentals. We value the stock at 0.7x FY2014E ABV and
recommend Buy on the stock with a target price of `131.

Key financials
    Y/E March (` cr)                      FY2011           FY2012       FY2013E     FY2014E
    NII                                     4,383           5,085           5,912     6,869
                                                                                              Vaibhav Agrawal
    % chg                                     60.0           16.0            16.3      16.2
                                                                                              022 – 3935 7800 Ext: 6808
    Net profit                              1,048           1,313           1,561     1,806   vaibhav.agrawal@angelbroking.com
    % chg                                     28.8           25.3            18.9      15.7
    NIM (%)                                    3.0            3.1             3.0       3.0   Varun Varma
    EPS (`)                                   18.3           21.8            25.9      30.0   022 – 3935 7800 Ext: 6847
                                                                                              varun.varma@angelbroking.com
    P/E (x)                                    5.0            4.2             3.5       3.0
    P/ABV (x)                                  0.8            0.6             0.6       0.5
                                                                                              Sourabh Taparia
    RoA (%)                                    0.7            0.8             0.8       0.8
                                                                                              022 – 3935 7800 Ext: 6872
    RoE (%)                                   17.6           17.2            16.9      17.1   sourabh.taparia@angelbroking.com
Source: Company, Angel Research
Please refer to important disclosures at the end of this report                                                                            1
                                                    Syndicate Bank | 4QFY2012 Result Update



               Exhibit 1: 4QFY2012 performance
               Particulars (` cr)                   4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy)
               Interest earned                       4,125    3,974             3.8       3,162        30.4
               - on Advances / Bills                 3,300    3,212             2.7       2,593        27.2
               - on investments                        755     733              3.1         574        31.7
               - on balance with RBI & others           70      18            278.9            0   43,525.0
               - on others                                -     10        (100.0)            (5)    (100.0)
               Interest Expended                     2,788    2,649             5.2       2,001        39.3
               Net Interest Income                   1,337    1,325             0.9       1,161        15.1
               Other income                            300     240             24.6         255        17.7
               Other income excl. treasury             286     235             21.6         247        16.1
               - Fee Income                            159     143             11.1         160       (0.7)
               - Treasury Income                        13       5            168.4            8       67.8
                - Profit on exchange transactions       30      31              2.7          24        27.2
               - Others                                 98      61             59.3          63        56.3
               Operating income                      1,636    1,565             4.5       1,416        15.6
               Operating expenses                      846     643             31.6         744        13.7
               - Employee expenses                     594     394             50.7         521        14.1
               - Other Opex                            252     248              1.3         223        12.9
               Pre-provision Profit                    790     923            (14.3)        672        17.6
               Provisions & Contingencies              542     544             (0.3)        353        53.6
               - Provisions for NPAs                   321     386            (17.0)        176        82.1
               - Provisions for Investments            (12)     10        (221.5)              2    (606.3)
               - Other Provisions                      234     148             58.3         175        33.9
               PBT                                     248     379            (34.5)        319      (22.2)
               Provision for Tax                       (61)     41        (249.5)            30     (306.0)
               PAT                                     309     338             (8.5)        289         7.0
               Effective Tax Rate (%)                (24.6)    10.8      (3544)bp            9.3   (3395)bp
               Source: Company, Angel Research


               Exhibit 2: 4QFY2012 – Actual vs. Angel estimates
               Particulars (` cr)                                 Actual               Estimates      % chg
               Net interest income                                    1,337               1,368        (2.3)
               Non-interest income                                     300                  283         6.0
               Operating income                                       1,636               1,651        (0.9)
               Operating expenses                                      846                  689        22.7
               Pre-prov. profit                                        790                  962      (17.8)
               Provisions & cont.                                      542                  432        25.6
               PBT                                                     248                  530      (53.2)
               Prov. for taxes                                         (61)                 201     (130.4)
               PAT                                                     309                  329        (6.0)
               Source: Company, Angel Research




May 11, 2012                                                                                              2
                                                 Syndicate Bank | 4QFY2012 Result Update



               Exhibit 3: 4QFY2012 performance
               Particulars                       4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy)
               Balance sheet
               Advances (` cr)                   123,620 114,817         7.7 106,782         15.8
               Deposits (` cr)                   157,941 143,128        10.3 135,596         16.5
               Credit-to-Deposit Ratio (%)          78.3     80.2    (195)bp     78.8      (48)bp
               Current deposits (` cr)            12,129   11,020       10.1   10,739        12.9
               Saving deposits (` cr)             34,295   32,994        3.9   31,207         9.9
               CASA deposits (` cr)               46,424   44,014        5.5   41,946        10.7
               CASA ratio (%)                       29.4     30.8    (136)bp     30.9     (154)bp
               CAR (%)                              12.2     11.5       76bp     13.0      (80)bp
               Tier 1 CAR (%)                        8.9      8.4       59bp       9.3     (37)bp
               Profitability Ratios (%)
               Cost of deposits                      6.9      6.9        1bp       5.8     112bp
               Yield on advances                    11.0     11.1     (10)bp       9.9     116bp
               Reported NIM                          3.6      3.5       15bp       3.4      17bp
               Cost-to-income ratio                 51.7     41.1    1064bp      52.5      (84)bp
               Asset quality
               Gross NPAs (` cr)                   3,183    2,674       19.0    2,599        22.5
               Gross NPAs (%)                        2.5      2.3       24bp       2.4      13bp
               Net NPAs (` cr)                     1,185     993        19.4    1,031        15.0
               Net NPAs (%)                          1.0      0.9       10bp       1.0      (1)bp
               Provision Coverage Ratio (%)         80.1     78.5      156bp     77.2      288bp
               Slippage ratio (%)                    4.0      1.9      209bp       2.4     157bp
               NPA to avg. assets (%)                0.7      0.9     (20)bp       0.5      26bp
               Source: Company, Angel Research


               Business growth remains moderate; NIM improves by 15bp qoq

               During the quarter, business growth for the bank remained moderate. Advances
               grew by 15.8% yoy to `123,620cr, aided by healthy growth of 17.6% and 29.7%
               yoy in agriculture and weaker section credit, respectively. Growth in deposits was
               relatively high compared to growth in advances at 16.5% yoy, mainly on account
               of 24.2% growth in term deposits to `108,606cr.

               CASA deposits grew by 10.7% yoy on account of moderate growth of 9.9% yoy in
               savings deposits and 12.9% yoy in current deposits. Consequently, CASA ratio
               dipped by 154bp yoy to 29.4%. Even, on a sequential basis, CASA ratio declined
               by 136bp on the back of a 3.9% qoq increase in savings deposits, despite a
               healthy 10.1% qoq increase in current deposits.

               Cost of deposits remained flat sequentially at 6.92%. Yield on investment grew by
               57bp qoq to 8.04%, while yield on advances declined by 10bp qoq to 11.01%.
               Reported NIM for the bank improved by 15bp qoq to 3.60%.




May 11, 2012                                                                                   3
                                                                                               Syndicate Bank | 4QFY2012 Result Update



Exhibit 4: Business growth remains moderate                                  Exhibit 5: CASA ratio dips by 136bp qoq
         Adv. yoy chg (%)          Dep. yoy chg (%)           CDR (%, RHS)                     CASA ratio             CASA yoy growth (%, RHS)
  25.0                 82.0                                           83.0   32.5                                                                      22.5
                                                                      82.0
  20.0                                                                                 14.8
                                              80.2                    81.0
                                   79.8                                      30.0                                                                      15.0
  15.0                                                                80.0                                                              10.7
            78.8
                                                             78.3     79.0                                     6.4          6.6
  10.0                                                                                               5.8
                                                                             27.5                                                                      7.5
                                                                      78.0
            18.1
            15.9


                      15.8
                      22.4


                                   18.9
                                   21.5


                                              14.9
                                              14.9


                                                             15.8
                                                             16.5




                                                                                        30.9



                                                                                                     31.1



                                                                                                               30.5



                                                                                                                             30.8



                                                                                                                                         29.4
   5.0
                                                                      77.0
    -                                                                 76.0   25.0                                                                      -
          4QFY11 1QFY12 2QFY12 3QFY12 4QFY12                                         4QFY11       1QFY12     2QFY12       3QFY12       4QFY12

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



Exhibit 6: CoD remains flat on a qoq basis                                   Exhibit 7: NIM improves by 15bp qoq
 8.00                                                                          (%)

                                                                             4.00
                                                      6.91          6.92
                                       6.69                                                                                                     3.60
                            6.36                                                        3.43                     3.44           3.45
                                                                             3.50
                                                                                                      3.16
 6.00       5.80
                                                                             3.00

                                                                             2.50

 4.00                                                                        2.00
          4QFY11      1QFY12        2QFY12       3QFY12         4QFY12                4QFY11        1QFY12     2QFY12        3QFY12        4QFY12

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



                                                         Asset quality deteriorates sequentially; slippages surge

                                                         The bank’s asset quality deteriorated sequentially with slippages increasing to
                                                         `1,059cr, much above the average quarterly run rate of `591cr for the past four
                                                         quarters. Consequently, gross annualized slippage ratio for the bank increased
                                                         substantially on a sequential basis to 4.0% during 4QFY2012 as against 1.9% in
                                                         3QFY2012. On an absolute basis, both gross and net NPAs for the bank
                                                         increased by ~19% sequentially. While gross NPAs increased from 2.3% to 2.5%,
                                                         net NPA ratio increased from 0.9% to 1.0%.

                                                         The bank increased its provisioning coverage (one of the few PSU banks to do so)
                                                         to 80.1% in 4QFY2012 from 78.5% in 3QFY2012. If the bank had not increased
                                                         its provisioning coverage, PBT would have been higher by `97cr (38.4% yoy).

                                                         The bank restructured ~`1,700cr of loans during the quarter (majorly Air India’s
                                                         ~`1,000cr), taking its outstanding restructured advances to ~`6,200cr (~4.8% of
                                                         the overall loan book). In terms of CDR restructuring pipeline, management
                                                         specified a sum of `1,050cr pertaining to seven accounts, which are under active
                                                         stage of CDR discussion.




May 11, 2012                                                                                                                                                 4
                                                                                                 Syndicate Bank | 4QFY2012 Result Update



Exhibit 8: Slippages surge in 4QFY2012                                        Exhibit 9: NPA ratio deteriorates slightly on a qoq basis
  (%)                                                                                     Gross NPAs (%)             Net NPAs (%)           PCR (%, RHS)

  5.0                                                                           2.5                                                                 90.0
                                                               4.0                                     78.4                               80.1
  4.0                               3.6                                                     77.2                    78.5        78.5
                                                                                2.0
                                                                                                                                                    80.0
  3.0       2.4                                                                 1.5
                                                 1.9                                                                                                70.0
  2.0                                                                           1.0
                         1.3
  1.0                                                                                                                                               60.0
                                                                                0.5




                                                                                           2.4
                                                                                           1.0


                                                                                                      2.4
                                                                                                      0.9


                                                                                                                    2.4
                                                                                                                    0.9


                                                                                                                               2.3
                                                                                                                               0.9


                                                                                                                                          2.5
                                                                                                                                          1.0
   -                                                                             -                                                                  50.0
           4QFY11     1QFY12      2QFY12   3QFY12          4QFY12                        4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

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


                                                       Operating expenses increased by 13.7% yoy

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


Exhibit 10: Staff expenses increase by 14.1% yoy                              Exhibit 11: Cost ratios deteriorate sequentially
                   Staff expenses (` cr)          YoY change (%)                         Cost-to-income ratio (%)           Opex to average assets (%, RHS)
 1,000                                                               50.0       60.0                                                                  2.5
                                                                     40.0                     2.0                                           1.9
  800                                                                                                    1.7         1.7                              2.0
                                                                     30.0       45.0                                              1.6
  600                                                                20.0                                                                             1.5
                                                                                30.0
                                                         594




  400                                                                10.0
             521




                                                                                                                                                      1.0
                        454



                                  449




                                                                     -
                                           394




                                                                                15.0
  200                                                                                                                                                 0.5
                                                                                              52.5



                                                                                                         47.0



                                                                                                                     42.8



                                                                                                                                  41.1



                                                                                                                                            51.7
                                                                     (10.0)
       -                                                             (20.0)          -                                                                -
           4QFY11 1QFY12 2QFY12 3QFY12 4QFY12                                              4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

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




May 11, 2012                                                                                                                                                5
                                                Syndicate Bank | 4QFY2012 Result Update



               Investment argument
               Better asset quality and moderate NIM to drive profitability

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

               Outlook and valuation
               We expect Syndicate Bank to deliver RoEs of 16.9% and 17.1% in FY2013 and
               FY2014, respectively, on the back of its better asset-quality outlook than peers and
               moderate NIM. The bank has a modest CASA franchise with a CASA ratio of
               29.4% (as of 4QFY2012), while fee income is also modest at 0.6% of average
               assets (as of FY2012).

               However,     that    said,  the    bank’s    cheaper    valuations  and    lower
               asset-quality concerns turn the tide in the stock’s favor. The stock is currently
               trading at 0.5x FY2014E ABV (its five-year range of 0.6–1.1x and median of 0.8x).
               Also, valuations appear cheap compared to its peers, which are trading
               at higher multiples, although they have similar or poorer fundamentals. We value
               the stock at 0.7x FY2014E ABV and recommend Buy on the stock with a target
               price of `131.

               Exhibit 12: Key assumptions
                                                             Earlier estimates     Revised estimates
               Particulars (%)
                                                            FY2013      FY2014     FY2013    FY2014
               Credit growth                                   13.5        14.0      17.0       17.0
               Deposit growth                                  16.0        16.0      19.0       18.0
               CASA ratio                                      28.2        27.4      27.4       26.2
               NIMs                                             3.1          3.0      3.0        3.0
               Other income growth                             10.0        11.9      13.5       13.5
               Growth in staff expenses                        13.0        13.0      14.0       14.0
               Growth in other expenses                        13.0        13.0      14.0       14.0
               Slippages                                        3.0          3.2      2.7        2.7
               Coverage ratio                                  82.5        80.0      79.0       77.5
               Source: Angel Research




May 11, 2012                                                                                       6
                                                                        Syndicate Bank | 4QFY2012 Result Update



               Exhibit 13: Change in estimates
                                                                        FY2013                                                      FY2014
               Particulars (` cr)                         Earlier           Revised                                Earlier             Revised
                                                                                            Var. (%)                                                     Var. (%)
                                                       estimates          estimates                             estimates            estimates
               NII                                           5,904              5,912                0.1                 6,658                6,869                3.2
               Non-interest income                           1,165              1,221                4.8                 1,304                1,386                6.3
               Operating income                              7,069              7,133                0.9                 7,961                8,255                3.7
               Operating expenses                            3,003              3,208                6.8                 3,393                3,657                7.8
               Pre-prov. profit                              4,066              3,925               (3.5)                4,568                4,598                0.7
               Provisions & cont.                            1,832              1,786               (2.5)                1,928                1,924               (0.2)
               PBT                                           2,234              2,139               (4.3)                2,640                2,674                1.3
               Prov. for taxes                                 725                577              (20.3)                 857                  867                 1.3
               PAT                                           1,509              1,561                3.4                 1,784                1,806                1.3
               Source: Angel Research



               Exhibit 14: P/ABV band
                                   Price (`)                  0.5x                  0.7x                      0.9x                  1.1x                 1.3x
                240

                200

                160

                120

                  80

                  40

                     0
                         Apr-06




                                           Apr-07




                                                              Apr-08




                                                                                 Apr-09




                                                                                                     Apr-10




                                                                                                                           Apr-11




                                                                                                                                                Apr-12
                                  Oct-06




                                                    Oct-07




                                                                       Oct-08




                                                                                          Oct-09




                                                                                                                Oct-10




                                                                                                                                     Oct-11




                                                                                                                                                         Oct-12
               Source: Company, Angel Research




May 11, 2012                                                                                                                                                         7
                                                                                                Syndicate Bank | 4QFY2012 Result Update



Exhibit 15: Recommendation summary
                                  CMP      Tgt. price    Upside   FY2014E           FY2014E       FY2014E      FY2012-14E       FY2014E     FY2014E
Company      Reco.
                                   (`)             (`)      (%)   P/ABV (x)    Tgt. P/ABV (x)       P/E (x)   EPS CAGR (%)       RoA (%)     RoE (%)
AxisBk       Buy                 1,001        1,587       58.5          1.4               2.2          7.2              16.4          1.5      20.3
FedBk        Neutral               415              -         -         1.0                 -          7.3              13.0          1.3      14.5
HDFCBk       Accumulate            511           567      10.9          2.9               3.3         14.4              27.0          1.7      22.1
ICICIBk*     Buy                   813        1,201       47.8          1.3               1.9         10.0              20.4          1.5      16.0
SIB          Neutral                22              -         -         1.0                 -          5.8                4.5         0.8      17.5
YesBk        Buy                   329           470      42.6          1.7               2.4          7.9              22.5          1.4      23.3
AllBk        Accumulate            148           166      12.3          0.6               0.7          3.5                6.2         0.9      17.6
AndhBk       Neutral               105              -         -         0.6                 -          4.1                3.3         0.9      16.0
BOB          Buy                   649           925      42.6          0.7               1.1          4.3              11.1          1.1      18.2
BOI          Buy                   353           411      16.3          0.7               1.0          4.5              23.3          0.8      16.9
BOM          Accumulate             48            55      14.4          0.6               0.7          3.7              45.3          0.7      17.2
CanBk        Buy                   419           522      24.6          0.7               0.9          4.5              11.8          0.9      16.4
CentBk       Neutral                78              -         -         0.7                 -          3.8             100.1          0.5      14.4
CorpBk       Buy                   405           504      24.4          0.5               0.7          3.6                5.3         0.8      16.5
DenaBk       Buy                    85           111      30.7          0.5               0.7          3.2                6.6         0.9      17.0
IDBI#        Buy                    92           117      27.0          0.6               0.7          3.8              22.7          0.9      14.8
IndBk        Buy                   180           218      21.6          0.6               0.8          3.7                5.4         1.2      18.2
IOB          Buy                    82            96      18.0          0.5               0.6          3.8              28.3          0.6      13.9
J&KBk        Neutral               846              -         -         0.7                 -          4.3                8.8         1.4      18.6
OBC          Buy                   219           274      25.1          0.5               0.6          3.4              27.7          0.8      14.3
PNB          Buy                   746        1,066       43.0          0.7               1.1          4.3              10.3          1.0      18.1
SBI*         Buy                 1,852        2,511       35.6          1.2               1.6          6.9              23.6          1.0      19.1
SynBk        Buy                    91           131      43.9          0.5               0.7          3.0              17.3          0.8      17.1
UcoBk        Neutral                68              -         -         0.7                 -          3.8              13.0          0.6      15.4
UnionBk      Buy                   206           276      34.3          0.7               0.9          4.1              24.8          0.8      17.5
UtdBk        Buy                    58            78      33.6          0.4               0.6          2.6              22.5          0.7      16.5
VijBk        Neutral                53              -         -         0.6                 -          4.3              13.5          0.5      13.7
Source: Company, Angel Research; Note:*Target multiples=SOTP Target Price/ABV (including subsidiaries), #Without adjusting for SASF




May 11, 2012                                                                                                                                      8
                                                     Syndicate Bank | 4QFY2012 Result Update



               Income statement
                Y/E March (` cr)                    FY08     FY09    FY10      FY11       FY12       FY13E FY14E
                Net Interest Income                2,073    2,548    2,740     4,383     5,085       5,912     6,869
                - YoY Growth (%)                    (3.6)    22.9      7.5      60.0      16.0        16.3      16.2
                Other Income                        940       915    1,167      915      1,076       1,221     1,386
                - YoY Growth (%)                    44.3     (2.7)    27.6     (21.6)     17.6        13.5      13.5
                Operating Income                   3,012    3,462    3,907     5,298     6,161       7,133     8,255
                - YoY Growth (%)                     7.5     14.9     12.8      35.6      16.3        15.8      15.7
                Operating Expenses                 1,495    1,791    2,034     2,548     2,814       3,208     3,657
                - YoY Growth (%)                     7.5     19.8     13.5      25.3      10.4        14.0      14.0
                Pre - Provision Profit             1,518    1,671    1,874     2,750     3,347       3,925     4,598
                - YoY Growth (%)                     7.6     10.1     12.1      46.8      21.7        17.3      17.2
                Prov. & Cont.                       512       635     700      1,464     1,920       1,786     1,924
                - YoY Growth (%)                   (25.5)    24.0     10.2     109.3      31.1        (6.9)      7.7
                Profit Before Tax                  1,006    1,036    1,174     1,285     1,427       2,139     2,674
                - YoY Growth (%)                    39.0      3.1     13.3       9.5      11.0        49.8      25.0
                Prov. for Taxation                  157       124     361       237           114      577      867
                - as a % of PBT                     15.7     11.9     30.7      18.5          8.0     27.0      32.4
                PAT                                 848       913     813      1,048     1,313       1,561     1,806
                - YoY Growth (%)                    18.4      7.6    (10.9)     28.8      25.3        18.9      15.7




               Balance sheet
               Y/E March (` cr)          FY08     FY09       FY10       FY11        FY12            FY13E     FY14E
                Share Capital             522      522        522        573            602          602        602
                Reserve &
                                         3,769    4,488      5,105     6,478       8,439            9,650     11,037
                Surplus
                Deposits              95,171 115,885 117,026 135,596 157,941 187,950 221,781
                - Growth (%)              21.0     21.8        1.0      15.9        16.5             19.0       18.0
                Borrowings               1,306    2,190      8,555     6,010       7,005            8,308      9,775
                Tier 2 Capital           2,585    3,224      3,618     3,518       3,585            4,194      4,907
                Other Liab. &
                                         3,779    3,946      4,225     4,364       4,896            5,683      6,502
                Prov.
                Total Liabilities    107,132 130,256 139,051 156,539 182,468 216,387 254,604
                Cash Balances         10,375     12,543      7,189    10,443       8,809            7,518      8,871
                Bank Balances            1,282    1,861      5,545     1,523       5,076            6,020      7,083
                Investments           28,076     30,537     33,011    35,068      40,815        53,343        63,750
                Advances              64,051     81,532     90,406 106,782 123,620 144,635 169,223
                - Growth (%)              24.0     27.3       10.9      18.1        15.8             17.0       17.0
                Fixed Assets              770      742        701        693       1,351            1,554      1,774
                Other Assets             2,579    3,040      2,198     2,031       2,797            3,317      3,903
                Total Assets         107,132 130,256 139,051 156,539 182,468 216,387 254,604
                - Growth (%)              20.0     21.6        6.8      12.6        16.6             18.6       17.7




May 11, 2012                                                                                                      9
                                              Syndicate Bank | 4QFY2012 Result Update



               Ratio analysis
               Y/E March                      FY08   FY09   FY10   FY11    FY12 FY13E FY14E
               Profitability ratios (%)
               NIMs                            2.2    2.2    2.1     3.0     3.1     3.0     3.0
               Cost to Income Ratio           49.6   51.7   52.0    48.1    45.7    45.0    44.3
               RoA                             0.9    0.8    0.6     0.7     0.8     0.8     0.8
               RoE                            24.0   21.6   16.6    17.6    17.2    16.9    17.1
               B/S ratios (%)
               CASA Ratio                     30.9   27.6   31.2    30.9    29.4    27.4    26.2
               Credit/Deposit Ratio           67.3   70.4   77.3    78.8    78.3    77.0    76.3
               CAR                            11.2   12.7   12.7    13.0    13.7    13.3    13.0
               - Tier I                        6.6    7.9    8.2     9.3    10.1     9.6     9.3
               Asset Quality (%)
               Gross NPAs                      2.7    1.9    2.2     2.4     2.5     3.7     4.6
               Net NPAs                        1.0    0.8    1.1     1.0     1.0     1.5     2.0
               Slippages                       2.4    1.5    1.8     1.7     2.7     2.7     2.7
               Loan Loss Prov. /Avg. Assets    0.4    0.3    0.4     0.6     0.8     0.8     0.7
               Provision Coverage             62.6   58.1   73.3    75.7    80.1    79.0    77.5
               Per Share Data (`)
               EPS                            16.2   17.5   15.6    18.3    21.8    25.9    30.0
               ABVPS (75% cover.)             69.9   82.9   98.8   116.1   143.6   163.8   186.8
               DPS                             2.8    3.0    3.0     3.7     3.8     5.0     6.0
               Valuation Ratios
               PER (x)                         5.6    5.2    5.8     5.0     4.2     3.5     3.0
               P/ABVPS (x)                     1.3    1.1    0.9     0.8     0.6     0.6     0.5
               Dividend Yield                  3.1    3.3    3.3     4.1     4.2     5.5     6.6
               DuPont Analysis
               NII                             2.1    2.1    2.0     3.0     3.0     3.0     2.9
               (-) Prov. Exp.                  0.5    0.5    0.5     1.0     1.1     0.9     0.8
               Adj. NII                        1.6    1.6    1.5     2.0     1.9     2.1     2.1
               Treasury                        0.3    0.2    0.3     0.0     0.1     0.0     0.0
               Int. Sens. Inc.                 1.9    1.8    1.8     2.0     1.9     2.1     2.1
               Other Inc.                      0.6    0.6    0.6     0.6     0.6     0.6     0.6
               Op. Inc.                        2.5    2.4    2.4     2.6     2.5     2.7     2.7
               Opex                            1.5    1.5    1.5     1.7     1.7     1.6     1.6
               PBT                             1.0    0.9    0.9     0.9     0.8     1.1     1.1
               Taxes                           0.2    0.1    0.3     0.2     0.1     0.3     0.4
               RoA                             0.9    0.8    0.6     0.7     0.8     0.8     0.8
               Leverage                       27.8   28.1   27.4    24.9    22.2    21.6    22.3
               RoE                            24.0   21.6   16.6    17.6    17.2    16.9    17.1




May 11, 2012                                                                                 10
                                                                                      Syndicate 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                                            Syndicate 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

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


May 11, 2012                                                                                                                              11