PUBLIC SECTOR BANKS
LARGE BANKS (POST-3)
A REVIEW OF Q2 RESULTS DT 02.12.2010
Most of the Banks in Private and Public sectors fared well in Q2 FY2011. But, how did they fare on a comparative basis within their respective groups?
We reviewed
(1)In Post.1, public sector Banks having Gross (total) Income of Rs.5000 cr and above in Q2 FY2011, which translates into a total annual income of Rs.20,000 Cr and above and
(2) In Post.2,the next lower three (3) PSBs whose gross total income is less than Rs.5000 Cr but more than Rs.3000 Cr – which translates into an annual income of Rs.12,000 Crs and above but less than Rs.20,000 Crs.
(3) We will now review the next lower 5 PSBs, whose total incomes are more than Rs.2000 Cr but less than Rs.3000 Cr. This means, their annual Income (Q2 x 4) is Rs.8000 Cr And above, but less than Rs.12,000 Cr; namely : Syndicate Bank, Allahabad Bank; Indian Bank; Andhra Bank; Corporation Bank .
For Facility of comparison their Qtrly EPS is multiplied by 4 to arrive at annualized EPS below. Market price per share is as on 01.12.2010. So PE ratio is based on these two figures.
Differences of all other banks in percentages are with reference to the 1st Bank namely SYNDICATE BANK only.
Interest on Advances : Rs.2193 Cr(Syn.Bk); Rs. 1984 Cr (Allh Bk); Rs.1726 Cr (Ind Bk); Rs.1480 Cr (Corp Bk); Rs.1560 Cr (And Bk);
Compared to Syndicate Bank - Allahabad Bank is less by 10.52%;Indian Bank is less by 27.06%; Corporation Bank is less by 48.21%. Andhra Bank is less by40.56%; It is significant that Andhra Bank is improving its interest on advances to higher level than corporation bank but corporation bank scores better in interest on Investments significantly.
Total Interest Earned : Rs.2741 Cr for Syn.Bk; Rs.2637 Cr for Allah.Bk; Rs.2276 Cr for Ind.Bk; Rs.2158 Cr for Corporation Bank; Rs.1941 Cr for Andhra Bank;
Compared to Syndicate Bank - Allahabad Bank is less by 3.96%; Indian Bank is less by 20.47%; Corporation Bank is less by 27.02%; Andhra Bank is less by 41.22%
Total Income : Rs.2973 for Syn. Bk; Rs.2982 for Allahabad Bank; Rs.2559 for Indian Bank; Rs. 2384 for Corporation Bank; Rs.2132 for Andhra Bank;
Compared to Syndicate Bank : Allahabad Bank has 0.3% more Income; Indian Bank is less by 16.16% less; Corporation Bank is less by 24.69; Andhra Bank is less by 39.42%
NII(earned - expended) : Rs.1108 Cr for Syn.Bnk; Rs.969 for Allaha Bk; Rs.983 Cr for Indian Bank; Rs.783 Cr for Andhra Bank; Rs.715 for Corp.Bnk;
Compared to Syndicate Bank: Allahabad Bank is less by 14.28%; Indian Bank is less by 12.65%; Andhra bank is less by 41.41%; Corporation bank is less by 54.86%. It is significant that Andhra Bank scores higher NII than corporation Bank, though it is less in Total Income. Indian Bank is improving NII fast.
Operating Profit : Rs.778 Cr for Syndicate bank; Rs.782 Cr for Allahabad Bank; Rs. 739 Cr for Indian Bank; Rs.565 Cr for Andhra Bank; Rs.573 cr for Corporation Bank;
Compared to Syndicate Bank: Allahabad bank is more by 0.39%; Indian Bank is less by 5.35%; Andhra Bank is less by 37.89%; Corporation Bank is less by 35.74%; Indian Bank is improving its tally with reference to Allahabad Bank and Syndicate Bank. Andhra Bank is closing its gap with Corporation Bank.
Provisions : Rs.449.63 cr for Syn.Bank; Rs.271.44Cr for Allahabad Bank; Rs.132.97 cr for Indian Bank; Rs. 119.58 cr for Andhra Bank; Rs.97.63 cr for Corporation Bank;
Compared to Syndicate Bank: Allahabad bank is less by 65.65%; Indian Bank is less by 238.14%; Andhra Bank is less by 276.01%; Corporation Bank is less by 360.54%.
Corp.Bank had in previous 5 qtrs, provisions of : Rs.97.63cr; Rs.126.61cr; Rs.165.10cr; Rs. 127.12cr; and Rs.93.97 cr;
Andhra Bank had : Rs.119.58cr; Rs.51.99 cr; Rs.222.94 cr; Rs.96.42cr; Rs.57.83cr;
Indian Bank had : Rs.132.97cr; Rs.343.90cr; Rs. 213.56 cr; Rs.32.04cr; Rs.29.28;
Allahabad Bank had : Rs.271.44 cr; Rs.151.05cr; Rs.297.16cr; Rs.246.28cr; Rs.193.85cr;
Syndicate Bank had : Rs.449.63cr; Rs.234.64cr; Rs.263.23cr; Rs.206.94; Rs. 195.47cr;
Q2 FY11 was a particularly bad qtr for syndicate Bank in Provisions but in previous qtrs also, it had higher than other Banks. Allahabad bank also has higher provisions in all qtrs compared to Indian, Andhra and Corp Banks. The last 3 have reasonable record in Provisions.
Net Profit : Rs.237 for Syndicate Bank; Rs.403 for Allahabad Bank; Rs.416 for Indian Bank; Rs.303cr for Andhra Bank; Rs.352 for Corporation Bank;
Compared to Syndicate Bank: Allahabad bank has 69.79% higher NPT; Indian Bank has +75.36%; Andhra Bank has +27.78% and Corporation Bank has +48.35%. As seen earlier, Syndicate Bank was stymied by huge provisions in Q2 and may come back to reasonable level in Q3. Andhra Bank too had slightly more than previous qtr and may reduce its Provisions in Q3. Indian Bank has the highest NPT and can be expected to improve further, given the fast pace at which it is progressing. Andhra Bank also may have further reduced provisions in q3. In any case, the last 3 do not seem to have much of persistent long term problems in provisions and NPAs.
Hence, Indian Bank can produce much better NPT than syndicate and Allahabad Banks in Q3 also. Andhra and Corporation bank may produce equal, but better than Q2 performances – judging from their current progress.
If Syndicate and Allahabad Banks can arrest their Provisions trend, they can progress well.
Capital Adequacy Ratio : At 12 for syndicate; 13 for Allahabad;12 for Indian; 12 for Andhra and 14 for Corporation bank – are all quite Good; According to current info, some 10 Banks like Andhra are likely to get further funds infusion from Government where Banks have less than 58% holding of government (i.e., Public holding of 42% or more). This funds infusion will work favourably for Andhra Bank further. Indian Bank also is raising further funds. Overall – all Banks are seriously looking at their loanable funds position and taking steps to improve it. But, Andhra bank and Indian bank are at the moment likely to improve this immediately.
% of Gross/Net NPA : Syndicate Bank is the highest at 0.97%; Allahabad bank is at 0.56%; Indian Bank is at 0.73%; Andhra Bank is at 0.49%; Corporation Bank is at 0.39%. The last 2 are very comfortable – while others are at moderate level.
Return on Assets : Lowest for Syndicate Bank at 0.76; Good for Allahabad bank at 1.28; Highest for Indian Bank at 1.51; Very good for Andhra Bank at 1.37 and Corporation Bank at 1.3.
Basic Qtrly EPS : Syndicate Bank is at Rs.4.54; Allahabad Bank is at Rs.9.01; Indian Bank is at Rs.9.4. Andhra Bank is at Rs.6.25; and Corporation Bank is at Rs. 24.52.
Annualised EPS : Bsed on the above, annualised EPS (Q2 X 4) is :-Rs.18.16 for Syndicate; Rs.36.04 for Allahabad bank; Rs.37.6 for Indian Bank; Rs.25 for Andhra Bank and Rs.98.08 for Corpor.Bank. This is because of equity differences as below.
Paid-up Equity is Highest for Syn.Bank at Rs.521.97cr; Rs.446.70 cr for Allahabad Bank; Rs.429.77cr for Indian Bank; Rs. 485 Cr for Andhra Bank; Lowest at Rs.143.44 cr for Corp.Bank.
Market Price as on 01 12 2010: Rs. 142 for syndicate; Rs.245 for Allahabad; Rs.291 for Indian; Rs.165 for Andhra; Rs.717 for Corporation bank;
PE RATIO : Based on the above, PE ratios are 7.82 for Syndicate;6.8 for Allahabad; 7.74 for Indian; 6.6 for Andhra and 7.31 for Corporation Banks.
The last 3 are performing excellently in all respects. They seem to deserve much better valuations of at least 10.
Market needs to take into account the consistent performance of these PSBs.
RESULTS IN FIGURES :
| PSBS Q2 FY 11 | SYND.BK | ALLAHABAD BK | IDNIAN BK | ANDHRA BK | CORP BK |
| Interest on Advances | 219282 | 198405 | 172586 | 156005 | 147951 |
| Dif%1 | 0 | 10.52 | 27.06 | 40.56 | 48.21 |
| Income on Investments | 54289 | 63082 | 53883 | 37313 | 60715 |
| Interest on Balances With RBI | 177 | 1430 | 1093 | 798 | 308 |
| Others | 385 | 776 | - | - | 6838 |
| Interest Earned | 274133 | 263692 | 227562 | 194116 | 215811 |
| dif%2 | 0 | 3.96 | 20.47 | 41.22 | 27.02 |
| Other Income | 23147 | 34474 | 28366 | 19117 | 22613 |
| Total Income | 297280 | 298166 | 255928 | 213233 | 238424 |
| Inc Dif | 0 | -0.3 | 16.16 | 24.69 | 39.42 |
| Interest Expended | 163370 | 166773 | 129240 | 115789 | 144287 |
| NII(earned - expended) | 110763 | 96919 | 98322 | 78326 | 71525 |
| Dif%3 | 0 | 14.28 | 12.65 | 41.41 | 54.86 |
| Employees cost | 37030 | 35035 | 36922 | 26010 | 18660 |
| Other Operating Expenses | 19033 | 18206 | 15872 | 14978 | 18128 |
| Operating Expenses | 56063 | 53241 | 52794 | 40988 | 36789 |
| Total Exp | 219433 | 220013 | 182034 | 156777 | 181075 |
| Operating Profit | 77847 | 78153 | 73894 | 56456 | 57349 |
| Dif%4 | 0 | -0.39 | 5.35 | 37.89 | 35.74 |
| Provisions | 44963 | 27144 | 13297 | 11958 | 9763 |
| Dif%5 | 0 | 65.65 | 238.14 | 276.01 | 360.54 |
| P B T | 32884 | 51009 | 60597 | 44497 | 47585 |
| Tax Expense | 9174 | 10752 | 19020 | 14200 | 12412 |
| P A T | 23710 | 40257 | 41577 | 30297 | 35173 |
| Net Profit | 23710 | 40257 | 41577 | 30297 | 35173 |
| Dif%6 | 0 | 69.79 | 75.36 | 27.78 | 48.35 |
| Face Value (Rs) | 10 | 10 | 10 | 10 | 10 |
| Paid-up Eq. | 52197 | 44670 | 42977 | 48500 | 14344 |
| Capital Adequacy Ratio | 12 | 13 | 12 | 12 | 14 |
| Basic EPS | 4.54 | 9.01 | 9.4 | 6.25 | 24.52 |
| Annual EPS | 18.16 | 36.04 | 37.6 | 25 | 98.08 |
| Dif%7 | 0 | 98.46 | 107.05 | 37.67 | 440.09 |
| Gross/Net NPA | 91707 | 45650 | 50567 | 29936 | 26955 |
| % of Gross/Net NPA | 0.97 | 0.56 | 0.73 | 0.49 | 0.39 |
| Return on Assets | 0.76 | 1.28 | 1.51 | 1.37 | 1.3 |
| Public holding (%) | 34 | 45 | 20 | 48 | 43 |
| MP on 01 12 2010 | 142 | 245 | 291 | 165 | 717 |
| PE RATIO | 7.82 | 6.8 | 7.74 | 6.6 | 7.31 |
* * * E N D * * *
No comments:
Post a Comment