PUBLIC SECTOR BANKS = Q2 FY 2011 (COMPARATIVE) RESULTS = UNITED BANK = VIJAYA BANK = BANK OF MAHARASHTRA = DENA BANK = POST 4

PUBLIC SECTOR BANKS

(POST-4)

A REVIEW OF Q2 RESULTS DT 03.12.2010

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;(Excluding SBI and its affiliates);  

(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; And,

(3) In Post.3, the next lower 5 PSBs, whose total incomes are more than Rs.2000 Cr but less than Rs.3000 Cr –which translates to a total annual Income of Rs.8000 Cr and above, but less than Rs.12000 cr.

(4)Now – In post.4 –we will review the next lower rung of 4 PSBs whose total annual Income is less than 8000 cr – or whose Q2 total income was less than Rs.2000 cr. These are : United Bank; Vijaya Bank; Bank of Maharashtra; and  Dena 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 03.12.2010 at the time of writing this Post. So PE ratio is based on these two figures.

Differences of all other (3) banks in percentages are with reference to the 1^st Bank namely UNITED BANK only. Now follows the review :

Interest on Advances : Rs.1094 cr for UnBk; Rs.996 Cr for Vijaya Bk; Rs.929 cr for BOM; Rs.913 Cr for Dena Bk;

Compared to United Bank : Vijaya is less by 9.79%; BOM is less by 17.81%; Dena is less by 19.8%.

Total Income : Rs.1658 Cr for Un Bk; Rs.1521 for Vijaya Bk; Rs.1426 Cr for BOM; Rs.1340 Cr for Dena Bk;

Compared to United Bank : Vijaya is less by 8.98%; BOM is less by 16.27%; Dena is less by 23.66%

NII (Earned-expended) : Rs.526. Cr for Un Bk; Rs.    487 cr for Vijaya; Rs.461 Cr for BOM; Rs.465 Cr for Dena Bk;

Compared to United Bank : Vijaya is less by 8.01%; BOM is less by 14.12%; Dena is less by 13.1%.Dena has a better NII percentage (less by 13.1%) compared to Total Income percentages (less by 23.66%).

Operating Profit : Rs.356 Cr for Un.Bk; Rs.296 Cr for Vijaya; Rs.220 Cr for for BOM; Rs.326 Cr for Dena Bk;

Compared to United Bank : Vijaya is less by 19.84%; BOM is less by 60.96%; Dena Bk is less by 8.88%. Here again, Dena Bank scores handsomely over Vijaya and BOM and is very close to  United Bank.

Provisions   : Rs.218 cr for Un Bk; Rs.102 cr for Vijaya; Rs.177 cr for BOM; Rs.73 Cr for Dena;

Compared to United Bank : Vijaya is less by 115%; BOM is less by 24%; Dena is less by 199%

For Un Bk, last 3 Qtrs Provisons was : Rs.218 cr; Rs.170 cr and Rs.282 cr;

For Vijaya Bk, last 5 Qtrs Provisons was : Rs.102cr; Rs.      61cr; Rs.160 cr; Rs.131 cr; Rs. 101 cr; Vijaya Bank has better control over provisions than UB.

For BOM, last 5 Qtrs Provisons was : Rs.176cr; Rs.     97 Cr; Rs.120 Cr; Rs.46 Cr; Rs.43Cr; There is steep deterioration in Q2.

For Dena Bk, last 5 Qtrs Provisons was : Rs.73 Cr; Rs. 43Cr; Rs.82 Cr; Rs.29 Cr; Rs.1.5 Cr; Though provisions have increased in Q2, it is still much better than all the other 3 Banks.

Net Profit    : Rs.110 cr for Un Bk; Rs.144 cr for Vijaya; Rs.52 Cr for BOM; Rs.161 Cr for Dena Bk;

Compared to United Bank : Vijaya Bank is more by 24%; BOM is less by 110%; Dena Bank is more by 31.68%.

Paid-up Equity : Rs.316 cr for Un Bk; Rs.434 cr for Vijaya;Rs.431 Cr for BOM; Rs.287 for Dena Bk;

Compared to United Bank : Vijaya Bk is more by 27.01%; BOM is more by 26.5%; Dena Bank is less by 10.32%.

Basic Qtrly EPS : Rs.3.47 for Un Bk; Rs.  3.33 for Vijaya; Rs.1.21 for BOM; Rs.5.6 for Dena Bk; The Annualized  EPS comes to Rs.13.88 for Un Bk; Rs.13.32 for Vijaya; Rs. 4.84 for BOM; Rs.22.4 for Dena Bk;

For United Bk, the last 3 Q EPS has been : Rs.3.47;Rs.       3.41 and Rs.1.51.

For Vijaya, the last 5 Q EPS has been : Rs.3.33; Rs.4.00; Rs.3.01; Rs.2.87; Rs.2.50; Vijaya Has been steadily improving its EPS.

For BOM, the last 5 Q EPS has been : Rs.1.21; Rs.      2.75; Rs.3.23; Rs.2.60; Rs.2.01; BOM has been consistently scoring lower EPS than other 3 banks. Q2 FY 11 has been the lowest.

For Dena, the last 3 Q EPS has been : Rs.5.60; Rs.4.84; Rs.4.78; Rs.4.69; Rs. 4.35; Obviously, DENA BANK has been consistently performing and improving in each quarter well – compared to all the other 3 Banks. It seems to be well ahead of the other 3 Banks. Next comes Vijaya Bank in consistency of performance and improvement.

% of Gross/Net NPA : 1.58% for Un Bk;  1.32% for Vijaya; 2.18% for BOM;      1.49% for  Dena Bank;

For Un Bk, last 3 Qtrs had : 1.58% ; 1.80%; 1.84%.

For Vijaya Bank, last 5 Qtrs had : 1.32%;    1.35%; 1.40%; 1.30%; 1.46%;

For BOM, last 5 Qtrs had : 2.18 %; 2.02%; 1.64%; 1.73%; 1.61%;

For Dena Bank, last 5 Qtrs had : 1.49%; 1.49%; 1.21%; 1.19%; 1.24%;

Dena Bank and Vijaya Bank both have around 1.4% which is also higher compared to some of the more efficient Banks – covered in Posts 1,2 and 3. But, within this group of 4, they are far better than Un Bank and BOM; An improvement in this ratio will take Dena bank and Vijaya Bank to much higher levels of profitability.

Return on Assets      : 0.57     for Un Bk; 0.81 for Vijaya; 0.31    for BOM; 1.09 for Dena Bank;

For Un Bk, last 3 Qtrs had : .57; .58; .45;

For Vijaya Bank, last 5 Qtrs had : .81; .96; .73; .77; .68;

For BOM, last 5 Qtrs had : .31      .69 .82 .70 .56

For Dena Bank, last 5 Qtrs had : 1.09 ; .97; 1.02; 1.04; 1.01;

Dena Bank has a clear edge over all the other three in this important parameter also. It is almost consistently scoring above 1 – like many other EFFICIENT BANKS in other categories. Vijaya Bank has also been improving very well.

MP AS ON 03 12 10 : Rs.120 for Un Bk; Rs.102 for Vijaya; Rs.72 for BOM; Rs.133 for Dena Bank.

PE RATIO ON 03 12 10   : 8.65 for United Bank; 7.66 for Vijaya Bank; 14.88 for BOM; 5.94 for Dena Bank;

Performance=wise, Dena Bank seems to have a clear edge over all other 3 Banks – But, PE Ratio is a mere 5.94 which reflects a good scope for price appreciation when market takes due note of its superior performance.

Next good performer is Vijaya Bank, which also has been improving well and deserves better valuations in the Market.

RESULTS IN FIGURES : (In lakhs of Rs)

PSBS Q2 FY 11	UNITED BK	VIJAYA BK	BK OF MAHA	DENA BK
Interest on Advances	109401	99645	92865	91321
Dif %1	0	9.79	17.81	19.8
Income on Investments	41156	40002	37206	30343
Interest on Balances With RBI	34	10	598	482
Others	-	667	127	1
Interest Earned	150591	140324	130796	122147
Other Income	15160	11768	11765	11891
Total Income	165751	152092	142561	134038
Dif% 2	0	8.98	16.27	23.66
Interest Expended	97968	91602	84682	75620
NII:Earned-expended	52623	48722	46114	46527
Dif%3	0	8.01	14.12	13.1
Employees cost	21097	20908	24153	16251
Other Operating Expenses	11231	9997	11699	9603
Operating Expenses	32328	30905	35852	25854
Total Exp E P A C	130296	122507	120534	101474
Operating Profit	35455	29585	22027	32564
Dif %4	0	19.84	60.96	8.88
Provisions	21781	10154	17613	7285
Dif%5	0	114.51	23.66	198.98
P B T	13674	19431	4414	25279
Tax Expense	2700	5000	-816	9216
P A T	10974	14431	5230	16063
Net Profit	10974	14431	5230	16063
Dif %6	0	-23.96	109.83	-31.68
Face Value (in Rs.)	10	10	10	10
Paid-up Eq.	31643	43352	43052	28682
Dif%7	0	-27.01	-26.5	10.32
Percentage Held by GOI	84.2	53.87	76.77	51.19
Capital Adequacy Ratio	10.9	14.27	12.78	10.31
Basic EPS	3.47	3.33	1.21	5.6
Annual EPS	13.88	13.32	4.84	22.4
Gross/Net NPA	72944	52055	87988	53779
% of Gross/Net NPA	1.58	1.32	2.18	1.49
Return on Assets	0.57	0.81	0.31	1.09
Public holding (%)	15.8	46.13	23.23	48.81
MP AS ON 03 12 10	120	102	72	133
PE RATIO ON 03 12 20	8.65	7.66	14.88	5.94

Note : All suggestions, comments and corrections etc – from READERS will be gratefully taken note of, by this blog.

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