4QFY2012 Result Update | Banking

May 9, 2012

Indian Overseas Bank

Performance Highlights

BUY
CMP Target Price `82 `101
12 Months
4QFY11 1,215 977 434 % chg (yoy) 10.3 2.6 21.8

Particulars (` cr) NII Pre-prov. profit PAT

4QFY12 1,341 1,002 529

3QFY12 1,222 822 108

% chg (qoq) 9.7 21.9 388.4

Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code

Banking 6,543 1.1 157/73 97,738 10 16,480 4,975 IOBK.BO IOB@IN

Source: Company, Angel Research

Indian Overseas Bank (IOB) reported net profit growth of 21.8% yoy, mainly on account of a lower effective tax rate of 14.0% (due to tax write-back) and lower provisioning. Net profit came well ahead of our expectation, on account of lower provision coverage ratio and our anticipation of lower growth in operating income. We maintain our Buy view on the stock with a target price of `101. Strong business growth; but asset quality remain under pressure: During 4QFY2012, the banks domestic business momentum was stronger than the system, with growth in advances and deposits coming at 23.6% and 22.7% yoy, respectively. CASA deposits growth rate stood at moderate 8.8% yoy, driven by 8.8% yoy growth in more volatile current deposits and subdued 4.1% yoy growth in Savings deposits. Non-interest income growth was healthy at 23.4% yoy to `437cr, with growth coming from all sections. The cost of deposits for the bank went up by 18bp sequentially to 7.5%. The qoq rise in yield on funds (22bp to 10.0%), however, managed to fully offset the impact of increase in cost of funds (12bp qoq to 7.4%), resulting in sequential improvement in reported NIMs by 13bps to 2.7%. Though, the banks gross NPA ratio declined to 2.7% from 3.0% in 3QFY2012, annualized slippage ratio stood at a high of 3.6%. Bank provisioning for NPA, standard assets and restructured assets decreased by 37.3% qoq (11.5% yoy) to `355cr. The net NPA ratio for the bank stood at 1.35% (1.23% in 3QFY2012). PCR (incl. technical write-off) dipped by 402bp qoq to 67.7%. If the bank had maintained its PCR, the PBT would have lower by `237cr (38.5%). In addition to this, the bank restructured loans amounting to `3,170cr during the quarter, taking the outstanding restructured book to `12,641cr (9.0% of total advances). Outlook and valuation: The bank had faced substantial asset quality issues in FY2010 due to which RoEs were depressed to 11.5%. From this low base, we expect RoEs to improve to 13.9% in FY2014E, driven by 28.2% CAGR in earnings over FY2012-14E. However, we also remain wary of further incremental asset quality pressures that could arise due to banks continued aggressive lending even in FY2012. At the CMP, the stock is trading at cheap valuations, in our view, of 0.5x FY2014E P/ABV. Hence, we recommend a Buy rating on the stock with a target price of `101, valuing the stock at 0.6x FY2014E ABV. Key financials
Y/E March (` cr) NII % chg Net profit % chg NIM (%) EPS (`) P/E (x) P/ABV (x) RoA (%) RoE (%)
Source: Company, Angel Research

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 69.6 14.4 4.2 11.8

Abs. (%) Sensex IOB

3m (7.6) (18.1)

1yr (11.1) (46.4)

3yr 38.8 34.7

FY2011 4,208 35.1 1,073 51.7 2.8 17.3 4.7 0.6 0.7 14.8

FY2012 5,016 19.2 1,050 (2.1) 2.6 13.2 6.2 0.6 0.5 11.1

FY2013E 5,642 12.5 1,295 23.3 2.5 16.2 5.1 0.6 0.5 11.5

FY2014E 6,386 13.2 1,727 33.4 2.4 21.7 3.8 0.5 0.6 13.9

Vaibhav Agrawal
022 3935 7800 Ext: 6808 vaibhav.agrawal@angelbroking.com

Varun Varma
022 3935 7800 Ext: 6847 varun.varma@angelbroking.com

Sourabh Taparia
022 3935 7800 Ext: 6872 sourabh.taparia@angelbroking.com

Please refer to important disclosures at the end of this report

Indian Overseas Bank | 4QFY2012 Result Update

Exhibit 1: 4QFY2012 performance

Particulars (` cr) Interest earned - on Advances / Bills - on investments - on balance with RBI & others - on others Interest Expended Net Interest Income Other income Other income excl. treasury - Fee Income - Treasury Income - Recov. from written off a/cs - Others Operating income Operating expenses - Employee expenses - Other Opex Pre-provision Profit Provisions & Contingencies - Provisions for NPAs - Provisions for Investments - Other Provisions PBT Provision for Tax PAT Effective Tax Rate (%)
Source: Company, Angel Research

4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy) 4,911 3,741 1,050 77 43 3,571 1,341 504 437 268 67 56 113 1,844 842 508 334 1,002 388 277 (64) 175 615 86 529 14.0 4,604 3,513 1,013 79 3,383 1,222 411 376 237 35 21 118 1,633 810 546 264 822 667 295 84 288 155 47 108 30.1 6.7 6.5 3.7 (1.4) 5.6 9.7 22.5 16.1 13.1 91.4 166.7 (4.6) 13.0 3.9 (6.9) 26.1 21.9 (41.9) (6.1) (176.5) (39.3) 296.9 84.4 388.4 (1611)bp 3,532 2,616 823 68 25 2,317 1,215 384 354 228 30 46 80 1,600 623 363 260 977 446 305 42 100 531 97 434 18.2 39.1 43.0 27.6 14.2 70.3 54.1 10.3 31.0 23.3 17.5 121.1 21.7 40.5 15.3 35.2 40.1 28.2 2.6 (13.1) (9.2) (254.8) 75.8 15.8 (11.1) 21.8 (422)bp

Exhibit 2: Actual vs. Angel estimates

Particulars (` cr) NII Non-Interest Income Operating Income Operating Expenses Pre-Prov. Profit Provisions & Cont. PBT Prov. for Taxes PAT
Source: Company, Angel Research

Actual 1,341 504 1,844 842 1,002 388 615 86 529

Estimates 1,260 445 1,706 842 864 486 377 125 252

Variation (%) 6.4 13.1 8.1 (0.0) 16.1 (20.3) 63.1 (31.0) 109.5

May 9, 2012

Indian Overseas Bank | 4QFY2012 Result Update

Exhibit 3: 4QFY2012 performance

Particulars (` cr) Advances (` cr) Deposits (` cr) Credit-to-Deposit Ratio (%) Current deposits (` cr) Saving deposits (` cr) CASA deposits (` cr) CASA ratio (%) CAR (%) Tier 1 CAR (%) Profitability Ratios (%) Cost of deposits Yield on advances Yield on investments Yield on funds Cost of funds Reported NIM Cost-to-income ratio Asset quality Gross NPAs (` cr) Gross NPAs (%) Net NPAs (` cr) Net NPAs (%) Provision Coverage Ratio (%) Slippage ratio (%) NPA to avg. assets (%)
Source: Company, Angel Research

4QFY12

3QFY12

% chg (qoq)

4QFY11 % chg (yoy) 25.8 22.9 186bp 4.1 8.8 7.5 (378)bp (123)bp 19bp 150bp 109bp 18bp 83bp 127bp (42)bp 672bp 26.9 2bp 43.6 16bp (277)bp (78)bp (21)bp

140,724 132,549 178,434 167,006 78.9 12,287 34,862 47,149 26.4 13.3 8.4 7.5 10.9 7.4 10.0 7.4 2.7 45.6 3,920 2.7 1,907 1.4 67.7 3.6 0.5 79.4 10,300 33,376 43,676 26.2 11.8 6.7 7.3 10.8 7.4 9.8 7.2 2.6 49.6 3,972 3.0 1,600 1.2 71.7 2.5 0.6

6.2 111,833 6.8 145,229 (50)bp 19.3 4.5 8.0 27bp 148bp 167bp 18bp 13bp 3bp 22bp 12bp 13bp (398)bp (1.3) (26)bp 19.2 12bp (402)bp 118bp (6)bp 77.0 11,806 32,056 43,861 30.2 14.6 8.2 6.0 9.9 7.2 9.2 6.1 3.2 38.9 3,090 2.7 1,328 1.2 70.5 4.4 0.7

Healthy business growth continues; NIMs improves by 13bp qoq

During 4QFY2012, the banks domestic business momentum was stronger than the system, with growth in advances and deposits coming at 23.6% and 22.7% yoy, respectively. Consequently CD ratio for the bank improved from 77.0% in 4QFY2011 to 78.9% in 4QFY2012. On the liability side, growth in deposits was primarily driven by 29.5% yoy growth in term deposits. CASA deposits growth rate stood at moderate 8.8% yoy, driven by 8.8% yoy growth in the more volatile current account deposits and subdued 4.1% yoy growth in Savings account deposits. Consequently, CASA ratio contracted by 378bps yoy (improved slightly on qoq basis by 27bps) to 26.4% Despite the slight improvement in CASA ratio on a sequential basis, overall tight liquidity situation prevalent during the quarter lead to 18bps qoq rise in cost of deposits to 7.5%. The qoq rise in yield on funds (22bp to 10.0%), however, managed to fully offset the impact of increase in cost of funds (12bp qoq to 7.4%), resulting in improvement in reported NIM sequentially by 13bps to 2.7%.

May 9, 2012

Indian Overseas Bank | 4QFY2012 Result Update

Exhibit 4: Overall business growth remain healthy

Adv. yoy chg (%) 50.0 40.0 30.0 20.0 77.0 78.8 76.1 79.4 78.9 Dep. yoy chg (%) CDR (%, RHS) 85.0 80.0 75.0 70.0

Exhibit 5: CASA ratio declines by 378bp yoy

CASA ratio 32.0 24.0 16.0 21.7 14.9 14.9 CASA yoy growth (%, RHS) 24.0 18.0 12.0 6.0 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

12.8 7.5

41.6 31.1

43.6 38.1

44.2 38.5

32.4 33.5

25.8 22.9

30.2

27.6

27.5

26.2

10.0 -

65.0 60.0

4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

Source: Company, Angel Research

Source: Company, Angel Research

Exhibit 6: Yield on funds increase by 22bps qoq which...

(%) 12.00 10.00 8.00 6.00 4.00 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12 9.20 9.59 9.92 9.81 10.03

Exhibit 7: ...negated the rise in cost of funds, NIMs up 13bps qoq

(%) 3.60 3.20 2.80 2.40 2.00 1.60 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12 3.16 2.85 2.86 2.61 2.74

Source: Company, Angel Research

Source: Company, Angel Research

Healthy fee income growth for 4QFY2012

Non-interest income growth was healthy at 23.4% yoy to `437cr, with growth coming from all sections. Growth in fee income was healthy at 17.5% yoy to `268cr. Treasury income more than doubled on a yoy basis to 67cr, while recoveries improved by 21.7% yoy to `56cr.

Exhibit 8: Break-up of non-interest income

Particulars (` cr) Fee income Treasury Recoveries from written-off a/c Others Other income Other income excl. treasury
Source: Company, Angel Research

4QFY12 3QFY12 268 67 56 113 504 437 237 35 21 118 411 376

% chg (qoq) 4QFY11 13.1 91.4 166.7 (4.2) 22.6 16.2 228 30 46 80 385 354

26.4

8.0

% chg (yoy) 17.5 121.1 21.7 40.9 31.1 23.4

May 9, 2012

Indian Overseas Bank | 4QFY2012 Result Update

Asset quality remain under pressure

The banks asset quality remained under pressure during 4QFY2012. Though, the banks gross NPA ratio declined to 2.74% from 3.0% in 3QFY2012. The slippages for the quarter stood at much higher `1,015cr (annualized slippage ratio of 3.6% compared to 2.4% in 3QFY2012), with major contribution from sectors like textile, engineering, other metals and agriculture. Due to banks recent complete switchover to system driven NPA recognition platform, recoveries and upgrades were higher during the quarter at `448cr as against `285cr in 3QFY2012. Bank provisioning for NPA, standard assets and restructured assets decreased by 37.3% qoq (11.5% yoy) to `355cr. The net NPA ratio for the bank stood at 1.35% (1.23% in 3QFY2012). PCR (incl. technical write-off) dipped by 402bp qoq to 67.7%. If the bank had maintained its PCR, the PBT would have lower by `237cr (38.5%).
In addition to this, the bank restructured loans amounting to `3,170cr during the quarter, taking the outstanding restructured book to `12,641cr (9.0% of total advances). Major accounts, which were restructured during the quarter, included Air India and state discoms. The bank will take an NPV hit on Air India restructuring from 1QFY2013), while they clarified that there would be no NPV loss on restructuring of state discoms.

Exhibit 9: Slippage ratio of 3.6% in 4QFY2012

Slippages (%) 5.0 4.0 3.0 2.0 0.7 0.6 0.5 1.0 1.0 Credit cost (%, RHS) 1.2 0.9 0.6 0.3

Exhibit 10: PCR decline by 402bps qoq

Gross NPAs (%) 4.5 3.6 2.7 1.8 70.5 73.5 Net NPAs (%) 71.8 71.7 PCR (%, RHS) 80.0 67.7 70.0 60.0 50.0

4.4

1.7

3.6

2.5

3.6

2.7 1.2

2.8 1.1

3.1 1.2

3.0 1.2

4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

Source: Company, Angel Research

2.7 1.4
40.0

1.0

0.9

Source: Company, Angel Research

Investment arguments
Pace in business, but with its share of pain
The pace of business growth for the bank picked up in 2HFY2011 and even continued in FY2012, despite of domestic macro headwinds. Going by managements indication, growth momentum is likely to continue in FY2013 as well. The strong momentum witnessed in advances as well as deposits since 4QFY2011 has been marred by high slippages. Gross annualized slippage rates further increased from 1.7%, 1.5% (excl. system driven NPAs) and 2.5% in 1QFY2012, 2QFY2012 and 3QFY2012, respectively to 3.6% in 4QFY2012. In addition, the banks restructured book has grown by ~33.3% during the quarter.

May 9, 2012

Indian Overseas Bank | 4QFY2012 Result Update

Outlook and valuation

The bank had faced substantial asset quality issues in FY2010 due to which RoEs were depressed to 11.5%. From this low base, we expect RoEs to improve to 13.9% in FY2014E, driven by 28.2% CAGR in earnings over FY2012-14E. However, we also remain wary of further incremental asset quality pressures that could arise due to banks continued aggressive lending even in FY2012. At the CMP, the stock is trading at cheap valuations, in our view, of 0.5x FY2014E P/ABV. Hence, we recommend a Buy rating on the stock with a target price of `101, valuing the stock at 0.6x FY2014E ABV.

Exhibit 11: Key assumptions

Particulars (%) Credit growth Deposit growth CASA ratio NIMs Other income growth Growth in staff expenses Growth in other expenses Slippages
Source: Angel Research

Earlier estimates FY2013 22.0 24.0 27.5 2.6 32.9 22.0 23.0 3.2 FY2014 13.0 17.0 26.1 2.4 5.3 15.0 15.0 3.0

Revised estimates FY2013 11.5 15.0 25.6 2.5 1.8 13.0 13.0 2.6 FY2014 14.0 15.0 25.0 2.4 10.8 13.0 13.0 2.5

Exhibit 12: Change in estimates

FY2013 Particulars (` cr) NII Non-interest income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT
Source: Angel Research

FY2014 Earlier estimates 6,384 1,880 8,264 4,039 4,225 1,661 2,563 832 1,732 Revised Var. (%) estimates 6,386 1,896 8,283 4,039 4,244 1,687 2,557 830 1,727 0.0 0.9 0.2 (0.0) 0.5 1.5 (0.2) (0.2) (0.2)

Earlier estimates 5,627 1,701 7,328 3,575 3,753 1,825 1,928 626 1,303

Revised Var. (%) estimates 5,642 1,712 7,354 3,574 3,780 1,863 1,917 622 1,295 0.3 0.6 0.4 (0.0) 0.7 2.1 (0.6) (0.6) (0.6)

May 9, 2012

Indian Overseas Bank | 4QFY2012 Result Update

Exhibit 13: P/ABV band

Price (`) 350 300 250 200 150 100 50 0 0.4x 0.8x 1.2x 1.6x 2x

Apr-06

Apr-07

Apr-08

Apr-09

Apr-10

Apr-11

Oct-06

Oct-07

Oct-08

Oct-09

Oct-10

Oct-11

Apr-12

Source: Company; Angel Research

Exhibit 14: Recommendation summary

Company AxisBk FedBk HDFCBk ICICIBk* SIB YesBk AllBk AndhBk BOB BOI BOM CanBk CentBk CorpBk DenaBk IDBI# IndBk IOB J&KBk OBC PNB SBI* SynBk UcoBk UnionBk UtdBk VijBk Reco. Buy Neutral Accumulate Buy Neutral Buy Accumulate Neutral Buy Buy Buy Buy Neutral Buy Buy Buy Buy Buy Neutral Buy Buy Buy Buy Neutral Buy Buy Neutral CMP (`) 963 406 512 822 23 320 150 110 641 353 48 407 78 400 85 92 194 82 856 218 768 1,888 92 67 203 59 54 Tgt. price (`) 1,587 567 1,201 470 166 925 411 60 532 504 118 117 240 101 285 1,066 2,593 128 270 85 Upside (%) 64.8 10.6 46.2 46.7 10.8 44.3 16.3 24.0 30.7 25.9 39.2 27.3 23.7 23.1 31.0 38.8 37.4 40.3 33.1 42.7 FY2014E P/ABV (x) 1.3 1.0 2.9 1.3 1.1 1.6 0.6 0.7 0.7 0.7 0.6 0.7 0.7 0.5 0.5 0.5 0.7 0.5 0.8 0.5 0.8 1.2 0.5 0.7 0.7 0.4 0.6 FY2014E Tgt P/ABV (x) 2.2 3.3 1.9 2.4 0.7 1.1 1.0 0.7 0.9 0.7 0.7 0.7 0.8 0.6 0.6 1.1 1.6 0.8 0.9 0.6 FY2014E P/E (x) 6.9 7.1 14.4 10.1 6.1 7.7 3.6 4.3 4.3 4.4 3.6 4.3 3.9 3.6 3.3 3.8 4.0 3.8 4.4 3.4 4.4 7.0 3.3 4.7 3.9 2.7 4.4 FY2012-14E EPS CAGR (%) 16.4 13.0 27.0 20.4 4.5 22.5 6.2 3.3 11.1 23.3 26.8 10.9 45.7 5.3 6.2 22.7 5.4 28.3 8.8 27.7 10.3 23.6 8.7 7.0 27.3 11.4 13.5 FY2014E RoA (%) 1.5 1.3 1.7 1.5 0.8 1.4 0.9 0.9 1.1 0.8 0.9 0.9 0.5 0.8 0.9 0.9 1.2 0.6 1.4 0.8 1.0 1.0 0.8 0.5 0.9 0.7 0.5 FY2014E RoE (%) 20.3 14.5 22.1 16.0 17.5 23.3 17.6 16.0 18.2 16.9 17.5 16.7 13.8 16.5 16.9 14.8 18.2 13.9 18.6 14.3 18.1 19.1 17.1 13.4 18.1 15.9 13.7

Source: Company, Angel Research; Note:*Target multiples=SOTP Target Price/ABV (including subsidiaries), #Without adjusting for SASF

May 9, 2012

Oct-12

Indian Overseas Bank | 4QFY2012 Result Update

Income statement
Y/E March (` cr) Net Interest Income - YoY Growth (%) Other Income - YoY Growth (%) Operating Income - YoY Growth (%) Operating Expenses - YoY Growth (%) Pre - Provision Profit - YoY Growth (%) Prov. & Cont. - YoY Growth (%) Profit Before Tax - YoY Growth (%) Prov. for Taxation - as a % of PBT PAT - YoY Growth (%) FY09 2,870 7.1 1,713 59.3 4,583 22.0 1,942 30.7 2,641 16.4 687 11.7 1,954 18.1 629 32.2 1,326 10.3 FY10 3,114 8.5 1,197 (30.2) 4,311 (5.9) 2,466 27.0 1,845 (30.2) 866 26.1 979 (49.9) 272 27.8 707 (46.7) FY11 4,208 35.1 1,225 2.4 5,433 26.0 2,573 4.3 2,861 55.1 1,268 46.5 1,592 62.7 520 32.6 1,073 51.7 FY12 5,016 19.2 1,681 37.2 6,697 23.3 3,163 23.0 3,534 23.5 2,236 76.3 1,298 (18.5) 248 19.1 1,050 (2.1) FY13E 5,642 12.5 1,712 1.8 7,354 9.8 3,574 13.0 3,780 7.0 1,863 (16.7) 1,917 47.7 622 32.4 1,295 23.3 FY14E 6,386 13.2 1,896 10.8 8,283 12.6 4,039 13.0 4,244 12.3 1,687 (9.5) 2,557 33.4 830 32.4 1,727 33.4

Balance sheet
Y/E March (` cr) Share Capital Reserves & Surplus Deposits - Growth (%) Borrowings Tier 2 Capital Other Liab. & Prov. Total Liabilities Cash Balances Bank Balances Investments Advances - Growth (%) Fixed Assets Other Assets Total Assets - Growth (%) FY09 545 6,606 18.7 6,548 3,946 3,312 5,940 4,981 31,215 74,885 23.9 1,710 2,341 18.9 FY10 545 6,980 10.7 4,111 4,871 3,795 7,666 2,158 37,651 79,004 5.5 1,700 2,918 8.3 FY11 619 8,706 145,229 31.1 12,517 6,838 4,875 178,784 10,011 2,008 48,610 111,833 41.6 1,681 4,641 178,784 36.4 FY12 797 11,131 178,434 22.9 15,369 8,245 5,546 219,522 12,199 4,062 55,566 140,724 25.8 1,744 5,226 219,522 22.8 FY13E 797 12,148 205,199 15.0 17,599 9,193 6,432 251,367 8,208 4,651 73,679 156,908 11.5 1,937 5,984 251,367 14.5 FY14E 797 13,505 235,979 15.0 20,177 10,480 7,253 288,190 9,439 5,333 85,528 178,875 14.0 2,154 6,861 288,190 14.6

100,116 110,795

121,073 131,097

121,073 131,097

May 9, 2012

Indian Overseas Bank | 4QFY2012 Result Update

Ratio analysis
Y/E March Profitability ratios (%) NIMs Cost to Income Ratio RoA RoE B/S ratios (%) CASA Ratio Credit/Deposit Ratio CAR - Tier I Asset Quality (%) Gross NPAs Net NPAs Slippages Loan Loss Prov./Avg. Assets Provision Coverage Per Share Data (`) EPS ABVPS DPS Valuation Ratios PER (x) P/ABVPS (x) Dividend Yield DuPont Analysis (%) NII (-) Prov. Exp. Adj. NII Treasury Int. Sens. Inc. Other Inc. Op. Inc. Opex PBT Taxes RoA Leverage (x) RoE 2.6 0.6 2.0 0.6 2.5 1.0 3.5 1.7 1.8 0.6 1.2 20.9 24.8 2.5 0.7 1.8 0.2 2.0 0.7 2.7 2.0 0.8 0.2 0.6 20.5 11.5 2.7 0.8 1.9 0.1 2.0 0.7 2.7 1.7 1.0 0.3 0.7 21.4 14.8 2.5 1.1 1.4 0.1 1.5 0.8 2.2 1.6 0.7 0.1 0.5 21.0 11.1 2.4 0.8 1.6 0.0 1.6 0.7 2.3 1.5 0.8 0.3 0.5 20.9 11.5 2.4 0.6 1.7 0.0 1.8 0.7 2.4 1.5 0.9 0.3 0.6 21.6 13.9 3.4 0.8 5.5 6.3 0.8 4.3 4.7 0.6 6.1 6.2 0.6 3.0 5.1 0.6 3.7 3.8 0.5 4.9 24.3 99.5 4.5 13.0 97.7 3.5 17.3 126.8 5.0 13.2 129.7 2.5 16.2 144.0 3.0 21.7 160.4 4.0 2.5 1.3 3.7 0.3 48.0 4.5 2.5 4.1 0.7 54.0 2.7 1.2 2.7 0.7 67.9 2.7 1.4 2.8 0.7 67.7 3.9 1.5 2.6 0.7 71.2 4.7 1.6 2.5 0.6 71.5 30.3 74.8 12.7 7.6 32.5 71.3 14.8 8.7 30.2 77.0 14.6 8.2 26.4 78.9 15.3 8.8 25.6 76.5 14.8 8.4 25.0 75.8 14.5 8.1 2.7 42.4 1.2 24.8 2.6 57.2 0.6 11.5 2.8 47.3 0.7 14.8 2.6 47.2 0.5 11.1 2.5 48.6 0.5 11.5 2.4 48.8 0.6 13.9 FY09 FY10 FY11 FY12 FY13E FY14E

May 9, 2012

Indian Overseas Bank | 4QFY2012 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

Indian Overseas Bank No No No No

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

Ratings (Returns):

Buy (> 15%) Reduce (-5% to -15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

May 9, 2012

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