2QFY2013 Result Update | Banking

October 26, 2012

Oriental Bank of Commerce

Performance Highlights

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

2QFY13 1,157 921 302 1QFY13 1,126 897 391 % chg (qoq) 2.8 2.8 (22.8) 2QFY12 989 758 168 % chg (yoy) 16.9 21.5 80.2

NEUTRAL
CMP Target Price
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 9,010 1.1 324/190 50,294 10 18,625 5,664 ORBC.BO OBC@IN

`309 -

Source: Company, Angel Research

Oriental Bank of Commerce (OBC) reported a healthy set of numbers for 2QFY2013, with net profit growing by 80.2% yoy to `302cr. The bottom-line was still below our estimates owing to a higher effective tax rate for 2QFY2013 (34.5%) than factored by us. We maintain our Neutral rating on the stock. Asset quality stable: The business growth for the bank was moderate with advances growing by 12.7% yoy and deposits growing by 9.8% yoy. The growth in advances was driven by a healthy growth in the retail book which grew by 27.8% yoy. On the deposits front, growth was on the lower side (9.8% yoy), mostly due to shedding of high cost bulk deposits (`6,700cr shed in last six months). The

growth in current account savings account (CASA) deposits was healthy, with savings deposits growing by 16.1% yoy and current account deposits growing by 15.3% yoy. The CASA ratio as of 2QFY2013 stood at 24.1%.
Sequentially, the cost of deposits declined marginally for OBC by 5bp to 7.9% on account of stable CASA ratio and shedding of high cost bulk deposits (now stand at 22.1% of the overall deposits). The margins for the bank remained flat qoq at 2.8% for 2QFY2013. The banks fee income was higher by 37.0% yoy, primarily due to a sharp surge in recoveries from written-off accounts (`141cr compared to `39cr in 2QFY2012). The performance on the commissions, exchange and brokerage (CEB) income front was weak, with it declining by 5.0% yoy to `183cr.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 58.0 25.4 9.6 7.0

Slippages were under control during 2QFY2012 with the annualised slippage rate at 2.3% (lowest in the last four quarters). The gross NPAs stood at 2.9% (3.0% for 1QFY2013) while the net NPAs for the bank stood at 2.1% (2.0% for 1QFY2013). The provision coverage for the bank now stands at 64.5%.
Outlook and valuation: Structurally modest deposit franchise and RoE profile notwithstanding, in recent quarters OBC has been delivering strong recoveries, stable GNPA and NNPA ratios and stable NIMs, unlike peers, leading to relatively better earnings outlook. We have factored in a 26.5% EPS CAGR over FY2013-2014 (aided by lower provisioning expenses). However considering the sharp run up in the stock recently, we recommend a neutral rating on the stock.

Abs. (%) Sensex OBC

3m 8.6 26.7

1yr 7.7 7.2

3yr 11.3 17.3

Key financials (standalone)

Y/E March (` cr) NII % chg Net profit % chg NIM (%) EPS (`) P/E (x) P/ABV (x) RoA (%) RoE (%)
Source: Company, Angel Research

FY2011 4,178 43.7 1,503 32.5 2.9 51.5 6.1 0.9 1.0 17.1

FY2012 4,216 0.9 1,142 (24.0) 2.6 39.1 8.0 0.9 0.7 10.7

FY2013E 4,927 16.9 1,654 44.9 2.6 56.7 5.5 0.8 0.9 15.0

FY2014E 5,716 16.0 1,827 10.5 2.7 62.6 5.0 0.7 0.9 14.4

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

Oriental Bank of Commerce | 2QFY2013 Result Update

Exhibit 1: 2QFY2013 performance (standalone)

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

2QFY13 4,415 3,425 986 3 0 3,257 1,157 407 355 183 52 141 31 1,564 643 366 276 921 460 301 (6) 165 461 159 302 34.5

1QFY13 4,287 3,332 946 8 1 3,161 1,126 408 422 170 (13) 197 55 1,534 638 376 262 897 332 430 (132) 34 564 173 391 30.7

% chg (qoq) 3.0 2.8 4.3 (60.7) (79.6) 3.0 2.8 (0.4) (15.9) 7.6 (489.2) (28.2) (43.8) 1.9 0.8 (2.6) 5.6 2.8 38.5 (30.0) (95.3) 388.0 (18.3) (8.0) (22.8) 385bp

2QFY12 3,801 2,873 829 98 1 2,812 989 277 259 192 18 26 41 1,267 509 278 230 758 485 342 80 63 273 105 168 38.5

% chg (yoy) 16.1 19.2 18.9 (96.6) (71.2) 15.9 16.9 46.6 37.0 (5.0) 183.9 442.7 (24.1) 23.4 26.3 31.7 19.9 21.5 (5.2) (12.0) (107.7) 161.9 69.1 51.4 80.2 (403)bp

1HFY13 8,702 6,757 1,932 12 1 6,419 2,283 815 777 352 39 338 86 3,098 1,280 743 538 1,818 792 731 (138) 199 1,026 332 694 32.4

1HFY12 7,398 5,557 1,598 208 35 5,390 2,008 601 511 339 90 65 107 2,609 1,049 598 452 1,560 800 478 214 108 760 238 522 31.3

% chg 17.6 21.6 20.9 (94.3) (96.4) 19.1 13.7 35.6 51.9 3.9 (57.1) 419.7 (19.3) 18.8 22.0 24.2 19.1 16.6 (1.0) 53.1 (164.6) 83.6 35.0 39.8 32.8 113bp

Exhibit 2: 2QFY2013 Actual vs Angel estimates

Particulars (` cr) Net interest income Other income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT
Source: Company, Angel Research

Actual 1,157 407 1,564 643 921 460 461 159 302

Estimates 1,201 290 1,492 635 856 370 486 97 389

Var. (%) (3.7) 40.0 4.9 1.1 7.6 24.3 (5.1) 63.7 (22.3)

October 26, 2012

Oriental Bank of Commerce | 2QFY2013 Result Update

Exhibit 3: 2QFY2013 performance (standalone)

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 (%) 3,466 2.9 2,393 2.0 64.5 2.3 0.7 3,378 3.0 2,306 2.1 64.4 2.5 1.0 2.6 (5)bp 3.8 (1)bp 5bp (20)bp (30)bp 3,111 3.0 1,978 1.9 63.8 6.3 0.8 11.4 (3)bp 21.0 14bp 70bp (394)bp (16)bp 7.9 12.4 7.5 9.6 7.1 2.8 41.1 8.0 12.4 7.5 9.5 7.0 2.8 41.6 (5)bp (3)bp 0bp 4bp 3bp 0bp (47)bp 7.6 11.7 7.5 9.1 6.7 2.6 40.2 30bp 70bp 0bp 52bp 37bp 15bp 94bp 2QFY13 117,821 164,174 71.8 9,945 29,676 39,621 24.1 12.1 9.7 1QFY13 113,896 158,152 72.0 9,899 28,092 37,990 24.0 12.3 9.9 % chg (qoq) 3.4 3.8 (25)bp 0.5 5.6 4.3 11bp (23)bp (23)bp 2QFY12 104,530 149,552 69.9 8,624 25,558 34,182 22.9 12.6 9.9 % chg (yoy) 12.7 9.8 187bp 15.3 16.1 15.9 128bp (53)bp (23)bp

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

Business growth moderate; NIMs remain stable

The business growth for the bank was moderate with advances growing by 12.7% yoy and deposits growing by 9.8% yoy. The growth in advances was driven by a healthy growth in the retail book which grew by 27.8% yoy. The management indicated that they would continue to focus on retail credit to drive the loan growth forward. On the deposits front, growth was on the lower side (9.8% yoy) mostly due to shedding of high cost bulk deposits (`6,700cr shed in last six months), which has also led to slower credit off-take. However the bank is expected to pick up pace

in its loan growth hereon and as per the management, utilization of excess SLR and traction in retail term deposits (up 12.2% qoq), despite further reduction in bulk deposits going ahead, should be able to fund higher loan growth. The management looks positive to achieve a loan growth of 16% for FY2013. The growth in CASA deposits was healthy, with savings deposits growing by 16.1% yoy and current account deposits growing15.3% yoy. The CASA ratio as of 2QFY2013 stood at 24.1%

October 26, 2012

Oriental Bank of Commerce | 2QFY2013 Result Update

Sequentially, the cost of deposits declined marginally for OBC by 5bp to 7.9% on account of stable CASA ratio and shedding of high cost bulk deposits (now stand at 22.1% of the overall deposits). The margins for the bank remained flat qoq at 2.8% for 2QFY2013. The management has guided for further reduction in bulk deposits going ahead which should help the bank push up the margins to 2.9% by 3QFY2013 and 3.0% by FY2013 end.

Exhibit 4: Business growth picking up

Adv. qoq chg (%) Dep. qoq chg (%) 71.8 72.0 CDR (%, RHS) 71.8 75.0 70.0 65.0

Exhibit 5: CASA ratio remains stable

CASA ratio 24.5
15.9 12.5 10.2 7.1 6.8

CASA yoy growth (%, RHS) 20.0 15.0 10.0

6.4

8.0 6.0 4.0

69.9

70.9

23.0

3.5

5.9 4.4

1.2

1.7 1.4

3.4 3.8

2.0 -

21.5

22.9

22.3

24.1

24.0

(0.1)

(2.0) 2QFY12 3QFY12

55.0 1QFY13 2QFY13

20.0 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13

24.1

60.0

5.0 -

4QFY12

Source: Company, Angel Research

Source: Company, Angel Research

Exhibit 6: Lower CoD due to shedding off of bulk deposits

8.50 8.00 7.50 7.00 6.50 6.00 5.50 5.00 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 7.63 7.85 7.99 7.98 7.93

Exhibit 7: NIMs expand by 11bp qoq

(%) 3.00 2.75 2.50 2.25 2.00 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 2.64 2.90 2.79 2.68 2.79

Source: Company, Angel Research

Source: Company, Angel Research

Recoveries from written off accounts stay strong

The banks fee income was higher by 37.0% yoy, primarily due to a sharp surge in recoveries from written-off accounts (`141cr compared to `39cr in 2QFY2012). The performance on the CEB front was weak, with CEB income declining by 5.0% yoy to `183cr. The treasury income came in strong at `52cr compared to `18cr in 2QFY2012. The management had expected `450cr worth of recoveries from written off accounts for FY2013 initially at the start of the financial year, however the bank has so far already been able to witness recoveries of `338cr. The management has increased its guidance for these recoveries, but expects them to moderate down to normalised levels for 2HFY2013.

October 26, 2012

Oriental Bank of Commerce | 2QFY2013 Result Update

Slippages remain under control

Slippages were under control during 2QFY2012 with the annualised slippage rate at 2.3% (lowest in the last four quarters). The gross NPAs stood at 2.9% (3.0% for 1QFY2013) while the net NPAs for the bank stood at 2.1% (2.0% for 1QFY2013). The provision coverage for the bank now stands at 64.5%. The management has guided for gross NPAs of 2.8% and net NPAs of 1.75% by FY2013 end. The bank had to provide `141cr on account of funded interest term loan (FITL) losses (Air India - `37cr) and diminution in fair value on its restructured book during the quarter. The bank expects `500cr worth principle exposure to Air India to be refunded by the government and hence expects FITL losses to lower down to `25cr over the next six quarters. The banks restructuring book increased by `329cr during 2QFY2013, taking the total restructuring book to `11,493cr. The management expects `2,500cr of restructuring during 3QFY2013 (`1,200cr due to Punjab state electricity board [SEB] and ~`1,300cr due to other industries). The effective tax rate for 2QFY2013 was 34.5%, however as per the management the overall effective tax rate for FY2013 is expected to be ~20% and hence the bank would have to provide lower for tax provisioning in 2HFY2013. Exhibit 8: NPA ratios trend
Gross NPAs (%) 3.0 2.5 2.0 1.5 1.0 63.8 63.3 64.4 61.5 64.5 Net NPAs (%) PCR (%, RHS) 70.0 65.0 60.0 55.0 6.5 5.2 3.9 2.6 0.2 0.8

Exhibit 9: Slippages under control

Slippages (%) 1.1 Credit cost (%, RHS) 1.2 1.0 1.0 0.8 0.7 0.6 0.4

6.3

2.9

5.5

2.9

3.0 1.9

2.9 1.9

3.2 2.2

3.0 2.1

2.9 2.0

0.5 -

2.7

1.3 -

0.2 -

50.0 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

Source: Company, Angel Research; Note: PCR incl. technical write-offs

Source: Company, Angel Research

Exhibit 10: Opex trends

Staff Exp (` cr) Other opex (` cr) Staff Exp (yoy gr.)-RHS

Exhibit 11: Cost ratios stable

CIR (%) 48.0 46.0 44.0 42.0 40.0 38.0 36.0 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13
Source: Company, Angel Research

Opex to average assets (%, RHS) 1.4 1.5 1.4 46.6 41.6 41.1 1.4 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 -

700

262

600 500 400 300 200 100 2QFY12 3QFY12

63.6

70.0

262

245

230

31.1

276

50.0 30.0 10.0

1.2 42.4 40.2

17.7

31.7

0.7

278

363

396

376

366

(10.0) (30.0)

4QFY12

1QFY13

2QFY13

Source: Company, Angel Research

October 26, 2012

Oriental Bank of Commerce | 2QFY2013 Result Update

Investment concerns
Modest CASA franchise and fee income
The banks relatively higher presence in metro and urban areas, compared to other public sector banks (PSBs), exposes it to increased competition, leading to lower CASA ratio. As a result, it is relatively more exposed to NIM pressures on account of its CASA ratio being one of the lowest amongst peers (24.1% as of 2QFY2013). The banks fee income, at 0.6% of average assets in FY2012, is also on the lower side.

Outlook and valuation

Structurally modest deposit franchise and RoE profile notwithstanding, in recent quarters OBC has been delivering strong recoveries, stable GNPA and NNPA ratios and stable NIMs, unlike peers, leading to relatively better earnings outlook. We have factored in a 26.5% EPS CAGR over FY2013-2014 (aided by lower provisioning expenses). However considering the sharp run up in the stock recently, we recommend a neutral rating on the stock. Exhibit 12: Key assumptions
Particulars (%)
Credit growth Deposit growth CASA ratio NIMs Other income growth Growth in staff expenses Growth in other expenses Slippages Coverage ratio Source: Angel Research

Earlier estimates FY2013 15.0 13.0 23.3 2.7 8.9 12.0 12.0 2.8 68.0 FY2014 15.0 13.0 22.7 2.8 4.3 9.0 9.0 2.5 70.0

Revised estimates FY2013 15.0 13.0 23.3 2.6 16.5 12.5 12.5 2.6 68.0 FY2014 15.0 13.0 22.7 2.7 (2.1) 9.0 9.0 2.4 70.0

Exhibit 13: Change in estimates

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

FY2013 Earlier Revised Earlier Var. (%) estimates estimates estimates

4,927 1,351 6,278 2,593 3,685 1,480 2,205 551 1,654 4,832 1,445 6,277 2,605 3,672 1,319 2,353 588 1,765 (1.9) 6.9 (0.0) 0.4 (0.4) (10.9) 6.7 6.7 6.7 5,716 1,409 7,125 2,827 4,298 1,594 2,704 877 1,827

FY2014 Revised estimates

5,676 1,414 7,090 2,839 4,251 1,537 2,714 814 1,900

Var. (%)
(0.7) 0.3 (0.5) 0.4 (1.1) (3.6) 0.3 (7.2) 4.0

October 26, 2012

Oriental Bank of Commerce | 2QFY2013 Result Update

Exhibit 14: P/ABV band

Price (`) 800 700 600 500 400 300 200 100 0 0.4x 0.7x 1x 1.3x 1.6x

Oct-06

Oct-07

Oct-08

Oct-09

Oct-10

Oct-11

Source: Company, Angel Research

Exhibit 15: 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 Neutral Buy Accumulate Buy Neutral Reduce Accumulate Accumulate Neutral Accumulate Neutral Accumulate Neutral Accumulate Neutral Neutral Neutral Neutral Accumulate Accumulate Neutral Neutral Accumulate Buy Neutral CMP (`) 1,231 488 637 1,078 22 413 135 108 761 287 53 424 71 405 106 96 178 75 1,149 309 749 2,173 119 76 206 65 55 Tgt. price (`) 1,439 1,245 25 483 97 860 330 449 447 108 842 2,353 226 78 Upside (%) 17 15 13 17 (10) 13 15 6 10 13 12 8 10 19 FY2014E P/ABV (x) 1.7 1.2 3.6 1.7 0.9 2.1 0.5 0.7 0.9 0.7 0.7 0.8 0.7 0.7 0.7 0.6 0.6 0.5 1.0 0.7 0.8 1.4 0.7 0.8 0.7 0.5 0.7 FY2014E Tgt P/ABV (x) 2.0 2.0 1.1 2.5 0.6 1.0 0.8 0.8 0.7 0.7 0.9 1.5 0.8 0.6 FY2014E P/E (x) 8.9 9.4 17.7 13.1 5.7 9.8 3.6 4.4 5.5 4.2 4.6 5.0 3.4 4.0 4.4 4.2 4.3 3.5 6.1 4.7 4.5 8.4 4.4 4.6 4.4 2.9 4.8 FY2012-14E EPS CAGR (%) 16.0 6.7 27.9 20.9 4.2 23.5 (0.4) 1.0 6.4 20.8 35.5 7.2 100.1 (2.2) 3.1 20.1 2.8 27.1 6.5 29.0 7.4 21.7 11.5 7.9 19.8 20.7 12.1 FY2014E RoA (%) 1.6 1.1 1.9 1.4 0.9 1.5 0.9 0.9 1.0 0.8 0.7 0.9 0.6 0.8 0.8 0.9 1.1 0.6 1.3 0.9 1.0 1.0 0.7 0.6 0.8 0.7 0.5 FY2014E RoE (%) 20.2 13.3 22.0 15.5 16.9 23.5 15.7 15.3 17.0 16.3 15.5 15.3 14.7 15.1 15.9 14.4 16.3 13.6 17.7 14.4 17.3 17.7 16.6 14.4 16.3 16.2 13.0

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

October 26, 2012

Oct-12

Apr-06

Apr-07

Apr-08

Apr-09

Apr-10

Apr-11

Apr-12

Oriental Bank of Commerce | 2QFY2013 Result Update

Company Background
Oriental Bank of Commerce is a mid-sized PSB with a balance sheet size of ~`1.8lakhcr. The bank's branches are mainly concentrated in the northern states (~60%), with majority being in the state of Punjab (~20%). The bank, unlike most other PSBs, has more than half of its branches located in the urban and metropolitan areas (~55%).

Income statement (standalone)

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 (%) Reported PAT - YoY Growth (%) FY08 FY09 FY10 FY11 FY12 FY13E FY14E

1,682 (0.6) 628 2.6 2,310 0.3 1,080 8.2 1,230 (5.7) (32) 1,262 19.9 421 33.3 841 1.7 353 (39.2)

1,997 18.7 1,071 70.7 3,068 32.8 1,383 28.1 1,685 37.0 526 1,159 (8.1) 254 21.9 905 7.6 905 156.3

2,907 45.6 1,200 12.0 4,107 33.9 1,686 21.9 2,421 43.7 818 55.6 1,604 38.3 469 29.3 1,134 25.3 1,134 25.3

4,178 43.7 960 (20.0) 5,138 25.1 1,892 12.2 3,245 34.0 1,208 47.8 2,037 27.0 534 26.2 1,503 32.5 1,503 32.5

4,216 0.9 1,240 29.2 5,456 6.2 2,315 22.4 3,141 (3.2) 1,720 42.4 1,420 (30.3) 279 19.6 1,142 (24.0) 1,142 (24.0)

4,927 16.9 1,351 8.9 6,278 15.1 2,593 12.0 3,685 17.3 1,480 (14.0) 2,205 55.2 551 25.0 1,654 44.9 1,654 44.9

5,716 16.0 1,409 4.3 7,125 13.5 2,827 9.0 4,298 16.6 1,594 7.7 2,704 22.7 877 32.4 1,827 10.5 1,827 10.5

(112.6) (1748.9)

October 26, 2012

Oriental Bank of Commerce | 2QFY2013 Result Update

Balance sheet (standalone)

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 (%)
FY08 FY09 FY10 FY11 FY12 FY13E FY14E

251 5,525 77,857 21.7 1,840 1,726 3,507 7,322 2,892 23,951 54,566 23.6 387 1,587 22.7

251 7,153 26.3 722 2,250 3,838 6,880 5,345 28,489 68,500 25.5 1,384 1,984 24.1

251 7,987 22.3 2,337 2,550 4,048 8,087 6,513 35,785 83,489 21.9 1,394 2,162 22.1

292 10,805 15.6 2,589 3,050 5,553 9,515 2,103 49,545 14.9 1,398 2,874 17.4

292 11,651 12.2 3,059 2,200 4,964 8,462 265 52,101 16.8 1,421 3,904 10.4

292 12,965 13.0 3,447 2,145 5,647 7,931 3,011 55,068 15.0 1,553 4,399 12.7

292 14,402 13.0 3,884 2,091 6,365 7,966 3,393 60,083 15.0 1,697 4,957 12.7

98,369 120,258 139,054 155,965 176,240 199,152

90,705 112,583 137,431 161,343 178,130 200,736 226,187

95,908 111,978 128,774 148,090

90,705 112,583 137,431 161,343 178,130 200,736 226,187

October 26, 2012

Oriental Bank of Commerce | 2QFY2013 Result Update

Ratio analysis (standalone)

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 FY08 FY09 FY10 FY11 FY12 FY13E FY14E

2.1 46.7 1.0 14.8 27.9 70.1 12.1 9.3 2.3 1.0 1.3 (0.2) 57.9 33.6 221.8 4.7 9.4 1.4 1.5 2.0 (0.0) 2.1 0.2 2.3 0.6 2.8 1.3 1.5 0.5 1.0 14.5 14.8

2.0 45.1 0.9 14.8 23.7 69.6 12.0 8.4 1.5 0.6 0.9 0.2 58.2 36.1 250.4 7.3 8.7 1.3 2.3 2.0 0.5 1.4 0.5 1.9 0.6 2.5 1.4 1.1 0.2 0.9 16.6 14.8

2.4 41.1 0.9 16.5 25.0 69.4 12.5 9.3 1.7 0.9 1.6 0.4 76.7 45.3 292.2 9.1 6.9 1.1 2.9 2.3 0.7 1.7 0.3 2.0 0.6 2.6 1.3 1.3 0.4 0.9 18.2 16.5

2.9 36.8 1.0 17.1 24.6 69.0 14.2 11.2 2.0 1.0 1.8 0.6 76.8 51.5 350.0 10.4 6.1 0.9 3.3 2.8 0.8 2.0 0.1 2.0 0.6 2.6 1.3 1.4 0.4 1.0 17.0 17.1

2.6 42.4 0.7 10.7 24.1 71.8 12.7 10.1 3.2 2.2 4.0 0.6 61.5 39.1 350.4 7.9 8.0 0.9 2.5 2.5 1.0 1.5 0.1 1.6 0.6 2.2 1.4 0.8 0.2 0.7 15.9 10.7

2.6 41.3 0.9 15.0 23.3 73.1 12.3 10.0 3.3 1.9 2.6 0.7 68.0 56.7 406.6 11.0 5.5 0.8 3.5 2.6 0.7 1.9 0.0 1.9 0.7 2.6 1.4 1.2 0.3 0.9 16.1 15.0

2.7 39.7 0.9 14.4 22.7 74.4 12.0 9.9 4.2 1.9 2.4 0.7 70.0 62.6 458.0 12.0 5.0 0.7 3.8 2.7 0.7 1.9 0.0 2.0 0.6 2.6 1.3 1.3 0.4 0.9 16.1 14.4

October 26, 2012

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Oriental Bank of Commerce | 2QFY2013 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

Oriental Bank of Commerce No No No No

3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

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%)

October 26, 2012

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