3QFY2013 Result Update | Banking

February 5, 2013

Corporation Bank
Performance Highlights

Particulars (` cr) NII Pre-prov. profit PAT 3QFY13

883 759 303

BUY
CMP Target Price
% chg (qoq)
10.0 10.7 (25.3)

`421 `517
12 Months

2QFY13
803 686 406

3QFY12
862 826 402

% chg (yoy)
2.5 (8.1) (24.6)

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

Source: Company, Angel Research

Banking 6,381 0.9 528/362 15,483 10 19,751 5,987 CPBK.BO CRPBK@IN

For 3QFY2013, Corporation Bank reported subdued operating performance, with operating income and operating profit de-growth of 2.5% and 8.1% yoy, respectively, which was in-line with our expectations. Higher slippages during the quarter, pushed up the loan loss provisioning by 83.2% yoy and hence earnings declined by 24.6% yoy.
Business growth moderates; NIM improves sequentially: During 3QFY2013, the banks business grew at a moderate pace, as both advances and deposits registered a growth of 13.1% and 10.9% yoy, respectively. While, saving deposits grew at a moderate pace of 10.5% yoy, growth in current deposits came in subdued at 1.8% yoy, which resulted in moderate CASA deposits growth of 7.3% yoy. The CASA ratio for the bank dipped by 67bp yoy and 45bp qoq to 20.5%. Although yield on advances moderated by 32bp qoq, the NIM improved by 12bp sequentially to 2.4%, aided by a 24bp qoq fall in costs of deposits and 5bp sequentially higher yield on investments. Despite a moderate growth of 13.5% yoy in CEB income, the overall non-interest income (excluding treasury) de-grew by 3.1% yoy, largely due to lower recoveries and decline in forex income. Recoveries from written-off accounts de-grew by 19.5% yoy, while forex income for the bank halved on a yoy basis. The treasury income for the bank came in at `67cr compared to `112cr reported in 3QFY2012. Hence, the overall other income witnessed a higher decline of 12.4% yoy to `387cr. The banks asset quality pressures continued during 3QFY2013, with both gross and net NPA levels increasing on an absolute basis by 17.2% and 25.6% qoq, respectively. Gross and Net NPA ratios were higher sequentially by 21bp and 26bp respectively to 2.2% and 1.6%. Slippages during the quarter came in at `701cr, much higher than `445cr in 2QFY2013 and `373cr in 3QFY2012. The annualized slippages ratio came in at 2.8% compared to 1.8% in 2QFY2013 and 1.7% in 3QFY2012. PCR dipped by 242bp sequentially to 58.0%. Additionally, the bank restructured advances worth ~`255cr, thereby taking its outstanding restructured book to `8,895cr. Outlook and valuation: The banks low CASA ratio (20.5% as of 3QFY2013) has contributed to higher margin pressures. At the current market price, the stock trades at 0.6x FY2014E ABV, below its historic trading range of 0.7-1.4x and median of 1.0x. We value the bank at 0.8x FY2014E ABV and recommend a Buy rating on the stock with a target price of `517. 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

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 58.5 30.6 3.9 7.0

Abs. (%) Sensex Corporation Bk

3m 5.3 7.7

1yr 12.2 0.2

3yr 21.7 (1.4)

FY2011 2,940 54.5 1,413 20.8 2.4 95.4 4.4 0.9 1.1 21.9

FY2012 3,147 7.0 1,576 11.5 2.1 06.4 4.0 0.8 1.0 20.4

FY2013E 3,459 9.9 1,433 (9.1) 2.1 96.7 4.4 0.7 0.8 16.2

FY2014E 4,167 20.5 1,480 3.3 2.2 99.9 4.2 0.6 0.8 14.9

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

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

Please refer to important disclosures at the end of this report

Corporation Bank | 3QFY2013 Result Update

Exhibit 1: 3QFY2013 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 (CEB 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

3QFY13 3,871 2,838 911 1 120 2,987 883 387 320 239 67 44 37 1,270 511 263 248 759 406 324 (1) 83 353 50 303 14.1

2QFY13 3,744 2,811 825 11 98 2,941 803 326 280 239 46 25 15 1,129 443 204 240 686 269 229 (24) 64 417 11 406 2.7

% chg (qoq) 3.4 1.0 10.4 (87.1) 23.1 1.6 10.0 18.7 14.3 (0.3) 45.4 75.1 144.3 12.5 15.3 29.3 3.4 10.7 51.1 41.3 30.5 (15.4) 342.9 (25.3) 1139bp

3QFY12 3,363 2,457 816 12 78 2,501 862 442 330 210 112 55 65 1,303 478 247 230 826 301 177 50 74 524 122 402 23.3

% chg (yoy) 15.1 15.5 11.6 (87.7) 55.3 19.4 2.5 (12.4) (3.1) 13.5 (39.8) (19.5) (43.0) (2.5) 7.1 6.5 7.8 (8.1) 34.7 83.2 12.1 (32.7) (59.3) (24.6) (922)bp

9MFY13 11,266 8,390 2,524 32 320 8,771 2,495 1,041 885 685 156 90 110 3,536 1,421 706 715 2,115 891 793 (90) 189 1,223 144 1,079 11.8

9MFY12 9,432 6,872 2,265 25 270 7,119 2,313 1,130 861 595 269 127 139 3,443 1,341 697 643 2,102 673 440 140 94 1,429 274 1,155 19.2

% chg (yoy) 19.4 22.1 11.4 26.9 18.7 23.2 7.9 (7.9) 2.7 15.0 (42.0) (29.1) (20.8) 2.7 6.0 1.3 11.1 0.6 32.4 80.3 101.4 (14.4) (47.5) (6.5) (742)bp

Exhibit 2: 3QFY2013 Actual vs 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 883 387 1,270 511 759 406 353 50 303

Estimates 857 374 1,231 494 737 260 477 95 382

Var. (%) 3.0 3.5 3.2 3.5 3.0 56.1 (26.0) (47.9) (20.5)

February 5, 2013

Corporation Bank | 3QFY2013 Result Update

Exhibit 3: 3QFY2013 performance analysis (standalone)

Particulars Balance sheet 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 Reported NIM Cost-to-income ratio Asset quality Gross NPAs (` cr) Gross NPAs (%) Net NPAs (` cr) Net NPAs (%) Provision Coverage Ratio (%) Slippage ratio (%) Loan loss prov. to avg. assets (%)
Source: Company, Angel Research

3QFY13 2QFY13 % chg (qoq) 3QFY12 % chg (yoy) 104,443 74.4 9,818 18,904 28,722 20.5 12.6 8.1 8.1 11.6 7.8 2.4 40.3 2,284 2.2 1,698 1.6 58.0 2.8 0.8 98,161 68.3 10,786 19,276 30,062 20.9 13.1 8.4 8.3 11.9 7.7 2.2 39.3 1,949 2.0 1,351 1.4 60.4 1.8 0.6 6.4 611bp (9.0) (1.9) (4.5) (45)bp (48)bp (32)bp (24)bp (32)bp 5bp 12bp 99bp 17.2 21bp 25.6 25bp (242)bp 102bp 21bp 92,378 73.0 9,641 17,115 26,756 21.1 12.8 7.9 7.6 11.9 7.8 2.7 36.6 1,249 1.4 885 1.0 62.9 1.7 0.5 13.1 10.9 143bp 1.8 10.5 7.3 (67)bp (27)bp 21bp 42bp (36)bp (1)bp (31)bp 362bp 82.9 83bp 91.8 67bp (486)bp 107bp 30bp

140,384 143,738

(2.3) 126,607

Business growth moderates; NIM improves sequentially

During 3QFY2013, the banks business grew at a moderate pace, with advances and deposits registering a growth of 13.1% and 10.9% yoy, respectively. While saving deposits grew at a moderate pace of 10.5% yoy, growth in current deposits came in subdued at 1.8% yoy, which resulted in a moderate CASA deposits growth of 7.3% yoy. The CASA ratio for the bank dipped by 67bp yoy and 45bp qoq to 20.5%. The bank has added around 280 branches in the last fifteen months and has healthy branch addition plans, which is expected to strengthen its liability franchise going ahead. During 3QFY2013, cost of deposits for the bank came off by 24bp qoq to 8.1%. While the yield on advances for the bank also moderated by 32bp qoq to 11.6%, partly due to higher slippages, yield on investments improved marginally by 5bp to 7.8%. The reported NIM for the bank improved sequentially by 12bp to 2.4%.

February 5, 2013

Corporation Bank | 3QFY2013 Result Update

Exhibit 4: Business growth moderates

Adv. yoy chg (%) 30.0 73.0 20.0 68.3 10.0 73.8 Dep. yoy chg (%) 73.5 CDR (%, RHS) 74.4 76.0 74.0 72.0 70.0 68.0

Exhibit 5: Cost of deposits sequentially lower by 24bp

(%) 8.40 8.20 8.00 7.80 7.60 7.40 7.20 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 7.64 8.03 8.10 8.30 8.06

28.4 28.5

15.7 16.6

24.9 13.9

20.2 19.2

13.1 10.9
3QFY13

66.0 64.0

3QFY12 4QFY12 1QFY13 2QFY13

Source: Company, Angel Research

Source: Company, Angel Research

Exhibit 6: Yield on advances came off by 32bp qoq

(%) 12.00 11.91 11.71 11.62

Exhibit 7: NIM improved by 12bp sequentially

(%) 3.00 2.70 2.66 2.41 2.29 2.23 2.35

11.87

11.75

2.40 11.55 2.10 1.80

11.50

11.25 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13

1.50 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13

Source: Company, Angel Research

Source: Company, Angel Research

Subdued performance on non-interest income (excl. treasury) front, on back of lower recoveries and decline in forex income
Despite a moderate growth of 13.5% yoy in CEB income, the overall non-interest income (excluding treasury) de-grew by 3.1% yoy, largely due to lower recoveries and decline in forex income. Recoveries from written-off accounts de-grew by 19.5% yoy to `44cr. Income from forex transactions for the bank halved on a yoy basis to `28cr. The treasury income for the bank came in at `67cr compared to `112cr reported in 3QFY2012. Hence, overall other income witnessed a higher decline of 12.4% yoy to `387cr.

Asset quality pressures continue

The banks asset quality pressures continued during 3QFY2013, with both gross and net NPA levels increasing on an absolute basis by 17.2% and 25.6% qoq, respectively. Gross and Net NPA ratios were higher sequentially by 21bp and 26bp respectively to 2.2% and 1.6%. Slippages during the quarter came in at `701cr, much higher than `445cr in 2QFY2013 and `373cr in 3QFY2012. Annualized slippages ratio came in at 2.8% compared to 1.8% in 2QFY2013 and 1.7% in 3QFY2012. PCR dipped by 242bp sequentially to 58.0%. Additionally, the bank restructured advances worth ~`255cr, thereby taking its outstanding restructured book to `8,895cr.
February 5, 2013

Corporation Bank | 3QFY2013 Result Update

Exhibit 8: Slippages remain at elevated levels...

Slippages (%) 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.5 0.6 0.6 0.8 Credit cost (%, RHS) 1.0 0.8 0.6 0.4

Exhibit 9: ...leading to higher NPA ratios sequentially

2.5 2.0 1.5 1.0 Gross NPAs (%) 65.3 62.9 61.0 60.4 58.0 Net NPAs (%) PCR (%, RHS) 66.0 64.0 62.0 60.0 58.0

1.4 1.0

1.3 0.9

1.7 1.2

2.0 1.4

1.7

0.8

2.9

1.8

2.8

3QFY12 4QFY12 1QFY13 2QFY13 3QFY13

Source: Company, Angel Research

3QFY12 4QFY12 1QFY13 2QFY13 3QFY13

Source: Company, Angel Research

2.2 1.6

0.5

0.2

0.5

56.0 54.0

Exhibit 10: Opex declined by 4.9% qoq...

Staff exps (` cr) 600 450 230 300 150 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 247 227 227 248 240 478 443 Other opex (` cr) 466 511 443

Exhibit 11: ...hence cost-to-income ratio declined by 176bp

Cost-to-income ratio (%) 45.0 40.0 35.0 30.0
36.6 35.2 41.0

Opex to average assets (%, RHS) 1.4 1.3 1.3 1.2 1.2 1.1 1.1 1.0 1.0

1.3 1.2 1.1 1.2 1.1

39.3 40.3

216

239

204

263

25.0 20.0

3QFY12 4QFY12 1QFY13 2QFY13 3QFY13

Source: Company, Angel Research

Source: Company, Angel Research

February 5, 2013

Corporation Bank | 3QFY2013 Result Update

Investment arguments
Modern and cost-efficient network to support moderate CASA growth
During FY2007-12, the CASA deposits of the bank grew at a 15.9% CAGR, which was quite robust relative to its peers. We believe the banks efficient network (1,653 branches currently) supported by a consistent track record in early adoption of emerging technologies creates a positive traction in its deposit franchise, which is tempered mainly by substantial competition from larger banks.

Low operating cost, owing to corporate-centric business

Large corporates comprise ~47.7% of the banks credit book as of 3QFY2013 (45.7% as of FY2012), leading to relatively low operating costs for the bank. Consequently, the bank is among the most cost-efficient PSU banks, both in terms of opex/average assets (1.2x as of 3QFY2013) as well as branch and employee productivity.

Outlook and valuation

The banks low CASA ratio (20.5% as of 3QFY2013) has contributed to higher margin pressures. At the current market price, the stock trades at 0.6x FY2014E ABV, below its historic trading range of 0.7-1.4x and median of 1.0x. We value the bank at 0.8x FY2014E ABV and recommend a Buy rating on the stock with a target price of `517.

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 FY2013E FY2014E 13.0 14.0 21.1 2.0 (9.7) 5.0 12.5 2.0 62.0 14.0 13.0 20.4 2.2 4.0 15.0 15.0 1.7 67.5

Revised estimates FY2013 EFY2014E 13.0 12.0 21.5 2.1 (6.6) 7.0 12.5 2.5 60.0 15.0 12.0 21.0 2.2 0.5 15.0 12.5 1.8 70.0

February 5, 2013

Corporation Bank | 3QFY2013 Result Update

Exhibit 13: Change in estimates

FY2013E Particulars (` cr) NII Non-interest income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT
Source: Angel Research

Earlier estimates 3,424 1,411 4,835 1,938 2,897 1,001 1,897 341 1,555

Revised estimates 3,459 1,460 4,919 1,956 2,963 1,325 1,638 205 1,433

Var. (%) 1.0 3.5 1.7 0.9 2.3 32.4 (13.6) (40.0) (7.9)

Earlier estimates 4,102 1,468 5,570 2,229 3,341 1,152 2,189 710 1,479

FY2014E Revised estimates 4,167 1,467 5,634 2,225 3,409 1,353 2,056 576 1,480

Var. (%) 1.6 (0.0) 1.2 (0.2) 2.0 17.5 (6.1) (19.0) 0.1

Exhibit 14: P/ABV band

Price (`) 1,400 1,200 1,000 800 600 400 200 0
Sep-02 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Sep-12 Mar-13

0.5x

0.8x

1.1x

1.4x

1.7x

Source: Company, Angel Research

February 5, 2013

Corporation Bank | 3QFY2013 Result Update

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 Accumulate Neutral Buy Buy Accumulate Buy Neutral Buy Accumulate Neutral Accumulate Neutral Buy Buy Buy Buy Accumulate Neutral Accumulate Buy Accumulate Buy Neutral Buy Buy Accumulate CMP (`) 1,460 508 643 1,168 27 514 157 105 784 342 57 453 79 421 106 102 190 78 1,389 313 880 2,365 132 68 241 71 57 Tgt. price (`) 1,753 557 1,404 34 576 188 935 380 516 517 124 122 238 88 336 1,053 2,600 157 286 86 62 Upside (%) 20.0 9.5 20.2 24.6 12.1 19.6 19.4 11.3 13.9 22.7 16.2 19.6 25.3 13.5 7.3 19.7 9.9 18.8 18.6 21.9 10.0 FY2014E P/ABV (x) 1.96 1.23 3.62 1.87 1.12 2.59 0.69 0.73 0.92 0.85 0.69 0.83 0.72 0.65 0.65 0.63 0.68 0.53 1.18 0.70 0.92 1.53 0.74 0.77 0.80 0.51 0.66 FY2014E Tgt. P/ABV (x) 2.4 1.4 2.2 1.4 2.9 0.8 1.1 1.0 1.0 0.8 0.8 0.8 0.9 0.6 0.8 1.1 1.7 0.9 1.0 0.6 0.7 FY2014E P/E (x) 10.5 9.9 17.8 13.8 6.7 12.1 4.7 4.8 5.8 5.2 4.4 5.6 3.9 4.2 4.3 4.6 4.4 3.8 6.9 5.3 5.2 9.2 4.8 4.5 5.1 3.2 5.2 FY12-14E CAGR in EPS (%) 16.4 6.4 28.1 22.8 6.9 24.1 (5.2) (4.6) 5.0 18.2 44.3 4.1 95.5 (3.1) 3.5 18.4 4.4 23.9 10.4 23.2 8.0 21.5 12.4 2.6 20.7 20.0 9.7 FY2014E RoA (%) 1.6 1.2 1.8 1.5 1.0 1.5 0.8 0.8 1.0 0.8 0.6 0.8 0.5 0.8 0.8 0.9 1.1 0.6 1.4 0.8 1.0 1.0 0.7 0.5 0.8 0.7 0.5 FY2014E RoE (%) 20.1 13.1 22.1 15.9 17.7 23.6 14.7 13.8 16.7 16.0 16.9 14.7 14.3 14.9 15.9 14.1 16.8 13.4 18.3 13.5 17.5 17.7 16.4 13.5 16.6 16.3 12.6

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

Company background
Corporation Bank is a mid-sized PSU bank, with a balance sheet size of ~`1.6lakh cr. The bank has a network of 1,650+ branches, mainly concentrated in the southern states (~50%), with majority being in the parent state of Karnataka (~26%). The banks recent branch additions have been largely in rural and semi-urban areas, which have aided a shift in its branch mix. Resultantly, rural and semi-urban branches now account for ~52% of the total branches as against ~44% earlier.

February 5, 2013

Corporation Bank | 3QFY2013 Result Update

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 (%) FY09 1,691 17.2 1,107 58.2 2,798 30.6 1,047 17.3 1,752 40.0 365 96.8 1,386 30.1 493 35.6 893 21.5 FY10 1,903 12.6 1,493 34.9 3,397 21.4 1,260 20.4 2,137 22.0 474 29.8 1,662 19.9 492 29.6 1,170 31.1 FY11 2,940 54.5 1,324 (11.3) 4,264 25.5 1,642 30.3 2,622 22.7 689 45.2 1,934 16.3 520 26.9 1,413 20.8 FY12 3,147 7.0 1,562 18.0 4,709 10.4 1,784 8.6 2,926 11.6 951 38.1 1,974 2.1 399 20.2 1,576 11.5 FY13E 3,459 9.9 1,460 (6.6) 4,919 4.5 1,956 9.7 2,963 1.3 1,325 39.3 1,638 (17.1) 205 12.5 1,433 (9.1) FY14E 4,167 20.5 1,467 0.5 5,634 14.5 2,225 13.7 3,409 15.1 1,353 2.1 2,056 25.5 576 28.0 1,480 3.3

Balance sheet (standalone)

Y/E March (` cr) Share Capital Reserve & 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 143 4,753 73,984 33.5 2,072 2,738 3,215 86,906 5,591 4,949 24,938 48,512 23.8 299 2,617 86,906 30.8 FY10 143 5,631 92,734 25.3 4,290 4,788 4,081 111,667 8,835 1,957 34,523 63,203 30.3 293 2,857 111,667 28.5 FY11 148 6,990 116,748 25.9 10,628 5,338 3,658 143,509 8,142 2,250 43,453 86,850 37.4 329 2,484 143,509 28.5 FY12 148 8,128 136,142 16.6 9,648 4,600 4,894 163,560 9,288 2,410 47,475 100,469 15.7 356 3,563 163,560 14.0 FY13E 148 9,216 152,479 12.0 9,044 4,485 5,504 180,877 6,862 2,713 53,773 113,530 13.0 382 3,618 180,877 10.6 FY14E 148 10,344 170,777 12.0 10,093 4,373 6,129 201,864 6,831 3,028 56,995 130,559 15.0 413 4,037 201,864 11.6

February 5, 2013

Corporation Bank | 3QFY2013 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 (75% cover.) 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 RoE 2.2 0.5 1.7 0.6 2.3 0.9 3.2 1.4 1.8 0.6 1.2 16.8 19.6 1.9 0.5 1.4 0.6 2.1 0.9 2.9 1.3 1.7 0.5 1.2 18.6 21.9 2.3 0.5 1.8 0.2 1.9 0.9 2.8 1.3 1.5 0.4 1.1 19.8 21.9 2.0 0.6 1.4 0.2 1.7 0.8 2.4 1.2 1.3 0.3 1.0 19.9 20.4 2.0 0.8 1.2 0.1 1.4 0.7 2.1 1.1 1.0 0.1 0.8 19.5 16.2 2.2 0.7 1.5 0.1 1.5 0.7 2.2 1.2 1.1 0.3 0.8 19.3 14.9 6.8 1.2 3.0 5.2 1.0 3.9 4.4 0.9 4.7 4.0 0.8 4.9 4.4 0.7 4.7 4.2 0.6 4.9 62.2 341.4 12.5 81.6 402.6 16.5 95.4 481.5 20.0 106.4 542.3 20.5 96.7 585.1 20.0 99.9 689.2 20.5 1.1 0.3 0.6 0.2 75.3 1.0 0.3 1.0 0.3 80.8 0.9 0.5 1.3 0.4 74.7 1.3 0.9 1.4 0.4 65.3 2.5 1.6 2.5 0.7 60.0 3.0 1.3 1.8 0.6 70.0 31.4 65.6 13.6 8.9 28.6 68.2 15.4 9.3 26.0 74.4 14.1 8.7 22.1 73.8 13.0 8.3 21.5 74.5 12.6 8.5 21.0 76.5 12.2 8.4 2.3 37.4 1.2 19.6 2.0 37.1 1.2 21.9 2.4 38.5 1.1 21.9 2.1 37.9 1.0 20.4 2.1 39.8 0.8 16.2 2.2 39.5 0.8 14.9 FY09 FY10 FY11 FY12 FY13E FY14E

February 5, 2013

10

Corporation Bank | 3QFY2013 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

Corporation 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%)

February 5, 2013

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