CRISIL IERIndependentEquityResearch

Enhancing investment decisions

Shriram City Union
Finance Ltd
Q2FY14 Results Update



CRISIL IERIndependentEquityResearch
Explanation of CRISIL Fundamental and Valuation (CFV) matrix

The CFV Matrix (CRISIL Fundamental and Valuation Matrix) addresses the two important analysis of an investment making process Analysis
of Fundamentals (addressed through Fundamental Grade) and Analysis of Returns (Valuation Grade) The fundamental grade is assigned on a
five-point scale from grade 5 (indicating Excellent fundamentals) to grade 1 (Poor fundamentals) The valuation grade is assigned on a five-
point scale from grade 5 (indicating strong upside from the current market price (CMP)) to grade 1 (strong downside from the CMP).

CRISIL
Fundamental Grade Assessment
CRISIL
Valuation Grade Assessment
5/5 Excellent fundamentals 5/5 Strong upside (>25% from CMP)
4/5 Superior fundamentals 4/5 Upside (10-25% from CMP)
3/5 Good fundamentals 3/5 Align (+-10% from CMP)
2/5 Moderate fundamentals 2/5 Downside (negative 10-25% from CMP)
1/5 Poor fundamentals 1/5 Strong downside (<-25% from CMP)


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Last updated: May, 2013

Analyst Disclosure
Each member of the team involved in the preparation of the grading report, hereby affirms that there exists no conflict of interest that can bias
the grading recommendation of the company.

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purpose.




Shriram City Union Finance Ltd
AUM growth muted; gold loan segment drove disbursements

Fundamental Grade 4/5 (Superior fundamentals)
Valuation Grade 3/5 (CMP is aligned)
Industry Consumer Finance
1
November 6, 2013

Fair Value 1,059
CMP 1,097
For detailed initiating coverage report please visit: www.ier.co.in
CRISIL Independent Equity Research reports are also available on Bloomberg (CRI <go>) and Thomson Reuters.

Shriram City Union Finance Ltds (Shriram Citys) Q2FY14 results were in line with CRISIL
Researchs expectations. Disbursements grew 9% q-o-q helped by 82.8% q-o-q increase in
gold loan disbursements as traders borrowed to increase supplies ahead of the festive
season. The overall disbursement growth was arrested by political disruptions in Andhra
Pradesh which impacted non-gold business segments. Andhra Pradesh constitutes 45-48%
of its total disbursements. Assets under management (AUM) declined by 1.8% q-o-q (down
5% y-o-y) to 151 bn. Following lower-than-expected AUM growth in H1FY14, we lower our
FY14 AUM growth estimates to 14.6% from 21.1%. We expect H2FY14 AUM growth to be
better than H1FY14 as we expect (i) the momentum in gold loans to continue in H2FY14 due
to higher gold prices and loan requirement from traders and (ii) non-gold business growth to
revive, as the management believes that business in AP will stabilise soon. We maintain our
fundamental grade of 4/5.
Non-gold disbursements muted q-o-q while gold loan disbursements revived
Total disbursements grew by 9.0% q-o-q to 35.6 bn with gold loan disbursements increasing
82.9% q-o-q to 11 bn. Disbursements excluding gold loans declined by 8% q-o-q to 24 bn
owing to the political turmoil (Telangana issue) in Andhra Pradesh which hampered normal
business activities. SME (major AUM contributor) disbursements declined 9% to 13 bn.
Spreads rose marginally by 31 bps q-o-q to 8.7% because yields grew 37 bps q-o-q to 20.6%
owing to higher contribution from high-yielding SME loans (up by 300 bps q-o-q to 49%).
Asset quality deteriorated marginally following a weak macro environment
Gross NPAs grew marginally by 17 bps to 2.46% in Q2FY14 following a weak macro-
economic environment. Hence, overall gross NPAs (150 days past due) grew 7% q-o-q to
3.8 bn. Credit costs declined by 9% q-o-q (down 20 bps to 2.4% of AUM), which led to PAT
increasing 8% q-o-q to 1,272 mn. Net NPAs were flat at 0.7% of AUM. The company
declared an interim dividend of 4 per share in Q2FY14.
Tier I capital improved on warrant conversion
In July 2013, the pending 3.05 warrants, out of 5.9 mn warrants issued in FY12, got
converted into shares (one share per warrant) at an exercise price of 570. Hence, tier I
capital increased by 278 bps q-o-q to 18.3%, taking the total capital adequacy ratio to 23.3%.
We had already factored in the warrant conversion in our model.
Earnings estimates largely maintained, fair value retained at 1,059
Following lower-than-expected AUM growth in H1FY14, we lower our FY14 AUM growth
estimates to 14.6% from 21.1%. On account of lower-than-expected provisions in H1FY14,
we lower provision estimates by 7% in FY14. Accordingly, we largely retain our FY14 PAT
estimates. We continue to value Shriram City using the P/B method. Our fair value is
maintained at 1,059 (1.9x FY15 adjusted book value and valuing housing subsidiary at book
value). At the current market price of 1,097 per share, our valuation grade is 3/5.

KEY FORECAST

( mn) FY11 FY12 FY13 FY14E FY15E
Total operating income 8,082 11,238 16,441 18,536 23,811
Pre-provision profit 4,841 7,138 10,495 11,546 14,878
Adjusted net profit 2,406 3,425 4,496 4,995 6,425
EPS 49 67 81 85 110
P/E (x) 12.8 13.0 13.5 12.8 10.0
P/ABV (x) 2.6 2.7 2.9 2.3 1.9
RoE (%) 21.8 24.0 22.7 19.7 20.5
RoA (%) 3.0 3.0 3.1 2.9 3.1
Net NPA (%) 0.4 0.4 0.4 0.3 0.2
Capital adequacy ratio (%) 20.8 17.0 18.6 21.3 19.6
NM: Not meaningful; CMP: Current market price
Source: Company, CRISIL Research estimates

CFV MATRIX


KEY STOCK STATISTICS
NIFTY/SENSEX 6221/20929
NSE/BSE ticker
SHRIRAMCIT/
SHRMCITY
Face Value ( per share) 10
Shares outstanding (mn) 59.3
Market cap ( mn)/(US$ mn) 59,537/968
52-week range () (H/L) 1,230/755
Beta 0.2
Free float (%) 62.4%
Avg daily volumes (30-days) 20,107
Avg daily value (30-days) ( mn) 20.6

SHAREHOLDING PATTERN

PERFORMANCE VIS--VIS MARKET

Returns
1-m 3-m 6-m 12-m
Shriram City -9% 2% -6% 21%
CNX 500 5% 4% 1% 4%

ANALYTICAL CONTACT
Mohit Modi (Director) mohit.modi@crisil.com
Elizabeth John elizabeth.john@crisil.com
Vishal Rampuria vishal.rampuria@crisil.com
Client servicing desk
+91 22 3342 3561 clientservicing@crisil.com
1 2 3 4 5
1
2
3
4
5
Valuation Grade
F
u
n
d
a
m
e
n
t
a
l

G
r
a
d
e
Poor
Fundamentals
Excellent
Fundamentals
S
t
r
o
n
g
D
o
w
n
s
i
d
e
S
t
r
o
n
g
U
p
s
i
d
e
55.0%
57.3% 57.3%
37.6%
25.1%
25.2% 26.2%
25.9%
5.8%
4.3% 4.0%
3.0%
14.1% 13.1% 12.6%
33.5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Dec-12 Mar-13 Jun-13 Sep-13
Promoter FII DII Others



CRISIL IERIndependentEquityResearch
2
Q2FY14 Results Summary (Standalone)
( mn) Q2FY14 Q1FY14 Q2FY13 q-o-q (%) y-o-y (%) H1FY14 H1FY13 y-o-y (%)
Interest Income 7,846 7,884 7,594 (0.5) 3.3 15,730 14,320 9.8
Interest Expense 3,428 3,560 3,552 (3.7) (3.5) 6,987 6,569 6.4
Net Interest Income 4,419 4,324 4,042 2.2 9.3 8,743 7,751 12.8
Non Interest Income 140 174 1 (19.5) NM 314 13 NM
Total Operating Income 4,559 4,498 4,043 1.4 12.8 9,056 7,764 16.6
Operating Expenses 1,686 1,660 1,459 1.6 15.6 3,347 2,726 22.8
Staff Costs 631 649 476 (2.8) 32.6 1,280 824 55.3
Other Operating Expenses 1,055 1,012 983 4.3 7.4 2,067 1,901 8.7
Cost to income 38.6% 38.4% 37.6% 16 bps 96 bps 38.5% 36.5% 205 bps
Pre- provision profit (PPP) 2,873 2,837 2,584 1.2 11.2 5,710 5,038 13.3
Provisions and write offs 919 1,010 924 (9.0) (0.6) 1,929 1,805 6.8
Profit before depreciation and tax 1,954 1,827 1,660 6.9 17.7 3,781 3,233 17.0
Depreciation On Fixed Assets 73 68 63 7.4 16.5 141 105 34.5
PBT 1,881 1,760 1,597 6.9 17.7 3,640 3,128 16.4
Provision for tax 609 585 518 4.0 17.5 1,194 1,015 17.7
Adjusted Net Profit 1,272 1,174 1,079 8.3 17.9 2,446 2,113 15.7
No of equity shares (mn) 59.3 55.4 52.4 7.0 13.2 59 52.4 13.2
Adj EPS () 21.8 21.2 20.6 2.9 5.8 43.0 40.4 6.5
Source: Company, CRISIL Research

Total operating income up 1.4% q-o-q and 13% y-o-y PAT increased 8% q-o-q and 18% y-o-y
Source: Company, CRISIL Research Source: Company, CRISIL Research

2
,
6
0
2
2
,
7
2
8
3
,
4
4
7
3
,
7
2
1
4
,
0
4
3
4
,
2
5
0
4
,
7
1
2
4
,
4
9
8
4
,
5
5
9
58%
43%
59%
60%
55% 56%
37%
21%
13%
0%
10%
20%
30%
40%
50%
60%
70%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
Q
2
F
Y
1
2
Q
3
F
Y
1
2
Q
4
F
Y
1
2
Q
1
F
Y
1
3
Q
2
F
Y
1
3
Q
3
F
Y
1
3
Q
4
F
Y
1
3
Q
1
F
Y
1
4
Q
2
F
Y
1
4
( mn)
Total operating income y-o-y growth (RHS)
8
1
1
8
3
5
9
7
6
1
,
0
3
4
1
,
0
7
9
1
,
1
2
6
1
,
2
5
7
1
,
1
7
4
1
,
2
7
2
46%
42%
26%
29%
33%
35%
29%
14%
18%
-10%
0%
10%
20%
30%
40%
50%
0
200
400
600
800
1,000
1,200
1,400
Q
2
F
Y
1
2
Q
3
F
Y
1
2
Q
4
F
Y
1
2
Q
1
F
Y
1
3
Q
2
F
Y
1
3
Q
3
F
Y
1
3
Q
4
F
Y
1
3
Q
1
F
Y
1
4
Q
2
F
Y
1
4
( mn)
PAT y-o-y growth (RHS)



Shriram City Union Finance Ltd
3
Disbursements increased by 9% q-o-q...
... largely due to 82.8% q-o-q increase in gold loan
disbursements
Source: Company, CRISIL Research Source: Company, CRISIL Research

AUM declined by 1.8% q-o-q Small business loans a major contributor to AUM
Source: Company, CRISIL Research Source: Company, CRISIL Research

Proportion of off-book to total AUM up 158 bps q-o-q Spreads increased by 31 bps q-o-q
Source: Company, CRISIL Research Source: Company, CRISIL Research

40.3 45.9 44.8 45.1 43.5 40.7 32.7 35.6
40.7%
13.9%
-2.3%
0.7%
-3.7%
-6.3%
-19.8%
9.0%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
-
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
Q
3
F
Y
1
2
Q
4
F
Y
1
2
Q
1
F
Y
1
3
Q
2
F
Y
1
3
Q
3
F
Y
1
3
Q
4
F
Y
1
3
Q
1
F
Y
1
4
Q
2
F
Y
1
4
( bn)
Disbursements q-o-q growth (RHS)
22.5 26.0 25.6 24.8 24.1 15.3 6.1 11.1
57%
16%
-2% -3% -3%
-37%
-60%
83%
-100%
-75%
-50%
-25%
0%
25%
50%
75%
100%
-
5.0
10.0
15.0
20.0
25.0
30.0
Q
3
F
Y
1
2
Q
4
F
Y
1
2
Q
1
F
Y
1
3
Q
2
F
Y
1
3
Q
3
F
Y
1
3
Q
4
F
Y
1
3
Q
1
F
Y
1
4
Q
2
F
Y
1
4
( bn)
Gold loan disbursements q-o-q growth (RHS)
100 116 134 149 159 164 158 154 151
13%
16%
16%
11%
7%
3%
-3%
-3%
-2%
-10%
-5%
0%
5%
10%
15%
20%
0
20
40
60
80
100
120
140
160
180
Q
2
F
Y
1
2
Q
3
F
Y
1
2
Q
4
F
Y
1
2
Q
1
F
Y
1
3
Q
2
F
Y
1
3
Q
3
F
Y
1
3
Q
4
F
Y
1
3
Q
1
F
Y
1
4
Q
2
F
Y
1
4
( bn)
AUM q-o-q growth (RHS)
39.9%
36.9%
30.0%
24.0% 22.0%
11.9%
11.6%
12.1%
11.0%
10.0%
32.5%
35.8%
40.0%
46.0%
49.0%
11.0% 11.3%
13.2% 14.0% 15.0%
4.2% 3.8% 4.0% 4.0% 4.0%
0.6% 0.6% 0.7% 1.0% 0.0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q2FY14
Gold loans Auto loans
Small business loans Two-wheelers
Personal loans Consumer durable loans
17%
20%
14%
11% 12%
15%
12% 14%
83%
80%
86%
89% 88%
85%
88% 86%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q
3
F
Y
1
2
Q
4
F
Y
1
2
Q
1
F
Y
1
3
Q
2
F
Y
1
3
Q
3
F
Y
1
3
Q
4
F
Y
1
3
Q
1
F
Y
1
4
Q
2
F
Y
1
4
Off book AUM On book AUM
19.0%
19.7%
20.1%
20.5%
20.2%
20.6%
10.4%
12.1% 12.0%
11.3%
11.8% 11.9%
8.6%
7.6%
8.1%
9.2%
8.4%
8.7%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q2FY14
Yield on AUM Cost of borrowings Spread



CRISIL IERIndependentEquityResearch
4
Cost to income ratio remains flat q-o-q Gross NPAs rose by 17 bps sequentially
Source: Company, CRISIL Research Source: Company, CRISIL Research

Tier I capital rose by 278 bps q-o-q on warrant conversion Trend in return ratios
Source: Company, CRISIL Research Source: Company, CRISIL Research

Share price movement Fair value movement since initiation

-Indexed to 100

Source: NSE, CRISIL Research Source: NSE, BSE, CRISIL Research

35.2%
38.3%
35.9%
35.2%
37.6%
39.6%
36.4%
38.4%
38.6%
20%
25%
30%
35%
40%
45%
Q
2
F
Y
1
2
Q
3
F
Y
1
2
Q
4
F
Y
1
2
Q
1
F
Y
1
3
Q
2
F
Y
1
3
Q
3
F
Y
1
3
Q
4
F
Y
1
3
Q
1
F
Y
1
4
Q
2
F
Y
1
4
1.72%
1.64%
1.55%
1.46%
1.37%
1.57%
2.19%
2.29%
2.46%
0.41%
0.37% 0.38%
0.34% 0.32%
0.47%
0.80%
0.67% 0.65%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
Q
2
F
Y
1
2
Q
3
F
Y
1
2
Q
4
F
Y
1
2
Q
1
F
Y
1
3
Q
2
F
Y
1
3
Q
3
F
Y
1
3
Q
4
F
Y
1
3
Q
1
F
Y
1
4
Q
2
F
Y
1
4
Gross NPA Net NPA
13.7% 13.5%
12.6% 12.2% 12.5%
14.9%
15.6%
18.3%
2.8%
3.5%
3.2%
3.3%
3.7%
3.7%
4.3%
4.9%
16.4%
16.9%
15.9%
15.5%
16.2%
18.6%
19.9%
23.3%
0%
4%
8%
12%
16%
20%
24%
28%
0%
4%
8%
12%
16%
20%
24%
28%
Q
3
F
Y
1
2
Q
4
F
Y
1
2
Q
1
F
Y
1
3
Q
2
F
Y
1
3
Q
3
F
Y
1
3
Q
4
F
Y
1
3
Q
1
F
Y
1
4
Q
2
F
Y
1
4
Tier I ratio Tier II ratio Capital adequacy ratio (RHS)
3.4% 3.2% 3.3% 3.1% 2.9% 2.8%
3.1% 3.0%
3.3%
24.4%
23.9%
24.6%
23.1%
23.0%
22.7%
23.4%
20.4% 20.2%
0%
5%
10%
15%
20%
25%
30%
Q
2
F
Y
1
2
Q
3
F
Y
1
2
Q
4
F
Y
1
2
Q
1
F
Y
1
3
Q
2
F
Y
1
3
Q
3
F
Y
1
3
Q
4
F
Y
1
3
Q
1
F
Y
1
4
Q
2
F
Y
1
4
ROA ROE
0
50
100
150
200
250
300
350
J
a
n
-
0
8
M
a
y
-
0
8
S
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-
0
8
J
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M
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S
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J
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-
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M
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-
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-
1
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-
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-
1
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M
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O
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-
1
2
F
e
b
-
1
3
J
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-
1
3
O
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-
1
3
Shriram City CNX 500
0
500
1,000
1,500
2,000
2,500
0
200
400
600
800
1,000
1,200
1,400
J
u
l
-
1
1
A
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-
1
1
O
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-
1
1
D
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-
1
1
J
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-
1
2
M
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-
1
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-
1
2
J
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-
1
2
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('000) ()
Total Traded Quantity (RHS) CRISIL Fair Value
Shriram City



Shriram City Union Finance Ltd
5
Segment-wise NPAs
Product segment
Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13
Gross
NPA %
Net
NPA %
Gross
NPA %
Net
NPA %
Gross
NPA %
Net
NPA %
Gross
NPA %
Net
NPA %
Gross
NPA %
Net
NPA %
Gross
NPA %
Net
NPA %
Consumer durables 3.1% 0.6% 3.7% 0.0% 4.2% 0.0% 4.2% 0.0% 3.4% 0.0% 3.6% 0.0%
Two wheelers 3.2% 1.3% 3.5% 1.2% 3.6% 1.2% 3.7% 1.2% 3.8% 1.2% 3.8% 0.8%
Auto loans 3.2% 0.7% 3.8% 0.7% 3.6% 0.6% 3.5% 0.6% 3.3% 0.5% 3.7% 0.4%
Personal loans 4.1% 0.0% 4.2% 0.0% 4.4% 0.0% 4.5% 0.0% 4.8% 0.0% 4.8% 0.0%
Small enterprises finance 0.6% 0.3% 0.8% 0.4% 0.9% 0.4% 0.9% 0.3% 1.5% 0.5% 1.4% 0.3%
Total excluding gold loans 2.6% 0.6% 2.6% 0.6% 2.5% 0.6% 2.4% 0.6% 2.7% 0.6% 2.6% 0.4%
Gold loans 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.4% 0.3% 1.3% 1.1% 1.6% 1.4%
Total - including gold loans 1.5% 0.4% 1.5% 0.3% 1.4% 0.3% 1.6% 0.5% 2.2% 0.8% 2.3% 0.7%
Source: Company


Key takeaways from Q2FY14 conference call
AUM outlook
Excluding gold loans, AUM growth is expected to be 20% in FY14.
Overall AUM growth including gold loans can be around 20%.

Asset quality
The entire book remains under 150 days past due (dpd) NPA recognition norms.
Write-off during Q2FY14 was 761 mn compared to 825 mn in Q1FY14

Borrowings
Almost 49% of the liability is at a fixed rate of interest. The weighted average tenure of
liability is over 26 months.
In Q2FY14, the company securitised 6 bn at a weighted average rate of 8.38%.





CRISIL IERIndependentEquityResearch
6
Earnings Estimates Largely Maintained
FY14E FY15E
Particulars Unit Old New % change Old New % change
AUM ( bn) 192 181 -5.5 256 242 -5.3
Net Interest Income ( mn) 18,821 18,318 -2.7 24,872 23,561 -5.3
Non Interest income ( mn) 217 217 NM 250 250 NM
Total Operating Income ( mn) 19,039 18,536 -2.6 24,872 23,811 -4.3
Operating Expenses ( mn) 7,177 6,989 -2.6 9,366 8,933 -4.6
Pre-provision profit ( mn) 11,862 11,546 -2.7 15,505 14,878 -4.0
Provisions ( mn) 4,185 3,885 -7.2 5,499 4,969 -9.6
PAT ( mn) 5,005 4,995 -0.2 6,491 6,425 -1.0
EPS 86 85 -0.7 111 110 -1.1
Adjusted book value 474 475 0.1 581 580 -0.2
Source: CRISIL Research estimates

Reasons for changes in estimates
Line item FY14 FY15
AUM Following lower-than-expected AUM growth in H1FY14, we lower our FY14 AUM growth
estimates to 14.6% from 21.1%. We expect H2FY14 AUM growth to be better than
H1FY14 as we expect (i) the momentum in gold loans to continue in H2FY14 due to higher
gold prices and loan requirement from traders and (ii) non-gold business growth to revive,
as the management believes that business in AP will stabilise soon.
AUM growth estimated at
33% in FY15
Net interest income Lowered on account of lower AUM growth estimates.
Provision and
contingencies
On account of lower-than-expected provisions in H1FY14, we reduce our FY14 provision estimates by 7%.
Net profit Largely maintained




Shriram City Union Finance Ltd
7
Valuation Grade: 3/5
Our fair value is 1,059 (1.8x FY15E adjusted book value and valuing the housing subsidiary
at book value). At the current market price of 1,097 per share, our valuation grade is 3/5.

One-year forward P/B band P/B movement

Source: NSE, CRISIL Research Source: NSE, CRISIL Research

CRISIL IER reports released on Shriram City Union Finance Ltd
Date Nature of report
Fundamental
grade Fair value
Valuation
grade
CMP
(on the date of report)
28-Jun-11 Initiating coverage 3/5 673 4/5 541
12-Aug-11 Q1FY12 result update 3/5 673 5/5 570
15-Nov-11 Q2FY12 result update 3/5 673 5/5 520
06-Mar-12 Q3FY12 result update 3/5 733 4/5 588
10-July-12 Detailed report 3/5
746
4/5
640
01-Aug-12 Q1FY13 result update 3/5
746
3/5
708
07-Nov-12 Q2FY13 result update 3/5
803
3/5
819
01-Mar-13 Q3FY13 result update 3/5
1,116
3/5
1,079
22-Apr-13 Detailed report 4/5
1,116
4/5
1,008
06-June-13 Q4FY13 result update 4/5
1,116
3/5
1,090
13-Aug-13 Q1FY14 result update 4/5
1,059
4/5
881
06-Nov-13 Q2FY14 result update 4/5
1,059
3/5
1,097



0
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()
Shriram City 1.5x 2.0x 2.5x 3.0x
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(Times)
1yr Fwd PB (x) Median PB
+1 std dev
-1 std dev



CRISIL IERIndependentEquityResearch
8
Annexure: Financials (Standalone)

Source: CRISIL Research
Income Statement Ratios
( mn) FY11 FY12 FY13 FY14E FY15E ( mn) FY11 FY12 FY13 FY14E FY15E
Net Interest Income 8,054 11,108 16,326 18,318 23,561 Spread Analysis
Non Interest Income 28 129 114 217 250 Yield on AUM 21.1% 19.0% 20.8% 20.6% 20.6%
Total Operating Income 8,082 11,238 16,441 18,536 23,811 Cost of borrowings 8.5% 10.8% 12.5% 12.4% 12.4%
Operating Expenses 3,241 4,100 5,946 6,989 8,933 Net Interest Margin (NIM) 12.2% 10.4% 11.2% 10.8% 11.1%
Staff Costs 437 924 2,240 1,869 2,755 Return Ratios
Other Operating Expenses 2,804 3,176 3,706 5,121 6,178 ROA (%) 3.0% 3.0% 3.1% 2.9% 3.1%
Pre- provision profit (PPP) 4,841 7,138 10,495 11,546 14,878 ROE (%) 21.8% 24.0% 22.7% 19.7% 20.5%
Provision & Contingency 1,160 1,760 3,594 3,885 4,969 Growth ratios
Profit before depreciation and tax 3,681 5,379 6,901 7,662 9,909 Assets under Management (AUM) 53.4% 67.9% 17.8% 14.6% 33.6%
Depreciation On Fixed Assets 75 137 244 266 319 Disbursements 58.9% 75.4% 25.3% 14.1% 25.7%
PBT 3,606 5,242 6,657 7,396 9,590 Net Interest Income 31.3% 37.9% 47.0% 12.2% 28.6%
Provision for tax 1,200 1,717 2,160 2,400 3,165 Non Interest Income -80.6% 366.7% -11.6% 90.0% 15.0%
Adjusted Net Profit 2,406 3,425 4,496 4,995 6,425 Total Operating Income 28.7% 39.1% 46.3% 12.7% 28.5%
Operating Expenses 39.5% 26.5% 45.0% 17.6% 27.8%
Staff Costs 20.9% 111.5% 142.5% -16.6% 47.4%
Pre- provision profit (PPP) 22.4% 47.5% 47.0% 10.0% 28.9%
Provision & Contingency -0.5% 51.7% 104.3% 8.1% 27.9%
Balancesheet Adjusted Net Profit 31.8% 46.5% 27.5% 11.1% 28.6%
( mn) FY11 FY12 FY13 FY14E FY15E EPS 30.7% 38.6% 20.5% 5.2% 28.6%
Share Capital Book Value 20.4% 34.7% 22.7% 19.6% 21.3%
Equity share capital 495 524 554 585 585 Asset Quality
Equity Share warrants - 844 436 - - Gross NPA (%) 1.9% 1.6% 2.1% 2.1% 2.0%
Reserves 11,605 15,859 21,382 27,675 33,689 Net NPA (%) 0.4% 0.4% 0.4% 0.3% 0.2%
Shareholders Funds 12,100 17,226 22,372 28,260 34,274 Valuation Data
P/e (x) 12.8 13.0 13.5 12.8 10.0
Borrowings 73,698 97,633 128,553 141,479 185,258 P/ABV (x) 2.6 2.7 2.9 2.3 1.9
Other Liabilities & Provisions 11,135 16,926 10,456 10,978 11,527 Key Parameters
Deferred tax liability - 43 46 46 46 Total AUM ( bn) 80 134 158 181 242
Sources of funds 96,933 131,829 161,428 180,763 231,106 Disbursements ( bn) 79 139 174 199 250
Capitalisation ratios
Cash & Bank Balances 21,654 13,277 22,705 24,322 28,300 Capital adequacy ratio (%) 20.8 17.0 18.6 21.3 19.6
Investments 53 176 1,174 1,760 2,128 Tier I capital ratio (%) 16.2 13.5 14.6 16.7 15.4
Net Loans and advances 70,437 111,582 135,850 146,610 190,988 Tier II capital ratio (%) 4.6 3.5 4.0 4.7 4.2
Net Fixed Assets and Capital WIP 274 512 872 993 1,219 Efficiency ratio
Deferred tax asset 158 175 235 235 235 Cost to Income ratio (%) 41.0 37.7 37.6 39.1 38.9
Other Assets 4,357 6,106 592 6,844 8,237 Opex/ average assets (%) 4.1 3.7 4.2 4.2 4.5
Application of funds 96,933 131,829 161,428 180,763 231,106 Leverage (x) 6.1 5.7 5.7 5.0 5.4
Quarterly Financials
Per share ( mn) Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q2FY14
FY11 FY12 FY13 FY14E FY15E Total operating income 4,043 4,250 4,712 4,498 4,559
Adj EPS () 49 67 81 85 110 Change (q-o-q) 9% 5% 11% -5% 1%
Adj Book Value () 238 321 384 475 580 PAT 1,079 1,126 1,257 1,174 1,272
Dividend per share () 3.5 4.0 6.0 6 6 Change (q-o-q) 4% 4% 12% -7% 8%
Actual o/s shares 50 52 55 59 59 EPS 20.6 21.4 23.2 21.2 21.5


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