1QFY2014 Result Update | Banking

August 12, 2013

Vijaya Bank
Performance Highlights

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

Source: Company, Angel Research;

NEUTRAL
CMP Target Price
% chg (qoq) (10.5) (19.1) (45.7) 1QFY13 455 259 111 % chg (yoy) 5.7 27.6 19.0

`37 -

1QFY14 481 330 132

4QFY13 537 408 244

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 1,833 1.2 67/36 215,943 10 18,789 5,566 VJBK.BO VJYBK@IN

Vijaya bank reported a moderate operating performance for the quarter. Its NII grew by a meager 5.7% yoy. Non-interest income grew strongly by 117.6% yoy, boosted by treasury gains of `141cr as compared to `20cr in 1QFY2013. The bank continued to witness asset quality pressures, as the annualized slippage rate remained elevated at 2.6%. Provisioning expenses reduced by 31.8% to `89cr, and hence earnings at the PBT level grew by 88.0% yoy. However as the bank had a lower effective tax rate of 13.2% in 1QFY2013 as compared to 45.1% in 1QFY2014, the PAT for the bank grew at a relatively toned down 19.0% yoy. NIM declines 21bp qoq; Asset quality witnesses pressures: During 1QFY2014, the banks loan book de-grew by 2.6% qoq, while its deposits grew at a substantial pace of 8.6% qoq. Consequently, the CD ratio for the bank declined significantly by 741bp qoq to 64.5%. Overall CASA deposits grew at a subdued pace of 8.0% yoy (declined by 2.4% qoq) and hence, the CASA ratio for the bank declined 213bp qoq and 242bp yoy to 18.8%. The reported NIM declined by 21bp qoq to 2.0%, on account of a) higher decline in yields on advances (28bp qoq) as compared to cost of deposits (12bp qoq) and b) significant decline in CD ratio. The bank witnessed a healthy 22.0% yoy growth in its non-interest income (excluding treasury) to `125cr. On the asset quality front, the bank witnessed pressures during the quarter, as gross and net NPA levels increased sequentially by around 7%. The PCR (including technical write-offs) declined by 103bp qoq to 67.3%. Additionally, the bank restructured advances worth `243cr (largely infrastructure accounts) during the quarter, thereby taking its outstanding restructured book to `5,000cr (~7.4% of its net advances). Slippages from the restructured book for the bank remain at a low of ~4%. As per the Management, advances worth ~`400-500cr are in the restructuring pipeline, while SEB advances worth ~`3,000cr are to be restructured under FRP in 2QFY2014. Outlook and valuation: We remain wary of the incremental asset quality and margin concerns for the bank, as we take into consideration its high exposure to stressed sectors, its predominantly wholesale based funding profile and recent macro developments amidst an overall weak economic environment. Overall, we have a cautious view on the sector, with a positive bias towards more retailoriented banks, on both assets as well as on liabilities. Moreover, the banks core equity tier-I ratio also remains low, which could entail raising capital at book dilutive valuations. Hence, we recommend a Neutral rating on the stock.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 55.0 13.9 5.1 25.9

Abs. (%) Sensex Vijaya Bank

3m (6.0) (29.5)

1yr 6.8 (30.4)

3yr 3.6 (49.6)

Key financials (standalone)

Y/E March (` cr) NII % chg Net profit % chg NIM (%) EPS (`) P/E (x) P/ABV (x) RoA (%) RoE (%) FY2012 1,904 (2.2) 581 10.9 2.2 9.1 4.1 0.5 0.5 12.6 FY2013 1,878 (1.3) 586 0.8 1.9 9.0 4.1 0.5 0.4 11.4 FY2014E 2,005 6.8 466 (20.3) 1.8 7.0 5.3 0.4 0.3 8.2 FY2015E 2,264 12.9 562 20.5 1.9 9.0 4.1 0.4 0.4 9.8

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

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

Harshal Patkar
022 3935 7800 Ext: 6847 harshal.patkar@angelbroking.com

Source: Company, Angel Research; Note: CMP as of August 8, 2013

Please refer to important disclosures at the end of this report

Vijaya Bank | 1QFY2014 Result Update

Exhibit 1: 1QFY2014 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 - Recoveries 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 1QFY14 2,432 1,805 577 2 48 1,951 481 267 125 25 141 18 82 748 417 263 155 330 89 68 2 19 241 109 132 45.1 4QFY13 2,404 1,784 567 1 52 1,886 517 277 171 25 106 64 82 794 406 245 160 388 205 148 25 32 183 (41) 224 (22.5) % chg (qoq) 1.2 1.2 1.7 152.2 (7.2) 3.4 (7.0) (3.5) (26.4) 33.4 (71.9) 1.1 (5.8) 2.9 7.2 (3.6) (14.9) (56.6) (54.1) (92.0) (41.1) 31.9 NA (40.9) NA 1QFY13 2,197 1,675 514 0 8 1,742 455 123 103 23 20 14 66 578 319 199 119 259 131 106 (8) 33 128 17 111 13.2 % chg (yoy) 10.7 7.8 12.2 NA 521.3 12.0 5.7 117.6 22.0 8.7 615.3 28.6 25.3 29.4 30.9 31.7 29.5 27.6 (31.8) (35.8) NA (41.4) 88.0 540.5 19.0 3187bp FY2013 9,052 6,809 2,158 3 81 7,174 1,878 607 494 92 113 130 272 2,485 1,363 849 514 1,122 545 341 29 175 577 (9) 586 (1.6) FY2012 7,988 6,050 1,872 0 66 6,085 1,904 528 430 131 98 83 216 2,432 1,201 740 461 1,231 581 414 99 68 649 68 581 10.5 % chg (yoy) 13.3 12.5 15.3 NA 23.9 17.9 (1.3) 15.0 15.0 (29.8) 15.1 56.6 26.1 2.2 13.5 14.7 11.6 (8.8) (6.2) (17.6) (70.8) 159.2 (11.2) NA 0.8 NA

Exhibit 2: 1QFY2014 Actual vs. Angel estimates

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

Actual 481 267 748 417 330 89 241 109 132

Estimates 523 127 650 341 309 141 168 44 124

% chg (8.1) 110.7 15.1 22.3 7.1 (36.7) 43.7 149.3 6.5

August 12, 2013

Vijaya Bank | 1QFY2014 Result Update

Exhibit 3: 1QFY2014 performance analysis (standalone)

Particulars Balance sheet Advances (` cr) Deposits (` cr) Credit-to-Deposit (CD) ratio (%) Current deposits (` cr) Saving deposits (` cr) CASA deposits (` cr) CASA ratio (%) CAR (%) Tier 1 CAR (%) Profitability Ratios (%) Cost of deposits Yield on advances Reported NIM Cost-to-income ratio Asset quality Gross NPAs (` cr) Gross NPAs (%) Net NPAs (` cr) Net NPAs (%) Provision coverage ratio (%) Slippage ratio (%)
Source: Company, Angel Research;

1QFY14 4QFY13 67,964 105,369 64.5 4,581 15,275 19,856 18.8 10.9 8.3 7.8 11.1 2.0 55.8 1,645 2.4 977 1.5 67.3 2.6 69,766 97,017 71.9 5,216 15,133 20,349 21.0 11.3 8.5 8.0 11.4 2.2 51.1 1,533 2.2 910 1.3 68.3 1.8

%chg (qoq) 1QFY13 (2.6) 8.6 (741)bp (12.2) 0.9 (2.4) (213)bp (42)bp (21)bp (12)bp (28)bp (21)bp 473bp 7.3 25bp 7.4 15bp (103)bp 83bp 59,306 86,464 68.6 4,949 13,441 18,390 21.3 13.2 9.8 8.1 11.6 2.1 55.2 1,693 2.9 979 1.7 64.1 3.3

%chg (yoy) 14.6 21.9 (409)bp (7.4) 13.6 8.0 (242)bp (228)bp (150)bp (22)bp (56)bp (14)bp 62bp (2.8) (43)bp (0.1) (22)bp 316bp (70)bp

Loan book contracts; NIM declines 21bp qoq due to lower CD ratio
During 1QFY2014, the loan book for the bank de-grew by 2.6% qoq (though up by 14.6% on a yoy basis), while its deposits grew at a substantial pace of 8.6% qoq (21.9% yoy). Consequently, the CD ratio for the bank declined significantly by 741bp qoq and 409bp yoy to 64.5%. Within its loan book, agri advances declined by 9.9% qoq, while retail loan book remained largely flat sequentially. On the liabilities front, savings deposits for the bank grew by 13.6% on a yoy basis (almost flat sequentially), while current deposits witnessed a decline of 7.4% yoy and 12.2% qoq. Overall CASA deposits grew at a subdued pace of 8.0% yoy (declined by 2.4% qoq) and hence, the CASA ratio for the bank declined 213bp qoq and 242bp yoy to 18.8%. The cost of deposits for the bank declined by 12bp qoq to 7.8%, while yield on advances declined by a much higher 28bp qoq to 11.1%. The reported NIM for the bank declined by a higher 21bp qoq to 2.0%, on account of a) higher decline in yields on advances as compared to costs of deposits and b) significant decline in CD ratio.

August 12, 2013

Vijaya Bank | 1QFY2014 Result Update

Exhibit 4: Loan book contracts

Adv. qoq chg (%) 10.0 8.0 6.0 4.0 Dep. qoq chg (%)

Exhibit 5: CASA ratio declines to 18.8%

CASA ratio 22.0 21.0 20.0 8.6 CASA yoy growth (%, RHS) 11.3 8.0 12.0 10.0 8.0 6.0 3.2
21.3 21.6 20.9 21.0 18.8

2.4 4.1

9.0 4.8

8.6 8.6

8.6

2.0 (2.0) (4.0)

19.0 18.0 17.0 1QFY13 2.0

4.0 2.0 -

(0.7) (1.5)

(2.6)

1QFY13

2QFY13

3QFY13

4QFY13

1QFY14

2QFY13

3QFY13

4QFY13

1QFY14

Source: Company, Angel Research

Source: Company, Angel Research

Exhibit 6: Yield on advances lower by 28bp qoq

(%) 12.00 11.63 11.50 11.67 11.46 11.35 11.07 11.00

Exhibit 7: Reported NIM declines by 21bp qoq

(%) 2.25 2.20 2.15 2.10 2.05 2.00 1.95 1.90 1.85 2.21 2.14 2.10

2.08 2.00

10.50 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14

1QFY13

2QFY13

3QFY13

4QFY13

1QFY14

Source: Company, Angel Research

Source: Company, Angel Research

Healthy growth in non-interest income (excluding treasury)

During the quarter, the bank witnessed a healthy performance in its non-interest income excluding treasury, with a growth of 22.0% yoy to `125cr. The CEB income for the bank grew at a moderate pace of 8.3% to `25cr, while income from various charges increased at a strong pace of 34.2% yoy to `51cr. Recoveries from written-off accounts came in at `18cr compared to `14cr in 1QFY2013. On the treasury income front, the bank reported a gain of `141cr during 1QFY2014 as against `20cr in 1QFY2013, which aided overall other income to more than double on a yoy basis to `267cr.

Asset quality witnesses pressure

On the asset quality front, the bank witnessed pressure during the quarter, as slippages remained elevated at `458cr (annualized slippage rate of 2.6%) as compared to `260cr in 4QFY2013 (annualized slippage rate of 1.8%). The banks performance on the recoveries and upgrades front was stable at `322cr, as against `291cr in 4QFY2013. Consequently, Gross and net NPA levels, on an absolute basis, increased sequentially by around 7%. Gross and Net NPA ratios were higher by 25bp and 15bp during the quarter to 2.4% and 1.5%, respectively. Provision coverage ratio (including technical write-offs) declined by 103bp qoq to 67.3%.
August 12, 2013

Vijaya Bank | 1QFY2014 Result Update

Additionally, the bank restructured advances worth `243cr during the quarter, which largely comprised of seven infrastructure accounts. As of 1QFY2014, its outstanding restructured book stood at `5,000cr (~7.4% of its net advances). Slippages from the restructured book for the bank remain at a low of ~4%. As per the Management, advances worth ~`400-500cr are in the CDR restructuring pipeline, while SEB advances worth ~`3,000cr would be restructured under FRP in 2QFY2014.

Exhibit 8: Slippages remains elevated

5.0 4.0 3.0 2.0

Exhibit 9: Asset quality deteriorates sequentially

Gross NPAs (%) 3.0 2.5 2.0 1.5 1.0 0.5 64.1 Net NPAs (%) 68.3 61.8 63.0 PCR (%, RHS) 67.3 70.0 60.0 50.0 40.0 30.0 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
Source: Company, Angel Research

Slippages (%)

3.3

3.8

2.1

1.8

2.6

2.9 1.7

3.2 1.9

2.9 1.7

2.2 1.3

1QFY13 2QFY13 3QFY13 4QFY13 1QFY14

Source: Company, Angel Research

Cost-to-income ratio deteriorates significantly, partly because of operating income de-growth

Operating expenses for the bank were higher by 2.9% qoq, on back of sequential increase of 7.2% in employee expenses, even as other operating expenses declined by 3.6% qoq. However, the operating income witnessed a decline of 5.8% qoq. Hence, the cost-to-income ratio increased substantially by 473bp qoq to 55.8%.

Exhibit 10: Cost-to-income ratio higher by 473bp sequentially

Cost-to-income ratio (%) 62.0 60.0 58.0 56.0 54.0 52.0 50.0 1.3 1.3 1.3 1.2 1.5 1.5 Opex to average assets (%, RHS) 1.8

55.2

59.9

55.0

51.1

48.0 46.0

55.8

2.4 1.5

1.0

0.6 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14

Source: Company, Angel Research

August 12, 2013

Vijaya Bank | 1QFY2014 Result Update

Investment concerns
Unfavourable deposit mix to keep NIM under pressure
Vijaya Banks CASA ratio as of 1QFY2014 stood at 18.8%, which is amongst the lowest in the industry. Owing to the unfavorable deposit mix, we expect the banks NIM to remain under pressure in the short term. The only positive surprise on the NIM front can come on account of recognition of interest income on recoveries from slippages.

Low RoAs
The banks RoA and RoE at 0.4% and 11.4%, respectively in FY2013, are on the lower side. This is mainly on account of lower other income excluding treasury (at 0.5% of average assets as of FY2013) and high operating expenses relative to its fee and CASA franchise (at 1.3% of average assets as of FY2013).

Outlook and valuation

We remain wary of the incremental asset quality and margin concerns for the bank, as we take into consideration its high exposure to stressed sectors, its predominantly wholesale based funding profile and recent macro developments amidst an overall weak economic environment. Overall, we have a cautious view on the sector, with a positive bias towards more retail-oriented banks, on both assets as well as on liabilities. Moreover, the banks core equity tier-I ratio also remains low, which could entail raising capital at book dilutive valuations. Hence, we recommend a Neutral rating on the stock.

Exhibit 11: 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 FY2014 13.0 8.0 21.4 1.9 (7.3) 7.5 5.0 2.0 69.0 FY2015 13.0 11.0 21.7 2.0 10.6 10.0 5.0 1.7 70.0

Revised estimates FY2014 13.0 8.0 21.4 1.8 17.5 11.0 12.5 2.0 69.0 FY2015 13.0 11.0 21.7 1.9 (5.0) 5.0 5.0 1.7 70.0

August 12, 2013

Vijaya Bank | 1QFY2014 Result Update

Exhibit 12: Change in estimates

FY2014 Particulars (` cr) NII Non-interest income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT
Source: Angel Research

FY2015 Var. (%) (6.8) 26.7 0.1 4.7 (5.1) 1.2 (9.0) 18.9 (18.9) Earlier estimates 2,423 623 3,046 1,571 1,476 484 991 337 654 Revised estimates 2,264 678 2,941 1,597 1,345 493 852 290 562 Var. (%) (6.6) 8.8 (3.4) 1.7 (8.9) 1.8 (14.1) (14.1) (14.1)

Earlier estimates 2,151 563 2,714 1,452 1,262 485 777 202 575

Revised estimates 2,005 713 2,718 1,521 1,197 491 707 240 466

Exhibit 13: P/ABV band

Price (`) 200 180 160 140 120 100 80 60 40 20 0 0.4x 0.8x 1.2x 1.6x 2x

Nov-02

Nov-04

Nov-06

Nov-08

Nov-10

Nov-12

Jul-03

Jul-05

Jul-07

Jul-09

Jul-11

Mar-02

Mar-04

Mar-06

Mar-08

Mar-10

Source: Company, Angel Research

August 12, 2013

Mar-12

Jul-13

Vijaya Bank | 1QFY2014 Result Update

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 Buy Buy Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral CMP (`) 1,086 318 611 875 20 283 71 59 512 170 40 244 57 272 46 58 72 40 1,013 141 540 1,661 72 56 117 35 37 Tgt. price (`) 1,255 745 1,038 Upside (%) 15.6 22.0 18.6 FY2015E P/ABV (x) 1.2 0.7 2.9 1.3 0.8 1.2 0.4 0.4 0.6 0.4 0.4 0.5 0.6 0.3 0.3 0.3 0.3 0.3 0.8 0.3 0.5 0.9 0.4 0.5 0.4 0.3 0.4 FY2015E Tgt. P/ABV (x) 1.4 3.5 1.5 FY2015E P/E (x) 6.9 6.1 13.6 9.1 4.9 5.7 2.4 3.5 4.1 2.7 3.4 4.0 3.6 2.8 2.1 2.6 2.2 2.7 5.0 2.7 3.3 5.8 3.1 3.6 2.9 1.7 4.1 FY2013-15E EPS CAGR (%) 19.1 2.9 26.3 15.8 5.7 16.9 12.6 (15.1) 8.3 16.2 5.4 (3.4) 40.1 2.3 (3.3) 25.1 (4.2) 57.5 (3.5) 7.4 10.8 17.5 (16.0) 66.4 6.2 54.6 (0.4) FY2015E RoA (%) 1.6 1.0 1.9 1.6 0.9 1.3 0.6 0.5 0.8 0.7 0.5 0.6 0.5 0.7 0.6 0.8 0.8 0.5 1.3 0.6 1.0 1.0 0.6 0.6 0.6 0.6 0.4 FY2015E RoE (%) 18.1 12.3 22.8 15.4 16.2 22.8 12.4 10.0 14.2 13.9 14.1 10.4 12.8 13.5 13.2 13.3 12.4 10.5 16.3 11.1 15.7 17.0 12.8 13.5 13.4 14.7 9.8

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

Company Background
Vijaya Bank is a mid-sized PSU bank with a balance sheet size of ~`1.1 lakh cr. The bank's branches are mainly concentrated in the southern states (~60%), with majority being in the parent state of Karnataka (~40%). The bank, unlike most other PSU banks, has more than half of its branches located in the urban and metropolitan areas (~52%).

August 12, 2013

Vijaya Bank | 1QFY2014 Result Update

Income statement (standalone)

Y/E March (` cr)
NII - 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 (%)

FY10 1,449 28.8 679 (2.8) 2,129 16.7 1,072 15.9 1,057 17.6 356 (0.4) 701 29.5 194 27.6 507 93.3

FY11 1,947 34.3 533 (21.5) 2,480 16.5 1,433 33.8 1,047 (1.0) 439 23.3 608 (13.3) 84 13.8 524 3.3

FY12 1,904 (2.2) 528 (1.0) 2,431 (2.0) 1,201 (16.2) 1,230 17.5 581 32.4 649 6.8 68 10.5 581 10.9

FY13 1,878 (1.3) 607 15.0 2,485 2.2 1,363 13.5 1,122 (8.8) 545 (6.1) 577 (11.2) (9) (1.6) 586 0.8

FY14E 2,005 6.8 713 17.5 2,718 9.4 1,521 11.6 1,197 6.7 491 (10.0) 707 22.6 240 34.0 466 (20.3)

FY15E 2,264 12.9 678 (5.0) 2,941 8.2 1,597 5.0 1,345 12.3 493 0.5 852 20.5 290 34.0 562 20.5

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 (%) FY10 934 2,542 61,932 13.6 289 1,650 2,877 70,222 4,100 1,450 21,107 41,522 17.1 493 1,551 70,222 12.6 FY11 1,673 3,144 73,248 18.3 525 1,500 1,923 82,013 4,882 864 25,139 48,719 17.3 486 1,924 82,013 16.8 FY12 1,696 3,557 83,056 13.4 3,918 1,500 2,038 95,764 4,543 1,860 28,644 57,904 18.9 487 2,327 95,764 16.8 FY13 1,696 3,863 97,017 16.8 4,892 1,500 2,014 110,982 3,918 2,727 31,285 69,766 20.5 477 2,810 110,982 15.9 FY14E 1,696 4,136 8.0 5,272 1,463 2,266 4,715 1,794 30,739 78,835 13.0 498 3,028 7.8 FY15E 1,696 4,479 11.0 5,832 1,426 2,577 5,234 1,985 32,128 89,084 13.0 535 3,350 10.6

104,779 116,304

119,610 132,314

119,610 132,314

August 12, 2013

Vijaya Bank | 1QFY2014 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 (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 1.6 0.4 2.1 0.6 2.7 1.6 1.1 0.3 0.7 26.6 18.8 2.6 0.6 2.0 0.2 2.1 0.5 2.7 1.9 0.8 0.1 0.5 25.4 13.8 2.1 0.7 1.5 0.1 1.6 0.5 2.1 1.4 0.7 0.1 0.5 25.0 12.6 1.8 0.5 1.3 0.1 1.4 0.5 1.9 1.3 0.6 (0.0) 0.4 26.3 11.4 1.7 0.4 1.3 0.1 1.4 0.5 1.9 1.3 0.6 0.2 0.3 27.2 8.2 1.8 0.4 1.4 0.0 1.4 0.5 1.9 1.3 0.7 0.2 0.4 27.7 9.8 3.4 0.6 6.5 4.2 0.6 6.5 4.1 0.5 5.6 4.1 0.5 6.5 5.3 0.4 3.9 4.1 0.4 5.2 10.8 57.4 2.5 8.8 65.4 2.5 9.1 69.4 2.2 9.0 78.8 2.5 7.0 84.1 1.5 9.0 91.1 2.0 2.4 1.4 3.4 0.7 64.2 2.6 1.5 3.2 0.5 63.7 2.9 1.7 4.2 0.5 62.4 2.2 1.3 2.7 0.4 68.3 2.5 1.3 2.0 0.3 69.0 2.9 1.3 1.7 0.3 70.0 24.6 67.0 12.5 7.7 25.3 66.5 13.9 9.9 22.0 69.7 13.1 9.7 21.0 71.9 11.3 8.5 21.4 75.2 12.9 8.4 21.7 76.6 12.1 8.1 2.3 50.3 0.7 18.8 2.6 57.8 0.5 13.8 2.2 49.4 0.5 12.6 1.9 54.8 0.4 11.4 1.8 55.9 0.3 8.2 1.9 54.3 0.4 9.8 FY10 FY11 FY12 FY13 FY14E FY15E

August 12, 2013

10

Vijaya Bank | 1QFY2014 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 Pvt. Ltd., 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 Pvt. Ltd. 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 Pvt. Ltd. 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 Pvt. Ltd. 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 Pvt. Ltd. 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 Pvt. Ltd., 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 Pvt. Ltd. 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

Vijaya 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%)

August 12, 2013

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