LakshmiVilasBank

Steadyandconsistentgrowthtocontinue

InitiatingCoverage December22,2015

Current Previous CompanyBackground

CMP:Rs.97
Lakshmi Vilas Bank (LVB) is a small old generation private sector bank from south India with
Rating:BUY Rating:NA
largelyregionaloperationsandespeciallyinthestateofTamilnadu.Thebankisabletogrowits
Target:Rs.113 Target:NA
businessataCAGRof20%toRs383bnandNetProfitataCAGRof34%inthelast5Years.Asof

STOCKINFO FY15,LVBhasnetworkof400branches&820ATMs.Goingforwardthebankisexpectedtogrow
Bse 534690
its presence in urban and metro cities across PAN India. In a bid to shed its oldgeneration
Nse LAKSHVILAS
Bloomberg LVBIN image,LVBhasstrengtheneditstopmanagementandhasundertakenarebrandingexerciseto
Reuters LVLS.NS evolveasanewagebank.
Sector PrivateSectorBanks
FaceValue(Rs) 10
EquityCapital(RsMn)
MktCap(RsMn)
1795
16,331
InvestmentRationale:
52wH/L(Rs) 111/64 BusinessgrowthtoremainhealthywithsignificantfocusonSME/Retailsegments:
AvgDailyVol(Bse+Nse) 927,897
LVBs business has grown at a healthy pace of 20% CAGR over FY1015 attributed by 21% and
SHAREHOLDINGPATTERN %
(asonSept.2015)
19%CAGRgrowthinAdvancesandDepositsoverthesameperiod,respectively.Webelievethis
businessgrowthmomentumtocontinueoverFY1517EmainlyledbyretailandSMEsegments.
Promoter 9.7 We expect the banks advances and deposits to grow at a CAGR of 18% and 16%, respectively
FII 9.1
overFY1517E.
DII 7.7
Others 73.5
Source:BSE

BranchexpansiontodriveCASAgrowthgoingahead:
STOCKPER.(%) 1m 3m 12m LVB wants to increase the share of lowcost CASA deposits from 14% as of FY14 to 25% by
LVB 8% 16% 11%
Sensex 0% 3% 6% increasingtheshareofCASAby2%everyyear.TheBankmanagementisalsoplanningtoadd70
Source:Capitaline,IndiaNiveshResearch to80branchesperyeargoingforward.Weexpecttheexpansionofbranchnetworkislikelyto

LakshmiVilasBankv/sSENSEX helpCASAdepositstogrowataCAGRof26%overFY1517EandCASAratioislikelytoimproveto
150

19.5%byFY17E.

130

110
90

70
ReturnRatiosarelikelytoimprovebackedbyimprovedassetquality:
50 ThebankpostedadecentimprovementinFY15asthebankreportedReturnonEquity(RoE)of
18/12/2014
01/01/2015
15/01/2015
29/01/2015
12/02/2015
26/02/2015
12/03/2015
26/03/2015
09/04/2015
23/04/2015
07/05/2015
21/05/2015
04/06/2015
18/06/2015
02/07/2015
16/07/2015
30/07/2015
13/08/2015
27/08/2015
10/09/2015
24/09/2015
08/10/2015
22/10/2015
05/11/2015
19/11/2015
03/12/2015
17/12/2015

10.1%andReturnonAssets(RoA)of0.6%fromRoEof5.8%andRoAof0.3%asofFY14.LVBs
LVB Sensex
concerted efforts to reduce costs, along with lower provisions and writeoffs should drive
Source:Capitaline,IndiaNiveshResearch

profitability.WeexpectthebanksnetprofittogrowataCAGRof26%overFY1517E.


Steadyimprovementvisible;Assetqualitycontinuetoimprove:
There has been a tremendous improvement in LVB's asset quality over the past few quarters,
drivenbysignificantreductioninslippagesandsubstantialrecoveries/upgradationsandselling
ofafewNPAs.TheGrossNPAhasreducedfrom5.6%inQ3FY14to2.8%atendofQ4FY15.The
NetNPAhasalsofallento1.9%from4.3%inthesameperiod.WeexpectGrossNPA/NetNPAto
improvefurtherto1.6%/0.9%,respectivelybyFY17E.

OutlookandValuation:
LVB is on the right track of recovery with improvement in economy. We believe that LVB will
continue with its healthy growth, while maintaining its healthy capitalisation and stable asset
DaljeetS.Kohli qualityoverthemediumterm.AtCMPofRs97/,thestockistradingatP/ABVof1.1xand1.0x
HeadofResearch forFY16EandFY17Erespectively.Withimprovingreturnprofile,webelieveitprovidesattractive
riskrewardopportunity.HencewerecommendBUYratingonthestockwithtargetpriceofRs
Tel:+912266188826
113/,valuingitat1.3xP/ABVofFY17E(+16%upside).
daljeet.kohli@indianivesh.in


FinancialHighlights:
KaushalPatel Rsmn NII PAT EPS(Rs) ROA(%) ROE(%) BV(Rs) ABV(Rs) P/E P/BV P/ABV
ResearchAssociate FY12 3,712 1,070 11 0.7 11.6 98 80 9.2 1.0 1.3
FY13 3,920 916 9 0.5 9.3 104 75 8.9 0.8 1.1
Tel:+912266188834 FY14 4,860 597 6 0.3 5.8 108 63 11.3 0.6 1.1
kaushal.patel@indianivesh.in FY15 5,267 1,323 7 0.6 10.1 87 70 12.1 1.0 1.3
FY16E 6,521 1,719 10 0.6 10.6 94 82 9.3 1.0 1.1
FY17E 7,685 2,143 12 0.7 12.2 103 91 7.5 0.9 1.0
Source:Company,IndiaNiveshResearch

IndiaNiveshSecuritiesLimited|ResearchAnalystSEBIRegistrationNo.INH000000511
IndiaNiveshResearch 601&602,SukhSagar,N.S.PatkarMarg,GirgaumChowpatty,Mumbai400007.Tel:(022)66188800
IndiaNiveshResearchisalsoavailableonBloombergINNS,ThomsonFirstCall,ReutersandFactivaINDNIV.

InitiatingCoverage(contd...)

Financials:
IncomeStatement(Rsmn) FY13 FY14 FY15 FY16E FY17E Ratios
InterestIncome 17,605 19,840 22,145 25,872 29,644 Persharedata(Rs) FY13 FY14 FY15 FY16E FY17E
InterestExpense 13,685 14,979 16,879 19,352 21,959 EPS 9.4 6.1 7.4 9.6 11.9
NetInterestIncome 3,920 4,860 5,267 6,521 7,685 DPS 3.0 1.0 2.0 2.2 2.5
NonInterestIncome 1,971 2,180 2,840 3,184 3,870 BV 104.0 108.0 86.9 93.6 102.6
NetIncome 5,891 7,040 8,107 9,704 11,555 ABV 74.9 62.5 70.0 82.1 91.3
OperatingExpenses 3,379 3,950 4,343 5,193 6,095
TotalIncome 19,576 22,019 24,986 29,056 33,514 Valuation(%)
TotalExpenditure 17,065 18,929 21,221 24,544 28,054 P/E 8.9 11.3 12.1 9.3 7.5
PreProvisioningProfit 2,511 3,090 3,764 4,512 5,460 P/BV 0.8 0.6 1.0 1.0 0.9
Provisions 1,134 2,686 1,882 2,066 2,412 P/ABV 1.1 1.1 1.3 1.1 1.0
ProfitBeforeTax 1,378 404 1,882 2,446 3,049 DivYield 3.6 1.4 2.2 2.5 2.8
Tax 462 193 559 727 906
NetProfit 916 597 1,323 1,719 2,143 Spreads(%)
YieldonAdvances 12.7 12.9 11.7 11.5 11.3
YieldonInvestments 7.8 7.6 8.1 7.9 7.7
BalanceSheet(RsMn) FY13 FY14 FY15 FY16E FY17E YieldonFunds 11.5 11.5 10.8 10.6 10.4
CostofDeposits 8.7 8.4 8.0 0.0 0.0
Liabilities CostofBorrowings 13.1 14.2 13.4 0.0 0.0
Capital 975 976 1,792 1,795 1,795 CostofFunds 8.9 8.5 8.1 7.9 7.7
ReservesandSurplus 9,168 9,560 13,770 15,002 16,614
Deposits 156,190 185,729 219,642 256,405 297,840 Capital(%)
Borrowings 4,800 4,581 4,581 6,603 7,774 CAR 12.3 10.9 11.3 10.5 10.0
OtherLiabilitiesandProvisions 5,534 5,685 7,270 8,061 8,908 TierI 9.2 7.9 9.3 8.6 8.2
TotalLiabilities 176,667 206,532 247,054 287,866 332,931 TierII 3.2 3.0 2.0 1.9 1.8
Assets
CashAndBalances 8,719 13,117 13,187 14,743 16,381 Asset(%)
Investments 43,245 56,887 61,038 69,972 79,790 GNPA 3.9 4.2 2.8 1.9 1.6
Advances 117,028 128,892 163,520 192,088 226,165 NNPA 2.4 3.4 1.9 1.1 0.9
FixedAssets 1,898 2,005 2,434 2,556 2,684 PCR 54.5 53.2 60.8 70.0 70.0
OtherAssets 5,776 5,630 6,875 8,507 7,911
TotalAssets 176,667 206,532 247,054 287,866 332,931 Management(%)
Credit/Deposit 74.9 69.4 74.4 74.9 75.9
Cost/Income 57.4 56.1 53.6 53.5 52.7
CASA 14.5 14.2 16.7 18.0 19.5

Earnings(%)
NIM 2.6 2.8 2.6 2.7 2.7
ROE 9.3 5.8 10.1 10.6 12.2
ROA 0.5 0.3 0.6 0.6 0.7

Liquidity(%)
C&B/D&B 5.4 6.9 5.9 5.6 5.4
C&B/Deposit 5.6 7.1 6.0 5.8 5.5
*C&B:Cash&BankBalance;D:Deposits;B:Borrowings;DD:DemandDeposits

GrowthRatios(%)
Advances 14.9 10.1 26.9 17.5 17.7
Deposits 10.7 18.9 18.3 16.7 16.2
TotalAssets 8.8 16.9 19.6 16.5 15.7
Networth 5.8 3.9 47.7 7.9 9.6
NII 5.6 24.0 8.4 23.8 17.9
PreProvisioningProfit 6.7 23.0 21.8 19.9 21.0
Provisions 3.6 136.9 29.9 9.7 16.7
NetProfit 14.4 34.9 121.7 30.0 24.6

Source:Company,IndiaNiveshResearch

LakshmiVilasBank(contd...) December22,2015|2

InitiatingCoverage(contd...)

InvestmentRationale:
BusinessgrowthtoremainhealthywithsignificantfocusonSME/Retailsegments:

Weexpectthebanks LVBsbusinesshasgrownatahealthypaceof20%CAGRoverFY1015attributedby21%and
advancestogrowataCAGR 19%CAGRgrowthinAdvancesandDepositsoverthesameperiod,respectively.InFY15,LVB
of18%overFY1517E. reported27%yoygrowthinitsadvancestoRs164bnmainlyledbycorporatesegment.In
additionto,thebankalsohadabenefitofsmallbase.
Going forward, the companys focus will be more on retail and SME segments. The
managementhasguidedfor22%yoygrowthinadvancesmainlyledby25%yoygrowthin
retail and SME segments in FY16. In order to achieve this, the bank has made some of its
personal, home loan and loan against property products more attractive. It is also
aggressively marketing these products. However, we remain cautious and expect gradual
pick up in retail / SME loan book. For lending towards large corporate, the management
wouldliketoremainconservativeandwouldavoidsectorswhicharepronetohigherdefault
riskandlimitincrementallendingtohighlyratedcorporates.Weexpectthebanksadvances
togrowataCAGRof18%overFY1517E.
TrendinAdvances(YoY) TrendinAdvances(QoQ)
250 35 200 35
30 30
200 150 25
25
20
150 20 100
164 164 174 15
228 129 133 135 142
100 193
15 121 127 10
50
164
129 10 5
50 102 117
63 81 5 0 0
Q2FY14

Q3FY14

Q4FY14

Q1FY15

Q2FY15

Q3FY15

Q4FY15

Q1FY16

Q2FY16
0 0
FY10 FY11 FY12 FY13 FY14 FY15 FY16E FY17E

Advances(Rsbn) AdvancesGrowth(%) Advances(Rsbn) AdvancesGrowth(%)

Source:Company,IndiaNiveshResearch Source:Company,IndiaNiveshResearch

ExposuretoWholesale,Retail,SMEandAgristoodat37%,29%,19%and15%,respectively
asofFY15.Themanagementwouldliketomaintaintheloanportfoliomix,moreorless,at
thecurrentlevelortheretailandSMEpercentagelevelshouldbeslightlyhigherinFY16.
CompositionofLoanBook(intermsof%)
100%
20 19 19 15
80%
16 19
21 21
60%
29 29
32 30
40%

20% 35 37
28 30

0%
FY12 FY13 FY14 FY15

Wholesale Retail SME Agri

Source:Company,IndiaNiveshResearch

Majorlypresentinthestate LVBlikemost ofitspeers;wasprimarilylendertoRetailandSME/MSMEcustomerswhich

ofTamilnadu werelargelylocatedinthestateofTamilnadu.However,thebankwillhavethebenefitofit
as the average credit growth in Tamilnadu has remained higher than the average credit
growth of the whole country. As the bank also foresees good business potential in
Tamilnadu,ithasshifteditscorporateofficetoChennaifromKarur.

LakshmiVilasBank(contd...) December22,2015|3

InitiatingCoverage(contd...)

CreditGrowth(intermsof%)
Region FY07 FY08 FY09 FY10 FY11 FY12 FY13
Northern 28.2 21.9 22.8 22.5 27.8 17.0 14.3
NorthEastern 26.7 18.7 15.9 20.0 14.1 18.7 14.2
Eastern 27.7 20.4 19.2 22.7 18.2 17.0 14.2
Central 26.5 19.3 18.0 21.6 19.7 16.7 19.2
Western 29.2 23.4 16.2 10.3 20.5 16.9 14.7
Southern 28.5 24.6 21.6 19.0 20.5 18.4 15.6
Ta mi l na du 26.8 22.5 16.5 21.7 22.0 18.3 17.8
AllIndia 28.5 22.8 19.3 17.1 21.9 17.3 15.1
LVB 6.8 35.7 19.9 28.9 25.9 14.9
Source:Company,RBI,IndiaNiveshResearch
Continuetoprefershortterm The bank continues to prefer short term / working capital loans as that provides better
/workingcapitalloans liquidity with healthy margins. In addition to, the residual maturity of these loans also
remainsverylow.
TermLoansv/sWorkingCapitalLoans(intermsof%) PeerComparison LoanGrowth(intermsof%)
100% 30%
21% 21%
19%
57 60 61 70 70 66 20%
50% 9%
10%
43 40 39 30 30 34
0% 0%
FY10 FY11 FY12 FY13 FY14 FY15 LVB CityUnion Dhanlaxmi SouthIndian

TermLoans(%) WorkingCapitalLoans(%) LoanGrowthCAGRin%(FY1015)

Source:Company,IndiaNiveshResearch Source:Company,IndiaNiveshResearch

Liabilityprofileremainslargely Thrusttowardsretaildepositstocontinue:
retailfundedandretailterm In FY15, LVB reported 18% yoy growth in its deposits to Rs 220 bn helped by 39% yoy
depositsconstitute66%oftotal growth in CASA deposits and 15% yoy growth in term deposits. LVBs liability profile
depositsasofFY15 remains largely retail funded. The management has increased the share of retail term
depositsto66%inFY15from55%inFY14,whilesimultaneouslyreducingtheshareofbulk
Weexpectthebanksdeposits deposits. Retail deposits are more stable while bulk deposits hit the business hard when
togrowataCAGRof16%over withdrawnsuddenly.
FY1517E.
WeexpectthebanksdepositstogrowataCAGRof16%overFY1517E.

TrendinDeposits(YoY) TrendinDeposits(QoQ)
350 30
300 25
250
20
200
15
150 298
256 10
100 220
186
141 156
50 91 111 5

0 0
FY10 FY11 FY12 FY13 FY14 FY15 FY16E FY17E

Deposits(Rsbn) DepositsGrowth(%)

Source:Company,IndiaNiveshResearch Source:Company,IndiaNiveshResearch

LakshmiVilasBank(contd...) December22,2015|4

InitiatingCoverage(contd...)

DepositsGrowth(intermsof%)
Region FY07 FY08 FY09 FY10 FY11 FY12 FY13
Northern 22.5 25.5 19.3 12.6 15.2 10.6 13.0
NorthEaster 22.1 24.0 26.5 24.8 19.7 15.1 16.6
Eastern 20.9 23.5 24.9 19.3 16.2 19.9 16.3
Central 19.7 20.7 24.2 16.7 18.1 17.7 18.8
Western 29.6 26.7 21.2 20.8 20.1 9.7 12.9
Southern 23.0 21.8 22.8 14.1 18.2 17.7 13.5
Tamilnad 22.4 22.2 23.6 15.6 20.7 16.6 11.7
AllIndia 24.2 24.2 21.9 16.9 17.9 13.8 14.2
LVB 11.9 31.0 23.3 22.9 26.6 10.7
Source:Company,RBI,IndiaNiveshResearch

CASADepositsv/sTermDeposits(intermsof%) PeerComparison DepositsGrowth(intermsof %)

100% 30%
19% 19% 18%
20%
82 81 85 86 86 83 12%
50%
10%
18 19 15 14 14 17
0% 0%
FY10 FY11 FY12 FY13 FY14 FY15 LVB CityUnion Dhanlaxmi SouthIndian

CASADeposits(%) TermDeposits(%) DepositsGrowthCAGRin%(FY1115)

Source:Company,IndiaNiveshResearch Source:Company,IndiaNiveshResearch

BranchexpansiontodriveCASAgrowthgoingahead:
CASAsharetoincreaseby2% LVBwantstoincreaseshareoflowcostCASAdepositsfrom14%asofFY14to25%.LVBis
everyyearandeventually planningtoincreasetheshareofCASAby2%everyyeartoeventuallytakeitto25%.Inorder
takeitto25% tomakeitattractiveforcustomers,thebankraisedtheinterestpayableonSAbalancesfrom
4%to5%perannumforaccountsmaintainingabalanceofRs1lakhandabove.Asaresult,
theCASAratioofthebankimprovedto16.7%asofQ4FY15from14.2%asofQ4FY14.

CASAdepositstogrowata InFY15,LVBadded39brancheswhichhelpedittoincreaseitstotalbranchnetworkto400.
CAGRof26%overFY1517E Webelievethismove will support the bank's strategy to focus and improve its CASA ratio
further.Inadditionto,theBankmanagementisalsoplanningtoadd70to80branchesper
year going forward. Thus expansion of branch network is likely to improve CASA deposit
growth at a CAGR of 26% over FY1517E and CASA ratio is likely to improve to 19.5% by
FY17E.Thebankcanalsocontinuetomaintainitsfocusonretailtermdeposits.Inaddition
to, LVB has also hired ~300 employees, (~9% of its employee base) mainly to sourceCASA
deposits.
TrendinCASARatio(YoY)
25.0 49
18.8 19.5
20.0 18.2 18.0 39
16.7
14.9 14.5 14.2
15.0 29

10.0 19

5.0 9

0.0 1
FY10 FY11 FY12 FY13 FY14 FY15 FY16E FY17E

CASARatio(%)LHS CASADepositsGrowth(%)RHS

Source:Company,IndiaNiveshResearch

LakshmiVilasBank(contd...) December22,2015|5

InitiatingCoverage(contd...)

Network
Particulars FY12 FY13 FY14 FY15
Branches 290 291 361 400
Addition 16 1 70 39
ATM 541 651 688 820
Source:CompanyFilings,IndiaNiveshResearch

GeographicPresence(FY15) BranchSegmentation CustomerSegmentation
Numberof Numberof Category FY15(mn) %share
Region Branches %share Category Branches %share Rural 0.45 17
NorthIndia 12 3
Rural 88 22 SemiUrban 1.09 41
WestIndia 28 7
SouthIndia 347 87 SemiUrban 136 34 Urban 0.75 28
EastIndia 7 2 Urban 108 27 Metro 0.37 14
CentralIndia 6 2 Metro 68 17 Total 2.67 100
Total 400 100 Total 400 100 Source:CompanyFilings,IndiaNiveshResearch
Source:CompanyFilings,IndiaNiveshResearch Source:CompanyFilings,IndiaNiveshResearch

SlowbutsteadyimprovementinMarginsislikelyduetoincreasingCASA
share:
WeexpectNIMtoimproveto Net Interest Margin (NIM) offlate were largely volatile owing to higher slippages and
2.7%bytheendofFY16E consequentinterestreversals.NIM(calc)wasat2.6%inFY15ascomparedto2.8%inFY14.
The majority of incremental disbursement towards the end of year also impacted NIM in
NetInterestIncome(NII)to FY15.WeexpectNIMtoimproveto2.7%bytheendofFY16Ethroughincreasingtheshare
growataCAGRof20%over of lowcost CASA deposits in its total deposits. The bank has already taken number of
FY1517E initiativestoincreasetheshareofCASAdeposits.Inadditionto,withslippageslikelypeaked
outandhighershareofretailtermdepositsmarginsshouldstabilizeinthecomingperiod.As
expected,duringdeclininginterestratescenario,thebankwithhighershareofSME/MSME
book would be able to hold rates at relatively higher levels however would be able to re
prizedepositsatlowerrate.Thus,probabilityofgainingmarginsmomentumremainsfurther
high.
Withimprovedmarginsandhealthygrowthinadvances,weexpectNetInterestIncome(NII)
togrowataCAGRof20%overFY1517E.
TrendinNetInterestIncomeandNetInterestMargins(YoY) PeerComparison NetInterestMargin(intermsof%)
10,000 3.5 4.0
4.0 3.4
3.0 3.5
8,000 2.8 2.8 2.7 2.7 3.0 2.7 2.7
2.6 2.6 3.0 2.4
6,000 2.5
2.0
2.0
4,000 1.5 1.0
1.0
2,000 0.0
0.5
0 0.0 LVB CityUnion Dhanlaxmi SouthIndian
FY10 FY11 FY12 FY13 FY14 FY15E FY16E FY17E
NIM(%)FY15
NII(Rsmn) NIMs(%)

Source:Company,IndiaNiveshResearch Source:Company,IndiaNiveshResearch

Returnratioslikelytoimprovebackedbyimprovedassetquality:
Thebanksnetprofittogrow Higher credit cost (due to higher slippages) and lower other income translated into lower
ataCAGRof26%overFY15 returnratiosforLVB.However,thebankpostedadecentimprovementinFY15asthebank
17E reportedReturnonEquity(RoE)of10.1%andReturnonAssets(RoA)of0.6%fromRoEof
5.8%andRoAof0.3%asofFY14.AsthebankhadtomakeaonetimeprovisioningofRs400
mnduringFY14,ittranslatedintolowerreturnratios.Goingforward,asthemanagements
strategymaterialize,thereturnratiosarelikelytoimprovefurther.LVBsconcertedeffortsto
reducecosts,alongwithlowerprovisionsandwriteoffsshoulddriveprofitability.Weexpect
thebanksnetprofittogrowataCAGRof26%overFY1517E.

LakshmiVilasBank(contd...) December22,2015|6

InitiatingCoverage(contd...)

TrendinReturnRatios(YoY)

Source:Company,IndiaNiveshResearch

Steadyimprovementvisible;Assetqualitycontinuetoimprove:
LVBsGrossNPAsandNetNPAincreasedfrom1.9%and0.9%asofFY11to4.2%and3.4%as
ofFY14,respectively.However,majorityofthisincreasecamefromlargecorporates.Ifwe
analysesectorwiseGrossNPAdatathenGrossNPAfromindustrywas0.3%asofFY11which
increased to 8.8% as of FY14. During the same period, the asset quality of SME and retail
loansimprovedsignificantly.
CompositionofGrossNPA(intermsof%)
9.0 8.4
8.0
7.0 6.2
5.4 5.6 5.6
6.0
5.0 4.1
3.8
4.0
2.7
3.0 2.3
1.4 1.6
2.0 0.9
0.8 0.6 0.5 0.5
1.0
0.0
FY12 FY13 FY14 FY15

Wholesale SME Retail Agri

Source:Company,IndiaNiveshResearch

ToptenIndustryWisedistributionofExposuresasofFY15
NonFund
IndustryClassification %oftotal FundBased %oftotal
Based
Infrastructure 6 14,376 14 2,442
Textiles 4 9,188 5 891
BasicMetalandMetalProducts 4 8,380 11 1,983
FoodProcessing 3 5,880 5 945
ChemicalsandChemicalProducts 1 2,954 11 1,980
AllEngineering 1 2,014 6 1,132
MiningandQuarrying 1 2,190 0 29
CementandCementProducts 1 1,582 0 7
Beverages(excludingTea&Coffee)andTobacco 1 1,317 0 9
GemsandJwellery 0 1,057 0 59
Total 100 2,28,322 100 17,699
Source:CompanyFilings,IndiaNiveshResearch

LakshmiVilasBank(contd...) December22,2015|7

InitiatingCoverage(contd...)

ImprovementinNPAwasthe However,therehasbeenatremendousimprovementinLVB'sassetqualityoverthepastfew
resultofsignificantreduction quarters, driven by significant reduction in slippages and substantial recoveries /
inslippagesandsubstantial upgradationsandsellingofafewNPAs.Thishasamountedtoclearingofitsbooksandthe
recoveries/upgradations GrossNPAhasreducedfrom5.6%inQ3FY14to2.8%attheendofQ4FY15.TheNetNPAhas
duringFY15 alsofallento1.9%from4.3%inthesameperiod.LVBsoldassetsworthRs420mninFY14
andRs1.6bninFY15toassetreconstructioncompanies(ARCs)toreducetheNPApainin
thelargecorporatebook.InFY15,ithasalsorestructuredloansworthRs4.3bn(Rs2.7bnin
FY14)ofcorporateloans.TherewasnorestructuringpipelineattheendofFY15.Incontrast
to industry trend, the management doesnt expect any slippages from its restructured
portfolioandexpectstoupgradeRs1.0bnofassetsinFY16.
TrendinGrossNPA(YoY)
MovementofGrossNPAs:(Rsmn) FY11 FY12 FY13 FY14 FY15
OpeningbalanceofgrossNPAs 3,252 1,578 3,077 4,599 5,465
Additionsduringtheyear 1,375 2,830 4,002 6,687 2,563
%ofopeningnetadvances 2.2 3.5 3.9 5.7 2.0
Reductionsduringtheyear 3,049 1,330 2,480 5,821 3,482
%ofopeninggrossNPAs 93.8 84.3 80.6 126.6 63.7
ClosingbalanceofgrossNPAs 1,578 3,077 4,599 5,465 4,546
Source:Company,IndiaNiveshResearch

Strengthenedcreditmonitoring Themanagementofthebankisconfidentoftrimmingitsbadassetsinthecomingquarters,
systemandsteppeduprecovery despite the uncertain macroeconomic environment. The bank has tightened its loan
efforts sanction process, strengthened credit monitoring system and stepped up recovery efforts.
Theseinitiativeshavehelpedreduceitsbadloans.

Overall, the bank has strengthened its systems and processes. With minimal incremental
ExpectinggrossNPAtodecline
slippages,healthyrecoveriesandsecuredloangrowth.WeexpectGrossNPAtodeclineto
to1.6%&NetNPAtodeclineto
0.9%byFY17E 1.6% by FY17E from 2.8% in FY15 and Net NPA to improve further to 0.9% by FY17E from
1.9% in FY15. Our comfort on asset quality is also an outcome of consistency in
managementseffortsonrecoveriesfromstressedassets.Also,astheeconomyimprovesthe
stressinthesystemwillreduce.
TrendinNPARatios(QoQ) TrendinNPARatios(YoY)
6.0 5.6 6.0
5.3 5.2 5.1
5.0 4.5 4.4 4.2 4.0 5.0
3.9 3.7 4.2
4.0 3.6 3.4 3.9
2.8 2.7
4.0
3.0 3.0
2.8
1.9 3.0
2.0 1.9 1.9
2.0 1.6
1.0
0.0 1.0
Q1FY13

Q2FY13

Q3FY13

Q4FY13

Q1FY14

Q2FY14

Q3FY14

Q4FY14

Q1FY15

Q2FY15

Q3FY15

Q4FY15

Q1FY16

Q2FY16

0.0
FY10 FY11 FY12 FY13 FY14 FY15 FY16E FY17E

GNPAs(%) NNPAs(%) GNPAs(%) NNPAs(%)

Source:Company,IndiaNiveshResearch Source:Company,IndiaNiveshResearch

PeerComparison NPA(intermsof%)

8.0 7.0
6.0
4.0 2.8 3.3
1.9 1.9 1.3 1.7
2.0 1.0
0.0
LVB CityUnion Dhanlaxmi SouthIndian

GNPA(%)FY15 NNPA(%)FY15

Source:Company,IndiaNiveshResearch

LakshmiVilasBank(contd...) December22,2015|8

InitiatingCoverage(contd...)

ComfortableCapitalAdequacyRatio(CAR)fornextphaseofgrowth:
BankisplanningtoraiseRs. LVB'scapitalisationhasremainedhealthywithCARof11.3%underBASELIIIasofFY15which
3.0bninH2FY16tosupportits wassupportedbythebanksrightsissueofRs4.1bn.Thebank'sTierIcapitaladequacyratio
currentgrowthmomentum (CAR)hasremainedwellabove8%duringthepastsixyears.However,withafocusonhigh
growth by the management, the bank hasto raise capital in FY16. The bank is planning to
raise Tier I capital of Rs 3.0 bn in H2FY16. In addition to, the bank has also headroom
availabletoraiseTierIIcapitalofRs1.0bntosupportitsgrowthstrategy.
TrendinCapitalAdequacyRatios(YoY)
16.0
13.6 13.2 13.1
14.0 12.3
10.9 11.3
12.0 2.8 2.4 10.5
4.2 9.9
3.2 2.0
10.0 3.0 1.9 1.8
8.0
6.0 10.8 10.8
8.9 9.2 9.3 8.6
4.0 7.9 8.1
2.0
0.0
FY10 FY11 FY12 FY13 FY14 FY15 FY16E FY17E

TierI(%) TierII(%)

Source:Company,IndiaNiveshResearch

Rebrandingexerciseaimedat
makingitmorecustomers
friendly
Bancassurancetieupfor
distributionoftheMaxLifes
insuranceproducts
CompanyUpdate:
The bank has undertaken a rebranding exercise aimed at making it more customers
friendly. In a bid to shed its oldgeneration image, the bank has strengthened its top
management and signed on Ernst and Young as the consultant to evolve as a newage
bank. With focus on finetuning its offerings to attract the youth, the bank is
strengtheningitstechnologyenabledproductssuchasInternetandmobilebanking.
Max Life Insurance and LVB have entered into a 5 years bancassurance tieup for
distributionoftheMaxLifesinsuranceproductsthroughthe400branchesofthebank.
Under this alliance, LVB has become a corporate agent for Max Life Insurance and will
offer a complete bouquet of life insurance solutions and post sales services to its
customerswhichwillhelpthebanktoincreaseitsotherincome.
Q2FY16ResultUpdate:
NetInterestIncome(NII)ofLVBincreasedatahealthypaceof20%yoy(+10%qoq)toRs
1,603 mn in Q2FY16 driven by 29% yoy growth in advances. LVBs Non Interest Income
increasedmarginallyat2%yoy(19%qoq)toRs637mnduetolowertreasuryincome.
Operatingexpensesincreased21%yoy(+12%qoq)toRs1,286mnmainlydueto24%yo
yincreasedinotheroperatingexpensesasthebankhasaddedalmost40+branchesinthe
lastoneyear.Thebankhasanetworkof409branchesand820ATMsasofQ2FY16.
PreProvisioningProfit(PPP)increasedatamoderatepaceof6%yoy(13%qoq)toRs954
mnduetolowertreasuryincome.Provisionsdecreased30%yoy(41%qoq)toRs356mn
helped by provision writeback of Rs 198 mn towards investment. As a result, net profit
increased42%yoy(+11%qoq)toRs448mninQ2FY16.
Advancesgrewatahealthypaceof29%yoy(+6%qoq)toRs174bnlargelyledbyterm
loans.Depositsgrew21%yoy(+5%qoq)toRs234bnsupportedbystronggrowthinCASA
deposits.TheassetqualitycontinuestoimproveasGrossNPAandNetNPAimproved83bps
and 71 bps sequentially to 1.89% and 1.01%, respectively. However, it was supported by
someoftheassetssalestoARCs.ThebanksoldassetsworthRs1.42bntoARCsandbooked
thelossofRs548mn.Thelosswillbeamortizedover8quarters.Thebankhadoutstanding
securityreceipts(SRs)ofRs2.8bnasofQ2FY16.Overall,LVBreportedgoodsetofnumbers
inQ2FY16anditisonrighttrackofrecoveryandreadytorideongrowthmomentumonce
economystartsimproving.

LakshmiVilasBank(contd...) December22,2015|9

InitiatingCoverage(contd...)

Rsmn Q2FY16 Q1FY16 Q2FY15 %QoQ %YoY
InterestIncome 6,342 6,141 5,512 3 15
Interestonadvances 5,012 4,856 4,211 3 19
IncomeonInvestments 1,315 1,270 1,202 4 9
Others 14 15 98 7 85
InterestExpense 4,739 4,689 4,171 1 14
NetInterestIncome 1,603 1,452 1,341 10 20
NonInterestIncome 637 790 627 19 2
TotalNetIncome 2,240 2,242 1,968 0 14
OperatingExpenses 1,286 1,146 1,064 12 21
EmployeeCost 615 585 520 5 18
OtherOperatingExp. 671 561 543 20 24
TotalIncome 6,979 6,931 6,139 1 14
TotalExpenditure 6,025 5,835 5,235 3 15
PreProvisioningProfit 954 1,096 904 13 6
Provisions 356 603 509 41 30
ProfitBeforeTax 598 493 395 21 51
Tax 150 90 80 67 88
NetProfit 448 403 315 11 42
EPSDiluted(Rs) 2.50 2.24 2.56 12 2

Advances 1,74,022 1,63,831 1,35,255 6 29
Deposits 2,34,453 2,22,395 1,93,149 5 21
TotalBusiness 4,08,475 3,86,225 3,28,404 6 24
Investments 66,498 67,162 62,123 1 7
TotalAssets 2,63,327 2,30,992 2,18,779 14 20
GrossNPA 3,318 4,511 5,110 26 35
NetNPA 1,756 2,811 3,755 38 53

KeyRatios(%) Q2FY16 Q1FY16 Q2FY15 QoQbps YoYbps
NIM 2.81 2.61 2.65 20 16
CostofDeposits 8.32 8.35 8.61 3 29
CostofFund 7.52 7.62 7.84 10 32
YieldonAdvances 12.33 12.21 12.80 12 47
YieldonInvestment 8.05 8.07 8.10 2 5
YieldonFund 10.07 9.98 10.20 9 13
CosttoIncome* 57.41 51.13 54.06 628 335
CredittoDeposit* 74.22 73.67 70.03 56 420
CASA 17.12 17.42 15.68 30 145
CAR 10.26 10.28 13.20 2 294
TierICapital 7.77 8.34 10.42 57 265
GNPA 1.89 2.72 3.72 83 183
NNPA 1.01 1.72 2.78 71 177
ProvisionCoverage 71.46 63.28 57.52 818 1394
ROE(Ann.) 11.66 10.76 9.86 90 180
ROA(Ann.) 0.71 0.65 0.59 6 12
Source:Company,IndiaNiveshResearch;*Calculated

LakshmiVilasBank(contd...) December22,2015|10

InitiatingCoverage(contd...)

OutlookandValuation:
LVBisontherighttrackofrecoverywithimprovementineconomy.WebelievethatLVBwill
continuewithitshealthygrowth,whilemaintainingitshealthycapitalisationandstableasset
quality over the medium term. Advances and deposits are also likely to grow at a healthy
pace. LVB has an average, but improving, earnings profile. The RoA and RoE were low at
around0.5%and5.8%,respectivelyasofFY14.However,underthenewmanagement,the
bankpostedadecentimprovementinFY15withReturnonEquity(RoE)of10.1%andReturn
on Assets (RoA) of 0.6%. We expect the return ratios (12.2% of RoE and 0.7% of RoA by
FY17E)toimprovefurtherdrivenbylowerprovisionsandimprovingoperationalefficiency.
WeexpectLVBsgrowthinincometooutpaceoperatingcosts,therebyleadingtoimproved
costefficiencies.ThemanagementhasguidedtoachieveRoAof1.0%byFY18E.
At CMP of Rs 97/, the stock is trading at P/ABV of 1.1x and 1.0x for FY16E and FY17E
respectively.Thevaluationisbelowitshistoricalaverageandtradingatadiscountofabout
15%toitsfiveyearsmeanvaluation.Inadditionto,therecentcorrectioninstockpricealso
givesgoodopportunitytoinvestorstoenterintothestock.Withimprovingreturnprofile,we
believeitprovidesattractiveriskrewardopportunity.HencewerecommendBUYratingon
thestockwithtargetpriceofRs113/,valuingitat1.3xP/ABVofFY17E.(+16%upside)
PeersComparisionValuation
Company
Name ROE(%) ROA(%) P/E P/ABV
FY15 FY16E FY17E FY15 FY16E FY17E FY15 FY16E FY17E FY15 FY16E FY17E
LVB 10.1 10.6 12.2 0.6 0.6 0.7 13.2 10.2 8.1 1.4 1.2 1.1
CUB* 16.7 15.7 16.7 1.5 1.5 1.6 13.0 12.1 10.1 2.2 1.9 1.7
SIB* 8.8 12.4 14.1 0.6 0.7 0.8 8.8 6.6 5.2 0.8 0.7 0.6
Source:*Bloomberg;IndiaNiveshResearch;CMPasofDecember24,2015

PeersComparisionFinancials(FY15)
Rsmn NII PAT EPS(Rs) ROA(%) ROE(%) BV(Rs) ABV(Rs) P/E P/BV P/ABV
LVB 5,267 1,323 7 0.6 10.1 86.9 70.0 13.2 1.1 1.4
CUB* 8,074 3,950 7 1.5 16.7 45.2 41.3 13.0 2.2 2.2
SIB* 13,662 3,072 2 0.6 8.8 26.6 24.0 8.8 0.9 0.8
Source:*Bloomberg;IndiaNiveshResearch;CMPasofDecember22,2015

Risks&Concerns:
Increaseininterestrate:
Wearenotbuildinginscenarioofanymaterialincreaseininterestratesfromhereonaswe
believethatitisveryunlikelyscenario.However,ifanythingofthissorthappensthenitwill
posearisktoourassumptions.
Significantdeteriorationinassetquality:
Any significant deterioration in asset quality will affect our provisioning and slippages
assumptionandhenceremainsrisktoourestimates.

Higherregionalexposuremaypronetogeopoliticalrisk
LVBlikealmostallotheroldprivatesectorbankshavehigherexposureintheSouthIndiaand
mainly in Tamilnadu (59% of total branches as of FY15). Any major change in the state
policiescanaffectourearningsestimatesforthebank.

KeyManRisk:
Theinvestmentthesisforthebankissensitivetochangesinthetopmanagementteam.

LakshmiVilasBank(contd...) December22,2015|11

InitiatingCoverage(contd...)

CompanyBackground:
LakshmiVilasBank(LVB)isasmalloldgenerationprivatesectorbankfromsouthIndiawith
largelyregionaloperationsandespeciallyinthestateofTamilnadu.Ithasbeenestablished
for more than 88 years and enjoys its own set of loyal customers and a network of 400+
branchesand800+ATMs,supervisedby8regionaloffices.Bankbranchesarespreadacross
15 states and 1 Union Territory, with deep penetration in Tamil Nadu (59% of total
branches).Goingforwardthebankisexpectedtogrowitspresenceinurbanandmetrocities
across PAN India. The bank is active across the entire spectrum of customer segments
retail,midmarketandcorporate.However,withfocusonfinetuningitsofferingstoattract
the youth, the bank is strengthening its technologyenabled products such as Internet and
mobilebanking.Itwas100%CoreBankingSolution(CBS)inyear2008.Inabidtoshedits
oldgeneration image, LVB has strengthened its top management and has undertaken a
rebrandingexercisetoevolveasanewagebank.Thebankhasalsoundertakenarebranding
exerciseaimedatmakingitmorecustomersfriendly.Thebankisabletogrowitsbusinessat
aCAGRof20%toRs383bnandNetProfitataCAGRof18%inthelast5Years.

MajorShareHoldersandShareholdingPattern:
The promoters list, as per Capitaline, includes 29 share holders (of which 7 of them are
corporatebodiesandrestsareindividuals)withtotalholdingof9.7%asofQ2FY16.
Top10ShareHolders
HolderName FilingDate %o/s InstitutionType Country
STUPENDORSTRADERSPVTLTD 30Jun15 4.5 Other INDIA
MNDASTUR&COPVTLTD 30Jun15 4.1 Corporation INDIA
MSDWMAURITIUSCOLTD 30Jun15 2.6 Corporation MAURITIUS
MAXNEWYORKLIFEINSCO 30Jun15 2.4 InsuranceCompany INDIA
JUPITERCAPITALPVTLTD 30Jun15 2.1 Other INDIA
MANKEKARKEDARSHIVANAND 30Jun15 2.1 n/a n/a
PRADEEPKR 30Jun15 1.9 n/a n/a
PRANAVAELECTRONICSPVT 30Jun15 1.9 Corporation INDIA
INDIADEEPVALUEFUND 30Jun15 1.8 n/a n/a
ALBULAINVESTMENTFUNDLTD 30Jun15 1.7 Other MAURITIUS
Source:Bloomberg;IndiaNiveshResearch

TrendinShareHoldingPattern(QoQ)
100%

80%

60%

40%

20%

0%
Q1FY13

Q2FY13

Q3FY13

Q4FY13

Q1FY14

Q2FY14

Q3FY14

Q4FY14

Q1FY15

Q2FY15

Q3FY15

Q4FY15

Q1FY16

Q2FY16

Promoter FII DII Others

Source:Company,IndiaNiveshResearch

LakshmiVilasBank(contd...) December22,2015|12

InitiatingCoverage(contd...)

StandaloneFinancialStatements:
IncomeStatement(Rsmn) FY13 FY14 FY15 FY16E FY17E Ratios
InterestIncome 17,605 19,840 22,145 25,872 29,644 Persharedata(Rs) FY13 FY14 FY15 FY16E FY17E
InterestExpense 13,685 14,979 16,879 19,352 21,959 EPS 9.4 6.1 7.4 9.6 11.9
NetInterestIncome 3,920 4,860 5,267 6,521 7,685 DPS 3.0 1.0 2.0 2.2 2.5
NonInterestIncome 1,971 2,180 2,840 3,184 3,870 BV 104.0 108.0 86.9 93.6 102.6
NetIncome 5,891 7,040 8,107 9,704 11,555 ABV 74.9 62.5 70.0 82.1 91.3
OperatingExpenses 3,379 3,950 4,343 5,193 6,095
TotalIncome 19,576 22,019 24,986 29,056 33,514 Valuation(%)
TotalExpenditure 17,065 18,929 21,221 24,544 28,054 P/E 8.9 11.3 12.1 9.3 7.5
PreProvisioningProfit 2,511 3,090 3,764 4,512 5,460 P/BV 0.8 0.6 1.0 1.0 0.9
Provisions 1,134 2,686 1,882 2,066 2,412 P/ABV 1.1 1.1 1.3 1.1 1.0
ProfitBeforeTax 1,378 404 1,882 2,446 3,049 DivYield 3.6 1.4 2.2 2.5 2.8
Tax 462 193 559 727 906
NetProfit 916 597 1,323 1,719 2,143 Spreads(%)
YieldonAdvances 12.7 12.9 11.7 11.5 11.3
YieldonInvestments 7.8 7.6 8.1 7.9 7.7
BalanceSheet(RsMn) FY13 FY14 FY15 FY16E FY17E YieldonFunds 11.5 11.5 10.8 10.6 10.4
CostofDeposits 8.7 8.4 8.0 0.0 0.0
Liabilities CostofBorrowings 13.1 14.2 13.4 0.0 0.0
Capital 975 976 1,792 1,795 1,795 CostofFunds 8.9 8.5 8.1 7.9 7.7
ReservesandSurplus 9,168 9,560 13,770 15,002 16,614
Deposits 156,190 185,729 219,642 256,405 297,840 Capital(%)
Borrowings 4,800 4,581 4,581 6,603 7,774 CAR 12.3 10.9 11.3 10.5 10.0
OtherLiabilitiesandProvisions 5,534 5,685 7,270 8,061 8,908 TierI 9.2 7.9 9.3 8.6 8.2
TotalLiabilities 176,667 206,532 247,054 287,866 332,931 TierII 3.2 3.0 2.0 1.9 1.8
Assets
CashAndBalances 8,719 13,117 13,187 14,743 16,381 Asset(%)
Investments 43,245 56,887 61,038 69,972 79,790 GNPA 3.9 4.2 2.8 1.9 1.6
Advances 117,028 128,892 163,520 192,088 226,165 NNPA 2.4 3.4 1.9 1.1 0.9
FixedAssets 1,898 2,005 2,434 2,556 2,684 PCR 54.5 53.2 60.8 70.0 70.0
OtherAssets 5,776 5,630 6,875 8,507 7,911
TotalAssets 176,667 206,532 247,054 287,866 332,931 Management(%)
Credit/Deposit 74.9 69.4 74.4 74.9 75.9
Cost/Income 57.4 56.1 53.6 53.5 52.7
CASA 14.5 14.2 16.7 18.0 19.5

Earnings(%)
NIM 2.6 2.8 2.6 2.7 2.7
ROE 9.3 5.8 10.1 10.6 12.2
ROA 0.5 0.3 0.6 0.6 0.7

Liquidity(%)
C&B/D&B 5.4 6.9 5.9 5.6 5.4
C&B/Deposit 5.6 7.1 6.0 5.8 5.5
*C&B:Cash&BankBalance;D:Deposits;B:Borrowings;DD:DemandDeposits

GrowthRatios(%)
Advances 14.9 10.1 26.9 17.5 17.7
Deposits 10.7 18.9 18.3 16.7 16.2
TotalAssets 8.8 16.9 19.6 16.5 15.7
Networth 5.8 3.9 47.7 7.9 9.6
NII 5.6 24.0 8.4 23.8 17.9
PreProvisioningProfit 6.7 23.0 21.8 19.9 21.0
Provisions 3.6 136.9 29.9 9.7 16.7
NetProfit 14.4 34.9 121.7 30.0 24.6

Source:Company,IndiaNiveshResearch

LakshmiVilasBank(contd...) December22,2015|13

InitiatingCoverage

Disclaimer:ThisreporthasbeenpreparedbyIndiaNiveshSecuritiesLimited(INSL)andpublishedinaccordancewiththeprovisionsofRegulation18oftheSecuritiesandExchangeBoardofIndia
(ResearchAnalysts)Regulations,2014,forusebytherecipientasinformationonlyandisnotforcirculationorpublicdistribution.INSLincludessubsidiaries,groupandassociatecompanies,promoters,
directors,employeesandaffiliates.Thisreportisnottobealtered,transmitted,reproduced,copied,redistributed,uploaded,publishedormadeavailabletoothers,inanyform,inwholeorinpart,for
anypurposewithoutpriorwrittenpermissionfromINSL.Theprojectionsandtheforecastsdescribedinthisreportarebaseduponanumberofestimatesandassumptionsandareinherentlysubjectto
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forecastswerebasedwillnotmaterializeorwillvarysignificantlyfromactualresultsandsuchvariationswilllikelyincreaseovertheperiodoftime.Alltheprojectionsandforecastsdescribedinthis
report have been prepared solely by authors of this report independently. None of the forecasts were prepared with a view towards compliance with published guidelines or generally accepted
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Thisreportshouldnotbeconstruedasanoffertosellorthesolicitationofanoffertobuy,purchaseorsubscribetoanysecurities,andneitherthisreportnoranythingcontainedthereinshallformthe
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Exceptforthehistoricalinformationcontainedherein,statementsinthisreport,whichcontainwordssuchaswill,would,etc.,andsimilarexpressionsorvariationsofsuchwordsmayconstitute
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DisclosureofInterestStatement
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otherthaninvestmentbankingormerchantbankingorbrokerageservicesfromthesubjectcompany
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Definitionsofratings
BUY.Weexpectthisstocktodelivermorethan15%returnsoverthenext12months.
HOLD.Weexpectthisstocktodeliver15%to+15%returnsoverthenext12months.
SELL.Weexpectthisstocktodeliver<15%returnsoverthenext12months.
Ourtargetpricesareona12monthhorizonbasis.

Otherdefinitions
NR=NotRated.Theinvestmentratingandtargetprice,ifany,havebeenarrivedatduetocertaincircumstancesnotincontrolofINSL
CS=CoverageSuspended.INSLhassuspendedcoverageofthiscompany.
UR=UnderReview.Sucheinvestreviewhappenswhenanydevelopmentshavealreadyoccurredorlikelytooccurintargetcompany&INSLanalystis waitingforsome moreinformationtodraw
conclusiononrating/target.
NA=NotAvailableorNotApplicable.Theinformationisnotavailablefordisplayorisnotapplicable.
NM=NotMeaningful.Theinformationisnotmeaningfulandisthereforeexcluded.

ResearchAnalysthasnotservedasanofficer,directororemployeeofSubjectCompany

OneyearPricehistoryofthedailyclosingpriceofthesecuritiescoveredinthisnoteisavailableatwww.nseindia.comandwww.economictimes.indiatimes.com/markets/stocks/stockquotes.(Choose
nameofcompanyinthelistbrowsecompaniesandselect1yeariniconYTDinthepricechart)

IndiaNiveshSecuritiesLimited
ResearchAnalystSEBIRegistrationNo.INH000000511
601&602,SukhSagar,N.S.PatkarMarg,GirgaumChowpatty,Mumbai400007.
Tel:(022)66188800/Fax:(022)66188899
email:research@indianivesh.in|Website:www.indianivesh.in

LakshmiVilasBank December22,2015|14