3QFY2012 Result Update | Banking

February 8, 2012

United Bank of India

Performance Highlights

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

Source: Company, Angel Research;

ACCUMULATE
CMP Target Price
% chg (qoq) 7.1 7.3 81.1 3QFY11 560 387 163 % chg (yoy) 19.3 25.0 38.5

`74 `83 12 months

3QFY12 668 483 226

2QFY12 624 450 125

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 2,540 1.1 114/46 42,501 10 17,707 5,368 UBOI.BO UNTDB@IN

For 3QFY2012, United Bank of India (UBI) registered a strong set of numbers. The companys net profit grew by 38.5% yoy to `226cr, which was significantly above our estimate due to higher margin expansion and lower provisioning than estimated by us. We recommend Accumulate on the stock.
NIM rises sequentially; Asset quality improves on expected lines: For 3QFY2012, the banks advances grew by 8.8% qoq (up 16.6% yoy) to `59,100cr and deposits grew by 5.8% qoq (up 13.3% yoy) to 82,815cr. Bulk deposits as of 3QFY2012 stood at 19.7% (down from 24.9% in 3QFY2011). Savings deposit growth grew by 3.9% qoq (up 10.6% yoy) and current deposits grew by 12.0% qoq (up 17.1% yoy). CASA ratio at the end of 3QFY2012 stood at 39.8% (39.9% in 2QFY2012 and 40.2% in 3QFY2011). During the quarter, the banks cost of deposits increased marginally by 6bp qoq to 6.7%. However, the bank was able to increase its yield on advances by 28bp qoq to 12.0%, leading to a sequential expansion of 22bp in reported NIM. Non-interest income grew by muted 0.7% qoq (up 12.0% yoy) to `163cr, as higher CEB income (up 5.6% qoq) during the quarter was negated by lower treasury gains (down 4.0% qoq). The banks slippages (`362cr) came down on expected lines in 3QFY2012 after chunky NPAs witnessed in 2QFY2012. Annualized slippage ratio for the quarter stood at 2.7%, down from 4.6% levels in 2QFY2012. Gross NPA ratio and net NPA ratio improved to 3.3% and 2.0% in 3QFY2012 from 3.5% and 2.2% in 2QFY2012, respectively. As of 3QFY2012, provision-to-coverage ratio including technical write-offs stood at 66.5% (65.0% in 2QFY2012).

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 85.5 2.0 1.0 11.6

Abs. (%) Sensex UBI*

3m 0.2 3.4

1yr (1.0) (18.0)

3yr 89.3 -

Outlook and valuation: We believe the bank has several levers for structurally
improving its ROA, but execution risks in terms of improving yields while maintaining the asset quality continue to remain an investment concern on the stock. That said, the bank is trading at inexpensive valuations of 0.6x FY2013E ABV (one of the lowest in the industry). The banks peers are trading at 0.7x-0.8x FY2013 ABV, in spite of having similar and in some cases much lower CASA ratios. We value the stock at 0.7x FY2013E ABV and, hence, recommend Accumulate on the stock with target price of `83.

*Note: Listed in March, 2010

Key financials
Y/E March (` cr) NII % chg Net profit available to eq. shareholders % chg NIM (%) EPS (`) P/E (x) P/ABV (x) RoA (%) RoE (%)
Source: Company, Angel Research

FY2010 1,391 19.8 305 166.1 2.1 9.6 7.4 0.8 0.5 11.6

FY2011 2,169 55.9 457 49.7 2.7 13.3 5.3 0.7 0.6 14.1

FY2012E 2,549 17.5 565 23.6 2.8 16.4 4.3 0.7 0.7 15.0

FY2013E 2,859 12.1 608 7.5 2.8 17.6 4.0 0.6 0.6 14.4

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

Varun Varma
022 3935 7800 Ext: 6847 varun.varma@angelbroking.com

Please refer to important disclosures at the end of this report

United Bank of India | 3QFY2012 Result Update

Exhibit 1: 3QFY2012 performance

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 writ.-off acc - Others Operating income Operating expenses - Employee expenses - Other Opex Pre-provision Profit Provisions & Contingencies - Provisions for NPAs PBT Provision for Tax PAT Effective Tax Rate (%)
Source: Company, Angel Research

3QFY12 2QFY12 % chg (qoq) 3QFY11 % chg (yoy) 2,051 1,567 482 2 1,383 668 163 118 46 45 16 55 831 348 226 122 483 199 93 284 58 226 20.4 1,940 1,467 463 5 5 1,316 624 162 115 44 47 16 55 786 335 217 118 450 260 118 191 66 125 34.6 5.7 6.8 3.9 (45.7) (100.0) 5.1 7.1 0.7 2.7 5.6 (4.0) 2.2 0.5 5.8 3.7 3.9 3.4 7.3 (23.2) (20.9) 48.9 (12.2) 81.1 (1419)bp 1,631 1,206 421 1 3 1,071 560 146 120 43 25 22 56 705 319 207 112 387 167 56 220 57 163 25.9 25.8 29.9 14.4 217.9 (100.0) 29.1 19.3 12.0 (2.1) 7.4 78.9 (24.2) (0.7) 17.8 9.0 9.2 8.8 25.0 19.6 65.5 29.0 1.7 38.5 (548)bp

Exhibit 2: 3QFY2012 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 668 163 831 348 483 199 284 58 226

Estimates 638 150 788 352 436 231 205 67 138

% chg 4.7 8.6 5.4 (1.3) 10.9 (13.7) 38.5 (12.8) 63.2

February 8, 2012

United Bank of India | 3QFY2012 Result Update

Exhibit 3: 3QFY2012 performance

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 (%) NPA to avg. assets (%)
Source: Company, Angel Research

3QFY12 2QFY12 %chg (qoq) 3QFY11 59,100 82,815 71.4 7,293 25,646 32,939 39.8 12.6 8.4 6.7 12.0 7.8 3.4 41.8 1,939 3.3 1,178 2.0 66.5 2.7 0.4 54,304 78,244 69.4 6,513 24,693 31,206 39.9 13.0 8.9 6.6 11.7 7.8 3.2 42.7 1,908 3.5 1,202 2.2 65.0 4.6 0.5 8.8 5.8 196bp 12.0 3.9 5.6 (11)bp (32)bp (57)bp 6bp 28bp 2bp 22bp (83)bp 1.6 (20)bp (2.0) (20)bp 150bp (193)bp (12)bp 50,679 73,106 69.3 6,229 23,194 29,423 40.2 12.5 8.2 5.7 10.4 7.8 3.2 45.2 1,485 2.9 763 1.5 71.2 1.9 0.3

%chg (yoy) 16.6 13.3 204bp 17.1 10.6 11.9 (47)bp 12bp 15bp 100bp 159bp 4bp 18bp (335)bp 30.6 35bp 54.4 49bp (470)bp 82bp 13bp

Strong growth in loan book in 3QFY2012

For 3QFY2012, the banks advances grew by 8.8% qoq (up 16.6% yoy) to `59,100cr and deposits grew by 5.8% qoq (up 13.3% yoy) to 82,815cr. Bulk deposits as of 3QFY2012 stood at 19.7% (down from 24.9% in 3QFY2011). Savings deposit grew by 3.9% qoq (up 10.6% yoy) and current deposits grew by 12.0% qoq (up 17.1% yoy). CASA ratio at the end of 3QFY2012 stood at 39.8% (39.9% in 2QFY2012 and 40.2% in 3QFY2011). Management has guided for loan growth of 18% for FY2012.

February 8, 2012

United Bank of India | 3QFY2012 Result Update

Exhibit 4: Advances growth strong during 3QFY2012

Adv. qoq chg (%) 12.0 10.0 8.0 6.0 4.0 2.0 (2.0) (4.0) Dep. qoq chg (%) CDR (%, RHS) 71.4 72.0

Exhibit 5: CASA growth has moderated

CASA ratio 41.2 40.8 29.4 22.2 18.3 13.8 11.9 CASA yoy growth (%, RHS) 35.0 30.0 25.0 20.0 15.0 10.0 5.0 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12

69.3

69.4 68.7

70.0

40.4 40.0

9.5 5.9

5.6 6.5

3.2 1.5

8.8 5.8

68.2

68.0

40.2

40.8

40.2

39.9

(1.7) (1.0)

66.0

39.2

3QFY11 4QFY11 1QFY12 2QFY12 3QFY12

Source: Company, Angel Research

Source: Company, Angel Research

NIM expands by 22bp on the back of better yields

During the quarter, the banks cost of deposits increased marginally by 6bp qoq to 6.7%. However, the bank was able to increase its yield on advances by 28bp qoq to 12.0%, leading to a sequential expansion of 22bp in reported NIM. Management sounded confident of maintaining NIM above 3% for the coming quarters as well.

Exhibit 6: Yield on advances up 28bp qoq...

12.60 12.00 11.40 10.80 10.20 9.60 9.00 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12 10.39 10.71 11.16 11.70 11.98

Exhibit 7: ...leading to 22bp qoq NIM expansion

(%)
3.50 3.20 3.00 3.13 3.02 3.16 3.38

2.50

2.00 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12

Source: Company, Angel Research

Source: Company, Angel Research

Non-interest income remains muted for 3QFY2012

Non-interest income grew by muted 0.7% qoq (up 12.0% yoy) to `163cr, as higher CEB income (up 5.6% qoq) during the quarter was negated by lower treasury gains (down 4.0% qoq). Management expects higher fee income from processing and locker charges in 4QFY2012 and sounded confident of higher recoveries going forward.

Slippages down for 3QFY2012 on expected lines

The banks slippages (`362cr) came down on expected lines in 3QFY2012 after chunky NPAs witnessed in 2QFY2012. Annualized slippage ratio for the quarter stood at 2.7%, down from 4.6% levels in 2QFY2012. Gross NPA ratio and net NPA ratio improved to 3.3% and 2.0% in 3QFY2012 from 3.5% and 2.2% in
February 8, 2012

39.8

39.6

United Bank of India | 3QFY2012 Result Update

2QFY2012, respectively. As of 3QFY2012, provision-to-coverage ratio including technical write-offs stood at 66.5% (65.0% in 2QFY2012). The banks outstanding restructured book as of 3QFY2012 sands at `2,255cr. Kingfisher airlines account was performing as of 3QFY2012, but it might slip into NPA during 4QFY2012 (total exposure of `291cr). Also, the bank has exposure to Rajasthan SEB (~`400cr), which might come up for restructuring during 4QFY2012.

Exhibit 8: NPA ratios on the higher side

Gross NPAs (%) 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 72.1 71.2 Net NPAs (%) 70.2 65.0 PCR (%, RHS) 80.0 66.5 70.0 60.0 50.0

Exhibit 9: Slippages dip after surging in 2QFY2012

Slippages (%) 5.0 4.0 3.0 2.0 1.0 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12 0.3 0.6 0.5 0.5 0.4 0.4 0.2 0.6 Credit cost (%, RHS) 0.8

2.9 1.5

2.5 1.4

2.9 1.7

3.5 2.2

3.3 2.0

1.9

3.2

2.9

4.6

40.0 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12

2.7

Source: Company, Angel Research

Source: Company, Angel Research

Exhibit 10: Improving cost-to-income ratio

Cost-to-income ratio (%) 48.0 46.0 44.0 42.0 1.6 1.5 1.4 1.5 1.7 Opex to average assets (%, RHS) 1.8 1.7 1.6 1.5

Exhibit 11: Tier-1 ratio above 8% for the bank

Tier-I CAR (%) 16.0 12.0 4.3 8.0 4.0 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12 8.2 8.9 9.1 8.9 8.4 12.5 13.1 4.2 Tier-II CAR (%) 13.2 4.1 13.0 4.0 12.6 4.3

45.2

46.5

43.5

42.7

41.8

40.0 38.0

1.4 1.3

3QFY11 4QFY11 1QFY12 2QFY12 3QFY12

Source: Company, Angel Research

Source: Company, Angel Research

February 8, 2012

United Bank of India | 3QFY2012 Result Update

Investment arguments
Structurally strong CASA than peers
UBI has historically had a strong CASA ratio. The banks average CASA ratio during FY200510 has been 41.6%. Even during 3QFY2012, the bank had maintained a strong CASA ratio of ~40%, which is the highest in its peers group, which consists of banks like UCO Bank, Allahabad Bank, Dena Bank and Syndicate Bank. Of the total CASA deposits, saving deposits, which are less volatile, accounted for 31.0% of the total deposits, while current deposits accounted for 8.8%. This high proportion of CASA deposits is mainly because of a large retail customer base spread across the eastern and northeastern regions. Of the total branch network of 1,649, 81% is concentrated in the eastern and northeastern regions. Moreover, 59% of UBIs branches are located in rural and semi-urban areas, giving the bank an access to low-cost deposits.

leading to higher NIM

In 4QFY2010, UBI reported NIM of 2.48%. However, measures taken by management in the form of shedding high-cost bulk deposits (19.7% in 3QFY2012 as against 24.9% a year ago), improvement in CASA ratio by 170bp from 38.1% in 4QFY2010 to 39.8% in 3QFY2012, shedding of low-yielding loans (~`1,700cr during FY2011) and a substantial increase in CD ratio (664 bp increase in FY2011) have resulted in a sharp rise in NIM by 90bp to 3.4% in 3QFY2012. Further, we believe with a strong CASA ratio, the bank is better placed than its peers to sustain its NIM, going forward.

February 8, 2012

United Bank of India | 3QFY2012 Result Update

Investment concerns
Lower other income compared to peers
During FY2011, other income excluding treasury grew moderately by 16% yoy despite 26.4% yoy growth in overall advances and 35.4% yoy rise in retail advances. Other income excluding treasury as a percentage of average assets remained stable at 0.53% in FY2011 (0.54% in FY2010), which is on the lower side. Even after factoring in a 14.4% CAGR over FY201113E in other income excluding treasury and taking into account revision in fee charges during 1QFY2012, the proportion of other income excluding treasury to average assets is expected to remain relatively low at 0.5% by FY2013E.

Outlook and valuation

We believe the bank has several levers for structurally improving its ROA, but execution risks in terms of improving yields while maintaining the asset quality continue to remain an investment concern on the stock. That said, the bank is trading at inexpensive valuations of 0.6x FY2013E ABV (one of the lowest in the industry). The banks peers are trading at 0.7x-0.8x FY2013 ABV, in spite of having similar and in some cases much lower CASA ratios. We value the stock at 0.7x FY2013E ABV and, hence, recommend an Accumulate rating on the stock with a target price of `83.

February 8, 2012

United Bank of India | 3QFY2012 Result Update

Exhibit 12: Key assumptions

Particulars (%) Credit growth Deposit growth CASA ratio NIMs Other income growth Growth in staff expenses Growth in other expenses Slippages
Source: Angel Research

Earlier estimates FY2012 16.0 10.0 42.1 2.7 0.4 10.0 3.4 FY2013 13.0 13.0 42.2 2.7 (1.4) 15.0 15.0 3.4

Revised estimates FY2012 16.0 10.0 42.1 2.8 5.5 10.0 3.3 FY2013 16.0 16.0 41.1 2.8 (2.0) 15.0 15.0 3.0

Exhibit 13: Change in estimates

FY2012 Particulars (` cr) NII Non-interest income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT
Source: Angel Research

FY2013 Var. (%) 2.6 5.0 3.1 5.5 (3.7) 16.3 7.5 20.5 Earlier Revised estimates estimates 2,775 631 3,406 1,588 1,818 958 860 279 581 2,859 658 3,517 1,588 1,929 906 1,023 332 691 Var. (%) 3.0 4.3 3.3 6.1 (5.5) 19.0 19.0 19.0

Earlier Revised estimates estimates 2,486 640 3,126 1,381 1,745 942 803 260 542 2,549 672 3,221 1,381 1,840 907 933 280 653

Exhibit 14: P/ABV band

Price (`) 160 140 120 100 80 60 40 20 0 0.6x 0.75x 0.9x 1.05x 1.2x

Jul-10

Mar-10

Mar-11

Jul-11

Nov-10

Source: Company, Angel Research;

February 8, 2012

Nov-11

Mar-12

United Bank of India | 3QFY2012 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 Buy Neutral Neutral Buy Neutral Buy Accumulate Neutral Accumulate Neutral Neutral Accumulate Reduce Neutral Buy Neutral Neutral Neutral Accumulate Neutral Accumulate Accumulate Neutral Neutral Neutral Accumulate Reduce Reco. CMP (`) 1,127 413 508 920 26 334 177 115 800 368 53 524 99 488 81 106 241 98 823 300 982 2,175 109 75 238 74 60 Tgt. price (`) 1,392 1,104 398 186 907 553 84 95 877 1,079 2,364 83 54 Upside (%) 23.5 20.0 19.4 5.4 13.3 5.5 (14.4) 17.5 6.7 9.9 8.7 12.5 (10.0) FY2013E P/ABV (x) 1.8 1.1 3.4 1.7 1.3 2.1 0.8 0.8 1.1 1.1 0.8 1.0 0.9 0.8 0.6 0.7 1.0 0.6 0.8 0.8 1.1 1.8 0.7 0.9 1.0 0.6 0.8 FY2013E Tgt P/ABV (x) 2.3 3.5 2.5 0.9 1.3 1.1 0.8 0.7 0.9 1.3 1.9 0.7 0.8 FY2013E P/E (x) 9.8 8.9 17.7 14.4 7.8 11.1 5.0 5.4 6.1 7.7 5.4 6.7 6.3 5.3 3.8 5.3 5.8 5.1 4.8 6.6 6.2 10.5 4.6 4.8 6.0 4.2 6.7 FY2011-13E EPS CAGR (%) 18.2 16.2 30.4 19.5 13.5 20.1 9.1 (2.9) 9.8 2.3 26.3 (7.4) (25.1) (1.8) 7.3 8.9 3.6 5.3 16.7 (5.9) 6.4 26.0 13.7 10.9 0.1 15.3 0.7 FY2013E RoA (%) 1.5 1.2 1.8 1.4 0.9 1.4 0.9 0.9 1.1 0.6 0.7 0.8 0.4 0.8 0.8 0.6 1.2 0.5 1.4 0.7 1.0 0.8 0.7 0.6 0.7 0.6 0.4 FY2013E RoE (%) 20.2 13.2 21.0 14.5 17.5 20.6 17.3 15.1 19.3 13.7 16.9 15.8 11.4 15.5 16.1 13.4 18.2 12.8 19.0 11.3 19.4 17.9 16.5 15.4 15.8 14.4 11.1

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

February 8, 2012

United Bank of India | 3QFY2012 Result Update

Income statement
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 (%) Preference Dividend PAT for Eqty.SH - YoY Growth (%) FY07 1,150 13.7 348 (22.1) 1,498 2.8 778 (4.3) 719 11.7 415 13.9 304 8.8 37 12.1 267 30.7 267 30.7 FY08 905 (21.3) 466 33.9 1,370 (8.5) 903 16.0 467 (35.1) 288 (30.7) 179 (41.1) 34 19.1 145 (45.7) 145 (45.7) FY09 1,162 28.4 491 5.5 1,652 20.6 1,045 15.7 607 30.0 431 49.7 176 (1.6) 62 35.0 115 (20.9) 115 (20.9) FY10 1,391 19.8 559 13.8 1,950 18.0 1,074 2.8 876 44.2 465 8.0 411 132.6 88 21.5 322 181.0 17 305 166.1 FY11 2,169 55.9 637 14.0 2,806 43.9 1,299 21.0 1,507 72.1 838 80.1 669 63.0 145 21.7 524 62.5 67 457 49.7 FY12E 2,549 17.5 672 5.5 3,221 14.8 1,381 6.3 1,840 22.1 907 8.2 933 39.5 280 30.0 653 24.7 88 565 23.6 FY13E 2,859 12.1 658 (2.0) 3,517 9.2 1,588 15.0 1,929 4.8 906 (0.2) 1,023 9.6 332 32.4 691 5.8 84 608 7.5

Balance sheet
Y/E March (` cr) Share Capital Equity Preference 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 (%) FY07 1,532 1,532 883 37,167 27.1 400 700 1,628 42,310 2,686 1,599 14,602 22,156 42.7 605 661 42,310 27.3 FY08 1,532 1,532 1,129 26.4 1,162 1,275 2,242 5,249 623 FY09 1,782 1,532 250 1,295 16.1 457 1,525 2,436 4,532 1,878 FY10 866 316 550 3,037 68,180 25.0 915 1,525 2,481 77,005 4,707 1,671 26,068 42,330 19.6 651 1,578 77,005 24.1 FY11 1,144 344 800 3,877 77,845 14.2 2,887 1,525 2,763 90,041 5,943 1,385 26,259 53,502 26.4 819 2,133 90,041 16.9 FY12E 1,144 344 800 4,302 85,629 10.0 2,968 1,769 3,117 5,566 1,979 26,107 62,063 16.0 873 2,343 9.9 FY13E 1,144 344 800 4,770 99,330 16.0 3,433 2,052 3,699 6,456 2,289 30,001 71,993 16.0 979 2,710 15.7

46,971 54,536

54,311 62,031

98,930 114,428

18,515 17,924 27,858 35,394 25.7 623 1,443 28.4 27.0 624 1,679 14.2

54,311 62,031

98,930 114,428

February 8, 2012

10

United Bank of India | 3QFY2012 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 3.0 1.1 1.9 0.1 2.1 0.8 2.9 2.1 0.8 0.1 0.7 0.7 21.0 14.8 1.9 0.6 1.3 0.4 1.6 0.6 2.2 1.9 0.4 0.1 0.3 0.3 23.7 7.1 2.0 0.7 1.3 0.4 1.6 0.5 2.1 1.8 0.3 0.1 0.2 0.2 25.7 5.1 2.0 0.7 1.3 0.3 1.6 0.5 2.1 1.5 0.6 0.1 0.5 0.0 0.4 26.4 11.6 2.60 1.00 1.59 0.24 1.83 0.53 2.36 1.56 0.80 0.17 0.63 0.08 0.55 25.84 14.14 2.7 1.0 1.7 0.2 1.9 0.5 2.4 1.5 1.0 0.3 0.7 0.1 0.6 25.0 15.0 2.7 0.8 1.8 0.1 1.9 0.5 2.4 1.5 1.0 0.3 0.6 0.1 0.6 25.3 14.4 40.7 6.1 0.4 75.0 5.3 0.4 94.9 5.2 7.4 0.8 2.8 5.3 0.7 3.1 4.3 0.7 4.9 4.0 0.6 4.9 1.7 11.6 0.3 0.9 13.4 0.3 0.7 13.6 0.0 9.6 86.3 2.0 13.3 101.2 2.2 16.4 104.1 3.5 17.6 114.4 3.5 3.6 1.5 2.6 0.6 59.2 2.7 1.1 1.4 0.5 59.8 2.8 1.5 2.9 0.3 48.5 3.2 1.8 2.7 0.4 68.0 2.5 1.4 2.3 0.5 72.1 3.9 2.3 3.3 0.7 65.0 5.1 2.5 3.0 0.7 65.0 42.0 59.6 12.0 7.7 38.6 59.3 11.2 6.4 37.8 64.9 13.3 7.6 38.1 62.1 12.8 8.2 40.8 68.7 13.1 8.9 42.1 72.5 13.2 8.9 41.1 72.5 12.7 8.4 3.1 52.0 0.7 14.8 1.9 65.9 0.3 7.1 2.1 63.3 0.2 5.1 2.1 55.1 0.5 11.6 2.7 46.3 0.6 14.1 2.8 42.9 0.7 15.0 2.8 45.2 0.6 14.4 FY07 FY08 FY09 FY10 FY11 FY12E FY13E

Preference Dividend
ROA after Pref Div Leverage RoE

February 8, 2012

11

United Bank of India | 3QFY2012 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

United Bank of India 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 8, 2012

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