4QFY2012 Result Update | Banking

May 10, 2012

Canara Bank
Performance Highlights

Particulars (` cr) NII Pre-prov. profit PAT 4QFY12 2,040 1,491 829 3QFY12 1,919 1,577 876 % chg (qoq) 6.3 (5.5) (5.3) 4QFY11 1,973 1,695 899 % chg (yoy) 3.4 (12.0) (7.8)

BUY
CMP Target Price
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 18,553 1.0 592/349 82,491 10 16,420 4,966 CNBK.BO CBK@IN

`419 `522
12 months

Source: Company, Angel Research

Canara Bank reported a weak set of numbers for 4QFY2012, with net profit declining by 7.8% yoy to `829cr. The companys bottom line was dented by subdued net interest income (in-line with our expectation), yoy decline in fee income (higher-than-expected) and higher operating expenses. We maintain our Buy recommendation on the stock. Business growth remains moderate; Slippages increase sequentially: The banks overall business growth remained moderate, with advances growth of 9.4% yoy, largely aided by agriculture, infrastructure and industrials segments. Deposits grew by 11.3% yoy. On the liabilities front, calculated CASA ratio declined by 393bp yoy to 24.3% due to a 39.5% yoy decline in current deposits despite moderate 10.5% growth in saving deposits. Reported NIM for the bank remained flat sequentially during 4QFY2012, as rise in yield on advances by 8bp qoq to 10.93% was completely offset by a similar rise in cost of deposits to 7.35%. Commission and brokerage income declined during the quarter by 13.7% yoy to `215cr. Gross and net NPA ratio for the bank remained at nearly the same levels on a qoq basis. Provision coverage ratio for the quarter also remained flat sequentially at 67.6%. During 4QFY2012, the bank restructured `4,504cr worth of accounts, of which `1,475cr were on account of restructuring of Air India. The outstanding restructured book as of 4QFY2012 stands at `7,986cr. The bank did not restructure any SEB accounts during 4QFY2012, but expects `5,385cr of SEB restructuring to occur in 1QFY2013, which would include discoms from Rajasthan, Haryana, U.P. and Gujarat. Outlook and valuation: Although a weakening domestic macro-economic environment and consequently slower credit growth and ailing asset quality are likely to cap near-term upsides, cyclically moderate valuations of 0.7x FY2014E ABV vs. five-year average of 1.0x and range of 0.7-1.4x in our view largely factor in the negatives. Hence, we recommend Buy on the stock with a target price of `522. Key financials
Y/E March (` cr) NII % chg Net profit % chg NIM (%) EPS (`) P/E (x) P/ABV (x) RoA (%) RoE (%)
Source: Company, Angel Research

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 67.7 11.0 14.6 6.7

Abs. (%) Sensex Canara Bank

3m (7.5) (20.4)

1yr (11.3) (27.3)

3yr 38.3 86.4

FY2011 7,823 37.7 4,026 33.2 2.7 90.9 4.6 1.0 1.3 26.4

FY2012 7,689 (1.7) 3,283 (18.5) 2.2 74.1 5.7 0.9 0.9 17.0

FY2013E 8,848 15.1 3,680 12.1 2.3 83.1 5.0 0.8 0.9 16.7

FY2014E 10,267 16.0 4,106 11.6 2.3 92.7 4.5 0.7 0.9 16.4

Vaibhav Agrawal
022 3935 7800 Ext: 6808 vaibhav.agrawal@angelbroking.com Varun Varma 022 3935 7800 Ext: 6847 varun.varma@angelbroking.com Sourabh Taparia 022 3935 7800 Ext: 6872 sourabh.taparia@angelbroking.com

Please refer to important disclosures at the end of this report

Canara Bank | 4QFY2012 Result Update

Exhibit 1: 4QFY2012 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 - Recov. from written off a/cs - Others Operating income Operating expenses - Employee expenses - Other Opex Pre-provision Profit Provisions & Contingencies - Provisions for NPAs - Other Provisions PBT Provision for Tax PAT Effective Tax Rate (%)
Source: Company, Angel Research

4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy) 8,267 6,189 1,908 170 (0) 6,227 2,040 769 674 215 95 98 361 2,809 1,319 826 493 1,491 462 390 72 1,029 200 829 19.4 7,812 5,946 1,810 56 0 5,894 1,919 779 622 205 157 68 349 2,698 1,121 713 408 1,577 501 142 359 1,076 200 876 18.6 5.8 4.1 5.4 201.5 (107.1) 5.7 6.3 (1.3) 8.4 4.9 (39.5) 44.1 3.5 4.1 17.7 15.9 20.7 (5.5) (7.9) 174.6 (80.1) (4.3) (5.3) 84bp 6,418 4,823 1,521 73 1 4,445 1,973 933 951 249 (18) 327 375 2,906 1,211 783 428 1,695 546 541 5 1,149 250 899 21.8 28.8 28.3 25.4 132.7 (103.4) 40.1 3.4 (17.5) (29.1) (13.7) NA (70.0) (3.6) (3.3) 8.9 5.6 15.0 (12.0) (15.5) (27.9) 1,340.8 (10.4) (20.0) (7.8) (233)bp

Exhibit 2: 4QFY2012 Actual vs. Estimates

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

Actual 2,040 769 2,809 1,319 1,491 462 1,029 200 829

Estimates 2,019 861 2,880 1,196 1,685 391 1,293 313 981

Var (%) 1.0 (10.6) (2.5) 10.3 (11.5) 18.0 (20.4) (36.1) (15.4)

May 10, 2012

Canara Bank | 4QFY2012 Result Update

Exhibit 3: 4QFY2012 performance analysis

Particulars Balance sheet Advances (` cr) Deposits (` cr) Credit-to-Deposit Ratio (%) Current deposits (` cr) Saving deposits (` cr) CASA deposits (` cr) Calculated CASA ratio (%) CAR (%) Tier 1 CAR (%) Profitability Ratios (%) Cost of deposits Yield on advances Yield on investments Yield on funds Cost of funds Reported NIM Cost-to-income ratio Asset quality Gross NPAs (` cr) Gross NPAs (%) Net NPAs (` cr) Net NPAs (%) PCR incl. tech. w/offs (%) Slippage ratio (%) NPA to avg. assets (%)
Source: Company, Angel Research

4QFY12 232,490 327,054 71.1 14,819 64,792 79,611 24.3 13.8 10.4 7.4 10.9 8.0 9.0 6.7 2.5 46.9 4,032 1.7 3,386 1.5 67.6 2.1 0.4

3QFY12 219,253 315,456 69.5 12,059 63,361 75,420 23.9 13.2 9.5 7.3 10.9 7.9 8.8 6.6 2.5 41.6 3,999 1.8 3,265 1.5 67.9 1.6 0.2

%chg (qoq) 6.0 3.7 158bp 22.9 2.3 5.6 43bp 54bp 87bp 8bp 8bp 3bp 16bp 13bp (2)bp 539bp 0.8 (8)bp 3.7 (3)bp (27)bp 49bp 27bp

4QFY11 212,467 293,973 72.3 24,500 58,617 83,117 28.3 15.4 10.9 5.8 9.7 7.7 8.1 5.4 3.1 41.7 3,089 1.5 2,347 1.1 73.0 4.4 0.7

%chg (yoy) 9.4 11.3 (119)bp (39.5) 10.5 (4.2) (393)bp (162)bp (52)bp 155bp 120bp 24bp 82bp 135bp (62)bp 527bp 30.5 28bp 44.3 35bp (540)bp (224)bp (26)bp

Business growth remains moderate; NIM remains flat

The banks overall business growth remained moderate, with advances growing by 9.4% yoy and deposits growing by 11.3% yoy. Growth in advances was largely aided by segments such as agriculture, infrastructure and industrials, which grew by 21.4%, 16.5% and 15.4% yoy, respectively. While segments such retail and SME witnessed a decline of 1.9% and 7.4% yoy, respectively. On the liabilities front, the volatile current account deposits decreased by 39.5% yoy (up 22.3% qoq on account of 4Q phenomena), while saving account deposits witnessed an increase of 10.5% yoy (2.3% qoq). Consequently, calculated CASA ratio for the bank declined by 393bp yoy to 24.3% (up by 43bp sequentially).

May 10, 2012

Canara Bank | 4QFY2012 Result Update

Exhibit 4: Business growth remains moderate

Adv. yoy chg (%) 28.0 21.0 14.0 72.3 71.6 69.7 71.1 69.5 72.0 Dep. yoy chg (%) CDR (%, RHS) 74.0

Exhibit 5: CASA decline continues in 4QFY2012

Calculated CASA ratio 30.0 21.8 27.5 9.7 25.0 70.0 12.2 (4.2) 20.0 10.0 (10.0) 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12 CASA yoy growth (%, RHS) 30.0

25.5 25.3

23.7 25.7

23.8 25.4

15.5 19.7

9.4 11.3

28.3

25.4

25.8

23.9

4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

Source: Company, Angel Research

68.0

20.0

Source: Company, Angel Research

The banks reported NIM remained flat sequentially during 4QFY2012, as the 8bp qoq rise in yield on advances to 10.93% was completely offset by a similar rise in cost of deposits to 7.35%. Management attributed the declining trend in CASA ratio mostly to the flight of saving deposits to higher yielding term deposits and difficulty in sustaining the current account balances due to prevalent domestic macro headwinds.

Exhibit 6: YoA up by 8bp qoq, but similar rise in COD...

(%) 11.00 10.00 9.00 8.00 7.00 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12 9.73 10.50 10.72 10.85 10.93

Exhibit 7: ...results in flat reported NIM

(%) 3.50 3.00 2.50 2.00 1.50 1.00 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12 2.42 3.12 2.64 2.52 2.50

Source: Company, Angel Research

Source: Company, Angel Research

Fee income declines on a yoy basis on account of a dip in commission and brokerage income
Commission and brokerage income declined during the quarter by 13.7% yoy to `215cr. Recoveries from written-off accounts, which halved sequentially in the last quarter to `68cr, picked up momentum once again as they grew by 44.1% sequentially. Treasury income posted a healthy performance growing to `95cr in 4QFY2012 from loss of `18cr in 4QFY2011. Overall, core fee income declined by 29.1% yoy to `674cr.

May 10, 2012

24.3

7.0

22.5

(1.4)

Canara Bank | 4QFY2012 Result Update

Exhibit 8: Fee income declines on a yoy basis during 4QFY2012

Particulars (` cr) CEB Treasury Recoveries Others Other income Other income excl. treasury
Source: Company, Angel Research

4QFY12 215 95 98 361 769 674

3QFY12 205 157 68 349 779 622

% chg (qoq) 4.9 (39.5) 44.1 3.5 (1.3) 8.4

4QFY11 249 (18) 327 375 933 951

% chg (yoy) (13.7) NA (70.0) (3.6) (17.5) (29.1)

Slippages increase sequentially

Gross and net NPA ratio for the bank remained at nearly the same levels on a qoq basis. As of 4QFY2012, gross NPA ratio stood at 1.73% (1.81% in 3QFY2012), while net NPA ratio stood at 1.46% (1.49% in 3QFY2012). Provision coverage ratio for the quarter remained flat sequentially at 67.6%. Slippages on an absolute basis increased sequentially by ~`250cr. While recoveries/upgrades improved sequentially by `59cr, write-offs increased by almost three times on a qoq basis, hence limiting the increase in gross NPA to ~`33cr only. The banks gross annualized slippage ratio, which was improving constantly for the past few quarters, increased sequentially by ~50bp to 2.1%, though it still remains at much lower levels than the highs of 4.4% witnessed in 4QFY2011. During 4QFY2012, the bank restructured `4,504cr worth of accounts, of which `1,475cr were on account of restructuring of Air India. NPV loss on Air India restructuring equally amortized over eight quarters beginning 1QFY2013 amounts to `19cr. The outstanding restructured book as of 4QFY2012 stands at `7,986cr. The bank did not restructure any SEB accounts during 4QFY2012 but expects `5,385cr of SEB restructuring to occur in 1QFY2013, which would include discoms from Rajasthan, Haryana, U.P. and Gujarat. However, management also mentioned that rest of the SEB exposure of the bank (~`6,600cr) is performing and there would be no NPV loss on account of SEB restructuring.

Exhibit 9: Slippages increase sequentially

Slippages (%) 5.0 4.0 3.0 2.0 0.3 0.2 0.7 0.5 0.4 Credit cost (%, RHS) 0.8 0.6 0.4 0.2 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

Exhibit 10: Sequentially stable NPA ratios

Gross NPAs (%) 2.0 1.5 1.0 0.5 73.0 69.5 68.6 67.9 67.6 Net NPAs (%) PCR (%, RHS) 80.0 75.0 70.0 65.0

4.4

2.6

2.3

1.6

2.1

1.5 1.1

1.7 1.3

1.7 1.4

1.8 1.5

4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

1.7 1.5
60.0

1.0

Source: Company, Angel Research

Source: Company, Angel Research; Note: PCR including tech. write-offs

May 10, 2012

Canara Bank | 4QFY2012 Result Update

Exhibit 11: Strong rise in branch network

3,650 3,500 3,350 3,200 3,050 2,900 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12 3,257 3,277 3,437 3,569 3,600

Exhibit 12: Cost ratios rise sequentially on higher opex

Cost-to-income ratio (%) 48.0 46.0 44.0 42.0 1.5 1.2 1.4 1.2 1.4 Opex to average assets (%, RHS) 2.0 1.5 1.0

41.7

45.2

42.5

41.6

38.0 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12

Source: Company, Angel Research

46.9

40.0

0.5 -

Source: Company, Angel Research

Investment concerns
Weak liability franchise likely to keep NIM under pressure
The bank has a relatively weak liability profile with a calculated CASA base at 24.3% as of 4QFY2012. As witnessed in 3QFY2012, overall CASA deposits again declined by 4.2% yoy in 4QFY2012 as compared to 21.8% yoy growth witnessed in 4QFY2011. The bank had relatively high proportion of more costly bulk deposits and CDs at ~43% of deposits in 4QFY2012 as against ~30% in 3QFY2012, which increases the banks exposure to interest rate movements. Due to tight liquidity situation prevalent in 4QFY2012, margins continued to remain under check. Accordingly, we keep our NIM forecast for FY2013 at 2.2%.

Outlook and valuation

The bank has embarked on a relatively aggressive network expansion plan. Over the past one year, the bank has added over 323 branches and 642 ATMs. Such a pace of network expansion should augur well, in our view, for strengthening the banks relatively weak liability franchise. Though a weakening domestic macro-economic environment and consequently slower credit growth and ailing asset quality are likely to cap near-term upsides, cyclically moderate valuations of 0.7x FY2014E ABV vs. five-year average of 1.0x and range of 0.7-1.4x in our view largely factor in the negatives. Hence, we recommend Buy on the stock with a target price of `522.

May 10, 2012

Canara Bank | 4QFY2012 Result Update

Exhibit 13: Key assumptions

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

Earlier estimates FY2013 17.0 16.0 25.4 2.2 11.2 15.0 15.0 1.8 69.0 FY2014 18.0 18.0 24.6 2.2 14.3 15.0 15.0 1.7 70.0

Revised estimates FY2013 18.0 13.0 24.3 2.3 9.8 15.0 15.0 1.6 67.6 FY2014 18.0 18.0 23.7 2.3 13.2 15.0 15.0 1.5 68.0

Exhibit 14: Change in estimates

FY2013 Particulars (` cr) NII Non-interest income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT
Source: Angel Research

FY2014 Earlier estimates 10,204 3,805 14,009 6,018 7,990 1,736 6,254 2,029 4,225 Revised Var. (%) estimates 10,267 3,639 13,906 6,181 7,725 1,647 6,078 1,972 4,106 0.6 (4.4) (0.7) 2.7 (3.3) (5.2) (2.8) (2.8) (2.8)

Earlier estimates 8,791 3,329 12,120 5,233 6,887 1,463 5,424 1,627 3,797

Revised Var. (%) estimates 8,848 3,213 12,061 5,375 6,686 1,428 5,258 1,577 3,680 0.6 (3.5) (0.5) 2.7 (2.9) (2.4) (3.1) (3.1) (3.1)

Exhibit 15: P/ABV band

Price (`) 1200 1000 800 600 400 200 0 0.75x 1x 1.25x 1.5x 1.75x

Oct-06

Oct-07

Oct-08

Oct-09

Oct-10

Oct-11

Source: Company, Angel Research

May 10, 2012

Oct-12

Apr-06

Apr-07

Apr-08

Apr-09

Apr-10

Apr-11

Apr-12

Canara Bank | 4QFY2012 Result Update

Exhibit 16: 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 Accumulate Buy Neutral Buy Accumulate Neutral Buy Buy Buy Buy Neutral Buy Buy Buy Buy Buy Neutral Buy Buy Buy Buy Neutral Buy Buy Neutral CMP (`) 979 408 517 813 23 326 152 105 641 353 48 419 77 404 84 92 196 82 854 220 754 1,844 91 68 203 58 53 Tgt. price (`) 1,587 567 1,201 470 166 925 411 57 522 504 118 117 240 101 285 1,117 2,593 128 276 85 Upside (%) 62.1 9.7 47.8 43.9 9.3 44.5 16.3 18.7 24.7 24.7 39.8 26.5 22.4 23.7 29.6 48.1 40.6 41.1 35.9 46.3 FY2014E P/ABV (x) 1.3 1.0 3.0 1.3 1.1 1.7 0.6 0.6 0.7 0.7 0.6 0.7 0.7 0.5 0.5 0.6 0.7 0.5 0.8 0.5 0.7 1.1 0.5 0.8 0.7 0.4 0.6 FY2014E Tgt P/ABV (x) 2.2 3.3 1.9 2.4 0.7 1.1 1.0 0.7 0.9 0.7 0.7 0.7 0.8 0.6 0.6 1.1 1.6 0.8 0.9 0.6 FY2014E P/E (x) 7.0 7.1 14.6 10.0 6.1 7.9 3.6 4.1 4.3 4.4 3.7 4.5 3.9 3.6 3.3 3.9 4.0 3.8 4.4 3.4 4.3 6.8 3.3 4.7 4.0 2.7 4.3 FY2012-14E EPS CAGR (%) 16.4 13.0 27.0 20.4 4.5 22.5 6.2 3.3 11.1 23.3 45.3 11.8 45.7 5.3 6.2 22.7 5.4 28.3 8.8 27.7 10.3 23.6 8.7 7.0 24.8 11.4 13.5 FY2014E RoA (%) 1.5 1.3 1.7 1.5 0.8 1.4 0.9 0.9 1.1 0.8 0.7 0.9 0.5 0.8 0.9 0.9 1.2 0.6 1.4 0.8 1.0 1.0 0.8 0.5 0.8 0.7 0.5 FY2014E RoE (%) 20.3 14.5 22.1 16.0 17.5 23.3 17.6 16.0 18.2 16.9 17.2 16.4 13.8 16.5 16.9 14.8 18.2 13.9 18.6 14.3 18.1 19.1 17.1 13.4 17.5 15.9 13.7

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

May 10, 2012

Canara Bank | 4QFY2012 Result Update

Income statement
Y/E March (` cr) Net Interest Income - YoY Growth (%) Other Income - YoY Growth (%) Operating Income - YoY Growth (%) Operating Expenses - YoY Growth (%) Pre - Provision Profit - YoY Growth (%) Prov. & Cont. - YoY Growth (%) Profit Before Tax - YoY Growth (%) Prov. for Taxation - as a % of PBT PAT - YoY Growth (%) FY09 4,718 33.4 2,427 5.1 7,145 22.2 3,065 9.8 4,080 33.5 1,507 31.1 2,572 35.0 500 19.4 2,072 32.4 FY10 5,681 20.4 2,858 17.7 8,538 19.5 3,478 13.5 5,061 24.1 1,239 (17.8) 3,821 48.6 800 20.9 3,021 45.8 FY11 7,823 37.7 2,703 (5.4) 10,526 23.3 4,419 27.1 6,107 20.7 1,081 (12.8) 5,026 31.5 1,000 19.9 4,026 33.2 FY12 7,689 (1.7) 2,928 8.3 10,617 0.9 4,674 5.8 5,943 (2.7) 1,860 72.1 4,083 (18.8) 800 19.6 3,283 (18.5) FY13E 8,848 15.1 3,213 9.8 12,061 13.6 5,375 15.0 6,686 12.5 1,428 (23.2) 5,258 28.8 1,577 30.0 3,680 12.1 FY14E 10,267 16.0 3,639 13.2 13,906 15.3 6,181 15.0 7,725 15.5 1,647 15.3 6,078 15.6 1,972 32.4 4,106 11.6

Balance sheet
Y/E March (` cr) Share Capital Reserve & Surplus Deposits - Growth (%) Borrowings Tier 2 Capital Other Liab. & Prov. Total Liabilities Cash Balances Bank Balances Investments Advances - Growth (%) Fixed Assets Other Assets Total Assets - Growth (%) FY09 410 11,798 186,893 21.3 7,057 6,944 6,498 219,599 10,037 6,623 57,777 138,219 28.9 2,929 4,014 219,599 21.7 FY10 410 14,262 234,651 25.6 1,041 7,399 6,977 264,741 15,719 3,934 69,677 169,335 22.5 2,859 3,217 264,741 20.6 FY11 443 19,597 293,973 25.3 5,198 9,063 7,805 336,079 22,015 8,693 83,700 212,467 25.5 2,844 6,359 336,079 26.9 FY12 443 22,247 327,054 11.3 5,787 9,738 8,891 374,160 17,795 10,384 102,057 232,490 9.4 2,858 8,576 374,160 11.3 FY13E 443 25,129 369,571 13.0 6,540 11,491 9,627 422,801 14,783 11,734 109,123 274,338 18.0 3,132 9,691 422,801 13.0 FY14E 443 28,334 436,093 18.0 7,695 13,559 11,358 497,482 17,444 13,807 127,535 323,719 18.0 3,575 11,403 497,482 17.7

May 10, 2012

Canara Bank | 4QFY2012 Result Update

Ratio analysis
Y/E March Profitability ratios (%) NIMs Cost to Income Ratio RoA RoE B/S ratios (%) CASA Ratio Credit/Deposit Ratio CAR - Tier I Asset Quality (%) Gross NPAs Net NPAs Slippages Loan Loss Prov. /Avg. Assets Provision Coverage Per Share Data (`) EPS ABVPS (75% cover.) DPS Valuation Ratios PER (x) P/ABVPS (x) Dividend Yield DuPont Analysis NII (-) Prov. Exp. Adj. NII Treasury Int. Sens. Inc. Other Inc. Op. Inc. Opex PBT Taxes RoA Leverage RoE 2.4 0.8 1.6 0.3 1.9 0.9 2.8 1.5 1.3 0.3 1.0 21.8 22.6 2.3 0.5 1.8 0.4 2.2 0.8 3.0 1.4 1.6 0.3 1.2 21.5 26.8 2.6 0.4 2.2 0.1 2.3 0.8 3.1 1.5 1.7 0.3 1.3 19.7 26.4 2.2 0.5 1.6 0.1 1.7 0.7 2.5 1.3 1.1 0.2 0.9 18.4 17.0 2.2 0.4 1.9 0.1 1.9 0.8 2.7 1.3 1.3 0.4 0.9 18.1 16.7 2.2 0.4 1.9 0.0 1.9 0.8 2.7 1.3 1.3 0.4 0.9 18.3 16.4 8.3 1.9 1.9 5.7 1.4 2.4 4.6 1.0 2.6 5.7 0.9 2.6 5.0 0.8 3.7 4.5 0.7 4.2 50.5 221.3 8.0 73.7 305.8 10.0 90.9 401.1 11.0 74.1 447.3 11.0 83.1 509.6 15.5 92.7 580.1 17.5 1.6 1.1 2.2 0.5 30.5 1.5 1.1 2.4 0.6 77.7 1.4 0.8 2.1 0.3 73.0 1.7 1.5 2.1 0.4 67.6 2.2 1.4 1.6 0.3 67.6 2.5 1.4 1.5 0.3 68.0 30.1 74.0 14.1 8.0 29.1 72.2 13.4 8.5 28.3 72.3 15.4 10.9 24.3 71.1 15.6 11.2 24.3 74.2 16.0 11.2 23.7 74.2 15.7 10.7 2.4 42.9 1.0 22.6 2.4 40.7 1.2 26.8 2.7 42.0 1.3 26.4 2.2 44.0 0.9 17.0 2.3 44.6 0.9 16.7 2.3 44.4 0.9 16.4 FY09 FY10 FY11 FY12 FY13E FY14E

May 10, 2012

10

Canara Bank | 4QFY2012 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

Canara 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%)

May 10, 2012

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