1QFY2012 Result Update | Banking

August 9, 2011

UCO Bank
Performance Highlights

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

Source: Company, Angel Research

NEUTRAL
CMP Target Price
4QFY11 844 580 226 % chg (qoq) (4.2) 5.5 29.5 1QFY11 937 646 260 % chg (yoy) (13.7) (5.2) 12.4

`77 -

1QFY12 809 612 293

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 4,857 1.4 152/74 181,007 10 16,858 5,073 UCBK.BO UCO@IN

For 1QFY2012, UCO Bank posted a healthy performance with net profit rising by 29.5% qoq and 12.4% yoy to `293cr, above our estimates, due to lower operating expenses and tax expenses than built in by us. The bank shed ~`18,000cr worth of bulk deposits during 1QFY2012. Lower slippages compared to 4QFY2011 and rise in reported NIM by 11bp qoq were the key highlights of the results. We maintain our Neutral recommendation on the stock. Bank sheds low-cost deposits during 1QFY2012; NIM shows a marginal increase: During 1QFY2012, advances fell by 3.0% qoq (up 17.5% yoy) to `96,092cr, while deposits dipped by 12.2% qoq (up 7.3% yoy) to `127,534cr, led by shedding of `18,000cr of bulk deposits during the quarter. On the deposits side, CASA deposits grew by 12.9% yoy. On a sequential basis, CASA deposits fell by 2.6%; however, due to a much higher decline in overall deposits, CASA ratio increased by 97bp qoq to 24.2% in 1QFY2012. The effect of rising interest rates was felt in 1QFY2012, with cost of deposits increasing by 90bp qoq to 7.2%. However, yield on advances grew by 101bp qoq to 10.9%, leading to a sequential increase of 11bp in reported NIM to 2.5%. Asset quality deteriorated during the quarter, with gross NPA ratio rising by 37bp qoq to 3.5% and net NPA ratio rising by 31bp qoq to 2.2%. Annualised slippage ratio for 1QFY2012 stood at 2.1% (5.7% in 4QFY2011). Until now, the bank has only switched over accounts worth `50lakh and above to system-based NPA recognition. Outlook and valuation: Structurally, the bank has had relatively higher exposure to large corporates, low CASA of ~24% and low fee/assets. Going forward, we expect the banks earnings to find support from increasing exposure to the SME and retail segments, improving other income and moderating asset-quality pressures, aided by increasing recoveries. However, at the CMP, the stock is trading at 1.0x FY2013E ABV, which we believe factors in the improvement expected in earnings quality. Hence, we remain Neutral on the stock.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 68.1 10.3 5.4 16.2

Abs. (%) Sensex UCO Bank

3m (9.0) (21.1

1yr (7.8) (20.9)

3yr 11.1 106.4

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

FY2010 2,324 41.3 1,012 81.5 1.9 18.4 4.2 1.4 0.8 31.6

FY2011 3,845 65.4 907 (10.4) 2.6 12.6 6.1 1.2 0.6 20.7

FY2012E 3,225 (16.1) 1,011 11.5 2.0 13.2 5.8 1.0 0.6 15.1

FY2013E 3,593 11.4 1,244 23.0 1.9 17.0 4.6 1.0 0.6 17.0

Vaibhav Agrawal
022 3935 7800 Ext: 6808 [email protected]

Shrinivas Bhutda
022 3935 7800 Ext: 6845 [email protected]

Varun Varma
022 3935 7800 Ext: 6847 [email protected]

Please refer to important disclosures at the end of this report

Uco Bank | 1QFY2012 Result Update

Exhibit 1: 1QFY2012 performance

Particulars (` cr) Interest earned - on Advances / Bills - on investments - on balance with RBI & others - on others Interest Expended Net Interest Income Other income 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

1QFY12 4QFY11 % chg (qoq) 1QFY11 % chg (yoy) 3,401 2,630 748 16 8 2,593 809 275 1,084 472 330 142 612 310 310 302 9 293 3.1 3,068 2,298 728 20 24 2,224 844 292 1,136 556 381 175 580 341 94 247 239 13 226 5.5 10.9 14.5 2.8 (16.9) (68.5) 16.6 (4.2) (5.7) (4.6) (15.1) (13.3) (19.0) 5.5 (9.1) (100.0) 25.3 26.3 (28.2) 29.5 (239)bp 2,673 1,982 638 48 5 1,736 937 190 1,127 481 348 134 646 374 318 56 272 11 260 4.2 27.3 32.7 17.2 (66.2) 64.6 49.4 (13.7) 45.0 (3.8) (1.9) (5.0) 6.2 (5.2) (17.2) (100.0) NA 11.2 (17.3) 12.4 (108)bp

Exhibit 2: 1QFY2012 Actual vs. estimates

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

Actual 809 275 1,084 472 612 310 302 9 293

Estimates 894 256 1,149 564 586 366 220 22 198

Var. (%) (9.5) 7.6 (5.7) (16.2) 4.4 (15.3) 37.2 (56.9) 47.7

Aug 9, 2011

Uco Bank | 1QFY2012 Result Update

Exhibit 3: 1QFY2012 performance analysis

Particulars Balance sheet Advances (` cr) Deposits (` cr) Credit-to-Deposit Ratio (%) 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 (%) Slippage ratio (%) LLP to average assets (%)
Source: Company, Angel Research

1QFY12 96,092 127,534 75.3 30,841 24.2 13.5 8.5 7.2 10.9 7.4 2.5 43.6 3,361 3.5 2,040 2.2 2.1 -

4QFY11 99,071 145,278 68.2 31,668 23.2 13.8 8.6 6.3 9.9 7.4 2.4 49.0 3,150 3.1 1,825 1.8 5.7 0.2

% chg (qoq) (3.0) (12.2) 715bp (2.6) 97bp (29)bp (9)bp 90bp 101bp (3)bp 11bp (540)bp 6.7 37bp 11.8 31bp (363)bp (25)bp

1QFY11 81,746 118,876 68.8 273,18 23.0 13.6 7.6 5.4 9.9 7.4 3.1 43.3 1,929 2.4 919 1.1 2.0 0.9

% chg (yoy) 17.5 7.3 658bp 12.9 120bp (10)bp 97bp 180bp 102bp 0bp (61)bp 24bp 74.2 114bp 121.9 101bp 6bp (94)bp

Bank sheds `18,000 worth of bulk deposits during 1QFY2012; advances also sequentially down
During 1QFY2012, advances declined by 3.0% qoq (up 17.5% yoy) to `96,092cr, while deposits fell by 12.2% qoq (up 7.3% yoy) to `127,534cr, led by shedding of `18,000cr of bulk deposits during the quarter. On the deposits side, CASA deposits registered growth of 12.9% yoy. On a sequential basis, CASA deposits fell by 2.6%; however, due to a much higher decline in overall deposits, CASA ratio increased by 97bp qoq to 24.2% in 1QFY2012. As of 1QFY2012, the banks bulk deposits and CDs comprised ~44.8% of overall deposits. The bank opened seven branches and 69 ATMs during the quarter. We estimate the loan book to grow by 18% each for FY2012 and FY2013.

Aug 9, 2011

Uco Bank | 1QFY2012 Result Update

Exhibit 4: Deposits down 12.2% sequentially

Adv. qoq chg (%) 30.0 20.0 74.1 75.3 Dep. qoq chg (%) CDR (%, RHS) 80.0 76.0 72.0 68.0

Exhibit 5: YoY trend in business

Adv. yoy chg (%) 25.0 20.0 15.0 10.0 Dep. yoy chg (%)

3.9 1.8

5.3

10.0 -

68.8

10.7 20.3
68.2

70.2

(3.0) (12.2)

(1.9) (2.9)

(0.2)

19.6 18.4

21.9 19.8

20.4 16.0

18.8 18.7

(10.0) (20.0)

64.0 60.0

5.0 -

1QFY11 2QFY11 3QFY11 4QFY11 1QFY12

Source: Company, Angel Research

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

Source: Company, Angel Research

The effect of rising interest rates was felt in 1QFY2012, with cost of deposits increasing by 90bp qoq to 7.2%. However, yield on advances increased by 101bp qoq to 10.9%, leading to a sequential increase of 11bp in reported NIM to 2.5%.

Exhibit 6: Sharp uptick in yield on advances...

11.20 10.80 10.40 10.00 9.60 9.20 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 9.85 10.49 10.09 9.86 10.87

Exhibit 7: ...leading to 11bp qoq rise in reported NIM

4.00 3.57 3.50 3.07 3.00 2.50 2.00 1.50 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 2.35 2.46 3.11

Source: Company, Angel Research

Source: Company, Angel Research

Weak core other income for 1QFY2012

During 1QFY2012, other income declined by 5.7% qoq to `275cr (up by strong 45.0% yoy). Treasury income was strong sequentially, growing by 214.8% qoq to `85cr; however, other income excluding treasury fell sharply by 28.2% qoq to `190cr.

Aug 9, 2011

17.5 7.3

Uco Bank | 1QFY2012 Result Update

Slippages much lower compared to last quarter; however, NPA ratios deteriorate further
The banks asset quality deteriorated during the quarter, with gross NPA ratio rising by 37bp qoq to 3.5% and net NPA ratio rising by 31bp qoq to 2.2%. Annualised slippage ratio for 1QFY2012 stood at 2.1% (5.7% in 4QFY2011). Until now, the bank has only switched over accounts worth `50lakh and above to system-based NPA recognition. The bank has to complete the switchover of the rest of the accounts by next quarter. We expect slippages to be at 2.0% each for FY2012 and FY2013.

Exhibit 8: Slippages lower for 1QFY2012 vs. 4QFY2011

Slippages (%) 6.0 4.5 3.0 1.5 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 0.9 3.3 2.0 2.2 0.2 2.1 1.3 1.0 Credit cost (%, RHS) 5.7 1.4 1.2 1.0 0.8 0.6 0.4 0.2 -

Exhibit 9: Asset quality deteriorates

Gross NPAs (%) 3.2 2.8 2.4 2.0 1.6 1.2 0.8 0.4 52.4 51.2 Net NPAs (%) 56.8 42.1 39.3 PCR* (%, RHS) 60.0 50.0 40.0 30.0 20.0

2.4 1.1

2.4 1.2

2.6 1.1

3.1 1.8

3.5 2.2
1.20

10.0 -

1QFY11 2QFY11 3QFY11 4QFY11 1QFY12

Source: Company, Angel Research; note*excluding technical write-offs

Source: Company, Angel Research

Operating expenses decline qoq

For 1QFY2012, the banks operating expenses decreased by 15.1% qoq (down 1.9% yoy) to `472cr, driven by a 13.3% sequential decline in employee expenses to `330cr on account of a high base, owing to pension expenses for retired employees in 4QFY2011.

Exhibit 10: Lower employee costs in 1QFY2012...

Staff exps (` cr) 600 450 300 150 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 348 385 366 381 330 481 134 527 142 Other opex (` cr) 556 511 145 175 142

Exhibit 11: Improvement in cost-to-income ratio

Cost-to-income ratio (%) Opex to average assets (%, RHS) 2.00
1.42 1.54 1.45 1.46

472

50.0 45.0 40.0 35.0 30.0 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12
Source: Company, Angel Research

1.50 1.00 0.50 -

42.7

42.8

40.0

49.0

Source: Company, Angel Research

Aug 9, 2011

43.6

Uco Bank | 1QFY2012 Result Update

Investment arguments
Improvement in core profitability
The bank had relatively lower NIM of 1.9% in FY2010 due to low CASA ratio of ~25% and high exposure to relatively low-yielding corporate loans, which constituted 69% of its total loan book. While reported NIM has risen to 3.1% in FY2011 due to a decline in cost of wholesale deposits, going forward, an increase in retail and SME loans is expected to partly stem the fall in NIM due to high prevailing deposit rates. We have factored in a ~67bp decline in NIM for FY2012.

Improvement in operating environment to lower credit cost

The bank's gross and net NPAs stood at 3.5% and 2.2%, respectively, in 1QFY2012, with cumulative restructured advances at `6,211cr as of FY2011 (6.3% of loans, 119% of net worth). Going forward, we expect stronger recoveries and lower slippages, which are expected to result in a decline in provisioning expense, as a percentage of average assets, to 0.4% for FY2013 from 1.2% in FY2011.

Outlook and valuation

Structurally, the bank has had relatively higher exposure to large corporates, low CASA of ~24% and low fee/assets. Going forward, we expect the banks earnings to find support from its increasing exposure to the SME and retail segments, improving other income and moderating asset-quality pressures, aided by increasing recoveries. However, at the CMP, the stock is trading at 1.0x FY2013E ABV, which we believe factors in the improvement expected in earnings quality. Hence, we maintain our Neutral recommendation on the stock.

Exhibit 12: 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 FY2012 20.0 15.0 21.6 2.2 17.6 15.0 17.0 1.9 59.0 FY2013 20.0 15.0 21.4 2.2 17.0 15.0 17.0 1.9 60.0

Revised estimates FY2012 18.0 8.0 23.0 2.0 14.8 (5.0) 10.0 2.0 53.0 FY2013 18.0 18.0 22.2 1.9 17.9 15.0 17.0 2.0 50.0

Aug 9, 2011

Uco Bank | 1QFY2012 Result Update

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. (%) (14.3) (2.4) (11.6) (14.1) (9.2) (9.5) (8.8) (8.8) (8.8) Earlier estimates 4,322 1,274 5,596 2,772 2,823 1,095 1,728 432 1,296 Revised estimates 3,593 1,253 4,845 2,383 2,462 804 1,659 415 1,244 Var. (%) (16.9) (1.7) (13.4) (14.0) (12.8) (26.6) (4.0) (4.0) (4.0)

Earlier estimates 3,761 1,089 4,849 2,399 2,451 1,219 1,232 123 1,108

Revised estimates 3,225 1,062 4,287 2,061 2,226 1,103 1,123 112 1,011

Exhibit 14: P/ABV band

180 160 140 120 100 80 60 40 20 0 Price (`) 0.5x 0.8x 1.1x 1.4x 1.7x

Dec-07

Apr-06

Jul-07

Aug-04

Mar-04

Mar-09

Aug-09

Feb-07

Oct-08

Apr-11

Nov-05

May-08

Source: Company, Angel Research

Aug 9, 2011

Nov-10

Feb-12

Sep-06

Sep-11

Jun-05

Jan-05

Jan-10

Jun-10

Uco Bank | 1QFY2012 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 Reco. Buy Accumulate Accumulate Buy Buy Buy Neutral Neutral Buy Accumulate Buy Accumulate Neutral Buy Neutral Neutral Accumulate Accumulate Neutral Accumulate Accumulate Buy Buy Neutral Accumulate Buy Neutral CMP (`) 1,211 384 466 941 21 292 191 132 854 350 52 434 109 460 83 118 213 128 841 333 1,116 2,231 111 77 279 87 60 Tgt. price (`) 1,648 441 519 1,281 24 353 1,018 397 61 490 576 232 143 372 1,217 2,776 131 313 103 Upside (%) 36.1 14.9 11.4 36.1 16.1 20.7 19.2 13.4 18.3 13.1 25.3 9.0 11.3 11.5 9.1 24.5 18.5 12.3 18.3 FY2013E P/ABV (x) 1.9 1.0 3.1 1.7 1.1 1.9 0.9 0.9 1.2 1.0 0.7 0.8 0.8 0.7 0.6 0.7 0.9 0.8 0.9 0.8 1.3 1.7 0.8 1.0 1.0 0.7 0.8 FY2013E Tgt P/ABV (x) 2.7 1.2 3.5 2.3 1.3 2.3 1.4 1.1 0.8 1.0 0.9 1.0 0.9 0.9 1.4 2.1 0.9 1.2 0.9 FY2013E P/E (x) 10.0 7.9 16.2 13.3 6.5 9.8 5.4 5.9 6.4 5.5 4.9 5.0 5.3 4.3 3.9 5.5 5.4 4.9 5.8 5.6 6.9 8.2 5.1 4.6 5.9 5.1 6.4 FY2011E-13E EPS CAGR (%) 20.9 19.0 30.5 25.8 11.6 19.1 9.2 (0.6) 10.8 18.7 30.8 (2.4) (14.0) 6.1 7.0 13.0 1.2 22.4 7.3 7.5 7.4 44.2 8.6 16.0 20.0 13.2 61.9 FY2013E RoA (%) 1.5 1.2 1.7 1.5 0.9 1.2 0.9 0.9 1.1 0.8 0.6 0.9 0.5 0.9 0.8 0.7 1.2 0.7 1.2 0.9 1.0 1.1 0.6 0.6 0.8 0.6 0.4 FY2013E RoE (%) 21.0 13.9 20.9 16.0 17.2 20.6 17.8 15.9 19.6 18.0 14.8 17.2 14.4 17.9 16.5 14.3 17.8 16.4 16.5 14.4 20.0 22.6 15.6 17.0 17.9 14.1 11.7

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

Aug 9, 2011

Uco Bank | 1QFY2012 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 (%) FY08 1,488 (6.2) 772 40.3 2,260 5.7 1,306 9.5 954 1.0 575 (1.9) 379 5.7 (33) (8.8) 412 30.4 FY09 1,645 10.5 1,020 32.1 2,665 17.9 1,613 23.5 1,052 10.2 488 (15.2) 564 48.9 6 1.1 558 35.3 FY10 2,324 41.3 966 (5.3) 3,290 23.5 1,718 6.5 1,572 49.4 600 23.1 972 72.3 (41) (4.2) 1,012 81.5 FY11 3,845 65.4 925 (4.2) 4,770 45.0 2,075 20.8 2,695 71.5 1,781 196.8 914 (5.9) 8 0.8 907 (10.4) FY12E 3,225 (16.1) 1,062 14.8 4,287 (10.1) 2,061 (0.7) 2,226 (17.4) 1,103 (38.1) 1,123 22.9 112 10.0 1,011 11.5 FY13E 3,593 11.4 1,253 17.9 4,845 13.0 2,383 15.6 2,462 10.6 804 (27.1) 1,659 47.6 415 25.0 1,244 23.0

Balance sheet
Y/E March (` cr) Share Capital - Equity - Preference 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 (%) FY08 799 799 2,127 79,909 23.2 1,716 2,950 2,294 89,795 5,703 2,401 24,250 55,082 17.2 684 1,676 89,795 19.9 FY09 1,249 549 700 2,708 100,222 25.4 2,062 3,075 2,348 111,664 6,589 4,265 29,385 68,804 24.9 719 1,903 111,664 24.4 FY10 1,699 549 1,150 3,511 122,416 22.1 1,889 4,375 3,430 137,319 7,243 862 43,521 82,505 19.9 710 2,479 137,319 23.0 FY11 2,451 628 1,823 4,969 145,278 18.7 1,100 4,375 5,227 163,398 10,404 6,576 42,927 99,071 20.1 739 3,681 163,398 19.0 FY12E 2,451 628 1,823 5,654 156,900 8.0 1,188 5,163 5,116 176,470 10,198 4,412 40,207 116,904 20.0 774 3,976 176,470 8.0 FY13E 2,451 628 1,823 6,499 185,142 18.0 1,402 6,092 6,651 208,235 12,034 5,206 47,472 137,946 20.0 886 4,691 208,235 18.0

Aug 9, 2011

Uco Bank | 1QFY2012 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 * 1.8 0.7 1.1 0.3 1.4 0.7 2.0 1.6 0.5 (0.0) 0.5 35.1 17.6 1.6 0.5 1.1 0.3 1.5 0.7 2.2 1.6 0.6 0.0 0.6 38.2 21.1 1.9 0.5 1.4 0.2 1.6 0.6 2.2 1.4 0.8 (0.0) 0.8 38.9 31.6 2.6 1.2 1.4 0.1 1.4 0.6 2.0 1.4 0.6 0.0 0.6 34.3 20.7 1.9 0.6 1.2 0.1 1.3 0.6 1.9 1.2 0.7 0.1 0.6 31.0 15.1 1.9 0.4 1.4 0.1 1.5 0.6 2.1 1.2 0.9 0.2 0.6 30.8 17.0 15.0 3.4 1.3 7.6 1.8 1.4 4.2 1.4 3.0 6.1 1.2 3.9 5.8 1.0 2.6 4.6 1.0 3.9 5.2 22.6 1.0 10.2 43.1 1.1 18.4 55.7 2.3 12.6 65.5 3.0 13.2 76.2 2.0 17.0 80.9 3.0 3.0 2.0 2.2 0.4 33.9 2.2 1.2 1.2 0.3 47.2 2.0 1.2 1.6 0.3 42.0 3.1 1.8 3.3 0.8 42.1 3.5 1.9 2.0 0.3 45.7 3.7 2.1 2.0 0.2 44.5 25.7 68.9 10.1 5.1 24.1 68.7 11.9 6.5 24.7 67.4 13.2 7.1 22.0 68.2 13.8 8.6 23.0 74.5 14.8 9.0 22.2 74.5 13.3 7.9 1.9 57.8 0.5 17.6 1.7 60.5 0.6 21.1 1.9 52.2 0.8 31.6 2.6 43.5 0.6 20.7 2.0 48.1 0.6 15.1 1.9 49.2 0.6 17.0 FY08 FY09 FY10 FY11 FY12E FY13E

Note: * RoE calculated on PAT for equity share holders post preference dividend

Aug 9, 2011

10

Uco Bank | 1QFY2012 Result Update

Research Team Tel: 022 - 39357800

E-mail: [email protected]

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

UCO 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%)

Aug 9, 2011

11