3QFY2012 Result Update | Banking

February 10, 2012

Andhra Bank
Performance Highlights

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

Source: Company, Angel Research

NEUTRAL
CMP Target Price
% chg (qoq) 3.4 11.8 (4.1) 2QFY11 840 627 331 % chg (yoy) 17.1 22.5 (8.4)

`117 -

2QFY12 984 768 303

1QFY12 951 687 316

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 6,555 1.0 159/79 68,284 10 17,749 5,382 ADBK.BO ANDB@IN

For 3QFY2012, Andhra Bank posted a weak set of numbers with net profit declining by 8.4% yoy (down 4.1%) to `303cr, in-line with our estimates. We recommend a Neutral rating on the stock. Asset-quality pressures moderate but still above normal levels: The banks loan book grew sequentially by 7.6% to `79,169cr (up 20.7% yoy), while deposits grew by 4.5% qoq to `98,680cr (up 20.2% yoy). CASA deposits growth was also healthy at 6.4% qoq (up 12.1% yoy), which was primarily driven by strong 7.1% qoq growth in saving account deposits. The banks yield on funds rose by 20bp qoq during the quarter, however cost of funds also rose by 19bp, leading to reported NIM remaining flat sequentially at 3.8%. The banks slippages, which had surged sharply during 2QFY2012 to `1,094cr owing to shift to system-based NPA recognition platform (slippage ratio of 6.1%), moderated down to `381cr (slippage ratio of 2.1%) in 3QFY2012. Gross NPA ratio as of 3QFY2012 stood at 2.4% (2.7% in 2QFY2012), while net NPA ratio stood at 1.2% (1.5% in 2QFY2012). Provision coverage ratio (including technical write-offs), which was as strong as 82.0% in 1QFY2012, remained weak at 65.4% for 3QFY2012. The bank restructured ~`1,200cr worth of accounts during 3QFY2012, of which restructuring of GTL contributed ~`1,000cr. The bank also took NPV hit of ~`150cr in the P&L on account of restructuring of GTL. Outlook and valuation: At the CMP, the stock is trading at 0.8x FY2013E ABV compared to its five-year range of 0.7x1.3x one-year forward ABV with a median of 1.1x. Considering the banks relatively higher risk exposures, particularly to the power sector (more than 16% of the loan book) and that peers of the bank are also trading at similar valuations with similar or better asset quality outlook, we remain Neutral on the stock. 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 58.0 15.4 13.3 13.4

Abs. (%) Sensex Andhra Bank

3m 2.7 2.5

1yr 2.1 (15.0)

3yr 84.9 113.6

FY2010 2,195 34.9 1,046 60.1 2.8 21.6 5.3 1.3 1.3 26.0

FY2011 3,221 46.8 1,267 21.2 3.3 22.6 5.1 1.0 1.3 23.2

FY2012E 3,881 20.5 1,312 3.6 3.4 23.4 4.9 0.9 1.1 18.8

FY2013E 4,323 11.4 1,194 -9.0 3.2 21.3 5.4 0.8 0.9 15.1

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

Andhra Bank | 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 - Forex Operating income Operating expenses - Employee expenses - Other Opex Pre-provision Profit Provisions & Contingencies - Provisions for NPAs - Provisions for Investments - Other Provisions PBT Provision for Tax PAT Effective Tax Rate (%)
Source: Company, Angel Research

3QFY12 2QFY12 % chg (qoq) 3QFY11 % chg (yoy) 2,923 2,391 499 34 1,939 984 235 219 180 16 9 31 1,219 452 285 167 768 309 248 19 42 458 155 303 33.8 2,783 2,293 477 13 1,831 951 178 156 145 22 4 6 1,129 442 274 169 687 261 221 3 37 426 110 316 25.8 5.0 4.3 4.5 163.8 (NA) 5.9 3.4 32.3 40.7 23.7 (26.6) 110.0 384.1 8.0 2.1 4.1 (1.1) 11.8 18.7 12.4 551.7 14.5 7.5 40.9 (4.1) 802bp 2,122 1,712 401 9 1,282 840 199 189 159 10 14 16 1,039 412 260 152 627 172 152 0 19 455 124 331 27.3 37.8 39.6 24.5 285.8 (NA) 51.3 17.1 18.4 16.1 13.0 62.6 (39.1) 97.4 17.4 9.6 9.7 9.4 22.5 80.2 62.9 13,492.9 119.4 0.7 25.0 (8.4) 657bp

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 984 235 1,219 452 768 309 458 155 303

Estimates 968 201 1,169 467 702 280 421 118 303

Var. (%) 1.6 17.0 4.3 (3.4) 9.4 10.5 8.7 31.3 (0.1)

February 10, 2012

Andhra Bank | 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 Yield on funds Cost of funds 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 79,169 98,680 80.2 5,532 20,729 26,261 26.6 12.6 8.2 7.6 12.8 7.8 10.3 6.8 3.8 37.0 1,884 2.4 943 1.2 65.4 2.1 0.9

2QFY12 73,592 94,435 77.9 5,338 19,355 24,693 26.1 13.1 8.8 7.5 12.5 7.8 10.1 6.7 3.8 39.2 1,987 2.7 1,087 1.5 61.7 6.1 0.8

%chg (qoq) 7.6 4.5 230bp 3.6 7.1 6.4 46bp (49)bp (53)bp 14bp 31bp 7bp 20bp 19bp (1)bp (213)bp (5.2) (29)bp (13.2) (27)bp 370bp (399)bp 6bp

3QFY11 65,587 82,095 79.9 5,216 18,212 23,428 28.5 12.0 7.1 5.8 11.1 7.5 9.1 5.5 3.9 39.7 872 1.3 308 0.5 80.4 1.5 0.6

%chg (yoy) 20.7 20.2 34bp 6.1 13.8 12.1 (193)bp 58bp 118bp 175bp 169bp 35bp 124bp 136bp (10)bp (263)bp 116.0 105bp 206.1 74bp (1503)bp 68bp 22bp

Loan growth healthy during 3QFY2012; NIM remains flat

The banks loan book grew sequentially by 7.6% to `79,169cr (up 20.7% yoy), while deposits grew by 4.5% qoq to `98,680cr (up 20.2% yoy). CASA deposits growth was also healthy at 6.4% qoq (up 12.1% yoy), which was primarily driven by strong 7.1% qoq growth in saving account deposits. As of 3QFY2012, the banks total exposure to the infrastructure sector is ~`16,160cr (~20% of the overall loan book), while exposure to the power sector stands at ~`13,000cr (16.4% of the overall loan book). The banks total MFI exposure stands at low `300cr. Management has guided for loan growth of ~20% for FY2012. The banks yield on funds rose by 20bp qoq during the quarter, however cost of funds also rose by 19bp, leading to reported NIM remaining flat sequentially at 3.8%.

February 10, 2012

Andhra Bank | 3QFY2012 Result Update

Exhibit 4: Advances growth strong for 3QFY2012

Adv. qoq chg (%) 15.0 10.0 5.0 79.9 Dep. qoq chg (%) 83.3 77.9 CDR (%, RHS) 80.2 85.0 80.0 75.0

Exhibit 5: CASA ratio moderate for Andhra Bank

CASA ratio 30.0 29.0 28.0 27.0 26.0 17.0 17.1 14.5 12.1 CASA yoy growth (%, RHS) 20.0 15.0 10.0

77.5

8.9 12.3

8.3 4.5

6.0

3.9

7.6 4.5

70.0 65.0 60.0

28.5

29.1

27.8

26.1

(1.4)

(5.0)

(2.8)

25.0 24.0

26.6

3.4

5.0 -

3QFY11 4QFY11 1QFY12 2QFY12 3QFY12

Source: Company, Angel Research

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

Source: Company, Angel Research

Exhibit 6: Cost of funds rise during the quarter

7.00 6.50 6.00 5.50 5.00 4.50 4.00 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12 5.48 5.85 6.37 6.65 6.84

Exhibit 7: NIM remains flat at 3.8%

4.00 3.91 3.77 3.69 3.60 3.82 3.81

3.80

3.40 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12

Source: Company, Angel Research

Source: Company, Angel Research

Asset-quality pressures moderate but still above normal levels

The banks slippages, which had surged sharply during 2QFY2012 to `1,094cr owing to shift to system-based NPA recognition platform (slippage ratio of 6.1%), moderated down to `381cr (slippage ratio of 2.1%) in 3QFY2012. Gross NPA ratio as of 3QFY2012 stood at 2.4% (2.7% in 2QFY2012), while net NPA ratio stood at 1.2% (1.5% in 2QFY2012). Provision coverage ratio (including technical write-offs), which was as strong as 82.0% in 1QFY2012, remained weak at 65.4% for 3QFY2012. The bank restructured ~`1,200cr worth of accounts during 3QFY2012, of which restructuring of GTL contributed ~`1,000cr. The bank also took NPV hit of ~`150cr in the P&L on account of restructuring of GTL.

February 10, 2012

Andhra Bank | 3QFY2012 Result Update

Exhibit 8: NPA ratios above normal levels

3.0 2.5 2.0 1.5 1.0 Gross NPAs (%) 83.9 80.4 Net NPAs (%) 82.0 61.7 65.4 PCR (%, RHS) 90.0 75.0 60.0 45.0 30.0

Exhibit 9: Slippages moderate after surging in 2QFY12

Slippages (%) 7.0 6.0 5.0 4.0 3.0 2.0 0.6 0.8 0.4 Credit cost (%, RHS) 0.8 0.9 1.0 0.8 0.6 0.4

1.3 0.5

1.4 0.4

1.6 0.5

2.7 1.5

2.4 1.2

6.1

1.4

3QFY11 4QFY11 1QFY12 2QFY12 3QFY12

Source: Company, Angel Research

1.5

1.4

2.1

0.5

15.0

1.0

0.2 -

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

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

Exhibit 10: Improving cost-to-income ratio

Cost-to-income ratio (%) 60.0 50.0 40.0 30.0 20.0 1.6 1.6 1.6 1.7 1.7 Opex to average assets (%, RHS) 1.8 1.8 1.7 1.7 1.6 1.6 1.5 1.5 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12
Source: Company, Angel Research

Exhibit 11: Staff expenses under control

Staff expenses (`cr) QoQ growth (% , RHS)

325 250 175 100 25 (50) (0.2)

14.7

20.0

10.0 4.1 0.2

260

298

273

274

39.7

38.7

37.9

39.2

10.0 -

37.0

(8.3) 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12

285

(10.0)

Source: Company, Angel Research

Investment concerns
Moderate fee income; low CASA
During FY200711, fee income for the bank reported a CAGR of only 12.8% compared to advances posting a CAGR of 26.5%. However, at 0.8% of overall assets for FY2011, fee income for the bank is moderate compared to other mid-size PSU banks. On the CASA front, the banks market share has fallen by 35bp over FY2005-1HFY2012; and at 26.1%, the banks CASA ratio is on the lower end compared to peers.

Risk-adjusted yields expected to fall

The bank has one of the highest yields in the industry (12.5% as of 2QFY2012), also reflected in its relatively strong NIM of 3.3% (as of FY2011). This can be partly attributed to the banks high concentration in the hinterland of its home state. That said, it is difficult for the bank to remain insulated from competition on the lending side and, as a result, we expect a decline in the banks risk-adjusted yields and overall profitability over the medium term. Also, in the current environment, the banks provisioning expenses are likely to increase at a faster rate, given the high yield on advances and relatively high exposure to riskier sectors.

February 10, 2012

Andhra Bank | 3QFY2012 Result Update

Outlook and valuation

The banks asset quality, which until 1QFY2012 was significantly better than its peers, deteriorated substantially during 2QFY2012 (slippages of `1,094 compared to quarterly run-rate of ~`220cr). Although, slippage levels have moderated down to `381cr (slippage ratio of 2.1%) for 3QFY2012, they remain significantly above the levels the bank used to enjoy till 1QFY2012. Provision coverage ratio (including technical write-offs), which was as strong as 82.0% in 1QFY2012, remains weak at 65.4%. Also, relatively high risk exposures, particularly the power sector (more than 16% of the loan book), create risk of higher deterioration in asset quality for the bank in the coming quarters in our view. At the CMP, the stock is trading at 0.8x FY2013E ABV compared to its five-year range of 0.7x1.3x one-year forward ABV. Considering, the banks peers are also trading at comparable valuations with similar or better asset quality outlook, we remain Neutral on the stock.

February 10, 2012

Andhra Bank | 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 Coverage Ratio
Source: Angel Research

Earlier estimates FY2012 12.0 18.0 28.4 3.3 (6.6) 4.0 14.0 3.5 63.0 FY2013 13.0 14.0 28.8 3.1 10.5 14.0 15.0 3.5 62.0

Revised estimates FY2012 16.0 18.0 28.4 3.4 0.1 4.0 12.0 3.5 65.0 FY2013 13.0 16.0 28.3 3.2 5.9 15.0 15.0 3.3 65.0

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 Earlier estimates 4,203 926 5,129 2,097 3,033 1,334 1,699 551 1,148 Revised Var. (%) estimates 4,323 950 5,273 2,094 3,179 1,412 1,767 573 1,194 2.8 2.6 2.8 (0.1) 4.8 5.8 4.0 4.0 4.0

Earlier estimates 3,817 838 4,655 1,833 2,822 1,077 1,745 489 1,256

Revised Var. (%) estimates 3,881 897 4,778 1,821 2,957 1,083 1,875 562 1,312 1.7 7.1 2.6 (0.7) 4.8 0.5 7.4 15.1 4.5

Exhibit 14: P/ABV band

Price (`) 200 180 160 140 120 100 80 60 40 20 0
Dec-06 Apr-02 Jul-07 Aug-04 Apr-09 Mar-05 Aug-11 Nov-02 May-06 Nov-09 Mar-12 Oct-05 Feb-08 Sep-08 Jun-03 Jan-04 Jun-10 Jan-11

0.6x

0.8x

1x

1.2x

1.4x

Source: Company, Angel Research

February 10, 2012

Andhra Bank | 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 Reco. Buy Neutral Neutral Buy Neutral Accumulate Neutral Neutral Accumulate Neutral Neutral Accumulate Reduce Accumulate Accumulate Accumulate Neutral Neutral Accumulate Neutral Accumulate Accumulate Accumulate Neutral Accumulate Accumulate Reduce CMP (`) 1,117 417 516 928 26 347 179 117 823 366 56 526 101 474 90 105 241 101 816 303 1,006 2,173 112 79 251 78 62 Tgt. price (`) 1,423 1,129 398 907 553 90 540 102 113 877 1,079 2,364 122 265 89 54 Upside (%) 27.4 21.6 14.8 10.1 5.0 (11.1) 14.0 13.4 7.3 7.6 7.2 8.8 8.7 5.8 13.3 (13.1) FY2013E P/ABV (x) 1.8 1.1 3.5 1.7 1.3 2.2 0.8 0.8 1.1 1.1 0.8 1.0 1.0 0.8 0.6 0.7 1.0 0.7 0.8 0.8 1.2 1.8 0.7 1.0 1.0 0.7 0.9 FY2013E Tgt P/ABV (x) 2.3 2.1 2.5 1.3 1.1 0.9 0.9 0.7 0.8 0.9 1.3 1.9 0.8 1.1 0.8 0.8 FY2013E P/E (x) 9.7 9.0 18.0 14.5 7.9 11.5 5.0 5.5 6.3 7.7 5.7 6.8 6.5 5.1 4.2 5.3 5.8 5.3 4.7 6.6 6.4 10.5 4.7 5.1 6.3 4.4 6.9 FY11-12E 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 10, 2012

Andhra Bank | 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-prov. profit - YoY growth (%) Prov. & cont. - YoY growth (%) PBT - YoY growth (%) Prov. for taxation - as a % of PBT PAT - YoY growth (%) FY07 1,418 21.3 522 12.5 1,940 18.8 933 8.8 1,007 29.8 222 1.8 785 40.8 247 31.5 538 10.8 FY08 1,340 (5.5) 626 19.9 1,966 1.3 909 (2.6) 1,057 5.0 139 (37.2) 918 16.9 342 37.3 576 7.0 FY09 1,627 21.5 765 22.2 2,392 21.7 1,104 21.5 1,288 21.9 390 179.9 898 (2.1) 245 27.3 653 13.5 FY10 2,195 34.9 965 26.0 3,159 32.1 1,350 22.2 1,810 40.5 374 (4.1) 1,436 59.9 390 27.2 1,046 60.1 FY11 3,221 46.8 897 (7.0) 4,118 30.3 1,705 26.3 2,413 33.3 646 72.8 1,767 23.1 500 28.3 1,267 21.2 FY12E 3,881 20.5 897 0.1 4,778 16.0 1,821 6.8 2,957 22.6 1,083 67.6 1,875 6.1 562 30.0 1,312 3.6 FY13E 4,323 11.4 950 5.9 5,273 10.4 2,094 15.0 3,179 7.5 1,412 30.4 1,767 (5.7) 573 32.4 1,194 (9.0)

Balance sheet
Y/E March (` cr) Share Capital Reserves & Surplus Deposits - Growth (%) Borrowings Tier 2 Capital Other Liab. & Prov. Total Liabilities Cash Balances Bank Balances Investments Advances - Growth (%) Fixed Assets Other Assets Total Assets - Growth (%) FY07 485 2,671 41,454 22.2 734 480 1,717 47,541 2,949 1,075 14,301 27,889 26.2 192 1,135 47,541 16.9 FY08 485 2,764 19.3 591 1,115 2,201 4,902 793 FY09 485 3,162 20.1 1,311 2,040 2,081 4,853 434 FY10 485 3,925 77,688 30.8 2,832 3,020 2,392 6,699 4,469 20,881 56,114 27.1 356 1,825 31.9 FY11 560 5,933 18.6 4,620 3,020 2,612 7,184 3,275 24,204 71,435 27.3 317 2,485 20.5 FY12E 560 6,920 18.0 5,442 3,503 3,107 7,068 3,207 FY13E 560 7,821 16.0 6,301 3,959 3,753 8,199 3,713

49,437 59,390

92,156 108,744 126,144

56,592 68,469

90,342 108,901 128,275 148,537

14,898 16,911 34,238 44,139 22.8 219 1,542 19.0 28.9 335 1,796 21.0

31,845 39,190 82,865 93,637 16.0 363 2,927 17.8 13.0 407 3,389 15.8

56,592 68,469

90,342 108,901 128,275 148,537

February 10, 2012

Andhra Bank | 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 Leverage RoE 3.2 0.5 2.7 0.1 2.8 1.1 3.9 2.1 1.8 0.6 1.2 14.6 17.8 2.6 0.3 2.3 0.2 2.5 1.0 3.5 1.7 1.8 0.7 1.1 16.3 18.0 2.6 0.6 2.0 0.4 2.3 0.9 3.2 1.8 1.4 0.4 1.0 18.1 18.9 2.8 0.5 2.3 0.4 2.7 0.8 3.5 1.7 1.8 0.5 1.3 19.7 26.0 3.2 0.6 2.6 0.1 2.7 0.8 3.5 1.7 1.8 0.5 1.3 18.3 23.2 3.3 0.9 2.4 0.1 2.5 0.7 3.1 1.5 1.6 0.5 1.1 17.0 18.8 3.1 1.0 2.1 0.1 2.2 0.6 2.8 1.5 1.3 0.4 0.9 17.5 15.1 10.3 1.8 3.3 9.7 1.7 3.5 8.5 1.5 3.9 5.3 1.3 4.4 5.1 1.0 4.8 4.9 0.9 4.4 5.4 0.8 3.9 11.1 65.1 3.8 11.9 67.0 4.0 13.5 75.2 4.5 21.6 90.9 5.0 22.6 116.0 5.5 23.4 127.3 5.0 21.3 139.8 4.5 1.4 0.2 1.1 0.2 88.1 1.1 0.2 0.7 0.2 85.6 0.8 0.2 0.6 0.3 78.5 0.9 0.2 0.9 0.4 91.6 1.4 0.4 1.4 0.5 83.9 3.2 1.5 3.5 0.7 65.0 5.0 2.1 3.3 0.9 65.0 34.5 67.3 11.3 10.0 33.6 69.3 11.6 8.5 31.4 74.3 13.2 8.7 29.4 72.2 13.9 8.2 29.1 77.5 14.4 9.7 28.4 76.2 14.2 9.4 28.3 74.2 13.8 9.1 3.3 48.1 1.2 17.8 2.7 46.2 1.1 18.0 2.7 46.2 1.0 18.9 2.8 42.7 1.3 26.0 3.3 41.4 1.3 23.2 3.4 38.1 1.1 18.8 3.2 39.7 0.9 15.1 FY07 FY08 FY09 FY10 FY11 FY12E FY13E

February 10, 2012

10

Andhra Bank | 3QFY2012 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

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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

Andhra 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%)

February 10, 2012

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