2QFY2013 Result Update | Banking

November 15, 2012

Dena Bank
Performance Highlights

ACCUMULATE
CMP Target Price
% chg (qoq) (3.0) (4.5) 0.4 2QFY12 515 352 194 % chg (yoy) 15.4 24.2 23.8

`112 `123
12 months

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

2QFY13 594 437 240

1QFY13 612 458 239

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 3,945 1.3 116/48 364,880 10 18,471 5,631 DENA.BO DBNK@IN

Source: Company, Angel Research

Dena Bank posted a healthy performance on the operating front during 2QFY2013, with a growth of 15.9% and 24.2% yoy, respectively in operating income and operating profit. On the earnings front, the bank witnessed a healthy growth of 23.8% to `240cr. Business growth continues to be aggressive; Asset quality pressures witnessed: During 2QFY2013, the bank continued with its aggressive pace of business growth, as both advances and deposits witnessed strong growth of 37.8% and 30.1% yoy. The loan growth was primarily driven by growth in priority sector advances and MSME book. CASA deposits grew at a healthy pace of 16.4% yoy, largely aided by strong growth in current deposits, even as growth in saving deposits remained moderate. CASA ratio declined by 376bp yoy to 31.9%. Yield on advances declined by 14bp qoq, while the cost of deposits declined by 4bp qoq on account of the sequential improvement in the CASA ratio. Hence the reported NIM declined by 20bp qoq to 2.9%. The non-interest income (excluding treasury), grew at a subdued pace of 4.8% yoy, on back of lower recoveries from written-off accounts. The bank witnessed asset quality pressures, with both gross and net NPA levels increasing sequentially by 8.8% and 20.7%, respectively. Slippages came in at `288cr compared to `192cr in 1QFY2013 and `244cr in 4QFY2012. As per the management, incremental slippages were granular in nature, except for ~`90cr coming in from two accounts. Annualized slippage ratio came in at 2.0%, higher compared to 1.4% in 1QFY2013. PCR dipped by 315bp sequentially to 72.5%. Additionally, the bank restructured advances worth `300cr compared to ~`852cr restructured in 1QFY2013. As of 2QFY2013, the banks outstanding restructured book stood at ~`4,500cr, out of which ~`4,375cr constitutes standard restructured advances. As per RBIs 75bp increase in provisioning requirement for standard restructured advances, the additional provisioning requirement would be `32cr. Outlook and valuation: Despite weak macro fundamentals, the bank has aggressively grown its loan book in FY2012. We remain cautious on the banks asset quality, in-line with the sectoral outlook. Considering the valuations that the bank is trading at (0.7x FY2014 ABV), we recommend an Accumulate rating on the stock with a target price of `123.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 55.2 11.1 16.8 16.9

Abs. (%) Sensex Dena Bank

3m 4.3 24.3

1yr 9.5 63.1

3yr 9.8 60.7

Key financials (standalone)

Y/E March (` cr) NII % chg Net profit % chg NIM (%) EPS (`) P/E (x) P/ABV (x) RoA (%) RoE (%)
Source: Company, Angel Research

FY2011 1,763 60.3 612 19.6 2.8 18.3 6.1 1.1 .0 20.9

FY2012 2,101 19.1 803 31.3 2.7 22.9 4.9 0.9 1.0 20.7

FY2013E 2,479 18.0 907 13.0 2.7 25.9 4.3 0.8 1.0 19.4

FY2014E 2,818 13.7 844 (7.0) 2.8 24.1 4.7 0.7 0.8 15.6

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

Sourabh Taparia
022 3935 7800 Ext: 6872 sourabh.taparia@angelbroking.com

Please refer to important disclosures at the end of this report

Dena Bank | 2QFY2013 Result Update

Exhibit 1: 2QFY2013 performance (standalone)

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 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

2QFY13 2,194 1,690 495 10 1,600 594 134 115 106 19 9 728 291 179 112 437 105 60 (3) 47 333 93 240 28.0

1QFY13 2,137 1,651 449 10 27 1,525 612 142 110 104 32 6 754 296 172 124 458 103 95 (34) 42 355 116 239 32.7

% chg (qoq) 2.7 2.4 10.1 (6.5) 4.9 (3.0) (5.5) 4.6 1.5 (40.1) 64.0 (3.5) (1.8) 4.0 (9.7) (4.5) 1.1 (36.7) 11.9 (6.2) (19.8) 0.4 (474)bp

2QFY12 1,634 1,226 397 11 0 1,119 515 113 109 97 4 13 628 276 163 114 352 81 65 11 5 271 77 194 28.5

% chg (yoy) 34.3 37.8 24.8 (15.2) 43.0 15.4 18.1 4.8 9.3 382.2 (28.9) 15.9 5.3 10.1 (1.6) 24.2 28.5 (7.9) 821.1 22.9 20.6 23.8 (53)bp

FY2012 4,331 3,340 944 20 27 3,125 1,206 276 224 210 51 15 1,482 587 351 236 895 208 155 (36) 89 687 209 478 30.4

FY2011 3,162 2,403 743 16 0 2,201 961 238 232 209 5 23 1,199 539 331 209 660 147 87 48 12 513 151 362 29.5

% chg 37.0 39.0 27.1 22.9 42.0 25.5 15.9 (3.5) 0.1 855.8 (36.3) 23.6 8.8 6.2 12.9 35.7 41.6 77.3 672.6 34.0 38.1 32.2 91bp

Exhibit 2: 2QFY2013 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 594 134 728 291 437 105 333 93 240

Estimates 627 126 753 312 441 126 315 102 213

% chg (5.3) 6.4 (3.4) (6.8) (0.9) (16.8) 5.4 (9.2) 12.5

November 15, 2012

Dena Bank | 2QFY2013 Result Update

Exhibit 3: 2QFY2013 performance analysis (standalone)

Particulars Balance sheet Advances (` cr) Deposits (` cr) Credit-to-Deposit Ratio (%) Current deposits (` cr) Savings deposits (` cr) CASA deposits (` cr) CASA ratio (%) CAR (%) Tier 1 CAR (%) Profitability Ratios (%) Cost of deposits Yield on advances Reported NIM Cost-to-income ratio Asset quality Gross NPAs (` cr) Gross NPAs (%) Net NPAs (` cr) Net NPAs (%) Provision Coverage Ratio (%) Slippage ratio (%) Loan loss prov. to avg. assets (%)
Source: Company, Angel Research

2QFY13 1QFY13 % chg (qoq) 2QFY12 % chg (yoy) 58,852 83,552 70.4 6,485 20,135 26,620 31.9 12.1 8.1 7.6 11.8 2.9 39.9 1,171 2.0 721 1.2 72.5 2.0 0.3 59,642 79,736 74.8 5,282 19,361 24,643 30.9 12.4 8.3 7.7 12.0 3.1 39.3 1,076 1.8 597 1.0 75.6 1.4 0.4 (1.3) 4.8 (436)bp 22.8 4.0 8.0 95bp (30)bp (23)bp (4)bp (14)bp (20)bp 69bp 8.8 17bp 20.7 21bp (315)bp 68bp (17)bp 42,723 64,236 66.5 4,891 17,988 22,879 35.6 12.6 9.3 7.0 12.0 3.2 44.0 830 1.9 491 1.2 77.1 1.4 0.4 37.8 30.1 393bp 32.6 11.9 16.4 (376)bp (50)bp (119)bp 67bp (15)bp (36)bp (402)bp 40.9 4bp 46.8 7bp (467)bp 64bp (11)bp

Business growth continues to be aggressive; NIM declines sequentially

During 2QFY2013 as well, the bank continued with its aggressive pace of business growth, as both advances and deposits witnessed strong growth of 37.8% and 30.1% yoy. The loan growth was primarily driven by growth in priority sector advances and MSME book, which increased by 41.4% and 36.2% yoy, respectively. The management has guided for an 18% yoy loan growth for FY2013, with the MSME segment expected to remain the key driver behind this growth. CASA deposits grew at a healthy pace of 16.4% yoy, largely aided by strong growth of 32.6% yoy in current deposits, even as growth in saving deposits remained moderate at 11.9% yoy. CASA ratio declined by 376bp yoy to 31.9%. As of 2QFY2013, the bulk deposits (including CDs) for the bank stood at 21.5%. Yield on advances for the bank declined by 14bp qoq to 11.8%, while the cost of deposits declined by 4bp qoq to 7.6% on account of the sequential improvement in the CASA ratio. Hence the reported NIMs declined by 20bp qoq to 2.9%.

November 15, 2012

Dena Bank | 2QFY2013 Result Update

Exhibit 4: Business growth continues to be aggressive

Adv. yoy chg (%) 50.0 40.0 30.0 20.0 10.0 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13
Source: Company, Angel Research

Exhibit 5: CASA ratio improves sequentially

CASA ratio 36.0 34.0 32.0 CASA yoy growth (%, RHS) 16.4 9.3 11.4 10.8 20.0 16.0 12.0 8.0 4.0

Dep. yoy chg (%) 74.8 73.5

CDR (%, RHS) 76.0 74.0 70.4 72.0 70.0 68.0

70.1 66.5

18.0 20.1

15.7 13.0

26.5 20.2

39.1 26.1

37.8 30.1

35.6

34.9

34.5

30.9

31.9

66.0 64.0 62.0

30.0 28.0

(0.1)

(4.0)

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

Source: Company, Angel Research

Exhibit 6: 14bp sequential decline in Yield on Advance...

(%) 12.30 12.20 12.10 12.00 11.90 11.80 11.70 11.60 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 11.96 11.95 11.95 12.18

Exhibit 7: ... results in 20bp qoq NIM contraction

(%)

3.50 3.22 3.20 2.90 11.81 2.60 2.30 2QFY12

3.33

3.21 3.06 2.86

3QFY12

4QFY12

1QFY13

2QFY13

Source: Company, Angel Research

Source: Company, Angel Research

Subdued growth in non-interest income (excluding treasury), on lower recoveries from written-off accounts
During 2QFY2013, non-interest income (excluding treasury), grew at a subdued pace of 4.8% yoy to `115cr, on back of lower recoveries from written-off accounts. Recoveries from written off accounts came in at `9cr compared to `13cr in 2QFY2012, while CEB (commission, exchange and brokerage) income grew at a moderate pace of 9.3% yoy to `106cr. Overall, the non-interest income for the bank grew by 18.1% yoy to `134cr, mostly due to a strong performance on the treasury front (`19cr in 2QFY2013 compared to `4cr in 2QFY2013). The management had increased the employee strength of the treasury department and hence expected improved performances on the treasury front.

Asset quality pressures witnessed in 2QFY2013

The bank witnessed asset quality pressures during 2QFY2013, with both gross and net NPA levels increasing sequentially by 8.8% and 20.7%, respectively. Gross NPA ratio as of 2QFY2013 stands at 2.0% (1.8% in 1QFY2013), while net NPA ratio stands at 1.2% (1.0% in 1QFY2013). Slippages during the quarter came in at `288cr compared to `192cr in 1QFY2013 and `244cr in 4QFY2012. Incremental slippages were granular in nature, except for ~`90cr coming in from two
November 15, 2012

Dena Bank | 2QFY2013 Result Update

accounts. Annualized slippage ratio came in at 2.0%, higher compared to 1.4% in 1QFY2013. PCR (including technical write-offs) dipped by 315bp sequentially to 72.5%.

Additionally, the bank restructured advances worth `300cr compared to ~`852cr restructured in 1QFY2013 (out of total `852cr restructured in 1QFY2013, ~`725cr pertained to SEBs). As of 2QFY2013, the banks outstanding restructured book stood at ~`4,500cr, out of which ~`4,375cr constitutes standard restructured advances. As per RBIs 75bp increase in provisioning requirement for standard restructured advances, the additional provisioning requirement would be `32cr. Exhibit 8: Slippage ratio elevates in 2QFY2013...
Slippages (%) 2.5 2.0 1.5 1.0 0.4 0.5 0.4 0.4 0.4 0.3 0.2 Credit cost (%, RHS) 0.6 2.5 2.0 1.5 1.0 72.5 77.1 76.6 75.5 75.6

Exhibit 9: ...leading to sequentially higher NPA levels

Gross NPAs (%) Net NPAs (%) PCR (%, RHS) 80.0 78.0 76.0 74.0 72.0

1.9 1.2

1.9 1.1

1.7 1.0

1.8 1.0

1.4

1.5

2.2

1.4

2.0

2QFY12 3QFY12 4QFY12 1QFY13 2QFY13

2QFY12 3QFY12 4QFY12 1QFY13 2QFY13

2.0 1.2
561

0.5

0.5

70.0 68.0

Source: Company, Angel Research

Source: Company, Angel Research

Exhibit 10: Cost ratios sequentially higher

Cost-to-income ratio (%) 46.0 44.0 42.0 40.0 1.6 1.5 1.6 1.3 1.3 Opex to average assets (%, RHS) 2.0 1.5 1.0

Exhibit 11: Network expansion remains steady

Branches 1,450 1,400 1,350 1,300 520 535 543 545 ATMs (RHS) 570 560 550 540 530 520 510 500 490

1,298

1,307

1,342

1,358

44.0

41.8

41.2

39.3

39.9

38.0 36.0

1,250 1,200

2QFY12 3QFY12 4QFY12 1QFY13 2QFY13

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

Source: Company, Angel Research

Source: Company, Angel Research

November 15, 2012

1,417

0.5

Dena Bank | 2QFY2013 Result Update

Outlook and valuation

Dena Bank has a structurally strong CASA franchise (majority of the branches being in rural and semi-urban areas of CASA rich western India), aiding better NIMs than peers. Although the bank witnessed a sharp decline in its CASA ratio in 2QFY2013, the fall can be attributed to traction witnessed in term deposits, required to fuel its aggressive growth ambitions. Despite weak macro fundamentals, the bank has aggressively grown its loan book in FY2012. We remain cautious on the banks asset quality, in-line with the sectoral outlook. Considering the valuations that the bank is trading at (0.7x FY2014 ABV), we recommend an Accumulate rating on the stock with a target price of `123.

Exhibit 12: Key assumptions

Particulars (%) Credit growth Deposit growth CASA ratio NIMs Other income growth Growth in staff expenses Growth in other expenses Slippages Earlier estimates FY2013 16.0 11.0 32.5 2.8 2.9 10.0 20.0 1.8 75.0 FY2014 11.0 11.0 32.2 2.9 7.1 15.0 15.0 1.9 75.0 Revised estimates FY2013 16.0 13.0 32.0 2.7 4.4 10.0 17.0 1.8 72.5 FY2014 11.0 11.0 31.7 2.8 4.5 15.0 15.0 1.8 75.0

Coverage ratio
Source: Angel Research

Exhibit 13: 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 Var. (%) (2.7) 1.4 (1.9) (1.0) (2.6) (10.4) 0.8 (6.8) 4.4 Earlier estimates 2,853 642 3,495 1,511 1,983 720 1,263 410 853 Revised estimates 2,818 635 3,453 1,496 1,957 708 1,250 405 844 Var. (%) (1.2) (1.1) (1.2) (1.0) (1.3) (1.8) (1.1) (1.1) (1.1)

Earlier estimates 2,547 599 3,147 1,314 1,832 546 1,286 417 869

Revised estimates 2,479 608 3,087 1,301 1,786 489 1,296 389 907

November 15, 2012

Dena Bank | 2QFY2013 Result Update

Exhibit 14: P/ABV Band

Price (`) 250 200 150 100 50 0 0.3x 0.6x 0.9x 1.2x 1.5x

Mar-03

Mar-04

Mar-05

Mar-06

Mar-07

Mar-08

Mar-09

Mar-10

Mar-11

Mar-12

Source: Company, Angel Research

November 15, 2012

Mar-13

Sep-03

Sep-04

Sep-05

Sep-06

Sep-07

Sep-08

Sep-09

Sep-10

Sep-11

Sep-12

Dena Bank | 2QFY2013 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 Neutral Buy Accumulate Buy Accumulate Neutral Accumulate Accumulate Neutral Neutral Neutral Accumulate Accumulate Neutral Accumulate Neutral Neutral Accumulate Accumulate Accumulate Accumulate Neutral Accumulate Accumulate Neutral CMP (`) 1,233 462 646 1,054 23 418 141 106 752 279 54 434 77 397 113 107 177 76 1,395 325 763 2,153 123 74 230 67 56 Tgt. price (`) 1,476 491 1,270 25 492 152 817 294 445 123 195 347 843 2,437 131 250 74 Upside (%) 19.7 6.3 20.5 6.5 17.9 7.7 8.6 5.6 12.1 9.5 10.5 6.7 10.4 13.2 6.0 8.4 10.6 FY2014E P/ABV (x) 1.7 1.1 3.6 1.7 1.0 2.1 0.6 0.7 0.9 0.7 0.7 0.8 0.7 0.7 0.7 0.7 0.6 0.5 1.2 0.7 0.8 1.4 0.7 0.8 0.8 0.475 0.7 FY2014E Tgt. P/ABV (x) 2.0 1.2 2.0 1.1 2.5 0.7 1.0 0.8 0.7 0.8 0.7 0.8 0.9 1.6 0.8 0.9 0.525 FY2014E P/E (x) 8.9 8.9 17.9 12.7 6.0 9.9 4.2 4.9 5.5 4.4 4.5 5.4 3.6 4.0 4.7 4.9 4.2 3.8 7.2 5.0 4.6 8.4 4.5 4.5 4.9 3.1 4.9 FY2012-14E EPS CAGR (%) 16.0 6.7 27.9 21.7 4.2 23.5 (5.6) (4.8) 6.4 16.9 38.9 4.0 102.4 (3.4) 2.5 17.5 2.8 23.0 7.9 29.0 6.8 21.5 11.5 7.9 20.3 18.4 12.1 FY2014E RoA (%) 1.6 1.1 1.9 1.5 0.9 1.5 0.8 0.8 1.0 0.8 0.7 0.8 0.6 0.7 0.8 0.9 1.1 0.6 1.3 0.9 1.0 1.0 0.7 0.6 0.8 0.7 0.5 FY2014E RoE (%) 20.2 13.3 22.0 15.7 16.9 23.5 14.5 13.8 17.0 15.8 16.1 14.6 14.9 14.7 15.6 13.9 16.3 13.1 17.7 14.4 17.3 17.7 16.6 14.4 16.4 15.7 13.0

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

Company Background
Dena Bank is a mid-size PSU bank, with a balance sheet size of ~`94,000cr. The bank has a branch network of more than 1,400 branches and over 550 ATMs. The bank's branches are mainly concentrated in the rural and semi-urban areas (~52% of overall branches) of the western states (~60% of overall branches) with majority being in the state of Gujarat (~40% of overall branches).

November 15, 2012

Dena Bank | 2QFY2013 Result Update

Income statement (standalone)

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 (%) FY08 859 0.4 478 13.2 1,337 4.6 650 6.4 686 3.1 369 (14.8) 318 36.3 (42) (13.3) 360 78.5 FY09 1,064 23.9 430 (10.0) 1,495 11.8 768 18.1 726 5.8 185 (49.9) 541 70.5 119 21.9 423 17.5 FY10 1,100 3.3 589 36.9 1,689 13.0 848 10.4 841 15.7 154 (16.8) 687 26.8 176 25.6 511 21.0 FY11 1,763 60.3 534 (9.3) 2,297 36.0 1,073 26.6 1,224 45.6 326 111.7 898 30.8 287 31.9 612 19.6 FY12 2,101 19.1 582 9.1 2,683 16.8 1,155 7.6 1,528 24.9 563 72.8 966 7.5 163 16.9 803 31.3 FY13E 2,479 18.0 608 4.4 3,087 15.0 1,301 12.7 1,786 16.8 489 (13.1) 1,296 34.2 389 30.0 907 13.0 FY14E 2,818 13.7 635 4.5 3,453 11.9 1,496 15.0 1,957 9.6 708 44.7 1,250 (3.6) 405 32.4 844 (7.0)

Balance Sheet (standalone)

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 (%) FY08 287 1,514 33,943 22.6 395 1,066 1,437 38,642 3,533 505 10,283 23,024 25.8 412 885 38,642 22.9 FY09 287 1,884 43,051 26.8 52 1,391 1,796 48,461 4,982 875 12,473 28,878 25.4 405 847 48,461 25.4 FY10 287 2,315 51,344 19.3 46 1,516 2,079 57,587 4,355 759 15,694 35,462 22.8 407 908 57,587 18.8 FY11 333 3,323 64,210 25.1 176 1,516 1,281 70,838 4,721 687 18,769 44,828 26.4 404 1,429 70,838 23.0 FY12 350 4,127 77,167 20.2 2,365 1,516 1,863 87,388 5,195 356 23,028 56,693 26.5 407 1,710 87,388 23.4 FY13E 350 4,892 87,198 13.0 2,669 1,478 2,052 3,924 1,480 25,099 65,763 16.0 445 1,930 12.9 FY14E 350 5,594 96,790 11.0 2,961 1,441 2,292 3,872 1,641 28,299 72,997 11.0 79 2,141 10.9

98,641 109,429

98,641 109,429

November 15, 2012

Dena Bank | 2QFY2013 Result Update

Ratio Analysis (standalone)

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 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 (x) RoE 2.5 1.1 1.4 0.3 1.7 1.1 2.8 1.9 0.9 (0.1) 1.0 25.0 25.6 2.4 0.4 2.0 0.1 2.1 0.9 3.0 1.8 1.2 0.3 1.0 24.8 24.0 2.1 0.3 1.8 0.3 2.1 0.8 2.9 1.6 1.3 0.3 1.0 24.4 23.5 2.7 0.5 2.2 0.0 2.3 0.8 3.1 1.7 1.4 0.4 1.0 21.9 20.9 2.7 0.7 1.9 0.0 2.0 0.7 2.7 1.5 1.2 0.2 1.0 20.4 20.7 2.7 0.5 2.1 0.1 2.2 0.6 2.8 1.4 1.4 0.4 1.0 19.9 19.4 2.7 0.7 2.0 0.0 2.1 0.6 2.6 1.4 1.2 0.4 0.8 19.2 15.6 9.0 2.2 0.9 7.6 1.8 1.1 6.3 1.3 1.8 6.1 1.1 2.0 4.9 0.9 2.7 4.3 0.8 3.1 4.7 0.7 3.1 12.5 52.1 1.0 14.7 62.4 1.2 17.8 83.4 2.0 18.3 103.5 2.2 22.9 122.6 3.0 25.9 142.3 3.5 24.1 164.5 3.5 2.4 0.9 2.2 0.8 62.4 2.1 1.1 2.9 0.5 49.5 1.8 1.2 2.2 0.2 78.6 1.9 1.2 2.1 0.4 74.6 1.7 1.0 1.6 0.3 75.5 2.4 1.3 1.8 0.5 72.5 3.2 1.3 1.8 0.6 75.0 39.2 67.8 11.1 6.8 34.8 67.1 12.1 6.8 36.0 69.1 12.8 8.2 35.5 69.8 13.4 9.8 34.6 73.5 11.5 8.9 32.0 75.4 11.5 9.2 31.7 75.4 11.5 9.4 2.5 48.7 1.0 25.6 2.5 51.4 1.0 24.0 2.1 50.2 1.0 23.5 2.8 46.7 1.0 20.9 2.7 43.0 1.0 20.7 2.7 42.2 1.0 19.4 2.8 43.3 0.8 15.6 FY08 FY09 FY10 FY11 FY12 FY13E FY14E

November 15, 2012

10

Dena Bank | 2QFY2013 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

Dena 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%)

November 15, 2012

11