ING Vysya Bank--Only listed MNC bank
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=3443
Printed Date: 19/Apr/2025 at 7:30am
Topic: ING Vysya Bank--Only listed MNC bank
Posted By: shontou
Subject: ING Vysya Bank--Only listed MNC bank
Date Posted: 20/Oct/2011 at 9:35am
Conference Call
ING Vysya Bank
Expects NIM of 3.15-3.25% for FY12
ING Vysya Bank has come out with financial results for the quarter ended September 11 and conducted concall on 18 October 2011 to discuss its performance and the prospects. Jayant Mehrotra – CFO and Amrut Palan – Finance Controller addressed the call
Highlights of the call are:
Total Business has improved by 20% y-o-y to Rs 55571.48 crore at end of September 11 against Rs 46310.60 crore in the corresponding previous year.
Gross Advances inched up 22% y-o-y and 6% q-o-q to Rs 25290 crore for the quarter ended September 11. On q-o-q basis, Wholesale book grew 3% to Rs 10600 crore (22% y-o-y), Consumer banking book 4% to Rs 5472 crore, Agri & Rural Banking remained flat at Rs 1425 crore and Business Banking book by 13% to Rs 7793 crore. The management expects comfortable credit growth of 22-23% for FY12 if industry grow by 18%.
Deposits grew 18% y-o-y to Rs 30712 crore in the quarter ended September 11 against Rs 26069 crore in the corresponding previous year. Slower rise in current deposits by 9% to Rs 4799 crore and 5% increase in the savings deposits at Rs 5198 crore has curtailed growth in CASA deposits to just 7% to Rs 9997 crore. With the spike in the interest rates, term deposits reported robust growth of 33% to Rs 16439 crore while CD grew by 3% to Rs 4277 crore in quarter under review. Adjusting for certain large CASA flows at end of September 2010, CASA grew by 12% on y-o-y basis. CASA deposits accounted 32.6% in quarter under review against 35.9% in the corresponding previous year.
Credit deposit ratio has increased to 80.94% in quarter ended September 11 against 77.65% in the corresponding previous year.
Yield on advances jumped up to 11.37% in quarter under review against 9.78% in the corresponding previous quarter. On the other hand, Cost of deposits has also inched up to 6.88% in quarter ended September 11 from 4.85% in the corresponding previous year.
NIM has expanded from 3.02% in Q1FY12 to 3.35% in the quarter under review due to reprising of advances and capital infusion at end of Q1FY12. The management expects NIM to be around 3.15-3.25% for FY12.
Cost to income ratio stood at 59.36% in quarter under review against 58.84% in the corresponding previous year. The management expects C/I ratio to trend downwards in coming quarters.
Capital Adequacy ratio stood at 15% with Tier I at 11.79% at end of September 11 against 15.89% with Tier I capital of 12.49% in the quarter ended June 11. Risk Weighted assets at end of September 2011 was to the tune of Rs 30 thousand crore.
Investment book improved 12% to Rs 11495 crore at end of September 11. The modified duration of SLR book is 2.6 years. Size of AFS book is around Rs 2800 crore with modified duration less than 6 months.
Asset quality of the bank has improved in the quarter under review. Gross NPA has declined 15% y-o-y and 2% q-o-q to Rs 511.61 crore while that of Net NPA declined sharply by 53% y-o-y and 7% q-o-q to Rs 77.66 crore in the quarter ended September 11.
%GNPA has declined to 2.02% in quarter under review against 2.91% a year ago and 2.15% a quarter ago. %NNPA has also declined to 0.31% against 0.81% a year ago and 0.35% a quarter ago. Provision coverage ratio has increased from 72.8% to 84.8% in quarter under review.
Outstanding Restructured book stood at Rs 370 crore at end of September 11. During the quarter, the bank has added Rs 60 crore to restructured assets.
ROA improved to 1.12% in quarter under review from 0.86% a year ago. ROE has slipped to 12.21% in quarter under review against 12.27% a year ago.
Book Value per share has improved to Rs 247.1 at end of September 11 against Rs 197.3 in the corresponding previous year.
The Branch and ATM network has improved to 527 and 422 at end of September 11 against 488 and 367 respectively in the corresponding previous year.
-------------
Every day, self-proclaimed stock market "experts" tell us why the market just went up or down, as if they really knew. So where were they yesterday?
|
Replies:
Posted By: shontou
Date Posted: 20/Oct/2011 at 9:38am
Excerpts from Buy Recommendation about ING Vysya Bank
Can bank on it
This MNC associate bank is well placed to grow at above industry rate with better asset quality
ING Vysya Bank was formed by the coming together of the private sector Vysya Bank and global financial services producer ING Groep NV of Dutch origin in October 2002. It is the only listed Indian bank with a global financial major (market cap: US$ 45.8 billion on 27 May, 2011) as its single largest shareholder (around 44% stake) along with board and management control since October 2002. The bank's broad-based network of 938 outlets serviced over two million customers end 31 March 2011. Its balance sheet size (total assets) stands at Rs 39000 crore.
ING Vysya Bank’s interest income reported a robust rise of 48% to Rs 870.77 crore in the quarter ended June 2011. However, interest expended shot up 74% to Rs 608.81 crore. Net interest income (NII) was, thus, curtailed to grow at 10% to Rs 261.96 crore. The net interest margin (NIM) slipped to 3.02% as against 3.30% a quarter ago and 3.28% a year ago. Other income (OI) inched up 13% to Rs 140.52 crore. Recoveries fell 40% to Rs 6 crore and wealth management and advisory income remained flat at Rs 25 crore. Thus, net total income increased just 11% to Rs 402.48 crore. The cost-to-income ratio surged by 450 basis point (bps) to 63.5%, pulling down operating profit 1% to Rs 146.83 crore. However, the drastic fall in provisions and contingencies by 86% to Rs 6.21 crore lifted PBT 34% to Rs 140.62 crore. Finally, a 90-bps dip in the effective tax rate to 33.1% pushed up net profit 36% to Rs 94.02 crore.
Business grew 28% over the year and 2% over the quarter ended June 2011 to Rs 55136 crore. Deposits rose 29% and 4% to Rs 31313 crore. The current-account, savings-account ratio slipped 33.8% from 34.6% a quarter ago and 34% a year ago. Advances increased 26% over the year and 1% over the quarter to Rs 23823 crore. ING Vysya Bank expects credit book to grow higher than the industry in the fiscal ended March 2012 (FY 2012). The cost-to-income ratio inched up to 63.52% end June 11 as against 61.75% end March 2011. It expects to reduce this ratio in the coming quarters.
ING Vysya Bank has allotted 150,00,014 equity shares of face value Rs 10 each to qualified institutional buyers (QIB) for cash price of Rs 342.09 and 132,57,349 equity shares of face value of Rs 10 each by way of preferential allotment to ING group for cash price of Rs 344.23 to augment capital adequacy ratio of the bank. Thus, the capital-adequacy ratio increased to 15.89%, with tier I capital of 12.49% end June 2011 as against 12.96%, with tier I capital of 9.36% end of March 2011.
The asset quality improved in the quarter. The gross non-performing assets (NPA) in absolute terms declined 17% over the year and 6% over the quarter Rs 520.85 crore end June 2011. The percentage GNPA improved to 2.15% end June 2011 from 3.25% at end June 2010 and 2.30% end March 2011.
Net NPA (NNPA) also declined sharply by 65% over the year and 9% over the quarter to Rs 83.8 crore. The percentage of NNPA stood at 35 bps end June 2011 as against 1.36% a year ago and 39 bps a quarter ago. The provision coverage ratio was higher at 83.91% end June 2011 as against 59.01% a year ago. ING Vysya Bank has not restructured any advances in the quarter. The restructured book stood around Rs 300 crore end June 2011.
ING Vysya Bank opened five new branches in north India in the quarter, taking the branch count to 515 branches, and 409 ATM’s end June 2011. The management plans to add just eight-10 branches in the remaining part of FY 2012.
Return on asserts (ROA) improved to 0.95% in the quarter ended June 2011 as against 0.83% a year ago. Return on equity (ROE) improved to 13.76% as against 13.76%.
ING Vysya Bank’s balancesheet growth momentum has picked up along with the continued improvement in asset quality. It does not expect any significant fresh NPA formation in future. High provision coverage of 83.9% would provide sufficient cushion in case of unforeseen asset-quality pressure.
We expect ING Vysya Bank to register EPS of Rs 26.2 on fully diluted equity of Rs 149.57 crore in FY 2012. The FY 2011 book value (BV) of Rs 208 increased to around Rs 233 post-QIP and preferential allotment. BV is expected to be Rs 256 end FY 2012. The share trades at Rs 330, which gives price/ expected BV of 1.3. This is reasonable, considering that the bank is well-placed to record quality growth above the industry rate.
-------------
Every day, self-proclaimed stock market "experts" tell us why the market just went up or down, as if they really knew. So where were they yesterday?
|
Posted By: shontou
Date Posted: 18/Jan/2012 at 8:30am
Conference Call
ING Vysya Bank
Classification of MFI loans to NPA has slightly pulled down asset quality on sequential basis
ING Vysya Bank has come out with financial performance for the quarter ended December 11 and has conducted concall to discuss financial performance and the prospects of the bank. Jayant Mehrotra ¨C Chief Financial officer, Amrut Palan ¨C Financial controller addressed the call
Highlights of the call are:
Net Interest Income increased by 31.6% on a y-o-y basis and 6.6% q-o-q to Rs 324 crore in quarter ended December 11. Net Interest Margin (NIM) of the bank stood at 3.49% in Q3FY12 as compared to 3.35% in Q2FY12 and 3.1% in Q3FY11.
Management expects NIM for FY12E will be broadly maintained in the range of 3.25%©\3.35%.
Noninterest income is expected to show improvement in the current quarter with traction in asset processing fee and income from trade finance.
Advances grew by 22.2% aided by traction in wholesale and business banking segment.
Management expects the advance growth to be in the range of 20%©\22% for FY12. The focused areas for bank has been the large corporate, the SME and mortgages. The mix of the advances stood at 43% for wholesale, 31% for SME and 21.2% for consumer banking of which 83% constitutes mortgages.
Of the Rs 4600 crore mortgage loans outstanding, 18% - 20% would be LAP (Loan against Property).
The Bank has witnessed much traction in LAP as 50% of loans given in this fiscal happened in LAP. LAP gives higher yields by 75 -100 basis points versus normal mortgage loans.
Cost to Income ratio was 57% and it is expected to move downwards to 50-51% in next three to four years timeframe.
The Bank has transferred nearly 2000 employees under sales which are part of subsidiary to bank in month of August 11. The total employee strength stands at 9500. Unionize staff today would be about 37% of the total employee strength.
Yield on advances stood at 11.66% in quarter ended December 11 against 10.13% a year ago and 11.37% a quarter ago. Cost of deposits increased to 6.94% against 5.44% a year ago and 6.88% a quarter ago.
Provisions and contingencies marginally slipped 1% to Rs 33.44 crore in quarter, of which Provisions for standard assets were Rs 9.5 crore and the remaining on specific provisioning. Provisions are mainly on account of MFI loans which were fully provided for this quarter.
The quality of the asset portfolio continues to be healthy. NPL accretion in the quarter was largely because of categorization of MFI portfolio buyouts as NPLs. The bank has bought out Rs 44 crore of MFI loans of which 8 crore had already been classified as NPA in earlier quarter. The remaining Rs 36 crore has been classified as NPA in this quarter.
Gross NPA ratio improved further to 2.01% as of December 11 as compared to 2.66% as of December 10. Net NPA improved 2.31% compared to 0.64% and Provision cover improved about 85% compared to 76.4% as of 31st December 10. The outstanding restructured book is about 1.3% of total advances portfolio.
The Bank has continued to expand its national footprint with addition of 36 branches, up to 527 from 491 same time last year. It has added 50 ATMs also during this period of time. Further, It has applied for 35 new branches for 2012.
Gross NPA declined 8% y-o-y and increased 5% q-o-q to Rs 538.06 crore in the quarter ended December 11. The slippages was Rs 70 crore of which Rs 36 crore was on account of Micro finance and recovery and up gradation was about Rs 45-46 crore.
Capital Adequacy ratio has stood at 14.08% with Tier I capital of 8.82% at end of December 11 against 12.69% with Tier I of 10.99% in the corresponding previous year.
ROA improved to 1.13% against 0.88% a quarter ago and 1.12% a year ago. ROE stood at 12.29% against 13.04% a year ago and 12.21% a quarter ago.
-------------
Every day, self-proclaimed stock market "experts" tell us why the market just went up or down, as if they really knew. So where were they yesterday?
|
Posted By: TCSer
Date Posted: 18/Jan/2012 at 9:02am
STANCHART IDR is also another MNC bank listed n at very attractive valuations
-------------
Share market is nothing but a game of temperament. Success mantra Right Price,Right Business,Patience, Conviction .Do not do panic buying or selling.It may be the only profession where inactivity pays
|
Posted By: shontou
Date Posted: 08/Feb/2013 at 9:34pm
Conference Call
ING Vysya Bank
Expects RoA at 1.25% for FY2013 and improve further to 1.4-1.6% gradually
ING Vysya Bank conducted concall to discuss financial performance for the quarter ended December 2012 and the prospects of the bank. Shailendra Bhandari - Managing Director and CEO, Jayant Mehrotra - CFO addressed the call:
Highlights:
As per the bank macroeconomic headwinds have slowed down, but not disappeared completely. Bank is also concerned that the stress is not out of the system.
Bank expects the RoA to improve to 1.25% in FY2013, supporting the further increase to 1.4-1.6%.
Advances growth moderated to 18% at end December 2012 from 21% at end March 2012 with about Rs 1800 crore of advances were repaid in nine months ended December 2012 and Rs 700 crore in quarter ended December 2012.
Bank has started opening new branches in the quarter ended December 2012 after five quarter of no branch addition. Bank has opened new 5 branches pushing up the branch network to 532 branches at end December 2012.
Bank proposes to open new 25 branches by end September 2013. Meanwhile, bank also plans to add around 40-50 branches per year.
Bank proposes to improve the cost-to-income ratio to 55% in the near term and bring down further to 50% in the long term. The wage revision is likely to impact the cost-to-income ratio over next few quarters.
The employee count of the bank stands at 9800 employees, while bank has not made any recruitment in IBA category for last three years.
The fresh slippages for the quarter ended December 2012 were lower at Rs 16 crore, while the recovery and upgradations were higher at Rs 26 crore helping GNPA to decline on sequential basis. %GNPA declined 24 bps YoY and 13 bps QoQ to 1.77% at end December 2012.
Bank has restructured advances worth Rs.9 crore during the quarter ended December 2012. The restructured assets book stands at Rs.400 crore, at 1.3% of the total advances.
The asset quality improvement helped bank to reduce the provisions by 26% to Rs 24.6 crore, which consisted for Rs 16 crore for specific provisions, Rs 5.5 crore for standard assets and Rs 2.5 crore for miscellaneous items.
%NNPA dipped to 0.05% at end December 2012 from 0.13% at end September 2012 and 0.31% at end December 2011.
The risk weighted assets of the bank stood at Rs 41000 crore at end December 2012 up from Rs 37000 crore at end September 2012.
The capital adequacy ratio stood at 12.47% with the tier I capital of 9.56% at end December 2012. The Tier I ratio has higher by 100 bps including profit for nine months ended December 2012.
Net interest margin is expected to be 3.25-3.30% for FY2013.
Investment book of the bank increased 23% YoY to Rs 14349 crore at end December 2012. HTM proportion stands at 75%, while AFS accounts for 25% of the investment book. However, the duration of AFS portfolio is less than 6 months, so bank does not make mark-to market gains or losses.
-------------
Every day, self-proclaimed stock market "experts" tell us why the market just went up or down, as if they really knew. So where were they yesterday?
|
|