ING Vysya Bank Ltd is a joint venture between the ING Group and the Vysya Group. The ING Group is a global financial institution of Dutch origin that needs no introduction. The Vysya group is a respectable business house based in South India.
ING Vysya Bank has been on a tear with its financial performance and the stock price has kept pace. In FY 2013, ING Vysya Bank reported superb results.
The Net Profit (PAT) of the Bank for year ended 31 March 2013 increased by 34.3% to Rs. 613.0 crores from Rs. 456.3 crores reported in the corresponding period of the previous year. The Net Interest Income (NII) increased by 27.3% to Rs. 1,538.6 crores from Rs. 1,208.3 crores. Other income increased by 8.5% over the previous year. Total income increased by 20.6% to Rs. 2,265.5 crores from Rs. 1,878.1 crores for the year ended 31 March 2012. Operating profit increased by 29.3% to Rs. 992.7 crores and cost to income ratio improved to 56.2%. There was a significant increase in Return on assets at 1.26% from 1.09% for the year ended March 2012.
As of March 2013, ING Vysya Bank had 542 branches and extension counters, 27 satellite offices and 500 ATMs.
|
|
Q4 |
Q4 |
% |
YTD Mar YTD Mar |
% |
|
|
In Rs. Crores |
2012-13 |
2011-12 |
growth |
2012-13 2011-12 growth |
||
|
Net Interest Income |
423.7 |
319.2 |
32.7% |
1,538.6 |
1,208.3 |
27.3% |
|
Other Income |
200.4 |
196.8 |
1.8% |
726.9 |
669.8 |
8.5% |
|
Total Income |
624.1 |
516.0 |
20.9% |
2,265.5 |
1,878.1 |
20.6% |
|
Operating Costs |
339.8 |
295.7 |
14.9% |
1,272.8 |
1,110.2 |
14.6% |
|
Operating Profit |
284.3 |
220.3 |
29.0% |
992.7 |
767.9 |
29.3% |
|
Provision & Contingencies |
33.6 |
56.6 |
-40.7% |
91.2 |
113.7 |
-19.8% |
|
Profit before Tax |
250.7 |
163.7 |
53.1% |
901.4 |
654.2 |
37.8% |
|
Provision for Taxes |
80.4 |
36.3 |
121.2% |
288.5 |
197.9 |
45.8% |
|
Profit after Tax |
170.3 |
127.4 |
33.7% |
613.0 |
456.3 |
34.3% |
ING Vysya Bank’s stock price has kept pace with its’ financial performance. In the last one year, the stock has given a return of 70%.
|
|
As at |
As at |
|
|
In Rs. Crores |
31-Mar-13 |
31-Mar-12 |
% growth |
|
Deposits |
41,334.0 |
35,195.4 |
17.4% |
|
Savings Bank |
6,118.3 |
5,642.9 |
8.4% |
|
Current Account |
7,316.9 |
6,420.4 |
14.0% |
|
Demand Deposits |
13,435.1 |
12,063.3 |
11.4% |
|
CASA % |
32.5% |
34.3% |
|
|
Term Deposits |
27,898.9 |
23,132.2 |
20.6% |
|
Gross Advances |
32,340.3 |
29,248.4 |
10.6% |
|
Customer Assets |
34,370.4 |
29,306.0 |
17.3% |
|
Branches and Extension Counters |
542 |
527 |
|
|
ATMs |
500 |
430 |
|
|
Capital Adequacy Ratio |
13.24% |
14.00% |
|
Valuation wise, ING Vysya Bank is not very expensive as compared to its more illustrious peers. As of 31st March 2013, the capital was Rs. 154.85 crores and the reserves were Rs. 4,471 crores aggregating Rs. 4625 crores. The book value per share was about Rs. 298. At the current market price of about Rs. 600, the stock is quoting at a price to book value of about 2 times. While this is not cheap, it compares quite favourably with that of its private sector peers such as HDFC Bank (5.58), IndusInd Bank (5.82), Yes Bank (3.07) and Axis Bank (3.02).
There is also a good chance that ING Vysya Bank may be re-rated in line with the other new generation private banks owing to its’ strong corporate franchise.
ING Vysya Bank has run up quite dramatically in the past few weeks and it is due to take a pause. The stock can be bought in driblets at every dip for a target price of Rs. 740, being 2 times FY 2015 book value of about Rs. 370 (about 23% CAGR).
ING Vysya Press Release + Motilal Oswal + Nirmal Bang Research Reports
In last few years, 3 banks Yes Bank, IndusInd Bank and ING Vyasa have beaten other peers. Yes has best EPS growth among and I would be most comfortable buying it among all 3 of these.