Result Previews Allahabad Bank , Andhra bank :Angel Broking,

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Result Previews
Allahabad Bank
Allahabad bank is scheduled to announce its 2QFY2012 results. Net interest
income is expected to grow by healthy 21.2% yoy (flat sequentially) to `1,175cr.
Non-interest income is expected to decline by 11.4% yoy (up 6.8% qoq) to `305cr.
The bank had switched over only accounts worth `50lakhs and above till
1QFY2012, and the rest of the switchover is expected to be completed by the
current quarter. Hence, we expect a 15.3% qoq increase in provisioning expenses
(up 35.7% yoy) to `368cr. Net profit is expected to decline by 9.9% yoy and 13.2%
qoq to `363cr. At the CMP, the stock is trading at valuations of 0.7x FY2013E
ABV. We maintain an Accumulate view on the stock with a target price of `169.
Andhra Bank
Andhra Bank is scheduled to announce its 2QFY2012 results. Net interest income
is expected to grow by 13.1% yoy (up by moderate 2.7% qoq) to `886cr.
Operating expenses are expected to increase by 11.6% yoy to `457cr. The bank
had switched over only accounts worth `25lakhs and above till 1QFY2012, and
the rest of the switchover is expected to be completed by the current quarter.
Hence, we expect a 19.4% qoq and a 76.7% increase in provisioning expenses to
`211cr. Net profit is expected to decline marginally by 3.3% yoy (down 24.0%
qoq) to `293cr. At the CMP, the stock is trading at valuations of 0.8x FY2013E
ABV. We maintain our Neutral view on the stock.