Sector Update | 14
|
May 2019
8
Sector Update Financials
Financials
Technology
k
The rising significance of liability franchise: Version 2.0
Private banks strategically expanding presence in SA rich states
North has highest SA balance
SA per capita (INR)
All India (INR)
32,168
In our earlier report on liability franchise published in Mar’19 —
‘The rising
significance of liability franchise’,
we highlighted how the importance of a strong
liability franchise will increase as new universal banks and SFBs aggressively chase
deposits to drive business growth. We had also argued that unlike the historical trend,
M&A activities in the BFSI space will be incrementally driven by the importance of
liability franchise.
In this note, we dig deeper to understand the trend in deposits build-up across
geographical regions, population types and the branch expansion strategy being
followed by different lenders. The key takeaways are: (a) Over the past decade, the
Western region’s market share in total deposits has declined 532bp to 25.6%, but
gains were witnessed in the South (200bp), Central (210bp) and the East (200bp). (b)
In SA deposits, the South and Central regions have been witnessing strong traction
(~43% of incremental SA over the last decade). (c) Among states, Tamil Nadu, Haryana
and Rajasthan are gaining SA market share, growing at 18% CAGR (over the past five
years) and emerging as the new bastions of incremental SA growth. (d) Private Banks
aggressively expanded their branch presence in SA rich states; since FY15, almost 58-
75% incremental branch expansion of the top-6, large private banks were in the top-10
SA states. Consequently, about 63-73% of their branch network is present in the top-
10 SA states.
Top SA rich states – SA per capita
(INR k)
SA per Capita (INRk)
Deposits: Share gains in South, Central and the East; the West continues to lose
Over the past decade, share of the Western region in the total systemic deposits
has declined 532bp to 25.6% in 1HFY19. Its share in the CASA mix also declined
~300bp to 21.8% over the same period. The South/Central/East reported an
increase of 200bp/210bp/198bp in deposits market share over the same period.
The share of
Maharashtra
in total deposits has declined 600bp over the past
decade to 19.5%, followed by 300bp decline in
Delhi’s
share to ~10%, while UP
gained the maximum share by ~150bp.
South and Central regions gaining size – account for 43% of total SA mobilization
Over the past two decades, share of SA deposits has increased ~840bp to the
current ~33%. This has aided a steady increase in CASA mix, which improved by
~460bp to ~41% over the same period.
The momentum in SA growth remains strong with the system witnessing a 13%
CAGR over the last five years, led by robust 19% CAGR for private banks.
The South and the Central regions continue witnessing strong traction in SA
deposits and together account for ~43% of the total SA mobilization. Among
states, Tamil Nadu, Haryana and Rajasthan are gaining SA market share, growing
at 18% CAGR (over the past five years) and emerging as the new bastions of
incremental SA growth.
Research Analyst: Nitin Aggarwal
(Nitin.Aggarwal@MotilalOswal.com); +91 22 6129 1542 |
Parth Gutka
(Parth.Gutka@motilaloswal.com); +91 22 6129 1567
Alpesh Mehta
(Alpesh.Mehta@MotilalOswal.com) |
Himanshu Taluja
(Himanshu.Taluja@motilaloswal.com) |
Yash Agarwal
(Yash.Agarwal@motilaloswal.com)
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

Sector Update | Financials
North region has highest SA per capita, while South has lowest SA productivity
The North has the highest SA per capita of ~INR50k, followed by the West at
~INR41k (national average: ~INR32k). Among the top states, Delhi and Haryana have
the highest SA per capita at INR146k/INR61k, respectively. The South continues to
maintain the highest SA market share at 23.7%, but has the lowest branch
productivity with lowest SA per branch of ~INR230m (15% lower than national
average). This is mainly due to highest branch concentration at ~28% of total system
branches present in this region.
Branch expansion slowing, but private banks’ branch share rising steadily
After witnessing a strong momentum in branch expansion, which grew at ~8%
CAGR over FY09-16, the growth in branch expansion has moderated, witnessing
CAGR of only ~3.0% over the past three years. The moderation in branch growth
can also be attributed to the rising focus of banks on promoting usage of
alternate digital channels and maintaining strong cost control.
Private banks have been increasing their focus on improving branch productivity
(deposits/branch), which grew at a CAGR of ~11% v/s growth of ~4% CAGR for
PSBs over the past three years. The branch share of private banks has thus
increased from ~11% in FY09 to ~20% currently.
Private banks strategically expanding in SA rich states
The large private banks have strategically expanded their branches in SA rich
states. Around 58-75% of the incremental branch expansion of major private
banks has been in the top-10 SA states since FY15. Consequently, about 63-73%
of their total branch network is present in the top-10 SA states. Our analysis of
the branch expansion strategy of large private banks reveals:
AXSB:
The bank is increasing its branch presence in the key states of Haryana,
Punjab, Kerala and Maharashtra where SA per capita is high. Around 63% of the
bank’s incremental branch expansion was in the top-10 SA states since FY15
HDFCB:
The bank continues its focus on Uttar Pradesh and Maharashtra with
28% of its incremental branch expansion taking place in these states since FY15.
ICICIBC:
The bank is increasing its focus in the North by adding branches in
Punjab, Haryana, Delhi and Rajasthan. Around 68% of the bank’s total branches
are concentrated in the top-10 SA states.
KOTAK:
The bank has significant branch presence in the South - 32% of its total
branch network is in the South, aided by merger with ING Vysya Bank. KMB
reflects highest growth among private banks, in terms of CASA per branch
increasing from INR161m to INR791m over the past five years.
Private Banks’ share in total deposits increases to ~27% from ~18% in FY09
Over the past decade, deposits market share of private banks has increased from
~18% to ~27%, aided by aggressive branch expansion, while the share of PSBs has
declined by 1,200bp to ~69%. The CASA market share of private banks has also
improved to ~28% v/s ~18% in FY09, led by increased digital initiatives, effective
geographical expansion and higher SA rates.
Maintain preference for AXSB, ICICIBC and HDFCB
The outlook for corporate banks is improving as the NPL cycle is largely behind and
earnings momentum is gaining pace. Hence, we expect multiples to improve and
reflect the strength of the liability franchise, which these banks have built over the
past few years.
Top ideas:
We prefer ICICIBC, AXSB & HDFCB.
14 May 2019
2

Sector Update | Financials
Deposits market share: Gains in the East, South and Central regions; West
continues to lose
Deposit share of Maharashtra
in total deposits has declined
600bp over the past decade,
followed by a decline in Delhi
deposit share by 300bp
Over the past decade, share of the Western region in the total systemic deposits
has declined 532bp to 25.6% in 1HFY19. Its share in the CASA mix has also
declined ~300bp to 21.8% over the same period. The South, Central and Eastern
regions have reported an increase of +200bp/210bp/198bp, respectively, in
their deposits market share over the same period. Among the states, share of
Maharashtra in total deposits has declined 600bp over the past decade to
19.5%, followed by a decline in Delhi’s share (down 300bp to ~10%), while UP
(up 150bp) gained the maximum share.
The branch market share across regions has remained stable over the past
decade, reflecting an improvement in branch productivity (deposits per branch).
Exhibit 2:
North-East — exhibiting stable trends
Deposits MS (%)
2.3
2.3
2.4
2.5
CASA MS (%)
2.9
2.7 2.5
2.5
CASA MS (%)
22
Exhibit 1:
North — deposits market share remains stable
Deposits MS (%)
23
23
23
23
24
23
23
22
23
22
21
21
21
20
20
20
21
2.1
1.6
2.2
20
20
1.6
1.6
1.6
1.6
1.7
1.8
1.7
1.9
1.8
Exhibit 3:
Central — rising deposits trend over past decade
Deposits MS (%)
16%
14%
17%
16%
14%
13%
15%
15% 15%
11%
12%
13%
13%
14%
CASA MS (%)
17%
17%
17% 17%
Exhibit 4:
East — improving deposits trend over past decade
Deposits MS (%)
16%
16%
15%
CASA MS (%)
15%
14% 14% 14%
15% 15%
15%
12%
11%
13%
13%
12%
11%
11% 11%
13%
12%
12%
13%
Exhibit 5:
West — continues to lose deposits share
Deposits MS (%)
31
28
25
23
26
22
23
24
25
25
22
23
31
33
CASA MS (%)
31
30
26
26
Exhibit 6:
South consistently gaining deposits market share
Deposits MS (%)
23
23
22
21
CASA MS (%)
23
23
24
23
24
24
23
22
22
22
22
22
22
22
22
20
20
Source: MOFSL, RBI
Source: MOFSL, RBI
14 May 2019
3

Sector Update | Financials
Branch expansion slowing; private banks’ branch share rising steadily
After witnessing healthy branch expansion at ~8% CAGR over FY09-16, growth in
branch expansion has moderated and witnessed a tepid CAGR of ~3.0% over the
past three years. The moderation in branch growth can also be attributed to the
increasing focus of banks on promoting usage of alternate digital channels and
maintaining strong cost control.
Exhibit 7:
Branch expansion across population types over last decade
Branches YoY growth (%)
Rural
Semi-urban
Urban
Metropolitan
Pan India
PSBs
Private Banks
FY09
1.8%
7.2%
7.6%
7.3%
5.3%
5.0%
11.1%
FY10
3.0%
8.7%
10.0%
8.1%
6.8%
6.8%
13.5%
FY11
4.3%
10.9%
6.0%
6.7%
6.8%
6.2%
15.3%
FY12
7.5%
12.1%
8.0%
7.1%
8.7%
7.9%
16.0%
FY13
8.8%
10.4%
6.0%
5.1%
7.9%
7.3%
15.3%
FY14
14.1%
10.7%
7.8%
6.8%
10.4%
10.7%
15.8%
FY15
7.8%
7.2%
6.8%
6.3%
7.1%
7.0%
10.7%
FY16
6.9%
7.6%
6.5%
6.0%
6.8%
3.8%
24.2%
FY17
3.2%
3.7%
4.9%
4.9%
4.0%
2.2%
9.2%
FY18
2.1%
2.2%
1.9%
1.2%
1.9%
-0.7%
6.0%
CAGR
(FY09-
FY16)
7.4%
9.7%
7.3%
6.6%
7.8%
7.1%
15.8%
CAGR
(FY16-
FY18)
2.7%
3.0%
3.4%
3.0%
2.9%
0.8%
7.6%
Source: MOFSL, RBI
Over the past decade, private banks have aggressively expanded branch
network, increasing branch share from ~11% in FY09 to the current ~20%.
Private banks have also been increasingly focusing on improving branch
productivity (deposits/branch), which grew at ~11% CAGR v/s a ~4% CAGR for
PSBs over the past three years.
Exhibit 8:
Branch productivity (deposits per branch) improves for private banks
PSBs (INRm)
Private Banks (INRm)
827
813
860
868
737
895
789
882
817
918
834
865
836
947
883
1,050
1,122
Over the past few years, the
branch productivity gap has
widened significantly (by
21% gap) between Private
Banks & PSBs
655
774
842
909
929
336
399
464
561
623
695
Source: MOFSL, RBI
Exhibit 9:
Branch growth moderates across states over the past few years
Branch growth cagr FY16-FY18
2% 2% 3% 2%
4%
2%
3% 3% 3% 3%
3%
1%
2% 3% 3% 3%
4% 3%
Source: MOFSL, RBI
14 May 2019
4

Sector Update | Financials
Exhibit 10:
Private banks maintain lead in branch growth
PSBs yoy growth (%)
Private Banks yoy growth (%)
24
12
11
5
14
15
16
15
16
11
11
7
4
9
6
Exhibit 11:
Private banks branch share improves to 20%
PSBs
Private Banks
Foreign Banks
Others
21 20 20 19 18 18 17 17 16 16 15 16 16 17
9 10 11 11 12 13 14 15 15 16 18 19 20 20
69 69 70 69 70 69 69 68 68 68 66 65 63 63
9
4
6
7
6
8
7
2
-1
Source: MOFSL, RBI
Source: MOFSL, RBI,
others include RRB, Local area banks and
SFB
Private Banks’ share in total deposits increases to ~27% from ~18% in FY09
CASA market share of
private banks has also
improved to ~28% v/s ~18%
in FY09
Over the past decade, the deposits market share of private banks has increased
from ~18% to ~27%, aided by aggressive branch expansion, while the share of
PSBs has declined by 1,200bp to ~69%.
The CASA market share of private banks has also improved to ~28% v/s ~18% in
FY09, led by increased digital initiatives, effective geographical expansion and
higher SA rates. Over FY09-3QFY19, HDFCB, KMB and ICICIBC have reported the
highest CASA market share gains, while SBIN, PNB and CBK have reported
weaker trends among PSBs.
Exhibit 13:
CASA market share trend (%)
120%
4%
27%
6%
90% 14%
60%
PSBs
Private Banks
6%
19%
Others
5%
23%
4%
28%
Exhibit 12:
Deposits market share trend (%)
120%
90%
60%
30%
0%
78%
78%
76%
69%
5%
17%
PSBs
Private Banks
5%
17%
Others
4%
19%
30%
0%
80%
75%
73%
68%
Source: MOFSL, RBI
Note* only banks data
Source: MOFSL, RBI
Note* only banks data
Exhibit 14:
Private Banks have higher CASA ratio than PSBs
PSB
38%
38%
Private Banks
39%
37%
38%
37%
32%
31%
43%
41%
39%
Exhibit 15:
Trend in SA market share (%)
120
90
60
30
0
85
80
78
74
3
11
PSBs
Private Banks
3
17
Others
2
20
2
25
30%
30%
33%
34%
Source: MOFSL, RBI
Source: MOFSL, RBI
Note * only banks data
14 May 2019
5

Sector Update | Financials
Exhibit 16:
Private Banks gaining incremental deposits
market share to 66% v/s 23% over past five years
PSBs
Private Banks
Exhibit 17:
Private Banks gaining incremental CASA market
share at 49% v/s 25% over past five years
PSBs
Private Banks
Source: MOFSL, RBI
Source: MOFSL, RBI
Exhibit 18:
CASA market share trend over FY09-3QFY19
Banks
Private Banks
HDFCB
KMB
ICICIBC
YES
IIB
AXSB
FEDERAL
RBL
KVB
SIB
CUBK
LVB
DCB
PSU Banks
BOB
UNBK
INBK
BOI
PNB
CBK
SBIN
FY09
FY12
FY15
FY18
3QFY19
Mkt. share
gain(%) over
(FY09-3QFY19)
2.5
1.9
1.6
1.4
1.3
1.1
0.3
0.2
0.1
0.1
0.1
0.1
0.0
0.2
(0.1)
(0.1)
(0.1)
(0.4)
(0.6)
(3.1)
Source: MOFSL, RBI
4.7
0.4
4.7
0.1
0.3
3.8
0.6
0.0
0.2
0.3
0.1
0.1
0.1
4.2
3.1
1.7
3.8
6.0
4.2
28.8
5.5
0.6
5.1
0.3
0.5
4.2
0.6
0.0
0.3
0.3
0.1
0.1
0.1
4.8
3.2
1.7
3.9
6.2
3.7
26.6
6.5
0.9
5.3
0.7
0.8
4.7
0.7
0.1
0.3
0.3
0.2
0.1
0.1
5.3
3.0
1.6
3.9
6.0
3.7
26.2
7.3
2.1
6.1
1.6
1.4
5.2
0.8
0.2
0.4
0.4
0.2
0.1
0.1
4.5
3.0
1.6
3.8
5.6
3.5
25.5
7.2
2.3
6.2
1.5
1.6
4.9
0.9
0.3
0.4
0.4
0.2
0.1
0.1
4.4
3.0
1.6
3.6
5.7
3.6
25.7
14 May 2019
6

Sector Update | Financials
South and Central regions gaining size – account for 43% of total SA
mobilization, improved by more than 250bp over past one decade
Over the past two decades, the share of SA deposits has increased ~840bp to
the current ~33%. This has aided a steady increase in the CASA mix, which
improved ~460bp to ~41% over the same period.
The momentum in SA growth remains strong with the system witnessing 13%
CAGR over the past five years, led by stronger 19% CAGR for private banks.
The South and Central regions have been witnessing strong traction in SA
deposits and together account for ~43% of the total SA mobilization. Both
regions, have together gained SA deposit share by more than 250bp over the
past one decade.
Though the North has lost market share over the past one decade, it is regaining
lost momentum over the last few years. It grew at 17% CAGR over the last three
years. Also, states like Haryana and Rajasthan continue to gain SA share.
Among states, Tamil Nadu, Haryana and Rajasthan are gaining SA market share,
growing at 18% CAGR (over the past five years) and emerging as the new
bastions of incremental SA growth.
Exhibit 20:
CASA driven by strong momentum in SA growth
System CASA deposits (INRt)
CASA ratio (%)
Tamil Nadu, Haryana and
Rajasthan are gaining SA
share and emerging as the
new bastions of growth
Exhibit 19:
System SA ratio improves to ~33%
System SA deposits (INRt)
SA ratio (%)
3 3 4 5 6 7 8 10 12 15 16 18 21 23 26 34 38 39
3 4 5 6 7 8 10 13 14 18 21 24 25 28 31 35 44 48 49
Source: MOFSL, RBI
Source: MOFSL, RBI
Exhibit 21:
UP & Maharashtra maintain highest SA market share; Rajasthan & Haryana gaining traction
FY05
FY10
FY15
1HFY19
Source: MOFSL, RBI
14 May 2019
7

Sector Update | Financials
Exhibit 22:
State-wise deposits market share - top 10 states accounts for ~74% of total deposits
FY05
FY10
FY15
1HFY19
Source: MOFSL, RBI
Exhibit 23:
Region-wise SA market share
SA MS (%)
North
North-East
East
Central
West
South
FY05
21.8%
2.2%
17.0%
19.3%
19.8%
19.9%
FY10
22.7%
2.6%
15.5%
17.7%
19.1%
22.4%
FY15
19.7%
2.7%
16.6%
19.1%
18.5%
23.4%
1HFY19
20.3%
2.6%
16.1%
19.0%
18.3%
23.7%
Exhibit 24:
Region-wise SA growth – 5 year CAGR
SA growth (%)
North
North-East
East
Central
West
South
FY05
19.1%
20.1%
17.7%
18.1%
17.5%
20.6%
FY10
21.8%
23.3%
20.0%
19.7%
21.5%
22.1%
FY15
10.5%
15.3%
15.4%
15.5%
13.0%
14.6%
1HFY19
16.6%
14.7%
14.6%
15.6%
15.2%
16.1%
Source: MOFSL, RBI
Source: MOFSL, RBI
North region has highest SA per capita followed by the West
The North region has the highest SA per capita of ~INR50k, followed by the West
at ~INR41k (national average: ~INR32k). Among the top states, Delhi & Haryana
have the highest SA per capita at INR146k/INR61k, respectively.
The South continues to maintain highest SA market share with 23.7%, but has
the lowest branch productivity with lowest SA per branch of ~INR230m (15%
lower than national average). This is mainly due to highest branch concentration
at ~28% of total system branches present in this region.
Exhibit 25:
North has highest SA balance
SA per capita (INR)
All India (INR)
Exhibit 26:
SA/Branch also strong in the North
SA/Branch (INRm)
268.7
Total
32,168
49,654
40,705
36,543
24,040
23,137
22,837
330.6
303.3
258.9
258.1
240.0
229.8
Source: MOFSL, RBI
Source: MOFSL, RBI
14 May 2019
8

Sector Update | Financials
Exhibit 27:
North has highest CASA per capita
CASA per capita (INR)
All India (INR)
Exhibit 28:
CASA/Branch strong in the North
CASA/Branch (INRm)
337
Total
40,384
61,844
60,871
45,660
27,483
27,273
26,736
494
378
299
293
289
287
Source: MOFSL, RBI
Source: MOFSL, RBI
Exhibit 29:
Top SA rich states – SA per capita (INR k)
146.5
SA per Capita (INRk)
Exhibit 30:
Top-10 states have 71% of total CASA share
CASA (INRt)
55%
CASA ratio (%)
63%
29%
5.4
3.5
39% 41% 41% 40%
44% 47%
60.5
34%
42.6 42.4 34.8 34.2
27.4 24.1 22.4
18.2
7.8
3.4
3.1
3.0
2.6
2.1
1.9
1.9
Source: MOFSL, RBI
Source: MOFSL, RBI
14 May 2019
9

Sector Update | Financials
AXSB: Increased focus on Maharashtra, Haryana, Punjab & Kerala
~63% of incremental branch expansion occurred in top-10 SA states since FY15
Axis Bank has expanded incremental branches in SA rich states, such as
Maharashtra, Tamil Nadu, Karnataka, Haryana and Punjab where the SA per
capita is high.
Around 63% of its total incremental branches have opened in the top-10 SA
states, since FY15.
Around 69% of total AXSB’s branch network is concentrated in the top-10 states,
which have a high SA market share.
Axis Bank recently guided for an increase in its pace of branch expansion to
reach branch count around 5,000 v/s 4,050 branches as on FY19.
Exhibit 32:
Strong presence in states with high SA/Capita
% of total branches
42.6
4%
3%
4%
4%
4%
12%
8%
8%
8%
49.7
34.8 34.2
27.4 24.1
7%
7%
6%
6%
SA per Capita (INRk) (RHS)
42.4 60.5
24.5 19.9
4%
4%
Exhibit 31:
~69% of total branch network in top-10 states
% of total branches
12%
5%
8%
6%
8%
6%
7%
7%
12%
7%
6%
SA MS (%) RHS
4%
12%
8%
6%
Source: MOFSL, RBI
Source: MOFSL, RBI
Exhibit 33:
Incremental branch expansion in key states
Incremental Branch addition FY15-1HFY19
12%
6%
151
107
7%
105
5%
87
87
12%
6%
4%
86
65
3%
65
4%
62
4%
56
SA MS (%)
Exhibit 34:
Region-wise branch presence (%)
Central
13%
East
16%
South
24%
North-East
3%
North
23%
West
20%
Source: MOFSL, RBI
Source: MOFSL, RBI
14 May 2019
10

Sector Update | Financials
HDFCB: Continued focus on Uttar Pradesh & Maharashtra
~28% of incremental branch expansion in UP & Maharashtra, since FY15
With ~29% of its total branches concentrated in the North, HDFCB has strong
branch presence in the region.
The bank is expanding its presence in the Central region and has increased its
branches in UP at ~15% CAGR over FY14-18.
Around 70% of the bank’s incremental branch expansion is in the top-10 SA
states with 28% of incremental branches opened in UP and Maharashtra.
Among private banks,
HDFCB has the highest number of branches in UP and the
second-highest in Maharashtra. The bank continues to build its dominance in
these states as it continues to increase branches in these states.
Exhibit 36:
Strong focus in the North
Exhibit 35:
~70% of total branch network in top-10 states
% of total branches
12% 12%
5%
8%
7%
4%
7%
6%
6%
6%
4%
5%
4%
4%
6%
SA MS (%) (RHS)
West
21%
Central
15%
East
10%
4%
11% 10% 10%
5%
South
22%
North
29%
North- East
2%
Source: MOFSL, RBI
Source: MOFSL, RBI
Exhibit 37:
Strong presence in UP & Maharashtra
Uttar Pradesh
Maharashtra
540
266
724
Exhibit 38:
Incremental branch addition in key states
Incremental branch since FY15-1HFY19
12% 12%
SA MS(%)
453
255
471
6%
131
86
63
4%
47
5%
45
4%
45
7%
42
4%
33
6%
3%
28
28
Source: MOFSL, RBI
Source: MOFSL, RBI
14 May 2019
11

Sector Update | Financials
ICICIBC: Increased branch focus in the Northern region
~65% of the bank’s incremental branch expansion in the top-10 SA states
ICICIBC has the highest branch presence in Maharashtra with ~15% of the total
branches present in the state v/s other large private banks.
Among large private banks, ICICIBC has the highest branches in Tamil Nadu with
~10% of its total branches present in the state.
Around 65% of the bank’s incremental branch expansion is in the top-10 SA
states.
Over the last decade, the bank has increased focus towards the Northern
regions, thus driving an increase in its branch share from 18% in FY09 to 25%
currently.
The bank has incrementally added branches, particularly in the key states of
Punjab, Haryana, Delhi and Rajasthan. Around 22% of the bank’s incremental
branch expansion has been in these states since FY15.
Exhibit 40:
~72% of total branch network in top-10 states
12%
% of total Branches
12%
6%
15%
4%
10%
9%
5%
7%
7%
4%
6%
5%
5%
4%
5%
5%
6%
4%
4%
SA MS
Exhibit 39:
~75% of branch network in North, South & West
West
23%
Central
12%
East
11%
North-East
2%
South
27%
North
25%
Source: MOFSL, RBI
Source: MOFSL, RBI
Exhibit 41:
Branch proportion (%) — strong presence in Maharashtra, followed by Tamil Nadu & Rajasthan
Top SA states
Uttar Pradesh
Maharashtra
Karnataka
West Bengal
Tamil Nadu
Delhi
Gujarat
Bihar
Rajasthan
Haryana
% of total branches in top SA focused states
SA MS (%)
12%
12%
7%
6%
6%
6%
5%
5%
4%
4%
AXSB
6.5
11.6
6.3
6.9
7.7
3.8
8.2
3.0
3.8
5.6
63.4
HDFCB
9.8
11.3
5.6
3.9
5.3
5.5
8.1
2.1
3.7
7.1
62.3
ICICIBC
5.5
14.9
5.9
4.8
10.0
4.0
7.0
2.0
9.3
4.3
67.7
IIB
8.0
11.9
3.5
4.4
5.5
3.4
7.6
2.2
7.4
7.4
61.2
KMB
4.8
21.1
11.1
2.5
5.5
6.8
9.5
1.2
4.2
4.1
70.7
YES
5.3
17.6
6.8
2.3
3.5
8.6
9.2
0.3
8.7
10.9
73.3
Source: MOFSL, RBI
14 May 2019
12

Sector Update | Financials
IIB: Re-balancing its branch presence
Increasing focus in Central and North India, while reducing concentration in the
South
IIB has increased its focus in Central and North India with ~45% of its total
branches present in these two regions.
The bank’s branch concentration in the South has declined ~1180bp to ~20%
over the past decade.
The bank is rapidly increasing its branches in SA rich states such as Maharashtra,
Punjab, Rajasthan, etc.
Exhibit 43:
Aggressive branch expansion in key states
growth cagr (FY14-18)
12%
4%
East
12%
6%
8%
6%
% of total branch network
8%
4%
7%
7%
8%
Exhibit 42:
Strong focus in the North
West
20%
Central
17%
13% 17% 19% 23% 24% 26% 29% 29% 32% 36%
North-East
3%
South
20%
North
28%
Source: MOFSL, RBI
Source: MOFSL, RBI
Exhibit 44:
Incremental branch addition of large private banks since FY15 in top-10 SA focused states
Top SA states
Uttar Pradesh
Maharashtra
Karnataka
West Bengal
Tamil Nadu
Delhi
Gujarat
Bihar
Rajasthan
Haryana
Incremental branches in top 10 SA states since FY15
Total Incremental branches since FY15-1HFY19
% of incremental branches in top 10 SA states
AXSB
87
151
105
86
107
40
87
55
50
65
833
1,316
63%
HDFCB
131
86
42
27
28
63
45
26
45
47
540
774
70%
ICICIBC
43
113
59
36
75
44
49
27
41
44
531
817
65%
IIB
45
78
24
26
40
21
36
16
58
38
382
664
58%
KMB
39
85
128
17
42
29
38
10
20
29
437
741
59%
YES
13
91
55
11
21
25
55
1
52
34
358
479
75%
Source: MOFSL, RBI
14 May 2019
13

Sector Update | Financials
KMB: Strong presence in South and West region
Around 63% of the bank’s branch presence in South & West region
Around 63% of KMB’s total branch network is concentrated in the South and the
West regions.
The bank has ~21% of its total branches present in Maharashtra alone.
The bank has significant presence in the South, which accounts for 32% of the
total branch network – aided by its merger with ING Vysya Bank.
KMB has the highest SA per branch capita at ~INR531m, followed by HDFCB at
~INR487m.
KMB has shown the highest growth among peers, with its CASA per branch
increasing from INR161m to INR791m over the past five years.
Exhibit 46:
21% of branches present in Maharashtra alone
12%
7%
North
21%
% of total branches
SA MS (%)
12%
Exhibit 45:
63% of branch network in West & South regions
Central
9%
East
6%
West
31%
5%
3%
9%
8%
6%
4%
7%
6%
6%
4%
5%
5%
5%
4%
4%
21% 11%
South
32%
Source: MOFSL, RBI
Source: MOFSL, RBI
Exhibit 47:
KMB has the highest SA/Branch
SA/Branch (INRm)
531
487
433
417
Exhibit 48:
KMB has the highest CASA/Branch
CASA/Branch (INRm)
791
321
680
672
381
615
601
491
Source: MOFSL, Company
Source: MOFSL, Company
14 May 2019
14

Sector Update | Financials
Annexure
Exhibit 49:
Key states’ market share — Haryana, Rajasthan and Tamil Nadu gaining traction in SA
Key States
Central
UP
Uttarakhand
MP
Chhattisgarh
East
Bihar
Jharkhand
West Bengal
Odisha
Sikkim
North
Delhi
Punjab
Haryana
Chandigarh
Jammu & Kashmir
Himachal Pradesh
Rajasthan
North-East
Assam
Meghalaya
Mizoram
Arunachal Pradesh
Nagaland
Manipur
Tripura
South
Andhra Pradesh
Telangana
Karnataka
Lakshadweep
Tamil Nadu
Kerala
Puducherry
West
Gujarat
Maharashtra
Goa
Dadra & Nagar Haveli
Total
Population
(m)
308.1
199.8
10.1
72.6
25.5
271.3
104.1
33.0
91.3
42.0
0.6
158.9
16.8
27.7
25.4
1.1
12.5
6.9
68.5
45.2
31.2
3.0
1.1
1.4
2.0
2.9
3.7
252.5
84.6
NA
61.1
0.1
72.1
33.4
1.2
174.9
60.4
112.4
1.5
0.3
1,210.9
Branches
MS (%)
19.8%
11.9%
1.4%
4.7%
1.8%
16.7%
5.0%
2.1%
6.1%
3.4%
0.1%
17.9%
2.5%
4.5%
3.4%
0.3%
1.2%
1.1%
5.0%
3.0%
1.9%
0.2%
0.1%
0.1%
0.1%
0.1%
0.4%
27.7%
4.8%
3.6%
7.1%
0.0%
7.6%
4.4%
0.2%
14.9%
5.6%
8.8%
0.5%
0.0%
100.0%
SA
MS (%)
19.0%
12.4%
1.3%
3.7%
1.6%
16.1%
4.9%
2.1%
6.4%
2.6%
0.1%
20.3%
6.3%
3.5%
3.9%
0.5%
1.1%
0.9%
3.9%
2.6%
1.7%
0.2%
0.1%
0.1%
0.1%
0.1%
0.3%
23.7%
2.9%
3.8%
6.7%
0.0%
6.3%
3.9%
0.2%
18.3%
5.4%
12.3%
0.5%
0.1%
100.0%
CA
MS (%)
10.0%
5.9%
0.7%
2.4%
1.0%
9.8%
1.7%
1.4%
5.1%
1.5%
0.05%
19.5%
10.7%
1.5%
3.2%
0.4%
1.0%
0.2%
2.4%
2.1%
0.9%
0.5%
0.1%
0.2%
0.1%
0.1%
0.1%
23.1%
2.2%
4.6%
7.7%
0.0%
6.6%
1.9%
0.1%
35.4%
5.3%
29.8%
0.3%
0.1%
100.0%
Deposits
MS (%)
13.5%
8.3%
1.1%
3.0%
1.2%
13.3%
2.8%
1.8%
6.3%
2.4%
0.1%
21.8%
10.1%
3.1%
3.3%
0.6%
0.9%
0.8%
3.0%
1.8%
1.1%
0.2%
0.1%
0.1%
0.1%
0.1%
0.2%
23.9%
2.4%
3.7%
7.3%
0.0%
6.3%
4.0%
0.1%
25.6%
5.5%
19.5%
0.6%
0.04%
100.0%
SA/Branch CASA/Branch
(INR m)
(INR m)
258
293
280
314
249
282
213
248
236
276
259
299
263
286
263
309
282
340
209
239
200
233
303
378
687
984
213
236
313
379
480
577
251
309
212
228
211
244
240
289
244
278
228
364
226
274
342
482
269
356
255
326
188
213
230
287
162
193
281
369
252
326
643
667
224
284
235
265
241
274
331
494
261
326
377
611
275
316
334
416
269
337
SA per
Capita
(INR k)
24.0
24.1
51.6
19.9
24.1
23.1
18.2
24.4
27.4
24.5
48.0
49.7
146.5
49.7
60.5
182.5
35.6
49.8
22.4
22.8
21.2
26.8
40.4
38.0
22.7
16.7
27.8
36.5
13.3
NA
42.4
130.7
34.2
45.0
47.6
40.7
34.8
42.6
127.6
59.2
32.2
CASA per
Capita
(INR k)
27.3
27.1
58.4
23.2
28.1
26.7
19.8
28.7
33.0
28.1
56.2
61.8
209.8
55.1
73.2
219.2
43.8
53.3
25.9
27.5
24.1
42.6
48.9
53.6
30.1
21.3
31.5
45.7
15.9
NA
55.0
135.5
43.3
50.8
54.3
60.9
43.5
69.0
146.7
73.8
40.4
Source: MOFSL, RBI
14 May 2019
15

Sector Update | Financials
Exhibit 50:
CA, SA and total deposits growth across regions
Population Deposits
Key States
(m)
(INRt)
Central
308.1
16.0
UP
199.8
9.8
Uttarakhand
10.1
1.3
MP
72.6
3.6
Chhattisgarh
25.5
1.4
East
271.3
15.7
Bihar
104.1
3.3
Jharkhand
33.0
2.1
West Bengal
91.3
7.4
Odisha
42.0
2.8
Sikkim
0.6
0.1
North
158.9
25.8
Delhi
16.8
12.0
Punjab
27.7
3.6
Haryana
25.4
3.9
Chandigarh
1.1
0.7
Jammu & Kashmir
12.5
1.1
Himachal Pradesh
6.9
0.9
Rajasthan
68.5
3.6
North-East
45.2
2.2
Assam
31.2
1.3
Meghalaya
3.0
0.2
Mizoram
1.1
0.1
Arunachal Pradesh
1.4
0.1
Nagaland
2.0
0.1
Manipur
2.9
0.1
Tripura
3.7
0.2
South
252.5
28.3
Andhra Pradesh
84.6
2.9
Telangana
NA
4.3
Karnataka
61.1
8.7
Tamil Nadu
72.1
7.5
Kerala
33.4
4.7
Puducherry
1.2
0.2
West
174.9
30.4
Gujarat
60.4
6.5
Maharashtra
112.4
23.1
Daman & Diu
0.2
0.0
Goa
1.5
0.7
Dadra & Nagar Haveli
0.3
0.0
Total
1,210.9
118.5
CA ratio
(%)
6%
6%
5%
7%
7%
6%
5%
7%
7%
5%
5%
7%
9%
4%
8%
6%
10%
3%
7%
10%
7%
21%
11%
17%
15%
16%
6%
33%
8%
11%
9%
9%
4%
5%
23%
8%
13%
6%
4%
12%
8%
SA ratio
(%)
46%
49%
40%
41%
45%
40%
58%
39%
34%
36%
32%
31%
20%
38%
39%
29%
41%
37%
43%
47%
49%
36%
52%
41%
46%
57%
45%
8%
39%
34%
30%
33%
32%
35%
12%
32%
21%
38%
27%
49%
33%
CASA ratio
(%)
52%
55%
45%
47%
52%
46%
63%
46%
41%
42%
37%
38%
29%
42%
47%
35%
51%
40%
49%
57%
56%
57%
63%
57%
61%
73%
51%
41%
46%
44%
39%
41%
36%
39%
35%
40%
34%
44%
31%
61%
41%
CA CAGR
(FY16-18)
(%)
15%
16%
8%
14%
19%
10%
5%
2%
10%
24%
16%
12%
10%
3%
23%
11%
22%
3%
13%
19%
19%
4%
29%
55%
18%
38%
-3%
8%
22%
15%
15%
12%
-29%
28%
10%
17%
9%
13%
10%
31%
11%
SA CAGR
(FY16-18)
(%)
19%
19%
18%
21%
21%
17%
19%
19%
16%
15%
26%
20%
21%
15%
28%
13%
12%
21%
20%
21%
22%
19%
21%
24%
22%
20%
16%
20%
24%
18%
18%
17%
30%
19%
19%
21%
19%
15%
17%
22%
19%
CASA CAGR
Deposits
(FY16-18)
CAGR
(%)
(FY16-18) (%)
19%
12%
18%
13%
17%
13%
20%
9%
21%
13%
16%
11%
18%
14%
16%
11%
15%
8%
16%
13%
24%
17%
18%
11%
17%
8%
14%
9%
27%
20%
13%
5%
14%
13%
19%
13%
18%
14%
21%
14%
21%
14%
14%
8%
23%
19%
33%
22%
20%
14%
25%
22%
13%
13%
17%
10%
24%
14%
17%
8%
17%
9%
16%
10%
15%
10%
21%
15%
16%
4%
20%
11%
15%
3%
15%
11%
16%
8%
24%
12%
17%
9%
Source: MOFSL, RBI
14 May 2019
16

Sector Update | Financials
Exhibit 51:
Top-20 districts by SA market share — Top-10 districts account for ~25% of total SA deposits
Top 20 District
New Delhi
Bangalore
Mumbai Suburban
Mumbai
Chennai
Hyderabad
Kolkata
Pune
Gurgaon
Patna
Lucknow
Ahmedabad
Thane
North 24 Parganas
Jaipur
Medchal-Malkajgiri
Gautam Buddha Nagar
Surat
Ernakulam
Ludhiana
State
Delhi
Karnataka
Maharashtra
Maharashtra
Tamil Nadu
Telangana
West Bengal
Maharashtra
Haryana
Bihar
Uttar Pradesh
Gujarat
Maharashtra
West Bengal
Rajasthan
Telangana
Uttar Pradesh
Gujarat
Kerala
Punjab
Region
North
South
West
West
South
South
East
West
North
East
Central
West
West
East
North
South
Central
West
South
North
SA MS
(%)
6.3%
3.6%
2.8%
2.3%
2.1%
1.8%
1.7%
1.7%
1.3%
1.3%
1.3%
1.2%
1.2%
1.0%
0.9%
0.7%
0.7%
0.6%
0.6%
0.6%
Branch MS
(%)
2.5%
1.7%
1.0%
0.7%
1.1%
0.8%
1.0%
1.1%
0.5%
0.6%
0.7%
0.9%
0.7%
0.7%
0.8%
0.5%
0.3%
0.5%
0.7%
0.6%
SA growth CAGR
FY16-FY18
21%
20%
16%
17%
18%
15%
15%
18%
40%
27%
18%
23%
22%
14%
20%
NA
19%
20%
26%
13%
Branch growth
CAGR FY16-FY18
2%
4%
1%
0%
3%
3%
0%
4%
4%
4%
2%
3%
3%
3%
5%
10%
3%
4%
2%
3%
Source: MOFSL, RBI
14 May 2019
17

Sector Update | Financials
Explanation of Investment Rating
Investment Rating
BUY
SELL
NEUTRAL
UNDER REVIEW
NOT RATED
Expected return (over 12-month)
>=15%
< - 10%
> - 10 % to 15%
Rating may undergo a change
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In
case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within following 30 days take appropriate measures to make the recommendation
consistent with the investment rating legend.
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the Regulations, is engaged in the business of providing Stock broking services,
Investment Advisory Services, Depository participant services & distribution of various financial products. MOFSL is a subsidiary company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of
which are available on www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading Member with National Stock Exchange of India Ltd.
(NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and National Commodity & Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository
Services Limited (CDSL) National Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance Regulatory & Development Authority of India
(IRDA) as Corporate Agent for insurance products. Details of associate entities of Motilal Oswal Financial Services Limited are available on the website at http://onlinereports.motilaloswal.com/Dormant/documents/Associate%20Details.pdf
Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the website at https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
MOFSL, it’s associates, Research Analyst or their relative may have any financial interest in the subject company. MOFSL and/or its associates and/or Research Analyst may have actual/beneficial ownership of 1% or more securities in the subject company in
the past 12 months. MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and buy or sell the securities or derivatives thereof of companies
mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower
to such company(ies) or may have any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the specific recommendations made by the
analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report. Research
Analyst may have served as director/officer, etc. in the subject company in the past 12 months. MOFSL and/or its associates may have received any compensation from the subject company in the past 12 months.
In the past 12 months , MOFSL or any of its associates may have:
a) managed or co-managed public offering of securities from subject company of this research report,
b) received compensation for investment banking or merchant banking or brokerage services from subject company of this research report,
c) received compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company of this research report.
d) Subject Company may have been a client of MOFSL or its associates in the past 12 months.
MOFSL and it’s associates have not received any compensation or other benefits from the subject company or third party in connection with the research report. To enhance transparency, MOFSL has incorporated a Disclosure of Interest Statement in this
document. This should, however, not be treated as endorsement of the views expressed in the report. MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the
recipients of this report should be aware that MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific merchant banking, investment banking or brokerage
service transactions. Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not consider demat accounts which are opened in name of
MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from clients which are not considered in above disclosures. Above disclosures include beneficial holdings lying in demat account of MOFSL
which are opened for proprietary investments only. While calculating beneficial holdings, It does not consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns
DP income from clients which are not considered in above disclosures.
Terms & Conditions:
This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and may not be altered in any way, transmitted to, copied or distributed, in part or in
whole, to any other person or to the media or reproduced in any form, without prior written consent of MOFSL. The report is based on the facts, figures and information that are considered true, correct, reliable and accurate. The intent of this report is not
recommendatory in nature. The information is obtained from publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty, representation of warranty, express or implied, is made as to
its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or
subscribe for securities or other financial instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not treat recipients as customers by virtue of their receiving
this report.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or will be directly or indirectly related to the specific
recommendations and views expressed by research analyst(s) in this report.
Disclosures:
Disclosure of Interest Statement
Analyst ownership of the stock
Companies where there is interest
No
A graph of daily closing prices of securities is available at www.nseindia.com, www.bseindia.com. Research Analyst views on Subject Company may vary based on Fundamental research and Technical Research. Proprietary trading desk of MOFSL or its
associates maintains arm’s length distance with Research Team as all the activities are segregated from MOFSL research activity and therefore it can have an independent view with regards to subject company for which Research Team have expressed their
views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject MOFSL & its
group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong Securities and Futures Commission (SFC) pursuant to the Securities and
Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst Regulations) 2014 Motilal Oswal Financial Services Limited(SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong)
Private Limited for distribution of research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity to which this document relates is only
available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The
Indian Analyst(s) who compile this report is/are not located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S:
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the United States. In addition MOFSL is not a registered
investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the
Acts, any brokerage and investment services provided by MOFSL, including the products and services described herein are not available to or intended for U.S. persons. This report is intended for distribution only to "Major Institutional Investors" as defined by
Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or
investment activity to which this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration provided by Rule 15a-6 of the U.S. Securities
Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning
agreement with a U.S. registered broker-dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered broker-dealer, MOSIPL, and therefore, may not be subject to NASD
rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading securities held by a research analyst account.
For Singapore:
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets services license and an exempt financial adviser in Singapore,
as per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in
Singapore should contact MOCMSPL in respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”, of which some of whom may consist of
"accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must
immediately discontinue any use of this Report and inform MOCMSPL.
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or
reproduced in any form, without prior written consent. This report and information herein is solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial
instruments. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed in this
report may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent
judgment by any recipient. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and
risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not be suitable for all investors. Certain transactions -including those involving futures, options,
another derivative products as well as non-investment grade securities - involve substantial risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information and
opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and should not be treated as endorsement of the views expressed in the report. This information is subject
to change without any prior notice. The Company reserves the right to make modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from
time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to perform investment banking or other services for, or solicit investment banking or
other business from, any company referred to in this report. Each of these entities functions as a separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on
the basis of information that is already available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the views expressed therein. This
document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for
distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject MOFSL
to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to
inform themselves of and to observe such restriction. Neither the Firm, not its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that
may arise from or in connection with the use of the information. The person accessing this information specifically agrees to exempt MOFSL or any of its affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to
hold MOFSL or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOFSL or any of its affiliates or employees free and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing
this information due to any errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263; Website www.motilaloswal.com.
CIN No.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst: INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance
Corporate Agent: CA0579 ;PMS:INP000006712. Motilal Oswal Asset Management Company Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal
Wealth Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is a distributor of Mutual Funds, PMS, Fixed Deposit, Bond,
NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. which is a group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd
which is a group company of MOFSL. Research & Advisory services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no assurance or guarantee of the returns.
Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance Officer: Name: Neeraj Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National Company Law Tribunal, Mumbai Bench.
14 May 2019
18