Indian Bank · NSE:INDIANB
Indian Bank — Q2 FY2021 Earnings Presentation
53 slides from Indian Bank's earnings presentation, Oct 22, 2020
Slide 1: Cover letter to stock exchanges on Q2 results presentation
Corporate Office Investor Services Cell tl IINIVIET4 ALLAXASAD 254-260, Avvai Shanmugam Salai FAX : 28134075 Royapettah PHONE : 28134076 Chennai 600 014 E-mail : investors@indianbank.co.in Ref: ISC/268 /2020-21 22.10.2020 The Vice President The Vice President National Stock Exchange of India Limited
Slide 2: Performance Analysis Q2 / H1 2020-21
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Slide 3: Contents
Contents 1 Performance Highlights At- IIME■ i•o 2 Financials Amalgamation Amalgamation of Allahabad Allahabad Bank Bank into into Indian Indian Bank Bank came into into effect effect on on April April 1, 1, 2020. Accordingly, the 2020. Accordingly, the combined financials as on on 30thth 30 Septembe
Slide 4: Performance Highlights
$14-im fah 4sp Indian Bank 111WETWIEC kt,..kmamP Performance Highlights 3/52
Slide 5: Performance Highlights - Q2 FY21 (YoY)
Performance Highlights - Q2 FY 21 ( YoY) Business Deposits I1 CASA at 41% 99 bps Term Deposits I `8.6 lakh Cr 5% `5 lakh Cr 7% Savings Bank 9% 5% A A Advances RAM Gross NPA Net NPA PCR ` 3.6 lakh Cr 2% ` 1.9 lakh Cr 5% 9.89% 276 bps 2.96% 164 bps 84.39% 886 bps Operating Profit Net Profit RoA % RoE
Slide 6: Financials
Ti IF 4sp Indian Bank 111WETWIEC Financials 5/52
Slide 7: Financials – Operating Profit and Net Profit
Financials – Operating Profit and Net Profit ` in Cr Quarter Ended Half Year Ended Sl No Components 30.09.2019 31.03.2020 30.06.2020 30.09.2020 Q-o-Q (% ) Y-o-Y (% ) 30.09.2019 30.09.2020 Y-o-Y 1 Interest Income 9420 9757 10120 10057 -1 7 18879 20177 7 2 Interest Expenses 6281 6447 6246 5913 -5 -6 1
Slide 8: Income
Income ` in Cr Quarter Ended Half Year Ended Sl No Components 30.09.2019 31.03.2020 30.06.2020 30.09.2020 Q-o-Q (%) Y-o-Y (%) 30.09.2019 30.09.2020 Y-o-Y (%) 1 Interest Income on Advances and Discount on Bills 6746 6832 7149 7148 0 6 13476 14297 6 2 Interest on investments 2530 2740 2775 2795 1 10 5
Slide 9: Fee Income
Fee Income ` in Cr Quarter Ended Half Year Ended Sl No Components 30.09.2019 31.03.2020 30.06.2020 30.09.2020 Q-o-Q (%) Y-o-Y (%) 30.09.2019 30.09.2020 Y-o-Y (%) 1 Transaction fees 148 138 75 221 195 49 290 296 2 2 Loan processing charges 83 158 113 122 8 47 148 235 59 3 Commission on Government bus
Slide 10: Expenses
Expenses ` in Cr Quarter Ended Half Year Ended Sl No Components 30.09.2019 31.03.2020 30.06.2020 30.09.2020 Q-o-Q (%) Y-o-Y (%) 30.09.2019 30.09.2020 Y-o-Y (%) 1 Interest on deposits 5985 6091 5869 5583 -5 -7 11805 11452 -3 2 Interest on borrowings 296 311 339 294 -13 -1 621 632 2 3 Sundry interest
Slide 11: Overhead Expenses
Overhead Expenses ` in Cr Quarter Ended Half Year Ended Sl No Components 30.09.2019 31.03.2020 30.06.2020 30.09.2020 Q-o-Q (%) Y-o-Y (%) 30.09.2019 30.09.2020 Y-o-Y (%) 1 Rent, Taxes & Lighting 194 218 119 165 39 -15 363 284 -22 2 Depreciation 118 100 109 178 63 51 226 287 27 3 Insurance 135 132 166
Slide 12: Provisions & Net Profit
Provisions & Net Profit ` in Cr Quarter Ended Half Year Ended Sl No Components 30.09.2019 31.03.2020 30.06.2020 30.09.2020 Q-o-Q (% ) Y-o-Y (% ) 30.09.2019 30.09.2020 Y-o-Y (% ) 1 Operating Profit 2135 2402 2753 2995 9 40 4368 5748 32 2 Total Provisions 3890 4043 2384 2583 8 -34 5630 4967 -12 Of whi
Slide 13: Performance Ratios
Performance Ratios % Annualized Quarter Ended Half Year Ended Parameters 30.09.2019 31.03.2020 30.06.2020 30.09.2020 30.09.2019 30.09.2020 Cost of Deposits 5.27 5.11 4.83 4.57 5.25 4.70 Cost of Funds 5.28 5.13 4.89 4.58 5.27 4.71 Cost to Income Ratio 51.35 52.33 47.06 47.97 50.48 47.54 Yield on Adva
Slide 14: Business Snapshot
Ti IF 4sp Indian Bank 111WETWIEC Business Snapshot 13/52
Slide 15: Business Snapshot
Business Snapshot ` in Cr Sl No Parameter 30.09.2019 31.03.2020 30.06.2020 30.09.2020 Q-o-Q (% ) Y-o-Y (% ) DOMESTIC DEPOSITS 1 Deposits 469797 488835 489109 501956 3 7 Core Term Deposits PD/CD Savings Bank Current account Domestic 462174 481401 481255 493903 3 7 Overseas 7623 7434 7854 8053 3 6 Dep
Slide 16: Advances (Domestic)
Advances (Domestic) ` in Cr Sector 30.09.2019 31.03.2020 30.06.2020 30.09.2020 YoY (% ) Gross Advances-Domestic 350837 360255 357869 356627 2 Retail 58636 61490 60529 59769 2 Retail, 17% Agriculture 66970 68959 68773 71345 7 Corporate, Agriculture 45% RAM 55% 20% MSME 62033 60907 60590 65176 5 Total
Slide 17: Sectoral Deployment – Domestic Advances
Sectoral Deployment – Domestic Advances ` in Cr % share % share % share Sector 31.03.2020 to Gross 30.06.2020 to Gross 30.09.2020 to Gross Advances Advances Advances Infrastructure 57067 16 58499 16 61701 17 Of which Power 17336 5 16994 5 19799 6 Telecom 1353 0 1342 0 1356 0 Port and Roads 9405 3 96
Slide 18: Standard NBFC Advances
Standard NBFC Advances ` in Cr Composition 30.09.2019 % 31.03.2020 % 30.06.2020 % 30.09.2020 % NBFC - PSUs 2229 6% 2425 5% 2575 6% 4553 11% NBFC - HFCs 14279 35% 18438 41% 16605 39% 14507 34% NBFC - MFIs 1085 3% 1515 3% 1462 3% 1437 3% NBFC - Others 22864 57% 22774 50% 21953 52% 21560 51% NBFC 40457
Slide 19: Power Sector & Commercial Real Estate
Power Sector & Commercial Real Estate ` in Cr Fund Non Fund Of which Central State Private Details Category Total Based O/s Based O/s NPA Government Government Sector Land & Building Developers (Corporates) 2544 163 548 Generation 36 6004 8406 14446 Rent Encash/Rental 1224 0 25 Distribution 7069 706
Slide 20: Standard Domestic Credit Exposure
Standard Domestic Credit Exposure ` in Cr Rated Exposure Unrated Exposure External Rating 30.06.2020 30.09.2020 30.06.2020 30.09.2020 Exposure % to Total Exposure % to Total AAA 28997 15% 27558 13% Exposure % to Total Exposure % to Total AA 54813 29% 56888 27% PSU with Govt Guarantee 21480 33% 27400
Slide 21: Investments - Domestic
Investments - Domestic ` in Cr Composition 30.09.2019 31.03.2020 30.06.2020 30.09.2020 Y-o-Y (% ) Central Government Securities 76266 86617 76137 86841 14 State Government Securities 33775 38611 42191 42608 26 Treasury Bills 5674 1433 4476 11934 110 Other Approved Securities 4 3 6 5 31 Recap Bonds 1
Slide 22: Non SLR Investments
Non SLR Investments ` in Cr % YoY Parameter Sep-19 Mar-20 Jun-20 Sep-20 Share Amount % PSU Bonds 1229 1489 1591 1591 4 362 29 Corporate and Other Bonds 4884 4765 7629 9168 23 4284 88 Special Govt.Sec.(Excluding Recap Bonds) 2599 2063 2062 2015 5 -584 -22 CG Recap.Bond 15774 17927 17927 17927 45 2153
Slide 23: TLTRO 1 / TLTRO 2 / Partial Credit Guarantee
TLTRO 1 / TLTRO 2/ Partial Credit Guarantee ` in Cr Particulars AAA A1+ AA+ AA Total Corporate 175 400 35 325 935 HFC 100 0 0 0 100 TLTRO 1.0 Face value NBFC 400 0 0 25 425 Total 675 400 35 350 1460 NBFC AAA A1+ AA+ AA AA- A+ A A- BBB+ BBB BBB- Total Below ` 500 Cr 0 110 0 0 25 0 0 85 0 65 15 300 `
Slide 24: Capital and Risk Management
0000 4 Capital & Risk Management Capital and Risk Management 23/52
Slide 25: Capital Adequacy – Risk Management
Capital Adequacy – Risk Management ` in Cr Parameters 01.04.2020 30.06.2020 30.09.2020 Capital 38394 40168 40096 Common Equity Tier I (CET 1) 29613 30769 31088 Common Equity Tier I (CET 1) Additional Tier I Tier II Additional Tier I 500 500 500 Tier II 8281 8899 8508 Total Risk Weighted Assets 28934
Slide 26: Shareholding Pattern & Balance Sheet
Shareholding Pattern & Balance Sheet 1.42 % 0.96 % ` in Cr 0.52 % Government of India 1.91 % 2.03 % Resident Individual 5.10 % Mutual Funds Pattern of Equity Shareholding Shareholder % Insurance Companies Promoters 88.06 Public 11.94 Employees 88.06 % Total 100 FPI, FII and NRI HUF, FI/Banks, Trusts
Slide 27: Asset Quality
Asset Quality 26/52
Slide 28: Asset Quality – Movement of NPA
Asset Quality – Movement of NPA ` in Cr S Quarter Ended Half Year Ended Details No 30.09.2019 31.03.2020 30.06.2020 30.09.2020 30.09.2019 30.09.2020 1 Gross NPA opening balance 42215 46012 41998 39965 42058 41998 Sectorwise Fresh Slippages ADDITIONS : Fresh Slippages 4794 3841 523 249 8215 772 Categ
Slide 29: NPA Position – Sector wise
NPA Position – Sector wise ` in Cr 30.09.2019 31.03.2020 30.06.2020 30.09.2020 Sector % to % to % to % to Sectorwise GNPA to total NPA % Gross Gross Gross Gross respective respective respective Outstanding respective NPA NPA NPA NPA Retail Agriculture MSME Corp/Others/overseas portfolio portfolio po
Slide 30: NPA Position – Industry wise
NPA Position – Industry wise ` in Cr 30.06.2019 31.03.2020 30.06.2020 30.09.20 % to % to % to % to Industry Gross NPA respective Gross NPA respective Gross NPA respective Gross NPA respective portfolio portfolio portfolio portfolio Metal and Metal Products (Incl. Iron & 5931 37.34 4070 32.34 4112 36
Slide 31: SMA – Sectorwise & Collection under Moratorium
SMA – Sectorwise & Collection under Moratorium SMA 2 ` in Cr Parameter Sep-19 Mar-20 Jun-20 Sep-20 Agriculture 3161 983 173 745 MSME 2864 3605 1161 599 Retail 1926 2185 984 185 Of which Collection during Morotorium in Sep 20 Home Loan 1159 1382 621 106 100% 90% Vehicle Loan 117 163 76 14 80% Collect
Slide 32: Status of NCLT accounts – 30.09.20
Status of NCLT accounts – 30.09.20 ` in Cr Category No.of Accounts Exposure Provision PCR% RBI List I 8 4277 4277 100% RBI List II 16 4051 4017 99% Accounts filed by Bank 27 1977 1877 95% Accounts filed by other Banks 153 14111 13687 97% Total 204 24416 23858 98% Exposure % PCR % 100% 99% RBI List I
Slide 33: Financial Inclusion/ Government Schemes
Ti IF 4sp Indian Bank 111WETWIEC Financial Inclusion/ Government Schemes 32/52
Slide 34: Financial Inclusion - Performance
Financial Inclusion - Performance FI Parameters 30.09.2020 BCs engaged (Nos.) 9057 BSBD Accounts (No. in lakhs) 267.66 PMJDY Accounts under BSBDA (No. in lakhs) 174.04 Balance in PMJDY accounts (` in Cr) 5889 Rupay Cards issued (No. in lakhs) 105.30 Financial Transactions by BCs per month (No.in lak
Slide 35: COVID 19: Response
COVID 19 : Response Emergency Credit Line Scheme No. of loans sanctioned 2.88 lakhs (95% of eligible accounts) CSR Amount sanctioned `5541 Cr (93% of eligible amount) Amount disbursed `4653 Cr (84% of sanctioned amount) Supported corono warriors by distributing Partial Credit Guarantee Scheme PPE k
Slide 36: Digital Banking
Ti IF 4sp Indian Bank 111WETWIEC Digital Banking 35/52
Slide 37: Digital Initiatives
Digital Initiatives Internet banking enriched with • E-mandate registration with verification (NPCI) • Enhanced control over Debit cards viz. lock/unlock, fixing transaction limits on all payment channels etc rma App is-Haw:oral Mobile Banking limo CI ixsts. • IndOASIS – An Integrated Mobile App wit
Slide 38: Digital Initiatives
■ • ..... Digital Initiatives UPI Small Merchant • UPI Small merchant QR facility for PM SVANidhi borrowers Digital Apnayen Campaign • Provision enabled for customers for availing Digital channels in Bank’s website • MIS Dash Board for Monitoring the progress by FGM/Zone/Branches 37/52
Slide 39: Migration to Digital Channels
Migration to Digital Channels Ti IF 111WETWIEC 4sp Indian Bank kt,..kmamP Digital Transaction Branch Transaction ATM Transaction 19% 25% 47% 50% Q2 FY 20 Q2 FY 21 25% 34% Transaction at Branch/ATM 9% Transaction through Digital channels 9% 38/52
Slide 40: Digital Footprint – Net Banking & Mobile Banking
Digital Footprint – Net Banking & Mobile Banking Internet Banking In lakhs Mobile Banking 49 40 46 32 No. of users 30.09.2019 30.09.2019 30.09.2020 30.09.2020 94 1416 88 No. of 710 Transactions Q2 FY 20 Q2 FY 20 Q2 FY 21 Q2 FY 21 39/52
Slide 41: Business Network
Business Network Network - Distribution Population Group wise Region wise Branches Domestic: 5993 Northern Overseas: 3 742 Metro, 1214 North Eastern Rural, 1938 ATMs & BNAs 141 Central Urban, 1255 Eastern / 1448 / 5343 Western 431 1288 Semi Urban, 1586 Southern BCs 1943 9057 40/52
Slide 42: Amalgamation
Amalgamation 41/52
Slide 43: Amalgamation – Process on Track
Amalgamation – Process on Track 26F. lab WI.WK Indian Ban k AUJOIMAl 0 =1 41#1.11114 1&?--". -"I ttrnme tu. pd 0 0 0 tramme (=I Integration of Operations/ IT Smooth Customer Inter face Reorganisation /Centralisation Rationalisation of offices • Retail and MSME • Treasury operations processing centre
Slide 44: Amalgamation – Synergy Tracker
Amalgamation – Synergy Tracker In order to capture the synergies arising out of a algamation, a synergy tracker template has been created. The tracker captures the following: Synergy on account of Rationalisation of Branches, Zonal Offices, Currency Chests, Staff Training Centres, Large Corporate Br
Slide 45: Initiatives and Focus Areas
Initiatives and Focus Areas e-Note As a part of Business process Re-engineering and Green initiative, a system of dispensing with placing of physical notes and replacing the Bank has introduced digital same with digital module of placing platforms by launching notes (e-Note) is introduced on a “Ind
Slide 46: Launch of MSME Prerana
Launch of MSME Prerena Bank in coordination with M/s Poornatha & Co has conceptualized imparting of online business mentoring training programme to MSMEs – “MSME Prerana”. The programme was launched virtually on 06th October 2020 by Hon’ble Union Minister for Finance and Corporate Affairs, Smt.
Slide 47: Launch of IND Spring Board
Launch of IND Spring Board Ti IF A !Marna 4sp Indian Bank aty.kmapo Bank launched “IND Spring Board”, an initiative for funding Start-ups in collaboration with the IIT, Madras Incubation Cell (IITMIC), EVP & CTO , Tata Consultancy Services launched the product in the presence of Shri Debasish Pand
Slide 48: Joint Venture
Joint Venture 28.52% *rgtio-h- a Indian Bank Universal Sompod. General Insurance Co. LI Suraksha. Ilarnesha Aapke Saath it ;$0161414 ALUMIAD USGI Co. Ltd was set up as a Public-Private-Sector Joint Venture • Multi-line non-life insurance company • Break-even in the 5th year of operation • Incorporat
Slide 49: Regional Rural Banks (RRBs) 30.09.20
Regional Rural Banks (RRBs) 30.09.20 ` in Cr PUDUVA1 BHARATHIAR GRAMA BANK NI:mu:trod by I nrtha n 6.14 I Tamil Nadu Grama Bank 1 Parameters TNGB SGB PBGB No. of branches 632 223 44 Business 26118 14769 1567 Operating Profit 210 162 7 Net Profit 105 105 5 Gross NPA 2.15% 1.21% 2.08% Net NPA 0.73% 0%
Slide 50: Strategies
• Il Strategies 49/52
Slide 51: Strategies – Focus Areas
Strategies Focus Areas Consolidation of amalgamation and tracking synergies Thrust on CASA deposits Continued focus on asset quality Centralisation of loan processing centers Digitalisation of services for customer convenience 50/52
Slide 52: Disclaimer
Disclaimer This presentation has been prepared by Indian Bank (the “Bank”) solely for information purposes, without regard to any specific objectives, financial situations or informational needs of any particular person. Certain forward-looking statements in these slides involve a number of risks, u
Slide 53: Thank you
Thank you