Indian Overseas Bank · NSE:IOB
Indian Overseas Bank — Q1 FY2019-20 Earnings Presentation
37 slides from Indian Overseas Bank's earnings presentation, Jul 23, 2019
Slide 1: Performance Analysis Q1 FY 2019-20 Analyst Presentation
इण्डियन ओवरसीज़ बैंक Indian Overseas Bank PERFORMANCE ANALYSIS Q1 FY 2019-20 Analyst Presentation 23.07.2019
Slide 2: Our Heritage
OUR HERITAGE Indian Overseas Bank (IOB) was founded on 10th February 1937 by Shri.M.Ct.M. Chidambaram Chettyar. Objective was to specialize in foreign exchange business and take Bank across the globe. IOB started business simultaneously – at Karaikudi, Chennai and Rangoon in Burma (presently M
Slide 3: Key Strengths - Qualitative
KEY STRENGTHS - QUALITATIVE Customer Touch Points: 3274 Domestic 82 years of Banking Branches, 4 Overseas Trust of 35 million Expertise active customers Branches, 3011 ATMs, 2705 BCs Special Focus on Digital initiative and Improving CASA, strong technology Housing Loan, Jewel penetration Loan & redu
Slide 4: Highlights – Quantitative – June 19
HIGHLIGHTS – QUANTITATIVE – JUNE 19 Maintains Healthy CASA of Provision Coverage 38.05% with a Y-o-Y growth of Ratio(PCR) improved 7.11% to 72.24% from 61.10% RAM portfolio grew in June’18 by 5.87% (Y-o-Y) aided by growth in retail of 11.17% Business per Employee Net Interest Income for Improved fro
Slide 5: Top Line Movement – Jun-19 (Deposits)
TOP LINE MOVEMENT– JUN-19 Y-o-Y Growth June 2019 June 2018 Jun-19 over Jun-18 Savings Bank Rs.70,502 Crs Rs.66,634Crs 5.81% Current Account Rs.13,643 Crs Rs.11,926 Crs 14.39% CASA Deposits Rs.84,145 Crs Rs.78,560 Crs 7.11% Term Deposits Rs.1,37,026 Crs Rs.1,34,608 Crs 1.80% Deposits Rs.2,21,171 Crs
Slide 6: Top Line Movement – Jun-19 (Advances)
TOP LINE MOVEMENT– JUN-19 Y-o-Y Growth June 2019 June 2018 Jun-19 over Jun-18 Retail credit Rs.31,053 Crs Rs.27,934 Crs 11.17% Agri credit Rs.33,337 Crs Rs.31,557 Crs 5.64% MSME credit Rs.32,345 Crs Rs.31,881 Crs 1.46% Corporate/Others Rs.45,375 Crs Rs.46,985 Crs -3.43% Overseas Rs.5,496 Crs Rs.10,4
Slide 7: P&L Movement – Jun-19
P & L MOVEMENT– JUN-19 Y-o-Y Growth June 2019 June 2018 Jun-19 over Jun-18 Interest Income Rs.4,336 Crs Rs.4,249 Crs 2.07% Non Interest Rs.670 Crs Rs.1,078 Crs -37.85% Income Interest Expenditure Rs.3,048 Crs Rs.3,041 Crs 0.24% Operating Expenses Rs.1,130 Crs Rs.1,154 Crs -2.06% Operating Profit Rs.
Slide 8: Highlights
HIGHLIGHTS Maintains healthy Global CASA Ratio of 38.05% and Domestic CASA Ratio of 38.38% as at June 2019. Global Deposits recorded a growth of 3.75% on Y-o-Y basis and ended at Rs. 2,21,171 crores. Global Advances ended at Rs. 1,47,606 crores with RAM concentration of Rs. 96,735 crores. Re
Slide 9: Highlights
HIGHLIGHTS Interest Income grew by 2.07% (Y-o-Y). Total Expenditure reduced by 3.78% from Rs. 4342 crore for the quarter ended 31st March 2019 to Rs.4178 crore for the quarter ended 30th June 2019. Operating Profit for Q1 2019-20 stood at Rs. 828 crores. Net Loss stood at Rs. 342 crores for
Slide 10: Business Performance - Global
BUSINESS PERFORMANCE - GLOBAL Rs in Crores Particulars Mar-17 Mar-18 Jun-18 Mar-19 Jun-19 YoY(%) QoQ(%) CASA Deposits 76269 79678 78560 85227 84145 7.11 -1.27 Total Deposits 211343 216832 213168 222534 221171 3.75 -0.61 Advances 156776 150999 148760 151996 147606 -0.78 -2.89 Business Mix 368118 3678
Slide 11: Deposit Composition
DEPOSIT COMPOSITION Rs in Crores Parameters Mar-17 Mar-18 Jun-18 Mar-19 Jun-19 Savings Deposits 63232 66742 66634 70652 70502 Current Deposits 13037 12936 11926 14575 13643 Bulk Deposits 29195 27906 26418 28285 28958 Retail Term Deposits 100514 103743 103526 105284 104834 Overseas Term Deposits 5366
Slide 12: Risk Spread - Assets
RISK SPREAD - ASSETS Rs in Crores Details Mar-15 Mar-16 Mar-17 Mar-18 Jun-18 Mar-19 Jun-19 Retail 18033 22653 23887 28183 27934 31588 31053 Agri 29236 30237 29348 30820 31557 33353 33337 MSME 32251 31804 30564 32615 31881 33164 32345 Corporate/Others 83317 70734 58852 46898 46985 47895 45375 Domesti
Slide 13: Retail Performance
RETAIL PERFORMANCE Rs in Crores Share of Retail on Domestic Advances 200000 21.64% 25.00% 162837 20.34% 21.85% 155428 14265116.75% 138516 146001 142110 20.00% 150000 14.57% 11.07% 15.00% 100000 10.00% 50000 28183 31588 31053 18033 22653 23887 5.00% 0 0.00% Mar'15 Mar'16 Mar'17 Mar ’18 Mar-19 Jun-19
Slide 14: Priority Sector Advances - Overview
PRIORITY SECTOR ADVANCES - OVERVIEW 60.00% Priority sector % of 51.33% 52.47% 81000 47.47% Financial Year Achievement achievement 78433 50.00% 71000 40.33% 75390 2016-17 70040 63984 40.33% 61000 63984 40.00% (Avg of 4 Qtrs) 51000 2017-18 30.00% 70040 47.47% 41000 (Avg of 4 Qtrs) 31000 20.00% 2018-19
Slide 15: Agriculture Advance Performance
AGRICULTURE ADVANCE PERFORMANCE Oustanding % of Y-o-Y Growth 34000 3000 10.00% 33340 33337 8.18% 33000 2500 8.00% 32000 30820 2000 4.69% +2520 5.64% 6.00% +2108 31000 1500 +178 +138 4.00% 0 30000 29438 1000 2 2.00% 29000 500 0.00% 28000 0 2016-17 2017-18 2018-19 Jun'19 -500 -2.00% 27000 -798 2016-17
Slide 16: Agri Advances – Priority Sector
AGRI ADVANCES – PRIORITY SECTOR 34000 21.97% 22.00% 20.23% 21.14% 32000 18.18% 32840 21.00% 30000 31045 28585 28865 29851 20.00% 28000 26905 19.00% 26561 26438 18.00% 26000 17.00% 24000 16.00% 22000 15.00% 2016-17 (Avg of 4 Qtrs) 2017-18 (Avg of 4 Qtrs) 2018-19 (Avg of 4 Qtrs) 2019-20 as on Jun'19 T
Slide 17: MSME Performance
MSME PERFORMANCE Rs in Crores Share of MSME on Domestic Advances Year Gross DomesticMSME Advance % Share 180000 162837 21.43% 23.55% 22.71% 22.76%24.00% 155428 Mar'15 162837 32251 19.81% 160000 142651 138516 146001 142110 23.00% 140000 Mar'16 155428 31804* 20.46% 22.00% 120000 20.46% 100000 19.81% 2
Slide 18: Income & Expenses
INCOME & EXPENSES Rs in Crores Q1 Q4 Q1 YoY QoQ Particulars 18-19 18-19 19-20 (%) (%) Interest Income 4249 4556 4336 2.07 -4.83 Non Interest Income 1078 917 670 -37.85 -26.96 Total Income 5327 5474 5006 -6.01 -8.54 Interest Expended 3041 3077 3048 0.24 -0.96 Staff Expenses 769 706 736 -4.24 4.31 Oth
Slide 19: Profitability
PROFITABILITY Rs in Crores Q1 Q4 Q1 YoY QoQ Particulars 18-19 18-19 19-20 (%) (%) Operating Profit 1132 1132 828 -26.84 -26.81 Provisions 2051 3117 1170 -42.96 -62.45 of which NPA Provisions 2294 3961 1259 -45.11 -68.21 Other Provisions -242 -844 -89 -63.31 -89.46 Net Profit/Loss -919 -1985 -342 -62
Slide 20: Other Income
OTHER INCOME Rs in Crores YoY QoQ Particulars Q1 18-19 Q4 18-19 Q1 19-20 (%) (%) Exchange & Commission 211 281 201 -4.77 -28.54 Profit on Sale of Investments 72 110 181 150.44 64.05 Profit on Exchange 119 144 167 40.31 16.09 All other income 676 382 122 -82.02 -68.20 Total Other Income 1078 917 670
Slide 21: Performance Ratio
PERFORMANCE RATIO Cost of Deposits Yield on Advances 5.43 5.44 7.60 7.31 7.12 7.13 7.13 7.22 5.42 5.40 5.40 5.39 7.10 5.37 5.38 6.60 5.36 5.34 5.32 6.10 5.32 5.30 5.60 5.28 5.26 5.10 June 18 Sept 18 Dec 18 Mar 19 June 19 June 18 Sept 18 Dec 18 Mar 19 June 19 Cost to Income Ratio Net Interest Margin
Slide 22: Rebalanced Asset Portfolio
REBALANCED ASSET PORTFOLIO RAM Share to Domestic Advances Provision Coverage Ratio 80.00 75 71.39 72.24 66.14 67.20 68.07 70 70.00 58.74 65 60.00 54.49 59.45 48.83 60 50.00 53.63 55 50.92 40.00 50 47.39 30.00 45 20.00 40 10.00 35 0.00 30 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Jun-19 Mar-15' Mar-16 Mar-1
Slide 23: Profitability Metrics
PROFITABILITY METRICS Rs in Crore Total Income/Non Interest Operating Profit/Total Income/Total Income/% Share of Non Interest Expense Income 1700 5327 5348 5689 5474 6000 5689 5006 6000 5327 5348 5474 25.00 5006 1500 5000 20.24 19.91 20.15 20.00 4000 16.76 1300 4000 15.00 4195 4222 4342 4178 13.38
Slide 24: NPA Management
NPA MANAGEMENT Rs in Crores FY Q1 Q2 Q3 Q4 FY Q1 Details 2017-18 2018-19 2018-19 2018-19 2018-19 2018-19 2019-20 i) Opening Gross NPAs 35098 38180 38146 37110 35787 38180 33398 a. Cash Recoveries 1105 565 1723 750 635 3673 483 b. Upgradation 2330 467 342 197 446 1452 431 c. Write-Offs 7018 1262 1425
Slide 25: Movement of RWA & CRAR
MOVEMENT OF RWA & CRAR Rs in Crores Particulars Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Market Risk RWA 15189 15189 14859 12538 11944 11320 Operational Risk RWA 14759 14759 15779 15779 15779 16642 Credit Risk RWA 104960 104960 96903 96770 94862 93196 Total RWA (A) 134909 134909 127541 125086 12258
Slide 26: Investments
INVESTMENTS Rs in Crores Global Investments 72248 71640 70263 70661 69209 Mar-17 Mar-18 Jun-18 Mar-19 Jun-19 Parameters Mar-16 Mar-17 Mar-18 June-18 Mar-19 June-19 Domestic Investments 76155 68627 66619 66854 65380 67031 SLR 64028 58009 53019 53604 47858 49073 Non SLR 12127 10618 13600 13248 17522 1
Slide 27: Financial Inclusion
FINANCIAL INCLUSION PMJDY ACCOUNTS PMJDY Account Balance – Rs in 4904303 4849392 crores 1117 1136 818 4387956 757 4261330 Mar-17 Mar-18 Mar-19 Jun-19 Mar-17 Mar-18 Mar-19 Jun-19 PMJDY ZERO BALANCE ACCOUNTS Jan Suraksha & APY Enrolments – Cumulative - Nos 1155960 3069639 3049713 2688716 2773384 10143
Slide 28: Strategic Investments – Joint Venture
STRATEGIC INVESTMENTS – JOINT VENTURE IOB entered into Non Life Insurance Business with Universal Sompo General Insurance (USGI) Company Limited with equity participation of 18% along with the other Banks and Institutions Shareholding % Name of Entity Shareholding %Investment 12.81% 6.00% 18.06% Ind
Slide 29: Valuations
VALUATIONS Q1 Q4 Q1 Particulars (Rs. Crs) 2018-19 2018-19 2019-20 Earning per Share (`) -1.88 -3.06 -0.37 Book Value per Share (`) 8.43 6.43 6.05 Adjusted Book Value per Share (`) [(Net Worth - Net -ve -ve -ve NPA)/No of Shares] Price/Book Value (`) 1.67 2.25 2.01 Price/Adjusted Book Value (`) -Ve -
Slide 30: Customer Touch Points
CUSTOMER TOUCH POINTS 4000 3500 3000 Year Branches ATM/CR IOB Mitra 2500 Mar-15 3381 3571 2841 Branches Mar-16 3397 3793 2894 2000 ATM Mar-17 3373 3679 2738 1500 BC Mar-18 3332 3552 2663 1000 Mar-19 3280 3450 2705 500 Jun-19 3274 3011 2705 0 BC: IOB Mitra Mar-15' Mar-16 Mar-17 Mar-18 Mar-19 Jun-19 C
Slide 31: Global Footprints – Foreign Branches
GLOBAL FOOTPRINTS – FOREIGN BRANCHES Representative Remittance Branches Office JV Subsidiary Centres •Singapore •Dubai •Malaysia •Singapore – •Hong Kong Main Serangoon Road •Colombo •Bangkok Joint Venture in Malaysia: Joint Venture with Bank of Baroda (40%) and Andhra Bank (25%) with IOB share of 35
Slide 32: Digital Initiatives
DIGITAL INITIATIVES Performance Analysis Q1 2019-20 Page 32
Slide 33: Digital Initiatives
DIGITAL INITIATIVES Performance Analysis Q1 2019-20 Page 33
Slide 34: Digital Initiatives
DIGITAL INITIATIVES BANKING ON WHEELS: Bank in its quest for enhancing customer service with its committed “Customer First” concept has brought Banking Services on wheels to rural and Semi- Urban areas of Tamil Nadu and Kerala. The Mobile van contains ATM, Passbook Kiosk and also an LED display to e
Slide 35: Customer Experience Initiatives
CUSTOMER EXPERIENCE INITIATIVES Customer can call to the specified number for to provide a feedback about our service If you are unhappy with our service please call 8828846220 If you are happy with our service please call 8828846225 Customer can give missed call to 9210622122 to know your acco
Slide 36: Disclaimer
DISCLAIMER Except for the historical information contained herein, statements in this release which contain words or phrases such as “will”, “aim”, “will likely result”, “would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”, “plan”, “contemplate”, “seek to”, “fut
Slide 37: Thank You
THANK YOU Performance Analysis Q1 2019-20
Indian Overseas Bank — Q1 FY2019-20 Earnings Presentation on 6ix