Indian Bank · NSE:INDIANB

Indian Bank — FY2019 Earnings Presentation

39 slides from Indian Bank's earnings presentation, May 15, 2019

  1. Slide 1: Cover letter to stock exchanges

    it demos Corporate Office INF Indian Bank Investor Services Cell FAX :28134075 254-260, Avvai Shanmugam Salai PHONE : 28134076 Royapettah E-mail : investorsindian ban k.co. in Chennai 600 014 Ref : ISC / 60 / 2019-20 15.05.2019 The Vice President The Manager National Stock Exchange of India Limited

  2. Slide 2: Press Release: Financial Results for Quarter and Year Ended March 2019

    PRESS RELEASE FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH 2019 Highlights The Board of Directors of Indian Bank approved the Bank’s results for the Quarter and Year ended March 31, 2019 at their meeting held in Chennai on May 14th 2019.  Business (Y-o-Y):  Global Business : `429972 cr 

  3. Slide 3: Press Release: Asset Quality, Capital Adequacy, Core Geographies

     Asset Quality:  Gross NPA ratio: 7.11%  26 bps; Sequential quarter  35 bps.  Net NPA ratio: 3.75%  6 bps; Sequential quarter  67 bps.  Progressive reduction in fresh slippages in the second half of FY 2018-19 (Additions down to `1005 cr in Q4 from `2250 cr in Q2).  PCR: 65.72%  145 bps; S

  4. Slide 4: Awards & Accolades

     Awards & Accolades:  ASSOCHAM - Social Banking Excellence Award 2018: Winner in Agricultural Banking, Priority Sector Lending, Technology & Overall Best Social Bank.  “Best performing PSB under APY 2017-18” - PFRDA  “Best Performance – Financial Literacy - 2018-19” – NABARD  “Best Bank in SHG

  5. Slide 5: Performance Analysis Q4 / YE 2018-19

    Performance Analysis Q4 / YE 2018-19 1/35

  6. Slide 6: Table of Contents

    Table of Contents 1. Business Snapshot 2. Financials 3. Capital & Risk Management 4. Asset Quality 5. Way forward 2/35

  7. Slide 7: Performance Highlights

    Performance Highlights Total Business Deposits CASA Advances ` 4.30 lakh Cr ` 2.42 lakh Cr ` 83459 Cr ` 1.88 lakh Cr YoY 16% YoY 16% YoY 9% YoY 15% Diversified Loan Net Interest Income Domestic NIM Book ` 7018 Cr 3% RAM 58% YoY 12% CRAR Gross NPA at Net NPA at PCR at (BASEL III) 7.11% 3.75% 65.72% a

  8. Slide 8: Business – Snapshot (1/2)

    Business – Snapshot (1/2) ` in Cr Parameter 31.03.2018 31.03.2019 YOY (%) Global Business 371020 429972 15.89 Domestic 358724 415582 15.85 Overseas 12296 14390 17.04 Domestic Market share Global Deposits 208294 242076 16.22 Deposits: 1.88% from 1.74% Domestic 202248 235237 16.31 Advances: 1.83% from

  9. Slide 9: Business – Snapshot (2/2)

    Business – Snapshot (2/2) Consistent increase in Business across all population groups. Rural Semi-Urban Urban Metropolitan 226090 193435 128532 107463 79889 97558 70081 85973 48641 69392 43274 31248 60256 26807 34082 38330 26173 31062 35515 41795 17082 19597 18433 22198 Deposits Deposits Advances A

  10. Slide 10: Strengthening Business in Core Geographies

    Strengthening Business in Core Geographies  113 Years of dedicated Banking services – Strong brand recognition  Expanding Network and serving Pan India with 9786 touch points  Deep customer connect, especially in 5 Southern States (TN, AP, KA, KL, TS & Puducherry) which contribute 56% of Bank’s B

  11. Slide 11: Net Interest Income (NII) and Operating Profit

    Net Interest Income (NII) and Operating Profit ` in Cr Quarter Ended Year Ended S No Components 31.03.2018 31.12.2018 31.03.2019 Y-o-Y (%) 31.03.2018 31.03.2019 Y-o-Y (%) 1 Interest Income 4463.87 4823.92 4967.88 11.3 17113.65 19184.82 12.1 2 Other income 490.33 445.18 569.59 16.2 2405.83 1882.89 -2

  12. Slide 12: Net Profit - Snapshot

    Net Profit - Snapshot ` in Cr Quarter Ended Year Ended S No Components 31.03.2018 31.12.2018 31.03.2019 Y-o-Y (%) 31.03.2018 31.03.2019 Y-o-Y (%) 1 Operating Profit 1163.77 1146.61 1245.41 7.0 5000.99 4880.62 -2.4 2 Total Provisions 1031.79 994.34 1435.18 39.1 3742.00 4558.67 21.8 Of which : Loan lo

  13. Slide 13: Interest Income / Expenses and NII

    Interest Income / Expenses and NII ` in Cr Quarter Ended Year Ended S No Components 31.03.2018 31.12.2018 31.03.2019 Y-o-Y (%) 31.03.2018 31.03.2019 Y-o-Y (%) 1 Interest Income on Advances and Bills 3097.47 3553.17 3659.13 18.1 11857.15 13983.87 17.9 2 Interest on investments 1342.85 1221.70 1254.63

  14. Slide 14: Operating Expenses

    Operating Expenses ` in Cr Quarter Ended Year Ended S No Components 31.03.2018 31.03.2019 Y-o-Y (%) 31.03.2018 31.03.2019 Y-o-Y (%) 1 Staff Expenses 548.36 571.94 4.3 2100.25 2222.88 5.8 Of which Salary 437.42 454.14 3.8 1647.06 1788.15 8.6 Contribution for Employees 110.94 117.80 6.2 453.19 434.73

  15. Slide 15: Performance Ratios

    Performance Ratios % Annualized Quarter Ended Year Ended Parameters 31.03.2018 31.03.2019 31.03.2018 31.03.2019 Cost of Deposits 5.14 5.34 5.30 5.28 Cost of Interest bearing Liabilities 5.14 5.37 5.28 5.32 Cost to Income Ratio 45.31 46.62 42.31 45.17 Yield on Advances 8.15 8.43 8.50 8.45 Return on A

  16. Slide 16: Advances (Domestic)

    Advances (Domestic) ` in Cr RETAIL : `32853Cr (18.22%)* 0.54% AGRICULTURE : `39005 Cr (21.64%)* •MSME : `33046 Cr (18.32%)* Home Loans 3.03% 20.03% (Including 5.46% Crop Loans 11.40% Micro Mortgage Loans) 10.63% Enterprises Auto Loans Investment Credit 9.90% 43.69% 64.74% Agri Allied Small Enterpris

  17. Slide 17: Portfolio Exposure – Domestic Advances

    Portfolio Exposure – Domestic Advances ` in Cr % share to % share to Sector 31.03.2018 Gross 31.03.2019 Gross Advances Advances Infrastructure 24859 15.89 23970 13.29 Of which Power 10148 6.49 8946 4.96 Telecom 149 0.10 103 0.06 Roads 4252 2.72 3378 1.87 Other infrastructure 10311 6.59 11543 6.40 Ba

  18. Slide 18: Power Sector Exposure

    Power Sector Exposure ` in Cr Central Government State Government Private Sector Total Generation 405.95 3463.15 4291.46 8160.56 Distribution 0.00 1341.60 301.81 1643.41 Transmission 0.00 110.89 62.13 173.02 Investment 78.48 427.79 318.55 824.82 Total Exposure 484.43 5343.43 4973.95 10801.81 Of whic

  19. Slide 19: Investments - Domestic

    Investments - Domestic ` in Cr Composition 31.03.2018 31.12.2018 31.03.2019 Y-o-Y (%) Central Government Securities 45708 39134 38139 -16.56 State Government Securities 14984 13085 13880 -7.37 Other Approved Securities 26 7 5 -80.77 Debentures & Bonds 8676 9167 9275 6.90 Treasury Bills 0 0 0 -- Shar

  20. Slide 20: Capital Adequacy & Risk Management

    Capital Adequacy & Risk Management ` in Cr Risk Weighted Parameters 31.03.2018 31.03.2019 31.03.2018 31.03.2019 Assets (RWA) Capital 19184 20234 123975 127604 Credit Common Equity Tier I capital (CET 1) 16815 16790 (76.19%) (67.91%) Additional Tier I 500 500 17252 12241 Tier II Capital 1868 2944 Mar

  21. Slide 21: Shareholding Pattern & Balance Sheet

    Shareholding Pattern & Balance Sheet % of Holdings Pattern of Equity Shareholding Resident/ Shareholder % Employees/ FI/FPI/FII, Government of India 81.49 NRI, 2.31% 7.66% Mutual Others , Mutual Funds 8.07 Funds, 0.47% FI/FPI/FII 7.66 8.07% Resident/Employees/NRI 2.31 Others 0.47 Government Of which

  22. Slide 22: Asset Quality - Improving

    Asset Quality - Improving Parameter 31.03.2018 30.06.2018 30.09.2018 31.12.2018 31.03.2019 Gross NPA (` in Cr) 11990 11828 12334 13198 13353 Net NPA (` in Cr) 5960 5999 7060 7571 6793 Provision Coverage Ratio (%) 64.27 64.38 60.82 60.91 65.72 Parameter YE 31.03.2018 YE 31.03.2019 Slippage Ratio (%)

  23. Slide 23: NPA Position - Sectorwise

    NPA Position - Sectorwise 31.03.2018 31.12.2018 31.03.2019 ` in Cr Sector % to % to % to Gross Gross Gross Respective Respective Respective NPA NPA NPA portfolio portfolio portfolio Retail Credit 569 2.15 951 3.17 963 2.93 Of which Home Loan 214 1.51 342 2.07 292 1.61 Education Loan 274 8.36 469 14.

  24. Slide 24: NPA Position – Industry wise

    NPA Position – Industry wise ` in Cr 31.03.2018 31.12.2018 31.03.2019 Industry % to % to % to Gross NPA Respective Gross NPA Respective Gross NPA Respective portfolio portfolio portfolio Metal and Metal Products (Incl. Iron & Steel) 3794 60.57 2075 40.83 1962 29.64 Petroleum & Other Minerals 293 59.

  25. Slide 25: Movement of NPA

    Movement of NPA ` in Cr S QE YE Details No 31.03.2018 31.12.2018 31.03.2019 31.03.2018 31.03.2019 1 Gross NPA opening Balance 9595 12334 13198 9865 11990 ADDITIONS : Fresh Slippages 2989 1769 962 4949 6312 To old NPAs / Others 32 -20 43 92 133 2 Sub-Total 3021 1749 1005 5041 6445 LESS: Cash Recovery

  26. Slide 26: Movement of portfolio under SMA

    Movement of portfolio under SMA % to Domestic Advances SMA 1 SMA 2 7.84 Credit Cost from 5.59 2.48 % to 2.18% 5.10 (30 bps) 2.28 2.37 1.46 Mar-18 Sep-18 Mar-19 Significant decline in SMA 1 and SMA 2 22/35

  27. Slide 27: Status of NCLT Accounts

    Status of NCLT Accounts ` in Cr No.of Category Exposure Provision PCR % Accounts RBI List I 6 1631.2 1233.3 75.6 RBI List II 9 688.1 660.1 95.9 Others 42 3011.6 2539.2 84.3 Total 57 5330.95 4432.6 83.2 Standard Asset 1 25.07 (filed by OP Cr) Grand Total 58 5356.02 4432.6 82.8  3 accounts (Bhushan S

  28. Slide 28: Human Resource – Well balanced by gender & age

    Human Resource – Well balanced by gender & age In numbers 31.03.2018 31.03.2019 Category % to Total % to Total % to Total % to Total Female Male Female Male Employees Employees Employees Employees Officers 2874 14.32 7551 37.63 3134 15.83 7690 38.84 Clerks 3434 17.11 4754 23.69 3264 16.48 4393 22.19

  29. Slide 29: Way forward

    Way forward Organizational restructuring:  Specialized Branches for Corporate credit. Focus on RAM:  Centralized processing units for MSME and RAM.  Positioning of Field General Manager at 6 centres.  Credit Monitoring Department strengthened. Diversifying loan book:  Positioning for taking exp

  30. Slide 30: Digital Products for Digital India

    Digital Initiatives igital Products for igital India IB Collect Plus Virtual Account collection Software as a service for the Offline Collection, Online Corporate/ Institutions who do Response. not have websites for funds collection IB-DIGI Bhim Aadhaar Pay Online Savings Bank Account Aadhaar Enable

  31. Slide 31: Migration to Alternate Channels

    igital Products for igital India Migration to Alternate Channels FY 17-18 FY 18-19 2% 8% 2% 12% 8% 7% Share of 36% Share of Transactions 39% Transactions through through Alternate Alternate Channels : Channels : 62.31% 67.85% 32% 3% 38% 2% 3% 8%  Transactions at Branch Counters  Transactions on Mo

  32. Slide 32: Digital Footprint

    igital Products for igital India Digital Footprint Net Banking Mobile Banking Mio Mio No. of users Transactions No. of users Transactions 27.23 YoY 21.56 % YoY 19.75 % YoY 38.51 % YoY 416.38% 75.34 2.03 2.05 1.67 1.48 22.74 14.59 31.03.2018 31.03.2019 FY 17-18 FY 18-19 31.03.2018 31.03.2019 FY 17-18

  33. Slide 33: Performance under 24 x 7 Banking

    Performance under 24 x 7 Banking igital Products for igital India ATMs and BNAs Numbers Volume of Transactions (Mio) YoY 15 % YoY 25 % 386.42 3892 307.96 3399 31.03.2018 31.03.2019 FY18 FY19 Number of Debit Cards as on 31.03.2019: 14.24 Mio Security Measures for Customer Safety  100% Debit cards mi

  34. Slide 34: Expanding Footprint – PFMS & Govt Business

    Expanding Footprint – PFMS & Govt Business igital Products for igital India Public Financial Management System (PFMS) 53551 73258 YoY 62 % 54542 YoY 96 % YoY 19 % 61529 33696 27365 31.03.2018 31.03.2019 31.03.2018 31.03.2019 31.03.2018 31.03.2019 No.of Accounts Average CASA(Mio) Turn Over (Mio) Gove

  35. Slide 35: Financial Inclusion – Performance under PMJDY

    Financial Inclusion – Performance under PMJDY Accounts (No.in lakhs) Deposits (` in crore) Mar-19 594.86 Mar-19 37.78 Dec-18 Dec-18 521.98 35.70 Mar-18 33.10 Mar-18 494.27 % of Zero Balance A/cs Overdrafts Sanctioned (` in crore) Mar-19 13.27 Mar-19 17.60 Dec-18 15.08 Dec-18 17.17 Mar-18 14.22 Mar-1

  36. Slide 36: Government Schemes – Performance as on 31.03.2019

    Government Schemes – Performance as on 31.03.2019 22.76 lakh Policies 10.06 lakh Policies Disbursement Rs 1734.14 Cr in 98815 accounts (YE March 19) 5.78 lakh enrolments Persistency Ratio - 72 % Rs. 125.41 Cr sanctioned in 339 accounts 32/35

  37. Slide 37: Awards & Accolades

    Awards & Accolades NABARD 1. “Best Performance – Financial Literacy” - 2018-19 2. “First Prize” among PSBs for Excellence in performance under “SHG Bank Linkage Programme” in Tamil Nadu – 2017-18 APY - Government of India PFRDA “Leadership Capital Campaign” – “The Best Performing PSB” under APY - to

  38. Slide 38: 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. Except for the historical information contained herein, statements in this rele

  39. Slide 39: Thank you

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