Bank Of India · NSE:BANKINDIA
Bank Of India — Non-Deal Roadshow (August 2021)
32 slides from Bank Of India's roadshow presentation, Aug 9, 2021
Slide 1: Exchange filing cover letter: schedule of non-deal roadshows
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Slide 2: Bank of India Corporate Presentation August 2021
Bank of India Corporate Presentation August 2021 1
Slide 3: Disclaimer (1/2)
Disclaimer………………………………(1/2) This presentation has been prepared for general information purposes in respect of Bank of India (“Bank”) together with its subsidiaries, associates and joint ventures, as applicable (together, with the Bank, the “Group”) only, without regard to any specific objectives, s
Slide 4: Disclaimer (2/2)
Disclaimer………………………………(2/2) This presentation includes certain industry data and projections that have been obtained from industry publications and surveys. Industry publications and surveys and forecasts generally state that the information contained therein has been obtained from sources believed
Slide 5: Table of Contents
Table of Contents 1 Bank of India - Overview 2 Key Investment Highlights 3 About Bank of India 4 Way Forward & Growth Strategies 5 Annexure 4
Slide 6: Established franchise with 100+ year legacy
Established franchise with 100+ year legacy Almost 115 years of Banking Diversified Asset Book with Experience and Legacy improving risk profile • Led by an experienced • Focus on RAM and govt. management and distinguished guaranteed advances board of directors • Reducing NPAs and improving • The Ba
Slide 7: Overview
BO! * Relationship beyond 6
Slide 8: Bank of India – India's 6th largest Public Sector Bank
Bank of India – India’s 6th largest Public Sector Bank All figs for Q1FY22/ Jun’ 22 In INR Bn Overview • Founded in 1906, rich legacy of almost 115 years Gross Deposits: CASA: Advances: INR 6,234 Bn 43.22% • As of FY21, Bank of India is the 6th largest^ Public Sector INR 4,147 Bn Bank’s in India by
Slide 9: Key Investment Highlights
Key Investment Highlights 8
Slide 10: Bank of India – Key Investment Highlights (1/2)
Bank of India – Key Investment Highlights (1/2) 1 Growing Total Business 2 Increasing CASA Ratio ( Gross Advances + Global Deposits) Rs. Bn 10,154.0 10,268.7 10,375.5 10,380.8 43.2% 10,106.8 9,720.3 41.5% 41.3% 40.6% 40.6% 39.5% Mar' 20 Jun' 20 Sep' 20 Dec' 20 Mar' 21 Jun' 21 Mar' 20 Jun' 20 Sep' 20
Slide 11: Bank of India – Key Investment Highlights (2/2)
Bank of India – Key Investment Highlights (2/2) 5 Return to profitability 6 6 Controlled slippage ratio and credit Reduction in GNPA and NNPA Profit After Tax (PAT) costs Rs. Bn GNPA NNPA Slippage Ratio Credit Cost 8.4 7.2 8.3% 5.3 5.4 14.8% 2.5 13.9% 13.8% 13.8% 13.5% 13.3% 3.4% 0.8% 2.3% 2.1% 3.9%
Slide 12: About Bank of India
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Slide 13: Low Cost Deposit Base with Growing CASA
Low Cost Deposit Base with Growing CASA Growing Deposit Base – Global Deposits Rs. Bn 6,271 6,234 5,952 5,555 5,209 Mar' 19 Mar' 20 Mar' 21 Jun' 20 Jun' 21 Key Steps taken to optimize the deposit book Bank has worked to sequentially Within TD – there has been a clear This has resulted in a visible d
Slide 14: Asset Book with growing share of Government guaranteed Advances & RAM
Asset Book with growing share of Government guaranteed Advances & RAM Stabilizing Global Advances Rs. Bn 4,165 4,104 4,154 4,147 3,829 Mar' 19 Mar' 20 Mar' 21 Jun' 20 Jun' 21 While gradually shifting the mix towards granular RAM and Government guaranteed Advances (Sectoral mix of domestic deposits)
Slide 15: Diversified Corporate Asset Book
Diversified Corporate Asset Book Majority of new lending in infra has been towards Corporate Advances are diversified across sectors govt. guaranteed State Electricity Boards (SEBs) % of Jun’ 20 Jun’ 21 Sector (INR Bn) Mar' 19 Mar' 20 Mar' 21 Jun’ 21 domestic advances 27% 34% Infrastructure 510.5 54
Slide 16: Improving Asset Quality 1/3
Improving Asset Quality………………….1/3 Reduction in NPAs Consistent increase in PCR GNPA NNPA 86.2% 86.2% Automated system in place for NPA calculation 83.8% 15.8% 14.8% 13.8% 13.5% 77.0% 5.6% 3.9% 3.4% 3.4% Mar' 19 Mar' 20 Mar' 21 Jun' 21 Mar' 19 Mar' 20 Mar' 21 Jun' 21 SMA position is also rapidly imp
Slide 17: Improving Asset Quality 2/3
Improving Asset Quality………………….2/3 Break up of NPAs segment wise FY19 FY20 FY21 Q1FY22 Retail 3.0% 3.0% 3.2% 3.9% Agri 17.4% 18.4% 15.3% 15.7% MSME 17.6% 17% 17.9% 19.7% Corporate 18.6% 16.2% 14.3% 12.6% Restructuring done under Resolution Framework Implemented % on Gross In INR Bn In INR Bn – Jun’
Slide 18: Improving Asset Quality 3/3
Improving Asset Quality………………….3/3 Movement Of NPA – Trending Downwards Strong execution seen towards reduction in NPAs Rs. Bn Sl. Parameters (Rs. Bn) FY19 FY20 FY21 Q1FY22 NPA as at the 1 beginning of 623.2 606.6 615.5 565.4 29 Year/Quarter 2 -Cash Recovery 80.0 65.1 41.9 8.5 11 7 Q1FY21 Q4FY21 Q1F
Slide 19: Capital Adequacy Ratio
Capital Adequacy Ratio CRAR Tier II Tier I Shareholding 14.2% 13.1% 14.9% 15.1% As on Jun’ 21 3.5% 6.1% 3.0% 3.1% 3.1% 3.2% 90.3% 11.1% 12.0% 12.0% 9.9% Govt. of India LIC Others Mar' 19 Mar' 20 Mar' 21 Jun' 21 Particulars (INR Bn) Mar’ 2019 Mar’ 2020 Mar’ 2021 Jun’ 2021 Capital Adequacy - Basel III
Slide 20: Improving Digital presence
Improving Digital presence Internet Banking Users (Mn) Strong suite of digital products 7.4 7.6 6.6 5.8 > 10 Mn > 42 Mn > 52,000 Mar' 19 Mar' 20 Mar' 21 Jun' 21 Users Debit Cards PoS Mobile Users (Mn) Digital Initiatives 4.7 4.3 3.0 Digi Branches: 254 Select Branches converted to Digi 1.3 Branches
Slide 21: Pan India Presence with strong Global Reach
Pan India Presence with strong Global Reach Strong focus on under banked areas – Rural & Semi 5,084 domestic branches Urban As on Jun’ 21 8 5,426 ATMs 10 19% Rural 19 161 36% Semi-urban > 102 Mn customers 35 16% Urban 100 64 5 Metro 2 29% 149 519 50 2 344 4 4 Strong Global Presence 491 13 384 367 2
Slide 22: Experienced Management Team
Experienced Management Team Shri Atanu Kumar Das (MD and CEO) Designated as Managing Director and CEO of the Bank on January 20, 2020 In the past, he has served as a General Manager of Vijaya Bank Shri P R Rajagopal Shri Swarup Dasgupta Shri M Karthikeyan Ms. Monica Kalia (Executive Director) (E
Slide 23: Way Forward & Growth Strategies
Way Forward & Growth Strategies 22
Slide 24: Improving Financial Metrics
Improving Financial Metrics Sequential Improvement in Net Interest Income in recent Led by decreasing interest expense due to reorientation of quarters deposits towards low cost CASA and Granular TD Rs. Bn Rs. Bn 271.1 271.0 263.3 152.6 136.6 142.7 67.5 34.8 63.9 31.4 61.8 29.4 FY19 FY20 FY21 Q1FY21
Slide 25: Key Growth Strategies
Key Growth Strategies Targeted growth in Digital HR & Leadership Risk Management business Transformation Management • Additional specialized • Utilize data analytics for • Tech-driven Credit • Focus on Job Family, credit processing centres lead generation Monitoring System for Performance for Retail
Slide 26: Vision & Future Outlook
Vision & Future Outlook Expand the Bank’s Retail, Agriculture and MSME (RAM) lending profile by leveraging its existing customer base Continue to contain funding cost by sourcing low cost deposits such as CASA Focus on improving asset quality and containing NPA levels Leverage technology to increase
Slide 27: Annexures
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Slide 28: Profit & Loss Statement
Profit & Loss Statement (in Rs. Bn) FY19 FY20 FY21 Q1FY21 Q1FY22 Interest Income 407.7 423.5 406.0 102.3 93.2 Interest Expense 271.1 271.0 263.3 67.5 61.8 Net Interest Income 136.6 152.6 142.7 34.8 31.4 Non Interest Income 46.6 67.1 74.4 17.1 23.8 Operating Income 183.2 219.7 217.1 51.9 55.2 Operati
Slide 29: Non Interest Income
Non Interest Income (in Rs. Bn) FY19 FY20 FY21 Q1FY21 Q1FY22 Commission/Exchange & Brokerage 12.4 13.6 11.1 2.2 2.4 Profit from Sale of Investments -4.4 5.9 25.5 9.1 9.4 Profit from Exchange Transactions 13.1 15.0 18.9 3.3 7.5 Recovery in W/o accounts 9.7 17.8 5.3 0.3 1.7 Other Non Interest Income 1
Slide 30: Balance Sheet
Balance Sheet (in Rs. Bn) FY19 FY20 FY21 Q1FY22 CAPITAL & LIABILITIES Capital 27.6 32.8 32.8 37.0 Reserves & Surplus 389.2 405.4 424.1 458.5 Share application money 46.4 - 30.0 - Deposits 5,208.6 5,555.1 6,271.1 6,233.9 Borrowings 442.4 397.5 324.6 300.2 Other Liabilities & Provisions 138.0 179.2 17
Slide 31: Net Worth – Book Value per share
Net Worth – Book Value per share Book Value Per Share Rs. Bn Sr.No. Particulars Jun' 21 A Share Capital 37.0 B Share Application Money Pending allotment 0.0 C Reserves & Surplus (excluding Revaluation Reserve & FCTR) - i) Statutory Reserve 76.3 ii) Capital Reserve 30.5 iii) Revenue & Other Reserve 8
Slide 32: Thank you
BO! * Relationship beyond 6 31