Idbi Bank Limited · NSE:IDBI
Idbi Bank — Investor Presentation (September 2013)
40 slides from Idbi Bank's investor presentation, September 2013
Slide 1: IDBI Bank Investor Presentation September 2013
@ DBI BANK. Investor Presentation September 2013
Slide 2: Disclaimer
This material has been prepared by IDBI Bank (the “Company”) and has not been independently verified. This material has been prepared for the information of the parties to whom it is delivered and is being delivered to you solely in your capacity as a relevant person (as defined below). This documen
Slide 3: Agenda
Indian Economy & Banking Sector IDBI Bank—Overview & History Key Investment Highlights 3
Slide 4: Indian Economy & Banking Sector
Indian Economy & Banking Sector ID IDBI san
Slide 5: Fastest Growing Economies and Favorable Demographics
Still Among the Fastest Growing Economies1 Favorable Demographics 5 % Real GDP Growth Population [Y-o-Y Growth] [Age in Years] 40 35 36 9.2% 30 29 7.8% 27 6.3%6.3% 6.8% 5.9% 5.5% 4.8% 4.0% 3.7% 2.8% 2.5% China Indonesia* Thailand* India 2 Korea* Brazil India Indonesia Brazil Thailand China South Kor
Slide 6: Government Debt, Services Contribution, Investment Inflows and Savings
Tapering of Government Debt as a Proportion of GDP 1 Increasing Contribution of Services to GDP 2 [Rs. Billion] [%] 58% 60% 56% 57% 57% 66,169 54% 54% 54% 79.1% 58,805 70.6% 51,081 73.2% 68.0% 70.6% 45,724 39,768 33,923 28% 29% 29% 28% 28% 28% 28% 27% 29,204 31,436 65.5% 65.5% 66.0% 18% 17% 17% 15%
Slide 7: Policy Initiatives and Reforms
Amendments in key policies to enable better and transparent regulations of various critical sectors in the economy (Eg. The Companies Bill 2012, The Banking Laws (Amendment) Bill, 2011, The Land Acquisition Bill 2012, Fuel Supply Agreement (FSA) between Power Producers and Coal India) Calibratio
Slide 8: Indian Banking System at a Glance
Indian Banking System at a Glance [Rs. Billion] [No.] 105,209 95,686 83,229 57,262 36,161 21,147 218 178 169 166 163 163 168 FY06 FY07 FY08 FY09 FY10 FY11 FY12 No. of Commercial Banks1 Total Business1 No. of Branches2 No. of ATMs There were 168 Commercial Banks in India as at end of March 2012, ou
Slide 9: Penetration Rate of Banks
Credit penetration rate of banking sector in India stood at 52.1% of Penetration Rate of Banks3 GDP in 2012 Domestic Credit / GDP [%] Scope for growth given the large size of the country’s 169 population—much of it rural and unbanked 155 111 903 mn1 bank deposit accounts vs. 919 mn2 mobile sub
Slide 10: Loans to Deposits Ratio and Banking System Capital Adequacy
Inherent Strengths Loans to Deposits Ratio 1 High levels of capital adequacy [%] 121.3% Exhibited remarkable stability during the credit crisis 98.9% 103.6% Limited off-balance sheet activities or securitized assets 77.5% 80.0% 72.1% Significant portion of the balance sheet in domestic sec
Slide 11: IDBI Bank—Overview & History
IDBI Bank—Overview & History : ID IDBI san
Slide 12: Mission Statement
Mission Statement Delighting customers with our excellent service & comprehensive suite of best-in-class financial solutions Touching more people’s lives with our expanding retail footprint while maintaining our excellence in corporate and infrastructure financing Continuing to act in an ethical, tr
Slide 13: India's Apex Financial Institution
India’s Apex IDBI played a critical role in India’s industrial and economic progress and in building the financial architecture Development of the country Financial Institution Catalyst for investments in industrial and infrastructure space Well-established brand name in India (among top 50 br
Slide 14: Evolution of IDBI: 1964 to 2013
1964 – 1993 1994 – 2002 2003 –2006 2007 – 2013 1964 – Set up by an Act 1994 – IDBI Act amended 2003 – IDBI Repeal Act Complete networking of Parliament as a to permit private passed for conversion (100.0% Core Banking) subsidiary of RBI ownership up to 49.0% into a banking company HR integ
Slide 15: Apex role in project finance and institution builder
Played apex role in providing project finance over four decades—India’s No.1 Developmental Financial Institution (DFI) Policy bank for Government of India in the area of industrial and infrastructure development Institution builder EXIM Bank and SIDBI were departments of IDBI—carved out of I
Slide 16: Subsidiaries engaged in capital market activities
Engaged in Engaged in Mutual Fund Trusteeship In association capital market Information Company with Federal activities Technology Bank and Ageas related activities 100.0% 100.0% 100.0% 55.0% (48.0% stake) subsidiary subsidiary subsidiary subsidiary 16
Slide 17: Advances Mix, Deposits Mix and Summary Financials
Advances Mix [FY13] Summary Financials [Rs. Billion] FY13 327 168 (Rs. Billion) 17% 8% Advances 1,963 Deposits 2,271 462 1,000 24% Borrowings 658 51% Total Assets 3,228 Corporate Banking Infrastructure Lending Retail Banking Group Priority Sector Lending Group Net Profit 18.82 Deposits1 Mix [FY13] N
Slide 18: IDBI Bank—Key Investment Highlights
IDBI Bank—Key Investment Highlights : ID IDBI san
Slide 19: Unique Evolution, Government Relationship and Strengths
Evolution Superior IT Infrastructure Created and granted banking license in Superior IT infrastructure Sep 2004 under the IDBI Repeal Act Fully integrated core banking Other public sector banks nationalized solutions in 1969 and 1980 Consistently won awards for its Only bank to be classi
Slide 20: Top Tier Bank Focused on Profitable Growth
IDBI Bank is a Top Tier Bank in India, Driven by its Continued Focus on Profitable Growth Strong Fee Strong Income from Government Diversified Support Sources Pan India Strong Presence and Growth in Growing Overall Branch Business Network Pioneer in Strong fee Risk Infrastructure income from Managem
Slide 21: Majority Government ownership
Majority Government ownership Shareholding as on March 31st, 2013 Government of India holding currently at 71.7% Minimum Government shareholding at 51.0% 2.4% [Memorandum and Articles of Association] 8.8% 3.4% Demonstrated Government support 13.8% Govt stake increased from 70.5% to 71.7% b
Slide 22: Reach, Customer Base and Global Expansion Plans
Reach 1,077 branches; 1,702 ATMs Presence in 742 locations Network of 72 Retail Asset Centres 33 MSME Processing Centres 22 Agri Processing Centres 6 Regional Processing Units 26 Central Clearing Units 7 Currency chests across the country Internet banking 4 Regional and 1 cen
Slide 23: Growth in Branch and ATM Network
Growth in Branch and ATM Network Distribution of Branch Network [No.] 1,702 132 1,542 1,372 274 1,201 1,077 973 914 282 816 779 708 520 537 388 499 432 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 Metro Urban Semi-Urban Rural Branch ATM * Plus 1 Overseas Branch (DIFC, Dubai) Branch network has more t
Slide 24: Core Competencies in Infrastructure, Project Financing and Loan Syndication
Strong Core Competencies in Infrastructure, Project Financing and Loan Syndication Strong appraisal and loan syndication skills India Loans Book Runner – 2012 Pioneer in Infrastructure financing No. Underwriter Volume [USD mn] Issues Share [% ] 1. State Bank of India 18,935 37 48.6% Associated
Slide 25: Low Cost-to-Income Ratio and High Employee Productivity
Low Cost-to-Income Ratio High Employee Productivity (Profit per Employee) [%] [Rs. ‘000] 49.3% 1,316 1,193 1,217 40.2% 39.2% 35.2% 36.5% 842 844 FY09 FY10 FY11 FY12 FY13 FY09 FY10 FY11 FY12 FY13 1. FY12–13 25
Slide 26: Corporate Governance and Risk Management Function
Corporate Governance Risk Management Function Executive Committee of the Board approves credit over a Risk Management Committee of the Board supervises threshold limit Board-defined risk philosophy & policies Other Board Committees include Audit, Risk, Shareholder Credit risk managed & monit
Slide 27: Asset Quality and Restructured Assets
Asset Quality Restructured Assets [%] [Rs. Billion] 74.7% 68.3% 70.8% 136 3.2% 107 100 2.5% 93 1.8% 1.6% 1.6% 1.1% 31 March 31, 2011 March 31, 2012 March 31, 2013 March 31, March 31, March 31, March 31, March 31, 2009 2010 2011 2012 2013 Provision Coverage Ratio Gross NPA Net NPA (including write-of
Slide 28: Capital Ratios
Capital Ratios [% as per Basel II] 14.6% 13.6% 13.1% 11.6% 11.3% 6.2% 5.6% 5.5% 4.8% 5.1% 8.0% 8.4% 7.7% 6.8% 6.2% March 31, 2009 March 31, 2010 March 31, 2011 March 31, 2012 March 31, 2013 Tier I Capital Tier II Capital Minimum Capital Adequacy Ratios required by the Reserve Bank of India: 9.0% T
Slide 29: IDBI Bank—Key Financial Highlights
IDBI Bank—Key Financial Highlights : ID IDBI san
Slide 30: Growth in Advances, Investments, Deposits and Total Business
Stable Growth in Advances… …With Rising Levels of Investments [Rs. Billion] [Rs. Billion] 988 1,963 1,806 832 1,571 733 683 1,382 1,034 500 822 328 FY08 FY09 FY10 FY11 FY12 FY13 FY08 FY09 FY10 FY11 FY12 FY13 …And Increasing Deposits ..Resulting in Sustainable Growth of Total Business2 [Rs. Billion]
Slide 31: Total Income, Net Interest Income, Net Profit and Net Interest Margin
Consistent Growth in Total Income With Strong Growth in Net Interest Income [Rs. Billion] [Rs. Billion] 283 54 255 45 43 207 176 130 23 96 12 7 FY08 FY09 FY10 FY11 FY12 FY13 FY08 FY09 FY10 FY11 FY12 FY13 …And Net Profits Resulting in Sustained Profitability (Net Interest Margin) [Rs. Billion] [%] 2.
Slide 32: Increasing CASA and Growth in Number of Accounts
Increasing CASA Robust Growth in Number of Accounts [%] [In ‘000] CASA per Branch at over Rs. 500 million—highest among No of Accounts registered growth of 13.2% in FY13 any Bank in the country over FY12 9,136 25.1% 24.1% 8,070 20.9% 10.5% 9.0% 5,824 7.7% 14.8% 14.6% 6,741 4,777 4,688 6,034 4.9% 5.2
Slide 33: Cost-to-Income, Return on Assets and Return on Equity
Cost-to-Income Ratio Return on Assets [%] [%] 49.3% 0.8% 39.2% 0.7% 0.7% 40.2% 35.2% 36.5% 0.6% 0.5% FY09 FY10 FY11 FY12 FY13 FY09 FY10 FY11 FY12 FY13 Staff Expenses to Total Expenses Return on Equity [%] [%] 6.9% 15.1% 6.3% 14.9% 5.5% 5.0% 5.1% 13.1% 12.1% 10.4% FY09 FY10 FY11 FY12 FY13 FY09 FY10 F
Slide 34: Fee Income Growth and Proportion to Operating Expenses
Strong Growth in Fee Income As Proportion to Operating Expenses [Rs. Billion] [%] 25 78.4% 78.1% 78.6% 18 17 67.3% 65.8% 14 9 FY09 FY10 FY11 FY12 FY13 FY 09 FY 10 FY 11 FY 12 FY 13 1. CAGR=Cumulative Average Growth Rate-FY09-FY13 2. In FY13 34
Slide 35: Key Financials and Key Ratios
Key Financials [Rs. Billion] FY09 FY10 FY11 FY12 FY13 CAGR Advances 1,034 1,382 1,571 1,806 1,963 17.4% Deposits 1,124 1,677 1,805 2,105 2,271 19.2% Total Business 2,158 3,059 3,376 3,917 4,234 18.4% Borrowings 444 477 516 535 658 10.3% Total Assets 1,724 2,336 2,534 2,903 3,228 17.0% Net Profit 8.6
Slide 36: April–June 2012 vs April–June 2013
[Rs. Billion] April – June 2012 April – June 2013 Total Assets 2,717 2,878 Advances 1,671 1,789 Deposits 1,917 1,833 Net Profit 4.27 3.07 Net Interest Margin 2.1% 2.1% CRAR - Tier-I (As per Basel II/Basel III)1 8.2% / NA 7.9% / 7.7% CRAR - Total (As per Basel II/Basel III)1 6.1% / NA 13.4% / 12.7% G
Slide 37: Awards and Recognition
IDBI Bank has won several awards including Won the award for “Best Retail Bank in the Public Sector” by Dun and Bradstreet, 2012 Winner in “Human Capital Development Category‟ for “Leveraging Human Capital to Deliver Customer Delight and Impact Overall Growth” at the ADFIAP (Association of Dev
Slide 38: The Way Forward
The Way Forward }@ IDBI BANK 38
Slide 39: Vision and Overall Objectives
“To be the Most Preferred and Trusted Bank Enhancing Value for all Stakeholders” Overall objectives Product innovation and continued thrust on improving customer service bringing about “Customer Delight” Expanding presence by opening more branches and other delivery channels Enlarging depositors bas
Slide 40: Thank you
Thank you