Indian Overseas Bank · NSE:IOB

Indian Overseas Bank — Q3 2020-21 Earnings Presentation

44 slides from Indian Overseas Bank's earnings presentation, Feb 9, 2021

  1. Slide 1: Performance Analysis Q3/9M 2020-21

    इण्डियन ओवरसीज़ बैंक Indian Overseas Bank PERFORMANCE ANALYSIS Q3/9M 2020-21 आपकी प्रगति का सच्चा साथी Good people to grow with

  2. Slide 2: Index

    INDEX PERFORMANCE HIGHLIGHTS 03-05 FINANCIAL PERFORMANCE 06-12 BUSINESS PERFORMANCE 13-21 NPA MANAGEMENT 22-25 CAPITAL ADEQUACY 26-29 COVID-19 RESPONSE 30-31 FINANCIAL INCLUSION & CUSTOMER SERVICE 32-34 DIGITAL INITIATIVES 35-40 Good people to grow with

  3. Slide 3: Performance Highlights

    PERFORMANCE HIGHLIGHTS Good people to grow with

  4. Slide 4: Performance Highlights Q3 2020-21

    PERFORMANCE HIGHLIGHTS Q3 2020-21 Rs in Crore Dec-20 Y-o-Y(%) Q-o-Q (%) BUSINESS GROWTH CASA 95830 10.75 3.67 ROBUST RETAIL CASA % 40.93 183 bps 67 bps Retail Term Deposits 124862 15.18 1.24 Home Loan 16920 16.29 4.80 Jewel Loan 25135 38.80 14.94 RAM Adv to Domestic Adv % 82.52% 983 bps 441 bps Dec-

  5. Slide 5: Performance Highlights Q3 2020-21 - Asset Quality

    PERFORMANCE HIGHLIGHTS Q3 2020-21 Rs in Crore Dec-20 Y-o-Y(%) Q-o-Q (%) ASSET QUALITY IMPROVING Gross NPA 16753 -29.41 -5.13 Net NPA 3905 -44.90 -26.18 GNPA% 12.19% (470 bps) (85 bps) NNPA% 3.13% (554 bps) (80 bps) Dec-20 Y-o-Y(%) Q-o-Q (%) STRENGTHENING 91.91% 571 bps 255 bps INDICATORS PCR FINANCI

  6. Slide 6: Financial Performance

    FINANCIAL PERFORMANCE Good people to grow with

  7. Slide 7: Financials - At a Glance

    FINANCIALS- AT A GLANCE Rs. in Crore Quarter Ended 9 Months Growth % Dec-20 Dec-20 Particulars 9M FY 21 Over Over Dec-19 Sept-20 Dec-20 9M FY 20 9M FY 21 Over Sept-20 Dec-19 9M FY 20 (Q-o-Q) (Y-o-Y) Interest Income 4352 4363 4244 12964 12908 -2.72 -2.49 -0.43 Interest Expenses 3073 2801 2722 9193 84

  8. Slide 8: Total Income

    TOTAL INCOME Rs. in Crore Quarter Ended 9 Months Growth % Dec-20 Dec-20 9M FY 21 Particulars Over Over Dec-19 Sept-20 Dec-20 9M FY 20 9M FY 21 Over Sept-20 Dec-19 9M FY 20 (Q-o-Q) (Y-o-Y) Interest on Loans 2868 2847 2759 8665 8388 -3.09 -3.78 -3.19 Interest on Investment 1346 1437 1413 3809 4273 -1.

  9. Slide 9: Total Expenses

    TOTAL EXPENSES Rs. in Crore Quarter Ended 9 Months Growth % Dec-20 Dec-20 9M FY 21 Particulars Over Over Dec-19 Sept-20 Dec-20 9M FY 20 9M FY 21 Over Sept-20 Dec-19 9M FY 20 (Q-o-Q) (Y-o-Y) Interest on Deposits 2932 2696 2627 8776 8098 -2.56 -10.42 -7.73 Interest on Borrowings 141 106 95 417 315 -9.

  10. Slide 10: Provisions & Profit

    PROVISIONS & PROFIT Rs. in Crore Quarter Ended 9 Months Growth % Dec-20 Dec-20 9M FY 21 Particulars Over Over Dec-19 Sept-20 Dec-20 9M FY 20 9M FY 21 Over Sept-20 Dec-19 9M FY 20 (Q-o-Q) (Y-o-Y) Operating Profit 762 1346 1731 2337 4172 28.61 127.10 78.54 Provisions 6838 1198 1518 11008 3690 26.7 -77

  11. Slide 11: Performance Ratios - Quarterly

    PERFORMANCE RATIOS- QUARTERLY Cost of Deposits Yield on Advances 8.51 8.65 8.36 8.39 5.37 8.10 5.17 4.99 4.80 6.96 6.93 6.75 6.96 6.58 4.59 Dec 19 Mar-20 June 20 Sep-20 Dec-20 YOA (Including Tech-W/off) Dec 19 Mar-20 June 20 Sep-20 Dec-20 YOA (Excluding Tech-W/off) Cost to Income Ratio Net Interest

  12. Slide 12: Valuations

    VALUATIONS Particulars (Quarterly) Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Earning per Share (') (Not annualised ) -5.83 0.1 0.07 0.09 0.13 Book Value per Share 1.05 4.97 3.63 3.73 3.87 Adjusted Book Value per Share (') -4.58 -2.25 -0.07 0.52 1.5 ([Networth- Net NPA]/No of Shares) Price/Book Value (') 10

  13. Slide 13: Business Performance

    BUSINESS PERFORMANCE Good people to grow with

  14. Slide 14: Business Performance - Global

    BUSINESS PERFORMANCE- GLOBAL Rs. in Crore Particulars Dec-19 Sept-20 Dec-20 Y-o-Y(%) Q-oQ(%) CASA 86530 92436 95830 10.75 3.67 a)Retail Term Deposits 108405 123338 124862 15.18 1.24 b)Bulk Deposits 22540 10523 10096 -55.21 -4.06 c)Overseas Term Deposits 3815 3310 3328 -12.76 0.54 Term Deposits (a+b+

  15. Slide 15: Deposits Composition

    DEPOSITS COMPOSITION Rs. in Crore Y-o-Y variation Q-o-Q variation Parameters Dec-19 Sept-20 Dec-20 Amount % Amount % Domestic-Deposits Savings Bank 71962 78758 80024 8062 11.20 1266 1.61 Current Account 13609 12628 14808 1200 8.81 2180 17.26 CASA 85570 91386 94832 9262 10.82 3446 3.77 Term Deposits

  16. Slide 16: Risk Spread - Assets

    RISK SPREAD- ASSETS Rs. in Crore Domestic Share of Advances DEC-19 DEC-20 Corporate MSME Corporate MSME /others 23% /others 24% 22% 29% Agri Retail 25% Agri 27% Retail 27% 23% Y-o-Y Growth Q-o-Q Growth Parameters Dec-19 Sept-20 Dec-20 Amount % Amount % Retail 31336 34101 34986 3650 11.65 884 2.59 Ag

  17. Slide 17: Retail Performance

    RETAIL PERFORMANCE Rs. in Crore Period Domestic Retail % Share Dec-19 132551 31336 23.64% Others , Mar-20 127336 32876 25.82% 25.71% Home, Clean, 48.36% Jun-20 123542 32052 25.94% 2.76% Sep-20 127551 34101 26.74% Auto, Education, 9.32% 13.86% Dec-20 128889 34986 27.14% RETAIL BREAK UP-DEC 20 Share o

  18. Slide 18: Agriculture Advance Performance

    AGRICULTURE ADVANCE PERFORMANCE Rs. in Crore Share of Agriculture on Domestic Advances 36000 27.45% 28.00% 25.93% 27.00% 34000 25.08% 26.00% 23.64% 32000 25.00% 23.63% 30000 24.00% 23.00% 28000 22.00% 31330 30084 30987 33071 35386 26000 21.00% Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 AGRI Advance % Share

  19. Slide 19: Agri Advances - Priority Sector

    AGRI ADVANCES – PRIORITY SECTOR Rs. in Crore Priority Sector Achievements 34000 20.44% 32577 20.50% 32000 31107 20.40% 30000 28688 27698 20.30% 28000 26000 20.20% 20.22% 24000 20.10% 2019-20 (Avg of 4 Qtrs) Dec-20 Target (18% of ANBC) Achievement Amount Achievement % Target Achievement Financial ANB

  20. Slide 20: MSME

    MSME Rs in Crores Share of MSME on Domestic Advances Domestic MSME Period % Share 40000 27.93% 30.00% Advance Advance 23.93% 23.99% 23.18% 24.31% 25.00% 30000 20.00% Dec-19 132551 31716 23.93% 20000 15.00% Mar-20 127336 30548 23.99% 10000 10.00% 31716 30548 28643 31014 35993 5.00% Jun-20 123542 2864

  21. Slide 21: Investments

    INVESTMENTS Rs. in Crore Global Investments 94960 86038 86684 82029 79887 Dec-19 Mar-20 Jun-20 Sept-20 Dec-20 Parameters Dec-19 Mar-20 Jun-20 Sept-20 Dec-20 Domestic Investments 76221 78358 82528 91497 83001 SLR 53792 51162 54485 63932 55562 Non SLR 22429 27196 28043 27565 27439 Held to Maturity 545

  22. Slide 22: NPA Management

    NPA MANAGEMENT Good people to grow with

  23. Slide 23: NPA Management

    NPA MANAGEMENT Rs. in Crore Details Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 9M 19-20 9M 20-21 i) Opening Gross NPAs 28674 23734 19913 18291 17660 33398 19913 a. Cash Recoveries 872 756 150 325 248 1908 723 b. Upgradation 298 227 45 87 157 1020 289 c. Write-Offs 5554 3994 1784 58 252 12413 2094 d. Sale to

  24. Slide 24: Segmental NPAs

    SEGMENTAL NPAS Rs. in Crore Dec-19 Sept-20 Dec-20 Segmental NPAs NPA Ratio % NPA Ratio % NPA Ratio % Retail 819 2.61% 748 2.19 707 2.02 Agri 2577 7.74% 2368 6.86 2029 5.74 MSME 3565 11.24% 2556 8.24 3477 9.66 Corporate 15738 43.47% 10637 38.09 8907 39.54 Overseas 1034 16.98% 1351 17.06 1633 19.03 To

  25. Slide 25: Movement of NPA

    MOVEMENT OF NPA GNPA NNPA 16.89 14.78 5.81 13.90 5.44 13.04 5.10 12.19 4.30 3.13 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 PCR 91.91 89.36 87.97 86.94 86.20 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Good people to grow with Page 25

  26. Slide 26: Capital Adequacy

    CAPITAL ADEQUACY Good people to grow with

  27. Slide 27: Capital Conservation

    CAPITAL CONSERVATION Rs. in Crore Particulars Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Market Risk RWA 12938 12316 14010 15467 12072 Operational Risk RWA 16642 16642 13217 13217 10477 Credit Risk RWA 86814 84680 84889 82831 83594 Total RWA (A) 116394 113638 112115 111515 106143 CET 1 9169 9329 9397 9325 9

  28. Slide 28: Movement of RWA & CRAR

    MOVEMENT OF RWA & CRAR CRAR 11.49% 10.93% 10.90% 10.72% 10.43% Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 CRAR Total RWA to Total Assets Ratio 84.32% 85.22% 82.56% 82.32% 77.21% Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Total RWA to Advance Ratio Good people to grow with Page 28

  29. Slide 29: External Rated Corporate Borrower Accounts

    EXTERNAL RATED CORPORATE BORROWER ACCOUNTS Rs. in Crore Dec-19 Mar-20 Dec-20 Investment Grade Exposure % Share Exposure % Share Exposure % Share AAA 5610 17.50% 2771 9.63% 1419 5.16% AA 4255 13.27% 6871 23.87% 5795 21.05% A 6079 18.96% 5421 18.83% 4911 17.84% Subtotal 15944 49.74% 15062 52.32% 12125

  30. Slide 30: COVID-19 Response

    COVID-19 RESPONSE Good people to grow with

  31. Slide 31: COVID-19 Response - Credit Off Take

    COVID-19 RESPONSE- CREDIT OFF TAKE Segment wise Credit Sanction and disbursment since 01.03.2020 to 31.12.2020 Sanction Disbursed Amount Amount Segment Account (in Cr) Account (in Cr) MSME 413833 9891 406477 6015 Retail 261998 9375 257439 6757 Agriculture 1980249 30105 1976025 22081 Corporate 143 86

  32. Slide 32: Financial Inclusion & Customer Service

    FINANCIAL INCLUSION & CUSTOMER SERVICE Good people to grow with

  33. Slide 33: Financial Inclusion

    FINANCIAL INCLUSION No of PMJDY accounts No. in Lakhs PMJDY account balance Rs in Cr 50.52 52.33 48.49 43.88 1624 42.61 1226 1117 757 818 Mar-17 Mar-18 Mar-19 Mar-20 Dec-20 Mar-17 Mar-18 Mar-19 Mar-20 Dec-20 PMJDY ZERO Balance accounts Jan Suraksha Schemes No. in Lakhs 2845145 2657039 3203607 11.56

  34. Slide 34: Customer Service

    CUSTOMER SERVICE PSB alliance DSB  Door Step Banking enabled in select 100 centres.  Non Financial Transactions started from 09.09.2020  Financial transactions i.e. Cash withdrawal started from 15.10.2020. Cash Deposit facility is under process.  Submission of Digital Life certificate through DS

  35. Slide 35: Digital Initiatives

    DIGITAL INITIATIVES Good people to grow with

  36. Slide 36: Digital Platforms

    DIGITAL PLATFORMS Good people to grow with Page 36

  37. Slide 37: Home and Mobile Banking

    HOME AND MOBILE BANKING New Mobile banking application with improved user experience Self-Registration of Mobile banking without visiting Branch Login in using Bio metric option for enhanced security and access mPassbook facility to view and download statements Term Deposit Opening , Renewal , Closu

  38. Slide 38: Home and Mobile Banking

    HOME AND MOBILE BANKING Internet Banking with improved user experience Fund Transfer (Intra Bank, Inter Bank (IMPS/NEFT) with scheduled transactions. Customers can do IP Restrictions , use digital signature for secure access. Term Deposit Opening , Renewal , Closure, etc. With 15G/15H submission opt

  39. Slide 39: ADC Channels

    ADC CHANNELS As on 31.12.2020 No of Users (In Rs Lakhs) Customer Mobile Banking Registered users 34.46 Touch Points Internet Banking Registered users 21.87 UPI Registered Users 37.29 ATMs/CDMs (No of outlet) 3129 Pass Book Kiosk (No of outlet) 2108 ADC CHANNELS Transcation 01.10.2020 to 31.12.2020 P

  40. Slide 40: Merchant Payment

    MERCHANT PAYMENT  QR is linked to the beneficiary account number. Customer can scan the QR code of account of any bank using UPI. After scanning for payment the customer a/c will be debited and the BHIM IOB UPI/QR merchant account will be credited. IOB Pay is an integrated payment system through

  41. Slide 41: 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 % Shareholding Name of Entity Investment 12.81% % 18.06% 6.00% In

  42. Slide 42: Customer Touch Points

    CUSTOMER TOUCH POINTS Domestic Presence Mar-20 Dec-20 Global Foot Prints Overseas Branches 3270 3219 Singapore Hong Kong Colombo Bangkok Branches JV Malaysia ATM 3032 3129 (Joint Venture with Bank of Baroda (40%) and Union Bank (est Subsidiary Andhra Bank) (25%) with IOB share of 35%) Remittance BC

  43. Slide 43: 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

  44. Slide 44: Thank You

    Thank You visit us @ https://www.iob.in Good people to grow with

Indian Overseas Bank — Q3 2020-21 Earnings Presentation on 6ix