Indian Bank · NSE:INDIANB
Indian Bank — Q1 FY2021 Earnings Presentation
56 slides from Indian Bank's earnings presentation, Aug 14, 2020
Slide 1: Exchange covering letter for results presentation
ts ap Indian Bank Corporate Office Investor Services Cell rurrwar ALLANADAD 254-260, Avvai Shanmugam Salai FAX : 28134075 Royapettah PHONE: 28134076 Chennai 600 014 E-mail : investors@indianbank.co.in Ref: ISC/184/2020-21 Date: 14.08.2020 The Vice President The Manager National Stock Exchange of Ind
Slide 2: Performance Analysis Q1 2020-21
|WO-MSE COVID EMERGENCY LOAN BANKING THAT’S #TWICEASGOOD , 4 Ferrers ALLAHABAD Indian Bank & Allahabad Bank are now one. \ 7 Pan-India Network | Enhanced Services | Pleasant Experience Performance Analysis Qi / 2020-21
Slide 3: Contents
Contents Amalgamation / Opening Balance sheet Performance Highlights Financials Amalgamation of Allahabad Bank into Business Snapshot Indian Bank came into effect on April 1, 2020. Accordingly, the combined financials Capital & Risk Management as on 30th June 19 and 31st March 20 have been arrived a
Slide 4: Amalgamated Entity as on 01.04.2020 - Business
Amalgamated Entity as on 01.04.2020 - Business ` Cr Parameter IB eAB Combined Business 466116 391153 857269 Deposits 260226 228324 488550 Current 13549 11209 24758 Savings 76609 98012 174621 CASA 90158 109221 199379 CASA % 34.6% 47.8% 40.8% Term Deposit 170068 119103 289171 Term Deposit % 65.4% 52.2
Slide 5: Amalgamated Entity as on 01.04.2020 – Customer Reach
Amalgamated Entity as on 01.04.2020 – Customer Reach Region wise Presence Indian Bank Allahabad Bank Customer Base Indian Bank Allahabad Bank Domestic 2887 3175 6062 Branches Northern Overseas 311 441 3 * 3 Branches North Eastern 49 92 ATMs & Central 3988 828 4816 226 1225 Eastern BNAs 289 1002 West
Slide 6: Amalgamated Entity as on 01.04.2020 – Asset Quality
Amalgamated Entity as on 01.04.2020 –Asset Quality ` Cr Net NPA Net NPA PCR AUC Gross NPA GNPA % Prov. for NPA Net NPA NNPA % PCR % (ex. AUC) % Balance IB 14151 6.87 7967 6184 3.13 73.05 56.30 8798 eAB 27847 17.11 19590 8257 5.77 80.53 70.35 14572 Combined 41998 11.39 27557 14441 4.23 77.91 65.61 23
Slide 7: Amalgamated Entity as on 01.04.2020 - Capital
Amalgamated Entity as on 01.04.2020 - Capital ` Cr Parameter IB eAB Combined CET I Additional Tier I Tier II % Capital 23532 14678 38393 14.12 13.27 12.01 Common Equity Tier I (CET 1) 19643 9787 29612 2.03 0.30 2.86 0.17 Additional Tier I 500 0 500 4.00 Tier II 3389 4892 8281 11.78 10.23 8.01 Total
Slide 8: Performance Highlights
Performance Highlights Performance Highlights 7/55
Slide 9: Performance Highlights – Q1 FY21 (YoY)
Performance Highlights – Q 1 FY 21 (YoY) Business Deposits Core Term Advances `8.6 lakh Cr `4.9 lakh Cr CASA 11% Deposits `3.7 lakh Cr 7% Savings Bank 12 % 14 % 8% 5% Operating Profit Net Profit ROA % ROE % ` 2753 Cr `369 Cr 0.25 5.49 23% Domestic NIM Gross NPA Net NPA Expense Ratio 2.83% CRAR (Base
Slide 10: Financials
Performance Highlights Financials 9/55
Slide 11: Financials – Operating Profit & Net Profit
Financials – Operating Profit & Net Profit ` Cr Quarter Ended Growth(%) Sl No Components 30.06.2019 31.03.2020 30.06.2020 Y-o-Y 1 Interest Income 9461 9757 10120 7 2 Interest Expenses 6145 6447 6246 2 3 Net Interest Income (1-2) 3316 3310 3874 17 4 Non Interest Income 1119 1728 1327 19 5 Operating I
Slide 12: Income
Income ` Cr Quarter Ended Sl No Components Y-o-Y (%) 30.06.2019 31.03.2020 30.06.2020 1 Interest Income on Advances and Discount on Bills 6730 6832 7149 6 2 Interest on investments 2576 2740 2775 8 3 Sundry interest income 155 185 196 27 4 Total Interest Income (1+2+3) 9461 9757 10120 7 5 Profit on
Slide 13: Fee Income
Fee Income ` Cr Quarter Ended Sl No Components Y-o-Y (%) 30.06.2019 31.03.2020 30.06.2020 1 Transaction fees 142 138 75 -47 2 Loan processing charges 65 158 113 75 3 Commission on Government business 14 20 10 -29 4 Commission on LC/BG 80 73 129 62 5 Cross selling 13 18 5 -63 6 Income from PFMS opera
Slide 14: Expenses
Expenses ` Cr Quarter Ended Growth (%) S No Components 30.06.2019 31.03.2020 30.06.2020 Y-o-Y 1 Interest on deposits 5820 6091 5869 1 2 Interest on borrowings 325 311 339 4 3 Sundry interest expenses 0 45 38 -- 4 Total Interest Expenses (1+2+3) 6145 6447 6246 2 5 Salary 958 968 1043 9 6 Contribution
Slide 15: Overhead details
Overhead details ` Cr Quarter Ended S No Components 30.06.2019 31.03.2020 30.06.2020 Y-o-Y (%) 1 Rent, Taxes & Lighting 169 218 119 -30 2 Depreciation 108 100 109 1 3 Insurance 124 132 166 34 4 Travelling and Halting 40 51 27 -33 5 Postage, Telecommunications etc. 27 51 26 -4 6 Repairs and Maintenan
Slide 16: Provisions & Net Profit
Provisions & Net Profit ` Cr Quarter Ended Growth (%) S No Components 30.06.2019 31.03.2020 30.06.2020 Y-o-Y 1 Operating Profit 2234 2402 2753 23 2 Total Provisions 1741 4043 2384 37 Of which Loan loss 1585 2071 * 1830 Depreciation on investments 203 61 -40 Standard advances -19 580 175 Income-tax -
Slide 17: Performance Ratios
Performance Ratios Quarter Ended % Annualised Parameters 30.06.2019 31.03.2020 30.06.2020 Cost of Deposits 5.27 5.11 4.83 Cost of Funds 5.26 5.13 4.89 Cost to Income Ratio 49.63 52.33 47.06 Yield on Advances 8.32 8.11 7.59 Yield on Investments 7.49 7.05 6.65 Return on Assets (RoA) 0.38 -1.17 0.25 Ne
Slide 18: Business Snapshot
Business Snapshot 17/55
Slide 19: Business Snapshot
Business Snapshot ` Cr Parameter 30.06.2019 31.03.2020 30.06.2020 YOY (%) Domestic Deposits Deposits 454533 488835 489109 8 Core Term Deposits PD/CD Domestic 447543 481401 481255 8 Overseas 6990 7434 7854 12 Savings Bank Current account Deposits breakup Current 22622 24581 24152 7 Savings 159932 174
Slide 20: Advances (Domestic) - Composition
Advances (Domestic) - Composition ` Cr Sector 30.06.2019 31.03.2020 30.06.2020 YoY (%) Gross Advances-Domestic 338667 360255 357869 6 Retail Retail 54588 61490 60529 11 17% Agriculture 66610 68959 68773 3 Corporates 47% Agriculture RAM 53% MSME 59050 60907 60590 3 19% Total (RAM) 180248 191356 18989
Slide 21: Sectoral Deployment – Domestic Advances
Sectoral Deployment – Domestic Advances ` Cr % share to % share to Sector 31.03.2020 Gross 30.06.2020 Gross Advances Advances Infrastructure 57067 16 58499 16 Of which Power 17336 5 16994 5 Telecom 1353 0 1342 0 Port 720 0 751 0 Roads 8685 2 8931 2 Other infrastructure 28973 8 30481 9 Basic Metal 12
Slide 22: Corporate Sector - Overview
Corporate Sector - Overview ` Cr % to Gross % to Gross % to Gross S No Composition 30.06.2019 31.03.2020 30.06.2020 Advances Advances Advances 1 NBFCs 37994 11 47066 13 44513 12 NBFC - PSUs 3158 1 2425 1 2575 1 NBFC - HFCs 14099 4 19908 6 18077 5 NBFC - MFIs 772 0 1527 0 1475 0 NBFC - Others 19965 6
Slide 23: Power Sector & Commercial Real Estate
Power Sector & Commercial Real Estate ` Cr Central State Private Details Fund Non Fund Of which Category Total Based O/s Based O/s NPA Government Government Sector Land & Building Developers Generation 38 5767 8597 14402 (Corporates) 2904 118 551 Distribution 0 4850 0 4850 Rent Encash/Rental 819 --
Slide 24: Standard Domestic Credit Exposure
Standard Domestic Credit Exposure ` Cr 31.03.2020 30.06.2020 External Rating Exposure % to Total Exposure % to Total AAA 36497 13% 28997 11% AA 54720 20% 54813 21% A 40905 15% 38023 15% BBB 32808 12% 36871 14% BB and below 47128 17% 32876 13% Unrated 21344 8% 24495 9% PSUs/ Government Guaranteed acc
Slide 25: Investments - Domestic
Investments - Domestic ` Cr Composition 30.06.2019 31.03.2020 30.06.2020 Y-o-Y (%) Central Government Securities 70846 86617 76137 7 State Government Securities 30945 38611 42191 36 Other Approved Securities 4 3 6 56 Debentures & Bonds 14342 12387 15345 7 Treasury Bills 5125 1433 4476 -13 Shares 222
Slide 26: Non SLR Investments
Non SLR Investments ` Cr % YoY Parameter Jun-19 Mar-20 Jun-20 Share Amount % PSU Bonds 1304 1489 1591 4 287 22 Corporate and Other Bonds 6142 4765 7629 19 1487 24 Special Govt.Sec.(Excluding Recap Bonds) 2681 2062 2062 5 -618 -23 CG Recap.Bond 13240 17927 17927 44 4687 35 Share of PSU/Corporate/Othe
Slide 27: TLTRO / Partial Credit Guarantee
TLTRO 1 / TLRTO 2 / Partial Credit Guarantee ` Cr 30.06.2020 Particulars A1+ AA AA- AAA Grand Total CORPORATE 370 332 24 175 901 TLTRO 1.0 Book value NBFC 24 503 527 Total 370 356 24 678 1428 NBFC A A+ AA AA- AA+ AAA Grand Total Below ` 500 Cr 25 25 TLTRO 2.0 Book value ` 500- ` 5000 Cr 50 120 100 5
Slide 28: Capital and Risk Management
Capital and Risk Management 27/55
Slide 29: Capital Adequacy – Risk Management
Capital Adequacy – Risk Management ` Cr Parameters 01.04.2020 30.06.2020 CET I AT I Tier II Capital 38394 40168 Common Equity Tier I (CET 1) 29613 30769 13.45 13.27 Additional Tier I 500 500 Tier II 2.86 2.98 8281 8899 0.17 0.17 Total Risk Weighted Assets 289345 298612 CRAR % 13.27 13.45 10.23 10.30
Slide 30: Shareholding Pattern & Balance Sheet
Shareholding Pattern & Balance Sheet Pattern of Equity Shareholding Shareholder % Government of India 88.06 Mutual Funds 2.10 FIs / FPIs / FIIs 2.94 Residents / Employees / NRIs 6.16 QIBs / Others 0.74 Of which Corporate Bodies 0.55 Clearing Members 0.17 QIBs / Trusts 0.02 ` Cr Liabilities 30.06.201
Slide 31: Asset Quality
Asset Quality 30/55
Slide 32: Asset Quality – Movement of NPA
Asset Quality – Movement of NPA Quarter Ended ` Cr S No Details 30.06.2019 31.03.2020 30.06.2020 1 Gross NPA opening balance 42058 46012 41998 ADDITIONS : Fresh Slippages 3973 3841 523 To old NPAs / Others 66 101 83 Sectorwise Fresh Slippages 2 Sub-Total 4039 3941 606 LESS: Cash Recovery 843 1296 20
Slide 33: SMA - Sectorwise
SMA - Sectorwise ` Cr SMA 2 S No Parameter Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 1 Agriculture 3518 3161 884 983 173 2 MSME 2165 2864 2822 3605 1161 3 Retail 1648 1926 2217 2185 984 Of which Home Loan 1068 1159 1436 1382 621 Vehicle Loan 104 117 169 163 76 Educational Loan 198 251 232 224 95 Other Reta
Slide 34: NPA Position – Sector wise
NPA Position – Sector wise ` Cr 30.06.2019 31.03.2020 30.06.2020 Sector % to % to % to Sectorwise Gross NPA to total GNPA % Gross Gross Gross respective respective Outstanding respective NPA NPA NPA portfolio portfolio portfolio Retail Agriculture MSME Corp/Others/overseas Retail Credit 2260 4.20 24
Slide 35: NPA Position – Industry wise
NPA Position – Industry wise ` Cr 30.06.2019 31.03.2020 30.06.2020 % to % to % to Industry Gross NPA respective Gross NPA respective Gross NPA respective portfolio portfolio portfolio Metal and Metal Products (Incl. Iron & Steel) 6167 42.88 4070 32.34 4112 36.00 Petroleum & Other Minerals 854 43.03
Slide 36: Moratorium
Moratorium ` Cr Term Loan Moratorium as on 30.06.2020 Retail Agriculture 8% 5% MSME 4% Corporate Availed 23% 6% Not Availed 77% Moratorium availed as on 31.07.2020 Availed Availed 7% 0% 20% Not Not availed availed 93% 80% Availed Not availed Availed Not availed 35/55 With 1 Month instalment / intere
Slide 37: Status of NCLT accounts
Status of NCLT accounts 30.06.2020 ` Cr Category No.of Accounts Exposure Provision PCR% RBI List I 8 4277 4246 99% RBI List II 16 4051 3993 99% Accounts filed by Bank 34 2288 2185 95% Accounts filed by other Banks 184 17182 14821 86% Total 242 27798 25245 91% Exposure (` in Cr) PCR % 27798 99% 99% 1
Slide 38: Covid -19 Response
Covid -19 Response 37/55
Slide 39: COVID 19 : Sector-Specific loan products
COVID 19 : Sector-Specific loan products Target Group Ind Emergency Loans Corporates / Medium Enterprises IND COVID Emergency credit Line MSMEs IND MSE COVID Emergency Loan Self Help Groups SHG COVID Sahaya Loan Salaried class IND COVID Emergency Salary Loan Pensioners IND COVID Emergency Pension Lo
Slide 40: COVID 19 : Response
COVID 19 : Response Operations Customers • Cash disbursed through Mobile ATMs & Business Correspondents • Tailor made sector-specific loan products • 92% of ATMs & 90% of Branches operational introduced • Government subsidy distributed to women • Emergency Credit Line Guarantee Scheme beneficiaries
Slide 41: Financial Inclusion/Government Schemes
Financial Inclusion/Government Schemes 40/55
Slide 42: Financial Inclusion – Performance
Financial Inclusion – Performance FI Parameters 30.06.2020 BCs engaged (Nos.) 9047 BSBD Accounts ( No. in lakhs) 247.90 PMJDY Accounts under BSBDA (No.in lakhs) 168.14 Balance in PMJDY accounts (₹ in Cr) 5965 Rupay Cards issued (No. in lakhs) 99.15 Financial Transactions By BCs per month ( No. in la
Slide 43: Regional Rural Banks (RRBs)
Regional Rural Banks (RRBs) ‘Tamil Nadu Grama Bank’ commenced operations on 1st April 2019 after a successful amalgamation of Pandyan Grama Bank of Indian Overseas Bank with Bank’s Pallavan Grama Bank. ` Cr Parameters TNGB SGB PBGB No. of branches 632 223 44 As on June 20 Business 25498 13558 1487 O
Slide 44: Digital Banking
Digital Banking 43/55
Slide 45: Digital Initiatives
Digital Initiatives POS-Reduced Rental & One-time Cost Model • Introduced One-time cost model and rental reduced for market expansion Internet Banking • Beneficiary coolingDigital period of Banking 24 hours for activation of new beneficiary. • Anti-Bot captcha as additional layer of security. • Depo
Slide 46: Digital Initiatives
Digital Initiatives COVID Relief • Disbursed COVID Relief of `590 Crore to 62 lakhs beneficiaries. • On-line portal for applying COVID loan. Digital Banking Other Digital Initiatives •Web portal for Doorstep Banking. •PMJJBY and PMSBY web service for Business Correspondents. •On-line OTS for the Com
Slide 47: Migration to Digital Channels
Migration to Digital Channels Branch Transaction Digital ATM & BNA 20% 30% 13% Q1 FY 20 Q1 FY 21 67% 7% 63% Transactions at Branch/ATM 10% Transactions through Digital Channels 46/55
Slide 48: Digital Footprint – Net Banking & Mobile Banking
Digital Footprint – Net Banking & Mobile Banking Internet Banking In lakhs Mobile Banking YoY 21% YoY 47% 46.42 41.88 38.45 No. of 28.5 users Q1 FY 20 Q1 FY 21 Q1 FY 20 Q1 FY 21 91.15 YoY 75% 1211.72 64.12 693.14 No. of Transactions Q1 FY 20 Q1 FY 21 Q1 FY 20 Q1 FY 21 47/55
Slide 49: Way Forward
Way Forward 48/55
Slide 50: Amalgamation – Synergy Benefits
Amalgamation – Synergy Benefits Increased ATM/ Wider Clientele base Branch Network Higher CASA mix leading to Rural presence & BCs better product pricing & complement for expanding lower cost of deposits business Larger Talent pool - Human Resources IT harmonisation Redeployment Leveraging of Proces
Slide 51: Amalgamation – Process on Track
Amalgamation – Process on Track Day 1 Major Operations Treasury operations integrated and consolidated reporting is in place. Harmonised Products with harmonised service charges and interest rates - available to customers of amalgamated entity Customer Transactions A Common Gateway Software (Co-Ex)
Slide 52: Focus areas
Focus areas Real Estate – 21 properties identified for monetization in first phase. Expected realisable value `450 Cr Subsidiaries & Joint Ventures Universal Sompo General Insurance Co Ltd – Cross selling IndBank Merchant Banking Services Ltd – Leveraging operations IndBank Housing Ltd – Revamping o
Slide 53: USGI - Synopsis & Shareholding pattern
USGI - Synopsis & Shareholding pattern Incorporated and Licensed in 2007 Went fully operational in April, 2009 A Company of 12 years vintage now 28.52% USGI Co. Ltd was set up as a Multi-line non-life insurance Public-Private-Sector company with a consortium of Joint Venture credible public and priv
Slide 54: Strategies
Strategies Focus Areas Business - Grow both in Corporate and Retail portfolio Consolidation - Fast tracking of Amalgamation Earnings and Profitability - Every branch to be profit making - Focus on Cross Selling income Cost Optimisation - IT spend, Lease Rents - Rationalisation benefits- Administrati
Slide 55: 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. Certain forward-looking statements in these slides involve a number of risks, u
Slide 56: Thank you
Thank you