Idbi Bank Limited · NSE:IDBI
Idbi Bank — Investor Presentation (June 2015)
37 slides from Idbi Bank's investor presentation, June 2015
Slide 1: IDBI Bank Investor Presentation
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Slide 2: Disclaimer
This document has been prepared by IDBI Bank Limited (―Company‖/ ―Issuer‖). The information contained in this document has not been independently verified and no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on the information or opinions contained
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 | IDBI BANK. 4
Slide 5: India Macroeconomic Overview: Demographic Tailwinds
India Macroeconomic Overview Strong Demographic Tailwinds Supporting Indian Growth Story Large and growing population base1 Rising affluence1 Strong habit of savings1 2008 – 2013 2013 GDP Gross Domestic Savings / GDP (2013) per Capita Population 0.5% 1.5% 0.2% 1.3% -0.1% 0.2% 0.9% 1.3% 0.8% 1.3% 0.5
Slide 6: India Macroeconomic Overview: Debt Profile, FDI, Reserves
India Macroeconomic Overview Improving Debt Profile, Strong FDI Inflows And Healthy Foreign Exchange Reserves Tapering fiscal deficit and improving Foreign exchange reserves remain at FDI has posted healthy growth for over a debt profile1,2 robust levels3 decade3 61.4% 58.9% 58.6% 56.3% Foreign exch
Slide 7: India Banking Sector Overview
India Banking Sector Overview Indian Banking Sector has Remained Relatively Resilient in the Current Global Macroeconomic Environment Steady Bank Credit Growth (Y-o-Y)1,2 Driven by Growth in Deposits (Y-o-Y)2,3 28.1% 23.8% 22.4% 22.3% 21.5% 19.9% 17.5% 17.2% 15.9% 16.9% 17.0% 13.5% 14.2% 14.1% 13.9%
Slide 8: India Banking Sector Overview: Structural drivers
India Banking Sector Overview Structural drivers in place …Has Led to Lower Financial Low Domestic Credit1 …& Under-penetration1 … Participation2 Domestic Credit % of GDP (2013) Branches Per 100K Population (2013) % of age 15+ with account at a formal 367% financial institution (2014) 93.6% 96.4% 93
Slide 9: IDBI Bank—Overview & History
IDBI Bank—Overview & History | IDBI BANK. 9
Slide 10: 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 11: 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 12: IDBI history timeline
1964 – 1993 1994 – 2002 2003 –2006 2007 – 2014 1964 – IDBI Bank‘s 1994 – IDBI Act amended 2003 – IDBI Repeal Act Complete networking predecessor entity – to permit private ownership passed for conversion into (100.0% Core Banking) IDBI, the DFI - set up by an up to 49.0% a banking company
Slide 13: Developmental Financial Institution and institution builder
Played a role in providing project finance over four decades—India‘s No.1 Developmental Financial Institution (DFI) Policy bank for the Government of India in the area of industrial and infrastructure development Institution builder Two of the existing DFIs - EXIM Bank and SIDBI - were carve
Slide 14: Subsidiaries and group structure
IDBI Capital IDBI Intech Ltd. IDBI Asset IDBI MF Trustee IDBI Trusteeship IDBI Federal Life Market Services (IIL) Management Ltd. Company Ltd. Services Ltd. Insurance Ltd. (ICMS) (IAML) (IMTCL) (ITSL) Company Ltd. (IDBI Federal) Engaged in Engaged in Engaged in In association Information Trustee of
Slide 15: Advances Mix, Summary Financials, Deposits Mix
Advances Mix Summary Financials [Rs. Billion] FY15 694 (Rs. Billion) 33% 887 43% Advances 2,084 Deposits 2,598 503 Borrowings 618 24% Total Assets 3,560 Corporate Banking Infrastructure Lending Retail Banking Group Net Profit 8.7 Deposits Mix Net Interest Margin 1.9% [Rs. Billion] 304 Cost to Net In
Slide 16: IDBI Bank—Key Investment Highlights
IDBI Bank—Key Investment Highlights }@ IDBI BANK 16
Slide 17: Key investment highlights
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 18: Top Tier Bank in India, Focus 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 Comfortable Strong Capital Ratios Growth in in Excess of Overall Regulatory Business Requirements Strong fee Risk Pan India income from Manag
Slide 19: Shareholding as on March 31, 2015
Shareholding as on March 31 , 2015 Majority Government ownership Government of India holding currently at 76.5% 1.2% 8.1% Minimum Government shareholding at 51.0% 3.3% [Memorandum and Articles of Association] 10.8% Demonstrated Government support Govt stake increased from 65.14% in July 20
Slide 20: Reach and Customer Base
Reach 1,716 branches & 3,000 ATMs Pan India Presence in 1,260 locations Network of 75 Retail Asset Centres 29 Credit Processing Centres 6 Regional Processing Units 10 Currency chests across the country 11 e-lounges Internet and Mobile banking 9 Regional and 1 central training c
Slide 21: Growth in Branch and ATM Network
Growth in Branch and ATM Network Distribution of Branch Network* [No.] 2301 3000 1702 1717 1542 1372 1388 367 373 1201 1077 973 914 816 779 452 708 537 499 524 Metro Urban Semi-Urban Rural FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Branch ATM * Plus 1 Overseas Branch (DIFC, Dubai) Branch network includ
Slide 22: 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 Indian Borrower Loans: Mandated Lead Arranger – 20152 Volume Pioneer in Infrastructure financing No. Underwriter Issues Share [%] [INR Mn.] Foremost in financing PPP
Slide 23: Cost-to-Income Ratio, Business and Profit per Employee
Sustainable Cost-to-Income Ratio [%] 49.3% 41.3% 40.2% 39.2% 36.5% 36.9% 35.2% FY09 FY10 FY11 FY12 FY13 FY14 FY15 [9M FY15: as on December 31, 2014] Business per Employee Profit per Employee [Rs. Million] [Rs. Million] 1.32 256 247 262 1.19 1.22 242 235 238 203 0.84 0.84 0.68 0.53 FY09 FY10 FY11 FY1
Slide 24: Corporate Governance and Risk Management
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 25: Asset Quality and Restructured Assets
Asset Quality Restructured Assets [%] [Rs. Billion] 33.9 74.9 74.7 68.3 70.8 64.5 66.6 5.9% 209 4.9% 155 136 3.2% 107 4.9% 2.9% 93 100 2.5% 1.8% 1.38% 1.53% 3.2% 1.6% 0.9% 1.0% 1.1% 31 March March March March March March March March March March March March March March 31, 2009 31, 2010 31, 2011 31,
Slide 26: Capital Ratios and Ongoing Support from GoI
Capital Ratios Ongoing support from GoI [% as per Basel II] 14.6% 13.6% 13.2% 11.8%* FY 2013-14 - Increased stake to 76.5% through infusion of 11.6% 11.7%* 11.3% fresh equity to the extent of Rs 18 billion 6.2% 5.6% 5.5% 3.6% 3.9% 4.8% FY 2012-13 - Increased stake to 71.72% through infusion of 5
Slide 27: IDBI Bank—Key Financial Highlights
IDBI Bank—Key Financial Highlights | IDBI BANK. 27
Slide 28: Growth in Advances, Investments, Deposits and Total Business
Growth in Advances… …With Rising Levels of Investments [Rs. Billion] [Rs. Billion] 2,084 1,210 1,963 1,977 1,806 988 1,038 1,571 832 1,382 733 683 1,034 500 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY09 FY10 FY11 FY12 FY13 FY14 FY15 …And Increasing Deposits ..Resulting in Growth of Total Business2 [Rs. Bi
Slide 29: Increasing CASA and Growth in Number of Accounts
Increasing CASA Growth in Number of Accounts [%] [In ‗000] CASA per Branch at over Rs. 350 million No of Accounts registered growth of 29.3% in FY15 over FY14 13,966 25.1% 25.1% 24.1% 22.6% IDBI to provide 20.9% latest number as 10,804 on Dec 31, 2013 9,136 8,070 10.5% 9.0% 14.6% 13.4% 7.7% 12.0% 5,
Slide 30: Total Income, Net Interest Income, Net Profit, NIM
Growth in Total Income Growth in Net Interest Income [Rs. Billion] 296 322 [Rs. Billion] 60 283 57 54 255 45 207 43 176 130 23 12 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY09 FY10 FY11 FY12 FY13 FY14 FY15 …And Net Profits Resulting in Profitability (Net Interest Margin) [Rs. Billion] [%] 2.1% 2.2% 20 2.1
Slide 31: Cost-to-Income, ROA, Staff Expenses, ROE
Cost-to-Income Ratio Return on Assets [%] [%] 49.3% 40.2% 39.2% 41.3% 0.8% 35.2% 36.5% 36.9% 0.7% 0.7% 0.6% 0.5% 0.4% 0.3% FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Staff Expenses to Total Expenses Return on Equity [%] [%] 14.9% 15.1% 13.1% 7.4% 12.1% 6.9% 6.3% 10.4% 6.4%
Slide 32: Trend in Fee Income
Trend in Fee Income As Proportion to Operating Expenses [Rs. Billion] [%] 25 78.4% 78.6% 78.1% 22 22 18 17 67.3% 65.8% 66.4% 14 55.3% 9 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY09 FY 10 FY 11 FY 12 FY 13 FY 14 FY15 1. CAGR=Cumulative Average Growth Rate-FY09-FY15. 32
Slide 33: Key Financials and Key Ratios
Key Financials [Rs. Billion] FY09 FY10 FY11 FY12 FY13 FY14 FY15 CAGR Advances 1,034 1,382 1,571 1,806 1,963 1,977 2,084 12.4% Deposits 1,124 1,677 1,805 2,105 2,271 2,358 2,598 15.0% Total Business 2,158 3,059 3,376 3,917 4,234 4,335 4,682 13.8% Borrowings 444 477 516 535 658 601 618 5.7% Total Asse
Slide 34: Awards and brand rankings
IDBI Bank has garnered several awards and accolades from various quarters in the recent past, of which few are listed below: Ranked at 37th position among the Top 50 brands in the country across sectors as per recent Interbrand rankings Ranked at 39th position among the Top 50 Most Valuable In
Slide 35: The Way Forward
The Way Forward | IDBI BANK. 35
Slide 36: 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 37: Thank you
Thank you I) IDBI sani Bank Aisa Dost Ja i isa