Indian Bank · NSE:INDIANB

Indian Bank — Q3 FY2021 Earnings Presentation

53 slides from Indian Bank's earnings presentation, Jan 22, 2021

  1. Slide 1: Covering letter to stock exchanges

    ql-Eft Th-Tzt-FzT iiptt Indian Bank 254-260, 31" isfuT7 flq tsti,4qt -600 014 , 411 e ALLAHASAD Corporate Office cirq &L.T 254-260, Avvai Shanmugam Salai, INVESTOR SERVICES CELL Royapettah, Chennai - 600 014 t4Tillz/website: www.indianbank.in eo--rm/Phone: 044-28134076/28134698/28134484 : ibinvestor

  2. Slide 2: Performance Analysis Q3 / NME FY 21

    Performance Analysis Q3 / NME FY 21

  3. Slide 3: Contents

    Contents Performance Highlights Financials Business Snapshot Amalgamation of Allahabad Bank into Indian Bank came into effect on April 1, 2020. Accordingly, the Capital & Risk Management combined financials as on 31st December 2019 and 31st March 2020 have been arrived at by aggregation of audited n

  4. Slide 4: Performance Highlights

    Performance Highlights 3/52

  5. Slide 5: Performance Highlights Q3 FY 21 (YoY)

    Performance Highlights Q3 FY 21 (YoY) Business Deposits CASA at 41% `9.1 lakh Cr `5.2 lakh Cr 86 bps Term Deposits 8% 8% Savings Bank 9% 7% Advances RAM `3.9 lakh Cr Gross NPA Net NPA PCR `2 lakh Cr 7% 9.04% 365 bps 2.35% 187 bps 86.51% 808 bps 12% Operating Profit Net Profit ROA % ROE % Domestic NI

  6. Slide 6: Financials

    fear QB} indian Bank Financials

  7. Slide 7: Financials – Operating Profit and Net Profit

    Financials – Operating Profit and Net Profit ` in Cr Year Ended Quarter Ended Nine Months Ended Sl No Components 31.03.2020 31.12.2019 30.09.2020 31.12.2020 Q-o-Q (%) Y-o-Y (%) 31.12.2019 31.12.2020 Y-o-Y (%) 1 Interest Income 38330 9693 10057 10025 0 3 28573 30202 6 2 Interest Expenses 25273 6400 5

  8. Slide 8: Income

    Income ` in Cr Year Ended Quarter Ended Nine Months Ended Sl No Components 31.03.2020 31.12.2019 30.09.2020 31.12.2020 Q-o-Q (% ) Y-o-Y (% ) 31.12.2019 31.12.2020 Y-o-Y (% ) 1 Interest Income on Advances and Discount on Bills 27184 6876 7148 7133 0 4 20352 21430 5 2 Interest on investments 10434 259

  9. Slide 9: Fee Income

    Fee Income ` in Cr Year Ended Quarter Ended Nine Months Ended Sl No Components 31.03.2020 31.12.2019 30.09.2020 31.12.2020 Q-o-Q (%) Y-o-Y (%) 31.12.2019 31.12.2020 Y-o-Y (%) 1 Transaction fees 568 148 221 202 -9 36 438 498 14 2 Loan processing charges 404 99 122 135 11 36 246 370 50 3 Commission on

  10. Slide 10: Expenses

    Expenses ` in Cr Year Ended Quarter Ended Nine Months Ended Sl No Components 31.03.2020 31.12.2019 30.09.2020 31.12.2020 Q-o-Q (%) Y-o-Y (%) 31.12.2019 31.12.2020 Y-o-Y (%) 1 Interest on deposits 24001 6105 5583 5479 -2 -10 17910 16931 -5 2 Interest on borrowings 1272 295 294 188 -36 -36 916 821 -10

  11. Slide 11: Overhead Expenses

    Overhead Expenses ` in Cr Year Ended Quarter Ended Nine Months Ended Sl No Components 31.03.2020 31.12.2019 30.09.2020 31.12.2020 Q-o-Q (%) Y-o-Y (%) 31.12.2019 31.12.2020 Y-o-Y (%) 1 Rent, Taxes & Lighting 786 204 165 170 3 -17 567 454 -20 2 Depreciation 444 117 178 137 -23 17 344 424 23 3 Insuranc

  12. Slide 12: Provisions & Net Profit

    Provisions & Net Profit ` in Cr Year Ended Quarter Ended Nine Months Ended Sl No Components 31.03.2020 31.12.2019 30.09.2020 31.12.2020 Q-o-Q (%) Y-o-Y (%) 31.12.2019 31.12.2020 Y-o-Y (%) 1 Operating Profit 9587 2816 2995 3099 3 10 7185 8847 23 2 Total Provisions 14230 4555 2583 2585 0 -43 10186 755

  13. Slide 13: Performance Ratios

    Performance Ratios % annualised Year Ended Quarter Ended Nine Months Ended Parameters 31.03.2020 31.12.2019 30.09.2020 31.12.2020 31.12.2019 31.12.2020 Cost of Deposits 5.20 5.22 4.57 4.34 5.25 4.58 Cost of Funds 5.19 5.21 4.58 4.35 5.27 4.58 Cost to Income Ratio 49.08 43.29 47.97 45.73 47.89 46.92

  14. Slide 14: Business Snapshot

    fear QB} indian Bank Business Snapshot

  15. Slide 15: Business Snapshot

    Business Snapshot ` in Cr DOMESTIC DEPOSITS Sl No Parameter 31.12.2019 31.03.2020 30.09.2020 31.12.2020 Q-o-Q (%) Y-o-Y (%) Core Term Deposits PD/CD Savings Bank Current account 1 Deposits 481277 488835 501956 521248 4 8 Domestic 474019 481401 493903 512695 4 8 Overseas 7258 7434 8053 8553 6 18 2879

  16. Slide 16: Advances (Domestic)

    Advances (Domestic) ` in Cr Sector 31.12.2019 31.03.2020 30.09.2020 31.12.2020 YoY (% ) Corporate & Gross Advances-Domestic 354241 360255 356627 379074 7 MSME others 18% Retail 58841 61490 59769 66679 13 Corporate Retail Agriculture 67605 68959 71345 75040 11 & others Agriculture 44% Agriculture MSM

  17. Slide 17: Performance under Priority Sector - 31.12.2020

    Performance under Priority Sector - 31.12.2020 ` in Cr Segment Mandatory Target Achievement (Amt) Achievement (%) Priority Sector 40% *134015 42.35% Agriculture 18% *62504 19.75% SF/MF 8% 29008 9.16% Weaker Section 10.00% 38718 12.23% Micro under MSME 7.50% 28521 9.01% Non Corporate farmers 12.14% 5

  18. Slide 18: Sectoral Deployment – Domestic Advances

    Sectoral Deployment – Domestic Advances % share % share % share ` in Cr Sector 31.03.2020 to Gross 30.09.2020 to Gross 31.12.2020 to Gross Advances Advances Advances Infrastructure 57067 16 61701 17 58250 15 Of which Power 17336 5 19799 6 18753 5 Telecom 1353 0 1356 0 617 0 Port and Roads 9405 3 976

  19. Slide 19: Standard NBFC Advances

    Standard NBFC Advances ` in Cr Composition 31.12.2019 % 31.03.2020 % 30.09.2020 % 31.12.2020 % NBFC - PSUs 3154 8% 2425 5% 4553 11% 4762 10% NBFC - HFCs 15951 39% 18438 41% 14507 34% 16987 37% NBFC - MFIs 1281 3% 1515 3% 1437 3% 1542 3% NBFC - Others 21020 50% 22774 51% 21560 52% 22326 50% Total NBF

  20. Slide 20: Power Sector & Commercial Real Estate – 31.12.20

    Power Sector & Commercial Real Estate – 31.12.20 ` in Cr Central State Private Power Sector Category Total Government Government Sector Generation 35 6061 6965 13061 Distribution 6519 6519 Transmission 1632 1632 Investment 92 1495 611 2198 Total Exposure 127 15707 7576 23410 Of which NPA 2406 Outsta

  21. Slide 21: Standard Domestic Credit Exposure

    Standard Domestic Credit Exposure ` in Cr 30.09.2020 31.12.2020 External Rating Exposure % to Total Exposure % to Total Rated exposure AAA 27558 12% 32924 15% - More than `10 Cr AA 56888 27% 56113 25% - For CRE more than `5 Cr A 42752 20% 44399 20% BBB 41948 20% 46787 21% BB and below 43622 21% 4359

  22. Slide 22: Investments - Domestic

    Investments - Domestic ` in Cr AFS Book Details 31.12.2019 31.03.2020 30.09.2020 31.12.2020 Y-o-Y (%) 78078 86617 86841 85013 9 Dec-19 Central Government Securities State Government Securities 35417 38611 42608 42825 21 9% Treasury Bills 5829 1433 11934 10944 88 14% Other Approved Securities 3 3 5 5

  23. Slide 23: Non SLR Investments

    Non SLR Investments ` in Cr % YoY Details Dec-19 Mar-20 Sep-20 Dec-20 Share Amount % PSU Bonds 1251 1489 1591 1566 4 315 25 Corporate and Other Bonds 3625 4765 9168 9332 24 5707 157 Special Govt.Sec.(Excluding Recap Bonds) 2465 2063 2015 1964 5 -501 -20 CG Recap.Bond 15774 17927 17927 17927 45 2153

  24. Slide 24: TLTRO 1 / TLTRO 2 / Partial Credit Guarantee

    TLTRO 1 / TLTRO 2 / Partial Credit Guarantee ` in Cr Particulars AAA A1+ AA Total Corporate 175 400 360 935 HFC 100 0 0 100 NBFC 400 0 25 425 Total 675 400 385 1460 NBFC AAA A1+ AA A BBB Total Below ` 500 Cr 0 110 25 85 80 300 ` 500 Cr - `5000 Cr 55 0 295 150 0 500 Above ` 5000 Cr 375 0 625 0 0 1000

  25. Slide 25: Capital & Risk Management

    Capital & Risk Management 24/52

  26. Slide 26: Capital Adequacy – Risk Management

    Capital Adequacy – Risk Management ` in Cr Parameters 01.04.2020 30.09.2020 31.12.2020 Common Equity Tier I (CET 1) Additional Tier I Tier II Capital 38394 40096 42474 Common Equity Tier I (CET 1) 29613 31088 31258 Additional Tier I 500 500 2500 2.89% 2.89% 2.86% Tier II 8281 8508 8716 0.17% 0.83% T

  27. Slide 27: Shareholding Pattern & Balance Sheet

    Shareholding Pattern & Balance Sheet ` in Cr Pattern of Equity Shareholding Shareholder % Promoters 88.06 Public 11.94 Total 100 Liabilities 31.12.2019 31.03.2020 30.09.2020 31.12.2020 Assets 31.12.2019 31.03.2020 30.09.2020 31.12.2020 Capital 4331 5136 1129 1129 Cash & Balance with RBI 21759 13102

  28. Slide 28: Asset Quality

    fear QB} indian Bank Asset Quality |

  29. Slide 29: Movement of NPA

    Movement of NPA ` in Cr S Year Ended Quarter Ended Nine Months Ended Category Q3 FY 20 Q4 FY 20 Q2 FY 21 Q3 FY 21 Details No 31.03.2020 31.12.2019 31.03.2020 30.09.2020 31.12.2020 31.12.2019 31.12.2020 Retail 448 285 3 7 1 Gross NPA opening balance 42058 45448 46012 39965 36198 42058 41998 ADDITIONS

  30. Slide 30: NPA Position – Sector wise

    NPA Position – Sector wise ` in Cr 31.12.2019 31.03.2020 30.09.2020 31.12.2020 S % to % to % to % to Sector Gross Gross Gross Gross No respective respective respective Outstanding respective NPA NPA NPA NPA portfolio portfolio portfolio portfolio 1 Retail Credit 2514 4.27 2455 4.00 2317 3.87 66679 2

  31. Slide 31: NPA Position – Industry wise

    NPA Position – Industry wise ` in Cr 31.12.2019 31.03.2020 30.09.2020 31.12.2020 % to % to % to % to S No Industry Gross Gross Gross Gross respective respective respective respective NPA NPA NPA NPA portfolio portfolio portfolio portfolio Metal and Metal Products (Incl. 5390 38.98 4070 32.34 4381 38

  32. Slide 32: Status of NCLT accounts

    Status of NCLT accounts ` in Cr 31.12.20 Category No.of Accounts Exposure Provision PCR% RBI List I 8 4277 4277 100% RBI List II 11 3774 3774 100% Accounts filed by Bank 26 1962 1862 95% Accounts filed by other Banks 150 14126 13804 98% Total 195 24139 23717 98% PCR % Exposure % 100% 100% RBI List I

  33. Slide 33: SMA Sector wise // Collection

    SMA Sector wise // Collection ` in Cr S SMA 2 Parameter No Dec-19 Mar-20 Sep-20 Dec-20 1 Agriculture 901 983 745 1985 Collection from August 20 2 MSME 2765 3605 599 1100 3 Retail 2122 2185 185 1271 Collection efficiency Of which 100% Home Loan 1363 1382 106 758 Vehicle Loan 157 163 14 93 95% Educati

  34. Slide 34: Sector-wise Restructuring and FITL under COVID moratorium

    Sector-wise Restructuring and FITL under COVID moratorium ` in Cr Sector-wise Covid Restructuring as on 31.12.2020 RP INVOKED RP IMPLEMENTED % to STD adv as respective % to STD STD adv as % to respective % to STD Sector Amt Amt on 31.12.20 sector STD adv on 31.12.20 sector STD adv advances adv RETAI

  35. Slide 35: Financial Inclusion / Government Schemes

    Financial Inclusion / Government Schemes 34/52

  36. Slide 36: Financial Inclusion - Performance

    Financial Inclusion - Performance FI Parameters 31.12.2020 BCs engaged (Nos.) 9095 BSBD Accounts (No. in lakhs) 257.45 PMJDY Accounts under BSBDA (No. in lakhs) 177.06 Balance in PMJDY accounts (` in Cr) 6126.51 Rupay Cards issued (No. in lakhs) 105.66 Financial Transactions by BCs per month (No.in

  37. Slide 37: COVID - Response

    COVID 19 - Response As on 31.12.20 Emergency Credit Line Scheme No. of loans sanctioned 2.88 lakhs (95% of eligible accounts) Amount sanctioned `5894 Cr (98% of eligible amount) Amount disbursed `5203 Cr (86% of eligible amount) Partial Credit Guarantee Scheme Sanctions accorded for acquiring MSME p

  38. Slide 38: Digital Banking

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  39. Slide 39: Digital Initiatives

    Digital Initiatives Internet banking enriched with • RTGS 24*7 through Internet Banking • Implementation of Positive Pay System Mobile Banking • Additional feature in IndOASIS – Subscription to Mutual Funds (Fisdom), Insurance, e-NPS New Value added Services on POS terminals • NFC/NCMC acceptance en

  40. Slide 40: Digital Initiatives

    Digital Initiatives ATM • Implementation of Terminal Security Solution in ATMs & Cash Recyclers FasTag • Offline FasTag issuance/ recharges through branch module Credit Card • EFRMS - Fraud detection tool by FIS service provider via NRT approach 39/52

  41. Slide 41: Migration to Digital Channels

    Migration to Digital Channels 47% Q2 FY 21 Q3 FY 21 36% 40% 34% 24% 19% Branch Transaction ATM & BNA Digital Transaction Transaction at Branch 11% Transaction through ATM/Digital channels 11% 40/52

  42. Slide 42: Business Network

    Business Network Region wise Domestic Branches ATMs & BNAs 6003 5428 Northern Business Overseas 743 Correspondents Branches 9095 3 North Eastern Central 141 Network Western Eastern 1449 432 1289 Urban Semi 1257 Urban 1586 Metro 1223 Southern Rural 1949 1937 Overseas, 3 41/52

  43. Slide 43: Amalgamation

    fear QB} indian Bank Amalgamation

  44. Slide 44: Amalgamation – Process on Track

    Amalgamation – Process on Track Integration of Operations/ IT Smooth Customer Inter face Reorganisation /Centralisation Rationalisation of offices • Treasury operations • Common Gateway • Retail and MSME processing • 25 Zones rationalised. Integrated Software (Co-Ex) – centres rolled out in all 78 •

  45. Slide 45: Amalgamation – Synergy Tracker

    Amalgamation – Synergy Tracker • Rationalisation of Branches, Zonal Offices, Currency Chests, Staff Training Centres, Large Corporate Branches and other Administrative Offices • Savings in Rent, Taxes, Lighting and other Administrative expenses • IT related Synergies • Savings in Manpower cost 44/52

  46. Slide 46: Initiatives

    Initiatives Signing MOU with SIDBI Partnered with SIDBI to  Access the “Asset Restructuring Module for MSMEs - Do it Yourself” and view/download/amend the reports submitted by the MSME borrowers  Prepare restructuring proposals/ financial viability. PAiSA portal : An initiative of Min. of Housing

  47. Slide 47: Awards & Accolades

    Awards & Accolades State level NABARD Award in SHG Credit linkage Pradhan Mantri Awas Yojana (PMAY) through our Bank st Hon’ble Prime Minister of India releases `2690 Cr under among the PSBs in the SHG Credit PMAY through Indian Bank digital Platform to 6.10 lakhs Linkage in Tamil Nadu for 2019-20 b

  48. Slide 48: Joint Venture

    Joint Venture * Incorporated & licensed in 2007 ** Fully operational in April 2009 * Consortium of credible Public & Private Corporate entities from India and Sompo of Japan as promoter * Break-even in the 5th year (FY 13-14) ** Profitable ever since 28.52% * CAGR ( FY 10 to FY 20) : 28% 31.03.20 :

  49. Slide 49: Regional Rural Banks (RRBs)

    Regional Rural Banks (RRBs) NME Dec 20 ` in Cr Area of operation Tamil Nadu Grama Bank Parameters TNGB SGB PBGB Saptagiri Grameena Bank Puduvai Bharathiar Grama Bank No. of branches 632 223 44 Business 28238 15178 1662 Operating Profit 360 254 10 Yanam Net Profit 162 190 7 Gross NPA 1.81% 1.07% 1.99

  50. Slide 50: Strategies

    fear QB} indian Bank Strategies

  51. Slide 51: Strategies and focus areas

    Strategies and focus areas 1. Economies of scale: Consolidation of amalgamation and tracking synergies 2. Digital lending : Increasing digital adoption with focus on customer experience 3. HR - Customised Leadership Development Plan (LDP) 4. HR - Optimal Manpower Deployment to enhance productivity 5

  52. Slide 52: 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

  53. Slide 53: Slide 53

Indian Bank — Q3 FY2021 Earnings Presentation on 6ix