Indian Bank · NSE:INDIANB
Indian Bank — Q2 FY2020 Earnings Presentation
41 slides from Indian Bank's earnings presentation, Oct 23, 2019
Slide 1: Covering letter to stock exchanges
dont ab Corporate Office VIP Indian Bank Investor Services Cell FAX : 28134075 254-260, Avvai Shanmugam Salai PHONE : 28134076 Royapettah E-mail : investors@indianbank.co.in Chennai 600 014 Ref : ISC /397 / 2019-20 23.10.2019 The Vice President The Manager National Stock Exchange of India Limited BS
Slide 2: Press Release: Indian Bank announces results for Q2 FY2020
PRESS RELEASE Indian Bank announces results for Q2 FY2020, Total income up by 18%, Net profit increased by 139% to Rs.359 crore on the back of robust growth of 72% in Other income The Board of Directors of Indian Bank approved the Balance Sheet and Profit & Loss for the Second Quarter of 2019-20 (Q2
Slide 3: Press release: margins, expenses, provisions, RoA and RoE
Net interest margin (NIM) (Domestic) declined by 9 basis points (bps) and touched 2.92% for the quarter ended September 30, 2019 as against 3.01% for the quarter ended September 30, 2018. On a sequential basis it improved by 7 bps from 2.85% to 2.92% NIM (Domestic) for the six months period ende
Slide 4: Assets & Liabilities
Assets & Liabilities: Total Balance sheet size grew by 14% (Y-o-Y) and was Rs.297662 crore as of September 30, 2019 as against Rs.261642 crore as of September 30, 2018. Global Business at Rs.447420 crore as of September 30, 2019, recorded a Y-o-Y growth of 14% over September 30, 2018. Total de
Slide 5: Asset Quality and Recognitions
Asset Quality: Gross non-performing assets were at 7.20% of Gross advances as on September 30, 2019 and increased by 4 bps from 7.16% as on September 30, 2018. Net non-performing assets came down from 4.23 % as on September 30, 2018 to 3.54% of Net advances as on September 30, 2019 with a reduct
Slide 6: MD & CEO's Quote
MD & CEO’s Quote: Commenting on the results, Ms. Padmaja Chunduru MD & CEO, Indian Bank said, “Our robust performance is attributed to focus on business growth and earnings, strict adherence to prudent lending norms coupled with our financial strength, including sustained efforts to keep NPAs under
Slide 7: Performance Analysis Q2 / H1 2019-20
Performance Analysis Q2 / H1 2019-20
Slide 8: Contents
Table of Contents Contents Key strengths/Performance Highlights Financials Business Snapshot Capital & Risk Management Asset Quality Digital Banking Financial Inclusion / Awards Amalgamation 2/35
Slide 9: Key Strengths
Key Strengths 113 Years of dedicated Banking service Strong brand to the Nation Listed in 2007 – recognition – Unbroken record Customer base of earning profit since 2002 of 51 Millions Pan India Strong Presence with Capitalisation & 9872 Touch Healthy Points Financials Demonstrated consistent Pionee
Slide 10: Performance Highlights – Q2 2019-20 (YoY)
Performance Performance Highlights Highlights – Q2 2019-20 – Q2 2019-20 (YoY) (YoY) Total Business Deposits CASA % Advances Diversified `4.47 lakh Cr ` 2.53 lakh Cr 33.8% ` 1.94 lakh Cr Loan Book 14% 15% (down by 154 bps) 13% RAM 61% Operating Domestic Net Profit RoA RoE Profit NIM ` 359 Cr 0.50% 8%
Slide 11: Financials – Net Interest Income (NII) & Operating Profit
Financials – Net Interest Income (NII) & Operating Profit ` in Cr Quarter Ended Half Year Ended S No Components 30.09.2018 30.06.2019 30.09.2019 Y-o-Y (%) 30.09.2018 30.09.2019 Y-o-Y (%) 1 Interest Income 4700.84 5137.58 5307.67 12.9 9393.01 10445.26 11.2 2 Other income 428.32 694.54 737.65 72.2 868
Slide 12: Net Profit - Snapshot
Net Profit - Snapshot ` in Cr Quarter Ended Half Year Ended S No Components Y-o-Y Y-o-Y 30.09.2018 30.06.2019 30.09.2019 30.09.2018 30.09.2019 (%) (%) 1 Operating Profit 1191.04 1374.21 1501.76 26.1 2488.60 2875.98 15.6 2 Total Provisions 1040.90 1008.84 1143.21 9.8 2129.14 2152.05 1.1 Of which : Lo
Slide 13: Interest Income / Expenses and NII
Interest Income / Expenses and NII ` in Cr Quarter Ended Half Year Ended S No Components 30.09.2018 30.06.2019 30.09.2019 Y-o-Y (%) 30.09.2018 30.09.2019 Y-o-Y (%) 1 Interest Income on Advances and Bills 3392.03 3851.74 3994.10 17.7 6771.57 7845.84 15.9 2 Interest on investments 1277.25 1243.26 1266
Slide 14: Fee Income
Fee Income ` in Cr Quarter Ended Half Year Ended Components 30.09.2018 30.06.2019 30.09.2019 Y-o-Y (%) 30.09.2018 30.09.2019 Y-o-Y (%) Fee Income (Total of (i) to (vii)) 303.78 280.61 303.80 0.0 582.91 584.41 0.3 Of which (i)Loan processing charges 39.76 38.15 58.94 48.2 82.97 97.09 17.0 (ii) Commis
Slide 15: Operating Expenses
Operating Expenses ` in Cr Quarter Ended Half Year Ended S No Components 30.09.2018 30.06.2019 30.09.2019 Y-o-Y (%) 30.09.2018 30.09.2019 Y-o-Y (%) 1 Staff Expenses 532.04 596.19 585.78 10.1 1086.36 1181.96 8.8 Of which Salary 449.39 466.00 463.08 3.0 884.97 929.07 5.0 Contribution for Employees 82.
Slide 16: Business Snapshot
Business Snapshot ` in Cr Domestic Deposits Core Term Deposits Other Term Deposits Parameter 30.09.2018 30.06.2019 30.09.2019 YOY (%) Savings Bank Current account Global Business 391845 425793 447420 14.2 Domestic 378385 411029 431393 14.0 Overseas 13460 14764 16027 19.1 13244 Domestic 11595 CASA Gl
Slide 17: Advances (Domestic) - Breakup
Advances (Domestic) - Breakup Home Loans 49.2% Small Investment 67.3% Credit Auto Loans 9.9% 4.8% Agri Allied Retail Agriculture 0.5%2.9% MSME 9.3% 81% Infra Medium Edu Loans 5.7% 10.7% Ancillary 18.6% 40.2% Crop Loans Micro Other Retail ` in Cr Details 30.09.2018 30.06.2019 30.09.2019 YoY (%) Gross
Slide 18: Corporate Sector portfolio - Overview
Corporate Sector portfolio - Overview ` in Cr % to Gross % to Gross % to Gross Composition 30.09.2018 30.06.2019 30.09.2019 Advances Advances Advances NBFCs 20477 12.4 19036 10.8 19990 10.8 NBFC - PSUs 73 0.0 49 0.0 41 0.0 NBFC - HFC 7378 4.5 7044 4.0 7884 4.2 NBFC- MFI 698 0.4 772 0.4 1098 0.6 NBFC
Slide 19: Sectoral Deployment – Domestic Advances
Sectoral Deployment – Domestic Advances ` in Cr % share to % share to Sector 30.09.2018 Gross 30.09.2019 Gross Advances Advances Infrastructure 23908 14.48 24012 12.92 Of which Power 9210 5.58 8797 4.73 Telecom 105 0.06 100 0.05 Roads 4102 2.48 3348 1.80 Other infrastructure 10493 6.35 11768 6.33 Ba
Slide 20: Standard Domestic Credit Exposure – Profile of External rating
Standard Domestic Credit Exposure – Profile of External rating ` in Cr 30.09.2018 30.06.2019 30.09.2019 External Rating Grades % to % to % to Exposure Exposure Exposure Total Total Total AAA 17745 15.8 12753 11.8 11147 10.0 AA+ 19389 17.3 23066 21.4 28258 25.3 A 11950 10.7 13347 12.4 13888 12.5 BBB
Slide 21: Investment - Domestic
Investment - Domestic ` in Cr Composition 30.09.2018 31.03.2019 30.09.2019 Y-o-Y (%) Central Government Securities 43034 38139 44486 3.38 State Government Securities 13105 13880 17404 32.81 Other Approved Securities 24 5 4 -83.38 Debentures & Bonds 8935 9275 8716 -2.45 Treasury Bills 295 0 0 -- Shar
Slide 22: Performance Ratios
Performance Ratios % Annualized Quarter Ended Half Year Ended Parameters 30.09.2018 30.06.2019 30.09.2019 30.09.2018 30.09.2019 Cost of Deposits 5.24 5.40 5.45 5.19 5.44 Cost of Funds 5.30 5.42 5.46 5.26 5.45 Cost to Income Ratio 44.84 44.59 42.26 43.52 43.39 Yield on Advances 8.40 8.40 8.64 8.47 8.
Slide 23: Capital Adequacy – Risk Management
Capital Adequacy – Risk Management ` in Cr Parameters 30.09.2018 30.06.2019 30.09.2019 CRAR % 12.73 13.62 14.52 Capital 19189 21034 23622 Common Equity Tier I (CET 1) 16885 17604 20149 1.83 1.90 0.31 Additional Tier I 500 500 500 1.20 0.33 0.32 Tier II 1804 2930 2973 Total Risk Weighted Assets 15067
Slide 24: Shareholding Pattern & Balance Sheet
Shareholding Pattern & Balance Sheet 0.73 Pattern of Equity Shareholding % 5.11 6.52 Shareholder % Government of India 79.62 8.02 Government of India Mutual Funds 8.02 Mutual Funds FI/FPI/FII 6.52 30.09.2019 FI/FPI/FII Resident/Employees/NRI 5.11 Resident/Employees/NRI QIB / Others 0.73 QIB / Others
Slide 25: Asset Quality – Movement of NPA
Asset Quality – Movement of NPA S Quarter Ended ` in Cr Details No 30.09.2018 30.06.2019 30.09.2019 Sectorwise Fresh Slippages 1 Gross NPA opening balance 11828 13353 13511 ADDITIONS : Category Q2 2018-19 Q2 2019-20 Fresh Slippages 1624 1035 741 Retail 161 75 To old NPAs / Others 626 42 42 Agricultu
Slide 26: NPA Position - Sectorwise
NPA Position - Sectorwise ` in Cr Sectorwise Gross NPA to Total Gross NPA % 30.09.2018 30.06.2019 30.09.2019 Retail credit Agriculture MSME Corporate/Overseas Sector % to % to % to Gross Gross Gross respective respective Outstanding respective NPA NPA NPA portfolio portfolio portfolio Retail Credit
Slide 27: NPA Position – Industry wise
NPA Position – Industry wise ` in Cr 30.09.2018 30.06.2019 30.09.2019 Industry % to % to % to Gross NPA respective Gross NPA respective Gross NPA respective portfolio portfolio portfolio Metal and Metal Products (Incl. Iron & Steel) 2424 42.77 2116 30.25 2124 24.44 Coal and Mining 852 73.41 837 80.9
Slide 28: Status of NCLT Accounts – Q2 FY 19-20
Status of NCLT Accounts – Q2 FY 19-20 ` in Cr No.of Category Exposure Provision PCR% Accounts RBI List I 6 1648 1257 76.2 RBI List II 9 703 668 95.1 Others * 53 3637 2845 78.2 Total 68 5988 4769 79.7 * of which accounts filed by other banks at NCLT: 22 A/cs - ` 1265 Cr Recovery through Resolution
Slide 29: Business Network
Business Network Network - Distribution Branches - Region wise Population Group wise 3957 ATMs & Northern Urban BNAs North Eastern Semi 2884 11 % 635 2% Urban branches Central 829 8% Eastern Metro 3031 Business Western Correspondents 10 % 682 9% Rural 3 Overseas 738 Branches O verseas Southern 3 60
Slide 30: Digital Initiatives
Digital Initiatives igital Products for igital India Rupay Select Card NCMC Premium card variant offering special Inter-operable transport card with benefits & discounts to cardholders at “Tap & Go” payment facility merchants providing "wellness" related services Ind Advantage Online Nomination Faci
Slide 31: Migration to Digital Channels
Migration to Digital Channels igital Products for igital India 31% Branch Transaction 36% Transactions at Branch Counters 21% ATM & BNA ↓ 5% 21% through Digital Channels 48% ↑ 5% Digital Transaction 43% 0% 10% 20% 30% 40% 50% 60% QE SEP 19 QE SEP 18 25/35
Slide 32: Digital Footprint
Digital Footprint Net Banking in lakhs Mobile Banking YoY 23% YoY 39% 22.53 23.8 18.29 17.18 No. of Users Q2-FY 19 Q2-FY 20 Q2-FY 19 Q2-FY 20 YoY 13% YoY 244% 454.37 76.16 No. of 67.58 Transactions 132.15 Q2-FY 19 Q2-FY 20 Q2-FY 19 Q2-FY 20 26/35
Slide 33: Digital Footprint – Performance under 24*7 Banking
Digital Footprint – Performance under 24 *7 Banking YoY 41% YoY 24% PoS/ e-Com Issuer Transactions (lakhs) PoS Acquirer Transactions (in lakhs) 38.10 215 30.66 153 Q2 FY 2019 Q2 FY 2020 Q2 FY 2019 Q2 FY 2020 YoY 11% ATMs & BNAs 3956 Number of Debit Cards as on 30.09.2019: 152.61 Lakh 3579 Highest
Slide 34: Financial Inclusion – Performance under PMJDY
Financial Inclusion – Performance under PMJDY Accounts (No.in lakhs) Overdrafts Sanctioned (` in crore) Sep-19 Sep-19 17.85 38.99 15% increase in number of accounts Sep-18 33.82 Sep-18 17.01 29% increase in the amount of deposits Deposits (` in crore) % of Zero Balance A/cs Sep-19 12.68 7% reduction
Slide 35: Performance under Government Schemes
Performance under Government Schemes Pradhan Mantri PSB Loans MUDRA in 59 Minutes Suraksha Bima Yojana Disbursement `193 Cr 23.52 lakh (including RRBs) sanctioned in Policies `1275 Cr in 78166 488 A/cs A/cs till SEP 2019 Pradhan Mantri Jeevan till SEP 2019 Jyothi Bima Yojana Atal Pension Yojana 6.94
Slide 36: Awards & Accolades
Awards & Accolades Awards & Accolades Govt. of India Financial Express MeitY, GoI NABARD Reader’s Digest First in ‘Swatchhta FE India’s Pakhwada 2019” for Winner First Best Bank outstanding among PSBs for 2017-18 Digi Dhan Digital Excellence in contribution to Payment Award Nationalised Bank cleanli
Slide 37: Amalgamation of Indian Bank & Allahabad Bank
Consolidation of PSBsAwards - Amalgamation of Indian Bank & Allahabad Bank & Accolades As on Sustained Growth 31.03.2019 Indian Bank Allahabad Bank Indian Bank Allahabad Bank Domestic 4.3 3.8 2872 3229 6101 Business 8.1 lakh Cr Branches lakh Cr lakh Cr Overseas 2.5 2.1 3 1 4 Deposits 4.6 lakh Cr Bra
Slide 38: Benefits of Amalgamation and Synergies
Consolidation of PSBsAwards - Amalgamation of Indian Bank & Allahabad Bank & Accolades Benefits of Amalgamation Synergies Larger balance sheet size & Pan India presence strengthened – 2x with increased optimized capital utilisation presence in Central, Eastern & Northern region Wider Geographic reac
Slide 39: Way forward
Disclaimer Way forward New Initiatives undertaken Amalgamation Process Centralized processing units for MSME and RAM Adoption of best practices & standardised in place. processes to form one entity with smooth, hassle On boarded on PSB loans & TREDs Platforms. free, successful & timely complet
Slide 40: Disclaimer
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. Except for the historical information contained herein, statements i
Slide 41: Thank you
Thank you