IDBI Bank Limited · NSE:IDBI
IDBI Bank — Q2 FY2018 Earnings Presentation
39 slides from IDBI Bank's earnings presentation, September 2017
Slide 1: Presentation to Analysts Q2 FY 2018
|G) IDBI BANK Bany. Aisa Dost Jaisa . Preseniation to Analysis . Q2 FY 2018
Slide 2: Financial Highlights Q2 FY18 vs Q2 FY17
Financial Highlights Q2 FY18 vs Q2 FY17 Operating Profit Growth 82% NII Growth 4% NIM at 2.17% up by 27 Bps Operating expenses is reduced by 21.15% Fresh Slippages reduced to 3381 Cr from 5587 Cr CRAR increased to 11.98% from 11.64% CASA Growth 16.06% CASA Share 35.34% Provision Coverage Ratio 54.56
Slide 3: Balance Sheet - Snapshot
Balance Sheet - Snapshot ` in Crore As at 30-Sep-16 30-Jun-17 30-Sep-17 LIABILITIES Capital 2 059 2 071 2 358 Reserve & Surplus 25 960 19 731 21 449 Deposits 2 65 679 2 43 058 2 41 566 Borrowings 68 146 56 204 52 201 Other Liabilities & Provisions 14 793 15 640 15 529 Total 3 76 637 3 36 704 3 33 10
Slide 4: Profit & Loss - Snapshot
Profit & Loss - Snapshot ` in Crore Quarter ended Particulars Sep 2016 Jun 2017 Sep 2017 Interest Income 6986 6011 6004 Interest Expenses 5387 4609 4347 Net Interest Income 1599 1402 1657 Other Income 1402 720 2293 Net Total Income 3000 2122 3951 Operating Expenses 1461 1245 1152 - of which Other Op
Slide 5: Balance Sheet Parameters
Balance Sheet Parameters ` in Crore Sr. Terminal level YoY variation No Parameters Sep 16 Jun-17 Sep 17 Amt. % 1 Global Deposits 265679 243058 241566 -24113 -9.08 CASA Share (%) 27.69 33.67 35.34 CASA Deposits 73561 81837 85376 11814 16.06 Saving Deposits 41860 49521 51488 9628 23.00 Current Deposit
Slide 6: CASA-Low Cost Deposit
CASA-Low Cost Deposit CASA % CASA % Average 33.67 35.34 30.05 30.99 31.46 27.69 28.39 23.85 24.76 25.46 CASA % CASA % Average Sep 2016 Dec 2016 Mar 2017 Jun 2017 Sep 2017 Sep 2016 Dec 2016 Mar 2017 Jun 2017 Sep 2017 Share of CASA in Total Deposits exceeded 35% 6
Slide 7: Consistently Growing CASA Deposits
Consistently Growing CASA Deposits CASA Terminal Level CASA Average 74504 75274 84660 84469 85376 64177 67368 81837 60117 CASA CASA Terminal Average 73561 Level Sep 2016 Dec 2016 Mar 2017 Jun 2017 Sep 2017 Sep 2016 Dec 2016 Mar 2017 Jun 2017 Sep 2017 Bank is strategically moving towards “Funding thr
Slide 8: Declining Average Cost of Deposit
Declining Average Cost of Deposit Quarterly Average Cost of Deposit 8.50% 8.07% 8.00% 7.40% 6.61% 5.65% Quarterly Average Cost of Deposit Sep 12 Sep 13 Sep 14 Sep 15 Sep 16 Sep 17 8
Slide 9: Advances
Advances ` in Crore YoY variation Parameters Sep 16 Jun-17 Sep 17 Amt. % Global Gross Advances 230947 208085 205670 -25276 -10.94 Overseas Advances 26528 22552 20801 -5727 -21.59 Domestic Advances 204419 185533 184870 -19549 -9.56 Agri and Allied Activities 15842 17831 16891 1049 6.62 Industry (Micr
Slide 10: Priority Sector
Priority Sector ` in Crore Sep-16 as Jun-17 as Sep-17 as Particulars Sep-16 Percentage of Jun-17 Percentage Sep-17 Percentage ANBC of ANBC of ANBC Actuals Actuals Actuals Actuals Actuals Actuals ANBC 219104 233830 235929 Priority Sector Advances (a+b+c) 83029 37.89 88701 37.93 89863 38.09 (a) Agricu
Slide 11: Top 20 Industry-wise Advances
Top 20 Industry-wise Advances ` in Crore Outstanding as on 30-Sep-17 % of Total Top 20 Industries Outstanding FB NFB Total advances (Fund based+Non fund based) Infrastructure of which: 49308 27698 77005 17.59% -Transport 15600 7558 23157 5.29% -Energy 27321 8806 36128 8.25% -Water and Sanitation 229
Slide 12: Balance Sheet Ratios
Balance Sheet Ratios Particulars Sep 16 Jun-17 Sep 17 Total Business [Dep. + Adv.] 484352 430325 425133 SB Deposits to Total Deposits (EOP) 15.76% 20.37% 21.31% Current Account Deposits to Total 11.93% 13.30% 14.03% Deposits(EOP) Time Deposits to Total Deposits(EOP) 72.31% 66.33% 64.66% -Bulk Deposi
Slide 13: Income & Profitability Q2 FY18 vs Q2 FY17
Income & Profitability Q2 FY18 vs Q2 FY17 Net Interest Income Operating Profit 1680 3000 2 798 1 657 1660 2500 1640 2000 1540 1620 1500 1599 1600 1000 1580 500 1560 0 Sep 2016 Sep 2017 Sep 2016 Sep 2017 13
Slide 14: Declining Operating Expenses (Quarterly)
Declining Operating Expenses (Quarterly) ` in Crore 1600 1461 1400 1245 1152 1200 1000 783 745 726 800 678 600 500 426 400 200 0 Sep 2016 Jun 2017 Sep 2017 Operating Expenses Other Operating expenses Staff Expenses 14
Slide 15: Business Operating Profit
Business Operating Profit ` in Crore Business Operating Profit (Operating Profit Excluding Profit on sale of Non Core Assets) 1461 1021 806 Sep-16 Jun 2017 Sep 2017 15
Slide 16: Sale of Non Core Assets in HY Sep 17
Sale of Non Core Assets in HY Sep 17 SIDBI Stake Sale in Sep17 •Stake Sold: 10.03 % •Sale Proceeds: 1319.81 Cr •Capital Gain: 1266.45 Cr CCIL Stake Sale in Jun17 CCIL Stake Sale in Sep17 •Stake Sold: 2.50 % •Stake Sold: 2.50 % •Sale Proceeds: 75.13 Cr •Sale Proceeds: 75.38 Cr •Capital Gain: 70.71Cr
Slide 17: Provisions & Contingencies
Provisions & Contingencies (` in Crore) Quarter Ended YoY Variation Particulars Sep-16 Jun-17 Sep-17 Amt. Growth% Depreciation on Investment 237 438 199 (38) (16) Provision for NPAs 920 1 069 1 276 355 39 Provision towards standard assets (254) 99 156 410 (161) Provision for Restructured Assets (56)
Slide 18: Net Interest Income
Net Interest Income (` in Crore) Quarter ended YoY Growth Sr.No Particulars Sep 2016 Jun-17 Sep 2017 % 1 Interest Income (2+3+4) 6986 6011 6004 (14) 2 Interest on Advances 5101 4068 4260 (16) 3 Interest on Investments 1578 1669 1464 (7) 4 Other Interest Income 306 274 280 (9) 5 Total Interest paid (
Slide 19: Fee Income Breakup
Fee Income Breakup ` in Crore Quarter Ended Particulars YoY Sep-16 Jun-17 Sep-17 Growth (%) BG Commission 109 94 92 -16 LC Commission 106 99 88 -17 Bills Commission 6 5 6 0 Proc Fee & Incidental Charges 176 171 117 -33 Remittances Fees 18 29 25 40 Sourcing Syndication & Advisory Fees 4 23 7 75 Cash
Slide 20: Cost & Yield Ratio
Cost & Yield Ratio Qtr Sep 16 Qtr Jun 17 Qtr Sep 17 Qtr Sep 16 Qtr Jun 17 Qtr Sep 17 6.72% 6.61% 5.99% 5.95% 5.78% 5.65% Cost of Deposits Cost of Funds Qtr Sep 16 Qtr Jun 17 Qtr Sep 17 Qtr Sep 16 Qtr Jun 17 Qtr Sep 17 9.51% 2.17% 1.90% 1.72% 8.97% 8.43% Yield on Advances NIM 20
Slide 21: Profitability Ratio
Profitability Ratio Quarter Ended HY Ended Particulars Sep 16 Jun-17 Sep 17 Sep 17 Sep 16 Net Interest Margin 1.90% 1.72% 2.17% 1.94% 1.99% Return on Assets 0.06% -ve -ve -ve 0.16% Return on Equity 1.31% -ve -ve -ve 2.66% Cost of all liabilities 5.93% 5.35% 5.29% 5.31% 6.03% Yield on Total Assets 9.
Slide 22: Treasury Operations
Treasury Operations Parameters Sep 16 Jun 17 Sep 17 SLR 73987 73875 73170 Non SLR 15842 12507 11070 Non SLR (Overseas) 0 226 489 Non SLR (SASF) 4389 3959 3862 Total Investment 94218 90567 88591 Sep 2017 Particulars HTM AFS HFT Total Government securities 53 036 20 025 109 73 170 SASF Securities 3 86
Slide 23: Asset Quality
Asset Quality ` in Crore Particulars Sep 16 Jun-17 Sep-17 Gross Advances 230947 208085 205670 Gross NPAs 30134 50173 51368 Gross NPAs as % of Gross Advances 13.05% 24.11% 24.98% Total Provisions held (including NPV Loss) 12289 20593 21879 Net Advances 218658 187266 183568 Net NPAs 18195 29580 29489
Slide 24: NPA Movement
NPA Movement ` in Crore For the Quarter For the Quarter For the Quarter Particulars Sep 16 Jun 17 Sep 17 Opening Balance 27275 44753 50173 Add: -First Time NPA 5587 7659 3381 -Increase/Ageing 111 705 1321 Of Which Restructured A/cs are 1533 1054 324 Less: -Settled 252 1492 1297 -Upgradation 2123 626
Slide 25: Sector Wise Analysis
Sector Wise Analysis ` in Crore Oustanding GNPA % Restructured Advances Gross NPA to Total Qtrly Standard Category (A) (B) GNPA FTNPA Advances Agri and Allied Activities 16891 1868 3.64% 164 57 Industry (Micro, Small, 109305 42092 81.94% 2328 12095 Medium & Large) Services 36327 5437 10.58% 335 328
Slide 26: Declining Fresh Slippages
Declining Fresh Slippages ` in Crore Fresh Slippages Net addition to Gross NPA 9507 11532 7659 5421 3381 1194 Mar-17 Jun-17 Sep-17 Mar-17 Jun-17 Sep-17 26
Slide 27: Restructured Standard Accounts Industry Wise
Restructured Standard Accounts Industry Wise Net Outstanding ` in Crore Industry Sep-16 'Jun 17 Sep 17 Infrastructure 7480 7046 6739 Rubber, Plastic and their Products 1728 1663 1662 Chemicals and Chemical Products (Dyes, Paints, etc.) 305 1663 1700 Vehicles, Vehicle Parts and Transport Equipments 1
Slide 28: Capital Adequacy
Capital Adequacy Particulars Mar-17 Sep-17 CET 1 + CCB (Rs.) 15160 16208 AT 1 (Rs.) 5854 5854 11.98% Tier 1 Capital (Rs.) 21014 22062 10.70% Tier 2 Capital (Rs.) 7765 7540 3.05% Total Capital (Rs.) 28779 29602 2.89% RWA (Rs.) 268997 247005 2.37% CET 1+CCB Ratio 5.64% 6.56% 2.17% AT 1 2.17% 2.37% Tie
Slide 29: Shareholding Pattern Sep 2017
Shareholding Pattern Sep 2017 % OF SHARE HOLDING 0.07 9.37 15.45 FIs/Bank/Insurance GOI MF Non Institutions 75.10 29
Slide 30: Digital Products
Digital Products Next Gen Payment Solutions for a Cashless environment For Individuals Internet Banking Mobile Banking App BHIM UPI App Passbook on Mobile Banking through Card Control App Basic Mobile Set Card payments Mobile Wallet For Merchants BHIM BHIM UPI Mobile Aadhaar POS POS 30
Slide 31: Digital Banking & Emerging Payments Products
Digital Banking & Emerging Payments Products As on March 17 As on Sept 17 No. of Volume of No. of Volume of Transactions Transactions Products (Numbers) Installations/ Installations/ Transactions Transactions for FY for FY Registrations Registrations for HY Sep17 for HY Sep17 Mar17 Mar17 (in lakh) (
Slide 32: Digital Banking & Emerging Payments Products
Digital Banking & Emerging Payments Products As on Sept 17 Products (Numbers) Installations / Registrations Digital PoS (Bharat QR) 4061 Mobile PoS 5032 eWallet (merchants) 6138 UPI App (merchants) 17350 BHIM Aadhaar Pay 467 Mobile Passbook 33500 PayApt Users 250000 Abhap: Card Control App users 725
Slide 33: Digital Banking Transactions Vs. Total Customer Induced Transactions
Digital Banking Transactions Vs. Total Customer Induced Transactions 100% 6% 6% 5% 5% 5% 5% 5% 5% 5% 5% 6% 5% 6% 90% 7% 7% 6% 7% 6% 6% 6% 6% 6% 8% 8% 8% 8% 8% 9% 8% 8% 8% 7% 7% 80% 9% 9% 3% 10% 10% 10% 9% 3% 4% 3% 3% 3% 11% 3% 4% 7% 6% 5% 4% 7% 7% 8% 8% 7% 7% 11% 7% 5% 70% 4% 5% 13% 6% 60% 50% 40% 6
Slide 34: Distribution Network
Distribution Network 2500 4500 2 2 4000 3816 2000 1 3537 1 3500 3310 378 453 443 3000 3000 1500 1 368 2500 2301 319 460 473 468 451 2000 1000 1500 426 586 586 596 1000 524 500 372 500 0 373 421 408 418 270 0 FY 2014 FY 2015 FY 2016 FY 2017 Q2 FY18 FY 2014 FY 2015 FY 2016 FY 2017 Q2 FY18 ATM Rural Se
Slide 35: Turnaround Strategy
Turnaround Strategy Focus Areas Improving CRAR • CRAR : 11.98% in Sep 17 V/s 10.70% in Mar 17 •CET 1 + CCB: 6.56% in Sep 17 V/s 5.64% in Mar 17 Improving Asset Quality • Declining Fresh Slippages from 11532 Cr in Qtr Mar 17 to 3381 Cr in Qtr Sep 17. •Decline in Net Addition to Gross NPA from 9507 Cr
Slide 36: Way Forward
Way Forward • Project Nishchay initiated to drive sustainable growth and profitability for IDBI Bank Objectives of Project Nishchay Driving short term profitability impact • Quick win to improve operating profits • Identify next set of growth opportunities • Improve employee engagement and morale De
Slide 37: Way Forward
Way Forward 4 broad areas identified to drive IDBI Bank to improved profitability position Nishchay @ IDBI Bank Revenue Maximization Driving cost efficiency Manpower Planning Asset Utilization Improving Improving fees income Rental & Increasing sales utilization of real maintenance cost focus of wor
Slide 38: Significant developments
Significant developments IDBI Bank signed MoUs with 14 state Governments for credit linkage of SHGs under the State Rural Livelihoods Mission (SRLM). IDBI Bank was awarded with Rajbhasha Kirti Puraskar for Hindi Magazine „VikasPrabha‟ by Department of Official Language, Ministry of Home Affairs,
Slide 39: Thank You
Thank You |@ IDBI BANK | 39