Icici Bank Limited · NSE:ICICIBANK
Icici Bank — Q4 2020 Earnings Presentation
98 slides from Icici Bank's earnings presentation, May 9, 2020
Slide 1: Exchange filing cover letter
May 9, 2020 BSE Limited National Stock Exchange of India Limited Listing Department Listing Department Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th floor 1st floor Plot No. C/1, G Block Dalal Street Bandra-Kurla Complex Mumbai 400 001 Bandra (East) Mumbai 400 051 Dear Sir/Madam, Sub: Earnings call
Slide 2: Q4-2020: Performance review
Q4-2020: Performance review May 9, 2020
Slide 3: Forward-looking statements disclaimer
Certain statements in this release relating to a future period of time (including inter alia concerning our future business plans or growth prospects) are forward-looking statements intended to qualify for the 'safe harbor' under applicable securities laws including the US Private Securities Litigat
Slide 4: Highlights for Q4-2020
Highlights for Q4-2020 3
Slide 5: Key highlights for Q4-2020
Key highlights for Q4-2020 Profitability Healthy loan growth Stable funding profile • 17.6% y-o-y growth in core • Domestic loan growth was • 12.0% y-o-y growth in operating profit 12.9% y-o-y average CASA deposits in • Excluding impact of interest on • Retail loan growth was Q4-2020 income tax refu
Slide 6: Readiness during unprecedented times
Readiness during unprecedented times Focus on health and safety of employees and customers and uninterrupted availability of banking services Employees Customers Operations & IT • Enabled work from home for • Launched ICICI STACK, • Risk assessment for majority of employees, other WhatsApp Banking a
Slide 7: Operating performance
Operating performance 6
Slide 8: P&L trends: Q4-2020
P&L trends: Q4-2020 Net interest margin (NIM) Fee income NIM was 3.87% in Q4-2020 13.2% y-o-y growth to ` 35.98 billion; retail fee growth of 16.1% y-o-y Operating expenses Core operating profit to average assets Growth of 15.7% y-o-y to ` 57.92 billon 2.84% in Q4-2020 (Q3-2020: 2.84%, Q4-2019: 2.73
Slide 9: Profit & loss statement
Profit & loss statement FY Q4- Q3- Q4- FY Q4-o-Q4 (` billion) 2019 2019 2020 2020 2020 growth Net interest income1 270.15 76.20 85.45 89.27 332.67 17.2% Non-interest income 131.46 34.65 40.43 40.13 151.56 15.8% - Fee income 119.89 31.78 35.96 35.98 137.11 13.2% - Dividend income from 10.78 2.69 3.67
Slide 10: Profit & loss statement
Profit & loss statement (` billion) FY Q4- Q3- Q4- FY Q4-o-Q4 2019 2019 2020 2020 2020 growth Core operating profit 220.72 60.77 70.17 71.48 268.08 17.6% 1 Treasury income 13.66 1.56 5.31 2.42 12.93 55.1% Operating profit 234.38 62.33 75.48 73.90 281.01 18.6% Covid-19 related provisions - - - 27.25
Slide 11: Key ratios
Key ratios Percent FY2019 Q4-2019 Q3-2020 Q4-2020 FY2020 Net interest margin1,3 3.42 3.72 3.77 3.87 3.73 Cost to income 44.82 44.5 42.5 43.9 43.5 Provisions/core operating profit 89.1 89.7 29.7 45.44 42.34 Provisions/average advances 3.67 3.92 1.34 2.064 1.864 Core operating profit/average assets 2.
Slide 12: Balance sheet growth
Balance sheet growth 11
Slide 13: Funding profile
Funding profile (` billion) Mar 31, Dec 31, Mar 31, Y-o-Y % share at 2019 2019 2020 growth Mar 31, 2020 CASA 3,239.40 3,364.09 3,478.18 7.4% 45.1% - Current 962.69 1,009.89 1,022.27 6.2% 13.3% - Savings 2,276.71 2,354.20 2,455.91 7.9% 31.9% Term 3,289.80 3,799.36 4,231.51 28.6% 54.9% Total deposits
Slide 14: Loan portfolio
Loan portfolio (` billion) Mar 31, Dec 31, Mar 31, Y-o-Y % share at 2019 2019 2020 growth Mar 31, 2020 Advances 5,866.47 6,356.54 6,452.90 10.0% 100.0% - Domestic book 5,236.14 5,790.67 5,913.23 12.9% 91.6% - Retail 3,528.31 3,976.46 4,080.03 15.6% 63.2% - SME1 179.17 217.44 228.51 27.5% 3.5% - Corp
Slide 15: Retail portfolio
Retail portfolio (` billion) Mar 31, Dec 31, Mar 31, Y-o-Y % share at 2019 2019 2020 growth Mar 31, 2020 Mortgage loans 1,782.36 1,963.71 2,002.24 12.3% 49.1% Vehicle loans 556.66 584.06 583.31 4.8% 14.3% - Auto finance 314.36 323.84 322.17 2.5% 7.9% - Commercial business 228.85 244.20 246.50 7.7% 6
Slide 16: Digital transactions
Digital transactions UPI Mobile banking 161% y-o-y 98% y-o-y Market share as a PSP1 increased to 10% in FY2020, up from 7% in FY2019 Over 88% of savings account transactions2 in FY2020 through digital channels 1. Payments service provider 15 2. Includes internet, mobile, POS, touch banking, phone ba
Slide 17: Debit and credit cards
Debit and credit cards Debit cards Credit cards 6% y-o-y in spends 45% y-o-y in spends Average spends in Mar 2020 were lower by 22% Average spends in Mar 2020 were lower by 26% compared to the average for Jan and Feb 2020 compared to the average for Jan and Feb 2020 16
Slide 18: Digital sourcing of various products in FY2020
Digital sourcing of various products in FY2020 Term life insurance policies Personal loans 26% protection Fixed deposits 61% sourced via policies sold online 56% sourced via digital channels1 digital channels ₹ Credit cards SIPs initiated 44% sourced via 21% initiated via digital channels1 digital m
Slide 19: ICICI STACK
ICICI STACK Retail internet banking iMobile • The country’s most comprehensive digital banking platform offering nearly 500 banking services like digital account opening, instant loans, payment solutions, investments and health and term insurance • Retail and business customers can avail seamless an
Slide 20: ICICI STACK for retail customers
ICICI STACK for retail customers SOLUTIONS TECHNOLOGY VIEW InstaSave, FDXtra, iWish flexible RD iMobile app/Netbanking ACCOUNTS LAYER IMPS, NEFT, RTGS Bill Payments, UPI/QR Scan & Pay, PAYMENTS LAYER wallets, debit card & travel card Insta home loan & top up, Insta credit card, Insta car and TW loan
Slide 21: ICICI STACK for business banking customers
ICICI STACK for business banking customers SOLUTIONS TECHNOLOGY VIEW Online CA, API Developer Portal, InstaBIZ ACCOUNTS LAYER Vendor & tax payments EazyPay: POS/UPI QR/ Payment Gateway Integration with accounting/ERP platform PAYMENTS LAYER Import/Export portal & real time dashboard Insta OD/GST OD,
Slide 22: ICICI STACK for corporate customers
ICICI STACK for corporate customers SOLUTIONS TECHNOLOGY VIEW Online current a/c, alternative investment fund, trusteeship, specialized a/cs1 , corporate ACCOUNTS LAYER internet banking, trade online, API integration E-collections, e-NACH2 mandates, UPI based payments, integrated payment system, FX
Slide 23: Digital services at customers' doorstep
Digital services at customers’ doorstep Through WhatsApp, Voice banking services Integrated the AI powered customers carry out banking enables customers to speak multi-channel chatbot, services like checking last out their banking related iPal, with Alexa/Google three transactions, pre- queries like
Slide 24: Asset quality trends
Asset quality trends 23
Slide 25: NPA trends (1/2)
NPA trends (1/2) (` billion) Mar 31, 2019 Dec 31, 2019 Mar 31, 2020 Gross NPAs1 462.92 434.54 414.09 Less: cumulative provisions1 327.15 330.65 312.95 Net NPAs1 135.77 103.89 101.14 Gross NPA ratio1 6.70% 5.95% 5.53% Net NPA ratio1 2.06% 1.49% 1.41% Provision coverage ratio2 70.6% 76.2% 75.7% Provis
Slide 26: Provisions
Provisions • Provisions of ` 79.40 billion (1.2% of outstanding loans) not considered in the computation of provision coverage ratio at Mar 31, 2020 • Provision of ` 27.25 billion related to Covid-19 • General provision of ` 34.45 billion on standard assets (other than Covid-19 related) • Provision
Slide 27: NPA addition trends
NPA addition trends NPA movement1 (` billion) FY2019 Q4-2019 Q3-2020 Q4-2020 FY2020 Opening gross NPA 540.63 515.91 456.39 434.54 462.92 Add: gross additions 110.39 35.47 43.63 53.06 142.95 - Retail 35.96 8.23 18.902 12.94 57.85 - Corporate and SME 74.43 27.24 24.73 40.12 85.10 Less: recoveries, upg
Slide 28: Corporate and SME: NPA additions
Corporate and SME: NPA additions1 ` billion Q4-2020 - Corporate and SME 40.12 - Increase in outstanding due to rupee depreciation on existing NPAs 4.68 - BB and below portfolio 17.26 of which: Devolvement of non-fund based o/s to existing NPAs 0.32 Other BB and below 16.94 - Others 18.18 • Slippages
Slide 29: Corporate and SME: BB and below
Corporate and SME: BB and below ` billion Mar 31, Dec 31, Mar 31, 2019 2019 2020 BB and below outstanding1,2,3 175.25 174.03 166.68 - Fund and non-fund o/s to restructured loans 5.64 1.96 1.80 - Non-fund o/s to non-performing loans4 42.20 39.195 50.63 - Borrowers under RBI resolution schemes5 39.95
Slide 30: Movement in Corporate and SME BB and below in Q4-2020
Movement in Corporate and SME BB and below in Q4-2020 (` billion) 5,6 1,2,3,4 1,2,3,4 5 • Downgrades to BB and below rated portfolio were granular in nature and included a few downgrades from the commercial real estate sector 1. Fund-based and non-fund based outstanding 2. Excludes banks 3. Excludes
Slide 31: Movement in Corporate and SME BB and below in FY2020
Movement in Corporate and SME BB and below in FY2020 (` billion) 1,2,3,4 5,6 1,2,3,4 5 1. Fund-based and non-fund based outstanding 2. Excludes banks 3. Excludes investments 4. Excludes fund-based outstanding to NPAs 5. Excludes fund-based outstanding to accounts downgraded from investment grade dur
Slide 32: Exposure to power sector
Exposure to power sector (` billion) Mar 31, Dec 31, Mar 31, Share at Mar 2019 2019 2020 31, 2020 (%) Borrowers classified as NPA or part of BB 114.05 92.17 92.33 24.3% and below portfolio1 Other borrowers 259.86 229.88 287.95 75.7% Total 373.91 322.05 380.28 100.0% • Of the other borrowers aggregat
Slide 33: NBFCs, HFCs and builder portfolio
NBFCs, HFCs and builder portfolio Outstanding (` billion) Mar 31, Dec 31, Mar 31, 2019 2019 2020 NBFCs1 293.68 268.24 273.08 HFCs1 138.58 139.83 124.47 Builder portfolio (construction finance, lease rental 196.33 230.99 223.18 discounting, term loans and working capital loans) 1. Includes loans, inv
Slide 34: Improving rating profile of overall loan book
Improving rating profile of overall loan book Mar 31, Mar 31, Mar 31, Mar 31, Mar 31, Rating category1,2 2016 2017 2018 2019 2020 AA- and above 30.6% 37.2% 42.4% 45.1% 44.4% A+, A, A- 21.3% 19.0% 20.1% 22.0% 25.8% A- and above 51.9% 56.2% 62.5% 67.1% 70.2% BBB+, BBB, BBB- 27.8% 28.7% 27.5% 28.2% 26.
Slide 35: Reduction in concentration risk
Reduction in concentration risk Details Mar 31, Mar 31, Mar 31, Mar 31, Dec 31, Mar 31, 2016 2017 2018 2019 2019 2020 Exposure to top 20 13.3% 12.4% 12.5% 10.8% 11.0% 11.0% borrowers1 as a % of total exposure Exposure to top 10 groups 18.5% 16.8% 14.3% 13.6% 12.5% 12.1% as a % of total exposure • Ha
Slide 36: Capital
Capital 35
Slide 37: Strong capital position
Strong capital position Dec 31, 20191 Mar 31, 20202 (` billion) % (` billion) % Total capital 1,215.70 16.50% 1,223.85 16.11% - Tier I 1,103.86 14.98% 1,117.85 14.72% - of which: CET1 1,003.66 13.62% 1,016.65 13.39% - Tier II 111.84 1.52% 106.00 1.39% Risk weighted assets 7,369.73 7,594.90 - On bala
Slide 38: Subsidiaries
Subsidiaries 37
Slide 39: Profit after tax of subsidiaries
Profit after tax of subsidiaries Profit after tax (` billion) FY2019 Q4-2019 Q3-2020 Q4-2020 FY2020 ICICI Prudential Life Insurance 11.41 2.61 3.02 1.79 10.69 ICICI Lombard General Insurance 10.49 2.28 2.94 2.82 11.94 ICICI Prudential Asset Management1 6.83 2.17 3.05 2.17 10.46 ICICI Securities (Con
Slide 40: Insurance subsidiaries
Insurance subsidiaries ICICI Prudential Life Insurance • VNB1 grew by 20.9% y-o-y to ` 16.05 billion in FY2020; VNB margins increased from 17.0% in FY2019 to 21.7% in FY2020 • Protection annualised premium equivalent (APE) grew by 54.6% y-o-y to ` 11.16 billion in FY2020 and is 15.1% of APE in FY202
Slide 41: Looking ahead: scenario
Looking ahead: scenario Well-capitalised Bank with strong Uncertain environment non-banking subsidiaries Digital platforms with high Robust deposit franchise functionality, continuous focus on and substantial liquidity enriching customer experience 40
Slide 42: Looking ahead: focus areas
Looking ahead: focus areas Further strengthen internal Further enhancement of synergy and capability to platforms and reimagining capitalise on market opportunity business processes Close monitoring of Risk-calibrated profitable growth, portfolio while maintaining strong balance sheet 41
Slide 43: Environmental, Social and Governance initiatives
Environmental, Social and Governance initiatives 42
Slide 44: ESG at ICICI Bank
ESG at ICICI Bank Purpose Building a sustainable and responsible business and creating a positive impact on the economy, society and the environment Approach Board-approved Environment, Social and Governance Framework integrating the various policies and approaches of the Bank ESG: Environment, Soci
Slide 45: Sensitivity to environment
Sensitivity to environment Environmental focus in business Environmental focus in operations • Supporting capacity creation in • Ensured IGBC green building features at all environment-friendly sectors subject to new offices and branches opened in FY2020 appropriate assessment of risk and returns •
Slide 46: Responsibility to society
Responsibility to society • Committed to being “Fair to Customer, Fair to Bank” Customers • Strive to ensure fair features and pricing in products • Compliance with the Customer Rights Policy, Customer Relations Policy, Customer Grievance Redressal Policy and others • Committed to customer data prot
Slide 47: Covid-19 related initiatives
Covid-19 related initiatives Participated in various activities on the ground to support the fight against Covid-19 • Reached out at the district level for providing necessary support; efforts across 34 states/union territories covering over 500 districts • Engaged with frontline staff like doctors,
Slide 48: Governance
Governance Committed to an ethical and transparent relationship with stakeholders • Corporate governance based on an effective independent Board, the separation of the Board’s supervisory role from the executive management and the constitution of Board Committees to oversee critical areas • The ICIC
Slide 49: Thank you
ICICI Bank Thank you
Slide 50: Additional financial information
Additional financial information 49
Slide 51: Yield, cost and margin
Yield, cost and margin Movement in yield, costs & FY2019 Q4-2019 Q3-2020 Q4-2020 FY2020 margins (Percent)1 Yield on total interest-earning 8.03 8.45 8.40 8.32 8.38 assets - Yield on advances 8.96 9.29 9.52 9.41 9.45 Cost of funds 5.10 5.20 5.06 4.92 5.09 - Cost of deposits 4.87 5.00 4.92 4.78 4.96 N
Slide 52: Unconsolidated segment-wise PBT
Unconsolidated segment-wise PBT Profit before tax FY2019 Q4-2019 Q3-2020 Q4-2020 FY2020 (` billion) Retail 82.23 21.03 25.58 18.99 89.93 Wholesale (102.42) (27.90) 12.30 (3.12) 9.27 Treasury 51.65 9.87 15.66 12.74 50.55 Others 6.31 4.82 1.11 0.72 5.83 Unallocated - - - (15.10)1 (15.10)1 Total 37.77
Slide 53: Consolidated profit & loss statement
Consolidated profit & loss statement (` billion) FY2019 Q4-2019 Q3-2020 Q4-2020 FY2020 Q4-o-Q4 growth Net interest income 328.04 91.51 103.26 107.16 401.70 17.1% Non-interest income 593.25 172.81 167.48 183.80 649.50 6.4% - Fee income 143.63 36.96 42.01 42.66 162.59 15.4% - Premium income 420.94 130
Slide 54: Consolidated profit & loss statement
Consolidated profit & loss statement (` billion) FY2019 Q4- Q3- Q4- FY2020 Q4-o-Q4 2019 2020 2020 growth Operating profit 278.70 74.20 88.97 85.75 336.02 15.6% Provisions 204.62 57.40 21.32 65.98 150.14 14.9% Profit before tax 74.08 16.80 67.65 19.77 185.88 17.7% Tax1 17.19 1.53 16.51 3.64 73.63 - M
Slide 55: Key ratios (consolidated)
Key ratios (consolidated) Percent FY2019 Q4-2019 Q3-2020 Q4-2020 FY2020 Weighted average EPS1 6.6 7.4 28.7 7.8 14.8 Book value (`) 177 177 189 190 190 1. Annualised for all interim periods 54
Slide 56: Balance sheet: liabilities
Balance sheet: liabilities (` billion) Mar 31, 2019 Dec 31, 2019 Mar 31, 2020 Net worth 1,083.68 1,150.01 1,165.04 - Equity capital 12.89 12.94 12.95 - Reserves 1,070.79 1,137.07 1,152.09 Deposits 6,529.20 7,163.45 7,709.69 - Savings 2,276.71 2,354.20 2,455.91 - Current 962.69 1,009.89 1,022.28 - Te
Slide 57: Composition of borrowings
Composition of borrowings (` billion) Mar 31, Dec 31, Mar 31, 2019 2019 2020 Domestic 905.42 754.66 1,029.43 - Capital instruments 270.25 232.35 218.17 - Other borrowings 635.17 522.32 811.26 - Long term infrastructure bonds 194.97 194.97 194.77 Overseas borrowings1 747.78 619.08 599.53 Total borrow
Slide 58: Balance sheet: assets
Balance sheet: assets (` billion) Mar 31, Dec 31, Mar 31, 2019 2019 2020 Cash & bank balances 802.96 704.37 1,191.56 Investments 2,077.33 2,274.80 2,495.31 - SLR investments 1,479.10 1,680.50 1,883.20 - Equity investment in subsidiaries 98.03 98.03 98.03 - Security receipts of ARCs 32.86 20.87 19.25
Slide 59: Equity investment in subsidiaries
Equity investment in subsidiaries (` billion) Mar 31, Dec 31, Mar 31, 2019 2019 2020 ICICI Prudential Life Insurance 32.97 32.97 32.97 ICICI Bank Canada 18.74 18.74 18.74 ICICI Bank UK 18.05 18.05 18.05 ICICI Lombard General Insurance 13.49 13.49 13.49 ICICI Home Finance 11.12 11.12 11.12 ICICI Secu
Slide 60: Consolidated balance sheet
Consolidated balance sheet (` billion) Mar 31, 2019 Dec 31, 2019 Mar 31, 2020 Cash & bank balances 873.91 793.96 1,278.53 Investments 3,982.01 4,352.63 4,434.73 Advances 6,469.62 7,004.74 7,062.46 Fixed & other assets 1,062.40 897.78 997.20 Total assets 12,387.94 13,049.11 13,772.92 Net worth 1,142.
Slide 61: Retail NPAs
Retail NPAs Retail NPAs (` billion) Mar 31, 2019 Dec 31, 2019 Mar 31, 2020 Gross retail NPAs 60.22 85.99 83.32 - as a % of gross retail advances 1.69% 2.14% 2.02% Net retail NPAs 25.33 37.89 36.80 - as a % of net retail advances 0.72% 0.95% 0.90% 60
Slide 62: Portfolio composition
Portfolio composition Mar 31, Dec 31, Mar 31, 2019 2019 2020 Domestic 83.0% 85.0% 85.8% International 17.0% 15.0% 14.2% Total consolidated advances 6,470 7,005 7,062 (` billion) 61
Slide 63: Sector-wise exposures
Sector-wise exposures Top 10 sectors1: % of total Mar 31, Mar 31, Mar 31, Mar 31, Dec 31, Mar 31, exposure of the Bank 2016 2017 2018 2019 2019 2020 Retail finance 27.1% 31.9% 34.2% 37.3% 40.2% 40.5% Services – finance 4.9% 6.2% 7.0% 7.3% 7.5% 8.4% Banks 8.0% 6.0% 8.4% 7.9% 7.0% 6.4% Electronics & e
Slide 64: Consolidated capital adequacy
Consolidated capital adequacy Basel III (%) Dec 31, Mar 31, 20191 20202 Total capital 16.12% 15.81% - Tier I 14.64% 14.41% - of which: CET 1 13.43% 13.21% - Tier II 1.48% 1.40% 1. As per Basel III guidelines, includes profit for 9M-2020 63 2. Raised Tier-II bonds amounting to ` 9.45 billion in Q4-20
Slide 65: Extensive franchise
Extensive franchise Branches At Mar At Mar At Mar At Mar % share at 31, 2017 31, 2018 31, 2019 31, 2020 Mar 31, 2020 Metro 1,440 1,443 1,438 1,585 30% Urban 990 991 991 1,067 20% Semi urban 1,444 1,449 1,453 1,546 29% Rural 976 984 992 1,126 21% Total branches 4,850 4,867 4,874 5,324 100% Total ATMs
Slide 66: Insurance subsidiaries
Insurance subsidiaries ICICI Life (` billion) FY2019 Q4-2019 Q3-2020 Q4-2020 FY2020 Annualised premium equivalent 77.99 24.57 20.38 19.74 73.81 - Of which: protection 7.22 2.61 2.67 3.52 11.16 Total premium 309.30 101.64 82.64 106.47 334.31 Assets under management 1,604.10 1,604.10 1,719.53 1,529.68
Slide 67: ICICI Bank UK
ICICI Bank UK (USD million) FY2019 Q4-2019 Q3-2020 Q4-2020 FY2020 Net interest income 70.5 19.9 16.0 15.9 64.3 Operating profit 45.7 9.4 10.1 8.7 40.9 Loans and advances 2,442.5 2,442.5 2,463.5 2,089.6 2,089.6 Deposits 2,140.8 2,140.8 2,144.9 2,042.2 2,042.2 - Retail term deposits 677.1 677.1 645.3
Slide 68: ICICI Bank UK asset and liability profile
ICICI Bank UK1 Asset profile Liability profile 2 3 Total assets: USD 3.54 bn Total liabilities: USD 3.54 bn 1. At Mar 31, 2020 2. Includes cash & advances to banks and T Bills 3. Includes securities re-classified to loans & advances 67
Slide 69: ICICI Bank Canada
ICICI Bank Canada (CAD million) FY2019 Q4-2019 Q3-2020 Q4-2020 FY2020 Net interest income 91.4 22.9 27.5 20.0 95.3 Operating profit 62.7 13.7 22.9 18.1 76.1 Loans and advances 5,771.6 5,771.6 5,673.6 5,742.6 5,742.6 - Residential mortgages 3,546.6 3,546.6 3,631.5 3,686.5 3,686.5 Deposits 3,195.0 3,1
Slide 70: ICICI Bank Canada asset and liability profile
ICICI Bank Canada1 Asset profile Liability profile 2 4 3 Total assets: CAD 6.56 bn Total liabilities: CAD 6.56 bn 1. At Mar 31, 2020 2. Includes cash & placements with banks and government securities 3. Insured mortgages include CAD 2,619.3 million at Mar 31, 2020 (Dec 31, 2019: CAD 2,635.0 million)
Slide 71: ICICI Home Finance
ICICI Home Finance1 (` billion) Dec 31, 2019 Mar 31, 2020 Loans and advances 154.13 140.92 Gross impaired loans (stage 3)2 8.28 8.46 Net impaired loans (stage 3) 4.76 4.70 Capital adequacy ratio3 14.43% 14.80% 1. As per Ind AS 2. Includes commercial real estate loans of ` 4.74 billion at Mar 31, 202
Slide 72: Analyst call on May 9, 2020: opening remarks
Analyst call on May 9, 2020: opening remarks Certain statements in this release relating to a future period of time (including inter alia concerning our future business plans or growth prospects) are forward-looking statements intended to qualify for the 'safe harbor' under applicable securities law
Slide 73: Mr. Bakhshi's opening remarks
Mr. Bakhshi’s opening remarks Good afternoon to all of you and welcome to the ICICI Bank Earnings Call to discuss the Q4-2020 results. Joining us today on this call are Vishakha, Anup, Sandeep Batra, Rakesh and Anindya. Thank you everyone for joining us today. Team ICICI hopes that you and your fami
Slide 74: Opening remarks: digital journey and ICICI STACK
were working from home during the lockdown period and continue to do so. There is an ongoing thorough risk assessment for augmenting IT security controls and addressing any gaps and potential threats in the current working arrangement. ATMs across the country remain operational with an average uptim
Slide 75: Opening remarks: Covid-19 support and core operating profit
ensure the safety of our people and continuity of our business operations. In our effort to support the nation in its fight against the Covid-19 outbreak, the ICICI Group has committed a sum of 1 billion Rupees, including 800 million Rupees to the PM Cares Fund. ICICI Bank and ICICI Foundation have
Slide 76: Opening remarks: deposits, loan growth and asset quality
increase post March 31. The deposit flows and costs are reflected in the progressive reductions in our MCLR. The loan growth was impacted in March due to Covid-19. The domestic loan book grew by 12.9% year-on-year at March 31, 2020 driven by retail loans, which grew by 15.6% year-on-year. The overse
Slide 77: Opening remarks: overseas strategy and provisions
Non-resident Indians for deposits and remittances businesses, with digital and process decongestion as a key enabler; Deepening relationships with well-rated Indian corporates in international markets, subject to our risk management framework; Deepening relationships with MNCs and funds for ma
Slide 78: Opening remarks: outlook and portfolio assessment
The Bank has undertaken a detailed analysis of its loan portfolio to assess the potential impact of the pandemic and economic disruption. As you would appreciate, we are currently in a period of high uncertainty and any outlook necessarily involves a range of assumptions around constantly evolving v
Slide 79: Opening remarks: ESG
franchise. Overall the Bank is well positioned to serve risk calibrated opportunities that would arise in the coming times. At ICICI Bank, we are committed to building a sustainable and responsible business and creating a positive impact on the economy, society and the environment. We have a Board-
Slide 80: Mr. Jha's remarks: loan and deposit growth
Mr. Jha’s remarks Thank you, Sandeep. A. Loan and deposit growth The overall loan portfolio grew by 10.0% year-on-year as of March 31, 2020. The domestic loan growth was 12.9% year-on- year as of March 31, 2020 driven by a 15.6% year-on-year growth in the retail business. Within the retail portfolio
Slide 81: Remarks: funding and credit quality
commercial banking needs of its corporate clients, including foreign exchange and derivatives, trade finance, payments and collections, as well as tapping opportunities across corporate ecosystems, including the supply chain and the employees. Coming to the funding side: We continue to focus on grow
Slide 82: Remarks: NPA movement and coverage
comprise the oil trading company and the healthcare group that Sandeep mentioned earlier. The provision coverage ratio, excluding write-offs continues to remain healthy at 75.7% as of March 31, 2020 Recoveries and upgrades excluding write-offs were 18.83 billion in the current quarter. There were re
Slide 83: Remarks: BB and below portfolio
holds provisions of 11.82 billion Rupees as of March 31, 2020 against this non-fund based outstanding The fund and non-fund based outstanding to borrowers under RBI resolution schemes was 15.33 billion Rupees as of March 31, 2020 compared to 38.94 billion Rupees as of December 31, 2019 The fund
Slide 84: Remarks: moratorium and Covid-19 provisions
There were rating upgrades to the investment grade categories and a net decrease in outstanding of 12.97 billion Rupees in Q4 of 2020. Lastly, there was a reduction of 17.26 billion Rupees in Q4 of 2020 due to slippage of some borrowers into the non- performing category and devolvement of non-fu
Slide 85: Remarks: provisions and P&L details
granted. Loans that were overdue more than 90 days at March 31 but have not been classified as non-performing were 13.09 billion Rupees. The impact of classification of these loans as non- performing on the gross NPA ratio at March 31, 2020 would have been 18 basis points. On these loans, the Bank h
Slide 86: Remarks: margins and non-interest income
income tax refund and interest collections from NPAs was about 4 basis points this quarter compared to 10 basis points in Q3 of 2020. The domestic NIM was at 4.14% in Q4 of 2020 compared to 4.04% in Q3 of 2020 and 4.12% in Q4 of 2019. International margins were at 0.28% in Q4 of 2020. Non-interest i
Slide 87: Remarks: expenses and operating profit
14.4% year-on-year in Q4 of 2020. The Bank had 99,319 employees at March 31, 2020. The provisions on retirals and other employee benefits have increased during this quarter due to decline in yields the current quarter compared to Q4 of 2019. For FY2020, employee expenses increased by 21.5% year-on-
Slide 88: Remarks: profit and capital
The profit before tax was 14.23 billion Rupees in Q4 of 2020 compared to 7.82 billion Rupees in Q4 of 2019. The profit after tax was 12.21 Rupees in Q4 of 2020 compared to 9.69 billion Rupees in Q4 of the previous year. The profit after tax was 79.31 billion Rupees in FY2020 compared to 33.63 billio
Slide 89: Remarks: retail underwriting and credit models
asset relationships, transaction behaviour and bureau behaviour along with proprietary machine learning/statistical models for credit decisioning. The Bank also leverages on the strong analytical capabilities for finer risk segmentation of customers based on internally developed scorecards and model
Slide 90: Remarks: mortgage and vehicle loans
on the value of collateral. The valuation of the property is carried out internally. The average loan-to-value ratio of the loan against property loan portfolio is about 55%. Auto loans and commercial business loans, which includes commercial vehicle financing, account for 5% and 4% of the overall p
Slide 91: Remarks: rural and business banking portfolios
segment are only marginally higher than the rest of the portfolio. This can be attributed to conservative underwriting norms in terms of higher income cut offs, lower leverage norms, loan caps, etc. The self-employed segment in these portfolios is about 15% and while this segment could be more impac
Slide 92: Remarks: SME and international portfolio
The SME portfolio comprising exposures to companies with a turnover of upto 2.50 billion Rupees was 3% of total loans. In the past, the Bank has experienced high NPLs in this portfolio. In recent years, the Bank has reoriented its strategy in this portfolio towards granularity, collateral security a
Slide 93: Remarks: builder, NBFC and HFC portfolio
The builder portfolio including construction finance, lease rental discounting, term loans and working capital loans was 223.18 billion Rupees or about 3% of our total loan portfolio. The real estate sector had been under stress even before the outbreak of Covid-19 due to slow sales, cash flow misma
Slide 94: Remarks: corporate portfolio approach
letters of credit and bank guarantees has declined over the last four years while the total advances of the Bank have grown by a CAGR of about 10%. The outstanding amount of letters of credit and bank guarantees was about 22% of the total advances as of March 31, 2020, compared to 34% at March 31, 2
Slide 95: Remarks: exposure shift and pandemic analysis
Shift from non-fund to fund-based exposure, even as we continue to consider all types of exposures for our risk assessment and limits; and Sell-down/ syndication of originations to other market participants. Over the last two years, our focus has shifted further from loan growth to serving the e
Slide 96: Remarks: portfolio provisioning analysis
In the rural portfolio, the analysis was based primarily on assumptions of drop in collection efficiency. For the SME and business banking portfolios, factors such as collateral, industry, location and other credit markers were considered. For the corporate portfolio, the Bank has conducted a
Slide 97: F. Subsidiaries
F. Subsidiaries The details of the financial performance of subsidiaries is covered in slides 38 to 39 and 65 to 70 in the investor presentation. I will briefly talk about the major highlights of the unlisted subsidiaries. The profit after tax of ICICI AMC was 2.17 billion Rupees in the current quar
Slide 98: Remarks: overseas subsidiaries and conclusion
The focus for the overseas subsidiaries is similar to that for the branches, primarily around NRI and India-related opportunities. The non-India corporate portfolio of the subsidiaries has reduced over the last one year, and we are working on a further planned reduction going forward. ICICI Home Fin