Indian Overseas Bank · NSE:IOB
Indian Overseas Bank — Q4 FY2019-20 Earnings Presentation
48 slides from Indian Overseas Bank's earnings presentation, Jun 26, 2020
Slide 1: Indian Overseas Bank Performance Analysis Q4/FY 2019-20
इण्डियन ओवरसीज़ बैंक Indian Overseas Bank PERFORMANCE ANALYSIS Q4/FY 2019-20 25.06.2020
Slide 2: Index
INDEX CORE STRENGTHS OF THE BANK PERFORMANCE HIGHLIGHTS FINANCIAL PERFORMANCE BUSINESS PERFORMANCE & INITIATIVES NPA MANAGEMENT CAPITAL ADEQUACY COVID-19 MEASURES FINANCIAL INCLUSION & CUSTOMER SERVICE DIGITAL INITIATIVES Performance Analysis Q4/FY 2019-20
Slide 3: Core Strengths of the Bank
CORE STRENGTHS OF THE BANK 83 Years of Banking Excellence Strong Presence: 3270 Branches, 3032-ATMs, 2795-BCs, 4 overseas Branches Robust Rural & Semi-Urban Branch Network Trust of 37 Million Active Customers Strong Digital Capabilities Dedicated & Skilled Workforce of 24857 numbers Performance Anal
Slide 4: Performance Highlights
PERFORMANCE HIGHLIGHTS Performance Analysis Q4/FY 2019-20
Slide 5: Performance Highlights: Business and Asset Quality
PERFORMANCE HIGHLIGHTS Rs in Crore GNPA NNPA FY 18-19 FY 19-20 Y-o-Y(%) Gross NPA 33398 19913 -40.38 Quality Net NPA 14368 6603 -54.05 Asset FY18-19 FY19-20 FY18-19 FY19-20 GNPA% 21.97 14.78 (719 bps) NNPA% 10.81 5.44 (537 bps) CASA CASA% FY 18-19 FY 19-20 Y-o-Y(%) CASA 85227 89751 5.31 FY18-19 FY19
Slide 6: Performance Highlights: Profitability and Key Ratios
PERFORMANCE HIGHLIGHTS Rs in Crore FY 18-19 FY 19-20 Y-o-Y(%) Q3 19-20 Q4 19-20 Q-o-Q(%) PCR 71.39 86.94 1555 bps 86.20 86.94 74 bps Ratios Capital Adequacy 10.21 10.72 51 bps 10.43 10.72 29 bps Key Cost to Income Ratio 46.93 59.21 1228 bps 64.12 54.43 (969 bps) ROA -1.35 -2.95 -8.37 0.20 FY 18-19 F
Slide 7: Financial Performance
FINANCIAL PERFORMANCE Performance Analysis Q4/FY 2019-20
Slide 8: Financials - At a Glance
FINANCIALS- AT A GLANCE Rs. in Crore Quarter Ended Year Ended Growth % Q4 19-20 Q4 19-20 FY 19-20 Particulars Q4 18-19 Q3 19-20 Q4 19-20 FY 18-19 FY 19-20 OVER OVER OVER Q3 19-20 Q4 18-19 FY 18-19 Interest Income 4556 4352 4442 17631 17406 2.07 -2.51 -1.28 Interest Expenses 3077 3073 2910 12352 1210
Slide 9: Total Income
TOTAL INCOME Rs. in Crore Quarter Ended Year Ended Growth % Q4 19-20 Q4 19-20 FY 19-20 Particulars Q4 18-19 Q3 19-20 Q4 19-20 FY 18-19 FY 19-20 OVER OVER OVER Q3 19-20 Q4 18-19 FY 18-19 Interest on Loans 2930 2868 2848 11727 11513 -0.70 -2.81 -1.83 Interest on Investment 1215 1346 1398 4922 5208 3.8
Slide 10: Total Expenses
TOTAL EXPENSES Rs. in Crore Quarter Ended Year Ended Growth % Q4 19-20 Q4 19-20 FY 19-20 Particulars Q4 18-19 Q3 19-20 Q4 19-20 FY 18-19 FY 19-20 OVER OVER OVER Q3 19-20 Q4 18-19 FY 18-19 Interest on Deposits 2931 2932 2795 11548 11571 -4.69 -4.67 0.19 Interest on Borrowings 146 141 116 804 533 -17.
Slide 11: Provisions & Profit
PROVISIONS & PROFIT Rs. in Crore Quarter Ended Year Ended Growth % Q4 19-20 Q4 19-20 FY 19-20 Particulars Q4 18-19 Q3 19-20 Q4 19-20 FY 18-19 FY 19-20 OVER OVER OVER Q3 19-20 Q4 18-19 FY 18-19 Operating Profit 1132 762 1197 5034 3534 57.04 5.80 -29.80 Provisions 3117 6838 1053 8772 12061 -84.59 -66.
Slide 12: Performance Ratios - Quarterly
PERFORMANCE RATIOS- QUARTERLY Cost of Deposits Yield on Advances 5.40 5.41 5.37 5.37 7.13 7.22 6.95 6.96 6.93 5.17 Mar 19 June 19 Sept 19 Dec 19 Mar-20 Mar 19 June 19 Sept 19 Dec 19 Mar-20 Cost to Income Ratio Net Interest Margin 2.31 2.30 64.12 61.79 57.72 2.01 54.43 1.94 52.78 1.86 Mar 19 June 19
Slide 13: Business Performance & Initiatives
BUSINESS PERFORMANCE & INITIATIVES Performance Analysis Q4/FY 2019-20
Slide 14: Business Performance - Global
BUSINESS PERFORMANCE- GLOBAL Rs. in Crore Particulars Mar-19 Dec-19 Mar-20 Y-o-Y(%) Q-oQ(%) CASA 85227 86530 89751 5.31 3.72 a)Retail Term Deposits 105285 108405 112265 6.63 3.56 b)Bulk Deposits 28284 22540 17092 -39.57 -24.17 c)Overseas Term Deposits 3738 3815 3844 2.84 0.77 Term Deposits (a+b+c) 1
Slide 15: Deposits Composition
DEPOSITS COMPOSITION Rs. in Crore Y-o-Y variation Q-o-Q variation Parameters Mar-19 Dec-19 Mar-20 Amount % Amount % Domestic-Deposits Savings Bank 70493 71962 75374 4882 6.92 3413 4.74 Current Account 13901 13609 13297 -604 -4.34 -312 -2.29 CASA 84394 85570 88671 4278 5.07 3101 3.62 Term Deposits (T
Slide 16: Risk Spread - Assets
RISK SPREAD- ASSETS Rs. in Crore Domestic Share of Advances MAR-19 MAR-20 Corporate/ Corporate/o Retail Retail others thers 21% 26% 24% 33% Agri 23% MSME 24% Agri MSME 26% 23% Y-o-Y Growth Q-o-Q Growth Parameters Mar-19 Dec-19 Mar-20 Amount % Amount % Retail 31588 31336 32876 1288 4.08 1541 4.92 Agr
Slide 17: Retail Performance
RETAIL PERFORMANCE Rs. in Crore RETAIL ADVANCES BREAKUP - MARCH-20 Domestic Retail Other FY % Share Retail Advance Advance loans, 27.09% Home, 46.34% Mar'17 142651 23887 16.75% Clean, 2.73% Mar ’18 138516 28183 20.35% Auto, Mar ’19 146001 31588 21.64% 9.37% Education, 14.48% Mar-20 127336 32876 25.8
Slide 18: Priority Sector Advances - Overview
PRIORITY SECTOR ADVANCES - OVERVIEW Rs. in Crore Priority sector % of 51.33% 49.48% Financial Year Achievement achievement 47.47% 40.33% 2016-17 63984 40.33% (Avg of 4 Qtrs) 75390 76135 2017-18 70040 70040 47.47% 63984 (Avg of 4 Qtrs) 2018-19 75390 51.33% (Avg of 4 Qtrs) 2019-20 2016-17 2017-18 2018
Slide 19: Agriculture Advance Performance
AGRICULTURE ADVANCE PERFORMANCE Rs. in Crore Agricultural Advances - Oustanding Core Agricultural Advances - Y-o-Y Growth 2594 33340 33136 29438 30820 1793 958 9.53% 6.01% 31610 3.65% 26265 27223 29817 2016-17 2017-18 2018-19 2019-20 2016-17 2017-18 2018-19 2019-20 -5.88% Outstanding Total Agri Adv.
Slide 20: Agri Advances - Priority Sector
AGRI ADVANCES – PRIORITY SECTOR Rs. in Crore 34000 23% 29851 31045 31107 31000 21% 28865 21.14% 20.22% 28585 20.23% 20% 27698 28000 26561 26438 18.18% 18% 25000 17% 22000 15% 2016-17 2017-18 2018-19 2019-20 (Avg of 4 Qtrs) (Avg of 4 Qtrs) (Avg of 4 Qtrs) (Avg of 4 Qtrs) Target Achievement Amount Ach
Slide 21: MSME
MSME Rs in Crores Gross MSME Share of MSME on Domestic Advances FY % Share Domestic Advance 34000 32000 23.55% 23.99% 25.00% 24.00% Mar'17 142651 30564 21.43% 30000 22.71% 28000 23.00% 26000 21.43% 22.00% Mar’18 138516 32615 23.55% 24000 22000 30564 32615 33164 30548 21.00% Mar‘19 146001 33164 22.71
Slide 22: Investments
INVESTMENTS Rs. in Crore Global Investments 79887 82029 72248 70263 69209 Mar-17 Mar-18 Mar-19 Dec-19 Mar-20 Parameters Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Domestic Investments 65380 67031 76159 76221 78358 SLR 47858 49073 54642 53792 51162 Non SLR 17522 17958 21518 22429 27196 Held to Maturity 45975
Slide 23: The Year of Resurgence - Initiatives & Outcome
THE YEAR OF RESURGENCE- INITIATIVES & OUTCOME Objectives Focus Areas • Mobilization of low cost Deposits • CASA • Credit expansion by low risk advances • Home Loan • Management of NPA • Jewel Loan • Increase in Interest Income • NPA Recovery Performance Rs in crore CASA HOME LOAN JEWEL LOAN NNPA 201
Slide 24: Strategic Business Initiatives
STRATEGIC BUSINESS INITIATIVES MSME High Specialized Remodeling of Asset Recovery Intensive Large Organisational Retail Marts & Management Branches Corporate Structure Branches Branches Strengthening & LCBs at Adoption of MSME high centralisation of Mumbai & three tier Revamping of Intensive Special
Slide 25: NPA Management
NPA MANAGEMENT Performance Analysis Q4/FY 2019-20
Slide 26: NPA Management
NPA MANAGEMENT Rs. in Crore FY FY Details Q4 18-19 Q1 19-20 Q2 19-20 Q3 19-20 Q4 19-20 18-19 19-20 i) Opening Gross NPAs 35787 33398 33262 28674 23734 38180 33398 a. Cash Recoveries 635 483 552 872 756 3673 2664 b. Upgradation 446 431 291 298 227 1452 1247 c. Write-Offs 2701 1171 5689 5554 3994 7683
Slide 27: Segmental NPAs
SEGMENTAL NPAS Rs. in Crore Mar-19 Dec-19 Mar-20 Segmental NPAs NPA Ratio % NPA Ratio % NPA Ratio % Retail 840 2.66 819 2.61 793 2.41 Agri 3733 11.20 2577 7.74 2428 7.33 MSME 5178 15.61 3565 11.24 3257 10.66 Corporate/Others 22664 47.31 15415 42.58 12206 39.66 Overseas 983 16.39 1034 16.98 1228 16.5
Slide 28: Movement of NPA
MOVEMENT OF NPA GNPA NNPA 21.97 22.53 10.81 11.04 20.00 9.84 16.89 14.78 5.81 5.44 Mar-19 Jun-19 Sept-19 Dec-19 Mar-20 Mar-19 Jun-19 Sept-19 Dec-19 Mar-20 PCR 86.20 86.94 75.85 71.39 72.24 Mar-19 Jun-19 Sept-19 Dec-19 Mar-20 Performance Analysis Q4/FY 2019-20 Page 28
Slide 29: Capital Adequacy
CAPITAL ADEQUACY Performance Analysis Q4/FY 2019-20
Slide 30: Capital Conservation
CAPITAL CONSERVATION Rs. in Crore Dec-19 Particulars Mar-19 Jun-19 Sep-19 Pre Capital Post Capital Mar-20 Infusion Infusion Market Risk RWA 11944 11320 11950 12938 12938 12316 Operational Risk RWA 15779 16642 16642 16642 16642 16642 Credit Risk RWA 94862 93196 91846 84890 86814 84680 Total RWA (A) 1
Slide 31: Movement of RWA & CRAR
MOVEMENT OF RWA & CRAR 11.86% 10.21% 10.43% 10.72% 10.02% 5.53% Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 CRAR CRAR Post Infusion RWA to Advance Ratio 84.02% 84.32% 82.56% 82.08% 80.65% Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 RWA to Advance Ratio Performance Analysis Q4/FY 2019-20 Page 31
Slide 32: COVID 19-Measures
COVID 19-MEASURES Performance Analysis Q4/FY 2019-20
Slide 33: COVID-19 Measures
COVID-19 -MEASURES 1. Protective Measures i.e. Social Distancing, wearing of masks, gloves, use of hand sanitizers Health etc ensured Protection 2. Regular Sanitization & Fumigation measures Measures ensured at all the centers. 3. Adherence to COVID-19 guidelines issued by Govt from time to time. 1.
Slide 34: COVID-19 Measures
COVID-19 MEASURES 1. IOB Employees donated Rs.6.93 crore to PM Caring For Cares Fund & Rs.2 crore to Tamilnadu-CM Society Relief Fund 1. Line of Support for MSME(CLSM) New Product 2. WCDL for Corporate Borrowers Initiative 3. IOB Insta Pension Loan for Pensioners 4. IOB Support Scheme for SHGs 1. Im
Slide 35: Financial Inclusion & Customer Service
FINANCIAL INCLUSION & CUSTOMER SERVICE Performance Analysis Q4/FY 2019-20
Slide 36: Financial Inclusion
FINANCIAL INCLUSION No. of PMJDY A/Cs Outstanding in PMJDY A/Cs in Rs.cr 5051924 1266 4849392 1117 818 757 4387956 4261330 Mar-17 Mar-18 Mar-19 Mar-20 Mar-17 Mar-18 Mar-19 Mar-20 No. of Zero Balance PMJDY A/Cs Jansuraksha & APY Enrolments 2545145 2657039 1155960 2439562 2473384 947769 1014385 741608
Slide 37: Customer Service
CUSTOMER SERVICE Lodge complaint in our website – www.iob.in and Door-Step Banking track the Door step banking for Senior citizen complaints. You can and differently abled person is being lodge complaint by done through Branches where BCs calling our Toll Free are available. Number 1800 425 4445 Pho
Slide 38: Digital Initiatives
DIGITAL INITIATIVES Performance Analysis Q4/FY 2019-20
Slide 39: New Mobile Banking App
NEW MOBILE BANKING APP SELF REGISTRATION, BIOMETRIC, M-PASSBOOK, VOICE ASSIST Performance Analysis Q4/FY 2019-20 Page 39
Slide 40: Digital Products
DIGITAL PRODUCTS Performance Analysis Q4/FY 2019-20 Page 40
Slide 41: Merchant Payment
MERCHANT PAYMENT QR is linked to the beneficiary account number. Customer can scan the QR code of account of any bank using UPI. After scanning for payment the customer a/c will be debited and BHIM IOB UPI the merchant account will be credited. Online fees collection can be provided to schools
Slide 42: Revamped Website
BANK HAS REVAMPED ITS WEB SITE WWW.iob.in WITH NEW DESIGN, TRENDY OUTLOOK WITH ENHANCED CUSTOMER FRIENDLY FEATURES Performance Analysis Q4/FY 2019-20 Page 42
Slide 43: Awards
AWARDS Performance Analysis Q4/FY 2019-20 Page 43
Slide 44: Customer Touch Point
CUSTOMER TOUCH POINT BRANCH NETWORK- MAR 2020 ATM NETWORK- MAR 2020 Metro, 728, Rural, 678, Metro, Rural, 912, 22% 22% 718, 24% 28% Urban, 670, 21% Urban, Semi 677, 22% Urban, Semi Urban, 959, 32% 960, 29% Details Mar-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Branches 3332 3280 3274 3272 3270 3270 ATM 3
Slide 45: Global Footprints - Foreign Branches
GLOBAL FOOT PRINTS- FOREIGN BRANCHES Overseas Branches Singapore HongKong Colombo Bangkok JV Subsidiary Malaysia Remittance Centre Singapore-Serangoon Road Joint Venture in Malaysia: Joint Venture with Bank of Baroda (40%) and Andhra Bank (25%) with IOB share of 35% Performance Analysis Q4/FY 2019-2
Slide 46: Strategic Investments - Joint Venture
STRATEGIC INVESTMENTS – JOINT VENTURE IOB entered into Non Life Insurance Business with Universal Sompo General Insurance (USGI) Company Limited with equity participation of 18% along with the other Banks and Institutions Shareholding Shareholding % Name of Entity Investment % 6.00% 12.81% 18.06% In
Slide 47: Disclaimer
DISCLAIMER Except for the historical information contained herein, statements in this release which contain words or phrases such as “will”, “aim”, “will likely result”, “would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”, “plan”, “contemplate”, “seek to”, “fut
Slide 48: Thank You
Thank You visit us @ https://www.iob.in Performance Analysis Q4/FY 2019-20
Indian Overseas Bank — Q4 FY2019-20 Earnings Presentation on 6ix