Indian Overseas Bank · NSE:IOB

Indian Overseas Bank — H1 2020-21 Earnings Presentation

43 slides from Indian Overseas Bank's earnings presentation, Nov 6, 2020

  1. Slide 1: Performance Analysis Q2/H1 2020-21

    इण्डियन ओवरसीज़ बैंक Indian Overseas Bank PERFORMANCE ANALYSIS Q2/H1 2020-21 06.11.2020

  2. Slide 2: Index

    INDEX PERFORMANCE HIGHLIGHTS FINANCIAL PERFORMANCE BUSINESS PERFORMANCE NPA MANAGEMENT CAPITAL ADEQUACY COVID-19 RESPONSE FINANCIAL INCLUSION & CUSTOMER SERVICE DIGITAL INITIATIVES Performance Analysis Q2/H1 2020-21

  3. Slide 3: Performance Highlights

    PERFORMANCE HIGHLIGHTS Performance Analysis Q2/H1 2020-21

  4. Slide 4: Performance Highlights: Business Growth and Profitability

    PERFORMANCE HIGHLIGHTS Rs in Crore Sep-20 Y-o-Y(%) Q-o-Q (%) BUSINESS GROWTH ROBUST RETAIL CASA 92436 9.27 -0.08 CASA % 40.26% 220 bps (76 bps) RTD 123338 14.08 5.41 HOME LOAN 16145 11.20 5.97 JEWEL LOAN 21869 27.93 14.83 RAM to Domestic % 78.11% 725 bps 271 bps Sep-20 Y-o-Y(%) Q-o-Q (%) SUSTAINABIL

  5. Slide 5: Performance Highlights: Asset Quality and Financial Indicators

    PERFORMANCE HIGHLIGHTS Rs in Crore ASSET QUALITY Sep-20 Y-o-Y(%) Q-o-Q (%) IMPROVING Gross NPA 17660 -38.41 -3.45 Net NPA 5290 -57.71 -13.01 GNPA% 13.04% (696 bps) (86 bps) NNPA% 4.30% (554 bps) (80 bps) Sep-20 Y-o-Y(%) Q-o-Q (%) STRENGTHENIN G FINANCIAL INDICATORS PCR 89.36% 1351 bps 139 bps Capita

  6. Slide 6: Financial Performance

    FINANCIAL PERFORMANCE Performance Analysis Q2/H1 2020-21

  7. Slide 7: Financials - At a Glance

    FINANCIALS- AT A GLANCE Rs. in Crore Quarter Ended Half Year Ended Growth % Sept-20 Sept-20 Particulars H1 FY 21 Over Over Sept-19 Jun-20 Sept-20 H1 FY 20 H1 FY 21 Over Jun-20 Sept-19 H1 FY 20 (Q-o-Q) (Y-o-Y) Interest Income 4276 4302 4363 8612 8664 1.4 2.0 0.6 Interest Expenses 3072 2890 2801 6120

  8. Slide 8: Total Income

    TOTAL INCOME Rs. in Crore Quarter Ended Half Year Ended Growth % Sept-20 Sept-20 H1 FY 21 Particulars Over Over Sept-19 Jun-20 Sept-20 H1 FY 20 H1 FY 21 Over Jun-20 Sept-19 H1 FY 20 (Q-o-Q) (Y-o-Y) Interest on Loans 2840 2782 2847 5797 5629 2.4 0.3 -2.9 Interest on Investment 1264 1422 1437 2463 285

  9. Slide 9: Total Expenses

    TOTAL EXPENSES Rs. in Crore Quarter Ended Half Year Ended Growth % Sept-20 Sept-20 H1 FY 21 Particulars Over Over Sept-19 Jun-20 Sept-20 H1 FY 20 H1 FY 21 Over Jun-20 Sept-19 H1 FY 20 (Q-o-Q) (Y-o-Y) Interest on Deposits 2940 2776 2696 5844 5471 -2.9 -8.3 -6.4 Interest on Borrowings 132 114 106 276

  10. Slide 10: Provisions & Profit

    PROVISIONS & PROFIT Rs. in Crore Quarter Ended Half Year Ended Growth % Sept-20 Sept-20 H1 FY 21 Particulars Over Over Sept-19 Jun-20 Sept-20 H1 FY 20 H1 FY 21 Over Jun-20 Sept-19 H1 FY 20 (Q-o-Q) (Y-o-Y) Operating Profit 746 1094 1346 1574 2440 23.0 80.5 55.0 Provisions 3000 973 1198 4170 2172 23.1

  11. Slide 11: Performance Ratios - Quarterly

    PERFORMANCE RATIOS- QUARTERLY Cost of Deposits Yield on Advances 6.95 6.96 6.96 5.41 5.37 6.93 5.17 4.99 4.80 6.75 Sept-19 Dec 19 Mar-20 June 20 Sep-20 Sept 19 Dec 19 Mar-20 June 20 Sep-20 Cost to Income Ratio Net Interest Margin 64.12 61.79 54.43 2.30 2.27 53.32 2.08 48.80 1.86 1.94 Sept 19 Dec 19

  12. Slide 12: Business Performance

    BUSINESS PERFORMANCE Performance Analysis Q2/H1 2020-21

  13. Slide 13: Business Performance - Global

    BUSINESS PERFORMANCE- GLOBAL Rs. in Crore Particulars Sept-19 Jun-20 Sept-20 Y-o-Y(%) Q-oQ(%) CASA 84595 92514 92436 9.27 -0.08 a)Retail Term Deposits 108112 117011 123338 14.08 5.41 b)Bulk Deposits 25728 12665 10523 -59.10 -16.92 c)Overseas Term Deposits 3823 3356 3310 -13.40 -1.35 Term Deposits (a

  14. Slide 14: Deposits Composition

    DEPOSITS COMPOSITION Rs. in Crore Y-o-Y variation Q-o-Q variation Parameters Sept-19 Jun-20 Sept-20 Amount % Amount % Domestic-Deposits Savings Bank 70398 78105 78758 8360 11.88 653 0.84 Current Account 13274 13420 12628 -646 -4.87 -792 -5.90 CASA 83672 91525 91386 7714 9.22 -139 -0.15 Term Deposits

  15. Slide 15: Risk Spread - Assets

    RISK SPREAD- ASSETS Rs. in Crore Domestic Share of Advances SEPT-19 SEPT-20 Corporate MSME Corporate MSME /others 23% /others 24% 22% 29% Agri Retail 25% Agri 27% Retail 27% 23% Y-o-Y Growth Q-o-Q Growth Parameters Sept-19 Jun-20 Sept-20 Amount % Amount % Retail 31341 32052 34101 2760 8.81 2050 6.39

  16. Slide 16: Retail Performance

    RETAIL PERFORMANCE Rs. in Crore RETAIL BREAK UP SEPT-20 Period Domestic Retail % Share Others , Sep-19 137436 31341 22.80% 26.35% Clean, Mar-20 127336 32876 25.82% 2.83% Home, 47.34% Jun-20 123542 32052 25.94% Education , 14.25% Sep-20 127551 34101 26.74% Auto, 9.23% RETAIL BREAK UP-Sept 20 Share of

  17. Slide 17: Agriculture Advance Performance

    AGRICULTURE ADVANCE PERFORMANCE Rs. in Crore Share of Agriculture on Domestic Advances 35000 28.00% 27.06% 34500 34000 26.27% 27.00% 26.02% 33500 26.00% 33000 24.58% 25.00% 32500 32000 24.00% 31500 33788 33136 32454 34512 31000 23.00% Sep-19 Mar-20 Jun-20 Sep-20 AGRI Advance % Share to Domestic Adva

  18. Slide 18: Agri Advances - Priority Sector

    AGRI ADVANCES – PRIORITY SECTOR Rs. in Crore Priority Sector Achievements 33000 20.22% 32127 20.25% 32000 31107 20.20% 31000 30000 20.15% 28794 29000 27698 20.10% 28000 20.08% 27000 20.05% 26000 25000 20.00% 2019-20 (Avg of 4 Qtrs) Sep-20 Target (18% of ANBC) Achievement Amount Achievement % Target

  19. Slide 19: MSME

    MSME Rs in Crores Share of MSME on Domestic Advances 35000 24.31% 24.50% Domestic MSME 23.99% Period % Share 30000 Advance Advance 24.00% 23.47% Sep-19 137436 32259 23.47%25000 23.18% 23.50% Mar-20 127336 30548 23.99%20000 23.00% Jun-20 123542 28643 23.18% 32259 30548 28643 31014 15000 22.50% Sep-20

  20. Slide 20: Investments

    INVESTMENTS Rs. in Crore Global Investments 94960 86038 82029 79697 79887 Sept-19 Dec-19 Mar-20 Jun-20 Sept-20 Parameters Sept-19 Dec-19 Mar-20 Jun-20 Sept-20 Domestic Investments 76159 76221 78358 82528 91497 SLR 54642 53792 51162 54485 63932 Non SLR 21518 22429 27196 28043 27565 Held to Maturity 5

  21. Slide 21: NPA Management

    NPA MANAGEMENT Performance Analysis Q2/H1 2020-21

  22. Slide 22: NPA Management

    NPA MANAGEMENT Rs. in Crore Details Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 i) Opening Gross NPAs 33262 28674 23734 19913 18291 a. Cash Recov eries 552 872 756 150 325 b. Upgradation 291 298 227 45 87 c. Write-Offs 5689 5554 3994 1774 58 d. Sale to ARCs 13 183 194 0 0 e. Other Reductions 0 3 0 0 34 ii) T

  23. Slide 23: Segmental NPAs

    SEGMENTAL NPAS Rs. in Crore Sept-19 Jun-20 Sept-20 Segmental NPAs NPA Ratio % NPA Ratio % NPA Ratio % Retail 959 3.06 763 2.38 748 2.19 Agri 3494 10.34 2273 7.00 2368 6.86 MSME 4745 14.71 2611 9.12 2556 8.24 Corporate 18425 46.01 11294 37.16 10637 38.09 Overseas 1051 17.77 1350 16.83 1351 17.06 Tota

  24. Slide 24: Movement of NPA

    MOVEMENT OF NPA GNPA NNPA 20.00 9.84 16.89 14.78 13.90 13.04 5.81 5.44 5.10 4.30 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 PCR 87.97 89.36 86.20 86.94 75.85 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Performance Analysis Q2/H1 2020-21 Page 24

  25. Slide 25: Capital Adequacy

    CAPITAL ADEQUACY Performance Analysis Q2/H1 2020-21

  26. Slide 26: Capital Conservation

    CAPITAL CONSERVATION Rs. in Crore Particulars Sep-19 Mar-20 Jun-20 Sep-20 Market Risk RWA 11950 12316 14010 15467 Operational Risk RWA 16642 16642 13217 13217 Credit Risk RWA 91846 84680 84889 82831 Total RWA (A) 120438 113638 112115 111515 CET 1 11077 9329 9397 9325 CET 1% 9.20% 8.21% 8.38% 8.36% T

  27. Slide 27: Movement of RWA & CRAR

    MOVEMENT OF RWA & CRAR Performance Analysis Q2/H1 2020-21 Page 27

  28. Slide 28: COVID-19 Response

    COVID-19 RESPONSE Performance Analysis Q2/H1 2020-21

  29. Slide 29: COVID-19 Response - Credit Off Take

    COVID-19 RESPONSE- CREDIT OFF TAKE Segment wise Credit Sanction and disbursment since 01.03.2020 to 30.09.2020 Sanction Disbursed Amount Amount Segment Account (in Cr) Account (in Cr) MSME 287551 7723 286196 4476 Retail 160964 5859 159405 4191 Agriculture 1227833 21263 1226609 13417 Corporate 105 66

  30. Slide 30: COVID-19 Response - Reviving Credit Growth

    COVID-19 RESPONSE- REVIVING CREDIT GROWTH Month-wise YoY Growth SANCTIONS DISBURSEMENT AGRI 29.2 35.8 21.6 17.1 4.5 3.9 -4.0 -4.6 -13.2 -9.5 -19.4 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 -43.3 -25.4 -66.9 MSME 64.1 85.0 91.5 93.5 34.2 64.9 25

  31. Slide 31: Financial Inclusion & Customer Service

    FINANCIAL INCLUSION & CUSTOMER SERVICE Performance Analysis Q2/H1 2020-21

  32. Slide 32: Financial Inclusion

    FINANCIAL INCLUSION No of PMJDY Accounts PMJDY Account Balance (No. in Lakhs) (Amount in Rs. Crs) 52.00 1742 51.67 1612 1192 1266 50.52 49.94 Sep-19 Mar-20 Jun-20 Sep-20 Sep-19 Mar-20 Jun-20 Sep-20 PMJDY Zero Balance Account Jansuraksha & APY Enrolments ( No. in Lakhs) (No. in Lakhs) 9.82 9.86 31.2

  33. Slide 33: Customer Service

    CUSTOMER SERVICE PSB alliance DSB  Door Step Banking Phone Banking enabled in select 100 IVRS Phase II is on centres for non financial the move with transactions. additional facilities and  Customers can lodge complaint in made available Banks’ website – www.iob.in and through track the complaints

  34. Slide 34: Digital Initiatives

    DIGITAL INITIATIVES Performance Analysis Q2/H1 2020-21

  35. Slide 35: Digital Platforms

    DIGITAL PLATFORMS Performance Analysis Q2/H1 2020-21 Page 35

  36. Slide 36: Home and Mobile Banking

    HOME AND MOBILE BANKING New Mobile banking application with improved user experience Self-Registration of Mobile banking without visiting Branch Login in using Bio metric option for enhanced security and access mPassbook facility to view and download statements Term Deposit Opening , Renewal , Closu

  37. Slide 37: Home and Mobile Banking

    HOME AND MOBILE BANKING Internet Banking with improved user experience Fund Transfer (Intra Bank, Inter Bank (IMPS/NEFT) with scheduled transactions. Customers can do IP Restrictions , use digital signature for secure access. Term Deposit Opening , Renewal , Closure, etc. With 15G/15H submission opt

  38. Slide 38: ADC Channels

    ADC CHANNELS As on 30.09.2020 No of Users (In Lakhs) Customer Mobile Banking Registered users 30.82 Touch Points Internet Banking Registered users 21.35 UPI Registered Users 32.21 ATMs/CDMs (No of outlet) 3114 ADC CHANNELS Transcation 01.07.2020 to 30.09.2020 Particulars No. Amt (in Rs Crore) ATM (O

  39. Slide 39: 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 the BHIM IOB UPI/QR merchant account will be credited. IOB Pay is an integrated payment system through

  40. Slide 40: 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 12.81% % 18.06% 6.00% In

  41. Slide 41: Customer Touch Points

    CUSTOMER TOUCH POINTS Domestic Presence Mar-20 Sep-20 Global Foot Prints Overseas Branches 3270 3221 Singapore Hong Kong Colombo Bangkok Branches JV Malaysia ATM 3032 3114 (Joint Venture with Bank of Baroda (40%) and Union Bank (est Subsidiary Andhra Bank) (25%) with IOB share of 35%) Remittance BC

  42. Slide 42: 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

  43. Slide 43: Thank You

    Thank You visit us @ https://www.iob.in Performance Analysis Q2/H1 2020-21

Indian Overseas Bank — H1 2020-21 Earnings Presentation on 6ix