Indian Overseas Bank · NSE:IOB

Indian Overseas Bank — Q2 FY2014-15 Earnings Presentation

55 slides from Indian Overseas Bank's earnings presentation, September 2014

  1. Slide 1: Presentation to Analysts September 2014

    Good People to Grow With Touching Hearts Spreading Smiles since 1937 Presentation to Analysts September 2014 (in INR)

  2. Slide 2: Continuing Tradition of Quiet & Dignified Service to the Society

    Continuing Tradition of Quiet & Dignified Service to the Society Good People to Grow With

  3. Slide 3: Index

    Balance Sheet Management Department INDEX Particulars Page No. Particulars Page No. Mile Stones 4-5 NPA Details 32-37 Share Holding Pattern 6 Profitability 38-41 Foreign Branches 7 Profitability - Details of Income 42-45 Joint Ventures 8 Net Profit 46 Ratios - Cost & Yield Ratios & Highlights 9 NIM

  4. Slide 4: Milestones

    Milestones 1937 Opening of Bank Branch simultaneously in India & Abroad 1938 Opening Branch in Kuala Lumpur 1941 Opening Branch in Singapore 1945 Opening Branch in Colombo 1955 Opening Branch in Hong Kong 1957 Bank established its own training centre 1960s Was a decade of inorganic expansion for the

  5. Slide 5: Milestones

    Milestones 2006 Bank reached INR 1 lac crore mark in Total Business 2006-07 Net Profit reached INR 1000 Cr.; Bharat Overseas Bank Ltd. was merged with IOB 2007 First Off site ATM at Kamatchi Hospital, Chennai 2009 100% CBS 2010 2000th Branch - Yamuna Vihar, New Delhi - opened 2011-12 No. of Branches

  6. Slide 6: Investor Profile – Shareholding Pattern as on 30.09.2014

    Investor Profile – Shareholding Pattern (%) as on 30.09.2014 Clearing Member 0.03% Total No. of Shares issued:1,23,53,48,315 Trusts 0.04% Promoter (GOI) NRI 73.80% 0.35% FIIs 2.35% Banks 0.06% Mutual Funds 0.15% Corporate Bodies 0.98% FI 14.61% Residents 7.63% 6

  7. Slide 7: Global Footprints – Foreign Branches of the Bank

    Global Footprints – Foreign Branches of the Bank Branches Representative J V Subsidiary JV Remittance Office Subsidiary Centres  Singapore  Guangzhou – China  Malaysia  Singapore –  Hong Kong Main  Vietnam Serangoon Road  Hong Kong TST  Dubai  Singapore - Boon Lay  Colombo  Bambalapitiya

  8. Slide 8: Strategic Investments - Joint Ventures

    Strategic Investments - Joint Ventures IOB entered into Non Life Insurance Business with Universal Sompo General Insurance (USGI) Company Limited with equity participation of 19% along with the Following Banks and Institutions Joint venture Equity Contributors % INR Crs Allahabad Bank 30 105.00 Indi

  9. Slide 9: Highlights-30.09.2014

    Highlights-30.09.2014 Business touched INR 4,20,739 Crores ( YoY Growth 8.16%) Deposits stood at INR 2,39,224 Crores (YoY Growth 12.47%) CASA stood at 23.76% Advances stood at INR 1,81,515 Crores (YoY Growth 2.96%) Operating Profit for Q2 14-15 is INR 729 Crores Net Loss for Q2 14-15 stands at INR 2

  10. Slide 10: IT Initiatives

    IT Initiatives IT Organization Structure:  For effective IT Governance, a Board level IT Strategy Committee and a Top Management level IT Steering Committee have been formed in addition to the existing IT security Committee headed by the Executive Director of the Bank and an IT Technology Committee

  11. Slide 11: IT Initiatives

    IT Initiatives Core Banking Solution:  Our bank has implemented the Core Banking Solution developed in-house, christened ‘CROWN’ (Centralized Resources Over Wide-area Network).  We have planned to move to the COTS based CBS model which is widely used by all other Public Sector Banks in India.  Al

  12. Slide 12: IT Initiatives (contd)

    IT Initiatives (contd ….)  We have introduced reward points to our customers for usage of our Debit and Credit cards in Pos and Ecom transactions. The process is outsourced to M/s Loyalty Rewards who will be managing awarding of points and exchange of points by the customers through various merchan

  13. Slide 13: IT Initiatives (contd)

    IT Initiatives (contd ….)  Facility has been given to the customer to auto schedule the RD installments  Puducherry Electricity Bill Collection/Excise Collection through internet banking introduced  Integrated with the following institutions for E-payment  AMET University  Tamilnadu Fisheries U

  14. Slide 14: IT Initiatives

    IT Initiatives Payment Gateway:  Payment Gateway for payment of utility bills like mobile payment, insurance premium, other banks’ credit cards, telephone bill payments etc., using debit cards has been implemented. Loyola College, Chennai, Madras Christian College, Amet University, EBET and Ayyan f

  15. Slide 15: IT Initiatives

    IT Initiatives Aadhaar:  Our bank is actively participating in the Aadhaar related initiates of the Government / NPCI. Linking of Aadhaar numbers to account number through Branch channel is in operation for the past 1-1/2 years. Similarly Aadhar Payment Bridge Solution and National Automated Cleari

  16. Slide 16: IT Initiatives

    IT Initiatives GePG:  Government E-Payment Gateway has been implemented to disburse bulk payments from Central Government departments to Central Govt. employees/vendors through our bank’s NEFT platform. Our bank is one of the 5 banks identified to process transactions of e-FMS (electronic Funds Man

  17. Slide 17: IT Initiatives

    IT Initiatives GENNEXT:  Branch to cater to the needs of techsavvy younger generation of customers has been opened in Chennai, Bangalore and Manipal. Government Business:  Our bank caters to various tax collections both direct and indirect, and also various State Governments. Awards & Accolades: 

  18. Slide 18: Major Business Parameters

    Major Business Parameters Quarter ending INR Crs Key performance indicators Sep 2013 Dec 2013 Mar 2014 Jun 2014 Sep 2014 Business Mix 3,89,005 3,87,406 4,09,057 3,99,188 4,20,739 Deposits 2,12,705 2,13,319 2,27,976 2,21,879 2,39,224 Advances (Gross) 1,76,300 1,74,087 1,81,081 1,77,309 1,81,515 Opera

  19. Slide 19: Deposits

    Deposits INR Crs 212705 230903 239224 240000 205456 200000 160000 120000 Domestic 80000 Global 40000 0 30.09.2013 30.09.2014 Domestic 205456 230903 Global 212705 239224 Domestic Deposits Global Deposits  Y-o-Y Growth:12.38%  Y-o-Y Growth:12.47% 19

  20. Slide 20: Deposits - CASA

    Deposits - CASA INR Crs 57,767 CASA 53,968 52,800 54,367 56,841 43,744 44,553 41,088 43,148 40,699 SAVINGS 12,880 14,023 12,101 11,219 12,288 CURRENT Sep'13 Dec'13 Mar'14 Jun'14 Sep'14 Current Deposits Savings Bank CASA Share of CASA Y-o-Y Growth: -ve Y-o-Y Growth:8.43%  Y-o-Y Growth:5.32% to Agg

  21. Slide 21: Domestic Deposit-Category Wise

    Domestic Deposit-Category Wise Sep 2014 INR Crs Rural, 15,371 Semi urban, (7%) 26,041 (11%) Urban, 53,745 (23%) Metro, 1,35,746 (59%) 21

  22. Slide 22: Gross Advances

    Gross Advances INR Crs 200,000 176,300 181,515 180,000 162,228 160,000 153,495 140,000 120,000 100,000 80,000 60,000 40,000 30.09.2013 30.09.2014 Domestic 153,495 162,228 Global 176,300 181,515 Domestic Advances Global Advances  Y-o-Y Growth:5.69%  Y-o-Y Growth:2.96% 2222

  23. Slide 23: Domestic Advances-Category Wise

    Domestic Advances-Category Wise Sep 2014 INR Crs Rural, Metro, 18,109 Semi Urban, 91,007 (11%) 19,562 (56%) (12%) Urban, 33,550 ( 21%) 23

  24. Slide 24: Key Sectors (Domestic Credits)

    Key Sectors (Domestic Credits) INR Crs Sector Sep 2013 Mar 2014 Sep 2014 1.Agriculture 23,415 26,254 27,576 2.SME 20,080 24,575 24,018 of which Micro 8,195 10,608 11,101 3.Retail Credit 16,824 17,040 17,520 2424

  25. Slide 25: Retail Credit (Breakup)

    Retail Credit (Breakup) INR Crs Sector Sep 2013 Mar 2014 Sep 2014 Retail Credit 16,824 17,040 17,520 Of which - Housing Loans 5,479 6,078 6,524 - Misc.CC 1,276 1,356 1,369 - Pushpaka-Vehicle Loan 864 1,074 1,229 - Educational Loan 3,323 3,597 3,823 - Others 1,070 1,180 1,184 - Jewel Loan to Others 4

  26. Slide 26: Advances to Sensitive Sectors - Domestic

    Advances to Sensitive Sectors - Domestic (FUND + NON FUND) INR Crs Sector Sep 2013 Mar 2014 Sep 2014 CAPITAL MARKET 881 713 684 REAL ESTATE 18,943 22,153 22,382 of which HOUSING LOAN * 5,992 8,246 8,977 COMMERCIAL REAL ESTATE 8,449 8,630 8,752 OTHERS (DIRECT & INDIRECT) 4,502 5,277 4,653 * Includes

  27. Slide 27: Overseas Advances - Breakup

    Overseas Advances - Breakup INR Crs Sep 2013 Mar 2014 Sep 2014 Trade 7,641 7,538 7,412 Manufacturing 7,038 6,761 7,204 Real Estate 306 381 205 Buyers Credit 5,415 1,752 2,010 Others 2,405 2,651 1,527 Total 22,805 19,083 18,358 27

  28. Slide 28: Restructured Accounts Outstanding Position As On 30.09.2014

    Restructured Accounts Outstanding Position As On 30.09.2014 INR Crs Sector 31.03.2014 31.03.2014 31.03.2014 30.09.2014 30.09.2014 30.09.2014 Accounts Amount % Accounts Amount % Chemical & Pharma 5 122.74 0.87 5 126.47 0.72 Sugar 3 62.53 0.44 3 72.31 0.41 Textile 11 436.42 3.08 17 851.96 4.84 Iron &

  29. Slide 29: Restructured Accounts Outstanding Position (contd)

    INR Crs Restructured Accounts Outstanding Position As On 30.09.2014 .. contd Sector 31.03.2014 31.03.2014 31.03.2014 30.09.2014 30.09.2014 30.09.2014 Accounts Amount % Accounts Amount % Sub Total 108 10788.89 76.22 122 13155.30 74.77 SME 240 590.90 4.17 204 551.25 3.13 Micro Finance 8 117.91 0.83 3

  30. Slide 30: Asset Classification of Restructured Accounts

    Asset Classification wise details of Restructured Accounts Outstanding No. of Amount No. of Amount Asset Classification Accounts (INR Crs) % to Accounts (INR Crs) % to (31.03.2014) (31.03.2014) Total (30.09.2014) (30.09.2014) Total Standard Assets 823 12314 87 479 14252 81 Sub-Standard 335 1560 11 2

  31. Slide 31: Restructured Accounts

    RESTRUCTURED ACCOUNTS INR Cr (INCLUDES ALL F.B. FACILITIES OF THE BORROWER) Domestic Foreign Global > 1 crore < 1 crore Total As on 30.06.2014 O/S 15033.75 69.60 15103.35 214.95 15318.30 Additions during Q2 of 2014-15 includes restructure during the quarter, debit of interest and additional dosages

  32. Slide 32: NPA Ratio

    NPA Ratio 8 % 7.35 7 5.84 Gross 6 5.27 4.98 5.17 Net 4.65 5 3.85 4 3.24 3.2 2.83 3 2 1 0 Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 3232

  33. Slide 33: NPA Sequential Movement

    NPA SEQUENTIAL MOVEMENT INR Crs Sep 2013 Dec 2013 Mar 2014 Jun 2014 Sep 2014 OPENING GROSS NPA 7432 8202 9168 9020 10351 ADD Slippages 1309 1650 2275 2649 4524 LESS Cash Recovery 222 207 411 266 337 Upgradation 302 135 465 142 464 Write Off 15 342 564 321 292 Sale to ARC 983 589 448 Total Reduction

  34. Slide 34: Sector Wise Break Up of NPAs (Domestic)

    Sector Wise Break Up of NPAs INR Cr as of 30.09.2014 (Domestic) NPA as of % to total Category 30.09.2014 Domestic NPA Agriculture 1860.60 16.17 Industry 6759.64 58.74 Services 1786.84 15.53 Personal 1101.15 9.56 Total 11508.23 of Which Commercial Real Estate 268.58 2.33 34

  35. Slide 35: NPAs – Industry Wise - Domestic

    NPAs – Industry Wise - Domestic INR Cr. % of NPA to the NPA as of Outstanding as of % to the total Industry respective 30.09.2014 30.09.2014 Domestic NPA outstanding Iron and Steel 1446.30 10292.82 14.05 12.57 Cotton Textiles/Other Textiles 1329.65 7227.88 18.40 11.55 Other Metal & Metal Products 34

  36. Slide 36: Sectoral Slippages during the quarter ended 30.09.2014

    Sectoral Slippages during the quarter ended 30.09.2014 INR Cr. Category Amount Services( Other than Commercial Real Estate) 423 Agriculture 516 Personal 214 Commercial Real Estate 47 Sub Total 1200 Industry Breakup Rubber & Rubber Products 9 All Engineering/All other Industries 60 Paper 29 Food Proc

  37. Slide 37: Overseas NPAs

    Overseas NPAs INR Crs Sep 2013 Mar 2014 Sep 2014 Trade 605.06 786.70 1,098.14 Manufacturing 291.05 118.45 496.21 Real Estate 66.90 64.08 65.50 Others 174.30 212.88 165.79 TOTAL 1,137.31 1182.11 1,825.64 37

  38. Slide 38: Profitability (Quarter Sequential)

    Profitability (Quarter Sequential) INR Crs Net Interest Income 1700 1452 1398 1411 Operating Profit 1500 1427 1344 1300 Net Profit 1100 1191 900 961 686 729 700 791 500 272 268 300 75 133 100 -100 -245 Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 -300 3838

  39. Slide 39: Profit - Summary

    PROFIT - SUMMARY INR Crs Quarter Ending Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 Interest Earned 5,669 5,737 5,875 6,007 5,962 Interest Expended 4,217 4,339 4,464 4,580 4,618 Net Interest Income 1,452 1,398 1,411 1,427 1,344 Non Interest Income 331 453 601 278 478 Total Operating Income 1,783 1,851 2,012

  40. Slide 40: Profitability - Q2

    PROFITABILITY - Q2 INR Crs Particulars Q2 13-14 Q2 14-15 Variance % TOTAL INCOME 6,000 6440 7.33 Interest Earned 5,669 5962 5.17 Other Income 331 478 44.41 TOTAL EXPENDITURE 5,209 5711 (excl. provisions and contingencies) 9.64 Interest Expended 4,217 4618 9.51 Operating Expenses 992 1093 10.18 i)Pay

  41. Slide 41: Profit – Geographical Distribution – Q2

    PROFIT – Geographical Distribution – Q2 INR Crs Particulars Q2 13-14 Q2 14-15 Variance % OPERATING PROFIT Global 791 729 -7.84 Domestic 673 613 -8.92 Overseas 118 116 -1.69 PROVISIONS Global 658 975 48.18 Domestic 583 751 28.82 Overseas 75 224 198.67 NET PROFIT Global 133 -245 -284.21 Domestic 90 -1

  42. Slide 42: Profit - Net Interest Income

    PROFIT - NET INTEREST INCOME Quarter Ending INR Crs Particulars Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 Total Interest Income 5,669 5,737 5,875 6,007 5,962 Of which Int Income from Advances 4,370 4,339 4,424 4,565 4,504 Int. Income from Investments 1,247 1,285 1,297 1,291 1,324 Other Interest Income 52 1

  43. Slide 43: Profit - Net Interest Income

    PROFIT - NET INTEREST INCOME INR Crs Variance % Particulars Q2 13-14 Q2 14-15 Total Interest Income 5,669 5,962 5.17 Of which Int Income from Advances 4,370 4,504 3.07 Int. Income from Investments 1,247 1,324 6.17 Other Interest Income 52 134 157.69 Total Interest Expended 4,217 4,618 9.51 Of which

  44. Slide 44: Non Interest Income (Quarterly Comparison)

    Non Interest Income (Quarterly Comparison) INR Crs Quarter Ending Particulars Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 Total Non Interest Income 331 453 601 278 478 Of which Exchange / Commission 224 215 292 236 243 Profit on Sale of Investments 12 32 46 90 46 Profit on Revaln. Of Investments -94 0 0 -253

  45. Slide 45: Non Interest Income - Q2 2014-15

    Non Interest Income -Q2-2014-15 INR Crs Variance Particulars Q2 13-14 Q2 14-15 % Total Non Interest Income 331 478 44.41 Of which Exchange / Commission 224 243 8.48 Profit on Sale of Investments 12 46 283.33 Profit on Revaln. Of Investments -94 0 -100.00 Recovery in written off accounts 69 55 -20.29

  46. Slide 46: Net Profit (Quarterly Comparison)

    NET PROFIT (Quarterly Comparison) INR Crs Quarter Ending Particulars Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 OPERATING PROFIT 791.00 960.73 1191.09 686.41 729.44 Total Provision 658.45 885.66 922.76 414.69 974.95 Of which NPA 485.87 688.29 313.43 524.33 845.08 Provision for unhedged FC Exposure 0.00 0.00

  47. Slide 47: Cost & Yield Ratios (Quarterly Comparison)

    Cost & Yield Ratios (Quarterly Comparison) Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 Avg. Cost of Deposits (%) 7.58 7.57 7.61 7.69 7.69 Avg. Yield on Advances(%) 10.08 9.99 10.07 10.14 9.98 Avg. Yield on Investments(%) 7.31 7.21 7.18 7.23 7.30 Avg. Cost of Funds(%) 7.15 7.40 7.51 7.60 7.59 Avg. Yield on Fu

  48. Slide 48: Investments - Domestic

    INVESTMENTS - Domestic INR Crs 31.03.2014 30.09.2014 AFS HTM HFT TOTAL AFS HTM HFT TOTAL SLR Investments 10175.35 49086.84 72.92 59335.11 9530.16 51652.70 95.11 61277.97 Of which Government. Securities 10123.52 49083.73 72.92 59280.17 9478.32 51649.59 95.11 61223.02 Other Approved Securities 51.83 3

  49. Slide 49: Investments – Foreign 30.09.2014

    INVESTMENTS – Foreign -30.09.2014 INR Crs Book Value Total Type of Investment (Gross) Provision G - Sec 2,435.29 1.42 Bonds - Others 9.47 - MTN,FCCB 755.93 58.06 Shares 0.10 - Joint Venture - Malaysia 193.20 - Total 3,393.99 59.48 4949

  50. Slide 50: Capital Adequacy

    CAPITAL ADEQUACY INR Crs Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 Tier I Capital BASEL II 12,043.15 14,068.15 BASEL III 11,689.10 12,891.74 13,853.25 13,910.48 13,910.88 Tier II Capital BASEL II 6,145.37 6,484.32 BASEL III 6,056.31 6,052.06 6,135.49 6,026.92 5,708.60 Total Capital BASEL II 18,188.52 20,55

  51. Slide 51: Productivity

    PRODUCTIVITY 130 128.26 125.62 125.02 INR Crs 120.16 125.86 120 Business per Branch 110 100 90 Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 14 13.67 12.69 12.77 13 12.65 12.85 Business per 12 Employee 11 10 9 8 Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 51

  52. Slide 52: Financial Inclusion

    Financial Inclusion Basic Savings Bank Deposit Accounts(BSBDA): As per the guidelines issued by Reserve Bank of India, our branches are opening BSBD Accounts to bring the excluded segment of population into banking fold. General Purpose Credit Cards(GCC),Kissan Credit cards(KCC) and Temporary Over D

  53. Slide 53: Corporate Social Responsibility

    Corporate Social Responsibility CORPORATE SOCIAL RESPONSIBILITY AS ON 30.09.2014  Financial Literacy seminars:  Our Bank has conducted seminars on financial literacy in 25 centres in association with knowledge partner namely NITTE Education Trust, Mangalore On the occasion a booklet on “Financial

  54. Slide 54: Corporate Social Responsibility

    Corporate Social Responsibility  The project aims to create a sustainable model for rural development encompassing environmental up- gradation, better quality of life, enhanced income, generation of new revenue streams etc.  This Total Village development Project is currently implemented in 100 vi

  55. Slide 55: Thank You

    Indian Overseas Bank

Indian Overseas Bank — Q2 FY2014-15 Earnings Presentation on 6ix