Indian Overseas Bank · NSE:IOB

Indian Overseas Bank — Q2 2018-19 Earnings Presentation

46 slides from Indian Overseas Bank's earnings presentation, Oct 26, 2018

  1. Slide 1: Performance Analysis Q2/H1 2018-19

    Indian Overseas Bank इण्डियन ओवरसीज़ बैंक PERFORMANCE ANALYSIS Q2/H1 2018-19

  2. Slide 2: Our Heritage

    OUR HERITAGE  Indian Overseas Bank (IOB) was founded on 10th February 1937 by Shri.M.Ct.M. Chidambaram Chettyar.  Objective was to specialize in foreign exchange business and take Bank across the globe.  IOB started business simultaneously – at Karaikudi, Chennai and Rangoon in Burma (presently M

  3. Slide 3: Decades of History

    DECADES OF HISTORY 81 years of Glorious History ! Good People to Growth with 2016– Migrated to Finacle 30th Sept 2018- Business mix of 2000– Initial 3732 bn and a Public Offering branch network 2003 of 3303 branches Follow on public offering 1964– 2005 Inauguration of Launched debit IOB Head Office

  4. Slide 4: Key Strengths - Qualitative

    KEY STRENGTHS - QUALITATIVE Touch Points: 3303 Domestic Branches, 57% branches in 81 years of Banking 5 Overseas Rural and SU centres Expertise Branches & 3789 ATMs 66% RAM share to 36 Million Active Domestic Advances customers Retail Share: 20.09% Agri Share: 22.79% MSME Share: 23.01% Page 4

  5. Slide 5: Highlights – Quantitative – Sep 18

    HIGHLIGHTS – QUANTITATIVE – SEP 18 Maintains Healthy Non Interest Domestic CASA of 36.46% Income with SB growth at 7.01% RAM portfolio grew increased by by 8.82% (Y-o-Y) 9.78% (Y-o-Y) Cost of Funds Retail segment declined by recorded growth 19 bps (Y-o-Y) of 17.07% (Y-o-Y) GNPA Ratio Loss Incurring

  6. Slide 6: Top Line Movement – Q2 2018-19

    TOP LINE MOVEMENT– Q2 2018-19 Y-o-Y Growth Q-o-Q Growth Savings Bank Rs.67,437 Crs 7.01% 1.20% Current Account Rs.12,782 Crs 3.93% 7.18% Term Deposits Rs.1,42,950 Crs 4.94% 6.20% Deposits Rs.2,23,169 Crs 5.49% 4.69% Advances Rs.1,50,040 Crs -1.72% 0.86% Page 6

  7. Slide 7: Headline Numbers – Q2 2018-19

    HEADLINE NUMBERS – Q2 2018-19 Y-o-Y Growth Q-o-Q Growth Interest Income Rs.4,284 Crs -7.79% 0.83% Non Interest Rs.1,065 Crs 10.37% -1.25% Income Interest Rs.3,075 Crs -1.60% 1.15% Expenditure Operating Rs.969 Crs -33.02% -16.07% Expenses Operating Profit Rs.1,304 Crs 25.58% 15.21% Page 7

  8. Slide 8: Headline Numbers – H1 2018-19

    HEADLINE NUMBERS – H1 2018-19 Y-o-Y Growth Interest Income Rs.8,532 Crs -3.40% Non Interest Rs.2,143 Crs 9.78% Income Interest Rs.6,116 Crs -2.74% Expenditure Operating Rs.2,123 Crs -20.84% Expenses Operating Profit Rs.2,436 Crs 34.22% Page 8

  9. Slide 9: Highlights

    HIGHLIGHTS  IOB Features in Forbes 500 Best Employers List.  Maintains healthy Global CASA Ratio of 35.95% and Domestic CASA Ratio of 36.46% as at Sept 2018 .  Global Deposits recorded a growth of 5.49% on Y-o-Y basis and ended at Rs. 2,23,169 crores.  Global Advances ended at Rs. 1,50,040 crore

  10. Slide 10: Highlights

    HIGHLIGHTS  Other Income grew by 10.37% for Q2 2018-19 over Q2 2017-18 and recorded a growth of 9.78% for H1 2018-19 over H1 2017-18.  Interest Expenditure declined by 1.60% for Q2 2018-19 over Q2 2017-18 and recorded a decline of 2.74% for H1 2018-19 over H1 2017-18  Operating Profit stood at Rs

  11. Slide 11: Customer Touch Points

    CUSTOMER TOUCH POINTS 4000 IOB Bank Year Branches ATM/CR Mitra 3500 Mar-15 3381 3571 2841 3000 Mar-16 3397 3793 2894 2500 Branches Mar-17 3373 3679 2738 2000 ATM Mar-18 3332 3552 2663 1500 BC 1000 Jun-18 3326 3608 2663 500 Sept-18 3303 3789 2663 0 BC: IOB Bank Mitra Mar-15' Mar-16 Mar-17 Mar-18 Jun-

  12. Slide 12: Global Footprints – Foreign Branches

    GLOBAL FOOTPRINTS – FOREIGN BRANCHES Representative Remittance Branches Office JV Subsidiary Centres •Singapore •Dubai •Malaysia •Singapore – •Hong Kong Main Serangoon Road •Colombo •Bangkok •Sukhumvit, Bangkok Joint Venture in Malaysia: Joint Venture with Bank of Baroda (40%) and Andhra Bank (25%)

  13. Slide 13: Business Performance - Global

    BUSINESS PERFORMANCE - GLOBAL Rs in Crores Particulars Mar-17 Sep-17 Mar-18 Jun-18 Sep-18 YoY(%)QoQ(%) CASA Deposits 76269 75321 79678 78560 80219 6.50 2.11 Total Deposits 211343 211548 216832 213168 223169 5.49 4.69 Advances 156776 152664 150999 148760 150040 -1.72 0.86 Business Mix 368118 364212 3

  14. Slide 14: Deposit Composition

    DEPOSIT COMPOSITION Rs in Crores Particulars Mar-17 Sep-17 Mar-18 Jun-18 Sep-18 YoY(%)QoQ(%) Savings 63232 63022 66742 66634 67437 7.01 1.20 Current 13037 12299 12936 11926 12782 3.93 7.18 CASA Deposits 76269 75321 79678 78560 80219 6.50 2.11 Term Deposits 135074 136227 137154 134608 142950 4.94 6.2

  15. Slide 15: IOB Eighty Plus

    A sttua3ieinas IOB EIGHTY PLUS VY Indian Overseas Bank Deposit Schemes for Super Senior Citizens (aged 80 years and above) Hurray!!! 1OB launches new No Minimum Balance SEN fOr 4 Free Personalised Cheque Book Free Issuance of Debit Card (Rupay Platinum) Free Enrolment for Internet Banking / Mobile B

  16. Slide 16: Deposits & Cost

    DEPOSITS & COST Rs in Crores Parameters Mar-15 Mar-16 Mar-17 Mar-18 Jun-18 Sep-18 Savings Deposits 47101 52404 63232 66742 66634 67437 Current Deposits 14640 12082 13037 12936 11926 12782 Bulk Deposits 89837 58917 29195 27906 26418 32291 Retail Term Deposits 89197 96029 100514 103743 103526 105970 O

  17. Slide 17: Sector Wise Global Advances

    SECTOR WISE GLOBAL ADVANCES Rs in Crores 200000 200000 179041 180000 172727 180000 16204 9% 17299 156776 160000 10% 152664 160000 83317 14125 150999 150040 162837 70734 9% 12377 8% 8% 6% 155428 12483 9068 140000 140000 58852 8% 7% 48085 142651 54930 46898 140972 140287 138516 120000 32% 120000 41% 3

  18. Slide 18: Risk Spread - Assets

    RISK SPREAD - ASSETS Rs in Crores Details Mar-16 Mar-17 Sep-17 Mar-18 Sep-18 Retail 22653 23887 24189 28183 28318 Agri 30237 29348 30146 30820 32132 MSME 31804 30564 31022 32615 32437 Corporate/Others 70734 58852 54930 46898 48085 Overseas 17299 14125 12377 12483 9068 Global 172727 156776 152664 150

  19. Slide 19: RAM – The Growth Driver

    RAM – THE GROWTH DRIVER Rs in Crores 35000 32615 31804 32132 32437 30237 29348 30564 30146 31022 30820 30000 28183 28318 23887 24189 25000 22653 20000 15000 10000 5000 0 Mar-16' Mar-17 Sep-17 Mar-18 Sep-18 Retail Agri MSME Particulars Mar-16 Mar-17 Sep-17 Mar-18 Sept-18 Retail 22653 23887 24189 2818

  20. Slide 20: Gross Advances & YOA; Repo Rate & IOB MCLR

    GROSS ADVANCES & YOA Rs in Crores 200000 181081 179041 12 172726 180000 156776 150999 150040 10 160000 148760 140000 10.04 9.94 9.19 8 120000 8.43 100000 7.51 7.12 7.12 6 80000 60000 4 40000 2 20000 0 0 Mar-14' Mar-15 Mar-16 Mar-17 Mar-18 Jun-18 Sep-18 Gross Advances Yield on Advances REPO RATE & IO

  21. Slide 21: Retail Performance

    RETAIL PERFORMANCE Rs in Crores Share of Retail on Domestic Gross Advances 180000 160000 45 140000 120000 35 100000 80000 20.34% 20.09% 25 16.75% 60000 14.57% 40000 11.17% 11.07% 15 20000 0 5 31.03.14 31.03.15 31.03.16 31.03.17 31.03.18 30.09.18 Gross Domestic Advance Retail Advance % Share Year Gro

  22. Slide 22: Retail Growth for Sustainability

    RETAIL GROWTH FOR SUSTAINABILITY Retail Credit - By Segment (Rs. in Growth% - Home Loans & Retail Crore) Loans 30000 30.00 26.98 25000 7380 25.00 24.08 6261 20000 20.00 2770 6703 17.06 7887 2368 4776 15.16 15000 15.00 1703 5016 1437 4532 10000 10.00 9.48 4365 13390 4.87 5000 10545 5.00 9157 7380 0 0

  23. Slide 23: Retail Sanctions Depicts Improved Efficiency

    RETAIL SANCTIONS DEPICTS IMPROVED EFFICIENCY Rs in Crores Retail Loan Sanctions 16000 14000 Value of Loans Sanctioned Cumulative - Rs in Crore 12000 10000 FY 2016-17 8000 FY 2017-18 H1 2018-19 6000 4000 2000 0 April May June July Aug Sept Oct Nov Dec Jan Feb Mar *Branch level sanctions Page 23

  24. Slide 24: MSME Loan Schemes

    MSME Loan Schemes Ce) Indian Overseas Bank Good People to Grow with Loan up to Rs 10 tne bo Mcrp Senal! botiness erties to take up income-preer sng sctviBes. = WHATEVER YOUR NEED WE ARE ONE CLICK AWAY (Lose Rs.50,000)- to Re.2,00,000)- for incerne generating activities / Seif Herphryrmet -0- ont Low

  25. Slide 25: MSME Performance

    MSME PERFORMANCE. Rs in Crores 190000 45 Year Gross DomesticMSME Advance % Share 170000 150000 Mar'14 161998 28978 17.89% 130000 35 Mar'15 162838 32252 19.81% 110000 23.01% 23.55% 90000 Mar'16 155428 31804* 20.46% 19.81% 21.43% 20.46% 70000 25 50000 Mar'17 142651 30564* 21.43% 30000 Mar’18 138516 32

  26. Slide 26: Agriculture Advances - Performances

    AGRICULTURE ADVANCES - PERFORMANCES Rs. In Crs Position of Agriculture Advances Y-o-Y Growth 32500 2500 7.00% 32000 32132 31500 2000 6.44% 6.00% 31000 30820 5.00% 3.42% 4.69% 30500 30237 1500 4.00% 3.00% 30000 29438 1000 1986 2.00% 29500 1382 1.00% 29000 500 969 28500 0.00% 28000 0 -1.00% 2015-16 20

  27. Slide 27: Priority Sector Advances – Overview

    PRIORITY SECTOR ADVANCES – OVERVIEW Rs. In Crore 70040 73900 Priority sector % of 67615 63984 Financial Year Achievement achievement 63635 47.47% 50.54% 40.29% 40.33% 2014-15 63635 39.00% 39.00% 2015-16 67615 40.29% 2016-17 (Avg 4 qtrs) 63984 40.33% 2017-18 2014-15 2015-16 2016-17 2017-18 2018-19 as

  28. Slide 28: Agri Advances – Priority Sector

    AGRI ADVANCES – PRIORITY SECTOR Rs. In Crore 17.92% 18.02% 18.19% 20.23% 20.74% 35000 30000 29369 29236 30205 30236 28585 28865 29851 30632 26561 26583 25000 20000 15000 10000 5000 0 2014-15 2015-16 2016-17 (Avg) 2017-18 (Avg) 2018-19 as on Target Achievement % Sep'18 Amt in Crs Financial Year ANBC

  29. Slide 29: Income & Expenses

    INCOME & EXPENSES Rs in Crores Q2 Q1 Q2 H1 H1 Particulars 2017-18 2018-19 2018-19 YoY(%) 2017-18 2018-19 YoY(%) Interest Income 4646 4249 4284 -7.79 8833 8532 -3.40 Non Interest Income 965 1078 1065 10.37 1952 2143 9.78 Total Income 5610 5327 5348 -4.67 10785 10675 -1.02 Interest Expended 3125 3041

  30. Slide 30: Profitability

    PROFITABILITY Rs in Crores Q2 Q1 Q2 H1 H1 Particulars 2017-18 2018-19 2018-19 YoY(%) 2017-18 2018-19 YoY(%) Operating Profit 1039 1132 1304 25.58 1815 2436 34.22 Provisions 2261 2051 1791 -20.77 3537 3843 8.66 of which NPA Provisions 2110 2294 1678 -20.46 3910 3972 1.60 Other Provisions 151 -242 113

  31. Slide 31: Other Income

    OTHER INCOME Rs in Crores Q2 Q1 Q2 H1 H1 Particulars 17-18 18-19 18-19 YoY(%) 17-18 18-19 YoY(%) Exchange & Commission 244 211 254 4.22 449 465 3.72 Proft on Sale of Investments 88 72 10 -88.42 514 82 -84.06 Profit on Exchange 149 119 137 -8.29 290 256 -11.75 All other income 484 676 664 37.20 700 1

  32. Slide 32: Performance Ratios

    PERFORMANCE RATIOS Cost of Deposits (%) Yield on Advances (%) 5.60 5.57 5.58 9.00 8.51 5.55 8.00 7.52 7.12 6.95 7.12 7.14 5.50 7.00 5.44 5.45 6.00 5.39 5.39 5.40 5.00 5.35 5.32 4.00 5.30 3.00 5.25 2.00 5.20 1.00 5.15 0.00 Q1 17-18 Q2 17-18 Q3 17-18 Q4 17-18 Q1 18-19 Q2 18-19 Q1 17-18 Q2 17-18 Q3 17-

  33. Slide 33: Movement of RWA & CRAR

    MOVEMENT OF RWA & CRAR Rs in Crores Particulars Sep-17 Dec-17 Mar-18 Sep-18 Market Risk RWA 14643.44 16565.23 15189.38 14859.25 Operational Risk RWA 14758.84 14758.84 14758.84 15778.67 Credit Risk RWA 119483.55 115325.24 104960.48 96903.45 Total RWA (A) 148885.82 146649.31 134908.69 127541.37 CET 1

  34. Slide 34: Capital Optimisation

    CAPITAL OPTIMISATION Rs in Crores RWA to Advance 100.00% 95.00% 97.53% 90.00% 96.78% 85.00% 89.34% 80.00% 85.00% 75.00% 70.00% 65.00% 60.00% Sep-17 Dec-17 Mar-18 Sep-18 Credit RWA to Advance 80.00% 78.00% 78.27% 76.10% 76.00% 74.00% 72.00% 70.00% 69.51% 68.00% 64.58% 66.00% 64.00% 62.00% 60.00% Sep-

  35. Slide 35: Branch Profitability

    BRANCH PROFITABILITY Details Mar-14' Mar-15 Mar-16 Mar-17 Mar-18 Jun-18 Sep-18 Branches 3265 3381 3397 3373 3332 3326 3303 % of Loss Incurring Branches 23.64 21.95 21.14 15.89 11.13 11.67 7.69 3450 23.64 25.00 21.95 21.14 3400 3397 15.89 20.00 3381 3373 3350 11.13 11.67 15.00 3332 3326 7.69 3300 330

  36. Slide 36: NPA Management

    NPA MANAGEMENT Rs in Crores Q2 FY Q1 Q2 Details 2017-18 2017-18 2018-19 2018-19 Opening Gross NPAs 35453 35098 38180 38146 Cash Recoveries* 405 1105 565 1723 Upgradation 235 2330 467 342 Write-Offs 1061 7018 1262 1425 Sale to ARCs/Others** 1736 3290 268 289 Total Reductions (a+b+c+d) 3437 13743 2563

  37. Slide 37: Addition/Reduction of GNPA

    ADDITION/REDUCTION OF GNPA Addition/ Reduction in GNPA 12000 2000 1800 10000 1600 1400 8000 1200 6000 1000 800 4000 600 400 2000 200 0 0 Q1 2017-18 Q2 2017-18 Q3 2017-18 Q4 2017-18 Q1 2018-19 Q2 2018-19 Total Additions Total Recovery Cash Recoveries Page 37

  38. Slide 38: Investments

    INVESTMENTS Rs in Crores Global Investments 82000 79740 79626 80000 78000 76573 76000 74000 72248 71640 72000 70263 70000 68006 68000 66000 64000 62000 Mar-14' Mar-15 Mar-16 Mar-17 Mar-18 Jun-18 Sep-18 Parameters Mar-16 Mar-17 Mar-18 Jun-18 Sep-18 Domestic Investments 76155 68627 66619 66854 72008 S

  39. Slide 39: 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 % Shareho 10.74% Name of Entity lding % Investment Indian Oversea

  40. Slide 40: Share Holding Pattern – Sept 2018

    SHARE HOLDING PATTERN – SEPT 2018 DIVIDEND DECLARED AND PAID (in %) Interim Final YEAR Dividend Dividend Shareholding Pattern % 2000-01 10% 0.01 Promoter 2001-02 12% 0.15 0.00 0.47 2002-03 16% 0.01 Foreign Portfolio Investors 2003-04 12% 8% 3.11 0.27 0.00 0.07 Financial Institutions/ 2004-05 14% 10%

  41. Slide 41: Valuations

    VALUATIONS Particulars (Rs. Crs) Q2 17-18 Q1 18-19 Q2 18-19 Earning per Share (`) (Annualised for Quarters) - ve - ve - ve Book Value per Share (`) 26.22 8.43 7.16 Adjusted Book Value per Share (`) [(Net Worth - Net NPA)/No of Shares] - ve - ve - ve Price/Book Value (`) 0.85 1.67 1.83 Price/Adjusted

  42. Slide 42: Awards & Accolades

    AWARDS & ACCOLADES Adjudged as “ Vani” Bank’s 2nd “Best NABARD- SHG Quarterly Hindi Performing Bank Linkage Magazine was Bank in terms of Programme - awarded 2nd Aadhaar 2nd Position Prize in C generation and Best Region under update (using performance in Rajbhasha Online client the State of Keerti

  43. Slide 43: Digital Initiatives

    DIGITAL INITIATIVES •IOB Nanban •UPI Merchant QR •IOB mPassbook •RuPay Enabled PG •Mobile Banking •IOB Pay Registration •BBPS through ATM Payment Mobility •IOB Sahayak Initiatives Initiatives ATM Value Customer Additions Experience •Green PIN •Customer Feedback •IOB Rewardz •Missed Call Balance •Pre

  44. Slide 44: Customer Experience Initiatives

    CUSTOMER EXPERIENCE INITIATIVES Customer can call to the specified number for to provide a feedback about our service If you are unhappy with our service please call 8828846220  If you are happy with our service please call 8828846225 Customer can give missed call to 9210622122 to know your acco

  45. Slide 45: 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

  46. Slide 46: Thank You

    © THANK YOU

Indian Overseas Bank — Q2 2018-19 Earnings Presentation on 6ix