Indian Overseas Bank · NSE:IOB

Indian Overseas Bank — Q2 FY2024-25 Earnings Presentation

56 slides from Indian Overseas Bank's earnings presentation, Oct 17, 2024

  1. Slide 1: Performance Analysis Q2-FY 2024-25

    Performance Analysis Q2-FY 2024-25 17.10.2024

  2. Slide 2: Index

    INDEX VISION ---------- 3 PERFORMANCE HIGHLIGHTS ---------- 4 FINANCIAL PERFORMANCE ---------- 6 BUSINESS PERFORMANCE ---------- 13 NPA MANAGEMENT ---------- 21 CAPITAL ADEQUACY ---------- 24 FINANCIAL INCLUSION ---------- 26 DIGITAL INITIATIVES ---------- 32 CUSTOMER TOUCH POINT ---------- 40 SHARE

  3. Slide 3: Vision Mission Statement

    VISION MISSION STATEMENT Shri M Ct M Chidambaram Chettyar IOB Founder Chairman 3 Performance Performance Analysis Analysis Q2-FY25 Q3-FY24

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

    PERFORMANCE HIGHLIGHTS BUSINESS GROWTH (Rs. In Crores) Parameters Sep-23 Jun-24 Sep-24 Q-O-Q ( %) Y-O-Y ( %) CASA 119206 125947 131856 4.69% 10.61% CASA% 43.65% 42.17% 42.44% 28 bps (121 bps) BUSINESS GROWTH Total Deposits 273093 298681 310652 4.01% 13.75% Home Loan 25596 28788 30203 4.92% 18.00% Je

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

    PERFORMANCE HIGHLIGHTS ASSET QUALITY (Rs. In Crores) Parameters Sep-23 Jun-24 Sep-24 Q-O-Q ( %) Y-o-Y (%) Gross NPA 9893 6649 6249 -6.02% -36.83% QUALITY ASSET Net NPA 1364 1154 1059 -8.23% -22.36% GNPA% 4.74% 2.89% 2.72% (17 bps) (202 bps) NNPA% 0.68% 0.51% 0.47% (5 bps) (21 bps) STRENGTHENING FINA

  6. Slide 6: Financial Performance

    FINANCIAL PERFORMANCE (Rs. In Crores) Quarter Ending Half Year Ended Growth % Particulars HY 24-25 Sep-23 Jun-24 Sep-24 HY 23-24 HY 24-25 Q-o-Q Y-o-Y Over HY 23-24 Interest Income 5821 6535 6851 11245 13386 4.84% 17.69% 19.04% Interest Expenses 3475 4094 4313 6577 8407 5.35% 24.12% 27.83% Net Intere

  7. Slide 7: Total Income

    TOTAL INCOME (Rs. In Crores) Quarter Ending Half Year Ended Growth % Particulars HY 24-25 Sep-23 Jun-24 Sep-24 HY 23-24 HY 24-25 Q-o-Q Y-o-Y Over HY 23-24 Interest on Loans 4288 4830 5055 8201 9885 4.65% 17.88% 20.54% Interest on Investment 1461 1660 1754 2888 3413 5.67% 20.04% 18.19% Other Interest

  8. Slide 8: Fee Based Income

    FEE BASED INCOME (Rs. In Crores) Quarter Ending Half Year Ended Growth % Particulars HY 24-25 Sep-23 Jun-24 Sep-24 HY 23-24 HY 24-25 Q-o-Q Y-o-Y Over HY 23-24 A.Exchange & Commission 83 122 127 142 248 4.05% 52.60% 74.92% B.Income from Non Fund Based 45 39 42 91 81 7.06% -6.95% -11.00% Business C.Pr

  9. Slide 9: Total Expenses

    TOTAL EXPENSES (Rs. In Crores) Quarter Ending Half Year Ended Growth % Particulars HY 24-25 Sep-23 Jun-24 Sep-24 HY 23-24 HY 24-25 Q-o-Q Y-o-Y Over HY 23-24 Interest on Deposits 3143 3588 3784 5989 7372 5.46% 20.40% 23.10% Interest on Borrowings 332 506 529 588 1035 4.66% 59.44% 76.04% Total Interes

  10. Slide 10: Profit Parameter

    PROFIT PARAMETER (Rs. In Crores) Quarter Ending Half Year Ended Growth % Particulars HY 24-25 Sep-23 Jun-24 Sep-24 HY 23-24 HY 24-25 Q-o-Q Y-o-Y Over HY 23-24 Operating Profit 1677 1676 2128 3022 3804 26.97% 26.89% 25.88% Provisions 1044 938 1146 1883 2084 22.23% 9.73% 10.71% of which NPA Provisions

  11. Slide 11: Performance Ratios - Quarterly

    PERFORMANCE RATIOS - QUARTERLY COST OF DEPOSITS(%) COST OF FUNDS(%) 5.15 5.09 5.13 4.95 5.02 5.03 4.82 4.88 4.69 4.81 SEP 23 DEC 23 MAR 24 JUNE 24 SEP 24 SEP 23 DEC 23 MAR 24 JUNE 24 SEP 24 YIELD ON INVESTMENT(%) YIELD ON ADVANCES(%) 6.84 6.91 8.92 8.88 8.97 6.42 6.41 8.78 6.04 8.75 SEP 23 DEC 23 MA

  12. Slide 12: Performance Ratios - Quarterly

    PERFORMANCE RATIOS - QUARTERLY YIELD ON FUNDS(%) RETURN ON ASSETS 8.48 0.94 0.86 8.28 0.75 0.82 0.70 8.05 8.11 7.74 SEP 23 DEC 23 MAR 24 JUNE 24 SEP 24 SEP 23 DEC 23 MAR 24 JUNE 24 SEP 24 NET INTEREST MARGIN COST TO INCOME 3.53 62.58 3.12 51.53 51.35 3.12 51.76 48.97 3.06 3.08 SEP 23 DEC 23 MAR 24 J

  13. Slide 13: Business Performance - Global

    BUSINESS PERFORMANCE - GLOBAL (Rs. In Crores) Q-o-Q variation Y-o-Y variation Particulars Sep-23 Jun-24 Sep-24 Amount % Amount % CASA 119206 125947 131856 5909 4.69% 12650 10.61% Term Deposits 153887 172734 178796 6062 3.51% 24909 16.19% Total Deposits 273093 298681 310652 11971 4.01% 37559 13.75% A

  14. Slide 14: Business Composition

    BUSINESS COMPOSITION BUSINESS PORTFOLIO SHARE SEP 24 Savings Bank 19% Current Advances Deposits 43% 5% Term Deposits 33% % SHARE OF ADVANCE- SEP 24 POP CATEGORY WISE DISTRIBUTION OF DEPOSITS: SEP 24 Metro Corporate/Others 49% Retail Rural 24% 25% 11% MSME 20% Agri Semi Urban 31% 18% Urban 22%14 Perf

  15. Slide 15: Advances

    ADVANCES (Rs. In Crores) Q-o-Q variation Y-o-Y variation Parameters Sep-23 Jun-24 Sep-24 Amount % Amount % Retail 45482 51029 54291 3263 6.39% 8809 19.37% Agri 47003 60786 65327 4541 7.47% 18324 38.99% MSME 39112 42642 41574 -1068 -2.50% 2462 6.30% Corporate/others 60226 58002 51802 -6200 -10.69% -8

  16. Slide 16: RAM Performance

    RAM PERFORMANCE (Rs. In Crores) Parameters Sep-23 Jun-24 Sep-24 Q-o-Q % Y-o-Y % RETAIL CREDIT 45482 51029 54291 6.39% 19.37% Of which Home 25596 28788 29927 3.96% 16.92% RETAIL BREAK UP - SEP -24 Education 3106 2630 2676 1.75% -13.84% Others Vehicle 3972 4713 4919 4.38% 23.85% 26% Personal 1759 2224

  17. Slide 17: Agriculture

    AGRICULTURE (Rs. In Crores) % Share to Domestic Period Agri Advances Domestic Advances Advances Sep-23 191823 47003 24.50% Dec-23 198054 50326 25.41% Mar-24 200697 55636 27.72% Jun-24 212459 60786 28.61% Sep-24 212995 65327 30.67% Agri Advances Sep-24 65327 60786 55636 47003 50326 Sep-23 Dec-23 Mar-

  18. Slide 18: MSME

    MSME (Rs. In Crores) Category Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Micro 23607 24171 24780 18977 20178 Small 7471 7633 7812 8002 7883 Medium 8033 8839 8960 15662 13514 Total 39111 40643 41552 42642 41574 MSME BREAKUP SEP-24 Small, 19% Micro, 49% Medium, 32% 18 Performance Analysis Q2-FY25

  19. Slide 19: Investment

    INVESTMENT (Rs. In Crores) Parameters Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Domestic Investments 93744 96044 96752 97955 103128 SLR 66005 68029 69297 72823 78218 Non SLR 27739 28015 27455 25132 24910 Held to Maturity 80938 81709 81860 87296 90232 Available for Sale 12806 14127 14892 8767 11213 Held for

  20. Slide 20: Valuations

    VALUATIONS Particulars Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 *Return on Equity (%) 16.16 17.70 18.50 14.10 16.90 *Basic & Diluted Earning per Share 0.33 0.38 0.43 0.33 0.41 *Price Earning Ratio 141.48 113.32 140.23 192.01 140.41 Book value per share (in Rs) 8.35 8.93 9.56 9.43 10.04 Price/Book value (i

  21. Slide 21: NPA Management

    NPA MANAGEMENT (Rs. In Crores) Details Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 i) Opening Gross NPAs 13629 9893 8441 6794 6649 a. Cash Recoveries 329 212 322 139 219 b. Upgradation 181 163 90 52 102 c. Write-Offs 3559 1491 1567 251 370 d. Sale to ARCs 7 0 17 0 0 e. Other Reductions 0 0 0 0 0 ii) Total Re

  22. Slide 22: NPA Management

    NPA MANAGEMENT GNPA % NNPA % 4.74% 0.68% 3.90% 0.62% 3.10% 0.57% 0.51% 2.89% 2.72% 0.47% Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 PCR SLIPPAGE RATIO 96.76% 96.85% 96.85% 96.96% 97.06% 86.20% 0.18% 84.57% 0.17% 0.16% 82.09% 83.05% 82.65% 0.13% 0.11% Sep-23 Dec-23 Mar-24 J

  23. Slide 23: Sector-wise Credit Deployment & NPA

    SECTOR-WISE CREDIT DEPLOYMENT & NPA (Rs. In Crores) Sep-23 Jun-24 Sep-24 Segmental NPAs ADV NPA Ratio % ADV NPA Ratio % ADV NPA Ratio % Retail 45482 1377 3.03% 51029 897 1.76% 54291 935 1.72% Agri 47003 2228 4.74% 60786 2002 3.29% 65327 1920 2.94% MSME 39112 2373 6.07% 42642 2104 4.93% 41574 1754 4.

  24. Slide 24: Capital Adequacy

    CAPITAL ADEQUACY (Rs. In Crores) Particulars Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Market Risk RWA 7814 8481 8892 1602 1441 Operational Risk RWA 16705 16705 16705 19183 19183 Credit Risk RWA 106838 114570 118382 124051 130555 Total RWA (A) 131357 139756 143979 144836 151179 CET 1 18135 19495 20840 2170

  25. Slide 25: Movement of CRAR & RWAs

    MOVEMENT OF CRAR & RWAs CRAR 17.82% 17.28% 17.45% 17.00% 16.80% SE P - 2 3 DEC - 2 3 MA R- 2 4 JUN - 2 4 SE P- 2 4 CREDIT RWA TO ADVANCE RATIO TOTAL RWA TO ADVANCE RATIO 56.73% 65.74% 65.69% 54.05% 53.91% 64.65% 62.95% 53.00% 62.88% 51.14% SE P - 2 3 DEC - 2 3 MA R- 2 4 JUN - 2 4 SE P - 2 4 SE P - 2

  26. Slide 26: Financial Inclusion

    FINANCIAL INCLUSION PMJDY Account (Number in Lakhs) PMJDY Account Balance (in Crs) 83.41 3646 80.78 78.93 3541 3558 3486 76.69 3432 73.55 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 PMJDY Account (Number in Lakhs) PMJDY Account Balance PMJDY Zero balance Accounts(No in Lakh

  27. Slide 27: CASA & Deposits Growth in Last Years

    CASA & Deposits Growth in last 5 years (Rs. In Crore) CASA in Rs. CASA in % 1,25,508 43.44% 43.74% 43.90% 1,13,877 1,14,113 42.52% 1,02,165 89,751 40.26% March March March March March March March March March March 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Term Deposits in Rs. Total Deposits

  28. Slide 28: Advances Growth in Last Years

    Advances Growth in last 5 years (Rs. In Crore) Retail Advances Agriculture Advances MSME Advances 55,636 48,514 41,552 42,400 43,988 34,856 36,961 35,106 38,577 29,494 30,423 34,196 28,694 25,678 26,849 March March March March March March March March March March March March March March March 2020 20

  29. Slide 29: Retail Segment Loans Growth in Last Years

    Retail Segment Loans growth in last 5 years (Rs. In Crore) Personal Loans Home Loans Vehicle Loans 2,083 27,621 4,491 24,116 20,483 3,492 3,751 1,537 17,668 2,985 3,333 1,095 15,092 871 929 March March March March March March March March March March March March March March March 2020 2021 2022 2023

  30. Slide 30: Decreasing NPA Levels & Increase in PCR

    Decreasing NPA Levels & Increase in PCR over 5 years (Rs. In Crore) Gross NPA in Rs. Net NPA in Rs. NNPA (%) 19,913 5.44% 16,323 15,299 14,072 6,603 3.58% 4,578 3,825 2.65% 6,794 3,266 1.83% 1,217 0.57% March March March March March March March March March March March March March March March 2020 20

  31. Slide 31: Consistent Growth in Share Values

    Consistent Growth in Share Values over 5 years Book value per share (in Rs.) Share Price (in Rs.) 9.56 59.98 7.75 6.54 4.97 4.11 22.55 16.00 18.15 7.05 March March March March March March March March March March 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Market Capitalization (Rs. In Crore) E

  32. Slide 32: Technology & Digital Initiatives

    Technology & Digital Initiatives 32 Performance Analysis Q2-FY25

  33. Slide 33: Introduction

    Technology & Digital Initiatives Introduction Indian Overseas Bank has got a robust and resilient technology platform in place to serve customers across the diverse generations. We are committed in our digital transformation journey to bring customer delight through various digital innovations and h

  34. Slide 34: Focus Areas

    Technology & Digital Initiatives Focus Areas Customer Operational Centricity Efficiency Technology Digital Resilience Innovation 34 Performance Analysis Q2-FY25

  35. Slide 35: Customer Centricity

    Technology & Digital Initiatives 01 Self-service hub “digital.iob.in” with bouquet of digital service under one place Any-time Any-where delivery of services like 02 account opening, nomination, Re-KYC by bank Customer Centricity staff themselves made possible via Tab devices Prioritizing the overal

  36. Slide 36: Digital Innovation

    Technology & Digital Initiatives Aadhaar Face Authentication ensuring 01 inclusiveness in authentication for various services like Account opening, Re-KYC, Nomination, etc. via Tab banking 02 Collaboration with Fintechs to develop unique solutions for a differentiated experience Digital Innovation P

  37. Slide 37: Operational Efficiency

    Technology & Digital Initiatives 01 Digital App for Collection and Recovery enhancing collections efficiency 02 CRM tool for widening and deepening customer engagements Operational Efficiency Enhancing operational efficiency powered through blend of digital centric process re- 03 Loan Origination Sy

  38. Slide 38: Value Delivery

    Technology & Digital Initiatives Enhanced Customer Satisfaction: Improved 01 customer satisfaction, engagement, and loyalty through streamlined digital interactions, personalized services, and user-friendly interfaces Value Delivery Productivity Enhancement: Optimized internal Digital initiatives ha

  39. Slide 39: Digital Outreach

    DIGITAL OUTREACH ATM/CDM USERS INTERNET BANKING REGISTERED USERS (NO OF OUTLETS) (IN LAKHS) 31.25 31.41 3515 30.18 3508 28.97 3506 3505 3501 27.77 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 MOBILE BANKING REGISTERED USERS UPI REGISTERED USERS (IN LAKHS) (IN LAKHS) 90.17 10

  40. Slide 40: Customer Touch Point Pan India

    CUSTOMER TOUCH POINT PAN INDIA Domestic Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Presence Branches 3223 3226 3236 3250 3269 * ATM/CR 3515 3508 3506 3505 3501 BC 3891 4886 6379 7078 8023 * Excluding 8 RLPCs(Retail Loan Processing Centres) as on 30.09.2024 SEP-24 BRANCHES Metro, 706, Rural, 916, 28% 22% Sem

  41. Slide 41: Foreign Outreach

    FOREIGN OUTREACH HONG KONG BRANCH SINGAPORE BRANCH COLOMBO BRANCH BANGKOK BRANCH 41 Performance Analysis Q4-FY25

  42. Slide 42: Share Holding Pattern as on 30.09.2024

    SHARE HOLDING PATTERN AS ON 30.09.2024 Category of Shareholder % share Government of India 96.38% Government of India, 96.38% FI/Banks 0.00% Foreign Portfolio Investor (Corporate) 0.04% Mutual Funds 0.07% Insurance Companies 1.23% Individual 1.93% ESOP/ESOS/ESPS 0.21% Bodies Corporate 0.05% NRI 0.05

  43. Slide 43: Strategic Investment Joint Venture

    STRATERGIC INVESTMENT 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 Name on Entity Shareholding % Indian Overseas Bank 18.06% Shareholding % Indian

  44. Slide 44: Assets & Liabilities

    ASSETS & LIABILITIES Rs in Lakhs Balance Sheet as at 30.09.2024 LIABILITIES Standalone Consolidated Particulars 30.09.24 30.09.23 30.09.24 30.09.23 Capital 1890241 1890241 1890241 1890241 Reserves and Surplus 956977 746792 920231 707370 Deposits 31065222 27309290 31076959 27326093 Borrowings 2876420

  45. Slide 45: ESG Initiatives

    ESG INITIATIVES ENVIRONMENTAL SOCIAL GOVERNANCE ENVIRONMENTAL 45 Performance Analysis Q2-FY25

  46. Slide 46: ESG Initiatives: Environmental

    ESG INITIATIVES IOB VEHICLE LOAN FOR E BIKE/CAR ENVIRONMENTAL SOCIAL GOVERNANCE IOB TEJAS FOR RENEWAL SOLAR ENERGY EQUIPMENT CREDIT FACILITY TO WIND MILL PAPERLESS BANKING ENVIRONMENTAL 46 Performance Analysis Q2-FY25

  47. Slide 47: ESG Initiatives: Social

    ESG INITIATIVES VARIOUS IOB CREDIT SCHEME FOR WOMEN ENVIRONMENTAL SOCIAL GOVERNANCE THE SAKTHI- IOB CHIDAMBARAM CHETTIAR MEMORIAL TRUST FINANCIAL LITERACY CENTERS (SNEHA) SOCIAL FRIENDLY WORK ENVIRONMENT 47 Performance Analysis Q2-FY25

  48. Slide 48: ESG Initiatives: Governance

    ESG INITIATIVES COMPLYING WITH ALL GUIDELINES &REGULATIONS ENVIRONMENTAL SOCIAL GOVERNANCE EFFECTIVE MONITORING CUSTOMER RIGHT POLICY EFFECTIVE CUSTOMER COMPLAINTS RESOLUTION GOVERNANCE 48 Performance Analysis Q2-FY25

  49. Slide 49: Accolades & Awards

    ACCOLADES & AWARDS MD and CEO of Indian Overseas Bank, Shri Ajay Kumar Srivastava received Rajbhasha Kirti Pratham Award for the year 2023-24 from Honorable Home and Cooperation Minister Shri Amit Shah. Also, IOB's book 'Bhasha Sangam' was also released on the occasion of Hindi Day on 14 September 2

  50. Slide 50: Accolades & Awards

    ACCOLADES & AWARDS Indian Overseas Bank's Staff College, Anna Nagar, Chennai, has been awarded the prestigious ISO 9001:2015 certification. This accolade reflects our unwavering dedication to providing exceptional internal training and innovative course development for our staff. 50 Performance Anal

  51. Slide 51: Events at Glance

    EVENTS AT GLANCE We join the global mission to spread awareness on staying secure in our digital world. This year’s theme: “Cyber Surakshit Bharat – SatarkNagrik” aligns with our commitment to a safe cyber environment which was inaugurated by MD & CEO Shri. Ajay Kumar Srivastava & ED Shri. Joydeep D

  52. Slide 52: Events at Glance

    EVENTS AT GLANCE Indian Overseas Bank launches 08 Retail Loan Processing Centres (RLPCs) – 01 in physical mode at Chennai & 07 in virtual mode across Bangalore, Coimbatore, Delhi, Hyderabad, Kolkata, Lucknow, and Mumbai! Inaugurated by MD & CEO Shri Ajay Kumar Srivastava, RLPCs streamline loan appro

  53. Slide 53: Products & Services

    PRODUCTS & SERVICES 53 Performance Analysis Q2-FY25

  54. Slide 54: Products & Services

    PRODUCTS & SERVICES 54 Performance Analysis Q2-FY25

  55. Slide 55: Thank You

    THANK YOU We express our heartfelt gratitude to all our stakeholders for their support & trust and solicit their continued patronage to make our beloved Bank grow exponentially in the coming years Please provide your valuable feedback @investor.iobnet.co.in visit us @ https://www.iob.in Follow us on

  56. Slide 56: 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" "future

Indian Overseas Bank — Q2 FY2024-25 Earnings Presentation on 6ix