Indian Overseas Bank · NSE:IOB

Indian Overseas Bank — Q1 FY2023-24 Earnings Presentation

42 slides from Indian Overseas Bank's earnings presentation, Aug 3, 2023

  1. Slide 1: Performance Analysis Q1-FY 2023-24

    Performance Analysis Q1-FY 2023-24 1

  2. Slide 2: Index

    INDEX VISION ---------- 3 PERFORMANCE HIGHLIGHTS ---------- 4 FINANCIAL PERFORMANCE ---------- 6 BUSINESS PERFORMANCE ---------- 13 NPA MANAGEMENT ---------- 22 CAPITAL ADEQUACY ---------- 25 FINANCIAL INCLUSION ---------- 27 DIGITAL INITIATIVES ---------- 28 CUSTOMER TOUCH POINT ---------- 33 SHARE

  3. Slide 3: Vision, Core Value, Mission

    VISION CORE VALUE MISSION

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

    PERFORMANCE HIGHLIGHTS IND BUSINESS GROWTH EX (Rs. In Crores) Parameters Jun-22 Jun-23 Y-O-Y ( %) BUSINESS GROWTH CASA 112012 116694 4.18% CASA% 43.07% 44.14% 106 bps Tot al Deposit s 260044 264401 1.68% Home Loan 21403 24791 15.83% Jewel Loan 33456 38837 16.08% Advances 163544 191263 16.95% Busines

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

    PERFORMANCE HIGHLIGHTS ASSET QUALITY (Rs. In Crores) Parameters Jun-22 Jun-23 Y-o-Y(%) Gross NPA 14919 13629 -8.65% QUALITY ASSET Net NPA 3698 2590 -29.96% GNPA% 9.12% 7.13% 199 bps NNPA% 2.43% 1.44% 99 bps STREGTHENING FINANCIAL INDICATORS (Rs. In Crores) Parameters Jun-22 Jun-23 Y-o-Y(%) STRENGTHE

  6. Slide 6: Financial Performance

    FINANCIAL PERFORMANCE (Rs. In Crores) Quarter Ending Growth % Particulars 9 Q1 22-23 Q4 22-23 Q1 23-24 Q-o-Q % Y-o-Y % M o Interest Income 4435 5192 5424 4.47% 22.31% Interest Expenses 2681 2916 3102 6.35% 15.68% Net Interest Income 1754 2276 2323 2.05% 32.43% Non Interest Income 593 1430 803 -43.84

  7. Slide 7: Total Income

    TOTAL INCOME (Rs. In Crores) Quarter Ending Growth % Particulars 9 Q1 22-23 Q4 22-23 Q1 23-24 Q-o-Q % Y-o-Y % M o Interest on Loans 2865 3632 3913 7.76% 36.59% Interest on Investment 1516 1445 1427 -1.30% -5.90% Other Interest Income 54 115 84 -26.94% 56.23% Total Interest Income 4435 5192 5424 4.47

  8. Slide 8: Fee Based Income

    FEE BASED INCOME (Rs. In Crores) Quarter Ending Growth % Particulars 9 Q1 22-23 Q4 22-23 Q1 23-24 Q-o-Q % Y-o-Y % M o A.Exchange & Commission 76 151 59 -60.57% -21.87% B.Income from Non Fund Based Business 46 50 46 -8.88% -0.55% C.Processing charges 74 92 95 3.56% 28.25% D.ATM/DBD Related Income 71

  9. Slide 9: Total Expenses

    TOTAL EXPENSES (Rs. In Crores) Quarter Ending Growth % Particulars 9 Q1 22-23 Q4 22-23 Q1 23-24 Q-o-Q % Y-o-Y % M o Interest on Deposits 2604 2717 2846 4.75% 9.28% Interest on Borrowings 77 200 256 28.21% 232.22% Total Interest Expenses 2681 2916 3102 6.35% 15.68% Staff Expenses 850 1098 1215 10.66%

  10. Slide 10: Profit Parameter

    PROFIT PARAMETER (Rs. In Crores) Quarter Ending Growth % Particulars 9 Q1 22-23 Q4 22-23 Q1 23-24 Q-o-Q % Y-o-Y % M o Operating Profit 1026 1882 1345 -28.50% 31.12% Provisions 634 1232 845 -31.39% 33.27% of which NPA Provisions 133 1028 809 -21.26% 508.50% Other Provisions 501 204 36 -82.51% -92.88%

  11. Slide 11: Performance Ratios - Quarterly

    PERFORMANCE RATIOS - QUARTERLY Cost of Deposits Cost of Funds 4.38 4.44 4.27 4.35 4.16 4.19 4.11 4.10 4.06 4.04 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Yield on Investment Yield on Advances 8.52 8.52 8.43 5.94 6.00 5.83 5.89 5.86 7.83 7.34 Jun-22 Sep-22 Dec-22 Mar-23 Ju

  12. Slide 12: Performance Ratios - Quarterly

    PERFORMANCE RATIOS - QUARTERLY Yield on Funds Return on Assets 7.50 0.83 7.27 7.31 0.73 0.65 0.62 6.76 0.51 6.40 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Net Interest Margin Cost to Income 3.27 3.20 3.21 2.79 56.27 56.96 2.53 51.62 52.21 49.23 Jun-22 Sep-22 Dec-22 Mar-23

  13. Slide 13: Business Performance - Global

    BUSINESS PERFORMANCE - GLOBAL (Rs. In Crores) Particulars Jun-22 Mar-23 Jun-23 Q-o-Q (%) Y-o-Y (%) CASA 112012 114113 116694 2.26% 4.18% a)Retail Term Deposits 136781 130303 129729 -0.44% -5.16% b)Bulk Deposits 7728 11928 13314 11.62% 72.28% c)Overseas Term Deposits 3523 4539 4664 2.74% 32.38% Term

  14. Slide 14: Deposit Composition

    DEPOSIT COMPOSITION (Rs. In Crores) Q-o-Q variation Y-o-Y variation Parameters Jun-22 Mar-23 Jun-23 Amount % Amount % Domestic-Deposits Savings Bank 94790 97211 96900 -311 -0.32% 2110 2.23% Current Account 15419 14882 17692 2810 18.88% 2273 14.74% CASA 110209 112093 114592 2499 2.23% 4383 3.98% Term

  15. Slide 15: Business Composition

    BUSINESS COMPOSITION BUSINESS PORTFOLIO SHARE JUNE 23 Advances 42% Savings Bank 21% Current Deposits Term Deposits 4% 33% % SHARE OF ADVANCES-JUNE 23 POP CATEGORY WISE DISTRIBUTION OF DEPOSITS:JUNE 23 Corporate/Others Retail 29% Metro 25% 46% Urban 22% Overseas 3% Rural MSME Agri Semi Urban 11% 20%

  16. Slide 16: Advances

    ADVANCES (Rs. In Crores) Q-o-Q variation Y-o-Y variation Parameters Jun-22 Mar-23 Jun-23 Amount % Amount % Retail 38297 42400 43731 1332 3.14% 5434 14.19% Agri 40575 43988 44853 865 1.97% 4278 10.54% MSME 30450 34856 35947 1091 3.13% 5497 18.05% Corporate/others 40937 52425 50080 -2344 -4.47% 9143 2

  17. Slide 17: RAM Performance

    RAM PERFORMANCE (Rs. In Crores) Parameters Jun-22 Mar-23 Jun-23 Q-o-Q % Y-o-Y % RETAIL BREAK UP -JUNE-23 RETAIL CREDIT 38297 42400 43731 3.14% 14.19% Others 22% Of which Personal Home 21403 24116 24790 2.79% 15.82% 4% Home Education 3655 3443 3398 -1.30% -7.03% Vehicle 57% 9% Vehicle 3570 3751 3817

  18. Slide 18: Agriculture

    AGRICULTURE (Rs. In Crores) % Share to Domestic Agri Period Domestic Advances Advances Advances Jun-22 150259 40575 27.00% Mar-23 173669 43988 25.33% Jun-23 174612 44853 25.69% Agri Advances June-23 44853 43988 40575 Jun-22 Mar-23 Jun-23 18 Performance Analysis Q1-FY24

  19. Slide 19: MSME

    MSME (Rs. In Crores) Category Jun-22 Mar-23 Jun-23 Micro 18207 23654 24420 Small 6699 6959 7207 Medium 5543 4243 4320 Total 30450 34856 35947 MSME BREAKUP-JUNE-23 Micro, 67.93% Medium,12.02% Small, 20.05% 19 Performance Analysis Q1-FY24

  20. Slide 20: Investment

    INVESTMENT (Rs. In Crores) Parameters Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Domestic Investments 96794 93337 92642 92134 91170 SLR 68225 65224 65043 64459 63455 Non SLR 28569 28113 27599 27675 27715 Held to Maturity 79192 77861 77454 77742 79981 Available for Sale 17602 15476 15158 14392 11128 Held for

  21. Slide 21: Valuations

    VALUATIONS Particulars Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 *Return on Equity (%) 12.51 15.70 16.56 18.32 13.44 *Basic & Diluted Earning per Share 0.21 0.27 0.29 0.34 0.26 *Price Earning Ratio 79.29 64.81 109.29 65.57 92.33 Book value per share (in Rs) 6.73 6.98 7.21 7.75 8.01 Price/Book value (in Rs)

  22. Slide 22: NPA Management

    NPA MANAGEMENT (Rs. In Crores) Details Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 i) Opening Gross NPAs 15299 14919 14726 14333 14072 a. Cash Recov eries 379 243 340 292 248 b. Upgradation 260 207 380 175 143 c. Write-Offs 367 1287 1356 403 597 d. Sale to ARCs 0 11 0 0 0 e. Other Reductions 0 0 0 0 0 ii) To

  23. Slide 23: NPA Management

    NPA MANAGEMENT GNPA NNPA 9.12% 8.53% 2.43% 2.56% 2.43% 8.19% 7.44% 1.83% 7.13% 1.44% Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 PCR 92.63% 94.03% 91.86% 90.94% 91.34% 81.01% 75.21% 76.79% 71.85% 72.09% Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 PCR (including techwrite off) PCR (e

  24. Slide 24: Sector-wise Credit Deployment & NPA

    SECTOR-WISE CREDIT DEPLOYMENT & NPA (Rs. In Crores) Jun-22 Mar-23 Jun-23 Segmental NPAs Adv NPA Ratio % ADV NPA Ratio % ADV NPA Ratio % Retail 38297 1019 2.66% 42400 1802 4.25% 43731 1889 4.32% Agri 40575 2948 7.27% 43988 2974 6.76% 44853 2910 6.49% MSME 30450 3450 11.33% 34856 3193 9.16% 35947 2877

  25. Slide 25: Capital Adequacy

    CAPITAL ADEQUACY (Rs. In Crores) Particulars Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Market Risk RWA 10352 9058 8695 8208 6506 Operational Risk RWA 15066 15066 15066 15066 16705 Credit Risk RWA 96162 99060 100294 106706 106969 Total RWA (A) 121580 123184 124055 129981 130180 CET 1 14279 14921.13 15704 16

  26. Slide 26: Movement of CRAR & RWAs

    MOVEMENT OF CRAR & RWAs CRAR-Q-o-Q Movement 16.10% 16.56% 14.79% 15.14% 15.16% Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Credit RWA to Advance Ratio Total RWA to Advance Ratio 58.80% 57.36% 57.29% 56.46% 55.93% 74.34% 71.32% 70.87% 68.77% 68.06% Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Jun-22 Sep-22 Dec-22 Mar-2

  27. Slide 27: Financial Inclusion

    FINANCIAL INCLUSION PMJDY Account (Number in Lakhs) PMJDY Account Balance (in Crs) 69.15 67.96 3546 3509 3510 3325 66.18 63.50 1944 60.52 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 PMJDY Account (Number in Lakhs) PMJDY Account Balance PMJDY Zero balance Accounts No in Lakh

  28. Slide 28: Digital Initiatives: Go Digital

    Digital initiatives IOB MOBILE BANKING APP IOB DIGITAL BHIM IOB UPI PRODUCTS INTERNET BANKING GO DIGITAL !!! 28 Performance Analysis Q1-FY24

  29. Slide 29: IOB Mobile Banking App

    IOB MOBILE BANKING APP Performance Analysis Q4-FY24 29 Performance Analysis Q1-FY24

  30. Slide 30: Digital Initiatives: BHIM IOB UPI

    DIGITAL INITIATIVES T&C Apply UPI BHIM IOB UPI MEANS 30 Performance Analysis Q1-FY24

  31. Slide 31: Digital Initiatives: e-BG

    DIGITAL INITIATIVES e -BG Get Your Bank Guarantee Digitally !!! e -BG 31 Performance Analysis Q1-FY24

  32. Slide 32: Digital Outreach

    DIGITAL OUTREACH ATM/CR USERS INTERNET BANKING REGISTERED USERS (NO OF OUTLETS) (IN LAKHS) 3495 26.45 3477 3455 25.59 3438 24.73 23.82 3382 22.93 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 MOBILE BANKING REGISTERED USERS UPI REGISTERED USERS (IN LAKHS) (IN LAKHS) 75.19 71.

  33. Slide 33: Customer Touch Point Pan India

    CUSTOMER TOUCH POINT PAN INDIA Domestic Presence Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Branches 3214 3214 3220 3220 3222 ATM/CR 3382 3438 3455 3477 3495 BC 2639 2228 2742 3190 3322 JUNE-23 BRANCHES JUNE-23 ATM/CR Metro, Rural, Metro, Rural, 725, 907, 698, 839, 21% 28% 22% 24% Semi Semi Urban, Urban, Ur

  34. Slide 34: Foreign Outreach

    FOREIGN OUTREACH HONG KONG BRANCH SINGAPORE BRANCH COLOMBO BRANCH BANGKOK BRANCH Performance Analysis Q1-FY24

  35. Slide 35: Share Holding Pattern

    SHARE HOLDING PATTERN Category of Shareholder % share Shareholding Pattern-June-23 Government of India 96.38% Government of India, 96.38% FI/Banks 1.23% Foreign Portfolio Investor (Corporate) 0.09% Mutual Funds 0.08% Insurance Companies 0.02% Institution, 1.57% Individual 1.69% ESOP/ESOS/ESPS 0.26%

  36. Slide 36: 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 of Entity Shareholding % Indian Overseas Bank 18.06% Shareholding % Dabur I

  37. Slide 37: Assets & Liabilities

    ASSETS & LIABILITIES SUMMARISED BALANCE SHEET (STANDALONE) Rs in Lakhs. Particulars 30.06.2023 30.06.2022 (Reviewed) (Reviewed) Capital & Liabilities Capital 18,90,241 18,90,241 Reserves and Surplus 6,84,343 4,50,044 Minority Interest 0 0 Deposits 2,64,40,112 2,60,04,455 Borrowings 17,83,962 5,33,47

  38. Slide 38: 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 38 Performance Analysis Q1-FY24

  39. Slide 39: 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 39 Performance Analysis Q1-FY24

  40. Slide 40: ESG Initiatives: Governance

    ESG INITIATIVES COMPLYING WITH ALL GUIDELINES &REGULATIONS ENVIRONMENTAL SOCIAL GOVERNANCE EFFECTIVE MONITORING CUSTOMER RIGHT POLICY EFFECTIVE CUSTOMER COMPLAINTS RESOLUTION GOVERNANCE 40 Performance Analysis Q1-FY24

  41. Slide 41: 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

  42. Slide 42: 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

Indian Overseas Bank — Q1 FY2023-24 Earnings Presentation on 6ix