Idbi Bank Limited · NSE:IDBI
Idbi Bank — Q1 FY2021 Earnings Presentation
51 slides from Idbi Bank's earnings presentation, Jul 28, 2020
Slide 1: Exchange filing cover letter
314-gia3til s IDBI Bank Limited cbieiteier : 3fIta413f1 dT<R, Regd. Office : IDBI Tower, sac <bid 0-24, <hlb qtg, WTC Complex, Cuffe Parade, CIN: L65190MH2004G01148838 - 400 005. Mumbai - 400 005. (+91 22) 6655 3355, 2218 9111 TEL.: (+91 22) 6655 3355, 2218 9111 1-2,1: (+91 22) 2218 0411 FAX : (+91
Slide 2: Investors Presentation: Financial Results Q1 FY 2020-21
INVESTORS PRESENTATION FINANCIAL RESULTS Q1 -FY 2020-21 July 28, 2020 Page 1
Slide 3: Content
Content Highlights Financial Performance Business Performance Treasury Operations Asset Quality Capital IDBI-LIC Synergy Prompt Corrective Action Matrix Digital Banking and Financial Inclusion Subsidiaries Way Forward Page 2
Slide 4: Highlights
Highlights Page 3
Slide 5: Major Highlights
Major Highlights PAT for second consecutive quarter. PAT of Rs.144 crore for Q1 FY 2021 (PAT - 1 Rs.135 crore in Q4 FY 2020 and Net Loss of Rs.3801 crore in Q1 FY 2020) PBT of Rs.438 crore for Q1 FY 2021 (PBT – Rs.290 crore in Q4 FY 2020 and loss 2 before tax of Rs.5381 crore in Q1 FY 2020) 3 Operat
Slide 6: Key Metrics for Q1 FY 2021
Key Metrics for Q1 FY 2021 Profitability Bank reports PAT of Rs.144 crore, as against Net Loss of Rs.3801 crore for Q1 FY 2020 PBT at Rs.438 crore, as against loss before tax of Rs.5381 crore (Q4 FY 2020 Rs.290 crore) Operating Profit for Q1 FY21 (Rs.1326 crore), up by 39% YoY (Q4 FY 2020 Rs.1
Slide 7: Key Metrics for Q1 FY 2021
Key Metrics for Q1 FY 2021 Asset Quality Net NPA at 3.55%, improved by 447 bps YoY and by 64 bps QoQ GNPA at 26.81%, improved by 231 bps YoY and by 72 bps QoQ PCR improves to 94.71%, up by 692 bps YoY and 97 bps QoQ Fresh slippages ratio reduced by 258 bps YoY and 53 bps QoQ Capital Tier 1
Slide 8: Financial Performance
Financial Performance Page 7
Slide 9: Profit & Loss
Profit & Loss (Rs.Crore) Quarter ended Particulars Var (YoY) % Var (QoQ) % FY 20 Jun-19 Mar-20 Jun-20 Interest Income 5091 5598 4897 (4) (13) 20825 Interest Expenses 3633 3242 3124 (14) (4) 13847 Net Interest Income 1458 2356 1773 22 (25) 6978 Other Income 833 1326 1004 21 (24) 4470 Net Total Income
Slide 10: Total Income
Total Income (Rs.Crore) Quarter ended Variance Variance Particulars FY 20 Jun-19 Mar-20 Jun-20 (Y-o-Y) % (Q-o-Q) % Interest on Advances 3192 3452 3059 (4) (11) 13093 Interest on Invest. 1570 1553 1522 (3) (2) 6234 including bal. with RBI & Other Inter Bank Funds Other Interest Income 329 593 317 (4)
Slide 11: Fee Based Income
Fee Based Income (Rs.Crore) Other Income Quarter ended Variance Variance FY Ended Jun-19 Mar-20 Jun-20 (Y-o-Y) % (Q-o-Q) % Mar-20 BG Commission 57 59 54 (5) (8) 276 LC Commission 60 56 48 (20) (14) 236 Bills Commission 8 4 3 (63) (25) 23 Proc. Fee & Incidental Charges 120 158 95 (21) (40) 506 Remitt
Slide 12: Total Expenses
Total Expenses (Rs.Crore) Quarter ended Variance Variance Particulars FY20 Jun-19 Mar-20 Jun-20 (Y-o-Y) % (Q-o-Q) % Interest paid on Deposits 2899 2588 2499 (14) (3) 11096 Interest paid on Borrowings 591 525 450 (24) (14) 2258 Interest on RBI / inter bank borrowings 143 129 175 22 36 493 Total Inter
Slide 13: Provisions & Contingencies
Provisions & Contingencies (Rs.Crore) Quarter ended Particulars Var. (YoY) Var (QoQ) FY 20 Jun-19 Mar-20 Jun-20 Depreciation on Investment 182 20 1007 825 987 1697 Provision – NPAs 7009 (1511) (1335) (8344) 177 9483 -Out of above Technical Write off provision 1501 - 785 (716) 785 3556 Provision – St
Slide 14: Yield Ratios (cumulative)
Yield Ratios (cumulative) Yield on Advances NIM 2.81% 9.56% 9.54% 2.61% 2.23% 2.25% 2.13% 9.22% 9.14% 8.62% June 19 Sep 19 Dec 19 FY 20 June 20 June 19 Sep 19 Dec 19 FY 20 June 20 Cost to Income (excl Gain on Sale of Non Cores Assets) 57.04% 61.72% 60.95% 58.48% 52.25% June 19 Sep 19 Dec 19 FY 20 Ju
Slide 15: Business Performance
Business Performance Page 14
Slide 16: Balance Sheet
Balance Sheet (Rs.Crore) As at Jun-19 Mar-20 Jun-20 LIABILITIES Capital 7736 10381 10381 Reserve & Surplus 26075 23644 23788 Deposits 230784 222424 219379 Borrowings 30968 36749 36206 Other Liabilities & Provisions 9497 6730 9746 Total 305060 299928 299500 ASSETS Cash & Balance with RBI 12489 10539
Slide 17: Business Performance
Business Performance (Rs.Crore) Particulars Jun-19 Mar-20 Jun-20 Total Business [Deposit + Net Advance] 367489 352266 345254 Total Deposits 230784 222424 219379 CASA Share 43.15% 47.74% 47.55% CASA Deposits 99590 106188 104315 Saving Deposits 59330 65658 66882 SB Deposits to Total Deposits % 25.71%
Slide 18: Cost of Deposit & Cost of Funds (Cumulative)
Cost of Deposit & Cost of Funds (Cumulative) Cost of Deposits 5.29% 5.23% 5.16% 5.08% 4.65% June 19 Sep 19 Dec 19 FY 20 June 20 Cost of Funds 5.63% 5.58% 5.52% 5.44% 4.96% June 19 Sep 19 Dec 19 FY 20 June 20 Page 17
Slide 19: Advances
Advances (Rs.Crore) Parameters Jun-19 Mar-20 Jun-20 YoY var.(%) QoQ var.(%) Global Gross Advances 177415 171690 165890 (6) (3) - Corporate 85230 75493 71286 (16) (6) - Retail 92185 96197 94604 3 (2) Corporate : Retail (Ratio) 48:52 44:56 43:57 Standard Gross Advance 125758 124417 121415 (3) (2) Glob
Slide 20: Retail Products Growth
Retail Products Growth (Rs.Crore) Structured Retail Assets Jun-19 Mar-20 Jun-20 Growth (YoY) (%) Growth (QoQ) (%) HL including LIP 38669 42794 42551 10 (1) LAP 12714 12712 12525 (1) (1) AL 1994 1954 1907 (4) (2) EL 1003 1073 1055 5 (2) PL 559 606 596 7 (2) Structured Retail Assets 54938 59138 58633
Slide 21: Priority Sector
Priority Sector (Rs.Crore) Jun 19 Mar 20 Jun 20 Growth over Particulars Amount % of ANBC Amount % of ANBC Amount % of ANBC March-20 1 2 3 4 5 6 7 (8)=[(6)-(4)] ANBC 190461 186090 172206 Priority Sector Advances (a+b+c) 79749 41.87 77586 41.69 70042 40.67 (7544) (a) Agriculture (i+ii+iii+iv) 38405 20
Slide 22: Treasury Operations
Treasury Operations [@)IDBI Bank] P2021
Slide 23: Investments
Investments (Rs.Crore) 3% 2% 32% 30% Category Jun-19 Mar-20 Jun-20 HFT HTM 55189 57059 57608 AFS AFS 27154 24607 24926 HTM 65% 69% HFT 2855 114 1350 Total 85198 81780 83884 Jun-19 Jun-20 AFS BREAKUP Parameter Jun-19 Mar-20 Jun-20 1840 SLR 66389 61885 63276 1940 Non SLR 19092 19127 21541 Non SLR (Ove
Slide 24: Asset Quality
Asset Quality Page 23
Slide 25: Asset Quality
Asset Quality PCR improved from 87.79% (Jun 2019) to 94.71% (Jun 2020) (Rs.Crore) Particulars Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Gross Advances 177415 176868 172386 171690 165890 Gross NPAs 51658 52053 49503 47272 44475 Gross NPAs as % of Gross Advances 29.12 29.43 28.72 27.53 26.81 Total Provisions
Slide 26: NPA Movement
NPA Movement (Rs.Crore) DESCRIPTION Q1 FY 20 Q2 FY 20 Q3 FY 20 Q4 FY 20 FY 20 Q1 FY 21 Opening Balance 50028 51658 52053 49503 50028 47272 Add: a. First Time NPA 3486 2059 2113 727 8384 69 b. Increase in existing NPA 622 479 1007 531 2638 62 Less: c. Settled 729 1234 3136 1457 6556 1288 d. Up-gradat
Slide 27: Asset Quality
Asset Quality 29.12% 29.43% 28.72% 27.53% 26.81% 8.02% 5.97% 5.25% 4.19% 3.55% Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Gross NPAs Net NPAs (Rs.Crore) 3486 3430 2059 2113 1759 1785 1332 867 727 69 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Quarterly Fresh Slippages Recoveries & Upgradation Page 26
Slide 28: NCLT – Summary
NCLT – Summary (Rs.Crore) NCLT Admitted DA 3 and Loss DA 2, DA 1 & SSA TWO PCR % 46020 100% 100% 24772 99.82% 26,597 6814 99.68% 11,090 14434 8,333 RBI List 1 RBI List 2 Others Total RBI List 1 RBI List 2 Others Total Asset Class of NCLT Cases Filed But Not Admitted PCR% Filed By 17745 17745 100% 15
Slide 29: SMA Position
SMA Position (Rs.Crore) 13465 SMA 0 SMA 1 SMA 2 11626 6295 3815 7894 1977 5971 2845 1887 1229 3084 2927 3033 530 4966 5283 1012 2990 1709 1542 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Corporate Retail 5120 5249 5279 8345 4039 6377 2317 2615 1933 767 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Total SMA includes NF
Slide 30: Capital
Capital Page 29
Slide 31: Capital Adequacy
Capital Adequacy (Rs.Crore) Particulars June-19 Sep-19 Dec-19 March-20 Jun-20 CET 1+CCB (Rs.) 10067 15559 16453 16736 17051 AT 1 (Rs.) 413 413 330 49 - Tier 1 Capital (Rs.) 10480 15972 16783 16785 17051 Tier 2 Capital (Rs.) 4375 4129 3971 4344 4470 Total Capital (Rs.) 14854 20102 20754 21128 21521 R
Slide 32: Shareholding Pattern
Shareholding Pattern (Rs.Crore) LIC GOI Others LIC GOI Others 2% 3% 47% 51% 46% 51% Jun 2019 Jun 2020 Particulars Jun-19 Jun-20 Book Value (Rs. per share) Rs.35.12 Rs.26.70 Market Capitalisation Rs.27,464 Cr Rs.45,778 Cr 52 Weeks High/ Low (NSE) (Rs. per share) Rs.47.45/ Rs.33.25 Rs.44.10/ Rs.18.60
Slide 33: IDBI-LIC Synergy
IDBI-LIC Synergy Page 32
Slide 34: Major Achievements in Synergies with LIC during Q1 - FY2021
Major Achievements in Synergies with LIC during Q1 - FY2021 Agreement executed for appointment of LICHFL-Financial Service Limited (LICHFL-FSL) as corporate DSA for sourcing of NSRA (MSME & Agriculture) and select SRA loans (Auto, Personal & Education Loan) MOU for Tie-up with LIC- Card Services Lim
Slide 35: Prompt Corrective Action Matrix
Prompt Corrective Action Matrix Page 34
Slide 36: Prompt Corrective Action (PCA) Matrix
Prompt Corrective Action (PCA) Matrix Risk Jun-20 Criteria Indicator Threshold 1 (T1) Threshold 2 (T2) Threshold 3 (T3) IDBI – Actual CRAR+CCB Complied <11.5% but >=9% <9% but >7.5% <7.5% 13.37% Capital (Breach (9%+2.5%) With of either CRAR or CET1 Ratio to trigger PCA) CET 1+CCB >=4.875% but Compli
Slide 37: Indicators on Parameters of PCA
Indicators on Parameters of PCA CET 1 % CRAR % Net NPA % 10.54% 10.59% 8.02% 9.27% 9.96% 11.98% 12.56% 13.31% 13.37% 5.97% 5.90% 8.14% 5.25% 4.19% 3.55% Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Provision Coverage Ratio % Credit RWA to A
Slide 38: Digital Banking & Financial Inclusion
Digital Banking & Financial Inclusion Page 37
Slide 39: Digital Frontrunners
Digital Frontrunners Customer Induced Financial Transaction Analysis QE - June 2019 QE - June 2020 UPI ATM Cash withdrawl 2% 2% Debit Card 1% 5% Branch Manual Transactions 4% 2% Branch Initiated Digital Transactions 9% 24% 5% Internet Banking 7% 91% customer NACH 7% 87% customer induced induced Mobi
Slide 40: Digital Frontrunners – Digital Offerings
Digital Frontrunners – Digital Offerings The total number of Debit cards issued are 127 lakhs Processed 1 crore transactions at Ecom/ POS in the Quarter ended June 2020. Total users under UPI are 31.61 lakhs 1.52X YoY growth in UPI users base 1.72X YoY growth in the UPI transactions, processed 5.05
Slide 41: Digital Frontrunners - Performance
Digital Frontrunners - Performance Bank’s Summary of performance as per MeitY (as on March 31, 2020) Bank’s Rank % of Digital transaction Achievement Overall Score (Amongst 50 Banks & Financial Institutions) 106.80 66 (Categorised as “Good”) 14 Payment Acceptance Channels (as on June 30, 2020) 99081
Slide 42: Digital Frontrunners – Go Mobile+ and Internet Banking Application
Digital Frontrunners – Go Mobile+ and Internet Banking Application Digital Offering Availability of 24x7 banking, hence increasing the convenience for the customer; Migration of customers from Branch channel to digital channel, hence increasing the cost efficiency of transaction for the Bank.
Slide 43: Digital Frontrunners – Go Mobile+ and Internet Banking Application
Digital Frontrunners – Go Mobile+ and Internet Banking Application Services under Internet Banking Personalized Dashboard with widgets. Get all the account details linked to the user at one place. Instant Payment & schedule recurring payments. Bill Payments & Presentment with auto debit faci
Slide 44: Financial Inclusion
Financial Inclusion PMJDY Accounts Aadhar Seeding under PMJDY 6.50 (Lakhs) Total PMJDY A/c (lakh) RuPaycards issued (Lakhs) 7.07 8.44 Sub Service Areas (Number 490 8.43 8.43 8.43 Villages Covered (Number) 501 8.42 Transactions through Individual Business Correspondent (BCs) Jun, 2019 Sep, 2019 Dec,
Slide 45: Financial Inclusion
Financial Inclusion Sanction Outstanding 2108 1762 1568 1027 295 153 Shishu (No. of A/c - 97887) Kishor (No. of A/c - 79111) Tarun (No. of A/c - 29639) Enrolment under Social security Scheme as on 30th June 2020 APY Subscription (in lakh) PMSBY Enrolments (in lakh) PMJJBY Enrolments (in lakh) 2.33 2
Slide 46: Subsidiaries
Subsidiaries Page 45
Slide 47: Subsidiaries
Subsidiaries (Rs.Crore) Income PAT RoA Net Worth Name of Company % Holding Line of Activity Q1 FY 2021 Q1 FY 2021 Q1 FY 2021 Q1 FY 2021 16.19 -0.42 -0.13% 298.73 IDBI Capital Market & Securities Ltd 100 Merchant Banking & Retail Broking (16.67) (0.30) (0.09%) (311.00) 27.68 3.79 5% 66.25 IDBI Intech
Slide 48: Way Forward
Way Forward [@)IDBI BANK) Pave 47
Slide 49: Looking Ahead : Focus Area
Looking Ahead : Focus Area Exiting PCA – Capital Embarking on ensuring allocation & Transformation compliance of Recovery from RAROC for all Journey to re-orient PCA parameters TWO/ fully products Business analyst its operating model – on an ongoing. implementing written off to drive business Mckins
Slide 50: Looking Ahead
Looking Ahead Maintaining/ Strong liquidity growing position – Strengthening operating Adequately maintaining Digital momentum Capitalized Bank adequate framework, – regulatory plus liquidity with from Board to sufficient buffer proper mix floor level Page 49
Slide 51: Thank You
THANK YOU hi aa Pat idbi i Toll Free Nos.: 1800-209-4324 / 1800-22-1070. Finpeipank = =Weiddi_bank [EV jdbibank EB Voiluberidbibank wwwidbibankin Nom-Toll Free No. 022-67719100. ! @) IDBI BaNk |