Indian Overseas Bank · NSE:IOB

Indian Overseas Bank — Investor Presentation (March 2014)

54 slides from Indian Overseas Bank's investor presentation, March 2014

  1. Slide 1: Presentation to Analysts March 2014

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

  2. Slide 2: 75 Years of Quiet & Dignified Service to the Society

    75 Years 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 30-35 Share Holding Pattern 6 Profitability 36-39 Foreign Branches 7 Profitability - Details of Income 40-44 Joint Ventures 8 Net Profit 45 Ratios - Cost & Yield Ratios & Credit Rating 9 N

  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

    Investor Profile – Shareholding Pattern (%) as on 31.03.2014 Clearing Member 0.15% Total No. of Shares issued:1,23,53,48,315 Trusts 0.04% Promoter (GOI) NRI 73.80% 0.36% Promoter (GOI) FIIs 1.86% Residents Banks 0.06% FI Mutual Funds 0.02% Corporate Bodies Corporate Bodies 0.72% Mutual Funds Banks F

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

    Global Footprints – Foreign Branches of the Bank Branches Representative 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  Seoul  Bangk

  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 In

  9. Slide 9: Credit Rating – International & Domestic

    Credit Rating – International & Domestic Rating Agency Rating Standard and Poor BBB- / Negative / A-3 BBB- Adequate capacity to meet its financial commitments A-3 Adequate capacity to meet its financial obligations CRISIL AA / Stable for Lower Tier II Bonds. High Safety AA / Negative/Stable for Tier

  10. Slide 10: Highlights-31.03.2014

    Highlights-31.03.2014 Business touched INR 4,09,057Crores ( YoY Growth 11.61%) Deposits stood at 2,27,976 INR Crores (YoY Growth 12.78%) CASA stood at 25.34% Advances is INR 1,81,081Crores (YoY Growth 10.17%) Operating Profit for FY 13-14 is INR 3,997Crores (YOY Growth 4.72%) Net Profit for FY 13-14

  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).  As per recent advise of Ministry, we have planned to move to the COTS CBS model which is widely used by all other PSB b

  12. Slide 12: IT Initiatives

    IT Initiatives  Our Bank also successfully launched Domestic RuPay cards of NPCI which can be used for domestic transactions only. We have plans to issue these cards in Semi Urban and Rural areas where the usage will not be for international transactions.  Launched Gift Cards to be issued to custo

  13. Slide 13: IT Initiatives (contd…)

    IT Initiatives (contd…)  E-Payment of fees has been introduced to Ujjain Engineering College  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. Loyo

  14. Slide 14: IT Initiatives (contd…)

    IT Initiatives (contd ….)  . Financial Inclusion Project : Our Financial inclusion application enables funds transfer, deposits and remittances towards advances in real time and it is also BC-interoperable enabling any customer to transact through any Business Correspondent.  Central Plan Schemes

  15. Slide 15: IT Initiatives (contd…)

    IT Initiatives (contd ….)  The Data Centers are connected to the network nodes situated mostly at our Regional Offices by means of MPLS clouds from BSNL (Primary link- except Mumbai & Delhi where MTNL is the Primary link) and Bharati Airtel and to branches directly through the BSNL (Primary) cloud

  16. Slide 16: Major Business Parameters

    Major Business Parameters Quarter ending INR Crs Key performance indicators Mar 2013 Jun 2013 Sep 2013 Dec 2013 Mar 2014 Business Mix 3,66,501 3,63,087 3,89,005 3,87,406 4,09,057 Deposits 2,02,135 1,96,213 2,12,705 2,13,319 2,27,976 Advances (Gross) 1,64,366 1,66,874 1,76,300 1,74,087 1,81,081 Opera

  17. Slide 17: Deposits

    Deposits INR Crs 219731 240000 227976 220000 195457 202135 200000 180000 160000 140000 120000 100000 Domestic 80000 60000 Global 40000 20000 0 31.03.2013 31.03.2014 Domestic 195457 219731 Global 202135 227976 Domestic Deposits Global Deposits  Y-o-Y Growth: 12.42%  Y-o-Y Growth: 12.78% 17

  18. Slide 18: Deposits - CASA

    Deposits - CASA INR Crs 57,767 53,586 53,968 CASA 52,800 50,252 43,744 40,379 41,088 40,699 38,874 SAVINGS 13,207 12,880 14,023 11,378 12,101 CURRENT Mar'13 Jun'13 Sep'13 Dec'13 Mar'14 Current Deposits Savings Bank CASA Share of CASA Y-o-Y Growth:6.18% Y-o-Y Growth:8.33%  Y-o-Y Growth:7.80% to Ag

  19. Slide 19: Domestic Deposit-Category Wise

    Domestic Deposit-Category Wise March 2014 INR Crs Rural, 14,548 Semi urban, (7%) 23,970 (11%) Urban, 48,756 (22%) Metro, 1,32,457 (60%) 19

  20. Slide 20: Gross Advances

    Gross Advances INR Crs 200,000 181,081 180,000 164,366 161,998 160,000 144,894 140,000 120,000 100,000 80,000 60,000 40,000 31.03.2013 31.03.2014 Domestic 144,894 161,998 Global 164,366 181,081 Domestic Advances Global Advances  Y-o-Y Growth:11.80%  Y-o-Y Growth:10.17% 2020

  21. Slide 21: Domestic Advances-Category Wise

    Domestic Advances-Category Wise March 2014 INR Crs Rural, Metro, 17,022 Semi Urban, 93,239 (11%) 19,066 (57%) (12%) Urban, 32,671 ( 20%) 21

  22. Slide 22: Key Sectors (Domestic Credits)

    Key Sectors (Domestic Credits) INR Crs Sector Mar 2013 Mar 2014 1.Agriculture 23,393 26,254 2.SME 19,976 24,575 of which Micro 8,342 10,608 3.Retail Credit 15,060 17,040 2222

  23. Slide 23: Retail Credit (Breakup)

    Retail Credit (Breakup) INR Crs Sector Mar 2013 Mar 2014 Retail Credit 15,060 17,040 Of which - Housing Loans 5,041 6,078 - Misc.CC 1,320 1,356 - Pushpaka 782 1,074 - Educational Loan 2,978 3,597 - Others 1,008 1,180 Jewl Loan to Others 3,931 3,755 Jewel Loan to Others portfolio included in Retail C

  24. Slide 24: Advances to Sensitive Sectors - Domestic

    Advances to Sensitive Sectors - Domestic (FUND + NON FUND) INR Crs Sector Mar 2013 Mar 2014 CAPITAL MARKET 1,034 713 REAL ESTATE 17,599 22,153 of which HOUSING LOAN * 5,658 8,246 COMMERCIAL REAL ESTATE 7,548 8,630 OTHERS (DIRECT & INDIRECT) 4,393 5,277 * Includes Non-Priority Housing Loans 2424

  25. Slide 25: Overseas Advances - Breakup

    Overseas Advances - Breakup INR Crs Mar 2013 Mar 2014 Trade 6,237 7,538 Manufacturing 6,269 6,761 Real Estate 288 381 Buyers Credit 4,895 1,752 Others 1,783 2,651 Total 19,472 19,083 25

  26. Slide 26: Restructured Accounts Outstanding Position As On 31.03.2014

    Restructured Accounts Outstanding Position As On 31.03.2014 INR Crs Sector 31.03.2014 31.03.2014 31.03.2014 Accounts Amount % Chemical & Pharma 5 122.74 0.87 Sugar 3 62.53 0.44 Textile 11 436.42 3.08 Iron & Steel 28 1725.28 12.19 Auto & Ancillary 3 375.88 2.66 Paper 3 230.57 1.63 Food Processing 2 3

  27. Slide 27: Restructured Accounts Outstanding Position (contd)

    INR Crs Restructured Accounts Outstanding Position As On 31.03.2014 .. contd Sector 31.03.2014 31.03.2014 31.03.2014 Accounts Amount % Sub Total 108 10788.89 SME 240 590.90 4.17 Micro Finance 8 117.91 0.83 Infrastructure 17 1491.72 10.54 Comm. Real Estate(CRE) 6 120.01 0.86 Trade 27 210.98 1.49 Agri

  28. Slide 28: Asset Classification wise details 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 (31.03.2013) (31.03.2013) Total (31.03.2014) (31.03.2014) Total Standard Assets 1038 14678 96.00 823 12314 87.00 Sub-Standard 314 26

  29. Slide 29: Restructured Standard Accounts

    RESTRUCTURED STANDARD ACCOUNTS INR Cr (INCLUDES ALL F.B. FACILITIES OF THE BORROWER) Domestic Foreign Global > 1 crore < 1 crore Total As on 31.12.2013 O/S 12210.19 58.17 12,268.36 72.35 12340.71 Fresh Restructuring 1237.75 2.76 1240.51 0.00 1240.51 during Q4 of 2013-14 Additions during Q4 of 408.80

  30. Slide 30: NPA Ratio

    NPA Ratio 6 % 5.27 5 4.65 4.98 4.45 Gross 4.02 Net 4 3.24 3.2 2.81 2.83 3 2.5 2 1 0 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 3030

  31. Slide 31: NPA Sequential Movement

    NPA SEQUENTIAL MOVEMENT INR Crs Mar 2013 Jun 2013 Sep 2013 Dec 2013 Mar 2014 OPENING GROSS NPA 6516 6608 7432 8202 9168 ADD Slippages 1788 1668 1309 1650 2275 LESS Cash Recovery 221 198 222 207 411 Upgradation 324 92 302 135 465 Write Off 1151 554 15 342 564 Sale to ARC 983 Total Reduction in NPA 16

  32. Slide 32: Sector Wise Break Up of NPAs (Domestic)

    Sector Wise Break Up of NPAs as of 31.03.2014 (Domestic) INR Cr NPA as of % to total Category 31.03.2014 Domestic NPA Agriculture 1092.01 13.93 Industry 4877.24 62.22 Services 1460.15 18.63 Personal 408.97 5.22 Total 7838.37 100.00 of Which Commercial Real Estate 67.01 0.85 32

  33. Slide 33: NPAs – Industry Wise - Domestic

    NPAs – Industry Wise - Domestic INR Cr. % of NPA to % to the NPA as of Outstanding as the total Industry 31.03.2014 of 31.03.2014 respective Domestic outstanding NPA Iron and Steel 1026.38 10799.19 9.50 13.09 Cotton Textiles/Other Textiles 586.80 7219.28 8.13 7.49 Other Metal & Metal Products 122.42

  34. Slide 34: Sectoral Slippages during the quarter ended 31.03.2014

    Sectoral Slippages during the quarter ended 31.03.2014 INR Cr. Category Amount Services( Other than Commercial Real Estate) 208 Agriculture 214 Personal 198 Commercial Real Estate 14 Sub Total 634 Industry Breakup Mining All Engineering/All other Industries 490 Paper 83 Other Metals 85 Food Processi

  35. Slide 35: Overseas NPAs

    Overseas NPAs INR Crs Mar 2013 Mar 2014 Trade 469.78 786.70 Manufacturing 248.01 118.45 Real Estate 58.91 64.08 Others 210.55 212.88 TOTAL 987.25 1182.11 35

  36. Slide 36: Profitability (Quarter Sequential)

    Profitability (Quarter Sequential) INR Crs 1600 1452 Net Interest 1316 1398 1411 Income 1400 1296 Operating Profit 1200 1000 1146 1191 Net Profit 1054 800 961 791 600 400 268 126 133 75 200 59 0 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 3636

  37. Slide 37: Profit - Summary

    PROFIT - SUMMARY INR Crs Quarter Ending Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Interest Earned 5,227 5,403 5,669 5,737 5,875 Interest Expended 3,931 4,087 4,217 4,339 4,464 Net Interest Income 1,296 1,316 1,452 1,398 1,411 Non Interest Income 671 785 331 453 601 Total Operating Income 1,967 2,101 1,783

  38. Slide 38: Profitability - Q4

    PROFITABILITY - Q4 INR Crs Particulars Q4 12-13 Q4 13-14 Variance % TOTAL INCOME 5897.89 6475.93 9.80 Interest Earned 5226.80 5874.75 12.40 Other Income 671.09 601.18 -ve TOTAL EXPENDITURE 4752.01 5284.84 11.21 (excl. provisions and contingencies) Interest Expended 3930.87 4464.09 13.56 Operating Ex

  39. Slide 39: Profit – Geographical Distribution – Q4

    PROFIT – Geographical Distribution – Q4 INR Crs Particulars Q4 12-13 Q4 13-14 Variance % OPERATING PROFIT Global 1145.88 1191.09 3.95 Domestic 1041.91 1067.15 2.42 Overseas 103.97 123.94 19.21 PROVISIONS Global 1087.28 922.76 -ve Domestic 943.79 856.09 -ve Overseas 143.49 66.67 -ve NET PROFIT Global

  40. Slide 40: Profit - Net Interest Income

    PROFIT - NET INTEREST INCOME Quarter Ending INR Crs Particulars Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Total Interest Income 5,227 5,403 5,669 5,737 5,875 Of which Int Income from Advances 4,000 4,155 4,370 4,339 4,424 Int. Income from Investments 1,122 1,173 1,247 1,285 1,297 Other Interest Income 105

  41. Slide 41: Profit - Net Interest Income

    PROFIT - NET INTEREST INCOME INR Crs Variance % Particulars Q4 12-13 Q4 13-14 Total Interest Income 5226.80 5874.75 12.40 Of which Int Income from Advances 3999.84 4424.20 10.61 Int. Income from Investments 1122.05 1297.25 15.61 Other Interest Income 104.91 153.30 46.13 Total Interest Expended 3930.

  42. Slide 42: Profit - Net Interest Income

    PROFIT - NET INTEREST INCOME INR Crs Particulars FY 12-13 FY 13-14 Variance% Total Interest Income 20676.73 22683.73 9.71 Of which Int Income from Advances 15909.44 17288.80 8.67 Int. Income from Investments 4372.29 5007.75 14.53 Other Interest Income 395.00 387.18 -ve Total Interest Expended 15424.

  43. Slide 43: Non Interest Income (Quarterly Comparison)

    Non Interest Income (Quarterly Comparison) INR Crs Quarter Ending Particulars Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Total Non Interest Income 671 785 331 453 601 Of which Exchange / Commission 248 199 224 215 292 Profit on Sale of Investments 173 398 12 32 46 Profit on Revaln. Of Investments 0 -10 -94

  44. Slide 44: Non Interest Income - FY 2013-14

    Non Interest Income -FY-2013-14 INR Crs Variance Particulars FY 12-13 FY 13-14 % Total Non Interest Income 1972.90 2169.34 9.96 Of which Exchange / Commission 895.33 929.07 3.77 Profit on Sale of Investments 311.42 488.80 56.96 Profit on Revaln. Of Investments -68.34 -104.51 -ve Recovery in written

  45. Slide 45: Net Profit (Quarterly Comparison)

    NET PROFIT (Quarterly Comparison) INR Crs Quarter Ending Particulars Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 OPERATING PROFIT 1145.88 1054.42 791.00 960.73 1191.09 Total Provision 1087.28 928.62 658.45 885.66 922.76 Of which NPA 779.57 723.21 485.87 688.29 313.43 Counter cyclical Provisioning Buffer 47.0

  46. Slide 46: Cost & Yield Ratios (Quarterly Comparison)

    Cost & Yield Ratios (Quarterly Comparison) Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Avg. Cost of Deposits (%) 7.55 7.52 7.58 7.57 7.61 Avg. Yield on Advances(%) 9.90 9.89 10.08 9.99 10.07 Avg. Yield on Investments(%) 7.28 7.28 7.31 7.21 7.18 Avg. Cost of Funds(%) 7.18 7.14 7.15 7.40 7.51 Avg. Yield on Fun

  47. Slide 47: Investments - Domestic

    INVESTMENTS - Domestic INR Crs 31.03.2013 31.03.2014 AFS HTM HFT TOTAL AFS HTM HFT TOTAL SLR Investments 9659.71 44370.18 293.94 54323.83 10175.35 49086.84 72.92 59335.11 Of which Government. Securities 9599.31 44368.14 293.94 54261.39 10123.52 49083.73 72.92 59280.17 Other Approved 60.40 2.04 0.00

  48. Slide 48: Investments – Foreign

    INVESTMENTS – Foreign -31.03.2014 INR Crs Book Value Total Type of Investment (Gross) Provision G - Sec 2,328.08 1.56 Bonds - Others 9.17 - MTN,FCCB 695.90 62.56 Shares 0.09 - Joint Venture - Malaysia 193.20 - Total 3,226.44 64.12 4848

  49. Slide 49: Capital Adequacy

    CAPITAL ADEQUACY INR Crs Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Tier I Capital BASEL II 12,088.45 12,043.10 12,043.15 14068.15 BASEL III 11,694.08 11,689.10 12,891.74 13853.25 Tier II Capital BASEL II 6,277.58 6,305.20 6,145.37 6484.32 BASEL III 6,208.58 6,056.31 6,052.06 6135.49 Total Capital BASEL II

  50. Slide 50: Productivity

    PRODUCTIVITY 128.26 130 126.03 125.62 INR Crs 122.96 125.02 120 Business per Branch 110 100 90 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 14 13.67 12.88 13 12.69 12.65 12.33 Business per 12 Employee 11 10 9 8 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 50

  51. Slide 51: 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

  52. Slide 52: Corporate Social Responsibility

    Corporate Social Responsibility  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 Inclusion” was released that contains comprehensi

  53. Slide 53: Corporate Social Responsibility

    Corporate Social Responsibility  This Total Village development Project is currently implemented in 100 villages all over India.  Education scholarship is being extended to meritorious BPL girl students hailing from Sampoorna villages.  Bank provides Rs.25000/- for setting up rural library in eac

  54. Slide 54: Thank You

    ert sada sa Indian Overseas Bank QO» «<‘”

Indian Overseas Bank — Investor Presentation (March 2014) on 6ix