City Union Bank Limited · NSE:CUB
City Union Bank — Investor Presentation (March 2014)
40 slides from City Union Bank's investor presentation, March 2014
Slide 1: Investor Presentation – March 2014
INVESTOR PRESENTATION – MARCH 2014 1
Slide 2: Disclaimer
Disclaimer No representation or warranty, express or implied is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of such information or opinions contained herein. The information contained in this presentation is only current as of its date. Certain
Slide 3: Table of contents
Table of contents 1. Overview … 04 – 07 2. Performance Highlights – March 2014 … 08 - 09 3. Branch Network … 10 - 11 4. Ownership Pattern … 12 - 14 5. Management … 15 – 18 6. Financial Performance & Business Profile … 19 - 39 3
Slide 4: 1. Overview
1. Overview 4
Slide 5: Showcasing steady performance on an ongoing basis
Showcasing steady performance on an ongoing basis … The oldest Private Sector Bank in the Country having 100+ years of operations – Continuous Track Record Profitability – Dividend pay out in all 100 + years of existence Growth Business growing at CAGR 22% - Net Profit CAGR at 22% in the last 5 Year
Slide 6: A specialized banking model aligned to Target Segment – SME / MSME
City Union Bank – A specilized banking model aligned to Target Segment – SME / MSME SME/MSME specialized business model focusing on large untapped SME/ MSME Segment consistently delivering higher yields focus Superior client servicing leading to client retention and low business acquisition co
Slide 7: Key milestones
Key milestones 2009 2003 Rights issue @ 1 : 4 – to reward Obtained licenses to act as a the existing shareholders agent for procuring life insurance & general insurance business 1998 Initial Public Offering (IPO); Listing Bank’s shares on the 2012 BSE, NSE & MSE Rights Issue @ 1 : 4 – to reward the
Slide 8: 2. Performance Highlights – Financial Year 2013-14
2. Performance Highlights – Financial Year 2013-14 8
Slide 9: FY 2013-14 Performance – A snapshot
FY 2013-14 Performance – A snapshot Deposits increased by 8% from Rs.203 Bn to Rs.220 Bn Y-o-Y Advances registered a growth of 6% from Rs.153 Bn to Rs.162 Bn Y-o-Y Gross Profit registered a growth of 11% from Rs.5.2 Bn to Rs.5.8 Bn Y-o-Y Net Profit increased by 8% from Rs.3.2 Bn to Rs.3.5 Bn
Slide 10: 3. Branch Network
CUB 3. Branch Network
Slide 11: Strong presence in the South
Strong presence in the South A network of 425 branches of which 376 branches are located in South India and 291 in Tamil Nadu alone State No. of % of Branches Business Tamilnadu 291 72 Andhra Pradesh 51 9 3 1 Karnataka 24 6 1 Maharashtra 17 5 6 Kerala 12 2 3 4 Gujarat 6 2 Others 24 4 2 Total 425 6
Slide 12: 4. Ownership Pattern
CUB 4. Ownership Pattern
Slide 13: A well diversified investor base
A well diversified investor base Ownership profile Domestic Corp. Bodies, Institutions, 12.66% FII's, 28.94% 8.58% Others, 0.22% Public, 49.60% Well diversified ownership exceeding 90000 Long term investors ensuring stability and support to management Higher Participation from FII’s Limit on FII own
Slide 14: A well diversified investor base
A well diversified investor base Major Institutional Shareholders as on 31 March 2014 Shareholders % of holding L & T Unnati Finance Ltd. 4.55 GKFF Ventures 4.32 FMO, Nederlandse 4.32 LIC of India 3.99 Regal Investment and Trading Co. Pvt Ltd 2.02 Wasatch Core Growth Fund 2.01 Acacia Partners 1.99 E
Slide 15: 5. Management
CUB 5. Management
Slide 16: Transparent 'Corporate Governance' practices
Transparent ‘Corporate Governance’ practices Board consists of 8 Independent Directors and 2 Non-Independent Directors Various sub-committees of Board functions to oversee the operations of the Bank Code of conduct for directors and senior management put in place Disclosure norms strictly adhered to
Slide 17: A well experienced and strong Board (1/2)
A well experienced and strong Board (1/2) Name Profile He holds a Master degree in Mathematics, CAIIB and PGDFM and has 40 years of experience in Mr. S. Balasubramanian, the banking industry. He joined City Union Bank in 1971 as a probationary officer and was Chairman associated with the Bank in var
Slide 18: A well experienced and strong Board (2/2)
A well experienced and strong Board (2/2) Name Profile Mr. T.K. Ramkumar, He is a graduate in Commerce and Law specialized in Banking law, Company law and Director Intellectual Property Rights. He is one of the leading Lawyers in Chennai. Justice (Retd.) He is a former Judge of High Court of Madras
Slide 19: 6. Financial Performance and Business Profile
6. Financial Performance and Business Profile 19
Slide 20: FY 2013-14 Performance – A snapshot
FY 2013-14 Performance – A snapshot Deposits Advances HIGHLIGHTS FOR THE YEAR ENDED 31st MARCH 2014 Deposits increased by 8% to Rs.220 Bn Mn from Rs.203 Bn 8% 6% Advances increased by 6% from Rs.153 Bn to Rs.162 Bn Total Business grew by 7% from Rs.356 Bn to Rs.382 Bn CASA CASA improved by 1
Slide 21: FY 13-14 Vs FY 12-13 – Performance – A snapshot
FY 13-14 Vs FY 12-13 – Performance – A snapshot Financial Performance (in INR Mn) Particulars FY FY Inc / % Growth 2013-14 2012-13 (Dec) Growth Deposits 220169 203048 17121 8% Advances 162236 153429 8807 6% Total Business 382405 356477 25928 7% Demand Deposits 14420 13353 1067 8% Savings Deposits 24
Slide 22: FY 13-14 Vs FY 12-13 – Performance – A snapshot
FY 13-14 Vs FY 12-13 – Performance – A snapshot Financial Performance (in INR Mn) FY FY Particulars Growth % Growth 2013-14 2012-13 Net Interest Income 7594 6240 1354 22% Other Income 3012 2736 276 10% Operating Expenses 4796 3742 1054 28% Gross Profit 5810 5235 575 11% Provisions & Contingencies 23
Slide 23: Q4 FY 13-14 Vs Q4 FY 12-13 – Performance – A snapshot
Q4 FY 13-14 Vs Q4 FY 12-13 – Performance – A snapshot Financial Performance (in INR Mn) Q4 Q4 Particulars Growth % Growth FY 2013-14 FY 2012-13 Net Interest Income 1847 1733 114 7% Other Income 908 806 102 13% Operating Expenses 1315 1042 273 26% Gross Profit 1440 1497 -57 -ve Provisions & Contingen
Slide 24: FY 13-14 Vs FY 12-13 – Income and Expenses – Breakup
FY 13-14 Vs FY 12-13 – Income and Expenses – Breakup (in INR Mn) Interest Income Breakup Interest Expenses Breakup FY FY FY FY Particulars Growth Particulars Growth 13-14 12-13 13-14 12-13 Interest on Loans 20921 18122 15% Int Exp on Deposits 17340 15045 15% Interest on Investments 4380 3723 18% Oth
Slide 25: Q4 FY 13-14 Vs Q4 FY 12-13 – Income and Expenses – Breakup
Q4 FY 13-14 Vs Q4 FY 12-13 – Income and Expenses – Breakup (in INR Mn) Interest Income Breakup Interest Expenses Breakup Q4 FY Q4 FY Q4 FY Q4 FY Particulars Growth Particulars Growth 13-14 12-13 13-14 12-13 Interest on Loans 5196 4969 5% Int Exp on Deposits 4385 4113 7% Interest on Investments 1132
Slide 26: Key Business Indicators
Key Business Indicators Key indicators Particulars FY FY Q4 Q4 2013-14 2012-13 FY 13-14 FY 12-13 Cost of Deposits 8.37% 8.44% 8.25% 8.39% Yield on Advances 13.43% 13.49% 13.09% 13.38% Yield on Investments 7.33% 7.19% 7.31% 7.32% Net Interest Margin 3.50% 3.35% 3.34% 3.41% Cost to Income 45.22% 41.69
Slide 27: Strong Deposits and Advances growth
Strong Deposits and Advances growth Deposits Advances Business CASA 27
Slide 28: Income Growth over the years
Income Growth over the years … Net Interest Income Growth Other Income Growth CEB Growth Net Profit Growth 28
Slide 29: Cost of deposits & Yield on advances
Cost of deposits & Yield on advances Cost of Deposits and Yield on Advances Spread between cost of deposits and yield on advances of our bank maintained in the last 10 years 29
Slide 30: Key Business Ratios - Yearwise
Key Business Ratios - Yearwise Net Interest Margin Return on Assets Cost of Funds Yield on Funds 30
Slide 31: Efficiency
Efficiency (Rs in Mn) Business per Employee Profit per Employee 31
Slide 32: Loan Book – Products Composition
Loan Book – Products Composition Amount % to Total Working capital loans yielding higher interest Loan Book Products Composition (INR Mn) Advances constitute 64% of advances Cash Credit & Demand Loans 104009 64% Re-pricing possible at short intervals thus Term Loans 54603 34% reducing interest r
Slide 33: Loan book – Composition
Loan book – Composition Sectoral Deployment as on 31st March 2014 Secured & Unsecured Advances Amount % to Total Amount % to Total Particulars Particulars (INR Mn) Advances (INR Mn) Advances Agriculture (includes AJL – 21485 Mn) 31025 19% Secured Loans 158880 98% MSME 48899 30% Unsecured Loans 3356
Slide 34: Loan Book – Sectoral Deployment
Loan Book – Sectoral Deployment Sectoral Deployment chart NBFC Others INFRA 1% 3% 1% LAD 3% Personal Loan 2% AGRI Housing 19% 5% JL Non Agri 5% CRE 5% Whlsale Trade 11% MSME Retail Trade 30% 7% Large Ind 8% 34
Slide 35: Loan Book – Advances to Major Industries
Loan Book – Advances to Major Industries Advances to Major Industries as on 31st March 2014 Amount % to Total Industry Name (in INR Mn) Advances Textiles a) Cotton 9820 6% b) Other Textiles 2885 2% Metals a) Iron & Steel 9185 6% b) Other Metals 2173 1% Paper & Paper Products 3901 2% Food Processing
Slide 36: Asset Quality
Asset Quality (Rs in Mn) Gross NPA Qtm & Gross NPA % Net NPA Qtm & Net NPA % 36
Slide 37: Asset Quality Position – Movement over the years
Asset Quality Position – Movement over the years FY FY FY Q4 FY FY (Rs in Mn) Mar-11 Mar-12 Mar-13 13-14 13-14 NPA Opening balance 882 1125 1235 2689 1731 Additions A 1207 1444 2234 1776 4562 Recovery made 376 649 486 887 1865 Upgradations 114 165 232 50 168 Net Addition B 717 630 1516 839 2529 Writ
Slide 38: Restructured Accounts
Restructured Accounts Balance outstanding as on 31.03.2014 in respect of Restructured Standard borrowers: Type Restructuring No. of Amount Borrowers (in INR Mn) Under CDR Mechanism 3 915 Under SME Debt Restructuring Mechanism 10 342 Under Other Debt Restructuring Mechanism 3 1496 Total 16 2753 The
Slide 39: Investments – At a Glance
Investments – At a Glance Investments Breakup and Categorywise (in INR Mn) Particulars MAR 2014 MAR 2013 Sovereign Bonds 53190 45645 Corporate Bonds, RIDF, etc. 6058 6631 Equity Shares & Equity oriented MFs 305 402 Total Investments 59553 52678 Yield on Investments 7.33% 7.19% Investments Breakup: -
Slide 40: Thank You
Thank You 40