Indian Overseas Bank · NSE:IOB
Indian Overseas Bank — FY2020-21 Earnings Presentation
42 slides from Indian Overseas Bank's earnings presentation, Jun 14, 2021
Slide 1: Performance Analysis Q4/FY 2020-21
इण्डियन ओवरसीज़ बैंक Indian Overseas Bank PERFORMANCE ANALYSIS Q4/FY 2020-21 14.06.2021
Slide 2: Index
INDEX CORE STRENGTHS OF THE BANK PERFORMANCE HIGHLIGHTS FINANCIAL PERFORMANCE BUSINESS PERFORMANCE & INITIATIVES NPA MANAGEMENT CAPITAL ADEQUACY FINANCIAL INCLUSION & CUSTOMER SERVICE DIGITAL INITIATIVES Performance Analysis Q4/FY 2020-21
Slide 3: Core Strengths of the Bank
CORE STRENGTHS OF THE BANK 84 Years of Banking Excellence Strong Presence: 3217 Branches, 3145-ATMs, 2739-BCs, 4 overseas Branches Robust Rural & Semi-Urban Branch Network Trust of 39 Million Active Customers Strong Digital Capabilities Dedicated & Skilled Workforce of 23579 numbers Performance Anal
Slide 4: Performance Highlights
PERFORMANCE HIGHLIGHTS Performance Analysis Q4/FY 2020-21
Slide 5: Performance Highlights Q4 2020-21: Business
PERFORMANCE HIGHLIGHTS Q4 2020-21 Rs in Crore GNPA NNPA FY 19-20 FY 20-21 Y-o-Y(%) Gross NPA 19913 16323 -18.03 Quality FY19-20 FY 20-21 Net NPA 6603 4578 -30.67 FY19-20 FY 20-21 Asset GNPA% 14.78 11.69 (309 bps) NNPA% 5.44 3.58 (186 bps) CASA CASA% FY 19-20 FY 20-21 Y-o-Y(%) CASA 89751 102165 13.83
Slide 6: Performance Highlights Q4 2020-21: Profitability
PERFORMANCE HIGHLIGHTS Q4 2020-21 Rs in Crore Cost to Income FY 19-20 FY 20-21 Y-o-Y(%) PCR 86.94 90.34 340 bps Ratios Capital Adequacy 10.72 15.32 460 bps Key Cost to Income Ratio 59.21 48.54 (1067 bps) ROA -2.95 0.31 - FY 19-20 FY 20-21 FY 19-20 FY 20-21 Y-o-Y(%) NII 5303 5899 11.23 Operating Prof
Slide 7: Financial Performance
FINANCIAL PERFORMANCE Performance Analysis Q4/FY 2020-21
Slide 8: Financials - At a Glance
FINANCIALS- AT A GLANCE Rs. in Crore Quarter Year Growth % Particulars Q4 20-21 Q4 20-21 FY 20-21 Q4 19-20 Q3 20-21 Q4 20-21 FY 19-20 FY 20-21 Over Over Over Q3 20-21 Q4 19-20 FY 19-20 Interest Income 4442 4244 4057 17406 16966 -4.40 -8.66 -2.53 Interest Expenses 2910 2722 2654 12103 11067 -2.49 -8.
Slide 9: Total Income
TOTAL INCOME Rs. in Crore Quarter Year Growth % Q4 20-21 Q4 20-21 FY 20-21 Particulars Q4 19-20 Q3 20-21 Q4 20-21 FY 19-20 FY 20-21 Over Over Over Q3 20-21 Q4 19-20 FY 19-20 Interest on Loans 2848 2762 2446 11513 10834 -11.44 -14.11 -5.89 Interest on Investment 1398 1413 1439 5208 5712 1.84 2.93 9.6
Slide 10: Total Expenses
TOTAL EXPENSES Rs. in Crore Quarter Year Growth % Q4 20-21 Q4 20-21 FY 20-21 Particulars Q4 19-20 Q3 20-21 Q4 20-21 FY 19-20 FY 20-21 Over Over Over Q3 20-21 Q4 19-20 FY 19-20 Interest on Deposits 2795 2627 2604 11571 10701 -0.87 -6.83 -7.51 Interest on Borrowings 116 95 51 533 366 -46.31 -56.03 -31
Slide 11: Provisions & Profit
PROVISIONS & PROFIT Rs. in Crore Quarter Year Growth % Q4 20-21 Q4 20-21 FY 20-21 Particulars Q4 19-20 Q3 20-21 Q4 20-21 FY 19-20 FY 20-21 Over Over Over Q3 20-21 Q4 19-20 FY 19-20 Operating Profit 1144 1731 1724 3480 5896 -0.40 50.70 69.42 Provisions 1000 1518 1374 12008 5065 -9.49 37.40 -57.82 of
Slide 12: Performance Ratios - Quarterly
PERFORMANCE RATIOS- QUARTERLY Cost of Deposits Yield on Advances 8.51 8.65 8.39 5.17 8.10 4.99 4.80 7.04 4.59 4.45 Mar-20 June 20 Sep-20 Dec-20 Mar-21 Mar-20 June 20 Sep-20 Dec-20 Mar-21 Cost to Income Net Interest Margin 54.43 53.32 2.60 2.57 49.58 2.45 48.80 2.36 2.22 43.50 Mar-20 June 20 Sep-20 D
Slide 13: Business Performance & Initiatives
BUSINESS PERFORMANCE & INITIATIVES Performance Analysis Q4/FY 2020-21
Slide 14: Business Performance - Global
BUSINESS PERFORMANCE- GLOBAL Rs. in Crore Particulars Mar-20 Dec-20 Mar-21 Y-o-Y(%) Q-oQ(%) CASA 89751 95830 102165 13.83 6.61 a)Retail Term Deposits 112265 124862 126901 13.04 1.63 b)Bulk Deposits 17092 10096 8055 -52.87 -20.21 c)Overseas Term Deposits 3844 3328 3167 -17.62 -4.84 Term Deposits (a+b
Slide 15: Deposits Composition
DEPOSITS COMPOSITION Rs. in Crore Y-o-Y variation Q-o-Q variation Parameters Mar-20 Dec-20 Mar-21 Amount % Amount % Domestic-Deposits Savings Bank 75374 80024 85661 10287 13.65 5638 7.05 Current Account 13297 14808 14927 1630 12.26 119 0.80 CASA 88671 94832 100588 11917 13.44 5757 6.07 Term Deposits
Slide 16: Risk Spread - Assets
RISK SPREAD- ASSETS Rs. in Crore Domestic Share of Advances MAR-20 MAR-21 Corporate MSME, MSME, 20.61% Corporat /others, 20.17% e/others, 33.41% 26.19% Agri, Agri, 26.95% 22.53% Retail , Retail , 23.89% 26.25% Y-o-Y Growth Q-o-Q Growth Parameters Mar-20 Dec-20 Mar-21 Amount % Amount % Retail 30423 3
Slide 17: Retail Performance
RETAIL PERFORMANCE Rs. in Crore % Share to Domestic Retail Period Domestic Others , Advances Advances 22.49% Advances Clean, 2.72% Home, Mar-19 146001 28867 19.77% Auto, 9.75% 51.67% Mar-20 127336 30423 23.89% Mar-21 130267 34196 26.25% Education , 13.38% Retail loan Sanctions (in Rs Crore) 2000 RET
Slide 18: Priority Sector Advances - Overview
PRIORITY SECTOR ADVANCES - OVERVIEW Rs. in Crore 51.33% Priority sector % of 47.47% 48.19% 46.78% Financial Year Achievement achievement 2017-18 70040 47.47% (Avg of 4 Qtrs) 70040 75390 74579 2018-19 74147 75390 51.33% (Avg of 4 Qtrs) 2019-20 74147 48.19% (Avg of 4 Qtrs) 2017-18 2018-19 2019-20 2020
Slide 19: Agriculture Advance Performance
AGRICULTURE ADVANCE PERFORMANCE Rs. in Crore Share of Agriculture on Domestic Advances 40000 26.95% 30.00% 22.53% 25.00% 30000 19.17% 20.00% 20000 15.00% 10.00% 10000 5.00% 27988 28694 35106 0 0.00% Mar-19 Mar-20 Mar-21 AGRI Advance % Share to Domestic Advance % Share to Agri Advance Domestic AGRI P
Slide 20: Agri Advances - Priority Sector
AGRI ADVANCES – PRIORITY SECTOR Rs. in Crore 40000 21.14% 19.53% 20.28% 22% 20.23% 30000 20% 31045 20000 29851 30047 32334 18% 26561 26438 27698 28699 10000 16% 0 14% 2017-18 (Avg of 4 Qtrs) 2018-19 (Avg of 4 Qtrs) 2019-20 (Avg of 4 Qtrs) 2020-21 (Avg of 4 Qtrs) Target Achievement % Achieved Target
Slide 21: MSME
MSME Rs in Crore Share of MSME on Domestic % Share to Advances Domestic MSME Period Domestic Advance Advance 23.00% Advances 31000 20.49% 20.17% 20.61% 21.00% Mar-19 146001 29918 20.49% 26000 19.00% Mar-20 127336 25678 20.17% 17.00% Mar-21 130267 26849 20.61% 21000 15.00% 29918 25678 26849 16000 13.
Slide 22: Investments
INVESTMENTS Rs. in Crore Global Investments 150000 98412 100000 82029 86684 69209 50000 0 Mar-19 Mar-20 Dec-20 Mar-21 Parameters Mar-19 Mar-20 Dec-20 Mar-21 Domestic Investments 65380 78358 83001 94686 SLR 47858 51162 55562 63421 Non SLR 17522 27196 27439 31265 Held to Maturity 45975 59097 64408 721
Slide 23: Initiatives During the Year
INITIATIVES DURING THE YEAR Bank has partnered with M/s SBI General Insurance Co and has signed the Corporate Agency Agreement for General Insurance Business. The Bank has partnered with M/s Max Bupa Health Insurance and has signed the Corporate Agency Agreement for Health Insurance Business.
Slide 24: Initiatives During the Year
INITIATIVES DURING THE YEAR As a part of digital loan initiatives Gold Loans & Loan against Deposits have been digitized. The Bank has launched “Online Help Desk-ASK US” initiative for providing learning opportunities to its employees. A new initiative named “Learning Additional Regional Langu
Slide 25: NPA Management
NPA MANAGEMENT Performance Analysis Q4/FY 2020-21
Slide 26: NPA Management
NPA MANAGEMENT Rs. in Crore Details Q4 19-20 Q1 20-21 Q2 20-21 Q3 20-21 Q4 20-21 FY 19-20 FY 20-21 i) Opening Gross NPAs 23734 19913 18291 17660 16753 33398 19913 a. Cash Recoveries 756 150 325 248 490 2664 1213 b. Upgradation 227 45 87 157 166 1247 455 c. Write-Offs 3994 1784 58 252 2524 16407 4618
Slide 27: Segmental NPAs
SEGMENTAL NPAS Rs. in Crore Mar-20 Dec-20 Mar-21 Segmental NPAs NPA Ratio % NPA Ratio % NPA Ratio % Retail 793 2.61% 707 2.15 1310 3.83 Agri 2428 8.46% 2029 6.26 2608 7.43 MSME 3257 12.69% 3477 11.52 3272 12.19 Corporate 12206 28.69% 8907 26.69 7614 22.32 Overseas 1228 16.51% 1633 19.03 1519 16.28 T
Slide 28: Movement of NPA
MOVEMENT OF NPA GNPA NNPA 14.78 13.90 5.44 5.10 13.04 12.19 4.30 11.69 3.58 3.13 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 PCR 91.91 90.34 89.36 87.97 86.94 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Performance Analysis Q4/FY 2020-21 Page 28
Slide 29: Capital Adequacy
CAPITAL ADEQUACY Performance Analysis Q4/FY 2020-21
Slide 30: Capital Conservation
CAPITAL CONSERVATION Rs. in Crore Particulars Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Market Risk RWA 12316 14010 15467 12072 13884 Operational Risk RWA 16642 13217 13217 10477 10477 Credit Risk RWA 84680 84889 82831 83594 87644 Total RWA (A) 113638 112115 111515 106143 112005 CET 1 9329 9397 9325 9361 1
Slide 31: Movement of RWA & CRAR
MOVEMENT OF RWA & CRAR CRAR 15.32 10.72 10.93 10.90 11.49 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 CRAR Total RWA to Total Assets Ratio 85.22 84.32 82.32 80.23 77.21 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Performance Analysis Q4/FY 2020-21 Page 31
Slide 32: Financial Inclusion & Customer Service
FINANCIAL INCLUSION & CUSTOMER SERVICE Performance Analysis Q4/FY 2020-21
Slide 33: Financial Inclusion
FINANCIAL INCLUSION PMJDY Account (Number in Lakhs) PMJDY Account Balance Rs in Cr 52.77 1735 50.52 1226 1117 48.49 Mar-19 Mar-20 Mar-21 Mar-19 Mar-20 Mar-21 No in Lakhs PMJDY Zero balance Jan Suraksha Schemes (in Nos.) Accounts 3348835 10.14 9.86 2545145 2657039 1218712 947769 5.29 784218 622470 29
Slide 34: Customer Service
CUSTOMER SERVICE PSB alliance Door Step Banking: Door Step Banking enabled in select 100 centres. Non Financial Transactions started from 09.09.2020. Financial transactions i.e. Cash withdrawal started from 15.10.2020. Cash Deposit facility is under process. Submission of Digital Life certificate th
Slide 35: Digital Initiatives
DIGITAL INITIATIVES Performance Analysis Q4/FY 2020-21
Slide 36: Digital Initiatives Across the Segments
DIGITAL INITIATIVES ACROSS THE SEGMENTS Online System for HRMS & Treasury Processing MSME Developed end to Loans up to reduce end digital lending Solutions are fully in house developed. turnaround time. platform for Gold Loan Origination is loan and loan system integration of the enable fo
Slide 37: Internet Banking, BHIM Aadhaar Pay and IOB Pay
Internet Banking application with 10 regional languages BHIM Aadhaar Pay Both Onus and offus transactions are accepted. Mobile Banking with number of 36 lakh IOB PAY registrations with Targeted to enable 30,000 average Online Payments for daily transactions different type of merchants with or withou
Slide 38: Customer Touch Points
CUSTOMER TOUCH POINTS Domestic Presence Mar-19 Mar-20 Mar-21 Cost optimization Measures Branches 3280 3270 3217 During the year under review (FY 2020-21), the Bank has merged 53 Branches with ATM 3450 3032 3145 other existing branches and closed 7 Zonal Offices and 1 Satellite Office. BC 2705 2795 2
Slide 39: Global Footprints
GLOBAL FOOTPRINTS Overseas Singapore Hong Kong Colombo Bangkok Branches JV Malaysia Subsidiary Remittance Singapore- Serengoon Road Centre STRATEGIC INVESTMENTS–JOINT VENTURE Indian Overseas Bank (35%) has a Joint Venture Bank in Malaysia with Bank of Baroda(40%) and Union Bank of India (25%), nam
Slide 40: Strategic Investments - Joint Venture
STRATEGIC INVESTMENTS – 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 SHAREHOLDING % Shareholding Name of Entity Investment 12.81% % 18.06% 6.00% In
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”, “fut
Slide 42: Thank You
Thank You visit us @ https://www.iob.in Performance Analysis Q4/FY 2020-21
Indian Overseas Bank — FY2020-21 Earnings Presentation on 6ix