Indian Bank · NSE:INDIANB
Indian Bank — Q3 FY20 Earnings Presentation
43 slides from Indian Bank's earnings presentation, Jan 24, 2020
Slide 1: Exchange cover letter on press release and presentation
AL omit so Corporate Office IN Indian Bank Investor Services Cell FAX : 28134075 254-260, Avvai Shanmugam Salai PHONE : 28134076 Royapettah E-mail : investorsindianbank.co.in Chennai 600 014 Ref : ISC /520/ 2019-20 24.01.2020 The Vice President The Manager National Stock Exchange of India Limited BS
Slide 2: Press Release: Indian Bank announces results for Q3 FY20
A PRESS RELEASE Indian Bank announces results for Q3 FY20 Business crosses Rs.4.5 trillion and Balance sheet size crosses Rs.3 trillion Operating profit grew by 67% and Net profit increased by 62% Robust growth of 133% in Other income. The Board of Directors of the Bank approved the Balance Sheet an
Slide 3: Press Release: Operating expenses, margins and assets & liabilities
A Operating expenses for the quarter ended December 31, 2019 was Rs.1075 crore as against Rs. 1015 crore during the corresponding quarter of the previous year. Operating expenses for the nine months period ended December 31, 2019 was Rs.3280 crore compared to Rs.2933 crore in NME FY19. Net inter
Slide 4: Press Release: CASA deposits and advances growth
A Domestic CASA deposits recorded a Y-o-Y growth of 10% and share of CASA was 34.51% of total domestic deposits as on December 31, 2019 as against 35.73% as on December 31, 2018 which was mainly on account of Term deposits outgrowing CASA. Growth in CASA was primarily driven by a Y-o-Y growth of 1
Slide 5: Press Release: Bad debt recovery and recognitions
A Recovery from Bad debts improved by 13% for the nine months period ended December 31, 2019 over December 31, 2018. Recognitions: ‘Best Bank 2017-18’ under Nationalised Bank category - Financial Express Voted as a ‘Trusted Bank’ in the Nationalised Banks Category April 2019 - Readers Digest
Slide 6: MD & CEO's Quote
A MD & CEO’s Quote: Commenting on the results, Ms. Padmaja Chunduru MD & CEO, Indian Bank said, Bank has delivered yet another satisfying result with Business and Balance sheet crossing milestone figure of Rs.4.5 trillion and Rs.3 trillion respectively. Increase of 12% on YoY basis in Business was p
Slide 7: Performance Analysis Q3 & NME FY 20
Ind SME E-Vaahan IB Tradewell Performance Analysis Repo Rate linked HL IB My Own Shop Q3 & NME FY 20
Slide 8: Contents
Contents Key strengths/Performance Highlights Financials Business Snapshot Capital & Risk Management Asset Quality Digital Banking Financial Inclusion 2/37
Slide 9: Key Strengths
Key Strengths 113 Years of Listed in 2007 dedicated Banking Services Unbroken record of to the nation earning profit since 2002 Strong brand recognition – Pan India presence Customer base of 52 Millions with 9907 Touch Points Strong Capitalisation & Pioneer in SHG Linkage Healthy Financials Demonstr
Slide 10: Milestone Achievements
Milestone Achievements Business ` 4 .5 lakh Cr Business crosses ` 4 lakh Cr ` 4.5 trillion & ` 3 lakh Cr Balance sheet size crosses ` 2 lakh Cr ` 3 trillion ` 1 lakh Cr 4/37
Slide 11: Performance Highlights – Q3 FY 20 (YoY)
Performance Highlights – Q3 FY 20 (YoY) Total Business Deposits CASA 10% Core Term Advances `4.50 lakh Cr `2.57 lakh Cr Current Account – 7% Deposits `1.93 lakh Cr 11.81% 14.07% Savings Account – 11% 25% 8.93% Diversified Domestic Loan Operating Profit Net Profit RoA RoE Book `1919 Cr `247 Cr 0.33%
Slide 12: Financials – Net Interest Income (NII) & Operating Profit
Financials – Net Interest Income (NII) & Operating Profit ` in Cr Year Ended Quarter Ended Nine Months Ended S No Components 31.03.2019 31.12.2018 30.09.2019 31.12.2019 Y-o-Y (%) 31.12.2018 31.12.2019 Y-o-Y (%) 1 Interest Income 19185 4824 5308 5467 13 14217 15912 12 2 Other Income 1883 445 738 1039
Slide 13: Net Profit - Snapshot
Net Profit - Snapshot ` in Cr Year Ended Quarter Ended Nine Months Ended S No Components 31.03.2019 31.12.2018 30.09.2019 31.12.2019 Y-o-Y (%) 31.12.2018 31.12.2019 Y-o-Y (%) 1 Operating Profit 4881 1147 1502 1919 67 3635 4795 32 2 Total Provisions 4559 994 1143 1672 68 3123 3824 22 Of which Loan lo
Slide 14: Interest Income / Expenses & Net Interest Income
Interest Income / Expenses & Net Interest Income ` in Cr Year Ended Quarter Ended Nine Months Ended S No Components 31.03.2019 31.12.2018 30.09.2019 31.12.2019 Y-o-Y (%) 31.12.2018 31.12.2019 Y-o-Y (%) 1 Interest Income on Advances and Discount on Bills 13984 3553 3994 4050 14 10325 11896 15 2 Inter
Slide 15: Fee Income
Fee Income ` in Cr Year Ended Quarter Ended Nine Months Ended Components 31.03.2019 31.12.2018 30.09.2019 31.12.2019 Y-o-Y (%) 31.12.2018 31.12.2019 Y-o-Y (%) Fee Income (Total of (i) to (vii)) 1185 266 304 346 30 849 930 10 Of which (i) Transaction fees 425 104 113 111 6 323 329 2 Of which ATM acqu
Slide 16: Operating Expenses
Operating Expenses ` in Cr Year Ended Quarter Ended Nine Months Ended S No Components 31.03.2019 31.12.2018 30.09.2019 31.12.2019 Y-o-Y (%) 31.12.2018 31.12.2019 Y-o-Y (%) 1 Staff Expenses 2223 565 586 593 5 1651 1775 8 Of which Salary 1788 449 463 457 2 1334 1312 -2 Contribution for Employees 435 1
Slide 17: Business Snapshot
Business Snapshot ` in Cr Parameter 31.12.2018 31.03.2019 30.09.2019 31.12.2019 YOY (%) Domestic Deposits Deposits 225847 242076 253172 257621 14 Domestic 219588 235237 245557 250363 14 Overseas 6259 6839 7615 7257 16 Core Term Deposits Other Term Deposits Deposits breakup Savings Bank Current accou
Slide 18: Advances (Domestic) - Composition
Advances (Domestic) - Composition ` in Cr Sector 31.12.2018 31.03.2019 30.09.2019 31.12.2019 YoY (%) Gross Advances-Domestic 169690 180345 185836 184362 9 Retail 30511 32853 35920 37207 22 Agriculture 37286 39005 40980 42134 13 MSME 31808 33046 36765 37917 19 Total (RAM) 99604 104904 113665 117258 1
Slide 19: Corporate Sector - Overview
Corporate Sector - Overview ` in Cr % to Gross % to Gross % to Gross % to Gross Composition 31.12.2018 31.03.2019 30.09.2019 31.12.2019 Advances Advances Advances Advances NBFCs 19646 12 19865 11 19990 11 19947 11 NBFC - PSUs 65 0 56 0 41 0 32 0 NBFC - HFCs 7534 4 7223 4 7884 4 8095 4 NBFC - MFIs 89
Slide 20: Sectoral Deployment – Domestic Advances
Sectoral Deployment – Domestic Advances % share to % share to ` in Cr Sector 31.12.2018 Gross 31.12.2019 Gross YoY (%) Advances Advances Infrastructure 23851 14 26693 14 12 Of which Power 9057 5 8328 5 -8 Corporate Credit Telecom 105 0 92 0 -12 -14 Roads 4153 2 3582 2 39 April 19 to December 19 Othe
Slide 21: Standard Domestic Credit Exposure – Profile of External Rating
Standard Domestic Credit Exposure – Profile of External Rating ` in Cr 31.12.2018 31.03.2019 30.09.2019 31.12.2019 External Rating Exposure % to Total Exposure % to Total Exposure % to Total Exposure % to Total AAA 15772 14 13825 13 11147 10 11777 11 AA 21177 19 22700 21 28258 25 29285 28 A 12045 11
Slide 22: Investments - Domestic
Investments - Domestic ` in Cr Composition 31.12.2018 31.03.2019 30.09.2019 31.12.2019 Y-o-Y (%) Central Government Securities 39134 38139 44486 47230 21 State Government Securities 13085 13880 17404 18048 38 Other Approved Securities 7 5 4 3 -57 Debentures & Bonds 9167 9275 8716 7390 -19 Treasury B
Slide 23: Performance Ratios
Performance Ratios % Annualized Year Ended Quarter Ended Nine Months Ended Parameters 31.03.2019 31.12.2018 30.09.2019 31.12.2019 31.12.2018 31.12.2019 Cost of Deposits 5.28 5.37 5.45 5.39 5.26 5.43 Cost of Funds 5.32 5.42 5.46 5.34 5.31 5.43 Cost to Income Ratio 45.17 46.96 42.26 35.91 44.65 40.62
Slide 24: Capital Adequacy – Risk Management
Capital Adequacy – Risk Management ` in Cr Parameters 31.12.2018 31.03.2019 30.09.2019 31.12.2019 CRAR 12.67% 13.21% 14.52% 15.00% Capital 19609 20234 23622 23654 1.88 Common Equity Tier I (CET 1) 16900 16790 20149 20188 1.83 0.32 1.92 0.31 Additional Tier I 500 500 500 500 1.43 0.32 0.33 Tier II 22
Slide 25: Shareholding Pattern & Balance Sheet
Shareholding Pattern & Balance Sheet Pattern of Equity Shareholding Government of India Mutual Funds FI/FPI/FII Resident/Employees/NRI Shareholder % QIB / Others Government of India 83.46 0.81 Mutual Funds 5.79 4.71 5.23 FIs / FPIs / FIIs 4.71 5.79 Residents / Employees / NRIs 5.23 QIBs / Others 0.8
Slide 26: Asset Quality – Movement of NPA
Asset Quality – Movement of NPA ` in Cr Quarter Ended S No Details 31.12.2018 31.03.2019 30.09.2019 31.12.2019 1 Gross NPA opening balance 12334 13198 13511 13981 ADDITIONS : Fresh Slippages 1769 962 741 2138 To old NPAs / Others -20 43 42 67 2 Sub-Total 1749 1005 783 2205 LESS: MSME Restructuring C
Slide 27: Sectorwise Slippage
Sectorwise Slippage ` in Cr SLIPPAGE CURVE (Incl. DHFL) SLIPPAGE CURVE (Excl. DHFL) RETAIL AGRI MSME CORPORATE TOTAL RETAIL AGRI MSME CORPORATE TOTAL 2500 2500 2000 2000 SLIPPAGE in Crore SLIPPAGE in Crore 1500 1500 1000 1000 500 500 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 (Inc Q1 Q2 Q3 Q4 Q1 Q2 Q3 (Excl. DHFL) DH
Slide 28: NPA Position - Sectorwise
NPA Position - Sectorwise ` in Cr Sectorwise GNPA to Total GNPA (%) 31.12.2018 31.03.2019 30.09.2019 31.12.2019 % to % to % to % to Sector Gross Gross Gross Gross respective respective respective Outstanding respective NPA NPA NPA NPA portfolio portfolio portfolio portfolio 73.52 72.09 69.47 68.79 R
Slide 29: NPA Position – Industry wise
NPA Position – Industry wise ` in Cr 31.12.2018 31.03.2019 30.09.2019 31.12.2019 % to % to % to % to Industry Gross NPA respective Gross NPA respective Gross NPA respective Gross NPA respective portfolio portfolio portfolio portfolio Metal and Metal Products (Incl. Iron & Steel) 2075 40.83 1962 29.6
Slide 30: Status of NCLT Accounts – Q3 FY 20
Status of NCLT Accounts – Q3 FY 20 ` in Cr No.of Category Exposure Provision PCR% Accounts RBI List I 6 1647 1252 76.0 RBI List II 9 727 669 92.0 Others * 78 6528 4532 69.4 Total 93 8902 6453 72.5 * Of which accounts filed by other banks at NCLT – 67 accounts (`5465 Cr) Recovery from List I : `2.63
Slide 31: Business Network
Business Network Network - Distribution Breakup of Branches Region wise Population Group wise Overseas, 3 3988 ATMs & Northern Metro, 679 Rural, 738 BNAs 11 % North Eastern 3 2% Urban, 637 2887 Overseas Central Eastern Semi Urban, 833 Branches 8% 10 % Branches Western 8% 3032 BCs Southern 61 % 25/37
Slide 32: Digital Initiatives
Digital Initiatives UPI 2.0 PPF Account Opening Customers can link Overdraft account to Facility to Customers for opening PPF UPI , Issue Mandate, Apply for shares, Account with nomination through Receive Foreign Inward Remittance Internet Banking UPI QR-Small Merchant App EMI @ PoS Facilitates merc
Slide 33: Migration to Digital Channels
Migration to Digital Channels Digital 57% Transaction 62% 21% ATM & BNA Transactions 18% At Branch/ATM 5% Through Digital Channels 5% Branch 22% Transaction 20% 0 20 40 60 80 FY 2018-19 Q3 FY 2019-20 Q3 27/37
Slide 34: Digital Footprint
Digital Footprint Net Banking Penetration Mobile Banking Penetration In lakhs YoY 23% 23.72 YoY 37% 19.25 25.77 No. of users 18.8 FY 2018-19 Q3 FY 2019-20 Q3 FY 2018-19 Q3 FY 2019-20 Q3 YoY 6% YoY 174% 71.36 621.93 67.40 No. of Transactions 226.76 FY 2018-19 Q3 FY 2019-20 Q3 FY 2018-19 Q3 FY 2019-20
Slide 35: Digital Footprint – Performance under 24*7 Banking
Digital Footprint – Performance under 24*7 Banking Pos/e-Com Transactions (lakhs) 228 YoY 32% Pos Acquirer Transactions (lakhs) YoY 14% 39.68 173 34.69 FY 2018-19 Q3 FY 2019-20 Q3 FY 2018-19 Q3 FY 2019-20 Q3 Credit Card No. of Credit Cards YoY 15% No. of Transactions (lakhs) YoY 19% Volume of Transa
Slide 36: Financial Inclusion – Performance under PMJDY
Financial Inclusion – Performance under PMJDY Accounts (No.in lakhs) 11% Deposits (` in Cr) OD Sanctioned (` in Cr) 32% Dec-18 Dec-19 % of Zero Balance A/cs Dec-18 Dec-19 Dec-18 Dec-19 18% Dec-18 Dec-19 30/37
Slide 37: Performance under Government Schemes (as on 31.12.19)
Performance under Government Schemes (as on 31.12.19) Pradhan Mantri Suraksha Bima Yojana (PMSBY) 24 lakh Policies Pradhan Mantri Jeevan Jyothi Bima Yojana (PMJJBY) 10.69 lakh Policies MUDRA Disbursement (including RRBs) `2564 Cr in 137425 accounts ATAL Pension Yojana (APY) 7.73 lakh enrolments Pers
Slide 38: Awards & Accolades
Awards & Accolades NABARD MeitY, GoI Govt. of India 1st among PSBs Winner 1st in for Excellence in Digi Dhan Digital Swatchhta performance under Payment Award Pakhwada 2019 “SHG Bank Linkage 2018-19 for outstanding programme” Under category A* contribution to (Digital transactions under in Tamil Nad
Slide 39: Project Sangam - Synergies of Amalgamation
Project Sangam - Synergies of Amalgamation Pan India presence strengthened – 6058 Branches & 4821 ATMs with increased presence in Central, Eastern & Northern region Wider clientele - 110 million Increase in no.of BCs - 9108 - Penetration to the unbanked area Leveraging Specialised Verticals / Branch
Slide 40: Project Sangam – Amalgamation Status
Project Sangam – Amalgamation Status In-principle approval accorded on 13.11.2019 by the Alternative Mechanism (AM). Consultants/Advisor have been on -boarded. Committees have been formed Preparedness for “Legal Day 1” is under progress & Harmonisation of Policies/ Products/Processes for the merged
Slide 41: Strategic initiatives undertaken
Strategic initiatives undertaken Organizational restructuring Customer centric measures New deposit products viz., Savings Bank product for Senior Citizens and Current account products for Residents/NREs with exclusive offerings 3 Specialised Corporate Credit branches launched Office of Field Genera
Slide 42: Disclaimer
Disclaimer This presentation has been prepared by Indian Bank (the “Bank”) solely for information purposes, without regard to any specific objectives, financial situations or informational needs of any particular person. Except for the historical information contained herein, statements in this rele
Slide 43: Thank You