IDBI Bank Limited · NSE:IDBI
IDBI Bank — Q1 FY2020 Earnings Presentation
49 slides from IDBI Bank's earnings presentation, Aug 14, 2019
Slide 1: Presentation to Analysts: Financial Results Q1 FY 2020
PRESENTATION TO ANALYSTS FINANCIAL RESULTS Q1 FY 2020 August 14, 2019
Slide 2: Content
Content Highlights Financial Performance Business Performance Treasury Operations Asset Quality Capital Prompt Corrective Action Matrix Digital Banking & Financial Inclusion IDBI-LIC Synergy 2
Slide 3: Highlights
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Slide 4: Highlights for Qtr June 2019 (YoY)
Highlights for Qtr June 2019-(YoY) Net Loss increased from Rs. 2410 Cr to Rs.3801 Cr CRAR at 8.14% ; CET1+CCB Ratio increased marginally to 5.90% from 5.84% RWA at Rs.170734 Cr (Decreased by Rs. 29089 Cr) GNPA marginally reduced to 29.12% from 30.78% ; NNPA reduced significantly to 8.02% from 18.76%
Slide 5: Highlights for Qtr June 2019 (QoQ)
Highlights for Qtr June 2019 (QoQ) Operating profit (excl. non core profit) at Rs.951 Cr (32% decrease) NII at Rs.1458 Cr (9% decrease) NIM decreased by 13 bps from 2.26% to 2.13% Net Loss reduced from Rs.4918 Cr to Rs.3801 Cr Cost to Income Ratio (excl. gain on non core assets) increased by 901 bps
Slide 6: Financial Performance
mlatelarestel Performance |@ IDBI BANK | 6
Slide 7: Profit & Loss
Profit & Loss (Rs.Crore) Quarter ended Variance Variance Particulars FY19 Jun-18 Mar-19 June-19 (Y-o-Y) % (Q-o-Q) % Interest Income 5 760 5 463 5 091 (12) (7) 22 071 Interest Expenses 4 121 3 854 3 633 (12) (6) 16 166 Net Interest Income 1 639 1 609 1 458 (11) (9) 5 906 Other Income 643 1153 833 30
Slide 8: Total Income
Total Income (Rs.Crore) Quarter ended FY Ended Particulars Variance Variance Jun-18 Mar-19 Jun-19 Mar-19 (Y-o-Y)% (Q-o-Q)% Interest on Advances 3876 3503 3197 (18) (9) 14381 Interest on Investments 1601 1700 1570 (2) (8) 6633 Other Interest Income 283 260 324 15 25 1058 Interest Income 5760 5463 509
Slide 9: Fee Based Income
Fee Based Income (Rs.Crore) Quarter Ended FY Ended Other Income YoY Q-o-Q June-18 Mar-19 June-19 Mar-19 Growth % Growth % BG Commission 88 77 57 (35) (26) 317 LC Commission 110 60 60 (45) 0 288 Bills Commission 3 8 8 145 (6) 27 Proc. Fee & Incidental Charges 130 175 120 (8) (31) 519 Remittances Fees
Slide 10: Total Expenses
Total Expenses (Rs.Crore) Quarter ended FY Ended Particulars Variance Variance Jun-18 Mar-19 June 19 Mar-19 (Y-o-Y)% (Q-o-Q)% Interest paid on Deposits 3234 3013 2899 (10) (4) 12526 Interest paid on Borrowings 772 620 591 (23) (5) 2975 Interest on RBI / inter bank borrowings 115 220 143 25 (35) 665
Slide 11: Operating Expenses
Operating Expenses (Rs.Crore) 1366 1340 1200 749 751 729 616 611 452 Qtr Jun 18 Qtr Mar 19 Qtr Jun 19 Operating Expenses Other Operating expenses Staff Expenses 11
Slide 12: Provisions & Contingencies
Provisions & Contingencies (Rs.Crore) Quarter Ended FY ended Particulars Jun-18 Mar-19 June -19 FY19 Depreciation on Investment 68 (350) 182 1604 -MTM Gain/(Loss) 73 446 (5) (1696) Provision - NPAs 4 603 7233 7009 22392 Provision - standard assets (87) 264 (918) (28) Provision - Restructured Assets
Slide 13: Yield Ratios (cumulative)
Yield Ratios (cumulative) Yield on Advances NIM 8.89% 8.82% 2.13% 8.83% 2.17% 2.03% 1.88% 1.80% 8.62% 8.46% Jun-18 Sep-18 Dec 18 FY 19 June 19 Jun-18 Sep-18 Dec 18 FY 19 June 19 Yield on Advances reduced by 21 bps YoY NIM has reduced by 4 bps YoY Cost to Income (excl Gain on Sale of Non Cores Assets
Slide 14: Business Performance
Business Performance 14
Slide 15: Balance Sheet
Balance Sheet (Rs.Crore) As at June-18 Mar-19 June-19 LIABILITIES Capital 4 181 7 736 7 736 Reserve & Surplus 22 500 29 875 26 075 Deposits 2 39 896 2 27 372 2 30 784 Borrowings 45 941 45 288 30 968 Other Liabilities & Provisions 9 916 10 013 9 559 Total 3 22 434 3 20 284 3 05 122 ASSETS Cash & Bala
Slide 16: Balance Sheet Ratios
Balance Sheet Ratios Particulars June-18 Mar-19 June-19 Total Business [Dep. + Adv.] (Rs. crore) 399693 374162 367489 SB Deposits to Total Deposits (EOP) 22.83 27.01 25.71 Current Account Deposits to Total Deposits(EOP) 12.68 15.53 17.44 Time Deposits to Total Deposits(EOP) 64.49 57.46 56.85 -Bulk D
Slide 17: CASA Performance
CASA Performance (Rs.Crore) YoY variance QoQ variance Parameters June-18 Mar-19 June-19 (%) (%) Global Deposits 239896 227372 230784 -4 2 CASA Share 35.51 42.54 43.15 CASA Deposits 85180 96730 99590 17 3 Saving Deposits 54772 61414 59330 8 -3 Current Deposits 30408 35317 40260 32 14 Term Deposits 15
Slide 18: Cost of Deposit & Cost of Funds (cumulative)
Cost of Deposit & Cost of Funds (cumulative) Cost of Deposits 5.41% 5.41% 5.44% 5.53% 5.29% Jun-18 Sep-18 Dec 18 FY 19 June 19 Cost of Funds 5.79% 5.88% 5.78% 5.72% 5.63% Jun-18 Sep-18 Dec 18 FY 19 June 19 18
Slide 19: Advances
Advances (Rs.Crore) YoY variance QoQ variance Parameters June-18 Mar-19 June-19 (%) (%) Gross Advances 187814 182097 177415 -6 -3 Standard Gross Advances 130007 132069 125758 -3 -5 NPA Gross Advances 57807 50028 51658 -11 3 Corporate 103264 88928 85230 -14 -4 Retail 84550 93170 92185 4 -1 Corporate
Slide 20: Increasing RAM
Increasing RAM (Rs.Crore) % of Retail Share in Advances % of Agri Share in Advances 8.65 8.65 32.66 33.81 27.55 59984 59477 8.60 15760 16244 15252 51745 Jun-18 Mar-19 Jun-19 Jun-18 Mar-19 Jun-19 % of MSME Share in Advances % of RAM Share in Advances 9.04 50.92 50.36 8.59 18089 8.51 44.79 90333 16461
Slide 21: Retail Products Growth
Retail Products Growth (Rs.Crore) Growth (YoY) Growth (QoQ) Structured Retail Assets Jun-18 Sep-18 Dec-18 Mar-19 June-19 (%) (%) HL 32581 33803 35379 37736 38669 19 2 LAP 10686 11229 11925 12774 12714 19 0 EL 875 943 966 991 1003 15 1 PL 414 457 502 551 559 35 1 AL 1620 1706 1899 1983 1994 23 1 Stru
Slide 22: Priority Sector
Priority Sector (Rs.Crore) June-18 Mar-19 June-19 Growth Particulars June 18 as % of Mar 19 as % of June 19 as % of over ANBC ANBC ANBC March-19 Actuals Actuals Actuals Actuals Actuals Actuals Actuals 1 2 3 4 5 6 7 (8)=[(6)-(4)] ANBC 209506 207885 190461 Priority Sector Advances (a+b+c) 86503 41.29
Slide 23: Priority Sector
Priority Sector (Rs.Crore) June-18 Mar-19 June-19 National Particulars Goals Achieved O/S Achieved O/S Achieved O/S Priority Sector ( of ANBC) 40 41.29 86503 43.62 90686 41.87 79749 Total Agricultural Advance ( of ANBC) 18 16.04 33605 18.08 37588 20.16 38405 Small & Marginal Farmers ( of ANBC) 8 6.0
Slide 24: Top 20 Industry-wise Advances
Top 20 Industry-wise Advances (Rs.Crore) Outstanding as on 30.06.2019 Top 20 Industries % of Total FB NFB Total GNPA FTNPA FB+NFB Infrastructure 33589 21078 54667 18 14787 2640 -Transport 11360 6045 17405 6 5944 110 -Energy 19201 7424 26625 9 8118 2526 -Water and Sanitation 1894 1642 3536 1 658 0 -C
Slide 25: Treasury Operations
Treasury Operations |@ IDBI BANK | 25
Slide 26: Treasury Operations
Treasury Operations (Rs.Crore) Year Particulars Quarter ended Ended Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Mar-19 Profit/ (Loss) on sale of investments (net) -25 122 98 141 187 336 Profit from Strategic Sale (Investments) 0 216 0 0 0 216 Others -25 -93 98 141 187 120 Profit/(Loss) on revaluation of inve
Slide 27: Investments
Investments 3% 3% (Rs.Crore) Category June-18 Mar-19 June-19 38% 32% HFT HTM 56106 55114 55189 AFS 35537 35641 27154 AFS HFT 2884 2317 2855 HTM Total 94527 93073 85198 59% 65% AFS BREAKUP June-18 June-19 1421 Parameter June-18 March-19 June-19 2785 SLR 74371 72125 66389 1188 Non SLR 20754 21224 1909
Slide 28: Asset Quality
Asset Quality |@ IDBI BANK | 28
Slide 29: Asset Quality
Asset Quality (Rs.Crore) PCR improved from 64.45 % (June 2018) to 87.79 % (June 2019) Particulars Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Gross Advances 187814 191524 186580 182097 177415 Gross NPAs 57807 60875 55360 50028 51658 Gross NPAs as % of Gross Advances 30.78 31.78 29.67 27.47 29.12 Total Provis
Slide 30: NPA Movement
NPA Movement (Rs.Crore) DESCRIPTION Q1 FY 19 Q2 FY 19 Q3 FY 19 Q4 FY 19 FY 19 Q1 FY 20 Opening Balance 55588 57807 60875 55360 55588 50028 Add: a. First Time NPA 7799 3489 2211 1781 15281 3486 b. Increase 949 765 784 430 2927 622 Less: c. Settled 1507 570 3440 927 6443 729 d. Upgradation 508 591 146
Slide 31: NPA Movement
NPA Movement (Rs.Crore) DESCRIPTION Gross NPA Prov NPV Loss NCLT Prov Net NPA Opening Balance 50028 34378 1 811 14837 Add: a. First Time NPA 3486 2441 0 0 1044 b. Increase/Ageing 622 6170 0 7 (5555) Less: c. Settled 729 873 0 585 (729) d. Upgradation 138 45 0 0 93 e. Written off 1611 1611 0 0 0 Clos
Slide 32: Slippage & Recovery
Slippage & Recovery (Rs.Crore) Quarterly Fresh Slippages 7799 3489 3486 2211 1781 Q1 FY 19 Q2 FY 19 Q3 FY 19 Q4 FY 19 Q1 FY 20 Recoveries & Upgradation 3586 2015 1161 1089 867 Q1 FY 19 Q2 FY 19 Q3 FY 19 Q4 FY 19 Q1 FY 20 32
Slide 33: NCLT – Summary – RBI List 1st & 2nd
NCLT – Summary – RBI List 1st & 2nd (Rs.Crore) June 30, 2019 June 30, 2019 Particulars RBI 1st List RBI 2nd List No. of Cases 12 29 Cases where IDBI Bank has exposure 11 19 IDBI Bank Lead cases 2 4 Cases which have been Admitted 11 14 IDBI Bank Gross Principal O/S (Rs.crore) 13,741 11,043 IDBI Bank
Slide 34: NCLT - Cases filed and admitted
NCLT - Cases filed and admitted (where IDBI Bank has exposure) (Rs.Crore) SUMMARY OF CASES FILED Particulars 30-June-19 ASSET CLASS OF NCLT No. GPO ADMITTED CASES Cases Filed by IDBI Bank 35 14855 Cases filed by other Banks/ Financial Creditor (FC) 129 28316 Cases filed by Operational Creditors 194
Slide 35: SMA Position
SMA Position (Rs.Crore) Corporate Retail Total June-18 Mar-19 June-19 June-18 Mar-19 June-19 June-18 Mar-19 June-19 SMA 0 4377 935 2589 3674 2379 2331 8051 3314 4919 SMA 1 744 1104 1060 1538 1619 1427 2282 2723 2488 SMA 2 2188 13 1388 1167 1293 1477 3355 1306 2865 Total 7309 2052 5037 6379 5291 5235
Slide 36: Capital
Capital |@ IDBI BANK | 36
Slide 37: Capital Adequacy
Capital Adequacy (Rs.Crore) Particulars June-18 March -19 June-19 CET 1 + CCB (Rs.) 11668 16340 10067 AT 1 (Rs.) 684 413 413 Tier 1 Capital (Rs.) 12351 16753 10480 Tier 2 Capital (Rs.) 6077 4497 4375 Total Capital (Rs.) 18428 21250 14854 RWA (Rs.) 199823 183457 170734 CET 1+CCB Ratio 5.84 8.91 5.90
Slide 38: Risk Weighted Assets
Risk Weighted Assets (Rs.Crore) Movement of RWA against Advances As on Particulars Jun-18 Sept-18 Dec-18 Mar -19 June -19 Credit RWA 161548 155018 153677 147300 138683 Market RWA 21491 20226 19995 19371 15365 Operation RWA 16785 16785 16785 16785 16686 Total RWA 199823 192028 190456 183457 170734 To
Slide 39: Shareholding Pattern
Shareholding Pattern 6% 8% June 2018 3% 86% LIC GOI Others 46% 51% June 2019 LIC GOI Others 39
Slide 40: Prompt Corrective Action Matrix
Prompt Corrective Action Matrix 40
Slide 41: Prompt Corrective Action (PCA) Matrix
Prompt Corrective Action (PCA) Matrix Risk June-19 Criteria Indicator Threshold 1 (T1) Threshold 2 (T2) Threshold 3 (T3) IDBI – Actual Capital CRAR+CCB <11.5% but (Breach of <9% but >7.5% <7.5% 8.14% T2 (9%+2.5%) >=9% either CRAR or CET1 Ratio to CET 1+CCB >=6.375% but >=4.875% but <4.875% 5.90% T2
Slide 42: Indicators on Parameters of PCA
Indicators on Parameters of PCA CET 1 % CRAR % Net NPA % 8.91% 11.58% 18.76% 5.84% 5.90% 8.18% 8.14% 10.11% 8.02% Jun-18 Mar-19 Jun-19 Jun-18 Mar-19 Jun-19 Jun-18 Mar-19 Jun-19 Op. Profit Excl. gain on strategic sale Provision Coverage Ratio % Credit RWA to Advances 1405 83% 88% 86% 1081 951 64% 81%
Slide 43: Digital Banking & Financial Inclusion
Digital Banking & Financial Inclusion 43
Slide 44: Digital Channel Total Registrations
Digital Channel Total Registrations Particulars June 19 June 18 Growth(%) Debit Cards (in 122 118 3.38 Lakhs) I Net Banking (No of 11.34 Customer Reg.) 10480661 9412800 Mobile Banking (No of Customer Reg. 2672228 2279846 17.21 No of ATM 3697 3735 -1.01* No of E Lounge 58 58 - BHIM UPI User 2075736 9
Slide 45: Digital Channel Volume of Transactions
Digital Channel Volume of Transactions (Rs. in Cr) Particulars Qtr June 19 Qtr June 18 Growth(%) Debit Cards 2543 2215 14.86 (eCom & POS ) Mobile Banking 3297 1713 92.47 Credit Cards 122 97 26 Internet Banking 131613 130316 1 POS Terminals 2594 2711 -4.3** ATMs 13697 15072 -9.1 * *Few loss making AT
Slide 46: Financial Inclusion
Financial Inclusion Progress Under Pradhan Mantri Jan Dhan Yojana (PMJDY) Parameters Jun-19 Accounts opened (Number in lakh) 8 Deposits (Rs. In Crore) 249 RuPaycards issued (Number in lakhs) 7 Aadhar Seeding under PMJDY(Number in lakhs) 6 Villages Covered (Number) 565 Sub Service Areas (Number) 490
Slide 47: IDBI-LIC Synergy
IDBI-LIC Synergy |@ IDBI BANK] 47
Slide 48: Major Achievements
Major Achievements MOUs/ Agreements Executed: Bancassurance, Rapid Pay, Bulk/ NEFT Payments, Collections, ACH Debit and Direct Debit Scheme for onboarding LIC agents as Home Loan agents completed. Lead based incentive for sourcing CASA account in progress LIC renewal Premium Collection through- Cash
Slide 49: Thank You
Thank You |@ IDBI BANK | 49