Central Bank Of India · NSE:CENTRALBK
Central Bank Of India — Q2 FY2022-23 Earnings Presentation
54 slides from Central Bank Of India's earnings presentation, Oct 25, 2022
Slide 1: Revised presentation cover letter to exchanges
CO:IRD:2022-23:287 25 t h October, 2022 National Stock Exchange of India Limited BSE Ltd. Listing Department Corporate Relationship Deptt Exchange Plaza, Phiroze Jeejeebhoy Towers Plot No.C/1, ‘G’ Block Dalal Street, Fort Bandra-Kurla Complex Mumbai 400001 Bandra (E), Mumbai -400 051 Scrip Code - 53
Slide 2: Business Result Analysis Quarter Ended 30th Sep'2022
ORBIT NEXT Business Result Analysis Quarter Ended 30th Sep’2022 Visit us at www.centralbankofindia.co.in https://youtube.com/c/CentralBankofIndiaOfficial https://www.instagram.com/centralbank_in https://www.linkedin.com/company/centralbankofindia http://twitter.com/centralbank_in https://www.faceboo
Slide 3: Values That Set Us Apart
VALUES THAT SET US APART C E N T R A L CONSISTENCY LOYALTY TRANSPARENCY ETHICAL STANDARDS RESPONSIVENESS ACCOUNTABILITY NURTURING POTENTIAL 2
Slide 4: Strengths
STRENGTHS Best CASA base Strong Brand Strong Rural + Semi Pan India Presence @50.99% of total Image with Legacy Urban Presence with with 17187 deposits of 111+ Years 65% of Total Branches Customer Touch in RUSU Centers Points DEDICATED STAFF STRENGTH OF 31459 3
Slide 5: Bank Exited from PCA Framework
BANK EXITED FROM PCA FRAMEWORK As per RBI communication dated 20th Sep’22, with sustained performance and complying with all PCA parameters on an ongoing basis upto Jun’22, Bank exited from Prompt Corrective Action (PCA) framework of RBI. The performance has further improved during Sep’22 quarter. J
Slide 6: Contents
CONTENTS 01 PERFORMANCE HIGHLIGHTS 7-8 02 BUSINESS PERFORMANCE 10-20 03 FINANCIAL PERFORMANCE 22-26 04 ASSETS QUALITY & CAPITAL ADEQUACY 28-35 05 INVESTMENTS 37-39 06 DIGITAL JOURNEY 41-43 5
Slide 7: Performance Highlights
PERFORMANCE HIGHLIGHTS
Slide 8: Key Highlights
KEY HIGHLIGHTS BUSINESS PROFIT & LOSS TOTAL BUSINESS OPERATING PROFIT Has increased from ₹ 1445 Cr in Sep'21 to Has increased to ₹ 540103 Cr in Sep'22 from ₹ 512094 Cr ₹ 1748 Cr. in Sep'22 registering a growth of 20.97% on in Sep'21 registering a growth of 5.47% on Y-o-Y basis. Y-o-Y basis. CASA Dep
Slide 9: Key Highlights
KEY HIGHLIGHTS EFFICIENCY RATIOS ASSET QUALITY GNPA NIM Improved to 9.67% as against 15.52% in Sep’21 on Y-o-Y basis. Net Interest Margin further improved to 3.44% in Sep’22 from 2.97% in Sep’21. NET NPA Improved from 4.51% in Sep'21 to 2.95% in Sep’22, registering an improvement of 156 bps. COST TO
Slide 10: Business Performance
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Slide 11: Profitability – Sustained Growth
PROFITABILITY – SUSTAINED GROWTH NET PROFIT ₹ in Cr 14.08% 27.20% 235 318 250 206 JUN'21 JUN'22 SEP'21 SEP'22 310 279 250 206 JUN'21 SEP'21 DEC'21 MAR'22 10
Slide 12: Business Across the Board
BUSINESS ACROSS THE BOARD ₹ in Cr PARTICULARS SEP'21 SEP'22 Y-o-Y Growth % Total Business 512094 540103 5.47 Total Deposits (Including Interbank 336500 343081 1.96 Deposits) CASA Deposits 167203 174296 4.24 CASA % 49.79 50.99 120bps Total Advances 175594 197022 12.20 RAM 117288 132965 13.37 Corporat
Slide 13: Deposit Mix
DEPOSIT MIX Sep '21 ₹ in Cr 0.20% 4.58% PARTICULARS SEP'21 SEP'22 Y-o-Y Growth % Current 15407 16713 8.48 45.11% 50.11% Savings 151796 157583 3.81 Sep '22 Total CASA Deposits 167203 174296 4.24 0.37% 4.87% CASA % 49.79 50.99 120bps Core Time Deposit 168625 167526 -0.65 48.83% 45.93% Total Core Depos
Slide 14: Credit Performance
CREDIT PERFORMANCE ₹ in Cr Sep'21 SECTORS SEP'21 SEP'22 Y-o-Y Growth % 33.21% 27.70% Retail 48638 57411 18.04 RAM 66.79% Agriculture 36957 39870 7.88 18.04% 21.05% MSME 31693 35684 12.59 Sep'22 RAM 117288 132965 13.37 32.51% 29.14% Corporate 58306 64057 9.86 RAM 67.49% Gross Advance 175594 197022 12
Slide 15: Diversified Loan Book
DIVERSIFIED LOAN BOOK ₹ in Cr As on 30th Sep’22 Housing Loan 34141 17% 32% 2% Auto Loan 3155 2% RAM 2% Personal Loan 3115 67.49% 7% Education Loan 3408 20% 18% Other Retail 13592 Housing Loan Auto Loan Personal Loan Total Retail 57411 Education Loan Other Retail Loan Agriculture Loan MSME Credit Cor
Slide 16: Retail Segment
RETAIL SEGMENT ₹ in Cr HOME LOAN ₹ 34141 EDUCATION LOAN ₹ 3408 OTHER RETAIL LOAN ₹ 13592 AUTO LOAN ₹ 3155 PERSONAL LOAN ₹ 3115 59.47% 5.49% 5.94% 5.43% 23.67% of Total Retail Advance of Total Retail Advance of Total Retail Advance of Total Retail Advance of Total Retail Advance Y-o-Y Growth Y-o-Y Gr
Slide 17: Rated Standard Advances
RATED STANDARD ADVANCES ₹ in Cr Sep'21 Unrated INVESTMENT GRADE 5.32% AAA WISE STANDARD 22.12% SEP'21 SEP'22 Y-o-Y BB and Below 15.15% ADVANCES (FUND BASED) Government Guaranteed AAA 10222 18251 78.55 Advances 8.18% AA 10870 13505 24.24 BBB 15.79% AA 23.52% A 4585 6915 50.82 A 9.92% BBB (Including C
Slide 18: Sanctions & Disbursements
SANCTIONS & DISBURSEMENTS ₹ in Cr GROWTH (%) GROWTH (%) IN SANCTIONS DISBURSEMENTS IN SANCTIONS (Amt.) DISBURSEMENTS (Amt.) No. of A/Cs Amt. No. of A/Cs Amt. Sector Sep'21 Sep'22 Y-o-Y Y-o-Y Sep'21 Sep'21 Sep'22 Sep'22 Retail 52026 2612.00 60111 6297.74 2023.00 4742.81 141.11 134.44 Agriculture 1874
Slide 19: Co-Lending
CO-LENDING ₹ in Cr RETAIL 918.38 607.15 SEP'21 MAR'22 SEP'22 ₹ in Cr 354.07 OUTSTANDING SANCTIONS As on 30 Sep'22 th SEP'21 MAR'22 SEP'22 Sector No. of A/Cs Amt. No. of A/Cs Amt. No. of A/Cs Amt. No. of A/Cs Amt. AGRICULTURE 1.68 0.90 Retail 2724 354.07 5679 607.15 6855 918.38 24331 2725.34 0.00 Agr
Slide 20: Achievement Under Mandated Targets
ACHIEVEMENT UNDER MANDATED TARGETS TOTAL PRIORITY SECTOR ADVANCES @ 54.13% of ANBC against norm of 40% AGRICULTURE ADVANCES @ 22.45% of ANBC against norm of 18% SURPASS THE MANDATED NORMS IN RESPECT OF WEAKER SECTOR @ 17.48% of ANBC against norm of 11.50% PSLC SOLD ₹ 4650 Cr ADVANCES TO SMALL AND MA
Slide 21: Covid-19 Credit Support
COVID -19 CREDIT SUPPORT ₹ in Cr ECLGS EXTENSION No. of Sanctions – 165801 ECLGS-1 Amt. Sanctioned – 3162.52 No. of Sanctions 10213 EXTENSION - 1 Amount Sanctioned 745.79 No. of Sanctions – 178 ECLGS-2 Amt. Sanctioned – 558.01 No. of Sanctions 92 EXTENSION - 2 Amount Sanctioned 64.39 No. of Sanction
Slide 22: Financial Performance
FINANCIAL PERFORMANCE |
Slide 23: Financials at a Glance
FINANCIALS AT A GLANCE Quarterly ₹ in Cr Quarter Ended Growth % Particulars Sep'21 Jun'22 Sep'22 (Q-o-Q) (Y-o-Y) Total Interest Income# 5494 5526 6155 11.38 12.03 Total Interest Expenses 3288 3384 3408 0.71 3.65 Net Interest Income# 2206 2142 2747 28.24 24.52 Total Income# 6527 6357 7065 11.14 8.24
Slide 24: Fee Based Income
FEE BASED INCOME ₹ in Cr Quarter Ended Growth % Particulars Sep'21 Jun'22 Sep'22 (Q-o-Q) (Y-o-Y) Fee Based Income (I + ii + iii) 349 406 454 11.82 30.09 Commission Exchange & Brokerage (i)# 80 85 113 32.94 41.25 - Commission on LC/BG/DDs 44 50 72 44.00 63.64 - Govt. Business 18 18 21 16.67 16.67 - B
Slide 25: Total Expenses
TOTAL EXPENSES Quarterly ₹ in Cr Quarter Ended Growth % Particulars Sep'21 Jun'22 Sep'22 (Q-o-Q) (Y-o-Y) Interest Expenses 3288 3384 3408 0.71 3.65 Interest Paid on Deposits 3180 3273 3301 0.86 3.81 Other Interests 108 111 107 -3.60 -0.93 Operating Expenses# 1794 1752 1909 8.96 6.41 Staff Cost# 1110
Slide 26: Provisions
PROVISIONS ₹ in Cr Quarter Ended Growth % Particulars Sep'21 Jun'22 Sep'22 (Q-o-Q) (Y-o-Y) NPAs# 1114 824 1070 29.85 -3.95 Standard Assets -394 -38 162 526.32 141.12 Depreciation/Provisions on 290 260 -95 -136.54 -132.76 Investment Including SRs Income Tax 103 73 305 317.81 196.12 Others -17 10 9 -1
Slide 27: NPA Provision Break-up
NPA PROVISION BREAK-UP ₹ in Cr Particulars Jun'22 Sep’22 NPA Provision increase due to: Ageing provision/change in value of security 1295 1916 Slippages/increase in balance/fraud 396 123 Sub Total 1691 2039 Less : Provision write back due to cash recoveries/upgradation/ 867 969 restructuring Net Add
Slide 28: Asset Quality & Capital Adequacy
ASSET QUALITY & CAPITAL ADEQUACY
Slide 29: Restructured Book
RESTRUCTURED BOOK Standard Restructured Book ₹ in Cr Segment Sep'21 Dec'21 Mar’22 Jun'22 Sep’22 Corporate 997 575 954 842 891 MSME 1452 732 680 646 650 Agriculture 254 216 203 188 193 Retail 433 406 408 391 379 TOTAL 3136 1929 2245 2067 2113 Standard Restructured - Covid-19 Resolution Framework Segm
Slide 30: Special Mention Accounts
SPECIAL MENTION ACCOUNTS ₹ in Cr Asset Quality – Sep'21 Asset Quality No. of A/Cs Above ₹ 5 Cr No. of A/Cs Up to ₹ 5 Cr No. of A/Cs Sep’21 % of Total Adv. SMA 0 21 623 217655 7573 217676 8196 4.67 SMA 1 16 172 134754 4609 134770 4781 2.72 SMA 2 9 222 120219 3539 120228 3761 2.14 TOTAL 46 1017 472628
Slide 31: Asset Quality Trend
ASSET QUALITY TREND 15.52 14.84 4.51 4.39 3.97 15.16 14.90 3.93 2.95 9.67 SEP'21 DEC'21 MAR'22 JUN'22 SEP'22 SEP'21 DEC'21 MAR'22 JUN'22 SEP'22 GROSS NPA % NET NPA % ₹ in Cr Particulars Sep'21 Dec'21 Mar’22 Jun'22 Sep'22 Gross Advances 175594 182098 189712 194648 197022 Net Advances 155268 161514 16
Slide 32: NPA Movement
NPA MOVEMENT ₹ in Cr Particulars Sep'21 FY 21-22 Jun'22 Sep’22 Sep’22 (HY) Opening Gross NPAs 27892 29277 28156 29002 28156 Add: Slippage of PA to NPAs 2104 4473 2040 777 2333 Increase in Balance of 37 245 46 109 160 Existing NPAs Sub Total 2141 4718 2086 886 2493 Less: - - Upgradation 555 1337 406
Slide 33: Sector-wise NPA Classification
SECTOR-WISE NPA CLASSIFICATION NPA Classification: Sector-Wise ₹ in Cr Sep’22 Advances TOTAL TOTAL NNPA NNPA % Particulars Sep'21 Mar'22 Sep’22 NNPA % (Sep’22) NNPA 2628 6.99 Total NPA 27252 28156 19059 197022 5407 2.95 Retail 2308 2223 1489 57411 652 1.15 4.02 1315 812 Agriculture & Allied 5603 605
Slide 34: Capital Ratios
CAPITAL RATIOS CAPITAL ADEQUACY RATIO* 13.51 13.84 13.56 2.36 1.94 1.98 11.62 11.53 11.48 SEP'21 MAR'22 SEP'22 CET-I Tier-II LEVERAGE RATIO* 4.51 4.42 4.25 SEP'21 MAR'22 SEP'22 * CRAR (BASEL III) and Leverage Ratio are arrived at after considering the NPV of non-interest bearing recapitalization bon
Slide 35: Other Major Ratios
OTHER MAJOR RATIOS PROVISION COVERAGE RATIO 89.20 86.69 86.61 85.77 85.86 SEP'21 DEC'21 MAR'22 JUN'22 SEP'22 NET INTEREST MARGIN (%) SLIPPAGE RATIO 3.76 3.44 3.26 1.47 1.45 2.97 2.88 1.29 0.88 0.54 SEP'21 DEC'21 MAR'22 JUN'22 SEP'22 SEP'21 DEC'21 MAR'22 JUN'22 SEP'22 34
Slide 36: Financial Indicators
FINANCIAL INDICATORS Quarter Ended Particulars Sep'21 Jun'22 Sep'22 Cost of Deposits (%)* 3.84 3.85 3.89 Yield on Advances (%)*# 6.66 6.34 7.37 Yield on Investments (%)# 6.20 6.13 6.14 Cost of Funds (%)* 3.90 3.90 3.93 Yield on Funds (%)* 7.40 7.44 7.71 NIM (%)*# 2.97 2.88 3.44 ROA (%)* 0.29 0.27 0.
Slide 37: Investments
INVESTMENTS
Slide 38: Investment Portfolio
INVESTMENT PORTFOLIO ₹ in Cr Particulars Sep'21 Sep'22 Govt. Securities 104497 99657 Other Approved 0 0 Sep '21 Sep '22 Shares 3017 2846 0.18% 2.20% 2.08% Debentures & Bonds 36232 33898 0.03% 0.18% 0.03% 24.60% 24.28% Subsidiaries & Joint 258 258 Ventures 2.05% 2.04% Others 3246 2903 0.00% Total Inv
Slide 39: Treasury Performance
TREASURY PERFORMANCE INTEREST ON INVESTMENT ₹ in Cr TRADING PROFIT ₹ in Cr 4714 413 Sep'21 Sep'22 Particulars 4272 180 (HY) (HY) Aggregate Investment 147297 139609 Interest on Investment SEP'21 SEP'22 SEP'21 SEP'22 (₹ in Cr) 4714 4272 Yield on Investment % 6.20 6.13 YIELD ON INVESTMENT RETURN ON INV
Slide 40: Treasury Operations
TREASURY OPERATIONS ₹ in Cr TOTAL INVESTMENT BOOK SEP'21 SEP'22 AGGREGATE INVESTMENT 147297.35 139608.85 PORTFOLIO HTM AFS HFT HTM AFS HFT INVESTMENT 97367.36 49846.17 83.82 106040.79 33463.36 104.70 PERCENTAGE 66.10 33.84 0.06 75.96 23.97 0.07 TOTAL SLR 104496.72 99656.80 OF WHICH SLR 68009.50 3640
Slide 41: Digital Journey
DIGITAL JOURNEY
Slide 42: Leveraging Technology
LEVERAGING TECHNOLOGY Lead Generation Digital Adoption in Semi-urban Through Missed Call and Rural Areas Assisted journey for Fintech Partnership for CKCC Renewal Digital Lending Social Media through tablet Presence Index Online Loan Status Digital Services-Bank Tracking for Customers Mitras Dedicat
Slide 43: Digital Transactions & Customer Touch Points (1/2)
DIGITAL TRANSACTIONS & CUSTOMER TOUCH POINTS (1/2) Oct'20 to Sep'21 Oct’21 to Sep'22 UPI Debit Card (POS) 9% 7% 3% 7% 5% IMPS RTGS/NEFT 2% 7% 1% 4% 1% 65% Mobile Banking AEPS-BHIM-AADHAR 1% 6% 75% 1% 6% Internet Banking Others PAYMENT ACCEPTANCE TOUCH POINTS OTHER TOUCH POINTS DIGITAL TOUCH POINTS (
Slide 44: Digital Transactions & Customer Touch Points (2/2)
DIGITAL TRANSACTIONS & CUSTOMER TOUCH POINTS (2/2) IMPS TRANSACTIONS UPI (Remitter + Beneficiary) 1392.45 17605.30 1095.91 10851.18 OCT'20 - SEP'21 OCT'21 - SEP'22 OCT'20 - SEP'21 OCT'21 - SEP'22 MOBILE BANKING INTERNET BANKING 155.87 147.02 120.92 146.11 OCT'20 - SEP'21 OCT'21 - SEP'22 OCT'20 - SEP
Slide 45: Product Offering
PRODUCT OFFERING W WHOLESALE D DIGITAL T TREASURY R RETAIL R RETAIL R RETAIL BANKING BANKING BANKING BANKING BANKING BANKING Commercial Banking Digital Products Product Segments Liability Products Assets Products Other Products/ Services Working Capital Debit Cards Foreign Exchange Saving Accounts H
Slide 46: Financial Inclusion
FINANCIAL INCLUSION S No. of Accounts (in Lakhs) Balance Outstanding (in Cr) o 153.77 5061.98 5003.00 c 4840.22 4374.66 4183.47 P 149.37 i 146.49 146.18 a M 143.67 l J S D e Y SEP'21 DEC'21 MAR'22 JUN'22 SEP'22 SEP'21 DEC'21 MAR'22 JUN'22 SEP'22 c u r i t PMJJBY PMSBY APY y 55.75 55.57 19.24 17.21 1
Slide 47: Shareholding Pattern
SHAREHOLDING PATTERN As on 30th Sep’22 Public NRI 3.66% Banks & FI 0.06% Insurance Cos. 0.00% Share Capital : ₹ 8680.94 Cr 2.69% FIIs Other Body Corp 0.10% Shares of Central Bank of India 0.24% are listed at BSE and NSE Others 0.17% Equity Shares of Central Bank of India were part of NSE 500,
Slide 48: Pan India Branch Network
PAN INDIA BRANCH NETWORK 1 Ladakh 1 1 As on 30th Sep'22 2 2 Jammu and Kashmir 16 3 Himachal Pradesh 55 Total Branches 4517 4 Chandigarh 12 Rural 1602 5 Punjab 143 3 Semi Urban 1330 5 4 6 Uttarakhand 41 Haryana 137 Urban 778 6 7 7 8 8 National Capital Territory of Delhi 97 Metro 807 15 9 Rajasthan 16
Slide 49: Central Bank of India - Group
CENTRAL BANK OF INDIA - GROUP Subsidiaries ₹ in Cr Central Bank of India Quarter Ended Particulars Shareholding Sep’22 Sep’21 Cent Bank Home Finance Ltd. • Engaged into Housing Finance Activity Total Income 68.17 60.10 • Presence in 9 States through 19 Branches Net Profit/(Loss) 16.64 6.69 • Advance
Slide 50: Central Bank of India - Group Position
CENTRAL BANK OF INDIA - GROUP Group Position ₹ in Cr Particulars As on 30th Sep'22 As on 30th Sep'21 CAPITAL & LIABILITIES Capital 8681 8681 Reserves and Surplus 19479 18267 Minorities Interest 64 53 Share Application Money Pending Allotment 0 0 Deposits 343585 336884 Borrowings 7829 6211 Other Liab
Slide 51: Central Bank of India - Group Performance
CENTRAL BANK OF INDIA - GROUP Group Performance ₹ in Cr Quarter Ended Particulars SEP’22 SEP’21 INCOME Interest and Dividend Earned 11739 11012 Other Income 1741 1863 Total 13480 12875 EXPENDITURE Interest Expended 6818 6656 Operating Expenses 3672 3546 Provisions and Contingencies 2422 2212 Total 1
Slide 52: Guidance for Mar'23
GUIDANCE FOR MAR’23 PARAMETERS GUIDANCE Deposit Growth 8-10% Advances Growth 13 to 15% Business Growth 8-10% RAM: Corporate Credit Ratio 65:35 (+/-5%) NIM More than 3% CASA More than 50% Gross NPA Below 9% Net NPA Below 2.75% PCR 88-90% Slippage Ratio 2.25-2.50% Credit Cost (Annualized) 2.00-2.25% R
Slide 53: Awards and Recognition
AWARDS AND RECOGNITION SECOND RUNNER-UP IN THE BEST IMPROVEMENT CATEGORY 58% IMPROVEMENT OVER BASELINE 52
Slide 54: Thank You
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Central Bank of India — Q2 FY2022-23 Earnings Presentation on 6ix