Indian Overseas Bank · NSE:IOB

Indian Overseas Bank — Q4 FY2018-19 Earnings Presentation

41 slides from Indian Overseas Bank's earnings presentation, May 9, 2019

  1. Slide 1: Performance Analysis Q4/FY 2018-19

    इण्डियन ओवरसीज़ बैंक Indian Overseas Bank PERFORMANCE ANALYSIS Q4/FY 2018-19

  2. Slide 2: Our Heritage

    OUR HERITAGE  Indian Overseas Bank (IOB) was founded on 10th February 1937 by Shri.M.Ct.M. Chidambaram Chettyar.  Objective was to specialize in foreign exchange business and take Bank across the globe.  IOB started business simultaneously – at Karaikudi, Chennai and Rangoon in Burma (presently M

  3. Slide 3: 82 years of Glorious History

    ?J¢W GS 82 years of Glorious History ! ~— Good Peopleto Grow with Opening of 1* Bank Branch 1930's 1950's opening of branches in Kuala Lumpur, Singapore, Colombo, Hongkong Bank establishes its Migrated to Finacle own training centre CASA Ratio crossed 367% Operating Profit at Rs.3650 cr (YoY growth

  4. Slide 4: Key Strengths - Qualitative

    KEY STRENGTHS - QUALITATIVE Customer Touch Highest Operating Points: 3280 Profit at Rs. 5,034 82 years of Banking Domestic Branches, crores reflects Expertise 5 Overseas improved efficiency Branches, 3450 in operations ATMs, 2705 BCs 67% RAM share to Domestic Advances Declining Cost to (Retail 21.64

  5. Slide 5: Progressive Turnaround Metrics

    PROGRESSIVE TURNAROUND METRICS CASA/RTD/Bulk/Total Deposits CASA% & Cost of Deposits 300000 120000 40.00 8 216832 222534 246049 224514 211343 38.00 250000 100000 7.5 103743 105284 36.00 7.62 38.30 96029 100514 89197 36.75 7 200000 80000 34.00 7.11 36.09 79678 85227 6.5 76269 32.00 150000 64486 60000

  6. Slide 6: Progressive Turnaround Metrics

    PROGRESSIVE TURNAROUND METRICS Total Income/Non Interest Income/% Share Operating Profit/Total Income/Total Expense of Non Interest Income 5500 30000 19.26 26077 26046 30000 25.00 5034 26077 26046 23091 23091 5000 21662 21838 25000 25000 21662 21838 20.00 20000 4500 22755 23160 20000 9.71 15.00 1500

  7. Slide 7: Top Line Movement – Mar-19

    TOP LINE MOVEMENT– MAR-19 Y-o-Y Growth Q-o-Q Growth Mar-19 over Mar 18 Sequential Savings Bank Rs.70,652 Crs 5.86% 3.32% Current Account Rs.14,575 Crs 12.68% 6.41% CASA Deposits Rs.85,227 Crs 6.96% 3.83% Term Deposits Rs.1,37,307 Crs 0.11% -0.67% Deposits Rs.2,22,534 Crs 2.63% 1.01% Gross Advances R

  8. Slide 8: Headline Numbers – FY 2018-19

    HEADLINE NUMBERS – FY 2018-19 Y-o-Y Growth Mar-19 over Mar 18 Interest Income Rs.17,631 Crs -1.58% Non Interest Rs.4,206 Crs 12.28% Income Interest Rs.12,352 Crs -0.77% Expenditure Operating Rs.4,452 Crs -20.29% Expenses Operating Profit Rs.5,034 Crs 38.71% Net Interest Rs.5,279 Crs -3.45% Income Pa

  9. Slide 9: Headline Numbers – Q4 2018-19

    HEADLINE NUMBERS – Q4 2018-19 Y-o-Y Growth Q-o-Q Growth Mar-19 over Mar 18 Sequential Interest Income Rs.4,556 Crs -5.61% 0.31% Non Interest Rs.917 Crs -7.04% -19.96% Income Interest Rs.3,077 Crs -0.55% -2.57% Expenditure Operating Rs.1,265 Crs -20.48% 18.91% Expenses Operating Profit Rs.1,132 Crs 0

  10. Slide 10: Highlights – Quantitative – Mar 19

    HIGHLIGHTS – QUANTITATIVE – MAR 19 Maintains Healthy CASA of Non Interest 38.30% with a Y-o-Y Income for FY growth of 6.96% RAM portfolio grew 2018-19 by 7.08% (Y-o-Y) increased by 12.28% (Y-o-Y) Cost to Net Interest Income Ratio Income for Q4 stood at 2018-19 grew by 46.93% for FY 6.89% on 2018-19

  11. Slide 11: Highlights

    HIGHLIGHTS  Maintains healthy Global CASA Ratio of 38.30% and Domestic CASA Ratio of 38.72% as at Mar 2019.  Global Deposits recorded a growth of 2.63% on Y-o-Y basis and ended at Rs. 2,22,534 crores.  Global Advances ended at Rs. 1,51,996 crores with improved RAM concentration of Rs. 98,105 cror

  12. Slide 12: Highlights

    HIGHLIGHTS  Other Income grew by 12.28% for FY 2018-19.  Operating Profit for FY 2018-19 stood at Rs. 5,034 crores with a growth rate of 38.71% (Y-o-Y).  Net Loss stood at Rs. 3,738 crores for FY 2018-19 as against s loss of Rs.6299 crores for FY 2017-18 (Reduction of 41%).  Cost of Deposits dip

  13. Slide 13: Customer Touch Points

    CUSTOMER TOUCH POINTS 4000 3500 3000 Year Branches ATM IOB Mitra 2500 Mar-15 3381 3571 2841 2000 Branches Mar-16 3397 3793 2894 ATM Mar-17 3373 3679 2738 1500 BC Mar-18 3332 3552 2663 1000 Mar-19 3280 3450 2705 500 0 Mar-15' Mar-16 Mar-17 Mar-18 Mar-19 BC: IOB Mitra CR: Cash Recyclers Branch Network

  14. Slide 14: Global Footprints – Foreign Branches

    GLOBAL FOOTPRINTS – FOREIGN BRANCHES Representative Remittance Branches Office JV Subsidiary Centres •Singapore •Dubai •Malaysia •Singapore – •Hong Kong Main Serangoon Road •Colombo •Bangkok •Sukhumvit, Bangkok Joint Venture in Malaysia: Joint Venture with Bank of Baroda (40%) and Andhra Bank (25%)

  15. Slide 15: Business Performance - Global

    BUSINESS PERFORMANCE - GLOBAL Rs in Crores Particulars Mar-17 Mar-18 Dec-18 Mar-19 YoY(%)QoQ(%) CASA Deposits 76269 79678 82081 85227 6.96 3.83 Total Deposits 211343 216832 220311 222534 2.63 1.01 Advances 156776 150999 150590 151996 0.66 0.93 Business Mix 368118 367831 370901 374530 1.82 0.98 CASA%

  16. Slide 16: Deposit Composition

    DEPOSIT COMPOSITION Rs in Crores Particulars Mar-17 Mar-18 Dec-18 Mar-19 YoY(%) QoQ(%) Savings 63232 66742 68385 70652 5.86 3.32 Current 13037 12936 13697 14575 12.68 6.41 CASA Deposits 76269 79678 82081 85227 6.96 3.83 Term Deposits 135074 137154 138230 137307 0.11 -0.67 Total Deposits 211343 21683

  17. Slide 17: Deposits & Cost

    DEPOSITS & COST Rs in Crores Parameters Mar-15 Mar-16 Mar-17 Mar-18 Dec-18 Mar-19 Savings Deposits 47101 52404 63232 66742 68385 70652 Current Deposits 14640 12082 13037 12936 13697 14575 Bulk Deposits 89837 58917 29195 27906 30594 28285 Retail Term Deposits 89197 96029 100514 103743 103460 105284 O

  18. Slide 18: Risk Spread - Assets

    RISK SPREAD - ASSETS Rs in Crores Details Mar-15 Mar-16 Mar-17 Mar-18 Dec-18 Mar-19 Retail 18033 22653 23887 28183 28693 31588 Agri 29236 30237 29348 30820 32151 33353 MSME 32251 31804 30564 32615 33738 33164 Others 83317 70734 58852 46898 49147 47895 Overseas 16204 17299 14125 12483 6861 5996 Globa

  19. Slide 19: RAM – The Growth Driver

    RAM – THE GROWTH DRIVER Rs in Crores 40000 35000 32615 33353 33164 32251 31804 31588 30237 30564 30820 29236 29348 30000 28183 25000 23887 22653 20000 18033 15000 10000 5000 0 Mar-15' Mar-16' Mar-17 Mar-18 Mar-19 Retail Agri MSME Particulars Mar-15 Mar-16 Mar-17 Mar-18 Dec-18 Mar-19 Retail 18033 226

  20. Slide 20: Retail Performance

    RETAIL PERFORMANCE Rs in Crores Share of Retail on Domestic Advances 180000 162837 25.00 155428 160000 142651 146001 138516 140000 20.00 21.64 120000 20.35 16.75 15.00 100000 80000 14.57 10.00 60000 11.07 40000 28182 31588 18033 22653 23887 5.00 20000 0 0.00 Mar-15' Mar-16 Mar-17 Mar-18 Mar-19 Domes

  21. Slide 21: MSME Performance

    MSME PERFORMANCE. Rs in Crores Share of MSME on Domestic Advances Year Gross DomesticMSME Advance % Share 23.55 180000 24.00 160000 22.71 Mar'15 162837 32251 19.81% 21.43 23.00 140000 20.46 22.00 120000 Mar'16 155428 31804* 20.46% 100000 19.81 21.00 80000 20.00 Mar'17 142651 30564* 21.43% 60000 19.0

  22. Slide 22: Priority Sector Advances - Overview

    PRIORITY SECTOR ADVANCES - OVERVIEW Rs. In Crore 78000 60.00 51.33 Priority sector % of 76000 74000 47.47 50.00 Financial Year Achievement achievement 40.29 40.33 75393 72000 70040 40.00 2015-16 67615 40.29% 70000 67615 2016-17 68000 30.00 66000 (Avg 4 qtrs) 63984 40.33% 63984 64000 20.00 2017-18 62

  23. Slide 23: Agriculture Advance Performance

    AGRICULTURE ADVANCE PERFORMANCE Rs. In Crs Position of Agricultural Advances Y-o-Y Growth 34000 33353 3000 8.22% 10.00% 33000 2500 8.00% 32000 2000 4.69% 6.00% 30820 31000 1500 3.42% 30236 2533 4.00% 30000 29438 1000 1382 2.00% 29000 500 1000 -2.64% 0.00% 28000 0 2015-16 2016-17 2017-18 2018-19 -2.0

  24. Slide 24: Agri Advances – Priority Sector

    AGRI ADVANCES – PRIORITY SECTOR Rs. In Crore 32000 21.50% 31048 21.00% 31000 30205 30236 21.14% 20.50% 29851 30000 20.00% 28865 20.23% 29000 28585 19.50% 19.00% 28000 18.50% 27000 26561 26438 18.00% 18.02% 18.19% 17.50% 26000 17.00% 25000 16.50% 24000 16.00% 2015-16 2016-17 (Avg) 2017-18 (Avg) 2018-

  25. Slide 25: Financial Inclusion

    FINANCIAL INCLUSION PMJDY Accounts - Nos PMJDY Account Balance – Rs in 4900000 4849392 crores 4800000 1200 1117 4700000 1000 4600000 818 4500000 800 757 4387956 4400000 4261330 600 4300000 4200000 400 4100000 200 4000000 3900000 0 Mar-17' Mar-18 Mar-19 Mar-17' Mar-18 Mar-19 PMJDY - Zero Balance Acco

  26. Slide 26: Income & Expenses

    INCOME & EXPENSES Rs in Crores Q4 Q3 Q4 YoY QoQ FY FY Particulars 17-18 18-19 18-19 (%) (%) 2017-18 2018-19 YoY(%) Interest Income 4828 4542 4556 -5.61 0.31 17915 17631 -1.58 Non Interest Income 987 1146 917 -7.04 -19.96 3746 4206 12.28 Total Income 5814 5689 5474 -5.86 -3.77 21662 21838 0.81 Intere

  27. Slide 27: Profitability

    PROFITABILITY Rs in Crores Q4 Q3 Q4 YoY QoQ FY FY Particulars 17-18 18-19 18-19 (%) (%) 2017-18 2018-19 YoY(%) Operating Profit 1129 1466 1132 0.21 -22.82 3629 5034 38.71 Provisions 4736 1812 3117 -34.19 71.99 9929 8772 -11.65 of which NPA Provisions 6738 1948 3961 -41.22 103.27 11935 9881 -17.21 Ot

  28. Slide 28: Other Income

    OTHER INCOME Rs in Crores Q4 17- Q3 Q4 18- YoY QoQ FY FY YoY Particulars 18 18-19 19 (%) (%) 2017-18 2018-19 (%) Exchange & Commission 324 230 281 -13.09 22.19 1022 977 -4.43 Proft on Sale of 455 732 61.03 Investments 40 540 110 174.56 -79.63 Profit on Exchange 151 127 144 -4.89 12.91 590 525 -11.07

  29. Slide 29: Performance Ratios

    PERFORMANCE RATIOS Cost of Deposits (%) Yield on Advances (%) 5.46 5.44 7.40 5.44 5.43 7.31 7.30 5.42 5.40 5.40 5.39 7.20 7.12 7.14 7.13 5.38 5.36 7.10 5.34 5.32 7.00 6.95 5.32 5.30 6.90 5.28 6.80 5.26 5.24 6.70 Q4 17-18 Q1 18-19 Q2 18-19 Q3 18-19 Q4 18-19 Q4 17-18 Q1 18-19 Q2 18-19 Q3 18-19 Q4 18-1

  30. Slide 30: Movement of RWA & CRAR

    MOVEMENT OF RWA & CRAR Rs in Crores Particulars Mar-18 June-18 Sep-18 Dec-18 Mar-19 Market Risk RWA 15189.38 15189.38 14859.25 12537.89 11944.14 Operational Risk RWA 14758.84 14758.84 15778.67 15778.67 15778.67 Credit Risk RWA 104960.48 104960.48 96903.45 96769.59 94862.36 Total RWA (A) 134908.69 13

  31. Slide 31: NPA Management

    NPA MANAGEMENT Rs in Crores FY Q1 Q2 Q3 Q4 FY 2017- 2018- 2018- 2018- 2018- 2018- Details 18 19 19 19 19 19 i) Opening Gross NPAs 35098 38180 38146 37110 35787 38180 a. Cash Recoveries 1105 565 1723 750 635 3673 b. Upgradation 2330 467 342 197 446 1452 c. Write-Offs 7018 1262 1425 2294 2701 7683 d.

  32. Slide 32: Investments

    INVESTMENTS Rs in Crores Global Investments 82000 79740 79626 80000 78000 76000 74000 72248 72000 70263 70000 69209 68000 66000 64000 62000 Mar-15' Mar-16 Mar-17 Mar-18 Mar-19 Mar- Mar- Mar- Mar- Parameters 16 17 18 19 Domestic Investments 76155 68627 66619 65380 SLR 64028 58009 53019 47858 Non SLR

  33. Slide 33: 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 % 12.81% Name of Entity Shareholding %Investment 6.00% 18.06% Ind

  34. Slide 34: Valuations

    VALUATIONS Particulars (Rs. Crs) Q4 18-19 Q4 17-18 FY 18-19 Earning per Share (`) (3.06) (12.25) (6.83) Book Value per Share (`) 6.43 11.13 6.43 Adjusted Book Value per Share (`) [(Net Worth - - ve - ve - ve Net NPA)/No of Shares] Price/Book Value (`) 2.25 1.57 2.25 Price/Adjusted Book Value (`) -ve

  35. Slide 35: Awards & Accolades

    AWARDS & ACCOLADES CVC adjudged our “ Vani” Bank’s Quarterly Ease Banking Reform Bank for Vigilance Hindi Magazine - Bronze Awards 2019 – Winner Innovation Awards Prize in the “Indian – Deepening Financial under Vigilance Language Publication” Inclusion and Excellence Awards by (ABCI) for 2018 Digit

  36. Slide 36: Digital Initiatives

    © UP] Merchant QR ¢RuPay Enabled PG *lOB Pay «BBPS «Green PIN *|OB Rewardz Prepaid Card ATM Value Additions Mobility Initiatives Customer Experience *lOB Nonbsn © lOB mPassbook « Mobile Banking Registration through ATM *|OB Schayak ¢ Customer Feedback «Missed Call Balance Enquiry #SPGRS Online Proce

  37. Slide 37: Digital Initiatives

    DIGITAL INITIATIVES BHIM 1OB UPI Debit/ Prepaid Cards 1OB DIGITAL BANKING PRODUCTS ATM/CR/ Payment Gateway Internet banking Mobile Banking Page 37

  38. Slide 38: Digital Initiatives

    DIGITAL INITIATIVES Internet & Mobile Banking Registrations (in Debit Card Base (In Lakhs) Lakhs) 180 165 25 160 149 135 19.25 140 20 18.18 120 15.5 14.42 100 15 80 10 60 6.62 40 5 2.69 20 0 0 2016-17 2017-18 2018-19 2016-17 2017-18 2018-19 Internet Banking Mobile Banking 3000 ATM Transactions (In L

  39. Slide 39: Customer Experience Initiatives

    CUSTOMER EXPERIENCE INITIATIVES Customer can call to the specified number for to provide a feedback about our service If you are unhappy with our service please call 8828846220  If you are happy with our service please call 8828846225 Customer can give missed call to 9210622122 to know your acco

  40. Slide 40: 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

  41. Slide 41: Thank You

    © THANK YOU

Indian Overseas Bank — Q4 FY2018-19 Earnings Presentation on 6ix