City Union Bank Limited · NSE:CUB

City Union Bank — Investor Presentation (September 2013)

41 slides from City Union Bank's investor presentation, September 2013

  1. Slide 1: Investor Presentation – September 2013

    INVESTOR PRESENTATION – SEPTEMBER 2013 1

  2. Slide 2: Disclaimer

    Disclaimer No representation or warranty, express or implied is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of such information or opinions contained herein. The information contained in this presentation is only current as of its date. Certain

  3. Slide 3: Table of contents

    Table of contents 1. Overview … 04 – 07 2. Performance Highlights – September 2013 … 08 - 09 3. Branch Network … 10 - 11 4. Ownership Pattern … 12 - 14 5. Management … 15 – 18 6. Financial Performance & Business Profile … 19 - 40 3

  4. Slide 4: 1. Overview

    1. Overview 4

  5. Slide 5: Showcasing steady performance on an ongoing basis

    Showcasing steady performance on an ongoing basis … The oldest Private Sector Bank in the Country having 100+ years of operations – Continuous Track Record Profitability – Dividend pay out in all 100 + years of existence Growth Business growing at CAGR 26% - Net Profit CAGR at 25% in the last 5 Year

  6. Slide 6: A specialized banking model aligned to target segment – SME / MSME

    City Union Bank – A specilized banking model aligned to Target Segment – SME / MSME  SME/MSME specialized business model focusing on large untapped SME/ MSME  Segment consistently delivering higher yields focus  Superior client servicing leading to client retention and low business acquisition co

  7. Slide 7: Key milestones

    Key milestones 2009 2003 Rights issue @ 1 : 4 – to reward Obtained licenses to act as a the existing shareholders agent for procuring life insurance & general insurance business 1998 Initial Public Offering (IPO); Listing Bank’s shares on the 2012 BSE, NSE & MSE Rights Issue @ 1 : 4 – to reward the

  8. Slide 8: 2. Performance Highlights – Half yearly results

    2. Performance Highlights – Half yearly results 8

  9. Slide 9: H1 FY 2013-14 Performance – A snapshot

    H1 FY 2013-14 Performance – A snapshot  Deposits increased by 19% from Rs.176,886 Mn to Rs.210,562 Mn Y-o-Y  Advances registered a growth of 18% from Rs.134,368 Mn to Rs.158,485 Mn Y-o-Y  Gross Profit registered a growth of 25% from Rs.2,425 Mn to Rs.3,023 Mn Y-o-Y  Net Profit increased from Rs.

  10. Slide 10: 3. Branch Network

    CUB 3. Branch Network

  11. Slide 11: Strong presence in the South

    Strong presence in the South  A network of 397 branches of which 348 branches are located in South India and 262 in Tamil Nadu alone State No. of % of Branches Business Tamilnadu 262 71 Andhra Pradesh 50 8 3 1 Karnataka 24 6 1 Maharashtra 17 7 6 Kerala 12 2 3 4 Gujarat 6 2 Others 26 4 1 Total 397 6

  12. Slide 12: 4. Ownership Pattern

    CUB 4. Ownership Pattern

  13. Slide 13: A well diversified investor base

    A well diversified investor base Ownership profile Domestic Institutions, Corp. Bodies, 7.71% 12.21% FII's, 28.99% Others, 0.15% Public, 50.94% Well diversified ownership exceeding 90000 Long term investors ensuring stability and support to management Higher Participation from FII’s 13

  14. Slide 14: A well diversified investor base – major institutional shareholders

    A well diversified investor base Major Institutional Shareholders Shareholders % of holding L & T Unnati Finance Ltd. 4.59 GKFF Ventures 4.36 FMO, Nederlandse 4.35 LIC of India 4.02 Regal Investment and Trading Co. Pvt Ltd 2.03 Wasatch Core Growth Fund 2.02 Acacia Partners 2.00 Emblem 1.75 14

  15. Slide 15: 5. Management

    CUB 5. Management

  16. Slide 16: Transparent 'Corporate Governance' practices

    Transparent ‘Corporate Governance’ practices Board consists of 8 Independent Directors and 2 Non-Independent Directors Various sub-committees of Board functions to oversee the operations of the Bank Code of conduct for directors and senior management put in place Disclosure norms strictly adhered to

  17. Slide 17: A well experienced and strong Board (1/2)

    A well experienced and strong Board (1/2) Name Profile He holds a Master degree in Mathematics, CAIIB and PGDFM and has 40 years of experience in Mr. S. Balasubramanian, the banking industry. He joined City Union Bank in 1971 as a probationary officer and was Chairman associated with the Bank in var

  18. Slide 18: A well experienced and strong Board (2/2)

    A well experienced and strong Board (2/2) Name Profile Mr. T.K. Ramkumar, He is a graduate in Commerce and Law specialized in Banking law, Company law and Director Intellectual Property Rights. He is one of the leading Lawyers in Chennai. Justice (Retd.) He is a former Judge of High Court of Madras

  19. Slide 19: 6. Financial Performance and Business Profile

    6. Financial Performance and Business Profile 19

  20. Slide 20: H1 FY 2013-14 Performance – A snapshot

    H1 FY 2013-14 Performance – A snapshot HIGHLIGHTS FOR THE HALF YEAR ENDED 30th SEPTEMBER 2013 Deposits Advances  Deposits increased by 19% to Rs.210,562 Mn from Rs.176,886 Mn 19% 18%  Advances increased by 18% from Rs.134,368 Mn to Rs.158,485 Mn  Total Business grew by 19% from Rs.311,254 Mn to R

  21. Slide 21: FY 2012-13 Performance – A snapshot

    FY 2012-13 Performance – A snapshot HIGHLIGHTS FOR THE YEAR ENDED 31st MARCH 2013 Deposits Advances  Deposits increased by 24% to Rs.203,048 Mn from Rs.163,408 Mn 24% 26%  Advances increased by 26% from Rs.122,217 Mn to Rs.153,429 Mn  Total Business grew by 25% from Rs.285,625 Mn to Rs.356,477 Mn

  22. Slide 22: H1 FY 13-14 Vs H1 FY 12-13 – Performance – A snapshot

    H1 FY 13-14 Vs H1 FY 12-13 – Performance – A snapshot Financial Performance (in INR Mn) Particulars H1 FY H1 FY % FY Growth 2013-14 2012-13 Growth 2012-13 Deposits 210562 176886 33676 19% 203048 Advances 158485 134368 24117 18% 153429 Total Business 369047 311254 57793 19% 356477 Demand Deposits 135

  23. Slide 23: H1 FY 13-14 Vs H1 FY 12-13 – Performance – A snapshot

    H1 FY 13-14 Vs H1 FY 12-13 – Performance – A snapshot Financial Performance (in INR Mn) Particulars H1 FY H1 FY Growth % Growth FY 2013-14 2012-13 2012-13 Net Interest Income 3772 2873 899 31% 6240 Other Income 1456 1272 184 14% 2736 Operating Expenses 2205 1720 485 28% 3742 Gross Profit 3023 2425 5

  24. Slide 24: Q2 FY 13-14 Vs Q2 FY 12-13 – Performance – A snapshot

    Q2 FY 13-14 Vs Q2 FY 12-13 – Performance – A snapshot Financial Performance (in INR Mn) Particulars Q2 FY Q2 FY Growth % Growth FY 2013-14 2012-13 2012-13 Net Interest Income 1898 1493 405 27% 6240 Other Income 618 645 -27 -4% 2736 Operating Expenses 1108 855 253 30% 3742 Gross Profit 1408 1283 125

  25. Slide 25: H1 FY 13-14 Vs H1 FY 12-13 – Income and Expenses – Breakup

    H1 FY 13-14 Vs H1 FY 12-13 – Income and Expenses – Breakup (in INR Mn) Interest Income Breakup Interest Expenses Breakup H1 FY H1 FY H1 FY H1 FY Particulars Growth Particulars Growth 13-14 12-13 13-14 12-13 Interest on Loans 10398 8539 22% Int Exp on Deposits 8614 7195 20% Interest on Investments 21

  26. Slide 26: Q2 FY 13-14 Vs Q2 FY 12-13 – Income and Expenses – Breakup

    Q2 FY 13-14 Vs Q2 FY 12-13 – Income and Expenses – Breakup (in INR Mn) Interest Income Breakup Interest Expenses Breakup Q2 FY Q2 FY Q2 FY Q2 FY Particulars Growth Particulars Growth 13-14 12-13 13-14 12-13 Interest on Loans 5221 4386 19% Int Exp on Deposits 4366 3683 19% Interest on Investments 111

  27. Slide 27: Key Business Indicators

    Key Business Indicators Key indicators Particulars H1 H1 Q2 Q2 FY FY 13-14 FY 12-13 FY 13-14 FY 12-13 2013 Cost of Deposits 8.44% 8.51% 8.44% 8.49% 8.44% Yield on Advances 13.56% 13.53% 13.64% 13.58% 13.49% Yield on Investments 7.30% 7.16% 7.25% 7.21% 7.19% Net Interest Margin 3.53% 3.26% 3.51% 3.33

  28. Slide 28: Strong Deposits and Advances growth

    Strong Deposits and Advances growth Deposits Advances 6% 27% R2 210562 R 158485 CAG CAG 203048 153429 163408 122217 129143 93290 102846 68967 31-Mar-10 31-Mar-11 31-Mar-12 31-Mar-13 30-Sep-13 31-Mar-10 31-Mar-11 31-Mar-12 31-Mar-13 30-Sep-13 Business CASA % 18% R 26 369047 CAGR 356476 CA G 34046 353

  29. Slide 29: Income Growth over the years

    Income Growth over the years … Net Interest Income Growth Other Income Growth 6240 2736 4998 2071 4200 3772 1574 1435 1456 2781 31-Mar-10 31-Mar-11 31-Mar-12 31-Mar-13 30-Sep-13 31-Mar-10 31-Mar-11 31-Mar-12 31-Mar-13 30-Sep-13 CEB Growth Net Profit Growth 1727 3220 2803 1289 2151 992 976 1746 1528

  30. Slide 30: Cost of deposits & Yield on advances

    Cost of deposits & Yield on advances Cost of Deposits and Yield on Advances 13.56 13.49 13.56 13.46 12.82 13.04 12.47 11.36 11.32 11.00 10.85 8.44 7.98 7.73 8.11 8.44 6.96 7.23 6.94 6.08 5.95 5.75 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Sep-13 Spread between cost of deposits and yield on a

  31. Slide 31: Key Business Ratios - Yearwise

    Key Business Ratios - Yearwise Net Interest Margin Return on Assets 3.40% 3.49% 3.53% 3.64% 3.15% 3.35% 1.71% 1.67% 1.58% 1.50% 1.52% 1.48% 31-Mar-09 31-Mar-10 31-Mar-11 31-Mar-12 31-Mar-13 30-Sep-13 31-Mar-09 31-Mar-10 31-Mar-11 31-Mar-12 31-Mar-13 30-Sep-13 Cost of Funds Yield on Funds 10.34% 10.6

  32. Slide 32: Efficiency

    Efficiency (Rs in Mn) Business per Employee Profit per Employee 93.8 0.84 0.85 0.85 89.6 0.80 84.7 78.1 65.1 0.6 31-Mar-10 31-Mar-11 31-Mar-12 31-Mar-13 30-Sep-13 31-Mar-10 31-Mar-11 31-Mar-12 31-Mar-13 30-Sep-13 32

  33. Slide 33: Loan Book – Products Composition

    Loan Book – Products Composition Amount  Working capital loans yielding higher interest % to Total Loan Book Products Composition constitute 66% of advances (in INR Advances Mn)  Re-pricing possible at short intervals thus Cash Credit & Demand Loans 104921 66% reducing interest rate risk Term Loan

  34. Slide 34: Loan book – Composition

    Loan book – Composition Sectoral Deployment as on 30th September 2013 Secured & Unsecured Advances Amount Amount % to Total % to Total Particulars (in INR Particulars (INR Advances Advances Mn) Mn) Agriculture (includes AJL – 20649 Mn) 24454 15% Secured Loans 155697 98% MSME 43399 27% Unsecured Loan

  35. Slide 35: Loan Book – Sectoral Deployment

    Loan Book – Sectoral Deployment Sectoral Deployment chart NBFC Others INFRA 2% 3% 1% LAD Personal Loan 3% 2% Housing 5% JL Non Agri AGRI 8% 15% CRE 5% MSME Whlsale Trade 27% 10% Retail Trade 7% Large Ind 12% 35

  36. Slide 36: Loan Book – Advances to Major Industries

    Loan Book – Advances to Major Industries Advances to Major Industries as on 30th September 2013 Amount % to Total Industry Name (in INR Mn) Advances Textiles a) Cotton 8190 5% b) Other Textiles 3115 2% Metals a) Iron & Steel 9151 6% b) Other Metals 2024 1% Paper & Paper Products 3567 2% Food Process

  37. Slide 37: Asset Quality

    Asset Quality (Rs in Mn) Gross NPA Qtm & Gross NPA % Net NPA Qtm & Net NPA % 1311 2632 964 1731 0.83% 1235 1.66% 1125 540 935 484 397 1.36% 0.63% 0.58% 1.21% 0.52% 1.13% ` 0.44% 1.01% 31-Mar-10 31-Mar-11 31-Mar-12 31-Mar-13 30-Sep-13 31-Mar-10 31-Mar-11 31-Mar-12 31-Mar-13 30-Sep-13 One large borrow

  38. Slide 38: Asset Quality Position – Movement over the years

    Asset Quality Position – Movement over the years FY FY FY FY H1 FY (Rs in Mn) Mar-10 Mar-11 Mar-12 Mar-13 13-14 NPA Opening balance 1021 882 1125 1235 1731 Additions A 1075 1207 1444 2234 1879 Recovery made 531 376 649 486 417 Upgradations 223 114 165 232 79 Net Addition B 321 717 630 1516 1383 Writ

  39. Slide 39: Restructured Accounts

    Restructured Accounts Balance outstanding as on 30.09.2013 in respect of Restructured borrowers: Type Restructuring No. of Amount Borrowers (in INR Mn) Under CDR Mechanism 2 326 Under SME Debt Restructuring Mechanism 12 456 Under Other Debt Restructuring Mechanism 5 1391 Total 19 2173  During the S

  40. Slide 40: Investments – At a Glance

    Investments – At a Glance Investments Breakup and Categorywise (in INR Mn) Particulars SEP 2013 SEP 2012 Sovereign Bonds 52965 39899 Corporate Bonds, RIDF, etc. 6593 7050 Equity Shares & Equity oriented MFs 301 381 Total Investments 59859 47330 Yield on Investments 7.30% 7.16% Investments Breakup: -

  41. Slide 41: Thank You

    Thank You 41

City Union Bank — Investor Presentation (September 2013) on 6ix