Indian Bank · NSE:INDIANB
Indian Bank — Q2 FY2022 Earnings Presentation
50 slides from Indian Bank's earnings presentation, Oct 28, 2021
Slide 1: Filing cover letter to stock exchanges
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Slide 2: Performance Analysis Q2 / H1 FY 22
Your own Bank, Always with You Golden years, silver hair, diamond savings… IND SME E vaahan..build a business… Performance Analysis Q2 / H1 FY 22 For secured and happy future … 4 walls or 4 wheels…IBHL and IBVL Festival of Happiness with Indian Bank…..
Slide 3: Contents
Contents 1 Performance Highlights 2 Financials ` 3 Business Snapshot 4 Capital & Risk Management 5 Asset Quality 6 Financial Inclusion 7 Digital Banking 8 Strategies and focus areas 2/49
Slide 4: Performance Highlights Q2 FY 22
Performance Highlights Q2 FY 22 3/49
Slide 5: Performance Highlights Q2 FY 22 (YoY)
Performance Highlights Q2 FY 22 ( YoY) Business Asset Quality Benchmark Ratios Cost of Deposits RAM Deposits `5.5 lakh Cr `2.3 lakh Cr 3.86% Operating 13% Gross NPA 10% 9.56% 71 bps Profit 33 bps ` 3276Cr 11% ROE Yield on 13.31% CASA Retail 743 bps Growth 8% `73376 Cr Advances SB : 8% 14% 6.98% Net
Slide 6: Financials
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Slide 7: Operating Profit and Net Profit
Operating Profit and Net Profit ` in Cr Quarter Ended Half Year Ended Year Sl No Components Ended 30.09.2020 30.09.2021 YoY (%) 30.09.2020 30.09.2021 YoY (%) Mar'21 1 Interest Income 10057 9476 -6 20177 19098 -5 39106 2 Interest Expenses 5913 5391 -9 12159 11020 -9 23440 3 Net Interest Income (1-2)
Slide 8: Income
Income ` in Cr Quarter Ended Half Year Ended Year Sl No Components Ended 30.09.2020 30.09.2021 YoY (% ) 30.09.2020 30.09.2021 YoY (% ) Mar'21 1 Interest Income on Advances and Discount on Bills 7148 6670 -7 14297 13433 -6 27445 2 Interest on investments 2795 2644 -5 5570 5416 -3 11167 3 Sundry inter
Slide 9: Fee Income
Fee Income ` in Cr Quarter Ended Half Year Ended Year Sl No Components Ended 30.09.2020 30.09.2021 YoY (%) 30.09.2020 30.09.2021 YoY (%) Mar'21 1 Transaction fees 221 178 -19 296 339 15 690 2 Loan processing charges 122 158 30 235 256 9 526 3 Commission on Government business 23 24 4 33 34 3 74 4 Co
Slide 10: Expenses
Expenses ` in Cr Quarter Ended Half Year Ended Year Sl No Components Ended 30.09.2020 30.09.2021 YoY (%) 30.09.2020 30.09.2021 YoY (%) Mar'21 1 Interest on deposits 5583 5144 -8 11452 10516 -8 22221 2 Interest on borrowings 294 200 -32 632 414 -35 1049 3 Sundry interest expenses 36 47 31 75 90 21 17
Slide 11: Overhead Expenses
Overhead Expenses ` in Cr Quarter Ended Half Year Ended Year Sl No Components Ended 30.09.2020 30.09.2021 YoY (%) 30.09.2020 30.09.2021 YoY (%) Mar'21 1 Rent, Taxes & Lighting 165 162 -2 284 290 2 603 2 Depreciation 178 152 -15 287 303 6 633 3 Insurance 168 184 10 334 362 8 682 4 Travelling and Halt
Slide 12: Provisions and Net Profit
Provisions and Net Profit ` in Cr Quarter Ended Half Year Ended Year Sl No Components Ended 30.09.2020 30.09.2021 YoY (%) 30.09.2020 30.09.2021 YoY (%) Mar'21 1 Operating Profit * 2942 3276 11 5735 6691 17 10967 2 Total Provisions * 2530 2187 -14 4953 4421 -11 7962 Of which 3 NPA - Advances 1880 221
Slide 13: Performance Ratios
Performance Ratios % annualised Quarter Ended Half Year Ended YE Sl No Parameters 30.09.2020 30.09.2021 30.09.2020 30.09.2021 Mar'21 1 Cost of Deposits 4.57 3.86 4.70 3.96 4.44 2 Cost of Funds 4.58 3.89 4.71 3.99 4.43 3 Cost to Income Ratio * 48.41 45.85 47.59 43.60 48.55 4 Yield on Advances 7.80 6.
Slide 14: Business Snapshot
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Slide 15: Business Snapshot
Business Snapshot ` in Cr Sl No Parameter 30.09.2020 30.09.2021 YoY (%) DOMESTIC DEPOSITS 1 Deposits 501956 551472 9.86 Domestic 493903 542555 9.85 Overseas 8053 8917 10.72 Deposits breakup Current account 29847 Current 26861 30520 13.62 26290 Savings 194697 Savings 180845 194789 7.71 Bank 180758 90
Slide 16: Advances (Domestic)
Advances (Domestic) ` in Cr Retail Corporates 19% Sector 30.09.2020 30.09.2021 YoY (%) 40% Gross Advances-Domestic 356627 374508 5 Retail 64180 73376 14 Agriculture 71345 82857 16 RAMC Agriculture MSME 65176 70268 8 22% Total (RAM) 200701 226501 13 RAM % to Gross Advances 56% 60% -- MSME Corporates
Slide 17: Performance under Priority Sector
Performance under Priority Sector ` in Cr 30.09.2021 Mandatory Achievement (Amt) Achievement Segment Target (Excluding PSLC) (Excluding PSLC) Priority Sector 40.00% 141906 44.32% Agriculture 18.00% 65432 20.44% Small /Marginal Farmers 9.00% 32650 10.20% Weaker Section 11.00% 44349 13.85% Micro under
Slide 18: Sector Deployment – Domestic Advances
Sector Deployment – Domestic Advances ` in Cr % share % share Sector 30.09.2020 to Gross 30.09.2021 to Gross Advances Advances Infrastructure 61701 17 59558 16 Of which Power 19799 6 18413 5 Port and Road Project 9762 3 9122 2 Other infrastructure 32140 8 32023 9 Basic Metal 11875 3 7418 2 Textiles
Slide 19: Standard Domestic Credit Exposure
Standard Domestic Credit Exposure ` in Cr Rated Exposure 30.09.2020 30.09.2021 External Rating Exposure % to Total Exposure % to Total AAA 27558 13% 29702 14% AA 56888 28% 53018 24% A 42232 20% 57689 27% BBB 40867 20% 41215 19% BB and below 38968 19% 35465 16% Total 206513 100% 217089 100% Above Inv
Slide 20: Standard NBFC Advances
Standard NBFC Advances ` in Cr Standard NBFC 30.09.2020 % 30.09.2021 % NBFC - PSUs 4553 11 4561 11 NBFC - HFCs 14507 35 16943 40 NBFC - MFIs 1437 3 1835 4 NBFC - Others 21560 51 19247 45 Total Standard NBFC 42057 100 42586 100 30.09.2021 Composition of Rating wise Distribution of NBFCs (in %) Rating
Slide 21: Investments - Domestic
Investments - Domestic ` in Cr AFS Book (YoY) Details 30.09.2020 30.09.2021 YoY (%) Sep-20 5% SLR Investments 2% 13% Central Government Securities 86841 78407 -10 15% State Government Securities 42608 43815 3 65% Treasury Bills 11934 22610 89 Other Approved Securities 5 4 -20 G sec & T Bill Corporte
Slide 22: Non SLR Investments
Non SLR Investments ` in Cr % YoY Details Sep-20 Sep-21 Share Amount % PSU Bonds 1591 1373 3 -218 -14 Corporate and Other Bonds 9168 10912 27 1744 19 Special Govt.Sec.(Excluding Recap Bonds) 2015 1861 5 -154 -8 CG Recap.Bond 17927 17927 45 0 0 Share of PSU/Corporate/Others 2118 2495 6 377 18 Venture
Slide 23: Capital & Risk Management
Capital & Risk Management 22/49
Slide 24: Capital Adequacy – Risk Management
Capital Adequacy – Risk Management ` in Cr Parameters 30.09.2020 30.09.2021 Capital 40096 47753 Common Equity Tier I (CET 1) 31088 35126 Common Equity Tier I (CET 1) Additional Tier I Tier II Additional Tier I 500 1980 15.88% Tier II 8508 10647 Total Risk Weighted Assets 294005 300675 13.64% 3.54% C
Slide 25: Share Holding
Share Holding 30.09.2021 Resident Individual, 4.92% Mutual Funds, 5.58% Insurance Companies, 3.89% Employees, 1.19% FPI, FII,NRI and Alternative Investment Government of India, Funds, 2.86% 79.86% HUF, FI/Banks, Trusts, Body Corporate and Clearing Members, 1.70% Pattern of Equity Shareholding Shareh
Slide 26: Asset Quality
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Slide 27: Movement of NPA
Movement of NPA Quarter Ended Half Year Ended ` in Cr S No Details 30.09.2020 30.09.2021 30.09.2020 30.09.2021 1 Gross NPA opening balance 39965 37759 41998 38455 Fresh slippages ADDITIONS : Fresh Slippages 249 3952 772 6779 Category Q2 FY 21 Q2 FY 22 To old NPAs / Others 66 149 207 Retail 3 150 2 S
Slide 28: NPA Position – Sector wise
NPA Position – Sector wise ` in Cr 30.09.2020 30.09.2021 S % to % to Sector Gross Gross No respective Outstanding respective NPA NPA portfolio portfolio 1 Retail Credit 2312 3.60 73376 3178 4.33 Of which Home Loan 925 2.34 43138 1279 2.97 Education Loan 826 17.23 4711 1007 21.37 Vehicle Loan 279 7.8
Slide 29: Status of NCLT
Status of NCLT ` in Cr 30.09.2021 Category No.of Accounts Exposure Provision PCR% RBI List I 8 3000 3000 100% RBI List II 11 3505 3505 100% Accounts filed by Bank 27 2019 1936 96% Accounts filed by other Banks 158 13679 13531 99% Total 204 22203 21972 99% Exposure % PCR % 100% 100% RBI List I 99% 14
Slide 30: Transfer of NPAs to NARCL
Transfer of NPAs to NARCL ` in Cr Accounts identified by NARCL Indian Bank No of No of accounts Amount Amount accounts 102 198334 34 5280.85 Phase 1 Accounts identified by NARCL Indian Bank No of No of accounts Amount Amount accounts 22 82496 8 1893.51 Invested ` 19.80 Cr as Equity in NARCL 29/49
Slide 31: SMA Position as on 30.09.2021 vis-à-vis 30.06.2021
SMA Position as on 30.09.2021 vis-à-vis 30.06.2021 ` in Cr 30.06.21 30.09.21 % To % To Standard Standard Sector Respective % to Total Respective % to Total Advances Advances SMA 1 SMA 2 Total Sector Standard SMA 1 SMA 2 Total Sector Standard as on as on Standard Advances Standard Advances 30.06.21 3
Slide 32: Collection Efficiency (Month on Month)
Collection Efficiency (Month on Month) 31/49
Slide 33: Sector wise Restructuring details
Sector wise Restructuring details ` in Cr COVID Restructuring under RP 1.0 COVID Restructuring under RP 2.0 Sector-wise COVID Restructuring under RP 1.0 as on 30.09.2021 Sector-wise COVID Restructuring under RP 2.0 as on 30.09.2021 (Rs. In Cr) Balance as on 30.09.2021 RP INVOKED as on 30.09.2021 RP
Slide 34: Asset Quality - Ratios
Asset Quality - Ratios Gross NPA (%) Net NPA (%) 3.26% 9.89% 9.56% 2.96% QE Sep 20 QE Sep 21 QE Sep 20 QE Sep 21 CRAR PCR 84.39% 15.92% 83.32% 13.64% QE Sep 20 QE Sep 21 QE Sep 20 QE Sep 21 33/49
Slide 35: Financial Inclusion
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Slide 36: Financial Inclusion - Performance
Financial Inclusion - Performance IB vs Industry FI Parameters 30.09.2021 BCs engaged (Nos.) 9224 Market Share % Sep-20 Sep-21 7.26 BSBD Accounts (No. in lakhs) 263 6.18 PMJDY Accounts under BSBDA (No. in lakhs) 182 4.61 Balance in PMJDY accounts (` in Cr) 6693 Rupay Cards issued (No. in lakhs) 108
Slide 37: Financial Inclusion - Performance
Financial Inclusion - Performance BSBD Accounts (in lakhs) PMJDY Accounts under BSBDA (No.in lakhs) YoY 4% 268 263 increase 260 180 182 174 Sep-20 Jun-21 Sep-21 Sep-20 Jun-21 Sep-21 % of Zero Balance A/cs - Aug' 21 Overdrafts Sanctioned (` in Cr) 7.50% 3.24% 28.77 27.95 27.97 IB Industry Sep-20 Jun-
Slide 38: Digital Banking
Digital Banking 37/49
Slide 39: Migration to Digital Channels & Initiatives
Migration to Digital Channels & Initiatives • 10% increase in digital transactions mainly due to Mobile and UPI. • Mobile rating improved from 2.7 to 4.2 in Play store. • Introduced Video KYC for account opening. • Introduced ePassBook through Digi-locker of Government of India. • New Fastag app int
Slide 40: Business Network
Business Network Region-wise Domestic Overseas Branches 3 5759 686 Northern Network ATMs & BCs BNAs 9224 140 5402 North Eastern 403 Western 1414 Eastern Population group wise Central Semi Urban, 1262 Urban 1165 1513 20% 26% Metro, Southern 1146 Rationalisation of branches 20% FY21 – 203 Rural, FY22
Slide 41: Staff Position of the Bank
Staff Position of the Bank Average % of HRMS Project Phase I is under Category Total Male Female progress : age of staff Female staff Officers 24630 17882 6748 37 27 Performance Management Integration of Personal Profile, Clerks 12948 8363 4585 39 35 Attendance, Payroll, Pension & System (PMS): For
Slide 42: Initiatives
Initiatives Ind Spring Board … Financing for Start-ups MSME Prerana has been successfully covered in 10 states /UT (Uttar Pradesh, Tamil Nadu, Pondicherry, Maharashtra, Telangana, Uttarakhand, Gujarat, Odisha, West Bengal and Bihar) in 7 languages Entered into MOU with benefiting more than 1000 entr
Slide 43: Initiatives
Initiatives Bank collaborates with Top Fintech brand, M/s Fisdom to provide Wealth Management benefits. Signing of MoU Collaboration between NABARD and IB towards Inclusive Growth in Tamil Nadu – To ensure convergence of Bank credit with on-going Central/State Programmes/NABARD schemes Co-lending to
Slide 44: Awards & Accolades
Awards & Accolades Tamil Nadu State level NABARD Award – FY 21 Implementation of Official Language – FY20 Bank was awarded by NABARD for the Bank’s Hindi magazine Ind-Chhavi was awarded the Best Financial Performance and Developmental Kirti Puraskar Initiatives in the state of Tamilnadu - received (
Slide 45: Joint Venture & Subsidiary
Joint Venture & Subsidiary HYE Sep’21 Consortium of credible Public & 1 Private Corporate entities from India and Sompo of Japan as promoter 1 Operating Profit `324.70 lakhs 2 • Incorporated & licensed in 2007 Net Profit 2 • Fully operational in April 2009 ` 279.11 lakhs 30.09.21 (Provisional) Stock
Slide 46: Regional Rural Banks (RRBs)
Regional Rural Banks (RRBs) ` in Cr TNGB SGB PBGB Total Parameters HYE HYE HYE HYE HYE HYE HYE HYE YoY YoY YoY YoY Sep'20 Sep'21 Sep'20 Sep'21 Sep'20 Sep'21 Sep'20 Sep'21 Business 26118 33605 29% 14769 15954 8% 1567 1802 15% 42454 51360 21% Operating Profit 210 359 71% 162 186 15% 7 10 45% 379 555 4
Slide 47: Strategies and focus areas
Strategies and focus areas S T R A T E G Y 46/49
Slide 48: Strategies and focus areas
Strategies and focus areas Leverage Cost Digital YOUR TEXT HERE Revenue YOUR TEXT HERE Balance Sheet YOUR TEXT HERE YOUR TEXT HERE optimization Employee Transformation Maximization Strength growth • Improving digital penetration • Focus on Capital • Leadership Development • Reorient towards digital
Slide 49: 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. Certain forward-looking statements in these slides involve a number of risks, u
Slide 50: Thank you
Thank you