City Union Bank Limited · NSE:CUB
City Union Bank — Investor Presentation (June 2014)
43 slides from City Union Bank's investor presentation, June 2014
Slide 1: Investor Presentation – June 2014
INVESTOR PRESENTATION – JUNE 2014 1
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
Slide 3: Table of contents
Table of contents 1. Overview … 04 – 06 2. Qualified Institutional Placement 07 - 09 3. Performance Highlights – March 2014 … 10 - 11 4. Branch Network … 12 - 13 5. Ownership Pattern … 14 - 17 6. Management … 18 – 21 7. Financial Performance & Business Profile … 22 - 42 3
Slide 4: 1. Overview
1. Overview 4
Slide 5: 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 costs SM
Slide 6: Key milestones
Key milestones 2012 2007 Rights Issue @ 1 : 4 – to reward Preferential allotment for equity the existing shareholders and shares strengthening bank’s employees under “Employee capital funds Reservation Scheme” 1998 Initial Public Offering (IPO); Listing Bank’s shares on the 2014 BSE, NSE & MSE Raise
Slide 7: 2. Qualified Institutional Placement
2. QUALIFIED INSTITUTIONAL PLACEMENT 7
Slide 8: Qualified Institutional Placement
QUALIFIED INSTITUTIONAL PLACEMENT In July 2014, we have successfully completed raising of Rs.3500 Mn in Equity Capital through QIP Issue. Board given approval for QIP issue to the tune of Rs.3500 Mn on 29.07.2013 & subsequently the same has been approved in Shareholders meeting held on 30.08.2013. Q
Slide 9: Qualified Institutional Placement – Allotted Investors
QUALIFIED INSTITUTIONAL PLACEMENT On 22.07.2014, the QIP Management Committee allotted Rs.350 crs comprising Rs.115 crs to FII and Rs.235 crs to DII as per the list of investors given below: SL. NAME OF THE INVESTOR SL. NAME OF THE INVESTOR NO. NO. 1 NT ASIAN DISCOVERY MASTER FUND 11 AMANSA CAPITAL
Slide 10: 3. Q1 FY 2015 – Performance Highlights
3. Q1 FY 2015 – PEFORMANCE HIGHLIGHTS 10
Slide 11: Q1 FY 2015 Performance – A snapshot
Q1 FY 2015 Performance – A snapshot Deposits increased by 9% from Rs.205 Bn to Rs.224 Bn Y-o-Y Advances registered a growth of 5% from Rs.154 Bn to Rs.162 Bn Y-o-Y Gross Profit registered a growth of 7% from Rs.1616 Mn to Rs.1727 Mn Y-o-Y Net Profit increased by 10% from Rs.903 Mn to Rs.995 Mn Y-o-Y
Slide 12: 4. Branch Network
CUB 4. Branch Network 12 cuB
Slide 13: Strong presence in the South
Strong presence in the South A network of 425 branches of which 378 branches are located in South India and 291 in Tamil Nadu alone State No. of % of Branches Business Tamilnadu 291 73 Andhra Pradesh 51 9 3 1 Karnataka 24 5 1 Maharashtra 17 5 6 Kerala 12 2 3 4 Gujarat 6 2 Others 24 4 2 Total 425 6 2
Slide 14: 5. Ownership Pattern
CUB 5. Ownership Pattern 14 cuB
Slide 15: A well diversified investor base
A well diversified investor base Ownership profile Public~ 46.96% Corp. Bodies~ 7.85% Others, 0.11% Domestic Institutions~ FII's~ 32.23% 9.79% NRI's~ 3.06% Well diversified ownership exceeding 90000 Long term investors ensuring stability and support to management Higher Participation from FII’s Limi
Slide 16: A well diversified investor base – Major Institutional Shareholders
A well diversified investor base Major Institutional Shareholders as on 30 June 2014 Shareholders % of holding GKFF Ventures 4.33 Lavender Investments Ltd 4.18 LIC of India 3.99 Equinox Partners L P 3.06 Wasatch Core Growth Fund 2.01 Acacia Partners 1.99 Emblem 1.74 Regal Investment and Trading Co.
Slide 17: Major Institutional Shareholders after QIP Issue
Major Institutional Shareholders after QIP Issue Major Institutional Shareholders after QIP issue – Position as on 01.08.2014 Shareholders % of holding Lavender Investments Ltd 4.01 GKFF Ventures 3.99 LIC of India 3.68 Equinox Partners L P 2.81 Wasatch Core Growth Fund 1.85 Acacia Partners 1.83 Aman
Slide 18: 6. Management
CUB 6. Management 18 cuB
Slide 19: Transparent 'Corporate Governance' practices
Transparent ‘Corporate Governance’ practices Board consists of 7 Independent Directors and 3 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
Slide 20: 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
Slide 21: A well experienced and strong Board (2/2)
A well experienced and strong Board (2/2) Name Profile Justice (Retd.) He is a former Judge of High Court of Madras and High Court of Orissa. He has vast experience S.R. Singaravelu, of 36 years in the Judiciary where he has held various positions. Director He retired as Chief General Manager, Dept
Slide 22: Financial Performance and Business Profile
6. Financial Performance and Business Profile 22
Slide 23: Q1 FY 2015 Performance – A snapshot
Q1 FY 2015 Performance – A snapshot Deposits Advances HIGHLIGHTS FOR THE QUARTER ENDED 30th JUNE2014 Deposits increased by 9% to Rs.224 Bn from Rs.205 Bn 9% 5% Advances increased by 5% from Rs.154 Bn to Rs.162 Bn Total Business grew by 7% from Rs.359 Bn to Rs.385 Bn CASA CASA improved by 22% to Rs.4
Slide 24: FY 2013-14 Performance – A snapshot
FY 2013-14 Performance – A snapshot Deposits Advances HIGHLIGHTS FOR THE YEAR ENDED 31st MARCH 2014 Deposits increased by 8% to Rs.220 Bn from Rs.203 Bn 8% 6% Advances increased by 6% from Rs.153 Bn to Rs.162 Bn Total Business grew by 7% from Rs.356 Bn to Rs.382 Bn CASA CASA improved by 15% to Rs.39
Slide 25: Q1 FY 15 Vs Q1 FY 14 – Performance – A snapshot
Q1 FY 15 Vs Q1 FY 14 – Performance – A snapshot Financial Performance (in INR Mn) Particulars Q1 FY Q1 FY Inc / % FY Growth 2015 2014 (Dec) Growth 2014 Deposits 223834 205165 18669 9% 220169 Advances 161529 153877 7652 5% 162236 Total Business 385363 359042 26321 7% 382405 Demand Deposits 14680 1228
Slide 26: Q1 FY 15 Vs Q1 FY 14 – Performance – A snapshot
Q1 FY 15 Vs Q1 FY 14 – Performance – A snapshot Financial Performance (in INR Mn) Q1 FY Q1 FY INC / % FY Particulars 2015 2014 (DEC) GROWTH 2013-14 Net Interest Income 1867 1874 -7 -ve 7594 Other Income 1107 789 318 40% 2799 Operating Expenses 1247 1047 200 19% 4583 Gross Profit 1727 1616 111 7% 581
Slide 27: Q1 FY 15 Vs Q1 FY 14 – Income and Expenses – Breakup
Q1 FY 15 Vs Q1 FY 14 – Income and Expenses – Breakup (in INR Mn) Interest Income Breakup Interest Expenses Breakup Q1 FY Q1 FY Growth Q1 FY Q1 FY Growth Particulars Particulars 2015 2014 (%) 2015 2014 (%) Interest on Loans 5211 5178 1% Int Exp on Deposits 4505 4248 6% Interest on Investments 1189 10
Slide 28: FY 13-14 Vs FY 12-13 – Income and Expenses – Breakup
FY 13-14 Vs FY 12-13 – Income and Expenses – Breakup (in INR Mn) Interest Income Breakup Interest Expenses Breakup FY FY Growth FY FY Growth Particulars Particulars 13-14 12-13 (%) 13-14 12-13 (%) Interest on Loans 20921 18122 15% Int Exp on Deposits 17340 15045 15% Interest on Investments 4380 3723
Slide 29: Key Business Indicators
Key Business Indicators Key indicators Particulars Q1 FY Q1 FY Q4 FY FY 2015 2014 2014 2013-14 Cost of Deposits 8.25% 8.43% 8.25% 8.37% Yield on Advances 13.00% 13.45% 13.09% 13.43% Yield on Investments 7.45% 7.30% 7.31% 7.33% Net Interest Margin 3.32% 3.55% 3.34% 3.50% Cost to Income 41.94% 39.32%
Slide 30: Strong Deposits and Advances growth
Strong Deposits and Advances growth Deposits Advances 2 2 0 16 9 223834 203048 16 2 2 3 6 16 152 9 153 4 2 9 16 3 4 0 8 12 2 2 17 12 9 14 3 93290 31- M a r- 11 31- M a r- 12 31- M a r- 13 3 1- M ar- 14 3 0- Jun- 14 3 1- M ar - 11 3 1- M ar - 12 3 1- M ar - 13 3 1- M ar - 14 3 0 - Jun- 14 Business CA
Slide 31: Income Growth over the years
Income Growth over the years … Net Interest Income Growth Other Income Growth 759 4 2 79 9 2 73 6 6240 2 0 71 4998 4200 1574 110 7 18 6 7 3 1- M a r- 11 3 1- M a r- 12 3 1- M a r- 13 3 1- M a r- 14 3 0 - J un- 14 3 1- M a r- 11 3 1- M a r- 12 3 1- M a r- 13 3 1- M a r- 14 3 0 - J un- 14 CEB Growth N
Slide 32: Cost of deposits & Yield on advances
Cost of deposits & Yield on advances Cost of Deposits and Yield on Advances 13.49 13.43 13.56 13.00 13.46 12.82 13.04 12.47 11.32 11.00 10.85 8.37 7.98 8.11 8.44 7.73 8.25 7.23 6.94 6.08 5.95 5.75 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Jun-14 Spread between cost of deposits and yield on a
Slide 33: Key Business Ratios - Yearwise
Key Business Ratios - Yearwise Net Interest Margin Return on Assets 3 .6 4 % 3 . 3 5% 3 .3 2 % 3 . 15% 3 . 50 % 3 .4 0 % 1. 71% 1. 6 7% 1. 58 % 1. 58 % 1. 52 % 1. 4 4 % 3 1- M ar- 10 3 1- M ar- 11 3 1- M ar - 12 3 1- M ar - 13 3 1- M ar - 14 3 0 - Jun- 14 3 1- M ar - 10 3 1- M ar - 11 3 1- M ar - 12
Slide 34: Efficiency
Efficiency (Rs in Mn) Business per Employee Profit per Employee 9 3 .8 9 0 .6 9 1.3 8 4 .7 0.96 78 .1 0.84 0.85 0.80 0.82 3 1- M ar - 11 3 1- M ar - 12 3 1- M ar - 13 3 1- M ar - 14 3 0 - Jun- 14 31-Mar-11 31-Mar-12 31-Mar-13 31-Mar-14 30-Jun-14 34
Slide 35: Loan Book – Products Composition
Loan Book – Products Composition Amount % to Total Working capital loans yielding higher interest Loan Book Products Composition (INR Mn) Advances constitute 65% of advances Cash Credit & Demand Loans 105273 65% Re-pricing possible at short intervals thus Term Loans 53615 33% reducing interest rate
Slide 36: Loan book – Composition
Loan book – Composition Sectoral Deployment as on 30th June 2014 Secured & Unsecured Advances Amount % to Total Amount % to Total Particulars Particulars (INR Mn) Advances (INR Mn) Advances Agriculture (includes AJL – 21231 Mn) 30430 19% Secured Loans 158396 98% MSME 50071 31% Unsecured Loans 3133 2
Slide 37: Loan Book – Sectoral Deployment
Loan Book – Sectoral Deployment Sectoral Deployment chart NB FC Others INFRA 1% 4% LA D 1% 2% P erso nal Lo an 2% Ho using 6% JL No n A gri 4% A GRI 19% CRE 5% Whlsale Trade 11% M SM E Retail Trade 31% 6% Large Ind 8% 37
Slide 38: Loan Book – Advances to Major Industries
Loan Book – Advances to Major Industries Advances to Major Industries as on 30th June 2014 Amount % to Total Industry Name (in INR Mn) Advances Textiles a) Cotton 9393 6% b) Other Textiles 3480 2% Metals a) Iron & Steel 8711 5% b) Other Metals 1845 1% Paper & Paper Products 3964 2% Food Processing 2
Slide 39: Asset Quality
Asset Quality (Rs in Mn) Gross NPA Qtm & Gross NPA % Net NPA Qtm & Net NPA % 3083 2044 2931 1973 1731 1.2 8 % 1.2 3 % 1.81% 964 1235 1.91% 1125 1.13% 484 540 ` 1.21% 0 .6 3 % 1.01% 0 .5 2 % 0 .4 4 % 31-Mar-11 31-Mar-12 31-Mar-13 31-Mar-14 30-Jun-14 31-Mar-11 31-Mar-12 31-Mar-13 31-Mar-14 30-Jun-14 3
Slide 40: Asset Quality Position – Movement over the years
Asset Quality Position – Movement over the years FY FY FY FY Q1 FY (Rs in Mn) Mar-11 Mar-12 Mar-13 Mar-14 2015 NPA Opening balance 882 1125 1235 1731 2931 Additions A 1207 1444 2234 4562 3704 Recovery / SR 376 649 486 1865 3173 Upgradations 114 165 232 168 14 Net Addition B 717 630 1516 2529 517 Wri
Slide 41: Restructured Accounts
Restructured Accounts No additions to Restructured Accounts in Q1 FY 2015 Balance outstanding as on 30.06.2014 in respect of Restructured Standard borrowers: Type Restructuring No. of Amount Borrowers (in INR Mn) Under CDR Mechanism 2 748 Under SME Debt Restructuring Mechanism 8 216 Under Other Debt
Slide 42: Investments – At a Glance
Investments – At a Glance Investments Breakup and Categorywise (in INR Mn) Particulars JUN 2014 JUN 2013 SLR Securities 59105 53190 Non-SLR Securities 6108 6363 Total Investments 65213 59553 Yield on Investments 7.45% 7.33% Investments Breakup: -AFS 6899 (11%) 4598 (8%) -HTM 58155 (89%) 54950 (92%)
Slide 43: Thank You
Thank You 43