City Union Bank Limited · NSE:CUB
City Union Bank — Investor Presentation (May 2010)
39 slides from City Union Bank's investor presentation, May 2010
Slide 1: Investor Presentation – May 2010
Investor Presentation – May 2010
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. City Union Bank – Overview & Growth Story 4-11 2. Ownership Pattern 12-14 3. Management 15-18 4. Financial Performance 19-32 5. Strategy 33-34 6. Recognitions 35-37
Slide 4: 1. City Union Bank – Overview & Growth Story
1. City Union Bank – Overview & Growth Story 4
Slide 5: Showcasing steady performance on an ongoing basis
Showcasing steady performance on an ongoing basis … Steady growth over the years with Net Profit growing at a CAGR of 30% in past four years RoA and RoE at 1.5% and 20.5% respectively, which is considered healthy in the banking space Long and consistent track record of profitability – Profit and div
Slide 6: Key milestones
Key milestones 2003 Obtained licenses to act as a agent for procuring life insurance & general 1998 insurance business 2009 Initial Public Offering (IPO); Rights issue for equity Listing Bank‟s shares on the shares @ 1 : 4 – to reward BSE, NSE & MSE the existing shareholders 1965 2007 Amalgamation o
Slide 7: Strong presence in the South
Strong presence in the South A network of 222 branches of which 193 branches are located in South India and 139 in Tamil Nadu alone State wise branches No of Statewise % % of our State Branches of Branches Business Tamil Nadu 139 63 73 Andhra Pradesh 29 13 9 Karnataka 15 7 6 Maharashtra 12 5 6 Ker
Slide 8: Branch Expansion
Branch Expansion We have received License from Reserve Bank of India to open 56 more branches in various states within a Year. Out of which 34 branches are in Tier I and Tier II centres and 22 More branches planned to open under Tier III to VI centres. State wise Branch Expansion planned Tier I &
Slide 9: Providing a wide array of services (1/2)
Providing a wide array of services (1/2) Services & facilities – Domestic banking Implementation of core banking at all the branches enabling customers to operate their accounts from any of the branches 157 own inter connected ATMs nationwide as on May 25, 2010; Access to ATMs through Cashtree,
Slide 10: Providing a wide array of services (2/2)
Providing a wide array of services (2/2) Services & facilities - International banking Forex services to the importers & exporters Trade credit facility to importers Handling overseas direct investments and foreign direct investments International banking operations / cross border banking th
Slide 11: Offering the best of both worlds and more
Offering the best of both worlds and more Old private sector banks New private sector banks Perception of Poor asset quality Flexibility to enter adjacent markets and businesses High proportion of retail deposits – low CASA Diversified product portfolio Relative size of asset base High operating exp
Slide 12: 2. Ownership Pattern
2. Ownership Pattern 12 CUB
Slide 13: A well diversified investor base
A well diversified investor base Ownership profile as on 31st March 2010 Major shareholders as on 31st March 2010 Shareholders % holding FII's Others 0.4% 12.0% L & T Capital Holdings 4.80 Domestic Institution LIC of India 4.69 6.0% Nederlandse Financierings 4.69 Ares Investments 3.91 Integrated Ent
Slide 14: Rights Issue – FY 2009-10
Rights Issue – FY 2009-10 During the year 2009-10, we have issued 80 mn equity shares with a face value of Re.1/- each (“Rights Equity shares”) for cash at a price of Rs.6/- including a premium of Rs.5/- aggregating to Rs.48 crores to the existing equity shareholders of our Bank on rights basis in t
Slide 15: 3. Management
3. Management 15 CUB
Slide 16: Transparent 'Corporate Governance' practices
Transparent „Corporate Governance‟ practices All directors are Independent and Professional directors Various sub-committees of Board have been formed to oversee the operations of the Bank Code of conduct for directors and senior management has been put in place Disclosure norms are strictly adhered
Slide 17: A well experienced and strong Board (1/2)
A well experienced and strong Board (1/2) We have eminent personalities on our Board; 1 Former Chairman of a PSU Bank 3 Chartered Accountants 2 Agriculturist 1 Industrialist 1 Advocate 1 Chief Comm. Of Income Tax (Retd.) 1 Retd. High Court Judge 1 Banking professional Profile of Boar
Slide 18: A well experienced and strong Board (2/2)
A well experienced and strong Board (2/2) Profile of Board of Directors Name Profile Mr. S. Bernard, He is a graduate in Commerce and a Fellow Member of the Institute of Chartered Accountants of India. He is a Director practicing Chartered Accountant of 31 years standing with expertise in the field
Slide 19: 4. Financial Performance
4. Financial Performance 19 CUB
Slide 20: FY10 performance – A snapshot
FY10 performance – A snapshot FY 2009-10 FY 2008-09 Absolute Particulars (in INR mn) ( in INR mn) Growth % Growth Direction Deposits 102,845.9 82066.2 20779.7 25.3% Advances 68967.1 56862.2 12104.9 21.3% Total Business 171,812.9 138,928.4 32,884.5 26.3% Gross NPA – Qtm 935.0 1020.8 -85.8 Net NPA – Q
Slide 21: FY10 performance – A snapshot (Q4)
FY10 performance – A snapshot Financial Performance - Q4 FY 10 Vs Q4 FY 09 Q4 FY 10 Q4 FY 09 Absolute Particulars ( in INR mn) ( in INR mn) Growth % Growth Direction Net Interest Income 874.8 597.1 277.7 46.5% Other Income 322.1 362.7 -40.6 -11.2% Operating Exp 461.1 348.1 11.3 3.25% Operating Profi
Slide 22: FY10 performance – A snapshot
FY10 performance – A snapshot FY 10 performance March’ 09 March’ 09 Absolute Particulars ( in INR mn) ( in INR mn) Growth % Growth Direction Total Business 171,812.9 138,928.4 32,884.5 26.3% Net Interest Income 2,781.4 2,425.7 355.7 14.7% Other Income 1,435.0 1,236.8 198.2 16.0% Operating Exp 1,658.
Slide 23: Key business indicators
Key business indicators Key indicators Particulars FY 2009-10 FY 2008-09 Direction Cost of Deposits 7.73% 7.98% Yield on Advances 13.04% 13.46% Return on Investments 7.84% 8.58% Net Interest Margin 3.15% 3.49% Cost to Income 39.33% 38.10% Operating Exp - as a % of NII 59.63% 57.52% Return on Assets
Slide 24: Strong deposit and advances growth
Strong deposit and advances growth Steady increase in deposits Steady increase in advances Deposits (INR bn) Advances (INR bn) 103 75 68 100 82 56 80 60 64 45 60 45 47 33 40 35 30 25 31 20 20 15 0 0 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Advances has be
Slide 25: Strong growth in income and profitability
Strong growth in income and profitability Steady increase in net interest income Strong growth in other income NII (INR mn) Other Income (INR mn) 2,781 2,800 1,500 1,435 2,500 2,426 1,237 1,200 2,200 1,998 903 1,900 900 1,675 1,600 1,398 600 600 1,300 444 1,000 300 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10
Slide 26: Cost of deposits & yield on advances
Cost of deposits & yield on advances Cost of deposits and yield on advances in last 10 years CoD YoA 16.0 15.40 15.06 14.0 13.75 13.46 13.04 12.82 12.58 12.0 11.72 11.36 11.32 11.00 10.85 10.60 10.0 9.86 8.96 8.74 8.0 7.89 7.98 7.73 7.23 6.96 6.0 6.08 5.95 5.75 4.0 1999 2000 2001 2002 2003 2004 2005
Slide 27: Investments – At a Glance
Investments – At a Glance Investments Breakup and Category wise Particulars (Rs in Mn) Q4 FY 10 Q4 FY 09 % of Change SLR 25,787.8 19,647.1 31.3% Non SLR 6,396.8 4,399.9 45.4% Total Investments 32,184.6 24,047.0 33.8% Total Return on Investments 7.8% 8.6% Investments Breakup: -AFS 3,928.4 2,851.7 37.
Slide 28: Loan book - Sector wise exposure
Loan book - Sector wise exposure Loan book break up as on March 31, 2010 Amount % to Total Loans Composition (in INR mn) Advances Expor t cr edit Agriculture 7,194 10% 4% Agr c i ult ur e Oot her s 10 % SME‟s 13,273 19% Per son alo l an s 14 % 2% Iron & Steel 2,951 4% Food cr edit Textiles 6,564 10%
Slide 29: Loan book products composition
Loan book products composition Loan products composition as on March 31, 2010 Amount Working capital loans yielding higher interest Loan Products Combination ( in INR mn) % to Total Adv constitute 60% of advances Demand loans 10144.1 15% Re-pricing possible at short intervals thus Term loans 28,
Slide 30: Asset quality is showing continuous improvement
Asset quality is showing continuous improvement NPA – AN ANALYSIS – LAST 5 YEARS Gross NPA & Net NPA - Quantum Gross NPA & Net NPA - % 150 8.00% 130.69 112.83 6.00% 5.89% 100 102.08 87.07 93.50 82.93 4.32% 67.79 4.00% 61.11 3.37% 50 49.80 44.46 2.58% 36.25 39.67 2.00% 1.95% 1.81% 1.80% 1.09% 1.08% 1
Slide 31: Restructured Accounts
Restructured Accounts Details of Restructured Accounts Amount No .of Borrowers ( in INR mn) Restructured in I Phase – FY 2008-09 213 3,187.9 Restructured in II Phase – FY 2009-10 51 1,655.6 Total 264 4,843.5 Out of the above, Accounts closed till 31.03.2010 89.0 Accounts turned as NPA 181.3 Amounts
Slide 32: Income and Expenses break up
Income and Expenses break up Interest income break up March’ 10 March’ 09 Particulars ( in INR mn) ( in INR mn) % Change Interest on Loans 7,558 6,553 15.3% Interest on Investments 1,937 1,424 36.0% Other Interest Income 71 67 5.97% Total expenses 9,566 8,044 18.9% Other income break up Expenses bre
Slide 33: Increasing employee efficiency
Increasing employee efficiency Growth in business per employee Steady rise in profit per employee Business/ Employee (INR mn) Profit/Employee (INR mn) 0.6 70 65.1 0.6 0.5 0.5 60 56.5 0.5 49.9 0.4 0.4 50 0.4 40 35.0 0.3 34.0 30 0.2 20 0.1 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-06 Mar-07 Mar-08 Mar-09
Slide 34: 5. Strategy
5. Strategy 34 CUB
Slide 35: Our four pronged strategy going forward…
Our four pronged strategy going forward… Deposits Advances Achieve 30% growth in deposits & increase Maintaining focus in retail/SME sectors at low cost deposits from 20% at present to 25% around 65% over 3 years Broad base retail depositors to ensure stability Continuing the high yielding c
Slide 36: 6. Recognitions
6. Recognitions 36 CUB
Slide 37: Ranking by Magazine – The Chartered Financial Analyst
Ranking by Magazine – “The Chartered Financial Analyst” 37
Slide 38: No.1 in Customer Satisfaction awarded by IBA
No.1 in Customer Satisfaction awarded by IBA Indian Banks’ Association awarded City Union Bank as No.1 in Customer Satisfaction Study for IBA 2008 conducted by GALLUP consulting. Rank of Banks – Index – Bank within Clusters Clusters 5 + 6 City Union Bank 96 Tamilnad Mercantile Bank 96 Karur Vysya Ba
Slide 39: Thank You
Thank You