Indian Bank · NSE:INDIANB
Indian Bank — Q4 FY2020 Earnings Presentation
45 slides from Indian Bank's earnings presentation, Jun 23, 2020
Slide 1: Cover letter to stock exchanges
tiF ill Indian Bank Corporate Office 5 Investor Services Cell a mt ,.JW..0 254-260, Avvai Shanmugam Salai FAX : 28134075 Royapettah PHONE : 28134076 Chennai 600 014 E-mail : investorsindianbank.co.in Ref : ISC /116/ 2020-21 23.06.2020 The Vice President The Manager National Stock Exchange of India L
Slide 2: Press Release: Financials for Q4 and FY20 Key Highlights
PRESS RELEASE Financials for Q4 and FY 20 (Key Highlights) Total Income for Q4 FY 20 was Rs.6334 crore, up 14% over Q4 FY 19. For FY 20, the same was Rs.24717 crore with Y-o-Y growth of 17% over FY 19. Net Interest Income for Q4 FY 20 at Rs.2003 crore rose by 14% over Q4 FY 19. For the full year
Slide 3: Capital Adequacy, Asset Quality, Amalgamation of Allahabad Bank
Capital Adequacy Capital Adequacy Ratio as per Basel III guidelines was at 14.12% (FY 19: 13.21%) as against regulatory requirement of 10.875%. Tier-I CAR was at 12.08% (FY 19: 11.29%). Risk weighted Assets were at Rs.166684 crore. Credit risk density was maintained at 68%. Asset Quality GNP
Slide 4: Retail and MSME processing centres
Retail and MSME processing centres, pan india to bring down the TAT with better compliance to the guidelines. Loan Originating System (LOS) being introduced to bring about improvement in productivity. Compliance culture improved with minimum manual intervention to reduce operational, business an
Slide 5: Performance Analysis Q4 / YE 2019-20
Slide 6: Contents
Contents Key Strengths / Performance Highlights Financials Business Snapshot Capital & Risk Management Asset Quality Digital Banking Financial Inclusion Covid 19 – Measures initiated by Bank Overview of Amalgamation 2/41
Slide 7: Key Strengths
113 Years of Consistent performance in challenging dedicated Ae Pioneerin Presence - recognition: SHG 9968 Customer base r Touch Points of 52 Millions Linkage Strong Capitalisation Better Asset & Healthy Quality Financials sats % indian Bank
Slide 8: Performance Highlights – FY 20 (YoY)
Performance Highlights – FY 20 (YoY) Asset Quality – Gross NPA 6.87% (24 bps ) Net NPA 3.13% (62 bps ) 4/41
Slide 9: Financials – Operating Profit & Net Profit
Financials – Operating Profit & Net Profit ` in Cr Quarter Ended Year Ended S No Components 31.03.2019 31.12.2019 31.03.2020 Y-o-Y (%) 31.03.2019 31.03.2020 Y-o-Y (%) 1 Interest Income 4968 5467 5493 11 19185 21405 12 2 Interest Expenses 3204 3512 3490 9 12167 13799 13 3 Net Interest Income (1-2) 17
Slide 10: Income
Income ` in Cr Quarter Ended Year Ended Sl No Components 31.03.2019 31.12.2019 31.03.2020 Y-o-Y (%) 31.03.2019 31.03.2020 Y-o-Y (%) 1 Interest Income on Advances and Discount on Bills 3659 4050 4037 10 13984 15933 14 2 Interest on investments 1255 1366 1403 12 5043 5279 5 3 Sundry interest income 54
Slide 11: Fee Income
Fee Income ` in Cr Quarter Ended Year Ended Sl No Components 31.03.2019 31.12.2019 31.03.2020 Y-o-Y (%) 31.03.2019 31.03.2020 Y-o-Y (%) 1 Transaction fees 101 111 98 -3 425 427 1 2 Loan processing charges 61 64 132 117 179 293 64 3 Commission on Government business 17 12 15 -14 49 48 -2 4 Commission
Slide 12: Expenses
Expenses ` in Cr Quarter Ended Year Ended S No Components 31.03.2019 31.12.2019 31.03.2020 Y-o-Y (%) 31.03.2019 31.03.2020 Y-o-Y (%) 1 Interest on deposits 3017 3330 3257 8 11230 12996 16 2 Interest on borrowings 165 182 188 14 841 758 -10 3 Sundry interest expenses 22 0 45 -- 95 45 -53 4 Total Inte
Slide 13: Overhead details
Overhead details ` in Cr Quarter Ended Year Ended S No Components 31.03.2019 31.12.2019 31.03.2020 Y-o-Y (%) 31.03.2019 31.03.2020 Y-o-Y (%) 1 Rent, Taxes & Lighting 84 76 85 2 298 318 7 2 Depreciation 71 78 82 16 259 314 21 3 Insurance 65 71 73 13 256 287 12 4 Travelling and Halting 14 13 14 1 55 5
Slide 14: Provisions & Net Profit
Provisions & Net Profit ` in Cr Quarter Ended Year Ended S No Components 31.03.2019 31.12.2019 31.03.2020 Y-o-Y (%) 31.03.2019 31.03.2020 Y-o-Y (%) 1 Operating Profit 1245 1919 1703 37 4881 6498 33 2 Total Provisions 1435 1672 1921 34 4559 5745 26 Of which Loan loss 1433 1702 1430 3616 4336 Deprecia
Slide 15: Business Snapshot
Business Snapshot ` in Cr S No Parameter 31.03.2019 31.03.2020 YOY (%) Domestic Deposits 1 Deposits 242076 260226 7 CASA % : 35% Domestic 235237 252792 7 Overseas 6839 7434 9 Core Term Deposits Other Term Deposits Deposits breakup Savings Bank Current account Current 13256 13549 2 Savings 70766 7660
Slide 16: Advances (Domestic) - Composition
Advances (Domestic) - Composition ` in Cr Sector 31.03.2019 31.12.2019 31.03.2020 YoY (%) Gross Advances-Domestic 180345 184362 197481 10 Retail Retail 32853 37207 37956 16 19% Corporates Agriculture 39005 42134 44369 14 39% Agriculture RAM 61% MSME 33046 37917 37208 13 23% Total (RAM) 104904 117258
Slide 17: Corporate Sector - Overview
Corporate Sector - Overview % to % to % to ` in Cr S No Composition 31.03.2019 Gross 31.12.2019 Gross 31.03.2020 Gross Advances Advances Advances 1 NBFCs 19865 11 19947 11 23877 12 NBFC - PSUs 56 0 32 0 125 0 NBFC - HFCs 7223 4 8095 4 9301 5 NBFC - MFIs 923 1 1286 1 1524 1 NBFC - Others 11663 6 1053
Slide 18: Sectoral Deployment – Domestic Advances
Sectoral Deployment – Domestic Advances ` in Cr % share to % share to Sector 31.03.2019 Gross 31.03.2020 Gross YoY (%) Advances Advances Infrastructure 23970 13 29904 15 25 Of which Power 8946 5 9286 5 4 Telecom 103 0 596 0 479 Exposure to sensitive sectors Roads 3378 2 3480 2 3 Other infrastructure
Slide 19: Standard Domestic Credit Exposure Profile of External Rating
Standard Domestic Credit Exposure ` in Cr Profile of External Rating 31.03.2019 31.03.2020 External Rating Exposure % to Total Exposure % to Total AAA 13825 13 14593 11 AA 22700 21 33349 26 A 13876 13 21393 17 BBB 17351 16 20421 16 BB and below 12149 11 21919 17 Unrated 28721 26 17597 14 Of which PS
Slide 20: Investments - Domestic
Investments - Domestic Composition 31.03.2019 31.12.2019 31.03.2020 Y-o-Y (%) ` in Cr Central Government Securities 38139 47230 44636 17 State Government Securities 13880 18048 20366 47 Other Approved Securities 5 3 3 -40 Debentures & Bonds 9275 7390 8842 -5 Treasury Bills 0 0 5 -- Shares 820 796 77
Slide 21: Performance Ratios
Performance Ratios ` in Cr Quarter Ended Year Ended Parameters 31.03.2019 31.03.2020 31.03.2019 31.03.2020 Cost of Deposits 5.34 5.21 5.28 5.34 Cost of Funds 5.37 5.21 5.32 5.30 Cost to Income Ratio 46.62 40.12 45.17 40.49 Yield on Advances 8.43 8.39 8.45 8.46 Return on Assets (RoA) -0.28 -0.28 0.12
Slide 22: Capital Adequacy – Risk Management
Capital Adequacy – Risk Management ` in Cr Parameters 31.03.2019 31.03.2020 Capital 20234 23532 Common Equity Tier I (CET 1) 16790 19643 13.21 14.12 Additional Tier I 500 500 Tier II 2944 3389 2.04 Total Risk Weighted Assets 153188 166684 1.92 0.30 0.33 CRAR % 13.21 14.12 Tier I Risk Weighted 31.03.
Slide 23: Shareholding Pattern & Balance Sheet
Shareholding Pattern & Balance Sheet Pattern of Equity Shareholding Government of India Mutual Funds FI/FPI/FII Resident/Employees/NRI QIB / Others Shareholder % % 0.88 Government of India 83.46 4.32 6.64 4.70 Mutual Funds 4.70 FIs / FPIs / FIIs 4.32 Residents / Employees / NRIs 6.64 83.46 QIBs / Ot
Slide 24: SMA - Sectorwise
SMA - Sectorwise ` in Cr SMA 2 S No Parameter Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 1 Agriculture 510 736 601 669 680 2 MSME 931 1135 1657 1636 2119 3 Retail 749 924 1076 1035 1099 Of which Home Loan 382 526 520 533 575 Vehicle Loan 31 38 46 52 53 Educational Loan 202 145 188 175 175 Other Retail Loan
Slide 25: Asset Quality – Movement of NPA
Asset Quality – Movement of NPA ` in Cr Quarter Ended Year Ended S No Details 31.03.2019 31.12.2019 31.03.2020 31.03.2019 31.03.2020 1 Gross NPA opening balance 13198 13981 13862 11990 13353 ADDITIONS : Fresh Slippages 962 2138 1210 6312 5123 To old NPAs / Others 43 67 46 133 197 2 Sub-Total 1005 22
Slide 26: Sectorwise Fresh Slippages
Sectorwise Fresh Slippages Slippage Curve - Quarterly movement ` in Cr 2500 2000 Slippage in Rs. Crore 1500 Retail Agriculture 1000 MSME Corporate 500 TOTAL 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 (Inc. Q4 (January major HFC & February) account) 2018-19 2019-20 2018-19 2019-20 Q4 Annualized Slippage Sector Q3 (Inc.
Slide 27: NPA Position – Sector wise
NPA Position – Sector wise ` in Cr 31.03.2019 31.12.2019 31.03.2020 % to % to % to Sectorwise GNPA to Total GNPA (%) Sector Gross Gross Gross respective respective Outstanding respective NPA NPA NPA portfolio portfolio portfolio Retail credit Agriculture MSME Corporate/Overseas Retail Credit 963 2.9
Slide 28: NPA Position – Industry wise
NPA Position – Industry wise ` in Cr 31.03.2019 31.12.2019 31.03.2020 % to % to % to Industry Gross NPA respective Gross NPA respective Gross NPA respective portfolio portfolio portfolio Metal and Metal Products (Incl. Iron & Steel) 1962 29.64 1707 26.03 1592 22.56 Petroleum & Other Minerals 830 81.
Slide 29: Status of NCLT accounts
Status of NCLT accounts ` in Cr No.of Category Exposure Provision PCR% Accounts RBI List I 8 4269 4223 98.9 RBI List II 15 4202 4143 98.6 Others* 217 19955 16530 82.8 Total 240 28426 24896 87.6 * Of which no. of accounts filed by other Banks at NCLT = 184 Exposure (` in Cr) PCR % 28426 98.9 98.6 94.
Slide 30: Restructured Assets - Movement
Restructured Assets - Movement ` in Cr 31.03.2019 31.03.2020 S.No Details No Amount No Amount 1 Opening balance of Standard restructured accounts 4402 2079 30237 2609 (Year beginning) 2 Fresh restructuring during the period 29752 1182 25801 1209 3 Upgraded from NPA and continuing as restructured 88
Slide 31: Migration to Digital Channels
Migration to Digital Channels Digital Transactions Branch Transactions ATM Transactions FY 19 FY 20 29% 32% 29% 45% 26% 39% Transactions through Digital channels increased by 16% from 29% (FY 19) to 45% (FY 20) 27/41
Slide 32: Digital Footprint
Digital Footprint Net Banking In lakhs Mobile Banking No. of users No. of Transactions 28/41
Slide 33: Digital Footprint
Digital Footprint PoS /e-Com Transactions (lakhs) PoS Acquirer Transactions (lakhs) 880.21 153.38 YoY 34% 128.89 YoY 19% 659.29 FY 19 FY 20 FY 19 FY 20 No. of ATMs & BNAs 3892 4059 YoY 4% Number of Debit Cards as on 31.03.2020: 14.72 Mio FY 19 FY 20 29/41
Slide 34: Financial Inclusion – Performance under PMJDY
Financial Inclusion – Performance under PMJDY YoY Mar-20 Mar-19 Dec-19 Mar-20 Growth Accounts (No. in lakhs) 38 40 40 6% % of Zero balance Accounts 13.27 12.43 12.28 7% Financial Inclusion Deposits ` in Cr 595 688 748 26% Overdrafts sanctioned ` in Cr 17.60 17.91 17.95 30/41
Slide 35: COVID 19: Lending helping hand to revive stalled business
COVID 19 : Lending helping hand to revive stalled business Tailor made sector-specific loan products introduced Target Group Ind Emergency Loans Corporates / Medium Enterprises IND COVID Emergency credit Line MSMEs IND MSE COVID Emergency Loan `3010 Cr Self Help Groups SHG COVID Sahana Loan sanction
Slide 36: COVID 19: Support extended for reviving the economy
COVID 19 : Support extended for reviving the economy Emergency Credit Line • `3725 Cr sanctioned (65% of eligible borrowers Guarantee Scheme (ECLGS) & 45% of eligible loan amount covered) funding (as on 21 06 20) • Pre approval sanctions sent to all eligible borrowers Bonds/CPs of `925 Cr sanctioned
Slide 37: COVID 19: Supporting the Nation in times of distress
COVID 19 : Supporting the Nation in times of distress Extending a helping hand Staff members contributed Umbrellas/facemasks distributed to law `8.10 Cr (one day PL encashment) to enforcers PM CARES Fund. Thermal scanners set up in Government `7.24 Cr (one day salary) towards Offices viz., Corporati
Slide 38: Overview of Amalgamation
Overview of Amalgamation Your Own Bank Banks with Rich Legacy.. A Tradition of Trust Brands that Command respect .. 113 years of Banking Service 155 years of Banking Service Established on 15th August Established in 1865 at 1907 as part of the Swadeshi Allahabad – Head Office movement shifted to Kol
Slide 39: Amalgamation: Customer touch points
Amalgamation : Customer touch points Region wise Presence Customer Touch points Indian Bank Indian Bank eALB Total Northern Allahabad Bank 311 441 Branches 2890 3172 6062 North Eastern 49 92 Central Domestic 2887 3172 6059 226 1222 Eastern 289 1002 Western Overseas 3 - 3 251 194 Southern BCs 3022 60
Slide 40: Amalgamation - Synergy
Amalgamation - Synergy The Complementary branch presence shall add to the network of Indian Bank in the northern central and eastern states The realizable revenue synergies arise Rural presence & BCs complement for from harmonized & wider product offering, optimisation of operations, expanding bus
Slide 41: Post Amalgamation – Major Activities
Post Amalgamation – Major Activities A Common Gateway Software (Co-Ex) is being used to Cross Treasury operations integrated & consolidated provide interface to the two CBS systems. Transactions reporting is in place. Customers of one Bank are able to seamlessly carry out Harmonised Products with ha
Slide 42: Way forward - Strategic initiatives undertaken
Way forward - Strategic initiatives undertaken Leverage on large scale infrastructure available post amalgamation viz., Increase in number of Large Corporate 1 Branches, Mid Corporate Branches, Retail & MSME Processing Centres Scale up infrastructure available viz., Customer Acquisition Processing C
Slide 43: Awards & Accolades
Awards & Accolades Reader’s Digest Indian Express Voted as a Govt . of India ‘ Trusted Bank ’ Technology in the Senate Digital 1st in MeitY, GoI Nationalised South India Award – 2019 Swatchhta Winner Banks Category – Under category Pakhwada 2019 Digi Dhan April 2019 “Enterprise for outstanding Digit
Slide 44: 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 45: Thank you