Indian Overseas Bank · NSE:IOB
Indian Overseas Bank — Q3 FY2013-14 Earnings Presentation
54 slides from Indian Overseas Bank's earnings presentation, December 2013
Slide 1: Presentation to Analysts December 2013
p to Grow With Good People Touching Hearts Spreading Smiles since 1937 Presentation to Analysts December 2013 (in INR)
Slide 2: 75 Years of Quiet & Dignified Service to the Society
75 Years off Quiet Q & Dignified g f Service to the Societyy Good People to Grow With
Slide 3: Index
Balance Sheet Management Department INDEX Particulars Page No. Particulars Page No. Mile Stones 4-5 NPA Details 29-34 Share Holding Pattern 6 Profitability 35-38 Foreign Branches 7 Profitability - Details of Income 39-44 Joint Ventures 8 Net Profit 45 Ratios - Cost & Yield Ratios & Credit Rating 9 N
Slide 4: Milestones - IOB Young at 75 Years
Milestones IOB Young at 75 Years FIRST 50 YEARS 1937 Opening of Bank Branch simultaneously in India & Abroad 1938 Opening Branch in Kuala Lumpur 1941 Opening Branch in Singapore 1945 Opening Branch in Colombo 1955 Opening Branch in Hong Kong 1957 Bank established its own training centre 1960s Was a
Slide 5: Milestones - IOB Young at 75 Years
Milestones - IOB Young at 75 Years NEXT 50 YEARS 2000 Initial Public Offer. Follow on Public Offer in 2003 2005 Launched Debit Card 2006 Launched VISA card, Retail Sale of Gold and Non Life Joint Insurance Bank reached INR 1 lac crore mark in Total Business 2006-07 Net Profit reached INR 1000 Cr.; B
Slide 6: Investor Profile – Shareholding Pattern as on 31.12.2013
Investor Profile – Shareholding Pattern (%) as on 31.12.2013 Clearing Member 0.02% Total No. of Shares issued:115,38,48,315 Trusts 0.04% NRI 0.42% Promoter (GOI) 79.01% Promoter (GOI) FIIs 1.95% Residents Banks 0.07% FI Mutual Funds 0.06% Corporate Bodies Corporate Bodies 0.82% Mutual Funds FI Banks
Slide 7: Global Footprints – Foreign Branches of the Bank
Global Footprints – Foreign Branches of the Bank Branches Representative JV Remittance Office S b idi Subsidiary Centres Singapore Guangzhou – China Malaysia Singapore - Hong Kong Main Vietnam Serangoon Road Hong Kong TST Dubai Singapore - Boon Lay Colombo Bambalapitiya Seoul
Slide 8: Strategic Investments - Joint Ventures
Strategic Investments - Joint Ventures IOB entered into Non Life Insurance Business with Universal Sompo p General Insurance ((USGI)) Company p y Limited with equity participation of 19% along with the Following Banks and Institutions Joint venture Equity Contributors % INR Crs Allahabad Bank 30 1
Slide 9: Credit Rating – International & Domestic
Credit Rating – International & Domestic Rating Agency Rating Standard and Poor BBB- / Negative / A-3 BBB- Adequate capacity to meet its financial commitments A-3 Adequate capacity to meet its financial obligations CRISIL AA / Stable for Lower Tier II Bonds. High Safety AA / Negative/Stable for Tier
Slide 10: Highlights-31.12.2013
Highlights-31.12.2013 Business touched INR 3,87,406Crores ( YoY Growth 12.89%) Deposits p stood at INR 2,13,319 , , Crores ((YoY Growth 14.95%)) CASA stood at 24.75% Advances is INR 1,74,087Crores (YoY Growth 10.45%) Operating O i Profit P fi for f 9M is i INR 2806.15Crores 2806 15C (YOY Growth G h
Slide 11: IT Initiatives
IT Initiatives Core Banking Solution Our bank has implemented the Core Banking Solution developed in-house, christened ‘CROWN’ (Centralized Resources Over Wide-area Wide area Network) Network). As per recent advise of Ministry, we have planned to move to the COTS CBS model which is widely used
Slide 12: IT Initiatives
IT Initiatives E-PAYMENT of following state VAT has been made online. i)Lucknow, ii)Delhi, iii)Maharashtra (GRAS) (Multi Dept. Portal), iv) Pondicherry, v)Karnataka, vi) Andhra Pradesh, vii) Tamilnadu, viii) Jharkhand and ix) West Bengal which ensures float funds for the Bank. Payment of port char
Slide 13: IT Initiatives (contd…)
IT Initiatives (contd…) Aadhaar Our bank is actively participating in the Aadhaar related initiatives of the Government / NPCI. Linking of Aadhaar numbers to account number through Branch channel is in operation for the past 1-1/2 years. Similarly APBS and NACH platforms are in operation. Financ
Slide 14: IT Initiatives (contd…)
IT Initiatives (contd ….) . IT Organization Structure : Policies like Information Security Policy, IT Outsourcing Policy, IT Purchase Policy and Manual , Disaster Recovery and Business Continuity Plan, IS Audit Policy, Data Archival Policy, Data Retention Policy and Data Ownership Policy have been
Slide 15: Major Business Parameters
Major Business Parameters Quarter ending INR Crs Key performance indicators Dec 2012 Mar 2013 Jun 2013 Sep 2013 Dec 2013 Business Mix 3,43,186 3,66,501 3,63,087 3,89,005 3,87,406 Deposits 1,85,573 2,02,135 1,96,213 2,12,705 2,13,319 Advances (Gross) 1 57 613 1,57,613 1 64 366 1,64,366 1 66 874 1,66,
Slide 16: Deposits
Deposits INR Crs 205258 213319 220000 178841 200000 185573 180000 160000 140000 120000 100000 Domestic 80000 60000 Gl b l Global 40000 20000 0 31.12.2012 31.12.2013 Domestic 178841 205258 Global 185573 213319 Domestic Deposits Global Deposits Y-o-Y Growth:14.77% Y-o-Y Growth:14.95% 16
Slide 17: Deposits - CASA
Deposits - CASA INR Crs 53,586 53,968 52,800 50,252 46,339 CASA 40,379 38,874 41,088 40,699 36,733 SAVINGS 13,207 11,378 12,880 12,101 9,606 CURRENT Dec'12 Mar'13 Jun'13 Sep'13 Dec'13 Current Deposits Savings Bank CASA Share of CASA Y-o-Y Growth:25.97% Y-o-Y Growth:10.80% Y-o-Y Growth:13.94% to
Slide 18: Domestic Deposit-Category Wise
Domestic Deposit-Category Wise Dec 2013 INR Crs Rural, 13 777 (7%) 13,777 Semi urban, urban 23,979 (12%) Urban, 45,107 (22%) Metro, 1,22,395 (59%) 18
Slide 19: Gross Advances
Gross Advances INR Crs 160,000 157,613 152,492 174,087 138,219 140,000 120 000 120,000 100,000 80,000 60,000 40,000 20,000 0 31.12.2012 31.12.2013 Domestic 138,219 152,492 Global 157,613 174,087 Domestic Advances Global Advances Y-o-Y Growth:10.33% Y-o-Y Growth:10.45% 1919
Slide 20: Domestic Advances-Category Wise
Domestic Advances-Category Wise Dec 2013 INR Crs Rural, Metro, Semi Urban, 16,908 (11%) 86,224 (57%) 18,844 (12%) Urban, 30,516 ( 20%) 20
Slide 21: Key Sectors (Domestic Credits)
Key Sectors (Domestic Credits) INR Crs Sector Dec 2012 Mar 2013 Dec 2013 1.Agriculture 21,270 23,393 23,730 2.SME 16,343 19,976 21,540 of which Micro 6,364 8,342 9,230 3 Retail Credit 3.Retail 10 693 10,693 15 060 15,060 16 815 16,815 2121
Slide 22: Retail Credit (Breakup)
Retail Credit (Breakup) INR Crs Sector Dec 2012 Mar 2013 Dec 2013 Retail Credit 10,693 15,060 16,815 Of which - Housing Loans 4,836 5,041 5,707 - Misc.CC 1,194 1,320 1,301 - Pushpaka 736 782 949 - Educational Ed i l Loan L 2 924 2,924 2 978 2,978 3 460 3,460 - Others 1,003 1,008 1,096 Jewl Loan to O
Slide 23: Advances to Sensitive Sectors - Domestic
Advances to Sensitive Sectors - Domestic (FUND + NON FUND) INR Crs Sector Dec 2012 Mar 2013 Dec 2013 CAPITAL MARKET 1,132 1,034 819 REAL ESTATE 17,659 17,599 19,620 of which HOUSING LOAN * 5,315 5,658 6,872 COMMERCIAL REAL ESTATE 8,109 7,548 7,850 OTHERS (DIRECT & INDIRECT) 4,235 4,393 4,898 * Inclu
Slide 24: Overseas Advances - Breakup
Overseas Advances - Breakup INR Crs Dec 2012 Mar 2013 Dec 2013 Trade 6,855 6,237 8,298 Manufacturing 6 051 6,051 6 269 6,269 6 758 6,758 Real Estate 283 288 295 Buyers Credit 4,269 4,895 3,494 Others 1,937 1,783 2,750 Total 19,395 19,472 21,595 24
Slide 25: Restructured Standard Accounts
RESTRUCTURED STANDARD ACCOUNTS (INCLUDES ALL F.B. FACILITIES OF THE BORROWER) INR Crs Domestic Foreign Global > 1 crore < 1 crore Total As on 30.09.2013 11384.96 70.17 11455.13 568.90 12024.03 Addition during Q3 1089.12 19.67 1108.79 70.39 1179.18 of 13-14 Less: Repayment 263.89 31.67 295.56 566.94
Slide 26: Restructured Accounts Outstanding Position As On 31.12.2013
Restructured Accounts Outstanding Position As On 31.12.2013 INR Crs Sector 31.12.2013 31.12.2013 31.12.2013 Accounts Amount % Chemical & Pharma 4 120.10 0.87 Sugar 4 66.27 0.47 Textile 17 634.05 4.62 Rubber & Plastics - - - Iron & Steel 25 1324.67 9.66 Auto & Ancillary 2 315.10 2.28 Paper 6 302.34 2
Slide 27: Restructured Accounts Outstanding Position (contd)
INR Crs Restructured Accounts Outstanding Position As On 31.12.2013 .. contd Sector 31.12.2013 31.12.2013 31.12.2013 Accounts Amount % Sub Total 109 10143.33 SME 198 551 12 551.12 4 01 4.01 Micro Finance 9 142.03 1.03 Infrastructure 18 1221.92 8.91 Comm. Real Estate(CRE) 6 469.30 3.42 Trade 37 316.4
Slide 28: Asset Classification wise details of Restructured Accounts
Asset Classification wise details of Restructured Accounts Outstanding No. of Amount No. of Amount Asset Classification Accounts (INR Crs) % to Accounts (INR Crs) % to ((31.03.2013)) ((31.03.2013)) Total ((31.12.2013)) ((31.12.2013)) Total Standard Assets 1038 14678 96.00 733 12340.71 89.85 Sub-Stan
Slide 29: NPA Ratio
NPA Ratio 6 % 5.27 5 4 45 4.45 4.65 4.13 G Gross 4.02 Net 4 2 83 2.83 3 24 3.24 2.81 3 2.33 2.5 2 1 0 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 2929
Slide 30: NPA Sequential Movement
NPA SEQUENTIAL MOVEMENT INR Crs Dec 2012 Mar 2013 Jun 2013 Sep p 2013 Dec 2013 OPENING GROSS NPA 5930 6516 6608 7432 8202 ADD Slippages 1093 1788 1668 1309 1650 LESS 199 221 198 222 207 Cash Recovery 163 324 92 302 135 Upgradation 145 1151 554 15 342 Write Off Total Reduction in NPA 507 1696 844 539
Slide 31: Sector Wise Break Up of NPAs (Domestic)
Sector Wise Break Up of NPAs as of 31.12.2013 (Domestic) INR Crs Category NPA as of % to total Domestic 31.12.2013 NPA Agriculture 1089.37 13.86 Industry 4244.04 54.01 Services 1904.30 24.23 Personal 620.42 7.90 Total 7858.13 100.00 Of which hi h Commercial Real Estate 171.73 2.19 31
Slide 32: NPAs-Industry Wise-Domestic
NPAs-Industry Wise-Domestic INR Crs Sl. Industry NPA as of Outstanding under % of NPA to the % to the total No 31.12.2013 each category as respective Domestic NPA of 31.12.2013 outstanding 1 Cotton Textiles/Other Textiles 926.41 3881.34 23.87 8.29 2 Iron and Steel 651.77 10423.37 6.25 8.29 3 Infrast
Slide 33: Sectoral Slippages during the quarter ended 31.12.2013
Sectoral Slippages during the quarter ended 31.12.2013 Category Amount(In Crs) Agriculture 188 Services( Other than Commercial Real Estate) 237 Personal 192 Commercial Real Estate 18 Sub Total 635 Industry 0 Other Metals 0 Gem and Jewellery 108 Leather 36 Food Processing(Other than sugar,Vegetable O
Slide 34: Overseas NPAs
Overseas NPAs INR C Crs Dec 2012 Mar 2013 Dec 2013 Trade 348.21 469.78 790.75 Manufacturing 205.02 248.01 277.78 Real Estate 9 44 9.44 58 91 58.91 66 03 66.03 Others 43.73 210.55 175.39 TOTAL 606.40 987.25 1309.95 34
Slide 35: Profitability (Quarter Sequential)
Profitability (Quarter Sequential) INR Crs 1600 1452 Net Interest 1381 1398 1296 1316 Income 1400 Operating Profit 1200 1146 1000 Net Profit 1017 1054 800 961 600 791 400 126 133 200 116 59 75 0 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 3535
Slide 36: Profit - Summary
PROFIT - SUMMARY INR Crs Quarter Ending Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Interest Earned 5,333 5,227 5,403 5,669 5,737 Interest Expended 3 952 3,952 3 931 3,931 4 087 4,087 4 217 4,217 4 339 4,339 Net Interest Income 1,381 1,296 1,316 1,452 1,398 Non Interest Income 514 671 785 331 453 Total Opera
Slide 37: Profitability - Q3
PROFITABILITY - Q3 INR Crs Particulars Q3 12-13 Q3 13-14 Variance % TOTAL INCOME 5847 6190 5.87 Interest Earned 5333 5737 7 58 7.58 Other Income 514 453 -ve TOTAL EXPENDITURE 4830 5229 8.26 (excl. provisions and contingencies) Interest Expended 3952 4339 9.79 Operating Expenses 878 890 1.37 i)Paymen
Slide 38: Profit – Geographical Distribution – Q3
PROFIT – Geographical Distribution – Q3 INR Crs Particulars Q3 12-13 Q3 13-14 Variance % OPERATING PROFIT Global 1017 961 -ve Domestic 903 840 -ve Overseas 114 121 6 14 6.14 PROVISIONS Global 901 886 -ve Domestic 850 769 -ve Overseas 51 117 129.41 NET PROFIT Global 116 75 -ve Domestic 53 71 33.96 Ov
Slide 39: Profit - Net Interest Income
PROFIT - NET INTEREST INCOME Quarter Ending INR Crs Particulars Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Total Interest Income 5,333 5,227 5,403 5,669 5,737 Of which Int Income from Advances 4135 4,000 4,155 4,370 4,339 Int. Income from Investments 1123 1,122 1,173 1,247 1,285 Other Interest Income 75 105
Slide 40: Profit - Net Interest Income
PROFIT - NET INTEREST INCOME INR Crs Variance % Particulars Q3 12-13 Q3 13-14 Total Interest Income 5,333 5,737 7.58 Of which Int Income from Advances 4135 4,339 4.93 Int. Income from Investments 1123 1,285 14.42 Other Interest Income 75 113 50.67 Total Interest Expended 3952 4,339 9.79 Of which Int
Slide 41: Profit - Net Interest Income (9M)
PROFIT - NET INTEREST INCOME INR Crs Variance % Particulars 9m 12-13 9m 13-14 Total Interest Income 15 450 15,450 16 809 16,809 8 80 8.80 Of which Int Income from Advances 11,910 12,865 8.02 I t Income Int. I from f Investments I t t 3 250 3,250 3 707 3,707 14 06 14.06 Other Interest Income 290 237
Slide 42: Non Interest Income (Quarterly Comparison)
Non Interest Income (Quarterly Comparison) INR Crs Quarter Ending Particulars Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Total Non Interest Income 514 671 785 331 453 Of which Exchange / Commission 217 248 199 224 215 Profit on Sale of Investments 59 173 3 398 12 32 3 Profit on Revaln. Of Investments 0 0 -1
Slide 43: Non Interest Income - Q3
Non Interest Income -Q3 INR Crs Variance Particulars Q3 12-13 12 13 Q3 13-14 13 14 % Total Non Interest Income 514 453 -ve Of which Exchange / Commission 217 215 -ve Profit on Sale of Investments 59 32 -ve P fit on Revaln. Profit R l Of Investments I t t 0 0 0 Recovery in written off accounts 99 47
Slide 44: Non Interest Income - 9m
Non Interest Income -9m INR Crs Variance Particulars 9m 12-13 12 13 9m 13-14 13 14 % Total Non Interest Income 1,302 1,568 20.43 Of which Exchange / Commission 647 637 -ve Profit on Sale of Investments 139 443 218.71 P fit on Revaln. Profit R l Of Investments I t t -68 68 -105 105 -ve Recovery in wr
Slide 45: Net Profit (Quarterly Comparison)
NET PROFIT (Quarterly Comparison) INR Crs Quarter Ending Particulars Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 OPERATING PROFIT 1017.10 1145.88 1054.42 791.00 960.73 Total Provision 900.60 1087.28 928.62 658.45 885.66 Of which NPA 436.40 779.57 723.21 485.87 688.29 Counter cylcical Provisioning Buffer 50.0
Slide 46: Cost & Yield Ratios (Quarterly Comparison)
Cost & Yield Ratios (Quarterly Comparison) Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Avg. Cost of Deposits (%) 7.58 7.55 7.52 7.58 7.57 Avg. Yield on Advances(%) 10.53 9.90 9.89 10.08 9.99 Avg. Yield on Investments(%) 7.33 7.28 7.28 7.31 7.21 Avg. Cost of Funds(%) 7.27 7.18 7.14 7.15 7.40 Avg. Yield on Fun
Slide 47: Investments - Domestic
INVESTMENTS - Domestic INR Crs 31.03.2013 31.12.2013 AFS HTM HFT TOTAL AFS HTM HFT TOTAL SLR Investments 9659.71 44370.18 293.94 54323.83 10471.70 50170.24 126.70 60768.64 Of which Government. Securities 9599.31 44368.14 293.94 54261.39 10419.88 50167.13 126.70 60713.71 Other Approved 60.40 2.04 0.0
Slide 48: Investments – Foreign 31.12.2013
INVESTMENTS – Foreign -31.12.2013 INR Crs Book Value Total Type of Investment (Gross) Provision G - Sec 2386.76 0.85 Bonds - Others 55 85 55.85 0 00 0.00 MTN,FCCB 608.35 69.21 Shares 0.10 0.00 Joint Venture - Malaysia 193.20 0.00 Total 3244.26 70.06 4848
Slide 49: Capital Adequacy
CAPITAL ADEQUACY INR Crs Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Tier I Capital BASEL II 10,833.28 12,088.45 12,043.10 12,043.15 BASEL III 11,694.08 11,689.10 12,891.74 Tier II Capital BASEL II 6,386.66 6,277.58 6,305.20 6,145.37 BASEL III 6,208.58 6,056.31 6,052.06 Total Capital BASEL II 17,219.94 18,36
Slide 50: Productivity
PRODUCTIVITY 128.26 130 124 89 124.89 126 03 126.03 INR Crs 122.96 125.62 120 Business per Branch 110 100 90 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 14 12.88 13 12.69 12.65 12.17 12.33 Business per 12 Employee 11 10 9 8 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 50
Slide 51: Financial Inclusion
Financial Inclusion No Frills Savings Bank Accounts: As per the guidelines issued by Reserve Bank of India India, our branches open No-Frills Savings Bank Accounts under simplified Know Your Customer norms to bring the excluded segment of population into banking fold. General Purpose Credit Cards ar
Slide 52: Corporate Social Responsibility
Corporate Social Responsibility Financial Literacy seminars: Our Bank has conducted seminars on financial literacy in 25 centres in association with knowledge partner namely NITTE Education Trust, Mangalore On the occasion a booklet on “Financial Inclusion” was released that contains comprehensi
Slide 53: Corporate Social Responsibility
Corporate Social Responsibility Education scholarship is being extended to meritorious BPL girl students hailing from Sampoorna villages. Bank provides Rs.25000/- for setting up rural library in each village adopted by Bank. Bank encouraged Govt Agency, NGO, Voluntary Organisation, Farmers’ club
Slide 54: Thank You
Thank You 54
Indian Overseas Bank — Q3 FY2013-14 Earnings Presentation on 6ix