IDBI Bank Limited · NSE:IDBI
IDBI Bank — Q3 FY2018 Earnings Presentation
43 slides from IDBI Bank's earnings presentation, January 2018
Slide 1: Presentation to Analysts Q3 FY 2018
Bank. re Dost ry Preseniation to Analysis Q3 FY 2018
Slide 2: Financial Highlights Q3 FY18 vs Q3 FY17
Financial Highlights Q3 FY18 vs Q3 FY17 Operating Profit Growth 680% NII Growth 105% NIM at 2.16% up by 130 bps Operating expenses is reduced by 10% Recovery/ Up gradation increased to 973 Cr from 331 Cr CRAR increased to 11.93 % from 11.29% CASA Growth 27% CASA Share 36.14% Provision Coverage Ratio
Slide 3: Balance Sheet - Snapshot
Balance Sheet - Snapshot ` in Crore As at 31-Dec-16 30-Sep-17 31-Dec-17 LIABILITIES Capital 2 059 2 358 2 642 Reserve & Surplus 23 705 21 449 21 501 Deposits 2 98 194 2 41 566 2 36 978 Borrowings 74 287 52 201 63 775 Other Liabilities & Provisions 5 307 15 529 15 514 Total 4 03 552 3 33 103 3 40 410
Slide 4: Profit & Loss - Snapshot
Profit & Loss - Snapshot ` in Crore Quarter ended 9M ended YoY YoY Particulars Dec-16 Sep-17 Dec-17 Dec-16 Dec-17 Growth % Growth % Interest Income 6516 6004 5797 (11) 20805 17812 (14) Interest Expenses 5703 4347 4132 (28) 16686 13088 (22) Net Interest Income 813 1657 1666 105 4118 4725 15 Other Inc
Slide 5: Net Interest Income
Net Interest Income (` in Crore) Quarter ended 9M ended YoY YoY Sr.No Particulars Dec-16 Sep-17 Dec-17 Dec-16 Dec-17 Growth % Growth % 1 Interest Income (2+3+4) 6516 6004 5797 (11) 20805 17812 (14) 2 Interest on Advances 4392 4260 4046 (8) 14555 12374 (15) 3 Interest on Investments 1821 1464 1468 (1
Slide 6: Fee Income Breakup
Fee Income Breakup ` in Crore Quarter Ended 9M ended Particulars YoY YoY Dec-16 Sep-17 Dec-17 Growth Dec-16 Dec-17 Growth (%) (%) BG Commission 104 92 114 11 298 300 1 LC Commission 107 88 109 2 325 296 -9 Bills Commission 5 6 4 0 18 15 -17 Proc Fee & Incidental Charges 157 117 138 -13 604 425 -30 R
Slide 7: Income & Profitability YoY
Income & Profitability YoY ` in Crore Net Interest Income Operating Profit 1800 1 666 1600 1 420 1600 1400 1400 1200 1200 1000 1000 813 800 800 600 600 400 400 182 200 200 0 0 Qtr Dec 2016 Qtr Dec 2017 Qtr Dec 2016 Qtr Dec 2017 Net Interest Income Operating Profit 4 800 4 725 6 000 5 095 4 600 5 000
Slide 8: Income & Profitability (Sequential Qtr)
Income & Profitability (Sequential Qtr) ` in Crore Net Interest Income Operating Profit 1 668 3 000 2 798 1 666 1 666 2 500 1 664 2 000 1 662 1 660 1 500 1 420 1 658 1 657 1 000 1 656 500 1 654 1 652 Qtr Sep 2017 Qtr Dec 2017 Qtr Sep 2017 Qtr Dec 2017 8
Slide 9: Declining Operating Expenses (Quarterly)
Declining Operating Expenses (Quarterly) ` in Crore 1400 1219 1152 1200 1094 1000 800 693 722 687 600 526 430 407 400 200 0 Qtr Dec 16 Qtr Sep 17 Qtr Dec 17 Operating Expenses Other Operating expenses Staff Expenses 9
Slide 10: Declining Operating Expenses (9M ended)
Declining Operating Expenses (9M ended) ` in Crore 4500 4000 3836 3491 3500 3000 2500 2083 2150 2000 1753 1500 1341 1000 500 0 9M Dec 16 9M Dec 17 Operating Expenses Other Operating expenses Staff Expenses 10
Slide 11: Business Operating Profit
Business Operating Profit ` in Crore Business Operating Profit- Qtrly Business Operating Profit- 9M ended (Operating Profit Excluding Profit on sale of Non (Operating Profit Excluding Profit on sale of Non Core Assets) Core Assets) 1461 3071 804 2670 182 Dec 16 Sep 17 Dec 17 Dec 16 Dec 17 11
Slide 12: Snapshot on Investments (Profit on Sale/Reval)
Snapshot on Investments (Profit on Sale/Reval) ` in Crore Quarter ended 9M ended Particulars Dec-16 Jun-17 Sep-17 Dec-17 Dec-16 Dec-17 1. Profit/ (Loss) on sale of investments (net) 349 104 1749 680 1324 2532 A) Capital Gain from Strategic Sale 0 71 1337 616 518 2024 B) Profit from business operatio
Slide 13: Sale of Non Core Assets in 9M Dec 17
Sale of Non Core Assets in 9M Dec 17 CCIL Stake Sale in Jun17 SIDBI Stake Sale in Sep17 •Stake Sold: 10.03 % •Stake Sold: 2.50 % •Sale Proceeds: 1319.81 •Sale Proceeds: 75.13 Cr Cr •Capital Gain: 70.71Cr •Capital Gain: 1266.45 Cr SIDBI Stake Sale in CCIL Stake Sale in Sep17 Dec17 •Stake Sold: 4.89 %
Slide 14: Provisions & Contingencies
Provisions & Contingencies (` in Crore) Quarter Ended 9M Ended Particulars Dec-16 Sep-17 Dec-17 Dec-16 Dec-17 Depreciation on Investment 496 199 423 851 1 060 Provision for NPAs 3 136 2 862 3 650 5 905 8 404 -out of which Bad Debts 778 1586 4214 1859 6623 Written off (379) 156 176 252 431 Provision
Slide 15: Cost & Yield Ratio- Qtrly
Cost & Yield Ratio- Qtrly Qtr Dec 16 Qtr Sep 17 Qtr Dec 17 Qtr Dec 16 Qtr Sep 17 Qtr Dec 17 6.39% 6.55% 5.95% 5.65% 5.46% 5.64% Cost of Deposits Cost of Funds Qtr Dec 16 Qtr Sep 17 Qtr Dec 17 Qtr Dec 16 Qtr Sep 17 Qtr Dec 17 2.17% 2.16% 8.97% 8.69% 0.86% 8.12% Yield on Advances NIM 15
Slide 16: Cost & Yield Ratio- 9M
Cost & Yield Ratio- 9M 9M Dec 16 9M Dec 17 9M Dec 16 9M Dec 17 6.73% 6.62% 5.63% 5.86% Cost of Deposits Cost of Funds 9M Dec 16 9M Dec 17 9M Dec 16 9M Dec 17 9.08% 2.01% 1.58% 8.79% NIM Yield on Advances 16
Slide 17: Profitability Ratio
Profitability Ratio Quarter Ended 9M Ended Particulars Dec 16 Sep-17 Dec 17 Dec 16 Dec 17 Net Interest Margin 0.86% 2.17% 2.16% 1.58% 2.01% Return on Assets -2.32% -0.24% -1.83% -0.70% -1.03% Return on Equity -56.11% -7.36% -55.06% -15.49% -31.46% Cost of all liabilities 5.86% 5.29% 5.01% 5.96% 5.14
Slide 18: Balance Sheet Parameters
Balance Sheet Parameters ` in Crore Sr. Terminal level YoY variation No Parameters Dec 16 Sep-17 Dec 17 Amt. % 1 Global Deposits 298194 241566 236978 -61217 -20.53 CASA Share (%) 28.39 35.34 36.14 CASA Deposits 84660 85376 85643 984 1.16 Saving Deposits 49566 51488 52225 2658 5.36 Current Deposits 3
Slide 19: Balance Sheet Ratios
Balance Sheet Ratios Particulars Dec 16 Sep-17 Dec 17 Total Business [Dep. + Adv.] (Rs. In Cr) 516859 425133 420249 SB Deposits to Total Deposits (EOP) 16.62% 21.31% 22.04% Current Account Deposits to Total 11.77% 14.03% 14.10% Deposits(EOP) Time Deposits to Total Deposits(EOP) 71.61% 64.66% 63.86%
Slide 20: CASA-Low Cost Deposit
CASA-Low Cost Deposit CASA % CASA % Average 33.67 35.34 36.14 30.04 30.98 31.65 31.46 28.39 24.76 25.46 CASA % CASA % Average Dec 2016 Mar 2017 Jun 2017 Sep 2017 Dec 2017 Dec 2016 Mar 2017 Jun 2017 Sep 2017 Dec 2017 Share of CASA in Total Deposits exceeded 35% 20
Slide 21: Consistently Growing CASA Deposits
Consistently Growing CASA Deposits ` in Crore CASA Terminal Level CASA Average 85376 85643 75824 84660 74504 75274 84469 CASA 67368 CASA 81837 Terminal Average Level 64177 Dec 2016 Mar 2017 Jun 2017 Sep 2017 Dec 2017 Dec 2016 Mar 2017 Jun 2017 Sep 2017 Dec 2017 21
Slide 22: Declining Average Cost of Deposit
Declining Average Cost of Deposit Quarterly Average Cost of Deposit 8.34% 7.98% 8.19% 7.09% 6.39% 5.46% Quarterly Average Cost of Deposit Dec 12 Dec 13 Dec 14 Dec 15 Dec 16 Dec 17 22
Slide 23: Advances
Advances ` in Crore YoY variation Parameters Dec 16 Sep 17 Dec 17 Amt. % Global Gross Advances 232552 205670 204768 -27784 -11.95 Overseas Advances 27373 20800 19140 -8233 -30.08 Domestic Advances 205179 184870 185628 -19551 -9.53 Agri and Allied Activities 15891 16891 17639 1748 11.00 Industry (Mic
Slide 24: Retail Products Growth
Retail Products Growth ` in Crore Structured Retail As on As on As on March As on Assets March 17 Dec 2017 Agri & SME 17 Dec 2017 HL 28918 30994 Agri 18293 18358 LAP 8483 9824 Gold Loan 2954 3419 EL 763 826 KCC 6585 7017 PL 312 365 WHR 2078 1851 AL 1212 1482 Other Agri 6676 6071 Overdraft 3069 3499
Slide 25: Priority Sector
Priority Sector ` in Crore Dec-16 as Sep-17 as Dec-17 as Particulars Dec-16 Percentage Sep-17 Percentage Dec-17 Percentage of ANBC of ANBC of ANBC Actuals Actuals Actuals Actuals Actuals Actuals ANBC 225317 235929 226805 Priority Sector Advances (a+b+c) 84462 37.49 89315 37.86 93275 41.13 (a) Agricu
Slide 26: Top 20 Industry-wise Advances
Top 20 Industry-wise Advances ` in Crore Outstanding as on 31-Dec-17 % of Total Top 20 Industries Outstanding FB NFB Total advances (Fund based+Non fund based) Infrastructure of which: 48825 27428 76254 18.03% -Transport 15414 6974 22388 5.29% -Energy 27727 9689 37416 8.85% -Water and Sanitation 246
Slide 27: Investments
Investments ` in Crore Parameters Dec 16 Sep 17 Dec 17 SLR 94163 73170 78597 Non SLR 17034 11559 12482 Non SLR (Overseas) 0 489 479 Non SLR (SASF) 4293 3862 3766 Total Gross Investment 115490 89080 95324 Less: Aggregate provision for depreciation 2742 3179 3978 Net Investments 112748 85901 91346 Dec
Slide 28: Asset Quality
Asset Quality ` in Crore Particulars Dec 16 Sep-17 Dec-17 Gross Advances 232552 205670 204768 Gross NPAs 35245 51368 50622 Gross NPAs as % of Gross Advances 15.16% 24.98% 24.72% Total Provisions held (including NPV Loss & NCLT Prov) 14221 21879 21223 Net Advances 217925 183568 183271 Net NPAs 20949
Slide 29: NPA Movement
NPA Movement ` in Crore For the For the For the For 9M ended For 9M ended Particulars Quarter Sep Quarter Dec 16 Quarter Dec 17 Dec 16 Dec 17 17 Opening Balance 30134 50173 51368 24875 44753 Additions FTNPA 4708 2946 4127 13091 14060 Increase in existing NPA 1512 1322 312 2037 2338 Reduction Recover
Slide 30: Standard Stressed Assets
Standard Stressed Assets ` in Crore 31-December-2017 Categories No of cases Outstanding Restructured Standard Advances 194 1902 SDR 20 8529 S4A 12 1646 5/25 16 10,926 SMA 2 24168 3625 Total 24410 26628 30
Slide 31: Sector Wise Analysis
Sector Wise Analysis ` in Crore Oustanding GNPA % Restructured Advances Gross NPA to Total Standard Category (A) (B) GNPA Advances Agri and Allied Activities 17639 1960 3.87% 56 Industry (Micro, Small, 102050 40253 79.52% 10620 Medium & Large) Services 36313 6492 12.82% 285 Personal Loans 36959 529
Slide 32: NCLT Provisioning as on Dec 2017
NCLT Provisioning as on Dec 2017 Particulars Number of accounts referred under IBC 29 Outstanding as on Dec 31, 2017 (Rs in Cr.) 28770 Total Provision made as per RBI Guidelines, till Dec 31 17809 2017 (Rs in Cr.) 32
Slide 33: Restructured Standard Accounts Industry Wise
Restructured Standard Accounts Industry Wise Net Outstanding Industry Dec-16 Sep 17 Dec 17 ` in Crore Infrastructure 7562 6739 5483 Che micals and Che mical Products (Dye s, Paints, e tc.) 248 1700 1662 Rubbe r, Plastic and the ir Products 1747 1662 1615 All Engine e ring 551 620 635 Shipping 618 0
Slide 34: Capital Adequacy
Capital Adequacy ` in Crore Particulars Mar-17 Dec-17 CET 1 + CCB (Rs.) 15160 16463 11.93% AT 1 (Rs.) 5854 5854 10.70% Tier 1 Capital (Rs.) 21014 22317 2.96% Tier 2 Capital (Rs.) 7765 7370 2.89% Total Capital (Rs.) 28779 29687 RWA (Rs.) 268997 248861 2.35% 2.17% CET 1+CCB Ratio 5.64% 6.62% AT 1 2.17
Slide 35: Shareholding Pattern Dec 2017
Shareholding Pattern Dec 2017 % of Share Holding 0.27 8.19 13.75 FIs/Bank/Insurance GOI MF Non Institutions 77.79 The GoI has infused Rs. 2729 Cr on 29.12.2017. With this GoI Shareholding will increase to 80.96% 35
Slide 36: Digital Products
Digital Products Next Gen Payment Solutions for a Cashless environment For Individuals Internet Banking Mobile Banking App BHIM UPI App Passbook on Mobile Banking through Card Control App Basic Mobile Set Card payments Mobile Wallet For Merchants BHIM BHIM UPI Mobile Aadhaar POS POS 36
Slide 37: Digital Banking & Emerging Payments Products
Digital Banking & Emerging Payments Products As on March 17 As on Dec 17 No. of Volume of No. of Volume of Products Installations/ Installations/ Transactions Transactions Transactions Transactions Registrations Registrations (in lakh) (in crore) (in lakh) (in crore) ATMs actuals 3537 1410 NA 3807 1
Slide 38: Digital Banking & Emerging Payments Products
Digital Banking & Emerging Payments Products As on Dec 17 Products Installations / Registrations Digital PoS (Bharat QR) 4061 Mobile PoS 4007 eWallet (merchants) 6138 UPI App (merchants) 55388 BHIM Aadhaar Pay 2752 Mobile Passbook 494866 PayApt Users 290702 Abhay: Card Control App users 48922 38
Slide 39: Distribution Network
Distribution Network 2500 2000 1 2 2 2 1 378 453 443 443 1500 368 460 473 468 468 451 1000 586 586 596 596 524 500 373 421 408 418 418 0 FY 2015 FY 2016 FY 2017 Q2 FY18 Q3 FY18 Rural Semi-Urban Urban Metro Overseas 1927 Branches 3807 ATMs 58 e-Lounges 78 Retail Assets Centers 6 Regional Pr
Slide 40: Turnaround Strategy
Turnaround Strategy Focus Areas Improving CRAR • CRAR : 11.93% in Dec 17 V/s 10.70% in Mar 17 •CET 1 + CCB: 6.62% in Dec 17 V/s 5.64% in Mar 17 Improving Asset Quality • Declining Fresh Slippages from 11532 Cr in Qtr Mar 17 to 6543 Cr (4127 Cr on Net basis) in Qtr Dec 17. •Decline in Net Addition to
Slide 41: Way Forward
Way Forward 4 broad areas identified to drive IDBI Bank to improved profitability position Nishchay @ IDBI Bank Revenue Maximization Driving cost efficiency Manpower Planning Asset Utilization Improving Improving fees income Rental & Increasing sales utilization of real maintenance cost focus of wor
Slide 42: Significant developments
Significant developments It is the mission of the Bank to continuously strive to delight customers with our excellent service and comprehensive suite of best-in-class financial solutions. The Bank has been ranked no. 1 Bank in Customer Experience by Forrester Research Inc which was released in Dec
Slide 43: Thank You
Thank You |@ IDBI BANK | 43