Indian Bank · NSE:INDIANB
Indian Bank — Q2 FY2018-19 Earnings Presentation
47 slides from Indian Bank's earnings presentation, Nov 9, 2018
Slide 1: Covering letter to stock exchanges
At Wan ati Corporate Office W Indian Bank Investor Services Cell FAX :28134075 254-260, Avvai Shanmugam Salai PHONE : 28134076 Royapettah E-mail : investorsindianbank.co.in Chennai 600 014 Ref : ISC /498/ 2018-19 09.11.2018 The Vice President The Manager National Stock Exchange of India Limited BSE
Slide 2: Press Release: Financial Results for Period Ended September 2018
a PRESS RELEASE FINANCIAL RESULTS FOR THE PERIOD ENDED SEPTEMBER 2018 The Board of Directors of Indian Bank approved the Bank’s results for the Quarter ended September 30, 2018 at their meeting held in Chennai on November 09th 2018. BUSINESS: Deposits grew YoY by 10.5% to touch `219523 Cr from `1986
Slide 3: H1 2018-19 Highlights (YoY)
a H1 2018 – 19 HIGHLIGHTS (YoY): OPERATIONAL EFFICIENCY: Interest Income grew by 13.23% (Up from `8296 Cr to `9393 Cr) Net Interest Income grew by 17.81% (Up from `3003 Cr to `3538 Cr) Net Interest Margin improved by 25 bps (Up from 2.79% to 3.04%) Fee Income : `572 crore, grew by 13.85% YoY against
Slide 4: Performance under Digital Channels
a CUSTOMER TOUCH POINTS: 9157 (2827 Domestic branches, 3 Overseas branches, 3579 ATM/BNAs and 2748 active Business Correspondents). PERFORMANCE UNDER DIGITAL CHANNELS – CURRENT YEAR Mobile banking transactions grew by 78% (13.21 Mio from 7.42 Mio). Internet banking transactions touched 6.75 Mio grow
Slide 5: Performance Analysis Q2 / H1 2018-19
PERFORMANCE ANALYSIS Q2 / H1 2018-19
Slide 6: Table of Contents
Table of Contents 3 5 Highlights Profitability 03 Performance - Snapshot 05 Net Interest Income(NII) & Operating Profit 04 Business - Snapshot 06 Net Profit 07 Interest Income/Expenses and NII 08 Other Income 09 Fee Income 10 Operating Expenses 11 12 Key Performance Indicators Business 11 Performanc
Slide 7: Performance - Snapshot
Performance - Snapshot ` in crore Parameter 30.09.2017 30.09.2018 YOY (%) Business 342875 391845 14.28 Deposits 198669 219523 10.50 Advances 144206 172322 19.50 CASA 71813 77048 7.29 Quarter Ended Half Year Ended Parameter YoY YoY 30.09.2017 30.09.2018 30.09.2017 30.09.2018 Profitability / Efficienc
Slide 8: Business - Snapshot
Business - Snapshot ` in crore Parameter 30.09.2017 30.06.2018 30.09.2018 YOY (%) Global Business 342875 374550 391845 14.28 Domestic 331068 362337 378385 14.29 Overseas 11807 12213 13460 14.00 Global Deposits 198669 210170 219523 10.50 Domestic 193022 204275 213247 10.48 Overseas 5647 5895 6276 11.
Slide 9: Net Interest Income (NII) and Operating Profit
Net Interest Income (NII) and Operating Profit ` in crore Quarter Ended Y-o-Y Half Year Ended Y-o-Y S No Components 30.09.2017 30.06.2018 30.09.2018 (%) 30.09.2017 30.09.2018 (%) 1 Interest Income 4159.56 4692.17 4700.84 13.01 8295.54 9393.01 13.23 2 Other income 714.59 439.80 428.32 -40.06 1366.66
Slide 10: Net Profit – Snapshot
Net Profit – Snapshot ` in crore Quarter Ended Half Year Ended S No Components Y-o-Y (%) Y-o-Y (%) 30.09.2017 30.06.2018 30.09.2018 30.09.2017 30.09.2018 1 Operating Profit 1375.60 1297.56 1191.04 -13.42 2628.00 2488.60 -5.30 2 Total Provisions 924.05 1088.24 1040.90 12.65 1804.05 2129.14 18.02 of w
Slide 11: Interest Income / Expenses and NII
Interest Income / Expenses and NII ` in crore Quarter Ended Half Year Ended Y-o-Y Y-o-Y S No Components 30.09.2017 30.06.2018 30.09.2018 (%) 30.09.2017 30.09.2018 (%) 1 Interest on loans 2902.33 3379.54 3392.03 16.87 5730.21 6771.57 18.17 2 Interest on investments 1210.45 1289.84 1277.25 5.52 2473.8
Slide 12: Other Income
Other Income ` in crore Quarter Ended Half Year Ended Components Y-o-Y (%) Y-o-Y (%) 30.09.2017 30.06.2018 30.09.2018 30.09.2017 30.09.2018 (A) Other Income (B+ C ) 714.59 439.80 428.32 -40.06 1366.66 868.12 -36.48 Of which (B) Profit on sale of investment 262.22 17.18 4.97 -98.10 565.54 22.15 -96.0
Slide 13: Fee Income
Fee Income ` in crore Quarter Ended Half Year Ended Components Y-o-Y (%) Y-o-Y (%) 30.09.2017 30.06.2018 30.09.2018 30.09.2017 30.09.2018 Fee Income 275.35 279.12 292.82 6.34 502.36 571.94 13.85 Of which Loan processing charges 47.50 43.21 39.52 -16.80 89.78 82.73 -7.85 Commission on Government busi
Slide 14: Operating expenses
Operating expenses ` in crore Quarter Ended Half Year Ended S No Components Y-o-Y (%) Y-o-Y (%) 30.09.2017 30.06.2018 30.09.2018 30.09.2017 30.09.2018 1 Staff Expenses 509.70 554.32 532.04 4.38 1020.69 1086.36 6.43 Of which : i) Salary 391.31 435.58 449.39 14.84 793.41 884.97 11.54 ii) Contribution
Slide 15: Performance Ratios
Performance Ratios % Annualized Quarter Ended Half Year Ended Parameters 30.09.2017 30.06.2018 30.09.2018 30.09.2017 30.09.2018 Cost of Deposits 5.34 5.15 5.24 5.43 5.19 Cost of Funds 4.59 4.57 4.60 4.67 4.59 Yield on Advances 8.60 8.57 8.40 8.66 8.47 Return on Assets (RoA) 0.79 0.33 0.23 0.73 0.28
Slide 16: Deposits
Deposits ` in crore Domestic Current account Savings Bank Deposits Term Deposits (Upto Rs 5 crore) Term Deposits (Above Rs 5 crore) 12315 11676 CASA : 12126 CASA : ` 77048 crore CASA : ` 77378 cr 64733 ( 36.13% ) ` 71813 cr 65702 37.88% YoY Growth 59687 7.29% 37.20% 102066 97397 99699 TD : ` 136199
Slide 17: Advances (Domestic)
Advances ( Domestic) ` in crore % to % to % to Gross Composition 30.09.2017 Gross 30.06.2018 30.09.2018 Gross Advances Advances Advances RAM Sector - Retail, Agriculture & MSME 77782 56.35 91179 57.69 96902 58.68 Corporate Sector 60264 43.65 66883 42.31 68236 41.32 Of which:(A) NBFC 11808 8.55 16968
Slide 18: Sectoral distribution of Advances - RAM Sector (Domestic)
Sectoral distribution of Advances - RAM Sector (Domestic) As on 30.09.2018 ` in crore RETAIL : `30686 Cr (18%)* 0.42% AGRICULTURE : `35442 Cr (21%)* MSME : `30774 Cr (19%)* Home Loans 3.05% 11% 5.92% Crop Loans (Including Mortgage Micro Enterprises Loans) 10.48% 24% Investment Credit Auto Loans 43%
Slide 19: Portfolio Exposure – Domestic Advances
Portfolio Exposure – Domestic Advances ` in crore % share to % share to Sector 30.09.2017 Gross 30.09.2018 Gross Advances Advances Infrastructure 23268 16.86 23908 14.48 Of which Power 9484 6.87 9210 5.58 Telecom 489 0.35 105 0.06 Roads 4874 3.53 4102 2.48 Other infrastructure 8421 6.10 10493 6.35 B
Slide 20: Power Sector Exposure
Power Sector Exposure ` in crore As on 30.09.2018 Sector Generation Distribution Transmission NPA * Investment Total Exposure FB NFB FB NFB FB NFB FB NFB STD NPA FB NFB Central Government Undertakings 453.70 83.04 536.74 0.00 State Government Undertakings 3263.68 269.49 1217.11 363.59 125.94 606.94
Slide 21: Power Sector Exposure: State – wise
Power Sector Exposure : State – wise ` in crore As on 30.09.2018 Generation & State State T ransmission Total DISCOMs Central/State Private 1 2 3 4 5 Andhra Pradesh 0.00 119.68 555.53 675.21 Assam 0.00 6.55 0.00 6.55 Chattisgarh 0.00 0.00 739.98 739.98 Delhi 0.00 484.27 317.28 801.55 Gujarat 181.39
Slide 22: CD Ratio & Market share
29.09.17 1.76 13.10.17 1.73 27.10.17 1.72 10.11.17 1.73 24.11.17 08.12.17 1.74 1.74 22.12.17 1.74 05.01.18 29.09.17 1.78 73.02 19.01.18 1.77 02.02.18 27.10.17 1.77 16.02.18 1.78 71.27 70.98 72.97 02.03.18 24.11.17 1.77 C D Ratio (%) 16.03.18 1.75 22.12.17 73.40 30.03.18 1.74 13.04.18 1.73 19.01.18 7
Slide 23: Investments – Domestic
Investments – Domestic ` in crore Composition 30.09.2017 30.06.2018 30.09.2018 Y-o-Y (%) Central Government Securities 44057 44284 43034 -2.32 State Government Securities 14194 13204 13105 -7.67 Other Approved Securities 36 24 24 -33.42 Debentures & Bonds 8497 8364 8935 5.15 Treasury Bills 0 0 295 S
Slide 24: Capital Adequacy
Capital Adequacy 13.16 12.77 Tier II 12.73 AT I 1.50 1.22 1.20 CET I 0.33 0.33 0.36 Bank’s CRAR upon plough back of half-yearly profit Tier I Tier I Tier I will be higher at 11.30 11.66 11.22 11.20 12.97% 11.55 11.53 30.09.2017 30.06.2018 30.09.2018 ` in crore Risk We ighte d 30.09.2017 30.06.2018 3
Slide 25: Capital – Equity
Capital – Equity Networth (` in crore) 16290 16075 Net worth increased by `977 crore 15827 15664 (6.38%) as on 30.09.2018 over 30.09.2017 15313 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Book value per share (`) 339.17 334.68 329.53 326.13 Book value per share increased by 318.82 `20.35 as on 30.09.2018 ove
Slide 26: Shareholding Pattern (as on 30.09.2018)
Shareholding Pattern (as on 30.09.2018) % of Holdings Resident/ Employees/ FI/FPI/FII, NRI, 2.32% Others , Mutual 7.22% 0.82% Funds, 7.91% Government of India, 81.73 % Pattern of Equity Shareholding Shareholder % Government of India 81.73 FI/FPI/FII 7.22 Mutual Funds 7.91 Resident/Employees/NRI 2.32
Slide 27: Balance Sheet – Snapshot
Balance Sheet – Snapshot ` in crore Liabilities 30.09.2017 31.03.2018 30.09.2018 Capital 480 480 480 Reserves & Surplus 17493 17968 18391 Deposits 198669 208294 219523 Borrowings 8129 19761 17494 Other Liabilities & Provisions 5187 6213 5754 Total 229958 252716 261642 Assets 30.09.2017 31.03.2018 30
Slide 28: Asset Quality
Asset Quality Parameter 30.09.2017 31.12.2017 31.03.2018 30.06.2018 30.09.2018 Gross NPA (` in crore) 9624 9595 11990 11828 12334 Net NPA (` in crore) 4748 4899 5960 5999 7060 Provision Coverage Ratio (%) 65.40 64.73 64.27 64.38 60.82 24/43
Slide 29: NPA Position – Sector wise
NPA Position – Sector wise ` in crore 30.09.2017 30.06.2018 30.09.2018 Gross NPA % to Gross NPA % to Gross NPA % to Sector Respective Respective Respective portfolio portfolio portfolio Retail Credit 418 1.71 681 2.33 713 2.32 Of which : Home Loan 202 1.63 278 1.88 298 1.91 Education Loan 165 5.15 3
Slide 30: NPA Position – Industry wise
NPA Position – Industry wise ` in crore 30.09.2017 30.06.2018 30.09.2018 Industry Gross NPA % to Gross NPA % to Gross NPA % to Respective Respective Respective portfolio portfolio portfolio Metal and Metal Products (Incl. Iron & Steel) 3609 67.86 3030 54.21 2424 42.77 Coal and Mining 265 59.23 293 5
Slide 31: Movement of NPA
Movement of NPA ` in crore S Quarter Ended Details No 30.09.2017 30.06.2018 30.09.2018 1 Gross NPA opening Balance 9653 11990 11828 ADDITIONS : Fresh Slippages 310 1038 1624 To old NPAs 30 352 567 Others 16 51 59 2 Sub-Total 356 1442 2250 LESS: Cash Recovery 146 698 231 Upgradation 77 236 44 Technic
Slide 32: Restructured Assets - Sector Wise
Restructured Assets - Sector Wise ` in crore 30.09.2017 30.06.2018 30.09.2018 Sector Outstanding Of which: Outstanding Of which: Outstanding Of which: Standard Standard Standard Retail 335 282 206 175 150 98 Of which Home Loan 128 122 73 68 52 43 Educational Loan 60 51 38 25 20 4 Agriculture 62 18 3
Slide 33: Restructured Assets - Major Industries
Restructured Assets - Major Industries ` in crore Outstanding % share to Of % share to Total Industry as on Total Which: Standard 30.09.2018 Restructured Standard Restructured Infra-Power 2252 45.37 622 42.01 of which Power discom - State Govt. Road 781 15.74 342 23.10 Port Iron & Steel 439 8.84 Con
Slide 34: Standard Restructured Assets – Movement
Standard Restructured Assets – Movement ` in crore QE 30.09.2017 QE 30.06.2018 QE 30.09.2018 S.No Details No Amount No Amount No Amount 1 Opening balance of Standard restructured accounts (Quarter beginning) 6823 4397.14 4402.00 2079.24 3613 2005.98 2 Fresh restructuring during the period 1 0.15 0.0
Slide 35: Stressed Assets - Sector wise
Stressed Assets - Sector wise ` in crore 30.06.2018 30.09.2018 Stressed Stressed Sector advances advances % to Restructured % to Respective GNPA Standard Stressed Gross Respective portfolio Advances Advances Advances portfolio A B C D=(B+C) E F =D/E % Retail 2.93 713 98 811 30686 2.64 Of which :Home
Slide 36: Movement of Stressed Assets
Movement of Stressed Assets ` in crore Details 30.09.2017 30.06.2018 30.09.2018 1. Gross Advances 144206 164381 172322 2. Gross NPAs 9624 11828 12334 3. Net NPAs 4748 5999 7060 4. Restructured Standard ( as per Revised RBI norms) 4349 2006 1482 5. Total Gross NPA plus Restructrued Standard (2+4) 139
Slide 37: Business Network
Business Network Branches - Region wise Population Group wise 30.09.2018 Eastern Region 10% Northern Region 30.09.2018 Total 11% 2830 Semi Urban, 788 North Eastern Region 2% Urban, 632 Rural, 728 Central Region 8% Metro, 679 Southern Region 60% Western Region 9% Overseas, 3 Branches (Global) (Nos.)
Slide 38: Head Count & Productivity Ratios
Head Count & Productivity Ratios In numbers Domestic Total : 20300 Total : 19498 Total : 20047 10959 11098 10647 8344 Officers 7841 7339 Clerks Sub-staff 1309 1200 1108 30.09.2017 30.06.2018 30.09.2018 ` in crore Parameters 30.09.2017 30.06.2018 30.09.2018 Business per employee 16.72 18.99 19.29 Gro
Slide 39: Digital Footprint
Digital Footprint igital Products for igital India Net Banking Users (Mio) Net Banking Transactions (Mio) 1.83 6.75 6.04 6.24 6.33 1.73 5.42 1.67 1.6 1.54 Q2 - FY 18 Q3 - FY 18 Q4 - FY 18 Q1 - FY 19 Q2 - FY 19 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Mobile Banking Users (Mio) Mobile Banking Transactions
Slide 40: Performance under 24*7 Banking
Performance under 24*7 Banking ATMs and BNAs (Nos) 3579 3399 3381 3202 3218 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 ATM Card Base (Mio) ATM - Volume of Transactions (Mio) 118.73 18.91 108.49 110.95 18.53 103.18 97.59 18.25 17.75 17.14 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Q2 - FY 18 Q3 - FY 18 Q4 - FY 18 Q1
Slide 41: Expanding Footprint - Point of Sale Terminals
Expanding Footprint - Point of Sale Terminals Volume of Transactions (in lakhs) ]YoY Growth : 51% 30.67 28.76 26.65 23.51 20.26 Q2-FY 18 Q3-FY18 Q4-FY18 Q1-FY 19 Q2-FY19 Value of Transactions (`in crore) ]YoY Growth : 52% 432.45 436.43 370.64 329.84 287.52 Q2-FY 18 Q3-FY18 Q4-FY18 Q1-FY 19 Q2-FY19 3
Slide 42: Financial Inclusion - Performance under PMJDY
Financial Inclusion - Performance under PMJDY Accounts (No.in lakhs) Financial Inclusion Deposits 32.77 33.63 33.82 (` in crore) 490.30 501.25 444.62 Sep-17 Jun-18 Sep-18 Sep-17 Jun-18 Sep-18 % of Zero Balance A/cs Overdrafts Sanctioned 14.85 (` in crore) 17.01 16.64 13.75 13.58 15.87 Sep-17 Jun-18
Slide 43: Financial Inclusion – Performance of Business Correspondents
Financial Inclusion – Performance of Business Correspondents Volume of transactions (in crore) Value of transactions (` in crore) 1898.29 0.97 1653.26 0.82 0.79 1313.50 Sep-17 Jun-18 Sep-18 Sep-17 Jun-18 Sep-18 39/43
Slide 44: Performance Under Government Schemes – Position as on 30.09.2018
Performance Under Government Schemes – Position as on 30.09.2018 21 .66 lakh polices Disbursement : ` 821.05 crore in 49941 accounts (HYE Sep18) 4.22 lakh enrolments 9.55 lakh policies PMJJBY & PMSBY : Performance to Potential (P2P) ratio as on 30.09.2018 : Above 80% -- 1st among all Banks APY: Pers
Slide 45: Awards & Accolades
Awards & Accolades Performance Award Atal "The Best Performing PSB" under APY for the FY 2017-18 awarded by APY Pension . aan Government of India 1st Prize : Excellence in performance among PSCBs under SHG Bank Linkage Programme in Tamil Nadu during 2017-18 National Award for Excellence during 2015-
Slide 46: 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. Except for the historical information contained herein, statements in this rele
Slide 47: Indian Bank
gat Fas Indian Bank