Idbi Bank Limited · NSE:IDBI

Idbi Bank — FY2019-20 Earnings Presentation

55 slides from Idbi Bank's earnings presentation, May 30, 2020

  1. Slide 1: Cover letter to stock exchanges

    31r-gra3frf ei IDBI Bank Limited 144--0 : 311 31T : Regd. Office IDBI Tower, sockcrei, MIZ tag, WTC Complex, Cuffe Parade, CIN: L65190MH2004G01148838 tat - 400 005. - Mumbai 400 005. : (+91 22) 6655 3355, 2218 9111 TEL.: (+91 22) 6655 3355, 2218 9111 0),R1 : (+91 22) 2218 0411 : FAX (+9122) 2218 041

  2. Slide 2: Financial Results FY 2019-20 Analyst Presentation

    FINANCIAL RESULTS FY 2019-20 Analyst Presentation May 30, 2020 Page 1

  3. Slide 3: Content

    Content Highlights COVID 19 Preparedness Financial Performance Business Performance Treasury Operations Asset Quality Capital LIC Synergy Prompt Corrective Action Matrix Digital Banking & Financial Inclusion Subsidiaries Way Forward Page 2

  4. Slide 4: Highlights

    Highlights Page 3

  5. Slide 5: Major Highlights

    Major Highlights Bank reports PAT of Rs.135 crore for Q4 FY 2020, after reporting Net Loss for last 1 13 quarters Operating profit for Q4 FY 20 (Rs.1874 crore), YoY growth of 34% and QoQ 2 growth of 47% NII at Rs.2356 crore for Q4 FY 2020, YoY growth of 46% & QoQ growth of 54% and 3 NIM at 3.80% for

  6. Slide 6: Key Metrics for Q4 FY 2020

    Key Metrics for Q4 FY 2020 Profitability  Bank reports PAT of Rs.135 crore after 13 quarters.  PBT at Rs.290, increased by 104% YoY  Operating Profit for Q4 FY20 (Rs.1874 crore), up by 34% YoY and 47% QoQ  NII grew by 46% YoY and 54% QoQ.  NIM for Q4 FY 20 at 3.80% YoY improved by 154 bps YoY a

  7. Slide 7: Key Metrics for Q4 FY 2020

    Key Metrics for Q4 FY 2020 Asset Quality  Net NPA at 4.19%, down by 592 bps YoY and by 106 bps QoQ.  GNPA at 27.53%, up by 6 bps YoY and down by 119 bps QoQ.  PCR improves to 93.74%, up by 10.86% YoY and 133 bps QoQ.  Fresh slippages ratio reduced by 77 bps YoY and 110 bps QoQ  Credit Cost down

  8. Slide 8: COVID 19

    COVID 19 Page 7

  9. Slide 9: Preparedness during Lockdown

    Preparedness during Lockdown Employees Customers IT & Operations  Formed special committee for ensuring proper  Launched Special Loan Scheme for Self  To facilitate work from home, connectivity treatment and coordination with various local Help Groups in Kerela for COVID 19 to Virtual Private Net

  10. Slide 10: Financial Performance

    Financial Performance Page 9

  11. Slide 11: Profit & Loss

    Profit & Loss (Rs.Crore) Quarter ended Particulars Var (YoY) % Var (QoQ) % FY 19 FY 20 Var (YoY) % Mar-19 Dec-19 Mar-20 Interest Income 5463 4937 5598 2 13 22071 20825 (6) Interest Expenses 3854 3405 3242 (16) (5) 16166 13847 (14) Net Interest Income 1609 1532 2356 46 54 5906 6978 18 Other Income 11

  12. Slide 12: Total Income

    Total Income (Rs.Crore) Quarter ended Variance Variance Variance Particulars FY19 FY 20 Mar-19 Dec-19 Mar-20 (Y-o-Y) % (Q-o-Q) % (Y-o-Y) % Interest on Advances 3503 3092 3453 (1) 12 14381 13102 (9) Interest on Invest. 1700 1559 1553 (9) - 6633 6234 (6) including bal. with RBI & Other Inter Bank Fund

  13. Slide 13: Fee Based Income

    Fee Based Income (Rs.Crore) Other Income Quarter ended Variance Variance FY Ended Mar-19 Dec-19 Mar-20 (Y-o-Y) % (Q-o-Q) % Marc-19 Mar- 20 Variance % BG Commission 77 62 59 (23) (5) 317 276 (13) LC Commission 60 62 56 (7) (10) 288 236 (18) Bills Commission 8 4 4 (50) - 27 23 (15) Proc. Fee & Inciden

  14. Slide 14: Total Expenses

    Total Expenses (Rs.Crore) Quarter ended Variance Variance Particulars FY19 FY20 Variance % Mar-19 Dec-19 Mar-20 (Y-o-Y) % (Q-o-Q) % Interest paid on Deposits 3013 2718 2588 (14) (5) 12526 11096 (11) Interest paid on Borrowings 620 545 525 (15) (4) 2975 2258 (24) Interest on RBI / inter bank borrowin

  15. Slide 15: Provisions & Contingencies

    Provisions & Contingencies (Rs.Crore) Quarter ended Particulars Var. (YoY) Var (QoQ) FY 19 FY 20 Var. (YoY) Mar-19 Dec-19 Mar-20 Depreciation on Investment (350) 484 20 370 (464) 1604 1697 93 -Out of above MTM Gain/(Loss) 446 (384) 80 (366) 464 (1696) (1397) (299) Provision – NPAs 7233 440 (1511) (8

  16. Slide 16: Yield Ratios (cumulative)

    Yield Ratios (cumulative) Yield on Advances NIM 9.56% 2.61% 2.23% 2.25% 9.22% 2.13% 9.14% 2.03% 8.82% 8.62% FY 19 June 19 Sep 19 Dec 19 FY 20 FY 19 June 19 Sep 19 Dec 19 FY 20 Cost to Income (excl Gain on Sale of Non Cores Assets) 61.72% 58.48% 60.95% 56.95% 57.04% FY 19 June 19 Sep 19 Dec 19 FY 20

  17. Slide 17: Business Performance

    Business Performance Page 16

  18. Slide 18: Balance Sheet

    Balance Sheet (Rs.Crore) As at Mar-19 Dec-19 Mar-20 LIABILITIES Capital 7 736 10 381 10 381 Reserve & Surplus 29 875 23 508 23 644 Deposits 2 27 372 2 18 180 2 22 424 Borrowings 45 288 35 822 36 749 Other Liabilities & Provisions 10 013 10 054 6 744 Total 3 20 284 2 97 945 2 99 942 ASSETS Cash & Bal

  19. Slide 19: Business Performance

    Business Performance (Rs.Crore) Particulars Mar-19 Dec-19 Mar-20 Total Business [Deposit + Net Advance] 374162 347851 352266 Total Deposits 227372 218180 222424 CASA Share 42.54% 47.65% 47.74% CASA Deposits 96730 103966 106188 Saving Deposits 61414 61926 65658 SB Deposits to Total Deposits % 27.01%

  20. Slide 20: Cost of Deposit & Cost of Funds (Cumulative)

    Cost of Deposit & Cost of Funds (Cumulative) Cost of Deposits 5.44% 5.29% 5.23% 5.16% 5.08% FY 19 June 19 Sep 19 Dec 19 FY 20 Cost of Funds 5.78% 5.63% 5.58% 5.52% 5.44% FY 19 June 19 Sep 19 Dec 19 FY 20 Page 19

  21. Slide 21: Advances

    Advances (Rs.Crore) Parameters Mar-19 Dec-19 Mar-20 YoY var.(%) QoQ var.(%) Global Gross Advances 182097 172386 171690 (6) (4) - Corporate 88927 77692 75493 (15) (3) - Retail 93170 94694 96197 3 2 Corporate : Retail (Ratio) 49:51 45:55 44:56 Standard Gross Advance 132069 122883 124417 (6) 1 Global N

  22. Slide 22: Advances

    Advances (Rs.Crore) Structured Retail Assets Mar-19 Dec-19 Mar-20 Growth (YoY) (%) Growth (QoQ) (%) HL including LIP 37736 41594 42794 13 3 LAP 12774 12751 12712 - - AL 1983 2010 1954 (1) (3) EL 991 1059 1073 8 1 PL 551 591 606 10 2 Structured Retail Assets 54034 58006 59138 9 2 SRA Disbursements (f

  23. Slide 23: Priority Sector

    Priority Sector (Rs.Crore) Mar 19 Dec 19 Mar 20 Growth over Particulars Amount % of ANBC Amount % of ANBC Amount % of ANBC March-19 1 2 3 4 5 6 7 (8)=[(6)-(2)] ANBC 207885 188128 186090 Priority Sector Advances (a+b+c) 90686 43.62 78648 41.81 77586 41.69 (13100) (a) Agriculture (i+ii+iii) 37588 18.0

  24. Slide 24: Top 20 Industry – Advances

    Top 20 Industry – Advances (Rs.Crore) Outstanding as on Mar 31, 2020 Top 20 Industries FB NFB Total % of Total FB+NFB GNPA FTNPA Infrastructure 26,414 23,570 49,984 17.46% 9,114 50 -Energy 12,910 6,588 19,499 6.81% 2,545 4 -Transport 9,743 9,735 19,479 6.81% 5,956 45 -Communication 180 5,520 5,700 1

  25. Slide 25: Treasury Operations

    Treasury Operations Page 24

  26. Slide 26: Investments

    Investments (Rs.Crore) 2% 30% Category Mar-19 Dec-19 Mar-20 38% HFT HTM 55114 59270 57059 AFS AFS 35641 24652 24607 HTM HFT 2317 793 114 70% 60% Total 93073 84714 81780 AFS BREAKUP Mar-19 Mar-20 Parameter Mar-19 Dec-19 Mar-20 1665 SLR 72125 64169 61885 1920 Non SLR 21224 20534 19127 631 Non SLR (Ove

  27. Slide 27: Asset Quality

    Asset Quality Page 26

  28. Slide 28: Asset Quality

    Asset Quality PCR improved from 82.88 % (Mar 2019) to 93.74% (Mar 2020) (Rs.Crore) Particulars Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Gross Advances 182097 177415 176868 172386 171690 Gross NPAs 50028 51658 52053 49503 47272 Gross NPAs as % of Gross Advances 27.47 29.12 29.43 28.72 27.53 Total Provision

  29. Slide 29: NPA Movement

    NPA Movement (Rs.Crore) DESCRIPTION Q4 FY 19 FY 19 Q1 FY 20 Q2 FY 20 Q3 FY 20 Q4 FY 20 FY 20 Opening Balance 55360 55588 50028 51658 52053 49503 50028 Add: a. First Time NPA 1781 15281 3486 2059 2113 727 8384 b. Increase in existing NPA 430 2927 622 479 1007 531 2638 Less: c. Settled 927 6443 729 12

  30. Slide 30: Asset Quality

    Asset Quality 29.12% 29.43% 28.72% 27.47% 27.53% 10.11% 8.02% 5.97% 5.25% 4.19% Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Gross NPAs Net NPAs (Rs.Crore) 3486 3430 2059 2113 1781 1759 1785 1089 867 727 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Quarterly Fresh Slippages Recoveries & Upgradation Page 29

  31. Slide 31: NCLT – Summary

    NCLT – Summary (Rs.Crore) NCLT Admitted PCR % DA 3 and Loss DA 2, DA 1 & SSA TWO 46113 100% 100% 23850 26,053 99.63% 7405 99.35% 11,727 14858 8,333 RBI List 1 RBI List 2 Others Total RBI List 1 RBI List 2 Others Total Asset Class of NCLT Cases Filed But Not Admitted PCR% Filed By 24397 100% 24397 22

  32. Slide 32: SMA Position

    SMA Position (Rs.Crore) SMA 0 SMA 1 SMA 2 13465 10272 6295 7817 2865 7894 1306 1977 5972 2487 1887 3049 1229 2927 3033 4919 5283 3462 2990 1709 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Corporate Retail 5120 5235 5303 5279 8345 4039 5036 2514 2615 1933 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Total SMA includes

  33. Slide 33: Capital

    Capital ! @) IDBI BaNk | Page 32

  34. Slide 34: Capital Adequacy

    Capital Adequacy (Rs.Crore) Particulars March -19 June-19 Sep-19 Dec-19 March-20 CET 1+CCB (Rs.) 16340 10067 15559 16453 16736 AT 1 (Rs.) 413 413 413 330 49 Tier 1 Capital (Rs.) 16753 10480 15972 16783 16785 Tier 2 Capital (Rs.) 4497 4375 4129 3971 4344 Total Capital (Rs.) 21250 14854 20102 20754 21

  35. Slide 35: Shareholding Pattern

    Shareholding Pattern (Rs.Crore) LIC GOI Others LIC GOI Others 2% 3% 47% 51% 46% 51% Mar 2019 Mar 2020 Particulars Mar-19 Mar-20 Book Value (Rs. per share) Rs.39.92 Rs.26.51 Market Capitalisation Rs.36,090 Cr Rs.20,035 Cr 52 Weeks High/ Low (NSE) (Rs. per share) Rs.74.85 / Rs.41.30 Rs.47.45 / Rs.17.2

  36. Slide 36: IDBI-LIC Synergy

    IDBI-LIC Synergy Page 35

  37. Slide 37: Expanding Synergy Areas & Action

    Synergy Areas & Mission 100+ Mission 100+ : Phase-I (109 Points) Mission 100+ : Phase II (161 Points) Expanding Synergy Areas & Action MISSION 109 52 New Pointed Actions Pointed Actions As on Jun 2019: 72 Completed As on Mar 31, 2020: 120 Completed Unifying 28+ Cr LIC Customers & its Subsidiaries an

  38. Slide 38: Major Milestones Synergies with LIC during FY20

    Major Milestones Synergies with LIC during FY20  Insurance Premium Collection crossed Rs. 800 crore netting to a fee income of Rs. ~40 crore in FY20.  Special Products for LIC related Current and Saving Account launched. LIC CASA gains momentum during FY20.  LIC Premium Pay launched- This will fa

  39. Slide 39: Prompt Corrective Action Matrix

    Prompt Corrective Action Matrix Page 38

  40. Slide 40: Prompt Corrective Action (PCA) Matrix

    Prompt Corrective Action (PCA) Matrix (To be Updated) Risk Mar-20 Criteria Indicator Threshold 1 (T1) Threshold 2 (T2) Threshold 3 (T3) IDBI – Actual CRAR+CCB Complied <11.5% but >=9% <9% but >7.5% <7.5% 13.31% Capital (Breach (9%+2.5%) With of either CRAR or CET1 Ratio to trigger PCA) CET 1+CCB >=4

  41. Slide 41: Indicators on Parameters of PCA

    Indicators on Parameters of PCA Net NPA % CET 1 % CRAR % 10.54% 12.56% 13.31% 9.96% 11.58% 11.98% 10.11% 8.91% 9.27% 8.14% 8.02% 5.90% 5.97% 5.25% 4.19% Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Provision Coverage Ratio % Credit RWA to A

  42. Slide 42: Digital Banking & Financial Inclusion

    Digital Banking & Financial Inclusion Page 41

  43. Slide 43: Digital Frontrunners

    Digital Frontrunners Customer Induced Financial Transaction Analysis April to March 2020 FY 2018-19 FY 2019-20 1% UPI 2% 2% ATM Cash withdrawl 1% 3% 15% 4% Debit Card 7% 7% Branch Manual transaction 30% 8% Internet Banking 11% 85% customer 87% customer Branch Initiated Digital Transaction induced in

  44. Slide 44: Digital Frontrunners – Digital Offerings

    Digital Frontrunners – Digital Offerings The total number of Debit cards issued are 126 lakhs Processed 7.42 crores transactions at Ecom/ POS in the current Financial Year. Total users under UPI are 29.67 lakhs 1.64X YoY growth in UPI users base 2.67X YoY growth in the UPI transactions, processed 16

  45. Slide 45: Digital Frontrunners - Performance

    Digital Frontrunners - Performance Bank’s Summary of performance as per MeitY (as on February 29, 2020) Bank’s Rank % of Digital transaction Achievement Overall Score (Amongst 50 Banks & Financial Institutions) 106.26 67 (Categorised as “Good”) 13 Payment Acceptance Channels (as on March 31, 2020) 9

  46. Slide 46: Digital Frontrunners – Go Mobile+ and Internet Banking Application

    Digital Frontrunners – Go Mobile+ and Internet Banking Application Digital Offering  Availability of 24x7 banking, hence increasing the convenience for the customer;  Migration of customers from Branch channel to digital channel, hence increasing the cost efficiency of transaction for the Bank. 

  47. Slide 47: Digital Frontrunners – Go Mobile+ and Internet Banking Application

    Digital Frontrunners – Go Mobile+ and Internet Banking Application Services under Internet Banking  Personalized Dashboard with widgets.  Get all the account details linked to the user at one place.  Instant Payment & schedule recurring payments.  Bill Payments & Presentment with auto debit faci

  48. Slide 48: Financial Inclusion

    Financial Inclusion PMJDY Accounts Aadhar Seeding under PMJDY 6.48 (Lakhs) Total PMJDY A/c (lakh) RuPaycards issued (Lakhs) 7.07 8.43 8.43 8.43 Sub Service Areas (Number 490 8.42 8.41 Villages Covered (Number) 565 Transactions through Individual Business Correspondent (BCs) Mar, 2019 Jun, 2019 Sep,

  49. Slide 49: Financial Inclusion

    Financial Inclusion Sanction Outstanding 2265 1836 1702 1082 302 162 Shishu (No. of A/c - 97672) Kishor (No. of A/c - 79901) Tarun (No. of A/c - 28490) Enrolment under Social security Scheme as on 31st March 2020 APY Subscription (in lakh) PMSBY Enrolments (in lakh) 2.33 PMJJBY Enrolments (in lakh)

  50. Slide 50: Subsidiaries

    Subsidiaries Page 49

  51. Slide 51: Subsidiaries

    Subsidiaries (Rs.Crore) Income PAT RoA Net Worth Name of Company % Holding Line of Activity FY 2020 FY 2020 FY 2020 FY 2020 71.77 -9.67 -2.98% 297.96 IDBI Capital Market & Securities Ltd 100 Merchant Banking & Retail Broking (96.70) (0.26) (0.08%) (309.74) 99.09 9.07 12.31 % 62.53 IDBI Intech Ltd 10

  52. Slide 52: Way Forward

    Way Forward Page 51

  53. Slide 53: Looking Ahead

    Looking Ahead Weak Global Increasing low business and cost deposits and uncertain Sufficiently Build a Retail comfortable environment Capitalized Bank Bank of future liquidity Page 52

  54. Slide 54: Looking Ahead : Focus Area

    Looking Ahead : Focus Area Exiting PCA – Focus on Improving fee Compliance of recovery and Income through PCA parameters LIC Synergy and Risk contained/ close monitoring on sustainable productivity mitigated growth of portfolio to basis enhancement after PCA Exit reduce delinquency Page 53

  55. Slide 55: Thank You

    THANK YOU

IDBI Bank — FY2019-20 Earnings Presentation on 6ix