Idbi Bank Limited · NSE:IDBI
Idbi Bank — Q3 FY2020 Earnings Presentation
49 slides from Idbi Bank's earnings presentation, Feb 11, 2020
Slide 1: Cover letter to stock exchanges
311i Jiiift s IDBI Bank Limited tiFd comiriel : 31Tite311Dior, Regd. Office : IDBI Tower, scueg. crti, crAn 1 s, WTC Complex, Cuffe Parade, CIN: L65190MH2004G01148838. aU - 400 005. Mumbai - 400 005. Z~ciLt) 4 : (+91 22) 6655 3355, 2218 9111 TEL.: (+91 22) 6655 3355, 2218 9111 0-t4: (+91 22) 2218 04
Slide 2: Financial Results Q3 FY 2020 Analyst Presentation
FINANCIAL RESULTS Q3 FY 2020 Analyst Presentation February 11, 2020 Page 1
Slide 3: Content
Content Highlights Financial Performance Business Performance Treasury Operations Asset Quality Capital Prompt Corrective Action Matrix Digital Banking & Financial Inclusion Subsidiaries IDBI-LIC Synergy Page 2
Slide 4: Highlights
Highlights Page 3
Slide 5: Major Highlights
Major Highlights 1 Bank reports PBT of Rs.756 crore, after 12 quarters, Bank Shifts to new Tax Regime. 2 One time hit of Rs.6273 crore on account of DTA reversal Bank would have reported net profit of Rs.418 crore instead of loss of Rs.5763 crore, 3 if continued under old Tax Regime Bank recovers Rs
Slide 6: Performance Snapshot
Performance Snapshot YoY QoQ 12.56% 12.56% Capital Adequacy 525% bps 58 bps 12.51% 11.98% 29.67% 29.43% Gross NPA -95 bps -71 bps 28.72% 28.72% 14.01% 5.97% Net NPA -876 bps -72 bps 5.25% 5.25% 92.41% 92.41% Provision Coverage Ratio 17.20% 1.16% 75.21% 91.25% Rs.2211 Cr Rs.2113 Cr Slippages -4% 3% R
Slide 7: Performance Snapshot
Performance Snapshot YoY QoQ Rs.1532 Cr Rs.1631 Cr NII 25% 13% -6% Rs.1357 Cr Rs.1532 Cr 2.27% 2.33% NIM 39 bps -6 bps 1.88% 2.27% Rs.1278 Cr Rs.1278 Cr Operating Profit 76% 27% Rs.725 Cr Rs.1009 Cr Profit - Rs.756 Cr Profit - Rs.756 Cr Profit Before Tax 113% 116% Loss - Rs.5805 Cr Loss - Rs.4632 Cr
Slide 8: Performance Snapshot
Performance Snapshot YoY QoQ Rs.1,52,520 Cr Rs.1,32,718 Cr Total Advances (Net) 25% -15% -2% Rs.1,29,671 Cr Rs.1,29,671 Cr Rs.2,29,966 Cr Rs.2,31,830 Cr Total Deposits -5% -6% Rs.2,18,180 Cr Rs.2,18,180 Cr Rs.94,694 Cr Rs.94,694 Cr Retail Advances 7% 1% Rs. 88,780 Cr Rs.93,692 Cr Rs.58,006 Cr Rs.58,
Slide 9: Financial Performance
Financial Performance Page 8
Slide 10: Profit & Loss
Profit & Loss (Rs.Crore) Quarter ended Particulars Var (YoY) % Var (QoQ) % 9M FY 19 9M FY 20 Var (YoY) % FY19 Dec-18 Sep-19 Dec-19 Interest Income 5493 5198 4937 (10) (5) 16608 15227 (8) 22071 Interest Expenses 4136 3567 3405 (18) (5) 12312 10605 (14) 16166 Net Interest Income 1357 1631 1532 13 (6)
Slide 11: Total Income-Quarterly
Total Income-Quarterly (Rs.Crore) Quarter ended Variance Variance Particulars FY19 Dec-18 Sep-19 Dec-19 (Y-o-Y) % (Q-o-Q) % Interest on Advances 3564 3359 3092 (13) (8) 14381 Interest on Invest. 1678 1552 1559 (7) 0.45 6633 including bal. with RBI & Other Inter Bank Funds Other Interest Income 251 2
Slide 12: Fee Based Income-Quarterly
Fee Based Income-Quarterly (Rs.Crore) Other Income Quarter ended Variance Variance FY19 Dec-18 Sep-19 Dec-19 (Y-o-Y) % (Q-o-Q) % BG Commission 72 98 62 (15) (37) 317 LC Commission 55 58 62 14 8 288 Bills Commission 9 7 4 (58) (46) 27 Proc. Fee & Incidental Charges 100 93 136 35 46 519 Remittances Fe
Slide 13: Total Expenses-Quarterly
Total Expenses-Quarterly (Rs.Crore) Quarter ended Variance Variance Particulars FY19 Dec-18 Sep-19 Dec-19 (Y-o-Y) % (Q-o-Q) % Interest paid on Deposits 3157 2890 2718 (14) (6) 12526 Interest paid on Borrowings 736 597 545 (26) (9) 2975 Interest on RBI / inter bank borrowings 242 79 142 (41) 80 665 T
Slide 14: Provisions & Contingencies
Provisions & Contingencies (Rs.Crore) Quarter Ended FY ended Particulars Dec-18 Sep-19 Dec-19 FY19 Depreciation on Investment 817 1011 484 1604 -Out of above MTM Gain/(Loss) (763) (911) (384) (1696) Provision - NPAs 5075 3545 440 22392 Provision – Standard Assets (135) (220) 68 (28) Provision - Rest
Slide 15: Yield Ratios (cumulative)
Yield Ratios (cumulative) Yield on Advances NIM 9.22% 2.25% 9.14% 2.23% 2.13% 8.82% 8.73% 2.03% 1.95% 8.62% Dec 18 FY 19 June 19 Sep 19 Dec 19 Dec 18 FY 19 June 19 Sep 19 Dec 19 Cost to Income (excl Gain on Sale of Non Cores Assets) 61.72% 60.23% 60.95% 58.48% 56.95% Dec 18 FY 19 June 19 Sep 19 Dec
Slide 16: Business Performance
Business Performance Page 15
Slide 17: Balance Sheet
Balance Sheet (Rs.Crore) As at Dec-18 Sep-19 Dec-19 LIABILITIES Capital 6 909 7 736 10 381 Reserve & Surplus 28 582 22 616 23 508 Deposits 2 29 966 2 31 830 2 18 180 Borrowings 53 777 30 206 35 822 Other Liabilities & Provisions 13 192 21 275 10 054 Total 3 32 426 3 13 663 2 97 945 ASSETS Cash & Bal
Slide 18: Business Performance
Business Performance (Rs.Crore) Particulars Dec-18 Sep-19 Dec-19 Total Business [Deposit + Net Advance] 382486 364547 347851 Total Deposits 229966 231830 218180 CASA Share 38.36% 44.87% 47.65% CASA Deposits 88206 104027 103966 Saving Deposits 57486 60871 61926 SB Deposits to Total Deposits % 25.00%
Slide 19: Cost of Deposit & Cost of Funds (Cumulative)
Cost of Deposit & Cost of Funds (Cumulative) Cost of Deposits 5.45% 5.44% 5.29% 5.23% 5.16% Dec 18 FY 19 June 19 Sep 19 Dec 19 Cost of Funds 5.80% 5.78% 5.63% 5.58% 5.52% Dec 18 FY 19 June 19 Sep 19 Dec 19 Page 18
Slide 20: Advances
Advances (Rs.Crore) Parameters Dec-18 Sep-19 Dec-19 YoY var.(%) QoQ var.(%) Global Gross Advances 186580 176868 172386 (8) (3) - Corporate 97800 83176 77692 (21) (7) - Retail 88780 93692 94694 (7) 1 Corporate : Retail (Ratio) 52:48 47:53 45:55 Standard Gross Advance 131220 124816 122883 (6) (2) Glob
Slide 21: Advances
Advances (Rs.Crore) Structured Retail Assets Dec-18 Sep-19 Dec-19 YoY var.(%) QoQ var.(%) HL 35379 39944 41594 18 4 LAP 11925 12761 12751 7 - EL 966 1058 1059 10 - PL 502 572 591 17 3 AL 1899 1985 2010 6 1 Structured Retail Assets 50671 56320 58006 14 3 SRA Disbursements (for Qtr) 4586 3808 4190 (9)
Slide 22: Priority Sector
Priority Sector (Rs.Crore) Dec18 Mar 19 Dec19 Growth over Particulars Amount % of ANBC Amount % of ANBC Amount % of ANBC March-19 1 2 3 4 5 6 7 (8)=[(6)-(4)] ANBC 210298 207885 188128 Priority Sector Advances (a+b+c) 86523 41.14 90686 43.62 78648 41.81 (12038) (a) Agriculture (i+ii+iii) 35614 16.94
Slide 23: Top 20 Industry – Advances
Top 20 Industry – Advances (Rs.Crore) Outstanding as on Dec 31, 2019 Top 20 Industries FB NFB Total % of Total FB+NFB GNPA FTNPA Infrastructure 28,970 22,581 51,550 17.97% 11507 235 -Energy 15,774 6,691 22,465 7.83% 4969 59 -Transport 10,587 8,780 19,367 6.75% 5929 174 -Communication 205 5,349 5,554
Slide 24: Treasury Operations
Treasury Operations Page 23
Slide 25: Investments
Investments (Rs.Crore) 2% 1% Category Dec-18 Sep-19 Dec-19 34% 29% HTM 60570 59129 59270 HFT AFS 31977 26906 24652 AFS HFT 1473 2746 793 HTM Total 94021 88781 84714 64% 70% AFS BREAKUP Dec-18 Dec-19 1255 2558 Parameter Dec-18 Sep-19 Dec-19 SLR 75990 67544 64169 722 Non SLR 19827 20708 20534 Non SLR
Slide 26: Asset Quality
Asset Quality Page 25
Slide 27: Asset Quality
Asset Quality PCR improved from 75.21% (Dec 2018) to 92.41% (Dec 2019) (Rs.Crore) Particulars Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Gross Advances 186580 182097 177415 176868 172386 Gross NPAs 55360 50028 51658 52053 49503 Gross NPAs as % of Gross Advances 29.67 27.47 29.12 29.43 28.72 Total Provisions
Slide 28: NPA Movement
NPA Movement (Rs.Crore) DESCRIPTION Q3 FY 19 Q4 FY 19 FY 19 Q1 FY 20 Q2 FY 20 Q3 FY 20 Opening Balance 60875 55360 55588 50028 51658 52053 Add: a. First Time NPA 2211 1781 15281 3486 2059 2113 b. Increase in existing NPA 784 430 2927 622 479 1007 Less: c. Settled 3440 927 6443 729 1234 3136 d. Upgra
Slide 29: Asset Quality
Asset Quality 29.67% 29.12% 29.43% 28.72% 27.47% 14.01% 10.11% 8.02% 5.97% 5.25% Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Gross NPAs Net NPAs (Rs.Crore) 3586 3486 3430 2211 2113 2059 1781 1759 1089 867 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Quarterly Fresh Slippages Recoveries & Upgradation Page 28
Slide 30: NCLT – Summary
NCLT – Summary (Rs.Crore) NCLT Admitted PCR % DA 3 and Loss DA 2, DA 1 & SSA TWO 39754 100% 100% 22169 99.78% 19540 99.56% 7413 11837 8377 10172 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 21926 21926 100% 19496
Slide 31: SMA Position
SMA Position (Rs.Crore) SMA 2 SMA 1 SMA 0 13465 13057 10272 2646 7894 2865 6295 7343 1977 1306 5816 2488 1887 2723 2927 4919 5283 4595 3314 2990 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Corporate Retail 13057 13465 10272 5120 6662 7343 7894 5235 5291 5279 8345 6395 5037 2052 2615 Dec-18 Mar-19 Jun-19 Sep-
Slide 32: Capital
Capital Page 31
Slide 33: Capital Adequacy
Capital Adequacy (Rs.Crore) Particulars Dec-18 March -19 June-19 Sep-19 Dec-19 CET 1+CCB (Rs.) 17746 16340 10067 15559 16453 AT 1 (Rs.) 684 413 413 413 330 Tier 1 Capital (Rs.) 18430 16753 10480 15972 16783 Tier 2 Capital (Rs.) 5398 4497 4375 4129 3971 Total Capital (Rs.) 23828 21250 14854 20102 207
Slide 34: Shareholding Pattern
Shareholding Pattern (Rs.Crore) LIC GOI Others LIC GOI Others 4% 2% 44% 47% 51% 52% Dec 2018 Dec 2019 Particulars Dec-18 Dec-19 Book Value/ Share Rs.44.48/- Rs.26.33/- Market Capitalisation Rs.42316 Cr Rs.38408 Cr 52 Weeks High/ Low (NSE) Rs.91.50/-/ Rs.47.00/- Rs.65.75/- /Rs.23.65/- Closing Price (
Slide 35: Prompt Corrective Action Matrix
Prompt Corrective Action Matrix Page 34
Slide 36: Prompt Corrective Action (PCA) Matrix
Prompt Corrective Action (PCA) Matrix Risk Dec-19 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% 12.56% Capital (Breach (9%+2.5%) With of either CRAR or CET1 Ratio to Complied trigger PCA) CET 1+CCB >=4.875% b
Slide 37: Indicators on Parameters of PCA
Indicators on Parameters of PCA CET 1 % CRAR % Net NPA % 12.51% 11.58% 12.56% 14.01% 9.96% 11.98% 9.32% 8.91% 9.27% 8.14% 10.11% 5.90% 8.02% 5.97% 5.25% Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Provision Coverage Ratio % Credit RWA to A
Slide 38: Digital Banking & Financial Inclusion
Digital Banking & Financial Inclusion Page 37
Slide 39: Digital Frontrunners
Digital Frontrunners Customer Induced Financial Transaction Analysis April to December 2019 FY 2018-19 FY 2019-20 2% 2% UPI 2% 4% 1% ATM Cash withdrawl 3% 12% 6% 7% Debit Card 28% 8% Branch Manual transaction 12% 83% Customer 86% Customer Induced Induced Internet Banking transaction transaction rout
Slide 40: Digital Frontrunners – Digital Offerings
Digital Frontrunners – Digital Offerings The total number of Debit cards issued are 124 lakhs Processed 5.67 crores transactions at Ecom/ POS in the current Financial Year. Total users under UPI are 26.29 lakhs 1.73X YoY growth in UPI users base 3.11X YoY growth in the UPI transactions, processed 11
Slide 41: Digital Frontrunners - Performance
Digital Frontrunners - Performance Bank’s Summary of performance as per MeitY (as on December 31, 2019) % of Digital transaction Achievement Overall Score Bank’s Rank 101.79 71 (Categorised as “Good”) 8 Payment Acceptance Channels (as on December 31, 2019) 85260 34569 29021 3683 2244 ATMs/CDMs Physi
Slide 42: Digital Frontrunners – Go Mobile+ Application
Digital Frontrunners – Go Mobile+ Application Digital Offering Availability of 24x7 banking, hence increasing the convenience for the customer. Linking of other Bank accounts through UPI in mobile Banking application. Higher productivity of Staff. Migration of customers from Branch channel to
Slide 43: Financial Inclusion
Financial Inclusion PMJDY Accounts Aadhar Seeding under PMJDY 6.48 (Lakhs) Total PMJDY A/c (lakh) RuPaycards issued (Lakhs) 7.08 8.43 8.43 8.42 8.41 Sub Service Areas (Number 490 8.37 Villages Covered (Number) 565 Transactions through Individual Business Correspondent (BCs) Dec. 2018 Mar, 2019 Jun,
Slide 44: Financial Inclusion
Financial Inclusion Sanction Outstanding (Rs.Crore) 2620 2008 2014 1217 316 173 Shishu (No. of A/c - 104685) Kishor (No. of A/c - 84116) Tarun (No. of A/c - 33377) Enrolment under Social security Scheme as on 31st Dec 2019 APY Subscription (in lakh) PMSBY Enrolments (in lakh) PMJJBY Enrolments (in l
Slide 45: Subsidiaries
Subsidiaries Page 44
Slide 46: Subsidiaries
Subsidiaries (Rs.Crore) Income PAT RoA Net Worth Name of Company % Holding Line of Activity 9 M 2019 9 M 2019 9 M 2019 9 M 2019 52.94 -3.90 -1.17% 305.78 IDBI Capital Market & Securities Ltd 100 Merchant Banking & Retail Broking (69.58) (16.25) (4.55%) (328.68) 70.72 5.33 7.93% 58.65 IDBI Intech Ltd
Slide 47: IDBI-LIC Synergy
IDBI-LIC Synergy Page 46
Slide 48: Expanding Synergy Areas & Action
Synergy Areas & Mission 100+ Mission 100+ : Phase-I (109 Points) Mission 100+ : Phase II (161Points) Expanding Synergy Areas & Action MISSION 109 52 New Pointed Actions Pointed Actions As on June 2019:- 72 Completed As on January 2020:-112 Completed Unifying 29 Cr LIC Customers & its Subsidiaries an
Slide 49: Thank You
THANK YOU