City Union Bank Limited · NSE:CUB
City Union Bank — Investor Presentation (September 2020)
53 slides from City Union Bank's investor presentation, September 2020
Slide 1: September 2020
SEPTEMBER 2020
Slide 2: Disclaimer
Disclaimer No representation or warranty, express or implied is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of such information or opinions contained herein. The information contained in this presentation is only current as of its date. Certain
Slide 3: Table of Contents
TABLE OF CONTENTS 4 10 15 Overview Performance Highlights – Financial Performance & September 2020 Business Profile 39 46 48 50 Covid Outbreak Branch Network Shareholding Pattern Corporate Governance 3
Slide 4: Overview
OVERVIEW 4
Slide 5: Overview Facts & Figures
OVERVIEW City Union Bank Ltd., the oldest Private Sector Bank in India, was founded on October 31, 1904 and is headquartered at Kumbakonam,Tamil Nadu, India. The main focus of the Bank – lending to MSME, Retail / WholesaleTrade Wholesale with granular asset profile including providing short term and
Slide 6: Key Milestones
KEY MILESTONES Rights Issue @ 1 : 4- Bonus Issue @ Amalgamation of ‘TheCity Entered into Preferential allotment to reward the existing 1 : 10 - Forward Bank Limited’ & TCS agreement withTCS for equity shares shareholders & employees rewarded Scheduled bank since ‘The Union Bank Limited’ for core ban
Slide 7: A Specialized Banking Model Aligned to Target Segment – SME / MSME
CITY UNION BANK - A SPECIALIZED BANKING MODEL ALIGNED TO TARGET SEGMENT – SME / MSME SME / MSME Prudent Risk Invested in Purely retail focus Management Robust Infrastructure Liability Franchise SME/MSME specialized SME exposures’ result in Comprehensive No Certificate of Deposit business model focus
Slide 8: Competitive Advantages
COMPETITIVE ADVANTAGES NETWORK STRONG TRACK RECORD Pan India presence with 700 branches Continuous profitability and dividend payout in all Strong presence in South India (628 branches) 115+ years of operations of which 485 are in Tamil Nadu alone Business growth of 20%+ CAGR in last 10 years ROBUST
Slide 9: Credit Rating
CREDIT RATING ICRA has assigned “AA-” for Long Term - issuers with this rating are considered to have “High Degree of Safety” regarding timely servicing of financial obligations. “A1+-” for Certificate of Deposits (CD) - issuers with this rating are considered to have “Strong Degree of Safety” regar
Slide 10: Performance Highlights – September 2020
PERFORMANCE HIGHLIGHTS – SEPTEMBER 2020 10
Slide 11: Q2 FY 2021 Performance – A Snapshot
Q2 FY 2021 PERFORMANCE – A SNAPSHOT Deposits increased by 2% from Rs.404 Bn to Rs.414 Bn Y-o-Y Advances registered a growth of 6% from Rs.333 Bn to Rs.354 BnY-o--Y Total business grown by 4% from Rs.737 Bn to Rs.769 Bn Y-o-Y Gross Profit increased by 11% to Rs.3,847 Mn from Rs.3,465 Mn (Q2-Vs-Q2) (Q
Slide 12: Q2 FY 2021 vs Q2 FY 2020 Performance – A Snapshot
Q2 FY 2021 VS Q2 FY 2020 PERFORMANCE – A SNAPSHOT (in INR Mn) 414,206 354,368 768,574 106,447 2% 6% 4% 7% 404,513 332,793 737,306 99,882 Deposits Advances Total Business CASA 3,847 1,577 4,752 40.31% 11% -ve 15% % 3,465 1,935 4,115 42.87% Gross Profit Net Profit Net Interest Cost to Income Income 1.
Slide 13: H1 FY 2021 vs H1 FY 2020 Performance – A Snapshot
H1 FY 2021 VS H1 FY 2020 PERFORMANCE – A SNAPSHOT (in INR Mn) 414,206 354,368 768,574 106,446 2% 6% 4% 7% 404,513 332,793 737,306 99,882 Deposits Advances Total Business CASA 7,407 3,117 9,121 40.36% 6% -Ve 10% % 6,979 3,792 8,284 41.19% Gross Profit Net Profit Net Interest Cost to Income Income 1.2
Slide 14: FY 2020 vs FY 2019 Performance – A Snapshot
FY 2020 VS FY 2019 PERFORMANCE – A SNAPSHOT (in INR Mn) 408,325 345,762 754,087 101,970 6% 5% 5% 5% 384,480 330,652 715,132 96,982 Deposits Advances Total Business CASA 13,414 4,763 16,752 43.04% 8% -ve 4% % 12,400 6,829 16,115 41.67% Gross Profit Net Profit Net Interest Cost to Income Income 1.00%
Slide 15: Financial Performance & Business Profile
FINANCIAL PERFORMANCE & BUSINESS PROFILE 15
Slide 16: Q2 FY 21 vs Q2 FY 20 Performance - A Snapshot
Q2 FY 21 VS Q2 FY 20 PERFORMANCE - A SNAPSHOT (in INR Mn) FINANCIAL PERFORMANCE PARTICULARS Q2 FY 2021 Q2 FY 2020 INC / (DEC) Growth Growth % Deposits 414,206 404,513 9,693 2% Advances 354,368 332,793 21,575 6% Total Business 768,574 737,306 31,268 4% Demand Deposits 31,841 31,383 458 1% Saving Depo
Slide 17: Q2 FY 21 vs Q2 FY 20 Performance - A Snapshot
Q2 FY 21 VS Q2 FY 20 PERFORMANCE - A SNAPSHOT (in INR Mn) FINANCIAL PERFORMANCE PARTICULARS Q2 FY 2021 Q2 FY 2020 INC / (DEC) Growth % Q1 FY 2021 Net Interest Income 4,752 4,115 637 15% 4,369 Other Income 1,693 1,950 -257 -ve 1,606 Operating Expenses 2,598 2,600 -2 -ve 2,415 Gross Profit 3,847 3,465
Slide 18: H1 FY 21 vs H1 FY 20 Performance - A Snapshot
H1 FY 21 VS H1 FY 20 PERFORMANCE - A SNAPSHOT (in INR Mn) FINANCIAL PERFORMANCE PARTICULARS H1 FY 2021 H1 FY 2020 INC / (DEC) Growth % Net Interest Income 9,121 8,284 837 10% Other Income 3,299 3,583 -284 -ve Operating Expenses 5,013 4,888 125 3% Gross Profit 7,407 6,979 428 6% Provisions & Continge
Slide 19: FY 20 vs FY 19 Performance - A Snapshot
FY 20 VS FY 19 PERFORMANCE - A SNAPSHOT (in INR Mn) FINANCIAL PERFORMANCE PARTICULARS FY 2020 FY 2019 INC / (DEC) Growth Growth % Deposits 408,325 384,480 23,845 6% Advances 345,762 330,652 15,110 5% Total Business 754,087 715,132 38,955 5% Demand Deposits 29,244 32,145 -2,901 -ve Saving Deposits 72
Slide 20: FY 20 vs FY 19 Performance - A Snapshot
FY 20 VS FY 19 PERFORMANCE - A SNAPSHOT (in INR Mn) FINANCIAL PERFORMANCE PARTICULARS FY 2020 FY 2019 INC / (DEC) Growth % Net Interest Income 16,752 16,115 637 4% Other Income 6,799 5,144 1,655 32% Operating Expenses 10,137 8,859 1,278 14% Gross Profit 13,414 12,400 1,014 8% Provisions & Contingenc
Slide 21: Provisions & Contingencies – Breakup
PROVISIONS & CONTINGENCIES – BREAKUP (in INR Mn) PARTICULARS Q2 FY 21 Q2 FY 20 H1 FY 21 H1 FY 20 Q1 FY 21 FY 19-20 Provision for: - Tax 500 450 950 950 450 1,100 - Bad Debts 320 980 820 2,420 500 6,310 - Covid 19 1,150 - 2,150 - 1,000 1,250 - Standard Assets 80 90 120 52 40 193 - Depn on Investments
Slide 22: Q2 FY 21 vs Q2 FY 20 – Income and Expenses Breakup
Q2 FY 21 VS Q2 FY 20 – INCOME AND EXPENSES BREAKUP (in INR Mn) INTEREST INCOME BREAKUP INTEREST EXPENSES BREAKUP Q2 FY Q2 FY Q2 FY Q2 FY PARTICULARS Growth % PARTICULARS Growth % 2021 2020 2021 2020 Interest on Loans 8,988 8,618 4% Int Exp on Deposits 5,604 6,184 -ve Interest on Investments 1,521 1,
Slide 23: H1 FY 21 vs H1 FY 20 – Income and Expenses Breakup
H1 FY 21 VS H1 FY 20 – INCOME AND EXPENSES BREAKUP (in INR Mn) INTEREST INCOME BREAKUP INTEREST EXPENSES BREAKUP H1 FY H1 FY H1 FY H1 FY PARTICULARS Growth % PARTICULARS Growth % 2021 2020 2021 2020 Interest on Loans 17,910 17,304 4% Int Exp on Deposits 11,502 12,129 -ve Interest on Investments 2,92
Slide 24: FY 20 vs FY 19 – Income and Expenses Breakup
FY 20 VS FY 19 – INCOME AND EXPENSES BREAKUP (in INR Mn) INTEREST INCOME BREAKUP INTEREST EXPENSES BREAKUP FY FY FY FY PARTICULARS Growth % PARTICULARS Growth % 2020 2019 2020 2019 Interest on Loans 34,946 31,777 10% Int Exp on Deposits 24,369 21,080 16% Interest on Investments 6,099 5,536 10% Other
Slide 25: Strong Deposits and Advances Growth
STRONG DEPOSITS AND ADVANCES GROWTH (in INR Mn) DEPOSITS ADVANCES 11% 13% CAGR 408,325 414,206 CAGR 345,762 354,368 384,480 330,652 328,526 282,386 301,157 241,125 31-MAR-2017 31-MAR-2018 31-MAR-2019 31-MAR-2020 30-SEP-2020 31-MAR-2017 31-MAR-2018 31-MAR-2019 31-MAR-2020 30-SEP-2020 BUSINESS CASA 12
Slide 26: Income Growth Over the Years
INCOME GROWTH OVER THE YEARS… (in INR Mn) NET INTEREST INCOME GROWTH OTHER INCOME GROWTH 14% 13% CAGR CAGR 16,115 16,752 14,303 11,988 6,799 9,121(6M) 4,840 5,321 5,144 3,299 (6M) 31-MAR-2017 31-MAR-2018 31-MAR-2019 31-MAR-2020 30-SEP-2020 31-MAR-2017 31-MAR-2018 31-MAR-2019 31-MAR-2020 30-SEP-2020
Slide 27: Key Business Indicators
KEY BUSINESS INDICATORS PARTICULARS Q2 FY 21 Q2 FY 20 H1 FY 21 H1 FY 20 Q1 FY 21 FY 19-20 Cost of Deposits 5.54% 6.25% 5.62% 6.24% 5.89% 6.20% Yield on Advances 10.21% 10.76% 10.31% 10.86% 10.41% 10.76% Yield on Investments 5.79% 6.71% 5.94% 6.81% 6.12% 6.69% Net Interest Margin 4.12% 3.91% 4.05% 4.
Slide 28: Key Business Ratios – Yearly Trends
KEY BUSINESS RATIOS – YEARLY TRENDS NET INTEREST MARGIN RETURN ON ASSETS 5.00% 1.70% 1.64% 1.60% 1.60% 1.50% 4.42% 4.50% 4.32% 1.50% 4.17% 3.98% 4.05% 1.40% 4.00% 1.30% 1.23% 1.20% 3.50% 1.10% 1.00% 1.00% 3.00% 0.90% 31-MAR-17 31-MAR-18 31-MAR-19 31-MAR-20 30-SEP-20 31-MAR-17 31-MAR-18 31-MAR-19 31-
Slide 29: Cost of Deposits & Yield on Advances
COST OF DEPOSITS & YIELD ON ADVANCES (in %) 16 14 13.56 13.49 13.43 13.18 12.83 12.47 12.10 12 11.46 10.95 10.76 10.31 10 8.44 8.37 8.15 8.11 7.62 8 6.94 6.82 6.29 6.17 6.20 5.62 6 4 2 0 Mar 11 Mar 12 Mar 13 Mar 14 Mar 15 Mar 16 Mar 17 Mar 18 Mar 19 Mar 20 Sep 20 Spread between cost of deposits and
Slide 30: Efficiency
EFFICIENCY COST INCOME RATIO (%) CASA RATIO (%) 25.70 43.04 25.22 41.67 24.97 40.94 40.36 24.22 38.46 23.37 31-Mar-2017 31-Mar-2018 31-Mar-2019 31-Mar-2020 30-Sep-2020 31-Mar-2017 31-Mar-2018 31-Mar-2019 31-Mar-2020 30-Sep-2020 BUSINESS PER EMPLOYEE PROFIT PER EMPLOYEE (in INR Mn) (in INR Mn) 133.20
Slide 31: Loan Book – Products Composition
LOAN BOOK – PRODUCTS COMPOSITION % toTotalAdvances 1% Working capital loans yielding higher interest constitute 59% of advances Bills Purchased & Bills Discounted Term Loan Re-pricing possible at short intervals thus reducing interest rate risk 40% Cash Credit & Demand Loan ~95% of our loan book is
Slide 32: Loan Book Sectoral Deployment – Position as on 30.09.2020
LOAN BOOK SECTORAL DEPLOYMENT – POSITION AS ON 30.09.2020 (in INR Mn) Loans collateralized by Deposits 5,028 Retail Traders 6,528 Infrastructure 3,567 Personal Loans 9,400 1% NBFC Large Industries 3% 2% 3,031 20,5276% JL Non-Agri 22,081 6% 35% M S M E Housing Loans 123,000 6% SECTORAL 22,425 DEPLOYM
Slide 33: Loan Book Sectoral Deployment – Position as on 30.09.2020
LOAN N BOOK SECTORAL DEPLOYMENT – POSITION AS ON 30.09.2020 (in INR Mn) SECURED & UNSECURED ADVANCES Particulars Amount (INR Mn) (%) Secured Loans 350,382 99% Unsecured Loans 3,986 1% Total 354,368 100% Trading & MSME loans earning higher yield constitute about 50% Diversified credit portfolio reduc
Slide 34: Loan Book – Advances to Major Industries
Corporate Governance Loan Book – Advances to Major Industries (i n I N R M n Advances to Major Industries 30th September 2020 TEXTILE a) Cotton 16,583 (5%) b) Other Textiles 21,422 (6%) METALS a) Iron & Steel 11,264 (3%) Amount % to Total b) Other Metals 5,854 (1%) Industry Name (in INR Mn) Advances
Slide 35: Asset Quality
ASSET QUALITY (in INR Mn) GROSS NPA QTM & GROSS NPA % NET NPA QTM & NET NPA % 14,134 7,785 12,206 6,314 5,915 9,771 8,566 4,748 6,820 4.09% 4,083 3.44% 2.83% 2.95% 3.03% 2.29% 1.71% 1.70% 1.81% 1.81% 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 30-Sep-20 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 30-Sep-20
Slide 36: Asset Quality Position – Movement Over the Years
ASSET QUALITY POSITION – MOVEMENT OVER THE YEARS (RS IN MN) FY MAR-16 FY MAR-17 MAR FY MAR-18 FY MAR-19 FY MAR-20 Q2 FY 21 H1 FY 21 NPA Opening balance 3,358 5,120 6,820 8,565 9,771 13,461 14,134 Additions A 4,290 4,796 5,749 6,322 11,104 0 34 Recovery / Sale to ARC 734 905 1,623 1,980 1,644 459 590
Slide 37: Restructured Accounts
RESTRUCTURED ACCOUNTS Balance outstanding as on 30.09.2020 in respect of Restructured Standard borrowers Type of Restructuring No. of Borrowers Amount (in INR Mn) SME 131 4550.32 NSME 44 229.44 Total 175 4779.76 The above disclosure is in respect of Restructured Standard Accounts excluding NPA Restr
Slide 38: Investments – At a Glance
INVESTMENTS – AT AGLANCE Investments Breakup and Categorywise (in INR Mn) Particulars SEP 2020 SEP 2019 SLR Securities 105,298 95,685 Non-SLR Securities 3,121 3,545 Total Investments 108,419 99,230 Yield on Investments 5.94% 6.81% Investments Breakup: -A FS 23,175 (21%) 28,356 (29%) - HTM 85,244 (79
Slide 39: Covid Outbreak
COVID 19 OUTBREAK 39
Slide 40: COVID-19: Update on Current Situation
COVID-19 : Update on current situation As predicted by experts, COVID-19 pandemic is at its peak right now and our country is in the 3rd position in the world with more than 2.27 million cases. cases However positive news are coming from around the world with vaccine which is expected to hit the mar
Slide 41: COVID-19: Measures Taken by the Bank
COVID-19 : Measures taken by the Bank Business continuity: Our Business continuity plans worked well during this tough situation. We were successfully relocated some of our key functional departments on temporary basis and restored back on a smooth basis with uninterrupted service to our customers.
Slide 42: COVID-19: Status of Loan Accounts as of 29th Feb 2020
19 : Status of Loan Accounts as of 29th Feb 2020 COVID-19 Present outstanding balance of the accounts which are in default as of 29th Feb 2020 is as below: Position as on 15.06.2020 Position as on 31.07.2020 Position as on 31.10.2020 (Rs in Cr) No. of A/cs O/s Amount No. of A/cs A/ O/s Amount No. of
Slide 43: COVID-19: Repayment Status of Accounts – Position as of 30th Sep 2020
19 : Repayment Status of Accounts – Position as of 30th Sep 2020: COVID-19 We have given below status of repayment made by our borrowers instalment-wise from Mar-20 to Aug-20 (Moratorium period) along with repayment made in the month of Sep-20: 1 monthly 2 monthly 3 monthly 4 monthly 5 monthly 6 mon
Slide 44: COVID-19: Repayment Status of Accounts – Position as of 30th Sep 2020
19 : Repayment Status of Accounts – Position as of 30th Sep 2020: COVID-19 Moratorium: The Bank has extended the option to all the borrowers to avail moratorium as per the RBI instructions. During June quarter results we have discussed that accounts covering an exposure of 1.76% of CC & 26.54% of Te
Slide 45: COVID-19: Bank's Position
COVID-19 : Bank’s position Liquidity Business segments Business growth Capital adequacy Maintaining LCR above Strong Retail Franchise Deposits grown by Rs.588 CRAR stood at 17.36% 200% (292% as of cr during H1 FY 21 30.09.2020). Maintaining higher capital No Certificate of Deposit Lesser quantum of
Slide 46: Branch Network
BRANCH NETWORK 46
Slide 47: Strong Presence in the South
STRONG PRESENCE IN THE SOUTH As of Sep 2020 - 700 branches. 628 branches are located in South India out of which 485 in Tamil Nadu No. of % of % of % of State Branches Deposits Advances Business Ta mi l nadu 485 80 64 72 Ka rna ta ka 41 6 6 6 Andhrapra des h 45 3 8 5 1 Tel enga na 33 2 5 4 3 2 Maha
Slide 48: Shareholding Pattern
SHAREHOLDING PATTERN 48
Slide 49: A Well Diversified Investor Base
A WELL DIVERSIFIED INVESTOR BASE Position as on 30-Sep-2020 Major Institutional Shareholders SHAREHOLDERS HOLDING % QIB, NRI, 5.25 1.13 HDFC Midcap Opportunities Fund 4.48 Axis Mutual Fund 4.42 Corp Bodies, Others, 3.72 1.14 Life Insurance Corporation of India 4.13 Franklin India Prima Fund 2.64 HDF
Slide 50: Corporate Governance
CORPORATE GOVERNANCE 50
Slide 51: A Well Experienced and Strong Board
A WELL EXPERIENCED AND STRONG BOARD Shri. R. Mohan | B.Sc., MBA, CAIIB Dr N. Kamakodi | B.Tech., MBA., PhD., CAIIB Non-Executive Chairman M.D. & C.E.O. Shri. R. Mohan is qualified as bachelor of Science, Master of Business Dr. N. Kamakodi is serving as MD & CEO of the Bank from May 2011. He Administ
Slide 52: Transparent 'Corporate Governance' Practices
TRANSPARENT ‘CORPORATE GOVERNANCE’ PRACTICES Board consists Various of 8 Independent committees of Code of conduct Directors (including Board functions Disclosure norms KYC / AML for Directors and 1 WomenDirector) to oversee the strictly adhered to Norms strictly Senior Management And 1 Executive op
Slide 53: City Union Bank Ltd.
CITY UNION BANK LTD. Regd.Office :149,TSR Big Street,Kumbakonam Kumbakonam – 612001,Tamilandu. Admin Office :"Narayana" No.24 B,Gandhi Gandhi Nagar,Kumbakonam - 612001,Tamil Nadu. Tel :0435-2402322,2401622,| FAX:0435 0435-2431746 | www.cityunionbank.com INVESTOR CONTACT Name :K.Jayaraman Jayaraman,G
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