IDBI Bank Limited · NSE:IDBI
IDBI Bank — Q1 FY2018 Earnings Presentation
20 slides from IDBI Bank's earnings presentation, Aug 14, 2017
Slide 1: Presentation on Performance Q1 (2017–18)
Presentation on Performance Q1 (2017–18) August 14, 2017 1
Slide 2: Turnaround Strategy of the Bank
Turnaround Strategy of the Bank Focus Areas Improving CRAR in the short and medium term through fresh resource raising from the government as well as market at an appropriate time and reducing risk weighted assets. Improving asset Quality- Aggressive recovery and prevention of further slippages.
Slide 3: Turnaround Strategy - Capital Adequacy
Turnaround Strategy - Capital Adequacy After GoI Infusion of Rs. 1861 Cr on Particulars Jun-17 Mar-17 09/08/2017 CET 1+CCB Ratio 5.71% 5.64% 6.49% AT 1 2.27% 2.17% 2.26% Tier 1 Ratio 7.98% 7.81% 8.75% Tier 2 Ratio 2.95% 2.89% 2.94% CRAR 10.92% 10.70% 11.69% RWA (Rs.) 258332 268997 258797 Improveme
Slide 4: Turnaround Strategy – Asset Quality
Turnaround Strategy –Asset Quality (Rs. Crore) Particulars Qtr Jun 2017 Qtr Mar 2017 Fresh Slippages 7659 11531 Recovery & Upgradation 2118 1790 Provision for NPA 1892 6503 The Fresh Slippages were contained in Q1 FY18 despite continuance of stressed industrial scenario. Bank in Q1 FY18 has impl
Slide 5: Turnaround Strategy – Cost Reduction
Turnaround Strategy – Cost Reduction Quarter Ended Particulars Jun-17 Mar-17 Interest on deposits 3582 4268 Cost of deposits (%) 5.78% 6.07% Other Operating Expenses 741 833 Interest on deposits has gone down with reduction in Bulk Deposits from ` 96542 Cr in Mar 17 to ` 79025 Cr in Jun 17, which
Slide 6: Turnaround Strategy – Sale of Non Core Asset
Turnaround Strategy – Sale of Non Core Asset Bank is in process to raise additional capital by selling non core assets. During Q1 FY18, Bank sold 2.5% stake in CCIL resulting in capital gain of ` 71 Cr. Process for sale of balance 5% is already under way. Bank is in advanced stage for sale of
Slide 7: Turnaround Strategy – Improving Income
Turnaround Strategy – Improving Income Quarter Ended (` in Crore) Particulars Jun-17 Mar-17 Interest Income 6011 6987 Other Income 720 1062 - of which Treasury Income 138 271 During Q4 FY17 the FTNPA were to the tune of ` 11531 Cr and ` 7659 Cr in Q1 FY18. Bank did not earn interest on FTNPAs of
Slide 8: Turnaround Strategy – Retail & Corporate Mix
Turnaround Strategy – Retail & Corporate Mix Strategy to improve the % of Retail business to overall book size to 50% over next 3 years Focus on affordable housing, retail housing loans and micro enterprises to shore up the retail base. Cross selling to existing HNI clients. 8
Slide 9: Profit & Loss Account
Profit & Loss Account (` in Crore) Quarter Ended Particulars Jun-17 Mar-17 Jun-16 Interest income 6011 6987 7303 Interest expenses 4609 5353 5597 Other Income 720 1062 916 Net Total income 2122 2695 2623 Operating Expenses 1245 1305 1156 - Employee Cost 504 472 543 - Other Operating Expenses 741 833
Slide 10: Performance Highlights
Performance Highlights (` in Crore) Quarter Ended Particulars Jun-17 Mar-17 Jun-16 Advances 18 72 66 19 08 41 21 73 77 Deposits 24 30 58 26 85 38 25 40 31 Business 43 03 25 45 93 79 47 14 09 CASA 8 18 37 8 44 69 6 49 85 Retail TD 8 21 97 8 75 26 7 89 98 Bulk TD 7 90 25 9 65 42 11 00 49 10
Slide 11: Ratio Highlights
Ratio Highlights Quarter Ended Particulars Jun-17 Mar-17 Jun-16 CASA Ratio 33.67% 31.46% 25.58% Net Interest Margin 1.72% 1.75% 2.08% Cost of all liabilities 5.35% 5.62% 6.14% Yield on Total Assets 7.86% 8.45% 9.02% Margin 2.51% 2.83% 2.88% Cost of Funds 5.99% 6.18% 6.91% Yield on Advances 8.43% 8.7
Slide 12: Balance Sheet Ratios
Balance Sheet Ratios (` in Crore) Particulars Jun-17 Mar-17 Jun-16 Total Business [Dep. + Adv.] 430325 459364 471409 SB Deposits to Total Deposits (EOP) 20.37% 18.76% 15.40% Current Account Deposits to Total 13.30% 12.69% 10.18% Deposits(EOP) Time Deposits to Total Deposits(EOP) 66.33% 68.54% 74.42%
Slide 13: Industry-wise Advances
Industry-wise Advances (` in Crore) Outstanding as on Outstanding as on 30-Jun-17 31-Mar-17 % of Total % of Total Top 20 Industries Outstanding Outstanding advances FB NFB Total advances (Fund Total (Fund based+Non fund based+Non based) fund based) Infrastructure of which: 49560 26945 76505 19.72% 7
Slide 14: Provisions & Contingencies
Provisions & Contingencies (` in Crore) Quarter Ended Particulars Jun-17 Mar-17 Jun-16 Depreciation on Investment 438 615 118 Provision for NPAs 1 069 5 333 768 Provision towards standard assets 99 (604) 885 Provision for Restructured Assets (286) (314) (1) (including FITL) Income Tax (340) (1620) (
Slide 15: NPAs
NPAs (` in Crore) Particulars Jun-17 Jun-16 Mar-17 Gross Advances 208085 228738 210610 Gross NPAs 50173 27275 44753 Gross NPAs as % of Gross Advances 24.11% 11.92% 21.25% Total Provisions held (including NPV Loss) 20593 11027 19547 Net Advances 187266 217363 190826 Net NPAs 29580 16248 25206 Net NPA
Slide 16: NPA Movement
NPA Movement (` in Crore) For the Quarter For FY ended Particulars Jun 17 Mar 17 Opening Balance 44753 24875 Add: -Fresh Slippages* 8364 27595 Of Which Restructured A/cs are 1054 5366 Less: -Settled 1492 1413 -Upgradation 626 3436 -Write-off 825 2868 Closing Balance 50173 44753 Gross NPA % 24.11% 21
Slide 17: Distribution Network
Distribution Network 2500 2000 2 2 1 1 378 453 458 1500 1 368 319 460 473 478 451 1000 426 586 586 597 524 500 372 373 421 408 417 270 0 FY 2014 FY 2015 FY 2016 FY 2017 Q1 FY18 Rural Semi-Urban Urban Metro Overseas 1952 Branches 3824 ATMs 56 E-Lounges 78 Retail Asset Centers 6 Regional Pro
Slide 18: Digital Footprint
Digital Footprint Jun-17 No. of Transaction Amt Digital Initiatives Customer for Qtr Jun 17 Registrations (Rs in Cr.) Mobile Banking 8,96,920 90.09 Internet Banking 84,79,891 101751.64 ATM Banking - 10762.73 Bunch Note Acceptors - 1546.29 (Cash Deposit) Bunch Note - 400.58 Acceptors(Cash Dispense) P
Slide 19: Awards
Awards IDBI Bank has been rated ‘High’ as per the Banking Codes & Standards Board of India (BCSBI) Code Compliance Rating 2017. IDBI Bank is the only PSB to be rated ‘High’ by BCSBI and overall rank is 7 out of 51 member banks. IDBI Bank won 2nd prize at the National Awards to Banks by Ministry
Slide 20: Thank You
Thank You (ORES 20