Idbi Bank Limited · NSE:IDBI
Idbi Bank — Investor Presentation (November 2020)
35 slides from Idbi Bank's investor presentation, Nov 4, 2020
Slide 1: Intimation of institutional investor meeting schedule
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Slide 2: Corporate Presentation November 2020
Corporate Presentation November 2020 Page 1
Slide 3: Disclaimer
Disclaimer This presentation has been prepared for general information purposes in respect of IDBI Bank Limited (“Bank”) together with its subsidiaries (together, with the Bank, the “Group”) only, without regard to any specific objectives, suitability, financial situations and needs of any particula
Slide 4: Contents
Contents IDBI Bank Overview Key Business Highlights Covid-19 Related Policy Reforms Strengths Strategies Annexures Page 3
Slide 5: IDBI Bank Overview
IDBI Bank Overview LG) IDBI Bank] Page 4
Slide 6: IDBI Bank – Journey so far
IDBI Bank – Journey so far… IDBI Act 1964 IDBI transforms IDBI transfers its amended to permit from a DFI into a Set up as a export financing private ownership up full-service LIC of India subsidiary of RBI function to EXIM to 49% commercial bank completed under an Act of Bank which was along with a
Slide 7: Overview
Overview Introduction Business Segments ▪ Diversified financial services group offering a wide range of banking and financial services to corporate and retail customers throughout India Corporate Retail Treasury ▪ The Bank was controlled by the Government of India since its founding for over five de
Slide 8: Value creation through Investments in Financial Sector & Subsidiaries
Value creation through Investments in Financial Sector & Subsidiaries Architect of Indian Financial Sector ▪ Policy bank for the Government of India in the area of industrial and infrastructure development ▪ Institution builder -Two of the existing DFIs – EXIM Bank and SIDBI were carved out of IDBI
Slide 9: Strong Parentage
Strong Parentage Shareholding Pattern Sustained GoI & LIC Support As on September 30, 2020 Public INR Bn 1.89% 128.65 216.24 93.00 216.24 Promoter - 124.71 Promoter - LIC GoI 51.00% 47.11% 45.57 47.43 3.94 - FY18 FY19 FY20 GOI LIC ▪ LIC completed acquisition of 51% controlling stake in IDBI Bank on
Slide 10: Verticalization of the Organization Structure
Verticalization of the Organization Structure MD & CEO DMD DMD ED ED ED ED ED ED ED ED ED ED ED ED Priority Treasury Credit Large Mid Structured Retail Sector Human NMG & Legal CSPD Front IT & MIS Monitoring Corporate Corporate Retail Asset Liabilities (Agri & Resources Recovery Office Group Group G
Slide 11: Key Business Highlights
Key Business Highlights Page 10
Slide 12: Turnaround in the Bank over the last few quarters
Turnaround in the Bank over the last few quarters Profitability Capital Adequacy Deposit Mix INR Bn 6.65 47.74% 47.55% 48.33% 13.67% 4.38 13.31% 13.37% 34.62% 36.83% 37.75% 3.24 2.90 11.06% 1.35 1.44 10.57% 10.59% Mar-20 Jun-20 Sep-20 Mar-20 Jun-20 Sep-20 Mar-20 Jun-20 Sep-20 PBT PAT Tier I Ratio CR
Slide 13: Improving Financial Position
Improving Financial Position Total Net Interest Income Operating Profit Profit After Tax INR Bn INR Bn INR Bn 69.78 79.09 4.69 56.40 59.06 51.12 FY18 FY19 FY20 H1FY20 H1FY21 30.89 34.69 40.52 25.72 (72.60) 19.60 (82.38) (128.87) (151.16) FY18 FY19 FY20 H1FY20 H1FY21 FY18 FY19 FY20 H1FY20 H1FY21 Net
Slide 14: Retail Focused Asset Book
Retail Focused Asset Book Gross Advances Gross Advances Mix Yield on Advances[1] INR Bn Shift towards retail assets along with reduced corporate Increasing Retail share leading to increasing Yield on exposure Advances 9.55% 9.56% 1,988.53 9.14% 1,820.97 1,716.90 1,768.68 1,638.41 44.56% 41.55% 8.81%
Slide 15: Growing focus on low cost CASA Deposits
Growing focus on low cost CASA Deposits Total Deposits & Borrowings Reduced dependence on Bulk Deposits Increasing CASA focus INR Bn INR Bn 47.74% 48.33% 42.54% 44.87% 37.15% 66.65% 74.61% 82.36% 78.16% 86.08% 2,479.31 967.30 1,061.88 1,040.27 1,082.17 2,273.72 921.02 2,224.24 2,318.30 2,239.15 33.3
Slide 16: Stable Capital Base
Stable Capital Base Tier I Tier II Total (Tier I + Tier II) INR Bn INR Bn INR Bn 170.76 167.53 167.85 174.03 159.72 229.91 59.15 44.97 43.44 41.29 41.06 212.50 215.09 211.28 11.06% 201.02 10.57% 9.52% 9.13% 7.73% 2.68% 2.45% 2.74% 2.46% 2.61% 13.31% 13.67% 10.41% 11.58% 11.98% FY18 FY19 FY20 H1FY20
Slide 17: Improving Asset Quality
Improving Asset Quality NPA Movement INR Bn FY18 FY19 FY20 H1FY20 H1FY21 Opening Balance 447.53 555.88 500.28 500.28 472.72 Add: a. First Time NPA 356.05 152.81 83.84 55.45 1.01 b. Increase in existing NPA 27.46 29.27 26.38 11.01 1.41 Less: c. Settled 68.40 64.43 65.56 19.63 25.49 d. Up-gradation 81
Slide 18: SMA Position
SMA Position INR Bn 134.65 SMA 0 SMA 1 SMA 2 62.95 67.42 52.83 78.94 53.26 59.71 29.90 29.27 30.33 30.84 18.87 19.77 17.09 15.42 12.29 10.12 9.23 5.30 4.93 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Corporate Retail 134.65 51.20 78.94 67.42 59.71 30.84 52.79 83.45 40.39 54.13 26.15 23.17 19.32 7.67 13.29 Se
Slide 19: Compliance with Prompt Corrective Action (PCA) Matrix
Compliance with Prompt Corrective Action (PCA) Matrix The Bank is on track toward full compliance with the RBI’s parameters under the “Prompt Corrective Action” regime, and intends to pursue an exit from that regime in due course Risk IDBI-Actual Criteria Indicator Threshold 1 Threshold 2 Threshold
Slide 20: Covid-19 Related Policy Reforms
Covid-19 Related Policy Reforms Page 19
Slide 21: Important announcements since the onset of COVID-19
Important announcements since the onset of COVID-19 Policy environment was made conducive beginning March 2020 when the RBI and the Government were able to correctly anticipate the economic downturn following the outbreak of COVID-19 ▪ The RBI significantly reduced the repo rate to 4% in May 2020 an
Slide 22: Covid-19 Provisioning by the Bank
Covid-19 Provisioning by the Bank ▪ In accordance with the RBI guidelines relating to ‘COVID-19 Regulatory Package’ the Bank has granted a moratorium on the payment of installments and or interest, as applicable, falling due between March 1, 2020 and August 31, 2020 to eligible borrowers classified
Slide 23: Strengths
LG) IDBI Bank] Page 22
Slide 24: Strengths
Strengths Valuable and trusted brand Pan-India presence with diversified distribution network and product offering 1 2 3 Strong technology-enabled operating platform 4 Revamped risk management and credit monitoring framework 5 6 Synergies from the relationship with LIC Experienced Board & Management
Slide 25: Pan-India presence with diversified distribution network and product offering
Pan-India presence with diversified distribution network and product offering Extensive distribution network allows the Bank to serve a large and growing customer base throughout India Nationwide Network Branch Distribution As on September 30, 2020 As on September 30, 2020 1,885 1 Domestic 5 22.74%
Slide 26: Strong technology-enabled operating platform
Strong technology-enabled operating platform Bank has made significant investments in technology and digital analytics to transform its operating architecture into a strong, technology enabled digital operating platform • Digital infrastructure of has been strengthened and revamped for smooth, conve
Slide 27: Revamped risk management and credit monitoring framework
Revamped risk management and credit monitoring framework The Bank remains committed to continue investing in stronger risk management and analytical capabilities to better analyze, monitor and mitigate credit risks Strengthened the risk management and internal control capabilities by reviewing and i
Slide 28: Synergies from the relationship with LIC
Synergies from the relationship with LIC LIC, a major state-owned insurance group and investment corporation in India, provides the Bank with a significant pool of customers from which to cross-sell its banking products and other financial services • Sale of LIC policies through Bank’s branches & so
Slide 29: Strategies
Strategies LG) IDBI Bank] Page 28
Slide 30: Strategies
Strategies Focus on leveraging the operational flexibility post reclassification as private sector bank Diversify the Bank’s asset portfolio by increasing the Bank’s retail assets Optimize risk management processes, decrease NPA levels and increase recoveries Increase the Bank’s share of fee-based i
Slide 31: Annexures
Annexures LG) IDBI Bank] Page 30
Slide 32: Balance Sheet
Balance Sheet Figures in INR Bn Balance Sheet FY18 FY19 FY20 H1FY20 H1FY21 LIABILITIES Capital 30.84 77.36 103.81 77.36 103.81 Reserve & Surplus 181.26 298.75 236.44 226.16 241.17 Deposits 2479.31 2273.72 2224.24 2318.30 2239.15 Borrowings 631.86 452.88 367.49 302.06 364.22 Other Liabilities & Provi
Slide 33: Profit & Loss Statement
Profit & Loss Statement Figures in INR Bn Profit & Loss Statement FY18 FY19 FY20 H1FY20 H1FY21 INCOME Interest Earned 230.27 220.71 208.25 102.89 95.87 Other Income 70.14 33.00 44.70 18.65 20.75 Total Income 300.40 253.72 252.95 121.54 116.62 EXPENDITURE Interest Expended 173.86 161.66 138.47 72.00
Slide 34: Key Ratios
Key Ratios Key Ratios FY18 FY19 FY20 H1FY20 H1FY21 CASA % 37.15% 42.54% 47.74% 44.87% 48.33% GNPA % 27.95% 27.47% 27.53% 29.43% 25.08% NNPA % 16.69% 10.11% 4.19% 5.97% 2.67% PCR % 63.40% 82.88% 93.74% 91.25% 95.96% CRAR % 10.41% 11.58% 13.31% 11.98% 13.67% Cost of Deposits 5.56% 5.44% 5.08% 5.23% 4.
Slide 35: Thank You
Thank You www.idbibank.in Page 34