Indian Overseas Bank · NSE:IOB

Indian Overseas Bank — Q2 FY2022-23 Earnings Presentation

36 slides from Indian Overseas Bank's earnings presentation, Nov 7, 2022

  1. Slide 1: Performance Analysis Q2/FY 2022-23

    इण्डियन ओवरसीज़ बैंक PERFORMANCE ANALYSIS Q2/FY 2022-23 05.11.2022 Performance Analysis Q2 Sept 2022

  2. Slide 2: Index

    INDEX Performance Highlights 1-2 Financial Performance 3-9 Valuations 10 Business Performance 11-14 Investment 15 NPA Management 16-18 Capital Adequacy 19-20 Financial Inclusion 21 Digital Initiatives 22-23 Customer Touch Points 24-25 Shareholding Pattern & JVs 26-27 ESG Initiatives 28-31 Other Achi

  3. Slide 3: Performance Highlights Q2 FY 2022-23 - Business Growth and Profitability

    PERFORMANCE HIGHLIGHTS Q2 FY 2022-23 Rs in Crs Quarter Ended Growth Parameters Sep-21 Jun-22 Sep-22 Q-o-Q(%) Y-o-Y(%) CASA 106806 112012 111924 -0.08% 4.79% BUSINESS GROWTH CASA% 42.57% 43.07% 42.76% (31 bps) 19 bps Total Deposits 250891 260044 261728 0.65% 4.32% Home Loan 18665 21403 22458 4.93% 20

  4. Slide 4: Performance Highlights Q2 FY 2022-23 - Asset Quality

    PERFORMANCE HIGHLIGHTS Q2 FY 2022-23 Rs in Crs Quarter Ended Growth Parameters Sep-21 Jun-22 Sep-22 Q-o-Q(%) Y-o-Y(%) Gross NPA 15666 14919 14726 -1.29% -6.00% QUALITY Net NPA 3741 3698 4149 12.18% 10.89% ASSET GNPA% 10.66% 9.12% 8.53% (59 bps) (213 bps) NNPA% 2.77% 2.43% 2.56% 13 bps (21 bps) Sep-2

  5. Slide 5: Financials - At a Glance

    FINANCIALS- AT A GLANCE Rs in Crs Quarter Half Year Ended Growth % Q2 22-23 Q2 22-23 HY 22-23 Particulars Q2 21-22 Q1 22-23 Q2 22-23 H1 'FY 21-22 H1'FY 22-23 Over Over Over Q122-23 Q2 21-22 HY 21-22 Interest Income 4254 4435 4718 8318 9153 6.37% 10.90% 10.03% Interest Expenses 2622 2681 2764 5188 54

  6. Slide 6: Total Income

    TOTAL INCOME Rs in Crs Quarter Half Year Ended Growth % Q2 22-23 Q2 22-23 HY 22-23 Particulars Q2 21-22 Q1 22-23 Q2 22-23 H1 'FY 21-22 H1'FY 22-23 Over Over Over Q122-23 Q2 21-22 HY 21-22 Interest on Loans 2617 2865 3139 5230 6004 9.56% 19.95% 14.79% Interest on Investment 1401 1516 1489 2804 3005 -

  7. Slide 7: Fee Based Income

    FEE BASED INCOME Rs in Crs Quarter Ended Half Year Ended Growth % Q2 22-23 Q2 22-23 HY 22-23 Particulars Q2 21-22 Q1 22-23 Q2 22-23 H1 'FY 21-22 H1'FY 22-23 Over Over Over Q1 22-23 Q2 21-22 HY 21-22 A.Exchange & Commission 54 76 88 143 164 15.37% 63.09% 14.76% B.Income from Non Fund Based Business 4

  8. Slide 8: Total Expenses

    TOTAL EXPENSES Rs in Crs Quarter Half Year Ended Growth % Q2 22-23 Q2 22-23 HY 22-23 Particulars Q2 21-22 Q1 22-23 Q2 22-23 H1 'FY 21-22 H1'FY 22-23 Over Over Over Q122-23 Q2 21-22 HY 21-22 Interest on Deposits 2568 2604 2621 5088 5225 0.66% 2.07% 2.69% Interest on Borrowings 54 77 143 101 220 85.96

  9. Slide 9: Provisions & Profit

    PROVISIONS & PROFIT Rs in Crs Quarter Half Year Ended Growth % Q2 22-23 Q2 22-23 HY 22-23 Particulars Q2 21-22 Q1 22-23 Q2 22-23 H1 'FY 21-22 H1'FY 22-23 Over Over Q2 Over Q122-23 21-22 HY 21-22 Operating Profit 1419 1026 1494 2621 2520 45.63% 5.30% -3.85% Provisions 1043 634 993 1918 1627 56.60% -4

  10. Slide 10: Performance Ratios - Quarterly

    PERFORMANCE RATIOS- QUARTERLY Cost of Deposits Cost of Funds 4.26 4.14 4.16 4.26 4.22 4.12 4.11 4.04 4.06 4.06 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Yield on Investment Yield on Advances 7.83 7.52 5.82 5.82 5.83 5.94 5.80 7.36 7.34 7.24 Sep-21 Dec-21 Mar-22 Jun-22 Sep

  11. Slide 11: Performance Ratios - Quarterly

    PERFORMANCE RATIOS- QUARTERLY Yield on Funds Net Interest Margin 6.76 2.79 6.54 2.51 2.53 2.40 2.41 6.42 6.40 6.31 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Return on Assets Cost to Income 0.74 56.27 0.62 0.65 51.62 0.53 0.51 48.46 48.15 44.62 Sep-21 Dec-21 Mar-22 Jun-22

  12. Slide 12: Valuations

    VALUATIONS Particulars Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 *Return on Equity (%) 14.57 13.22 15.37 18.12 12.51 15.10 *Basic & Diluted Earning per Share 0.19 0.20 0.24 0.29 0.21 0.51 *Price Earning Ratio 147.90 114.25 84.71 62.11 79.29 34.62 Book value per share (in Rs) 4.11 6.13 6.37 6.54 6.73

  13. Slide 13: Business Performance - Global

    BUSINESS PERFORMANCE - GLOBAL Rs in Crs Particulars Sep-21 Jun-22 Sep-22 Y-o-Y (%) Q-o-Q (%) CASA 106806 112012 111924 4.79% -0.08% a)Retail T erm Deposits 130151 136781 135188 3.87% -1.16% b)Bulk Deposits 10903 7728 11108 1.88% 43.74% c)Overseas T erm Deposits 3031 3523 3508 15.75% -0.42% Term Depo

  14. Slide 14: Deposits Composition

    DEPOSITS COMPOSITION Rs. in Crore Y-o-Y variation Q-o-Q variation Parameters Sep-21 Jun-22 Sep-22 Amount % Amount % Domestic-Deposits Savings Bank 87866 94790 95370 7504 8.54% 580 0.61% Current Account 17578 15419 14839 -2739 -15.58% -580 -3.76% CASA 105444 110209 110208 4764 4.52% -1 0.00% Term Dep

  15. Slide 15: Risk Spread - Assets

    RISK SPREAD- ASSETS Rs. in Crore Y-o-Y variation Q-o-Q variation Parameters Sep-21 Jun-22 Sep-22 Amount % Amount % Retail 34833 38297 39834 5001 14.36% 1537 4.01% Agri 36589 40575 41814 5225 14.28% 1239 3.05% MSME 26621 30450 31497 4876 18.32% 1047 3.44% Corporate/others 38464 40937 46326 7862 20.44

  16. Slide 16: RAM Performance

    RAM PERFORMANCE Rs. in Crore Parameters Sep-21 Jun-22 Sep-22 Y-o-Y Q-o-Q RETAIL BREAK UP: Sep-22 RETAIL CREDIT 34833 38297 39834 14.36% 4.01% Vehicle Personal 9% 4% Of which Education Others 9% 22% Home 18665 21403 22458 20.32% 4.93% Education 4611 3655 3644 -20.97% -0.29% Vehicle 3319 3570 3634 9.4

  17. Slide 17: Investments

    INVESTMENTS 17144 17602 15476 Available for Sale 74067 79192 77861 Held to Maturity Sep-21 Jun-22 Sep-22 Held to Maturity Available for Sale Rs. in Crore Parameters Sep-21 Mar-22 Jun-22 Sep-22 Domestic Investments 91211 96409 96794 93337 SLR 60288 66154 68225 65224 Non SLR 30923 30255 28569 28113 He

  18. Slide 18: NPA Management

    NPA MANAGEMENT Rs. in Crore Details Sep-21 Jun-22 Sep-22 i) Opening Gross NPAs 15952 15299 14919 a. Cash Recov eries 325 379 243 b. Upgradation 282 260 207 c. Write-Offs 1155 367 1287 d. Sale to ARCs 28 0 11 e. Other Reductions 8 0 0 ii) Total Reductions (a+b+c+d+e) 1798 1006 1747 iii) Fresh Slippag

  19. Slide 19: Segmental NPAs

    SEGMENTAL NPAS Rs. in Crore Sep-21 Jun-22 Sep-22 Segmental NPAs NPA Ratio % NPA Ratio % NPA Ratio % Retail 1495 4.29% 1019 2.66% 1484 3.72% Agri 2577 7.04% 2948 7.27% 2912 6.96% MSME 3283 12.33% 3450 11.33% 3269 10.38% Corporate 6480 16.85% 5809 14.19% 5044 10.89% Overseas 1831 17.55% 1693 12.74% 20

  20. Slide 20: Movement of NPA

    MOVEMENT OF NPA GNPA % NNPA% 10.66% 10.40% 9.82% 2.77% 2.63% 2.65% 2.56% 2.43% 9.12% 8.53% Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 PCR 92.00% 92.33% 91.66% 91.86% 90.94% 76.00% 76.62% 75.00% 75.21% 71.85% Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 PCR (including techwrite off)

  21. Slide 21: Capital Adequacy

    CAPITAL ADEQUACY Rs. in Crore Particulars Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Market Risk RWA 11687 12153 12491 10352 9058 Operational Risk RWA 13402 13402 13402 15066 15066 Credit Risk RWA 87827 86579 90176 96162 99060 Total RWA (A) 112917 112134 116069 121580 123184 CET 1 14502 14513 12428 14279 14

  22. Slide 22: Movement of CRAR & RWAs

    MOVEMENT OF CRAR & RWAS CRAR 15.41% 15.41% 15.14% 14.79% 13.83% Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Credit RWA to Advance Ratio Total RWA to Advance Ratio 76.83% 75.97% 59.77% 74.50% 74.34% 58.37% 58.80% 57.88% 57.36% 71.32% Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Perfor

  23. Slide 23: Financial Inclusion

    FINANCIAL INCLUSION PMJDY Account PMJDY Account Balance (Number in Lakhs) (Rs in Cr) 3325 63.50 60.52 1944 1746 53.06 Sep-21 Jun-22 Sep-22 Sep-21 Jun-22 Sep-22 PMJDY Zero balance Accounts Jansuraksha Scheme No in Lakhs 42.00 43.08 33.52 19.59 20.10 5.33 5.15 12.66 9.18 9.88 7.06 2.42 Sep-21 Jun-22 S

  24. Slide 24: Digital Banking Initiatives

    DIGITAL BANKING INITIATIVES Performance Analysis Q2 Sept 2022 Page 22

  25. Slide 25: Digital Banking Initiatives

    DIGITAL BANKING INITIATIVES UPI REGISTERED USERS Number of Users Sep-21 Jun-22 Sep-22 (IN LAKHS) Mobile Banking Registered Users 43.51 54.83 59.52 (in Lakhs) 63.04 58.4 Internet Banking Registered Users 21.64 22.93 23.82 (in Lakhs) 46.17 UPI Registered Users 46.17 58.40 63.04 (in Lakhs) ATMs / CDMs

  26. Slide 26: Customer Touch Points Pan-India as on 30.09.2022

    CUSTOMER TOUCH POINTS PAN-INDIA as on 30.09.2022 Region Branch ATM BC Northern 322 250 56 Eastern 384 318 283 Western 302 280 70 Southern 1799 2232 1622 Central 363 320 171 North Eastern 44 38 26 Total 3214 3438 2228 SEP-22 BRANCHES SEP-22 ATM Metro, Rural, Metro, Rural, 698, 727, 813, 902, 22% 21%

  27. Slide 27: Overseas Footprint

    OVERSEAS FOOTPRINT Overseas Singapore Hong Kong Colombo Bangkok Branches JV Malaysia Subsidiary Remittance Singapore- Serengoon Road Centre STRATEGIC INVESTMENTS–JOINT VENTURE Indian Overseas Bank (35%) has a Joint Venture Bank in Malaysia with Bank of Baroda(40%) and Union Bank of India (25%), name

  28. Slide 28: Share Holding Pattern

    SHARE HOLDING PATTERN Category of Shareholder %share % share Institution, Government of India 96.38% 1.43% FI/Banks 1.25% Individual, 1.61% Foreign Portfolio Investor (Corporate) 0.08% others, Mutual Funds 0.08% 0.58% Insurance Companies 0.02% Govt. of India Individual 1.61% 96.38% ESOP/ESOS/ESPS 0.

  29. Slide 29: Strategic Investments - Joint Venture

    STRATEGIC INVESTMENTS – JOINT VENTURE IOB entered into Non Life Insurance Business with Universal Sompo General Insurance (USGI) Company Limited with equity participation of 18% along with the other Banks and Institutions SHAREHOLDING % Name of Entity Shareholding % Investment 12.81% 18.06% 6.00% In

  30. Slide 30: ESG Initiatives

    Performance Analysis Q2 Sept 2022 Page 28

  31. Slide 31: Green Initiatives and Paperless Banking

    As a part of Green Initiative, the Bank is moving towards Paperless banking through various initiatives such as Mobile Banking, Internet Banking, BHIMIOB UPI, Debit Cards, Management of ATMs/Cash Recyclers/Passbook Kiosks, IOB PAY etc. For encouraging use of renewal energy, Bank offers special credi

  32. Slide 32: Social Initiatives and Women Empowerment

    IOB is committed to and involved in various social causes, the most prominent being women empowerment. The Sakthi - IOB Chidambaram Chettiar Memorial Trust which was established with an Objective to empower the Women Folk in the lower strata of society through vocational training Credit facilities a

  33. Slide 33: Corporate Governance

    The Bank recognizes the critical importance of effective Corporate Governance for the safe and sound functioning of the Bank and lays emphasis on ensuring that structures, processes and systems are put in place to establish strategic objectives to serve the interest of the Bank and its stakeholders

  34. Slide 34: Bank Hockey Team with Top Management

    "Bank Hockey team with the Top Management after winning the State Level tournament at Madurai" Performance Analysis Q2 Sept 2022 Page 32

  35. Slide 35: Disclaimer

    DISCLAIMER  Except for the historical information contained herein, statements in this release which contain words or phrases such as “will”, “aim”, “will likely result”, “would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”, “plan”, “contemplate”, “seek to”, “fut

  36. Slide 36: Thank You

    Thank You visit us @ https://www.iob.in Performance Analysis Q2 Sept 2022 Page 34

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