IDBI Bank Limited · NSE:IDBI
IDBI Bank — Q3 FY2016 Earnings Presentation
38 slides from IDBI Bank's earnings presentation, December 2015
Slide 1: Presentation to Analysts Q3 FY 2016
Bank. re Dost ry Preseniation to Analysis Q3 FY 2016
Slide 2: Disclaimer
Disclaimer: Certain statements contained in this presentation may be statements of future expectations and other forward-looking statements that are based on third party sources and involve known and unknown risks and uncertainties. Forward-looking statements contained in this presentation regarding
Slide 3: IDBI Bank's Forte
IDBI Bank’s Forte Significant Leading player in Growing Diversified Strong provider of domestic Branch customer Brand Value Long Term Debt Network base Finance Syndication Ranks 37th amongst Completed 147 Apex role in creating Branches -1784 Corporate and top 50 brands across mandates till date indu
Slide 4: Performance Highlights Q3 FY16 v/s Q3 FY15
Performance Highlights Q3 FY16 v/s Q3 FY15 ` Crore 2,08,924 2,34,691 4,43,615 80,703 Advances Business Deposits 6% 1% 3% 24 % 6 PSL 1,97,303 2,33,199 4,30,502 65,104 58,662 71,331 22,954 1,16,003 Retail TD Networth Bulk TD CASA 8% 3% 10% 15% 51,033 66,163 22,251 1,04,699 Analyst Presentation – Q3 FY
Slide 5: Performance Highlights Q3 FY16 (Profitability)
Performance Highlights Q3 FY16 (Profitability) 1114 1.98% 1200 2.00% 1.85% 1000 1.95% 800 455 1118 544 1.90% 600 1.85% 400 200 1.80% 0 1.75% Fee Income NIM Ope. Profit Quarter Ended Dec-15 Quarter Ended Dec-14 Quarter Ended Dec-15 Quarter Ended Dec-14 Analyst Presentation – Q3 FY16 5
Slide 6: Performance Highlights 9 Months ended Dec-15 (Profitability)
Performance Highlights 9 Months ended 16 (Profitability) ` Crore 4000 3239 1.96% 2.00% 1.83% 3000 1298 1.95% 1.90% 2000 1476 3775 1.85% 1000 1.80% 1.75% 0 NIM Fee Income Ope. Profit 9 Months ended Dec-15 9 Months ended Dec-14 9 Months ended Dec-15 9 Months ended Dec-14 Analyst Presentation – Q3 FY16
Slide 7: Profit & Loss - Snapshot
Profit & Loss - Snapshot ` Crore Particulars Q3 FY16 Q3 FY15 Growth % 9M 2016 9M 2015 Growth % Interest Income 6 784 7 159 (5) 21 115 20 742 2 Interest Expenses 5 228 5 728 (9) 16 453 16 654 (1) Net Interest Income 1 556 1 431 9 4 662 4 088 14 Other Income 578 777 (26) 2 064 2 037 1 Net Total Income
Slide 8: Balance Sheet - Snapshot
Balance Sheet - Snapshot ` Crore As at 31-Dec-15 31-Dec-14 LIABILITIES Capital 1 900 1 604 Reserve & Surplus 22 680 22 322 Deposits 2 34 691 2 33 199 Borrowings 66 593 64 464 Other Liabilities & Provisions 12 624 9 851 Total 3 38 489 3 31 440 ASSETS Cash & Balance with RBI 10 994 11 703 Bal. with ba
Slide 9: Growing Deposit Base
Growing Deposit Base ` Crore Composition of Deposits Movement of Deposits Retail 300000 Term Q3 2016 Deposits 250000 30% 200000 Current 150000 A/c Bulk Term 10% Deposits 100000 45% 50000 0 Savings Q3 FY 2012 FY 2013 FY 2014 FY 2015 Bank A/c 2016 15% Bulk Term Deposits 114932 115522 131241 127278 104
Slide 10: Credit Base
Credit Base ` Crore Composition of Advances Movement of Advances Q3 2016 Domestic Corp. 56% 250000 Overseas Corp. 200000 11% 150000 Retail 33% 100000 50000 Domestic Corp. 0 Q3 2015 62% FY 2012 FY 2013 FY 2014 FY 2015 Q3 2016 Term Loans 131957 140803 140704 147372 149056 Overseas Bills 3278 4619 4884
Slide 11: Industry-wise Advances
Industry-wise Advances ` Crore Outstanding % of Total Outstanding Particulars (Top 20 Industries) FB NFB Total advances (Fund based+ Non fund based) Infrastructure 54 131 24 213 78 345 25.61% Housing Loans (Incl priority sector housing) 26 964 3 26 967 8.82% Basic Metal and Metal Products 13 681 6 9
Slide 12: Composition of Borrowings
Composition of Borrowings ` Crore Dec-15 Dec-14 Domestic 42349 44719 - Capital instruments 18065 17830 -Other borrowings 16205 21067 -Long term infrastructure bonds 8079 5822 Overseas 24244 19745 - Capital instruments 0 0 -Other borrowings 24244 19745 Total borrowings 66593 64464 Capital instruments
Slide 13: Productivity
Productivity ` Crore Business per employee CASA per Employee 26.5 26.2 5.0 26.0 25.7 3.9 25.5 4.0 3.7 3.3 3.2 3.4 24.7 3.1 25.0 3.0 24.5 24.06 23.9 23.93 24.0 2.0 23.5 1.0 23.0 22.5 0.0 FY 2012 FY 2013 FY 2014 FY 2015 Q3 2015 Q3 2016 FY 2012 FY 2013 FY 2014 FY 2015 Q3 2015 Q3 2016 CASA/Employee Busi
Slide 14: Robust growth in PSL book
Robust growth in PSL book ` Crore 90000 36.3% of ANBC in Q3 80000 2016 70000 23262 24694 60000 16099 18628 50000 40000 30000 61517 52639 56009 46476 20000 38850 30.6% of 10000 ANBC in Q3 2015 0 FY 2013 FY 2014 FY 2015 Q3 2015 Q3 2016 PSL (Excl. RIDF) RIDF Relentless focus for increasing PSL Book tow
Slide 15: Investments
Investments ` Crore Q3 FY2016 Particulars HTM AFS HFT Total Government securities 48 117 7 907 5 511 61 536 SASF Securities 4 586 - - 4 586 Shares (Equity) - 2 639 2 639 Shares (Preference) - 370 - 370 Debentures/ Bonds - 6 715 - 6 715 Subsidiaries / Joint Ventures 702 - - 702 Security Receipts - 48
Slide 16: Major Strategic Stakes
Major Strategic Stakes Pivotal role in developing Institutions and financial architecture of the country Analyst Presentation – Q3 FY16 16
Slide 17: Maturity Profile as on Dec-15
Maturity Profile as on Dec-15 ` Crore Maturity Profile Advances Borrowings Deposits Upto 6 months 27303 22865 90635 > 6 months to 1 year 11726 2058 34657 > 1 year to 3 years 82928 13610 72357 > 3 years to 5 years 27681 10835 13262 > 5 years 59286 17225 23780 Total 208924 66593 234691 Rate Sensitive
Slide 18: Other Income
Other Income ` Crore Particulars Quarter Ended 9 Months Ended Growth Growth 31-Dec-15 31-Dec-14 31-Dec-15 31-Dec-14 (%) (%) Commission, Excg & Brkg 540.61 452.40 19 1465.01 1286.48 14 Profit on sale of investments 104.58 242.21 (57) 333.91 395.55 (16) Profit/(Loss) on revaluation of investment -158.
Slide 19: Overhead Efficiency
Overhead Efficiency Overhead Efficiency Cost to Income 120% 103% 50% 47.62% 43.88% 100% 41% 90% 39% 100% 81% 36% 37% 40% 69.94% 80% 56.91% 30% 60% 20% 40% 20% 10% 0% 0% FY 2012 FY 2013 FY 2014 FY 2015 Q3 2016 9M 2016 FY 2012 FY 2013 FY 2014 FY 2015 Q3 2016 9M 2016 Overhead Efficiency and Cost to Inc
Slide 20: Movement in Key Ratios
Movement in Key Ratios ROEA Vs COF NIM 10.71% 12.00% 10.38% 10.28% 10.27% 9.47% 3.00% 9.15% 10.00% 2.50% 2.17% 8.00% 2.12% 2.02% 1.98% 1.96% 8.36% 8.31% 1.90% 6.00% 7.87% 7.80% 2.00% 7.06% 7.29% 4.00% 1.50% 2.00% 0.00% 1.00% FY 2012 FY 2013 FY 2014 FY 2015 Q3 2016 9M 2016 FY 2012 FY 2013 FY 2014 FY
Slide 21: Movement in Key Ratios
Movement in Key Ratios ` Crore Growth in Average CASA Growth in Average Deposits 70000 300000 60000 250000 50000 CASA Total 200000 Deposits 40000 150000 30000 Avg. Avg. Total CASA 100000 Deposits 20000 10000 50000 0 0 FY 2012 FY 2013 FY 2014 FY 2015 Q3 2016 FY 2012 FY 2013 FY 2014 FY 2015 Q3 2016 He
Slide 22: Capital Adequacy
Capital Adequacy ` Crore Particulars Q3 2015 Q3 2016 CET 1 (Rs.) 20949 23034 12.23% 13.00% AT 1 (Rs.) 2507 2560 Tier 2 Capital (Rs.) 11149 12604 4.29% 3.94% Total Capital (Rs.) 34604 38198 RWA (Rs.) 283060 293762 0.87% 0.89% CET 1 7.40% 7.84% AT 1 0.89% 0.87% Tier 1 Ratio 8.29% 8.71% Tier 2 Ratio 3.
Slide 23: NPA Movement
NPA Movement ` Crore For the Quarter For 9 Months Particulars Dec 15 ended Dec 15 Opening Balance 14758 12685 Add: -Fresh Slippages* 5839 8826 Of Which Restructured A/cs are 850 1905 Less: -Recovery 145 360 -Upgradation 50 327 -Write-off 788 1209 Closing Balance 19615 19615 Gross NPA % 8.94% 8.94% N
Slide 24: NPA Classification
NPA Classification 536 ` Crore Sub Standard Particulars Gross NPA 4907 Assets Doubtful Sub Standard Assets 4907 Assets Doubtful Assets 14173 14173 536 Loss Assets Loss Assets Total 19615 Category Outstanding Advances (A) Gross NPA (B) GNPA % of Total O/S Agri and Allied Activities 13501 1393 0.64% I
Slide 25: Summary of Restructured Advances as on December 31, 2015
Summary of Restructured Advances as on December 31, 2015 ` Crore Particulars PA NPA Total Gross 17645 7208 24854 Less: FITL Provision 989 540 1529 Net of FITL Provision 16657 6668 23325 Less: Cases considered for Provisioning 2095 0 2095 @ 0.40% Total 14561 6668 21229 Analyst Presentation – Q3 FY16
Slide 26: Industry-wise Restructured Advances as on December 31, 2015
Industry-wise Restructured Advances as on December 31, 2015 ` Crore % of Total % of Total Net Net Industry Type Outstanding Industry Type Outstanding Outstanding Outstanding advances advances AGRO INDUSTRIES 216 0.10% IRON AND STEEL 180 0.08% AIR TRANSPORT 480 0.22% JEWELLERY MFG 125 0.06% AQUACULTU
Slide 27: Provisions & Contingencies
Provisions & Contingencies ` Crore Quarter Ended 9 Months ended Particulars Dec-15 Dec-14 Dec-15 Dec-14 Depreciation on Investment 71 2 129 92 Provision for NPAs 1 715 (35) 3 321 1 089 Provision towards standard assets 1 247 67 1 640 173 Provision for Restructured Assets (148) 161 (482) 539 (includi
Slide 28: Fast Growing Distribution Network
Fast Growing Distribution Network 2000 1800 1 1 1600 371 368 1 1400 1200 319 455 1 451 1 1000 274 800 264 426 524 559 600 388 377 400 372 282 200 236 373 398 270 95 132 0 FY 2012 FY 2013 FY 2014 FY 2015 Q3 2016 Rural Semi-Urban Urban Metro Overseas 1784 Branches 17 Central Clearing Unit 3225 A
Slide 29: Shareholders
Shareholders Dec 15 Shareholders (%) GOI 80.16 LIC 7.25 FIs / Banks 0.92 GOI FIIs 2.09 80.16% Corp. 1.09 Others 8.47 Total 100.00 LIC Others 7% FIIs 9% 2% FIs / Corp. Banks 1% 1% Analyst Presentation – Q3 FY16 29
Slide 30: Capacity Building – Expanding Network
Capacity Building – Expanding Network Branch network in India 2855 3225 2073 1189 1599 1778 4.71 9.5 11.57 12.56 9.51 9.76 26.24 Dec-13 Dec-14 Dec-15 29.64 31.35 ATMs 32.72 Zones wise distribution of branches 27.02 25.52 11% 12% 26.83 10% 22.26 20.81 14% 10% 16% Dec-13 Dec-14 10% Dec-15 8% Metro Urb
Slide 31: Number of Transactions
Number of Transactions (in Lacs) ATM Debit Card Base 1050 1015 95 91 1000 90 950 85 900 867 80 78 850 800 75 750 70 Dec' 2014 Dec' 2015 Dec' 2014 Dec' 2015 Internet Banking Mobile Banking 4 235 250 191 3 3.03 200 150 2 100 1 50 0 0 Dec' 2014 Dec' 2015 Dec' 2015 Analyst Presentation – Q3 FY16 31
Slide 32: Financial Inclusion as a Business Driver
Financial Inclusion as a Business Driver Sr. No Particulars Dec 14 Dec 15 1 Accounts Opened Under PMJDY (in Lakhs) 7.63 10.26 2 Amount Mobilized under PMJDY (in Lakhs) 1734.15 7200.97 3 No of Rupay Card Issued (in Lakhs) 6.65 9.28 4 A/Cs where OD facility is sanctioned 0 24691 5 A/C where General Cr
Slide 33: Digitalization Initiatives
Digitalization Initiatives Launched Mobile App based Banking - IDBI GO Mobile App (Android Mobiles) Established 13 eLounges across PAN India Installed 107 Bunch Note Acceptors (BNA) Introduced JusTab (Tab Banking Facility) for Account opening process Launched eWallet - PayApt, Virtual Debi
Slide 34: Major Awards & Accolades
Major Awards & Accolades Cont… Analyst Presentation – Q3 FY16 34
Slide 35: Major Awards & Accolades
Major Awards & Accolades Bank was runner up for IBA Technology Award in following categories: • Best Technology Bank for Mid Sized Bank Category. • Fraud and Risk Management. • Digital Channels. • Enhance Customer experience for using Bank Technology. Analyst Presentation - Q4 & FY15 35
Slide 36: Key Business Initiatives
Key Business Initiatives Retail Assets/ Alternate Channels – New Product/Services IDBI Bank set up a state-of-the-art Security Operations Centre (SOC) at its Data Centre, Belapur, Navi Mumbai. IDBI Bank conducted ‘Kisan Sangosthi’ at various villages all over India to mark the celebration of ‘Farmer
Slide 37: Strategies & Way Forward
Strategies & Way Forward Global Expansion Plans, particu larly in Intensive Singapore efforts for and recovery from Shanghai. NPLs Buoyancy in Continue the Fee Based focus to Income increase exposure in Retail Scaling up Advances, p CASA and articularly Retail Priority Sector Deposits Analyst Presen
Slide 38: Analyst Presentation – Q3 FY16
Analyst Presentation – Q3 FY16 38