Indian Overseas Bank · NSE:IOB

Indian Overseas Bank — Q2/H1 FY2023-24 Earnings Presentation

42 slides from Indian Overseas Bank's earnings presentation, Oct 28, 2023

  1. Slide 1: Performance Analysis Q2/H1-FY 2023-24

    Performance Analysis Q2/H1-FY 2023-24 1

  2. Slide 2: Index

    INDEX VISION ---------- 3 PERFORMANCE HIGHLIGHTS ---------- 4 FINANCIAL PERFORMANCE ---------- 6 BUSINESS PERFORMANCE ---------- 13 NPA MANAGEMENT ---------- 22 CAPITAL ADEQUACY ---------- 25 FINANCIAL INCLUSION ---------- 27 DIGITAL INITIATIVES ---------- 28 CUSTOMER TOUCH POINT ---------- 33 SHARE

  3. Slide 3: Vision, Core Value, Mission

    VISION CORE VALUE MISSION

  4. Slide 4: Performance Highlights: Business Growth and Profitability

    PERFORMANCE HIGHLIGHTS IND BUSINESS GROWTH EX (Rs. In Crores) Parameters Sep-22 Jun-23 Sep-23 Q-o-Q % Y-O-Y ( %) CASA 111924 116694 119206 2.15% 6.51% BUSINESS GROWTH CASA% 42.76% 44.14% 43.65% (49 bps) 89 bps Tot al Deposit s 261728 264401 273093 3.29% 4.34% Home Loan 22458 24790 25596 3.25% 13.98%

  5. Slide 5: Performance Highlights: Asset Quality and Financial Indicators

    PERFORMANCE HIGHLIGHTS ASSET QUALITY (Rs. In Crores) Parameters Sep-22 Jun-23 Sep-23 Q-o-Q (%) Y-o-Y (%) Gross NPA 14726 13629 9893 -27.41% -32.82% QUALITY Net NPA 4149 2590 1364 -47.32% -67.11% ASSET GNPA% 8.53% 7.13% 4.74% 239 bps 379 bps NNPA% 2.56% 1.44% 0.68% 76 bps 188 bps STREGTHENING FINANCI

  6. Slide 6: Financial Performance

    FINANCIAL PERFORMANCE (Rs. In Crores) Quarter Ending Half Year Ended Growth % Particulars HY 23-24 over Sep-22 Jun-23 Sep-23 H1 FY 22-23 H1 FY 23-24 Q-o-Q % Y-o-Y % HY 22-23 Interest Income 4718 5424 5821 9153 11245 7.31% 23.39% 22.86% Interest Expenses 2764 3102 3475 5445 6577 12.05% 25.72% 20.78%

  7. Slide 7: Total Income

    TOTAL INCOME (Rs. In Crores) Quarter Ending Half Year Ended Growth % Particulars HY 23-24 over Sep-22 Jun-23 Sep-23 H1 FY 22-23 H1 FY 23-24 Q-o-Q % Y-o-Y % HY 22-23 Interest on Loans 3139 3913 4288 6004 8201 9.58% 36.61% 36.60% Interest on Investment 1489 1427 1461 3005 2887 2.38% -1.94% -3.94% Othe

  8. Slide 8: Fee Based Income

    FEE BASED INCOME (Rs. In Crores) Quarter Ending Half Year Ended Growth % Particulars HY 23-24 over Sep-22 Jun-23 Sep-23 H1 FY 22-23 H1 FY 23-24 Q-o-Q % Y-o-Y % HY 22-23 A.Exchange & Commission 88 59 83 164 143 40.22% -5.38% -13.02% B.Income from Non Fund Based 43 46 45 89 91 -2.13% 4.12% 1.71% Busin

  9. Slide 9: Total Expenses

    TOTAL EXPENSES (Rs. In Crores) Quarter Ending Half Year Ended Growth % Particulars HY 23-24 over Sep-22 Jun-23 Sep-23 H1 FY 22-23 H1 FY 23-24 Q-o-Q % Y-o-Y % HY 22-23 Interest on Deposits 2621 2846 3143 5225 5989 10.44% 19.91% 14.61% Interest on Borrowings 143 256 332 220 588 29.91% 132.08% 167.10%

  10. Slide 10: Profit Parameter

    PROFIT PARAMETER (Rs. In Crores) Quarter Ending Half Year Ended Growth % Particulars HY 23-24 over Sep-22 Jun-23 Sep-23 H1 FY 22-23 H1 FY 23-24 Q-o-Q % Y-o-Y % HY 22-23 Operating Profit 1494 1345 1677 2520 3022 24.66% 12.24% 19.93% Provisions 993 845 1053 1627 1897 24.57% 6.01% 16.64% of which NPA P

  11. Slide 11: Performance Ratios - Quarterly

    PERFORMANCE RATIOS - QUARTERLY Cost of Deposits Cost of Funds 4.69 4.81 4.38 4.35 4.44 4.27 4.19 4.11 4.10 4.16 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Yield on Investment Yield on Advances 8.78 8.43 8.52 8.52 5.94 6.00 6.04 5.89 5.86 7.83 Sep-22 Dec-22 Mar-23 Jun-23 Se

  12. Slide 12: Performance Ratios - Quarterly

    PERFORMANCE RATIOS - QUARTERLY Yield on Funds Return on Assets 7.74 7.50 7.27 7.31 0.83 0.73 0.75 0.65 0.62 6.76 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Net Interest Margin Cost to Income 3.27 3.20 3.21 3.12 2.79 56.96 51.62 52.21 49.23 51.53 Sep-22 Dec-22 Mar-23 Jun-23

  13. Slide 13: Business Performance - Global

    BUSINESS PERFORMANCE - GLOBAL (Rs. In Crores) Particulars Sep-22 Jun-23 Sep-23 Q-o-Q (%) Y-o-Y (%) CASA 111924 116694 119206 2.15% 6.51% a)Retail Term Deposits 135188 129729 135221 4.23% 0.02% b)Bulk Deposits 11108 13314 13894 4.36% 25.08% c)Overseas Term Deposits 3508 4664 4772 2.31% 36.01% Term De

  14. Slide 14: Deposit Composition

    DEPOSIT COMPOSITION (Rs. In Crores) Q-o-Q variation Y-o-Y variation Parameters Sep-22 Jun-23 Sep-23 Amount % Amount % Domestic-Deposits Savings Bank 95370 96900 100625 3725 4% 5256 5.51% Current Account 14839 17692 16182 -1509 -9% 1344 9.06% CASA 110208 114592 116808 2216 2% 6599 5.99% Term Deposit

  15. Slide 15: Business Composition

    BUSINESS COMPOSITION BUSINESS PORTFOLIO SHARE SEP- 23 Advances Savings Bank 43% 21% Current Deposits 4% Term Deposits 32% % SHARE OF DOMESTIC ADV : SEP- 23 POP CATEGORY WISE DISTRIBUTION OF DEPOSITS:SEP-23 Retail Metro Corporate/O 24% 46% thers 31% Urban 22% Overseas Agri 3% 25% Rural Semi MSME 11%

  16. Slide 16: Advances

    ADVANCES (Rs. In Crores) Q-o-Q variation Y-o-Y variation Parameters Sep-22 Jun-23 Sep-23 Amount % Amount % Retail 39834 43731 45482 1751 4.00% 5649 14.18% Agri 41814 44853 47003 2150 4.79% 5190 12.41% MSME 31497 35947 39112 3165 8.80% 7615 24.18% Corporate/others 46326 50080 60226 10145 20.26% 13900

  17. Slide 17: RAM Performance

    RAM PERFORMANCE (Rs. In Crores) Parameters Sep-22 Jun-23 Sep-23 Q-o-Q % Y-o-Y % RETAIL BREAK UP -SEP-23 Others Personal RETAIL CREDIT 39834 43731 45482 4.00% 14.18% 4% 24% Of which Home 22458 24790 25596 3.25% 13.98% Vehicle Home Education 3644 3398 3106 -8.60% -14.78% 9% 56% Vehicle 3634 3817 3972

  18. Slide 18: Agriculture

    AGRICULTURE (Rs. In Crores) % Share to Domestic Agri Period Domestic Advances Advances Advances Sep-22 159470 41814 26.22% Mar-23 173669 43988 25.33% Jun-23 174612 44853 25.69% Sep-23 191823 47003 24.50% Agri Advances Sep-23 47003 44853 43988 41814 Sep-22 Mar-23 Jun-23 Sep-23 18 Performance Analysis

  19. Slide 19: MSME

    MSME (Rs. In Crores) Category Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Micro 20061 20201 23654 24420 23607 Small 6864 6927 6959 7207 7471 Medium 4572 4656 4243 4320 8033 Total 31497 31783 34856 35947 39112 MSME BREAKUP:SEP-23 Micro, 60.36% Small, 19.10% Medium,20.54% 19 Performance Analysis Q2-FY24

  20. Slide 20: Investment

    INVESTMENT (Rs. In Crores) Parameters Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Domestic Investments 93337 92642 92134 91170 93744 SLR 65224 65043 64459 63455 66005 Non SLR 28113 27599 27675 27715 27739 Held to Maturity 77861 77454 77742 79981 80938 Available for Sale 15476 15158 14392 11128 12806 Held for

  21. Slide 21: Valuations

    VALUATIONS Particulars Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 *Return on Equity (%) 15.42 16.56 18.32 13.44 16.16 *Basic & Diluted Earning per Share 0.27 0.29 0.34 0.26 0.33 *Price Earning Ratio 64.81 109.29 65.57 92.33 141.48 Book value per share (in Rs) 6.98 7.21 7.75 8.01 8.35 Price/Book value (in Rs

  22. Slide 22: NPA Management

    NPA MANAGEMENT (Rs. In Crores) Details Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 i) Opening Gross NPAs 14919 14726 14333 14072 13629 a. Cash Recov eries 243 340 292 248 329 b. Upgradation 207 380 175 143 181 c. Write-Offs 1287 1356 403 597 3559 d. Sale to ARCs 11 0 0 0 7 ii) Total Reductions (a+b+c+d+e) 17

  23. Slide 23: NPA Management: GNPA, NNPA and PCR

    NPA MANAGEMENT GNPA % NNPA % 8.53% 8.19% 7.44% 7.13% 2.56% 2.43% 1.83% 1.44% 4.74% 0.68% Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 PCR 96.76% 92.63% 94.03% 90.94% 91.34% 86.20% 81.01% 76.79% 71.85% 72.09% Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 PCR (including techwrite off) PC

  24. Slide 24: Sector-wise Credit Deployment & NPA

    SECTOR-WISE CREDIT DEPLOYMENT & NPA (Rs. In Crores) Sep-22 Jun-23 Sep-23 Segmental NPAs ADV NPA Ratio % ADV NPA Ratio % ADV NPA Ratio % Retail 39834 1484 3.72% 43731 1889 4.32% 45482 1377 3.03% Agri 41814 2912 6.96% 44853 2910 6.49% 47003 2228 4.74% MSME 31497 3269 10.38% 35947 2877 8.00% 39112 2373

  25. Slide 25: Capital Adequacy

    CAPITAL ADEQUACY (Rs. In Crores) Particulars Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Market Risk RWA 9058 8695 8208 6506 7814 Operational Risk RWA 15066 15066 15066 16705 16705 Credit Risk RWA 99060 100294 106706 106969 106838 Total RWA (A) 123184 124055 129981 130180 131357 CET 1 14921 15704 16736 17367

  26. Slide 26: Movement of CRAR & RWAs

    MOVEMENT OF CRAR & RWAs CRAR-Q-o-Q Movement 17.00% 16.56% 16.10% 15.14% 15.16% Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Credit RWA to Advance Ratio Total RWA to Advance Ratio 57.36% 57.29% 71.32% 70.87% 56.46% 55.93% 68.77% 68.06% 62.88% 51.14% Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Sep-22 Dec-22 Mar-23 Jun-2

  27. Slide 27: Financial Inclusion

    FINANCIAL INCLUSION PMJDY Account (Number in Lakhs) PMJDY Account Balance (in Crs) 73.55 3546 3541 3509 3510 69.15 67.96 66.18 63.50 3325 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 PMJDY Zero balance Accounts No in Lakhs Jansuraksha Schemes (In Lakhs) 62.02 50.97 43.08 23.

  28. Slide 28: Digital Initiatives: Go Digital

    Digital initiatives IOB MOBILE BANKING APP IOB DIGITAL BHIM IOB UPI PRODUCTS INTERNET BANKING GO DIGITAL !!! 28 Performance Analysis Q2-FY24

  29. Slide 29: IOB Mobile Banking App

    IOB MOBILE BANKING APP Performance Analysis Q4-FY24 29 Performance Analysis Q2-FY24

  30. Slide 30: UPI Means BHIM IOB UPI

    DIGITAL INITIATIVES T&C Apply UPI BHIM IOB UPI MEANS 30 Performance Analysis Q2-FY24

  31. Slide 31: e-BG

    DIGITAL INITIATIVES e -BG Get Your Bank Guarantee Digitally !!! e -BG 31 Performance Analysis Q2-FY24

  32. Slide 32: Digital Outreach

    DIGITAL OUTREACH ATM/CDM USERS INTERNET BANKING REGISTERED USERS (NO OF OUTLETS) (IN LAKHS) 3515 3495 27.77 3477 26.45 3455 25.59 3438 24.73 23.82 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 MOBILE BANKING REGISTERED USERS UPI REGISTERED USERS (IN LAKHS) (IN LAKHS) 79.94 71

  33. Slide 33: Customer Touch Point Pan India

    CUSTOMER TOUCH POINT PAN INDIA Domestic Presence Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Branches 3214 3220 3220 3222 3223 ATM/CR 3438 3455 3477 3495 3515 BC 2228 2742 3190 3322 3891 SEP-23 BRANCHES SEP-23 ATM/CR Rural, Metro, Rural, Metro, 907, 698, 847, 24% 727, 21% 28% 22% Semi Urban, Semi Urban, 655,

  34. Slide 34: Foreign Outreach

    FOREIGN OUTREACH HONG KONG BRANCH SINGAPORE BRANCH COLOMBO BRANCH BANGKOK BRANCH Performance Analysis Q2-FY24

  35. Slide 35: Share Holding Pattern

    SHARE HOLDING PATTERN Category of Shareholder % share Shareholding Pattern-Sep-23 Government of India 96.38% Government of India, FI/Banks 1.23% 96.38% Foreign Portfolio Investor (Corporate) 0.09% Mutual Funds 0.08% Institution, Insurance Companies 0.02% 1.57% Individual 1.69% ESOP/ESOS/ESPS 0.26% I

  36. Slide 36: Strategic Investment Joint Venture

    STRATERGIC INVESTMENT 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 Name of Entity Shareholding % Indian Overseas Bank 18.06% Shareholding % Dabur I

  37. Slide 37: Assets & Liabilities

    ASSETS & LIABILITIES Rs in Lakhs Balance Sheet as at 30.09.2023 LIABILITIES Standalone Consolidated Particulars Sep-23 Sep-22 Sep-23 Sep-22 Capit al 1890241 1890241 1890241 1890241 Reserves and Surplus 746792 500304 707370 460095 Deposit s 27309290 26172833 27326093 26178686 Borrowings 2952874 11381

  38. Slide 38: ESG Initiatives

    ESG INITIATIVES IOB VEHICLE LOAN FOR E BIKE/CAR ENVIRONMENTAL SOCIAL GOVERNANCE IOB TEJAS FOR RENEWAL SOLAR ENERGY EQUIPMENT CREDIT FACILITY TO WIND MILL PAPERLESS BANKING ENVIRONMENTAL 38 Performance Analysis Q2-FY24

  39. Slide 39: ESG Initiatives

    ESG INITIATIVES VARIOUS IOB CREDIT SCHEME FOR WOMEN ENVIRONMENTAL SOCIAL GOVERNANCE THE SAKTHI- IOB CHIDAMBARAM CHETTIAR MEMORIAL TRUST FINANCIAL LITERACY CENTERS (SNEHA) SOCIAL FRIENDLY WORK ENVIRONMENT 39 Performance Analysis Q2-FY24

  40. Slide 40: ESG Initiatives

    ESG INITIATIVES COMPLYING WITH ALL GUIDELINES &REGULATIONS ENVIRONMENTAL SOCIAL GOVERNANCE EFFECTIVE MONITORING CUSTOMER RIGHT POLICY EFFECTIVE CUSTOMER COMPLAINTS RESOLUTION GOVERNANCE 40 Performance Analysis Q2-FY24

  41. Slide 41: 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" "future

  42. Slide 42: Thank You

    THANK YOU We express our heartfelt gratitude to all our stakeholders for their support & trust and solicit their continued patronage to make our beloved Bank grow exponentially in the coming years Please provide your valuable feedback @investor.iobnet.co.in visit us @ https://www.iob.in Follow us on

Indian Overseas Bank — Q2/H1 FY2023-24 Earnings Presentation on 6ix