Idbi Bank Limited · NSE:IDBI
Idbi Bank — Q2 FY2020 Earnings Presentation
53 slides from Idbi Bank's earnings presentation, Nov 8, 2019
Slide 1: Cover letter to stock exchanges
3utitesTrf ES IDBI Bank Limited tiarfa chleirdel : 3trte3irl d'142, Regd. Office : IDBI Tower, gLerdt cae,C;Ctd, trtg, WTC Complex, Cuffe Parade, CIN: L65190MH2004G01148838 - 400 005. Mumbai - 400 005. c vilot : (+91 22) 6655 3355, 2218 9111 Zin TEL.: (+91 22) 6655 3355, 2218 9111 cr : (+91 22) 2218
Slide 2: Presentation to Analysts Financial Results Q2 FY 2020
PRESENTATION TO ANALYSTS FINANCIAL RESULTS Q2 FY 2020 November 08, 2019
Slide 3: Content
Content Highlights Financial Performance Business Performance Treasury Operations Asset Quality Capital Prompt Corrective Action Matrix Digital Banking & Financial Inclusion Subsidiaries IDBI-LIC Synergy 2
Slide 4: Highlights
|@ IDBI BANK | 3
Slide 5: Highlights
Highlights YoY QoQ Rs.1631 Cr Rs.1631 Cr NII 25% 12% Rs.1301 Cr Rs.1458 Cr 2.33% 2.33% NIM 53 bps 20 bps 1.80% 2.13% Rs.1009 Cr Rs.1009 Cr Operating Profit 19% 6% Rs.850 Cr Rs.951 Cr Rs.3602 Cr Rs.3801 Cr Net Loss 4% 9% Rs.3459 Cr Rs.3459 Cr 4
Slide 6: Highlights
Highlights YoY QoQ Rs. 3489 Cr Rs. 3486 Cr Slippages -41% -41 % Rs.2059 Cr Rs.2059 Cr 2.86% 3.45% Credit Cost 93 bps 152 bps 1.93% 1.93% 17.30% 8.02% Net NPA -11.33% -2.05% 5.97% 5.97% 91.25% 91.25% PCR 22.53% 3.46% 68.72% 87.79% 5
Slide 7: Highlights
Highlights YoY QoQ Rs. 1,57,791 Cr Rs. 1,36,705 Cr Net Advances -16% -3% Rs.1,32,718 Cr Rs.1,32,718 Cr Rs 2,36,227 Cr Rs 2,31,830 Total Deposits -2% 0.45% Rs 2,31,830 Rs 2,30,784 Rs 93692 Cr Rs 93692 Cr Retail Advances (Gross) 7% 2% Rs 87780 Cr Rs 92185 Cr Rs.104027 Cr Rs.104027 Cr CASA 16% 4% Rs.90
Slide 8: Financial Performance
mlatelarestel Performance |@ IDBI BANK] 7
Slide 9: Profit & Loss
Profit & Loss (Rs.Crore) Quarter ended Variance Variance Variance Particulars H1 Sep-18 H1 Sep-19 (Y-o-Y) Sep-18 June-19 Sep-19 (Y-o-Y) % (Q-o-Q) % % Interest Income 5356 5091 5198 (3) 2 11115 10289 (7) Interest Expenses 4055 3633 3567 (12) (2) 8176 7200 (12) Net Interest Income 1301 1458 1631 25 12
Slide 10: Total Income - Quarterly
Total Income - Quarterly (Rs.Crore) Quarter ended FY Ended Particulars Variance Variance Sep-18 Jun-19 Sep-19 Mar-19 (Y-o-Y)% (Q-o-Q)% Interest on Advances 3438 3197 3359 (2) 5 14381 Interest on Invest. 1654 1570 1552 (6) (1) 6633 including bal. with RBI & Other Inter Bank Funds Other Interest Incom
Slide 11: Fee Based Income - Quarterly
Fee Based Income - Quarterly (Rs.Crore) Quarter Ended FY Ended Other Income YoY Q-o-Q Sep-18 June-19 Sept-19 Mar-19 Growth % Growth % BG Commission 81 57 98 22 74 317 LC Commission 63 60 58 (9) (5) 288 Bills Commission 6 8 7 5 (14) 27 Proc. Fee & Incidental Charges 114 120 93 (19) (22) 519 Remittanc
Slide 12: Total Expenses – Quarterly
Total Expenses – Quarterly (Rs.Crore) Quarter ended FY Ended Particulars Variance Variance Sep-18 June 19 Sep-19 Mar-19 (Y-o-Y)% (Q-o-Q)% Interest paid on Deposits 3121 2899 2890 (7) (0) 12526 Interest paid on Borrowings 847 591 597 (29) 1 2975 Interest on RBI / inter bank borrowings 87 143 79 (9) (
Slide 13: Operating Expenses - Quarterly
Operating Expenses - Quarterly (Rs.Crore) 1655 1340 1257 938 730 729 716 611 527 Qtr Sep 18 Qtr Jun 19 Qtr Sep 19 Operating Expenses Other Operating expenses Staff Expenses 12
Slide 14: Provisions & Contingencies- Quarterly
Provisions & Contingencies- Quarterly (Rs.Crore) Quarter Ended FY ended Particulars Sep-18 June -19 Sep-19 FY19 Depreciation on Investment 1 070 182 1011 1604 -MTM Gain/(Loss) (1453) (182) (911) (1696) Provision - NPAs 5 482 7009 3545 22392 Provision - standard assets (70) (918) (220) (28) Provision
Slide 15: Yield Ratios (cumulative)
Yield Ratios (cumulative) Yield on Advances NIM 2.23% 9.14% 2.17% 8.83% 8.82% 2.13% 1.99% 2.03% 8.73% 8.62% 8.65% 1.95% Jun-18 Sep-18 Dec 18 FY 19 June 19 Sep 19 Jun-18 Sep-18 Dec 18 FY 19 June 19 Sep 19 Yield on Advances increased by 49 bps YoY NIM has increased by 24 bps YoY Cost to Income (excl G
Slide 16: Business Performance
Business Performance 15
Slide 17: Balance Sheet
Balance Sheet (Rs.Crore) As at Sep-18 Mar-19 June-19 Sep-19 LIABILITIES Capital 4 181 7 736 7 736 7 736 Reserve & Surplus 18 897 29 875 26 075 22 616 Deposits 2 36 227 2 27 372 2 30 784 2 31 830 Borrowings 54 128 45 288 30 968 30 206 Other Liabilities & Provisions 12 328 10 013 9 559 21 275 Total 3
Slide 18: Balance Sheet Ratios
Balance Sheet Ratios Particulars Sep-18 Mar-19 June-19 Sep-19 Total Business [Dep. + Adv.] (Rs. crore) 394018 374162 367489 364547 SB Deposits to Total Deposits (EOP) 24.14 27.01 25.71 26.26 Current Account Deposits to Total Deposits(EOP) 13.99 15.53 17.44 18.62 Time Deposits to Total Deposits(EOP)
Slide 19: CASA Performance
CASA Performance (Rs.Crore) YoY variance QoQ variance Parameters Sep-18 Mar-19 June-19 Sep-19 (%) (%) Global Deposits 236227 227372 230784 231830 (2) 0.5 CASA Share 38.13 42.54 43.15 44.87 CASA Deposits 90071 96730 99590 104027 15 4 Saving Deposits 57035 61414 59330 60871 7 3 Current Deposits 33037
Slide 20: Cost of Deposit & Cost of Funds (cumulative)
Cost of Deposit & Cost of Funds (cumulative) Cost of Deposits 5.41% 5.44% 5.41% 5.45% 5.29% 5.23% Jun-18 Sep-18 Dec 18 FY 19 June 19 Sep 19 Cost of Funds 5.76% 5.78% 5.80% 5.72% 5.63% 5.58% Jun-18 Sep-18 Dec 18 FY 19 June 19 Sep 19 19
Slide 21: Advances
Advances (Rs.Crore) Parameters Sep-18 Mar-19 June-19 Sep-19 YoY var.(%) QoQ var.(%) Gross Advances 191524 182097 177415 176868 (8) - Standard Gross Advances 130649 132069 125758 124816 (4) (1) NPA Gross Advances 60875 50028 51658 52053 (14) 1 Corporate 103744 88928 85230 83176 (20) (2) Retail 87780
Slide 22: Increasing RAM
Increasing RAM % of Retail Share in Advances % of Agri Share in Advances 35 10 34 33 9 29 59477 8 8 15760 16244 Sep-18 Mar-19 Jun-19 Sep-19 Sep-18 Mar-19 Jun-19 Sep-19 % of MSME Share in Advances % of RAM Share in Advances 9 8 52 7 7 51 50 46 91698 16461 Sep-18 Mar-19 Jun-19 Sep-19 Sep-18 Mar-19 Jun
Slide 23: Retail Products Growth
Retail Products Growth (Rs.Crore) Structured Retail Assets Sep-18 Dec-18 Mar-19 June-19 Sep-19 Growth (YoY) (%) Growth (QoQ) (%) HL 33803 35379 37736 38669 39944 18 3 LAP 11229 11925 12774 12714 12761 14 - EL 943 966 991 1003 1058 12 6 PL 457 502 551 559 572 25 2 AL 1706 1899 1983 1994 1985 16 - Str
Slide 24: Priority Sector
Priority Sector (Rs.Crore) Sep-18 Mar-19 Sep-19 as Growth Particulars Sep18 as % of Mar 19 as % of Sep19 % of over ANBC ANBC ANBC March-19 Actuals Actuals Actuals Actuals Actuals Actuals Actuals 1 2 3 4 5 6 7 (8)=[(6)-(4)] ANBC 210593 207885 193221 Priority Sector Advances (a+b+c) 86894 41.26 90686
Slide 25: Priority Sector
Priority Sector (Rs.Crore) Sep-18 Mar-19 Sep-19 National Particulars Goals Achieved O/S Achieved O/S Achieved O/S Priority Sector ( of ANBC) 40 41.26 86894 43.62 90686 41.29 79780 Total Agricultural Advance ( of ANBC) 18 15.59 32835 18.08 37588 19.06 36820 Small & Marginal Farmers ( of ANBC) 8 6.01
Slide 26: Top 20 Industry-wise Advances
Top 20 Industry-wise Advances (Rs.Crore) Outstanding as on 30.09.2019 Top 20 Industries % of Total FB NFB Total GNPA FTNPA FB+NFB Infrastructure 32275 20659 52934 17.44% 13881 384 -Transport 11132 5998 17130 5.64% 5993 373 -Energy 18433 7360 25793 8.50% 7273 0 -Water and Sanitation 1561 1496 3057 1.
Slide 27: Treasury Operations
Treasury Operations |@ IDBI BANK | 26
Slide 28: Treasury Operations
Treasury Operations (Rs.Crore) Quarter ended Year Ended Particulars Sep-18 Jun-19 Sep-19 Mar-19 Profit/ (Loss) on sale of investments (net) (A) 122 187 275 336 -Profit from Strategic Sale (Investments) 216 - 103 216 -Others (a) (93) 187 172 120 Profit/(Loss) on revaluation of investments (net) (B) -
Slide 29: Investments
Investments (Rs.Crore) 1% 3% Category Sep-18 Mar-19 June-19 Sep-19 36% 30% HTM 59675 55114 55189 59129 HFT AFS 34410 35641 27154 26906 AFS HFT 675 2317 2855 2746 HTM 67% Total 94760 93073 85198 88781 63% AFS BREAKUP Sep-18 Sep-19 1201 Parameter Sep-18 March-19 June-19 Sep-19 2727 SLR 76162 72125 663
Slide 30: Asset Quality
Asset Quality |@ IDBI BANK | 29
Slide 31: Asset Quality
Asset Quality (Rs.Crore) PCR improved from 68.72% (Sep 2018) to 91.25% (Sep 2019) Particulars Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Gross Advances 191524 186580 182097 177415 176868 Gross NPAs 60875 55360 50028 51658 52053 Gross NPAs as % of Gross Advances 31.78 29.67 27.47 29.12 29.43 Total Provisions
Slide 32: NPA Movement
NPA Movement (Rs.Crore) DESCRIPTION Q2 FY 19 Q3 FY 19 Q4 FY 19 FY 19 Q1 FY 20 Q2 FY 20 Opening Balance 57807 60875 55360 55588 50028 51658 Add: a. First Time NPA 3489 2211 1781 15281 3486 2059 b. Increase in existing NPAs 765 784 430 2927 622 479 Less: c. Settled 570 3440 927 6443 729 1234 d. Upgrad
Slide 33: NPA Movement
NPA Movement (Rs.Crore) DESCRIPTION Gross NPA Prov NPV Loss NCLT Prov Net NPA Opening Balance 51658 40460 1 233 10963 Add: a. First Time NPA 2059 622 0.37 - 1437 b. Increase/Ageing 479 4778 - 6 (4306) Less: c. Settled 1234 1169 0.13 218# (153) d. Upgradation 525 196 0.02 - 329 e. Written off 384 384
Slide 34: Asset Quality
Asset Quality GROSS NPA NET NPA (Rs.Crore) 60875 27295 55360 51658 52053 50028 21360 14837 10963 7919 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Quarterly Fresh Slippages Recoveries & Upgradation 3489 3486 3586 2211 2059 1781 1759 1161 1089 867 Sep-18 Dec-18 Mar-19 Jun-19
Slide 35: NCLT – Summary – RBI List 1st & 2nd
NCLT – Summary – RBI List 1st & 2nd (Rs.Crore) Sep30, 2019 Sep30, 2019 Particulars RBI 1st List RBI 2nd List No. of Cases 12 29 Cases where IDBI Bank has exposure 11 19 IDBI Bank Lead cases 2 4 Cases which have been Admitted 11 14 IDBI Bank Gross Principal O/S (Rs.crore) 13,780 11,043 IDBI Bank Gros
Slide 36: NCLT - Cases filed and admitted
NCLT - Cases filed and admitted (where IDBI Bank has exposure) (Rs.Crore) SUMMARY OF CASES FILED Particulars 30-Sep-19 ASSET CLASS OF NCLT No. GPO ADMITTED CASES Cases Filed by IDBI Bank 37 14,266 Cases filed by other Banks/ Financial Creditor (FC) 131 28,735 Cases filed by Operational Creditors 207
Slide 37: SMA Position
SMA Position (Rs.Crore) Corporate Retail Total Sep-18 Mar-19 June-19 Sep-19 Sep-18 Mar-19 June-19 Sep-19 Sep-18 Mar-19 June-19 Sep-19 SMA 0 4060 935 2589 2879 3646 2379 2331 2404 7706 3314 4919 5283 SMA 1 452 1104 1060 465 1580 1619 1427 1422 2032 2723 2488 1887 SMA 2 927 13 1388 5001 1169 1293 1477
Slide 38: Capital
Capital |@ IDBI BANK] 37
Slide 39: Capital Adequacy
Capital Adequacy (Rs.Crore) Particulars Sep-18 March -19 June-19 Sep-19 CET 1 + CCB (Rs.) 7426 16340 10067 15559 AT 1 (Rs.) 684 413 413 413 Tier 1 Capital (Rs.) 8109 16753 10480 15972 Tier 2 Capital (Rs.) 5457 4497 4375 4129 Total Capital (Rs.) 13863 21250 14854 20102 RWA (Rs.) 192028 183457 170734
Slide 40: Risk Weighted Assets
Risk Weighted Assets (Rs.Crore) Movement of RWA against Advances As on Particulars Jun-18 Sept-18 Dec-18 Mar -19 June -19 Sept-19 Credit RWA 161548 155018 153677 147300 138683 136789 Market RWA 21491 20226 19995 19371 15365 14368 Operation RWA 16785 16785 16785 16785 16686 16686 Total RWA 199823 192
Slide 41: Shareholding Pattern
Shareholding Pattern 6% 8% Sep 2018 3% 86% LIC GOI Others 46% 51% Sep 2019 LIC GOI Others 40
Slide 42: Prompt Corrective Action Matrix
Prompt Corrective Action Matrix 41
Slide 43: Prompt Corrective Action (PCA) Matrix
Prompt Corrective Action (PCA) Matrix Risk Sep-19 Criteria Indicator Threshold 1 (T1) Threshold 2 (T2) Threshold 3 (T3) IDBI – Actual Capital CRAR+CCB <11.5% but Complied (Breach of <9% but >7.5% <7.5% 11.98% (9%+2.5%) >=9% With either CRAR or CET1 Complied Ratio to CET 1+CCB >=6.375% but >=4.875% b
Slide 44: Indicators on Parameters of PCA
Indicators on Parameters of PCA CET 1 % CRAR % Net NPA % 8.91% 9.27% 11.58% 17.30% 11.98% 5.90% 8.14% 6.22% 10.11% 3.87% 8.02% 5.97% Sep-18 Mar-19 Jun-19 Sep-19 Sep-18 Mar-19 Jun-19 Sep-19 Sep-18 Mar-19 Jun-19 Sep-19 Provision Coverage Ratio % Credit RWA to Advances Op. Prft. Excl. gain on strategic
Slide 45: Digital Banking & Financial Inclusion
Digital Banking & Financial Inclusion 44
Slide 46: Digital Frontrunners
Digital Frontrunners Bank’s Summary of performance as per MeitY (as per the latest scorecard shared by MeitY) % of Digital transaction % of Merchant % of Merchant in Average % of Technical Overall Score Bank’s Rank among 51 achievement Deployment Urban Area Decline (UPI) Banks & Financial Institutio
Slide 47: Digital Offering
Digital Offering Availability of 24x7 banking, hence enhancing the convenience for the customer. Linking of other Bank accounts through UPI in mobile Banking application. Higher availability of Staff for Cross-sell/Up-sell. Migration of customers from Branch channel to digital channel, hence
Slide 48: Financial Inclusion
Financial Inclusion Progress Under Pradhan Mantri Jan Dhan Yojana (PMJDY) Parameters Sep-19 Accounts opened (Number in lakh) 8 Deposits (Rs. In Crore) 255 RuPaycards issued (Number in lakhs) 7 Aadhar Seeding under PMJDY(Number in lakhs) 6 Villages Covered (Number) 565 Sub Service Areas (Number) 490
Slide 49: Subsidiaries
Subsidiaries 48
Slide 50: Subsidiaries
Subsidiaries (Rs.Crore) Shareholding Income PAT RoA Net Worth (%) H12019 Line of Activity H12019 H12019 H12019 (30.09.19) (H1 (H1 2018) (H1 2018) (H1 2018) 2018) 31.87 -5.40 -1.63% 309.52 IDBI Capital Market & Merchant Banking & 100.00 Securities Ltd Retail Broking (48.28) (10.92) (3.01%) (325.38) 4
Slide 51: IDBI-LIC Synergy
IDBI-LIC Synergy |@ IDBI BANK | 50
Slide 52: Expanding Synergy Areas & Action
Synergy Areas & Mission 100+ Mission 100+ : Phase-I (109 Points) Mission 100+ : Phase II (166 Points) Expanding Synergy Areas & Action MISSION 109 Pointed 57 New Actions Pointed Actions As on Jun 15: 72 Completed As on Oct 07: 101 Completed Unifying 29 Cr LIC Customers & its Subsidiaries and 2 Cr ID
Slide 53: Thank You
Thank You |@ IDBI BANK] 52