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IDBI Bank : Presentation on Performance during Q4 FY 2023-24
IDBI Bank : Presentation on Performance during Q4 FY
About this update from Idbi Bank Limited
INVESTORS PRESENTATION FINANCIAL RESULTS Q4 - FY 2023-24 May 04, 2024 Page 1 Disclaimer The information in this presentation is being provided by IDBI Bank Limited (referred to as 'the Bank'). The information contained in this presentation is confidential and may not be copied, published, distributed, transmitted or advertised in any media, website or otherwise. By attending a meeting where this presentation is made or by reading this presentation material, you agree to be bound by following limitations: The information in this presentation has been prepared for use in presentations by the Bank for information purposes only and does not constitute, or should be regarded as, or form part of any offer/ a prospectus / an offer document, / invitation / inducement or advertisement to sell or issue, or any solicitation or any offer to purchase or subscribe for, any securities of the Bank in any jurisdiction. The Bank reserves its rights to alter, modify, or otherwise change in any manner the information contained in this presentation without any obligation to update or to otherwise notify any person about such changes / alteration / modifications made by the Bank. The Bank makes no representation or warranty, express or implied, whatsoever, nor reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or any statement or opinions contained in this presentation. Neither the Bank nor any of its affiliates, directors, advisors, representatives or employees shall have any responsibility or liability whatsoever for any direct or indirect loss howsoever arising to or suffered by any person through use of the information contained in this presentation or otherwise arising in connection with this presentation. The information set out herein may be subject to further updates, completion, revision, verification and amendment and such information may change materially. You must make your own assessment of the relevance, accuracy and adequacy of the information contained in this presentation and must make independent analysis as you may consider necessary or appropriate before using such information. Any opinions expressed in this presentation are subject to change without notice and past performance is not indicative of future results. By attending this presentation you acknowledge that you will be solely responsible for your own assessment of the market position of the Bank and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Bank's business. This presentation contains forward ‐ looking statements based on the currently held beliefs and assumptions of the management of the Bank, which are expressed in good faith and, in their opinion, reasonable. Forward ‐ looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Bank or industry results, to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward ‐ looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding expansion plans and the benefits there from, fluctuations in our earnings, our ability to manage growth and implement strategies, changes in demand, competition in our business including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, our ability to win new contracts, changes in technology, availability of financing, our ability to successfully complete and integrate our expansion plans, liabilities, political instability and general economic conditions affecting our industry. Unless otherwise indicated, the information contained herein is preliminary and indicative and is based on management information, current plans and estimates. Industry and market ‐ related information is obtained or derived from industry publications and other sources and has not been verified by us. Given these risks, uncertainties and other factors, recipients of this document are cautioned not to place undue reliance on these forward ‐ looking statements. The Bank disclaims any obligation to update these forward ‐ looking statements to reflect future events or developments. Previous year figures have been regrouped / restated wherever applicable. By accessing this presentation, you accept this disclaimer and any claims arising out of or in connection with this presentation shall be governed by the laws of India and only the courts in Mumbai, India, and no other courts shall have jurisdiction over the same. Certain figures reported will not add-up due to rounding. Page 2 Content 01 Highlights 02 Financial Performance 03 Business Performance 04 Treasury Operations 09 05 Asset Quality 06 Capital 07 Digital Banking and Financial Inclusion 08 Subsidiaries Way Forward Page 3 Highlights Page 4 Major Highlights for Q4 FY 2024 - Sustained Strong Performance PAT - Rs.1628 crore PBT - Rs.2061 crore Operating Profit - Rs.2175 crore ROA - 1.82% ROE - 20.55% NII - Rs.3688 crore NIM - 4.91% [Core NIM - 3.84%] Core NIM = NIM excluding interest on IT refund and interest income from NPA & TWO accounts Total RWA - Rs.176531 crore Total CRAR - 22.26% Tier 1 Capital - 20.11% Yield on advances - 10.82% Cost of deposit - 4.48% Cost of funds - 4.74%. Net Adv. - Rs.188621 crore Deposit - Rs.277657 crore CASA ratio - 50.43% Net NPA - 0.34% GNPA - 4.53% PCR - 99.09% Page 5 Key Metrics for Q4 FY 2024 Profitability - Strong operating momentum PAT at Rs.1628 crore, up by 44% YoY and 12% QoQ PBT at Rs.2061 crore, up by 43% YoY and 3% QoQ Operating Profit at Rs.2175 crore NII at Rs.3688 crore, grew by 12% YoY and 7% QoQ NIM at 4.91% ROA at 1.82% , up by 39 bps YoY and 12 bps QoQ ROE at 20.55% up by 223 bps YoY and 98 bps QoQ Business Performance - Focus on Granularity Total Deposits at Rs.277657 crore grew by 9% YoY. CASA ratio at 50.43%. CASA at Rs.140027 crore Net Advances at Rs.188621 crore grew by 16% YoY and 8% QoQ Retail Net Advances at Rs.133145 crore and grew by 17% YoY. SRA at Rs.83882 crore grew by 11% YoY Retail Corporate Ratio (Gross Advances) stood at 70:30 against 69:31 as on March 2023 Page 6 Key Metrics for Q4 FY 2024 (contd.) Asset Quality - Improving Trend Net NPA at 0.34%, reduction of 58 bps YoY GNPA at 4.53%, reduction of 185 bps YoY and 16 bps QoQ PCR stood at 99.09%, improved by 115 bps YoY SMA to standard advance stood at 1.77% against 2.15% as on March 2023 Capital - Adequately Capitalised Tier 1 Capital at 20.11%, up by 203 bps YoY and 207 bps QoQ Total CRAR at 22.26%, up by 182 bps YoY and 194 bps QoQ Total RWA stood at Rs.176531 crore Page 7 Financial Performance Page 8 Profit & Loss (Rs.Crore) Particulars Quarter ended Variance FY Ended Mar-23 Dec-23 Mar-24 YoY% QoQ% Mar-23 Mar-24 Variance% Interest Income 5726 6541 6990 22 7 20570 26426 28 Interest Expenses 2446 3106 3302 35 6 9139 12240 34 Net Interest Income 3280 3435 3688 12 7 11431 14186 24 Other Income 1288 973 896 (30) (8) 4372 3611 (17) Net Total Income 4568 4408 4584 - 4 15803 17797 13 Operating Expenses 2143 2081 2409 12 16 7067 8205 16 -Employee Cost 1221 1093 1306 7 19 3533 4254 20 -Other Operating Cost 922 988 1103 20 12 3534 3951 12 Operating Profit 2425 2327 2175 (10) (7) 8736 9592 10 Provisions & Contingencies (Excl. Tax) 984 320 114 (88) (64) 3498 1397 (60) Profit/(Loss) Before Tax 1441 2007 2061 43 3 5238 8195 56 Tax 308 549 433 41 (21) 1593 2561 61 Profit/(Loss) After Tax 1133 1458 1628 44 12 3645 5634 55 Page 9 Net Interest Income (Rs.Crore) Particulars Interest Income Quarter ended Variance FY Ended Mar-23 Dec-23 Mar-24 YoY% QoQ% Mar-23 Mar-24 Variance% Interest on Advances 3842 4328 4762 24 10 13337 17971 35 Interest on Investments 1610 2005 2068 28 3 5949 7737 30 Interest balances with RBI & Other Inter Bank Funds 179 44 85 (52) 94 518 340 (34) Other Interest Income 95 164 75 (21) (54) 766 378 (51) Interest Income 5726 6541 6990 22 7 20570 26426 28 Interest Expense Interest paid on Deposits 2139 2708 2875 34 6 7829 10601 35 Interest on RBI / inter bank borrowings 129 216 243 89 13 438 906 107 Interest paid on Borrowings 178 182 184 3 - 872 733 (16) Total Interest Expenses 2446 3106 3302 35 6 9139 12240 34 Net Interest Income 3280 3435 3688 12 7 11431 14186 24 NIM % 5.01 4.72 4.91 (10) bps 19 bps 4.52 4.93 41 bps Core NIM % 4.14 3.91 3.84 (30) bps (7) bps 3.72 3.90 18 bps Core NIM = NIM excluding interest on IT refund and interest income from NPA & TWO accounts Page 10