India s National Export Credit Agency Investor Presentation

Transcription

1 India s National Export Credit Agency Investor Presentation 1

2 Presentation Outline Exim Key Credit Highlights The India Story The Exim Bank Story Appendix 2

3 Exim Key Credit Highlights 3

4 Exim Key Credit Highlights 5 Management Strength Financial Highlights 4 1 India: Strong Macro backed by supportive policy Environment India s engine for growth of International Trade Exim: Proxy to Sovereign Policy Role at National Level 3 2 Set up under an Act of Parliament in 1981 by the Government of India 100% owned by the Government of India ( GoI ). An Instrument of Government policy as India s official Export Credit Agency. Assists GoI in policy formulation and project selection under Economic Diplomacy. International investment grade ratings at par with Sovereign and BBB+ rating by JCR. Policy Business Guaranteed / Insured by the Sovereign. Strong regulatory capital position. Strong access to multiple sources of liquidity, both onshore and offshore. 4

5 The India Story 5

6 Nominal GDP (US$ bn) India: Strong Macro backed by supportive Policy Environment Resilient GDP Growth (1,2,3) % 7.3% 7.4% 6.7% 6.7% 6.9% 6.6% 6.2% 3.7% 3.7% 3.7% 3.2% % 51.8% 52.5% 52.8% 53.8% 30.8% 30.0% 29.8% 29.3% 29.1% 18.6% 18.2% 17.7% 17.9% 17.1% % 2.2% 2.9% 2.5% FY 14 FY 15 FY 16 FY 17 FY 18E Agriculture (%) Industry (%) Services(%) Real GDP Growth (%) CY 2016 CY 2017 CY 2018(p) CY 2019(P) India China United States World World s 6th largest economy based on nominal GDP in CY (2) o Nominal GDP for CY 2017: ~US$ 2.6 tn. (2) World s 3rd largest economy based on GDP measured in PPP terms in CY2017. (2) o GDP in PPP terms for CY 2017: ~US$ 9.5 tn. (2) India jumped up 23 notches to the 77 th position from 100 during on the World Bank s Ease of Doing Business Index GDP growth for Q (Apr-Jun) estimated at 8.2%, as against 7.0% in Q3 (Oct-Dec) and 7.7% in Q4 (Jan-Mar). (3) Favorable demographic profile: 66% of the population is between the age of 15 to 64 years. (4) Source: (1) Institute of International Finance (IIF); (2) IMF World Economic Outlook October Data for CY; (3) Ministry of Statistics and Programme Implementation (MOSPI); (4) World Bank Database; FYxx meansfinancial year endedmarch 31, 20xx.; E- Estimated P - Projected; 6

7 Indian Economy: Key Economic Indicators General Government Debt (% of GDP) (1) Current Account Deficit (2) Currency Movement (4)(6) Centre State FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 (Apr-Jun) % -1.7% % % % % FY 1 4 FY 15 FY 16 FY 17 FY 18E FY 19F Current Account Balance (US$ bn) % of GDP Nov-14 Nov-15 Nov-16 Nov-17 Nov-18 INR RUB BRL CNY IDR PHP 9.3% 5.2% 5.8% 1.2% CPI Inflation Rate (2)** 4.9% 4.5% -3.7% 1.7% CPI 3.6% 2.9% WPI 5.3% 3.3% FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 (Apr-Oct) Key Macroeconomic Metrices Key Parameters FY10 FY14 FY18 Change Gross National Saving (% of GDP) (3) # (210 bps) Gross Domestic Investment (% of GDP) (3) # (320 bps) Gross Fixed Capital Formation (% of GDP) (3) (270 bps) Capital Expenditure (3)(5) ## 30 bps Fiscal Deficit (% of GDP) (3) ## (120 bps) Revenue Deficit (% of GDP) (3) ## (100 bps) FDI Inflows (US$ bn) (2) % Exchange Rate (INR/US$, avg.) (2) % Source: (1) Institute of International Finance (IIF) Database; (2) Reserve Bank of India, Press Release and Online Database (accessed online on 20/11/2018); (3) Central Statistics Office; (4) Bloomberg (Rebased to 100); (5) % of Total Expenditure for FY10 & FY14 and % of Budget estimate for FY19; # Data pertains to FY17 Revised Estimates; ## Data pertains to Budget Estimates FY19 ; ** Base year for CPI Inflation FY14-FY18 is 2012=100. (6) INR: Indian Rupee; RUB: Russian Ruble; BRL: Brazilian Real; CNY: Chinese Yuan; IDR: Indonesian Rupiah; PHP: Philippines Peso 7

8 Sound External Sector Trend of Merchandise Trade (1) Trend of Services Trade (2) (US$ bn) (US$ bn) FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 (Apr- Exports Imports Oil Balance Oct) FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 (Apr- Sep) Exports Imports India s Export Pattern (1) India s Import Pattern (1) FY US$ 314 bn FY US$ 450 bn FY US$ 303 bn FY US$ 466 bn Gems & Jewellery Chemicals Petroleum Products Textiles Base Metals Agri & Allied Products Machinery Transport Equipments Others Petroleum Products Gems & Jewellery Electronics Items Chemicals Machinery Ores & Minerals Base Metals Agri & Allied Products Others Merchandise trade (exports + imports) as percentage of GDP stood at 29.7% in FY18. (1) India s share in global merchandise trade stood at 2.1% (2017). (3) India emerged as the 20 th largest merchandise exporter in 2017; and accounted for 1.7% of global merchandise exports in the same year. (3) India is the 9 th largest exporter of services in 2017, accounting for 3.4% of global services exports. (3) Source: (1) MOCI/IIF; (2) Balance of Payment Statistics, RBI; (3) World Trade Organization (accessed on 20/11/2018). 8

9 External Debt vis-à-vis External Reserves 269% 301% 371% 403% 393% 391% 386% External Reserves : External Debt FC Assets : External Debt (US$ bn) 71% 94% 63% 68% 62% 90% 72% 67% 92% 74% 69% 87% 79% 73% 86% 80% 75% 87% 79% 74% 87% FY13 FY14 FY15 FY16 FY17 FY 18 FY 19 (Apr-Jun) Volatile Capital Flows: External Reserves FCA: Short-term debt External Debt External Reserves External Debt External Reserves FY 13 6% 4% 14% 17% 24% 34% 24% 11% FY 18 FY 13 5% 2% Commercial Borrowings Short Term 38% 19% Non Resident Multilateral Bilateral 9% 2% 89% FY 18 1% 5% 94% Foreign Currency Assets Gold SDRs / Reserve Tranche Trade Credit India has the 6 th largest total reserves in the world [3] (1) Volatile Capital Flows is defined to include cumulative portfolio inflows and short-term debt (RBI). For FY18, Volatile Capital Flow data pertains to end-dec 17; (2) Volatile Capital Flows to Reserves ratio peaked at 97.4% in September 2013; (3) Source: RBI/Ministry of Finance, Government of India; [3] Source: accessed on 27/11/

10 India s Twin Balance Sheet Problem Investment-GDP Ratio soared by 11% points to 38% in four years to FY08. Expectations of sustained double digit growth by corporates. In three years to FY09, bank credit doubled. Indian companies aggressively acquired companies overseas (e.g.: TATA Steel s acquisition of Corus Steel, Hindalco s acquisition of Novelis Inc). GNPA Ratio for Scheduled Commercial Banks (SCBs) soared from 2.3% as on March 31, 2008, to 11.3% as on June 30, 2018 #. GNPA ratio for Public Sector Banks (PSBs) as on March 31, 2018 was 15.6%*. SCB s GNPA Ratio projected to increase to 12.2% by March 2019*. Bunching of bad loan recognition due to previous regulatory forbearance. Not a systemic failure - exogenous factors / delay in recognition. Pre Global Financial Crisis Bad-Loan- Encumbered Banks Accommodative monetary policy tightened due to Post Global Financial Crisis rise in inflation: o Repo rates increased from 4.75% in April 2009 to 8.50% in October INR Depreciation added to the stress in FC debt servicing: o USD/INR depreciated from in February 2013 to in August In 2013, 33% of corporate debt was owed by companies with ICR < 1; increased to above 40% in late Capacity Utilization in Industry declined from 80.9% in Q3FY10 to 73.8% in Q1FY19. Resolution Asset Quality Review (AQR). Schemes - 5:25 Flexible Refinancing, Strategic Debt Restructuring (SDR), Scheme for Sustainable Structuring of Stressed Assets (S4A) - withdrawn w.e.f. February 12, The Insolvency and Bankruptcy Code, 2016 (IBC). Announcement of INR 2.11 tn capital infusion into PSBs, including re-capitalisation bonds of INR 1.35 tn (INR 820 bn capital already allocated to PSBs). In July, GOI infused INR 113 bn in 5 banks (PNB, Allahabad Bank, Andhra Bank, IOB and Corporation Bank). INR 420 bn to be infused by mid-december Source: RBI Economic Survey & , Bloomberg Database. * Financial Stability Report, RBI, June 2018; # Monetary Policy Report, RBI, October

11 Economic, Institutional and Structural Reforms Make in India. Liberalisation of FDI-25 Focus Sectors. Relaxed FDI Norms: 100% permitted in single-brand retail and construction development. Aadhaar backed Direct Benefit Transfer (DBT). The Real Estate (Regulation and Development) Act, 2016 (RERA). The Insolvency and Bankruptcy Code, 2016 (IBC). The Banking Regulation (Amendment) Act, Constitution of Monetary Policy Committee (MPC) under the Monetary Policy Framework Agreement. Currency Exchange (Demonetisation). Goods and Service Tax (GST). Bank Recapitalisation Bonds. Targets set by N K Singh Committee on Fiscal Discipline: o Debt-to-GDP ratio of 40% for Central Government, 20% for State Governments and fiscal deficit of 2.5% of GDP by FY23. India jumped up 23 notches to the 77 th position from 100 during on the World Bank s Ease of Doing Business Index 2019: o Among the top 10 performers consecutively for the second year o India decreased border and documentary compliance time for both exports and imports Moody's upgrades India's Government bond rating to Baa2(stable) from Baa3(positive): o Based on the reforms carried out, India s structural credit strength and global competitiveness have improved. 11

12 The Exim Story 12

13 Bank : India s Export Credit Agency Genesis Set up under an Act of Parliament in 1981 by the Government of India Objectives for providing financial assistance to exporters and importers, and for functioning as the principal financial institution for coordinating the working of institutions engaged in financing export and import of goods and services with a view to promoting the country s international trade shall act on business principles with due regard to public interest Vision To develop commercially viable relationships with a target set of externally oriented companies by offering them a comprehensive range of products and services, aimed at enhancing their internationalisation efforts 13

14 Bank: Proxy to Sovereign Ongoing Government Support Policy Bank An instrument of Government policy as India s official Export Credit Agency. Insurance on Buyers Credit NEIA Portfolio Guarantees on GoI Lines of Credit 100% owned by GoI Proxy to India Sovereign in International Debt Markets 100% owned by Government of India ( GoI ) o o Cannot be liquidated without GoI approval A track record of GoI capital infusion Proxy to the India Sovereign in international debt markets. Board of Directors are appointed by GoI o Comprises top officials from key GoI ministries (Finance, Commerce and Industry and External Affairs) and Reserve Bank of India. Directors Appointed by GoI * National Export Insurance Account Guarantees are provided by GoI for Lines of Credit extended by Exim which are on behalf of and supported by the GoI. Insurance cover provided by NEIA* for assistance under Buyer s Credit - NEIA. 14

15 Bank: Capital Infusion / Proxy to Sovereign Government Capital Injection Exim s credit rating has been on par with India sovereign rating since its establishment International Rating is BBB+ (Stable) International Rating is Baa2 (Stable) International Rating is BBB- (Stable) International Rating is BBB- (Stable) o o Continued GoI support evidenced by capital infusion Budget allocation of INR 5 bn for FY 19 from GoI towards capital, received in July 2018 Domestic Rating is AAA (Stable) Domestic Rating is AAA (Stable) Domestic Rating is AAA (Stable) 15

16 Exim Bank s Line of Business Export Finance Lines of Credit / CFS Buyer s Credit NEIA Loan Portfolio [1][4] Non-Funded Portfolio [1] INR 1120 bn INR 135 bn Export Capability Creation Term Loans Working Capital Export Product Development Pre-Shipment Credit Post-Shipment Credit Country Exposure [1][2][4] Risk Exposure [1][3] Export Facilitation Overseas Investment Finance Import Finance Guarantees and L/Cs Guarantees and L/Cs [1]: As on September 30, 2018; [2] Excluding India; [3] Classification of Net Loans outstanding on the basis of associated Risk; [4] Exposures value of less than 1% are excluded 16

17 Asset Quality Gross Loans outstanding by Major Industries (1) (2)(4) Non Performing Loans (2) (3) Incremental Non Performing Loans (5) Particulars INR bn % As per IRAC (7) Norms % Additional NPAs in compliance with RBI Circular dated Feb 12, % Total % % of Total Loan outstanding NPLs as % of Total GNPLs As per RBI guidelines the PCR (6) is 75.06% (2) Current NPL primarily due to downgrade of the restructured legacy assets and RBI circular on revision of extant instructions on resolution of stressed assets. NPLs are essentially recognition of watchlist assets. 49% of the Incremental NPLs during FY18 were due to revision of instruction by RBI on resolution of stressed assets. Credit watchlist of INR bn for FY19 including Videocon Group Companies (60.67% of the credit watchlist). INR bn NPAs already recognized till September 30, Current credit watchlist of INR bn including IL&FS Group (INR 4.72 bn ). Solvency ratio for the Bank is 2.28 times as on September 30, Note: [1] Excludes advances under Lines of Credit, Buyer s Credit under NEIA and staff loans which cannot be classified under any particular sector; [2] As on September 30, 2018; [3] Excludes restructured standard Loans; [4] Others includes industries with exposure less than 1% of the Gross Loan Outstanding; [5] During FY ; [6] PCR: Provision Coverage Ratio; [7] Income Recognition and Asset Classification Norms of RBI. 17

18 Analysis of NPAs Reason for Slippage of GNPAs (1) Particulars No. of Accounts % of GNPAs [2] Industry Downturn Impact of Global Economic Crisis Liquidity Issues Project Cost and Time Overrun Fraud Marketing Problems Management Issues Total Lending Program Program wise Major Non Performing Loans (1) % of Total NPAs [2] NPAs as % of Gross Loans [3] Overseas Investment Finance 33.12% 4.28% Export Oriented Units 20.08% 2.60% Import Finance 8.53% 1.10% Claims under Guarantee 7.95% 1.03% Long Term Supplier's Credit 4.91% 0.64% Others 25.41% 3.28% Total Note: [1] As on September 30, 2018; [2] NPAs as % of Gross NPAs of the Bank; [3] NPAs under the program as % of Gross Loans Outstanding under the Program. 18

19 Insolvency and Bankruptcy Code: Faster NPL Resolution Regulatory and Policy Thrust Key Highlights 38 large defaulters identified by RBI over 2 lists. Maximum time for resolution is 270 days under the Act. On admission to NCLT #, resolution professional replaces existing management. Existing management accountable for suspect transactions in the previous three years. Upfront provisioning norms set out for banks on admission to NCLT. Willful defaulters excluded from bidding. What does it mean for Lenders? Shift to creditor in control. Process can be initiated by any creditor. Short resolution time. Minority dissenting financial creditors to be paid pro-rata liquidation value. Clear priority of distribution (waterfall) upon liquidation; Government dues subservient to secured creditors and unsecured financial creditors. Exim s Loan Accounts under Exposure to NCLT [1] Outstanding Provision (%) Net Book Value Exim Bank has 73% provision for its portfolio under NCLT. INR bn Expected Recovery (A) Exim Loans % (B) Guarantors for Exim Loans [2] % Total % In the current FY, the Bank has recovered INR bn from the accounts under NCLT. Strengthened the Specialised Group handling stressed loans and recoveries. Status of stressed loans and recoveries monitored by the Audit Committee (a sub-committee of the Board), every quarter. # National Company Law Tribunal; [1] As on September 30, 2018; [2] Corporates under NCLT which are Guarantor to the Loans extended by Exim Bank 19

20 (29.24) (5.08) Financial Highlights Capital Strength Total Assets, Loans and Advances (1) 14.32% 15.34% 14.55% 1.54% 1.54% 1.51% 12.78% 13.80% 13.04% 15.81% 1.52% 14.29% 10.35% 9.85% 1.53% 1.18% 8.82% 8.67% ,152 1,172 1,235 1, ,026 1,075 1,017 FY14 FY15 FY16 FY17 FY18 1HY19 Tier I (%) Tier II (%) CAR (%) FY14 FY15 FY16 FY17 FY18 1HY19 Total Assets (INR bn) Loans and Advances (INR bn) Profitability FY14 FY15 FY16 FY17 FY18 1HY19 Operating Profit (INR bn) Net Interest Income (INR bn) Provisions (INR bn) Net Profit (INR bn) NIM (%) [1] Includes loans and advances to industrial concerns, scheduled banks, foreign governments and other financial institutions and bills of exchange and promissory notes discounted / rediscounted. Amounts stated are net of provisions for non-performing loans (NPLs). 20

21 Profitability Analysis Analysis of Operating Profit for FY Particulars Actuals Anticipated [1] Normal Operating Profit 21,907 21,907 Less: Interest Income Reversal on account of NPAs Less: Interest Income of LOCs not booked due to overdues past 90 days INR mn 1,378 1,346 1,217 1,217 Operating Profit for FY ,311 19,344 Provision for Contingencies 61,610 37,374 Profit / (Loss) Before Tax (42,298) (18,031) Provision for Tax 1,646 1,657 Deferred Tax (14,707) (6,320) Total Provision for Tax (Net of DTA) (13,061) (4,662) Profit / (Loss) After Tax (29,237) (13,368) Breakup of Provisions Particulars Actuals Anticipated [1] Less: Aging Provision for NPAs 10,625 10,624 Less: Provision for Incremental NPAs in Normal Course Less: Provision for Incremental NPAs on account of RBI s circular dated February 12, 2018 INR mn 8,474 8,474 3,234 - Less: Incremental provisions on account of NCLT 2,703 - Less: Provision for Videocon accounts 17,044 - Less: Provision for Gitanjali accounts 1, Less: Provision for Standard Assets -2,310-2,209 Less: Provision for SRs 3,113 3,113 Less: Provision for depreciation on GOI-Secs 1,116 1,116 Less: Provision on other investments 1,350 1,350 Less: Bad Debts 14,456 14,456 Total: Provision for Contingencies 61,610 37,374 [1]: As anticipated prior to RBI circular dated February 12, 2018, on revision of extant instructions on resolution of stressed assets 21

22 Asset Liability Management Foreign Currency Asset Liability Gaps [1] Total Resources/ Loans [1] Total Resources Total Loans and Deposits Fully hedged position on currency and basis risk. Both Assets and Liabilities on floating LIBOR basis. Exim Bank s quasi sovereign status enables issuance at benchmark rates. Debut 10 year 144A issuance in July 2016 and the second 10 year 144A issuance in January 2018 for USD 1 bn each under GMTN Program. Regular issuer in the International debt markets with 25 issuances since 2004 under the MTN including 4 Uridashi and 2 144A issuances. 4 Samurai issuances since February Issuances across currencies including AUD, CHF, CNY, JPY, MXN, SGD, TRY and ZAR [1] As on September 30,

23 Issuances in International Debt Markets USD 250 mn Reg-s JPY 5.55 bn Reg-s JPY 23 bn Samurai JPY 26 bn Samurai USD 50 mn Reg-s JPY 24 bn Reg - S USD 200 mn Reg-s JPY 15 bn Reg-s JPY 20 bn Samurai USD 110 mn Reg-s AUD 39 mn + JPY 2.90 bn + ZAR 370 mn Reg-s (Uridashi) USD 500 mn Reg-s SGD 250 mn Reg-s USD 750 mn Reg-s USD 500 mn Reg-s JPY 20 bn Samurai USD 500 mn Reg-s USD 1 bn 144A / Reg-S Upto March 2009 FY USD 150 mn Reg-s USD 300 mn Reg-s CHF 190 mn Reg - S AUD 200 mn Reg-s JPY bn + MXN mn + TRY mn Reg-S (Uridashi) JPY 15 bn Reg-S (Uridashi) USD 500 mn Reg-s CNY 300 mn Reg-s CNY 300 mn Reg-s AUD mn + USD mn Reg-s (Uridashi) USD 500 mn Reg-s USD 400 mn Reg-s (Formosa) USD 1 bn 144A / Reg-s Samurai Issuance; Uridashi Issuance; 144A Issuance 23

24 Exim Bank - Board of Directors Ramesh Abhishek Secretary, Department of Industrial Policy and Promotion, Ministry of Commerce and Industry T.S. Tirumurti Secretary (Economic Relations), Ministry of External Affairs Anup Wadhawan Secretary, Department of Commerce, Ministry of Commerce and Industry Kalyanaraman Rajaraman Additional Secretary (Investment), Department of Economic Affairs, Ministry of Finance Pankaj Jain Joint Secretary, Department of Financial Services, Ministry of Finance Michael Debabrata Patra Executive Director, Reserve Bank of India Rajnish Kumar Chairman, State Bank of India Geetha Muralidhar Chairman-cum- Managing Director, ECGC Ltd. Dinabandhu Mohapatra Managing Director and CEO, Bank of India Rajkiran Rai Gundyadka Managing Director and CEO, Union Bank of India David Rasquinha Managing Director Debasish Mallick Deputy Managing Director Directors representing Ministries of Finance, Commerce and External Affairs Director representing regulator - RBI Directors representing major Indian Public Sector Banks Director representing India s Export Credit Insurance Company Whole Time Directors 24

25 Exim Bank - Senior Management Highly Experienced Management Team with Government of India (GoI) Sponsorship Mr. David Rasquinha, Managing Director Mr. David Rasquinha has been appointed by GoI as Managing Director of Exim since August He has been with Exim since 1985 and prior to his current role he has held post of Deputy Managing Director. He has handled a wide range of functions including Lines of Credit and Trade Finance and was Representative at Exim s Washington DC Rep Office from Mr. Rasquinha holds a first class graduate degree in Economics from Mumbai University and a post graduate qualification in Business Management from the XLRI, Jamshedpur. Mr. Debasish Mallick, Deputy Managing Director Mr. Debasish Mallick has been appointed by GoI as Deputy Managing Director of Exim since July Mr. Mallick was the Managing Director and CEO of IDBI Asset Management Company Ltd and has nearly three decades of experience in the Banking industry. He has vast experience in the areas of Corporate Banking, International Banking, Resource Mobilisation and Treasury, among others. He holds a post-graduate degree in Economics and is a Certified Associate of Indian Institute of Bankers. 25

26 Exim Bank - Institutionalised Risk Management Culture Risk Management Group Officer of the rank of Chief General Manager designated as Chief Risk Officer for credit, market and operational risks. Tasked with risk management of the Bank s business processes and driving the Bank s risk management strategy. Asset-Liability Management Committee (ALCO) Chaired by Deputy Managing Director and comprises Group Heads of Business Groups, Treasury and Accounts Group, and the Chief Risk Officer. It addresses issues of asset-liability management, interest and exchange rate risks, liquidity risk, etc. Credit Risk Management Committee (CRMC) Chaired by Deputy Managing Director and comprises Group Heads of Business Groups, Treasury and Accounts Group, and the Chief Risk Officer. The CRMC addresses rating and pricing standards, prudential limits on various exposure categories (country, sector, single and group borrower and unsecured exposures, program-wise exposures etc.), provisioning, sector-wise outlook, etc. Integrated Risk Management Committee Risk Management Committee (RMC) Chaired by Deputy Managing Director and comprises senior executives who do not have direct line responsibilities and the Chief Risk Officer. Reviews Bank s risk profile, risk concentrations, operational risk, compliance with prudential limits and overseeing the operations of CRMC and ALCO. Reviews the Bank s risk management policies, investment policies and strategy, and regulatory and compliance issues in relation thereto. Chaired by Deputy Managing Director and comprises of directors appointed on to the Board by the respective institutions (IDBI, ECGC) or the Central Government and the Chief Risk Officer. RMC is responsible for implementing the Risk Management Policy of the Bank, monitoring adherence to various risk limits specified by the RBI / Board, evaluation of overall risks faced in the activities of the Bank and also reviewing the roles and responsibilities of other Risk management Committees. 26

27 Appendix 27

28 Financial Highlights Balance Sheet Figures in INR mn FY14 FY15 FY16 FY17 FY18 HY19 Cash and Bank Balance 51,241 45,119 54,438 36,909 28,155 12,878 Investments 39,163 49,820 53,555 51,029 56,969 52,788 Loans and Advances (1) 745, , ,168 1,026,410 1,075,321 1,017,441 Fixed Assets 807 1,041 1,002 1,298 1,259 1,203 Other Assets 34,296 39,169 52,015 56,427 73,486 82,605 Total Assets 871, ,249 1,152,178 1,172,074 1,235,190 1,166,914 Paid up Capital & Reserves (2) 83,097 99, , ,239 96, ,002 Deposits 23,728 20,145 20,958 3,726 2,861 2,852 Notes, Bonds and Debentures 548, , , , , ,092 Borrowings 142, , , , , ,799 Profit and Loss Account 73,572 98, (5,079) Other Liabilities & Provisions 871, , ,828 91,065 97, ,249 Total Liabilities 83,097 99,026 1,152,178 1,172,074 1,235,190 1,166,914 Note: (1) Includes loans and advances to industrial concerns, scheduled banks, foreign governments and other financial institutions and bills of exchange and promissory notes discounted/rediscounted. Amounts stated are net of provisions for non-performing loans (NPLs). ; (2) Includes paid-up capital and reserves. 28

29 Financial Highlights Profit and Loss Summary Figures in INR mn FY14 FY15 FY16 FY17 FY18 HY19 Interest Earned 68,464 71,479 82,938 84,411 82,384 42,988 Interest Expended 46,840 53,355 60,221 65,022 65,863 35,155 Net Interest Income 21,624 18,124 22,717 19,389 16,521 7,833 Non-Interest Income 4,301 4,728 4,873 7,942 5,399 2,311 Operating Income 25,925 22,852 27,590 27,331 21,920 10,144 Non-interest Expense 1,826 2,109 2,292 2,525 2,608 1,444 Provisions and Contingencies 17,001 13,484 22,140 21,680 61,610 14,207 Net Profit 7,098 7,259 3, (29,237) (5,079) Key Ratios FY14 FY15 FY16 FY17 FY18 Net Interest Margin 2.67% 1.97% 2.17% 1.70% 1.41% 1.23% Gross NPA 2.10% 2.94% 4.17% 9.24% 10.37% 12.93% Net NPA 0.43% 0.60% 0.86% 4.68% 3.75% 4.14% ROAA 0.85% 0.79% 0.29% 0.04% -ve -ve ROAE 9.24% 7.89% 2.93% 0.62% -ve -ve CRAR 14.32% 15.34% 14.55% 15.81% 10.35% 9.85% 29

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