Analyst Presentation Q2 FY16 2

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Annabel Lee
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1 Q2 FY 2016

2 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 past trends or activities should not be taken as a representation that such trends or activities will continue in the future. There isno obligation to update or revise any forwardlooking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak only as of the date of this presentation. Please also refer to the statements of unconsolidated, consolidated and segmental result required by Indian regulations that has been filed with stock exchanges in India. 2

Finance Growing Branch Network Diversified customer base

Branches -1778 Corporate and top 50 brands across mandates

(Interbrand Rankings) lakh crore in the country locations 6.

3 IDBI Bank s Forte Strong Brand Value Significant player in domestic Debt Syndication Leading provider of Long Term Finance Growing Branch Network Diversified customer base Ranks 37 th amongst Completed 133 Apex role in creating Branches Corporate and top 50 brands across mandates till date industrial & ATMs Retail customer base country/sectors aggregating ` 2.6 infrastructural base Presence in 1310 of over and (Interbrand Rankings) lakh crore in the country locations 6.5 million+ As per Brand Trust Report 2015, Bank ranked 5 th in BFSI Category & 2 nd in PSU Category only after SBI. 3

4 CASA Retail TD Networth Bulk TD Advances Deposits Business PSL Performance Highlights Q2 FY16 (Q o Q) 2,04,661 2,39,282 4,43,943 77,427 5 % 1% 3% 31 % 1,95,057 2,38,006 4,33,062 59,060 57,887 71,935 22,909 1,23,083 10% 15% 3% 11% 52,433 62,489 22,148 1,09,460 4

5 Performance Highlights Q2 FY16 (Profitability) 2.50% 2.00% 1.50% 1.00% 0.50% 1.93% 2.06% 2.10% 2.14% 0.15% % NIM ROE ROA 0.14% 0 Fee Income Ope. Profit PAT 120 Quarter Ended Sep-15 Quarter Ended Sep-14 Quarter Ended Sep-15 Quarter Ended Sep-14 5

6 Performance Highlights HY 16 (Profitability) 3.00% 1.94% 2.00% 1.00% 0.00% NIM 1.82% 2.24% 2.03% 0.14% 0.15% ROE ROA 6 Months ended Sep-15 6 Months ended Sep Fee Income Ope. Profit PAT 6 Months ended Sep-15 6 Months ended Sep-14 6

7 Profit & Loss - Snapshot Particulars Q2 FY16 Q2 FY15 Growth % HY 2016 HY 2015 Growth % Interest Income Interest Expenses Net Interest Income Other Income Total Income Operating Expenses (3) Employee Cost (27) Overhead Cost (18) Operating Profit Provisions & Contingencies NPAs and write offs Restructured Assets (85) (334) 242 (238) - Others (Invt., Std Asset, etc) (61) - Tax Profit After Tax

8 Balance Sheet - Snapshot As on 30-Sep Sep-14 LIABILITIES Capital Reserve & Surplus Deposits Borrowings Other Liabilities & Provisions Total ASSETS Cash & Balance with RBI Bal. with banks & money at call Investments Advances Fixed Assets [inc l. leased assets] Other Assets Total

9 Growing Deposit Base Composition Movement of Deposits Retail Term Deposits 30% Q2 FY Current A/c 10% Bulk Term Deposits 46% Savings Bank A/c 14% 0 FY 2012 FY 2013 FY 2014 FY 2015 Q Bulk Term Deposits Retail Term Deposits Current A/c Savings Bank A/c CASA at 24.19% in Q2 FY16 compared to 22.03% in Q2 FY15 9

Credit Base Composition Movement of Advances Overseas Corp.

56% 250000 200000 150000 100000 Q2 2015 Domestic Corp.

131957 140803 140704 147372 146738 Overseas Corp.

10 Credit Base Composition Movement of Advances Overseas Corp. 12% Q Retail 32% Domestic Corp. 56% Q Domestic Corp. 63% FY 2012 FY 2013 FY 2014 FY 2015 Q Term Loans Overseas Corp. 10% Retail 27% Bills CC/OD Diversified credit portfolio Increasing focus in Retail 10

11 Industry-wise Advances Particulars Outstanding FB NFB Total Infrastructure Basic Metal and Metal Products All Engineering Chemicals and Chemical Products (Dyes, Paints, Etc.) Mining and Quarrying Food Processing Construction Vehicles, Vehicle Parts and Transport Equipment s Textiles Cement and Cement Products Petroleum (non-infra), Coal Products (non-mining) and Nuclear Fuels Rubber, Plastic and their Products Gems and Jewellery Paper and Paper Products Beverages (excluding Tea & Coffee) and Tobacco Leather and Leather products Glass & Glassware Wood and Wood Products Others TOTAL Diversified credit portfolio 11

Productivity Business per employee CASA per Employee 26.5 26.0 25.5 25.0 24.5 24.0 23.9 25.7 24.7 26.2 24.12 5.0 4.0 3.0 2.0 3.3 3.7 3.2 3.9 3.4 23.5 23.0 1.0 22.

12 Productivity Business per employee CASA per Employee FY 2012 FY 2013 FY 2014 FY 2015 Q FY 2012 FY 2013 FY 2014 FY 2015 Q Busi/Employee CASA/Employee Note: Excluding outsourced employees Reflection of Bank s strategy of Rebalancing, yielding results 12

Robust growth in PSL book 90000 80000 70000 60000 16099 23262 24796 50000 15248 40000 30000 20000 38850 52639 61517 43812 52631 10000 0 FY 2013 FY 2014 FY 2015 Q2 2015 Q2 2016 PSL (Excl.

13 Robust growth in PSL book FY 2013 FY 2014 FY 2015 Q Q PSL (Excl. RIDF) RIDF Relentless focus for increasing PSL Book towards complying regulatory actual PSL as on March 31, 2015 stood at Rs. 78,830 Cr, as per erstwhile PSL guidelines. However for the purpose of comparison with Q2 FY2016, the same has been taken as per new PSL guidelines. 13

14 Investments Particulars Q2 FY2016 HTM AFS HFT Total Government securities SASF Securities Shares (Equity) Shares (Preference) Debentures/ Bonds Subsidiaries / Joint Ventures Security Receipts Others (CPs/CDs/MF/VCF,etc) Total Investments

15 Major Strategic stakes Pivotal role in developing Institutions that shaped country s financial architecture 15

16 Maturity Profile as on Sep-15 Maturity Profile Advances Borrowings Deposits Upto 6 months 20,833 17,187 1,02,944 > 6 months to 1 year 11,752 1,250 23,587 > 1 year to 3 years 80,573 10,246 75,873 > 3 years to 5 years 30,081 12,476 13,704 > 5 years 61,422 21,847 23,175 Total 2,04,661 63,006 2,39,282 Rate Sensitive Liabilities(RSL) maturing faster than Rate Sensitive Assets(RSA), good to have in falling rates scenario. 16

17 Other Income Particulars Quarter Ended Half Year Ended Sep-15 Sep-14 Growth % Sep-15 Sep-14 Growth % Commission, Excg & Brkg Profit on sale of Investments Profit/(Loss) on revaluation of investment 16 (20) (179) 19 (20) (193) Profit on sale of Fixed Assets (0) (0) (91) 0 (0) (101) Profit on Forex/Derivatives Dividend from subsidiaries 8 13 (40) (25) Recovery from Written Off cases Other Misc. Income (44) (32) Total Fee Based Income Robust & Efficient Operations Management 17

18 Overhead Efficiency Overhead Efficiency Cost to Income 120% 100% 80% 60% 40% 81% 103% 90% 100% 90% 77% 44% 42% 40% 38% 36% 39% 36% 37% 41% 38% 42% 20% 34% 0% FY 2012 FY 2013 FY 2014 FY 2015 Q HY % FY 2012 FY 2013 FY 2014 FY 2015 Q HY 2016 Overhead Efficiency and Cost to Income ratio one of the best in Banking Industry 18

19 Movement in Key Ratios ROEA Vs COF NIM & ROA 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 10.38% 10.71% 10.28% 10.27% 8.36% 8.31% 7.87% 7.80% 9.75% 9.62% 7.35% 7.40% 2.50% 2.00% 1.50% 1.00% 0.50% 2.02% 0.81% 2.12% 2.17% 0.69% 0.38% 1.90% 0.27% 2.06% 1.94% 0.14% 0.15% 0.00% FY 2012 FY 2013 FY 2014 FY 2015 Q HY % FY 2012 FY 2013 FY 2014 FY 2015 Q HY 2016 ROEA COF NIM ROA 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% CRAR 14.58% 13.13% 11.71% 11.76% 11.66% FY 2012 FY 2013 FY 2014 FY 2015 Q Book value/share FY 2012 FY 2013 FY 2014 FY 2015 Q *CRAR Figures for FY 2012 & FY 2013 are as per Basel II 19

20 Growth in Average CASA Movement in Key Ratios Growth in Average Deposits FY 2012 FY 2013 FY 2014 FY 2015 Q CASA Avg. CASA FY 2012 FY 2013 FY 2014 FY 2015 Q Total Deposits Avg. Total Deposits Healthy growth recorded in Average CASA and Average Deposits 20

Capital Adequacy ( ) Particulars Q2 2015 Q2 2016 CET 1 (Rs.) 20989 20804 AT 1 (Rs.) 33 2559 Tier 2 Capital (Rs.

62% CRAR 11.71% 11.66% Tier1 at 8.04 % as at Q2 FY16 increased by 42 Basis Points compared to Q2 FY15 11.71% 11.66% 4.09% 3.62% 0.

21 Capital Adequacy ( ) Particulars Q Q CET 1 (Rs.) AT 1 (Rs.) Tier 2 Capital (Rs.) Total Capital (Rs.) RWA (Rs.) CET % 7.16% AT % 0.88% Tier 2 Capital 4.09% 3.62% CRAR 11.71% 11.66% Tier1 at 8.04 % as at Q2 FY16 increased by 42 Basis Points compared to Q2 FY % 11.66% 4.09% 3.62% 0.01% 0.88% 7.61% 7.16% Q Q CET 1 AT 1 Tier 2 Capital Basel III Compliant Marginal decline in CRAR by 5 Basis Pts due to increase in advances 21

22 NPA Movement Particulars For the Quarter For Half Year Sep 15 ended Sep 15 Opening Balance Add: -Fresh Slippages* Less: -Recovery Upgradation Write-off Closing Balance Gross NPA % 6.92% 6.92% Net NPA % 3.16% 3.16% Prov. Coverage Ratio as per RBI Guidelines 68.13% 68.13% * Including Ageing PCR has been highest amongst peers 22

23 NPA Classification Sub Standard Assets Doubtful Assets Loss Assets Particulars Gross NPA Sub Standard Assets 2760 Doubtful Assets Loss Assets 355 Total Category GNPA Oustanding Advances Gross NPA % of O/S GNPA % to Total GNPA Agri and Allied Activities Industry (Micro, Small, Medium & Large) Services Personal Loans Others Total

24 Summary of Restructured Advances as on September 30, 2015 Particulars PA NPA Total Gross Less: FITL Provision Net of FITL Provision Less: Cases considered for 0.40% Total

25 Industry-wise Restructured Advances as on September 30, 2015 Industry Type Net Outstanding Industry Type Net Outstanding AGRO INDUSTRIES 216 JEWELLERY MFG 125 AIR TRANSPORT 480 METAL INDUSTRY AQUACULTURE 81 MINING AND QUARRYING 75 CEMENT 257 MISC. INDUSTRY 88 CERAMIC INDUSTRY 63 MOTOR VEHICLES 407 CHEMICAL AND FERTILIZERS 73 OIL EXPLORATION 51 COAL 163 OTHER SERVICES 176 DAIRY FARM AND POULTRY 32 PAPER 175 EDUCATION 515 PHARMACEUTICALS 665 ELECTRICAL MACHINERY PLASTIC PRODUCTS 35 ELECTRICITY GENERATION RETAIL STORE 108 ELECTRONICS 177 RUBBER 1 ENTERTAINMENT 32 SHIP BUILDING FOOD AND BEVERAGES 42 SUGAR 639 GEM & JWELLERY 302 TELECOMMUNICATIONS 774 GLASS MFG 537 TEXTILES 619 HEALTH CARE 6 TRANSPORT SERVICES 149 HOTEL 298 WASTE MANAGEMENT 27 INFRASTRUCTURE IRON AND STEEL 178 Grand Total

26 Provisions & Contingencies Particulars Quarter Ended Half Year ended Sep-15 Sep-14 Sep-15 Sep-14 Depreciation on Investment Provision for NPAs Provision towards standard assets Provision for Restructured Assets (including FITL) Income Tax Bad Debts Writen off Other Provisions Total

Fast growing Distribution Network 2000 1800 1600 1400 1200 1000 800 600 400 200 0 1 1 372 368 1 319 1 1 451 459 264 274 426 377 388 524 550 372 236 282 95 132 270 373 396 FY 2012 FY 2013 FY 2014 FY

27 Fast growing Distribution Network FY 2012 FY 2013 FY 2014 FY 2015 Q Rural Semi-Urban Urban Metro Overseas 1778 Branches 3203 ATMs 11 Currency Chest 6 Regional Processing Units 29 Central Clearing Unit 75 Retail Assets Centers 13 e-lounges Robust branch expansion over the years specially in rural and semi-urban locations 27

28 Shareholders Shareholders Sep 15 (%) GOI LIC 8.59 FIs / Banks 1.15 FIIs 2.69 Corp Others 9.92 Total GOI 76.5% Others 10% FIIs 3% LIC 9% Corp. 1% FIs / Banks 1% 28

29 Major Awards & Accolades IDBI Bank has been awarded second prize in linguistic region `B' of nationalised banks and financial institutions category of Rajbhasha Kirti Puraskar for the year Significant rise of 79% in the valuation of Bank s Brand over the previous year as per Brand Finance Banking the world s most valuable Banking Brands Report Ranks 39 th and 37 th among the top 50 brands in the country across sectors as per leading global research organizations, Millward Brown (Brand Z) and Interbrand rankings respectively Award for Notable contribution in the field of PMJDY by Federation of Industry, Trade & Services (FITS), New Delhi in March 2015 Gold in Campaign of the Year (Thematic) at the Prime Time awards for various advertising campaigns. 29

Key Business Initiatives Retail Assets/ Alternate Channels New Product/Services Signed The General Refinance Agreement (GRA) with Micro Units Development and Refinance Agency (MUDRA) Ltd.

30 Key Business Initiatives Retail Assets/ Alternate Channels New Product/Services Signed The General Refinance Agreement (GRA) with Micro Units Development and Refinance Agency (MUDRA) Ltd. IDBI Bank launched a new Loan Application Processing System for its Structured Retail Asset (SRA) Loans Launch of first self service Mini Branch Kiosk for personalized banking. IDBI Bank would be the first bank in the country to make these services available on 24X7 basis. Launch of Tab Banking solution christened JusTab Inaugurated its Treasury Business Continuity Centre (BCP) IDBI Bank s loans, linked to Base Rate became cheaper following a 25 bps reduction in its Base Rate to 9.75% Honourable Prime Minister Shri Narendra Modi flagged off a Financial Inclusion Initiative funded by IDBI Bank, in Varanasi Consistently introducing/delivering customer savvy products/services 30

31 Strategies & Way Forward Global Continue the focus to increase exposure in Buoyancy in Fee Based Income Focus on increasing Overseas Corporate Book by leveraging Bank s brand image. Expansion Plans, particu larly in Singapore and Shanghai. Retail Scaling up CASA and Retail Advances, p articularly Priority Sector Deposits 31

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Analyst Presentation Q1 FY16 2

Analyst Presentation Q1 FY16 2 Q1 FY 2016 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