Analyst Presentation - Q4 & FY15 2

Size: px

Start display at page:

Download "Analyst Presentation - Q4 & FY15 2"

Heather Greer
5 years ago
Views:

1 Q4 & FY 2015

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 is no 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

Network Diversified customer base Ranks 37 th amongst Completed 130

across mandates till date industrial & ATMs -3000 Retail customer

5 infrastructural base Presence in 1260 of 3000+ and 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 130 Apex role in creating Branches Corporate and top 50 brands across mandates till date industrial & ATMs Retail customer base country/sectors aggregating ` 2.5 infrastructural base Presence in 1260 of and 6.5 (Interbrand Rankings) lakh crore in the country locations million+ Bank ranked 5 th in BFSI category and 2 nd in PSU category 3

4 CASA Retail TD Networth Advances Deposits Business PSL Performance Highlights FY15 (BS parameters) 208, , ,213 79,098 5 % 10% 8 % 15 % 5 197, , ,460 68,738 65,117 67,441 22, % 32 % 3 % 53,352 51,181 21,897 4

5 Performance Highlights Q4FY15 (Profitability) 10.00% 9.75% 9.79% % 2.20% 2.10% 0.68% % NIM ROE ROA 0.65% 0 Fee Income Ope. Profit PAT 546 Quarter Ended Mar-15 Quarter Ended Mar-14 Quarter Ended Mar-15 Quarter Ended Mar-14 5

Performance Highlights FY15 (Profitability) 6.00% 4.00% 2.00% 1.90% 2.17% 3.93% 5.57% 0.38% 6000 4000 2000 2228 2205 5728 5681 1121 0.00% NIM ROE ROA 0.

6 Performance Highlights FY15 (Profitability) 6.00% 4.00% 2.00% 1.90% 2.17% 3.93% 5.57% 0.38% % NIM ROE ROA 0.27% 0 Fee Income Ope. Profit PAT 873 Y-O-Y FY 2015 Y-O-Y FY 2014 Y-O-Y FY 2015 Y-O-Y FY 2014 Profitability adversely impacted due to RIDF yielding significantly lesser returns 6

7 Profit & Loss - Snapshot Particulars Q4 FY15 Q4 FY14 Growth % FY 2015 FY 2014 Growth % Interest Income Interest Expenses Net Interest Income Other Income Total Income Operating Expenses Employee Cost Overhead Cost Operating Profit Provisions & Contingencies NPAs and write offs Restructured Assets Others (Invt., Std Asset, Tax Profit After Tax

8 Balance Sheet - Snapshot As on 31st March 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

Growing Deposit Base Composition FY 2015 300000 250000 Movement of Deposits Current A/c 12% Retail Term Deposits 26% Bulk Term

114932 115522 131241 127278 Retail Term Deposits 25855 44836 54545 51181 67441 Current A/c 23742 31722 33289 25018 30416 Savings Bank

9 Growing Deposit Base Composition FY Movement of Deposits Current A/c 12% Retail Term Deposits 26% Bulk Term Deposits 49% Savings Bank A/c 13% 0 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Bulk Term Deposits Retail Term Deposits Current A/c Savings Bank A/c CASA - CAGR of 14.66% CASA - Annual Growth of 22.05% Composition of CASA and Retail TDs increasing at a brisk pace 9

Credit Base Composition Movement of Advances FY 2015 Domestic Corp. 56% 250000 Overseas Corp.

64% 50000 0 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Term Loans 121340 131957 140803 140704 147372

10 Credit Base Composition Movement of Advances FY 2015 Domestic Corp. 56% Overseas Corp. 11% Retail 33% FY 2014 Overseas Corp. 9% Retail 27% Domestic Corp. 64% FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Term Loans Bills CC/OD Diversified credit portfolio Increasing focus in Retail 10

11 Industry-wise Advances Diversified credit portfolio Particulars Outstanding Committed FB NFB Total FB NFB Total POWER ROADS AND BRIDGES / PORTS INFRASTRUCTURE OTHERS OIL AND GAS/PETROLEUM PRODUCTS IRON AND STEEL TELECOM NBFC TEXTILES GENERAL MACHINERY AND EQUIPMENTS CONSTRUCTION TRADING BANKING CHEMICAL AND CHEMICAL PRODUCTS CEMENT ELECTRICAL MACHINERY AND EQUIPMENTS FERTILIZERS GEMS AND JEWELLERY SUGAR AND SUGAR PRODUCTS METALS AND METAL PRODUCTS(OTHER THAN MFG.OF BASIC IRON AND STEEL) HOUSING FINANCE COMPANIES

12 Productivity Business per employee CASA per Employee FY 2011 FY 2012 FY 2013 FY 2014 FY FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Busi/Employee CASA/Employee Note: Excluding outsourced employees Reflection of Bank s quality and efficient manpower 12

13 37.2% of ANBC in FY 2015 Robust growth in PSL book % of ANBC in FY FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 PSL ( Excl. RIDF) RIDF Relentless focus for increasing PSL Book towards complying regulatory limits 13

14 Investments Particulars FY 2015 FY 2014 HTM AFS HFT Total HTM AFS HFT Total Government securities SASF Securities Shares (Equity) Shares (Preference) Debentures/ Bonds Subsidiaries / Joint Ventures Security Receipts Others (RIDF/SIDBI/NHB,etc) Total Investments

15 SLR Investments Profits from SLR Investments Q4 FY 2015 FY (Rs crore) Cate gory SLR Inve stme nt Portfolio: as on 31-March-2015 Outstanding Inve stme nt As % to Amount Total MTM Gain / (Loss) Provision for MTM Loss (Rs crore) Trading (HFT & AFS) 15,848 20% (13.62) HTM 62,016 80% Total 77, % Maturity Profile of SLR Inve stme nts: as on 31-March-2015 Modified Duration (Rs crore) Category upto 3 years 3-5 years 5-10 years > 10 years Total Trading (HFT & AFS) 1, ,736 6,774 15,848 HTM 7,777 12,918 15,042 26,279 62,016 Total 9,090 12,943 22,778 33,053 77,864 As % to Total 11.7% 16.6% 29.3% 42.4% 100.0% 15

16 Major Strategic stakes Pivotal role in developing Institutions that shaped country s financial architecture 16

17 Maturity Profile as on Mar-2015 Maturity Profile Advances Borrowings Deposits Upto 6 months > 6 months to 1 year > 1 year to 3 years > 3 years to 5 years > 5 years Total

18 Other Income Particulars Quarter Ended Y-O-Y Mar-15 Mar-14 Growth % FY 2015 FY 2014 Growth % Commission, Excg & Brkg Profit on sale of Investments Profit/(Loss) on revaluation of investment (22) (7) (50) (1) Profit on sale of Fixed Assets 0 (0) (621.4) 0 (2) (102.1) Profit on Forex/Derivatives (11.7) (20.9) Dividend from subsidiaries 0 5 (100.0) (29.8) Recovery from Written Off cases (22.7) (58.4) Other Misc. Income (57.5) Total Fee Based Income (4.9) Robust & Efficient Operations Management 18

19 Overhead Efficiency Overhead Efficiency Cost to Income 120% 100% 80% 60% 40% 20% 92% 81% 103% 90% 100% 42% 40% 38% 36% 34% 35% 39% 36% 37% 41% 0% FY 2011 FY 2012 FY 2013 FY 2014 FY % FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Overhead Efficiency nearly 100% and Cost to Income ratio at around 41% is one of the best amongst peer set 19

20 Movement in Key Ratios ROEA Vs COF NIM & ROA 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 9.39% 6.94% 10.38% 10.71% 8.36% 8.31% 10.28% 10.27% 7.87% 7.80% 2.50% 2.00% 1.50% 1.00% 0.50% 2.10% 2.02% 0.73% 0.81% 2.12% 2.17% 0.69% 0.38% 1.90% 0.27% 0.00% FY 2011 FY 2012 FY 2013 FY 2014 FY % FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 ROEA COF NIM ROA 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% CRAR 13.64% 14.58% 13.13% 11.68% 11.76% FY 2011 FY 2012 FY 2013 FY 2014 FY Book value/share FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 *CRAR Figures for FY 2011, FY 2012 & FY 2013 are as per Basel II 20

21 Growth in Average CASA Movement in Key Ratios Growth in Average Deposits CASA Avg. CASA Total Deposits Avg. Total Deposits FY 2011 FY 2012 FY 2013 FY 2014 FY FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Healthy growth recorded in Average CASA and Deposits 21

Capital Adequacy ( ) Particulars FY 2014 FY 2015 CET 1 (Rs.) 20959 20810 AT 1 (Rs.

76% 3.89% 3.58% 0.01% 0.89% Raised AT1 bonds to the tune of 7.78% 7.

22 Capital Adequacy ( ) Particulars FY 2014 FY 2015 CET 1 (Rs.) AT 1 (Rs.) Tier 2 Capital (Rs.) Total Capital (Rs.) RWA (Rs.) % 11.76% 3.89% 3.58% 0.01% 0.89% Raised AT1 bonds to the tune of 7.78% 7.29% ` 2,500 crore in Oct 2014 Tier 1 at 8.18 % as at FY 2015 increased by 39 Basis Points compared to FY 2014 Basel III Compliant FY 2014 FY 2015 CET 1 AT 1 Tier 2 Capital 22

23 NPA Movement Particulars For the Quarter For FY ended Mar 15 Mar 15 Opening Balance Add: -Fresh Slippages* Less: -Recovery Upgradation Write-off Closing Balance Gross NPA % 5.88% 5.88% Net NPA % 2.88% 2.88% Prov. Coverage Ratio as per RBI Guidelines 66.63% 66.63% * Including Ageing Aggressive provisioning - PCR have been highest amongst peers 23

24 NPA Movement For Quarter Mar 15 For FY ended Mar 15 Particulars NPA Provision# Net NPA NPA Provision# Net NPA Opening Balance Additions during period Reductions during period Closing Balance #Including NPV Loss of NPA Advances 24

25 NPA Classification Sub Standard Assets Doubtful Assets Loss Assets Particulars Gross NPA Sub Standard Assets 3020 Doubtful Assets 9360 Loss Assets 305 Total Agri and Allied Activities Industry Services Personal Loans Others Particulars Gross NPA (%) Agri and Allied Activities 9.01 Industry 8.25 Services 4.38 Personal Loans 1.06 Others 1.56 Total

26 Summary of Restructured Advances as on Mar 31, 2015 Particulars PA NPA Total Gross Less: FITL Provision Net of FITL Provision Less: Cases considered for 0.40% Total

27 Industry-wise Restructured Advances as on Mar 31, 2015 Industry Type Net Outstanding Industry Type Net Outstanding AGRO INDUSTRIES 215 IRON AND STEEL 174 AIR TRANSPORT 484 JEWELLERY MFG 125 AQUACULTURE 82 METAL INDUSTRY CEMENT 261 MINING AND QUARRYING 80 CERAMIC INDUSTRY 64 MISC. INDUSTRY 129 CHEMICAL AND FERTILIZERS 70 MOTOR VEHICLES 410 COAL 153 OIL EXPLORATION 69 DAIRY FARM AND POULTRY 34 OTHER SERVICES 111 EDUCATION 519 PAPER 174 ELECTRICAL MACHINERY PHARMACEUTICALS 688 ELECTRICITY GENERATION PLASTIC PRODUCTS 35 ELECTRONICS 218 RETAIL STORE 108 ENTERTAINMENT 33 RUBBER 1 FOOD AND BEVERAGES 46 SHIP BUILDING GEM & JWELLERY 288 SUGAR 738 GLASS MFG 521 TELECOMMUNICATIONS 781 HEALTH CARE 7 TEXTILES 608 HOTEL 309 TRANSPORT SERVICES 144 INFRASTRUCTURE WASTE MANAGEMENT 15 Grand Total

28 Provisions & Contingencies Particulars Quarter Ended Y-O-Y Mar-15 Mar-14 FY 2015 FY 2014 Depreciation on Investment Provision for NPAs Provision towards standard assets Provision for Restructured Assets (including FITL) (175) (19) 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 1 368 319 1 1 451 1 264 274 426 238 388 524 377 307 372 184 236 282 86 95 132 270 373 FY 2011 FY 2012 FY 2013 FY

29 Fast growing Distribution Network FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Rural Semi-Urban Urban Metro Overseas 1717 Branches 3000 ATMs 10 Currency Chest 6 Regional Processing Units 30 Central Clearing Unit 75 Retail Assets Centers 11 e-lounges Robust branch expansion over the years specially in rural and semi-urban locations 29

30 Shareholders Shareholders Mar-15 GOI 76.50% LIC 9.65% FIs / Banks 1.11% FIIs 3.34% Corp. 1.20% Others 8.21% Total % GOI 76.5% Others 8% Corp. 1% FIIs 3% LIC 10% FIs / Banks 1% 30

31 Major Awards & Accolades in FY15 Ranks 39 t h 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 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 Award for Notable contribution in the field of PMJDY by Federation of Industry, Trade & Services (FITS), New Delhi in March 2015 Financial Inclusion and Payments Systems (FIPS) Awards for the year 2014 for its financial inclusion initiatives under PSU category by Elets Technomedia Star Performance Award 2014 in demat account opening under PSU-Bank Category by NSDL Gold in Campaign of the Year (Thematic) at the Prime Time awards for various advertising campaigns. 31

32 Key Business Initiatives Retail Liabilities New Product/Services in FY15 Rolled out 108 new Sub-members in the Centralized and Decentralized Payment System Introduction of Suraksha Plus Savings Account in Nov 2014 Introduction of Cash Current Account in Feb 2015 Tie-up with Global IME Bank for Nepal Remittance Arrangement MoU with Indian Army and Indian Navy for Salary Account sourcing Tie-up with GCC Exchange & Orient Exchange for sourcing of NRI Account from UAE Consistently introducing/delivering customer savvy products/services 32

33 Key Business Initiatives Retail Assets/ Alternate Channels New Product/Services in FY15 Introduction of Education Loan Scheme Udan, a unique RD Linked Education loan scheme. First PSU Bank to launch Electronic-Insurance Account (e-ia) in association with NSDL Stepped into Credit Card business on Visa Platform Launched E-Lounge at several locations (11 so far) Android based Mobile Banking Application Introduced Signature Debit Card in July 2014 Consistently introducing/delivering customer savvy products/services 33

Strategies & Way Forward Global Continue the focus to

Focus on increasing Overseas Corporate Book by

Expansion Plans, particularly in Singapore and

34 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, particularly in Singapore and Shanghai. Retail Scaling up CASA and Retail Advances, particularly Priority Sector Deposits 34

35 35

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