Indian Overseas Bank इण ड यन ओवरस ज ब क PERFORMANCE ANALYSIS Q2/H1 2018-19
OUR HERITAGE Indian Overseas Bank (IOB) was founded on 10th February 1937 by Shri.M.Ct.M. Chidambaram Chettyar. Objective was to specialize in foreign exchange business and take Bank across the globe. IOB started business simultaneously at Karaikudi, Chennai and Rangoon in Burma (presently Myanmar) followed by a branch in Penang, Malaysia. At the dawn of Independence IOB had 38 branches in India and 7 branches abroad and Deposits stood at Rs.6.64 crores and Advances at Rs.3.23 crores at that time. IOB was one of the 14 major banks that were nationalized in 1969. On the eve of Nationalization in 1969, IOB had 195 branches in India with aggregate deposits of Rs.67.70 crores and Advances of Rs.44.90 crores. IOB sponsored two Regional Rural Banks. Pandiyan Grama Bank in Tamil Nadu and Odisha Gramya Bank in Odisha. Bank s overseas presence in 4 countries namely Singapore, Hongkong, Thailand and Sri Lanka. Page 2
DECADES OF HISTORY 81 years of Glorious History! Good People to Growth with 1937 Opening of First Bank Branch 1930 s 1950 s opening of branches in Kuala Lumpur, Singapore, Colombo, Hongkong 1957 Bank establishes its own training centre 1960s IOB took over 6 other Banks 1964 Inauguration of IOB Head Office 1969 Bank Nationalisation 1990 Took over Bank of Tamil Nadu 2000 Initial Public Offering 2003 Follow on public offering 2005 Launched debit Card 2006 Business Mix crossed Rs. 1 lakh crore. 2007 Merged Bharat Overseas Bank with IOB 2016 Migrated to Finacle 30 th Sept 2018- Business mix of 3732 bn and a branch network of 3303 branches Page 3
KEY STRENGTHS - QUALITATIVE 81 years of Banking Expertise Touch Points: 3303 Domestic Branches, 5 Overseas Branches & 3789 ATMs 57% branches in Rural and SU centres 66% RAM share to Domestic Advances 36 Million Active customers Retail Share: 20.09% Agri Share: 22.79% MSME Share: 23.01% Page 4
HIGHLIGHTS QUANTITATIVE SEP 18 Non Interest Income increased by 9.78% (Y-o-Y) Maintains Healthy Domestic CASA of 36.46% with SB growth at 7.01% RAM portfolio grew by 8.82% (Y-o-Y) Cost of Funds declined by 19 bps (Y-o-Y) Retail segment recorded growth of 17.07% (Y-o-Y) GNPA Ratio reduced by 91 bps and Net NPA reduced by 76 bps on Sequential Quarter basis Operating Profit for H1 2018-19 increased by 34.22% over H1 2017-18 Loss Incurring Branches to Total Branches decreased to 7.69% from 11.13% in Mar18 (32% Reduction in number of branches) Page 5
TOP LINE MOVEMENT Q2 2018-19 Y-o-Y Growth Q-o-Q Growth Savings Bank Rs.67,437 Crs 7.01% 1.20% Current Account Rs.12,782 Crs 3.93% 7.18% Term Deposits Rs.1,42,950 Crs 4.94% 6.20% Deposits Rs.2,23,169 Crs 5.49% 4.69% Advances Rs.1,50,040 Crs -1.72% 0.86% Page 6
HEADLINE NUMBERS Q2 2018-19 Y-o-Y Growth Q-o-Q Growth Interest Income Rs.4,284 Crs -7.79% 0.83% Non Interest Income Rs.1,065 Crs 10.37% -1.25% Interest Expenditure Rs.3,075 Crs -1.60% 1.15% Operating Expenses Rs.969 Crs -33.02% -16.07% Operating Profit Rs.1,304 Crs 25.58% 15.21% Page 7
HEADLINE NUMBERS H1 2018-19 Y-o-Y Growth Interest Income Rs.8,532 Crs -3.40% Non Interest Income Rs.2,143 Crs 9.78% Interest Expenditure Rs.6,116 Crs -2.74% Operating Expenses Rs.2,123 Crs -20.84% Operating Profit Rs.2,436 Crs 34.22% Page 8
HIGHLIGHTS IOB Features in Forbes 500 Best Employers List. Maintains healthy Global CASA Ratio of 35.95% and Domestic CASA Ratio of 36.46% as at Sept 2018. Global Deposits recorded a growth of 5.49% on Y-o-Y basis and ended at Rs. 2,23,169 crores. Global Advances ended at Rs. 1,50,040 crores with improved RAM concentration of 61.91% at Rs. 92,887 crores. Retail Credit recorded a growth of 17.07% with Core Retail growing at 17.27% & Agri grew by 6.59% on Y-o-Y basis. Better NPA Management, Slippages lesser than Recovery in Q2. 62% more recovery than slippages. Provision Coverage Ratio improved from 55.88% in Sep 17 to 61.97% in Sept 2018. Cost to Income Ratio stood favourably lower at 42.62% for Q2 2018-19 Page 9
HIGHLIGHTS Other Income grew by 10.37% for Q2 2018-19 over Q2 2017-18 and recorded a growth of 9.78% for H1 2018-19 over H1 2017-18. Interest Expenditure declined by 1.60% for Q2 2018-19 over Q2 2017-18 and recorded a decline of 2.74% for H1 2018-19 over H1 2017-18 Operating Profit stood at Rs. 1,304 crores for Q2 2018-19 as against Rs. 1,039 crores in Q2 2017-18 registering a growth of 25.58%. Operating Profit for H1 2018-19 stood at Rs. 2,436 crores with a growth rate of 34.22% (Y-o-Y). Net Loss stood at Rs. 487 crores for Q2 2018-19 as against s loss of Rs.1,223 crores for Q2 2017-18 (Reduction of 60%). Cost of Deposits and Cost of Funds dipped by 23 & 19 basis points respectively on Y-o-Y basis for H1 2018-19. Business per employee consistently improved to Rs. 13.76 crores as of Sept-18 as against Rs. 12.61 crores as of Sept-17. Page 10
CUSTOMER TOUCH POINTS 4000 3500 3000 2500 2000 1500 1000 500 Branches ATM BC Year Branches ATM/CR IOB Bank Mitra Mar-15 3381 3571 2841 Mar-16 3397 3793 2894 Mar-17 3373 3679 2738 Mar-18 3332 3552 2663 Jun-18 3326 3608 2663 Sept-18 3303 3789 2663 0 Mar-15' Mar-16 Mar-17 Mar-18 Jun-18 Sep-18 Branch Network - Sept-18 BC: IOB Bank Mitra CR: Cash Recyclers ATM Network - Sept-18 915 28% 736 22% Metro 892 23% 895 24% Metro Urban Urban Semi Urban Semi Urban Rural Rural 981 30% 671 20% 1182 31% 820 22% Note: Merged 30 branches and opened 1 branch during H1 2018-19 Page 11
GLOBAL FOOTPRINTS FOREIGN BRANCHES Branches Representative Office JV Subsidiary Remittance Centres Singapore Hong Kong Main Colombo Bangkok Sukhumvit, Bangkok Dubai Malaysia Singapore Serangoon Road Joint Venture in Malaysia: Joint Venture with Bank of Baroda (40%) and Andhra Bank (25%) with IOB share of 35% Page 12
BUSINESS PERFORMANCE - GLOBAL Rs in Crores Particulars Mar-17 Sep-17 Mar-18 Jun-18 Sep-18 YoY(%)QoQ(%) CASA Deposits 76269 75321 79678 78560 80219 6.50 2.11 Total Deposits 211343 211548 216832 213168 223169 5.49 4.69 Advances 156776 152664 150999 148760 150040-1.72 0.86 Business Mix 368118 364212 367831 361928 373210 2.47 3.12 CASA% 36.09 35.60 36.75 36.85 35.95 0.34-0.91 CD Ratio% 74.18 72.16 69.64 69.79 67.23-4.93-2.55 CASA Deposits Deposit Composition - Domestic 81000 80000 79000 78000 77000 78560 80219 16.16 9.09 Metro 76000 75000 74000 73000 72000 75321 Sep-17' Jun-18 Sep-18 22.52 52.23 Urban Semi Urban Rural CASA Deposits Page 13
DEPOSIT COMPOSITION Rs in Crores Particulars Mar-17 Sep-17 Mar-18 Jun-18 Sep-18 YoY(%)QoQ(%) Savings 63232 63022 66742 66634 67437 7.01 1.20 Current 13037 12299 12936 11926 12782 3.93 7.18 CASA Deposits 76269 75321 79678 78560 80219 6.50 2.11 Term Deposits 135074 136227 137154 134608 142950 4.94 6.20 Total Deposits 211343 211548 216832 213168 223169 5.49 4.69 CASA% 36.09 35.60 36.75 36.85 35.95 0.35-0.91 Deposit Composition Savings Current Term Deposits 31% 63% 6% Page 14
DEPOSITS & COST Rs in Crores Parameters Mar-15 Mar-16 Mar-17 Mar-18 Jun-18 Sep-18 Savings Deposits 47101 52404 63232 66742 66634 67437 Current Deposits 14640 12082 13037 12936 11926 12782 Bulk Deposits 89837 58917 29195 27906 26418 32291 Retail Term Deposits 89197 96029 100514 103743 103526 105970 Overseas Term Deposits 5274 5082 5366 5505 4664 4689 Total Deposits 246049 224514 211343 216832 213168 223169 CASA% 25.09 28.72 36.09 36.75 36.85 35.95 Parameters Mar-15 Mar-16 Mar-17 Mar-18 Jun-18 Sep-18 Interest Paid on Deposits 17246 16250 13026 11494 2797 5809 Cost of Deposits 7.62 7.11 6.17 5.49 5.32 5.35 Interest Paid on Deposits/CoD Deposits 20000 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 Mar-15' Mar-16 Mar-17 Mar-18 Jun-18 Sep-18 9 8 7 6 5 4 3 2 1 0 120000 100000 80000 60000 40000 20000 0 Mar-15' Mar-16 Mar-17 Mar-18 Jun-18 Sep-18 Savings Deposits Current Deposits Bulk Deposits Retail Term Deposits Interest Paid on Deposits Cost of Deposits Overseas Term Deposits Page 16
SECTOR WISE GLOBAL ADVANCES Rs in Crores 200000 200000 180000 160000 140000 179041 16204 9% 83317 162837 172727 17299 10% 70734 14125 155428 156776 9% 58852 12377 142651 180000 152664 150999 150040 160000 8% 12483 8% 6% 9068 140000 8% 7% 54930 46898 48085 140287 138516 140972 120000 100000 47% 41% 38% 36% 31% 32% 32% 120000 100000 80000 60000 40000 20000 0 32615 32437 31804 30564 31022 22% 22% 32251 18% 19% 20% 18% 21% 30820 32132 30237 29348 30146 20% 21% 29236 18% 20% 16% 19% 21% 28183 28318 22653 23887 24189 18033 19% 19% 13% 15% 16% 10% 19% Mar'15 Mar-16 Mar-17 Sep-17 Mar-18 Sep-18 Retail Agri MSME Corporate/Others Overseas Domestic Global 80000 60000 40000 20000 0 Page 17
RISK SPREAD - ASSETS Rs in Crores Details Mar-16 Mar-17 Sep-17 Mar-18 Sep-18 Retail 22653 23887 24189 28183 28318 Agri 30237 29348 30146 30820 32132 MSME 31804 30564 31022 32615 32437 Corporate/Others 70734 58852 54930 46898 48085 Overseas 17299 14125 12377 12483 9068 Global 172727 156776 152664 150999 150040 Overseas 8% Sep-17 Overseas 6% Sep-18 Corporat e/others 38% Retail 15% Agri 19% Corporate /Others 32% Retail 19% Agri 21% MSME 19% MSME 22% Page 18
RAM THE GROWTH DRIVER Rs in Crores 35000 30000 30237 31804 29348 32615 32132 32437 30564 30146 31022 30820 28183 28318 25000 20000 22653 23887 24189 15000 10000 5000 0 Mar-16' Mar-17 Sep-17 Mar-18 Sep-18 Retail Agri MSME Particulars Mar-16 Mar-17 Sep-17 Mar-18 Sept-18 Retail 22653 23887 24189 28183 28318 Agri 30237 29348 30146 30820 32132 MSME 31804 30564 31022 32615 32437 Total RAM 84694 83799 85357 91618 92887 Domestic Advances 155428 142651 140287 138516 140972 % Share of RAM 54.49 58.74 60.84 66.14 65.89 Page 19
GROSS ADVANCES & YOA Rs in Crores 200000 180000 160000 140000 120000 100000 80000 60000 40000 20000 0 181081 179041 172726 156776 150999 148760 150040 10.04 9.94 9.19 8.43 7.51 7.12 7.12 Mar-14' Mar-15 Mar-16 Mar-17 Mar-18 Jun-18 Sep-18 12 10 8 6 4 2 0 Gross Advances REPO RATE & IOB MCLR Yield on Advances 9.70% 9.55% 9.50% 9.50% 8.65% 8.65% 8.55% 8.55% 8.40% 8.40% 8.40% 8.50% 8.60% 8.65% 8.70% 6.50% 6.50% 6.25% 6.25% 6.25% 6.25% 6.25% 6.00% 6.00% 6.00% 6.00% 6.00% 6.25% 6.50% 6.50% Repo Rate IOB MCLR Page 20
RETAIL PERFORMANCE Rs in Crores Share of Retail on Domestic Gross Advances 180000 160000 45 140000 120000 35 100000 80000 60000 14.57% 16.75% 20.34% 20.09% 25 40000 11.17% 11.07% 15 20000 0 31.03.14 31.03.15 31.03.16 31.03.17 31.03.18 30.09.18 Gross Domestic Advance Retail Advance % Share 5 Year Gross Domestic Retail Advance % Share Mar'14 161998 18101 11.17% Mar'15 162838 18033 11.07% Mar'16 155428 22653 14.57% Mar'17 142651 23887 16.75% Mar 18 138516 28183 20.34% Sep 18 140972 28318 20.09% Page 21
RETAIL GROWTH FOR SUSTAINABILITY Retail Credit - By Segment (Rs. in Crore) Growth% - Home Loans & Retail Loans 30000 30.00 26.98 25000 7380 25.00 24.08 20000 15000 7887 6703 1703 6261 2368 2770 4776 20.00 15.00 15.16 17.06 10000 1437 4365 4532 5016 10.00 9.48 5000 7380 9157 10545 13390 5.00 4.87 0 Sept-15' Sep-16 Sep-17 Sep-18 0.00 Sep-16' Sep-17 Sep-18 Home Education Auto Other Retail Loan Home loan Retail loan Page 22
Value of Loans Sanctioned Cumulative - Rs in Crore RETAIL SANCTIONS DEPICTS IMPROVED EFFICIENCY Rs in Crores 16000 Retail Loan Sanctions 14000 12000 10000 8000 6000 FY 2016-17 FY 2017-18 H1 2018-19 4000 2000 0 April May June July Aug Sept Oct Nov Dec Jan Feb Mar *Branch level sanctions Page 23
19.81% 20.46% 21.43% 23.55% 23.01% 190000 170000 150000 130000 110000 90000 70000 50000 30000 10000 MSME PERFORMANCE. Mar'15 Mar'16 Mar'17 Mar'18 Sep'18 Gross Domestic MSME Advance % Share % Share of MSME Credit Medium 13% Small 46% Micro 41% 45 35 25 15 Year Gross DomesticMSME Advance % Share Mar'14 161998 28978 17.89% Mar'15 162838 32252 19.81% Mar'16 155428 31804* 20.46% Mar'17 142651 30564* 21.43% Mar 18 138516 32615* 23.55% Sep 18 140972 32437 23.01% * Netting of Rs. 7500 crores related to Food & Agro processing units migrated and classified under Agriculture Category % Share of MSME Credit (O/S as on Sep 18) Rs. In Crores No of Accounts Rs in Crores Amount in Crores % Share Micro 434229 13304 41% Small 26163 14897 46% Medium 1373 4236 13% Total 461765 32437 100% Page 25
AGRICULTURE ADVANCES - PERFORMANCES 32500 32000 31500 31000 30500 30000 29500 29000 28500 28000 Position of Agriculture Advances 30237 29438 30820 32132 2015-16 2016-17 2017-18 2018-19 (as on Sep18) Outstanding 2500 2000 1500 1000 500 0-500 -1000 3.42% 969 4.69% 1382 Rs. In Crs 1986 2015-16 2016-17 2017-18 2018-19 -799 (as on Sep18) Y-o-Y Growth Y-o-Y Growth -2.64% 6.44% % of Y-o-Y Growth 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% -1.00% -2.00% -3.00% -4.00% % of Y-o-Y Growth 2015-16 30237 969 3.42% Financial Year Outstanding Y-o-Y Growth 2016-17 29438-799 -2.64% 2017-18 30820 1382 4.69% Sep 2017 30146 708 2.41% Sep 2018 32132 1986 6.44% Page 26
PRIORITY SECTOR ADVANCES OVERVIEW Rs. In Crore 63635 39.00% 67615 63984 70040 73900 40.29% 40.33% 47.47% 50.54% 2014-15 2015-16 2016-17 (Avg) 2017-18 (Avg) Priority sector 2018-19 as on Sep'18 Priority Sector Exposure as on 30.09.2018 Education 5.88% Housing 11.08% MSME 42.55% Agriculture 40.23% Other Priority Sector 0.25% Financial Year Priority sector exposure O/s as on 30.09.2018 % Share Agriculture 30632 40% MSME 32398 43% Education 4475 6% Housing 8439 11% Other Priority Sector Priority sector Achievement % of achievement 2014-15 63635 39.00% 2015-16 67615 40.29% 2016-17 (Avg 4 qtrs) 63984 40.33% 2017-18 (Avg 4 qtrs) 70040 47.47% 2018-19 (Sep 18) 73900 50.04% 192 0.25% Total 73900 100% Page 27
AGRI ADVANCES PRIORITY SECTOR Rs. In Crore 35000 30000 25000 17.92% 18.02% 18.19% 20.23% 20.74% 29369 29236 30205 30236 28585 28865 29851 30632 26561 26583 20000 15000 10000 5000 0 2014-15 2015-16 2016-17 (Avg) 2017-18 (Avg) 2018-19 as on Target Achievement % Sep'18 Financial Year ANBC Target (18% of ANBC) Achievement Amount % Amt in Crs 2015-16 167805 30205 30236 18.02% 2016-17 158808 28585 28865 18.19% (4 Quarters Avg) 2017-18 (4 Quarters Avg) 2018-19 (Upto Sep18) 147561 26561 29851* 20.24% 147681 26583 30632* 20.74% *After reduction of PSLC sale of Rs.1300 Crs in FY 17-18 and Rs.1500 Crs in FY 18-19 upto Sep 18. Page 28
INCOME & EXPENSES Particulars Q2 2017-18 Q1 2018-19 Q2 2018-19 YoY(%) Interest Income 4646 4249 4284-7.79 Non Interest Income 965 1078 1065 10.37 Total Income 5610 5327 5348-4.67 Interest Expended 3125 3041 3075-1.60 Staff Expenses 709 769 521-26.58 Other Expenses 737 386 448-39.23 Total Expenses 4572 4195 4044-11.54 Operating Profit 1039 1132 1304 25.58 H1 2017-18 Rs in Crores H1 2018-19 YoY(%) 8833 8532-3.40 1952 2143 9.78 10785 10675-1.02 6288 6116-2.74 1500 1289-14.06 1181 834-29.44 8970 8239-8.15 1815 2436 34.22 Page 29
PROFITABILITY Particulars Q2 2017-18 Q1 2018-19 Q2 2018-19 YoY(%) Operating Profit 1039 1132 1304 25.58 Provisions 2261 2051 1791-20.77 of which NPA Provisions 2110 2294 1678-20.46 Other Provisions 151-242 113 146.64 Net Profit/Loss -1223-919 -487-60.14 H1 2017-18 Rs in Crores H1 2018-19 YoY(%) 1815 2436 34.22 3537 3843 8.66 3910 3972 1.60-373 -129-65.31-1722 -1407-18.29 6000 5000 4000 3000 2000 1000 0-1000 -2000-3000 -4000-5000 4736 2261 2051 1656 1791 1276 777 1039 1129 1132 1304 685 Q1 17-18 Q2 17-18 Q3 17-18 Q4 17-18 Q1 18-19 Q2 18-19 Operating Profit Provisions Net Profit/Loss Page 30
OTHER INCOME Rs in Crores Particulars Q2 17-18 Q1 18-19 Q2 18-19 YoY(%) H1 17-18 H1 18-19 YoY(%) Exchange & Commission 244 211 254 4.22 Proft on Sale of Investments 88 72 10-88.42 Profit on Exchange 149 119 137-8.29 All other income 484 676 664 37.20 Total Other Income 965 1078 1065 10.37 449 465 3.72 514 82-84.06 290 256-11.75 700 1340 91.52 1952 2143 9.78 Other Income - Q2 2018-19 All other income 62% Exchange & Commission 24% Profit on Exchange 13% Proft on Sale of Investments 1% Page 31
PERFORMANCE RATIOS Cost of Deposits (%) Yield on Advances (%) 5.60 5.55 5.50 5.45 5.40 5.57 5.58 5.39 5.44 5.39 9.00 8.00 7.00 6.00 5.00 7.12 8.51 7.52 6.95 7.12 7.14 5.35 5.32 4.00 5.30 3.00 5.25 2.00 5.20 1.00 5.15 Q1 17-18 Q2 17-18 Q3 17-18 Q4 17-18 Q1 18-19 Q2 18-19 0.00 Q1 17-18 Q2 17-18 Q3 17-18 Q4 17-18 Q1 18-19 Q2 18-19 Cost to Income Ratio (%) NIM (%) 70.00 60.00 50.00 40.00 30.00 61.40 58.21 65.71 58.49 50.48 42.62 3.00 2.50 2.00 1.50 1.65 2.46 1.92 2.73 1.92 1.91 20.00 1.00 10.00 0.50 0.00 Q1 17-18 Q2 17-18 Q3 17-18 Q4 17-18 Q1 18-19 Q2 18-19 0.00 Q1 17-18 Q2 17-18 Q3 17-18 Q4 17-18 Q1 18-19 Q2 18-19 Page 32
MOVEMENT OF RWA & CRAR Rs in Crores Particulars Sep-17 Dec-17 Mar-18 Sep-18 Market Risk RWA 14643.44 16565.23 15189.38 14859.25 Operational Risk RWA 14758.84 14758.84 14758.84 15778.67 Credit Risk RWA 119483.55 115325.24 104960.48 96903.45 Total RWA (A) 148885.82 146649.31 134908.69 127541.37 CET 1 10539.91 9588.47 8626.32 9071.53 CET 1% 7.08% 6.54% 6.39% 7.11% Tier 1 11609.91 10658.47 9666.32 9111.53 Tier 1% 7.80% 7.27% 7.17% 7.15% Tier 2 3751.72 3620.79 2816.58 2566.91 Tier 2% 2.52% 2.47% 2.08% 2.01% Total Capital (B) 15361.63 14279.26 12482.90 11678.44 CRAR (B/A) 10.32% 9.74% 9.25% 9.16% Total RWA to Advance Ratio 97.53% 96.78% 89.34% 85.00% Credit RWA to Advance Ratio 78.27% 76.10% 69.51% 64.58% Page 33
CAPITAL OPTIMISATION Rs in Crores 100.00% 95.00% 90.00% 85.00% 80.00% 75.00% 70.00% 65.00% 60.00% RWA to Advance 97.53% 96.78% 89.34% 85.00% Sep-17 Dec-17 Mar-18 Sep-18 80.00% 78.00% 76.00% 74.00% 72.00% 70.00% 68.00% 66.00% 64.00% 62.00% 60.00% Credit RWA to Advance 78.27% 76.10% 69.51% 64.58% Sep-17 Dec-17 Mar-18 Sep-18 Page 34
BRANCH PROFITABILITY Details Mar-14' Mar-15 Mar-16 Mar-17 Mar-18 Jun-18 Sep-18 Branches 3265 3381 3397 3373 3332 3326 3303 % of Loss Incurring Branches 23.64 21.95 21.14 15.89 11.13 11.67 7.69 3450 23.64 25.00 21.95 21.14 3400 3350 3300 3381 3397 15.89 3373 11.13 3332 11.67 3326 7.69 3303 20.00 15.00 3250 3265 10.00 3200 5.00 3150 Mar-14' Mar-15 Mar-16 Mar-17 Mar-18 Jun-18 Sep-18 0.00 Branches % of Loss Incurring Branches *Branch level profitability is assessed based on Internal Transfer Price Mechanism followed by the Bank Page 35
NPA MANAGEMENT Rs in Crores Details Q2 2017-18 FY 2017-18 Q1 2018-19 Q2 2018-19 Opening Gross NPAs 35453 35098 38180 38146 Cash Recoveries* 405 1105 565 1723 Upgradation 235 2330 467 342 Write-Offs 1061 7018 1262 1425 Sale to ARCs/Others** 1736 3290 268 289 Total Reductions (a+b+c+d) 3437 13743 2563 3779 Fresh Slippages to NPA category + Other Debits 2693 16825 2529 2743 Closing Gross NPAs (i-ii+iii) 34709 38180 38146 37110 Gross NPA (%) 22.73 25.28 25.64 24.73 Net NPAs (Absolute) 18950 20400 19642 18876 Net NPA (%) 13.86 15.33 15.10 14.34 Provision Coverage Ratio 55.88 59.45 61.10 61.97 Page 36
ADDITION/REDUCTION OF GNPA 12000 Addition/ Reduction in GNPA 2000 10000 1800 1600 8000 1400 1200 6000 1000 4000 800 600 2000 400 200 0 Q1 2017-18 Q2 2017-18 Q3 2017-18 Q4 2017-18 Q1 2018-19 Q2 2018-19 Total Additions Total Recovery Cash Recoveries 0 Page 37
INVESTMENTS Rs in Crores Global Investments 82000 80000 78000 76000 74000 72000 70000 68000 66000 64000 62000 79740 79626 76573 72248 70263 71640 68006 Mar-14' Mar-15 Mar-16 Mar-17 Mar-18 Jun-18 Sep-18 Parameters Mar-16 Mar-17 Mar-18 Jun-18 Sep-18 Domestic Investments 76155 68627 66619 66854 72008 SLR 64028 58009 53019 53606 56259 Non SLR 12127 10618 13600 13248 15749 Held to Maturity 50862 45709 46543 46659 48570 Available for Sale 25273 22816 20076 19993 23438 Held for Trading 20 102 0 202 0 Investment by Overseas Branches 3471 3621 3644 4786 4565 Global Investments 79626 72248 70263 71640 76573 Page 38
STRATEGIC INVESTMENTS JOINT VENTURE IOB entered into Non Life Insurance Business with Universal Sompo General Insurance (USGI) Company Limited with equity participation of 18% along with the other Banks and Institutions Name of Entity Shareho lding % Investment Shareholding % 10.74% Indian Overseas Bank 18.06% 66 Allahabad Bank 28.52% 105 Sompo Japan Nipponkoa Insurance Inc 28.42% 105 Karnataka Bank Ltd 14.26% 53 14.26% 28.42% 18.06% 28.52% Dabur Investment Corporation 10.74% 40 Total 100.00% 368 Indian Overseas Bank Sompo Japan Nipponkoa Insurance Inc Dabur Investment Corporation Allahabad Bank Karnataka Bank Ltd USGIC has entered into Bancassurance tie up with Allahabad Bank, IOB & Karnataka Bank. IOB entered into Corporate Agency arrangements with effect from 20 th December 2008 for distribution of USGI products. Page 39
SHARE HOLDING PATTERN SEPT 2018 DIVIDEND DECLARED AND PAID (in %) YEAR Interim Final Dividend Dividend 2000-01 10% 2001-02 12% 2002-03 16% 2003-04 12% 8% 2004-05 14% 10% 2005-06 26% 2006-07 30% 2007-08 35% 2008-09 45% 2009-10 35% 2010-11 50% 2011-12 45% 2012-13 20% 2013-14 7% 5% 2014-15 - - 2015-16 - - 2016-17 - - 2017-18 - - 0.51 5.64 Shareholding Pattern % 0.47 0.27 0.00 3.11 0.01 0.15 0.00 0.01 0.07 89.74 Promoter Foreign Portfolio Investors Financial Institutions/ Banks Insurance Companies Foreign Institutional Investors Resident Individual Shareholders Corporate Body Clearing Member NRI Corporate Body -OCB Trusts Others Page 40
VALUATIONS Particulars (Rs. Crs) Q2 17-18 Q1 18-19 Q2 18-19 Earning per Share (`) (Annualised for Quarters) - ve - ve - ve Book Value per Share (`) 26.22 8.43 7.16 Adjusted Book Value per Share (`) [(Net Worth - Net NPA)/No of Shares] - ve - ve - ve Price/Book Value (`) 0.85 1.67 1.83 Price/Adjusted Book Value (`) - ve - ve - ve PE Ratio * Price as on 30.09.2018 Rs. 13.10 (NSE) - ve - ve - ve Page 41
AWARDS & ACCOLADES NABARD- SHG Bank Linkage Programme - 2 nd Position Best performance in the State of Tamil Nadu for the FY 2017-18 Adjudged as 2 nd Best Performing Bank in terms of Aadhaar generation and update (using Online client version) during the Aadhaar Excellence Awards 2018. Vani Bank s Quarterly Hindi Magazine was awarded 2 nd Prize in C Region under Rajbhasha Keerti Puraskar by Govt of India for 2017-18 Page 42
DIGITAL INITIATIVES UPI Merchant QR RuPay Enabled PG IOB Pay BBPS Payment Initiatives Mobility Initiatives IOB Nanban IOB mpassbook Mobile Banking Registration through ATM IOB Sahayak ATM Value Additions Customer Experience Green PIN IOB Rewardz Prepaid Card Customer Feedback Missed Call Balance Enquiry Page 43
CUSTOMER EXPERIENCE INITIATIVES Customer can call to the specified number for to provide a feedback about our service If you are unhappy with our service please call 8828846220 If you are happy with our service please call 8828846225 Customer can give missed call to 9210622122 to know your account balance All account balance linked to the mobile number will be sent as SMS Automated voice call wishes for HNI customers On their Birthdays Page 44
DISCLAIMER Except for the historical information contained herein, statements in this release which contain words or phrases such as will, aim, will likely result, would, believe, may, expect, will continue, anticipate, estimate, intend, plan, contemplate, seek to, future, objective, goal, strategy, philosophy, project, should, will pursue and similar expressions or variations of such expressions may constitute "forward-looking statements". These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, future levels of non-performing loans, our growth and expansion, the adequacy of our allowance for credit losses, our provisioning policies, technological changes, investment income, cash flow projections, our exposure to market risks as well as other risks. Indian Overseas Bank undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof. Page 45
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