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 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
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 -1747 Corporate and top 50 brands across mandates till date industrial & ATMs -3114 Retail customer base country/sectors aggregating ` 2.6 infrastructural base Presence in 1285 of over 3000+ 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
CASA Retail TD Networth Bulk TD Advances Deposits Business PSL Performance Highlights Q1 FY16 (QoQ) 2,04,339 2,41,328 4,45,668 75,353 11 % 15% 13% 20 % 11 1,84,581 2,10,343 3,94,924 62,715 53,155 70,574 22,789 1,17,599 21% 22% 4 % 8 % 44,108 57,719 22,003 1,08,516 4
Performance Highlights Q1 FY16 (Profitability) 2.50% 2.00% 1.83% 1.70% 2.38% 1.93% 1200 1000 1138 928 1.50% 1.00% 0.50% 0.00% 0.14% 0.16% 800 600 400 200 0 445 370 106 135 NIM ROE ROA Fee Income Ope. Profit PAT Quarter Ended Jun-15 Quarter Ended Jun-14 Quarter Ended Jun-15 Quarter Ended Jun-14 Profitability adversely impacted due to RIDF yielding significantly lesser returns 5
Profit & Loss - Snapshot Particulars Q1 FY16 Q1 FY15 Growth % FY 2015 FY 2014 Growth % Interest Income 7 261 6 733 7.8 28 154 26 598 5.9 Interest Expenses 5 767 5 482 5.2 22 406 20 576 8.9 Net Interest Income 1 494 1 251 19.4 5 748 6 021-4.5 Other Income 642 500 28.4 4 008 2 979 34.5 Total Income 2 136 1 751 22.0 9 756 9 000 8.4 Operating Expenses 998 822 21.4 4 027 3 319 21.3 - Employee Cost 426 395 7.8 1 966 1 525 28.9 - Overhead Cost 572 427 34.0 2 061 1 794 14.9 Operating Profit 1 138 928 22.6 5 728 5 681 0.8 Provisions & Contingencies 1 003 822 22.0 4 855 4 560 6.5 - NPAs and write offs 941 411 129.0 3 232 3 074 5.1 - Restructured Assets -354 242-246.3 364 486-25.1 - Others (Invt., Std Asset, etc) 292 123 137.4 845 380 122.4 - Tax 124 46 170.0 414 620-33.2 Profit After Tax 135 106 27.3 873 1 121-22.1 6
Balance Sheet - Snapshot As on 30-Jun-15 30-Jun-14 LIABILITIES Capital 1 604 1 604 Reserve & Surplus 22 836 22 129 Deposits 2 41 328 2 10 343 Borrowings 64 949 65 864 Other Liabilities & Provisions 11 299 9 377 Total 3 42 016 3 09 317 ASSETS Cash & Balance with RBI 11 701 10 688 Bal. with banks & money at call 983 3 657 Investments 88 406 81 451 Advances 2 04 339 1 84 581 Fixed Assets [incl. leased assets] 3 108 2 986 Other Assets 33 479 25 954 Total 3 42 016 3 09 317 7
Growing Deposit Base Composition Movement of Deposits Current A/c 9% Retail Term Deposits 29% Savings Bank A/c 13% Q1 2016 Bulk Term Deposits 49% 300000 250000 200000 150000 100000 50000 0 FY 2012 FY 2013 FY 2014 FY 2015 Q1 2016 Bulk Term Deposits 114932 115522 131241 127278 117599 Retail Term Deposits 44836 54545 51181 67441 70574 Current A/c 31722 33289 25018 30416 20645 Savings Bank A/c 19002 23760 28334 34701 32509 CASA at 22.03% in Q1 FY16 compared to 20.97% in Q1 FY15 8
Credit Base Composition Movement of Advances Q1 2016 Domestic Corp. 56% Overseas Corp. 11% Retail 33% 250000 200000 150000 100000 Q1 2015 Domestic Corp. 62% 50000 0 FY 2012 FY 2013 FY 2014 FY 2015 Q1 2016 Overseas Corp. 10% Retail 28% Term Loans 131957 140803 140704 147372 147431 Bills 3278 4619 4884 6701 6244 CC/OD 45923 50885 52099 54304 50664 Diversified credit portfolio Increasing focus in Retail 9
Industry-wise Advances Diversified credit portfolio Particulars Outstanding Committed FB NFB Total FB NFB Total POWER 25 464 6 687 32 151 32 895 12 260 45 155 HOUSING LOANS 27 014-27 014 28 431-28 431 OIL AND GAS/PETROLEUM PRODUCTS 11 559 6 719 18 278 15 497 12 330 27 827 ROADS AND BRIDGES / PORTS 13 892 6 945 20 837 17 007 9 584 26 591 IRON AND STEEL 10 208 7 271 17 479 12 577 11 828 24 404 INFRASTRUCTURE OTHERS 8 781 8 434 17 216 11 595 11 764 23 359 TELECOM 6 588 7 182 13 770 8 158 9 499 17 657 NBFC 8 025 308 8 333 13 681 1 022 14 703 BANKING 680 1 759 2 439 3 976 9 041 13 017 TEXTILES 6 995 1 306 8 301 10 105 1 886 11 991 CONSTRUCTION 2 615 6 474 9 089 3 314 7 919 11 234 GENERAL MACHINERY AND EQUIPMENTS 1 903 5 574 7 478 2 695 6 824 9 519 TRADING 3 966 2 825 6 791 5 700 3 682 9 382 CHEMICAL AND CHEMICAL PRODUCTS 2 336 1 852 4 188 4 489 3 487 7 977 FINANCIAL INSTITUTIONS 2 024 28 2 052 7 352 216 7 568 CEMENT 5 542 664 6 206 5 990 1 121 7 110 FERTILIZERS 1 421 1 762 3 183 2 709 4 363 7 072 METALS AND METAL PRODUCTS(OTHER THAN MFG.OF BASIC IRON AND STEEL) 2 478 1 361 3 839 3 561 2 911 6 473 GEMS AND JEWELLERY 2 552 2 058 4 609 3 367 2 944 6 310 ELECTRICAL MACHINERY AND EQUIPMENTS 1 491 3 002 4 494 1 937 4 354 6 292 10
Productivity Business per employee CASA per Employee 29.0 28.0 27.0 26.0 25.0 24.0 23.0 22.0 21.0 28.0 25.7 26.2 24.7 23.9 FY 2012 FY 2013 FY 2014 FY 2015 Q1 2016 5.0 4.0 3.0 2.0 1.0 0.0 3.9 3.7 3.3 3.2 3.2 FY 2012 FY 2013 FY 2014 FY 2015 Q1 2016 Busi/Employee CASA/Employee Note: Excluding outsourced employees Reflection of Bank s quality and efficient manpower 11
Robust growth in PSL book 90000 80000 70000 23262 60000 50000 16099 15903 24620 40000 30000 20000 38850 52639 61517 46812 50733 10000 0 FY 2013 FY 2014 FY 2015 Q1 2015 Q1 2016 PSL (Excl. RIDF) RIDF Relentless focus for increasing PSL Book towards complying regulatory limits @The 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 Q1 FY2016, the same has been taken as per new PSL guidelines. 12
Investments Particulars Q1 FY2016 HTM AFS HFT Total Government securities 50 361 18 847 2 152 71 360 SASF Securities 4 586 - - 4 586 Shares (Equity) - 2 670 18 2 689 Shares (Preference) - 382-382 Debentures/ Bonds - 7 871-7 871 Subsidiaries / Joint Ventures 702 - - 702 Security Receipts - 493-493 Others (CPs/CDs/MF/VCF,etc) 45 127 150 322 Total Investments 55 695 30 391 2 320 88 406 13
Major Strategic stakes Pivotal role in developing Institutions that shaped country s financial architecture 14
Maturity Profile as on Jun-15 Maturity Profile Advances Borrowings Deposits Upto 6 months 26010 13598 88925 > 6 months to 1 year 13087 7157 45774 > 1 year to 3 years 80749 7237 70541 > 3 years to 5 years 28571 13647 13590 > 5 years 55922 23309 22498 Total 204339 64949 241328 15
Other Income Particulars Quarter Ended Jun-15 Jun-14 Growth % FY 2015 Commission, Excg & Brkg 442 369 19.8 1 935 Profit on sale of Investments 75 39 92.3 1 636 Profit/(Loss) on revaluation of investment 3 (0) 300.0 (50) Profit on sale of Fixed Assets 0 0-0 Profit on Forex/Derivatives 68 60 13.3 276 Dividend from subsidiaries 4 2 100.0 19 Recovery from Written Off cases 22 3 633.3 54 Other Misc. Income 29 27 5.6 137 Total 642 500 28.5 4 008 Fee Based Income 445 370 20.1 1952 Robust & Efficient Operations Management 16
Overhead Efficiency Overhead Efficiency Cost to Income 120% 100% 80% 60% 40% 20% 81% 103% 90% 100% 64% 50% 40% 30% 20% 10% 39% 36% 37% 41% 47% 0% 0% FY 2012 FY 2013 FY 2014 FY 2015 Q1 2016 FY 2012 FY 2013 FY 2014 FY 2015 Q1 2016 Overhead Efficiency and Cost to Income ratio one of the best amongst peer set 17
Movement in Key Ratios ROEA Vs COF NIM & ROA 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 10.38% 10.71% 10.28% 10.27% 9.48% 8.36% 8.31% 7.87% 7.80% 7.44% FY 2012 FY 2013 FY 2014 FY 2015 Q1 2016 ROEA COF 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 2.02% 2.12% 2.17% 1.90% 1.83% 0.81% 0.69% 0.38% 0.27% 0.16% FY 2012 FY 2013 FY 2014 FY 2015 Q1 2016 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% 11.78% 11.76% 11.74% FY 2012 FY 2013 FY 2014 FY 2015 Q1 2016 148 146 144 142 140 138 136 134 132 130 Book value/share 146 141 142 137 137 FY 2012 FY 2013 FY 2014 FY 2015 Q1 2016 *CRAR Figures for FY 2012 & FY 2013 are as per Basel II 18
Growth in Average CASA Movement in Key Ratios Growth in Average Deposits 70000 300000 60000 50000 40000 30000 20000 CASA Avg. CASA 250000 200000 150000 100000 Total Deposits Avg. Total Deposits 10000 50000 0 FY 2012 FY 2013 FY 2014 FY 2015 Q1 2016 0 FY 2012 FY 2013 FY 2014 FY 2015 Q1 2016 Healthy growth recorded in Average CASA and Average Deposits 19
Capital Adequacy ( ) Particulars Q1 2015 Q1 2016 CET 1 (Rs.) 20960 20803 AT 1 (Rs.) 32 2559 Tier 2 Capital (Rs.) 10480 10390 Total Capital (Rs.) 31471 33751 RWA (Rs.) 267048 287376 11.78% 11.74% 3.92% 3.61% 0.01% 0.89% 7.85% 7.24% Tier 1 at 8.13 % as at Q1 FY 16 increased by 27 Basis Points compared to Q1 FY 2015 Q1 2015 Q1 2016 CET 1 AT 1 Tier 2 Capital Basel III Compliant 20
NPA Movement Particulars For the Quarter For FY ended Jun 15 Mar 15 Opening Balance 12685 9960 Add: -Fresh Slippages* 1614 6101 Less: -Recovery 97 1159 -Upgradation 89 608 -Write-off 1 1609 Closing Balance 14112 12685 Gross NPA % 6.64% 5.88% Net NPA % 3.18% 2.88% Prov. Coverage Ratio as per RBI Guidelines 66.40% 66.63% * Including Ageing Aggressive provisioning - PCR have been highest amongst peers 21
NPA Movement For Quarter Jun 15 For FY ended Mar 15 Particulars NPA Provision# Net NPA NPA Provision# Net NPA Opening Balance 6692 5993 5058 4902 Additions during period 1025 589 4308 1793 Reductions during period 101 85 2673 703 Closing Balance 7616 6496 6692 5993 #Including NPV Loss of NPA Advances 22
NPA Classification 313 3014 Sub Standard Assets Particulars Gross NPA 10784 Doubtful Assets Loss Assets Sub Standard Assets 3014 Doubtful Assets 10784 Loss Assets 313 Total 14112 1.21 4.07 7.48 8.39 9.42 Agri and Allied Activities Industry Services Personal Loans Others Particulars Gross NPA (%) Agri and Allied Activities 9.42 Industry 8.39 Services 7.48 Personal Loans 1.21 Others 4.07 Total 6.64 23
Summary of Restructured Advances as on June 30, 2015 Particulars PA NPA Total Gross 19506 5066 24572 Less: FITL Provision 1128 441 1569 Net of FITL Provision 18378 4625 23003 Less: Cases considered for Provisioning @ 0.40% 2227 0 2227 Total 16151 4625 20776 24
Industry-wise Restructured Advances as on June 30, 2015 Industry Type Net Outstanding Industry Type Net Outstanding AGRO INDUSTRIES 213 JEWELLERY MFG 125 AIR TRANSPORT 482 METAL INDUSTRY 1 321 AQUACULTURE 82 MINING AND QUARRYING 78 CEMENT 258 MISC. INDUSTRY 81 CERAMIC INDUSTRY 64 MOTOR VEHICLES 408 CHEMICAL AND FERTILIZERS 70 OIL EXPLORATION 62 COAL 161 OTHER SERVICES 111 DAIRY FARM AND POULTRY 34 PAPER 175 EDUCATION 518 PHARMACEUTICALS 663 ELECTRICAL MACHINERY 1 223 PLASTIC PRODUCTS 34 ELECTRICITY GENERATION 2 928 RETAIL STORE 108 ELECTRONICS 218 RUBBER 1 ENTERTAINMENT 33 SHIP BUILDING 1 337 FOOD AND BEVERAGES 43 SUGAR 736 GEM & JWELLERY 301 TELECOMMUNICATIONS 777 GLASS MFG 526 TEXTILES 647 HEALTH CARE 6 TRANSPORT SERVICES 145 HOTEL 300 WASTE MANAGEMENT 27 INFRASTRUCTURE 6 301 IRON AND STEEL 176 Grand Total 20 776
Provisions & Contingencies Particulars Quarter Ended Y-O-Y Jun-15 Jun-14 FY 2015 FY 2014 Depreciation on Investment 57 64 248 180 Provision for NPAs 940 406 1 623 1 681 Provision towards standard assets 214 33 499 173 Provision for Restructured Assets (including FITL) (354) 242 364 486 Income Tax 124 46 414 620 Bad Debts Writen off 1 5 1 609 1 393 Other Provisions 21 27 98 27 Total 1 003 822 4 855 4 560 26
Fast growing Distribution Network 2000 1800 1600 1400 1200 1000 800 600 400 200 0 1 1 1 368 368 319 1 1 451 457 264 274 426 377 388 524 535 372 236 282 95 132 270 373 386 FY 2012 FY 2013 FY 2014 FY 2015 Q1 2016 Rural Semi-Urban Urban Metro Overseas 1747 Branches 3114 ATMs 11 Currency Chest 6 Regional Processing Units 30 Central Clearing Unit 75 Retail Assets Centers 13 e-lounges Robust branch expansion over the years specially in rural and semi-urban locations 27
Shareholders Shareholders June 15 (%) GOI 76.50 Insurance Companies 9.64 FIs / Banks 1.13 FIIs 2.68 Corp. 1.29 Others 8.76 Total 100.00 GOI 76.5% Others 9% FIIs 3% LIC 10% Corp. 1% FIs / Banks 1% 28
Major Awards & Accolades 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 500 - 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. 29
Key Business Initiatives Retail Liabilities New Product/Services 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 30
Key Business Initiatives Retail Assets/ Alternate Channels New Product/Services 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 (13 so far) Android based Mobile Banking Application Introduced Signature Debit Card in July 2014 Consistently introducing/delivering customer savvy products/services 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, particularly in Singapore and Shanghai. Retail Scaling up CASA and Retail Advances, particularly Priority Sector Deposits 32
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