Q2 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 -1778 Corporate and top 50 brands across mandates till date industrial & ATMs -3203 Retail customer base country/sectors aggregating ` 2.6 infrastructural base Presence in 1310 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 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
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% 2000 1500 1000 500 487 473 1519 1197 118 0.00% 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
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-14 3000 2500 2000 1500 1000 500 0 2657 2125 843 932 225 255 Fee Income Ope. Profit PAT 6 Months ended Sep-15 6 Months ended Sep-14 6
Profit & Loss - Snapshot Particulars Q2 FY16 Q2 FY15 Growth % HY 2016 HY 2015 Growth % Interest Income 7 070 6 850 3 14 331 13 583 6 Interest Expenses 5 458 5 444 0 11 225 10 926 3 Net Interest Income 1 612 1 406 15 3 106 2 657 17 Other Income 844 760 11 1 486 1 260 18 Total Income 2 456 2 167 13 4 592 3 917 17 Operating Expenses 937 970 (3) 1 935 1 792 8 - Employee Cost 361 497 (27) 787 395 99 - Overhead Cost 576 472 22 1 148 1 397 (18) Operating Profit 1 519 1 197 27 2 657 2 125 25 Provisions & Contingencies 1 399 1 078 30 2 402 1 900 26 - NPAs and write offs 1 086 730 49 2 028 411 394 - Restructured Assets 20 136 (85) (334) 242 (238) - Others (Invt., Std Asset, etc) 183 125 46 475 1 202 (61) - Tax 110 88 25 234 46 410 Profit After Tax 120 118 1 255 225 13 7
Balance Sheet - Snapshot As on 30-Sep-15 30-Sep-14 LIABILITIES Capital 1 604 1 604 Reserve & Surplus 22 943 22 232 Deposits 2 39 282 2 38 006 Borrowings 63 006 56 001 Other Liabilities & Provisions 11 623 11 268 Total 3 38 458 3 29 111 ASSETS Cash & Balance with RBI 11 620 10 360 Bal. with banks & money at call 7 217 4 317 Investments 78 405 90 794 Advances 2 04 661 1 95 057 Fixed Assets [inc l. leased assets] 3 115 3 217 Other Assets 33 440 25 366 Total 3 38 458 3 29 111 8
Growing Deposit Base Composition Movement of Deposits Retail Term Deposits 30% Q2 FY2016 300000 250000 200000 Current A/c 10% Bulk Term Deposits 46% 150000 100000 50000 Savings Bank A/c 14% 0 FY 2012 FY 2013 FY 2014 FY 2015 Q2 2016 Bulk Term Deposits 114932 115522 131241 127278 109460 Retail Term Deposits 44836 54545 51181 67441 71935 Current A/c 31722 33289 25018 30416 23793 Savings Bank A/c 19002 23760 28334 34701 34095 CASA at 24.19% in Q2 FY16 compared to 22.03% in Q2 FY15 9
Credit Base Composition Movement of Advances Overseas Corp. 12% Q2 2016 Retail 32% Domestic Corp. 56% 250000 200000 150000 100000 Q2 2015 Domestic Corp. 63% 50000 0 FY 2012 FY 2013 FY 2014 FY 2015 Q2 2016 Term Loans 131957 140803 140704 147372 146738 Overseas Corp. 10% Retail 27% Bills 3278 4619 4884 6701 6190 CC/OD 45923 50885 52099 54304 51732 Diversified credit portfolio Increasing focus in Retail 10
Industry-wise Advances Particulars Outstanding FB NFB Total Infrastructure 39 771 16 768 56 539 Basic Metal and Metal Products 13 862 6 996 20 858 All Engineering 8 611 11 331 19 943 Chemicals and Chemical Products (Dyes, Paints, Etc.) 7 495 3 361 10 856 Mining and Quarrying 9 134 2 042 11 176 Food Processing 6 172 1 647 7 819 Construction 3 303 5 425 8 728 Vehicles, Vehicle Parts and Transport Equipment s 5 309 2 167 7 476 Textiles 5 073 698 5 770 Cement and Cement Products 5 846 540 6 386 Petroleum (non-infra), Coal Products (non-mining) and Nuclear Fuels 1 488 1 333 2 820 Rubber, Plastic and their Products 2 944 446 3 389 Gems and Jewellery 2 144 1 404 3 548 Paper and Paper Products 1 521 460 1 982 Beverages (excluding Tea & Coffee) and Tobacco 511 15 526 Leather and Leather products 496 5 502 Glass & Glassware 118 1 119 Wood and Wood Products 114 3 117 Others 1 19 136 35 289 1 54 426 TOTAL 2 33 048 89 931 3 22 979 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 22.5 FY 2012 FY 2013 FY 2014 FY 2015 Q2 2016 0.0 FY 2012 FY 2013 FY 2014 FY 2015 Q2 2016 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. 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 Q2 FY2016, the same has been taken as per new PSL guidelines. 13
Investments Particulars Q2 FY2016 HTM AFS HFT Total Government securities 56 512 5 628 343 62 482 SASF Securities 4 586 - - 4 586 Shares (Equity) - 2 759 2 759 Shares (Preference) - 371-371 Debentures/ Bonds - 6 865-6 865 Subsidiaries / Joint Ventures 702 - - 702 Security Receipts - 490-490 Others (CPs/CDs/MF/VCF,etc) 51 98 149 Total Investments 61 851 16 212 343 78 405 14
Major Strategic stakes Pivotal role in developing Institutions that shaped country s financial architecture 15
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
Other Income Particulars Quarter Ended Half Year Ended Sep-15 Sep-14 Growth % Sep-15 Sep-14 Growth % Commission, Excg & Brkg 482 466 4 924 834 11 Profit on sale of Investments 154 115 34 229 153 50 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 90 82 9 158 143 11 Dividend from subsidiaries 8 13 (40) 11 15 (25) Recovery from Written Off cases 45 19 141 67 21 213 Other Misc. Income 48 87 (44) 77 114 (32) Total 844 760 11 1 486 1 260 18 Fee Based Income 487 473 3.0 932 843 10.5 Robust & Efficient Operations Management 17
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 Q2 2016 HY 2016 32% FY 2012 FY 2013 FY 2014 FY 2015 Q2 2016 HY 2016 Overhead Efficiency and Cost to Income ratio one of the best in Banking Industry 18
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 Q2 2016 HY 2016 0.00% FY 2012 FY 2013 FY 2014 FY 2015 Q2 2016 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 Q2 2016 148 146 144 142 140 138 136 134 132 130 Book value/share 146 143 141 137 137 FY 2012 FY 2013 FY 2014 FY 2015 Q2 2016 *CRAR Figures for FY 2012 & FY 2013 are as per Basel II 19
Growth in Average CASA Movement in Key Ratios Growth in Average Deposits 70000 60000 50000 40000 30000 20000 10000 0 FY 2012 FY 2013 FY 2014 FY 2015 Q2 2016 CASA Avg. CASA 300000 250000 200000 150000 100000 50000 0 FY 2012 FY 2013 FY 2014 FY 2015 Q2 2016 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.) 11291 10508 Total Capital (Rs.) 32313 33871 RWA (Rs.) 275843 290406 CET 1 7.61% 7.16% AT 1 0.01% 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 FY15 11.71% 11.66% 4.09% 3.62% 0.01% 0.88% 7.61% 7.16% Q2 2015 Q2 2016 CET 1 AT 1 Tier 2 Capital Basel III Compliant Marginal decline in CRAR by 5 Basis Pts due to increase in advances 21
NPA Movement Particulars For the Quarter For Half Year Sep 15 ended Sep 15 Opening Balance 14112 12685 Add: -Fresh Slippages* 1373 2987 Less: -Recovery 118 215 -Upgradation 189 278 -Write-off 420 421 Closing Balance 14758 14758 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
NPA Classification 355 11643 2760 Sub Standard Assets Doubtful Assets Loss Assets Particulars Gross NPA Sub Standard Assets 2760 Doubtful Assets 11643 Loss Assets 355 Total 14758 Category GNPA Oustanding Advances Gross NPA % of O/S GNPA % to Total GNPA Agri and Allied Activities 11903 1322 11.11 8.96 Industry (Micro, Small, 110639 9730 8.79 Medium & Large) 65.93 Services 26451 2060 7.79 13.96 Personal Loans 33530 425 1.27 2.88 Others 30883 1221 3.95 8.28 Total 213406 14758 6.92 23
Summary of Restructured Advances as on September 30, 2015 Particulars PA NPA Total Gross 19356 4516 23873 Less: FITL Provision 1144 453 1597 Net of FITL Provision 18213 4063 22276 Less: Cases considered for Provisioning @ 0.40% 2187 0 2187 Total 16025 4063 20089 24
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 1 299 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 1 342 PLASTIC PRODUCTS 35 ELECTRICITY GENERATION 2 705 RETAIL STORE 108 ELECTRONICS 177 RUBBER 1 ENTERTAINMENT 32 SHIP BUILDING 1 167 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 6 009 IRON AND STEEL 178 Grand Total 20 089
Provisions & Contingencies Particulars Quarter Ended Half Year ended Sep-15 Sep-14 Sep-15 Sep-14 Depreciation on Investment 2 26 58 90 Provision for NPAs 666 719 1 606 1 124 Provision towards standard assets 179 74 393 107 Provision for Restructured Assets (including FITL) 20 136-334 377 Income Tax 110 88 234 134 Bad Debts Writen off 420 11 421 16 Other Provisions 2 25 23 52 Total 1 399 1 078 2 402 1 900 26
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 2015 Q2 2016 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
Shareholders Shareholders Sep 15 (%) GOI 76.50 LIC 8.59 FIs / Banks 1.15 FIIs 2.69 Corp. 1.15 Others 9.92 Total 100.00 GOI 76.5% Others 10% FIIs 3% LIC 9% Corp. 1% FIs / Banks 1% 28
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 2014-15 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 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. 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
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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