INVESTOR PRESENTATION FY 2010-11 Fourth Quarter & Annual Results as on 31.03.2011
PERFORMANCE HIGHLIGHTS Q4 FY 11 FY 2011 (YOY growth) (YOY growth) Net Interest Income Fee Income Total Income Net Profit Net Interest Margin 9.26 % 23.80 % 2.23 % 6.32 % 14.53 % 8.67 % 46.96 % 26.38 % 4.00 % 4.22 %
BUSINESS GROWTH Total deposits grew by 19.29 % on a y-o-y basis to DEPOSIT GROWTH reach ` 43015 Crores as on 31.3.2011 Retail deposits grew by 15.35 % on a y-o-y basis from ` 27571 Crores to ` 31804 Crores as on 31.3.2011 CASA grew by 21.27 % from ` 9321 Crores to reach ` 11305 Crores as on 31.3.2011 Net advances grew by 18.56 % from ` 26950 Cr to reach CREDIT GROWTH ` 31953 Crores as on 31.3.2011 Retail advances(gross) grew by 10.9 % on a y-o-y basis to reach ` 9436 Crores SME advances (gross) grew by 27.6 % to reach ` 9564 Cr Corporate credit (gross) up by 45.3 % to reach ` 13895 Cr
INCOME & PROFIT GROWTH INCOME GROWTH Interest Income grew by 10.31 % on a y-o-y basis from ` 3673.23 Cr to ` 4052.03 Cr as on 31.3.2011 Other Income down by 2.66 % on a y-o-y basis from ` 530.91 Cr to ` 516.81 Cr as on 31.3.2011, on account of fall in profit on sale of securities. Net Interest Income grew by 23.80 % from ` 1410.83 Cr to ` 1746.68 Cr as on 31.3.2011 Total Income grew by 8.67 % from ` 4204.14 Cr to ` 4568.84 Cr as on 31.3.2011 PROFIT GROWTH Operating Profit grew by 12.84 % on a y-o-y basis from ` 1264.85 Cr to ` 1427.25 Cr Net Profit grew by 26.38 % on a y-o-y basis from ` 464.55 Cr to ` 587.08 Cr
KEY FINANCIALS Interest Income Interest Expenses Net Interest Income Other Income Total Income Total Expenditure Operating Profit Net Profit Net Interest Margin Cost to Income Ratio Q 4 Mar 2011 Q 4 Mar 2010 Y-o-y growth 1100.02 953.14 15.41 % 652.38 543.45 20.04 % 447.64 406.69 9.26 % 141.19 130.59 8.12 % 1241.21 1083.73 14.53 % 890.99 731.94 21.73 % 350.22 351.79-0.45 % 171.72 116.85 46.96 % 4.00 % 4.19 % 40.52 % 34.89 % FY 2011 FY 2010 Y-o-y growth 4052.03 3673.23 10.31 % 2305.45 2262.40 1.90 % 1746.68 1410.83 23.80 % 516.81 530.91-2.66 % 4568.84 4204.14 8.67 % 3141.59 2939.29 6.88 % 1427.25 1264.85 12.84 % 587.08 464.55 26.38 % 4.22 % 3.82 % 36.94 % 34.86 % (` in Cr.)
BALANCE SHEET As at 31 st March 2011 31 st March 2010 LIABILITIES Capital 171.05 171.03 Reserves & Surplus 4937.61 4519.42 Deposits 43014.78 36057.95 Borrowings 1888.36 1546.76 Other Liabilities & Provisions 1444.56 1380.44 TOTAL 51456.36 43675.60 ASSETS Cash & Balance with RBI 2935.05 2318.88 Bal. with banks & money at call 813.25 404.51 Investments 14537.68 13054.64 Advances 31953.23 26950.12 Fixed Assets 289.82 289.77 Other Assets 927.33 657.68 TOTAL 51456.36 43675.60 (` in Cr.)
PROFIT & INCOME GROWTH (` in Cr.) 3 months (Q4 FY 11 vs Q4 FY 10) 12 M ended 31.03.11 vs 12 M ended 31.03.10 1083.73 1241.21 4204.14 4568.84 351.79 350.22 409.69 447.64 1264.85 1427.25 1410.83 1746.68 116.85 171.72 130.59 141.19 464.55 587.08 530.91 516.81 Net Profit Operating Profit Other Income Net Interest Income Total Income Net Profit Operating Profit Other Income Net Interest Income Total Income FY 2009-10 FY 2010-11 FY 2009-10 FY 2010-11
DEPOSIT GROWTH 2008 2009 2010 2011 (` in Cr.) Savings Deposits 5037 6445 7611 9148 Demand Deposits 1464 1443 1831 2266 High Value Deposits 6906 8075 8150 10869 Other Retail Deposits 12506 16235 18466 20732 Total Deposits 25913 32198 36058 43015 Constitution of Total Deposits (31.03.2010) (31.03.2011) 22.6% 25.3% 51.6% 25.8% 48.5% 26.3% CASA Term Deposit Wholesale Deposits
DEPOSIT GROWTH - RETAIL (` in Cr.) 31804 27571 15.3 % 7611 20 % 9148 31.4 % 1831 2406 8279 7351 5871 5449 7.8 % 12.6 % 26 % of Retail Deposits are from NRI segment Savings Bank Current Deposits NRE Deposits NRI (incl. ONR) Retail Deposits March 2010 March 2011
DEPOSIT COMPOSITION Total Deposits CASA Ratio (` Cr.) 45000 (%) 30 30000 15000 24.5 % 24.6 % 25.8 % 26.3 % 0 0 2008 2009 2010 2011 2008 2009 2010 2011 Savings Demand Others Healthy share of savings bank (SB) deposits Steady growth in CASA share CASA constitutes 26 % of total deposits and 36 % of retail deposits Average balance in savings account increased by 21.8 %, y-o-y Spreading of Priority Banking services have increased the average SB balances Freeing of other bank s ATM usage charges, bringing in additional business
LOAN GROWTH (` in Cr.) 2008 2009 2010 2011 Gross Advances 19327 22907 27634 32895 Large Corporate Advances 6763 8474 9563 13895 S M E Advances 6955 7382 7498 9564 Retail Loans 5609 7051 8509 9436 Large Corporate Advance refer to advances of ` 25 Crore and above Specialised Corporate Banking branches at Mumbai and New Delhi Cluster-based approach for added thrust to SME lending SME Credit Hubs and Retail Credit Hubs set up across major centres for faster processing of such loans Steps already on for Centralised Loan Application processing and DMS Retail Loan marketing through own subsidiary, Fedbank Financial Services Ltd.
LOAN BOOK COMPOSITION The SME portfolio of the Bank grew by 27.6 % on a y-o-y basis to reach ` 9564 Cr as on 31.03.2011 Large Corporate Credit grew by 45.3 % y-o-y to reach ` 13895 Cr Retail loans grew by a modest 10.9 % y-o-y to reach ` 9436 Cr Agri. lending grew by 28 % to reach ` 3749 Cr (31.03.2010) (31.03.2011)
RETAIL BOOK COMPOSITION Housing Loans form 58.9 % of Retail Assets Advance against approved securities / deposits form 12.5 % of Retail Assets Retail Gold Loans contribute another 11.4 % Personal Loans account for just 0.5 % of Retail Assets 13% 5.5% 3.3% 0.5% 0.3% Housing Loans Gold Loans Home Overdraft Mortgage Loan 3.4% 4.2% 58.9% AAS / AAD Car Loan Educational Loan 11% Personal Loan Others Total Gold Loan portfolio of the Bank grew by an impressive 95.7 % on a y-o-y basis
TOP INDUSTRIAL EXPOSURES (` in Cr.) No. Sector Bal. o/s (31.03.2011) 1 Power (Infrastructure) 2354.83 2 Iron & Steel 851.96 3 Roads & Ports (Infrastructure) 830.28 4 Petroleum 675.62 5 Chemicals, Dyes, Paints, Fertilizers, etc. 535.78 6 Food Processing 476.75 7 Cotton Textiles 437.51 8 Metal and Metal products 421.26 9 Engineering including electronics 387.98 10 Telecommunications (Infrastructure) 387.22
TREASURY PORTFOLIO (` in Cr.) Mar 09 Mar 10 Mar 11 HFT 905 800 1104 AFS 4771 2885 3107 HFT + AFS 5676 3685 4211 HTM 6571 9382 10343 Total Investments 12247 13067 14554 of which SLR 8164 9294 9977 Non-SLR 4083 3773 4577 IFR 190 190 190
COST, YIELD & NIM (All values in %) 11.46 12.3 11.3 11.09 6.72 7.4 6.98 7.27 6.55 6.84 5.99 6.95 3.49 4.28 3.82 4.22 2008 2009 2010 2011 Cost of Deposits Yield on Advances Return on Investments Net Interest Margin
MARGINS FY 2009-10 (12 months) FY 2010-11 (12 months) Yield on Advance 11.30 % 11.09 % Cost of Deposits 6.55 % 5.99 % Interest Spread 4.75 % 5.10 % Yield on Investments 6.84 % 6.95 % Net Interest Margin 3.82 % 4.22 % Cost to Income Ratio 34.86 % 36.94 % Yield on advances moderated down to 11.09 % on a y-o-y basis Cost of deposits reduced by 56 bps to reach 5.99 % as on 31.03.2011 Net Interest Margin increased to 4.22 % Cost to Income ratio remains at a comfortable level of 36.94 %
NIM & COST OF FUNDS 4.44 (All values in %) 4.19 4.31 4.17 4.00 Q4 FY 10 Q1 FY 11 Q2 FY 11 Q3 FY 11 Q4 FY 11 N I M 6.38 6.07 6.03 6.08 5.91 Q4 FY 10 Q1 FY 11 Q2 FY 11 Q3 FY 11 Q4 FY 11 Average Cost of Funds
NPA MOVEMENT 1043.82 1094.51 1152.88 1148.33 (` in Cr.) 820.97 Gross NPA Net NPA 128.79 200.67 186.29 227.08 190.69 Provision Coverage Ratio 82.06 % as on 31.03.2011 Q4 FY 10 Q1 FY 11 Q2 FY 11 Q3 FY 11 Q4 FY 11 0.81 0.74 0.68 0.60 0.48 Net NPA (%) Q4 FY 10 Q1 FY 11 Q2 FY 11 Q3 FY 11 Q4 FY 11
RESTRUCTURED ADVANCES During the quarter from 01.01.2011 to 31.03.2011 No. Amount (` in Cr) Standard 82 19.71 Sub-standard 0 0.00 TOTAL 82 19.71 During the fiscal (from 01.04.2010 to 31.03.2011) No. Amount (` in Cr) Standard 172 294.60 Sub-standard 11 4.61 TOTAL 183 299.21
PROVISIONS 12 months ended Mar 2010 3 months ended Mar 2011 (` in Cr.) 12 months ended Mar 2011 Investment Losses - 97.74 5.63 11.13 Loan Losses 413.11 82.51 488.85 Other purposes 89.93-8.72 25.46 Tax 395.00 99.08 314.73 TOTAL PROVISIONS 800.30 178.50 840.17
OPERATING EXPENSES ( FY 2011 vs FY 2010) (` in Cr.) March 2010 March 2011 Salary 366.05 480.41 Rent, Taxes & Lighting 71.14 79.60 Printing & Stationery 8.94 10.16 Postage 15.00 18.87 Repairs 19.32 23.04 Depreciation 50.19 54.26 Advertisement 10.46 18.12 Insurance 32.04 35.85 Others 103.74 115.83 Total 676.88 836.14
OTHER INCOME (FY 2011 vs FY 2010) (` in Cr.) March 2010 March 2011 Exchange, Commission & Brokerage Income 105.26 114.44 Other Fee Income 130.02 135.70 Net Profit on Forex Transactions 44.62 57.23 Profit on sale of securities 107.71 45.76 Recovery from assets written off 127.70 146.07 Other Receipts 15.60 17.60 Total 530.91 516.81
THIRD PARTY PRODUCT SALES No. of Life Insurance policies sold Total Life Insurance premium collected (` in Cr.) Steady growth shown in the sales of Mutual Fund and Insurance products Distribution of third party products becomes a steady fee income stream Tie-up with 14 leading Asset Management Companies for Mutual Fund sales Life Insurance products from IDBI Federal Life Insurance Company Ltd. Priority Banking officers and Relationship Managers offering advisory services on third party products
BUSINESS DISTRIBUTION (as on 31.03.2011) DEPOSITS ADVANCES 52% 48% 59% 41% Kerala Outside Kerala Kerala Outside Kerala
KEY RATIOS - ROE & ROA (all values pertain to quarters) RETURN ON EQUITY (%) RETURN ON ASSETS (%) Return on Average Equity up by 328 bps on a y-o-y basis to reach 13.45 % Return on Assets up 40 bps y-o-y to reach 1.48 % as at end March 2011
RETURNS TO SHAREHOLDER (all values pertain to quarters) 40.16 274.24 298.53 298.67 33.47 27.33 March 10 Dec 10 March 11 March 10 Dec 10 March 11 EARNINGS PER SHARE (`)( BOOK VALUE PER SHARE (`) Board of Directors recommends a dividend of 85 % (i.e. ` 8.50 per share) for FY 2010-11 Earnings Per Share increased to ` 40.16 Book Value per share at ` 298.67
PRODUCTIVITY RATIOS 6.01 7.03 8.33 (all values pertain to quarters) 815 796 905 March 10 Dec 10 March 11 PROFIT PER EMPLOYEE (` LAKH) March 10 Dec 10 March 11 BUSINESS PER EMPLOYEE (` LAKH) 0.17 0.19 0.19 93.7 88.4 101.7 March 10 Dec 10 March 11 PROFIT PER BRANCH (` CRORE) March 10 Dec 10 March 11 BUSINESS PER BRANCH (` CRORE) Employee strength increased y-o-y from 7896 to 8270 during FY 2010-11 Branch strength increased y-o-y from 672 to 743
DISTRIBUTION NETWORK State Br. No. ANDHRA PRADESH 26 ASSAM 6 BIHAR 1 CHANDIGARH 1 CHATTISGARH 2 GOA 4 GUJARAT 8 HARYANA 8 JHARKHAND 5 KARNATAKA 50 KERALA 448 MADHYA PRADESH 3 MAHARASHTRA 67 MEGHALAYA 1 NAGALAND 1 NEW DELHI 18 ORISSA 3 PONDICHERRY 2 PUNJAB 6 RAJASTHAN 4 TAMILNADU 51 UTTAR PRADESH 10 UTTARKHAND 1 WEST BENGAL 17 Total 743 743 branches spread across 24 states Presence across various geographies - 111 branches in metros, 165 in urban centres, 346 in semi-urban centres and 121 in rural areas Two currency chests Corporate Banking Branches at Mumbai and New Delhi One Overseas Representative Office at Abudhabi, UAE 13 Regional Offices across the country 6 Extension Counters at various locations 803 ATMs across 108 metro centres, 224 urban centres, 384 semi-urban locations and 87 rural areas Retail and SME hubs established across major centres in India for faster processing of loans and advances
PRODUCT RANGE RETAIL BANKING Deposits Loans Other services Savings Bank variants Current Account variants Fixed Deposits Recurring Deposits Car / 2 wheeler loans Home Loans Home Overdrafts Mortgage Loans Loans against securities Educational Loans Gold Loans Personal Loans Gold Coin sales Debit Cards POS terminals On-line bill payments NRI Services Insurance product sales Mutual Fund sales Depository Services On-line equity trading PIS for NRI s CORPORATE BANKING Working Capital Term Loans Collection of bills Letter of Credit Bank Guarantee Forex and Derivatives Cash Management Services TREASURY Currency Futures OTC Contracts Structured products to HNIs Outward remittances hub Derivative products On-line SME forex trading G-Sec retailing Rate Research Data Cell Retailing of debt instruments Option Trading Buyer s Credit Offshore Banking unit
EXTERNAL RATINGS Instrument Agency Rating Fixed Deposits Certificate of Deposit Bonds CRISIL CRISIL FITCH P1+ P1+ AA- (ind) Bonds CARE AA The Fixed Deposits and Certificates of Deposits enjoy the highest rating in that class Bonds have been a rating, which are considered to offer high safety and carrying very low credit risk
SUBSIDIARIES & JVs IDBI Federal Life Insurance Co. Ltd. Bank s Joint Venture Life Insurance Company, in association with IDBI Bank and Ageas Federal Bank holds 26 % equity in the J.V. Started selling life insurance products from March 2008 FedBank Financial Services Ltd. Fully owned subsidiary of the Bank with NBFC license Marketing Retail Asset Products of the Bank Retail Hubs established at major centres all over India Separate mechanism established for speedy and dedicated processing of retail loans sourced through this channel UAE Representative Office Representative Office at Abu Dhabi, Capital of U.A.E., established in 2008 Gateway of the Bank to the whole of Middle East Increased the reach of the Bank among Non-Resident Indians in the Gulf countries
MAJOR INVESTMENTS Entity % equity Fedbank Financial Services Limited 100.00 % IDBI Federal Life Insurance Company of India Limited 26.00 % Credit Analysis and Research Limited 5.00 % United Stock Exchange of India Limited 6.00 % Experian Credit and Information Company of India Limited 5.00 % The Catholic Syrian Bank Limited 4.99 %
SHAREHOLDING F I I Corporate Bodies 36 % 14 % Financial Institutions, Banks, etc. 9 % 5 % GDR 2 % Foreign Corporate Bodies No. of shares : 17.105 Cr Face Value of share : ` 10 Share Capital : ` 171.05 Cr Shareholder s Funds : ` 5108.66 Cr Book Value per share : ` 298.67 Market Price : ` 401 (as on 06.05.2011) Mutual Funds 17 % 17 % Individuals Shareholding pattern as on 31.03.2011
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