Q4 FY 13 Investor Information
Key Messages : FY 13 Retail Advance grew by 25.47% (12.58%) SME Advance grew by 22.44% (9.49%) Retail & SME Customer base increased by 79.8% in 12 months (32.90%) Other Income increased by 24.81% (3.00%) Average CASA increased by 23.49% (21.52%) Footprint expanded by 153 branches (207 br.) Net NPA at 0.98% (0.53%) Net Interest Margin at 3.37% (3.79%) WoS FedFina turned profitable (Rs 14 Cr) 2
Key Ratios FY 10 FY 11 FY 12 FY 13 Profitability Measure ROA 1.15 1.34 1.41 1.35 Shareholder Value Measure ROE 10.3 11.98 14.37 14.03 Efficiency Measure Cost/Income 34.86 36.94 39.40 44.69 Risk Appetite Measure Net NPA% 0.48 0.60 0.53 0.98 3
Strategic Focus Growth with Quality Retail Agriculture SME Customer Deposits NRI Savings Bank Current Accounts NRI SME Agriculture Gold Risk based NIM Fee Income Wholesale Banking SME Assets Liability Strategic Segments Revenue Growth Centralization Business Analytics Efficiency Independence in Sourcing & underwriting Dedicated Collection Team Basel II & RAROC Risk Management Look & Feel Extensive branding outside Kerala Identified 5 Potential States for SME & Agriculture Branding & Network Expansion Skill Build Employee Engagement Recruitment Reward Management HR 4
Shareholders Value 1.15 1.34 1.41 1.35 10.30 11.98 14.37 14.03 FY 10 FY 11 FY 12 FY 13 RETURN ON ASSETS (%) FY 10 FY 11 FY 12 FY 13 RETURN ON EQUITY (%) 34.32 45.41 49.00 274.24 298.67 333.61 364.74 27.16 FY 10 FY 11 FY 12 FY 13 EARNINGS PER SHARE FY 10 FY 11 FY 12 FY 13 BOOK VALUE PER SHARE 5
Shareholders Value 16.74 1.64 1.37 1.33 13.56 14.13 Q4 FY 12 Q3 FY 13 Q4 FY 13 RETURN ON ASSETS (%) Q4 FY 12 Q3 FY 13 Q4 FY 13 RETURN ON EQUITY (%) 55.56 369.63 364.74 51.9 49.29 333.61 Q4 FY 12 Q3 FY 13 Q4 FY 13 EARNINGS PER SHARE Q4 FY 12 Q3 FY 13 Q4 FY 13 BOOK VALUE PER SHARE 6
Profitability Net Profit Q1 Q2 Q3 Q4 Rs in Cr Operating Profit 777 838 1427 1506 1460 1265 587 616 1077 1134 1090 539 913 465 415 405 720 715 696 348 337 582 272 237 136 132 146 190 278 335 354 347 FY 10 FY 11 FY 12 FY 13 FY 10 FY 11 FY 12 FY 13 7
Growth in Customer Business Gross Advance FY 12 FY 13 Y-o-Y Retail 10623 13328 25.47% Growth % FY 12 FY 13 25.47% 22.44% 28% Rs in Cr SME & Agri 10472 12821 22.44% Corporate 17717 19045 7.50% Total 38811 45195 16.45% 13% 9% 7.50% FY 12 FY 13 Y-o-Y Retail Customer Deposit 41768 49171 17.72 Retail SME & Agri LCD Savings 10930 12743 16.59 Current 2472 2776 12.29 CASA 13402 15519 15.80 Avg CASA 11630 14362 23.49 A/c Opened - Fresh Customers FY 12 FY 13 Y-o-Y AGRI 43091 63042 46% LCD 70 59-16% RBD 136549 259967 90% SME 1776 3262 84% Fresh Customer Acquisition Mar-12 Mar-13 Agri Loans 23270 42287 Corporate Loans 48 45 Retail Loans 37819 66031 SME & Agri Loans 24626 61887 Current Accounts 18215 30695 Savings Accounts 517785 687661 8
1831 2406 2546 2909 7611 9148 10930 12743 18465 20592 28292 33519 36058 43015 48937 57615 Robust Growth in Customer Deposit FY 10 FY 11 FY 12 FY 13 Rs in Cr Savings Deposit Demand Deposit Other Retail Deposit Total Deposit 9
Improving Deposit Mix Deposit Mix CASA Rs in Cr Resident Retail TD High Value CASA NRI TD Savings Current 12743 10930 6514 9799 9148 4585 15519 7611 4157 11411 13402 9321 7169 8444 10869 8150 14429 16150 21852 23854 1710 2263 2472 2776 FY 10 FY 11 FY 12 FY 13 FY 10 FY 11 FY 12 FY 13 10
Quality Growth in Credit Rs in Cr Retail Adv SME & Agri Adv Corporate Adv Retail Adv SME & Agri Corporate Adv Q4 FY 13 13895 17717 19045 42% 40% 39% 44% 46% Q4 FY 12 30% 30% 30% 28% 27% 9563 10472 9564 7498 8508 9436 10623 12821 13328 27% 28% 31% 30% 28% FY 10 FY 11 FY 12 FY 13 11
Risk Adjusted Yield: Business wise SME Retail FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 gr_yld net_yld_yr FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 Agri LCD FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 12
Improving Asset Quality: Focus Segments Fresh Slippage / Total Advance 1.60 1.56 1.49 1.35 1.17 1.00 0.89 0.91 0.93 0.70 0.68 0.52 0.52 SME 0.60 RETAIL 0.48 0.41 0.37 0.27 Q4 FY 11 Q1 FY 12 Q2 FY 12 Q3 FY 12 Q4 FY 12 Q1 FY 13 Q2 FY 13 Q3 FY 13 Q4 FY 13 Q4 FY 11 Q1 FY 12 Q2 FY 12 Q3 FY 12 Q4 FY 12 Q1 FY 13 Q2 FY 13 Q3 FY 13 Q4 FY 13 13
1800 1600 1400 1200 1000 800 600 400 200 0 3 2.5 2 1.5 1 0.5 0 Sustained Reduction in Slippages Gross NPA Net NPA % Rs in Cr 1564 1554 Fresh Accretion 1301 1409 1435 Q4 FY 12 Q1FY 13 Q2 FY 13 Q3 FY 13 Q4 FY 13 Retail 43 56 42 64 36 SME & Agri 95 91 105 72 119 Corporate 132 133 0 215 202 0.92 0.98 RESTRUCTURED ADVANCE 0.53 0.62 0.68 Q4 FY 13 Q3 FY 13 No. Amount No. Amount Standard 45 177.0 39 169.4 Sub-standard 5 42.6 3 0.1 Q4 FY 12 Q1 FY 13 Q2 FY 13 Q3 FY 13 Q4 FY 13 TOTAL 50 219.6 42 169.5 Provision Coverage Ratio (Including Technically Written Off) at 80.96 14
Credit Portfolio Retail Loan Book Rs in Cr Corporate Portfolio Housing & Mortgage Gold Others SERVICE, 1034 REAL ESTATE, 486 NBFC / FINANCE, 2530 2954 INFRA-OTH, 257 MINING, 32 Others, 192 2557 2555 2724 MACHINERY, 335 MANUFACTURIN G, 3377 TEXTILE, 498 2972 3335 3824 4263 TELECOM, 1 IRON & STEEL, 1288 POWER, 1887 5526 5593 5780 6110 ROAD & PORT, 1108 HOTEL, 151 TRADERS, 2957 AGRICULTURE, 38 CONSTRUCTION, 436 TRANSPORT, 680 Q1 FY 13 Q2 FY 13 Q3 FY 13 Q4 FY 13 15
Expanding Footprint STATE Opened up to FY 12 FY13 Opened up to Q4 FY 13 Andhra Pradesh 29 29 Assam 10 2 12 Bihar 3 2 5 Chandigarh 3 3 Chattisgarh 3 3 Dadra & Nagar Haveli 0 1 1 Daman & Diu 0 1 1 Goa 6 6 Gujarat 28 6 34 Haryana 11 1 12 Jammu & Kashmir 1 1 Jharkhand 8 8 Karnataka 68 15 83 Kerala 525 56 581 Madhya Pradesh 3 3 Maharashtra 81 7 88 Meghalaya 2 2 Mizoram 1 1 Nagaland 1 1 2 New Delhi 22 22 Orissa 7 4 11 Puducherry 2 2 Punjab 15 10 25 Rajasthan 7 7 Tamil Nadu 82 42 124 Uttar Pradesh 12 2 14 Uttarakhand 1 1 West Bengal 19 2 21 Tripura 0 1 1 Total 950 153 1103 153 207 672 71 No of Branches 167 202 71 732 No of ATMs FY 10 FY 11 FY 12 FY 13 16
Performance Highlights FY 13 V/S FY 12 Net Profit at Rs 838.17Cr (up by 7.9%) Other Income gone up to Rs 664.44 Cr(up by 24.81%) Total income increased to Rs 6832.01Cr(up by 12.17%) Operating profit at Rs 1459.56 Cr( -3.11%) NIM at 3.37% (3.79%) EPS at Rs 49.00(45.41) Net NPA at 0.98% (0.53%) BV per Share at Rs 364.74(Rs 333.61) ROE at 14.03% (14.37%) ROA at 1.35%(1.41%) Cost to Income at 44.69% (39.4%) Capital Adequacy Ratio at 14.73% (16.64%) 17
Performance Highlights Q4 FY 13 V/S Q4 FY 12 Net Profit at Rs 221.94Cr (-6.59%) Other Income gone up to Rs 196.85Cr(up by 22.61%) Total income increased to Rs 1780.31Cr(up by 8.58%) Operating profit at Rs 369.47Cr( -0.79%) NIM at 3.07% (3.56%) EPS at Rs 51.90(55.56) Net NPA at 0.98% (0.53%) BV per Share at Rs 364.74(Rs 333.61) ROE at 14.13 % (16.74%) ROA at 1.33% (1.64%) Cost to Income at 45.39% (42.86%) Capital Adequacy Ratio at 14.73% (16.64%) 18
Balance Sheet FY 12 FY 13 LIABILITIES Capital 171.05 171.06 Reserves & Surplus 5535.28 6193.60 Deposits 48937.12 57614.86 Borrowings 4241.03 5186.99 Other Liabilities & Provisions 1742.30 1883.06 TOTAL 60626.78 71049.57 ASSETS Cash & Balance with RBI 2424.15 2742.50 Balances with Banks, Money at Call 1108.40 977.49 Investments 17402.49 21154.59 Advances 37755.99 44096.71 Fixed Assets 326.14 397.47 Other Assets 1609.61 1680.81 TOTAL 60626.78 71049.57 Rs in Cr 19
Key Financials Rs in Cr Q3 FY13 Q4 FY13 Q-o-Q FY 12 FY 13 Y-o-Y Interest Income 1521.77 1583.46 4.05% 5558.39 6167.57 10.96% Interest Expenses 1024.42 1103.7 7.74% 3604.99 4192.91 16.31% Net Interest Income 497.35 479.76-3.54% 1953.40 1974.66 1.09% Other Income 203.85 196.85-3.43% 532.34 664.44 24.81% Total Income 1725.62 1780.31 3.17% 6090.73 6832.01 12.17% Total Expenditure 1331.68 1410.84 5.94% 4584.26 5372.45 17.19% Operating Profit 393.94 369.47-6.21% 1506.47 1459.56-3.11% Net Profit 210.78 221.94 5.29% 776.79 838.17 7.90% Net Interest Margin (%) 3.47 3.07-11.53% 3.79 3.37-11.17% Cost to Income Ratio (%) 43.82 45.39 3.58% 39.40 44.69 13.45% 20
Treasury Portfolio Rs in Cr FY 12 FY 13 Y-o-Y % HFT 251.02 1636.73 552.03% AFS 5535.40 4555.27-17.71% HFT+AFS 5786.42 6192.00 7.01% HTM 14292.44 16447.14 15.08% Total Investments 20078.86 22639.14 12.75% SLR 14191.29 16051.75 13.11% Non-SLR 5887.57 6587.39 11.89% 21
Key Indicators (%) FY 12 FY 13 Yield on Advance 12.58 12.28 Cost of Deposit 7.41 7.58 Yield on Investments (Excl Trading Gain ) 7.32 7.24 Cost Income Ratio 39.40 44.69 Net Interest Margin 3.79 3.37 Risk Adjusted NIM 3.36 3.05 22
Other Income Other Income Rs in Cr 196.83 FY 12 FY 13 Y-o-Y % 160.55 161.35* Exchange, Commission & Brokerage Income 129.88 133.97 3.15% 124.33 139.41 Other Fee Income 130.45 180.58 38.43% Net Profit on Forex Transactions 84.21 79.4-5.71% Profit on sale of securities 82.07 205.76 150.71% Recovery from assets written off 85.74 48.12-43.88% Q4 FY 12 Q1 FY 13 Q2 FY 13 Q3 FY 13 Q4 FY 13 Fee Income 116.54 101.97 93.92 87.42 88.01 Other Receipts 19.99 16.61-16.91% Total Other Income 532.34 664.44 24.81% Q4 FY 12 Q1 FY 13 Q2 FY 13 Q3 FY 13 Q4 FY 13 23
Provisions & Expenses PROVISIONS OPERATING EXPENSES Rs in Cr FY 12 FY 13 FY 12 FY 13 Y-o-Y % Investment Depreciation 34.86-36.82 Staff expense 543.85 626.46 15.19% Loan Losses 221.77 189.28 Depreciation 56.66 78.7 38.90% Other Purpose 80.34 113.34 Tax 392.71 355.59 Others 378.76 474.35 25.24% TOTAL 729.68 621.39 TOTAL 979.27 1179.51 20.45% 24
70000 60000 50000 40000 30000 20000 10000 0 48937 38812 50558 39173 49518 37448 51607 40660 57615 45194 Business Distribution Total Advances Q4 FY 13 Fresh Customer Accounts FY 12 FY 13 6940 In 00s 38% 37% 62% 38% 63% 36% 62% 36% Q4 FY 12 64% 64% 2600 5244 449 957 1365 185 311 0.7 0.59 Outside Kerala Kerala Q4 FY 13 SME & Agri Retail Advances Current Account Corporate Savings Account Rs in Cr 53% 56% 55% 53% 51% Q4 FY 12 47% 44% 45% 47% 49% DEPOSITS ADVANCES Total Deposits Q4 FY 12 Q1 FY 13 Q2 FY 13 Q3 FY 13 Q4 FY 13 25
Awards, Accolades & Recognitions Best Bank for CRM & Business Intelligence initiatives Best Bank award for mobile banking and electronic payments for small category Banks Govt. of Kerala Recognition for providing banking channel in all villages allotted to the Bank for implementing Financial Inclusion program Excellence in In-house Magazine Bank`s Aadhaar (UID) Based Authentication for Payments Visa Money Transfer using Visa Debit Cards Innovative Cost Management Measures Global CSR Award for Best Corporate Social Responsibility practice overall Golden Peacock Award for Best Corporate Social Responsibility (CSR) Initiatives 26
External Ratings Fixed Deposit Certificate of Deposit A1+ Bonds AA- (Ind) Bonds 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 27
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, 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 28
Investments/ Share Holding Major Investments Share Holding Pattern Entity % Equity Fedbank Financial Services Limited 100.00% 23% IDBI Federal Life Insurance Company of India Limited 26.00% 46% 10% Credit Analysis and Research Limited 4.15% United Stock Exchange of India Limited 5.83% 16% 5% Experian Credit and Information Company of India Limited 5.00% FIIs FIs/Banks Mutual Funds Corporates Others 29
Thank You 30