Presentation to Analysts Presentation to Analysts April 2011 April - - PowerPoint PPT Presentation

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Presentation to Analysts Presentation to Analysts April 2011 April - - PowerPoint PPT Presentation

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Presentation to Analysts Presentation to Analysts April 2011 April 2011 Genesis Genesis 1964-19 1964-1976 1994- 1994- 00 2003 - 2003 - 06 2007- 10 200 S et up by an p y IDBI Act IDBI Repeal Act p Complete p passed in

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SLIDE 1

Presentation to Analysts Presentation to Analysts April 2011 April 2011

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SLIDE 2

Genesis Genesis

1964-19 1964-1976 1994- 1994- 00 2003 - 2003 - 06

S et up by an IDBI Act

IDBI Repeal Act 200 2007- 10 Complete

p y Act of Parliament in 1964 as a subsidiary of amended to permit private

  • wnership upto

49% .

p passed in December 2003 for conversion to a banking p Networking (100% Core Banking) Organization

subsidiary of the Central Bank (RBI) Ownership t f d t 49% . Domestic IPO in 1995, reduces

  • Govt. stake to

72%

g company.

  • Govt. ownership

to be not below 51% g structure redesigned on Customer S egmentation

transferred to

  • Govt. in 1976

IDBI had been a policy bank in 72% . Post capital restructuring in 2000, Govt.

Amalgamation

  • f IDBI Bank Ltd.

With IDBI Ltd. W.e.f. April 2, S g basis Name changed to IDBI Bank Ltd Achieved

p y the area of industrial financing and development stake reduced to 58.5%

W.e.f. April 2, 2005

  • Oct. 2006

amalgamated erstwhile UWB Achieved regulatory norms of S LR, CME

2

development

erstwhile UWB.

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SLIDE 3
  • Leading provider of long term finance

Status as Leading DFI Status as Leading DFI

  • Leading provider of long term finance
  • Played an apex role in helping create the industrial and

infrastructural base in the country T l I d ` 4000 billi ( ) ( US D

  • Total Investments generated –` 4000 billion (approx.) (over US

D 80 bn)

  • S

ignificant player in domestic debt syndication.

  • Played a pivotal role in developing institutions that shaped the

country’s financial architecture

  • NS

E

  • Electronic S

tock Exchange

  • NS

E Electronic S tock Exchange,

  • NS

DL

  • S

ecurities Depository,

  • CARE
  • Rating Agency,

S HCIL Depository Participant e stamping etc

  • S

HCIL

  • Depository Participant, e-stamping etc.
  • S

IDBI

  • Funding institution for S

S I and ME

  • Exim Bank-

A bank to finance export Import

  • ARCIL
  • Asset reconstruction company
  • NeDFI
  • For development of North-East Region

3

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SLIDE 4

Systemic Importance Systemic Importance

  • Minimum 51% shareholding by Govt. at all times as specified in

the Memorandum & Articles of Association

  • Large size and retail base
  • Large investments by PF / Superannuation funds
  • Large investments by PF / Superannuation funds
  • Continued Govt. support - Infusion of ` 3119.04 crore as

preferential allotment of equity.

  • Designated as the lead DFI

Designated as the lead DFI

  • Large and continuing investments in strategic sectors

I h ti i j t i l / di ti

4

  • In-house expertise in project appraisal / syndication
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SLIDE 5

Transition from DFI to a full Transition from DFI to a full-

  • service bank

service bank

I S t b 2004 IDBI d f it t hil DFI t t i t

  • In S

eptember 2004, IDBI moved from its erstwhile DFI status into a full-service commercial bank offering the entire suite of banking products

  • Today,

IDBI has positioned itself as a bank of choice with corporate and retail customers alike p

  • Created a niche for itself as a nimble, swift and sure footed,

technologically driven bank offering the added benefit of security

  • n account of its maj ority Government ownership

j y p

  • Undertaken extensive organisational restructuring post-conversion

and post-merger of two banks with itself a d post e ge o two ba s w t tsel

  • Operates off a customer-centric vertical structure to ensure lowest

TATs and total customer satisfaction

5

TATs and total customer satisfaction

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SLIDE 6
  • Reach

Distribution Network Distribution Network

  • Reach
  • 816 branches; 1370 ATMs
  • 1- Overseas, 238-Metro, 307-Urban,

184-S emi Urban & 86-Rural

  • Presence in 548 locations
  • Network of :
  • 60 Retail Asset Centres
  • 31 City S

ME Centres

  • 14 Agri Processing Centres
  • 4 Regional Processing Units

22 C t l Cl i U it

  • 22 Central Clearing Units
  • 6 Currency Chests across the country
  • Internet banking
  • 4 Regional & 1 Central Training College
  • 4 Regional & 1 Central Training College
  • Corporate customers:3000+
  • Retail customer base:5 million+
  • Global expansion plans

6

  • Global expansion plans
  • Initiated the process for setting up Branch Offices at S

ingapore and Representative Office at S hanghai

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SLIDE 7

Operating Profile

  • Range of products for its Retail and Corporate customers
  • Range of products for its Retail and Corporate customers
  • Retail – S

uite of value added asset & liability products leveraging off a strong technology platform

  • S

ME & Agri business

  • S

ME & Agri business

  • Corporate – Infrastructure financing, Proj ect loans, Working Capital

loans, Loan S yndication & Advisory, financial assistance and advisory for Carbon Credit business

  • Treasury related products
  • Fee based products
  • Operates off an integrated core banking system with all the

branches networked

  • Put in place a state of the art data center and disaster recovery
  • Put in place a state of the art data center and disaster recovery

center

  • Reduction in EOD processing time; ensures 100%data availability
  • Complete infrastructure available on demand ensuring scalability

7

p g y

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SLIDE 8

Distinctive strengths

Description

–Privileged corporate banking relationships and unparalleled reputation in project finance and infrastructure lending Business strengths Nimble in size –Amongst lowest staff strength (with about 13800 employees) Good branch network without any legacy constraints –Sophisticated retail banking operations and capability strengths –Good branch network without any legacy constraints Distinctive technology –State-of-the-art technology and fully integrated core banking solution rolled

  • ut across 100% of branches

technology –Best-in-class ATM and alternate channel technology Lean operations –Centralized, automated and lean operating architecture for back-office

  • perations, cheque clearing and loan sanctions

Lean operations

  • pe at o s, c eque c ea

g a d oa sa ct o s –Competitive cost structure Integration –Institutionalised ability to rapidly integrate and extract value / synergies from acq isition based on e perience of t o integrations

8

teg at o capability acquisition based on experience of two integrations

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SLIDE 9

Highlights (Q4 FY 11 over Q4 FY 10)

1109 S 157098 S 180486 OME 543 516 IT 1167

45%

NII

14%

ADVANCE

8%

DEPOSITS

22%

FEE INCO

62%

PAT

68%

OP PROF N

762

A

138202

D

167667

F

444

P

318

O

693

20.88 14.59

ASA

0.89 0.60

OA

16.38 15.52

ROE

2.10 1.57

NIM

Q4 11 Q4 10

CA

Q4 11 Q4 10

R

Q4 11 Q4 10

R

Q4 11 Q4 10

N

9

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SLIDE 10

Highlights ( FY 11 over FY 10)

4329 S 157098 S 180486 OME 1762 1650 IT 4158

92%

NII

14%

ADVANCE

8%

DEPOSITS

23%

FEE INCO

60%

PAT

53%

OP PROF N

2256

A

138202

D

167667

F

1435

P

1031

O

2726

10

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SLIDE 11

Profit & Loss

(` in Crore)

Mar.11 Mar.10 Mar.11 Mar.10 Particulars Quarter Ended Year Ended Interest income 5025 4083 18601 15261 Interest expenses 3917 3321 14272 13005 Net Interest income 1109 762 4329 2256 Other Income 676 545 2084 2302 Total income 1784 1307 6413 4558 Operating Expenses 617 613 2255 1831

  • Employee Cost

305 286 1046 773

  • Other Operating Expenses

313 328 1208 1058 p g p Operating Profit 1167 693 4158 2726 Provisions & contingencies 651 375 2508 1695

  • NPAs / Write offs

131 398 1255 723

  • Restructured Assets

7 47 123 599

  • Others (Invt., Std Asset, etc)

144 98 499 360

  • Tax

167 166 735 346

  • Deffered Tax

202

  • 333
  • 104
  • 333

Profit After Tax 516 318 1650 1031

11

Profit After Tax 516 318 1650 1031

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SLIDE 12

Details of Other Income

(` in Crore)

Particulars Quarter Ended Year Ended Mar.11 Mar.10 Mar.11 Mar.10 Commission, Excg & Brkg 462 368 1470 1225 Profit on sale of investments 48 67 143 748 Particulars Profit/(Loss) on revaluation of investment 4

  • 8
  • 20
  • 52

Profit on sale of Fixed Assets

  • 2
  • 1
  • 3
  • 1

Profit on forex/derivatives 57 26 190 98 Dividend from subsidiaries 33 18 Recovery from written off cases 73 37 144 121 Other misc income 34 56 126 144 Total * 676 545 2084 2302 * Fee Based Income 543 444 1762 1435

12

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SLIDE 13

Details of Operating Expenses

(` in Crore)

Mar 11 Mar 10 Mar 11 Mar 10 Particulars Quarter Ended Year Ended Mar.11 Mar.10 Mar.11 Mar.10 Staff Cost 305 286 1046 773 Rent, taxes & lighting 58 62 208 178 Printing & stationery 11 8 35 29 Advertisement & Publicity 8 7 46 46 Depreciation 29 32 127 91 Postage, Telegram, Teleph., etc 13 23 51 64 Repairs and maintenance 20 25 96 84 p Insurance 35 30 152 114 Banking expenses 17 13 57 47 Expenses for recovery of write off cases 1 4 4 O t i 45 55 174 153 Outsourcing expenses 45 55 174 153 Fee and other expenses for borrowing 8 18 29 74 Other expenditure 70 53 229 173 TOTAL 617 613 2255 1831

13

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SLIDE 14

Key Profitability Indicators

Mar 11 Mar 10 Mar 11 Mar 10 Particulars Quarter Ended Year Ended Mar.11 Mar.10 Mar.11 Mar.10 Net Interest Margin (%) 2.10% 1.57% 2.10% 1.27% Return on Assets (%) 0.89% 0.60% 0.73% 0.53% Return on Equity (%) 16 38% 15 52% 14 92% 13 14% Return on Equity (%) 16.38% 15.52% 14.92% 13.14% Cost of all liabilities (%) 6.73% 6.25% 6.31% 6.69% Yield on Total Assets (%) 9.80% 8.71% 9.15% 9.03% Margin (%) 3.07% 2.46% 2.84% 2.34% Margin (%) 3.07% 2.46% 2.84% 2.34% Cost of Funds (%) 7.45% 6.86% 6.94% 7.35% Return on Earning Assets (%) 10.05% 8.94% 9.39% 9.29% Spread (%) 2.60% 2.07% 2.45% 1.94% p (%) % % % % Low cost funds to Total Funds (%) 20.88% 14.59% 20.88% 14.59% Net NPA Ratio (%) 1.06% 1.02% 1.06% 1.02%

14

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SLIDE 15

Key Operating Indicators

QuarterEnded YearEnded Mar.11 Mar.10 Mar.11 Mar.10 Non interest income to TotalIncome 11 85% 11 77% 10 07% 13 11% Particulars Quarter Ended Year Ended Non-interest income to Total Income 11.85% 11.77% 10.07% 13.11% Efficiency [Cost- Net Income] Ratio 34.60% 46.93% 35.16% 40.18% St ffE t t t li 5 34% 6 17% 5 06% 4 31% Staff Expenses to total income 5.34% 6.17% 5.06% 4.31% Staff Expenses to total expenses 6.72% 7.26% 6.33% 5.10% Overhead efficiency ratio 109.44% 88.80% 92.41% 125.68%

15

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SLIDE 16

Balance Sheet

(` in Crore) (` in Crore)

As at 31-Mar-11 31-Mar-10 LIABILITIES LIABILITIES Capital 985 725 Reserve & Surplus 13582 9438 [Net Worth] 12642 8197 D it 180486 167667 Deposits 180486 167667 Borrowings 51570 47709 Other Liabilities & provisions 6755 8033 Total 253377 233573 ASSETS Cash & balance with RBI 19559 13903

  • Bal. with banks & money at call

1207 679 Investments 68269 73345 Advances 157098 138202 Fixed Assets [incl leased assets] 3037 2997 Other Assets 4206 4446 Total 253377 233573

16

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SLIDE 17

NPAs

(` in Crore) As at 31-Mar-2011

(` in Crore)

Gross Advances 158205 Gross NPAs 2785 Gross NPAs as % of Gross Advances 1.76 Total Provisions held 1107 Net Advances 157098 Net NPAs 1678 Net NPAs as % of Net Advances 1.06 Provision Coverage Ratio 39.75 P i i C R ti RBI G id li 74 66

Sectoral Net NPAs % Agri & Allied acti ities 1 57

Provision Coverage Ratio as per RBI Guidelines 74.66

Agri & Allied activities 1.57 Industry (Micro, Small, Medium & Large 1.95 Services 0.88

17

Personal Loans 1.13

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SLIDE 18

Summary of NPAs as on Mar 31, 2011

(` i C )

Gross NPA Provision Net NPA

(` in Crore)

As on 01.04.2010 2129 723 1406 Additions on account of merger 30 17 13 Additions (First time NPA) 1958 1373 585 Less: (i) Upgradations 277 71 206 (ii) Recoveries 171 50 121 ( ) (iii)Write Offs 884 884 As on 31.03.2011 2785 1107 1678

18

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SLIDE 19

Advances

(` in Crore) Vertical 31-Mar-11 31-Mar-10 Corporate 103388 101109

Nature 31-Mar-11 31-Mar-10 Bills

2659 3074 SME 13527 10159 Agri 10741 8240 Retail 29442 18694

CC, OD, WCDL etc

33098 20268

Term Loans

121340 114860

Total

157098 138202

Maturity profile Amount

Total 157098 138202

Top 20 Borrowers

38256

Maturity profile Amount Upto 6 Months 29226 6 Months-1Year 7523 1 3 Y 63331 1-3 Years 63331 3-5 Years 23375 > 5 Years 33643

19

Total 157098

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SLIDE 20

Advances

(` in Crore)

Commited Industry Outstanding Commited Exposure (FB + NFB)

POWER 23242 33424 RETAIL LOANS 24985 26870 IRON AND STEEL 15611 23174 ROADS & BRIDGES / PORTS 13027 19683 TELECOM 12162 17752 OIL & GAS/PETROLEUM PRODUCTS 10928 16399 NBFC 11294 14578 AGRICULTURE AND RELATED SERVICES ACTIVITY 10694 13932 GENERAL MACHINERY & EQUIPMENTS 8006 11593 CONSTRUCTION 7962 10306 TEXTILES 7256 10151 TRADING 4341 7369 METAL PRODUCTS 4124 7307 CEMENT 5796 7105 INFRASTRUCTURE OTHER 4974 7102 INFRASTRUCTURE OTHER 4974 7102 CHEMICAL & CHEMICAL PRODUCTS 3371 5473 COMMERCIAL REAL ESTATE 3799 5009 HOUSING FINANCE COMPANIES 2948 4992 ELECTRICAL MACHINERY & EQUIPMENTS 3611 4846

20

ELECTRICAL MACHINERY & EQUIPMENTS 3611 4846 FERTILIZERS 987 4372

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SLIDE 21

Restructuring Restructuring

(` in Crore)

In d u s t ry M a r- 11 M e ta l I ndus try 2743 Ele c tric ity 2383 Te xtile s 1 51 2 Air Tra ns po rt 698 p F o o d & B e ve ra ge s 620 Othe r S e rvic e s 524 Ele c tic a l M a c hine ry 387 Te le c o m m unic a tio ns 331 I nfra s truc ture 1 99 I nfra s truc ture 1 99 He a lth C a re 1 81 R e a l Es ta te 1 61 M o to r Ve hic le s 1 56 C he m ic a l & F e rtilize rs 1 1 3 1 00 P a pe r 1 00 Dia m o nd I ndus try 96 F ina nc ia l S e rvic e s 90 P rinting 72 M is c . I ndus try 57 Ele c tro nic s 38 R e ta il S to re 29 I T 25 Agro I ndus trie s 24 M ining a nd qua rrying 8

21

T o t a l 10 5 4 7

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SLIDE 22

Investments Investments

(` in Crore)

Category HTM AFS HFT TOTAL Government securities 44034 3807 636 48477 SASF Securities 5541 5541 SASF Securities 5541 5541 Shares 287 3237 3 3527 Debentures/ Bonds 232 2135 77.35 2444 Subsidiaries/ Joint Ventures 566 566 Others (CPs/CD/MF)etc. 2065 3390 3316 8771 Total 52725 12569 4032 69326

22

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SLIDE 23

List of some strategic investments List of some strategic investments

Entity % IDBI ASSET MANAGEMENT LTD. 100.00 IDBI CAPITAL MARKET SERVICES LIMITED 100.00 IDBI INTECH LIMITED 100.00 IDBI MF TRUSTEE COMPANY LTD. 100.00 IDBI FEDERAL LIFE INSURANCE COMPANY LIMITED 48.00 IDBI TRUSTEESHIP SERVICES LIMITED 39.78 NATIONAL SECURITIES DEPOSITORY LIMITED 30.00 BIOTECH CONSORTIUM INDIA LIMITED 27.93 CREDIT ANALYSIS AND RESEARCH LIMITED 25.79 SIKKIM INDUSTRIAL DEVELOPMENT AND INVESTMENT CORPORATION LIMITED 37.15 MANIPUR INDUSTRIAL DEVELOPMENT CORPORATION LIMITED 34.67 NAGALAND INDUSTRIAL DEVELOPMENT CORPORATION LIMITED 30.34

ZORAM INDUSTRIAL DEVELOPMENT CORPORATION LIMITED 27.12

NORTH EASTERN DEVELOPMENT FINANCE CORPORATION LIMITED 25.00 INVESTORS SERVICES OF INDIA LIMITED 24 21 INVESTORS SERVICES OF INDIA LIMITED 24.21 SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA 19.21 ASSET RECONSTRUCTION COMPANY (INDIA) LIMITED 19.18 STOCK HOLDING CORPORATION OF INDIA LIMITED 18.95 OTC EXCHANGE OF INDIA LIMITED 17.00 NEPAL DEVELOPMENT BANK LIMITED 10.00 NEPAL DEVELOPMENT BANK LIMITED 10.00 SECURITIES TRADING CORPORATION OF INDIA LIMITED 6.60 CLEARING CORPORATION OF INDIA LIMITED 6.50 NATIONAL STOCK EXCHANGE OF INDIA LIMITED 5.00 UNITED STOCK EXCHANGE OF INDIA LIMITED 1.20 PONDICHERRY INDUSTRIAL PROMOTION DEVELOPMENT AND INVT CORP LTD 21.14

23

EDC LIMITED 11.43

TRIPURA INDUSTRIAL DEVELOPMENT CORPORATION LIMITED 11.36

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SLIDE 24

Liabilities Liabilities

(` in Crore)

Deposits 31-Mar-11 31-Mar-10 Current 23742 15673 Savings 13936 8787 Term 142808 143207 Total 180486 167667 Total 180486 167667

Borrowings 31-Mar-11 31-Mar-10 Tier I 3839 3594 Tier I 3839 3594 Upper Tier II 4286 3286 Lower Tier II 6837 5819 Flexibonds 493 7759 Omnibonds 15479 10687 Refinance/Borrowings 12002 12806 SLR Bonds 1177 2243

24

Outside India 8633 3758 Total 51570 47709

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SLIDE 25

Thank You Thank You

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