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Q1 FY 2016 Disclaimer: Certain statements contained in this - - PowerPoint PPT Presentation

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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.

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SLIDE 1

Q1 FY 2016

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SLIDE 2

Analyst Presentation – Q1 FY16 2

Disclaimer: Certain statements contained in this presentation may be statements

  • f 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

  • r activities should not be taken as a representation that such trends or activities

will continue in the future. There is no obligation to update or revise any forward- looking statements, whether as a result of new information, future events or

  • therwise. 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.

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SLIDE 3

IDBI Bank‟s Forte

3 Analyst Presentation – Q1 FY16

Strong Brand Value Significant player in domestic Debt Syndication Leading provider of Long Term Finance Growing Branch Network Diversified customer base

Ranks 37th amongst top 50 brands across country/sectors (Interbrand Rankings) Completed 133 mandates till date aggregating ` 2.6 lakh crore Apex role in creating industrial & infrastructural base in the country Branches -1747 ATMs -3114 Presence in 1285 locations Corporate and Retail customer base

  • f over 3000+ and

6.5 million+

As per Brand Trust Report 2015, Bank ranked 5th in BFSI Category & 2nd in PSU Category only after SBI.

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SLIDE 4

Performance Highlights Q1 FY16 (QoQ)

4 Analyst Presentation – Q1 FY16

` Crore 2,04,339 2,41,328 4,45,668 75,353 11 1,84,581 2,10,343 3,94,924 62,715 53,155 70,574 22,789 1,17,599 44,108 57,719 22,003 1,08,516 PSL Bulk TD CASA Retail TD Networth Advances Deposits Business

15% 11% 13% 20 % 21% 22% 4 % 8 %

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SLIDE 5

Performance Highlights Q1 FY16 (Profitability)

5 Analyst Presentation – Q1 FY16

` Crore

Profitability adversely impacted due to RIDF yielding significantly lesser returns

0.00% 0.50% 1.00% 1.50% 2.00% 2.50%

NIM ROE ROA

1.83% 2.38% 0.16% 1.70% 1.93% 0.14%

Quarter Ended Jun-15 Quarter Ended Jun-14

200 400 600 800 1000 1200 Fee Income

  • Ope. Profit

PAT 445 1138 135 370 928 106

Quarter Ended Jun-15 Quarter Ended Jun-14

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SLIDE 6

Profit & Loss - Snapshot

6 Analyst Presentation – Q1 FY16

` Crore 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
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SLIDE 7

Balance Sheet - Snapshot

7 Analyst Presentation – Q1 FY16

` Crore

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

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SLIDE 8

Growing Deposit Base

8 Analyst Presentation – Q1 FY16

CASA at 22.03% in Q1 FY16 compared to 20.97% in Q1 FY15

Composition Movement of Deposits ` Crore

Savings Bank A/c 13% Current A/c 9% Retail Term Deposits 29% Bulk Term Deposits 49%

Q1 2016

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

50000 100000 150000 200000 250000 300000

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SLIDE 9

Credit Base

9 Analyst Presentation – Q1 FY16

Diversified credit portfolio – Increasing focus in Retail

Composition Movement of Advances ` Crore

Retail 33% Overseas Corp. 11% Domestic Corp. 56%

Q1 2016

Retail 28% Overseas Corp. 10% Domestic Corp. 62%

Q1 2015

FY 2012 FY 2013 FY 2014 FY 2015 Q1 2016 Term Loans 131957 140803 140704 147372 147431 Bills 3278 4619 4884 6701 6244 CC/OD 45923 50885 52099 54304 50664 50000 100000 150000 200000 250000

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SLIDE 10

Industry-wise Advances

10 Analyst Presentation – Q1 FY16

Diversified credit portfolio

` Crore

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 Particulars Outstanding Committed

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Productivity

11 Analyst Presentation – Q1 FY16

Reflection of Bank’s quality and efficient manpower

Business per employee CASA per Employee ` Crore

Note: Excluding outsourced employees

23.9 25.7 24.7 26.2 28.0 21.0 22.0 23.0 24.0 25.0 26.0 27.0 28.0 29.0

FY 2012 FY 2013 FY 2014 FY 2015 Q1 2016

Busi/Employee 3.3 3.7 3.2 3.9 3.2 0.0 1.0 2.0 3.0 4.0 5.0

FY 2012 FY 2013 FY 2014 FY 2015 Q1 2016

CASA/Employee

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SLIDE 12

Robust growth in PSL book

12 Analyst Presentation – Q1 FY16

Relentless focus for increasing PSL Book towards complying regulatory limits

` Crore

@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.

38850 52639 61517 46812 50733 16099 23262 15903 24620

10000 20000 30000 40000 50000 60000 70000 80000 90000

FY 2013 FY 2014 FY 2015 Q1 2015 Q1 2016

PSL (Excl. RIDF) RIDF

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SLIDE 13

Investments

13 Analyst Presentation – Q1 FY16

` Crore

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 Particulars Q1 FY2016

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SLIDE 14

Major Strategic stakes

14 Analyst Presentation – Q1 FY16

Pivotal role in developing Institutions that shaped country’s financial architecture

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Analyst Presentation – Q1 FY16 15

Maturity Profile as on Jun-15

` Crore

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

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Other Income

16 Analyst Presentation – Q1 FY16

Robust & Efficient Operations Management

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

  • 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 Particulars Quarter Ended

` Crore

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SLIDE 17

Overhead Efficiency

17 Analyst Presentation – Q1 FY16

Overhead Efficiency and Cost to Income ratio one of the best amongst peer set Overhead Efficiency Cost to Income

81% 103% 90% 100% 64% 0% 20% 40% 60% 80% 100% 120% FY 2012 FY 2013 FY 2014 FY 2015 Q1 2016 39% 36% 37% 41% 47% 0% 10% 20% 30% 40% 50% FY 2012 FY 2013 FY 2014 FY 2015 Q1 2016

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SLIDE 18

Movement in Key Ratios

18 Analyst Presentation – Q1 FY16

ROEA Vs COF NIM & ROA

*CRAR Figures for FY 2012 & FY 2013 are as per Basel II

137 146 137 141 142

130 132 134 136 138 140 142 144 146 148 FY 2012 FY 2013 FY 2014 FY 2015 Q1 2016

Book value/Share

10.38% 10.71% 10.28% 10.27% 9.48% 8.36% 8.31% 7.87% 7.80% 7.44% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00%

FY 2012 FY 2013 FY 2014 FY 2015 Q1 2016 ROEA COF 2.02% 2.12% 2.17% 1.90% 1.83% 0.81% 0.69% 0.38% 0.27% 0.16%

0.00% 0.50% 1.00% 1.50% 2.00% 2.50%

FY 2012 FY 2013 FY 2014 FY 2015 Q1 2016

NIM ROA

14.58% 13.13% 11.78% 11.76% 11.74%

0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% FY 2012 FY 2013 FY 2014 FY 2015 Q1 2016

CRAR

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SLIDE 19

Movement in Key Ratios

19 Analyst Presentation – Q1 FY16

` Crore Growth in Average CASA Growth in Average Deposits

Healthy growth recorded in Average CASA and Average Deposits

10000 20000 30000 40000 50000 60000 70000 FY 2012 FY 2013 FY 2014 FY 2015 Q1 2016 CASA Avg. CASA 50000 100000 150000 200000 250000 300000 FY 2012 FY 2013 FY 2014 FY 2015 Q1 2016 Total Deposits

  • Avg. Total

Deposits

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Capital Adequacy

20 Analyst Presentation – Q1 FY16

Basel III Compliant Tier 1 at 8.13 % as at Q1 FY 16 increased by 27 Basis Points compared to Q1 FY 2015

7.85% 7.24% 0.01% 0.89%

3.92% 3.61% CET 1 AT 1 Tier 2 Capital

11.78% 11.74% Q1 2015 Q1 2016

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

(` Crore)

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NPA Movement

21 Analyst Presentation – Q1 FY16

Aggressive provisioning - PCR have been highest amongst peers

` Crore

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 Particulars For the Quarter Jun 15 For FY ended Mar 15

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SLIDE 22

Analyst Presentation – Q1 FY16 22

NPA Movement

` Crore

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 For Quarter Jun 15 For FY ended Mar 15 #Including NPV Loss of NPA Advances

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NPA Classification

23 Analyst Presentation – Q1 FY16

` Crore Particulars Gross NPA Sub Standard Assets 3014 Doubtful Assets 10784 Loss Assets 313 Total 14112

3014 10784 313

Sub Standard Assets Doubtful Assets Loss Assets

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

9.42 8.39 7.48 1.21 4.07 Agri and Allied Activities Industry Services Personal Loans Others

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SLIDE 24

Analyst Presentation – Q1 FY16 24

Summary of Restructured Advances as on June 30, 2015

` Crore

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 2227 Total 16151 4625 20776

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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

` Crore

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Provisions & Contingencies

26 Analyst Presentation – Q1 FY16

` Crore

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 Particulars Quarter Ended Y-O-Y

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SLIDE 27

Fast growing Distribution Network

27 Analyst Presentation – Q1 FY16

Robust branch expansion over the years specially in rural and semi-urban locations

 1747 Branches  3114 ATMs  11 Currency Chest  6 Regional Processing Units  30 Central Clearing Unit  75 Retail Assets Centers  13 e-Lounges

95 132 270 373 386 236 282 372 524 535 377 388 426 451 457 264 274 319 368 368 1 1 1 1 1 200 400 600 800 1000 1200 1400 1600 1800 2000

FY 2012 FY 2013 FY 2014 FY 2015 Q1 2016

Rural Semi-Urban Urban Metro Overseas

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SLIDE 28

Shareholders

28 Analyst Presentation – Q1 FY16

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% LIC 10% FIs / Banks 1% FIIs 3% Corp. 1% Others 9%

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SLIDE 29

Major Awards & Accolades

29 Analyst Presentation – Q1 FY16

Ranks 39th and 37th 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.

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Key Business Initiatives

30 Analyst Presentation – Q1 FY16

Consistently introducing/delivering customer savvy products/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

Retail Liabilities – New Product/Services

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SLIDE 31

Key Business Initiatives

31 Analyst Presentation – Q1 FY16

Consistently introducing/delivering customer savvy products/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

Retail Assets/ Alternate Channels – New Product/Services

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SLIDE 32

Strategies & Way Forward

32 Analyst Presentation – Q1 FY16

Continue the focus to increase exposure in

Retail Advances,

particularly

Priority Sector

Focus on increasing

Overseas Corporate Book by

leveraging Bank’s brand image. Scaling up

CASA and Retail Deposits

Buoyancy in

Fee Based Income Global Expansion Plans,

particularly in Singapore and Shanghai.

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SLIDE 33

33 Analyst Presentation – Q1 FY16