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Q2 FY 2016 Disclaimer: Certain statements contained in this - - PowerPoint PPT Presentation

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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.

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SLIDE 1

Q2 FY 2016

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SLIDE 2

Analyst Presentation – Q2 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 – Q2 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 -1778 ATMs -3203 Presence in 1310 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 Q2 FY16 (Q o Q)

4 Analyst Presentation – Q2 FY16

` Crore 2,04,661 2,39,282 4,43,943 77,427 5 1,95,057 2,38,006 4,33,062 59,060 57,887 71,935 22,909 1,23,083 52,433 62,489 22,148 1,09,460 PSL Bulk TD CASA Retail TD Networth Advances Deposits Business

1% 5% 3% 31 % 10% 15% 3% 11%

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SLIDE 5

Performance Highlights Q2 FY16 (Profitability)

5 Analyst Presentation – Q2 FY16

` Crore

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

NIM ROE ROA

2.06% 2.10% 0.14% 1.93% 2.14% 0.15% Quarter Ended Sep-15 Quarter Ended Sep-14

500 1000 1500 2000 Fee Income

  • Ope. Profit

PAT

487 1519 120 473 1197 118 Quarter Ended Sep-15 Quarter Ended Sep-14

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SLIDE 6

Performance Highlights HY 16 (Profitability)

6 Analyst Presentation – Q2 FY16

` Crore

0.00% 1.00% 2.00% 3.00% NIM ROE ROA

1.94% 2.24% 0.15% 1.82% 2.03% 0.14%

6 Months ended Sep-15 6 Months ended Sep-14

500 1000 1500 2000 2500 3000 Fee Income

  • Ope. Profit

PAT

932 2657 255 843 2125 225 6 Months ended Sep-15 6 Months ended Sep-14

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SLIDE 7

Profit & Loss - Snapshot

7 Analyst Presentation – Q2 FY16

` Crore

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 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

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SLIDE 8

Balance Sheet - Snapshot

8 Analyst Presentation – Q2 FY16

` Crore

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 & m
  • ney at call

7 217 4 317 Investm ents 78 405 90 794 Advances 2 04 661 1 95 057 Fixed Assets [incl. leased assets] 3 115 3 217 Other Assets 33 440 25 366 Total 3 38 458 3 29 111

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Growing Deposit Base

9 Analyst Presentation – Q2 FY16

CASA at 24.19% in Q2 FY16 compared to 22.03% in Q2 FY15

Composition Movement of Deposits ` Crore

Savings Bank A/c 14% Current A/c 10% Retail Term Deposits 30% Bulk Term Deposits 46%

Q2 FY2016

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

50000 100000 150000 200000 250000 300000

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SLIDE 10

Credit Base

10 Analyst Presentation – Q2 FY16

Diversified credit portfolio – Increasing focus in Retail

Composition Movement of Advances ` Crore

FY 2012 FY 2013 FY 2014 FY 2015 Q2 2016 Term Loans 131957 140803 140704 147372 146738 Bills 3278 4619 4884 6701 6190 CC/OD 45923 50885 52099 54304 51732 50000 100000 150000 200000 250000

Retail 32% Overseas Corp. 12% Domestic Corp. 56%

Q2 2016

Retail 27% Overseas Corp. 10% Domestic Corp. 63%

Q2 2015

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SLIDE 11

Industry-wise Advances

11 Analyst Presentation – Q2 FY16

Diversified credit portfolio

` Crore

FB NFB Total Infrastructure 39 771 16 768 565 Basic Metal and Metal Products 13 862 6 996 209 All Engineering 8 611 11 331 199 Chemicals and Chemical Products (Dyes, Paints, Etc.) 7 495 3 361 109 Mining and Quarrying 9 134 2 042 112 Food Processing 6 172 1 647 78 Construction 3 303 5 425 87 Vehicles, Vehicle Parts and Transport Equipment’s 5 309 2 167 75 Textiles 5 073 698 58 Cement and Cement Products 5 846 540 64 Petroleum (non-infra), Coal Products (non- mining) and Nuclear Fuels 1 488 1 333 28 Rubber, Plastic and their Products 2 944 446 34 Gems and Jewellery 2 144 1 404 35 Paper and Paper Products 1 521 460 20 Beverages (excluding Tea & Coffee) and Tobacco 511 15 5 Leather and Leather products 496 5 5 Glass & Glassware 118 1 1 Wood and Wood Products 114 3 1 Others 1 19 136 35 289 1 52 783 TOTAL 2 33 048 89 931 1 54 468 Outstanding Particulars

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Productivity

12 Analyst Presentation – Q2 FY16

Reflection of Bank’s strategy of Rebalancing, yielding results

Business per employee CASA per Employee ` Crore

Note: Excluding outsourced employees 23.9 25.7 24.7 26.2 27.4 22.0 23.0 24.0 25.0 26.0 27.0 28.0

FY 2012 FY 2013 FY 2014 FY 2015 Q2 2016

Busi/Employee 3.3 3.7 3.2 3.9 3.4 0.0 1.0 2.0 3.0 4.0 5.0

FY 2012 FY 2013 FY 2014 FY 2015 Q2 2016

CASA/Employee

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Robust growth in PSL book

13 Analyst Presentation – Q2 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 Q2 FY2016, the same has been taken as per new PSL guidelines.

38850 52639 61517 43812 52631 16099 23262 15248 24796

10000 20000 30000 40000 50000 60000 70000 80000 90000

FY 2013 FY 2014 FY 2015 Q2 2015 Q2 2016

PSL (Excl. RIDF) RIDF

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SLIDE 14

Investments

14 Analyst Presentation – Q2 FY16

` Crore 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

Q2 FY2016 Particulars

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SLIDE 15

Major Strategic stakes

15 Analyst Presentation – Q2 FY16

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

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Analyst Presentation – Q2 FY16 16

Maturity Profile as on Sep-15

` Crore

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.

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Other Income

17 Analyst Presentation – Q2 FY16

Robust & Efficient Operations Management

` Crore 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

  • f investment

16 (20) (179) 19 (20) (193) Profit on sale of Fixed Assets (0) (0) (91) (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 Particulars Quarter Ended Half Year Ended

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Overhead Efficiency

18 Analyst Presentation – Q2 FY16

Overhead Efficiency and Cost to Income ratio one of the best in Banking Industry Overhead Efficiency Cost to Income

81% 103% 90% 100% 90% 77% 0% 20% 40% 60% 80% 100% 120% FY 2012 FY 2013 FY 2014 FY 2015 Q2 2016 HY 2016

39% 36% 37% 41% 38% 42% 32% 34% 36% 38% 40% 42% 44% FY 2012 FY 2013 FY 2014 FY 2015 Q2 2016 HY 2016

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Movement in Key Ratios

19 Analyst Presentation – Q2 FY16

ROEA Vs COF NIM & ROA

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

10.38% 10.71% 10.28% 10.27% 9.75% 9.62% 8.36% 8.31% 7.87% 7.80% 7.35% 7.40% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00%

FY 2012 FY 2013 FY 2014 FY 2015 Q2 2016 HY 2016 ROEA COF

2.02% 2.12% 2.17% 1.90% 2.06% 1.94% 0.81% 0.69% 0.38% 0.27% 0.14% 0.15%

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

FY 2012 FY 2013 FY 2014 FY 2015 Q2 2016 HY 2016

NIM ROA 137 146 137 141 143

130 132 134 136 138 140 142 144 146 148 FY 2012 FY 2013 FY 2014 FY 2015 Q2 2016

Book value/Share

14.58% 13.13% 11.71% 11.76% 11.66%

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 Q2 2016

CRAR

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SLIDE 20

Movement in Key Ratios

20 Analyst Presentation – Q2 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 Q2 2016 CASA Avg. CASA

50000 100000 150000 200000 250000 300000 FY 2012 FY 2013 FY 2014 FY 2015 Q2 2016 Total Deposits

  • Avg. Total

Deposits

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Capital Adequacy

21 Analyst Presentation – Q2 FY16

Basel III Compliant

Marginal decline in CRAR by 5 Basis Pts due to increase in advances

Tier1 at 8.04 % as at Q2 FY16 increased by 42 Basis Points compared to Q2 FY15

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%

( ` Crore)

7.61% 7.16% 0.01% 0.88%

4.09% 3.62%

CET 1 AT 1 Tier 2 Capital

Q2 2015 Q2 2016

11.71% 11.66%

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NPA Movement

22 Analyst Presentation – Q2 FY16

PCR has been highest amongst peers

` Crore

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 Particulars For the Quarter Sep 15 For Half Year ended Sep 15

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SLIDE 23

NPA Classification

23 Analyst Presentation – Q2 FY16

` Crore

2760 11643 355

Sub Standard Assets Doubtful Assets Loss Assets Particulars Gross NPA Sub Standard Assets

2760

Doubtful Assets

11643

Loss Assets

355

Total

14758

Category Oustanding Advances Gross NPA GNPA % of O/S GNPA % to Total GNPA

Agri and Allied Activities 11903 1322 11.11

8.96

Industry (Micro, Small, Medium & Large) 110639 9730 8.79

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

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Analyst Presentation – Q2 FY16 24

Summary of Restructured Advances as on September 30, 2015

` Crore

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 2187 Total 16025 4063 20089

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Industry-wise Restructured Advances as on September 30, 2015

` Crore

Analyst Presentation – Q2 FY16 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

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Provisions & Contingencies

26 Analyst Presentation – Q2 FY16

` Crore

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 Quarter Ended Half Year ended Particulars

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SLIDE 27

Fast growing Distribution Network

27 Analyst Presentation – Q2 FY16

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

 1778 Branches  3203 ATMs  11 Currency Chest  6 Regional Processing Units  29 Central Clearing Unit  75 Retail Assets Centers  13 e-Lounges

95 132 270 373 396 236 282 372 524 550 377 388 426 451 459 264 274 319 368 372 1 1 1 1 1 200 400 600 800 1000 1200 1400 1600 1800 2000

FY 2012 FY 2013 FY 2014 FY 2015 Q2 2016

Rural Semi-Urban Urban Metro Overseas

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SLIDE 28

Shareholders

28 Analyst Presentation – Q2 FY16

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

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SLIDE 29

Major Awards & Accolades

29 Analyst Presentation – Q2 FY16

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 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

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 – Q2 FY16

Consistently introducing/delivering customer savvy products/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

Retail Assets/ Alternate Channels – New Product/Services

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SLIDE 31

Strategies & Way Forward

31 Analyst Presentation – Q2 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 32

32 Analyst Presentation – Q2 FY16