Oriental Bank of Commerce — Q2 FY2020 Earnings Presentation
44 slides from Oriental Bank of Commerce's earnings presentation, Oct 22, 2019
Slide 1: Presentation on Financial Results for quarter ended 30.09.2019
HO/MBD/2019 22.10.2019 Scrip Code: ORIENTBANK Scrip Code: 500315 The Executive Director, General Manager, National Stock Exchange of India Dept. of Corporate Services, Ltd., Exchange Plaza, 5th Floor, Bandra Bombay Stock Exchange Limited, Kurla Complex, Bandra (E),Mumbai- Phiroze Jeejeebhoy Towers,
Slide 2: Oriental Bank of Commerce
ORIENTAL GST EXPRESS LOAN OY © ® © ©
Slide 3: Q2 FY20 key highlights
` in Crores Q2- FY 20 Variance Variance (Y-o-Y) (Q-o-Q) Operating Profit 1,176 20.99% 14.73% Net Profit 126 23.53% 11.50% Total Income 5,702 14.80% 1.20% Other Income 824 20.64% 15.08% Net Interest Income 1,456 14.74% 6.20% Other Income/Total Income 14.46% 70 bps 177 bps NIM 2.62% 6 bps 21 bps CET 1
Slide 4: Key ratios and asset quality highlights
` in Crores Q2- FY 20 Variance Variance (Y-o-Y) (Q-o-Q) Cost to Income Ratio 48.42% 177 bps 246 bps Yield on Total Advances 8.53% 55 bps 18 bps Gross NPA 20,582 19.83% 3.68% Gross NPA % 12.53% 471 bps 3 bps Net NPA 9,075 34.22% 2.87% Net NPA % 5.94% 413 bps 3 bps PCR 77.13% 1182 bps 81 bps 3
Slide 5: CASA, deposits and MSME highlights
` in Crores Q2- FY 20 Q1- FY 20 Variance (Q-o-Q) CASA 68,046 66,754 1.94% CASA % 30.22% 28.73% 149 bps Bulk Deposits % 6.72% 10.12% 340bps Cost of Deposit 5.82% 5.89% 7 bps ROA (Annualised) 0.19 % 0.16% 3bps MSME 32,904 30,849 6.66% Book Value per Share (including DTA) 128.63 127.62 0.79% 4
Slide 6: H1 FY20 highlights
` in Crores H1- FY 20 H1- FY 19 Variance (H1-o-H1) Operating Profit 2,201 1,697 29.70% Net Profit 239 (291) +ve Net Interest Income 2,827 2,607 8.44% Other Income 1,540 1,144 34.62% Other Income/ Total Income 13.58% 11.80% 178bps Cost to Income Ratio 49.59% 54.76% 517bps Fresh Slippages 2,801 4,281
Slide 7: Business parameters and CASA
` in Crores 68,387 Sep 19 Jun 19 Sep 18 68,046 Parameters Q2<>Q1 Y-o-Y Q2 Q2 Q1 66,754 Total Business 3,89,409 4,02,495 3,55,352 (3.25%) 9.58% Advances 1,64,207 1,70,121 1,48,911 (3.48%) 10.27% 64,830 Deposits 2,25,202 2,32,374 2,06,441 (3.09%) 9.09% 63,942 Current 14,211 13,230 12,692 7.41% 11.97%
Slide 8: Income analysis
` in Crores Variation Variation S Sep 19 Jun 19 Sep 18 Sep 19 Sep 18 Parameters Y-o-Y n Q2 Q1 Q2 Q2<>Q1 Y-o-Y H1 H1 1 Interest on Advances/Bills 3,428 3,379 2,882 1.45% 18.95% 6,807 5,815 17.06% 2 Interest on Investments 1,380 1,456 1,326 (5.22%) 4.07% 2,836 2,581 9.88% 3 Other Interest Income 70 84
Slide 9: Expenses analysis
` in Crores S Sep 19 Jun 19 Sep 18 Variation Sep 19 Sep 18 Variation Parameters n Q2 Q1 Q2 Q2<>Q1 Y-o-Y H1 H1 Y-o-Y 1 Intt paid on Deposits 3,280 3,375 2,816 (2.81%) 16.48% 6,655 5,574 19.39% 2 Intt paid on Bonds 108 107 119 0.93% (9.24%) 215 237 (9.28%) 3 Others 34 66 80 (48.48%) (57.50%) 100 135 (
Slide 10: Profit and loss summary
` in Crores Sep 19 Jun 19 Sep 18 Variation Sep 19 Sep 18 Variation Sn Parameters Q2 Q1 Q2 Q1<>Q2 Y-o-Y H1 H1 Y-o-Y 1 Interest Income 4,878 4,919 4,284 (0.83%) 13.87% 9,797 8,553 14.54% 2 Interest Expenses 3,422 3,548 3,015 (3.55%) 13.50% 6,970 5,946 17.22% 3 NII (Spread) (1-2) 1,456 1,371 1,269 6.20
Slide 11: Operating profit and net profit
` in Crores Operating Profit 1176 972 1002 1055 1025 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Net Profit 102 145 202 113 126 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 10
Slide 12: NIM, ROA, NII and ROE
NIM ROA 2.79% 2.75% 0.30% 2.62% 0.23% 2.56% 0.19% 0.16% 0.16% 2.41% Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 NII ROE 1473 1456 1418 6.26% 1371 5.28% 4.26% 3.27% 3.56% 1269 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 11
Slide 13: Productivity, cost to income and LCR
Business per Employee ` in Crores Business per Branch 169 169 18.6 18.6 18.1 164 152 16.5 149 16.0 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q2-19 Q3-19 Q4-19 Q1- 20 Q2- 20 Cost to Income Ratio Liquidity Coverage Ratio 56.63% LCR% Reg. Rqmnt 119.13% 120.74% 125.05% 50.88% 50.19% 49.50% 48.42% 100% 100% 100% Q2-
Slide 14: Cost of deposits and yield on advances
Cost of Deposits 5.89% 5.84% 5.82% 5.62% 5.54% Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Yield on Total Advances 8.53% 8.37% 8.35% 8.28% 7.98% Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 13
Slide 15: Operating profit to assets and RWA
0.90% 0.84% 0.80% 0.73% 0.72% 0.72% 0.69% 0.70% 0.60% 0.50% 0.42% 0.43% 0.40% 0.40% Operating Profit/Asset 0.37% 0.40% Operating Profit/RWA 0.30% 0.20% 0.10% 0.00% Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 14
Slide 16: Components of other income
`in Crore Total Income Insurance Other Third Jun 19 2% Party Products Sep 19 Jun 19 Variation Parameters 1% General banking Q2 Q1 Q-o-Q 28% Other Incl. Total Income 5702 5635 1.19% 13% Treasury Income 50% Other income 824 716 15.08% Credit Related Components of Other Income Forex 4% 15% Insurance 32
Slide 17: Capital adequacy ratio
` in Crores Sep 19 Jun 19 Mar 19 Capital Adequacy Ratio Sn Particulars Q2 Q1 Q4 14.03% 13.77% 16.00% 1 CET - I 15,447 15,301 14,440 12.73% 14.00% 11.18% 11.05% 10.94% 2 Tier I 15,627 15,481 14,611 10.81% 12.00% 9.98% 9.86% 3 Tier II 3,985 4,007 4,041 10.00% 4 Total (Tier I + Tier II) 19,612 19,488 1
Slide 18: Total advances and credit risk RWA
` in Crores Credit Risk RWA to Total Advances Credit RWA Advances (0.89)% Y-o-Y 76.40% 1,64,207 1,13,764 1,12,754 10.27% Y-o-Y Gr 1,48,911 68.67% Sep-18 Sep-19 Sep-2018 Sep-2019 Sep-2018 Sep-2019 Risk Weight factor for Credit Risk i.e. RWA for Credit Risk to Total Advances. 17
Slide 19: NBFC exposure and external ratings
% Outstanding as on 30th Sep 2019 6% 16% AAA Others, 10% 11% 9.81% HFC, Sep 19 19% AA 30.63% 11% A IFC, 26% Sep 18 BBB 20.94% 22% BB & below NBFC 23% 15% Unrated 19% ICC, 38.62% 21% Outstanding Sep-19 Sep-18 External Number of Rating as on % Q2 Q2 Rating Grade Borrowers 30.09.2019 AAA 16% 11% AAA 20
Slide 20: Advances by interest rate benchmark linkage
100% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2.16% 0.58% 0.50% 0.47% 0.45% 0.45% 0.42% 0.35% 0.33% 0.32% 0.31% 0.30% 8.15% 7.84% 90% 9.29% 16.96% 22.94% 20.68% 25.27% 80% 26.61% 32.10% 37.32% 70% 42.82% 60% 50% 66.52% 68.01% 72.15% 40% 60.89% 56.79% 59.76% 52.46% 30% 44.31% 37.14
Slide 21: Retail, agriculture and MSME advances
` in Crores Variation Sector Sep 19 Jun 19 Sep 18 Q2<>Q1 Y-o-Y RAM as %age to Total Retail 33,222 34,970 28,012 (5.00%) 18.60% Advances 51.87% Agriculture 19,047 19,499 19,735 (2.32%) -3.49% (excl. RIDF) 51.42% MSME 32,904 30,849 28,818 6.66% 14.18% Total RAM 85,173 85,318 76,565 (0.17%) 11.24% %age
Slide 22: Retail credit portfolio
` in Crores Retail Credit as % of Total Advances Housing Loan Vehicle Loan 21,078 +142 BPS 19.85% 17.29% 1960 Y-o-Y Y-o-Y Gr Y-o-Y Gr 17,587 20.23% 1671 18.81% Sep-18 Sep-19 Sep18 Sep19 Sep-18 Sep-19 Personal Loan Other Mortgage Loan Sep-18 Sep-19 % age NPA 22.68% 1,298 49.70% 3.10% 1,058 Y-o-Y Gr 5
Slide 23: Industry-wise exposure
` in Crores Industry Segment FB O/s Sep-19 % age to total % age to total Q2 Industry Credit Iron & Steel 6,368 16.09% 3.88% Textile 6,590 16.65% 4.01% Food Processing 6,035 15.25% 3.68% All Engg. 2,767 6.99% 1.69% Vehicles, Vehicle Parts & Transport Equipment 1,344 3.40% 0.82% Constructions 1,493 3.
Slide 24: Power sector exposure
Power Sector ` in Crores Fund Based Segment Exposure 9001 9422 Outstanding 6595 Total Infrastructure 23,946 14,541 2886 3023 2963 Out of which: - Power 9,548 6,595 - Transport 7,859 5,351 Mar-19 Jun-19 Sep-19 - Communication 2,145 658 Outstanding NPA Details of Power Sector Particular Generation Tra
Slide 25: Commercial real estate exposure
` in Crores 2% Parameter Balance Balance O/s O/s A& Above 39% Construction 1,880 705 1,730 BBB 59% LRD 2,785 723 BB & Below Others 92 762 Unrated Total 4,757 LRD Construction Others External Rating Risk Grade Balance O/s Parameter Balance O/s 17% A & Above 1,730 Standard 3,601 6% SMA 319 BBB 762 Sta
Slide 26: Investment portfolio
` in Crores Sep 19 Jun 19 Sep 18 Q2 Q1 Q2 Category HTM AFS HFT Total HTM AFS HFT Total HTM AFS HFT Total SLR 40,714 13,894 - 54,608 43,863 15,195 - 59,058 37,014 22,483 25 59522 NSLR 10,505 13,234 548 24,288 10,505 10,032 3 20,540 3,840 12,945 99 16883 (Out of Which (10,257) - - (10,257) (10,257) -
Slide 27: Slippages, credit cost and RWA
% Fresh Slippages to STD Adv 4.03% 1.18% 2.69% 0.99% 0.97% 2.14% 1,491 1,451 1,388 Sept 18 Mar-19 Sep-19 Credit Cost Sep-18 Mar-19 Sep-19 75.00% 76.4% 70.2% 68.6% 70.32% 64.62% 62.4% 58.1% 57.5% Sep-18 Mar-19 Sep-19 Sept-18 Mar-19 Sept-19 BBB & Above rated exposure RWA to Total Assets Credit RWA to
Slide 28: Provision coverage ratio
74.99% 75.84% 76.32% 77.13% PCR 65.31% 59.05% 56.53% 56.28% 55.91% 46.27% Tangible PCR Sep 18 Dec 18 Mar 19 Jun 19 Sep 19 PCR % (Major Industry) 93.8% 99.2% 86.6% 81.3% 82.5% 78.2% 78.6% 67.3% 65.2% 59.7% Infra Other Constructio Textile Automoble Infra Power Overall Iron & Steel Telcom Processing En
Slide 29: Gross and net NPA ratios
Gross NPA as a % of Gross Advances 17.24% 15.82% 12.66% 12.56% 12.53% Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Net NPA as a % of Net Advances 10.07% 7.15% 5.93% 5.91% 5.94% Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 28
Slide 30: Sector-wise NPA additions
` in Crores Sector Sep-19 % of Wise Q2 Total 1491 NPA 1451 1388 Addition Retail 131 9.44% 954 809 845 Agri 110 7.92% MSME 302 21.76% 324 333 302 Others 845 60.88% 245 73 139 65 131 110 Total 1,388 100% Sep18 Mar19 Sep19 Retail Agri MSME Others Total Textile Iron & Steel Manufacturing Wholesale distr
Slide 31: Cash recovery and upgradation
` in Crores Total Cash Recovery + Upgradation 1827 1491 1267 869 825 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Recovery in TWO/ RI 565 362 258 223 227 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 30
Slide 32: NPA movement
` in Crores Sep 19 Jun 19 Sep 18 Sep 19 Sep 18 Sn Particulars Q2 Q1 Q2 H1 H1 1 Opening Gross NPAs 21,369 21,717 26,141 21,717 26,134 2 Recovery in Ledger Balance 534 561 1,017 1,095 2,328 3 Up gradation 64 85 112 149 426 4 Write Off 1,577 1,115 790 2,692 1,988 5 Total Reduction (2+3+4) 2,175 1,761 1
Slide 33: Fresh slippages, provisions and NPA trend
` in Crores 17.24% 15.82% 12.66% 12.56% 12.53% Fresh Slippages 10.07% NPA Provision 7.15% GNPA 5.93% 5.91% 5.94% NNPA 1451 1293 4082 1491 1413 1388 1050 832 815 865 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 32
Slide 34: Sector-wise NPA
` in Crores As on 30.09.2019 As on 30.06.2019 As on 30.09.2018 Sector/ % of % of % of Industries % of % of % of NPA NPA to NPA to NPA to O/s NPA O/s NPA NPA to O/s NPA NPA to to O/s Gross Gross Gross O/s O/s NPA NPA NPA Retail 33,222 525 1.58% 2.55% 34,970 465 1.33% 2.17% 28,012 482 1.72% 1.88% Agri
Slide 35: Industry-wise NPA and provision coverage
` in Crores As on 30.09.2019 As on 30.06.2019 As on 30.09.2018 % of Provisi % of Provisi % of Provisio Sector/ % of % of NPA to on NPA to on % of NPA to n Industries O/s NPA NPA coverag O/s NPA NPA to Covera O/s NPA NPA to Gross e for Coverag to O/s O/s Gross ge for O/s Gross NPA NPA NPA NPA NPA e f
Slide 36: Gross NPA and accounts referred to NCLT
` in Crores Gross NPA Non TWO Accounts referred to NCLT TWO Accounts referred to NCLT 25673 24353 21717 21369 20582 9354 8676 8560 8530 8074 7655 7498 7400 5394 3756 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 35
Slide 37: NCLT accounts status
` in Crores SN Particulars Number Amount Accounts referred to NCLT (including already resolved 1 through NCLT as well as accounts yet to be admitted) upto 249 20,321 30.09.2019 Admitted 171 13,078 Accounts referred to NCLT 2 Yet to be admitted 37 2,951 as on 30.09.19 Total 208 16,029 3 Cases resolve
Slide 38: Accounts referred under IBC
` in Crores Cases filed RBI Cases RBI 2nd by other Grand Parameters 1st Total filed by List Banks/ Total List our Bank Others Number of accounts referred under IBC 9 16 25 128 96 249 No of Cases where Resolution Plan has been approved through NCLT and 3 0 3 10 0 13 accounts exited from NCLT No of Ca
Slide 39: Restructured portfolio
` in Crores Sep 19 Jun 19 Mar 19 Dec 18 Sep 18 S.No Particulars Q2 Q1 Q4 Q3 Q2 1 Standard Restructured Portfolio 617 533 415 321 358 Quantum of Standard Restructured Assets where 2 295 258 130 93 139 repayment has not commenced 3 Quantum of SMA-II in Restructured Accounts 260 86 31 159 55 4 NPA in R
Slide 40: Priority sector lending
` in Crores Sep 19 Mar 19 Sep 18 Variation % Sn Parameters Q2 Q4 Q2 Q2<>Q4 Y-o-Y ANBC 1,58,214 1,64,444 1,67,815 -3.79% -5.72% 1 Priority Sector 67,109 65,693 61,351 2.16% 9.39% PSLC 0 9,000 5,000 -100.00% -100.00% Total Priority sector 67,109 74,693 66,351 -10.15% 1.14% % of ANBC 42.42% 40.32% 39.5
Slide 41: Financial inclusion: PMJDY, insurance schemes, PMMY
PMJDY (As on 30th Sep, 2019) 1 Number of Accounts opened since 16.08.14 49.80 Lakh 2 Number of RuPay cards issued 40.89 Lakh 3 Deposits in Accounts 423358.00 Lakh PMSBY & PMJJBY No. of Enrolments (In Lakh) Total Enrolments Scheme (In Lakh) URBAN RURAL Pradhan Mantri Suraksha Bima Yojana (PMSBY) 28.4
Slide 42: Human resources, shareholding and delivery channels
Banks/FIs/In Mutual surance. cos., Funds/ UTI Others, Human Resources FPIs/NRIs, 3.88% & Trusts, 4.50% 2.27% 1.77% 21716 21493 Shareholding pattern Govt.of India, 87.58% 13780 13618 Delivery Channels Total Branches - 2371 Total ATMs 2625 5754 5706 Metro 560 584 569 713 2182 2169 Urban 651 Semi- Jun-
Slide 43: Digital adoption
Digital Adoption Pie Chart for customer induced transactions for quarter ended Sep 19 DB % Branch % ATM/BNA 80 73 75.79 78.33 70 63.05 67.27 68.91 Internet Banking + 60 IMPS 50 21.67 23.46 36.95 PoS ATM+ eComm 40 32.73 31.09 30 27 24.21 21.67 10.83 6.79 UPI + Mob Banking 20 10 21.61 15.64 AEPS+PINPO
Slide 44: Forward-looking statements
Certain statements in these slides are forward looking statements. These statements are based on Management's current expectations and are subject to uncertainty and changes in circumstances. Actual outcomes may differ materially from those included in these statements due to a variety of factors. 4
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