Indian Overseas Bank · NSE:IOB
Indian Overseas Bank — Q3 FY2015-16 Earnings Presentation
38 slides from Indian Overseas Bank's earnings presentation, December 2015
Slide 1: Presentation to Analysts December 2015
Good People to Grow With Touching Hearts Spreading Smiles since 1937 Presentation to Analysts December 2015 (in INR)
Slide 2: Continuing Tradition of Quiet & Dignified Service to the Society
Continuing Tradition of Quiet & Dignified Service to the Society Good People to Grow With
Slide 3: Index
INVESTOR RELATIONS CELL INDEX Particulars Page No. Particulars Page No. Mile Stones 4-5 Restructured Accounts 19-20 Consolidated Change in Shareholding Pattern 6 NPA Details 24-26 Foreign Branches 7 Profitability 27-29 Joint Ventures 8 Profitability - Details of Income 30-32 Highlights 9 Net Profit
Slide 4: Milestones IOB Young at 78 Years
Milestones IOB Young at 78 Years 1937 Opening of Bank Branch simultaneously in India & Abroad 1938 Opening Branch in Kuala Lumpur 1941 Opening Branch in Singapore 1945 Opening Branch in Colombo 1955 Opening Branch in Hong Kong 1957 Bank established its own training centre 1960s Was a decade of inorg
Slide 5: Milestones IOB Young at 78 Years
Milestones - IOB Young at 78 Years 2006 Launched VISA card, Retail Sale of Gold and Non Life Joint Insurance Bank reached INR 1 lac crore mark in Total Business 2006-07 Bharat Overseas Bank Ltd. was merged with IOB 2007 First Off site ATM at Kamatchi Hospital, Chennai 2009 100% CBS 2011-12 No. of Br
Slide 6: Consolidated Change in Shareholding Pattern as on 31.12.2015
Consolidated Change in Shareholding Pattern as on 31.12.2015 DIVIDEND DECLARED AND PAID CATEGORY NO. OF TOTAL % TO EQUITY HOLDERS SHARES YEAR Interim Final Dividend Dividen Promoter 1 1397328445 81.19 d Resident 246171 109592516 6.37 2000-01 10% FI 22 175753753 10.21 2001-02 12% 2002-03 16% Insuranc
Slide 7: Global Footprints – Foreign Branches of the Bank
Global Footprints – Foreign Branches of the Bank Branches Representative JV Remittance Office Subsidiary Centres Singapore Guangzhou – China Malaysia Singapore - Hong Kong Main Vietnam Serangoon Road Hong Kong TST Dubai Singapore - Boon Lay Colombo Bambalapitiya Seoul Bangk
Slide 8: Non Strategic Investments - Joint Ventures
Strategic Investments - Joint Ventures IOB entered into Non Life Insurance Business with Universal Sompo General Insurance (USGI) Company Limited with equity participation of 19% along with the Following Banks and Institutions Joint venture Equity Contributors % INR Crs Allahabad Bank 30 105.00 In
Slide 9: Highlights-31.12.2015
Highlights-31.12.2015 Business stood at INR 4,10,019 Crores Deposits stood at INR 2,30,670 Crores CASA stood at 26.32% Advances stood at INR 1,79,349 Crores Operating Profit for Q3 is INR 625 Crores Net Loss for Q3 stood at INR 1,425 Crores Provision Coverage Ratio stood at 50.36 % 9
Slide 10: IT Initiatives
IT Initiatives IT Organization Structure: The Bank has a robust infrastructure architecture, resulting in perfect alignment of Business and IT aspirations. Three way Data centers have revolutionalised the BCP-DR readiness of the Bank. Core Banking Solution: The major change happening is the migr
Slide 11: IT Initiatives
IT Initiatives E-Corridors: Bank to open E-Corridors which will provide ATM, Self Pass-Book Printing Kiosks, Bulk Note Acceptor(BNA) and Internet-Banking Kiosks. This facilitates the customers to print their passbooks, deposit cash, withdraw cash and use the internet banking facility at one place.
Slide 12: Major Business Parameters
Major Business Parameters Quarter ending INR Crs Key performance indicators Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Business Mix 4,11,355 4,25,090 4,07,027 4,09,543 4,10,019 Deposits 2,32,823 2,46,049 2,32,064 2,33,026 2,30,670 Advances (Gross) 1,78,532 1,79,041 1,74,963 1,76,516 1,79,349 Operating Profi
Slide 13: Deposits & Advances
Deposits & Advances INR Crs Particulars 31.12.2015 31.12.2014 31.03.2015 DEPOSITS 2,30,670 2,32,823 2,46,049 Current 12,066 11,190 14,641 Savings 48,643 44,643 47,101 Term Deposit 1,69,961 1,76,990 1,84,307 CASA 60,709 55,833 61,742 CASA RATIO 26.32 23.98 25.09 ADVANCES 1,79,349 1,78,532 1,79,041 BU
Slide 14: Key Sectors (Domestic Credits)
Key Sectors (Domestic Credits) INR Crs Sector Dec 2014 Mar 2015 Dec 2015 1.Agriculture 27,825 29,236 26,903 2.SME 23,716 26,161 29,228 of which Micro 10,275 11,958 12,086 3.Retail Credit 17,492 17,531 18,495 1414
Slide 15: Retail Credit (Breakup)
Retail Credit (Breakup) INR Crs Sector Dec 2014 Mar 2015 Dec-15 Retail Credit 17,492 17,531 18,495 Of which - Housing Loans 6,625 6,821 8,525 - Misc.CC 1,365 1,433 1,062 - Pushpaka 1,279 1,337 1,504 - Educational Loan 3,920 3,958 4,320 - Others 1,197 1,308 837 Jewl Loan to Others 3,106 2,675 2,248 J
Slide 16: Advances to Sensitive Sectors - Domestic
Advances to Sensitive Sectors - Domestic (FUND + NON FUND) INR Crs Sector Dec 2014 Mar 2015 Dec-15 CAPITAL MARKET 535 533 1,440 REAL ESTATE 23,263 23,361 24,684 of which HOUSING LOAN * 9,129 9,449 10,813 COMMERCIAL REAL ESTATE 8,896 8,348 7,475 OTHERS (DIRECT & INDIRECT) 5,238 5,564 6,396 * Includes
Slide 17: Overseas Advances - Breakup
Overseas Advances - Breakup INR Crs Dec 2014 Mar 2015 Dec-15 Trade 6,710 5,568 5,637 Manufacturing 6,568 6,639 5,190 Real Estate 278 265 252 Buyers Credit 1,890 1,444 5,721 Others 1,068 1,528 2,034 Total 16,514 15,444 18,834 17
Slide 18: Restructured Accounts Outstanding Position As On 31.12.2015
Restructured Accounts Outstanding Position As On 31.12.2015 INR Crs Sector 31.03.2015 31.03.2015 31.03.2015 31.12.2015 31.12.2015 31.12.2015 Accounts Amount % Accounts Amount % Chemical & Pharma 7 343.23 1.72 7 346.00 1.68 Sugar 4 189.34 0.95 4 177.71 0.86 Textile 13 740.43 3.71 14 726.46 3.52 Iron
Slide 19: Restructured Accounts Outstanding Position (contd)
INR Crs Restructured Accounts Outstanding Position As On 31.12.2015 .. contd Sector 31.03.2015 31.03.2015 31.03.2015 31.12.2015 31.12.2015 31.12.2015 Accounts Amount % Accounts Amount % Sub Total 135 13,108.13 65.74 143 16,894.61 81.90 SME 166 966.08 4.85 140 760.17 3.69 Micro Finance 0 0 0.00 3 62.
Slide 20: Asset Classification wise details of Restructured Accounts
Asset Classification wise details of Restructured Accounts Outstanding No. of Amount No. of Amount Asset Classification Accounts (INR Crs) % to Accounts (INR Crs) % to (31.03.2015) (31.03.2015) Total (31.12.2015) (31.12.2015) Total Standard Assets 260 16075 81 201 13424 65 Sub-Standard 79 1853 9 83
Slide 21: Restructured Accounts
RESTRUCTURED ACCOUNTS INR Cr (INCLUDES ALL F.B. FACILITIES OF THE BORROWER) Domestic Foreign Global > 1 crore < 1 crore Total As on 30.09.2015 O/S 21789.26 25.33 21814.59 559.23 22373.82 Additions during Q3 of 0 0 0 0 0 2015-16 Less: Repayment in 1191.24 -4.11 1187.13 -3.03 1184.09 Restructured A/Cs
Slide 22: NPA Sequential Movement
NPA SEQUENTIAL MOVEMENT INR Crs Dec 2014 Mar 2015 Jun 2015 Sep 2015 Dec-15 OPENING GROSS NPA 13334 1,4501 14,922 16,451 19,424 ADD Slippages 2269 2,575 2,489 4,761 4,393 LESS Cash Recovery 360 595 193 403 379 Upgradation 251 569 224 689 421 Write Off 491 915 321 705 332 Sale to ARC 0 74 221 25 13 To
Slide 23: Sector Wise Break Up of NPAs (Domestic)
Sector Wise Break Up of NPAs as of 31.12.2015 (Domestic) INR Crs Category NPA as of % to total Domestic 31.12.2015 NPA Agriculture 2034.91 10.11 Industry 13420.28 66.68 Services 3970.34 19.73 Personal 699.82 3.48 Total 20125.35 100 Of which Commercial Real Estate 348.82 1.73 23
Slide 24: NPAs-Industry Wise-Domestic
NPAs-Industry Wise-Domestic INR Crs Sl. Industry NPA as of Outstanding % of NPA to the % to the total No 31.12.2015 under each respective Domestic NPA category as of outstanding 31.12.2015 1 Cotton Textiles/Other Textiles 1551.73 4146.33 37.42 7.71 2 Iron and Steel 2993 11246.42 26.61 14.87 3 Infras
Slide 25: Sectoral Slippages During The Quarter Ended 31.12.2015
Sectoral Slippages During The Quarter Ended 31.12.2015 Category Amount (In Crs) Agriculture 274.31 Services ( Other than Commercial Real Estate) 385.14 Personal 252.94 Commercial Real Estate 52.43 Sub Total 964.82 Industry Other Metals 48.19 Gem and Jewellery 19.50 Food Processing(Other than sugar,V
Slide 26: Overseas NPAs
Overseas NPAs INR Crs Dec 2015 Mar 2015 Dec 2014 Trade 1,182.25 1,076.91 1,088.54 Manufacturing 585.10 476.22 496.02 Real Estate 75.78 69.93 70.74 Others 703.91 145.96 164.36 TOTAL 2,547.04 1,769.02 1,819.66 26
Slide 27: Profit - Summary
PROFIT - SUMMARY INR Crs Quarter Ending Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Interest Earned 6,059 5,909 6,137 5,996 5,912 Interest Expended 4,702 4,653 4,808 4,598 4,565 Net Interest Income 1,357 1,256 1,329 1,398 1,347 Non Interest Income 588 794 535 774 534 Total Operating Income 1,945 2,050 1,864
Slide 28: Profitability - Q3
PROFITABILITY - Q3 INR Crs Particulars Q3 15-16 Q3 14-15 TOTAL INCOME 6,446 6,647 Interest Earned 5,912 6,059 Other Income 534 588 TOTAL EXPENDITURE 5,821 5,921 (excl. provisions and contingencies) Interest Expended 4,565 4,702 Operating Expenses 1,256 1,219 i)Payments to and provisions for employee
Slide 29: Profit – Geographical Distribution – Q3
PROFIT – Geographical Distribution – Q3 INR Crs Particulars Q3 15-16 Q3 14-15 OPERATING PROFIT Global 625 726 Domestic 577 633 Overseas 48 93 PROVISIONS Global 2,050 1,242 Domestic 1,858 1,152 Overseas 192 90 NET PROFIT Global (1,425) (516) Domestic (1,281) (519) Overseas (144) 3 2929
Slide 30: Profit - Net Interest Income
PROFIT - NET INTEREST INCOME Quarter Ending INR Crs Particulars Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Total Interest Income 6,059 5,910 6,137 5,996 5,912 Of which Int Income from Advances 4,533 4,345 4,338 4,285 4,198 Int. Income from 1,398 1,457 1,641 1,619 1,629 Investments Other Interest Income 128
Slide 31: Profit - Net Interest Income
PROFIT - NET INTEREST INCOME INR Crs Particulars Q3 14-15 Q3 15-16 Total Interest Income 6,059 5,912 Of which Int Income from Advances 4,533 4,198 Int. Income from Investments 1,398 1,629 Other Interest Income 128 85 Total Interest Expended 4,702 4,565 Of which Int. Expended on Deposits 4,410 3,983
Slide 32: Non Interest Income (Quarterly Comparison)
Non Interest Income (Quarterly Comparison) INR Crs Quarter Ending Particulars Dec 14 Mar 15 Jun 15 Sep 15 15-Dec Total Non Interest Income 588 794 535 774 534 Of which Exchange / Commission 228 295 255 278 246 Profit on Sale of Investments 126 274 80 202 54 Profit on Revaluation Of 0 0 -2 0 0 Invest
Slide 33: Net Profit (Quarterly Comparison)
NET PROFIT (Quarterly Comparison) INR Crs Quarter Ending Particulars Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 OPERATING PROFIT 726 1180 556 990 625 Total Provision 1242 1145 542 1541 2,050 Of which NPA 1157 1003 975 1466 1,820 Provision for un hedged Foreign 4 0 0 2 0 Currency Exposure Standard Advances -
Slide 34: Cost & Yield Ratios (Quarterly Comparison)
Cost & Yield Ratios (Quarterly Comparison) Particulars Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Avg. Cost of Deposits (%) 7.60 7.50 7.45 7.26 7.10 Avg. Yield on Advances (%) 9.97 9.60 9.76 9.52 9.25 Avg. Yield on Investments (%) 7.24 7.04 7.16 7.27 7.26 Avg. Cost of Funds (%) 7.51 7.40 7.36 7.17 6.99 Avg.
Slide 35: Investments - Domestic
INVESTMENTS - Domestic INR Crs 31.03.2015 31.12.2015 AFS HTM HFT TOTAL AFS HTM HFT TOTAL SLR Investments 12,127.68 53,436.39 301.05 65,865.12 26,858.99 50,211.26 99.96 77,170.21 Of which Government. 12,127.66 53,433.28 301.05 65,861.99 26,858.97 50,208.15 99.96 77,167.08 Securities Other Approved 0.
Slide 36: Investments – Foreign 31.12.2015
INVESTMENTS – Foreign -31.12.2015 INR Crs Book Value Total Type of Investment (Gross) Provision G - Sec 2,629.55 0.12 Bonds - Others 0.00 0.00 MTN,FCCB 976.18 62.95 Shares 0.09 0.00 Joint Venture - Malaysia 199.58 0.00 Total 3,805.40 63.07 3636
Slide 37: Capital Adequacy
CAPITAL ADEQUACY INR Crs Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Tier I Capital BASEL II BASEL III 13,916 14,185 14,194 13,623 14,221 Tier II Capital BASEL II BASEL III 5,596 5,460 5,417 5,165 5,094 Total Capital BASEL II BASEL III 19,512 19,644 1,91,611 18,789 19,315 Common Equity Tier I 13,367 12,734 1
Slide 38: Financial Inclusion
Financial Inclusion Basic Savings Bank Deposit Accounts (BSBDA): As per the guidelines issued by Reserve Bank of India, our branches are opening BSBD Accounts to bring the excluded segment of population into banking fold. General Purpose Credit Cards (GCC), Kissan Credit Cards (KCC) and Temporary
Indian Overseas Bank — Q3 FY2015-16 Earnings Presentation on 6ix