Indian Overseas Bank · NSE:IOB
Indian Overseas Bank — Q2 FY2015-16 Earnings Presentation
38 slides from Indian Overseas Bank's earnings presentation, September 2015
Slide 1: Presentation to Analysts September 2015
Good People to Grow With Touching Hearts Spreading Smiles since 1937 Presentation to Analysts September 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 17-20 Consolidated Change in Shareholding Pattern 6 NPA Details 21-25 Foreign Branches 7 Profitability 26-28 Joint Ventures 8 Profitability - Details of Income 29-31 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 30.09.2015
Consolidated Change in Shareholding Pattern as on 30.09.2015 DIVIDEND DECLARED AND PAID CATEGORY NO. OF TOTAL % TO EQUITY HOLDERS SHARES YEAR Interim Final Dividend Dividen Promoter 1 911710848 73.80 d Resident 245608 103239823 8.36 2000-01 10% FI 22 175753753 14.23 2001-02 12% 2002-03 16% Insurance
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: 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 Indi
Slide 9: Highlights-30.09.2015
Highlights-30.09.2015 Business touched INR 4,09,542 Crores Deposits stood at INR 2,33,026 Crores CASA stood at 26.14% Advances stood at INR1,76,516 Crores Operating Profit for Q2 15-16 is INR 990 Crores Net Loss for Q2 15-16 stands at INR 551 Crores Provision Coverage Ratio stood at 49.98 % 9
Slide 10: IT Initiatives
IT INITIATIVES CORE BANKING SOLUTION: The latest Finacle version 10.2.17 is being implemented by the Bank. Under the accelerated rollout plan the original schedule of 20 months has been reduced to 9.50 months. Accordingly certain steps were taken both by the Bank as well as the System Integrator
Slide 11: Major Business Parameters
Major Business Parameters Quarter ending INR Crs Key Performance indicators Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Business Mix 420739 411355 425090 407027 409542 Deposits 239224 232823 246049 232064 233026 Advances (Gross) 181515 178532 179041 174963 176516 Operating Profit 729 726 1180 556 990 Net Pro
Slide 12: Deposits & Advances
Deposits & Advances INR Crs Particulars 30.09.2015 30.09.2014 31.03.2015 DEPOSITS 2,33,026 2,39,224 2,46,049 Current 12,080 12,289 14,641 Savings 48,844 44,553 47,101 Term Deposit 1,72,102 1,82,382 1,84,307 CASA 60,924 56,842 61,742 CASA RATIO 26.14 23.76 25.09 ADVANCES 1,76,516 1,81,515 1,79,041 BU
Slide 13: Key Sectors (Domestic Credits)
Key Sectors (Domestic Credits) INR Crs Sector Sep 14 Mar 15 Sep 15 Agriculture 27,576 29,236 27,864 SME 24,018 26,161 28,416 of Which Micro 11,101 11,958 11,884 Retail Credit 17,520 17,531 20,512 13
Slide 14: Retail Credit (Breakup)
Retail Credit (Breakup) INR Crs Sector Sep 14 Mar 15 Sep 15 Retail Credit 17,520 17,531 20,512 of Which - Housing Loans 6,524 6,821 7,380 - Misc. CC 1,369 1,433 1,621 - Pushpaka - Vehicle Loan 1,229 1,337 1,437 - Educational Loan 3,823 3,958 4,365 - Others 1,184 1,308 1,393 - Jewel Loan to Others 3,
Slide 15: Advances to Sensitive Sectors - Domestic
Advances to Sensitive Sectors - Domestic (FUND + NON FUND) INR Crs Sector Sep 14 Mar 15 Sep 15 CAPITAL MARKET 684 533 586 REAL ESTATE 22,382 23,361 23,814 of Which HOUSING LOAN* 8,977 9,449 10,225 COMMERCIAL REAL ESTATE 8,752 8,348 7,564 OTHERS (DIRECT & INDIRECT) 4,653 5,564 6,025 * Includes Non-Pr
Slide 16: Overseas Advances - Breakup
Overseas Advances - Breakup INR Crs Sector Sep 14 Mar 15 Sep 15 Trade 7,412 5,568 5,569 Manufacturing 7,204 6,639 5,437 Real Estate 205 265 265 Buyers Credit 2,010 1,444 4,421 Others 1,527 1,528 1,979 Total 18,358 15,444 17,671 16
Slide 17: Restructured Accounts Outstanding Position As On 30.09.2015
Restructured Accounts Outstanding Position As On 30.09.2015 INR Crs 31.03.2015 31.03.2015 31.03.2015 30.09.2015 30.09.2015 30.09.2015 Sector Accounts Amount % Accounts Amount % Chemical & Pharma 7 343.23 1.72 8 395.95 1.82 Sugar 4 189.34 0.95 4 178.53 0.82 Textile 13 740.43 3.71 15 750.20 3.44 Iron
Slide 18: Restructured Accounts Outstanding Position As On 30.09.2015 contd
INR Crs Restructured Accounts Outstanding Position As On 30.09.2015 .. contd 31.03.2015 31.03.2015 31.03.2015 30.09.2015 30.09.2015 30.09.2015 Sector Accounts Amount % Accounts Amount % Sub Total 135 13108.13 65.74 136 12920.60 59.25 SME 166 966.08 4.85 147 790.66 3.62 Infrastructure 32 5265.91 26.4
Slide 19: 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 Total Accounts (INR Crs) % to Total (31.03.2015) (31.03.2015) (30.09.2015) (30.09.2015) Standard Assets 260 16075 81 213 15722 72 Sub-Standard Assets 79 185
Slide 20: Restructured Accounts
RESTRUCTURED ACCOUNTS INR Cr (INCLUDES ALL F.B. FACILITIES OF THE BORROWER) Domestic Foreign Global > 1 crore < 1 crore Total As on 31.03.2015 O/S 19890.75 47.19 19937.93 545.61 20483.56 Additions during Q1 & 598.63 0 598.63 0 598.63 Q2 of 2015-16 Slippages during Q1 & 2077.00 8 2085.00 0 2085.00 Q2
Slide 21: NPA Sequential Movement
NPA SEQUENTIAL MOVEMENT INR Crs Particulars Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 OPENING GROSS NPA 10351 13334 14501 14922 16451 ADD Slippages 4524 2269 2575 2489 4761 LESS Cash Recovery 337 360 595 193 403 Upgradation 464 251 569 224 689 Write Off 292 491 915 321 705 Sale to ARC 448 0 74 221 25 Total
Slide 22: Sector Wise Break Up of NPAs
Sector Wise Break Up of NPAs as of 30.09.2015 (Domestic) INR Cr NPA as of % to Total Category 30.09.2015 Domestic NPA Agriculture 1798 10.22 Industry 11486 65.29 Services 3413 19.40 Personal 895 5.09 Total 17593 100 of Which Commercial Real Estate 407 22
Slide 23: NPAs – Industry Wise - Domestic
NPAs – Industry Wise - Domestic INR Cr. % of NPA to % to the NPA as of Outstanding as Industry the respective total Domestic 30.09.2015 of 30.09.2015 outstanding NPA Iron and Steel 544.54 11036.25 4.93 3.10 Cotton Textiles/Other Textiles 1705.28 7097.06 24.03 9.69 Other Metal & Metal Products 1249.8
Slide 24: Sectoral Slippages during the quarter ended 30.09.2015
Sectoral Slippages during the quarter ended 30.09.2015 INR Cr. Category Amount Services (Other than Commercial Real Estate) 925.19 Agriculture 338.41 Personal 248.75 Commercial Real Estate 112.73 Sub Total 1625.08 Industry Breakup Rubber & Rubber Products 27.32 All Engineering / All Other Industries
Slide 25: Overseas NPAs
Overseas NPAs INR Crs Sector Sep 14 Mar 15 Sep 15 Trade 1,098.14 1,076.91 952.07 Manufacturing 496.21 476.22 573.25 Real Estate 65.50 69.93 90.15 Others 165.79 145.96 214.87 Total 1,825.64 1,769.02 1,830.34 25
Slide 26: Profit - Summary
PROFIT - SUMMARY INR Crs Quarter Ending Particulars Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Interest Earned 5,962 6,059 5,909 6,137 5,996 Interest Expended 4,618 4,702 4,653 4,808 4,598 Net Interest Income 1,344 1,357 1,256 1,329 1,398 Non Interest Income 478 588 794 535 774 Total Operating Income 1,822
Slide 27: Profitability - Q2
PROFITABILITY - Q2 INR Crs Particulars Q2 14-15 Q2 15-16 Variance % TOTAL INCOME 6440 6770 5.12 Interest Earned 5962 5996 0.57 Other Income 478 774 61.92 TOTAL EXPENDITURE 5711 5780 1.21 (Excl. Provisions and Contingencies) Interest Expended 4618 4598 (0.43) Operating Expenses 1093 1182 8.14 1) Paym
Slide 28: Profit – Geographical Distribution
PROFIT – Geographical Distribution – Q1 INR Crs Particulars Q2 14-15 Q2 15-16 Variance % OPERATING PROFIT Global 729.00 990.00 35.80 Domestic 613.00 898.00 46.49 Overseas 116.00 92.00 -ve PROVISIONS Global 975.00 1541.00 58.05 Domestic 751.00 1466.00 95.21 Overseas 224.00 75.00 -ve NET PROFIT/LOSS G
Slide 29: Profit - Net Interest Income
PROFIT - NET INTEREST INCOME Quarter Ending INR Crs Particulars Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 TOTAL INTEREST INCOME 5,962 6,059 5,910 6,137 5,996 of which Int Income from Advances 4,504 4,533 4,345 4,388 4,285 Int Income from Investments 1,324 1,398 1,457 1,641 1,619 Other Interest Income 134 1
Slide 30: Profit - Net Interest Income
PROFIT - NET INTEREST INCOME INR Crs Particulars Q2 14-15 Q2 15-16 Variance % TOTAL INTEREST INCOME 5962.00 5996.00 0.57 of which Int Income from Advances 4504.00 4285.00 (-ve) Int Income from Investments 1324.00 1619.00 22.28 Other Interest Income 134.00 92.00 (-ve) TOTAL INTEREST EXPENDED 4618.00
Slide 31: Non Interest Income (Quarterly Comparison)
Non Interest Income (Quarterly Comparison) INR Crs Quarter Ending Particulars Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Total Non Interest Income 478 588 794 535 774 of which Exchange / Commission 243 228 295 255 278 Profit on Sale of Investments 46 126 274 80 202 Profit on Revaln. Of Investments 0 0 0 -2
Slide 32: Net Profit (Quarterly Comparison)
NET PROFIT (Quarterly Comparison) INR Crs Quarter Ending Particulars Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 OPERATING PROFIT 729 726 1180 556 990 Total Provision 975 1242 1145 542 1541 of Which NPA 845 1157 1003 975 1466 Provision for Unhedged FC Exposure -14 4 0 0 2 Standard Advances -89 -82 99 17 -27
Slide 33: Cost & Yield Ratios (Quarterly Comparison)
Cost & Yield Ratios (Quarterly Comparison) Particulars Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Avg. Cost of Deposits (%) 7.69 7.60 7.50 7.45 7.26 Avg. Yield on Advances (%) 9.98 9.97 9.60 9.76 9.52 Avg. Yield on Investments (%) 7.30 7.24 7.04 7.16 7.27 Avg. Cost of Funds (%) 7.59 7.51 7.40 7.36 7.17 Avg.
Slide 34: Investments - Domestic
INVESTMENTS - Domestic INR Crs 31.03.2015 30.09.2015 AFS HTM HFT TOTAL AFS HTM HFT TOTAL SLR Investments 12127.68 53436.39 301.05 65865.12 18905.71 50776.09 35.56 69717.35 Of which Government. Securities 12127.66 53433.28 301.05 65861.99 18905.69 50772.98 35.56 69714.22 Other Approved 0.020 3.11 0 3
Slide 35: Investments – Foreign 30.09.2015
INVESTMENTS – Foreign -30.09.2015 INR Crs Book Value Total Type of Investment (Gross) Provision G - Sec 2,599.05 0.27 Bonds - Others 9.29 - MTN,FCCB 911.75 60.90 Shares 0.09 - Joint Venture - Malaysia 199.58 - Total 3,719.76 61.17 35
Slide 36: Capital Adequacy
CAPITAL ADEQUACY INR Crs Particulars Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Tier I Capital BASEL III 13,911 13,916 14,185 14,194 13,623 Tier II Capital BASEL III 5,709 5,596 5,460 5,417 5,165 Total Capital BASEL III 19,619 19,512 19,644 19,611 18,788 Common Equity Tier I 13,362 13,367 12,734 12,743 12,1
Slide 37: 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 Over D
Slide 38: Corporate Social Responsibility
Corporate Social Responsibility As per MoRD Directives, we have set up 13 RSETIs (Rural Self Employment Training Institute). We have also setup One RTC (Rural Training Centre) at Amaravathipur, jointly with Indian Bank and NABARD. During the current Financial Year 2015-2016, our RSETIs have cond
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