Indian Overseas Bank · NSE:IOB

Indian Overseas Bank — Q3 FY2019-20 Earnings Presentation

40 slides from Indian Overseas Bank's earnings presentation, Feb 10, 2020

  1. Slide 1: Performance Analysis Q3/9M 2019-20 Analyst Presentation

    इण्डियन ओवरसीज़ बैंक Indian Overseas Bank PERFORMANCE ANALYSIS Q3/9M 2019-20 Analyst Presentation 10.02.2020

  2. Slide 2: Core Strengths of the Bank

    CORE STRENGTHS OF THE BANK 83 Years of Banking Excellence Strong Presence: 3270 Branches, 3210-ATMs, 2910-BCs Robust Rural & Semi-Urban Branch Network Trust of 37 Million Active Customers Strong Digital Presence Dedicated & Skilled Workforce of 25152 numbers Performance Analysis Q3/9M 2019-20 Page 2

  3. Slide 3: Performance Highlights

    PERFORMANCE HIGHLIGHTS FINANCIAL PERFORMANCE BUSINESS HIGHLIGHTS NPA MANAGEMENT CAPITAL CONSERVATION DIGITAL INITIATIVES FINANCIAL INCLUSION Performance Analysis Q3/9M 2019-20

  4. Slide 4: Performance Highlights

    PERFORMANCE HIGHLIGHTS Performance Analysis Q3/9M 2019-20

  5. Slide 5: Major Performance Highlights

    MAJOR PERFORMANCE HIGHLIGHTS •Total Recovery including Technical written off stood higher at Rs.7085 crores as against Rs.6720 crores for Sept-19. NPA •Cash Recovery improved to Rs.872 crores as against Rs.552 crores in Sept-19 Management •GNPA brought down to 17.12% as against 20.00% in Sept-19. •N

  6. Slide 6: Major Performance Highlights

    MAJOR PERFORMANCE HIGHLIGHTS • Interest Income improved by 1.78% on Q-o-Q basis due to improved recovery performance. Earnings • Other income recorded a growth of 13.05% on Q-o-Q basis. • Interest paid on deposits reduced by 1.49% Y-o-Y basis and by 0.27% (Q-o-Q) basis due to improved Expenditure CA

  7. Slide 7: Key Metrics

    KEY METRICS Rs. in Crore GNPA 35787 Q3 19-20 Y-o-Y Q-o-Q 23734 Gross NPA 23734 -33.68 -17.23 Net NPA 7087 -60.60 -43.34 Quality Asset Provision Coverage 86.2 21.97 10.35 Q3 18-19 Q3 19-20 GNPA% 17.12 -6.64 -2.88 NNPA NNPA% 5.81 -7.75 -4.03 17988 7087 Q3 19-20 Y-o-Y Q-o-Q Retail Loan 31336 9.21 -0.02

  8. Slide 8: Financial Performance

    FINANCIAL PERFORMANCE Performance Analysis Q3/9M 2019-20

  9. Slide 9: Financial Performance

    FINANCIAL PERFORMANCE Rs. in Crore Quarter Ended 9 Months Ended Growth % Particulars 9MFY20 over Q3FY20 over Q3FY20 over Q3FY20 Q2FY20 Q3FY19 9MFY20 9MFY19 9MFY19 Q2FY20 Q3FY19 Interest Income 4352 4276 4542 12964 13075 -0.85 1.78 -4.19 Interest Expenses 3073 3072 3159 9193 9275 -0.88 0.05 -2.71 Net

  10. Slide 10: Total Income

    TOTAL INCOME Rs. in Crore Quarter Ended 9 Months Ended Growth % Particulars 9MFY20 over Q3FY20 over Q3FY20 over Q3FY20 Q2FY20 Q3FY19 9MFY20 9MFY19 9MFY19 Q2FY20 Q3FY19 Interest on Loans 2868 2840 2988 8665 8797 -1.50 0.98 -4.03 Interest on Investment 1346 1264 1262 3809 3707 2.77 6.47 6.68 Other Int

  11. Slide 11: Total Expenses

    TOTAL EXPENSES Rs. in Crore Quarter Ended 9 Months Ended Growth % Particulars 9MFY20 over Q3FY20 over Q3FY20 over Q3FY20 Q2FY20 Q3FY19 9MFY20 9MFY19 9MFY19 Q2FY20 Q3FY19 Interest on Deposits 2932 2940 2977 8776 8617 1.85 -0.27 -1.49 Interest on Borrowings 141 132 182 417 658 -36.63 7.02 -22.63 Other

  12. Slide 12: Provisions & Profit

    PROVISIONS & PROFIT Rs. in Crore Quarter Ended 9 Months Ended Growth % Particulars 9MFY20 over Q3FY20 over Q3FY20 over Q3FY20 Q2FY20 Q3FY19 9MFY20 9MFY19 9MFY19 Q2FY20 Q3FY19 Operating Profit 762 746 1466 2337 3902 -40.13 2.19 -48.00 Provisions 6838 3000 1812 11008 5655 94.65 127.95 277.33 of which

  13. Slide 13: Performance Ratios - Quarterly

    PERFORMANCE RATIOS- QUARTERLY Cost of Deposits Yield on Advances 5.43 7.31 7.13 7.22 5.41 6.95 6.96 5.40 5.37 5.37 Dec 18 Mar 19 June 19 Sept 19 Dec 19 Dec 18 Mar 19 June 19 Sept 19 Dec 19 Cost to Income Ratio 64.12 Net Interest Margin 61.79 2.31 57.72 52.78 2.16 2.01 1.94 42.05 1.86 Dec 18 Mar 19 J

  14. Slide 14: Business Performance

    BUSINESS PERFORMANCE Performance Analysis Q3/9M 2019-20

  15. Slide 15: Business Initiatives

    BUSINESS INITIATIVES The Year 2019-20 is declared as “Year of Resurgence” with specific plan to Revamping of Retail Marts have been exit PCA through focus on Recovery, undertaken with special focus on Big Low cost deposits & less capital ticket housing loan. consuming advances. MSME outreach program

  16. Slide 16: Business Performance - Global

    BUSINESS PERFORMANCE- GLOBAL Rs. in Crore Particulars Dec-18 Mar-19 Jun-19 Sept-19 Dec-19 Y-o-Y% Q-oQ% CASA 82081 85227 84145 84595 86530 5.42 2.29 Retail Term Deposits 103460 105285 104833 108112 108405 4.78 0.27 Bulk Deposits 30594 28284 28958 25728 22540 -26.32 -12.39 Overseas Term Deposits 4176

  17. Slide 17: Deposits Composition

    DEPOSITS COMPOSITION Rs. in Crore Global Share of Deposits DEC-19 DEC-18 SB SB 33% 31% TD TD 61% CD CD 63% 6% 6% CASA%-39.10% CASA%-37.26% Y-o-Y variation Parameters Dec-2019 Mar-2019 Dec-2018 Amount % Savings Bank 71962 70493 68205 3756 5.51 Current Account 13609 13901 13146 462 3.52 CASA 85570 843

  18. Slide 18: Risk Spread - Assets

    RISK SPREAD- ASSETS Rs. in Crore Domestic Share of Advances DEC-2019 DEC-2018 Corporate/ Retail Retail Corporate others 20% 24% /others 27% 34% Agri Agri 22% MSME 25% 24% MSME 24% Y-o-Y variation Parameters Dec-2019 Mar-2019 Dec-2018 Amount % Ret ail 31336 31588 28693 2643 9.21 Agri 33296 33353 3215

  19. Slide 19: Retail Performance

    RETAIL PERFORMANCE Rs. in Crore Gross RETAIL ADVANCES BREAKUP - Dec-19 Retail % Year Domestic Advance Share Adv 25.60% Mar'15 162837 18033 11.07% 46.43% 2.87% Mar'16 155428 22653 14.57% Mar'17 142651 23887 16.75% 9.88% 15.22% Mar ’18 138516 28183 20.40% Mar ’19 146001 31588 21.64% Home Education Aut

  20. Slide 20: Priority Sector Advances - Overview

    PRIORITY SECTOR ADVANCES - OVERVIEW Rs. in Crore 60.00% Priority sector % of 81000 51.33% 47.47% 48.27% 50.00% Financial Year Achievement achievement 71000 40.33% 2016-17 61000 40.00% (Avg of 4 Qtrs) 63984 40.33% 51000 30.00% 2017-18 41000 70040 75390 75202 (Avg of 4 Qtrs) 70040 47.47% 31000 63984 2

  21. Slide 21: Agriculture Advance Performance

    AGRICULTURE ADVANCE PERFORMANCE Rs. in Crore Oustanding Y-o-Y Growth 33340 33296 3000 10.00% 2520 2500 8.18% 8.00% 32151 2000 18636.55% 6.00% 30820 1382 1500 4.69% 1145 4.00% 3.56% 29438 1000 2.00% 500 -2.64% 0.00% 0 -500 2016-17 2017-18 2018-19 Dec'18 Dec'19 -2.00% 2016-17 2017-18 2018-19 Dec'18 De

  22. Slide 22: Agri Advances – Priority Sector

    AGRI ADVANCES – PRIORITY SECTOR Rs. in Crore 32000 31045 30427 22.00% 21.14% 30000 29851 28865 21.00% 28585 28043 20.23% 20.00% 28000 26561 26438 19.53% 19.00% 26000 18.18% 18.00% 17.00% 24000 16.00% 22000 15.00% 2016-17 2017-18 2018-19 2019-20 (Avg of 4 Qtrs) (Avg of 4 Qtrs) (Avg of 4 Qtrs) as on D

  23. Slide 23: MSME Performance

    MSME PERFORMANCE Rs. in Crore Share of MSME on Domestic Advances Gross MSME Year % Share 23.55% Domestic Advance 33500 24.00% 23.92% 33000 22.71% 22.62% 22.50% 23.00% Mar’18 138516 32615 23.55% 32500 21.43% 22.00% Mar‘19 146001 33164 22.71% 32000 31500 20.46% 21.00% Jun‘19 142987 32345 22.62% 19.81%

  24. Slide 24: Investments

    INVESTMENTS Rs. in Crore Global Investments 79697 79887 72248 70263 71495 69209 Mar-17 Mar-18 Dec-18 Mar-19 Sep-19 Dec-19 Parameters Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Domestic Investments 67289 65380 67031 76159 76221 SLR 52812 47858 49073 54642 53792 Non SLR 14477 17522 17958 21518 22429 Held to M

  25. Slide 25: NPA Management

    NPA MANAGEMENT Performance Analysis Q3/9M 2019-20

  26. Slide 26: NPA Management

    NPA MANAGEMENT Rs. in Crore Q3 Q4 Q1 Q2 Q3 Details 18-19 18-19 19-20 19-20 19-20 i) Opening Gross NPAs 37110 35787 33398 33262 28674 a. Cash Recoveries 750 635 483 552 872 b. Upgradation 197 446 431 291 298 c. Write-Offs 2294 2701 1171 5689 5554 d. Sale to ARCs 150 0 0 13 183 e. Other Reductions 86

  27. Slide 27: Movement of NPA

    MOVEMENT OF NPA NNPA% GNPA% 13.56 23.76 21.97 22.53 20.00 10.81 11.04 9.84 17.12 5.81 Q3 18-19 Q4 18-19 Q1 19-20 Q2 19-20 Q3 19-20 Q3 18-19 Q4 18-19 Q1 19-20 Q2 19-20 Q3 19-20 PROVISION COVERAGE RATIO 86.2 75.85 71.39 72.24 64.23 Q3 18 -19 Q4 18 -19 Q1 19 -20 Q2 19 -20 Q3 19-20 Performance Analysis

  28. Slide 28: Capital Adequacy

    CAPITAL ADEQUACY Performance Analysis Q3/9M 2019-20

  29. Slide 29: Capital Conservation

    CAPITAL CONSERVATION Rs. in Crore Dec-19 Particulars Dec-18 Mar-19 Jun-19 Sep-19 Pre Capital Post Capital Infusion Infusion Market Risk RWA 12538 11944 11320 11950 12938 12938 Operational Risk RWA 15779 15779 16642 16642 16642 16642 Credit Risk RWA 96770 94862 93196 91846 84890 86814 Total RWA (A) 1

  30. Slide 30: Movement of RWA & CRAR

    MOVEMENT OF RWA & CRAR 11.86% 10.21% 10.02% 8.86% 10.43% 5.53% Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 CRAR CRAR Post Infusion RWA to Advance Ratio Credit RWA to Advance Ratio 64.26% 64.07% 84.02% 83.06% 63.14% 82.56% 82.08% 62.41% 80.65% 61.23% Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Dec-18 Mar-19 Jun-19 Sep

  31. Slide 31: Digital Initiatives

    DIGITAL INITIATIVES Performance Analysis Q3/9M 2019-20

  32. Slide 32: Performance Analysis Q3/9M 2019-20

    Performance Analysis Q3/9M 2019-20

  33. Slide 33: Digital Initiatives

    DIGITAL INITIATIVES Performance Analysis Q3/9M 2019-20 Page 33

  34. Slide 34: Financial Inclusion

    FINANCIAL INCLUSION Performance Analysis Q3/9M 2019-20

  35. Slide 35: Financial Inclusion

    FINANCIAL INCLUSION NO OF PMJDY A/Cs PMJDY Account Balance 5051924 1265 1117 4849392 818 Amt in Crs 757 4387956 4261330 Mar-17 Mar-18 Mar-19 Dec-19 Mar-17 Mar-18 Mar-19 Dec-19 PMJDY Zero Balance A/Cs 1155960 Jan Suraksha & APY Enrolments Mar-17 Mar-18 Mar-19 Dec-19 1004976 1014385 PMJJBY 841608 8897

  36. Slide 36: Customer Touch Point

    CUSTOMER TOUCH POINT ATM NETWORK- DEC 2019 BRANCH NETWORK- DEC 2019 Rural, 676, Metro, 712, Metro, 728, Rural, 910, 22% 24% 22% 28% Urban, 669, Urban, 673, 21% Semi Urban, 22% 952, 32% Semi Urban, 963, 29% Details Mar-18 Mar-19 Jun-19 Sep-19 Dec-19 Branches 3332 3280 3274 3272 3270 ATM 3552 3450 301

  37. Slide 37: Global Foot Prints - Foreign Branches

    GLOBAL FOOT PRINTS- FOREIGN BRANCHES Overseas Branches Singapore HongKong Colombo Bangkok JV Subsidiary Malaysia Remittance Centre Singapore-Serangoon Road Joint Venture in Malaysia: Joint Venture with Bank of Baroda (40%) and Andhra Bank (25%) with IOB share of 35% Performance Analysis Q3/9M 2019-2

  38. Slide 38: Strategic Investments – Joint Venture

    STRATEGIC INVESTMENTS – JOINT VENTURE IOB entered into Non Life Insurance Business with Universal Sompo General Insurance (USGI) Company Limited with equity participation of 18% along with the other Banks and Institutions Shareholding Shareholding % Name of Entity Investment % 6.00% 12.81% 18.06% In

  39. Slide 39: Disclaimer

    DISCLAIMER  Except for the historical information contained herein, statements in this release which contain words or phrases such as “will”, “aim”, “will likely result”, “would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”, “plan”, “contemplate”, “seek to”, “fut

  40. Slide 40: Thank You

    Thank You visit us @ https://www.iob.in Performance Analysis Q3/9M 2019-20

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