Oriental Bank of Commerce — Q3 FY2020 Earnings Presentation
43 slides from Oriental Bank of Commerce's earnings presentation, Jan 23, 2020
Slide 1: Results presentation cover letter to stock exchanges
HO/MBD/2020 23.01.2020 Scrip Code: ORIENTBANK Scrip Code: 500315 The Executive Director, General Manager, National Stock Exchange of India Ltd., Dept. of Corporate Services, Exchange Plaza, 5'h Floor, Bandra Kurla Bombay Stock Exchange Limited, Complex, Bandra (E),Mumbai-400051 Phiroze Jeejeebhoy To
Slide 2: Head and corporate offices
ae - 3 Head office, Amritsar = Ll} Head office, Lahore || bedded 1 | Corporate Office, Gurugram <i a6 eBlil Bie Heactoffice, Harsha Pe |e E e e Hogg etn, Tyner Bhawan, Delhi
Slide 3: Net profit increased to Rs 202 Crores
Net profit increased to ` 202 Crores Q-o-Q increase of 60.32% from ` 126 Crores and Y-o-Y increase of 39.31% from ` 145 Crores. Operating profit increased to ` 1,213 Crores Q-o-Q increase of 3.15% from ` 1,176 Crores and Y-o-Y increase of 21.06% from ` 1,002 Crores. Cost to Income sequentially
Slide 4: Q3 FY key parameters and variance
` in Crores Variance Variance Q3- FY 20 (Y-o-Y) (Q-o-Q) Operating Profit 1,213 21.06% 3.15% Net Profit 202 39.31% 60.32% ROA (Annualised) 0.30% 7 bps 11 bps Gross NPA 12.64% (318) bps 11 bps Net NPA 5.98% (117) bps 4 bps Non Interest Income 986 74.20% 19.66%
Slide 5: Nine-month key parameters
` in Crores 9M- FY 20 9M- FY 19 Variance (9M-o-9M) Operating Profit 3,414 2,699 26.49% Net Profit 440 (146) +ve Net Interest Income 4,149 4,025 3.08% Non Interest Income 2,526 1,711 47.63% Non Interest Income/ Total Income 14.88% 11.54% 334 bps Cost to Income Ratio 48.85% 52.94% 409bps
Slide 6: Business and deposit parameters, CASA
` in Crores 71,255 Dec 19 Sep 19 Dec 18 Parameters Q3<>Q2 Y-o-Y Q3 Q2 Q3 Total Business 4,02,124 3,89,409 3,62,432 3.27% 10.95% 68,387 68,046 66,754 Advances 1,71,136 1,64,207 1,53,942 4.22% 11.17% 64,830 Deposits 2,30,988 2,25,202 2,08,490 2.57% 10.79% Current 14,931 14,211 12,716 5.07% 17.42% Savi
Slide 7: Income breakdown
` in Crores Variation Variation S Dec 19 Sep 19 Dec 18 Dec 19 Dec 18 Parameters Y-o-Y n Q3 Q2 Q3 Q3<>Q2 Y-o-Y 9M 9M 1 Interest on Advances/Bills 3,215 3,428 3,072 (6.21%) 4.65% 10,023 8,887 12.78% 2 Interest on Investments 1,318 1,380 1,342 (4.49%) (1.79%) 4,154 3,923 5.89% 3 Other Interest Income 1
Slide 8: Expenses breakdown
` in Crores S Dec 19 Sep 19 Dec 18 Variation Dec 19 Dec 18 Variation Parameters n Q3 Q2 Q3 Q3<>Q2 Y-o-Y 9M 9M Y-o-Y 1 Intt paid on Deposits 3,184 3,280 2,892 (2.93%) 10.10% 9,839 8,466 16.22% 2 Intt paid on Bonds 107 108 119 (0.93%) (10.08%) 322 356 (9.55%) 3 Others 44 34 132 29.41% (66.67%) 144 267
Slide 9: Profit and loss summary
` in Crores Dec 19 Sep 19 Dec 18 Variation Dec 19 Dec 18 Variation Sn Parameters Q3 Q2 Q3 Q3<>Q2 Y-o-Y 9M 9M Y-o-Y 1 Interest Income 4,657 4,878 4,562 (4.53%) 2.08% 14,454 13,114 10.22% 2 Interest Expenses 3,335 3,422 3,143 (2.54%) 6.11% 10,305 9,089 13.38% 3 NII (Spread) (1-2) 1,322 1,456 1,419 (9.
Slide 10: Operating profit and net profit trend
` in Crores Operating Profit 1176 1213 1002 1055 1025 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Net Profit 145 202 113 126 202 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 9
Slide 11: NIM, ROA, cost of deposits, yield on advances
NIM ROA 2.79% 2.75% 0.30% 0.30% 2.62% 0.23% 0.19% 2.43% 0.16% 2.41% Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Cost of Deposits Yield on Total Advances 5.89% 5.84% 5.82% 8.53% 5.71% 8.37% 8.35% 8.28% 5.62% 8.09% Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 10
Slide 12: Business per branch, cost to income, LCR
Business per Branch Business per Employee ` in Crores 169 169 170 164 18.9 18.6 18.6 18.1 152 16.5 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q3-19 Q4-19 Q1- 20 Q2- 20 Q3-20 Cost to Income Ratio Liquidity Coverage Ratio 56.63% LCR% Reg. Rqmnt 126.43% 125.05% 131.97% 50.88% 49.50% 48.42% 47.44% 100% 100% 100% Q3-
Slide 13: Other income
` in Crores Dec-19 Dec-18 Parameter 9M 9M Other Income Total income 16,980 14,825 Other Income 2,525 1,704 15% Components of Other Income Other incl Treasury Insurance 78 45 income Other Third Party Products 22 13 Forex General banking 486 434 Credit related 387 365 11.5% Forex 70 53 Credit related
Slide 14: Operating profit to RWA and total assets
0.90% 0.84% 0.83% 0.80% 0.73% 0.72% 0.72% 0.70% 0.69% 0.60% 0.50% 0.46% Operating Profit /Total RWA 0.42% 0.43% 0.40% 0.40% 0.40% Operating Profit/Total Assets 0.37% 0.30% 0.20% 0.10% 0.00% Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 13
Slide 15: Capital adequacy ratio
` in Crores Dec 19 Sep 19 Mar 19 Capital Adequacy Ratio Sn Particulars Q3 Q2 Q4 14.03% 16.00% 13.70% 1 CET - I 16,147 15,447 14,440 12.73% 14.00% 11.18% 11.10% 11.05% 11.04% 2 Tier I 16,237 15,627 14,611 12.00% 9.98% 9.86% 3 Tier II 3,805 3,985 4,041 10.00% 8.00% 4 Total (Tier I + Tier II) 20,042 19
Slide 16: Total advances and credit RWA
` in Crores Credit RWA (FUND) to Total Advances Credit RWA (FUND) Advances 4.64% Y-o-Y 1,71,136 66.48% 1,07,096 1,02,345 11.17% Y-o-Y Gr 62.58% 1,53,942 Dec-18 Dec-19 Dec-18 Dec-19 Dec-18 Dec-19 15
Slide 17: Rating profile and NBFC exposure
% Outstanding as on 31st Dec 2019 5% 15% AAA Others, 17% 9% 16% 12.33% HFC, Dec 19 AA 31.30% A IFC, 23% 13% Dec 18 BBB 17.01% 13% BB & below NBFC 31% 22% Unrated 17% ICC, 19% 39.36% Dec 19 Dec 18 Number of O/s as on Rating External Rating Borrowers 31.12.2019 % Q3 Q3 AAA 15% 16% AAA 21 8,774 AA 31%
Slide 18: Advances by interest rate benchmark
100%0.00% 0.00% 0.00% 0.01% 2.44% 9.29% 8.15% 7.79% 90% 6.50% 16.96% 80% 70% 60% 68.01% 71.66% 66.52% 70.16% 60.89% 50% 40% 30% Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 MCLR LINKED BASE RATE LINKED BPLR LINKED RBLR LINKED STEBR LINKED 17
Slide 19: Retail, agriculture and MSME advances
` in Crores Dec 19 Sep19 Dec 18 Variation Sector RAM as %age to Total Q3 Q2 Q3 Q3<>Q2 Y-o-Y Advances Retail 34,881 33,222 30,885 4.99% 12.94% Agriculture 19,328 19,047 20,213 1.48% (4.38%) (excl. RIDF) MSME 35,268 32,904 29,319 7.18% 20.29% Total RAM 89,477 85,173 80,417 5.05% 11.27% 52.28% 51.87% %
Slide 20: Retail credit breakdown
` in Crores Retail Credit as % of Total Advances Housing Loan Vehicle Loan +32 BPS 24.38% 21,512 18.48% 2122 Y-o-Y 17,295 Y-o-Y Gr Y-o-Y Gr 20.06% 20.38% 1791 Dec-18 Dec-19 Dec-18 Dec-19 Dec-18 Dec-19 Personal Loan Other Mortgage Loan Dec-18 Dec-19 % age NPA 15.18% 1,335 2.66% 33.18% 6,148 Y-o-Y Gr
Slide 21: Industry-wise exposure
` in Crores Industry Segment FB O/s Dec-19 % age to total % age to total Q3 Industry Credit Iron & Steel 6,502 15.27% 3.80% Textile 6,919 16.25% 4.04% Food Processing 6,357 14.93% 3.71% All Engg. 2,995 7.03% 1.75% Vehicles, Vehicle Parts & Transport Equipment 1,379 3.24% 0.81% Constructions 1,523 3.
Slide 22: Credit cost and fresh slippages
1.42% Credit Cost 1.00% 0.99% 5.21% 4.03% Fresh Slippages 2,124 1,451 1,491 1.98% Credit Cost Dec-18 Mar-19 Dec-19 Dec-18 Mar-19 Dec-19 % Fresh Slippages to STD Adv 66.48% 70.20% 78.00% 62.58% 70.32% 55.96% 58.11% 54.99% 67.00% Dec-18 Mar-19 Dec-19 Dec-18 Mar-19 Dec-19 RWA to Total Assets BBB & Abov
Slide 23: Commercial real estate exposure
` in Crores Parameter Balance O/s 2.14% 22.37% A and Above 1,576 39.88% BBB Construction 30.79% LRD 3,432 BB& Below 22.35% 110 Unrated 67.07% Others 15.38% Total 5,118 Construction LRD Other External Rating Risk Grade Balance O/s Parameter Balance O/s 19.11% A & above 1,870 2.81% Standard 3,996 SMA
Slide 24: Power sector details
Power Sector ` in Crores Fund Based 9422 Segment Exposure Outstanding 6595 5926 Total Infrastructure 24,705 15,219 3023 2963 2617 Out of which: - Power 8,652 5,926 - Transport 7,976 5,410 Jun-19 Sep-19 Dec-19 - Communication 3,141 1,703 Outstanding NPA Details of Power Sector Particular Generation T
Slide 25: Investment portfolio
` in Crore Dec 19 Sep 19 Dec 18 Q3 Q2 Q3 Category HTM AFS HFT Total HTM AFS HFT Total HTM AFS HFT Total SLR 36,572 15,564 10 52,146 40,714 13,894 - 54,608 37,535 19,438 0.00 56,973 NSLR 10,506 12,492 2 23,000 10,505 13,234 548 24,288 9,339 13,377 3.00 22,719 (Out of Which (10,257) - - (10,257) (10,2
Slide 26: Provision coverage ratio
74.99% 75.84% 76.32% 77.13% 76.53% PCR 59.05% 56.53% 56.28% 55.91% 56.05% Tangible PCR Dec 18 Mar 19 Jun 19 Sep 19 Dec 19 PCR% (Major Industry) 90.9% 99.2% 80.1% 82.3% 76.7% 81.1% 85.6% 62.8% 75.0% 69.5% Iron & Telcom Infra Other Constructio Textile Automoble Infra Power Overall Engineerin Processin
Slide 27: Gross and net NPA ratios
Gross NPA as a % of Gross Advances 15.82% 12.66% 12.56% 12.53% 12.64% Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Net NPA as a % of Net Advances 7.15% 5.93% 5.91% 5.94% 5.98% Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 26
Slide 28: Sector-wise NPA additions
` in Crores Sector Dec-19 % of Total Wise Q3 NPA Addition 2124 1624 Retail 77 3.62% 1491 1293 Agri 217 10.22% 954 MSME 206 9.70% 544 Others 1,624 76.46% 330 372 333 47 139 217 206 65 77 Total 2,124 100% Dec18 Mar19 Dec19 Retail Agri MSME Others Total NBFC EPC Contractor Real Estate Food Processing T
Slide 29: Cash recovery and upgradation
` in Crores Total Cash Recovery + Upgradation 1827 1267 1074 869 825 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Recovery in TWO/ RI 565 258 223 227 246 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 28
Slide 30: NPA movement
` in Crores Dec 19 Sep 19 Dec 18 Dec 19 Dec 18 Sn Particulars Q3 Q2 Q3 9M 9M 1 Opening Gross NPAs 20,582 21,369 25,673 21,717 26,134 2 Recovery in Ledger Balance 739 534 778 1,833 3,106 3 Up gradation 89 64 231 238 657 4 Write Off 244 1,577 1,604 2,936 3,593 5 Total Reduction (2+3+4) 1,072 2,175 2,6
Slide 31: Slippages, provisions, GNPA and NNPA
` in Crores 15.82% 12.66% 12.56% 12.53% 12.64% Fresh Slippages NPA Provision 7.15% GNPA 5.93% 5.91% 5.94% 5.98% NNPA 1293 4082 1491 1413 1388 1050 2124 815 865 863 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 30
Slide 32: Sector-wise NPA
` in Crores As on 31.12.2019 As on 30.09.2019 As on 31.12.2018 Sector/ % of % of % of % of % of Industries % 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 34,881 544 1.56% 2.52% 33,222 525 1.58% 2.55% 30,885 467 1.51% 1.92% Agri
Slide 33: Infrastructure, textile, steel, NBFC NPA
` in Crores As on 31.12.2019 As on 30.09.2019 As on 31.12.2018 % of % of % of Sector/ % of % of NPA to NPA to % of NPA NPA to Industries O/s NPA NPA O/s NPA NPA to O/s NPA Gross Gross to O/s Gross to O/s O/s NPA NPA NPA Infra 15,219 3,902 25.64% 18.04% 14,541 4,271 29.37% 20.75% 14,569 4,411 30.28%
Slide 34: NCLT and non-NCLT gross NPA
` in Crores Gross NPA Non TWO Accounts referred to NCLT TWO Accounts referred to NCLT 24353 21717 21634 21369 20582 9354 9079 8756 8560 8530 8074 7655 7498 7400 5394 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 33
Slide 35: Accounts referred to NCLT
` in Crores SN Particulars Number Amount Accounts referred to NCLT (including already resolved through NCLT as 1 271 22,602 well as accounts yet to be admitted) upto 31.12.2019 Admitted 192 15,478 Accounts referred to NCLT as on 2 Yet to be admitted 32 2,358 31.12.19 Total 224 17,836 3(a) Cases reso
Slide 36: 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 25 143 103 271 No of Cases where Resolution Plan has been approved through NCLT and 3 1 4 11 0 15 accounts exited from NCLT No of C
Slide 37: Restructured portfolio
` in Crores Dec 19 Sep 19 Jun 19 Mar 19 Dec 18 S.No Particulars Q3 Q2 Q1 Q4 Q3 1 Standard Restructured Portfolio 634 617 533 415 321 2 Quantum of Standard Restructured Assets where 321 295 258 130 93 repayment has not commenced 3 Quantum of SMA-II in Restructured Accounts 270 260 86 31 159 4 NPA in
Slide 38: Sector exposure details
` in Crores Infra Road 148 EPC 93 Iron & Steel 553 Agriculture Allied Commercial Real Estate (CRE) 227 Total 1430 Industries (Others) Services Textile 201 74 9 88 37 Others 37
Slide 39: Priority sector lending
` in Crores Dec 19 Sep 19 Dec18 Variation % Sn Parameters Q3 Q2 Q3 Q3<>Q2 Y-o-Y ANBC 1,63,158 1,58,214 1,78,478 3.12% -8.58% 1 Priority Sector 70,547 67,109 63,095 5.12% 11.81% PSLC 0 0 5,000 -100.00% -100.00% Total Priority sector 70,547 67,109 68,095 5.12% 3.60% % of ANBC 43.24% 42.42% 38.15% NA N
Slide 40: Financial inclusion: PMJDY, PMSBY, PMMY
PMJDY (As on 31st Dec, 2019) 1 Number of Accounts opened since 16.08.14 50.20 Lakh 2 Number of RuPay cards issued 40.93 Lakh 3 Deposits in Accounts 440028.00 Lakh PMSBY & PMJJBY No. of Enrolments (In Lakh) Total Enrolments Scheme (In Lakh) URBAN RURAL Pradhan Mantri Suraksha Bima Yojana (PMSBY) 28.7
Slide 41: Human resources, shareholding, delivery channels
Banks/FIs/In Mutual surance. cos., Funds/ UTI Others, Human Resources FPIs/NRIs, 3.87% & Trusts, 4.75% 2.19% 1.61% 21716 21493 21281 Shareholding pattern Govt.of India, 87.58% 13780 13618 13455 Delivery Channels Total Branches - 2371 Total ATMs 2603 5754 5706 5667 560 584 Metro 2182 2169 2159 565 69
Slide 42: Digital adoption
Digital Adoption Pie Chart for customer induced 90 DB% Branch% transactions for quarter ended Dec 19 81.59% ATM/BNA 80 72.07% 73% 70 Internet 60 61.75% 60.53% Banking + IMPS 54.51% 50 18.41% PoS ATM + 23.09% eComm 40 30 7.35% UPI + Mobile 6.17% Banking 20 4.50% 14.30% AEPS + PIN 10 26.18% POT + Nach
Slide 43: 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
Oriental Bank of Commerce — Q3 FY2020 Earnings Presentation on 6ix