IDBI Bank Limited · NSE:IDBI
IDBI Bank — Q3 FY2019 Earnings Presentation
49 slides from IDBI Bank's earnings presentation, January 2019
Slide 1: Presentation to Analysts Q3 FY 2019
|G) IDBIBANK Bank. Aisa Dost Jaisa mPresentation to Analysis! Q3 FY 2019
Slide 2: Content
Content Highlights Financial Performance Business Performance Treasury Operations Asset Quality Capital Prompt Corrective Action Matrix Digital Banking & Financial Inclusion IDBI-LIC Deal 2
Slide 3: Highlights
|@ IDBI BANK | 3
Slide 4: Highlights for Qtr Dec 2018 (QoQ)
Highlights for Qtr Dec 2018- (QoQ) CRAR stands at 12.51% CET1+CCB Ratio stands at 9.32% RWA at Rs. 190456 Cr (Decreased by Rs. 1572 Cr) S & P Global Ratings have removed the ratings from Credit Watch with negative implications on certain debt instruments. CRISIL have removed certain debt instruments
Slide 5: Financial Performance
mlatelarestel Performance |@ IDBI BANK | 5
Slide 6: Profit & Loss - Quarterly
Profit & Loss- Quarterly (Rs.Crore) Quarter ended Growth Growth Particulars Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 (Y-o-Y)% (Q-o-Q)% Interest Income 5 797 5 214 5 760 5 356 5 493 (5) 3 Interest Expenses 4 132 4 299 4 121 4 055 4 136 0 2 Net Interest Income 1 666 915 1 639 1 301 1 357 (19) 4 Other Income
Slide 7: Profit & Loss - 9M ended
Profit & Loss- 9M ended (Rs.Crore) Growth Particulars 9M FY18 FY 18 9M FY19 (Y-o-Y)% Interest Income 17 812 23 027 16 608 (7) Interest Expenses 13 088 17 386 12 312 (6) Net Interest Income 4 725 5 640 4 296 (9) Other Income 4 313 7 014 2 147 (50) -of which Profit on Strategic sale 2 024 3 353 216 (8
Slide 8: Other Income
Other Income Quarter Ended (Rs.Crore) Fee Income Breakup YoY Q-o-Q Dec-17 Mar-18 Sept-18 Dec-18 Growth Growth (%) (%) BG Commission 114 107 81 72 -37% -11% LC Commission 109 134 63 55 -50% -14% Bills Commission 4 2 6 9 115% 36% Proc Fee & Incidental Charges 138 162 114 100 -27% -12% Remittances Fees
Slide 9: Operating Expenses - Quarterly
Operating Expenses-Quarterly (Rs.Crore) 1253 1257 1330 1094 800 687 730 721 608 527 453 407 Qtr Dec 17 Qtr Mar 18 Qtr Sept 18 Qtr Dec 18 Operating Expenses Other Operating expenses Staff Expenses Operating Expenses (Y-o-Y) increased mainly on account of provision for salary arrears and provision tow
Slide 10: Operating Expenses - 9M ended
Operating Expenses-9M ended (Rs.Crore) 5000 4745 4500 4000 3787 3491 Operating 3500 Expenses 2950 3000 2500 2150 2200 Other Operating 2000 1795 expenses 1587 1500 1341 1000 Staff Expenses 500 0 9M FY18 FY18 9M FY19 10
Slide 11: Provisions & Contingencies - Quarterly
Provisions & Contingencies- Quarterly (Rs.Crore) Quarter Ended Particulars Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Depreciation on Investment 903 709 68 1 070 817 - MTM Gain/(Loss) (806) (612) (415) (965) (720) - MTM W/back - - 488 0 Provision for NPAs 3 637 10 773 4 603 5 482 5 075 Provision towards sta
Slide 12: Provisions & Contingencies - 9M ended
Provisions & Contingencies-9M ended (Rs.Crore) Particulars 9M FY18 FY18 9M FY19 Depreciation on Investment 1 510 2 219 1 954 - MTM Gain/(Loss) (1220) (1818) (1612) - MTM W/back - Provision for NPAs 8 353 19 126 15 159 Provision towards standard assets 431 (1133) (292) Provision for Restructured Asse
Slide 13: Yield Ratios
Yield Ratios Qtr Dec 17 Qtr Mar 18 Qtr Sep 18 Qtr Dec 18 NIM has improved by 8 bps QoQ 8.69% 8.46% 8.89% 7.18% Yield on Advances has improved by 43 bps Yield on Advances Qtr Dec 17 Qtr Mar 18 Qtr Sep 18 Qtr Dec 18 2.16% Cost to Income Ratio 1.80% 1.88% (excl. gain on sale of Non Core assets) 1.19% 7
Slide 14: Profitability Ratios
Profitability Ratios Performance (in %) Quarter ended Year Particulars Dec-18 Sep-18 Jun-18 Dec-17 Mar-18 Cost of all Liabilities 5.18% 5.12% 5.04% 5.01% 5.18% Yield on Total assets 7.68% 7.71% 7.77% 8.54% 8.96% Margin 2.50% 2.59% 2.73% 3.53% 3.78% Cost of funds 5.88% 5.79% 5.72% 5.64% 5.85% Ret on
Slide 15: Business Performance
Business Performance 15
Slide 16: Balance Sheet
Balance Sheet (Rs.Crore) As at 31-Dec-17 31-Mar-18 30-Sep-18 31-Dec-18 LIABILITIES Capital 2 642 3 084 4 181 6 909 Reserve & Surplus 21 501 18 126 18 897 28 582 Deposits 2 36 978 2 47 932 2 36 227 2 29 966 Borrowings 63 775 63 186 54 128 53 777 Other Liabilities & Provisions 15 499 17 987 12 583 13
Slide 17: Balance Sheet Ratios
Balance Sheet Ratios Particulars Dec-17 Mar 18 Sep-18 Dec-18 Total Business [Dep. + Adv.] (Rs. In Cr) 420234 419672 394020 382486 SB Deposits to Total Deposits (EOP) 22.04% 23.04% 24.14% 25.00% Current Account Deposits to Total Deposits(EOP) 14.10% 14.11% 13.99% 13.36% Time Deposits to Total Deposit
Slide 18: CASA Performance
CASA Performance (Rs.Crore) Terminal level YoY QoQ Parameters Dec -17 Mar -18 Sept - 18 Dec - 18 variation variation Global Deposits 236978 247932 236227 229966 -3% -3% CASA Share (%) 36.14 37.15 38.13 38.36 CASA Deposits 85643 92102 90071 88206 3% -2% Saving Deposits 52225 57125 57035 57486 10% 1%
Slide 19: CASA - Low Cost Deposit
CASA- Low Cost Deposit (Rs.Crore) CASA Terminal Level Savings Deposits 57125 57486 57035 92102 90071 54772 88206 85643 85180 52225 Dec - 17 Mar -18 June - 18 Sept - 18 Dec - 18 Dec - 17 Mar -18 June - 18 Sept - 18 Dec - 18 CASA % 38.36% 38.13% CASA Deposits have improved 37.15% 36.14% by 3 % Y-o-Y 3
Slide 20: Cost of Deposit & Cost of Funds
Cost of Deposit & Cost of Funds Quarterly Average Cost of Deposits 5.53% 5.46% 5.41% 5.41% 5.34% Dec-17 Mar-18 June-18 Sept-18 Dec-18 Cost of Funds 5.88% 5.83% 5.79% 5.64% 5.72% Dec-17 Mar-18 June-18 Sept-18 Dec-18 20
Slide 21: Advances
Advances (Rs.Crore) YoY QoQ Parameters Dec -17 Mar -18 Sept - 18 Dec - 18 variation variation Gross Advances 204768 198853 191524 186580 -9% -3% Corporate 120385 110245 103744 97800 -19% -6% Retail 84383 88608 87779 88780 5% 1% Corporate : Retail (%) 59:41 55:45 54:46 52:48 Global Net Advances 18325
Slide 22: Increasing RAM
Increasing RAM % of Agri Share in Advances % of MSME Share in Advances 9.13 9.10 8.62 8.22 8.76 7.88 8.63 8.63 Dec-17 Mar-18 Sep-18 Dec-18 Dec-17 Mar-18 Sep-18 Dec-18 % of Retail Share in Advances % of RAM Share in Advances 28.79 29.73 47.50 26.39 24.00 45.64 44.11 40.64 Dec-17 Mar-18 Sep-18 Dec-18
Slide 23: Retail Products Growth
Retail Products Growth Structured Retail Assets Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Growth (YoY) Growth (QoQ) (Rs.Crore) (%) (%) HL 31188 32241 32581 33803 35379 13 5 LAP 9899 10753 10686 11229 11925 20 6 EL 854 871 875 943 966 13 2 PL 374 405 414 457 502 34 10 AL 1488 1576 1620 1706 1899 28 11 Struc
Slide 24: Priority Sector
Priority Sector Particulars Mar 18 Mar-18 as Dec 18 Dec-18 as Growth over (Rs.Crore) % of ANBC % of ANBC March-18 Actuals Actuals Actuals Actuals Actuals Sr. 1 2 3 4 5 (6)=[(4)-(2)] ANBC 209055 210298 Priority Sector 97663 46.72% 86523 41.14% -11140 Advances (a+b+c) (a) Agriculture (i+ii+iii) 41721
Slide 25: Top 20 Industry-wise Advances
Top 20 Industry-wise Advances (Rs.Crore) Outstanding as on 31.12.2018 % of Total Outstanding Top 20 Industries advances FTNPA for FB NFB Total GNPA (Fund the Qtr based+Non fund based) Infrastructure 37651 22374 60025 18.19% 15748 824 -Transport 11127 6566 17693 5.36% 5339 593 -Energy 22639 7379 3001
Slide 26: Treasury Operations
Treasury Operations |@ IDBI BANK | 26
Slide 27: Treasury Operations
Treasury Operations Rs.Crore Quarter ended Year Ended Particulars Dec-18 Sep-18 Jun-18 Dec-17 Mar-18 Profit/ (Loss) on sale of investments (net) 98 122 -25 680 3932 A) Profit from Strategic Sale (Investments) 0 216 0 616 3353 B) Others 98 -93 -25 63 579 Profit/(Loss) on revaluation of investments (n
Slide 28: Investments
Investments (Rs.Crore) Dec-18 2% Category Dec-17 Mar-18 Sept-18 Dec-18 HTM 56604 60192 59675 60570 HTM AFS 33251 31244 34410 31977 34% AFS HFT 1491 170 675 1473 64% HFT Total 91346 91606 94760 94021 Modified Duration of Total Trading Book as on Dec 31, 2018 is 4.32 Parameter Dec-17 Mar-18 Sept-18 De
Slide 29: Asset Quality
Asset Quality |@ IDBI BANK | 29
Slide 30: Asset Quality
Asset Quality (Rs.Crore) PCR improved from 56.99% (Dec 2017) to 75.21% (Dec 2018) Particulars Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Gross Advances 205670 204768 198853 187814 191524 186580 Gross NPAs 51368 50622 55588 57807 60875 55360 Gross NPAs as % of Gross Advances 24.98% 24.72% 27.95% 30.78
Slide 31: NPA Movement
NPA Movement DESCRIPTION Q1 FY 18 Q2 FY 18 Q3 FY 18 Q4 FY 18 FY 18 Q1 FY 19 Q2 FY 19 Q3 FY 19 (Rs.Crore) Opening Balance 44753 50173 51368 50622 44753 55588 57807 60875 Add: a. First Time NPA 7659 3381 6543 18023 35605 7799 3489 2211 b. Increase/Ageing 705 1322 312 407 2746 949 765 784 Less: c. Sett
Slide 32: Summary - NCLT Cases filed as per RBI Direction
Summary- NCLT Cases filed as per RBI Direction (1st & 2nd List) Dec 31, 2018 Dec31, 2018 Particulars RBI 1st List RBI 2nd List No. of Cases 12 29 Cases where IDBI Bank has exposure 11 19 IDBI Bank Lead cases 2 4 Cases which have been Admitted 11 13 IDBI Bank Gross Principal O/S (Rs. Cr.) as on Dec 3
Slide 33: Summary of Cases Referred to NCLT
Summary of Cases referred to NCLT (Rs.Crore) Summary of Cases Admitted in NCLT Cases filed in NCLT Dec 31, 2018 Particulars Dec 31, 2018 No. of Cases filed 308 Gross No. of Cases Admitted 144 No. of Particulars Principal (IDBI Lead cases) (26) Cases Amount Gross Principal as on Dec 33,765 Cases File
Slide 34: SMA Position
SMA Position (Rs.Crore) SMA summary Corporate Retail Total Mar-18 Jun-18 Sep-18 Dec-18 Mar-18 Jun-18 Sep-18 Dec-18 Mar-18 Jun-18 Sep-18 Dec-18 SMA 0 8784 5889 4060 1140 4026 3684 3646 3478 12810 9573 7706 4619 SMA 1 5418 1326 452 4165 1607 1539 1580 1802 7025 2865 2032 5967 SMA 2 119 2257 927 1992 1
Slide 35: Capital
Capital |@ IDBI BANK | 35
Slide 36: Capital Adequacy
Capital Adequacy (Rs.Crore) Particulars Dec-17 Mar-18 Sept-18 Dec-18 CET 1 + CCB (Rs.) 16463 16392 7426 17746 AT 1 (Rs.) 5854 684 684 684 Tier 1 Capital (Rs.) 22317 17076 8109 18430 Tier 2 Capital (Rs.) 7370 5915 5754 5398 Total Capital (Rs.) 29687 22991 13863 23828 RWA (Rs.) 248861 220864 192028 19
Slide 37: Risk Weighted Assets
Risk Weighted Assets (Rs.Crore) Movement of RWA against Advances As on Particulars Mar-17 Jun-17 Sep 17 Dec-17 Mar -18 Jun-18 Sept-18 Dec-18 Credit RWA 232225 220977 209093 204158 180271 161548 155018 153677 Market RWA 20184 20427 21018 27774 23664 21491 20226 19995 Operation RWA 16588 16929 16929 1
Slide 38: Prompt Corrective Action Matrix
Prompt Corrective Action Matrix 38
Slide 39: Prompt Corrective Action (PCA) Matrix
Prompt Corrective Action (PCA) Matrix Criteria Indicator Risk Dec-18 Threshold 1 Threshold Threshold IDBI (T1) 2 (T2) 3 (T3) (Actuals) CRAR+CCB <11.5% but Parameter Capital <9.0% but >7.5% <7.5% 12.51% (9%+2.5%) >=9% complied (Breach of either CRAR or CET1 Ratio to trigger PCA) CET 1+CCB >=6.375% bu
Slide 40: Indicators on Parameters of PCA
Indicators on Parameters of PCA CET 1 % CRAR % Net NPA % 9.32% 12.51% 16.02% 6.62% 11.93% 14.01% Dec-17 Dec-18 Dec-17 Dec-18 Dec-17 Dec-18 Op. Prft. Excl. gain on Provision Coverage Ratio % Credit RWA to Advances % strategic sale 1280 75.21% 99.70% 56.99% 82.37% 725 Dec-17 Dec-18 Dec-17 Dec-18 Dec-1
Slide 41: Digital Banking & Financial Inclusion
Digital Banking & Financial Inclusion 41
Slide 42: Digital Channel Total Registrations
Digital Channel Total Registrations Particulars December 18 December 17 Growth(%) Debit Cards in Lakhs 118 112 5.35 I Net Banking (No of 10.69 Customer Reg.) 9935748 8975412 Mobile Banking (No of Customer Reg. 2467256 1446909 70.51 No of ATM 3713 3807 -2.97* No of E Lounge 58 58 - BHIM UPI 1515405 5
Slide 43: Digital Channel Volume of Transactions
Digital Channel Volume of Transactions (Rs in Cr) Particulars Qtr December 18 Qtr December 17 Growth(%) ATMs 11238 11446 -1.81* Debit Cards 12500 12166 2.75 Credit Cards 124 73 69.86 POS Terminals 2824 2990 -5.57** Internet Banking 140508 125223 12.21 Mobile Banking 2587 441 485.98 *Few loss making
Slide 44: Financial Inclusion
Financial Inclusion Progress Under Pradhan Mantri Jan Dhan Yojana (PMJDY) Parameters Dec-18 Accounts opened (Number in lakh) 8.37 Deposits (Rs. In Crore) 230.43 RuPaycards issued (Number in lakhs) 7.12 Aadhar Seeding under PMJDY(Number in lakhs) 6.4 Villages Covered (Number) 1024 Sub Service Areas (
Slide 45: IDBI-LIC Deal
IDBI-LIC Deal |@ IDBI BANK 45
Slide 46: Capital infusion by LIC
Capital infusion by LIC LIC has acquired 51% Stake in IDBI by infusing Capital on the following dates : Date Amount in Cr. 17.09.2018 2098 18.12.2018 6000 24.12.2018 4000 27.12.2018 7089 18.01.2019 2437 Total 21624 The allotment for the infused capital has been completed as on 21st January, 2019. 46
Slide 47: Shareholding Pattern
Shareholding Pattern % of Share Holding as on 30.09.2018 0.69 1.04 GOI 1.05 2.97 0.31 7.98 Other Insurance Companies LIC Public % of Share Holding as on 24.01.2019 Foreign Portfolio 0.46 0.21 GOI 85.96 Investors 1.37 0.33 FI/Banks/MF Other Insurance Companies Other LIC 46.46 Public 51.00 Foreign Por
Slide 48: Win-Win Deal
Win-Win Deal • Unique financial conglomerate created with two trusted brands in BFSI space coming together • Strategic alliance a win-win situation for LIC and IDBI Bank -To unlock value enhancing business opportunities • Mutual synergies to create immense value for its shareholders, customers and g
Slide 49: Thank You
Thank You |@ IDBI BANK | 49