FI FINANCIAL NCIAL RES ESULTS LTS Q3 Q3 FY FY 20 2020 20 An - PowerPoint PPT Presentation

FI FINANCIAL NCIAL RES ESULTS LTS Q3 Q3 FY FY 20 2020 20 An Analys yst t Presentation esentation Febru bruary ary 11, 2020 Page 1 Page 1

Content Highlights Financial Performance Business Performance Treasury Operations Asset Quality Capital Prompt Corrective Action Matrix Digital Banking & Financial Inclusion Subsidiaries IDBI-LIC Synergy Page 2 Page 2

Highlights Page 3 Page 3

Major Highlights 1 Bank reports PBT of Rs.756 crore, after 12 quarters, Bank Shifts to new Tax Regime. 2 One time hit of Rs.6273 crore on account of DTA reversal Bank would have reported net profit of Rs.418 crore instead of loss of Rs.5763 crore, 3 if continued under old Tax Regime Bank recovers Rs.2255 crore in Essar Steel Limited through NCLT. 4 Overall recovery Rs.3136 crore during Q3. Accelerated provisions of Rs.1679 crore made during the quarter. 5 PCR at 92.41% highest in Banking Industry. Bank has achieved all PCA parameters, except RoA. 6 Net NPA at 5.25%. CRAR at 12.56% Page 4 Page 4

Performance Snapshot YoY QoQ 12.56% 12.56% Capital Adequacy 5 bps 25% 58 bps 12.51% 11.98% 29.67% 29.43% Gross NPA -71 bps -95 bps 28.72% 28.72% 14.01% 5.97% Net NPA -876 bps -72 bps 5.25% 5.25% 92.41% 92.41% Provision Coverage Ratio 1.16% 17.20% 75.21% 91.25% Rs.2211 Cr Rs.2113 Cr Slippages 3% -4% Rs.2113 Cr Rs.2059 Cr 2.87% 1.93% Credit Cost -242 bps -148 bps 0.45% 0.45% Page 5 Page 5

Performance Snapshot YoY QoQ Rs.1532 Cr Rs.1631 Cr NII -6% 25% 13% Rs.1357 Cr Rs.1532 Cr 2.27% 2.33% NIM 39 bps -6 bps 1.88% 2.27% Rs.1278 Cr Rs.1278 Cr Operating Profit 27% 76% Rs.725 C r Rs.1009 Cr Profit - Rs.756 Cr Profit - Rs.756 Cr Profit Before Tax 116% 113% Loss - Rs.5805 Cr Loss - Rs.4632 Cr Rs.5763 Cr Rs.5763 Cr Net Loss # 67% # 38% Rs.4185 Cr Rs.3459 Cr # Effect of DTA reversal as Bank shifts to new tax regime Page 6 Page 6

Performance Snapshot YoY QoQ Rs.1,52,520 Cr Rs.1,32,718 Cr Total Advances (Net) -15% 25% -2% Rs.1,29,671 Cr Rs.1,29,671 Cr Rs.2,29,966 Cr Rs.2,31,830 Cr Total Deposits -5% -6% Rs.2,18,180 Cr Rs.2,18,180 Cr Rs.94,694 Cr Rs.94,694 Cr Retail Advances 7% 1% Rs. 88,780 Cr Rs.93,692 Cr Rs.58,006 Cr Rs.58,006 Cr Capital Adequacy Structured Retail Asset 14% 3% Rs.50,671 Cr Rs.56,320 Cr 52:48 47:53 Capital Adequacy Corporate : Retail Ratio 45:55 45:55 Page 7 Page 7

Financial Performance Page 8 Page 8

Profit & Loss ( Rs.Crore ) Quarter ended Particulars Var (YoY) % Var (QoQ) % 9M FY 19 9M FY 20 Var (YoY) % FY19 Dec-18 Sep-19 Dec-19 Interest Income 5493 5198 4937 (10) (5) 16608 15227 (8) 22071 Interest Expenses 4136 3567 3405 (18) (5) 12312 10605 (14) 16166 Net Interest Income 1357 1631 1532 13 (6) 4296 4622 8 5906 Other Income 698 1033 1278 83 24 2147 3144 46 3300 Net Total Income 2055 2664 2811 37 6 6444 7765 21 9206 Operating Expenses 1330 1655 1533 15 (7) 3787 4527 20 5154 -Employee Cost 608 938 773 27 (18) 1587 2321 46 2203 -Other Operating Cost 721 716 760 5 6 2200 2206 0 2951 Operating Profit 725 1009 1278 76 27 2656 3238 22 4052 OP. Excl. gain on strategic sale 785 907 1043 33 15 2504 2901 16 3909 Provisions & Contingencies (Excl. Tax) 6531 5641 522 (92) (91) 18347 12495 (32) 26879 Profit/(Loss) Before Tax (5805) (4632) 756 (113) (116) (15690) (9257) (41) (22827) (1620) (5492) Tax (1173) 6519 - - 3766 - (7711) Profit/(Loss) After Tax (4185) (3459) (5763) 38 67 (10198) (13023) 28 (15116) NIM % 1.88 2.33 2.27 39 bps (6) bps 1.95 2.25 30 bps 2.03 Page 9 Page 9

Total Income-Quarterly (Rs.Crore) Quarter ended Variance Variance Particulars FY19 (Y-o-Y) % (Q-o-Q) % Dec-18 Sep-19 Dec-19 Interest on Advances 3564 3092 (13) (8) 14381 3359 Interest on Invest. 1678 1559 (7) 0.45 6633 1552 including bal. with RBI & Other Inter Bank Funds Other Interest Income 251 288 286 14 (1) 1058 Interest Income 5493 4937 (10) (5) 22071 5198 Commission, exchange and brokerage 447 468 466 4 (0.34) 1982 Profit/ (Loss) on sale of investments 98 275 326 233 19 336 Profit/(Loss) on sale of Fixed Assets (60) (0.22) (100) 81 (73) (0.12) Profit/(Loss) on Forex 152 136 115 (24) (15) 313 Dividend income 0 0 0 (100) 2 10 Recovery from W/O cases 46 96 308 574 221 468 Misc Income 16 48 64 292 32 272 Other Income 698 1278 83 24 3300 1033 Total Income 6191 6231 6215 0.40 (0.25) 25372 Page 10 Page 10

Fee Based Income-Quarterly (Rs.Crore) Quarter ended Other Income Variance Variance FY19 (Y-o-Y) % (Q-o-Q) % Dec-18 Sep-19 Dec-19 BG Commission 72 62 (15) (37) 317 98 LC Commission 55 58 62 14 8 288 Bills Commission 9 7 4 (58) (46) 27 Proc. Fee & Incidental Charges 100 93 136 35 46 519 Remittances Fees 57 59 3 2 223 57 Cash Mgmt. Services Fees 3 3 (2) (12) 4 16 Card Fees 28 27 30 7 10 105 ATM Charges 37 32 32 (14) (1) 142 Alternate Channel Fees 47 55 54 15 (2) 192 Third Party Dist. Fees 25 20 (22) (24) 26 105 Demat Fees 6 3 (52) 37 2 16 Govt. Business Fees 6 7 4 (44) (52) 26 Miscellaneous Fees 5 34 43 680 25 238 Total Fee Based Income 450 501 510 13 2 2213 Page 11 Page 11

Total Expenses-Quarterly (Rs.Crore ) Quarter ended Variance Variance Particulars FY19 (Y-o-Y) % (Q-o-Q) % Dec-18 Sep-19 Dec-19 Interest paid on Deposits 3157 2890 2718 (14) (6) 12526 Interest paid on Borrowings 736 545 (26) (9) 2975 597 Interest on RBI / inter bank borrowings 242 79 142 (41) 80 665 Total Interest Expenses 4135 3405 (18) (5) 16166 3566 Staff Expenses 608 938 773 27 (18) 2203 Rent, taxes and lighting 101 127 111 10 (13) 425 Depreciation 95 92 (3) 34 366 69 Card & ATM expenses 134 103 95 (29) (8) 439 Outsourcing expenses 147 144 (2) (6) 634 153 Other Operating Expenses 244 265 318 30 20 1087 Operating Expenses 1329 1655 1533 15 (7) 5154 Total Expenses 5464 5221 4938 (10) (5) 21319 Page 12 Page 12

Provisions & Contingencies (Rs.Crore) Quarter Ended FY ended Particulars Dec-18 Sep-19 Dec-19 FY19 Depreciation on Investment 817 1011 484 1604 -Out of above MTM Gain/(Loss) (763) (911) (384) (1696) Provision - NPAs 5075 3545 440 22392 Provision – Standard Assets (135) (220) 68 (28) Provision - Restructured Assets (147) (30) (70) (155) Income Tax (1620) (1173) 6519 (7711) Bad Debts Written off 562 124 332 1750 Other Provisions 360 1211 (732) 1315 Total 4912 4468 7041 19168 Page 13 Page 13

Yield Ratios (cumulative) Yield on Advances NIM 9.22% 2.25% 2.23% 9.14% 2.13% 8.82% 2.03% 8.73% 1.95% 8.62% Dec 18 FY 19 June 19 Sep 19 Dec 19 Dec 18 FY 19 June 19 Sep 19 Dec 19 Cost to Income (excl Gain on Sale of Non Cores Assets) 61.72% 60.23% 60.95% 58.48% 56.95% Dec 18 FY 19 June 19 Sep 19 Dec 19 Page 14 Page 14

Business Performance Page 15 Page 15

Balance Sheet ( Rs.Crore ) As at Dec-18 Sep-19 Dec-19 LIABILITIES Capital 7 736 10 381 6 909 Reserve & Surplus 22 616 23 508 28 582 Deposits 2 31 830 2 18 180 2 29 966 Borrowings 30 206 35 822 53 777 Other Liabilities & Provisions 21 275 10 054 13 192 Total 3 13 663 2 97 945 3 32 426 ASSETS Cash & Balance with RBI 22 496 12 012 15 058 Bal. with banks & money at call 7 784 14 876 16 811 Investments 88 781 84 714 94 021 Advances 1 32 718 1 29 671 1 52 520 Fixed Assets 8 191 8 145 6 375 Other Assets 53 691 48 527 47 641 3 13 663 2 97 945 Total 3 32 426 Page 16 Page 16

Business Performance ( Rs.Crore ) Particulars Dec-18 Sep-19 Dec-19 Total Business [Deposit + Net Advance] 382486 364547 347851 Total Deposits 229966 231830 218180 CASA Share 38.36% 44.87% 47.65% CASA Deposits 104027 88206 103966 Saving Deposits 60871 57486 61926 SB Deposits to Total Deposits % 25.00% 26.26% 28.38% Current Deposits 30720 43157 42040 Current Deposits to Total Deposits % 13.36% 18.62% 19.27% Term Deposits 141760 127802 114214 Time Deposits to Total Deposits % 61.64% 55.13% 52.35% Retail Deposits 77181 68067 76960 Bulk Deposits 73693 50621 37254 Bulk Deposits to Total Deposits % 32.05% 21.84% 17.07% CD Ratio (Gross Credit) 81.13 76.29 79.01 Business per Employee 21.49 18.99 19.33 Business per Branch 193.39 179.37 170.84 Page 17 Page 17

Cost of Deposit & Cost of Funds (Cumulative) Cost of Deposits 5.45% 5.44% 5.29% 5.23% 5.16% Dec 18 FY 19 June 19 Sep 19 Dec 19 Cost of Funds 5.80% 5.78% 5.63% 5.58% 5.52% Dec 18 FY 19 June 19 Sep 19 Dec 19 Page 18 Page 18