Presentation to Analysts Presentation to Analysts April 2011 April 2011
Genesis Genesis 1964-19 1964-1976 1994- 1994- 00 2003 - 2003 - 06 2007- 10 200 S et up by an p y IDBI Act IDBI Repeal Act p Complete p passed in Networking amended to Act of December 2003 (100% Core Parliament in permit private for conversion Banking) ownership upto 1964 as a to a banking g Organization g subsidiary of subsidiary of 49% 49% . . company. structure the Central Domestic IPO in Govt. ownership redesigned on Bank (RBI) 1995, reduces to be not below Customer Govt. stake to Ownership 51% S g S egmentation transferred to t f d t 72% 72% . basis Amalgamation Govt. in 1976 Post capital of IDBI Bank Ltd. Name changed restructuring in IDBI had been a With IDBI Ltd. to IDBI Bank Ltd p policy bank in y 2000, Govt. W.e.f. April 2, W.e.f. April 2, Achieved Achieved stake reduced the area of 2005 regulatory industrial to 58.5% Oct. 2006 norms of S LR, financing and amalgamated CME development development erstwhile UWB erstwhile UWB. 2
Status as Leading DFI Status as Leading DFI • • Leading provider of long term finance Leading provider of long term finance o Played an apex role in helping create the industrial and infrastructural base in the country o Total Investments generated – ` 4000 billion (approx.) (over US d ` 4000 billi T l I ( ) ( US D D 80 bn) ignificant player in domestic debt syndication . o S • Played a pivotal role in developing institutions that shaped the country’s financial architecture o NS o NS E E - Electronic S Electronic S tock Exchange tock Exchange, o NS DL - S ecurities Depository, o CARE - Rating Agency, o S S HCIL HCIL - Depository Participant e stamping etc Depository Participant, e-stamping etc. o S IDBI - Funding institution for S S I and ME o Exim Bank- A bank to finance export Import o ARCIL - Asset reconstruction company o NeDFI - For development of North-East Region 3
Systemic Importance Systemic Importance • Minimum 51% shareholding by Govt. at all times as specified in the Memorandum & Articles of Association • Large size and retail base • • Large investments by PF / Superannuation funds Large investments by PF / Superannuation funds Continued Govt. support - Infusion of ` 3119.04 crore as • preferential allotment of equity. • Designated as the lead DFI Designated as the lead DFI • Large and continuing investments in strategic sectors o In-house expertise in project appraisal / syndication I h ti i j t i l / di ti 4
Transition from DFI to a full Transition from DFI to a full- -service bank service bank • I In S S eptember 2004, IDBI moved from its erstwhile DFI status into t b 2004 IDBI d f it t hil DFI t t i t a full-service commercial bank offering the entire suite of banking products • Today, IDBI has positioned itself as a bank of choice with corporate and retail customers alike p o Created a niche for itself as a nimble, swift and sure footed, technologically driven bank offering the added benefit of security on account of its maj ority Government ownership j y p o Undertaken extensive organisational restructuring post-conversion and post-merger of two banks with itself a d post e ge o two ba s w t tsel o Operates off a customer-centric vertical structure to ensure lowest TATs and total customer satisfaction TATs and total customer satisfaction 5
Distribution Network Distribution Network • • Reach Reach • 816 branches; 1370 ATMs • 1- Overseas, 238-Metro, 307-Urban, 184-S emi Urban & 86-Rural • Presence in 548 locations • Network of : o 60 Retail Asset Centres o 31 City S ME Centres o 14 Agri Processing Centres o 4 Regional Processing Units o 22 Central Clearing Units 22 C t l Cl i U it • 6 Currency Chests across the country • Internet banking • • 4 Regional & 1 Central Training College 4 Regional & 1 Central Training College • Corporate customers:3000+ • Retail customer base:5 million+ • • Global expansion plans Global expansion plans • Initiated the process for setting up Branch Offices at S ingapore and Representative Office at S hanghai 6
Operating Profile • • Range of products for its Retail and Corporate customers Range of products for its Retail and Corporate customers o Retail – S uite of value added asset & liability products leveraging off a strong technology platform o S o S ME & Agri business ME & Agri business o Corporate – Infrastructure financing, Proj ect loans, Working Capital loans, Loan S yndication & Advisory, financial assistance and advisory for Carbon Credit business o Treasury related products o Fee based products • Operates off an integrated core banking system with all the branches networked o Put in place a state of the art data center and disaster recovery o Put in place a state of the art data center and disaster recovery center o Reduction in EOD processing time; ensures 100%data availability o Complete infrastructure available on demand ensuring scalability p g y 7
Distinctive strengths Description –Privileged corporate banking relationships and unparalleled reputation in Business project finance and infrastructure lending strengths strengths –Sophisticated retail banking operations and capability –Amongst lowest staff strength (with about 13800 employees) Nimble in size –Good branch network without any legacy constraints Good branch network without any legacy constraints –State-of-the-art technology and fully integrated core banking solution rolled Distinctive out across 100% of branches technology technology –Best-in-class ATM and alternate channel technology –Centralized, automated and lean operating architecture for back-office ope at o s, c eque c ea operations, cheque clearing and loan sanctions g a d oa sa ct o s Lean operations Lean operations –Competitive cost structure –Institutionalised ability to rapidly integrate and extract value / synergies from Integration teg at o acq isition based on e perience of t o integrations acquisition based on experience of two integrations capability 8
Highlights (Q4 FY 11 over Q4 FY 10) 157098 180486 1109 543 1167 516 OME IT S D EPOSITS S F EE I NCO A DVANCE O P P ROF 14% 8% 45% 22% 68% 62% PAT NII O A D N P F 138202 167667 762 444 693 318 20.88 16.38 OA ROE 2.10 ASA 0.89 15.52 NIM 1.57 14.59 0.60 CA N R R Q4 11 Q4 10 Q4 11 Q4 10 Q4 11 Q4 10 Q4 11 Q4 10 9
Highlights ( FY 11 over FY 10) 157098 180486 4329 1762 4158 1650 OME IT S D EPOSITS S F EE I NCO A DVANCE O P P ROF 14% 8% 92% 23% 53% 60% PAT NII O A D N P F 138202 167667 2256 1435 2726 1031 10
Profit & Loss ( ` in Crore) Quarter Ended Year Ended Particulars Mar.11 Mar.10 Mar.11 Mar.10 Interest income 5025 4083 18601 15261 Interest expenses 3917 3321 14272 13005 Net Interest income 1109 762 4329 2256 Other Income 676 545 2084 2302 Total income 1784 1307 6413 4558 Operating Expenses 617 613 2255 1831 - Employee Cost 305 286 1046 773 - Other Operating Expenses p g p 313 328 1208 1058 Operating Profit 1167 693 4158 2726 Provisions & contingencies 651 375 2508 1695 - NPAs / Write offs 131 398 1255 723 - Restructured Assets 7 47 123 599 - Others (Invt., Std Asset, etc) 144 98 499 360 - Tax 167 166 735 346 - Deffered Tax 202 -333 -104 -333 Profit After Tax Profit After Tax 516 516 318 318 1650 1650 1031 1031 11
Details of Other Income ( ` in Crore) Quarter Ended Year Ended Particulars Particulars Mar.11 Mar.10 Mar.11 Mar.10 Commission, Excg & Brkg 462 368 1470 1225 Profit on sale of investments 48 67 143 748 Profit/(Loss) on revaluation of investment 4 -8 -20 -52 Profit on sale of Fixed Assets -2 -1 -3 -1 Profit on forex/derivatives 57 26 190 98 Dividend from subsidiaries 0 0 33 18 Recovery from written off cases 73 37 144 121 Other misc income 34 56 126 144 Total * 676 545 2084 2302 543 444 1762 1435 * Fee Based Income 12
Details of Operating Expenses ( ` in Crore) Quarter Ended Year Ended Particulars Mar 11 Mar.11 Mar 10 Mar.10 Mar.11 Mar 11 Mar.10 Mar 10 Staff Cost 305 286 1046 773 Rent, taxes & lighting 58 62 208 178 Printing & stationery 11 8 35 29 Advertisement & Publicity 8 7 46 46 Depreciation 29 32 127 91 Postage, Telegram, Teleph., etc 13 23 51 64 Repairs and maintenance p 20 25 96 84 Insurance 35 30 152 114 Banking expenses 17 13 57 47 Expenses for recovery of write off cases 0 1 4 4 O t Outsourcing expenses i 45 45 55 55 174 174 153 153 Fee and other expenses for borrowing 8 18 29 74 Other expenditure 70 53 229 173 TOTAL 617 613 2255 1831 13
Recommend
More recommend
