Performance Highlights
Q2 FY15
Poised For Growth
Performance Highlights – Sept’14
NET PROFIT
26%
NET INTEREST
INCOME
20%
GLOBAL
ADVANCES
GLOBAL
DEPOSITS
19%
20%
CURRENT ACCOUNT
/SAVING ACCOUNT
SHARE OF RETAIL & SME
OVERALL LOAN BOOK
12%
Basic EPS for Q2 FY14 is Rs.12.24 and Book Value of Rs. 406.44
2.3%
2
Business Growth
(`.in Crores)
Business Mix
(Deposits +
Advances)
Sept 13
Mar 14
Jun14
Sept 14
Y-O-Y
Growth %
Global Business
7,69,105
8,53,202
8,82,441
917,720
19.32
Domestic
5,55,007
6,27,850
6,43,328
656,923
18.36
Foreign
2,14,098
2,25,352
2,39,113
260,797
21.81
Global Deposits
4,32,282
4,76,974
5,00,875
518,432
19.93
Domestic
3,22,193
3,63,590
3,81,454
388,377
20.54
Foreign
1,10,089
1,13,384
1,19,421
130,055
18.14
Global Advances
3,36,823
3,76,228
3,81,566
399,288
18.55
Domestic
2,32,814
2,64,260
2,61,874
268,546
15.35
Foreign
1,04,009
1,11,968
1,19,692
130,742
25.70
ADVANCES ARE GEARED TOWARDS EFFICIENT CAPITAL ALLOCATION
3
CASA Profile
(`. in Crores)
CASA - Domestic
107,587
CASA Ratio:
28.40 %
CASA
YoY Growth: 12.27%
Current Deposit
YoY Growth: 18.55%
Savings Deposit
YoY Growth:11.06%
95,828
Qtr Sept. 13
Qtr Sept. 14
Saving Deposits
Current Deposits
89,162
18,424
80,283
15,541
Qtr Sept.13
Qtr Sept.14
Qtr Sept.13
CONSISTENT FOCUS ON CASA
Qtr Sept.14
4
Market Share
Deposits
Advances
4.69
4.17
4.60
4.20 4.19
4.47
4.40
4.35 4.36
3.96
3.99
4.26
4.16
3.83 3.82
3.79
4.08
3.70
STRATEGIC REALIGNMENT IN MARKET SHARE
5
FCNR & NRE Deposits
(`. in Crores)
Particulars
Sept. 13
Mar 14
Jun 14
Sept. 14
Y-O-Y
Growth %
FCNR (B)
10,056
17,822
18,372
18,855
87.50
NRE
11,464
11,942
12,385
13,237
15.47
NRE SB
2,076
2,066
2,100
2,124
2.31
NRE TD
9,388
9,876
10,285
11,113
18.37
1,883
1,951
1,964
1,991
5.74
NRO
REGISTERING FULL ADVANTAGE OF OVERSEAS PRESENCE IN 56 CENTRES
6
Key Sectors – Domestic Credit
(` in Crores)
Industry
Sept. 13
Mar 14
Jun 14
Sept. 14
Y-O-Y
Growth
%
% to Domestic
Credit
Sept.13
Sept.14
Agriculture
30,715
36,071
34,801
37,994
23.70
13.19
14.15
MSME (Priority
& Non- Priority)
39,535
45,081
45,282
48,391
22.40
16.98
18.02
Retail
25,140
29,600
27,824
29,654
17.96
10.08
11.04
Corporate &
Others
137,425
153,508
153,967
152,507
10.97
59.03
56.79
Total
232,815
264,260
261,874
268,546
15.35
100.00
100.00
STRATEGIC SHIFT IN COMPOSITION
7
Retail Credit
(` in Crores)
Particulars
Sept. 13
Mar 14
Jun 14
Sept. 14
Y-O-Y
Growth %
%age to
Domestic
Credit
11,400
13,081
13,902
14,913
30.82
5.55
Mortgage
Loan
2,330
2,971
3,110
3,424
46.95
1.28
Auto Loan
2,102
2,351
2,398
2,475
17.75
0.92
Education
Loan
2,622
2,652
2,712
2,855
8.89
1.06
829
927
960
997
20.12
0.37
5,857
7,618
4,742
4,990
-14.79
1.86
25,140
29,600
27,824
29,654
17.96
11.04
Home Loan
Personal
Loan
Others
Total
62% RETAIL PORTFOLIO IS FULLY SECURED BY MORTGAGES UP FROM 55% IN SEP-13
8
Priority Sectors
(`. in Crores)
Industry
Sept. 13
Mar 14
Jun 14
Sept. 14
Y-O-Y
Growth %
Agriculture
30,715
40,211
38,941
42,134*
37.18
MSE
31,081
35,504
35,272
37,185
19.64
Housing Loan
7,039
7,517
7,535
7,731
9.83
Educational Loan
2,545
2,597
2,655
2,797
9.90
347
332
327
329
-5.19
71,727
86,161
84,730
90,176
25.72
Others
Total Priority Sector
Advances
*Total Priority Sector (Including RIDF) is at 33.56% of ANBC
EXPANSION OF AGRICULTURE PORTFOLIO 43% TO 47% YoY
9
Key Sectors - Domestic Credit- Industry
(`. in Crores)
Particulars
Sept. 13
Mar 14
Jun 14
Sept. 14
Y-O-Y
Growth %
% to
Domestic
Advances
Textiles
9,460
9,716
9,414
9,545
0.90
3.55
Chemicals & Chemical
products
6,364
6,772
7,773
5,803
-8.81
2.16
Rubber, Plastic & their
products
2,609
2,726
2,620
2,604
-0.18
0.97
14,035
12,953
12,351
13,009
-7.31
4.84
2,057
2,021
2,156
2,083
1.27
0.78
5,099
1,858
36,297
24,213
101,992
5,665
1,822
42,358
29,001
113,034
5,886
1,742
43,539
29,682
115,163
6,532
2,023
44,136
28,775
114,511
28.11
8.85
21.60
18.84
12.27
2.43
0.75
16.44
10.72
42.64
Basic metal & metal
products
Vehicles, vehicle parts
& Transport
equipment
Gems & Jewellery
Construction
Infrastructure
Other Industries
Total
10
Advances to Infrastructure Sectors
(`. in Crores)
Particulars
Power
Sept. 13
Mar 14
Jun 14
Sept. 14
22,885
26,847
28,172
29,072
- SEBs
10,196
11,355
11,878
12,797
- Others
12,689
15,541
16,294
16,275
Roads and ports
8,664
9,686
10,409
10,158
Telecom
1,471
1,196
1,215
1,111
Other Infrastructure
3,277
4,629
3,743
3,795
Total
36,297
42,358
43,539
44,136
SEB EXPOSURE BACKED UP GOVT. GUARANTEE
11
Restructured Assets (Domestic)
(`. in Crores)
Quarter ended
Amount Restructured
FY 11-12
7,447
FY 12-13
8,447
FY 13-14
5,150
June, 2014
1,631
September, 2014
1,358
PRUDENT MONITORING RESULTED IN LOWER ACCRETION
12
Standard Restructured Advances as on 30th September, 2014
(As per RBI Guidelines)
(`. in Crores)
Standard Restructured
Advances
CDR Restructuring
Mar 14
Jun 14
Sept. 14
% to Advances
4,811
3,878
4,369
1.09
4,672
3,739
4,227
1.57
139
139
142
0.11
8,746
6,723
7,369
1.85
Domestic
7,000
5,466
5,552
2.07
Foreign
1,746
1,257
1,817
1.39
13,557
10,602
11,738
2.94
11,672
9,205
9,779
3.64
1,885
1,397
1,959
1.50
Domestic
Foreign
Other Restructuring
Total
Domestic
Foreign
STANDARD RESTRUCTURED ADVANCES DOWN FROM 5.19% TO 2.94% YoY
13
Sector wise breakup of Standard Restructured Advances(Domestic)
-As per RBI guidelines
Sector
Infra
Engineering
Steel
Textiles
Pharmaceuticals
Commercial Real Estate
Sugar
Education
Construction
Food Processing
Other Metals
Chemicals
Agriculture
Paper & Paper Production
Ceramic
Hotels
Plastic
Rubber
Gems & Jewellery
Trade
Computer/IT Related
Services
Aviation
Automobiles
Misc & Others
Total
Amount as on 30th September, 2014
(`. in Crores)
3,018
1,148
878
584
358
314
295
289
208
168
149
117
105
94
87
84
82
60
57
42
19
14
1,611
9,779
14
Sale of Assets to ARCs
(`. in Crores)
FY 13-14
FY 14-15
Q1
Q2
Q3
Q4
FY14
Q1
Q2
-
300
1,590
2,515
4,405
1,539
106
Prudential written off (PWO)
-
114
568
718
1400
70
88
Existing Gross NPAs sold
-
143
428
1,409
1,980
580
18
Current Year NPAs sold
-
43
594
388
1,025
-
-
Sale of SMA-2
-
-
-
-
-
889
-
Net Outstanding of Accounts
sold
Of which,
15
Asset Quality
(`. in Crores)
Sept.-13
Mar-14
June-14
Sept.-14
Gross NPA
9,880
11,868
12,532
14,127
Net NPA
6,157
7,417
8,042
9,101
Gross NPA %
2.93
3.15
3.28
3.54
Net NPA %
1.85
2.00
2.14
2.32
63.29
58.68
58.10
56.32
Provision Coverage Ratio %
16
Movement of NPA (Q-o-Q)
(`.. in Crores)
Sep 2013
Dec 2013
Mar 2014
Jun 2014
Sept. 2014
Indian Foreign Total
Indian Foreign Total
Indian Foreign Total
Indian Foreign
Total
Indian Foreign
Total
82,44
1,168
9,413
8,774 1,106
9,880 8,790 1,233 10,023 10,274 1,594 11,868 11,160 1372 12,532
413
13
426
995
6
391
13
404
798
6
804
418
-2
416
22
-
22
197
-
197
852
-
Upgradation
309
154
463
96
7
103
38
Write Off
76
44
120
590
-10
580
480
Total
reduction
798
211
1,009
1,681
3
Less URI
-7
-1
-8
-79
-1
1,321
148
1,469
1,618
129
8,774
1,106
9,880
8,790
1,233
Opening
Balance
Less :
Total
Recovery
Recovery
from loan
book
From sale of
assets to
ARC
Add :
Slippages
Closing
Balance
1,001 1,270
1,684 1,788
-80
2
1,747 3,274
161
1,203
613
30
643
462
161
623
583
30
613
852
580
0
580
30
0
30
-1
37
852
182
1,034
594
16
610
-11
469
789
26
815
176
-21
155
25
1,408
0
-32
183
2,971
-2
-14
-11
336
1,268 1,042
1,774 2,683
-9
61
3,610 3,630
369
0
147
3,052 1,383
61
-32
3,777 2,788
10,023 10,274 1,594 11,868 11,160 1,372 12,532 12,597 1,530 14,127
17
Sector wise NPA
Domestic
Sector
Agriculture
(`. in Crores)
Sept. 13
Mar 14
Jun-14
Sept. 14
Sept. 13
(% to
GNPA)
Mar 14
(% to
GNPA)
Sept.-14
(% to
GNPA)
744
663
696
911
8.48
6.45
7.23
Industry
5,235
7,094
7,571
8,449
62.39
69.04
67.07
Services
2,497
2,318
2,687
2,911
25.76
21.58
23.11
Retail
298
199
206
326
3.40
1.94
2.59
Total
8,774
10,274
11,160
12,597
(Rs. in Crores)
Overseas
Sector
Sept. 13
Mar 14
Jun-14
Sept. 14
Sept. 13
(% to
GNPA)
Mar 14
(% to
GNPA)
Sept.-14
(% to
GNPA)
Trade
248
313
319
464
22.42
19.64
30.33
Manufacturing
276
434
282
362
24.95
27.23
23.66
Real Estate
194
227
236
232
17.54
14.24
15.16
Others
388
620
535
472
35.08
38.90
30.85
1,106
1,594
1,372
1,530
Total
18
Investments (Domestic)
(`.. in Crores)
Sept. 13
AFS
1. SLR
Investments
HTM
Mar 14
HFT
Total
AFS
HTM
Sept. 14
HFT
Total
AFS
HTM
HFT
Total
9,702 74,115
44
83,861 15,470
76,452
20
91,943
13567 86335
0
99902
9,702 73,959
44
83,705 15,470
76,296
20
91,787
13567 86179
0
99746
Of Which:
Government
Securities
Other
Approved
Securities
M Duration
2. Non SLR
Investments
M Duration
Total
-
156
-
156
-
156
-
156
0
156
0
156
1.27
5.07
1.53
4.63
3.51
4.93
6.22
4.69
3.84
4.89
0
4.75
17,945 1,148
-
19,093 11,744
1,198
-
12,942
14606
1288
17
15911
3.16
4.62
-
3.20
3.97
0.58
0
3.89
44 1,02,954 27,214
77,650
20
1,04,885
2817 87623
17
115813
1.53
0.57
27,646 75,264
-
1.52
INVESTMENT PORTFOLIO WAS BUILT UP IN THE RISING RATES SCENARIO
19
Net Interest Income (Quarter ended)
(`. in Crores)
Quarter ended
Particulars
Sept. 13
Interest Income
Mar 14
Jun 14
Sept. 14
Y-O-Y
Growth %
9,240
10,360
10,304
11093
20.05
a. From Advances
6,632
7,281
7,537
8094
22.04
b. From Investments
2,129
2,185
2,281
2388
12.17
c. Other Interest
Income
Interest Expended
479
894
486
611
6,713
7,313
7,618
8062
20.10
a. On Deposits
5,966
6,320
6,777
7289
22.18
b. On Borrowings
244
577
643
557
128.28
c. Subordinated Bonds
170
218
201
216
d. Others
333
198
-3
0
-100.00
2,527
3,047
2,686
3031
19.94
Net Interest Income
HEALTHY INCREASE IN NII OF 20% UP FROM 15% YoY
27.56
27.06
20
Non Interest Income (Quarter ended)
(`. in Crores)
Particulars
Commission, Exchange
& Brokerage
Profit from Sale of
Investments
Profit from Exchange
Transactions
Recovery In W/o
accounts
Other Non Interest
Income
Total Non Interest
Income
Sept. 13
Mar 14
Jun 14
Sept. 14
Y-O-Y
Growth %
351
408
427
397
13.11
61
83
243
153
150.82
215
83
162
196
-8.84
346
168
46
104
-69.94
127
172
146
156
22.83
1,100
914
1,024
1,006
-8.55
TRANSACTION & MERCHANT BANKING WILL PROVIDE TRACTION TO NON-INTEREST INCOME
21
Profitability (Quarter ended)
(`. in Crores)
Income
Sept. 13
Mar. 14
Jun 14
Sept. 14
Y-O-Y
Growth %
10,340
11,274
11,329
12,099
17.01
a. Interest Income
9,240
10,360
10,304
11,093
20.05
b. Non Interest Income
1,100
914
1,024
1,006
-8.55
8,237
9,278
9,269
9,963
21.01
a. Interest expended
6,713
7,313
7,618
8,062
20.10
b. Operating Expenses
1,524
1,965
1,651
1,901
25.07
2,103
1,996
2,060
2,136
1.33
1. Total Income
2. Total Expenditure
3. Operating Profit
22
M
Provisions (Quarter ended)
(`. in Crores)
Income
Operating Profit
Sept. 13
Mar 14
Jun 14
Sept. 14
Y-O-Y
Growth %
2,103
1,996
2,060
2,136
1.57
248
-109
363
386
55.65
1,035
1,135
857
792
-23.48
Prov. For Standard Assets
158
63
65
88
-44.30
Prov. For Depreciation on
Investment
-45
163
-93
40
-188.89
85
187
63
44
-48.24
1,481
1,439
1,255
1,350
-8.85
622
558
806
786
26.37
Provisions
Prov. for Taxation
Prov. For B&D
NPV Prov./ Other Prov.
Total Provisions
Net Profit
23
N
Key Financial Ratios – Quarter ended
Sept. 13
Indian
Foreign
Mar 14
Global
Sept. 14
Indian
Foreign
Global
Indian
Foreign
Global
Cost of Deposits
7.21
0.99
5.72
7.07
0.90
5.51
7.33
0.80
5.75
Cost of Funds
6.67
1.80
5.38
6.68
1.58
5.27
6.85
1.46
5.36
11.41
2.47
8.53
11.02
2.60
8.29
11.49
2.70
8.60
8.39
3.76
8.16
8.30
3.99
8.09
8.31
3.80
8.10
9.08
2.78
7.40
9.28
2.71
7.47
9.16
2.71
7.37
2.40
0.98
2.02
2.60
1.13
2.20
2.31
1.25
2.01
2.81
1.02
2.29
2.74
1.19
2.28
2.73
1.32
2.31
44.86
21.61
42.04 51.96
35.10
49.61
52.74
16.90
47.10
0.44
0.57
0.33
0.56
0.39
0.42
0.66
0.49
Yield on Advances
Yield on Investments
Yield on Funds
Interest Spread
NIM
Cost to Income Ratio
Return on Assets (ROA)
Return on Equity
Book Value Per Share
(Rs.)
Earning Per Share (Rs.)
0.48
10.86
388.95
10.43
9.12
12.21
381.69
406.44
8.68
12.24
24
Capital Adequacy -Basel II
(`. in Crores)
Basel - II
Particulars
Sept. 13
Mar 14
Jun14
Sept. 14
Capital Adequacy - Basel II
Tier I Capital
23,040
26,248
26,233
28,016
Tier II Capital
9,517
11,103
11,320
12,169
Total Capital
32,557
37,351
37,553
40,184
Total Assets
513,042
573,190
597,504
606,240
Risk Weighted Assets
299,777
347,014
348,170
349,518
CRAR - Tier I (%)
7.69
7.56
7.53
8.02
CRAR - Tier II (%)
3.17
3.20
3.26
3.48
CRAR (%)- Basel II
10.86
10.76
10.79
11.50
25
Capital Adequacy – Basel-III
(`. in Crores)
Particulars
Sept. 13
Mar 14
Jun 14
Sept. 14
CET1 Capital
21625
23,771
23,902
24,023
AT1 Capital
1812
1,389
1,435
3,948
Tier I Capital
23438
25,160
25,337
27,971
Tier II Capital
9126
9,499
9,567
10,507
Total Capital
32564
34,659
34,904
38,478
Total Assets
513,042
573,190
597,504
606,240
Risk Weighted Assets
302,253
347,702
349,682
350,743
CRAR – CET1 (%)
7.15%
6.84
6.84
6.85
CRAR – AT1 (%)
0.60%
0.40
0.41
1.13
CRAR – Tier I (%)
7.75%
7.24
7.25
7.97
CRAR - Tier II (%)
3.02%
2.73
2.73
3.00
Capital Adequacy Basel III (%)
10.77
9.97
9.98
10.97
Capital Adequacy - Basel III
AT1 Rs.2,500 CRORE RAISED IN AUGUST 2014
26
Productivity
Business Per branch
Business Per employee
187.59
19.63
19.75
19.97
(`. in Crores)
189.73
182.5
178.13
170.61
18.44
17.47
Q2FY14
Q3FY14
Q4FY14
Q1FY15
Q2FY15
Q2FY14
Q3FY14
CONSISTENT INCREASE IN PRODUCTIVITY
Q4FY14
Q1FY15
Q2FY15
27
Multiple Delivery Channel
Branch Expansion
Rural
Semi-urban
ATM Roll-Out
Urban
Metro
4,479
4,522
4,646
4,675
4,808
811
770
818
768
833
789
839
792
849
811
1,224
1,239
1,258
1,273
1,302
1,674
1,697
1,766
1,771
1,846
Q2FY14
Q3FY14
Q4FY14
Q1FY15
Q2FY15
5,747
5,032
4,225
2,905
Q2FY14
3,362
Q3FY14
Debit Card (‘000)
Q4FY14
Q1FY15
Q2FY15
130,426
130,977
130,587
Q4FY14
Q1FY15
Q2FY15
Credit Card
22,124
123,207
15,287
16,106
16,924
17,640
115,868
28
Q2FY14
Q3FY14
Q4FY14
Q1FY15
Q2FY15
Q2FY14
Q3FY14
Multiple Delivery Channel
Internet Corporate
Internet Retail (‘000)
2,201
2,292
2,397
2,503
2,706
56,385
54,333
52,353
48,371
Q2FY14
Q3FY14
Q4FY14
Q1FY15
Q2FY15
Q2FY14
50,048
Q3FY14
Q4FY14
Q1FY15
Q2FY15
Mobile Banking Users
157,506
162,536
162,579
Q1FY15
Q2FY15
158,922
153,437
Q2FY14
Q3FY14
Q4FY14
29
Financial Inclusion
Rural Branches
1766
1771
Unbanked Villages Covered
1846
14,060
16,334
BC Channel Transactions
2,613
14,665
1,889
1598
1491
1,213
11,239
10,008
14
FY12
FY13
FY14
Q1FY15 Q2FY15
RSETI – No. of Candidates Trained
57,676
61,900
FY12
FY14
Q1FY15 Q2FY15
FLCs – No. Of outdoor activities undertaken
67,905
5162
5400 5,683
FY12
FY13
FY14 Q1FY15 Q2FY15
No. of A/Cs through BC
Channel
33
28
23
3,613
39,163
12
25,675
FY12
FY13
198
2064
FY13
FY14
Q1FY15 Q2FY15
FY12
8
FY13
FY14 Q1FY15 Q2FY15
FY12
FY13
FY14
Q1FY15 Q2FY15
30
Shareholding Pattern
30th September, 2014
Bodies
Corporate
FII & Other Foreign 1.53%
Individuals
5.81%
Holding
10.03%
Insurance
Companies
14.03%
Financial
Institutions/Ba
nks
0.19% Mutual
Funds/UTI
1.71%
Central
Govt./State
Govt.
66.70%
31
Awards & Recognition
Bank received Skoch Group Financial Inclusion Deepening Award – June 2014
Bank received the Award CIO 100 2014 for the product Startoken NG
Bank won IT excellence award by ETNOW and VMW are for effectively implementing
Virtualization in the Bank.
Financial Inclusion & Payment System Award by Elets Media at New Delhi at the hands of
Minister of Rural Development.
Bank has received Skoch award 2013 for IT innovation.
Bank has received “Best Banker” award at the India SME excellence Awards-2013, for
exemplary contribution in Banking Sector.
32
Growth Drivers for FY15
G
R
O
W
T
H
D
R
I
V
E
R
S
SCALING UP RETAIL & SME LOANS
BUOYANCY IN FEE INCOME
PRE-EMPTIVE & PREVENTIVE NPA MANAGEMENT
IMPROVED ENGAGEMENT WITH CUSTOMERS
TACTICAL CHANNEL IMPROVEMENTS
33
Update on Initiatives
RETAIL & SME
 Retail Business Centers (RBC) are 50 in operational, more than double, whereas
SME City Centre 28 in operational, more than 50% higher in compared to last year
 Loan portfolio growth in Retail has been 18% YoY, whereas schematic retail has
grown by 28%.
 IN Micro and small enterprises have registered a growth of 21.1% YoY
Bank has extended 24,425 units secured under CGTMSE amounting to Rs. 1607 Cr
during 1st Half.
Bank has entered with Maruti, Tata Motors and Ashok Leyland for financing their
dealers.
BUYONANCY IN FEE INCOME
 A Sharp increase is expected in Fee Income during 2nd Half Year of this FY.
 Transaction banking as gathered momentum
 Merchant banking subsidiary has been floated.
 Movement in yield curve has been favorable
34
Update on Initiatives Contd….
PRE-EMPTIVE AND PREVENTIVE NPA MANAGEMENT
 In 1st Half, Recovery in NPA accounts excluding Sale to ARC has been more
than whole of last year.
 Bank has revamped its risk assessment systems in all areas of risk and has also
built in predictive systems for indentifying the weakness in advances.
IMPROVED ENGAGEMENT WITH CUSTOMER
 In 1st Half, we have added 1,522 ATMs (FY14: 4225), 107 Future-ready branches
(FY 14:130 ) and 195 e-galleries (FY14:55).
 First PSU bank to launch Instant-Money-Transfer on all ATMs nationwide.
 First PSU bank to launch Face-book Page.
 Over 35 Lakhs accounts have been opened under PMJDY.
35 35
Way Forward
Loan Growth
14% to 16%
Net Interest Margin
2.75% (Domestic)
1.5% (International)
Fee Income Growth
20%
Gross NPA
Below 3%
Net NPA
Below 2%
Provision Coverage Ratio
58 to59 %
CASA Growth
20%
Additional Branches
300
Additional ATMs
1000
36
THANK YOU!
37