Performance Highlights Q2 FY15

Performance HighlightsQ2 FY15

Poised For Growth

12%

Performance Highlights – Sept’14

NET PROFIT

GLOBALADVANCES

NET INTEREST INCOME

CURRENT ACCOUNT /SAVING

ACCOUNT

GLOBAL DEPOSITS

SHARE OF RETAIL & SME OVERALL LOAN BOOK

Basic EPS for Q2 FY14 is Rs.12.24 and Book Value of Rs. 406.44 2

20% 2.3%

26%

19% 20%

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

Business Growth

(`.in Crores)

3ADVANCES ARE GEARED TOWARDS EFFICIENT CAPITAL ALLOCATION

Qtr Sept. 13 Qtr Sept. 14

95,828

107,587

CASA - Domestic

Savings DepositYoY Growth:11.06%

Current Deposit YoY Growth: 18.55%

CASA YoY Growth: 12.27%

CASA Profile

4

Qtr Sept.13 Qtr Sept.14

80,283

89,162

Saving Deposits

(`. in Crores)

CASA Ratio: 28.40 %

Qtr Sept.13 Qtr Sept.14

15,541

18,424

Current Deposits

CONSISTENT FOCUS ON CASA

Market Share

5

Q2FY1

3Q3F

Y13

Q4FY1

3Q1F

Y14

Q2FY1

4Q3F

Y14

Q4FY1

4Q1F

Y15

Q2FY1

5

4.164.08

4.26

4.404.35 4.36

4.47

4.694.60

Deposits

Q2FY1

3Q3F

Y13

Q4FY1

3Q1F

Y14

Q2FY1

4Q3F

Y14

Q4FY1

4Q1F

Y15

Q2FY1

5

3.79

3.70

3.83 3.82

3.963.99

4.174.20 4.19

Advances

STRATEGIC REALIGNMENT IN MARKET SHARE

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

NRO 1,883 1,951 1,964 1,991 5.74

(`. in Crores)

FCNR & NRE Deposits

6REGISTERING FULL ADVANTAGE OF OVERSEAS PRESENCE IN 56 CENTRES

Key Sectors – Domestic Credit

Industry Sept. 13 Mar 14 Jun 14 Sept. 14Y-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

(` in Crores)

7STRATEGIC SHIFT IN COMPOSITION

Particulars Sept. 13 Mar 14 Jun 14 Sept. 14Y-O-Y

Growth % %age to

Domestic Credit

Home Loan 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

Personal Loan 829 927 960 997 20.12 0.37

Others 5,857 7,618 4,742 4,990 -14.79 1.86

Total 25,140 29,600 27,824 29,654 17.96 11.04

(` in Crores)

Retail Credit

862% RETAIL PORTFOLIO IS FULLY SECURED BY MORTGAGES UP FROM 55% IN SEP-13

Industry Sept. 13 Mar 14 Jun 14 Sept. 14Y-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

Others 347 332 327 329 -5.19

Total Priority Sector Advances 71,727 86,161 84,730 90,176 25.72

(`. in Crores)

Priority Sectors

9

*Total Priority Sector (Including RIDF) is at 33.56% of ANBC

EXPANSION OF AGRICULTURE PORTFOLIO 43% TO 47% YoY


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

Basic metal & metal products 14,035 12,953 12,351 13,009 -7.31 4.84

Vehicles, vehicle parts & Transport equipment

2,057 2,021 2,156 2,083 1.27 0.78

Gems & Jewellery 5,099 5,665 5,886 6,532 28.11 2.43Construction 1,858 1,822 1,742 2,023 8.85 0.75Infrastructure 36,297 42,358 43,539 44,136 21.60 16.44Other Industries 24,213 29,001 29,682 28,775 18.84 10.72Total 101,992 113,034 115,163 114,511 12.27 42.64

(`. in Crores)

Key Sectors - Domestic Credit- Industry

10

Particulars Sept. 13 Mar 14 Jun 14 Sept. 14

Power 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

(`. in Crores)

Advances to Infrastructure Sectors

11SEB EXPOSURE BACKED UP GOVT. GUARANTEE

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

(`. in Crores)

Restructured Assets (Domestic)

12PRUDENT MONITORING RESULTED IN LOWER ACCRETION

Standard Restructured Advances Mar 14 Jun 14 Sept. 14 % to Advances

CDR Restructuring 4,811 3,878 4,369 1.09

Domestic 4,672 3,739 4,227 1.57

Foreign 139 139 142 0.11

Other Restructuring 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

Total 13,557 10,602 11,738 2.94

Domestic 11,672 9,205 9,779 3.64

Foreign 1,885 1,397 1,959 1.50

(`. in Crores)

Standard Restructured Advances as on 30th September, 2014 (As per RBI Guidelines)

13STANDARD RESTRUCTURED ADVANCES DOWN FROM 5.19% TO 2.94% YoY

Sector Amount as on 30th September, 2014Infra 3,018Engineering 1,148Steel 878Textiles 584Pharmaceuticals 358Commercial Real Estate 314Sugar 295Education 289Construction 208Food Processing 168Other Metals 149Chemicals 117Agriculture 105Paper & Paper Production 94Ceramic 87Hotels 84Plastic 82Rubber 60Gems & Jewellery 57Trade 42Computer/IT Related 19Services 14Aviation -Automobiles -Misc & Others 1,611

Total 9,779

(`. in Crores)

Sector wise breakup of Standard Restructured Advances(Domestic)-As per RBI guidelines

14

Sale of Assets to ARCs

FY 13-14 FY 14-15

Q1 Q2 Q3 Q4 FY14 Q1 Q2

Net Outstanding of Accounts sold - 300 1,590 2,515 4,405 1,539 106

Of which,

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 -

15

(`. 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

Provision Coverage Ratio % 63.29 58.68 58.10 56.32

Asset Quality

16

(`. 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

Opening Balance 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

Less :413 13 426 995 6 1,001 1,270 -2 1,268 1,042 161 1,203 613 30 643

Total RecoveryRecovery from loan book

391 13 404 798 6 804 418 -2 416 462 161 623 583 30 613

From sale of assets to ARC

22 - 22 197 - 197 852 - 852 580 0 580 30 0 30

Upgradation 309 154 463 96 7 103 38 -1 37 852 182 1,034 594 16 610

Write Off 76 44 120 590 -10 580 480 -11 469 789 26 815 176 -21 155Total reduction 798 211 1,009 1,681 3 1,684 1,788 -14 1,774 2,683 369 3,052 1,383 25 1,408

Less URI -7 -1 -8 -79 -1 -80 2 -11 -9 61 0 61 -32 0 -32Add : Slippages 1,321 148 1,469 1,618 129 1,747 3,274 336 3,610 3,630 147 3,777 2,788 183 2,971

Closing Balance 8,774 1,106 9,880 8,790 1,233 10,023 10,274 1,594 11,868 11,160 1,372 12,532 12,597 1,530 14,127

(`.. in Crores)

Movement of NPA (Q-o-Q)

17

Sector Sept. 13 Mar 14 Jun-14 Sept. 14Sept. 13

(% to GNPA)

Mar 14 (% to

GNPA)

Sept.-14 (% to GNPA)

Agriculture 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

(`. in Crores)

Sector wise NPA

18

Domestic

Sector Sept. 13 Mar 14 Jun-14 Sept. 14Sept. 13

(% to GNPA)

Mar 14 (% to

GNPA)

Sept.-14 (% to GNPA)

Trade 248 313 319 464 22.42 19.64 30.33Manufacturing 276 434 282 362 24.95 27.23 23.66Real Estate 194 227 236 232 17.54 14.24 15.16Others 388 620 535 472 35.08 38.90 30.85Total 1,106 1,594 1,372 1,530

(Rs. in Crores)Overseas

Sept. 13 Mar 14 Sept. 14

AFS HTM HFT Total AFS HTM HFT Total AFS HTM HFT Total

1. SLR Investments 9,702 74,115 44 83,861 15,470 76,452 20 91,943 13567 86335 0 99902

Of Which:

Government Securities 9,702 73,959 44 83,705 15,470 76,296 20 91,787 13567 86179 0 99746

Other Approved Securities

- 156 - 156 - 156 - 156 0 156 0 156

M Duration 1.27 5.07 1.53 4.63 3.51 4.93 6.22 4.69 3.84 4.89 0 4.75

2. Non SLR Investments 17,945 1,148 - 19,093 11,744 1,198 - 12,942 14606 1288 17 15911

M Duration 1.53 0.57 - 1.52 3.16 4.62 - 3.20 3.97 0.58 0 3.89

Total 27,646 75,264 44 1,02,954 27,214 77,650 20 1,04,885 2817 87623 17 115813

(`.. in Crores)

Investments (Domestic)

19INVESTMENT PORTFOLIO WAS BUILT UP IN THE RISING RATES SCENARIO

Particulars

Quarter ended Y-O-Y Growth %

Sept. 13 Mar 14 Jun 14 Sept. 14

Interest Income 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 12.17c. Other Interest Income 479 894 486 611 27.56

Interest Expended 6,713 7,313 7,618 8062 20.10a. 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 21627.06

d. Others 333 198 -3 0 -100.00

Net Interest Income 2,527 3,047 2,686 3031 19.94

(`. in Crores)

Net Interest Income (Quarter ended)

20HEALTHY INCREASE IN NII OF 20% UP FROM 15% YoY

(`. in Crores)

Non Interest Income (Quarter ended)

21


Growth %

Commission, Exchange & Brokerage 351 408 427 397 13.11

Profit from Sale of Investments 61 83 243 153 150.82

Profit from Exchange Transactions 215 83 162 196 -8.84

Recovery In W/o accounts 346 168 46 104 -69.94

Other Non Interest Income 127 172 146 156 22.83

Total Non Interest Income 1,100 914 1,024 1,006 -8.55

TRANSACTION & MERCHANT BANKING WILL PROVIDE TRACTION TO NON-INTEREST INCOME

Income Sept. 13 Mar. 14 Jun 14 Sept. 14 Y-O-Y Growth %

1. Total Income 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

2. Total Expenditure 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

3. Operating Profit 2,103 1,996 2,060 2,136 1.33

(`. in Crores)

Profitability (Quarter ended)

22

Income Sept. 13 Mar 14 Jun 14 Sept. 14Y-O-Y

Growth %

Operating Profit 2,103 1,996 2,060 2,136 1.57

Provisions

Prov. for Taxation 248 -109 363 386 55.65

Prov. For B&D 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

NPV Prov./ Other Prov. 85 187 63 44 -48.24

Total Provisions 1,481 1,439 1,255 1,350 -8.85

Net Profit 622 558 806 786 26.37

MProvisions (Quarter ended)

(`. in Crores)

23

Sept. 13 Mar 14 Sept. 14

Indian Foreign Global Indian Foreign Global Indian Foreign Global

Cost of Deposits7.21 0.99 5.72 7.07 0.90 5.51 7.33 0.80 5.75

Cost of Funds6.67 1.80 5.38 6.68 1.58 5.27 6.85 1.46 5.36

Yield on Advances11.41 2.47 8.53 11.02 2.60 8.29 11.49 2.70 8.60

Yield on Investments8.39 3.76 8.16 8.30 3.99 8.09 8.31 3.80 8.10

Yield on Funds9.08 2.78 7.40 9.28 2.71 7.47 9.16 2.71 7.37

Interest Spread2.40 0.98 2.02 2.60 1.13 2.20 2.31 1.25 2.01

NIM2.81 1.02 2.29 2.74 1.19 2.28 2.73 1.32 2.31

Cost to Income Ratio44.86 21.61 42.04 51.96 35.10 49.61 52.74 16.90 47.10

Return on Assets (ROA)0.44 0.57 0.48 0.33 0.56 0.39 0.42 0.66 0.49

Return on Equity10.86 9.12 12.21

Book Value Per Share (Rs.) 388.95

381.69 406.44

Earning Per Share (Rs.)10.43 8.68 12.24

NKey Financial Ratios – Quarter ended

24

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

Capital Adequacy -Basel II

(`. in Crores)

25

Particulars Sept. 13 Mar 14 Jun 14 Sept. 14

Capital Adequacy - Basel IIICET1 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

(`. in Crores)

26AT1 Rs.2,500 CRORE RAISED IN AUGUST 2014

Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15

170.61

178.13182.50

187.59189.73

Business Per branch (`. in Crores)

Productivity

27


17.47

18.44

19.63 19.7519.97

Business Per employee

CONSISTENT INCREASE IN PRODUCTIVITY


115,868

123,207

130,426 130,977 130,587


1,674 1,697 1,766 1,771 1,846

1,224 1,239 1,258 1,273 1,302 770 768 789 792 811 811 818 833 839 849

4,479 4,522 4,646 4,675 4,808

Rural Semi-urban Urban Metro


15,287 16,106

16,924 17,640

22,124

Multiple Delivery Channel

Branch Expansion

Debit Card (‘000)

ATM Roll-Out


2,905 3,362

4,225 5,032

5,747

28

Credit Card


153,437

157,506 158,922

162,536 162,579

Multiple Delivery Channel

Internet Retail (‘000)

Mobile Banking Users

Internet Corporate


48,371 50,048

52,353

54,333

56,385

29


2,201 2,292 2,397 2,503 2,706

FY12 FY13 FY14 Q1FY15 Q2FY15

812

23

28

33No. of A/Cs through BC

Channel

Financial Inclusion

30


14 198

1,213

1,889

2,613 BC Channel Transactions


14911598

1766 17711846

Rural Branches


10,008 11,239

14,060 14,665

16,334 Unbanked Villages Covered


25,675

39,163

57,676 61,900 67,905


2064

3,613

5162 54005,683

FLCs – No. Of outdoor activities undertakenRSETI – No. of Candidates Trained

Central Govt./State Govt.

66.70%

Mutual Funds/UTI1.71%

Financial Institu-tions/Banks

0.19%

Insurance Com-panies14.03%

FII & Other Foreign Holding10.03%

Bodies Corporate1.53%

Individuals5.81%

30th September, 2014

Shareholding Pattern

31

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.

Bank received the Award CIO 100 2014 for the product Startoken NG

Awards & Recognition

32

Bank received Skoch Group Financial Inclusion Deepening Award – June 2014

Bank won IT excellence award by ETNOW and VMW are for effectively implementing Virtualization in the Bank.

Growth Drivers for FY15

GROWTH DRIVERS

SCALING UP RETAIL & SME LOANS

BUOYANCY IN FEE INCOME

PRE-EMPTIVE & PREVENTIVE NPA MANAGEMENT

IMPROVED ENGAGEMENT WITH CUSTOMERS

33

TACTICAL CHANNEL IMPROVEMENTS

34

Update on Initiatives

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.

RETAIL & SME

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

35 35

Update on Initiatives Contd….

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.

IMPROVED ENGAGEMENT WITH CUSTOMER

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.

36

Way Forward

Loan Growth

Net Interest Margin

Fee Income Growth

Gross NPA

Net NPA

CASA Growth

Additional Branches

14% to 16%

2.75% (Domestic)1.5% (International)

20%

Below 3%

Below 2%

20%

300

Additional ATMs 1000

Provision Coverage Ratio 58 to59 %

THANK YOU!

37

Performance Highlights Q2 FY15

Documents

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