INDIAN OVERSEAS BANK - Quarter Ended March 31, 2018 Loss is due to provisions and not due to operations


INDIAN OVERSEAS BANK

    






Loss is due to provisions and not due to operations

Performance Highlights For The Quarter Ended March 31, 2018 - YoY

(1)     Total businessstood atRs. 3,67,831 crore as on 31stMarch2018 as against Rs. 3,68,119crore as on 31st March 2017.

(2)     Total depositsincreased to Rs. 2,16,832crore as on 31stMarch 2018 as against Rs. 2,11,343crore  as on 31stMarch 2017. The Bank has reduced the concentration of Bulk Deposits and increased Retail Term Deposits to have a stable deposit profile and reduce the cost of funds.

(3)     CASA of the Bank improved to 36.75% as on 31st March 2018 as against 36.09% as on 31st March 2017. Total CASA has increased from Rs. 76269 crores as on 31.03.2017 to Rs.79678crores as on 31.03.2018,SB registered 5.35% YoY growth as at 31st March ‘18 over 31st March ‘17.

(4)     Gross Advances stood at Rs.1,50,999 crore as on 31st March 2018 as against Rs. 1,56,776 crore  as on 31stMarch 2017. The Bank has rebalanced the credit portfolio with RAM’s (Retail, Agri and MSME) share of total domestic advances improving from 58.74% to  64.82% YoY (March ’18 over March ’17).

(5)     MSME Segmentgrew by 6.71% YoY (March ’18 over March ‘17).

(6)     Retail Segment grew by 17.98% YoY (March ’18 over March ’17).

(7)     Core Retail Advances (Housing Loans, Vehicle Loans, Clean Loans, Education Loans, Mortgage Loans) grew by 26.26% YoY.

(8)     Priority Sector Lending as a % of ANBC as on 31.03.2018 is 47.47% as against the requirement of 40%. Agriculture as a % of ANBC as on 31.03.2018 is  20.23% as against the requirement of 18%.

(9)     Operating Profitfor Quarter ended 31st March 2018 stood at                Rs.1129.15crore as against Rs. 1040.98 crore for the quarter ended 31st March 2017, registering growth of  8.47%

(10)  Net Profit: Net Loss for the quarter ended 31stMarch 2018 is Rs. 3606.73crore as against Rs. 646.66 crore for the quarter ended 31st March 2017mainly due to provisioning requirements including higher provisions on account of RBI guidelines on revised framework on Resolution of Stressed Assets. Pursuant to the revised framework, the Bank has classified the specific restructured accounts in accordance with extant IRAC norms and made a provision of Rs.799.37 crores towards such accounts during the current quarter.

(11)  Total income for the quarter ended 31st March 2018 is Rs.5814crore as against Rs.5662crore for the quarter ended 31stMarch 2017 registering a growth of 2.68% YoY.

(12)  Interest income stood at Rs.4828 crore for the quarter ended 31st March 2018 as against Rs. 4630 crore for the quarter ended 31st March 2017 registering a growth of 4.28% YoY.

(13)  Non-interest income is Rs. 987 crore for the quarter ended
31st March 2018 as against Rs. 1032 crore for the quarter ended  31stMarch 2017.

(14)  Total Expenditureincreasedfrom Rs. 4621 crore for the quarter ended 31st March 2017 to Rs. 4685 crore for the quarter ended 31st March 2018.

(15)  NPA MANAGEMENT: Gross NPA as at 31st March 2018 is at                                        Rs.38180crore with ratio of 25.28% as against Rs.35098   crore with ratio of 22.39% as on 31stMarch 2017, with the fresh slippage due to revised frameworkof stressed asset of Rs. 3629 crore.


(16)  Total recovery of Rs. 5726 crore achieved for quarter ended March ’18as against the recovery of Rs.2729 crore during quarter ended March ‘17 while the total slippage for quarter ended March ’18stood at Rs. 9868 crore mainly on account of the impact of RBI guidelines on revised framework on Resolution of Stressed Assets.Pursuant to the revised framework, the Bank has classified the specific restructured accounts in accordance with extant IRAC norms.

(17)  Net NPA is at Rs. 20400crore with ratio of 15.33 % as on 31st March 2018 as against Rs. 19749 crore with ratio of13.99% as on 31st March 2017.

(18)  Provision Coverage Ratiois improved to 59.45% as on 31st March 2018 as against 53.63% as on 31st March 2017.

Performance Highlights For The Quarter Ended March 31, 2018 QoQ (Sequential)

(1) Total business stood at Rs. 3,67,831 croreas on 31stMarch 2018 as against Rs.  3,68,128  crore as on 31st December  2017.

(2) Total deposits stood at Rs. 2,16,832crore as on 31st March 2018 as against Rs. 2,16,592crore as on 31st December 2017.

(3) CASA of the Bank has improved to 36.75% as on 31st March 2018 as against   35.33% as on 31st December 2017.

(4) Gross Advancesstood at Rs.1,50,999crore as on 31stMarch 2018 as against Rs. 1,51,536 crore as on  31st December 2017.

(5)   Operating Profitfor Quarter ended 31stMarch 2018 stood at Rs.1129.15crore as against Rs.684.77 crore for the quarter ended 31st December 2017, registering a growth of 65.90%

(6) Net Profit: Net loss for quarter ended 31stMarch 2018is Rs.3606.73crore as against Rs. 971.17 crore for quarter ended 31st December 2017, mainly due to NPA provisioning of Rs 3155.20 crore additionally.

Net loss is due to provisionsincluding higher provisions on account of RBI guidelines on revised framework on Resolution of Stressed Assets. Pursuant to the revised framework, the Bank has classified the specific restructured accounts in accordance with extant IRAC norms and made a provision of Rs.799.37 Crores towards such accounts during the current quarter.

(7) Total income for the quarter ended 31stMarch 2018 is Rs.5814 crore as against Rs.5062 crore for the quarter ended 31st December 2017 registering a growth of 14.86% QoQ.

(8) Interest income stood at Rs. 4828crore for the quarter ended 31stMarch 2018 as against Rs. 4255crore for the quarter ended 31st December 2017 registering a growth of 13.46% QoQ.

(9) Non-interest income is Rs. 987crore for the quarter ended
31stMarch 2018 as against Rs. 808crore for the quarter ended 31st December 2017 registering a growth of 22.18% QoQ.

(10) NPA MANAGEMENT: Gross NPA as at 31stMarch 2018 is at Rs. 38180 crore with ratio of25.28% as against Rs. 33267crore with ratio of 21.95% as on 31st December 2017.

(11) Total recovery of Rs. 5726 crore achieved for quarter ended March ’18 as against the recovery of Rs. 3021crore during quarter ended December ’17 while the total slippage for quarter ended March ’18stood at Rs. 9868 crore as against Rs. 1432crore for quarter ended December ’17. The fresh slippage increased due to compliance of RBI guidelines on revised framework for stressed assets.

(12)              Net NPAstood at Rs.20400 crore with ratio of 15.33% as on 31stMarch 2018 as against Rs. 17761 crore with ratio of 13.08% as on 31st December 2017.

(13)  Provision Coverage Ratiois improved to59.45% as on
31stMarch 2018as against57.83% as on 31st December 2017.




Performance Highlights for the Financial Year  ended March 31, 2018

(1)  Operating Profitfor the year ended 31.03.2018 is Rs.3628.08          crore as against Rs.3650.20 crore for the year ended 31.03.2017.

(2)  Net Profit: Net lossfor the year ended 31.03.2018is
Rs.6299.49 crore as against Rs.3416.74crore for the year ended 31.03.2017, mainly due to increase in provision by Rs. 2937 crore.

(3)  Total income for the year ended 31.03.2018 is Rs. 21662crore as againstRs.23091 crore for the previous year (2016-17) on account of less treasury income and contraction of credit.

(4)  Interest income stood at Rs.17915 crore for the year ended 31.03.2018 as against Rs. 19719 crore for the  previous year (2016-17), mainly due to additional slippage.
                                   
(5)  Non Interest Income:  Non-interest income is Rs. 3746crore for the year ended 31.03.2018 as against Rs.3373 crore for the previous year (2016-17) registering a growth of 11.08%.           

(6)  Total Expenditure declined by 7.24% from Rs. 19441 crore for the year ended 31st March 2017 to Rs. 18033 crore for the year ended 31st March 2018.
                                                                                                           
(7)  Recovery in NPA accounts for the year ended 31.03.2018 is significantly higher at Rs. 15496 crore as against Rs.8710crore for the year ended 31.03.2017.

Ø CAPITAL ADEQUACY RATIO (CRAR):

Particulars
Basel III
Regulatory Requirement
CET 1
6.39%
5.50%
CCB in CET1
0.89%
1.875%
Tier I
7.17%
7.00%
Tier II
2.09%
2.00%
Total                                            
9.25%
9.00%
CCB in CRAR
0.25%
1.875%


Ø  KEY FINANCIAL RATIOS:

·               Credit Deposit Ratiois69.64% as on 31.03.2018

·               Average Cost of Depositis 5.49%for the year ended31.03.2018 as against 6.17% for the year ended 31.03.2017.

·               Average Yield on Advancesis 7.50% for the year ended 31.03.2018.

·               Cost to Income Ratiois60.61% for the year ended 31.03.2018.

·               Net Interest Marginis 2.73% for the quarter ended 31.03.2018 and 2.19% for the year ended 31.03.2018, mainly due to increase in other interest income.

Ø    CAPITAL INFUSION BY GOVERNMENT OF INDIA

During the quarter ended 31.03.2018, the Bank has received an aggregate sum of Rs. 4694 crore as capital infusion by the Government of India for 2017-18as part of the Recapitalisation Plan for Public Sector Banks for which the Bank has allotted203,82,11,029  equity shares of Rs.10/- each for cash at Issue Price of Rs.23.03 per equity share (including premium of Rs.13.03 per equity share) aggregating to Rs.4694 crore on preferential basis, to Government of India. GOI’s shareholding has increased to 89.74%.

Ø   RATINGS OUTLOOK UPGRADE

ü  International Credit Rating Agency, Moody’s Investors Service, Singapore has revised their rating outlook on our Bank and our Hongkong Branch to “POSITIVE” from “STABLE” (09.02.2018)

ü  CRISIL Limited has revised its outlook on the long term debt instruments of Indian Overseas Bank (IOB) to ‘STABLE’ from ‘NEGATIVE’, while reaffirming the ratings at CRISIL A+/A-/FAA. The rating on the certificates of deposits programme of the bank has been reaffirmed at ’CRISIL A1+’. (25.01.2018)

Ø   DIGITAL BANKING INITIATIVES:
Indian Overseas Bank, has always been a pioneer in launching various digital products and schemes that benefit customers the most along with utmost convenience.


The following are some of the latest Digital Initiatives:
v  IOB Nanban is a mobile app launched for the benefit of our customers for performing non-financial transactions. Customers can download the app from Google playstore.
o   Branch Locator
o   ATM Locator
o   CDM Locator
o   Products and Services
o   Facebook chat bot link
o   Balance Enquiry of the following accounts
§  Savings
§  Current
§  Deposit
§  Loan
o   Cheque status
o   Stop Cheque

v  IOB Sahayak, a mobile app for our Staff has been releasedby our bank. The following features are available currently.          
-          NPA Recovery Visit
-          NPA War
-          Security Inspection Visit
-          Viewing Internal Circulars
-          Lead Generation
-          Reminder Service
This app will be a comprehensive app for staff to improve productivity.
v  Bharat Bill Payment System (BBPS) is an integrated bill payment system introduced by National Payments Corporation of India (NPCI), offering interoperable online bill payment service to customers. IOB Customers can now pay the following through BBPS system using Internet banking and Mobile banking.
-          Electricity
-          Telecom
-          DTH
-          Water and
-          Gas payments
There are two modes of integration.
Ø  Customer Operating unit
Ø  Biller Operating unit
Tamilnadu Electricity Board has been made ONLINE as the Bank’s FIRST Biller in BBPS.

Indian Overseas Bank is the FIRST Public Sector Bank to Go LIVE as a Biller Operating unit in BBPS.


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