Performance
Highlights - 30.09.2019
1.
Total
business stood at Rs.3,65,608 crore as on 30th September 2019 as
against Rs. 3,68,777 crore as on 30th
June 2019.
2.
Total
deposits stood at Rs. 2,22,258 crore as on 30th
September 2019 as against Rs. 2,21,171 crore as on 30th June 2019.
3.
CASA of the
Bank registered an increase of 1 bps and stood at 38.06% as on 30th
September 2019 against 38.05% as on 30th June 2019.
4.
Gross
Advances stood at Rs.1,43,350 crore as on 30th
September 2019 as against Rs. 1,47,606 crore as on 30th June 2019. The Bank has grown under retail and agri
sector and rebalanced the advance balance by consciously reduced the stressed
sector in corporate segment.
Jewel loan portfolio registered a growth of 24.05% Y-o-Y from Rs.13,779 crore to Rs.17094 crore.
Sequential growth of the same stood at 6.28%.
Housing loan grew by 8.43% from Rs.13,390
crores to Rs.14,519 crores during Sep’19 over Sep’18.
5.
Operating
Profit as on 30th September 2019 and stood at Rs. 746 crore as
against Rs.828.16 crore for the quarter ended 30th June 2019. The reduction in operating profit was due to
reduction in the profit of sale of investments by Rs.92.54 crore over as
compared to June 2019. Other income improved under commission on exchange,
miscellaneous income and profit on revaluation of investments over June 2019.
6.
Net loss for quarter ended 30th
September 2019 stood at Rs. 2,254 crore as against Rs. 342.08 crore for quarter ended 30th June 2019. Bank is focusing its efforts to come out of
PCA by March 2020 by making prudential provisions. Accordingly the bank provided proactively for
the likely shortfall in securities for the existing NPA’s amounting to Rs.1081
crores.
7.
Total income
for the quarter ended 30th September 2019 is Rs.5,024 crore as against Rs. 5006.48 crore for
the quarter ended 30th June 2019.
8.
Interest
income stood at Rs. 4,276 crore for the quarter ended 30th September
2019 as against Rs.4336.39 crore for the quarter ended 30th June 2019. The reduction was largely due to rebalancing
of credit portfolio under retail, agri & MSME segment and exiting from
unrated / low rated corporate segment assets.
9. Non-interest
income registered increase of 11.63% and stood at Rs. 748 crore for the quarter ended 30th
September 2019 as against Rs.670.09 crore for the quarter ended
30th June 2019.
30th June 2019.
10.
NPA
MANAGEMENT: Gross NPA as at 30th September
2019 reduced by 253 bps and stood at Rs.28674 crore with ratio of 20% as
against Rs. 33262 crore with ratio of 22.53% as at 30th June 2019.
GNPA has reduced both in quantum and as a percentage of Gross Advances QoQ.
11.
Reduction in NPA for the quarter ended
September 2019 stood at Rs.6545 crore
as against Rs.2084 crore achieved for quarter ended June ’19 while the total fresh
slippage (other debits to existing NPA accounts) for quarter ended September’19
was contained at Rs.1956 crore.
12. Total cash recovery for September 2019 was Rs.727.96
crore (including Cash Recovery to P&L)as against Rs.637.05 crore in June
2019.
13. Net NPA reduced by 120 bps as at 30th
September 2019 and stood at Rs.12508 crore with ratio of 9.84% as against
Rs.14174 crore with ratio of 11.04% as on 30th June 2019 thus
reducing NPA by Rs.1666 crore in absolute terms.
14.
Provision
Coverage Ratio improved to 75.85% as against 72.24% as on 30th June
2019.
Bank has made
required provisioning in advances in specific Accounts so as to improve Net NPA
consciously to bring it below 6%. Thus the Bank is focusing its efforts to come
out of PCA by March 2020.
Bank is regularly
conducting Pan India Mega e_auction for the properties possessed under SARFAESI
Act. We have sold 249 properties so far, fetching Rs212 crore. Significant
recovery is expected in the coming months as more properties will be auctioned
& sold. 72% of NPA are parked in 16 ARMB branches which are strengthened
with higher management bandwidth, so to accelerate recovery.
Performance Highlights for the Quarter
ended September 30, 2019 - YoY
1.
CASA
of the Bank improved to 38.06 % as on 30th
September 2019 as against 35.95% as on 30th September 2018 with YoY
growth at 211 bps. Total CASA has increased from Rs.80219
crores as on 30.09.2018 to Rs. 84,595 crores as on 30.09.2019, SB (Savings
Bank) registered 4.73 % YoY growth as at 30th September ‘19 over 30th
September ‘18.
2.
Gross
Advances stood at Rs. 1,43,350 crore as on 30th September
2019 as against Rs. 1,50,040 crore as on 30th September 2018. The Bank has evolved a policy of not taking
fresh exposures in stressed sectors, below hurdle rated accounts and BB and
below rated accounts. The Bank has also exited from accounts in the stressed
sectors, wherever feasible.
3.
Retail Segment grew by 10.68% YoYfrom Rs.28,318 crores to Rs. 31341 crores and housing loan grew by
8.43% from Rs.13,390 crores to Rs.14,519 crores during Sep’19 over Sep’18
4.
Operating
Profit for quarter ended 30th September
2019 was Rs.746 crore as against Rs. 1304 crore for the quarter ended 30th
September 2018. It was Rs.1304. 22
crore in September 2018 aided by one off income from sale to ARC to the extent
of Rs.660.79 crore.
5.
Provisions & Contingencies increased by Rs.979.43 crore on y-o-y
basis. .
6.
Net Loss for
the quarter ended 30th September 2019 stood at 2,254 crore from Rs.487 crore for the
quarter ended 30th September 2018 due to the above reason.
7.
Interest
income stood at Rs.4275 crore
for the quarter ended 30th September 2019 as against Rs. 4284 crore
for the quarter ended 30th September 2018.
8.
Provision Coverage Ratio is improved to 75.85%
as on 30th September 2019 as against 61.97% as on 30th September
2018.
Performance Highlights for
the Half Year ended September 30, 2019
1.
Operating
Profit for the half year ended 30.09.2019 stood at Rs.1574 crore
as against Rs. 2436 crore for the half year ended 30.09.2018.
2.
Net
loss for the half year ended 30.09.2019 stood at Rs.2596 crore
as against Rs. 1407 crore for the half year ended 30.09.2018. The Bank focused
its efforts towards increase in provisions in specific NPA accounts where
realiaziability of security shortfall was envisaged.
3.
Interest
income stood at Rs.8612 crore for the half year ended 30.09.2019
as against Rs. 8532 crore for the corresponding half year of the previous year
(2018-19
4.
Non-interest Income stood at Rs.1418 crore.
Ø CAPITAL ADEQUACY
RATIO (CRAR):
|
Particulars
|
Basel III
|
Regulatory
Requirement*
|
|
CET 1
|
9.20%
|
5.50%
|
|
Tier I
|
9.20%
|
7.00%
|
|
Total
CRAR
|
11.86%
|
9.00%
|
* Excluding CCB
The Bank has on 27.09.2019 received capital infusion
of Rs. 3857 crore from Government of India towards contribution of the Central
Government in the preferential allotment of equity shares (Special Securities /
Bonds) of the Bank during the financial year 2019-20, as Government’s
investment, which is pending for allotment as of date. The Bank has scheduled a
Postal Ballot from 29.10.2019 to 27.11.2019 to obtain the approval of
shareholders for the issue of equity shares to the Government of India for such
capital infusion. The Bank has been permitted by RBI vide its letter dated 16.10.2019
to include the share application money received from GOI in CET1 capital.
During the half year ended 30.09.2019, the Bank had, on 03.09.2019
and on 30.09.2019 exercised Call in respect of Upper Tier II Series III Bonds
and Perpetual Bonds Series IV amounting to Rs.510 and Rs.300 crores
respectively and redeemed the bonds.
Further, the Bank has redeemed on 23.08.2019 Lower Tier II Bonds
Series XIII aggregating Rs.290 crore issued on 24.08.2009 and redeemed the
bonds.
The Bank has raised capital of Rs.500 crore through issue of Basel
III Tier II Bonds on 24.09.2019.
Ø KEY FINANCIAL RATIOS:
·
Average
Cost of Deposit is 5.41 % as on 30.09.2019 as against 5.39%
as on 30.09.2018.
· Average Yield on Advances stood at 6.95
% as on 30.09.2019.
· Net Interest Margin stood at 1.86 % for quarter ended 30.09.2019.
·
Credit Deposit Ratio is 64.50
% as on 30.09.2019 as against 66.74% as on 30.06.2019.
1. Our Bank has surpassed the Priority sector Target
of RBI for the quarter ended Sep’19. Excess Priority sector advances has been
sold through Priority Sector Lending Certificate and earned a profit of
Rs.23.90 Crs during the current FY 2019-20 upto Sep’19.
2. Online Processing of Kisan Credit Card – Short term
production Loans was introduced and integrated with Finacle for master creation
during Sep’19.
3. Introduced new Jewel loan scheme – Swarnalakshmi –
Jewel loan scheme exclusively for Women.
Ø
Digital Banking New Initiatives
Launched
Bank on Wheels:
As per EASE guidelines, each bank has to
provide Mobile ATM facility ( Bank on Wheels) in all districts where they are the lead
banks. Indian Overseas Bank has brought Banking Services on wheels to rural and
Semi-Urban areas of Tamil Nadu and Kerala in 14 districts. Bank on Wheels
includes an ATM, a Passbook Kiosk and a Business Correspondent for other
banking facilities.
Introduced
Cheque lodgment kiosk
To enhance customer service and with
committed “Customer First” concept, IOB has launched self service Cheque
Lodgement Kiosks at major commercial centers to facilitate round the clock acceptance of
clearing cheques.
Home
Loan Initiatives
The
Bank registered 15.43% credit growth in housing loan segment Y-o-Y. During the half year ended September 2019
the segment has grown by 7.38% over March 2019.
Steps
undertaken:
· Setting up of retail
marts for focused lending
· Empanelment of Direct
Selling agents
· Implementation of pre
approved home loan
· Concession of 0.15%
has been given to women borrowers.
· Staff referral scheme
has been introduced
Awards
and Accolades
Ø 1. Awarded as one of the Best Performing Bank under
the Special Campaign “Warriors of Winning Wednesday-August 2019” by PFRDA for
achieving the Campaign Target under APY.
Ø
2. Out
of 12 RSETIs’ of our Bank, 10 RSETIs’ has been awarded with AA grading by MoRD.
Ø
3. Awarded
by MeitY for Outstanding Performance in POS deployment in Northeast for the FY
2018-19.
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