performance review h1-2000-2001 2 snapshot retail banking corporate banking performance indicators...
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Performance ReviewH1-2000-2001
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Snapshot Retail Banking Corporate Banking Performance Indicators US GAAP
Contents
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H1-2000 Snapshot
Net Profit up 59% YoY
Net interest income up 154%
Cost of deposit < 8%
Core Fee income doubles
Customer accounts reach 1.2 mn (0.65 mn)
NRI accounts cross 40,000 (23,400)
ATMs cross 310 (175)
(Figures in brackets are as of 31st March 2000))
Infinity accounts reach 2,66,000 (1,10,000)
PPA relationships increase to 2500 (950)
No. of credit cards reach 69000 (10,656)
Corporate assets relationships reach 968 (852)
CMS relationships reach 282 (254)
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H1- 2000 Snapshot (contd.)
Higher infrastructure and new products
expenditure for retail business
Decline in Trading Income
Cost to Income Ratio increases to 52%
Adverse Mark-to-market impact
Higher loan loss provisioning
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Business LevelsRs. million
Savings deposits up by 207% Composition of demand deposits increases due to retail
thrust Retail deposits constitute 48% of total deposits Customer accounts increases to 1.26 mn from 0.65 mn in
March 2000
30-Sep-00 30-Sep-99 Growth 30-J un-00 31-Mar-00
Deposits 97,280 65,800 48% 8,740 98,660
- SB 8,430 2,750 207% 6,720 5,330
- Avg demand dep 20.60% 13.99% 20.26% 17.90%
Advances including credit substitutes 63,240 34,150 85% 53,620 51,020SLR & other Investments 32,150 20,770 55% 32,670 30,670
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Summary Ratios (Indian GAAP)
H1:FY00-01
H1:FY99-00
FY2000
Fully Diluted EPS (Rs.) 3.57* 2.67* 6.38
Return on Assets (%) 1.29 1.17 1.31
Return on Net Worth (%) 11.85 25.03 30.14
*: Not annualised
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Snapshot Retail Banking Corporate Banking Performance Indicators US GAAP
Contents
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Growth in Customer accounts
637,000 1,245,000
31.3..2000 30.09.200095% growth
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Growth in Retail deposits
Rs. 30,570 mn
Rs. 46,840 mn
31.3.2000 30.9.2000
53% growth
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As on 31 March 2000
31%69%
Share of Retail deposits in Total deposits
As on 30th September 2000
48%52%
Retail
Corporate
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Channel Growth
Call Centre
ATMs
Branches
31.03.00 30.09.00 Variation
81+16=97 86+16=102 5
175 311 136
3 10 7
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Growth in Registration for channels
Telephone banking
31.03.00 30.09.00 Variance
15,000 95,000 80,000
110,000 275,000 165,000
- 1,332 1,332
Mobile Banking
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New Product Launches
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NRI Services
1,600 Money2India remittances received for total value of USD 6.50 million
8,000 On line accounts opened
Total NRI depositsRs. 5,380 mn31.03.2000 30.09.2000
Rs.8,020 mn
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Other initiatives
B2C initiatives 24 billers registered till date across 11
cities Tie up with 10 shopping malls
Third party distribution 9% GOI Relief Bonds Mutual Funds on the Net - Tie up with 6 Mutual
Funds
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Snapshot Retail Banking Corporate Banking Performance Indicators US GAAP
Contents
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Initiatives taken Revised Loan Policy put in place. 90 % of Incremental Assets rated A & above. Rating Exercise:
All new accounts approved only after rating. 80% of asset Exposure re-rated under new rating model. Entire CMS & Corporate treasury instruments relationships rated.
Bankers to NSE. Capital Market Segment Launched. Institutional Group, SBG, and ABG created. Risk participation in L/Cs. Entry into all major oil refinery accounts
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Initiatives taken (contd.)
Dividend warrant business added to suite of CMS services - 79 issues , value Rs.12,011 mn, average float Rs. 300 mn
Roll out of Corporate related agricultural funding products - 4 corporates, 5000 borrowers, Rs. 550 mn exposure approved.
Corporate Vendor/ Dealer funding products with 12 corporates, 215 dealers, Rs. 130 crores exposures approved.
Tie-up with 5 Vortals for B2B services.
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Incremental Market share in Assets
0.25%
2.16%
4.80%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
30.09.1999 31.03.2000 30.09.2000
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Rs. millionCore Fee Income
670
280
560
0 200 400 600 800
Rs mn
31-3-2000 30-6-2000 30-9-2000
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Assets: Industry-wise - Top 10: Sept 30, 2000
Telecom(3.83%)
Textiles(3.82%)
Chemicals(6.68%)
Infrastructure (7.42%)
Petroleum(10.89%)
All Engineering
(9.73%)
Agri + SSI(2.75%)
Automobiles including
trucks(2.72%)
Housing(3.41%)
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Snapshot Retail Banking Corporate Banking Performance Indicators US GAAP
Contents
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Balance Sheet: Liabilities
Sept 30,2000
Sept 30, 99 Mar 31, 2000
Capital 1,968 1,650 1,968
Reserves & Surplus 10,229 1,874 9,527
Net worth 12,197 3,524 11,495
Deposits 97,283 65,797 98,660
Borrowings 6,222 2,712 4,915
Other liab. & prov. 4,927 3,550 5,656
Total liabilities 120,629 75,583 120,726
Rs. million
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Balance Sheet: Assets
Sept 30,2000
Sept 30, 99 Mar 31, 2000
Cash and RBI bal. 7,163 5,960 7,219
Bal. With banks 11,983 10,450 26,933
Investments 47,300 32,512 44,167
Advances 47,768 22,410 36,573
Fixed assets 2,429 2,010 2,221
Other assets 3,985 2,240 3,613
Total assets 120,629 75,583 120,726
Rs. million
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H1 Operating Profit
H1 01 H1 00 Growth Q1 01 Q2 01Interest income 5,709 3,876 47% 2,836 2,873Interest exp. 3,896 3,161 23% 1,982 1,914Net int income 1,814 715 154% 854 960Core Fee income 559 279 101% 255 305Treasury Income 94 271 -65% 57 37Operating exp 1,263 524 141% 547 716Operating Profit 1,204 741 62% 619 585
Net interest income up by 155% (YoY) Core Fee income doubles Operating Profit up by 62%
Rs million
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H1 Profit Statement
Net profit up by 59% Operating Profit up by 62% YoY
H1 01 H1 00 Q1 01 Q2 01Operating Profit 1,204 741 619 585Less :Provision for Income Tax 135 103 76 60Provision for Wealth Tax 2 0 1 1Bad Debts Provision 219 201 101 118Depreciation on Investments 91 -30 35 56Provision for Operational Risk 6 .. 4 2Others 50 26 1 49Net Profit 702 441 401 301
Rs. million
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Q2 Operating Profit
Q2 01 Q2 00 GrowthInterest income 2,873 1,887 52%Interest exp. 1,914 1,553 23%Net interest income 960 334 187%Core Fee income 305 152 101%Treasury Income 37 165 -78%Operating exp 716 272 163%Operating Profit 585 379 54%
Rs. million
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Q2 Profit Statement
Q2 01 Q2 00Operating Profit 585 379Less :Provision for Income Tax 60 101Provision for Wealth Tax 1 0Bad Debts Provision 118 96Depreciation on Investments 56 -69Provision for Operational Risk 2 0Others 49 12Net Profit 301 239
Rs. million
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Interest SpreadH1 01 H1 00 FY 00
Yield on advances 13.04% 14.16% 14.06%Yield on investments 11.20% 11.94% 11.52%Cost of deposits 7.99% 9.49% 8.72%Interest rate spread 2.72% 1.88% 2.30%Earning assets (average) to total assets 95.78% 94.72% 93.91%
On advances Increasing exposures to higher rated corporates Increase in short-term loans based on tenor based PLR Increase in exposure under Multi Currency Credit Reduction in yield due to interest derecognition
On deposits Increase in demand deposit composition
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Snapshot Retail Banking Corporate Banking Performance Indicators US GAAP
Contents
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Income Statement: US GAAP
Net income down due to MTM losses on Trading
H1 01 H1 00 Growth Q1 01 Q2 01Interest revenue 5,684 3,821 49% 2,893 2,791Interest expense 3,899 3,152 24% 1,986 1,913Net interest revenue 1,785 669 167% 907 878Provision for credit losses 280 110 155% 130 150Non interest revenue 367 688 -47% 327 40Non interest expense 1,222 525 133% 547 675Income before taxes 650 722 -10% 557 93Income tax expense 43 96 111 -68Net income 607 626 -3% 446 161
Rs. million
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Reconciliation of net income - US GAAP
Rs. million
H1:2000-01 H1:99-00
Net income under US GAAP 607 626
Reconciliation between US GAAP and Accounting Standards followed in India
Profit under Indian GAAP 702 441
Deferred taxation 184 51
Loan impairment (66) 82
Mark to Market impact on investments (283) 114
ADR Issue expenditure charged to P & L A/c 54 -
Others 16 (62)
Profit under US GAAP 607 626
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Thank You