Transcript Document

1
Performance / Financial
Highlights
March 2007
2
Brief Profile
 Established on Nov 20th 1923 by the Veteran
Freedom Fighter and a multi-faceted genius –
Dr Bhogaraju Pattabhi Seetaramaiah
 Nationalized on 15th April 1980
 Total Business Delivery Channels – 1930
 Sponsored Two Regional Rural Banks
 Dividend Declared –24%, 28%, 30%,35%
and 38% during the last five years.
3
Performance Highlights for March 2007
• Total Business Rs. 69,687 Crores.
• Continues to maintain very Low NPA levels
– Gross NPAs @ 1.41% & Net NPAs @ 0.17%.
• Net Profit increased by 10.79% on Y on Y
basis.
• CRAR stands at 11.33%
4
Branch Network
As on
Rural
Semi
Urban
Urban
Metro
Total
31.03.04
381
317
277
153
1128
31.03.05
385
329
294
160
1168
31.03.06
389
345
314
165
1213
31.03.07
396
372
342
179
1289
 Bank has presence in 22 States and 2 Union Territories
5
Business Levels
Details-
(Rs in crores)
31.03.2006
31.03.2007 % Growth
Deposits
33922
41454
22.20
Advances (GBC)
22484
11444
66.69
28233
14301
68.28
25.57
24.97
1169
703
1418
931
1.59
21.30
32.43
Core Operating Profit (excluding
Profit on sale of Investments)
632
951
50.47
Net Profit
486
538
47
10.79
-9.13
0.17
-0.07
Investments (Net)
C / D Ratio(%)
Net Interest Income
Operating Profit
Net NPAs
% of Net NPAs to Net Advances
52
0.24
6
Deposits - Composition
(Rs in crores)
Type of Deposit
Current Deposits
31.3.04
31.03.05
31.03.06
31.03.07
2218.94
2558.29
3084.82
3661.85
9.67%
9.29%
9.09%
8.83%
Savings Deposits
6348.12
7400.77
9232.39
10651.70
- Percentage
Share
27.67%
26.86%
27.22%
25.70%
Term Deposits
14373.44
17591.65
21605.20
27140.47
- Percentage
Share
62.66%
63.85%
63.69%
65.47%
T O T A L:
22940.52
27550.71
33922.41
41454.02
- Percentage
Share
7
Deposits - Average
(Rs in crores)
Type of Deposit
31.03.2004
31.03.2005
31.03.2006
31.03.2007
Average
Current Deposits
1317.13
1778.83
2219.71
2466.72
Average
Savings Deposits
5262.42
6712.14
8087.18
9751.96
Average
Term Deposits
14415.58
14706.07
18258.93
21801.41
20995.13
23197.04
28565.82
34020.09
T O T A L:
8
Advances - Major Sector-Wise Exposure
SECTOR
31.03.04
31.03.05 31.03.06
(Rs in crores)
31.03.07
700
800
751
898
12684
17110
21733
27336
15.94%
34.89%
27.02%
25.78%
- Medium & Large
Industries
3511
4958
6412
9048
- Priority Sector
5144
7331
8627
11427
- Other Sectors
4029
4821
6694
7759
13384
17910
22484
28234
12.48%
33.82%
25.24%
25.59%
Food Credit
Non-food Credit
Growth in Non Food
Credit
Gross Bank Credit
% GROWTH IN GBC
9
Retail Credit
Category
(Rs in crores)
31.03.04
31.03.05
31.03.06
31.03.07
Housing Loans
(Direct)
1031
1263
1572
1774
Housing Loans
(Indirect)
213
615
864
2204
Educational
Loans
396
513
677
904
Other Retail
Credit
1057
1324
1934
1739
Total
2697
3715
5047
6621
10
Quality of Loan Assets
Asset Quality
Standard Assets
31.03.04
31.03.05
31.03.06
31.03.07
95.40%
97.48%
98.06%
98.59%
Sub-Standard Assets
1.55%
0.75%
0.51%
0.79%
Doubtful Assets
3.01%
1.73%
1.30%
0.54%
Loss Assets
0.04%
0.04%
0.13%
0.08%
100.00% 100.00%
100.00%
TOTAL
100.00%
11
Non-performing Assets –
Year Wise Movement in Five Years
As on
Gross NPAs to Gross
Advances
Net NPAs to Net Advances
Rs. Crore
%
Rs. Crore
%
31.03.2004
615.37
4.60
120.07
0.93
31.03.2005
440.93
2.46
48.97
0.28
31.03.2006
436.91
1.94
52.46
0.24
31.03.2007
397.01
1.41
47.25
0.17
12
Provision Coverage for NPAs & Slippage Ratios
As on
Provision
Coverage %
Slippage Ratio %
31.03.2004
80.16
2.61
31.03.2005
88.22
1.18
31.03.2006
87.20
0.88
31.03.2007
86.52
1.11
13
NPA Movement
PARAMETER
(Rs in crores)
31.03.04 31.03.05 31.03.06
31.03.07
Gross NPAs at the beginning
of the period
580.70
615.37
440.93
436.91
Less: Reduction during the
period
259.89
324.68
157.28
283.56
NPAs after reduction
320.81
290.69
283.65
153.35
Add: Additions during the
period
294.56
150.24
153.26
243.66
Gross NPAs at the end of the
period
615.37
440.93
436.91
397.01
Net NPAs at the end of the
period
120.07
48.97
52.46
47.25
14
Investments
(Rs in crores)
Particulars
31.03.2004 31.03.2005 31.03.2006
31.03.2007
Total (Net)
Investments
10317.35
10646.28
11444.15
14300.72
Average
Investments
10660.00
10112.08
10846.97
12295.34
Profit on Sale of
Investments
401.76
385.51
70.84
53.71
Yield on
Investments
8.92%
8.14%
7.29%
7.34%
15
Investments - Composition
(Rs in crores)
Type of Investments
Government Securities
Other Approved Securities
Shares
Debentures and Bonds
Subsidiaries and/ or Joint
Ventures
Others (IDBI Deposits,
IVPs, Units of UTI
&Mutual Funds and RIDF
Total Investments
31.03.04
31.03.05
31.03.06
31.03.07
8810.14
8777.55
9749.29
11357.02
212.52
152.99
153.14
148.54
89.02
243.64
133.98
216.28
956.25
1168.31
924.71
947.49
9.31
9.31
9.31
9.31
240.11
294.48
473.74
1622.08
10317.35
10646.28
11444.15
14300.72
16
Quality of Investments Portfolio
 Duration of Investment portfolio as on 31.03.2007 is
4.92 years. (4.65 years as on 31.03.2006)
 Duration of AFS portfolio as on 31.03.07 is 2.31 years
(2.03 yrs as on 31.03.2006)
 NPAs in Investment Portfolio – Rs. 0.47 lakhs –100%
provided (Rs.1.31 lakhs as on 31.03.2006)
17
Profit & Loss Account - Spread Management
(Rs in crores)
FY
2004
FY
2005
FY
2006
Interest Income
2227.26
2273.46
2674.37
3315.33
Interest Expenses
1316.68
1204.42
1505.39
1897.79
Interest Spread
(NII)
910.58
1069.04
1168.98
1417.54
Net Interest Margin
3.78%
3.58%
3.32%
3.20%
Particulars
FY
2007
18
Interest Income
(Rs in crores)
Particulars
Advances
Investment
Others
T OTAL
FY 2004
FY 2005
FY 2006
FY 2007
1230.82
1358.60
1763.37
2303.40
951.16
823.27
790.60
896.43
45.28
91.59
120.40
115.50
2227.26
2273.46
2674.37
3315.33
19
Interest Expenses
(Rs in crores)
FY
2005
FY
2006
1238.93
1129.42
1388.62
1810.78
Interest on Subordinate Debt
45.78
49.33
60.32
46.80
Interest on Borrowings
31.98
25.67
56.45
40.21
1316.69
1204.42
1505.39
1897.79
Particulars
Interest on Deposits
TOTAL
FY
2004
FY
2007
20
Profit & Loss Account – Non-interest Income
(Rs in crores)
FY
FY
2006
2007
A) Non-interest Income
from Core Operations
FY
2004
FY
2005
1. Commission & Exchange
115.91
139.04
169.71
181.56
2) Dividend Income
14.76
9.94
8.42
5.95
3) Forex Profit
20.06
28.45
27.71
32.27
4) Other Income
125.55
190.41
114.87
173.40
Sub Total
276.28
367.84
320.71
393.18
B) Profit on Sale of
Investment
401.76
385.51
70.84
53.71
Total Non Interest Income
678.04
753.35
391.55
446.89
21
Non-Interest Expenditure
(Rs in crores)
Particular
FY
2004
FY
2005
FY
2006
FY
2007
Variance
over 2006
Establishment
Expenses
409.41 539.53
492.89 548.80
11.34%
Other Operating
Expenses
249.05 289.93
365.05 384.39
5.30%
T O T A L:
658.46 829.46
857.94 933.19
8.77%
22
Provisions & Contingencies
(Rs in crores)
Particulars
FY 2004
FY 2005
FY 2006
224.09
222.77
80.00
247.00
-7.41
166.52
65.29
62.82
242.53
12.40
40.00
38.57
Provision against Standard Assets
3.50
13.29
39.87
46.00
Amortization
3.96
66.47
0.00
0.00*
Others
0.00
-8.62
- 8.07
-1.05
466.67
472.83
217.09
393.34
Income Tax
Dep./Loss on revaluation of
Investments
Provision for NPAs
Total
FY 2007
* For 2006-07 amortization expenses amounting to Rs.73.58 crores are
deducted from the other income as per RBI guidelines. Similar effect is carried
for 2006 for the sake of comparison.
23
Net Profit
(Rs in crores)
Particulars
FY
2004
FY
2005
FY
2006
FY
2007
Operating Profit
930.17
992.93
702.59
931.24
Core Operating Profit
(excl. Profit from sale
of Investments)
528.40
607.42
631.75
877.53
Provisions
466.67
472.83
217.09
393.34
Net Profit
463.50
520.10
485.50
537.90
24
Capital Structure
(Rs in crores)
YEAR
TOTAL
CAPITAL
TIER-I
CAPITAL
% OF
TIER-II TIER-I TO
CAPITAL
TOTAL
CAPITAL
31.03.2004
1778.00
1059.00
719.00
59.56%
31.03.2005
2291.64
1519.00
772.64
66.28%
31.03.2006
3295.71
2872.19
423.52
87.15%
31.03.2007
3565.41
3141.43
423.97
88.11%
25
Financial / Performance
Key Ratios and Indicators at a Glance
FY
2004
Cost of Deposits
Yield on
Advances
Yield on
Investments
FY
2005
FY
2006
FY
2007
5.87
4.86
4.86
5.32
10.52
9.43
9.26
9.88
8.92
8.14
7.29
7.34
Contd…
26
Financial / Performance
Key Ratios and Indicators at a Glance
Ratios
FY
2004
FY
2005
FY
2006
FY
2007
Non Interest Income to
Average Working Funds
2.70
2.67
1.30
1.09
Cost of funds
5.24
4.27
4.28
4.63
Yield on funds
8.86
8.06
7.60
8.08
Net yield
3.62
3.79
3.32
3.45
Contd…
27
Financial / Performance
Key Ratios and Indicators at a Glance
Ratios
FY 2004
FY 2005
41.45
45.51
52.73
50.05
Staff Cost as % of AWF
1.63
1.91
1.40
1.34
Other Operating
Expenses as % of AWF
0.99
1.03
1.04
0.94
Cost to Income Ratio
FY 2006
FY 2007
Contd…
28
Earnings Ratios
FY
2004
FY
2005
FY
2006
FY
2007
Return on Avg. Assets
(ROAA) %
1.84
1.84
1.38
1.31
Return on Net Worth
(RONW) %
35.91
28.31
16.78
17.78
Earnings Per Share
(Amount in rupees)
(On annualized basis)
11.59
13.00
11.78
11.09
Book Value Per Share
(Amount in rupees)
36.65
45.93
59.67
65.08
Contd…
29
Productivity Ratios
FY
2004
Business Per
Employee
Gross Profit Per
Branch
Net Profit Per
Employee
Business Per
Branch
(Rs in Lakhs)
FY
2005
FY
2006
FY
2007
250.30
346.25
426.75
536.06
81.80
85.01
63.41
72.69
3.50
3.97
3.69
4.14
3213.00
3885.87
4633.02
5406.51
Contd…
30
Capital Adequacy / Other Ratios
As on
31.03.04
As on
31.03.05
As on
31.03.06
As on
31.03.07
Tier I Capital Ratio
8.17%
8.03%
12.20%
9.98%
Tier II Capital Ratio
5.54%
4.08%
1.80%
1.35%
Total Capital Ratio
(CRAR)
13.71%
12.11%
14.00%
11.33%
Net Worth to GBC %
11.27%
10.26%
12.87%
11.18%
Net NPAs to Net
worth %
8.27%
2.67%
1.81%
1.50%
Net NPAs to Net
Advances %
0.93%
0.28%
0.24%
0.17%
Contd…
31
Additional Disclosures
Break up of Investments
As on 31.03.2005
Nature of
Investments
Amt.
% of
Total
(Rs in crores)
As on 31.03.2006
Amt.
% of
Total
As on 31.03.2007
Amt.
% of
Total
SLR Securities
8398
78.88
9370
81.88
11450
78.52
Non-SLR
Securities
1758
16.51
1584
13.84
2901
19.89
490
4.61
490
4.28
232
1.59
10646
100
11444
100
14583
100
Recapitalization Bonds
Total
SLR maintained as on 31.03.2007 – 26.93 % of NDTL
Contd
32
…
Additional Disclosures
 CRAR as per extant guidelines of RBI
including capital charge for Market Risk
stands at 11.33% as on 31.03.2007 as against
14.00% as on 31.03.2006.
 If capital charge for Operational Risk, is
also factored, the CRAR would stand at
10.36%. (RWAs for Operational Risk as on
31.03.2007 are reckoned for this purpose)
Contd…
33
Business Delivery Channels / Service Outlets
FY
2004
FY
2005
FY
2006
FY
2007
Branches
1128
1168
1213
1289
Extension
Counters
129
136
123
99
ATMs
272
330
391
505
Satellite
Offices
44
38
37
37
TOTAL
1573
1672
1764
1930
34
Intellectual Capital
OFFICERS
CLERICAL
STAFF
SUBSTAFF
TOTAL
Clerical
Staff to
Officer
Ratio
31-03-04
7753
3124
2218
13095
0.40
31-03-05
7989
2885
2233
13107
0.36
31-03-06
8072
2827
2270
13169
0.35
31-03-07
8021
2675
2285
12981
0.33
As on
35
Technology Initiatives / Value Added Services





100%
Branch
31.03.2003.
Computerization
achieved
by
ATMs increased from 391 as on 31.03.2006 to 505 as
on 31.03.2007.
Branches/ECs connected to ATMs increased from 917
as on 31.03.2006 to 1059 as on 31.03.2007
No. of ATM/Debit cards increased from 1.83 million as
on 31.03.2006 to 2.34 million as on 31.03.2007.
Total shared ATM net work with IDBI Bank, UTI Bank,
Indian Bank, HDFC Bank, SBI group and others stand at
17500
Contd…
36
Technology Initiatives/Value Added Services Contd.,
Cash Management Services commenced in 2004 - the following is the growth
Details
2004-05
2005-06
2006-07
No of Branches
56
123
128
No of
Customers
65
86
113
Rs.818 Crs
Rs.1147 Crs
Rs.1523 Crs
Total Turnover
37
Technology Initiatives/Value Added Services Contd.,
Cluster based Core Banking
Total Business Units covered
Of which -
Branches
1104
1006
Extension Counters
83
Service Centers
15
% of Branch network covered
78.50%
% of Business covered
93.50%
38
Technology Initiatives/Value Added Services
 Average ATM hits 1.36 lakhs per day.
Mobile Recharging facility.
e-r@il facility to book railway tickets in the internet
Infi-net, the Internet Banking Facility
Quikticket: Facility to book Kingfisher Airlines tickets through
ATMs of the Bank.
 Internet Payment Gateway
Tech savvy products such as e-Seva, e-Hundi, Utility Bill Payment,
Visa Electron Debit Card, Instant Funds Transfer, On-line Tax
Accounting System, RTGS, ABB, Shared Clearing, E-BA1 etc.
Various Insurance Linked Deposit products like AB Jeevan
Prakash, AB Jeevan Prakash Plus, AB Arogyadaan and AB Flex.
New Tech savvy product AB Kisan Vikas ATM Card has been
introduced.
39
Value Added Services
 Internet Payment Gateway
 FIRST BANK IN INDIA TO START BIOMETRICS
ATM
 Introduced 8 a.m. to 8 p.m. and 7 day Banking in
select branches to extend the Service hours to
clientele.
 Imparting training
to Agriculturists,
Rural
Unemployed youth on vocational courses through
our 9 Rural Development Institutes.
Contd…
40
AWARDS & REWARDS
• Best Bank Award for use of IT for customer service in semiurban and rural areas from IDRBT
•Merit Award for “Banking Sector subject to prudential
supervision” from SAFA (South Asian Federation of
Accountants) amongst all South Asian Banks for the quality of
the balance sheet.
•“Fintech Asia 2006” Award for “Any Branch Banking”
Initiatives.
•Rated second best bank under category of Asset Quality in
Business Today KPMG Survey of Best Banks 2006.
•Joint Runner-up Award in the Best Payments initiative for
promoting ATM Channel by IBA & TFCI.
41
HIGHLIGHTS DURING THE YEAR
•
•
•
•
•
•
•
•
•
Andhra Bank has hosted the Bankers’ Conference “BANCON-2006” in
collaboration with the Indian Banks’ Association at Hyderabad.
First Bank in India to introduce ATM with Biometric Access and audio guidance for
the benefit of rural areas and illiterate customers.
Mobile ATM facility provided at Kottayam for the benefit of Sabarimalai pilgrims.
Internet Banking introduced.
Special Facility to book Kingfisher Air tickets through the ATMs introduced.
AB Kisan Vikas ATM Card introduced for the benefit of agricultural community.
Facility to book train tickets through internet introduced.
Opening of representative offices is under consideration – Riyadh, Kuwait & New
Jersey.
Preparations are underway for a joint venture in Banking operations in Malaysia
with Bank of Baroda and Punjab National Bank as partners.
42
FIRST BIO METRIC MOBILE ATM IN
INDIA
43
44
Results that define pursuit of
Excellence are due to:
 Support from Customers, Stake-holders and Well Wishers,
 Team work of 13000 dedicated employees
AND
 Excellent co-operation from Banking Analysts.
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46
47