Transcript Document

PERFORMANCE
HIGHLIGHTS
JUNE 2009
1
PERFORMANCE HIGHLIGHTS FOR JUNE 2009
Total Business went upto Rs.105280 crores with a growth of 26.45% and with a Customer
base of more than 20 Million.
Gross Advances have grown by 31.78% and Total Deposits by 22.76%
Net profit jumps to Rs.256 Crs with robust growth of 230%.
Net Interest Income gone up by 27.47%
Income grew by 38% and Expenditure contained at 31%.
CRAR stands at 14.75% as per BASEL II guidelines
Net Interest Margin (NIM) gone upto 2.85% against 2.74% in June 2008.
Return on Assets (ROA) stood at 1.48% from 0.56% in June 2008.
Very Low NPA levels
–
Gross NPAs @ 0.80% & Net NPAs @ 0.22%.
2
BRANCH NETWORK AND BUSINESS DELIVERY CHANNELS
Business
Delivery
Channels
Branches
Extension
Counters
ATMs
Satellite
Offices
TOTAL
Branch Mix
Mar 09
Jun 08
Jun 09
1432
1371
1448
52
66
50
726
660
778
38
38
38
2248
2135
2314
Mar 09
Jun 08
Jun 09
Rural
411
403
414
Semi-Urban
412
399
414
Urban
393
369
396
Metro
216
200
224
1432
1371
1448
TOTAL
3
BUSINESS LEVELS
(Rs in crores)
Quarter Ended
Details
FY 08-09
Jun 08
Jun 09
% Growth
(Jun 08
– Jun 09
Aggregate Deposits
59201.51
49034.64
60368.78
23.11
Advances (GBC)
44427.60
34081.05
44911.38
31.78
Investments (Net)
16911.11
15939.52
17864.57
12.08
75.04
69.50
74.40%
Net Interest Income
1626.92
346.25
441.37
27.47
Operating Profit
1288.03
205.27
347.99
69.53
Core Operating Profit (excl
Profit on sale of Investments)
1050.42
190.39
219.31
15.19
653.05
77.62
256.21
230.08
C / D Ratio(%)
Net Profit
Interest Income from Advances has shown a robust growth of 38.37% and Interest
Income from Investments increased by 3.71%.
4
DEPOSITS - GROWTH
(Rs in crores)
Total Deposits
(including Interbank
Deposits) increased
by 22.76%
Low Cost Deposits
shown a healthy
growth of 13.54%
Term Deposits
shot up by 27.34%
5
DEPOSITS - COMPOSITION
(Rs in crores)
Type of
Deposit
Quarter Ended
FY 08-09
Jun 08
Jun 09
Current
Deposits
5215.65
3698.13
4818.74
% Share
8.78%
7.52%
7.98%
Savings
Deposits
13437.78
12618.16
13706.84
% Share
22.63%
25.66%
22.71%
Term
Deposits
40736.59
32859.09
41843.20
% Share
68.59%
66.82%
69.31%
59390.02
49175.38
60368.78
T O T A L:
As on Jun 2009, Low Cost Deposits constituted 30.69% and Term Deposits constituted
69.31% of the Total Deposits.
6
DEPOSITS - AVERAGE
(Rs in crores)
Quarter Ended
Type of
Deposit
FY 08-09
Jun 08
Jun 09
Current
3234.50
2858.79
3812.05
Savings
12278.63
12170.79
13282.00
Term
34561.31
32525.88
40667.06
T O T A L:
50074.44
47555.46
57761.11
7
ADVANCES
(Rs in crores)
Quarter Ended
SECTOR
FY 08-09
Jun 08
Jun 09
15523
9579
16965
3341
2834
3674
Other Priority
Sector
11614
10682
11487
Other Sectors
13950
10986
12785
Gross Bank Credit
44428
34081
44911
28.56%
25.57%
31.78%
Medium & Large
Industries
SSI & Small Entp.
% GROWTH IN GBC
Advances have shown a healthy growth of
31.78%.
8
RETAIL CREDIT
(Rs in crores)
Quarter Ended
Category
FY 08-09
Jun 08
Jun 09
Housing
Loans
(Direct
Finance)
2232
2032
2373
Educational
Loans
1446
1212
1489
715
273
851
Other Retail
Credit
1649
1458
1738
Total
6042
4975
6451
Non Agl.
Gold Loans
Housing Loans registered a growth of 16.78% and Educational Loans rose by 22.85%
Non Agl. Gold Loans registered a growth of 211.72%
Total Retail Credit achieved a growth rate of 29.67%
9
QUALITY OF LOAN ASSETS
Quarter Ended
Quality of Loan Assets as on 30.06.09
Asset Quality
FY 08-09
Jun 08
Jun 09
99.17%
98.85%
99.20%
Sub-Standard
Assets
0.31%
0.36%
0.25%
Doubtful Assets
0.50%
0.78%
0.52%
Loss Assets
0.02%
0.01%
0.03%
100.00%
100.00%
100.00%
Standard
Assets
TOTAL
Healthy and appropriate credit decisions
have enabled the Bank to maintain a
consistent and increasing Standard Assets
base.
10
NPA MOVEMENT
(Rs in crores)
Quarter Ended
PARAMETER
FY 08-09
Jun 08
Jun 09
Gross NPAs at the beginning of the period
372.43
372.43
368.14
Less: Reduction during the period
205.61
21.25
33.00
NPAs after reduction
166.82
351.18
335.14
Add: Additions during the period
201.32
41.64
23.94
Gross NPAs at the end of the period
368.14
392.82
359.08
79.22
35.13
99.62
Net NPAs at the end of the period
11
NON-PERFORMING ASSETS – YEARWISE MOVEMENT
Gross NPAs to
Gross Advances
Net NPAs to
Net Advances
Rs.
Crore
%
Rs.
Crore
%
FY 0809
368.14
0.83
79.22
0.18
Jun 08
(Q1)
392.82
1.15
35.13
0.10
Jun 09
(Q1)
359.08
0.80
99.62
0.22
Period
Ended
The Gross and Net NPAs are among the
lowest in the industry. Increase in Net
NPAs for June 2009 is on account of
change
in
treatment
of
floating
provisions mandated by Reserve Bank
of India.
12
PROVISION COVERAGE FOR NPAS & SLIPPAGE RATIO
Provision
Coverage
%
Slippage
Ratio %
FY 08-09
81.49
0.59
Jun 08 (Q1)
90.88
0.12
Jun 09 (Q1)
85.92
0.05
Period
Ended
With early detection of delinquency
and initiation of corrective steps at
the right time the slippage ratio was
curtailed at 0.05 as against 0.12 last
year.
13
INVESTMENTS
(Rs in crores)
Net Investments
Quarter Ended
19000
17864.57
18000
17000
16000
Particulars
FY 08-09
16911.11
15939.52
15000
14000
Jun-08
Mar-09
Jun-09
Jun 08
Jun 09
Net
Investments
16911.11
15939.52
17864.57
Average
Investments
15953.00
15839.57
18144.09
Profit on Sale
of
Investments
237.62
14.88
128.68
Yield on
Investments
8.84%
7.42%
6.65%
Total Investments increased by 12.08% from
Jun 08 to Jun 09. YoY Profit on Sale of
Investments zoomed by 765.95%.
14
INVESTMENTS - COMPOSITION
(Rs in crores)
Quarter Ended
Type of Investments
FY 08-09
Jun 08
Jun 09
15215.03
14400.29
16076.20
96.40
117.90
82.33
Shares
165.51
195.45
121.80
Debentures and
Bonds
989.40
824.44
783.39
9.31
9.31
9.31
435.46
392.14
791.54
16911.11
15939.53
17864.57
Government
Securities
Other Approved
Securities
Subsidiaries and/ or
Joint Ventures
Others (IDBI
Deposits, IVPs, Units
of UTI & Mutual
Funds and RIDF
Total Investments
(Net)
15
BREAK UP OF INVESTMENTS
(Rs in crores)
Quarter Ended
FY 08-09
Jun 08
Jun 09
Nature of
Investments
Amt.
% of
Total
Amt.
% of
Total
Amt.
% of
Total
SLR
Securities
15291
90.42
14478
90.83
16139
90.34
Non-SLR
Securities
1620
9.58
1462
9.17
1726
9.66
0
0.00
0
0.00
0.00
0.00
16911
100.00
15940
100.00
17865
100.00
Recap Bonds
Total
SLR maintained as on 30.06.2009 – 25.53 % of NDTL
16
QUALITY OF INVESTMENT PORTFOLIO
Duration of Investment portfolio as on 30.06.2009 is 5.19 years.
(4.71 years as on 30.06.2008)
Duration of AFS portfolio as on 30.06.2009 is 1.98 years (3.17 years
as on 30.06.2008)
NPAs in Investment Portfolio – Rs. 0.53 crores –100% provided
17
NET PROFIT
(Rs in crores)
Quarter Ended
Particulars
FY 08-09
Jun 08
Jun 09
Operating Profit
1288.03
205.27
347.99
Core Operating
Profit (excl. Profit
from sale of
Investments)
1050.42
190.39
219.31
Provisions
634.98
127.65
91.78
Net Profit
653.05
77.62
256.21
The Operating Profit and Net Profit YoY
increased by 69.53% and 230.08% respectively.
18
PROFIT & LOSS ACCOUNT – SPREAD MANAGEMENT
(Rs in crores)
Quarter Ended
Particulars
FY 08-09
Jun 08
Jun 09
Interest Income
5374.62
1157.36
1504.63
Interest Expenses
3747.71
811.11
1063.26
Interest Spread
(NII)
1626.91
346.25
441.37
NIM(On Earning
Assets)
3.03%
2.74%
2.85%
The Net Interest Income showed a sharp
increase by 27.47%. The Net Interest Margin
improved from 2.74% to 2.85%.
19
INTEREST INCOME
(Rs in crores)
Quarter Ended
Interest on
FY 08-09
Jun 08
Jun 09
Advances
4215.06
880.10
1217.83
Investment
1098.98
270.89
280.95
60.58
6.37
5.85
5374.62
1157.36
1504.63
Others
TOTAL
20
INTEREST EXPENSES
(Rs in crores)
Quarter Ended
Particulars
FY 0809
Jun 08
Jun 09
Interest on
Deposits
3487.13
768.61
980.88
Interest on Subordinate Debt
139.57
24.03
38.74
Interest on
Borrowings
121.01
18.47
43.64
3747.71
811.11
1063.26
TOTAL
21
PROFIT & LOSS ACCOUNT – NON-INTEREST INCOME
(Rs in crores)
A) Non-interest Income from Core
Operations
Quarter Ended
FY 08-09
Jun 08
Jun 09
1) Commission & Exchange
195.11
45.06
41.36
2) Other Income
293.70
49.99
52.50
Sub Total (A)
488.81
95.05
93.86
3.31
0.95
0.27
52.51
13.74
15.05
3) Profit on Sale of Investments
237.61
14.88
128.68
4) Loss on Redemption
-16.86
-15.86
0.21
Sub Total (B)
276.57
13.71
144.21
Total Non Interest Income
765.38
108.76
238.07
B) Non Interest Income from
Treasury
1) Dividend Income
2) Forex Profit
22
NON-INTEREST EXPENDITURE
(Rs in crores)
Quarter Ended
Particulars
FY 08-09
Jun 08
Jun 09
Establishment
Expenses
624.06
140.65
211.39
Other Operating
Expenses
480.20
109.09
120.05
1104.26
249.74
331.44
T O T A L:
As on Jun 2009, of the Total Non Interest Expenditure, Establishment Expenses
constituted 64% and Other Expenses constituted 36%. Establishment Expenditure
includes Rs.40 crs. Adhoc provision (Rs.20 crs in Mar 09) towards wage arrears
pending outcome of negotiation with IBA.
23
PROVISIONS & CONTINGENCIES
(Rs in crores)
Quarter Ended
Particulars
FY 08-09
Jun 08
Jun 09
Income Tax
245
5
95
Dep./Loss on revaluation of
Investments
173
77
-129
Provision for NPAs
170
39
38
Provision against Standard
Assets
13
0
0
Depreciation on Tr. To HTM
9
9
78
25
-3
10
635
127
92
Others
Total
Provision on restructured accounts
24
CAPITAL STRUCTURE
(Rs in crores)
PERIOD
ENDED
TOTAL
CAPITAL
TIER-I
CAPITAL
TIER-II
CAPITAL
% OF TIERI TO TOTAL
CAPITAL
FY 08-09
5563.84
3646.97
1916.87
65.55%
Jun 08
(Q1)
4296.25
3183.34
1112.91
74.10%
Jun 09
(Q1)
6356.01
3908.96
2447.05
61.50%
Tier I Capital Funds increased by Rs. 725.62 crores
and Tier II Capital Funds increased by Rs. 1334.14
crores from Jun 2008 to Jun 2009.
25
CAPITAL ADEQUACY AND OTHER RATIOS
Ratio
As Per
BASEL II
As Per
BASEL I
As Per
BASEL II
FY 08-09
Jun 08
(Q1)
Jun 09
(Q1)
Tier I Capital
Ratio
8.67%
8.99%
9.07%
Tier II Capital
Ratio
4.55%
3.14%
5.68%
Total Capital
Ratio (CRAR)
13.22%
12.13%
14.75%
Net Worth to
GBC %
7.78%
9.76%
8.69%
Capital Adequacy Ratio is at 14.75% as on
30.06.2009 as per BASEL II.
26
KEY RATIOS AND INDICATORS
Quarter Ended
Ratios
Cost of
Deposits %
Yield on
Advances %
Yield on
Investments %
FY 08-09
Jun 08
Jun 09
6.96
6.52
6.79
11.41
10.39
11.20
7.35
7.42
6.65
YoY, Cost of Deposits increased by 27 bps
while the Yield on Advances increased by
81 bps.
27
KEY RATIOS AND INDICATORS
Quarter Ended
Ratios
FY 0809
Jun 08
Jun 09
46.16
55.85
48.78
Staff Cost as % of
Average Working
Funds
1.04
1.01
1.22
Other Operating
Expenses as % of
Average Working
Funds
0.80
0.78
0.69
Cost to Income
Ratio
Cost to Income Ratio has been improving continuously YoY and as on Jun 09, the ratio
improved from 55.85% to 48.78%.
28
EARNING RATIOS
Quarter Ended
Ratios
FY 08-09
Jun 08
Jun 09
1.09
0.56
1.48
Return on Avg. Net
Worth (RONW) %
18.94
9.45
27.15
Earnings Per Share
(Amount in Rs.)
(Annualized)
13.46
6.40
21.13
Book Value Per
Share
(Amount in Rs.)
75.20
68.60
80.48
3.36
8.54
3.88
Return on Assets
(ROA) %
PE Ratio
As on Jun 09, Earnings per Share improved from 6.40 to 21.13 and the Book value
improved from Rs.68.60 to Rs.80.48. Market Capitalization as on 30.06.2009 is
Rs.3979.45 crores.
29
PRODUCTIVITY RATIOS
(Rs in crores)
Quarter Ended
Ratios
FY 08-09
Jun 08
Jun 09
Business Per
Employee
7.28
6.15
7.41
Gross Profit Per
Branch
0.90
0.60
0.96
Net Profit Per
Employee
0.05
0.02
0.07
72.50
60.73
72.71
Business Per
Branch
YoY Business Productivity Per Employee
increased by 20.49% and the Gross Profit per
Branch increased by 60% .
30
SHARE HOLDING PATTERN – JUN 2009
Share Capital
Rs.485 Crores
No. of Shares
485 Million
SHARE HOLDING PATTERN
Government of India
51.55
General Public
14.02
NRIs/OCB
0.11
Private Corporate Bodies
1.90
Mutual Funds & UTI
3.81
Banks/Fis/Insurance Cos
13.25
Foreign Institutional Investors
15.02
Others
0.34
Total
100.00
31
RESTRUCTURED ACCOUNTS AS ON 30.06.2009
(Rs in crores)
S.NO.
PARTICULARS
NO.OF
A/CS
AMOUNT
RESTURCTURED
1
Micro, Small
and Medium
Enterprises
13713
365.97
2
Housing Loans
16987
257.98
3
Major
Industries
78
1429.98
4
Loans,
Agricultural
Loans, Loans
given to Retail
Trade etc.
27977
307.22
Total
Restructured
58755
2361.15
32
MONITORING OF RESTRUCTURED ACCOUNTS
Special Cells created at all Controlling Offices.
Zonal Managers personally monitoring all the Restructuring Accounts.
All high value accounts of Rs.50 lacs and above monitored from Head Office.
Progress reviewed in Fortnightly Video Conference with all Zonal Offices.
33
34
BUSINESS STRATEGY - VERTICALS
The performance of the Bank is significant as a result of our attempt to transform it using the four
factors viz. technology, product, process and human resource management.
Organisational Restructuring by creating the following Verticals for hastening the decision making
process and defining Profit Centers with responsibility and accountability on Vertical Heads to
reach the set Goals.
Priority Sector
MSME
Retail Credit
Marketing
Mid Corporate
Large Corporate
Branch Operations
International Banking & Treasury
35
TECHNOLOGY INITIATIVES
All the Branches of the Bank are under CBS.
Internet Banking with customer transaction facility launched for retail and corporate CBS
customers.
‘SMS Alerts’ facility over mobile phones made available to more than 4.61 lac clientele
registered for the facility till now, enhancing the levels of customer service significantly and
increasing further.
Instant issuing of non personalized debit cards and transaction PIN is introduced.
Besides bank’s own ATMs, our debit cards are made acceptable in 38,000 ATMs.
Debit Card base has increased to 40.78 lakhs.
A web based inward remittance product ’AB Speedway’ is launched in association with Citi
Bank for speedy, cost effective and online transfer of funds from USA.
Bank has launched the E-Trade facility to provide seamless on-line and easy trading as well
as delivery based and intra day trading. It also allows a unique facility of Lien marketing of
funds.
36
EXPANSION INITIATIVES
Clientele base of the Bank improved by 2.5 million in the last one year.
Number of Business Delivery Channels increased from 2135 (30.6.08) to 2314
(30.06.09).
Number of branches increased from 1371 (30.06.08) to 1448 (30.06.09) covering 22
states and 2 Union Territories.
Number of ATMs increased from 660 as on 30.6.08 to 778 as on 30.06.09.
RTGS Facility extended through 805 branches
An initiative of RBI, National Electronic Funds Transfer (NEFT) Facility implemented at
Service Center, Mumbai along with 1164 branches
37
BRAND BUILDING MEASURES
Bank has signed MOU for launching a banking subsidiary in Malaysia jointly with
Bank of Baroda and Indian Overseas Bank.
Bank’s joint venture in Insurance business with Bank of Baroda and L&G Insurance,
UK is in final stages of launch.
Bank has introduced a friendly, intelligent, responsive ‘Dolle’ (The Dolphin), as
Mascot of the bank, first of its kind in the industry to reflect the stance of the bank
and as a step towards bringing national visibility.
The new corporate slogan ‘Andhra Bank….for all your needs’ is introduced reflecting
good recall and visual value.
38
CORPORATE SOCIAL RESPONSIBILITY
Community and Social Investment initiatives undertaken with the objective of
providing Philanthropic Assistance for development, education etc.
Sponsored “Andhra Bank School of Business” and “Andhra Pradesh Bankers’ Institute
of Entrepreneurship Development” which offers training to unemployed youth for
improving their skills.
Established Financial, Literacy and Credit Counseling Centers in all its Lead Districts
in Andhra Pradesh.
Trained over 78 thousand candidates through its 10 Rural Training Institutes, for
taking up gainful self employment.
Launched SHG lending through Smart Cards and as a part of “Financial Inclusion”
adopted 2 Districts and achieved 100% coverage.
As an initiative towards Financial Inclusion, launched 3 Mobile ATMs with Bio-Metric
Facility.
39
LOOKING FORWARD
Bank aims to attain a business mix of Rs.130,000 Crs by the end of March’10 at a
growth rate of 30% and Rs.150,000 Crs by September’10.
The Road Ahead
Bank is targeting to reach CASA percentage of 33% of total deposits by March’10.
Bank shall be rolling out the insurance products of its own Joint Venture for sale by July
’10.
Banking subsidiary in Malaysia jointly with BoB and IOB expected to function next year.
Bank has plans of opening 121 branches in the present financial year mostly in the
Northern parts of India and installing 50 ATMs.
40
www.andhrabank.in
THANK YOU
41