Transcript Document

1
Performance / Financial
Highlights
September 2006
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 Channels – 1829
 Two Regional Rural Banks
 Dividend Declared – 14%, 24%, 28%, 30% &
35% during the last five years.
3
Performance Highlights for September 2006
• Total Business crossed Rs. 56100 Crores.
• Very Low NPA levels – Gross NPAs @ 1.76%
& Net NPAs @ 0.10 %.
• Net Profit increased by
basis.
20.55 % on Y on Y
• Provision Coverage increased by
on Y basis to 93.49% of NPAs.
5.42% on Y
4
Branch Network
As on
Rural
Urban
Metro
Total
381
Semi
Urban
317
31.03.04
277
153
1128
31.03.05
385
329
294
160
1168
30.09.05
385
333
298
161
1177
31.03.06
389
345
314
165
1213
30.09.06
389
353
318
173
1233
 Bank has presence in 21 States and 2 Union Territories
5
Business Delivery Channels / Service Outlets
FY
2004
FY
2005
Sept
2005
FY
2006
Sept
2006
Branches
1128
1168
1177
1213
1233
Extension
Counters
129
136
142
123
116
ATMs
272
330
346
391
443
Satellite
Offices
44
38
38
37
37
TOTAL
1573
1672
1703
1764
1829
6
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
30-09-05
8052
2863
2271
13186
0.36
31-03-06
8072
2827
2270
13169
0.35
30-09-06
7990
2807
2264
13061
0.35
As on
7
Technology Initiatives / Value Added Services





100% Branch Computerization by 31.03.2003.
ATMs increased from 346 as on 30.09.2005 to 443 as
on 30.09.2006.
Branches/ECs connected to ATMs increased from 830
as on 30.09.2005 to 986 as on 30.09.2006
No. of ATM/Debit cards increased from 1.55 million as
on 30.09.2005 to 2.07 million as on 30.09.2006.
Total shared ATM net work with IDBI Bank, UTI Bank,
Indian Bank, HDFC Bank, SBI group and others stand at
15500
Contd…
8
Technology Initiatives/Value Added Services
 Cash Management Services commenced in 2004. Turnover
crossed Rs.1147 cr for 86 customers in 123 branches during
2005-06. As on 30.09.2006 the Turnover stood at Rs.684.81
crores from 92 customers in 124 branches.
 1026 business units (917 branches, 94 Extension Counters & 15
Service Centers) covered under Cluster based Core Banking.
75.59% Branch network and 92.50% of business covered.
Contd…
9
Technology Initiatives/Value Added Services
ATM hits crossed 1.39 lakh per day.
Mobile Recharging facility.
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, Internet Banking, Indian Railway Ticket
Counter Service 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.
10
Business Levels
Details
(Rs in crores)
Deposits
30.09.2006 % Growth
32513
8.85
29869
Advances (GBC)
19152
Investments (Net)
10358
C / D Ratio(%)
30.09.2005
64.55%
23600
11432
72.79%
666.11
Net Interest Income
562.89
Operating Profit
360.61
Core Operating Profit (excluding
Profit on sale of Investments)
333.78
429.59
406.43
Net Profit
218.05
262.85
Net NPAs
48.92
22.59
0.10%
% of Net NPAs to Net Advances
0.26%
23.22
10.36
8.24
18.34
19.13
21.77
20.55
-53.82
-0.16
11
Deposits - Composition
(Rs in crores)
Type of Deposit
31.3.2004
Current Deposits
2218.94
2558.29
2443.65
3084.82
2880.47
9.67%
9.29%
8.18%
9.09%
8.86%
Savings Deposits
6348.12
7400.77
8277.39
9232.39
10060.54
- Percentage
Share
27.67%
26.86%
27.71%
27.22%
Term Deposits
14373.44
17591.65
19148.14
21605.20
19571.77
- Percentage
Share
62.66%
63.85%
64.11%
63.69%
60.20%
T O T A L:
22940.52
27550.71
29869.18
33922.41
32512.78
- Percentage
Share
31.03.2005
30.09.2005
31.03.2006
30.09.2006
30.94%
12
Deposits - Average
(Rs in crores)
Type of Deposit
31.03.2004
31.03.2005
30.09.2005
31.03.2006
Average
Current Deposits
1317.13
1778.83
1949.21
2219.71
2379.47
Average
Savings
Deposits
5262.42
6712.14
7903.40
8087.18
9409.51
14415.58 14706.07 16643.01 18258.93
20149.79
20995.13 23197.04 26495.62 28565.82
31938.77
Average
Term Deposits
T O T A L:
30.09.2006
13
Advances - Major Sector-Wise Exposure
SECTOR
31.03.04
(Rs in crores)
31.03.05 30.09.05 31.03.06
30.09.06
700
800
960
751
636
12684
17110
18393
21733
22964
15.94%
34.89%
15.00%*
27.02%
11.33%*
- Medium & Large
Industries
3511
4958
5694
6412
6981
- Wholesale Trade
171
141
108
125
120
- Priority Sector
5144
7331
7802
8627
9575
- Other Sectors
3858
4680
5098
6569
6288
13384
17910
19153
22484
23600
12.48%
33.82%
13.88%*
25.24%
9.93%*
Food Credit
Non-food Credit
Growth in Non Food
Credit
Gross Bank Credit
G B C growth %
* Percentages are annualized
14
Retail Credit
Category
(Rs in crores)
31.03.04 31.03.05
30.09.05
31.03.06
30.09.06
1293
1878
1792
2436
2867
Educational
Loans
396
513
618
677
810
Other Retail
Credit
1008
1324
1457
1934
1587
Total
2697
3715
3867
5047
5264
Housing Loans
15
Quality of Loan Assets
Asset Quality
31.03.04
31.03.05
30.09.05
31.03.06
30.09.06
95.40%
97.48%
97.73%
98.06%
98.23%
Sub-Standard Assets
1.55%
0.75%
0.45%
0.51%
0.39%
Doubtful Assets
3.01%
1.73%
1.76%
1.30%
1.25%
Loss Assets
0.04%
0.04%
0.06%
0.13%
0.13%
Standard Assets
TOTAL
100.00%
100.00% 100.00% 100.00% 100.00%
16
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
30.09.2005
435.13
2.27
48.14
0.26
31.03.2006
436.91
1.94
52.46
0.24
30.09.2006
416.12
1.76
22.59
0.10
17
Provision Coverage for NPAs & Slippage Ratios
As on
Provision
Coverage %
Slippage Ratio %
31.03.2004
31.03.2005
30.09.2005
80.16
88.22
88.07
2.61
1.18*
0.30
31.03.2006
30.09.2006
87.20
93.49
0.88
0.25
* Slippage ratio brought down considerably even after adoption of 90 day norm
18
NPA Movement
PARAMETER
(Rs in crores)
31.03.04 31.03.05 30.09.05 31.03.06 30.09.06
Gross NPAs at the beginning
of the period
580.70
615.37
440.93
440.93
436.91
Less: Reduction during the
period
259.89
324.68
57.55
157.28
76.43
NPAs after reduction
320.81
290.69
383.38
283.65
360.48
Add: Additions during the
period
294.56
150.24
51.75
153.26
55.64
Gross NPAs at the end of the
period
615.37
440.93
435.13
436.91
416.12
Net NPAs at the end of the
period
120.07
48.97
48.14
52.46
22.59
19
Investments
(Rs in crores)
Particulars
31.03.04
31.03.05
30.09.05
31.03.06
30.09.06
Total (Net)
Investments
10317.35
10646.28
10358.89
11444.15
11432.04
Average
Investments
10660.00
10112.08
10150.00
10846.97
11792.50
Profit on Sale of
Investments
401.76
385.51
26.83
70.84
23.16
Yield on
Investments
8.92%
8.14%
7.54%
7.29%
7.14%
20
Investments - Composition
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
(Rs in crores)
31.03.04 31.03.05 30.09.05 31.03.06 30.09.06
8810.14
8777.55
8683.81
9749.29
9467.89
212.52
152.99
155.25
153.14
148.54
89.02
243.64
160.24
133.98
174.05
956.25
1168.31
1103.21
924.71
872.96
9.31
9.31
9.31
9.31
9.31
240.11
294.48
247.07
473.74
759.29
10317.35
10646.28
10358.89
11444.15
11432.0421
Quality of Investments Portfolio
 Duration of Investment portfolio as on 30.09.2006 is
4.73 years. (4.81 years as on 30.06.2006)
 Duration of AFS portfolio as on 30.09.06 is 1.01 years
(1.23 yrs as on 30.06.2006)
 NPAs in Investment Portfolio – Rs.46.68 lakhs –100%
provided.
22
Profit & Loss Account - Spread Management
(Rs in crores)
Particulars
FY
2004
FY
2005
Sep
2005
FY
2006
Sep
2006
Interest Income
2227.26
2273.46
1252.53
2674.37
1531.99
Interest Expenses
1316.68
1204.42
689.64
1505.39
865.88
Interest Spread
(NII)
910.58
1069.04
562.89
1168.98
666.11
Net Interest
Margin
3.78%
3.58%
3.68%
3.32%
3.81%
23
Interest Income
(Rs in crores)
Particulars
Advances
Investment
Others
T OTAL
FY 2004
FY 2005
Sep 2005
FY 2006
Sep 2006
1230.82
1358.60
836.97
1763.37
1056.15
951.16
823.27
377.75
790.60
417.09
45.28
91.59
37.81
120.40
58.75
2227.26
2273.46
1252.53
2674.37
1531.99
24
Interest Expenses
(Rs in crores)
FY
2004
FY
2005
1238.93
1129.42
630.45
1388.62
819.55
Interest on Subordinate Debt
45.78
49.33
30.08
56.45
26.90
Interest on Borrowings
31.98
25.67
29.11
60.32
19.43
1316.69
1204.42
689.64
1505.39
865.88
Particulars
Interest on Deposits
TOTAL
Sep
2005
FY
2006
Sep
2006
25
Profit & Loss Account – Non-interest Income
Sep
2005
(Rs in crores)
FY
Sep
2006
2006
A) Non-interest Income
from Core Operations
FY
2004
FY
2005
1. Commission & Exchange
115.91
139.04
80.14
169.71
93.68
2) Dividend Income
14.76
9.94
4.82
8.42
3.91
3) Forex Profit
20.06
28.45
13.48
27.71
14.29
4) Other Income
125.55
190.41
69.85
181.39
95.46
Sub Total
276.28
367.84
168.29
387.23
207.34
B) Profit on Sale of
Investment
401.76
385.51
26.83
70.84
23.16
Total Non Interest Income
678.04
753.35
195.12
458.07
230.50
26
Non-Interest Expenditure
(Rs in crores)
Particular
FY
2004
FY
2005
Sep
2005
FY
2006
Sep
2006
Establishment
Expenses
409.41
539.53
228.88
492.89
283.40
Other Operating
Expenses
249.05
289.93
168.52
365.05
183.62
T O T A L:
658.46
829.46
397.40
857.94
467.02
27
Provisions & Contingencies
(Rs in crores)
Sep
2005
FY
2005
224.09
222.77
83.00
80.00 111.00
-7.41
166.52
23.18
65.29
-0.58
242.53
12.40
0.00
40.00
8.04
Provision against
Standard Assets
3.50
13.29
4.00
39.87
11.50
Amortization
3.96
66.47
32.38
66.52
36.17
Others
0.00
-8.62
0,00
- 8.07
0.61
466.67
472.83
142.56
Particulars
Income Tax
Dep./Loss on revaluation
of Investments
Provision for NPAs
Total
FY
2006
Sep
2006
FY
2004
283.61 166.74
28
Net Profit
(Rs in crores)
FY
2004
FY
2005
Sep
2005
FY
2006
Sep
2006
Operating Profit
930.17
992.93
360.61
769.11
429.59
Core Operating
Profit (excl. Profit
from sale of
Investments)
528.40
607.42
333.78
698.27
406.43
Provisions
466.67
472.83
142.56
283.61
166.74
Net Profit
463.50
520.10
218.05
485.50
262.85
Particulars
29
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%
30.09.2005
2466.95
1728.37
738.58
70.06%
31.03.2006
3295.71
2872.19
423.52
87.15%
30.09.2006
3561.36
3135.04
426.32
88.03%
30
Financial / Performance
Key Ratios and Indicators at a Glance
FY
2004
Cost of Deposits
Yield on
Advances
Yield on
Investments
FY
2005
Sep
2005
FY
2006
Sep
2006
5.87
4.86
4.78
4.86
5.13
10.52
9.43
9.35
9.26
9.72
8.92
8.14
7.54
7.29
7.14
Contd…
31
Financial / Performance
Key Ratios and Indicators at a Glance
Cost / Income Ratios
FY
2004
FY
2005
Sep
2005
FY
2006
Sep
2006
Non Interest Income to
Average Working Funds
2.70
2.67
1.22
1.30
1.20
Cost of Sources
5.24
4.27
4.28
4.28
4.50
Yield from Uses
8.86
8.06
7.78
7.60
7.96
Net yield
3.62
3.79
3.50
3.32
3.46
Contd…
32
Financial / Performance
Key Ratios and Indicators at a Glance
Sep
2006
Cost / Income Ratios
FY
2004
FY
2005
Sep
2005
FY
2006
Cost to Income Ratio
41.45
45.51
52.43
52.73 52.09
Staff Cost as % of AWF
1.63
1.91
1.42
1.40
1.47
Other Operating Expenses
as % of AWF
0.99
1.03
1.05
1.04
0.95
Contd…
33
Earnings Ratios
FY
2004
FY
2005
Sep
2005
FY
2006
Sep
2006
Return on Avg. Assets
(ROAA) %
1.84
1.84
1.35
1.38
1.36
Return on Net Worth
(RONW) %
35.91
28.31
21.40*
16.78
16.70*
Earnings Per Share
(Amount in rupees)
(On annualized basis)
11.59
13.00
10.90
11.78
10.84
Book Value Per Share
(Amount in rupees)
36.65
45.93
50.93
59.67
64.90
* Ratios are annualized
Contd…
34
Productivity Ratios
FY
2004
Business Per
Employee
Gross Profit Per
Branch
Net Profit Per
Employee
Business Per
Branch
* Annualized
FY
2005
250.30
346.25
81.80
85.01
3.50
3.97
3213.00
3885.87
(Rs in Lakhs)
Sep
2005
FY
2006
Sep
2006
350.00
426.75
429.62
61.28
63.41
* 69.68
3.11
3.69
* 4.02
4164.91
4633.02
4550.90
*
*
Contd…
35
Capital Adequacy / Other Ratios
As on
31.03.04
As on
31.03.05
As on
30.09.05
As on
31.03.06
As on
30.09.06
Tier I Capital Ratio
8.17%
8.03%
8.36%
12.20%
12.06%
Tier II Capital Ratio
5.54%
4.08%
3.58%
1.80%
1.64%
Total Capital Ratio
(CRAR)
13.71%
12.11%
11.94%
14.00%
13.70%
Net Worth to GBC %
11.27%
10.26%
10.64%
12.87%
13.34%
Net NPAs to Net
worth %
8.27%
2.67%
2.40%
1.81%
0.72%
Net NPAs to Net
Advances %
0.93%
0.28%
0.26%
0.24%
0.10%
Contd…
36
Additional Disclosures
Break up of Investments
Nature of
Investments
As on
31.03.2005
Amt.
% of
Total
(Rs in crores)
As on 30.092005
Amt.
% of
Total
As on
31.03.2006
Amt.
% of
Total
As on 30.09.2006
Amt.
% of
Total
SLR Securities
8398
78.88
8321
80.19
9370
81.88
9084
79.46
Non-SLR
Securities
1758
16.51
1547
15.04
1584
13.84
1858
16.25
490
4.61
490
4.77
490
4.28
490
4.29
10646
100
10358
100
11444
100
11432
100
Recapitalization Bonds
Total
Contd…
SLR maintained as on 30.09.2006 – 26.48 % of NDTL
37
Additional Disclosures
 CRAR as per extant guidelines of RBI including capital charge
for Market Risk stands at 13.70 % as on 30.09.2006 as against
14.38% as on 30.06.2006.
 If capital charge for Operational Risk, which is effective from
31.03.2007 is also factored, the CRAR would stand at 12.40%.
(RWAs for Operational Risk as on 31.03.2006 are reckoned for
this purpose)
Contd…
38
Value Added Services
 Internet Payment Gateway through SIFY
 Introduced 8 a.m. to 8 p.m. and 7 day Banking in select
branches to extend the Service hours to clientele
 Opened a Representative Office in Dubai to coordinate with
NRIs for increasing our NRI customer base.
 Imparting training to Agriculturists, Rural Un- employed
youth on vocational courses through our 9 Rural Development
Institutes.
 Opening of representative offices is under consideration –
Riyadh, Muscat, Kuwait & Doha
Contd…
39
40
41
ISO 9001:2000 Certificate
ISO 9001:2000 Certification has been awarded to
100 of our Branches & two of our offices
STAFF COLLEGE
DATA CENTRE at Department of
Information Technology
42
Results that define pursuit of
Excellence is due to:
 Support from Customers, Stake-holders and Well Wishers,
 Team work of 13000+ dedicated employees
AND
 Excellent co-operation from Banking Analysts.
43
44
45