Indian Overseas Bank

इण्डियन ओवरसीज़ बैंक

PERFORMANCE ANALYSIS
Q2/H1 2018-19
OUR HERITAGE
 Indian Overseas Bank (IOB) was founded on 10th February 1937 by
Shri.M.Ct.M. Chidambaram Chettyar.
 Objective was to specialize in foreign exchange business and take Bank
across the globe.
 IOB started business simultaneously – at Karaikudi, Chennai and Rangoon in
Burma (presently Myanmar) followed by a branch in Penang, Malaysia.
 At the dawn of Independence IOB had 38 branches in India and 7 branches
abroad –and Deposits stood at Rs.6.64 crores and Advances at Rs.3.23 crores
at that time.
 IOB was one of the 14 major banks that were nationalized in 1969. On the eve
of Nationalization in 1969, IOB had 195 branches in India with aggregate
deposits of Rs.67.70 crores and Advances of Rs.44.90 crores.
 IOB sponsored two Regional Rural Banks. Pandiyan Grama Bank in Tamil Nadu
and Odisha Gramya Bank in Odisha.
 Bank’s overseas presence in 4 countries namely Singapore, Hongkong,
Thailand and Sri Lanka.

Page 2
DECADES OF HISTORY

81 years of Glorious History !

Good People to Growth with

2016– Migrated
to Finacle
30th Sept 2018-
Business mix of
2000– Initial 3732 bn and a
Public Offering branch network
2003 of 3303 branches
Follow on public
offering
1964– 2005
Inauguration of Launched debit
IOB Head Office Card
1957 – Bank 1969 2006
establishes its Bank Business Mix
own training Nationalisation crossed Rs. 1 lakh
1937 – Opening centre 1990 crore.
of First Bank 1960s Took over Bank of 2007
Branch IOB took over 6 Tamil Nadu Merged Bharat
1930’s 1950’s other Banks Overseas Bank
opening of with IOB
branches in
Kuala Lumpur,
Singapore,
Colombo,
Hongkong
Page 3
KEY STRENGTHS - QUALITATIVE
Touch Points: 3303
Domestic Branches, 57% branches in
81 years of Banking
5 Overseas Rural and SU centres
Expertise
Branches & 3789
ATMs

66% RAM share to 36 Million Active

Domestic Advances customers

Retail Share: 20.09% Agri Share: 22.79% MSME Share: 23.01%

Page 4
HIGHLIGHTS – QUANTITATIVE – SEP 18
Maintains Healthy
Non Interest Domestic CASA of 36.46%
Income with SB growth at 7.01%
RAM portfolio grew
increased by
by 8.82% (Y-o-Y)
9.78% (Y-o-Y)

Cost of Funds
Retail segment
declined by
recorded growth
19 bps (Y-o-Y)
of 17.07% (Y-o-Y)

GNPA Ratio Loss Incurring

reduced by 91 Branches to Total
bps and Net NPA Operating Profit for Branches decreased
reduced by 76 H1 2018-19 to 7.69% from
bps on Sequential increased by 11.13% in Mar18
Quarter basis 34.22% over H1 (32% Reduction in
2017-18 number of
branches) Page 5
TOP LINE MOVEMENT– Q2 2018-19
Y-o-Y Growth Q-o-Q Growth

Savings Bank Rs.67,437 Crs 7.01% 1.20%

Current Account Rs.12,782 Crs 3.93% 7.18%

Term Deposits Rs.1,42,950 Crs 4.94% 6.20%

Deposits Rs.2,23,169 Crs 5.49% 4.69%

Advances Rs.1,50,040 Crs -1.72% 0.86%

Page 6
HEADLINE NUMBERS – Q2 2018-19
Y-o-Y Growth Q-o-Q Growth

Interest Income Rs.4,284 Crs -7.79% 0.83%

Non Interest
Rs.1,065 Crs 10.37% -1.25%
Income

Interest
Rs.3,075 Crs -1.60% 1.15%
Expenditure

Operating
Rs.969 Crs -33.02% -16.07%
Expenses

Operating Profit Rs.1,304 Crs 25.58% 15.21%

Page 7
HEADLINE NUMBERS – H1 2018-19
Y-o-Y Growth

Interest Income Rs.8,532 Crs -3.40%

Non Interest
Rs.2,143 Crs 9.78%
Income

Interest
Rs.6,116 Crs -2.74%
Expenditure

Operating
Rs.2,123 Crs -20.84%
Expenses

Operating Profit Rs.2,436 Crs 34.22%

Page 8
 HIGHLIGHTS
 IOB Features in Forbes 500 Best Employers List.

 Maintains healthy Global CASA Ratio of 35.95% and Domestic CASA Ratio of
36.46% as at Sept 2018 .

 Global Deposits recorded a growth of 5.49% on Y-o-Y basis and ended at Rs.
2,23,169 crores.

 Global Advances ended at Rs. 1,50,040 crores with improved RAM

concentration of 61.91% at Rs. 92,887 crores.

 Retail Credit recorded a growth of 17.07% with Core Retail growing at 17.27% &
Agri grew by 6.59% on Y-o-Y basis.

 Better NPA Management, Slippages lesser than Recovery in Q2. 62% more
recovery than slippages.

 Provision Coverage Ratio improved from 55.88% in Sep 17 to 61.97% in Sept

2018.

 Cost to Income Ratio stood favourably lower at 42.62% for Q2 2018-19

Page 9
HIGHLIGHTS
 Other Income grew by 10.37% for Q2 2018-19 over Q2 2017-18 and recorded a
growth of 9.78% for H1 2018-19 over H1 2017-18.

 Interest Expenditure declined by 1.60% for Q2 2018-19 over Q2 2017-18 and

recorded a decline of 2.74% for H1 2018-19 over H1 2017-18

 Operating Profit stood at Rs. 1,304 crores for Q2 2018-19 as against Rs. 1,039
crores in Q2 2017-18 registering a growth of 25.58%. Operating Profit for H1
2018-19 stood at Rs. 2,436 crores with a growth rate of 34.22% (Y-o-Y).

 Net Loss stood at Rs. 487 crores for Q2 2018-19 as against s loss of Rs.1,223
crores for Q2 2017-18 (Reduction of 60%).

 Cost of Deposits and Cost of Funds dipped by 23 & 19 basis points respectively
on Y-o-Y basis for H1 2018-19.

 Business per employee consistently improved to Rs. 13.76 crores as of Sept-18

as against Rs. 12.61 crores as of Sept-17.

Page 10
 CUSTOMER TOUCH POINTS
4000 IOB Bank
Year Branches ATM/CR Mitra
3500
Mar-15 3381 3571 2841
3000
Mar-16 3397 3793 2894
2500
Branches Mar-17 3373 3679 2738
2000
ATM
Mar-18 3332 3552 2663
1500 BC

1000
Jun-18 3326 3608 2663

500 Sept-18 3303 3789 2663

0 BC: IOB Bank Mitra

Mar-15' Mar-16 Mar-17 Mar-18 Jun-18 Sep-18 CR: Cash Recyclers

Branch Network - Sept-18 ATM Network - Sept-18

915
892 895
28% 736 23% 24%
22%
Metro Metro
Urban Urban
Semi Urban Semi Urban
Rural Rural
981 671
30% 20% 1182 820
31% 22%

Note: Merged 30 branches and opened 1 branch during H1 2018-19 Page 11

GLOBAL FOOTPRINTS – FOREIGN BRANCHES
Representative Remittance
Branches Office
JV Subsidiary Centres

•Singapore •Dubai •Malaysia •Singapore –

•Hong Kong Main Serangoon Road
•Colombo
•Bangkok
•Sukhumvit,
Bangkok

Joint Venture in Malaysia: Joint Venture with Bank of Baroda (40%) and Andhra Bank (25%)
with IOB share of 35%

Page 12
 BUSINESS PERFORMANCE - GLOBAL
Rs in Crores

Particulars Mar-17 Sep-17 Mar-18 Jun-18 Sep-18 YoY(%)QoQ(%)

CASA Deposits 76269 75321 79678 78560 80219 6.50 2.11
Total Deposits 211343 211548 216832 213168 223169 5.49 4.69
Advances 156776 152664 150999 148760 150040 -1.72 0.86
Business Mix 368118 364212 367831 361928 373210 2.47 3.12
CASA% 36.09 35.60 36.75 36.85 35.95 0.34 -0.91
CD Ratio% 74.18 72.16 69.64 69.79 67.23 -4.93 -2.55
CASA Deposits Deposit Composition - Domestic
81000 80219
80000
79000 78560
9.09
78000
77000 16.16 Metro
76000 75321 Urban
75000 52.23 Semi Urban
74000
Rural
73000 22.52
72000
Sep-17' Jun-18 Sep-18
CASA Deposits

Page 13
 DEPOSIT COMPOSITION
Rs in Crores

Particulars Mar-17 Sep-17 Mar-18 Jun-18 Sep-18 YoY(%)QoQ(%)

Savings 63232 63022 66742 66634 67437 7.01 1.20
Current 13037 12299 12936 11926 12782 3.93 7.18
CASA Deposits 76269 75321 79678 78560 80219 6.50 2.11
Term Deposits 135074 136227 137154 134608 142950 4.94 6.20
Total Deposits 211343 211548 216832 213168 223169 5.49 4.69
CASA% 36.09 35.60 36.75 36.85 35.95 0.35 -0.91

Deposit Composition
Savings Current Term Deposits

31%

63%

6%

Page 14
 DEPOSITS & COST
Rs in Crores
Parameters Mar-15 Mar-16 Mar-17 Mar-18 Jun-18 Sep-18
Savings Deposits 47101 52404 63232 66742 66634 67437
Current Deposits 14640 12082 13037 12936 11926 12782
Bulk Deposits 89837 58917 29195 27906 26418 32291
Retail Term Deposits 89197 96029 100514 103743 103526 105970
Overseas Term Deposits 5274 5082 5366 5505 4664 4689
Total Deposits 246049 224514 211343 216832 213168 223169
CASA% 25.09 28.72 36.09 36.75 36.85 35.95

Parameters Mar-15 Mar-16 Mar-17 Mar-18 Jun-18 Sep-18

Interest Paid on Deposits 17246 16250 13026 11494 2797 5809
Cost of Deposits 7.62 7.11 6.17 5.49 5.32 5.35

Interest Paid on Deposits/CoD Deposits

20000 9 120000
18000 8 100000
16000 7 80000
14000 6
12000 60000
5
10000 40000
4
8000 20000
6000 3
2 0
4000
Mar-15' Mar-16 Mar-17 Mar-18 Jun-18 Sep-18
2000 1
0 0 Savings Deposits Current Deposits
Mar-15' Mar-16 Mar-17 Mar-18 Jun-18 Sep-18 Bulk Deposits Retail Term Deposits
Interest Paid on Deposits Cost of Deposits Overseas Term Deposits

Page 16
 SECTOR WISE GLOBAL ADVANCES
Rs in Crores
200000 200000

179041
180000 172727 180000
16204
9% 17299
156776
160000 10% 152664 160000
83317 14125 150999 150040
162837
70734 9% 12377 8% 8% 6%
155428 12483 9068
140000 140000
58852 8% 7%
48085
142651 54930 46898 140972
140287 138516

120000 32% 120000

41% 38% 36% 31%
47%
32%
100000 100000

32615 32437
80000 31804 30564 31022 80000
22% 22%
32251 19% 20%
18%
18% 21%
60000 60000
30820 32132
30237 29348 30146
20% 21%
40000 29236 18% 40000
20%
16% 19%
21%

20000 28183 28318 20000

22653 23887 24189
18033 19% 19%
13% 15% 16%
10% 19%
0 0
Mar'15 Mar-16 Mar-17 Sep-17 Mar-18 Sep-18

Retail Agri MSME Corporate/Others Overseas Domestic Global

Page 17
RISK SPREAD - ASSETS
Rs in Crores

Details Mar-16 Mar-17 Sep-17 Mar-18 Sep-18

Retail 22653 23887 24189 28183 28318
Agri 30237 29348 30146 30820 32132
MSME 31804 30564 31022 32615 32437
Corporate/Others 70734 58852 54930 46898 48085
Overseas 17299 14125 12377 12483 9068
Global 172727 156776 152664 150999 150040

Sep-17 Overseas Sep-18

Overseas
6%
8%
Retail Retail
15% Corporate 19%
Corporat Agri /Others
e/Others 19% 32% Agri
38% 21%
MSME MSME
19% 22%

Page 18
 RAM – THE GROWTH DRIVER
Rs in Crores
35000 32615
31804 32132 32437
30237 29348
30564 30146 31022 30820
30000 28183 28318

23887 24189
25000 22653

20000

15000

10000

5000

0
Mar-16' Mar-17 Sep-17 Mar-18 Sep-18

Retail Agri MSME

Particulars Mar-16 Mar-17 Sep-17 Mar-18 Sept-18

Retail 22653 23887 24189 28183 28318
Agri 30237 29348 30146 30820 32132
MSME 31804 30564 31022 32615 32437
Total RAM 84694 83799 85357 91618 92887
Domestic Advances 155428 142651 140287 138516 140972
% Share of RAM 54.49 58.74 60.84 66.14 65.89

Page 19
 GROSS ADVANCES & YOA Rs in Crores
200000 181081 179041 12
172726
180000
156776 150999 150040 10
160000 148760
140000 10.04 9.94
9.19 8
120000 8.43
100000 7.51 7.12 7.12 6
80000
60000 4
40000 2
20000
0 0
Mar-14' Mar-15 Mar-16 Mar-17 Mar-18 Jun-18 Sep-18

Gross Advances Yield on Advances

REPO RATE & IOB MCLR

9.70% 9.55% 9.50% 9.50%
8.70%
8.65% 8.65% 8.55% 8.55% 8.40% 8.40% 8.40% 8.50% 8.60% 8.65%

6.50% 6.50% 6.50% 6.50%

6.25% 6.25% 6.25% 6.25% 6.25% 6.00% 6.00% 6.00% 6.00% 6.00% 6.25%

Repo Rate IOB MCLR

Page 20
RETAIL PERFORMANCE Rs in Crores
Share of Retail on Domestic Gross Advances
180000
160000 45

140000
120000 35

100000
80000 20.34% 20.09% 25
16.75%
60000 14.57%
40000 11.17% 11.07% 15

20000
0 5
31.03.14 31.03.15 31.03.16 31.03.17 31.03.18 30.09.18

Gross Domestic Advance Retail Advance % Share

Year Gross Domestic Retail Advance % Share

Mar'14 161998 18101 11.17%
Mar'15 162838 18033 11.07%
Mar'16 155428 22653 14.57%
Mar'17 142651 23887 16.75%
Mar ’18 138516 28183 20.34%
Sep ‘18 140972 28318 20.09%
Page 21
 RETAIL GROWTH FOR SUSTAINABILITY
Retail Credit - By Segment (Rs. in Growth% - Home Loans & Retail
Crore) Loans
30000 30.00

26.98

25000 7380 25.00 24.08

6261
20000 20.00
2770
6703
17.06
7887 2368
4776 15.16
15000 15.00
1703
5016
1437
4532
10000 10.00 9.48
4365

13390
4.87
5000 10545 5.00
9157
7380

0 0.00
Sept-15' Sep-16 Sep-17 Sep-18 Sep-16' Sep-17 Sep-18

Home Education Auto Other Retail Loan Home loan Retail loan

Page 22
RETAIL SANCTIONS DEPICTS IMPROVED EFFICIENCY
Rs in Crores

Retail Loan Sanctions

16000

14000
Value of Loans Sanctioned Cumulative - Rs in Crore

12000

10000

FY 2016-17
8000
FY 2017-18
H1 2018-19
6000

4000

2000

0
April May June July Aug Sept Oct Nov Dec Jan Feb Mar

*Branch level sanctions Page 23

 MSME PERFORMANCE.
Rs in Crores
190000 45 Year Gross DomesticMSME Advance % Share
170000
150000 Mar'14 161998 28978 17.89%
130000 35
Mar'15 162838 32252 19.81%
110000

23.01%
23.55%
90000 Mar'16 155428 31804* 20.46%
19.81%

21.43%
20.46%

70000 25
50000 Mar'17 142651 30564* 21.43%
30000
Mar’18 138516 32615* 23.55%
10000 15
Mar'15 Mar'16 Mar'17 Mar'18 Sep'18
Sep’18 140972 32437 23.01%
Gross Domestic MSME Advance % Share * Netting of Rs. 7500 crores related to Food &
Agro processing units migrated and classified
under Agriculture
% Share of MSME Credit % Share of MSME Credit
Medium (O/S as on Sep’ 18) Rs. In Crores
13%
Category No of Amount in % Share
Micro Accounts Crores
41%
Micro 434229 13304 41%
Small
46% Small 26163 14897 46%

Medium 1373 4236 13%

Total 461765 32437 100%

Page 25
 AGRICULTURE ADVANCES - PERFORMANCES
Rs. In Crs

Position of Agriculture Advances Y-o-Y Growth

32500 2500 7.00%
32000 32132
31500 2000
6.44% 6.00%
31000 30820 5.00%
3.42% 4.69%
30500 30237 1500 4.00%
3.00%
30000
29438 1000 1986 2.00%
29500
1382 1.00%
29000 500 969
28500 0.00%

28000 0 -1.00%
2015-16 2016-17 2017-18 2018-19 2015-16 2016-17 2017-18 2018-19 -2.00%
-500 -799 (as on
(as on -3.00%
Sep18) -2.64% Sep18)
-1000 -4.00%
Outstanding Y-o-Y Growth % of Y-o-Y Growth

% of Y-o-Y
Financial Year Outstanding Y-o-Y Growth
Growth
2015-16 30237 969 3.42%
2016-17 29438 -799 -2.64%
2017-18 30820 1382 4.69%
Sep 2017 30146 708 2.41%
Sep 2018 32132 1986 6.44%
Page 26
PRIORITY SECTOR ADVANCES – OVERVIEW Rs. In Crore

70040 73900 Priority sector % of

67615 63984 Financial Year Achievement achievement
63635
47.47% 50.54%
40.29% 40.33% 2014-15 63635 39.00%
39.00%
2015-16 67615 40.29%
2016-17
(Avg 4 qtrs) 63984 40.33%
2017-18
2014-15 2015-16 2016-17 2017-18 2018-19 as (Avg 4 qtrs) 70040 47.47%
(Avg) (Avg) on Sep'18
Priority sector… 2018-19
(Sep 18) 73900 50.04%
Priority Sector Exposure as on 30.09.2018 Priority sector O/s as on
Housing % Share
11.08%
Other Priority exposure 30.09.2018
Sector
0.25% Agriculture 30632 40%
Education
5.88% MSME 32398 43%
Agriculture Education 4475 6%
40.23%
Housing 8439 11%
MSME Other Priority
192 0.25%
42.55% Sector
Total 73900 100%
Page 27
 AGRI ADVANCES – PRIORITY SECTOR Rs. In Crore

17.92% 18.02% 18.19% 20.23% 20.74%

35000

30000 29369 29236 30205 30236 28585 28865 29851 30632

26561 26583
25000

20000

15000

10000

5000

2014-15 2015-16 2016-17 (Avg) 2017-18 (Avg) 2018-19 as on

Target Achievement % Sep'18

Amt in Crs
Financial Year ANBC Target Achievement
(18% of ANBC) Amount %
2015-16 167805 30205 30236 18.02%
2016-17 158808 28585 28865 18.19%
(4 Quarters’ Avg)
2017-18 147561 26561 29851* 20.24%
(4 Quarters’ Avg)
2018-19 147681 26583 30632* 20.74%
(Upto Sep18)
*After reduction of PSLC sale of Rs.1300 Crs in FY 17-18 and Rs.1500 Crs in FY 18-19 upto Sep’18.
Page 28
 INCOME & EXPENSES Rs in Crores

Q2 Q1 Q2 H1 H1
Particulars 2017-18 2018-19 2018-19 YoY(%) 2017-18 2018-19 YoY(%)
Interest Income 4646 4249 4284 -7.79 8833 8532 -3.40
Non Interest Income 965 1078 1065 10.37 1952 2143 9.78
Total Income 5610 5327 5348 -4.67 10785 10675 -1.02
Interest Expended 3125 3041 3075 -1.60 6288 6116 -2.74
Staff Expenses 709 769 521 -26.58 1500 1289 -14.06
Other Expenses 737 386 448 -39.23 1181 834 -29.44
Total Expenses 4572 4195 4044 -11.54 8970 8239 -8.15
Operating Profit 1039 1132 1304 25.58 1815 2436 34.22

Page 29
 PROFITABILITY Rs in Crores

Q2 Q1 Q2 H1 H1
Particulars 2017-18 2018-19 2018-19 YoY(%) 2017-18 2018-19 YoY(%)
Operating Profit 1039 1132 1304 25.58 1815 2436 34.22
Provisions 2261 2051 1791 -20.77 3537 3843 8.66
of which
NPA Provisions 2110 2294 1678 -20.46 3910 3972 1.60

Other Provisions 151 -242 113 146.64 -373 -129 -65.31

Net Profit/Loss -1223 -919 -487 -60.14 -1722 -1407 -18.29
6000
4736
5000
4000
3000 2261 2051 1791
2000 1656
1276 1039 1129 1132 1304
777 685
1000
0
Q1 17-18 Q2 17-18 Q3 17-18 Q4 17-18 Q1 18-19 Q2 18-19
-1000
-2000
-3000
-4000
-5000
Operating Profit Provisions Net Profit/Loss

Page 30
 OTHER INCOME Rs in Crores
Q2 Q1 Q2 H1 H1
Particulars 17-18 18-19 18-19 YoY(%) 17-18 18-19 YoY(%)
Exchange & Commission 244 211 254 4.22 449 465 3.72
Proft on Sale of Investments 88 72 10 -88.42 514 82 -84.06
Profit on Exchange 149 119 137 -8.29 290 256 -11.75
All other income 484 676 664 37.20 700 1340 91.52
Total Other Income 965 1078 1065 10.37 1952 2143 9.78

Other Income - Q2 2018-19

Exchange &
Commission Proft on Sale
24% of
Profit on Exchange Investments
All other income 1%
13%
62%

Page 31
 PERFORMANCE RATIOS
Cost of Deposits (%) Yield on Advances (%)
5.60 5.57 5.58 9.00 8.51
5.55 8.00 7.52
7.12 6.95 7.12 7.14
5.50 7.00
5.44
5.45 6.00
5.39 5.39
5.40 5.00
5.35 5.32 4.00
5.30 3.00
5.25 2.00
5.20 1.00
5.15 0.00
Q1 17-18 Q2 17-18 Q3 17-18 Q4 17-18 Q1 18-19 Q2 18-19 Q1 17-18 Q2 17-18 Q3 17-18 Q4 17-18 Q1 18-19 Q2 18-19

Cost to Income Ratio (%) NIM (%)

70.00 65.71 3.00 2.73
61.40
58.21 58.49 2.46
60.00 2.50
50.48
50.00 1.92 1.92 1.91
42.62 2.00
1.65
40.00
1.50
30.00
1.00
20.00

10.00 0.50

0.00 0.00
Q1 17-18 Q2 17-18 Q3 17-18 Q4 17-18 Q1 18-19 Q2 18-19 Q1 17-18 Q2 17-18 Q3 17-18 Q4 17-18 Q1 18-19 Q2 18-19

Page 32
MOVEMENT OF RWA & CRAR Rs in Crores

Particulars Sep-17 Dec-17 Mar-18 Sep-18

Market Risk RWA 14643.44 16565.23 15189.38 14859.25
Operational Risk RWA 14758.84 14758.84 14758.84 15778.67
Credit Risk RWA 119483.55 115325.24 104960.48 96903.45

Total RWA (A) 148885.82 146649.31 134908.69 127541.37

CET 1 10539.91 9588.47 8626.32 9071.53
Tier 1 11609.91 10658.47 9666.32 9111.53
Tier 2 3751.72 3620.79 2816.58 2566.91
Total Capital (B) 15361.63 14279.26 12482.90 11678.44
CRAR (B/A) 10.32% 9.74% 9.25% 9.16%
Total RWA to Advance Ratio 97.53% 96.78% 89.34% 85.00%
Credit RWA to Advance Ratio 78.27% 76.10% 69.51% 64.58%

10.50%
CRAR
10.00% 10.32% 9.74%
9.50% 9.16%
9.00%
9.25%
8.50%
8.00%
7.50%
Sep-17 Dec-17 Mar-18 Sep-18

Page 33
CAPITAL OPTIMISATION Rs in Crores

RWA to Advance
100.00%
95.00% 97.53%
90.00% 96.78%
85.00% 89.34%
80.00% 85.00%
75.00%
70.00%
65.00%
60.00%
Sep-17 Dec-17 Mar-18 Sep-18

Credit RWA to Advance

80.00%
78.00% 78.27%
76.10%
76.00%
74.00%
72.00%
70.00% 69.51%
68.00%
64.58%
66.00%
64.00%
62.00%
60.00%
Sep-17 Dec-17 Mar-18 Sep-18

Page 34
BRANCH PROFITABILITY
Details Mar-14' Mar-15 Mar-16 Mar-17 Mar-18 Jun-18 Sep-18
Branches 3265 3381 3397 3373 3332 3326 3303
% of Loss Incurring Branches 23.64 21.95 21.14 15.89 11.13 11.67 7.69
3450 23.64 25.00

21.95
21.14
3400
3397 15.89 20.00

3381
3373
3350
11.13
11.67
15.00
3332
3326 7.69
3300
3303

10.00
3250 3265

5.00
3200

3150 0.00
Mar-14' Mar-15 Mar-16 Mar-17 Mar-18 Jun-18 Sep-18

Branches % of Loss Incurring Branches

*Branch level profitability is assessed based on Internal Transfer Price Mechanism followed by the Bank

Page 35
NPA MANAGEMENT Rs in Crores

Q2 FY Q1 Q2
Details 2017-18 2017-18 2018-19 2018-19
Opening Gross NPAs 35453 35098 38180 38146
Cash Recoveries* 405 1105 565 1723
Upgradation 235 2330 467 342
Write-Offs 1061 7018 1262 1425
Sale to ARCs/Others** 1736 3290 268 289
Total Reductions (a+b+c+d) 3437 13743 2563 3779
Fresh Slippages to NPA
category + Other Debits 2693 16825 2529 2743
Closing Gross NPAs (i-ii+iii) 34709 38180 38146 37110
Gross NPA (%) 22.73 25.28 25.64 24.73
Net NPAs (Absolute) 18950 20400 19642 18876
Net NPA (%) 13.86 15.33 15.10 14.34
Provision Coverage Ratio 55.88 59.45 61.10 61.97

Page 36
ADDITION/REDUCTION OF GNPA
Addition/ Reduction in GNPA
12000 2000

1800
10000
1600

1400
8000
1200

6000 1000

800
4000
600

400
2000
200

0 0
Q1 2017-18 Q2 2017-18 Q3 2017-18 Q4 2017-18 Q1 2018-19 Q2 2018-19
Total Additions Total Recovery Cash Recoveries

Page 37
INVESTMENTS Rs in Crores

Global Investments
82000
79740 79626
80000
78000 76573
76000
74000 72248 71640
72000 70263
70000 68006
68000
66000
64000
62000
Mar-14' Mar-15 Mar-16 Mar-17 Mar-18 Jun-18 Sep-18

Parameters Mar-16 Mar-17 Mar-18 Jun-18 Sep-18

Domestic Investments 76155 68627 66619 66854 72008
SLR 64028 58009 53019 53606 56259
Non SLR 12127 10618 13600 13248 15749
Held to Maturity 50862 45709 46543 46659 48570
Available for Sale 25273 22816 20076 19993 23438
Held for Trading 20 102 0 202 0
Investment by Overseas Branches 3471 3621 3644 4786 4565
Global Investments 79626 72248 70263 71640 76573

Page 38
 STRATEGIC INVESTMENTS – JOINT VENTURE
IOB entered into Non Life Insurance Business with Universal Sompo General Insurance (USGI)
Company Limited with equity participation of 18% along with the other Banks and Institutions

Shareholding %
Shareho
10.74%
Name of Entity lding % Investment

Indian Overseas Bank 18.06% 66 18.06%

14.26%
Allahabad Bank 28.52% 105 28.52%
28.42%
Sompo Japan Nipponkoa
Insurance Inc 28.42% 105

Karnataka Bank Ltd 14.26% 53

Dabur Investment Indian Overseas Bank Allahabad Bank

Corporation 10.74% 40 Sompo Japan Nipponkoa Insurance Inc Karnataka Bank Ltd

Total 100.00% 368 Dabur Investment Corporation

 USGIC has entered into Bancassurance tie up with Allahabad Bank, IOB &
Karnataka Bank.
 IOB entered into Corporate Agency arrangements with effect from 20th
December 2008 for distribution of USGI products.

Page 39
 SHARE HOLDING PATTERN – SEPT 2018
DIVIDEND DECLARED AND PAID (in %)
Interim Final
YEAR
Dividend Dividend Shareholding Pattern %
2000-01 10% 0.01
Promoter
2001-02 12% 0.15 0.00
0.47
2002-03 16% 0.01
Foreign Portfolio
Investors
2003-04 12% 8% 3.11
0.27
0.00 0.07
Financial Institutions/
2004-05 14% 10% 0.51 Banks
5.64 Insurance Companies
2005-06 26%
2006-07 30% Foreign Institutional
Investors
2007-08 35% Resident Individual
Shareholders
2008-09 45%
Corporate Body
2009-10 35%
2010-11 50% Clearing Member

2011-12 45% 89.74 NRI

2012-13 20%
Corporate Body -OCB
2013-14 7% 5%
2014-15 - - Trusts

2015-16 - - Others
2016-17 - -
2017-18 - - Page 40
VALUATIONS

Particulars (Rs. Crs) Q2 17-18 Q1 18-19 Q2 18-19

Earning per Share (`) (Annualised for
Quarters)
- ve - ve - ve

Book Value per Share (`) 26.22 8.43 7.16

Adjusted Book Value per Share (`) [(Net
Worth - Net NPA)/No of Shares]
- ve - ve - ve

Price/Book Value (`) 0.85 1.67 1.83

Price/Adjusted Book Value (`) - ve - ve - ve

PE Ratio - ve - ve - ve

* Price as on 30.09.2018 Rs. 13.10 (NSE)

Page 41
AWARDS & ACCOLADES

Adjudged as
“ Vani” Bank’s
2nd “Best
NABARD- SHG Quarterly Hindi
Performing
Bank Linkage Magazine was
Bank in terms of
Programme - awarded 2nd
Aadhaar
2nd Position Prize in C
generation and
Best Region under
update (using
performance in Rajbhasha
Online client
the State of Keerti Puraskar
version) during
Tamil Nadu for by Govt of
the Aadhaar
the FY 2017-18 India for 2017-
Excellence
18
Awards 2018.

Page 42
DIGITAL INITIATIVES

•IOB Nanban
•UPI Merchant QR •IOB mPassbook
•RuPay Enabled PG •Mobile Banking
•IOB Pay Registration
•BBPS through ATM
Payment Mobility •IOB Sahayak
Initiatives Initiatives

ATM Value Customer

Additions Experience

•Green PIN •Customer Feedback

•IOB Rewardz •Missed Call Balance
•Prepaid Card Enquiry

Page 43
CUSTOMER EXPERIENCE INITIATIVES
Customer can call to the specified number for to
provide a feedback about our service
If you are unhappy with our service please call
8828846220
 If you are happy with our service please call
8828846225

Customer can give missed call to

9210622122 to know your account balance
 All account balance linked to the
mobile number will be sent as SMS

Automated voice call wishes for HNI

customers On their Birthdays

Page 44
DISCLAIMER
 Except for the historical information contained herein, statements in this release
which contain words or phrases such as “will”, “aim”, “will likely result”, “would”,
“believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”,
“plan”, “contemplate”, “seek to”, “future”, “objective”, “goal”, “strategy”,
“philosophy”, “project”, “should”, “will pursue” and similar expressions or
variations of such expressions may constitute "forward-looking statements".

 These forward-looking statements involve a number of risks, uncertainties and

other factors that could cause actual results to differ materially from those
suggested by the forward-looking statements. These risks and uncertainties
include, but are not limited to our ability to successfully implement our strategy,
future levels of non-performing loans, our growth and expansion, the adequacy
of our allowance for credit losses, our provisioning policies, technological
changes, investment income, cash flow projections, our exposure to market risks
as well as other risks. Indian Overseas Bank undertakes no obligation to update
forward-looking statements to reflect events or circumstances after the date
thereof.

Page 45
THANK YOU