powerpoint presentation - bank of indiapowerpoint presentation author anant ranka created date...

Corporate PresentationMarch 2020

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DISCLAIMER

This presentation has been prepared for general information purposes in respect of Bank of India (“Bank”) together with its subsidiaries (together, with the Bank, the “Group”) only, without regard to any specific objectives,suitability, financial situations and needs of any particular person and does not constitute any recommendation or form part of any offer or invitation, directly or indirectly, in any manner, or inducement to sell or issue, or anysolicitation of any offer to purchase or subscribe for, any securities of the Bank in any jurisdiction, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract orcommitment therefor. This presentation does not solicit any action based on the material contained herein. Nothing in this presentation is intended by the Group to be construed as legal, accounting or tax advice.

This presentation has not been approved and will not or may not be reviewed or approved by any statutory or regulatory authority in India or by any Stock Exchange in India.

This presentation contains certain forward-looking statements relating to the business, financial performance, strategy and results of the Group and/ or the industry in which it operates. Forward-looking statements arestatements concerning future circumstances and results, and any other statements that are not historical facts, sometimes identified by the words including, without limitation “believes”, “expects”, “predicts”, “intends”,“projects”, “plans”, “estimates”, “aims”, “foresees”, “anticipates”, “targets”, and similar expressions. The forward-looking statements, including those cited from third party sources, contained in this presentation are based onnumerous assumptions and are uncertain and subject to risks. A multitude of factors including, but not limited to, changes in demand, competition and technology, can cause actual events, performance or results to differsignificantly from any anticipated development. Neither the Group nor its affiliates or advisors or representatives nor any of its or their parent or subsidiary undertakings or any such person's officers or employees guaranteesthat the assumptions underlying such forward-looking statements are free from errors nor does either accept any responsibility for the future accuracy of the forward-looking statements contained in this presentation or theactual occurrence of the forecasted developments. Forward-looking statements speak only as of the date of this presentation and are not guarantees of future performance. As a result, the Group expressly disclaims anyobligation or undertaking to release any update or revisions to any forward-looking statements in this presentation as a result of any change in expectations or any change in events, conditions, assumptions or circumstanceson which these forward looking statements are based. Given these uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. Certain numbersin these presentations and materials have been subject to routine rounding off and accordingly figures shown as total in tables and diagrams may not be an arithmetic aggregation of the figures that precede them.

The information contained in these presentations and materials are only current as of the dates specified herein and have not been independently verified. None of the Group, its directors, promoter or affiliates, nor any of itsor their respective employees, advisers or representatives or any other person accepts any responsibility or liability whatsoever, whether arising in tort, contract or otherwise, for any errors, omissions or inaccuracies in suchinformation or opinions or for any loss, cost or damage suffered or incurred howsoever arising, directly or indirectly, from any use of this presentation or its contents or otherwise in connection with this presentation, andmakes no representation or warranty, express or implied, for the contents of this presentation including its accuracy, fairness, completeness or verification or for any other statement made or purported to be made by any ofthem, or on behalf of them, and nothing in this presentation or at this presentation shall be relied upon as a promise or representation in this respect, whether as to the past or the future. Past performance is not a guide forfuture performance. The information contained in this presentation is current, and if not stated otherwise, made as of the date of this presentation. The Group undertakes no obligation to update or revise any information inthis presentation as a result of new information, future events or otherwise. Any person/ party intending to provide finance/ invest in the shares/ businesses of the Group shall do so after seeking their own professional adviceand after carrying out their own due diligence procedure to ensure that they are making an informed decision.

This presentation is not a prospectus, a statement in lieu of a prospectus, an offering circular, an advertisement or an offer document under the Companies Act, 2013, as amended, the Securities and Exchange Board of India(Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, or any other applicable law in India.

This presentation is strictly confidential and may not be copied or disseminated, reproduced, re-circulated, re-distributed, published or advertised in any media, website or otherwise, in whole or in part, and in any manner orfor any purpose. Any unauthorized use, disclosure or public dissemination of information contained herein is prohibited. No person is authorized to give any information or to make any representation not contained in orinconsistent with this presentation and if given or made, such information or representation must not be relied upon as having been authorized by any person. Failure to comply with this restriction may constitute a violationof the applicable securities laws. Neither this document nor any part or copy of it may be distributed, directly or indirectly, in the United States. The distribution of this document in certain jurisdictions may be restricted by lawand persons in to whose possession this presentation comes should inform themselves about and observe any such restrictions. Accordingly, any persons in possession of the aforesaid should inform themselves about andobserve any such restrictions. By reviewing this presentation, you agree to be bound by the foregoing limitations. You further represent and agree that you are located outside the United States and you are permitted underthe laws of your jurisdiction to receive this presentation. You may not repackage or sell the presentation. Information contained in a presentation hosted or promoted by the Group is provided “as is” without warranty of anykind, either expressed or implied, including any warranty of fitness for a particular purpose.

This presentation is not an offer to sell or a solicitation of any offer to buy the securities of the Bank in the United States or in any other jurisdiction where such offer or sale would be unlawful. Securities may not be offered,sold, resold, pledged, delivered, distributed or transferred, directly or indirectly, in to or within the United States absent registration under the United States Securities Act of 1933, as amended (the “Securities Act”), exceptpursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States.The Bank’s securities have not been and will not be registered under the Securities Act.

By accessing this presentation, you accept this disclaimer and any claims arising out of or in connection with this presentation shall be governed by the laws of India and only the courts in Mumbai, India, and no other courtsshall have jurisdiction over the same.

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89.10%

4.78%

0.85%

0.44%

4.83%

Government of India

Insurance

Mutual Funds/FI/Banks

FPIs

Others

OVERVIEW

Incorporated in 1906 and operated as a private bank until nationalization in 1969

One of the top five public sector banks in terms of assets and deposits1

Principal banking operational units include:

Corporate Banking

Retail Banking

Agricultural Banking

MSME Banking

International Banking

Provides services on behalf of the Government like collection of taxes, broker stamp duty

collection, and pension disbursements

Provide bancassurance services for distribution of insurance products, mutual fund

products, credit and debit cards, portfolio management services, depository participant

services and merchant banking activities

Best Performing Public Sector Bank in APY2

Formation Day Campaign (Fiscal 2020) – PFRDA3

Best Public Sector Bank – India Banking Summit &Awards 2019 – Synnex Group

Most Innovative Large Size Bank of the Year – ETBFSIExcellence Awards 2019

5,089Domestic Branches

5,750ATMs

28 States

& 8 UTs

94.89 MnCustomers

Overview Awards & Accolades

Bank’s Network Shareholding Pattern

2nd Most Trusted Brand – Banks Category – Reader’sDigest Trusted Brand 2019

SKOCH Order of Merit AWARD 2019 in GOLDCategory for BOI Mobile

As on Dec 31, 2019 As on Dec 31, 2019

2nd Most Trusted Brand in Public Sector – BankingCategory – ‘ET Now’ Survey (Fiscal 2019)

1] Source: Indian Banks’ Association. Available at http://www.iba.org.in/; 2] Atal Pension Yojana; 3] Pension Fund Regulatory and Development Authority

19Countries

http://www.iba.org.in/

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KEY MILESTONES

1921 1969 1982 199719461906 1974 2008

Incorporated as ‘The Bank

of India Limited’ in Mumbai

Set up of branch office

in London

Started managing the clearing house of BSE Limited

Nationalization of the Bank

Initial Pubic Offering -

Equity shares listed on NSE

and BSE

Set up of branch office

in Paris, Europe

Qualified Institutional Placement of Equity Shares

Introduction of health code system

for evaluating & rating the Bank’s credit portfolio

2019

ESPS –94.70%

Employee Participation

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9MFY20 HIGHLIGHTS

Standalone financials; Figures mentioned in brackets correspond to 9MFY19

Total Deposits

Rs. 5,221.38 Bn(Rs. 5,151.28 Bn)

Net Interest Income

Rs. 114.64 Bn(Rs. 96.13 Bn)

NIM

2.83%(2.41%)

Cost-Income Ratio

46.23%(55.95%)

Total Net Advances

Rs. 3,366.61 Bn(Rs. 3,311.14 Bn)

Operating Profit

Rs. 88.66 Bn(Rs. 57.89 Bn)

CASA

42.69%(42.65%)

PCR

77.15%(76.76%)

Yield on Average Advances

8.60%(8.07%)

Net Profit

Rs. 6.15 Bn(Rs. -57.99 Bn)

RoAA

0.13%(-1.28%)

GNPA

16.30%(16.31%)

Cost of Average Deposits

4.56%(4.48%)

CRAR

14.20%(12.47%)

RoAE

3.12%(-41.51%)

NNPA

5.97%(5.87%)

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FY19 HIGHLIGHTS

Total Deposits

Rs. 5,208.62 Bn(Rs. 5,208.54 Bn)

Net Interest Income

Rs. 136.58 Bn(Rs. 105.06 Bn)

NIM

2.55%(1.89%)

Cost-Income Ratio

56.93%(56.04%)

Total Net Advances

Rs. 3,410.06 Bn(Rs. 3,413.80 Bn)

Operating Profit

Rs. 80.92 Bn(Rs. 71.39 Bn)

CASA

43.36%(41.76%)

PCR

76.95%(65.85%)

Yield on Average Advances

8.13%(7.12%)

Net Profit

Rs. -55.47 Bn(Rs. -60.44 Bn)

RoAA

-0.91%(-0.98%)

GNPA

15.84%(16.58%)

Cost of Average Deposits

4.46%(4.56%)

CRAR

14.19%(12.94%)

RoAE

-27.05%(-31.84%)

NNPA

5.61%(8.26%)

Standalone Financials; Figures mentioned in brackets correspond to FY18

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STRENGTHS

Professional and Experienced Board and

Senior Management Team

Recognized brand with over 110 years of operations and wide

network across India and significant international presence

Balanced Credit Portfolio

Technology-enabled Systems and Infrastructure

for Scalability

Improving Financial Position and Stable

Capital Base

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Metro19.51%

Urban15.94%

Semi-Urban28.57%

Rural35.98%

North27.71%

East24.70%

West17.88%

South13.48%

Central16.23%

Legends>200 Branches

100-200 Branches

1- 100 Branches

State

UT

Pan India Distribution Network

Distribution of Domestic Branches

As on Dec 31, 2019

WIDE DISTRIBUTION NETWORK

519

163

65

147

858

100

5

502

19

8

35

344

4

13

368

492

254

439384

52 136

66

156

216

103

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1

2

8

61

Presence in 28 States and 8 Union Territories

1

2

4

2

As on Dec 31, 2019

53Branches*

4 Global Subsidiaries

19Countries

49,015Customers

Global PresenceAs on Dec 31, 2019

Total Branches – 5,089

Cross-Selling Opportunities

As on Dec 31, 2019

Bancassurance services to Insurance Companies and Distribution of Mutual Fund Products

General Insurance Health Insurance

Life Insurance Mutual Funds

* Including Subsidiaries and Joint Ventures

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DELIVERY CHANNELS

No. of Domestic Branches

5,123 5,127

5,092 5,0935,089

FY17 FY18 FY19 9MFY19 9MFY20

Internet Banking Users

4,180

5,299 5,887 5,773

6,519


No. of ATMs and CRMs

(‘000)

Mobile Banking Users

151 187

1,290

894

2,285


7,717 7,423

6,154 6,1685,750

484 484 484 484

1,335


ATMs CRMs

The Bank has been rationalizing its Branch and ATM Network. The Bank migrated all of its branches to its core banking application platform in 2008 and expanded its ATM and internet banking networks, and introduced alternate delivery channels

(‘000)

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STRONG LIABILITY FRANCHISE

Customer Base

39.84%

41.43%

43.36%

42.65% 42.69%


5,400.32 5,208.54 5,208.62 5,151.28 5,221.38


INR Bn

Total Deposits CASA %

Cost of Average Deposits1

4.68%

4.56%

4.46% 4.48%

4.56%


86.57

94.04

100.6499.03

94.89


Million

The deposit base largely comprises retail and the lack of bulk deposits provides the Bank with a deposit base with a lower concentration risk and increases the spread of the liability portfolio

1 Cost of Average Deposits is interest expense on Deposits divided by total quarterly average (Closing) Deposits

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417.93 478.17

564.92 535.24 588.48

14.63% 16.29% 17.22% 17.17% 17.69%


Retail Advances Retail Advances as % of Domestic Advances

BALANCED CREDIT PORTFOLIO

Total Net Advances

Retail Advances

INR Bn

3,664.82 3,413.80 3,410.06 3,311.14 3,366.61


Yield on Average Advances1

Break-up of Gross Domestic Advances

INR Bn

The diversified credit portfolio helps in reducing the volatility and potential risks associated with concentrated credit portfolio in particular segments or sectors

7.48% 7.12%

8.13% 8.07%8.60%


14.63%

16.45%

17.88%

51.04%

Retail Agri MSME Corporate & Others

17.69%

15.49%

16.31%

50.51% 9MFY20FY17

RAM48.96%

RAM49.49%

1 Yield on Average Advances is interest income from Advances divided by total quarterly average (Closing) Advances.

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Retail3.38%

Agri16.70%

MSME17.20%

Corporate62.72%

ASSET QUALITY

18.72% 18.09% 17.67%

3.04%

Corporate Agri MSME Retail

Slippages & RecoveriesSegment-Wise Gross NPA

13.22%

16.58% 15.84% 16.31% 16.30%

6.90%8.26%

5.61% 5.87% 5.97%


GNPA NNPA

INR Bn% of NPA to Advances % of NPA to Gross NPA

Asset Quality

As on Dec 31, 2019

61.47%65.85%

76.95% 76.76% 77.15%


Provision Coverage Ratio

14

5.5

6

15

2.9

6

19

5.7

0

16

3.3

2

12

4.9

5

16

7.2

2 25

5.8

1

17

9.4

5

14

8.0

7

13

5.6

5


Reduction Slippages

13

Infrastructure Gross Fund-Based Loans Break-Up

ASSET QUALITY

Domestic Gross Fund-Based Loans

20.8 24.7 63.5

261.9

370.9

NCLT 1List

NCLT 2List

Accounts filedby BoI at NCLT

Accounts filedby other banks

at NCLT

Total

Restructured Advances

INR Bn

NCLT AccountsAs on Dec 31, 2019

Sector Amount (Rs. Bn.)

Infra 18.49

Aviation 15.52

Textiles 0.54

Steel 1.08

Cement 1.92

Services 1.04

Hotels 1.01

Agriculture 0.88

Others 42.1

Standard Restructured Advances (Domestic) 82.60

Standard Restructured Advances (Overseas) 0.33

Standard Restructured Advances (Total) 82.93

As on Dec 31, 2019 As on Dec 31, 2019

66.0%

0.3%

23.6%

10.1%

Power (including electricity)

Telecommunication

Roads and ports

Other infrastructure

Sector Amount (Rs. Bn.) % of Advances

Infrastructure 478.31 14.29%

Basic metal and metal products 107.49 3.21%

Textiles 65.80 1.97%

Construction 48.83 1.46%

Mining and quarrying (including coal) 46.95 1.40%

Chemicals and chemical products 42.48 1.27%

Gems and jewelry 34.17 1.02%

Food processing 33.02 0.99%

Vehicles, vehicle parts and transport equipment

18.88 0.56%

Rubber, plastics and their products 17.16 0.51%

Other industries* 133.83 4.00%

All industries 1,026.91 30.68%

* Includes cement and cement products, Petroleum, coal products and nuclear fuels, Paper and paper products, Beverage and tobacco, Wood and wood products, Leather and leather products, Glass and glassware

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CAPITAL ADEQUACY

CET-I Capital

INR Bn

INR Bn

308.66 308.98 338.70

274.44

338.22

8.91%9.73%

11.07%

9.24%

11.17%


Tier I Capital Tier I (%)

Total Capital (Tier I + Tier II)

Tier I Capital

INR Bn

INR Bn

Risk Weighted Assets

420.82 410.97

434.04

370.65

429.89

12.14%

12.94%

14.19%

12.47%

14.20%


Total Capital Capital Adequacy (%)

3,466.11

3,175.46 3,059.53

2,970.23 3,028.49

55.34% 52.09% 48.94% 48.57% 48.07%


RWA RWA to Total Assets

248.58 249.93

336.83

270.39

337.32

7.17%7.87%

11.01%

9.10%

11.14%


CET-I Capital CET-I (%)

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FINANCIALS

Net Interest Income

INR Bn

INR Bn

118.26105.06

136.58

96.13

114.64


Operating Profit

97.33

71.39 80.92

57.89

88.66


Non Interest Income

INR Bn

INR Bn

67.72 57.34

51.32

35.29

50.25


Net Profit

(15.58)

(60.44)(55.47) (57.99)

6.15


Figures are on standalone basis and have been rounded off to two decimal points

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FINANCIALS

Net Interest Margin1

2.15%1.89%

2.55%2.41%

2.83%


Return on Average Equity2

-7.67%

-31.84%-27.05%

-41.51%

3.12%


Cost-Income Ratio

47.67%

56.04% 56.93% 55.95%

46.23%


Return on Average Assets3

-0.25%

-0.98% -0.91%

-1.28%

0.13%


Figures are on standalone basis

3 Return on average assets is the ratio of the net profit after tax to the quarterly average (closing) assets.

2 Return on average equity is the ratio of the net profit after tax to the quarterly average (closing) net worth (capital plus reserves).

1 Net interest margin is the difference of interest earned and interest expended divided by the total quarterly average (closing) interest-earning assets.

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PROFESSIONAL AND EXPERIENCED BOARD

Mr. Gopalaraman PadmanabhanChairman and Non-Executive Director

Holds a bachelor’s and master’s degree in arts from the University of Kerala and a master’s degree in businessadministration in international banking and finance from the University of Birmingham

In the past he has served as an Executive Director of the Reserve Bank of India

Mr. Atanu Kumar DasManaging Director & CEO

Designated as Managing Director and CEO of the Bank on January 20, 2020 Holds a master’s of arts degree in analytical and applied economics from Utkal University In the past, he has served as a general manager of Vijaya Bank

Mr. Chaitanya Gayatri ChintapalliExecutive Director

Joined the Bank as a probationary officer in June 1985 and has handled managerial positions in the Bankacross the country

Holds a bachelor’s degree in agriculture from Andhra Pradesh Agricultural University and is a certifiedassociate of Indian Institute of Banking and Finance

Ms. Dakshita DasNon-Executive Nominee Director (Central Government)

Appointed as a non-executive nominee director of the Bank on July 13, 2018 Additional secretary in the Department of Financial Services, Ministry of Finance and was the MD & CEO of

National Housing Bank

Mr. Subrata Das

Non-Executive Nominee Director

(RBI)

Regional director of the Reserve Bank of India, Hyderabad Appointed as a non-executive nominee director of the Bank on August 13, 2019 Holds a bachelor’s in arts degree in economics and a master’s in arts degree in analytical and applied

economics from Utkal University

Mr. Debabrata SarkarNon-Executive Independent Director (Shareholder’s nominee)

In the past, he has served as the Chairman and Managing Director of Union Bank of India, ex-officio director ofGeneral Insurance Corporation of India

Holds a master’s degree in commerce from the University of Calcutta, is a member of the Institute ofChartered Accountants of India and a certified associate of the India Institute of Bankers

Mr. D HarishNon-Executive Independent Director (Shareholder’s nominee)

Appointed as an independent director of the Bank on October 25, 2017 He has been awarded “Most Talented Coaching Leaders (India)” by CHRO Asia in 2017 Holds a bachelor’s degree in commerce from the University of Madras and a post graduate diploma in

personnel management and industrial relations from the Xavier Labour Relations Institute, Jamshedpur

Seasoned Professionals with Experience in their Fields

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STRATEGIES

Expand the Bank’s retail, agriculture and MSME lending profile byleveraging its existing customer base

Continue to contain funding cost by sourcing low cost deposits such as CASA

Focus on improving asset quality and containing NPA levels

Leverage technology to increase cross selling opportunities, reduce cost andenhance customer experience

Improving our risk management systems to ensure long-term sustainabilityof our business

19

ANNEXURES

20

BALANCE SHEET

Balance Sheet FY17 FY18 FY19 9MFY19 9MFY20

CAPITAL & LIABILITIES

Capital 10.55 17.44 27.60 17.44 32.78

Reserves & Surplus 308.52 350.13 402.54 296.53 453.41

Share Application Money Pending for Allotment 17.22 - 46.38 100.86 -

Minority Interest 0.81 1.59 1.62 1.62 1.70

Deposits 5423.52 5229.97 5225.55 5169.04 5241.82

Borrowings 394.91 435.98 442.65 418.29 450.96

Other Liabilities & Provisions 164.72 116.74 162.50 167.10 182.76

Total Liabilities 6320.26 6151.84 6308.84 6170.87 6363.42

ASSETS

Cash & Balances with RBI 275.44 315.75 293.22 258.46 323.89

Balances with Banks and Money at Call & Short Notice 689.20 644.49 655.38 713.12 633.81

Investments 1307.51 1403.21 1509.05 1504.07 1611.21

Advances 3683.29 3432.89 3429.66 3331.12 3385.16

Fixed Assets 85.46 83.50 89.99 83.69 90.30

Other Assets 279.35 272.00 331.53 280.41 319.06

Total Assets 6320.26 6151.84 6308.84 6170.87 6363.42

Consolidated Figures in Rs. Bn.

21

PROFIT & LOSS STATEMENT

Profit & Loss Statement FY17 FY18 FY19 9MFY19 9MFY20

INCOME

Interest Earned 395.85 383.13 410.05 301.35 320.06

Other Income 68.19 58.46 52.64 32.74 51.01

Total Income 464.05 441.59 462.69 334.08 371.06

EXPENDITURE

Interest Expended 276.06 276.79 272.07 204.16 204.34

Operating Expenses 89.75 92.65 108.67 71.33 77.46

Total Expenses 365.81 369.44 380.74 275.49 281.80

Operating Profit 98.24 72.15 81.95 58.60 89.26

Provisions & Contingencies 122.36 158.75 168.53 149.39 80.10

Profit Before Tax -24.12 -86.60 -86.58 -90.79 9.15

Tax Expense -8.18 -25.87 -31.61 -33.17 2.76

Net Profit/ Loss from Ordinary Activities after Tax -15.94 -60.73 -54.97 -57.62 6.40

Share of Earnings in Associates 1.02 0.91 0.71 1.18 -0.90

Minority Interest -0.21 -0.20 0.00 0.00 0.00

Net Profit/ Loss for the Period -14.70 -59.61 -54.27 -56.44 5.50

Consolidated Figures in Rs. Bn.

22

GLOSSARY

Term Description

NIMNet interest margin is the difference of interest earned and interest expended divided by the total quarterly average (Closing) interest-earning assets

Yield on Average Advances Yield on Average Advances is interest income from Advances divided by total quarterly average (Closing) Advances

Cost of Average Deposits Cost of Average Deposits is interest expense on Deposits divided by total quarterly average (Closing) Deposits

RoAEReturn on Average Equity is the ratio of the net profit after tax to the quarterly (Closing) average net worth (capital plus reserves)

RoAA Return on Average Assets is the ratio of the net profit after tax to the quarterly (Closing) average assets

CRAR Capital to Risk (Weighted) Asset Ratio

GNPA Gross Non Performing Assets

NNPA Net Non Performing Assets

PCR Provision Coverage Ratio

CASA Current and Savings Account ratio

CRM Cash Recycler Machine

ATM Automated Teller Machine

NCLT National Company Law Tribunal

RWA Risk Weighted Assets

UPI Unified Payments Interface

RAM Retail, Agri and MSME

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