 |
Analyst Meet / AGM
31-May-18
|
|
|
|
|
|
|
|
Conference Call
|
|
|
|
Indian Overseas Bank
|
|
Targets NPA reduction of Rs 12000 crore (excluding NCLT cases) for FY2019
|
|
|
|
|
|
Indian Overseas Bank conducted a conference call on 30 May 2018 to discuss its financial results for the quarter ended March 2018. R. Subramaniakumar, MD&CEO of the bank addressed the call:
Highlights:
- The bank is strongly focusing on liability management with focus on reducing the cost of deposits and dependence on bulk deposits. The bank has substantially reduced cost of deposits to 5.49% from 6.17%, while strongly improved CASA deposits ratio to 36.75% with domestic CASA deposits ratio at 37.4% and 36.45% globally end March 2018. The bank has reduced the level of high cost bulk deposits to almost 0%.
- The bank has also focused on rationalization of its distribution network, while merged 191 branches closing down 91 branches and also reduced number of regional offices to 48 from 59 years ago. The bank has closed down 671 ATM, which is expected to reduce expenses by Rs 17 crore. The bank has also reduced office space. Further, the bank has identified 30 branches from closure.
- The bank has increased in the share of retail (20.34% of total loan) agriculture (22.25%) and MSME (23.54%) loans to 66% from 54% a year ago, while expect to continue to increase the share of retail agriculture and MSME (RAM) loans going forward
- The bank has recorded 9.3% growth in RAM advances, with retail loans rising 18% driven by 36% growth in home loans and 25% jump in vehicle finance end March 2018 over March 2017.
- The bank has reduced high risk weight corporate loan book by 9000 crore in FY2018. The bank has reduced RWA to loan to 89% from 108% last year.
- The bank is exhibiting consistent decline fresh slippages of loans from Rs 2720 crore in Q1FY2018 to Rs 2500 crore in Q2 and Rs 1300 crore in Q3FY2018. Meanwhile the bank has also consistently improved recovery of NPA from Rs 2700 crore in Q1FY2018 to Rs 2861 crore in Q2FY2018 and Rs 3000 crore in Q3 FY2018, while the bank has further improved recovery of NPA to Rs 5725 crore in Q4FY2018
- The fresh slippages of loans jumped to Rs 9868 crore in Q4FY2018, mainly due to compliance of RBI regulatory guidelines on framework for stressed assets. The RBI revised guidelines on NPA recognition and resolution has contributed Rs 6125 crore of slippages in Q4FY2018
- The bank has not availed RBI dispensation on provisioning for NCLT exposure. The bank has exposure to 9 account under NCLT first list amounting to Rs 4951 crore, where bank has made 71% provision. The exposure under NCLT second list is to 17 accounts amounting to Rs 3211 crore with 81% provisions. The overall provision on NCLT exposure stands at 75%.
- As per the bank, at least 50% of the NCLT exposure is expected to get resolved in FY2019, which is expected to reduce NPAs of Rs 4000-4500 crore. However, the bank is targeting strong NPA reduction of Rs 12000 crore, excluding recoveries from NCLT accounts for FY2019.
- As per the bank, about 52% of the NPA are from the corporate loan book, while the bank is strongly focusing on recoveries of non-corporate loan accounts. The bank has identified 400 employees to specially focus on recoveries of small account NPAs.
- The bank expects normalized performance from Q2FY2019 and return to profitability by Q4FY2018. The bank expects to maintain CET I capital ratio in line with regulatory requirement, while it is also focusing on NPA reduction and aims to come out of PCA framework by early FY2020.
|
|
|
|
Previous News |
Indian Overseas Bank announces board meeting date
(
Corporate News
-
03-May-24
10:42
)
|
|
|
IREDA and Indian Overseas Bank sign MoU
(
Corporate News
-
16-Jan-24
16:23
)
|
|
|
Indian Overseas Bank raises Rs 1000 via Tier II bonds
(
Corporate News
-
24-Mar-23
19:09
)
|
|
|
Indian Overseas Bank to hold board meeting
(
Corporate News
-
16-Jan-24
16:53
)
|
|
|
Indian Overseas Bank spurts 0.76%, gains for five straight sessions
(
Hot Pursuit
-
06-Jul-23
13:01
)
|
|
|
Indian Overseas Bank to conduct AGM
(
Corporate News
-
10-Jun-23
10:09
)
|
|
|
Indian Overseas Bank hikes base rate by 35 bps to 9.45%
(
Corporate News
-
13-Nov-23
18:46
)
|
|
|
Indian Overseas Bank
(
Results
-
Analysis
08-Aug-22
11:20
)
|
|
|
Indian Overseas Bank slips for fifth straight session
(
Hot Pursuit
-
27-Jan-23
13:35
)
|
|
|
Indian Overseas Bank up for fifth session
(
Hot Pursuit
-
07-Apr-22
13:00
)
|
|
|
Indian Overseas Bank revises MCLR
(
Corporate News
-
09-Jan-23
20:31
)
|
|
|
|
|
|
Other Stories |
|
|
|
|
|
|
|
|
|
|
|
|
|