www.allahabadbank.in

Financial Results

Q2 & H1 FY18

10th November 2017

2

The Bank’s Key Strengths

Robust CASA

Strong Rural and Semi-Urban Branch Network

Widespread Centralized Retail Banking Boutique (CRBB) Network

More than 45 million loyal clientele

Stable Operating Profit

Young & energetic workforce

Performance Highlights of Q2FY18

3

SB Deposits Y-o-Y 21%

Operating

Profit Y-o-Y 26%

Non-interest income Y-o-Y

39%

Declining COD

at 5.46%

Robust CASA share

45.07%

Housing loan Y-o-Y 19%

Contents

Business Mix

Investment

Profitability

Asset Quality

Capital & Shareholding Pattern

Networth

Digital

Domestic Branch & ATM Network

Financial Inclusion

MUDRA & Stand Up India Schemes

4

Terminal Business Mix

Rs. in crore

5

Amount %

1 Business 355738 359974 359450 3712 1.04

Domestic 342931 345843 343843 912 0.27

Overseas 12808 14131 15607 2799 21.86

Percentage Share of overseas to total business

3.60 3.93 4.34

2 Deposits 200194 201870 207269 7075 3.53

Domestic 197499 199335 204268 6769 3.43

Overseas 2696 2536 3001 306 11.35

3 Advances 155544 158103 152180 -3364 -2.16

Domestic 145432 146508 139575 -5857 -4.03

Overseas 10112 11595 12605 2493 24.66

4 CD Ratio 78.37 79.03 74.20

5Total No. of Domestic

Branches3244 3245 3248

Y-o-Y VariationSep'17

Sl. No.

Parameters Mar'17Sep'16

Rs. in crore

Deposits Mix

6

Amount %

1 Total Deposits 200194 201870 207269 7075 3.53

2 Aggregate Deposits 198481 200055 205091 6610 3.33

3 Bulk Deposits 28453 8377 4770 -23683 -83.24

4Bulk % to Total

Dep.14.21 4.15 2.30

5 SB Deposits 67048 79764 81391 14343 21.39

6 Current Deposits 9359 11835 11050 1691 18.07

7 CASA Deposits 76407 91598 92441 16034 20.98

7aCASA Share in Agg.

Deposit (%)38.50 45.79 45.07

8 Term Deposits 119597 108457 112650 -6946 -5.81

Sep'17Sl.

No.Parameters Mar'17Sep'16

Y-o-Y Variation

Movement of CASA & SB Deposits

7

CASA

SB

Way forward : Deposits

10

Periodic SB Campaigns

Convert inoperative a/cs to operative ones

Renewed Thrust on SB including Salary

a/c Opening

Utilization of Bank Mitras

8

Advances Mix Rs. in crore

9

Amount %

1 Total Advances 155544 158103 152180 -3364 -2.16

2 Large Industries 43904 42648 39391 -4513 -10.28

3Agriculture and

Allied Activities26997 27075 27003 6 0.02

4 MSME 29646 31182 30777 1131 3.82

5 Retail Loans 16289 17172 18399 2110 12.96

6 Others* 38709 40026 36610 -2098 -5.42

* Includes food credit, export credit, trade & rent loan schemes.

Sep'16 Mar'17ParametersY-o-Y VariationSl.

No.Sep'17

Small, Micro, Agriculture and Retail Loans

10

Amt. %

1 Small 13285 12409 12226 -1059 -7.97

2 Micro 12047 13225 13002 956 7.93

3 Agriculture 26997 27075 27003 6 0.02

4 Retail 16289 17172 18399 2110 12.96

5 Total 68618 69881 70631 2013 2.93

Sl.

No.Mar'17

Variation Parameters Sep'16 Sep'17

Rs. in crore

Small, Micro, Agriculture and Retail Loans

11

Rs. in crore

Retail Loans: Composition

Outer Circle:Sep’17

Inner Circle: Sep’16

12

Sep’17

Sep’16

Retail Loans: Product Performance

13

Rs. in crore/

Y-o-Y Growth % Key Segments of Retail Loans

13%

19%

12%

6% 3% 12%

Rs. in crore

Industry-wise Deployment of Credit

14

1 Food Processing 3170 2.04 2665 1.75 -505 -15.932 Textiles 5000 3.21 4828 3.17 -172 -3.44

3Chemical & Chemical

Products3059 1.97 3768 2.48 709 23.18

4Cement & Cement

Products1217 0.78 990 0.65 -227 -18.65

5Basic Metal & Metal

Products9550 6.14 9051 5.95 -499 -5.23

5a Iron & Steel 8280 5.32 7897 5.19 -383 -4.63

6All Engineering

Products3880 2.49 3924 2.58 44 1.13

7 Gems & Jewellery 1022 0.66 963 0.63 -59 -5.778 Construction 3477 2.24 3199 2.10 -278 -8.00

9Infrastructure

of which,19005 12.22 17506 11.50 -1499 -7.89

9a Power 10554 6.79 8679 5.70 -1875 -17.779b Tele-communication 1229 0.79 1411 0.93 182 14.819c Road & Ports 4542 2.92 3936 2.59 -606 -13.34

Sep'17

Amt.

% share

to Total

Adv

Sep'16

Amt.

% share

to Total

Adv

Sl.

No.Major Industries

Y-o-Y Variation

Amt. %

Way forward : Advances

15

Focus on MUDRA & Standup India

loans

Focused approach on SMARt Loans

Modification in Retail Loan

Schemes

Focus on Affordable

Housing (PMAY)

To launch credit card business

Rs. in crore

Investment

16

Amount %

1 Gross Investment 55725 55712 60672 4947 8.88

2 Held To Maturity (HTM) 39202 38527 39606 404 1.03

3 Available For Sale (AFS) 16523 17185 21060 4538 27.47

4 Held For Trading (HFT) 0 0 5

5 Duration (AFS+HFT) 4.27 5.25 4.54

6 Modified Duration (AFS+HFT) 4.13 5.07 4.39

7 Total Duration 5.00 5.57 5.27

8 Total Modified Duration 4.84 5.38 5.10

9 Net Demand & Time Liabilities 193851 203860 204942 11091 5.72

10 SLR (%) 24.10 23.35 26.76

11 HTM to SLR (%) 83.90 80.94 72.21

12 HTM to Gross Investment (%) 70.35 69.15 65.28

Parameters Mar'17Y-o-Y Variation

Sep,16 Sep'17

Rs. in crore

Profit

17

1 Interest Income 4422 4372 4190 -232 -5.26 8993 8338 -655 -7.28

2 Interest Expenses 3073 3011 2936 -137 -4.47 6250 5841 -410 -6.55

3 NII (Spread) (1-2) 1349 1361 1254 -95 -7.04 2743 2497 -245 -8.95

4Non-Interest

Income629 733 878 249 39.52 1182 1698 517 43.75

5Operating

Expenses 1008 1028 909 -99 -9.81 1986 1802 -184 -9.26

6 Contribution (4-5) -379 -295 -32 348 -91.68 -805 -104 701 -87.09

7Operating Profit

(3+6)970 1066 1223 253 26.03 1938 2393 455 23.50

8 Provisions 905 955 1153 247 27.33 2438 2294 -144 -5.89

9 Net Profit 65 111 70.19 5 7.93 -500 99.04 599 -119.81

Y-o-Y Variation

Amt. %Sl. Parameters

HY

Sep'16

HY

Sep'17%Amt.

Q4

FY17

Q2

FY17

Q2

FY18

Y-o-Y Variation

Break-up : Income Rs. in crore

18

1Interest on

Advances3303 2860 2880 -423 -12.81 6683 5729 -954 -14.27

2Interest on

Investments974 1058 955 -19 -1.96 2038 1919 -119 -5.83

3Other Interest Income

145 454 355 210 144.23 273 690 417 153.20

4Interest Income (1+2+3)

4422 4372 4190 -232 -5.26 8993 8338 -655 -7.28

5 Fee Based Income 306 417 284 -22 -7.10 617 604 -14 -2.20

6 Trading Profit 233 173 272 39 16.76 428 604 176 41.02

7 Other Income 91 143 322 231 255.24 136 491 355 260.88

8Non-Interest Income (5+6+7)

629 733 878 249 39.52 1182 1698 517 43.75

9 Total Income (4+8) 5052 5105 5068 16 0.32 10175 10036 -138 -1.36

Y-o-Y Variation

Amt.

Q4

FY17

HY

Sep'17

Y-o-Y Variation

Amt. %

HY

Sep'16

Q2

FY17

Q2

FY18 %Sl. Parameters

Fee Based Income

Rs. in crore

19

1 Bills/LC/BG 73 62 66 -6 -8.89 162 152 -10 -6.38

2 Processing Fees 54 75 45 -10 -17.68 92 90 -2 -2.10

3 Exchange 76 121 44 -33 -42.77 141 101 -40 -28.35

4 Wealth Products 6 8 6 0 4.60 11 12 1 12.80

5Incidental

Charges12 12 16 4 37.95 20 18 -3 -12.80

6 Others** 85 139 107 22 26.19 191 231 40 20.86

7 Total 306 417 284 -22 -7.10 617 604 -14 -2.20

Y-o-Y Variation

Amt.

HY

Sep'17

Y-o-Y Variation

Amt. %

HY

Sep'16

Q2

FY18

Q4

FY17Sl.

No.Particulars

Q2

FY17

** Includes locker rent, commission- govt. business, ATM, NPCI Acquirer, service tax collection, documentation &

supervision charges, etc.

%

Rs. in crore

Break – up : Expenditure

20

1Interest Paid on

Deposits2919 2861 2758 -162 -5.54 5938 5480 -458 -7.71

2Interest Paid on

Borrowings154 150 178 24 15.78 313 361 48 15.44

3Total Interest Paid

(1+2)3073 3011 2936 -137 -4.47 6250 5841 -410 -6.55

4Establishment

Expenses581 538 454 -127 -21.84 1152 902 -250 -21.72

5Other Operating

Expenses427 491 455 28 6.53 835 901 66 7.92

6Operating Expenses

(4+5)1008 1028 909 -99 -9.82 1986 1802 -184 -9.26

7 Total Expenses (3+6) 4081 4039 3845 -236 -5.79 8237 7643 -594 -7.21

HY

Sep'16

HY

Sep'17

Y-o-Y Variation

Amt. %Q2

FY18

Sl.

No.Parameters

Q2

FY17

Q4

FY17

Y-o-Y Variation

Amt. %

Rs. in crore

Provisions

21

1 NPA 692 1490 1470 777 112.33 2267 3156 890 39.24

2 Standard Advance 85 -121 17 -68 -80.01 79 -113 -192

3Depreciation on

Investment28 233 76 48 172.72 -5 -32 -27

4 Income Tax 91 -476 -344 -435 293 -538 -831

5 Others 9 -172 -65 -75 -196 -179 17 -8.66

6 Total Provision 905 955 1153 247 27.33 2438 2294 -144 -5.89

HY

Sep'17

Y-o-Y

Variation

Amt. %

HY

Sep'16

Y-o-Y

Variation

Amt. %

Sl.

No.Parameters

Q2

FY17

Q2

FY18

Q4

FY17

Cost & Yield Ratios (Quarterly)

22

Sep'16 Mar'17 Jun'17 Sep'17

6.02

5.655.49 5.46

CoD

Sep'16 Mar'17 Jun'17 Sep'17

5.83

5.46

5.36 5.35

CoF

Sep'16 Mar'17 Jun'17 Sep'17

2.67

2.54

2.35 2.37

NIM

Sep'16 Mar'17 Jun'17 Sep'17

9.24

8.018.18 8.30

YoA

Sep'16 Mar'17 Jun'17 Sep'17

7.297.20

6.92

6.58

YoI

Sep'16 Mar'17 Jun'17 Sep'17

8.74

7.87 7.86 7.90

YoF

Quarterly Trend of Net Interest Margin

23

2.952.55

2.21

2.69 2.67

2.26

2.54

2.35 2.37

Sep'15 Dec'15 Mar'16 Jun'16 Sep'16 Dec'16 Mar'17 Jun'17 Sep'17

Profitability Ratios

24

Sl. ParametersQ2

FY17

Q4

FY17

Q2

FY18

HY

Sep'16

HY

Sep'17

1Return on Assets (%)

(Annualised)0.11 0.19 0.12 -0.44 0.08

2 Return on Networth (%) 2.25 3.78 2.30 -8.69 1.64

3 Operating Profit to AWF (%) 1.70 1.79 2.06 1.69 2.03

4 Cost to Income Ratio (%) 50.96 49.11 42.65 50.62 42.96

5 Estb. Exp. to Total Exp. (%) 14.23 13.31 11.81 13.98 11.80

6 Operating Exp. to AWF (%) 1.77 1.72 1.53 1.74 1.53

7 Book Value Per Share (Rs) 161 157 156 161 156

8Earnings per share (Rs)

(Non-annualised)0.90 1.49 0.90 -7.18 1.30

Ratios: Productivity

25

Sl. ParametersQ2

FY17FY17

Q2

FY18

1Average Business per

Branch (Rs. crore)104.70 106.52 107.35

2Average Business per

Employee (Rs. crore)13.89 14.44 14.27

3Profit/Loss per Employee

(Rs. Lac) (Annualised)1.06 -1.31 1.15

NPA Movement Rs. in crore

26

Sl. ParametersQ2

FY17FY17 Q2 FY18

HY

Sep'16

HY

Sep'17

1 NPA as at the beginning of the Qtr./ Half Year/ Year 19209 15385 21032 15385 20688

2 Cash Recovery 371 1612 457 655 1024

3 Upgradation 575 2060 295 1117 777

4Recovery in written-off debt A/cs

Intt. Received/derecognised Intt.253 767 355 415 519

5 Prudential Write Off done in the Qtr./ Half Year/ Year 632 2378 766 1069 1455

6 Sale of Assets to ARC 0 64 65 0 227

7 Total Reduction 1578 6114 1583 2841 3483

8 Fresh Addition for the Qtr./ Half Year/ Year 1365 10904 1702 6336 3706

8a Addition in existing NPA 99 513 303 215 544

9 NPA as at the end of the Qtr./ Half Year/ Year 19095 20688 21454 19095 21454

10 Provisions for Bad Debts 6224 7177 8668 6224 8668

11Counter Cyclical Provisions/DICGC/ECGC Claim received & Part

payment received and held in suspense A/c etc. 71 77 124 71 124

12 Net NPAs 12800 13434 12662 12800 12662

13Total NPA Reduction/ Recovery in NPA including

written-off debt A/cs1201 4439 1106 2187 2319

NPA Ratios

27

1 155544 158103 152180

Amount

(Rs. crore)19095 20688 21454

Ratio 12.28 13.09 14.10

Amount

(Rs. crore)12800 13434 12662

Ratio 8.59 8.92 8.84

4 47.60 50.11 54.33

Q2 FY17

Q2 FY18

FY17

3 NNPA

2 GNPA

Provision Coverage Ratio (%)

Total Advances

ParametersSl.

Restructured Accounts during Sep’17 quarter

Rs. in crore

28

No. 8 452 2683 3143

Amt. 704 318 2426 3449

0.46 0.21 1.59 2.27

OthersSME

Debt

Under

CDR

No./

Amt.ParticularsSl. Total

% to Gross Credit

1Standard

Advances

Flexible Restructuring under Different Schemes

Scheme S4A SDR 5/25 Total

No. of

accounts 8 18 12 38

Amount 1248.85 2479.62 5043.56 8772.03

Rs. in crore

29

Stressed Assets (Standard Restructured + GNPA)

Sep’16 Mar’17 Jun’17 Sep’17

Stressed

Assets

(Rs. Crore)

25642 25344 25097 24903

% to total

advances 16.85 16.65 16.49 16.36

Capital Adequacy Ratio- Basel III

CRAR

10.49%

Tier I

8.09%

CET

7.98%

AT1

0.11% Tier II

2.40%

SEP’16

SEP’17

CRAR

11.74%

Tier I

8.77%

CET

8.41%

AT1

0.36%

Tier II

2.97%

30

Capital Adequacy Ratio- Basel III

Rs. in crore

31

Sl. CRAR (under Basel-III): Regulatory Capital Sep'16 Sep'17

1 Common Equity Tier 1 Capital 12596 12782

2 Additional Tier 1 Capital 169 550

3 Total Tier 1 Capital (1+2) 12765 13332

4 Tier 2 Capital 3784 4513

5 Total Capital (3+4) 16549 17845

6 Common Equity Tier 1 Ratio (%) 7.98 8.41

7 Total Tier 1 Capital Ratio (%) 8.09 8.77

8 Tier 2 Capital (%) 2.40 2.97

9 Total Capital Ratio (%) 10.49 11.74

Shareholding Pattern

SEPTEMBER 2016

SEPTEMBER 2017

32

Networth of the Bank

33

Sl. No.

Components of Networth

Sep’16 Mar’17 Jun’17 Sep’17

1. Capital 723 744 744 800.21

2. Reserves 13510 13553 13813 14239

3. Networth (excluding revaluation reserve)

11609 11696 11968 12461

Rs. in crore

Domestic Branch Network as on 30.09.2017

Geography

Branches (% share to Total

Branches)

Central 253

(7.79%)

Eastern 1029

(31.68%)

Northern 1361

(41.90%)

North-Eastern 94

(2.89%)

Southern 223

(6.87%)

Western 288

(8.87%)

34

Population Branches

Rural 1206 (37.13%)

Semi-urban 766 (23.58%)

Urban 647 (19.92%)

Metro 629 (19.37%)

Total 3248

Financial Inclusion

35

Particulars Sep'16 Mar'17 Sep'17

FI Accounts Bank

(in lakh)119.01 130.92 138.35

Deposit Balance

(Rs crore)1661.84 2461.75 2724.51

MUDRA and Stand up India: Sep’17

36

PARAMETERS Bank as a whole

Disbursement Target (Rs. crore) (FY18) 2990

Amount Sanctioned (Rs. crore) Q2FY18 835

Achievement % (Sanction) 27.93%

Amount Disbursed (Rs. crore) Q2FY18 821

Achievement % (Disbursement) 27.46%

Since inception From 01.04.17 to 30.09.17

No. of A/cs

Amt. Sanctioned (Rs in Cr))

Amt. Disbursed

No. of A/cs

Amt. Sanctioned (Rs in Cr))

Amt. Disbursed

787 210.77 164.11 286 82.34 69.60

Forward Guidance

37

Low cost deposits

Asset quality management

Shifting of loan book to retail side

Profit maximisation

Thank You

www.allahabadbank.in