idbi bank poised for takeoff

1
Presentation
idbi bank -poised for take-off
April 2002
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Agenda

• 1. Transformation story
• 2. Retail Banking
• Corporate Banking and Treasury
• Operations and Technology

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IDBI Bank the transformation story - from a
marginal market player to a pan-India
formidable competitive force
Mar 31,2001
Mar 31,2002
Performance indicators
Profitability Net Profit (Rs. in crs.) RONW ()
52.4
19.4
7.3
18.4
The fastest growing Company in India Business
World (2001)
0.4
0.9
ROA ()
Growth
175
20
Quality
Portfolio rated above A
64
86
Cost management
Cost/Income ratio
59
54
Ranked 7th in the Survey of Indian and foreign
Banks in India Business Standard (2001)
Scale
City network ATM network
55
39
225
77
Net NPA including stressed assets
4
Agenda
Retail Banking Leading retail
indicators Geographic scale expansion Channel
migration Retail asset growth
5
Leading retail indicators
Retail Deposits/Total Deposits
No. of Retail Accounts
000
Cost of deposits
Low Cost Deposits/Total Deposits

Adjusted for CMS led non-recurring one time
customer ffloat
6
Geographic scale expansion for edge in
distribution
Rapid scale expansion in 2001-2002
Cities 55 Branches
75 ATMs 225

7
Focus on transaction migration to channels for
optimum capacity utilization

• Channels
• About 450,000 ATM cards in force
• with 94 ATM uptime
• 90 cash withdrawals thru ATM
• Over 140,000 phone banking
• customers across 34 locations
• Over 57,000 net banking customers

Transaction migration
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Retail asset growth led by strong growth in
housing finance
Retail Assets are now 10 of total customer
assets with average yield for the year of 13.8
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Agenda
Corporate Banking and Treasury Focus on target
segments and cross sell Asset Quality
10
Clear focus on target segments and cross sell
drives the corporate bank
Focusing on Target Segments
Focusing on Cross Sell

• Cash Management Service has already penetrated
  across 10 of our existing client base
• CMS, with throughput of Rs.10000 crores in 6
  months is close to 10 of the market leader
• IDBI Bank CMS will become a significant market
  participant in next 12 months

• Conscious shift in target market segment with
• Focus on PSU,, MNC, FI/Banks and large local
• corporate groups

Net Interest Margin growth

• 80 penetration across target client base for FX
  sales products
• Over 200 increase in FX customer revenues
  during last year

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Asset quality remains an integral part of our
growth strategy
Focusing on Risk Adjustments
Portfolio Quality Upgrade

• First bank in India to adopt to 90 day NPA
  recognition norms
• Provisioning policy aimed at maintaining
  provision cover well above 50

Sept. 2000
Considerable increase in provision cover

March 2002
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Agenda
Operations and Technology Cost
management Customer centric technology
13
With conservative cost ethos, rigorous cost
management processes in place
Cost / Total Income
How much does a new customer cost ?
ATM Card, ATM pouch,PIN mailer, envelope Cheque
book, TIN mailer, TIN envelope Statement
stationery/printing, envelope,Welcome Letter,
welcome envelope/printing
Cost/Total Income ratio targeted for reduction to
50 by FY03/04
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Creating customer centric technology
Operating Expense Break-up
FY02
FY01
Customer centric technology Statement by
e-mail Demat statement via e-mail with portfolio
valuation Welcome kit for instant account
opening Package tracker for delivery
status Automatic cheque book re-order
IDBI Bank has well- capacitised technology
platforms in place
15
Profit Loss A/c for the year ended March 31,
2002
16
Safe harbor
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,
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.IDBI Bank Limited undertakes
no obligation to update forward-looking
statements to reflect events or circumstances
after the date thereof.