STAKEHOLDERS EMPOWERMENT SERVICES INDIAN OVERSEAS BANK
S ECTOR: BANKS REPORTING DATE: 23RD FEBRUARY, 2019
Indian Overseas Bank NSE Symbol - IOB TABLE 1 - MARKET DATA (STANDALONE) (AS TRADED ON 22ND FEBRUARY 2019) Sector - Banks NSE Market Price (`) 13.00 NSE Market Cap. (₹ Cr.) 8,380.04 Face Value (`) 10.00 Equity (` Cr.) 6,446.18 Business Group – Public Sector Bank 52 weeks High/Low (₹) 19.85/10.85 Net worth (₹ Cr.)* 12,070.01 Year of Incorporation - 1937 TTM P/E N.A. Traded Volume (Shares) 4,31,357 TTM P/BV 0.69 Traded Volume (lacs) 56.08 Registered Office - Source - Capitaline, TTM - Trailing Twelve Months, N.A. - Not Applicable, * As on 30th September, 2018 763 Anna Salai, BANK BACKGROUND Chennai – 600 002, Indian Overseas Bank (the Bank) is engaged in the business of banking. The Bank's Tamil Nadu segments include Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking Operations. Its operations consist of domestic deposits; domestic advances; Bank Website: foreign exchange operations; investments; micro, small and medium enterprises,
www.iob.in including MUDRA Loan Scheme; retail banking, including Arogya Mahila Savings Bank Accounts; Mid Corporate department; agricultural credit portfolio; loans to small and
marginal farmers; loans to non-corporate farmers, and microfinance. Its personal banking services include saving bank, current account, term deposit, retail loans, and mortgages and depository services
rd Surveillance Actions: There was no surveillance action on the Bank as on date of this Report i.e. 23 February, 2019.
Revenue and Profit Performance (Standalone)
Quarterly revenue and Profit (₹ CRORE) The revenue of the Company decreased from ₹ 4,645.77 6,000 4,283.74 4,827.55 4,645.77 crores to ₹ 4,283.74 crores from quarter ending Sep’17 to 4,000 quarter ending Sep’18. The Company made a loss of ₹ 2,000 487.26 crores in quarter ending Sep’18 vis-a-vis making a -487.26 0 -1,222.50 loss of ₹ 1,222.5 crores in quarter ending Sep’17.
-2,000 -3,606.73 -4,000 -6,000 Sep'18 Mar'18 Sep'17 Revenue Profit
Source: Moneycontrol
Performance vis-à-vis Market 1.20 1.10 TABLE 2- Returns 1.00 1-m 3-m 6-m 12-m 0.90 Indian Overseas Bank -6.47% -10.65% -13.04% -33.84% 0.80 Nifty -0.54% 0.99% -7.70% 3.19% 0.70 0.60 Nifty Bank -1.46% 1.61% -4.94% 7.89% 0.50 Source - Capitaline/NSE Feb 18 Apr 18 Jun 18 Aug 18 Oct 18 Dec 18 Feb 19
Indian Overseas Bank NIFTY NIFTY BANK
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STAKEHOLDERS EMPOWERMENT SERVICES INDIAN OVERSEAS BANK
S ECTOR: BANKS REPORTING DATE: 23RD FEBRUARY, 2019 TABLE 3 – FINANCIALS AND RATIOS (STANDALONE - QUATERLY) % Change (₹ Cr.) Sep’ 18 Mar’ 18 Sep’ 17 Sep ’18 vs Mar’18 Mar’18 vs Sep’17 Net Worth 12,070.01 13,273.98 13,089.31 -9.12% 1.41% Deposits 2,23,169.06 2,16,831.81 2,11,548.36 2.92% 2.50% Borrowings 4,275.61 9,228.08 13,945.86 -53.67% -33.83% Profit After Tax -487.26 -3,606.73 -1,222.5 N.A. N.A. EPS (₹) -3.53 -12.25 -4.72 N.A. N.A. PBIDTM (%) 55.16 -52.84 41.45 N.A. -227.48% PBDTM (%) -16.63 -116.94 -25.82 N.A. N.A. PATM (%) -11.37 -74.71 -26.31 N.A. N.A. Net Interest Margin (%) 1.91 2.73 2.05 -30.04% 33.17% Provision Coverage Ratio (%) 61.97 59.45 55.88 4.24% 6.39% CASA Ratio (%) 35.95 36.75 35.60 -2.18% 3.21% Gross Non-Performing Assets 37,109.96 38,180.15 34,708.59 -2.80% 10.00% Net Non-Performing Assets 18,876.05 20,399.66 18,949.55 -7.47% 7.65% (%) Gross Non-Performing Assets 24.73 25.28 22.73 -2.18% 11.22% (%) Net Non-Performing Assets 14.34 15.33 13.86 -6.46% 10.61% Return on Assets(Annualised) -0.71 -5.26 -1.82 N.A. N.A. Source – Capitaline/Quarterly results
AUDIT QUALIFICATIONS
Audit Qualifications in last 3 years: The Statutory Auditors have not made any qualifications in their Report for FY 2015-16, 2016-17 and 2017-18.
Response Comment Frequency of Qualifications in last 3 years? No - Have the auditors made any adverse remark in last 3 years? No - Are the material accounts audited by the Principal Auditors? Yes - Do the financial statements include material unaudited financial statements? No -
TABLE 4: BOARD PROFILE (AS PER ANNUAL REPORT - FY 2017-18) Regulatory Norms Bank % of Independent Directors on the Board 50% 18% % of Promoter Directors / Promoter Nominee Directors on the Board - 9% Number of Women Directors on the Board At least 1 1 Classification of Chairman of the Board - Non-Executive Director Is the post of Chairman and MD/CEO held by the same person? - No Average attendance of Directors in the Board meetings (%) - 91.53% Note: Board Composition is as on 31st March, 2018 Board Diversity: The Bank has 11 directors out of which 1 is Woman Director. Attendance at Board Meetings: During the FY 2017-18, the average attendance of Directors in the Board meetings was 91.53%. TABLE 5 - TRADING VOLUME % Change Particulars Sep'18 Mar'18 Sep'17 Sep ’18 vs Mar’18 Mar'18 vs Sep'17 Trading Volume (shares) (avg. of 1 qtr) 8,56,631 11,91,753 9,91,142 -28.12% 20.24% Trading Volume (shares) (high in 1 qtr) 66,11,975 59,06,944 58,16,868 11.94% 1.55% Trading Volume (shares) (low in 1 qtr) 2,26,766 4,47,041 2,77,053 -49.27% 61.36% Ratio - High/low trading volume 29.16 13.21 21.00 120.67% -37.07% Ratio - High/average trading volume 7.72 4.96 5.87 55.73% -15.55% Source - Capitaline
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S ECTOR: BANKS REPORTING DATE: 23RD FEBRUARY, 2019 TABLE 6 (A): OWNERSHIP & MANAGEMENT RISKS Dec' 18 Jun' 18 Dec' 17 Comments
Promoter shareholding 91.99 89.74 82.41 • 3,41,12,21,850 equity shares were issued to Government of India on Preferential basis during the period from 1st st Public - Institutional January, 2018 to 31 December, 2018. 5.04 6.43 11.30 shareholding • The promoter shareholding increased from 82.40% to Public - Others 91.99% due to preferential issues. 2.97 3.83 6.29 shareholding • The shareholding of public institution decreased from
Shareholding (%) Shareholding 11.30% to 5.04% and that of public others decreased from Non Promoter Non 6.29% to 2.97% during the same period. 0.00 0.00 0.00 Public Shareholding • The promoters have not pledged any shares.
Source - NSE
MAJOR SHAREHOLDERS (AS ON 31st DECEMBER 2018) S. No. Promoters Shareholding S. No. Public Shareholders Shareholding 1 The President of India 91.99% 1 LIC Of India 4.18% Source - NSE
TABLE 6 (B): OWNERSHIP & MANAGEMENT RISKS Market Activity of Promoters / During FY 2017-18, 2,43,60,41,047 equity shares were allotted to Govt. of India, Promoter of Preferential issue to promoters Bank. Preferential issue to others No preferential issue of shares was made to the public shareholders during FY 2017-18. GDRs issued by the Bank The Bank did not issue any GDRs during FY 2017-18. Issue of ESOPs/Issue of shares The Bank does not have any ESOP Scheme. other than Preferential allotment Source - Annual Report FY 2017-18
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S ECTOR: BANKS REPORTING DATE: 23RD FEBRUARY, 2019 Glossary
Equity: The equity shares capital of the Company
Net Worth: The amount by which the Assets exceeds the liabilities excluding shareholders’ funds of the Company Turnover: The revenue earned from the operations of the Company
EPS: Earning Per Share is net profit earned by the Company per share Profit After Tax 퐸푃푆 = Number of outstanding shares P/E ratio: It is the ratio of the Company’s share price to earnings per share of the Company Price of each share 푃/퐸 푟푎푡𝑖표 = Earnings per share Current Assets: Cash and other assets that are expected to be converted to cash in one year
Fixed Assets: assets which are purchased for long-term use and are not likely to be converted quickly into cash, such as land, buildings, and equipment Total Assets: Current Assets + Fixed Assets
Investments: An investment is an asset or item that is purchased with the hope that it will generate income or appreciate in the future.
Finance Cost: The Financing Cost (FC), also known as the Cost of Finances (COF), is the cost and interest and other charges incurred during the year in relation to borrowed money.
Long Term Liabilities: Long-term liabilities are liabilities with a maturity period of over one year. Current Liabilities: A company's debts or obligations that are due within one year.
Inventory Turnover ratio: Inventory Turnover is a ratio showing how many times a company's inventory is sold and replaced over a period. Sales Turnover 퐼푛푣푒푛푡표푟푦 푇푢푟푛표푣푒푟 푟푎푡𝑖표 = Inventory Debtors Turnover: Accounts receivable turnover is an efficiency ratio or activity ratio that measures how many times a business can turn its accounts receivable into cash during a period Sales Turnover 퐷푒푏푡표푟푠 푇푢푟푛표푣푒푟 푟푎푡𝑖표 = Accounts recievables Fixed Asset Turnover: The fixed-asset turnover ratio is a financial ratio of net sales to fixed assets Sales Turnover 퐹𝑖푥푒푑 퐴푠푠푒푡 푇푢푟푛표푣푒푟 푟푎푡𝑖표 = Fixed Assets Current Asset Turnover: The current-asset turnover ratio is a financial ratio of net sales to fixed assets Sales Turnover 퐶푢푟푟푒푛푡 퐴푠푠푒푡 푇푢푟푛표푣푒푟 푟푎푡𝑖표 = Current Assets Operating Profit Margin: Operating margin is a measurement of what proportion of a Company’s revenue is left over after paying for variable costs of production such as wages, raw materials etc. It can be calculated by dividing a Company’s operating income (also known as “operating profit”) during a given period by its sales during the same period. Operating profit 푂푝푒푟푎푡𝑖푛푔 푃푟표푓𝑖푡 푀푎푟푔𝑖푛 = Sales Turnover Net Profit Margin: Net profit margin is the percentage of revenue left after all expenses have been deducted from sales Net profit 푁푒푡 푃푟표푓𝑖푡 푀푎푟푔𝑖푛 = Sales Turnover
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STAKEHOLDERS EMPOWERMENT SERVICES INDIAN OVERSEAS BANK
S ECTOR: BANKS REPORTING DATE: 23RD FEBRUARY, 2019 Total Sales to Total Assets Ratio: The total sales to total assets ratio measures the ability of a business to generate sales on assets. Sales Turnover 푇표푡푎푙 푆푎푙푒푠 푡표 푇표푡푎푙 퐴푠푠푒푡푠 푅푎푡𝑖표 = Total Assets Return on Assets: ROA tells you what earnings were generated from invested capital (assets) Net profit 푅푒푡푢푟푛 표푛 퐴푠푠푒푡푠 = Total Assets Return on equity/net worth: return on equity (ROE) is the amount of net income returned as a percentage of shareholders’ equity. Net profit 푅푒푡푢푟푛 표푛 퐸푞푢𝑖푡푦 = Net worth Return on Capital Employed: Return on capital employed (ROCE) is a financial ratio that measures a company's profitability and the efficiency with which its capital is employed. Net profit 푅푒푡푢푟푛 표푛 퐶푎푝𝑖푡푎푙 퐸푚푝푙표푦푒푑 = Total Debt + Equity share capital Current ratio: The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts over the next 12 months. It compares a firm's current assets to its current liabilities. Current Assets 퐶푢푟푟푒푛푡 푟푎푡𝑖표 = Current Liabilities Quick ratio: The quick ratio is a measure of how well a Company can meet its short term financial liabilities. Current Assets − Inventories 푄푢𝑖푐푘 푟푎푡𝑖표 = Current Liabilities Cash ratio: The ratio of the liquid assets of a Company to its current liabilities. Current Assets − Inventories − Account Recievables 퐶푎푠ℎ 푟푎푡𝑖표 = Current Liabilities Working Capital Turnover ratio: The working capital turnover ratio is also referred to as net sales to working capital. It indicates a Company's effectiveness in using its working capital. 푆푎푙푒푠 푇푢푟푛표푣푒푟 푊표푟푘𝑖푛푔 퐶푎푝𝑖푡푎푙 푇푢푟푛표푣푒푟 푟푎푡𝑖표 = Current Assets − Current Liabilities Debt to Equity ratio: The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets. 푆ℎ표푟푡 푇푒푟푚 퐷푒푏푡 + 퐿표푛푔 푇푒푟푚 퐷푒푏푡 퐷푒푏푡 푡표 퐸푞푢𝑖푡푦 푟푎푡𝑖표 = 푁푒푡 푊표푟푡ℎ Interest Coverage ratio: The Interest coverage ratio is a debt ratio and profitability ratio used to determine how easily a Company can pay interest on outstanding debt. 퐸푎푟푛𝑖푛푔 퐵푒푓표푟푒 퐼푛푡푒푟푒푠푡 푎푛푑 푇푎푥 퐼푛푡푒푟푒푠푡 퐶표푣푒푟푎푔푒 푅푎푡𝑖표 = 퐹𝑖푛푎푛푐푒 퐶표푠푡 Long Term Debt to Total Assets Ratio: The long-term debt to total assets ratio is a measurement representing the percentage of a corporation's assets financed with loans or other debt obligations lasting more than one year. 퐿표푛푔 푇푒푟푚 퐷푒푏푡 퐿표푛푔 푇푒푟푚 퐷푒푏푡 푡표 푇표푡푎푙 퐴푠푠푒푡 푅푎푡𝑖표 = 푇표푡푎푙 퐴푠푠푒푡푠 Retained Earnings to Total Assets Ratio: The ratio of retained earnings to total assets helps measure the extent to which a company relies on debt, or leverage. 푅푒푡푎𝑖푛푒푑 퐸푎푟푛𝑖푛푔푠 푅푒푡푎𝑖푛푒푑 퐸푎푟푛𝑖푛푔푠 푡표 푇표푡푎푙 퐴푠푠푒푡푠 푅푎푡𝑖표 = 푇표푡푎푙 퐴푠푠푒푡푠
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STAKEHOLDERS EMPOWERMENT SERVICES INDIAN OVERSEAS BANK
S ECTOR: BANKS REPORTING DATE: 23RD FEBRUARY, 2019 Total Liabilities to Total Assets Ratio: The liabilities to total assets ratio is a solvency ratio that examines how much of a company's assets are made of liabilities. 푇표푡푎푙 퐿𝑖푎푏𝑖푙𝑖푡𝑖푒푠 푇표푡푎푙 퐿𝑖푎푏𝑖푙𝑖푡𝑖푒푠 푡표 푇표푡푎푙 퐴푠푠푒푡푠 푅푎푡𝑖표 = 푇표푡푎푙 퐴푠푠푒푡푠 Market Cap/Sales ratio: Market Cap/sales ratio, Price–sales ratio, P/S ratio, or PSR, is a valuation metric for stocks. It is calculated by dividing the company's market cap by the revenue in the most recent year; or, equivalently, divide the per- share stock price by the per-share revenue.
푀푎푟푘푒푡 퐶푎푝 푀푎푟푘푒푡 퐶푎푝/푆푎푙푒푠 푟푎푡𝑖표 = 푆푎푙푒푠 푇푢푟푛표푣푒푟 Market Cap/ Net Worth ratio: It is a valuation ratio calculated by dividing Company’s market cap to net worth.
푀푎푟푘푒푡 퐶푎푝 푀푎푟푘푒푡 퐶푎푝/푁푒푡푤표푟푡ℎ 푟푎푡𝑖표 = 푁푒푡푤표푟푡ℎ Market Cap/ PAT ratio: It is a valuation ratio calculated by dividing Company’s market cap to net profit.
푀푎푟푘푒푡 퐶푎푝 푀푎푟푘푒푡 퐶푎푝/푃퐴푇 푟푎푡𝑖표 = 푛푒푡 푝푟표푓𝑖푡 Market Cap/ EBITDA ratio: It is a valuation ratio calculated by dividing Company’s market cap to EBITDA.
푀푎푟푘푒푡 퐶푎푝 푀푎푟푘푒푡 퐶푎푝/퐸퐵퐼푇퐷퐴 푟푎푡𝑖표 = 퐸퐵퐼푇퐷퐴 Trading Volume (shares) (avg. of 1 year): Average number of shares/day traded in 1 year Trading volume (shares) (high in 1 year): Highest number of shares/day traded in 1 year
Trading volume (shares) (minimum in 1 year): Lowest number of shares traded on any one day in 1 year
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STAKEHOLDERS EMPOWERMENT SERVICES INDIAN OVERSEAS BANK
S ECTOR: BANKS REPORTING DATE: 23RD FEBRUARY, 2019 DISCLAIMER
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