8/8/2019 Fin June 09

1/41

1

PERFORMANCE

HIGHLIGHTS

JUNE 2009

8/8/2019 Fin June 09

2/41

2

PERFORMANCE HIGHLIGHTS FOR JUNE 2009PERFORMANCE HIGHLIGHTS FOR JUNE 2009

8/8/2019 Fin June 09

3/41

3

Branch Mix Mar 09 Jun 08 Jun 09

Rural 411 403 414

Semi-Urban 412 399 414

Urban 393 369 396

Metro 216 200 224

TOTAL 1432 1371 1448

BusinessDeliveryChannels

Mar 09 Jun 08 Jun 09

Branches 1432 1371 1448

ExtensionCounters

52 66 50

ATMs 726 660 778

SatelliteOffices

38 38 38

TOTAL 2248 2135 2314

BRANCH NETWORK AND BUSINESS DELIVERY CHANNELSBRANCH NETWORK AND BUSINESS DELIVERY CHANNELS

8/8/2019 Fin June 09

4/41

4

Details FY 08-09

Quarter Ended % Growth(Jun 08

Jun 09Jun 08 Jun 09

Aggregate Deposits 59201.51 49034.64 60368.78 23.11

Advances (GBC) 44427.60 34081.05 44911.38 31.78

Investments (Net) 16911.11 15939.52 17864.57 12.08

C / D Ratio(%) 75.04 69.50 74.40%

Net Interest Income 1626.92 346.25 441.37 27.47

perating rofit 1288.03 205.27 347.99 69.53

Core perating rofit (e cl

Profit on sale of Investments)1050.42 190.39 219.31 15.19

Net Profit 653.05 77.62 256.21 230.08

(Rs in crores)

BUSINESS LEVELSBUSINESS LEVELS

Interest Income from Advances has shown a robust growth of 38.37% and Interest

Income from Investments increased by 3.71%.

8/8/2019 Fin June 09

5/41

5

(Rs in crores)

Total Deposits(including Interbank

Deposits) increasedby 22.76%

Term Depositsshot up by 27.34%

Low Cost Depositsshown a healthy

growth of 13.54%

DEPOSITS - GROWTHDEPOSITS - GROWTH

8/8/2019 Fin June 09

6/41

6

(Rs in crores)

DEPOSITS - COMPOSITIONDEPOSITS - COMPOSITION

Type ofDeposit

FY 08-09

Quarter Ended

Jun 08 Jun 09

Current

Deposits

5215.65 3698.13 4818.74

% Share 8.78% 7.52% 7.98%

SavingsDeposits

13437.78 12618.16 13706.84

% Share 22.63% 25.66% 22.71%

TermDeposits 40736.59 32859.09 41843.20

% Share 68.59% 66.82% 69.31%

T O T A L: 59390.02 49175.38 60368.78

As on Jun 2009, Low Cost Deposits constituted 30.69% and Term Deposits constituted69.31% of the Total Deposits.

8/8/2019 Fin June 09

7/41

7

DEPOSITS - AVERAGEDEPOSITS - AVERAGE

Type ofDeposit

FY 08-09

Quarter Ended

Jun 08 Jun 09

Current 3234.50 2858.79 3812.05

Savings 12278.63 12170.79 13282.00

Term 34561.31 32525.88 40667.06

T O T A L: 50074.44 47555.46 57761.11

(Rs in crores)

8/8/2019 Fin June 09

8/41

8

ADVANCESADVANCES

SECTOR FY 08-09

Quarter Ended

Jun 08 Jun 09

Medium & LargeIndustries

15523 9579 16965

SSI & Small Entp. 3341 2834 3674

Other PrioritySector

11614 10682 11487

Other Sectors 13950 10986 12785

Gross Bank Credit 44428 34081 44911

% GROWTH IN GBC 28.56% 25.57% 31.78%

Advances have sho n a healthy gro th of31.78%.

(Rs in crores)

8/8/2019 Fin June 09

9/41

9

RETAIL CREDITRETAIL CREDIT

Category FY 08-09Quarter Ended

Jun 08 Jun 09

HousingLoans(Direct

Finance)

2232 2032 2373

EducationalLoans

1446 1212 1489

Non Agl.Gold Loans

715 273 851

Other RetailCredit

1649 1458 1738

Total 6042 4975 6451

Housing Loans registereda growthof16.78%and Educational Loans rose by 22.85%

Non Agl. Gold Loans registereda growthof 211.72%

Total Retail Credit achieveda growthrate of 29.67%

(Rs in crores)

8/8/2019 Fin June 09

10/41

10

Asset Quality FY 08-09

Quarter Ended

Jun 08 Jun 09

StandardAssets

99.17% 98.85% 99.20%

Sub-StandardAssets

0.31% 0.36% 0.25%

Doubtful Assets 0.50% 0.78% 0.52%

Loss Assets 0.02% 0.01% 0.03%

T O T A L 100.00% 100.00% 100.00%

QUALITY OF LOAN ASSETSQUALITY OF LOAN ASSETS

Quality of Loan Assets as on 30.06.09

Healthy and appropriate credit decisionshave enabled the Bank to maintain aconsistent and increasing Standard Assetsbase.

8/8/2019 Fin June 09

11/41

11

PARAMETER FY 08-09

Quarter Ended

Jun 08 Jun 09

Gross NPAs at the beginning of the period 372.43 372.43 368.14

Less: Reductionduring the period 205.61 21.25 33.00

NPAs afterreduction 166.82 351.18 335.14

Add: Additions during the period 201.32 41.64 23.94

Gross NPAs at the endof the period 368.14 392.82 359.08

Net NPAs at the endof the period 79.22 35.13 99.62

NPA MOVEMENTNPA MOVEMENT(Rs in crores)

8/8/2019 Fin June 09

12/41

12

PeriodEnded

Gross NPAs to

Gross Advances

Net NPAs to

Net Advances

Rs.Crore

%Rs.

Crore%

FY 08-09

368.14 0.83 79.22 0.18

Jun 08(Q1)

392.82 1.15 35.13 0.10

Jun 09(Q1)

359.08 0.80 99.62 0.22

NON-PERFORMING ASSETS YEARWISE MOVEMENTNON-PERFORMING ASSETS YEARWISE MOVEMENT

The Gross and Net NPAs are among thelo est in the industr . Increase in NetNPAs f or June 2009 is on account ofchange in treatment of floatingprovisions mandated Reserve Banof India.

8/8/2019 Fin June 09

13/41

13

PeriodEnded

ProvisionCoverage

%

SlippageRatio%

FY 08-09 81.49 0.59

Jun 08 (Q1) 90.88 0.12

Jun 09 (Q1) 85.92 0.05

PROVISION COVERAGE FOR NPAS & SLIPPAGE RATIOPROVISION COVERAGE FOR NPAS & SLIPPAGE RATIO

With early detection of delinquencyand initiation of corrective steps atthe right time the slippage ratio wascurtailed at 0.05 as against 0.12 lastyear.

8/8/2019 Fin June 09

14/41

14

Particulars FY 08-09

Quarter Ended

Jun 08 Jun 09

NetInvestments

1

911.11 1 9 9.52 1 8

4.57

AverageInvestments

15953.00 15839.57 18144.09

Profit on SaleofInvestments

237.62 14.88 128.68

Yieldon

Investments 8.84% 7.42% 6.65%

INVESTMENTSINVESTMENTS(Rs in crores)

Total Investments increased by 12.08% fromJun 08 to Jun 09. YoY Profit on Sale ofInvestments zoomed by 765.95%.

88

J n- 8 M r- J n-

Ne nves en s

8/8/2019 Fin June 09

15/41

15

Type of Investments FY 08-09

Quarter Ended

Jun 08 Jun 09

GovernmentSecurities

15215.03 14400.29 16076.20

Other ApprovedSecurities

96.40 117.90 82.33

Shares 165.51 195.45 121.80

Debentures andBonds

989.40 824.44 783.39

Subsidiaries and/ orJoint Ventures

9.31 9.31 9.31

Others (IDBIDeposits, IVPs, Unitsof UTI & MutualFunds and RIDF

435.46 392.14 791.54

Total Investments

(Net) 16911.11 15939.53 17864.57

INVESTMENTS - COMPOSITIONINVESTMENTS - COMPOSITION(Rs in crores)

8/8/2019 Fin June 09

16/41

16

Nature of

Investments

FY 08-09

Quarter Ended

Jun 08 Jun 09

Amt.%ofTotal

Amt.%ofTotal

Amt.%ofTotal

SLRSecurities

15291 90.42 14478 90.83 16139 90.34

Non-SLR

Securities 1620 9.58 1462 9.17 1726 9.66

Recap Bonds 0 0.00 0 0.00 0.00 0.00

Total 16911 100.00 15940 100.00 17865 100.00

BREAK UP OF INVESTMENTSBREAK UP OF INVESTMENTS

SLR maintainedas on 30.06.2009 25.53 %of NDTL

(Rs in crores)

8/8/2019 Fin June 09

17/41

17

QUALITY OF INVESTMENT PORTFOLIOQUALITY OF INVESTMENT PORTFOLIO

Duration of Investment portfolio as on 30.06.2009 is 5.19 years.(4.71 years as on 30.06.2008)

Duration of AFS portfolio as on 30.06.2009 is 1.98 years (3.17 yearsas on 30.06.2008)

NPAs in Investment Portfolio Rs. 0.53 crores 100% provided

8/8/2019 Fin June 09

18/41

18

Particulars FY 08-09

Quarter Ended

Jun 08 Jun 09

Operating Profit 1288.03 205.27 347.99

Core OperatingProfit (excl. Profitfrom sale ofInvestments)

1050.42 190.39 219.31

Pro

vision

s 634.

981

27.65 9

1.78

Net Profit 653.05 77.62 256.21

NET PROFITNET PROFIT(Rs in crores)

The Operating Profit and Net Profit YoYincreased by 69.53% and 230.08% respectively.

8/8/2019 Fin June 09

19/41

19

Particulars FY 08-09

Quarter Ended

Jun 08 Jun 09

Interest Income 5374.62 1157.36 1504.63

Interest Expenses 3747.71 811.11 1063.26

Interest Spread(NII)

1626.91 346.25 441.37

NIM(On EarningAssets)

3.03% 2.74% 2.85%

PROFIT & LOSS ACCOUNT SPREAD MANAGEMENTPROFIT & LOSS ACCOUNT SPREAD MANAGEMENT

(Rs in crores)

Th t nt r t ncome showe sharpincrease 27.47 . The Net nterest arginimprove from 2.74% to 2.85%.

8/8/2019 Fin June 09

20/41

20

Interest on FY 08-09

Quarter Ended

Jun 08 Jun 09

Advances 4215.06 880.10 1217.83

Investment 1098.98 270.89 280.95

Others 60.58 6.37 5.85

T O T A L 5374.62 1157.36 1504.63

INTEREST INCOMEINTEREST INCOME(Rs in crores)

8/8/2019 Fin June 09

21/41

21

ParticularsFY 08-

09

Quarter Ended

Jun 08 Jun 09

Interest onDeposits

3487.13 768.61 980.88

Interest on Sub-ordinate Debt

139.57 24.03 38.74

Interest onBorrowings

121.01 18.47 43.64

T O T A L 3747.71 811.11 1063.26

INTEREST EXPENSESINTEREST EXPENSES(Rs in crores)

8/8/2019 Fin June 09

22/41

22

A) Non-interest Income from CoreOperations

FY 08-09

Quarter Ended

Jun 08 Jun 09

1) Commission & Exchange 195.11 45.06 41.36

2) Other Income 293.70 49.99 52.50

Sub Total (A) 488.81 95.05 93.86

B) Non Interest Income fromTreasury

1) Dividend Income 3.31 0.95 0.27

2) Forex Profit 52.51 13.74 15.05

3) Profit on Sale of Investments 237.61 14.88 128.68

4) Loss on Redemption -16.86 -15.86 0.21

Sub Total (B) 276.57 13.71 144.21

Total Non Interest Income 765.38 108.76 238.07

PROFIT & LOSS ACCOUNT NON-INTEREST INCOMEPROFIT & LOSS ACCOUNT NON-INTEREST INCOME

(Rs in crores)

8/8/2019 Fin June 09

23/41

23

Particulars FY 08-09

Quarter Ended

Jun 08 Jun 09

EstablishmentExpenses

624.06 140.65 211.39

Other OperatingExpenses

480.20 109.09 120.05

T O T A L: 1104.26 249.74 331.44

NON-INTEREST EXPENDITURENON-INTEREST EXPENDITURE(Rs in crores)

As on Jun 2009, of the Total Non Interest Expenditure, Establishment Expensesconstituted 64% and Other Expenses constituted 36%. Establishment Expenditure

includes Rs.40 crs. Adhoc provision (Rs.20 crs in Mar 09) towards wage arrearspending outcome ofnegotiation with IBA.

8/8/2019 Fin June 09

24/41

24

Particulars FY 08-09

Quarter Ended

Jun 08 Jun 09

Income Tax 245 5 95

Dep./Loss onrevaluationofInvestments

173 77 -129

Provision for NPAs 170 39 38

Provisionagainst StandardAssets

13 0 0

Depreciationon Tr. To HTM 9 9 78

thers 25 -3 10

Total 635 127 92

PR VISI NS & C NTINGENCIESPR VISI NS & C NTINGENCIES

Provision on restructured accounts

(Rs in crores)

8/8/2019 Fin June 09

25/41

25

PERIODENDED

TOTALCAPITAL

TIER-ICAPITAL

TIER-IICAPITAL

% OF TIER-I TO TOTAL

CAPITAL

FY 08-09 5563.84 3646.97 1916.87 65.55%

Jun 08

(Q1)4296.25 3183.34 1112.91 74.10%

Jun 09(Q1)

6356.01 3908.96 2447.05 61.50%

CAPITAL STRUCTURECAPITAL STRUCTURE(Rs in crores)

Tier I Capital Funds increased by Rs. 725.62 croresand Tier II Capital Funds increased by Rs. 1334.14crores from Jun 2008 to Jun 2009.

8/8/2019 Fin June 09

26/41

26

CAPITAL ADEQUACY AND OTHER RATIOSCAPITAL ADEQUACY AND OTHER RATIOS

Ratio

As PerBASEL II

As PerBASEL I

As PerBASEL II

FY 08-09Jun 08

(Q1)Jun 09

(Q1)

Tier I Capital

Ratio8.67% 8.99% 9.07%

Tier II CapitalRatio

4.55% 3.14% 5.68%

Total CapitalRatio (CRAR)

13.22% 12.13% 14.75%

Net Worth toGBC %

7.78% 9.76% 8.69%

Capital Adequacy Ratio is at 14.75% as on30.06.2009 as per BASEL II.

8/8/2019 Fin June 09

27/41

27

Ratios FY 08-09

Quarter Ended

Jun 08 Jun 09

Cost of

Deposits % 6.96 6.52 6.79

Yieldon

Advances %11.41 10.39 11.20

Yieldon

Investments %7.35 7.42 6.65

KEY RATIOS AND INDICATORSKEY RATIOS AND INDICATORS

YoY, Cost of Deposits increased by 27 bpswhile the Yield on Advances increased by81 bps.

8/8/2019 Fin June 09

28/41

28

RatiosFY 08-

09

Quarter Ended

Jun 08 Jun 09

ost to

ncome

Ratio46.16 55.85 48.78

Staff

ost as %ofAverage WorkingFunds

1.04 1.01 1.22

Other OperatingExpenses as %ofAverage WorkingFunds

0.80 0.78 0.69

KEY RAT OS AND ND ATORSKEY RAT OS AND ND ATORS

ost to Income Ratio has been improving continuously YoY and as on Jun 09, the ratioimproved from 55.85% to 48.78%.

8/8/2019 Fin June 09

29/41

29

Ratios FY 08-09

Quarter Ended

Jun 08 Jun 09

Returnon Assets(ROA) %

1.09 0.56 1.48

Returnon Avg. NetWorth (RONW) %

18.94 9.45 27.15

Earnings Per Share(Amount in Rs.)(Annualized)

13.46 6.40 21.13

Book Value PerShare

(Amount in Rs.)

75.20 68.60 80.48

PE Ratio 3.36 8.54 3.88

EARNING RATIOSEARNING RATIOS

As on Jun 09, Earnings per Share improved from 6.40 to 21.13 and the Book valueimproved from Rs.68.60 to Rs.80.48. Market apitalization as on 30.06.2009 is

Rs.3979.45 crores.

8/8/2019 Fin June 09

30/41

30

Ratios FY 08-09

Quarter Ended

Jun 08 Jun 09

Business PerEmployee 7.28 6.15 7.41

Gross Profit PerBranch

0.90 0.60 0.96

Net Profit PerEmployee

0.05 0.02 0.07

Business PerBranch

72.50 60.73 72.71

PRODUCTIVITY RATIOSPRODUCTIVITY RATIOS(Rs in crores)

YoY Business Productivity Per Employeeincreased by 20.49% and the Gross Profit perBranch increased by 60% .

8/8/2019 Fin June 09

31/41

31

SHARE HOLDING PATTERN JUN 2009SHARE HOLDING PATTERN JUN 2009

Share Capital Rs.4 5 Crores

o. ofShares 4 5 illion

Go ernment of India 51.55

General Public 14.02

RIs/OCB 0.11

Pri ate Corporate Bodies 1.90

utual Funds & UTI 3. 1

Banks/Fis/Insurance Cos 13.25

Foreign Institutional In estors 15.02

Others 0.34

Total 100.00

SHARE HOLDI G PATTER

8/8/2019 Fin June 09

32/41

32

RESTRUCTURED ACCOUNTS AS ON 30.06.2009RESTRUCTURED ACCOUNTS AS ON 30.06.2009

(Rs in crores)

S. O. PARTICULARS NO.OF

A/CS

A OUNT

RESTURCTURED

1 Micro, Small

and Medium

Enterprises

13713 365.97

2 Housing Loans 16987 257.98

3 Major

Industries

78 1429.98

4 Loans,Agricultural

Loans, Loans

given to Retail

Trade etc.

27977 307.22

Total

Restructured

5 755 2361.15

8/8/2019 Fin June 09

33/41

33

MONITORING OF RESTRUCTURED ACCOUNTSMONITORING OF RESTRUCTURED ACCOUNTS

Special Cells created at all Controlling Offices.

Zonal Managers personally monitoring all the Restructuring Accounts.

All high value accounts of Rs.50 lacs and above monitored from Head Office.

Progress reviewed in Fortnightly Video Conference withallZonal Offices.

8/8/2019 Fin June 09

34/41

34

8/8/2019 Fin June 09

35/41

35

The performance of the Bank is significant as a result of our attempt to transform it using the four

factors iz. technology, product, process and human resource management.

Organisational Restructuring by creating the following Verticals for hastening the decision making

process and defining Profit Centers with responsibility and accountability on Vertical Heads to

reach the set Goals.

Priority Sector

SME

Retail Credit

Marketing

Mid Corporate

Large Corporate

Branch OperationsInternational Banking & Treasury

BUSINESS STRATEGY - VERTICALSBUSINESS STRATEGY - VERTICALS

8/8/2019 Fin June 09

36/41

36

TECHNOLOGY INITIATIVESTECHNOLOGY INITIATIVES

All the Branches of the Bank are under CBS.

Internet Banking with customer transaction facility launched for retail and corporate CBScustomers.

SMS Alerts f acility over mobile phones made available to more than 4.61 lac clienteleregistered for the facility till now, enhancing the levels ofcustomer service significantly andincreasing further.

Instant issuing ofnon personalized debit cards and transaction PIN is introduced.

Besides banks own ATMs, our debit cards are made acceptable in 38,000 ATMs.

Debit Card base has increased to 40.78 lakhs.

A web based inward remittance product AB Speedway is launched in association with CitiBank for speedy, cost effective and online transfer of funds from USA.

Bank has launched the E-Trade facility to provide seamless on-line and easy trading as wellas delivery based and intra day trading. It also allows a unique facility of Lien marketing of

funds.

8/8/2019 Fin June 09

37/41

37

Clientele base of the Bank improvedby 2.5 million in the last one year.

NumberofBusiness Delivery Channels increased from 2135 (30.6.08) to 2314(30.06.09).

Numberofbranches increased from 1371 (30.06.08) to1448 (30.06.09) covering 22states and 2 Union Territories.

Numberof ATMs increased from 660 as on 30.6.08 to 778 as on 30.06.09.

RTGS Facility extended through 805 branches

An initiative of RBI, National Electronic Funds Transfer (NEFT) Facility implementedatService Center, Mumbai along with1164branches

EXPANSION INITIATIVESEXPANSION INITIATIVES

8/8/2019 Fin June 09

38/41

38

BRAND BUILDING MEASURESBRAND BUILDING MEASURES

Bank has signed MOU f or launching a banking subsidiary in Malaysia jointly withBank ofBaroda and Indian Overseas Bank.

Banks joint venture in Insurance business with Bank ofBaroda and L&G Insurance,UK is in final stages oflaunch.

Bank has introduced a friendly, intelligent, responsive Dolle (The Dolphin), as

Mascot of the bank, first of its kind in the industry to reflect the stance of the bankand as a step towards bringing national visibility.

The new corporate slogan Andhra Bank.for all your needs is introduced reflectinggood recall and visual value.

8/8/2019 Fin June 09

39/41

39

CORPORATE SOCIAL RESPONSIBILITYCORPORATE SOCIAL RESPONSIBILITY

Community and Social Investment initiatives undertaken with the objective ofproviding Philanthropic Assistance for development, education etc.

Sponsored Andhra Bank School ofBusiness and Andhra Pradesh Bankers Instituteof Entrepreneurship Development which offers training to unemployed youth forimproving their skills.

Established Financial, Literacyand Credit Counseling Centers inall its Lead Districtsin Andhra Pradesh.

Trained over 78 thousand candidates through its 10 Rural Training Institutes, fortaking up gainful self employment.

Launched SHG lending through Smart Cards andas a part ofFinancial Inclusionadopted 2 Districts andachieved100%coverage.

As an initiative towards Financial Inclusion, launched 3 Mobile ATMs withBio-MetricFacility.

8/8/2019 Fin June 09

40/41

40

The Road Ahead

LOOKING FORWARDLOOKING FORWARD

Bankaims toattainabusiness mix of Rs.130,000 Crs by the endof March10 at agrowthrate of 30%and Rs.150,000 Crs by September10.

Bank is targeting toreach CASA percentage of 33%of totaldeposits by March10.

Bank shall be rolling out the insurance products of its own Joint Venture for sale by July10.

Banking subsidiary in Malaysia jointly with BoB and IOB expected to function next year.

Bankhas plans ofopening 121branches in the present financialyear mostly in theNorthern parts of Indiaand installing 50 ATMs.

8/8/2019 Fin June 09

41/41

41THANK YOU

www.andhrabank.in