Presentation on Performance Presentation on Performance JUNE 2010JUNE 2010

WELCOME TO

ANALYSTS’ & INVESTORS’

Consistent Growth

All The Way

A Brief History

1865 : Founded by a group of Europeans at Allahabad,

1920 : Passed into the fold of P & O Banking Corporation (POBC),

1923 : Head Office shifted to Kolkata, 1927 : Chartered Bank took over (POBC) –

Allahabad Bank became a subsidiary of Chartered Bank,

1965 : Centenary Celebration – 100th Branch at Ranchi,

1969 : Nationalization - Business – Rs.196 crore Dep. – Rs.114 crore, Adv. – Rs.82 crore,

2002 : Initial Public Offer – Rs.100 crore, 2005 : Follow on Public Offer – Rs.100 crore,

THE OLDEST JOINT STOCK BANK IN THE COUNTRY

A Profile

Total Business :Rs.1,84,039 crore,

Total Deposits : Rs. 1,08,320 crore,

Credit : Rs. 75,718 crore,

Investment : Rs. 36,440 crore,

Operating Profit : Rs. 2,549 crore (FY,2009-10)

: Rs. 705 crore (Q1,2010-11)

Net Profit : Rs. 1,206 crore

: Rs. 347 crore (Q1,2010-11)

Number of Branches : 2,316,

International Operations : Representative Office at Shenzhen,

China (2006) Branch at Hong Kong (2007)

Subsidiary : AllBank Finance Ltd. (1991)

Joint Venture : Universal Sompo General Insurance Company (2006)

Regional Rural Banks : 2 (1in UP & 1 in MP)

Branch Network

Branch Expansion

Branches 2,316 as on 30.6.2010

47920.7%

44119.0%

97842.2%

41818.1%

Rural Semi-Urban Urban Metropolitan

1999 20602154

22862260

64

6194

106

26

1500

1750

2000

2250

2500

FY'06 FY'07 FY'08 FY'09 FY'10

10

30

50

70

90

110

130Branches

Expansion

Profit Rs. in crores

Amt. (% )

1 Interest Income 2008 2403 8369 395 19.67

2 Interest Expenses 1379 1553 5719 174 12.59

3 NII (Spread) (1-2) 629 850 2650 221 35.18

4 Other Income 370 299 1516 -71 -19.20

5 Operating Expenses 408 444 1618 36 8.92

6 Contribution (4-5) -38 -146 -102 -107 279.29

7 Operating Profit (3+6) 591 705 2549 114 19.29

8 Provisions 288 357 1342 70 24.21

9 Net Profit 303 347 1206 44 14.62

Sl. Parameters Mar'10Jun'09 Jun'10 Q1'10 over Q1'09Variation

Profit Excl. Trading Profit Rs. in crores

Amt. (% )

1 Operating Profit 591 705 2549 114 19.29

2 Investment Trading Profit 214 90 577 -124 -57.95

3Operating Profit from Core Activities

377 615 1972 238 63.19

VariationQ1'10 over Q1'09Sl. Parameters June'09 June'10 Mar'10

Amt. (% )

1 Net Profit 303 347 1206 44 14.62

2 Investment Trading Profit 214 90 577 -124 -57.95

3Net Profit from Core Activities

89 257 630 168 189.50

VariationQ1'10 over Q1'09Mar'10Sl. Parameters June'09 June'10

ProvisionsRs. in crores

Particulars Jun'09 Jun'10 Mar'10

Bad & Doubtful Debts 251.00 70.00 830.21

Standard Advance 1.46 12.65 2.85

Depreciation on Inv. -214.68 1.95 -102.44

Income Tax 248.13 206.39 565.30

Others 1.86 66.45 46.30

Total Provision 287.77 357.44 1342.22

Break-up : IncomeRs. in crores

Amt. (% )

1 Interest on Advances 1558 1811 6398 252 16.20

2 Interest on Investments 442 582 1945 139 31.44

3 Other Interest Income 7 11 26 3 45.31

4 Interest Income (1+2+3) 2008 2403 8369 395 19.67

5 Non-Fund Non-Interest Inc. 147 170 697 24 16.23

6 Trading Profit 214 90 577 -124 -57.95

6a Income from Liquid Mutual Fund

49 42 316 -6 -12.51

6b Normal Trading Profit 166 48 260 -118 -71.27

7 Other Income 9 38 242 29 327.01

8 Total Income (4+5+6+7) 2378 2702 9885 324 13.63

VariationQ1'10 over Q1'09Sl. Parameters Mar'10Jun'10Jun'09

Sources of Income

18.61%65.54%

0.69%9.00%6.16%

Adv. Intt. Inv. Intt.NFNI Trading Prof.Others

21.53%

67.02%

1.82%3.33%6.30%

Sources of Income June 2009

Sources of Income June 2010

Break-up : Fee-based IncomeRs. in crores

Amt. (% )

1 Bills 11 11 48 0 -0.28

2 LC/ BG 34 60 151 26 74.27

3 Locker Rent 14 15 24 1 6.83

4 Processing Fees 33 34 229 1 2.54

5 Others 39 34 171 -5 -12.62

6Commission (1+2+3+4+5)

131 154 622 23 17.14

7 Exchange 15 16 75 1 8.32

8 Total 147 170 697 24 16.23

Y-O-YMar'10June'10Variation

June'09Sl. No.

Particulars

Break-up : Expenditure

Rs. in crores

Amt. (% )

1 Interest Paid on Deposits 1298 1454 5342 156 12.05

2 Intt. Paid on Borrowings 81 98 376 17 21.20

3 Total Interest Paid (1+2) 1379 1553 5719 174 12.59

4 Establishment Expenses 272 285 1011 13 4.85

5 Other Operating Expenses 136 159 606 23 17.06

6 Operating Expenses (4+5) 408 444 1618 36 8.92

7 Total Expenses (3+6) 1787 1997 7337 210 11.75

Jun'09Variation

Sl. Parameters Mar'10Jun'10 Q1'10 over Q1'09

Cost & Yield Ratios

1 Cost of Deposit (% ) 6.08 5.60 5.97

2 Cost of Borrowings (% ) 8.16 6.57 6.27

3 Cost of Fund (% ) 6.17 5.66 5.99

4 Yield on Advances (% ) 10.86 10.32 10.57

5 Yield on Investment (% ) 6.78 6.84 6.83

6 Yield on Fund (% ) 8.85 8.77 8.68

7 Net Interest Margin (% ) 3.00 3.10 2.94

Sl. Parameters Jun'09 Jun'10 Mar'10

Quarterly Net Interest Margin

in per cent

2.322.60

2.70

3.242.97 3.00

2.84 2.97 3.00 3.10

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Mar

'08

June'

08

Sep'08

Dec'08

Mar

'09

Jun'0

9

Sep'09

Dec'09

Mar

'10

June'

10

Net Interest Margin (%)

NIM FOR FY 2009 : 2.88 NIM FOR FY 2010 : 2.94

NIM FOR June’2009:3.00 NIM FOR June’2010 : 3.10

Profit Ratios

1 Return on Assets (% ) 1.22 1.16 1.16

2 Return on Networth (% ) 23.62 22.91 22.21

3 Operating Profit to AWF (% ) 2.39 2.36 2.44

4 Cost to Income Ratio (% ) 40.85 38.67 38.83

5 Estab. Exp. to Total Exp. (% ) 15.22 14.28 13.79

6 Operating Exp. to AWF (% ) 1.65 1.49 1.55

7 Book Value Per Share (Rs) 137.75 159.02 151.17

8 Earnings per share (Rs) 6.78 7.77 27.01

Mar'10Jun'10Sl. Parameters Jun'09

BusinessRs. in crores

Amt. (% ) Amt. (% )

1 Total Business 150403 178493 184039 5546 3.11 33635 22.36

2 Total Deposit 89401 106056 108320 2265 2.14 18919 21.16

3 Total Advances 61002 72437 75718 3281 4.53 14716 24.12

4 Credit Deposit Ratio (% ) 69.00 68.93 70.30

Sl. Parameters Mar'10Jun'09Variation

Q1 Y-O-YJun'10

DepositRs. in crores

Amt. (% ) Amt. (% )

1 Total Deposit 89401 106056 108320 2265 2.14 18919 21.16

2 Aggregate Deposit 88415 105086 107705 2619 2.49 19290 21.82

3 DRI/ CD 16538 15198 17426 2228 14.66 888 5.37

3a CD 13726 14609 17035 2426 16.61 3309 24.11

3b DRI 2812 589 391 -198 -33.6 -2421 -86.1

4 Core Deposit 72863 90858 90894 36 0.04 18031 24.75

5 Core Dep. in Total Dep. (4/ 1) 81.50 85.67 83.91

6 SB Deposit 23824 28271 29369 1098 3.88 5545 23.27

7 Current Deposit 6301 8316 7698 -618 -7.43 1397 22.18

8 CASA Deposit 30125 36587 37067 480 1.31 6942 23.04

9 Share in Agg. Deposit (% ) 34.07 34.82 34.42

Jun'09 Jun'10Variation

Q1 Y-O-YSl. Parameters Mar'10

AdvanceRs. in crores

Amt. (% ) Amt. (% )

1 Total Advances 61002 72437 75718 3281 4.53 14716 24.12

1a Food Credit 1719 1457 1469 1.94

1b Non-Food Gross Bank Credit 59283 70980 74249 3269 4.61 14966 25.25 98.06

Of Which 0.00

(1) Priority Sector Credit 20855 24279 24726 447 1.84 3871 18.56 32.66

(2) Agriculture & Allied Actvities 9575 11567 11598 30 0.26 2023 21.13 15.32

(3) MSE 4885 8188 8532 344 4.20 3647 74.66 11.27

(4) MSME 5969 9771 10498 727 7.44 4529 75.88 13.86

(5) Retail Credit, of which 8349 10082 10518 436 4.32 2169 25.98 13.89

Housing/ Mortgage Loans 4919 6016 6266 250 4.16 1348 27.40 8.28

Personal Loans 1690 1786 1798 12 0.65 108 6.37 2.37

Education Loans 675 826 861 35 4.26 186 27.50 1.14

Trade Loans 474 638 718 80 12.51 244 51.52 0.95

Commercial Vehicle 71 120 49 68.65 0.16

Other Retail Loans 591 745 755 10 1.32 164 27.71 1.00

Jun'09Parameters Mar'10 Jun'10Variation

Q1 Y-O-YSl.% of

Advance

Industry-wise DeploymentRs. in crores

1 Minning & Quarrying 53 0.20 67 0.20 71 0.20 0.092 Food Processing 807 3.02 1132 3.36 1143 3.21 1.513 Textiles 1939 7.25 1853 5.50 1837 5.16 2.43

4Chemical & Chemical Products

1600 5.98 2172 6.45 2184 6.14 2.88

4aCement & Cement Products

291 1.09 341 1.01 344 0.97 0.45

5Basic Metal & Metal products

4065 15.20 4638 13.76 5546 15.59 7.32

5a Iron & Steel 3415 12.77 4077 12.10 4463 12.55 5.896 Engineering Products 2105 7.87 3166 9.40 2957 8.31 3.917 Infrastructure 10319 38.58 12714 37.73 13868 38.99 18.327a Power 5760 21.53 7433 22.06 8467 23.81 11.187b Tele-communication 1494 5.59 1651 4.90 1740 4.89 2.30

Industry (Small, Medium & large)

26749 33695 35568 46.97

% of Advance

Share (% )

Mar'10Share (% )

Amt.Major Industry wise

Deployment

Jun'09 Jun'10

Amt.Share (% )

Amt.

Sl. No.

InvestmentRs. in crores

Amt. (% ) Amt. (% )

1 Gross Investment 35286 38680 36440 -2240 -5.79 1154 3.27

2 Held To Maturity (HTM) 18168 23863 25916 2053 8.60 7748 42.65

3 Available For Sale (AFS) 17079 14810 10502 -4308 -29.09 -6577 -38.51

4 Held For Trading (HFT) 39.09 6.95 21.46 15 208.78 -18 -45.10

5 Total Duration 4.86 4.82 4.85

6 Total Modified Duration 4.68 4.64 4.67

7 Duration (AFS+HFT) 2.76 2.52 2.03

8Modified Duration (AFS+HFT)

2.65 2.42 1.93

9Net Demand & Time Liabilities

88245 101378 104368 2989 2.95 16123 18.27

10 SLR (% ) 26.82 30.75 29.11

11 HTM to SLR (% ) 76.78 76.56 85.31

12HTM to Gross Investment (% )

51.49 61.69 71.12

Jun'09Sl. Parameters Mar'10 Jun'10Variation

Q1 Y-O-Y

Non-Performing AssetsRs. in crores

1 NPA as at the beginning of Yr./ Qr.

1078.25 1078.25 1221.80

2 Recovery in NPA 50.69 241.44 98.83

3 Upgradation 96.75 210.51 101.90

4 Write Off 50.22 642.65 0.00

5 Total Reduction 197.66 1094.60 200.73

6 Fresh Adition 212.47 1238.15 118.24

7 NPA as at the end of Yr./ Qr. 1093.06 1221.80 1139.31

8 Provisions 873.27 751.65 830.89

9 Net NPAs 219.79 470.15 308.42

10 Recovery in written-off debt A/ Cs

55.55 229.40 32.93

Parameters Mar'10Jun'09 Jun'10Sl.

NPA Ratios

1 Net NPA (% ) 0.37 0.66 0.41

2 Gross NPA (% ) 1.79 1.69 1.50

3 Provision Coverage Ratio (% ) 88.06 78.95 85.36

4 Recovery Ratio (% ) 54.70 41.92 65.72

5 Slippage Ratio (% ) 1.46 1.98 0.66

Jun'10Mar'10Sl. Parameters Jun'09

Capital Adequacy Ratio (%)Rs. in crores

Particulars Head RoomInnovative Perpetual Debt 625Upper Tier II 1975of which Subordinated Debt 550Total 2600

Particulars Jun'09 Mar'10 Jun'10

Capital Fund

Tier I 5410 6176 6523

Tier II 3193 4190 4201

Total (Tier I+II) 8602 10365 10724

Risk-weighted Assets 68602 76077 79143

Capital Adequacy Ratio (% ) 12.54 13.62 13.55

Tier I (% ) 7.89 8.12 8.24

Tier II (% ) 4.65 5.50 5.31

RWA/ Working Fund (% ) 65.23 62.51 64.05

Ratios : Productivity & Market Share

1 Deposit Market Share (% ) 2.16 2.24 2.29

2 Credit Market Share (% ) 2.04 2.15 2.14

3 Business Per Branch (Rs. Cr.) 66.05 77.62 79.16

4 Busines Per Employee (Rs. Cr.) 7.38 8.45 8.83

5 Profit per Employee (Rs. Lac) 1.49 5.76 1.67

Jun'10Mar'10Sl. Parameters Jun'09

Restructured AccountsRs. in Crore

No. Amt. No. Amt. No. Amt. No. Amt.

1 Below Rs. 1 Crore 43201 793 43201 793 0 0 28282 568

2 Rs. 1 Crore & above

163 3276 163 3276 0 0 152 2675

3 Total 43364 4069 43364 4069 0 0 28434 3242

4Out of which up to 31.03.2009

39756 2564 39756 2564 0 0 26408 1829

5Out of which 1.4.09 to 31.03.10

3601 1459 3601 1459 0 0 2019 1368

Out of which 1.4.10 to 30.06.10

7 45 7 45 0 0 7 45

Of which

6 Standard 42642 3925 42642 3925 0 0 25585 3073

7 NPA 722 144 722 144 0 0 2849 169

Sl. ParticularsApplication Received

Sanctioned PendingOutstanding as on 30.6.10

Sectorwise Restructured AccountsRs. in Crore

Standard Advances No. 13 2623 22949 25585

Amt. 452 283 2338 3073

Sub-Standard Advances No. 551 1807 2358

Amt. 42 115 158

Doubtful Advances No. 83 408 491

Amt. 8 4 12

No. 13 3257 25164 28434

Amt. 452 333 2458 3242

1

Total4

3

2

ParticularsSl.No./ Amt.

Under CDR

SME Debt

Others Total

Sl. Particulars Mar'10 Jun'10Slippage to NPA

1 Agriculture 277 256 11

2 Housing 202 185 19

3 Real Estate 678 616 35

4 Hotel 131 133

5 Industry, of which 1780 1719 67

Auto 0 0

Aviation 49 49

Cement 27 27

Chemical 60 58 11

Distillery 33 35

Engineering 231 229 3

Food Processing 42 44 13

Infrastructure 415 363

Iron & Steel 338 371 11

Paper 47 55 20

Pharmaceutical 25 7 2

Rubber 91 95

Sugar 188 153

Tea 44 47

Textiles 191 188 6

6 Trading 89 80 36

7 Others 263 254 2

Total 3420 3242 169

Productivity

Sustained business growth enhanced productivity

Rs. in crores

66.05

77.62 79.16

7.38

8.45 8.83

10

20

30

40

50

60

70

80

Jun'09 Mar'10 Jun'10

12345678910Business per Branch

Business per Employee

Consistent Growth all the way

Rs. crore

178493

144415

101458121929

184039

2549

1901

1480

1100

0

25000

50000

75000

100000

125000

150000

175000

200000

Mar'07 Mar'08 Mar'09 Mar'10 Jun'10

0

400

800

1200

1600

2000

2400

2800Total Business

Operating Profit

Shareholding Pattern

55.23%

5.10%

14.13%

13.89%11.65%

GoIIndian FIIs/MFsFIIsRes. IndiansOthers

In per centAs on 30.06.2010

New Initiatives

Technology Instant ATM-cum-Debit Card Facility, Hassle –free Internet Banking & SMS Banking, NEFT/RTGS implemented in all CBS branches, OLTAS implemented in all CBS branches, Payment of Taxes through Net Banking, Bank being Self Certified Syndicate Bank with SEBI started

providing facility under ASBA (Application Supported by Blocked Amount) Phase II for IPO

Tie-up with M/S UAE Exchange & Financial Services Ltd. for Inward Money Transfer System through Xpress Money & MoneyGram Channels,

Corporate Social Responsibility Two more RSETIs opened at Dumka (Jharkhand) & Banda

(UP), Launching of “Financial Literacy and Credit Counselling

Centre (FLCC)”

New Initiatives

Structural 27 Centralised Retail Banking Boutiques & 75 Retail

Banking boutiques operationalised to boost Retail Credit, 100 Nodal/Point of Sale Branches designated for Sale of

Gold Coin Business,

Business Lines New Scheme for financing Doctors/Medical Practitioners

clinic/nursing homes etc New Housing Schemes for NRIs/POIs & High Networth

Individuals Structured Products for Rice Shelling Units, Construction

Contractors, AllBank Liquid Scheme for Artiyas etc., Online application of Retail Loans through Internet at 27

centres introduced, Tie-Up Arrangements with M/S Rasandik Engineering

Industrial India Ltd. finalised for financing three-wheelers Thrust on Bancassuarance,CMS&LoanSyndication

continue

Looking Ahead

Business Projection for March 2011 -

Business Rs.2,20,000 crore

Deposit Rs.1,30,000 crore

Advances Rs. 90,000 crore

December 2010 Rs.2,00,000 crore

Thank You