IndusInd Bank Ltd. · NSE:INDUSINDBK
IndusInd Bank — FY2006-07 Earnings Presentation
24 slides from IndusInd Bank's earnings presentation, May 25, 2007
Slide 1: IndusInd Bank Analysts' Meet - FY 2006-07
IndusInd Bank Analysts’ Meet – FY 2006-07
Slide 2: Disclaimer
Disclaimer This presentation and subsequent discussions may contain forward-looking statements with respect to IBL’s financial condition, objectives and strategies. By their nature such forward-looking statements are based on current expectations of the IBL Management and involve numerous assumption
Slide 3: 2006-07 - An Overview
2006-07 – An Overview Net profit of Rs. 68 crores vis-à-vis Rs. 37 crores last year (increase of 84%) Healthy growth in business – balance sheet size crosses Rs. 20,000 crores Net worth now in excess of Rs. 1000 crores Capital Adequacy Ratio of 12.54% - up from 10.54% last year Branch network touche
Slide 4: Profit & Loss Statement
Profit & Loss Statement Q4 Q4 FY FY (Rs. in crores) FY 2006 FY 2007 2006 2007 Income Interest Income 315 426 1188 1500 Non-interest Income 36 57 189 244 Total Income 351 483 1377 1744 Expenditure Interest Expense 236 341 873 1229 Operating Expense 84 96 317 344 Total Expense 320 437 1190 1573 Operat
Slide 5: Balance Sheet
Balance Sheet (Rs. in crores) CAPITAL & LIABILITIES March 2006 March 2007 Capital 291 320 Reserves & Surplus 576 737 Deposits 15006 17645 Borrowings 535 592 Other Liabilities and Provisions 1215 1633 17623 20927 ASSETS March 2006 March 2007 Cash and Balance with RBI 604 1021 Balances with Banks and
Slide 6: Key Ratios and Parameters
Key Ratios and Parameters FY 2006 FY 2007 Net Worth (Rs. in crores) 866 1057 Capital Adequacy Ratio (%) 10.54 12.54 Proportion of CASA Deposits (%) 12.87 14.92 Cost of Deposits (%) 5.87 6.73 Yield on Advances (%) 9.44 9.76 Yield on Investments (%) 6.73 6.84 Net Interest Margin (%) 1.91 1.37 NIM (%)
Slide 7: The Business Numbers
The Business Numbers Business has continued to grow - total business (deposits plus advances) of Rs. 28,729 crores against Rs. 24,317 crores a year ago On a point-to-point basis, deposits have grown by 18 per cent and advances by 19 per cent Average business, a better indicator, also validates the g
Slide 8: Deposits
Deposits Low-cost deposits (CASA) has grown by Rs. 702 crores – from Rs. 1931 crores in March 2006 to Rs. 2633 crores in March 2007 The proportion of CASA deposits has moved up from 12.87 per cent to 14.92 per cent. We aim to raise this to 20 per cent by March 2008 There has also been significant br
Slide 9: Credit Portfolio
Credit Portfolio The Bank’s credit portfolio is undergoing a paradigm change, and is gravitating towards an optimum and high-earning business mix The factors that have helped in this include Æ Stoppage of asset securitisation and consequent retention of high- yielding vehicle loans in our books Æ St
Slide 10: Credit Portfolio
Credit Portfolio Overall, the yield on advances during 2006-07 was 9.76% p.a. against 9.44% p.a. last year The actual comparable figures are 9.76% p.a. and 8.97% p.a., if we leave out the exceptional item of additional revenue (Rs. 42 crores) that accrued last year through upfronting of securitisati
Slide 11: Net Interest Margin
Net Interest Margin Net interest margin (NIM) has dropped from 1.91 per cent (or 1.61 per cent, if we remove the beneficial effect of securitisation) last year to 1.37 per cent this year This is mainly because of the sizeable rise in cost of deposits, in line with the overall hardening interest rate
Slide 12: Non-interest Income
Non-interest Income Non-interest income has registered a healthy 29 per cent growth - from Rs. 189 crores to Rs. 244 crores The main growth drivers in this regard are Æ Retail initiatives like distribution of third-party products, sale of gold coins, debit cards, gift cards, depository income, etc.
Slide 13: Performance Highlights - VFD
Performance Highlights - VFD Outstanding credit level of Rs. 6405 crores as on March 31, 2007 against Rs. 3733 crores a year ago. These however are strictly not comparable, as last year’s level was low because of securitisation Commercial Vehicles make up 57 per cent of this portfolio Total disburse
Slide 14: Performance Highlights - Retail
Performance Highlights - Retail Retail deposits have grown by 48 per cent – up from Rs. 4045 crores to Rs. 6000 crores Even in a rising interest rate scenario, the cost of deposits (for retail) was actually brought down - from 5.12 per cent to 5.10 per cent. CASA component in retail deposits was 35
Slide 15: Performance Highlights - Wholesale
Performance Highlights - Wholesale Thrust on increasing fee-based income, by accelerating non-fund based business, forex business, etc. Non-fund based credit (comprising letters of credit and bank guarantees) grew by 54 per cent, from Rs. 2280 crores to Rs. 3521 crores Forex Merchant turnover up by
Slide 16: Recoveries and NPAs
Recoveries and NPAs Our Bank continued its recovery during the year of historical bad debts and written-off amounts, which contributed Rs. 97 crores to operating profit The Bank also sold Rs. 49 crores worth NPAs to an ARC, during this year The overall NPA level (and the gross and net NPA ratios) ha
Slide 17: Network
Network As of now the Bank has 170 branches and 99 off-site ATMs (spread over 141 locations in 24 States and Union Territories), as against 137 branches and 83 off-site ATMs a year ago In addition there are licences in hand for 10 more branches, and 84 more off-site ATMs The customer touch-points wi
Slide 18: Network
Network Existing Branch Network in India Analysts’ Meet – May 25, 2007 18
Slide 19: Capital
Capital The Bank took major strides during the year in enhancing its capital. These included Æ A maiden GDR issue of Rs. 147 crores (which also raised the paid- up capital by Rs. 30 crores) Æ Tier-II issue of Rs. 50 crores Æ Upper Tier-II issues (in two tranches) of Rs. 209 crores The Bank now has a
Slide 20: Major Initiatives
Major Initiatives The Bank took several major initiatives during the year. Among these are Æ Launch of new products and services like Mobile Banking, Visa Gold Debit card, Gift Card, On-line issuance of insurance policies, Sunday Banking, 8-to-8 banking, etc. Æ Tie-up with Aviva Life Insurance for b
Slide 21: Key Focus Areas During 2007-08
Key Focus Areas During 2007-08 Retail Banking, with clear and well-defined target markets Vehicle Finance, especially the higher-yielding segments, e.g., two/three-wheelers Credit Card Rural Banking NRI Banking Wealth Management – aimed at separate verticals of HNIs and the Mass Affluent SME Segment
Slide 22: Key Focus Areas During 2007-08
Key Focus Areas During 2007-08 International Banking Capital and Commodity Markets M&A Advisory Rapid scale-up of alternate distribution channels such as ATMs, Internet Banking, Contact Centre, Direct Sales Force (e.g., Business Facilitators and Business Correspondents), etc. Effective re-branding i
Slide 23: Shareholding Pattern
Shareholding Pattern (in %) Promoters 28.45 Foreign Institutional Investors (FIIs) 16.10 Domestic Institutions 3.15 Private Corporate Bodies 16.21 NRIs / Overseas Corporate Bodies 5.41 Indian Public and Others 21.46 Shares held by Custodians against DR 9.22 Total 100.00 (Figures as of March 31, 2007
Slide 24: Thank You
Indusind@ Bank