IndusInd Bank Ltd. · NSE:INDUSINDBK
IndusInd Bank — Investor Day (December 2019)
26 slides from IndusInd Bank's investor day presentation, Dec 13, 2019
Slide 1: Exchange filing cover letter for Analyst Day presentation
lnduslnd Bank Decembcr 16,2019 lhe Asst. Vice President fhe Dcputy Gencral Manager Listing Departmcnt Corporatc Rclationship Dept. National Stock Ilxchange of India Ltd. BSI,I Ltd. Exchange Plaza, 51r' Floor l't Floor, New lrading Ring Plol No. Ci 1, G Block Rolunda lluilding, P. J. Towers Bandra--K
Slide 2: Consumer Bank Analyst Day Presentation
Consumer Bank Analyst Day Presentation December 13, 2019
Slide 3: Consumer bank manages a significant part of the Bank
Consumer bank manages a significant part of the Bank… CASA + Retail TD is 65% of Bank’s Non Vehicle Advances are 16% of Deposit Bank’s Advances Consumer Bank Branch Network is Consumer Fee is 49% of Bank’s 38% of Bank’s Network Fee Income Consumer Bank, 49% Vehicle Finance 18% Consume r Bank 38% BFI
Slide 4: …and is growing at a strong pace!
…and is growing at a strong pace ! Savings Accounts (Rs cr) Loans (Rs cr) Fees (Rs cr) CAGR 30% CAGR 26% CAGR 42% 32,096 719 58,117 16,173 324 20,487 Sep 16 Sep 19 Sep 16 Sep 19 Q2 FY 17 Q2 FY 20
Slide 5: Core Beliefs of Consumer Bank
Core Beliefs of Consumer Bank 1. Retailization of liabilities is critical going forward 2. Segmentation drives focus – client segmentation and geographical segmentation 3. The future is “phygital” – while “digital” will provide speed and convenience, “physical” still needed for certain products and
Slide 6: Consumer Liabilities
CONSUMER LIABILITIES a4 Indusind Bank
Slide 7: Retail TD Growing at ~5000 Cr per quarter and new clients added
Retail TD Growing at ~5000 Cr per quarter and # of new clients added scaled up to 1.2L per month Consumer Term Deposits have grown 24% in H1 # of new clients added per month scaled up from backed by strong growth in Retail Term Deposits 92K to 117K 140 Consumer Term Deposits 140000 # (Indexed) 120 2
Slide 8: Transaction volume growth stronger than peers; Retail Deposits per client at par
Transaction volume growth stronger than peers; Retail Deposits per client at par with peers; amongst top 3 in SA growth per branch Mobile and Card Transaction Value up YoY & At par with peers on Retail LCR Deposits per Client Growing faster than leading banks Rs lac per client as of Sep’19 YoY Growt
Slide 9: Way Forward: Retail Liability Growth central to growth agenda
Way Forward: Retail Liability Growth central to consumer bank’s growth agenda Acquisition run rate to scale up to 200,000 clients Number of clients to double over next 3 yrs per month # of new clients acquired / month # of clients (mn) 2X 12 2,00,000 1,20,000 5.5 FY 20 Est FY 21 Plan FY 20 Est FY 23
Slide 10: Key New Initiatives to fuel growth in Liabilities Business
Key New Initiatives to fuel growth in Liabilities Business Indexed Reln Value Indexed CASA To garner 3-5% share of 300 400 Affluent Banking the market 2.4X 300 3.1X 200 200 240 310 • Focus on top corridors 100 100 • End to end digital frictionless To garner 5% market 100 100 NRI Banking 0 0 journeys
Slide 11: Key new segments playing out in their contribution to business
As a result, we see key new segments playing out in their contribution to business Segment wise Share of incremental Segment Wise Current Share of deposits business Segment wise Share of deposits in 2-3 yrs Mass / Mass / Mass / Rural Affluent Rural Affluent Rural Affluent Others Others Others 4% 10%
Slide 12: Consumer Assets
CONSUMER ASSETS a4 Indusind Bank
Slide 13: Bank's overall portfolio
Consumer Non Vehicle assets well diversified; Unsecured assets at 4% of Bank’s overall portfolio Existing client portfolio contributes to Others, 6% 60% of PL, 45% of LAP, 50% of BBG and Agri, 5% 30% of cards BL,LACR, 4% Unsecured MicroFinan is 26% of Consumer PL, 9% ce non vehicle Non Vehicle portf
Slide 14: Non Vehicle Assets will double over next 3 years
Non Vehicle Assets will double over next 3 years Principles of Consumer Non Vehicle Scale-up Non Vehicle Assets (Indexed) 250 1. Unsecured Assets to be <=5% of Bank’s overall advances 2. Risk Cost <= 100-110 bps 200 2X 3. Drive Scale via cross-sell on Bank’s internal client base – 150 consumer bank’
Slide 15: Consumer Fee
CONSUMER FEE a4 Indusind Bank
Slide 16: Consumer Fee Well Diversified and set to grow at 24% CAGR
Consumer Fee Well Diversified and set to grow at 24% CAGR Identified segments of growth (NR, .. To Grow the Fee at a CAGR of 24% Consumer Fee Well Diversified SME/FX, Affluent) to grow at 38%… for next 3 years Others, 300 New Initiatives Fee (Indexed) Consumer Fee (Indexed) 4% 250 200 200 CAGR: 38%
Slide 17: Digitization
DIGITIZATION a4 Indusind Bank
Slide 18: Digitization core to driving key business objectives at Consumer Bank
Digitization core to driving key business objectives at Consumer Bank D C Drive Scale with Employee Partnerships/ Enablement Alliances E B Drive Business Risk Efficiency Management F A Enhance client Drive client Digitization experience engagement
Slide 19: Digitize to Drive Client Experience
A Digitize to Drive Client Experience: Responsive innovations backed by digitization have been core to consumer strategy Most of the innovations have high degree of salience – 11/16 innovations surveyed with competition bank clients had the potential to induce a switch for more than 50% of responden
Slide 20: Digitize to Drive Business Efficiency
B Digitize to Drive Business Efficiency: Digitization has played a key role in growing core businesses and driving efficiency Completely digital, paperless journeys enabled across .. As a result, almost all of deposits & investments and key retail businesses .. half of forex & unsecured lending busi
Slide 21: Digitize to Drive Partnerships
C Digitize to Drive Partnerships: Partnerships and alliances will play a critical role in driving scale across businesses To Acquire 1 mn liability clients / year and originate 20-25% of Business in Individual and SME Objective Lending Integration with marketplaces & lead • “Referral + Real Time Dec
Slide 22: Digitize to Drive Employee Enablement
D Digitize to Drive Employee Enablement: Enablement of frontline with right tools for review have led to productivity improvement of 15-20% TAB / Mobile Based Client Acquisition for Frontline Sales Team RM App for Relationship Management ~10,000 Staff pan Bank leverage 1000+ RMs on-boarded on the pl
Slide 23: Digitization for Risk Management
E Digitization for Risk Management: Leverage advanced data analytics to manage risk as well drive scale in businesses Distribution 20-30% lower risk cost in Inputs Decisioning Engine Channels individual unsecured lending 120 Fraud Repositories APIs for Partners 100 80 60 Decisioning Branch/RM 100 Bu
Slide 24: Digitize to Drive Client Engagement and Cross-Sell
F Digitize to Drive Client Engagement and Cross-Sell Using AI / ML to build & sustain transactions Mobile & Net Banking 35% Leverage deep learning & clustering to predict client registrations behavior and induce relevant behavior 30% Activate & Engage Mobile Txns / user 7 per month 5.3 Pre Post Self
Slide 25: Summing Up
Summing Up Double the number of clients Non vehicle Assets to Double # of clients (Mn) Non Vehicle Assets (Indexed) 15 250 200 10 150 12 100 200 5 5.5 50 100 0 0 FY 20 Est FY 23 Plan FY 20 Est FY 23 Plan Scale up to 3000 branches Drive scale in identified segments # of branches 7.0% 3500 6-7% 6.0% 3
Slide 26: Disclaimer
Disclaimer This presentation has been prepared by IndusInd Bank Limited (the “Bank”) solely for information purposes, without regard to any specific objectives, financial situations or informational needs of any particular person. All information contained has been prepared solely by the Bank. No in