IndusInd Bank Ltd. · NSE:INDUSINDBK
IndusInd Bank — Q3 FY2022 Earnings Presentation
57 slides from IndusInd Bank's earnings presentation, January 2022
Slide 1: Investor Presentation Q3-FY22
Investor Presentation Q3-FY22 | January 2022
Slide 2: IndusInd Bank at a Glance
IndusInd Bank at a Glance 5th Largest Private Bank ₹2,28,583 cr ₹ 2,84,484 cr 31 mn 5,706 with Disproportionately Loans Deposits Customers Branches/Outlets Large Distribution Network Diversified Across Products and Geographies Across Segments PAN India Network Universal Banking Approach 54:46 Loan M
Slide 3: Key Financial Highlights for Q3 FY22
Key Financial Highlights for Q3 FY22 Loans Deposits CASA Term Deposits Total Assets Balance ₹2,28,583 crores ₹2,84,484 crores ₹1,19,894 crores ₹1,64,590 crores ₹3,90,564 crores Sheet 10% YoY 4% QoQ 19% YoY 3% QoQ 24% YoY 3% QoQ 16% YoY 3% QoQ 14% YoY 3% QoQ Net Interest Income Total Fee Income Reven
Slide 4: Balance Sheet
Balance Sheet ₹In Crore Q3FY22 Q3FY21 Y-o-Y (%) Q2FY22 Q-o-Q (%) Capital & Liabilities Capital 775 757 2% 774 - - Reserves and Surplus 45,830 39,774 15% 44,552 3% Deposits 2,84,484 2,39,135 19% 275,288 3% Borrowings 45,669 48,622 (6%) 46,295 (1%) Other Liabilities and Provisions 13,806
Slide 5: Profit and Loss Account – Q3 FY22
Profit and Loss Account – Q3 FY22 ₹In Crore Q3FY22 Q3FY21 Y-o-Y (%) Q2FY22 Q-o-Q (%) Net Interest Income 3,793 3,406 11% ▲ 3,658 4% ▲ Other Income 1,877 1,646 14% ▲ 1,838 2% ▲ Total Income 5,670 5,052 12% ▲ 5,496 3% ▲ Operating Expenses 2,358 2,088 13% ▲ 2,277 4% ▲ Operating Profit 3,312 2,964 12% ▲
Slide 6: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 7: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 8: Well Diversified Loan Book across Consumer and Corporate Products
Well Diversified Loan Book across Consumer and Corporate Products Loan Book Mix (₹Crs) 206,783 212,595 210,727 220,808 228,583 (₹Crs) 44% 43% 44% 45% 46% Consumer Banking Dec-21 % Vehicle Finance 60,608 27% 56% 57% 56% 55% 54% Commercial Vehicle 22,618 10% Utility Vehicle 5,697 2% Small CV 3,035 1%
Slide 9: Vehicle Finance: Granular Portfolio Across Vehicle Categories
Vehicle Finance: Granular Portfolio Across Vehicle Categories Overview of Vehicle Finance Division Diversified Vehicle Loan Book across Vehicle Categories (%) Utility Vehicle Two Wheelers 9% 8% Market Leader CV 35+ Years of Vintage Focus on Business in Most Products 37% Across Credit Cycles Owner Se
Slide 10: Microfinance: Bridging the Financial Inclusion Gap
Microfinance: Bridging the Financial Inclusion Gap Micro Finance Loan Book (₹Crore) 25,944 28,115 27,443 26,007 22,891 2nd Largest 9mn 1.29 Lacs Villages Micro Finance Women Customers covered across 21 Lender States Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Average Ticket Size (₹) 28,182 28,065 28,102
Slide 11: Corporate Portfolio – Focus on Granular, Higher Rated Customers
Corporate Portfolio – Focus on Granular, Higher Rated Customers Corporate Loan Book (₹Crore) Improving Risk Profile * 1,05,481 BB+ & Below BBB-, BBB, BBB+ A-, A, A+ AA-, AA, AA+ AAA 99,079 88,482 91,018 92,407 19% 25% 26% 28% 15% 15% 19% 19% 29% 27% 27% 25% 31% 26% 23% 23% 6% 6% 5% 5% Stressed telco
Slide 12: Non-Vehicle Retail Loans – Risk Calibrated Growth Strategy
Non-Vehicle Retail Loans – Risk Calibrated Growth Strategy Business Banking (₹Crore) Loan Against Property (₹Crore) 11,575 11,772 9,362 11,223 11,031 11,314 9,003 8,761 8,788 8,664 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Credit Cards (₹Crore) Business Loan, Personal Loa
Slide 13: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 14: Deposit Growth Driven by Granular Retail Deposits; Building Stable Low-Cost Deposit Book
Deposit Growth Driven by Granular Retail Deposits; Building Stable Low-Cost Deposit Book Deposits (₹Crore) Retail Deposits as per LCR (₹Crore)* Retail Deposits Share of Retail Deposits (%) 41% 40% 40% 2,84,484 32% YoY 2,67,233 2,75,288 19% YoY 37% 2,55,870 36% 2,39,135 3% QoQ 2% QoQ 85,914 9
Slide 15: Healthy Share of CASA; Strong Liquidity Profile
Healthy Share of CASA; Strong Liquidity Profile CASA (₹Crore) CA (₹Crore) CASA Share of CASA % CA Share of CA % 42% 42% 14% 14% 42% 42% 12% 12% 12% 40% 1,19,894 1,12,349 1,15,863 35,725 1,06,791 32,313 32,421 32,587 33,279 3% YoY 96,646 24% YoY 2% QoQ 3% QoQ Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q
Slide 16: Borrowings Constituted by Long Term Sources
Borrowings Constituted by Long Term Sources Borrowings (₹Crore) Borrowings Mix (%) Borrowings (₹Cr) % of Total Liabilities TIER-II BONDS Infrastructure 6% Long-Term FCY Bonds Borrowings 4% Short-Term FCY 17% Borrowings (12 14% 14% 13% months) 12% 12% 3% 51,323 48,622 49,294 46,295 45,669 Euro Medium
Slide 17: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 18: Strong Product Groups with Efficient Capital Deployment
Strong Product Groups with Efficient Capital Deployment LC-BG Mix Low RWA Consumption (₹Crore) One of the largest LC - Usance treasuries in Indian banks 19% Notional Amount Risk Weighted Assets with best-in-class risk 7,60,248 Financial management systems LC - Sight Guarantees 11% 36% 0.5%# Robu
Slide 19: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 20: Yield / Cost Movement
Yield / Cost Movement Yield on Assets Yield on Advances 11.36% 11.66% Cost of Deposits Cost of Funds 8.36% 8.44% 4.66% 4.85% 4.37% 4.26% •Yield on Assets/Cost of funds are based on Total Assets/Liabilities Q3FY22 Q2FY22 Segment-wise Yield: Q3FY22 Q2FY22 Outstanding (₹Crs) Yield (%) Outstanding (₹Crs
Slide 21: Diversified and Granular Fee and Other Income Streams
Diversified and Granular Fee and Other Income Streams ₹In Crore Q3FY22 Q3FY21 Y-o-Y(%) Q2FY22 Q-o-Q(%) Trade and Remittances 188 183 3% 200 (6%) Foreign Exchange Income 228 268 (15%) 221 3% Distribution Fees (Third Party Products) 388 370 5% 360 8% General Banking Fees* 239 188 27% 234
Slide 22: Operating Profit Margins Amongst the Highest in Industry
Operating Profit Margins Amongst the Highest in Industry Net Interest Margin (%) Total Fee to Asset Ratio (%) 4.12% 4.13% 4.06% 4.07% 4.10% 2.0% 2.1% 2.0% 2.0% 2.0% Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Operating Profit Margin (%) Cost to Income Ratio (%) 41
Slide 23: Key Financial Indicators
Key Financial Indicators Return on Assets (%) Return on Equity (%) 10.88% 1.29% 1.35% 10.28% 1.17% 9.30% 1.09% 8.35% 8.88% 1.05% Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Earning Per Share – Annualized (₹) Net Worth (₹ Crore) 41,508 42,243 42,751 43,833 64.1 38,
Slide 24: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 25: Movement in Non-Performing Assets
Movement in Non-Performing Assets Q3FY22 Q2FY22 ₹In Crore Corporate Consumer Total Corporate Consumer Total Opening Balance 2,522 3,723 6,245 2,767 3,418 6,186 Fresh Additions 56 2,542 2,598 252 2,406 2,658 Deductions 314 2,750 3,064 497 2,101 2,598 -Write-offs 194 1,468 1,662 10 423 433 -Upgrades 2
Slide 26: NPA Composition – Consumer Banking
NPA Composition – Consumer Banking (₹Crs) Q3 FY22 CV Utility CE Small CV TW Cars Tractor BBG/LAP HL/PL/Others Cards MFI Total Gross NPA 542 42 124 111 449 84 108 685 211 246 914 3,516 Gross NPA % 2.38% 0.74% 1.43% 3.61% 9.28% 1.01% 1.40% 3.43% 2.16% 4.58% 3.21% 2.79% Q2 FY22 CV Utility CE Small CV T
Slide 27: Loan Related Provisions held as on December 31, 2021
Loan Related Provisions held as on December 31, 2021 Specific provision of ₹ 3,441 Crs (towards PCR) Floating provisions of ₹ 70 Crs other than related to COVID-19 (towards PCR) Counter-cyclical provision of ₹ 635 Crs (towards PCR) Standard contingent provisions of ₹ 3,328 Crs surplus outsid
Slide 28: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 29: Healthy Capital Adequacy
Healthy Capital Adequacy CET1 Ratio (%) 15.55% 15.59% Capital Adequacy 15.42% 15.13% 14.30% ₹In Crore 31 Dec 21 30 Sep 21 Credit Risk, CVA and UFCE 2,38,296 233,184 Market Risk 9,670 9,286 Operational Risk 33,120 33,120 Total Risk Weighted Assets 2,81,086 275,590 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 C
Slide 30: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 31: Shareholding Pattern and Credit Ratings
Shareholding Pattern and Credit Ratings Diversified Shareholding Credit Ratings Domestic Rating: CRISIL AA + for Infrastructure Bonds program/Tier 2 Bonds GDR issue 18.56% Promoters CRISIL AA for Additional Tier 1 Bonds program 15.17% CRISIL A1+ for certificate of deposit program / short term
Slide 32: Disproportionately Large Distribution Network with Unparalleled Rural Presence
Disproportionately Large Distribution Network with Unparalleled Rural Presence Distribution Network with Deep Rural Presence Strengthening Distribution Infrastructure Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, Particulars 2020 2021 2021 2021 2021 ~31 mn ~1,29,000 Branches/Banking Outlets 1,915 2,015 2,
Slide 33: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 34: Digital Strategy to drive main objectives across business lines
Digital Strategy to drive 3 main objectives across business lines 1 • Human Centered Design Principles • Best of Breed Capabilities in financial management including beyond banking Build Enriched Digital services – Own as well as through ecosystem providers to enhance Client Value Proposition Stacks
Slide 35: Comprehensive stack of platforms across Individual and MSME clients
We have built a comprehensive stack of platforms across Individual and MSME clients Savings Fixed Deposit Investments Retail Forex Personal Loans Credit Cards Account • DIY / Assisted • DIY / Assisted • DIY / Assisted • Buy Forex • Video KYC • Video KYC • DIY / Assisted Enabled e2e Enabled e2e • Par
Slide 36: Digital Sourcing % continues to grow and digital unassisted business models gaining momentum
Digital Sourcing % continues to grow and digital unassisted business models gaining momentum Savings Fixed Deposits Credit Cards Personal Loans 98% 96% 60% 60% 50% 50% 97% 94% 40% 40% 96% 92% 30% 30% 95% 54% 50% 97% 20% 20% 37% 90% 38% 95% 91% 10% 10% 95% 94% 88% 0% 0% Q3 FY 21 Q3 FY 22 Q3 FY 21 Q3
Slide 37: IndusMobile: All In One Mobile app
IndusMobile: All In One Mobile app with complete customer lifecycle management 37
Slide 38: Whatsapp Banking: Comprehensive stack of 40+ services
Whatsapp Banking: Comprehensive stack of 40+ services on whatsapp with 3.6 mn clients Whatapp Banking: Offer 40+ services for clients across Registered Base of 3.6 Mn - up 82% YoY segments 4.0 million During the quarter added services such as account statement 3.5 download and credit card services o
Slide 39: 92% of bank's transactions are digital and 71% of service requests processed digitally
Consequently, 92% of bank’s transactions are digital and 71% of service requests processed digitally ~71% of Bank’s service requests processed ~92% of Bank’s transactions are digital straight through digitally via channels as self service 92.5% 92% 92.0% 91.5% 91.0% 90.5% 90.0% 89.5% 89% 89.0% 88.5%
Slide 40: Indus Easy Credit for Individuals
Indus Easy Credit for Individuals enabling digitization of Cards & PL with gains in efficiency and turnaround time % of digital sourcing Credit Cards Personal Loans 60% 60% Now Live Across 40% 40% Do It Yourself: 200,000 54% 50% 20% 38% 20% 37% enquiries per month on the (Do It Yourself)/ Self Servi
Slide 41: Launched Indus Merchant Solutions
Launched Indus Merchant Solutions: Gaining traction with both existing clients as well as new to bank clients in the segment Installed base of 8750+ users within a few days of launch 8751 All your banking needs in one App Payments. Banking. Loans. Q3'22 Installed Base 60% of users New to Bank indica
Slide 42: Indus easycredit for Businesses - Small Ticket Business Term Loan
Launched 2 products under “Indus easycredit for Businesses” - Small Ticket Business Term Loan Building the “Digital SME Stack” by leveraging Small Ticket Business Term Loans microservices based APIs Digital loans of upto 20 lacs in < 15 mins Small unsecured 100% digital origination for self-empl
Slide 43: Indus easycredit for Businesses - GST based Overdraft facility
Launched 2 products under “Indus easycredit for Businesses” - GST based Overdraft facility Building the “Digital SME Stack” by leveraging microservices based APIs GST based Overdraft facility Fully digital and paperless GST-based OD loans Small unsecured Overdraft facility upto 2 Cr application
Slide 44: Collaborating with ecosystem players
Collaborating with ecosystem players to generate business and to create enriched customer value propositions: Live with 260 partners and several more underway IndusInd API Stack (400+ APIs on API Gateway) Customer Onboarding – eKYC, VKYC, FD Booking • Personal Loans • POS, QR, payment • Credit Cards
Slide 45: Creating future ready tech stacks and platforms
Creating future ready tech stacks and platforms – building cloud native, micro-services based API-led stacks Key Principles Chatbots Web Mobile Call Center RM Branch Partnerships Omni-Channel Client facing applications • Self / Assisted Advanced Analytics & Machine Learning • Mobile / Web / API Mana
Slide 46: Awards & Recognition
Awards & Recognition Easycredit recognized as the “Best New Product Launch of the Year – Loans” by the Digital Banker at the Global Retail Banking Innovation Awards 46
Slide 47: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 48: Our Strategic Elements of Sustainability and ESG
Our Strategic Elements of Sustainability and ESG Human Capital Development GOVERNANCE RESPONSIBLE Direct Links to Key Sustainability Policies Framework to oversee BANKING implementation of Environmental & Social Workplace Health & Safety Policy Responsible sustainable strategies, Governance Bankin
Slide 49: Key ESG Performance Highlights For FY21
Key ESG Performance Highlights For FY21 12 Years of Reporting ~46% 8.83 Million Bank's GHG Emissions Intensity per The Bank’s carbon footprint on Sustainability of Total Lending ESG Beneficiaries Through Unit Revenue has decreased by per full-time employee (FTE) Initiatives Focused Micro Finance 22.
Slide 50: A Few Achievements
A Few Achievements Dow Jones Sustainability Index Integrated Reporting Only Indian bank and one of the 55 banks 3rd Year of Integrated Reporting globally to be included in DJSI's 'The External assurance of Integrated Report Sustainability Yearbook 2021' 12 Years of Sustainability Reporting
Slide 51: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Heathy Disproportionately Executing Digital ESG Experienced Cap
Slide 52: Board of Directors with Varied Expertise
Board of Directors with Varied Expertise Name Nature of Directorship Special Knowledge /Expertise Prior Experience Non-Executive, Non- Banking, Finance, Human Previously, CMD of Union Bank of India, Executive Director of Mr. Arun Tiwari Independent, Part-time Resource, Risk Management Allahabad Bank
Slide 53: Experienced and Well-knit Management Team
Experienced and Well-knit Management Team Name Designation Exp (Yrs) Prior Experience Career banker with years of rich experience in large multi-national banks such as Citibank, Bank of Mr. Sumant Kathpalia Managing Director & CEO 30+ America and ABN AMRO Mr. Arun Khurana Deputy CEO 28+ Regional Hea
Slide 54: Accolades
Accolades VMware Customer Excellence Finacle Innovation Awards 2021 (Nov 21) Award for Improved Customer Experience (Oct 21) IndusInd Bank was the winner in the following • IndusInd Bank is awarded with categories the Global VMware Customer a. COVID Response Innovation (for the initiative Excellence
Slide 55: Product Launch: Club Vistara IndusInd Bank Explorer Credit Card
Product Launch Club Vistara IndusInd Bank Explorer Credit Card The card was launched on 27th September 2021 with a Press Ad in Times of India and Economic Times Key privileges include: Up to 5 Complimentary Business Class Ticket Vouchers* on milestone spends every year Up to 8 Club Vistara point
Slide 56: Thank You
THANK YOU IndusInd Bank
Slide 57: 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