IndusInd Bank Ltd. · NSE:INDUSINDBK
IndusInd Bank — Q4 FY2015 Earnings Presentation
42 slides from IndusInd Bank's earnings presentation, Apr 16, 2015
Slide 1: Investor Presentation
Investor Presentation April 16, 2015
Slide 2: Q4 – FY15 Performance Highlights
Key performance vectors remained stable Q-o-Q PAT growth ramps up to 11 per cent Q4 – FY15 Performance Highlights Non-Interest Income to revenue remains healthy at 42% with Core Fee growth at 29% NIM slightly higher at 3.68% sequentially Credit growth above industry - 25% Y-o-Y and 8% Q-o-
Slide 3: Plan vs Outcome
Plan vs Outcome Planning Cycle 3 (2014–17) Q4-FY 15 Outcome Loan Growth 25% - 30% 25% CASA Growth CASA > 35% 34% Resulting in Fee Growth 26% Exceed Loan Growth 29% Core Fee Growth Branch Network To Double from 602 801 Customer Base To Double On track 3
Slide 4: Planning Cycle 3: Key New Initiatives
Planning Cycle 3:Key New Initiatives Targeting “S” of Tractor Financing Retail Trade / FX SME Retail Retail Assets Assets Ramp Innovative Real Estate Ramp Up Up Customer Offerings Asset Front and Back Full suite of Rural Reconstruction Office optimization Products 4
Slide 5: How We Measure Up On Key Metrics
How We Measure Up On Key Metrics Net Interest Margin (NIM) RoA RoE* 1.81% 1.90% 19.23% 3.71% 3.65% 1.57% 1.63% 18.45% 18.59% 17.48% 3.43% 3.33% FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 *on average equity Cost/Income Net NPA Revenue/Employee (Rs Lacs) 49.45% 48.84% 0.31% 0.33% 0.31
Slide 6: How We Measure Up On Key Metrics
How We Measure Up On Key Metrics Net Interest Margin (NIM) RoA RoE* 3.75% 3.66% 1.91% 1.92% 1.88% 1.90% 1.91% 3.63% 3.67% 3.68% 19.79% 18.52% 18.99% 18.24% 18.31% Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 *on average equity Cost /Income
Slide 7: Ratings
Ratings ICRA AA+ for Lower Tier II subordinate debt program by ICRA ICRA AA for Upper Tier II bond program by ICRA CRISIL A1+ for certificate of deposit program by CRISIL CARE AA+ for Lower Tier II subordinate debt program by CARE IND A1+ for Short Term Debt Instruments by India Ratings an
Slide 8: Financial Performance
Financial Performance 8 IndusiInd Bank
Slide 9: Steady Headline Numbers for Q4-FY15
Steady Headline Numbers for Q4-FY15 Y-o-Y Growth Q-o-Q Growth Net Interest Rs 925 crs 18% 7% Income Other Income Rs 658 crs 26% 8% Core Fee Income Rs 569 crs 29% 9% Revenue Rs 1,584 crs 21% 8% Operating Profit Rs 851 crs 18% 10% Net Profit Rs 495 crs 25% 11% 9
Slide 10: Steady Headline Numbers for FY15
Steady Headline Numbers for FY15 Y-o-Y Growth Net Interest Rs 3,420 crs 18% Income Other Income Rs 2,404 crs 27% Core Fee Income Rs 2,087 crs 30% Revenue Rs 5,824 crs 22% Operating Profit Rs 3,098 crs 19% Net Profit Rs 1,794 crs 27% 10
Slide 11: Top line momentum
Top line momentum Y-o-Y Growth Q-o-Q Growth Advances Rs 68,788 crs 25% 8% Corporate Rs 40,376 crs 33% 10% Advances Consumer Finance Rs 28,412 crs 15% 5% Advances Deposits Rs 74,134 crs 23% 7% CASA Rs 25,300 crs 28% 7% SA Rs 12,944 crs 31% 6% Borrowings Rs 20,618 crs 40% 23% 11
Slide 12: Balance Sheet
Balance Sheet (Rs Crs) Q4FY15 Q4FY14 Y-o-Y (%) Q3FY15 Q-o-Q (%) Capital & Liabilities Capital 530 526 1% 529 - Reserves and Surplus 10,115 8,517 19% 9,861 3% Deposits 74,134 60,502 23% 69,376 7% Borrowings 20,618 14,762 40% 16,752 23% Other Liabilities and Provisions 3,719 2,719 37%
Slide 13: Profit and Loss Account
Profit and Loss Account (Rs Crs) Q4FY15 Q4FY14 Y-o-Y (%) Q3FY15 Q-o-Q (%) Net Interest Income 925.14 781.21 18% 861.37 7% Other Income 658.48 522.92 26% 610.75 8% Total Income 1,583.62 1,304.13 21% 1,472.12 8% Operating Expenses 733.11 585.05 25% 698.28 5% Operating Profit 850.51 719
Slide 14: Profit and Loss Account (FY 2014-15)
Profit and Loss Account (FY 2014-15) (Rs Crs) 2014-15 2013-14 Y-o-Y (%) Net Interest Income 3,420.28 2,890.71 18% Other Income 2,403.87 1,890.53 27% Total Income 5,824.15 4,781.24 22% Operating Expenses 2,725.93 2,185.28 25% Operating Profit 3,098.22 2,595.96 19% Provisions & Contingencies
Slide 15: Key Financial Indicators
Key Financial Indicators Q4FY15 Q4FY14 Q3FY15 Return on Assets 1.91% 1.91% 1.90% ROE (On average equity) 19.79% 18.52% 18.31% Cost / Income Ratio 46.29% 44.86% 47.43% Net Interest Margin 3.68% 3.75% 3.67% Net NPA 0.31% 0.33% 0.32% EPS (annualized, Rs. per share) 37.44 30.16 33.84 Capital + Reserves
Slide 16: Well Diversified Loan Book
Well Diversified Loan Book Loan Book (Rs crs) 63,847 68,788 55,102 44,321 59% 35,064 57% 55% 51% 56% 45% 43% 41% 44% 49% FY12 FY13 FY14 Dec-14 Mar-15 Consumer Finance Division Corporate & Commercial Banking (Rs crs) (Rs crs) Corporate Consumer Finance Mar-15 Mar-15 Utility Vehicle Banking* Small Loa
Slide 17: Diversified Corporate Loan Book
Diversified Corporate Loan Book Lease Rental 3.92% Real Estate 2.41% Gems and Jewellery 2.39% NBFCs (other than HFCs ) /NBFC-MFI 2.25% Telecom- Cellular 2.02% Services 2.02% Power Generation 1.86% Media,Entertainment & Advt 1.83% Housing Finance Companies 1.72% Food Beverages and Food processing 1.6
Slide 18: Well Rated Corporate Portfolio
Well Rated Corporate Portfolio 24% P E 22% R C E 20% N T 18% Investment Grade Sub Investment Grade O 16% F R 14% Unsecured Non Fund Based % A Secured Non Fund Based % T 12% Unsecured Fund Based % E D Secured Fund Based % 10% P O 8% R T 6% F O 4% L I O 2% 0% IB1 IB2+ IB2 IB2- IB3+ IB3 IB3- IB4+ IB4 I
Slide 19: Improving CASA profile
Improving CASA profile Building CASA traction CASA Uptick Expanding branch network 30,000 33.9% 34.1% 34.1% 38% 32.6% 33.3% 32.2% Focus on target market segments 25,000 33% Government business 20,000 25,300 27% 15,000 21,305 22,363 23,634 Capital market flows 18,092 19,691 21% 10,000 Key N
Slide 20: Other Income
Other Income (Rs crs) Q4FY15 Q4FY14 Y-o-Y (%) Q3FY15 Q-o-Q(%) Core Fee 568.57 441.87 29% 522.27 9% Securities/MM/FX 89.91 81.05 11% 88.48 2% Trading/Others Total 658.48 522.92 26% 610.75 8% 20
Slide 21: Diverse Revenues from Core Fee Income
Diverse Revenues from Core Fee Income (Rs crs) Q4FY15 Q4FY14 Y-o-Y(%) Q3FY15 Q-o-Q(%) Trade and Remittances 79.80 60.05 33% 62.35 28% Foreign Exchange Income 110.20 109.09 1% 168.78 (34%) Distribution Fees 127.37 77.45 64% 97.95 30% (Insurance, MF, Cards) General Banking Fees 45.04 37.66
Slide 22: Yield / Cost Movement
Yield / Cost Movement 12.77% 13.01% 10.13% 10.30% Yield on Assets 7.68% 7.80% Yield on Advances 6.45% 6.63% Cost of Deposits Cost of Funds Q4FY15 Q3FY15 •Yield on Assets/Cost of funds are based on Total Assets/Liabilities Segment-wise Yield Q4FY15 Q3FY15 Outstanding Yield Outstanding Yield (Rs crs)
Slide 23: Credit Cost
Credit Cost (Rs crs) FY12 FY13 FY14 FY15 Q3FY15 Q4FY15 Corporate Bank 61.11 116.51 93.70 143.74 48.91 40.22 Consumer Finance 81.46 103.10 169.97 195.19 56.77 47.15 Gross Credit Costs 142.57 219.61 263.67 338.93 105.68 87.37 Gross Credit Costs 41 50 48 49 17 13 (Basis Points on Advances) Net Credit C
Slide 24: Loan Portfolio - Movement in NPA and Restructured Advances
Loan Portfolio - Movement in NPA and Restructured Advances (Rs crs) Q4FY15 Q3FY15 Corporate Consumer Total Corporate Consumer Total Opening Balance 340 333 673 337 318 655 Additions 316 133 449 21 140 161 Deductions *422 137 559 18 125 143 Gross NPA 234 329 563 340 333 673 Net NPA 210 202 % of Gross
Slide 25: NPA Composition – Consumer Finance - Vehicles
NPA Composition – Consumer Finance - Vehicles (Rs crs) Com. Const. Small LAP/HL Q4-FY15 Utility TW Cars Cards Total Vehicle Equip. CV /PL Gross NPA 135 22 41 17 72 18 15 9 329 Gross NPA % 1.27% 1.08% 1.44% 0.92% 2.53% 0.56% 0.33% 1.24% 1.15% Com. Const. Small LAP/HL Q3-FY15 Utility TW Cars Cards Tot
Slide 26: CRAR
CRAR (Rs Crs) 31 March 15 31 Dec 14 Basel – III Basel – III Risk Weighted Assets - Credit Risk 76,718 74,764 - Market Risk 4,356 3,798 - Operational Risk 7,855 6,131 - Total RWA 88,929 84,693 Tier I Capital Funds 9,975 9,746 Tier II Capital Funds 776 750 Total Capital Funds 10,751 10,496 CRAR 12.09%
Slide 27: Distribution Expansion to Drive Growth
Distribution Expansion to Drive Growth Strengthening Distribution Infrastructure June 30, Sept 30, Dec 31, Mar 31, Particulars 2014 2014 2014 2015 Branch 638 685 727 801* Network ATMs 1,238 1,277 1,350 1,487 *includes 58 specialized branches Note: Numbers given above are total branches in each state
Slide 28: Shareholding Pattern
Shareholding Pattern March 31, 2015 GDR issue, 12.22% Promoters, 15.09% NRIs/ Director/ Others, 4.79% MFs / Banks/ Insurance Co, 9.00% Individuals, 6.98 % Private Corporates, 12.21% FIIs, 39.71% 28
Slide 29: Accolades
Accolades wy IndusiInd Bank
Slide 30: Accolades
Accolades Mr. Romesh Sobti, Managing Director & CEO was adjudged as the “Banker of the Year” by Business Standard 30
Slide 31: Accolades
Accolades IndusInd Bank was awarded Best Mid-size Bank and Fastest Growing Mid- size Bank at BW BUSINESSWORLD – Magna Awards 2015 31
Slide 32: Accolades
Accolades Winner: Excellence in Service Innovation Highly Commended award: Excellence in Communication and Client On-boarding Overall Excellence in category of ‘Best Bank financing the Industry Highest Growth of limits sanctioned’ at India Gems and Jewellery Awards 2013-14 32
Slide 33: Accolades
Accolades Best Payment Initiatives award (2nd Runner up) at Banking Technology Awards 2015 by Indian Banks’ Association(IBA) Best Branchless Banking Award at BFSI Leadership Summit & Awards 2015 33
Slide 34: Accolades
Accolades Project ‘IndusInd Bank Partnership Program' declared as Winner for Financial Inclusion and Payment Systems (FIPS) Awards 2014. IndusInd Bank was awarded the “Top Performer” in Active Accounts (Rising DPs) by National Securities Depository Limited (NSDL) 34
Slide 35: Accolades
\ IndusInd Bank has been ranked 19th in the Top 50 Most Valuable Indian Brand 2014 as per the BrandZ Top 50 Ranking powered by WPP Plc and Millward Brown \ IndusInd Bank has been ranked 39th in the Best Indian Brands 2014 as per the Economic Times and Interbrand Best Indian Brand Study 8 IndusiInd B
Slide 36: Accolades
ACI Universal Payment ACI \ Excellence Award 2014 - Operational Excellence. The award is for Bank’s ATM features namely Cash on Mobile, PIN reset on IVR and Stop cheque on ATMs \ Talisma Insight “Excellence in Innovation” award for the implementation of “Always On” technology from Microsoft that hel
Slide 37: Accolades
Accolades \ “Best Bank Award for Managing IT Risk” among the small banks category (classification based on business as on 31st March 2013) by the Institute for Development and Research in Banking Technology IDRBT. The Bank has been awarded as Winner for Excellent Performance in National Automated Cl
Slide 38: CSR Accolades
CSR Accolades \ Special Commendation at Golden Peacock Award for Sustainability 2014, London \ Best CSR excellence in category protecting the environment by CSR Awards-We Care - Amity Chandigarh 8 IndusiInd Bank
Slide 39: CSR Accolades
CSR Accolades Top CSR Advocates in Asia at Asia Corporate Excellence & Sustainability Awards 2014, Singapore \ Best Rural Outreach Award at Asian Sustainability Leadership Awards 2014, Dubai 9 IndusiInd Bank
Slide 40: Accolades
Accolades Received award from Central Excise and Service Tax, Mumbai Zone for "Consistent Contribution to Nation Building” which was handed over by Hon. CM, Maharashtra 40
Slide 41: Thank you
Thank you a IndusiInd Bank
Slide 42: 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