IndusInd Bank Ltd. · NSE:INDUSINDBK
IndusInd Bank — Q2 FY2019 Earnings Presentation
37 slides from IndusInd Bank's earnings presentation, Oct 16, 2018
Slide 1: IndusInd Bank exchange filing cover letter
Induslnd Bank October 16, 2018 I'he Asst. Vicc Itrcsident The Dcputy Gencral Managcr Listing Department Corporatc IlelationshiP DcPt. National Stock l)xchange of India Ltd. ItsB, Lrd. Exchange Plaza, 5th Floor 1't Floor, Ncw T'rading I{ing Plot No. C/l, G Illock l{otunda Building, P. J. l-owers Band
Slide 2: Investor Presentation Q2-2018-19
Investor Presentation Q2-2018-19 October 15, 2018
Slide 3: Q2 – FY19 Performance Highlights
FY 18-19 tracking towards PC4 targets Q2 – FY19 Performance Highlights Q2 FY19 marked by strong QoQ growth in headline numbers Core fee up by 20% YoY; 5% QoQ Cost well maintained; target efficiency ratio at 43.41% Credit growth (32% up) and Deposit growth (19% up) well above industry growt
Slide 4: Planning Cycle (2017-2020) - Plan vs Outcome
Planning Cycle 4 (2017-2020) - Plan vs Outcome Q2-FY19 Outcome Loan Growth 25% - 30% 32% CASA Ratio 40% 44% Revenue Exceed Balance Resulting in 17% Growth Sheet Growth RoRWA > 2.4% 1.96%* Branch 2,000 1,466 Network Customer Base Double to >20mn On track * Pre contingent provision 2.34% 3
Slide 5: How We Measure Up On Key Metrics
How We Measure Up On Key Metrics Net Interest Margin (NIM) RoA RoE# 1.90% 1.96% 1.86% 1.91% 1.89% * 17.63% 4.00% 3.99% 3.97% 3.92% 16.96% 17.25% 3.84% 16.48% 16.56% * Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 *pre contingent provision *p
Slide 6: Ratings
Ratings CRISIL AA + for Infra Bonds program CRISIL AA for Additional Tier I Bonds program CRISIL A1+ for certificate of deposit program IND AA+ for Senior bonds program by India Ratings and Research IND AA for Additional Tier I Bonds program by India Ratings and Research IND A1+ for Shor
Slide 7: Financial Performance
Financial Performance ° IndusiInd Bank
Slide 8: Steady Headline Numbers for Q2-FY19
Steady Headline Numbers for Q2-FY19 Y-o-Y Growth Q-o-Q Growth Net Interest 21% 4% Rs 2,203 crs Income Core Fee Income Rs 1,218 crs 20% 5% Revenue Rs 3,521 crs 17% 3% Operating Profit Rs 1,992 crs 22% 4% Net Profit Rs 920 crs 5% (11)% Core Profit Rs 1,034 crs 35% 9% 7
Slide 9: Top line momentum
Top line momentum Y-o-Y Growth Q-o-Q Growth Advances Rs 1,63,144 crs 32% 8% Corporate Rs 99,501 crs 35% 10% Advances Consumer Finance Rs 63,643 crs 29% 6% Advances Deposits Rs 1,68,219 crs 19% 6% CASA Rs 73,375 crs 23% 6% SA Rs 51,106 crs 27% 7% Borrowings Rs 42,828 crs 82% 16% 8
Slide 10: Balance Sheet
Balance Sheet (Rs Crs) * Q2FY19 Q2FY18 Y-o-Y (%) Q1FY19 Q-o-Q (%) Capital & Liabilities Capital 601 599 - 600 - Reserves and Surplus 24,763 21,373 16% 24,321 2% Deposits 1,68,220 1,41,441 19% 1,58,862 6% Borrowings 42,828 23,557 82% 37,040 16% Other Liabilities and Provisions 11,908
Slide 11: Profit and Loss Account – Q2FY19
Profit and Loss Account – Q2FY19 (Rs Crs) Q2FY19 Q2FY18 Y-o-Y (%) Q1FY19 Q-o-Q (%) Net Interest Income 2,204 1,821 21% 2,122 4% Other Income 1,317 1,188 11% 1,302 1% Total Income 3,521 3,009 17% 3,424 3% Operating Expenses 1,529 1,375 11% 1,513 1% Operating Profit 1,992 1,634 22% 1
Slide 12: Profit and Loss Account – HYFY19
Profit and Loss Account – HYFY19 (Rs Crs) HYFY19 HYFY18 Y-o-Y (%) Net Interest Income 4,325 3,595 20% Other Income 2,619 2,355 11% Total Income 6,944 5,950 17% Operating Expenses 3,041 2,728 11% Operating Profit 3,903 3,222 21% Provisions & Contingencies 940 604 56% Profit before Tax 2,9
Slide 13: Key Financial Indicators
Key Financial Indicators Q2FY19 Pre one off Q2FY19 Q2FY18 Q1FY19 contingent provision Return on Assets 1.59% 1.89% 1.90% 1.91% ROE (On average equity) 14.85% 17.63% 16.48% 17.25% Cost / Income Ratio 43.41% 43.41% 45.70% 44.18% Net Interest Margin 3.84% 3.84% 4.00% 3.92% Net NPA 0.48% 0.48% 0.44% 0.5
Slide 14: Well Diversified Loan Book
Well Diversified Loan Book Loan Book (Rs crs) 1,63,144 1,63,144 1,44,954 1,50,675 1,13,081 61% 55% 88,419 60% 60% 68,788 60% 59% 59% 39% 45% 40% 40% 41% 40% 41% FY15 FY16 FY17 FY18 Jun-18 Sep-18 Sep-18 (BBG forming part Consumer Finance Division Corporate & Commercial Banking of Consumer) (Rs crs) (
Slide 15: Diversified Corporate Loan Book
Diversified Corporate Loan Book Gems and Jewellery 4.80% NBFCs (other than HFCs ) 4.77% Real Estate Developer 4.06% Microfinance 3.71% Steel 3.56% Power Generation 3.39% Constn related to infra.- EPC 2.89% Lease Rental 2.49% Services 2.45% Roads/other infra projects 2.34% Food Beverages and Food pro
Slide 16: Well Rated Corporate Portfolio
Well Rated Corporate Portfolio 24% P 22% E R C 20% Investment Grade Sub Investment Grade E N 18% T 16% O F Unsecured Non Fund Based % 14% R Secured Non Fund Based % A 12% Unsecured Fund Based % T Secured Fund Based % E 10% D 8% P O 6% R T F 4% O L 2% I O 0% IB1 IB2+ IB2 (AA) IB2- IB3+ IB3 (A) IB3- (
Slide 17: Behavioural Scoring affirms quality of Vehicle Financing Portfolio
Behavioural Scoring affirms quality of Vehicle Financing Portfolio • Behavioural Score (B- score) measures post disbursement credit quality using long range historical data. • B-score assesses every borrower risk using Current and Historical DPD, LTV, Geography, Loan tenor, Customer type, etc. • B-s
Slide 18: Improving CASA profile
Improving CASA profile Building CASA traction CASA Uptick 80,000 50% Expanding branch network 42.3% 42.9% 44.0% 43.4% 43.6% 70,000 44% Focus on target market segments 37.8% 60,000 38% 73,375 Government business 50,000 62,614 66,729 68,980 33% 40,000 59,776 Capital market flows 50,501 27% 30,
Slide 19: Other Income
Other Income (Rs Crs) Q2FY19 Q2FY18 Y-o-Y (%) Q1FY19 Q-o-Q (%) Core Fee 1,218 1,013 20% 1,165 5% Securities/MM/FX 99 175 (43%) 137 (28%) Trading/Others Total 1,317 1,188 11% 1,302 1% 18
Slide 20: Diverse Revenues from Core Fee Income
Diverse Revenues from Core Fee Income (Rs Crs) Q2FY19 Q2FY18 Y-o-Y(%) Q1FY19 Q-o-Q(%) Trade and Remittances 151 128 18% 141 7% Foreign Exchange Income 223 183 22% 228 (2%) Distribution Fees (Insurance, MF, 280 237 18% 278 1% Cards) General Banking Fees 91 65 40% 80 14% Loan Processin
Slide 21: Yield / Cost Movement
Yield / Cost Movement 11.44% 11.15% 9.48% 9.36% Yield on Assets Yield on Advances 6.54% 6.20% 5.64% 5.44% Cost of Deposits Cost of Funds Q2FY19 Q1FY19 •Yield on Assets/Cost of funds are based on Total Assets/Liabilities Segment-wise Yield Q2FY19 Q1FY19 Outstanding Yield Outstanding Yield (Rs crs) (%
Slide 22: Credit Cost
Credit Cost (Rs Crs) FY15 FY16 FY17 FY18 Q1FY19 Q2FY19 HY FY19 Corporate Bank 144 258 401 468 80 59 139 Consumer Finance 195 244 303 433 129 141 270 Gross Credit Costs 339 502 704 901 209 200 409 Gross Credit Costs 49 57 62 62 14 12 25 (Basis Points on Advances) Net Credit Cost 323 468 672 856 205 1
Slide 23: Loan Portfolio - Movement in NPA and Restructured Advances
Loan Portfolio - Movement in NPA and Restructured Advances (Rs Crs) Q2FY19 Q1FY19 Corporate Consumer Total Corporate Consumer Total Opening Balance 1,110 631 1,741 1,053 652 1,705 Additions 93 326 419 209 266 475 Deductions 142 237 379 152 287 439 Gross NPA 1,061 720 1,781* 1,110 631 1,741* Net NPA
Slide 24: NPA Composition – Consumer Finance
NPA Composition – Consumer Finance (Rs Crs) Com. Const. Small LAP/HL/ Q2-FY19 Utility TW Cars Tractor Cards Total Vehicle Equip. CV PL Gross NPA 205 43 46 37 153 47 79 53 57 720 Gross NPA % 0.93% 1.32% 0.73% 1.27% 3.87% 0.80% 0.60% 1.72% 1.78% 1.13% Com. Const. Small LAP/HL/ Q1-FY19 Utility TW Cars
Slide 25: CRAR
CRAR (Rs Crs) 30 Sept 18 30 Jun 18 Basel – III Basel – III Credit Risk, CVA and UFCE 1,66,588 1,53,398 Market Risk 8,617 9,800 Operational Risk 18,840 18,840 Total Risk Weighted Assets 1,94,045 1,82,038 Core Equity Tier 1 Capital Funds 24,897 24,014 Additional Tier 1 Capital Funds 2,000 2,000 Tier 2
Slide 26: Distribution Expansion to Drive Growth
Distribution Expansion to Drive Growth Strengthening Distribution Infrastructure Dec. 31, Mar. 31, June 30, Sept. 30, Particulars 2017 2018 2018 2018 Branch 1,320 1,400 1,410 1,466* Network ATMs 2,162 2,203 2,285 2,372 *includes 203 specialized branches • Branch/Representative Office • Strategic All
Slide 27: Shareholding Pattern
Shareholding Pattern September 30, 2018 NRIs/ Director/ Others, 2.97 GDR issue, 10.76 Promoters, 14.94 Individuals, 6.20 MFs / Banks/ Insurance Co, 9.12 Private Corporates, 9.43 *FIIs, 46.58 *includes FPIs 26
Slide 28: New Initiatives and Accolades
New Initiatives and Accolades 27
Slide 29: New Product Launches
New Product Launches * IndusiInd Bank
Slide 30: New Initiatives: IndusInd Bank Duo Card
New Initiatives IndusInd Bank Duo Card • 2 EMV chips and 2 magnetic stripes on a single card • A single account statement • Reward points that can be combined for maximizing redemption options • A single card with double the offers of both credit and debit • Launched with multi-media campaign #KeepI
Slide 31: New Initiatives: Indus Assist – Voice Based Banking
New Initiatives Indus Assist – Voice Based Banking • Now our Customers can Bank with voice commands! • Indus Assist presents an Artificial Intelligence (AI) based utility which enables our customers to conduct financial and non-financial banking transactions on Amazon Echo and other Alexa-enabled de
Slide 32: Accolades
Accolades 31 IndusiInd Bank
Slide 33: Accolades: International Banker 2018 Awards
Accolades International Banker 2018 Awards Best Commercial Bank of the Year, India Best Innovation in Retail Banking India 32
Slide 34: Accolades: Apex India Excellence Awards 2017 in CSR for Sports
Accolades Apex India Excellence Awards 2017 in CSR for Sports IndusInd Bank won the Apex India Excellence Awards 2017 in CSR for Sports. We were bestowed with this honour for our support towards para-athletes, blind athletes and women athletes. IndusInd Bank is the only Banking & Financial services
Slide 35: Accolades: ELSC Leadership Awards
Accolades ELSC Leadership Awards IndusInd Bank is awarded with ‘12th ELSC Leadership Awards’ for the “Best-In-Class Client & Supplier Collaboration”. 34
Slide 36: Thank You
Thank You
Slide 37: 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