IndusInd Bank Ltd. · NSE:INDUSINDBK
IndusInd Bank — Q1 FY2008-09 Earnings Presentation
40 slides from IndusInd Bank's earnings presentation, Aug 1, 2008
Slide 1: Financial Results Q1 2008-09
Financial Results Q1 2008 -09 Presentation to Analysts August 01, 2008
Slide 2: The Presentation Path
The Presentation Path Management Focus Q1 Initiatives Highlights Financial Results 2
Slide 3: Management Focus
Management Focus To: To: REPOSITION REPOSITIONIBL IBLas asTOP TOP33 Performer Performerin inthe theNEW NEWPRIVATE PRIVATEBBANK ANKspace spacein in33YEARS. YEARS. In Interms termsofof:: Profitabilit Profitabilityy Productivit Productivityy Efficienc Efficiencyy Measured Measuredbby: y: ROA, ROA, ROE,
Slide 4: The Presentation Path
The Presentation Path Management Focus Q1 Initiatives Highlights Financial Results 4
Slide 5: Q1 Key Initiatives
Q1-Key Initiatives People Peopleand andOrg. Org. --Client/Product Capital Client/Product - - Branch CapitalInfusion Infusion BranchStructure/ Structure/ Empowerment Empowerment -- GDR GDR - - Compensation/Hiring Compensation/Hiring Performance PerformanceMgmt. Mgmt. Productivit Productivity/Efficien
Slide 6: Organisation Restructuring
Organisation Restructuring Organisation restructuring undertaken to create stronger client and product based Business Units (Corporate and Commercial Banking, Consumer Banking, Global Markets Groups and Transaction Banking). 6
Slide 7: Organisation Restructuring
Organisation Restructuring MD MDand andCEO CEO Head Head Chief HeadCorporate Corporate Head Head Head HeadGlobal Global Head Chief Chief ChiefRisk Risk &&Commercial Markets Transaction Operating Commercial Consumer Consumer MarketsGroup Group Transaction Operating Officer Officer Banking Banking Ban
Slide 8: Core Executive Team
Core Executive Team w Romesh Sobti – MD & CEO w Paul Abraham – Chief Operating Officer w K Sridhar – Chief Risk Officer w Suhail Chander – Head Corporate & Commercial Banking w Sumant Kathpalia – Head Consumer Banking w Ramesh Ganesan – Head Transaction Banking w SV Parthasarathy – Head Consumer Fin
Slide 9: Geographical Structure
Geographical Structure RRe etati alil/ /CCF FDD Corp / /S Office SMME E/ C / C& Zones [5] &I IH Heea adds Regions [28] s Branches [180] IMFS [410] (Business Distribution Locations) Earlier Geographical Structure: Current Geographical Structure: -Non-uniform Definitions of Zones -Standardization of Z
Slide 10: Branch Structure
Branch Structure Functional FunctionalReporting Reporting Branch Manager Sales Service Operations Previous Responsibilities for BMs: Current Key Result Areas for BMs: -Retail Liabilities sales -Retail Sales Targets -OR Corporate RMs -Service Standards -Operational KPIs / Direct Costs -10% Operations
Slide 11: Hiring of New Resources
Hiring of New Resources •An incremental 399 employees are on board in Q1. Consumer Finance 127 Consumer Banking 131 Corporate & GMG 30 Support Services 111 •Sourced from new private banks, foreign banks and State owned banks. 11
Slide 12: Productivity/Efficiency
Productivity/Efficiency •Centralisation of clearing activities in all four metros. •60 depositor y branches centralized into hub. •Centralised trade finance activit y of 24 branches in a hub. •Centralised processing for 102 branches completed. •Data warehousing product - Reveleus under UAT. •Vendor
Slide 13: Capital Infusion
Capital Infusion •Bank succeeded in full subscription by large institutional investors to its 2nd GDR(Rs.222 crs) in June,2008. •Last GDR programme was run in March,2007(Rs.147crs) •Net worth stands increased to Rs. 1346 crs. •Tier I infusion provides enough room for Tier II. 13
Slide 14: P/L and Balance Sheet
P/L and Balance Sheet § Thrust on Fee -based income through sale of third part y and txnl. products. § Improvement in margin through repricing of loan book and reducti on in cost of deposits. § Corporate and Commercial Banking added 553 new relationships in Q1. § Consumer Banking added over 50,000 c
Slide 15: The Presentation Path
The Presentation Path Management Focus Q1 Initiatives Highlights Financial Results 15
Slide 16: Financial Performance Highlights-Q1
Financial Performance Highlights-Q1 ● Net Profit up b y 44%. ● Operating Profit up by 43 %. ● NIM to 1.68% from 1.12%. ● NII up by 79% . ● Core Fee Income up 30%. ● CRAR up at 13.16% from 12.16% ● CASA up by 23%. Above increases are Y-o-Y basis 16
Slide 17: Financial Results
Financial Results (Rs. in Cr.) Year QI QI QIV Particulars Ended 2008-09 2007-08 2007-08 2007-2008 Interest Earned 528.18 431.84 525.53 1920.23 Interest Expended 425.38 374.44 428.63 1579.86 N II 102.80 57.40 96.90 340.37 Non-Interest Income 55.05 63.76 65.51 258.00 REVENUE 157.85 121.16 162.41 598.3
Slide 18: Balance Sheet
Balance Sheet (Rs. in Cr.) Y-o-Y QI 2008-09 QI 2007-08 Growth Capital & Liabilities Capital 355 320 11% Reserves & Surplus 1,229 750 64% Deposits 18,116 17,329 5% Borrowings 2,913 546 433% Other Liabilities & Provisions 1,750 1,613 8% Total 24,364 20,559 19% Assets Cash & Bank Balance 1,630 1,178 38
Slide 19: Business Mix
Business Mix Busine ss M ix 35000 30000 25000 Depos its 20000 Advances 15000 10000 Total 5000 0 2004-05 2005-06 2006-07 2007-08 Q1-09 (Rs. in Cr.) Year Deposits Advances Total 2004-05 13114 8999 22113 2005-06 15006 9310 24316 2006-07 17645 11084 28729 2007-08 19037 12795 31832 19 Q1-09 18116 13268 3
Slide 20: Yield vs Cost
Yield V/s Cost QI Q1 QIV Year Ended Year Ended 2008-09 2007-08 2007-08 2007-08 2006-07 Yield on Advances 12.40% 11.16% 12.20% 11.76% 9.76% Yield on Investments 6.97% 6.88% 7.01% 6.93% 6.84% Cost of Deposit 7.79% 7.94% 7.85% 7.84% 6.73% Yield on Advances Cost of Deposit 12.40% 12.50% 12.20% 8.00% 7.9
Slide 21: CASA
CASA CASA 17.61% 18.00% 17.00% 15.70% 16.00% 15.01% 15.00% 14.00% 13.00% 12.00% 11.00% 10.00% Q1 07-08 Q4 07-08 Q1 08-09 (Rs. in Cr.) Deposit Q1 08-09 % Q4 07-08 % Q1 07-08 % Q4 06-07 % Savings 1,245 7% 1,186 6% 947 5% 921 5% Current 1,945 11% 1,802 9% 1,655 10% 1,711 10% Term Deposit 14,926 82% 16,
Slide 22: Net Interest Margin
Net Interest Margin NIM(Quarter) NIM(Year) 1.80% 1.64% 1.68% 1.60% 1.60% 1.53% 1.40% 1.50% 1.20% 1.12% 1.37% 1.40% 1.00% 0.80% 1.30% 0.60% 1.20% 0.40% 1.10% 0.20% 1.00% 0.00% 2006-07 2007-08 Q1-08 Q4-08 Q1-09 (Rs. in Cr.) Pe riod NIM NII 2006-07 1.37% 271.41 2007-08 1.53% 340.37 Q1-08 1.12% 57.40 Q4
Slide 23: Other Income Break-up
Other Income Break-up (Rs. in Cr.) Year Year Q1 QI QIV Particulars 2007- 2006- 2008-09 2007-08 2007-08 2008 2007 Fee Based Income 58.06 47.28 53.58 207.61 180.49 Profit on Exchange Transactions (Net) 11.95 6.45 10.50 28.89 18.67 Profit on Sale of Land, Bldg & Other Assets (6.29) 5.63 (3.80) (0.67) (
Slide 24: Operating Expenses
Operating Expenses (Rs. in Cr.) Year Year QI Q1 QIV Particulars 2007- 2006- 2008-09 2007-08 2007-08 2008 2007 Payment to employees 37.30 26.44 34.90 121.90 96.29 Other operating expenses 74.68 62.67 76.23 280.29 247.67 Total operating expenses 111.98 89.11 111.13 402.19 343.96 No. of employees 3069
Slide 25: Movement in NPA
Movement in NPA (Rs. in Cr.) Q1-2008-09 QI 2007-2008 Particulars CCB CFD Total CCB CFD Total Opening Balance 223.41 168.90 392.31 189.81 152.93 342.74 Additions during the Period 10.85 58.03 68.88 9.08 39.70 48.78 Deductions during the Period 4.71 25.25 29.96 6.76 22.69 29.45 Closing Balance 229.55
Slide 26: Capital Adequacy
Capital Adequacy (Rs. in Cr.) Q1-2008-09 Q4-2007-08 Q3-2007-08 Amount % Amount % Amount % Tier I Capital 1,315 8.10% 1,073 6.70% 1,072.38 6.80% Tier II Capital 821 5.06% 834 5.21% 826.41 5.24% Total Capital 2,136 13.16% 1,907 11.91% 1,898.79 12.04% Risk Weighted Assets 16,230 16,017 15,776 Capita l
Slide 27: Key Financial Indicators
Key Financial Indicators (Rs. in Cr.) QI QI QIV Particulars 2007-08 2006-07 2008-09 2007-08 2007-08 Gross NPAs 431.24 362.07 392.31 392.31 342.74 Gross NPA (%) 3.22% 3.14% 3.04% 3.04% 3.07% Net NPAs 320.08 288.08 296.01 296.01 273.75 Net NPA (%) 2.41% 2.51% 2.27% 2.27% 2.47% CRAR (%) 13.16% 12.16% 1
Slide 28: Sensitive Sector Exposure
Sensitive Sector Exposure (Rs. in Cr.) Items 30.06.2008 31.03.2008 30.06.2007 31.03.2007 (i) Capital Market Exposure 351.83 350.87 421.58 330.69 (ii) Real Estate Exposure 426.32 468.02 440.13 433.51 The Capital Market Exposure is within the permissible limit of 40% of Net worth 28
Slide 29: Investment Break-up
Investment Break-up (Rs. in Cr.) Sr. No. Items 30.06.08 30.06.07 31.03.08 (i) Held to Maturity (HTM) · G-Secs 5,359 4,055 4,678 · Other Approved 0 2 0 · Equity Shares 6 6 6 · Other Investments (RIDF) 1,111 913 1,103 6,476 4,976 5,786 (ii) Held for Trading (HFT) · G-Secs 0 0 178 (iii) Available for S
Slide 30: Advances Break-up
Advances Break-up (Rs. in Cr.) Advances 30.06.2008 30.06.2007 31.03.2008 Consumer Finance Division · Commercial Vehicle Loans 4,609 4,306 4,351 · Utility Vehicle Loans 359 254 329 · Car Loans 593 611 605 · 2/3-Wheeler Loans 796 649 788 · Equipment Financing 1,062 814 1,060 Personal Loans 50 71 53 Ho
Slide 31: Disbursements-CFD
Disbursements-CFD (Rs. in Cr.) YoY QoQ Q1 Q1 Growth Q4 FY07- Growth Products FY 08-09 FY07-08 (%) 08 (%) Commercial Vehicles 654.28 536.81 21.88% 608.45 7.53% 2/3 Wheeler Loans 186.69 179.03 4.28% 231.36 -19.31% Cars 81.35 68.04 19.56% 71.01 14.56% Utility Vehicles 85.13 51.32 65.88% 64.48 32.03% Eq
Slide 32: Provision and Contingencies
Provision and Contingencies (Rs. in Cr.) Q1 Q1 2007-08 2006-07 08-09 07-08 i) Income Tax / Wealth Tax / 11.38 7.05 39.23 39.16 Deferred Tax/ Fringe Benefit Tax ii) Provision for diminution in value 0.82 (2.18) 3.63 2.31 of investments iii) Provision for non performing 12.29 11.33 65.33 55.92 assets
Slide 33: Contingent Liability
Contingent Liability (Rs. in Cr.) Particulars 30.06.2008 31.03.2008 30.06.2007 Claims against bank not acknowledged as debt 237 237 222 Liability on a/c of o/s Forward Exch. contracts 26,706 17,113 9,908 Liability on a/c of o/s Derivatives Contracts 9,596 9,149 9,975 Guarantees given on behalf of co
Slide 34: Assets sold to ARCs
Assets sold to ARCs (Rs. in Cr.) Items 2007-08 2006-07 1) No. of accounts - 7 2) Aggregate value (net of provisions) of - 49.17 accounts sold to SC/ RC 3) Aggregate consideration - 48.36 4) Additional consideration realized in 10.70 - respect of accounts transferred in earlier years 5) Aggregate gai
Slide 35: Assets securitised
Assets securitised (Rs. in Cr.) Items Mar-08 Mar-07 Loan Securitised NIL NIL Credit Enhancements Outstanding value of credit 137.25 214.40 enhancement Outstanding value of First Loss 62.98 74.74 Facility Outstanding value of Second 80.46 80.46 Loss Facility (Guarantee) Outstanding value of Liquidity
Slide 36: Derivatives Exposure
Derivatives Exposure (Rs. in Cr.) Items 30-Jun-08 31-Mar-08 31-Mar-07 1) The notional principal of swap agreements 9125 8950 6950 2) Collateral required by the bank upon entering - - - into swaps 3) Concentration of credit risk arising from the 72% 73% 65% swaps (with banks) 4) The fair value of the
Slide 37: Deposit Profile
Deposit Profile (Rs. in Cr.) As on As on June As on June Buckets March 31, 30, 2008 30, 2007 2008 Up to - 14 Days 959 1,780 1,082 14 - 28 Days 478 675 366 28 - 3 Months 2,092 2,180 2,699 3 - 6 Months 1,136 886 1,369 6 - 12 Months 2,323 1,938 1,996 1 - 3 Years 6,424 5,152 6,685 3 - 5 Years 2,397 2,40
Slide 38: Branches ATMs Distribution Network
Network Q1-'07-08 Q4-'07-08 Q1-'08-09 Branches 170 180 180 ATMs 273 336 349 Distribution Centres 410 410 410 Total Network 443 516 529 38
Slide 39: Share-Holding Pattern
Share-Holding Pattern (Rs. in Cr.) Q1-09 18.22% Promoters 25.63% MFs / Banks/ Insurance Co 4.79% FIIs Private Corporates 2.14% Individuals 15.25% NRIs/ Director/ Others 17.58% 16.38% GDR issue 39
Slide 40: Thank You!
Windusind:-;s Bank No Thank You!