IndusInd Bank Ltd. · NSE:INDUSINDBK
IndusInd Bank — Q3 FY2013 Earnings Presentation
33 slides from IndusInd Bank's earnings presentation, Jan 9, 2013
Slide 1: Investor Presentation
Investor Presentation January 09, 2013
Slide 2: Disclaimer
Disclaimer Certain statements in these slides are forward-looking statements. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Please also refer to the statement of quarterly financial results required by Indian regulations
Slide 3: Q3 FY13 Performance Highlights
Steady performance in deteriorating macro economic environment NIM recovery on track - Net Interest Income grew 34% Y-o-Y & 13% Q-o-Q Q3 FY13 PERFORMANCE HIGHLIGHTS Non-Interest Income to revenue remains healthy at 38% Consistent growth in Core Fee Income 32% Y-o-Y & 11% Q-o-Q Credit growt
Slide 4: Scale with Profitability
Theme for Planning Cycle II - 2011-14 – ‘Invest to grow’ phase Scale with Profitability 4
Slide 5: Planning Cycle II – Pillars of Growth
Planning Cycle II – Pillars of Growth Q3-13 outcome Loan book to grow 25%-30% p.a.; Loan growth 31% well above market growth. Cons. Finance Growing To grow beyond Rs. 25,000 crs by March 2014 book Consumer Rs. 21,691 crs Finance book To be funded through CASA Growth 38% CASA growth CASA to reach
Slide 6: Planning Cycle II – Key Initiatives
Planning Cycle II – Key Initiatives Full suite Assets Scale up Investment Credit Cards Launched Portfolio Banking practice (LAP / Home Loans) New Client Acquisition Used Commercial Offshore branches, Ramp-up Vehicles NRE Deposits Supply New Branch rollouts & CBS rollout Chain Products Currency Chest
Slide 7: How We Measure Up On Key Metrics
How We Measure Up On Key Metrics Net Interest Margin (NIM) RoA RoE* 3.46% 20.00% 20.35% 20.45% QIP – Rs 3.25% 3.29% 3.25% 1.55% 1.60% 1.57% 1.56% 1.60% 19.12% 2000 crs 3.22% 17.37% Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13 *on average eq
Slide 8: 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 AA- for Long Term Debt Instruments by India Ratings and
Slide 9: Financial Performance
Financial Performance IndusInd Bank >
Slide 10: Strong Headline Numbers for Q3FY13
Strong Headline Numbers for Q3FY13 Y-o-Y Growth Q-o-Q Growth Net Interest Rs 577.80 crs 34% 13% Income Other Income Rs 355.80 crs 34% 11% Core Fee Income Rs 329.29 crs 32% 11% Revenue Rs 933.60 crs 34% 12% Operating Rs 472.16 crs 35% 12% Profit Net Rs 267.27 crs 30% 7% Profit 10
Slide 11: Top line momentum
Top line momentum Y-o-Y Growth Q-o-Q Growth Advances Rs 42,426 crs 31% 8% Corporate Advances Rs 20,735 crs 24% 9% Consumer Finance Rs 21,691 crs 38% 6% Advances Deposits Rs 51,098 crs 26% 7% CASA Rs 14,651 crs 36% 10% 11
Slide 12: Balance Sheet
Balance Sheet (Rs crs) Q3FY13 Q3FY12 Y-o-Y (%) Q2FY13 Q-o-Q (%) Capital & Liabilities Capital 522 467 12% 470 1% Reserves and Surplus 6,973 4,168 67% 4,773 46% Deposits 51,098 40,558 26% 47,765 7% Borrowings 6,567 8,137 (19%) 6,745 (3%) Other Liabilities and Provisions 2,736 1,803 5
Slide 13: Profit and Loss Account (Quarter)
Profit and Loss Account (Quarter) (Rs crs) Q3FY13 Q3FY12 Y-o-Y (%) Q2FY13 Q-o-Q (%) Net Interest Income 577.80 430.66 34% 509.73 13% Other Income 355.80 265.12 34% 320.49 11% Total Income 933.60 695.77 34% 830.22 12% Operating Expenses 461.44 346.53 33% 410.40 12% Operating Profit 47
Slide 14: Profit and Loss Account (9 months)
Profit and Loss Account (9 months) (Rs crs) 9M-FY13 9M-FY12 Y-o-Y (%) Net Interest Income 1,571.63 1,239.85 27% Other Income 995.07 719.73 38% Total Income 2,566.70 1,959.58 31% Operating Expenses 1,270.69 965.74 32% Operating Profit 1,296.01 993.94 30% Provisions & Contingencies 181.25 13
Slide 15: Key Financial Indicators
Key Financial Indicators Q3FY13 Q3FY12 Q2FY13 Return on Assets 1.60% 1.55% 1.56% ROE (On average equity) 17.37% 19.12% 20.45% Cost / Income Ratio 49.43% 49.81% 49.43% Net Interest Margin 3.46% 3.25% 3.25% Net NPA 0.30% 0.29% 0.29% EPS (annualized, Rs. per share) 22.04 17.64 21.32 Net Worth (Rs. in c
Slide 16: Well Diversified Loan Book
Well Diversified Loan Book Loan Book (Rs crs) 39,427 42,426 35,064 26,166 49% 48% 20,551 51% 56% 60% 52% 51% 49% 40% 44% FY10 FY11 FY12 Sep-12 Dec-12 Consumer Finance Division Corporate & Commercial Banking (Rs crs) (Rs crs) Corporate Small Consumer Finance 31 Dec-12 31 Dec-12 Banking Business 8% Co
Slide 17: Diversified Corporate Loan Book
Diversified Corporate Loan Book NBFCs (other than HFCs) 4.73% Lease Rental 3.04% Power 2.95% Pharma 1.92% Gems and Jewellery 1.80% Constn related to infra.- EPC 1.75% Real Estate Developers 1.55% Steel 1.30% Paper 1.11% Other Industry 28.72% 17
Slide 18: Well Rated Corporate Portfolio
Well Rated Corporate Portfolio 38% P E 36% R 34% Investment Grade Sub Investment Grade C 32% E 30% N T 28% 26% O 24% F Unsecured Non Fund Based % 22% R 20% Secured Non Fund Based % A 18% Unsecured Fund Based % T 16% E Secured Fund Based % D 14% 12% P 10% O R 8% T 6% F 4% O L 2% I 0% O IB1 IB2+ IB2 I
Slide 19: Improving CASA profile
Improving CASA profile Building CASA traction CASA Uptick Expanding branch network 16,000 33% 27.9% 28.0% 28.7% Some leverage from SA rate advantage 14,000 27.7% 27.3% 26.5% 12,000 27% Focus on target market segments 10,000 14,651 8,000 12,557 13,365 21% 11,563 Government business 10,627 10,
Slide 20: Other Income
Other Income (Rs crs) Q3FY13 Q3FY12 Y-o-Y (%) Q2FY13 Q-o-Q(%) Core Fee 329.29 250.34 32% 296.10 11% Securities/MM/FX Trading 17.72 13.09 52% 21.75 (19%) Others 8.79 1.68 - 2.64 - Total 355.80 265.11 34% 320.49 11% 20
Slide 21: Diverse Revenues from Core Fee Income
Diverse Revenues from Core Fee Income (Rs crs) Q3FY13 Q3FY12 Y-o-Y(%) Q2FY13 Q-o-Q(%) Trade & Remittances 43.37 33.21 31% 40.28 8% Foreign Exchange Income 82.87 60.13 38% 65.84 26% Distribution Fees 68.06 66.30 3% 67.40 1% ( Insurance, MF, Cr. Card ) General Banking Fees 33.37 27.79 20%
Slide 22: Yield / Cost Movement
Yield / Cost Movement 13.72% 13.94% 10.75% 10.80% Yield on Assets 8.43% 8.68% Yield on Advances 7.55% Cost of Deposits 7.29% Cost of Funds Q3FY13 Q2FY13 •Yield on Assets/Cost of funds are based on Total Assets/Liabilities Segment-wise Yield Q3FY13 Q2FY13 Outstanding Yield Outstanding Yield (Rs crs)
Slide 23: Credit costs
Credit costs (Rs crs) FY09 FY10 FY11 FY12 Q2FY13 Q3FY13 9MFY13 Corporate Bank 78.08 85.86 81.99 61.11 16.22 52.37 90.01 Consumer Finance 82.70 75.77 78.34 81.46 25.87 16.23 65.94 Total Credit Costs 160.78 161.63 160.33 142.57 42.09 68.60 155.95 Credit Costs 102 79 61 41 11 16 37 (Basis Points on Adv
Slide 24: Loan Portfolio - Movement in NPA and Restructured Advances
Loan Portfolio - Movement in NPA and Restructured Advances (Rs crs) Q3FY13 Q2FY13 Corporate Consumer Total Corporate Consumer Total Opening Balance 186 224 410 153 212 365 Additions 105** 80** 185 42 71* 113 Deductions 109** 64** 173 9 59* 68 Gross NPA 182 240 422 186 224 410 Net NPA 45 80 125 51 63
Slide 25: NPA Composition – Consumer Finance - Vehicles
NPA Composition – Consumer Finance - Vehicles (Rs crs) Com. Const. Q3-FY13 Utility Small CV TW Cars Vehicle Equip. Gross NPA 89 13 26 20 66 13 Net NPA 31 1 7 10 26 3 Gross NPA % 0.90% 0.75% 0.96% 0.92% 3.55% 0.64% Net NPA % 0.32% 0.08% 0.26% 0.45% 1.45% 0.13% Com. Const. Q2-FY13 Utility Small CV TW
Slide 26: CRAR - Basel II
CRAR - Basel II (Rs crs) 31 December-12 31 December-11 Risk Weighted Assets - Credit Risk 43,464 32,074 - Market Risk 1,539 670 - Operational Risk 3,443 2,408 - Total RWA 48,445 35,152 Tier I Capital Funds 6,441 3,762 Tier II Capital Funds 830 958 Total Capital Funds 7,271 4,720 CRAR 15.01% 13.43% T
Slide 27: Distribution Expansion to Drive Growth
Distribution Expansion to Drive Growth J&K 2 Strengthening Distribution Infrastructure HP 2 Chandigarh Dec Punja 2 Particulars FY10 FY11 FY12 b 31,2012 Uttarakha 30 nd Harya Delhi 1 na 24 Branch Network 210 300 400* 461* 24 Sikkim Assa Rajasth 2 an UP m9 ATMs 497 594 692 852 33 27 Meghala Bihar ya 1
Slide 28: Shareholding Pattern
Shareholding Pattern MFs / Banks/ Insurance Co Individuals 8.8% 7.7% Promoters 15.3% Private Corporates 15.0% NRIs/ Director/ FIIs Others 39.1% GDR issue 1.7% 12.4% As at December 31, 2012 28
Slide 29: Accolades: BA Banking Technology Awards
ACCOLADES BA Banking Technology Awards 1st Runners- Up - Best Risk Management & IT Security - Best Use of Technology in training & e Learning 2nd Runners-Up - Best Online Bank - Best use of Business Intelligence - Best use of Mobility technology in Banking Institute for Development and Research in B
Slide 30: Sunday Standard Finwiz 2012 - Best Bankers’ Awards
ACCOLADES Sunday Standard Finwiz 2012 - Best Bankers’ Awards Best Private Sector Banker (Category- Medium) Romesh Sobti , MD & CEO, IndusInd Bank Ltd. Best Indian Banker (Category- Medium) Romesh Sobti , MD & CEO, IndusInd Bank Ltd. 30
Slide 31: Accolades (UNEP/TERI/KPMG)
ACCOLADES CIO Magazine - Top Green Top 100 CISO (Chief IT Enterprise Award 2012 Information Security Officer) Awards 2012 The CII Environmental Panasonic Green Globe NASSCOM IT User Best Practice Award foundation Award 2012 in Award 2012 for 2012 for the “Most the “Business Enterprise “Environmental
Slide 32: Accolades
ACCOLADES Banking Frontier – National Payments Finnoviti 2012 Awards Corporation of India – for 2 innovations: Operational - Cash on mobile Excellence Awards – - Direct connect for Special Jury award for select customers effectively managing charge backs 32 32
Slide 33: Thank you
D IndusInd Bank >