Indusind Bank Ltd. · NSE:INDUSINDBK
Indusind Bank — Investor Day (November 2022)
26 slides from Indusind Bank's investor day presentation, Nov 22, 2022
Slide 1: Investor Day, 22nd November 2022
– Investor Day 22nd November 2022 1
Slide 2: Corporate & Commercial Banking Group
IndusInd Bank – Investor Day Presentation-6 Corporate & Commercial Banking Group
Slide 3: Evolving Operating Environment and Bank's Response / Performance
Evolving Operating Environment and Bank’s Response / Performance Macro Developments Bank’s Performance Increasing Lending Rates 40 bps improvement in QoQ Yields Robust Credit Growth backed by government push & Overall Corporate Segment growth : 23% YoY record high GST collection Small Business growt
Slide 4: Presentation Outline
Presentation Outline Corporate & Commercial Banking Franchise Fine-tuning corporate bank approach Future in focus 4
Slide 5: Presentation Outline
Presentation Outline Corporate & Commercial Banking Franchise Fine-tuning corporate bank approach Future in focus 5
Slide 6: Catering to the all-encompassing corporate landscape
Catering to the all-encompassing corporate landscape 540+ Large & Mid corporates Small Corporates 5000+ Coverage coverage from coverage from # Asset Clients 15+ cities team strength 60+ cities Cash Credit Overdrafts Working Capital Demand Loan Short term loan Corporate entities from turnover
Slide 7: Well Diversified Book
Well Diversified Book (₹crs) % Loan Book (₹crs) 1,21,766 Large Corporates 68,668 crs 56.4% 1,14,429 1,09,463 1,05,481 99,079 92,407 Mid Corporates 42,478 crs 34.9% Small Corporates 10,620 crs 8.7% June'21 Sep'21 Dec'21 Mar'22 Jun'22 Sep'22 Book by Region Book by Ticket Size Book by Industry Sep-22 S
Slide 8: Franchise strength – built on a client-centric and holistic business model
Franchise strength – built on a client-centric and holistic business model Risk Management Client-centric Coverage Adaptive Risk and Policy framework for: Robust & tiered due-diligence framework 04 01 Strategically segmented in line with size of Early identification and mitigation of Risks cor
Slide 9: Comprehensive coverage to provide best in class client service
01 Comprehensive coverage to provide best in class client service Client Coverage Units Specialized Coverage Units Domain Expertise with market No Restructuring Emerging Mid- Gems & Jewelery leadership position No SMA Corporates No NPA Real Estate & Our Real Estate Unit focuses on 75% Corporate Bank
Slide 10: Our differentiated product capabilities
02 Our differentiated product capabilities With comprehensive products for capturing ecosystem financing backed by digital capabilities Trade & Supply Chain financing Global Market Solutions# Cash Management Solutions ► Well-diversified book across products with ► Dominant Market Maker in Fx. spot a
Slide 11: Our differentiated product capabilities
02 Our differentiated product capabilities Debt Capital Markets Project Financing 42 projects | 15k+crs 85% ~45,300 crs Underwritten under renewable energy sector Book underwritten churned of assets sold till date across 170+ deals 15 projects | ~9kcrs 70% Improved League Table Position from 6th i
Slide 12: End-to-End digital enablement for Corporate Banking
03 End- to-End digital enablement for Corporate Banking Interactive Dashboards Sales enablement tools enabling Teams to focus their efforts on prospects and clients with the highest value in terms of returns Digital channels and tools to address the ► KPI Management rapidly evolving demands and expe
Slide 13: Comprehensive Risk Management Framework
04 Comprehensive Risk Management Framework – with multiple layers of defense Underwriting aligned towards granular, secured, shorter duration loans from high rated customers Robust Credit Framework.. ..with continuous monitoring .. and right support & interventions Third Line Central Quality & Assur
Slide 14: Presentation Outline
Presentation Outline Corporate & Commercial Banking Franchise Fine-tuning corporate bank approach Future in focus 14
Slide 15: The precursor to our current Business Strategy
The precursor to our current Business Strategy We had consistent loan growth journey … … except for FY19-21 102421 Loan Book (₹crs) 91334 91018 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Mar'19 Mar'20 Mar'21 15
Slide 16: The precursor to our current Business Strategy: Key learnings
The precursor to our current Business Strategy Key learnings from our experience Implementing the learnings while navigating COVID Customer concentration built up over the period A Tighter & well-defined credit Reliance on bulky fee income underwriting norms with Deals pertaining to holding compa
Slide 17: Implementing the learnings – Tighter credit underwriting and risk management
Implementing the learnings – ‘Fine-tuning the Corporate Bank approach’ A Tighter credit underwriting norms & enhancing risk management framework Policy & Thresholds Proactive Portfolio Monitoring Tighter policy norms pertaining to complex & structured Implementation of robust Early Warning Signals (
Slide 18: Implementing the learnings – Re-orientation of business model
Implementing the learnings – ‘Fine-tuning the Corporate Bank approach’ B Re-orientation of business model to focus on granular acquisition Carving a dedicated unit for Strategic groups, Global corporates to provide a differentiated coverage & delivery Optimization of industry verticals in line w
Slide 19: How our strategy has played so far: rating profile
How our strategy has played so far Focused approach on acquisition across high rated asset Improvement in rating profile of the book # … has resulted in …. 6% 6% 5% 4% 24% 23% 31% 26% 27% 26% 27% 29% 15% 21% 25% 15% 19% 25% 23% 22% Mar-20 Mar-21 Mar-22 Sep-22 80%+ of new Relatively higher AAA AA-, A
Slide 20: How our strategy has played so far
How our strategy has played so far Re-orientation of coverage models % < 3 year book have enabled Consistent increase in % % of WC Book 115 higher annuity share of working capital 142 profile of the 100 book…. 100 Mar'20 Sep'22 Mar - 20 Sep - 22 Fees composition 3% 16% 34% 22% 40% Investment Banking
Slide 21: How our strategy has played so far: loan growth and slippages
How our strategy has played so far Corporate loan growth is back on track… … as evidenced by Q-o-Q book growth… Slippages stabilized over last 12-18 months Loan Book (₹crs) Y-o-Y Growth 1,21,766 1,14,429 3990 1,09,463 31% 1,05,481 99,079 3509 91,018 92,407 3140 24% Fresh Slippages (₹crs) 23% 20% 107
Slide 22: Presentation Outline
Presentation Outline Corporate & Commercial Banking Franchise Fine-tuning corporate bank approach Future in focus 22
Slide 23: Priority for the future is 'Scalable & Sustainable growth'
Priority for the future is ‘Scalable & Sustainable growth’ with identified growth levers Scalable & sustainable growth Increasing granularity & annuity orientation of the loan portfolio & income composition Scale-up of Small Broad-base our Focus on cross-sell Strengthening businesses < 500 corporate
Slide 24: Aiming for 'Scalable & Sustainable Growth' going forward
With building blocks in place, we aim for ‘Scalable & Sustainable Growth’ going forward 30 - 35% 1 Small Businesses …improving risk density with high quality onboarding, minimizing credit costs … and steadily increasing the share of Small & Mid corporates Taking the 2 15 - 20% loan book …increasing
Slide 25: Thank You
THANK \ielu, IndusInd Bank
Slide 26: 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