IndusInd Bank Ltd. · NSE:INDUSINDBK
IndusInd Bank — Investor Presentation (November 2012)
40 slides from IndusInd Bank's investor presentation, November 2012
Slide 1: Corporate Presentation
Corporate Presentation November 2012
Slide 2: 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. This presentation may not be copied, distributed, redistributed or di
Slide 3: Overview of the Bank
D Overview of the Bank IndusInd Bank >
Slide 4: IndusInd Bank – An Overview
IndusInd Bank – An Overview Incorporated in January, 1994; widespread customer base of ~ 3.2 million as at September 30, 2012 Pan India presence through a network of 441 branches, 729 marketing outlets and 796 ATMs as at September 30, 2012 with representative offices in Dubai and London and stra
Slide 5: Defined Business Units
Defined Business Units Global Markets Transaction Banking Product Groups Business Units Client Groups Consumer Banking Corporate and Commercial Banking Corporate & Consumer Finance Investment Banking Retail Liabilities Commercial Banking Banking Channel Management Business Banking & Services Wealth
Slide 6: Over 18 years of Operating History
Over 18 years of Operating History 2012 New products launched – Currency Chests and Prepaid Forex cards Innovations introduced – Instant Redeem, Direct Connect & Cash On Mobile New segments introduced – MFI through 2011 Partnership Model and Govt. Banking vertical Acquired Deutsche Bank’s cr
Slide 7: Key Strengths
@® Key Strengths IndusInd Bank >
Slide 8: Key Strengths
Key Strengths Well Implemented Expansion Strategy 1 Experienced Management Team 2 Universal Bank Offering 3 Growing Liability Franchise 4 Stable Asset Quality 5 Focused Execution on Risk, Operations and Portfolio 6 8
Slide 9: Well Defined Expansion Strategy
Well Implemented Expansion Strategy 1 Well Defined Expansion Strategy Planning Cycle I (2008–2011) Planning Cycle II (2011–2014) Team Strategy Scale with Profitability Re-organisation of business segments Revamp of risk organisation Productivity Focus on Profitability Theme Invest to Grow Phas
Slide 10: New Initiatives Undertaken
Well Implemented Expansion Strategy 1 New Initiatives Undertaken Scale with Profitability across products, clients and Universal Bank agenda through comprehensive THEMES branch network range of offerings to chosen client segments Distribution as a means to grow fee income faster Responsiveness theme
Slide 11: Disciplined Execution
Well Implemented Expansion Strategy 1 Disciplined Execution Planning Cycle II (2011–2014) H1-FY13 Loan Growth 31% YoY Growing Consumer Finance CF book Rs 204,341 mn (CF) book Growth-45% YoY Resulting in Growth-26% YoY CASA CASA-28% Manage CD Ratio 83% Fee Growth 42% YoY 11
Slide 12: Board of Directors
Experienced Management Team 2 Board of Directors Name Designation Occupation Mr. R. Seshasayee Chairman Executive Vice Chairman, Ashok Leyland Ltd. Mr. Romesh Sobti Managing Director & Whole-time Director CEO Industrialist and Director, IndusInd International Holdings Ltd., Mauritius, a Mr. Ajay Hin
Slide 13: Key Managerial Personnel
Experienced Management Team 2 Key Managerial Personnel Name Designation Past Engagements Over 39 years banking career with ABN AMRO Bank N.V., ANZ Grindlays Mr. Romesh Sobti Managing Director & CEO Bank Plc & State Bank of India Managing Director of ABN AMRO Central Enterprise Services & COO of Mr.
Slide 14: Focus on Capital Management
Experienced Management Team 2 Focus on Capital Management Fee Growth faster than Loan Growth Slower Growth in Risk Weighted Assets (Basel II) 57.5% 48.1% 45.7% 45.1% 41.6% 44.2% 34.0% 40.9% 33.9% 36.1% 30.3% 30.8% 27.3% 27.1% 31.1% 23.3% 22.2% 15.4% 13.1% 17.5% 11.0% 10.5% FY08 FY09 FY10 FY11 FY12 H
Slide 15: Improvement across Key Financial Metrics
Experienced Management Team 2 Improvement across Key Financial Metrics Net Interest Margin* (NIM) (%) RoA* (on Avg Assets) (%) RoE* (on Avg Equity) (%) 3.5% 1.6% 1.6% 21.0% 3.3% 3.2% 1.5% 19.5% 19.3% 19.2% 2.9% 1.1% 1.8% 11.7% 1.4% 0.6% 6.8% 0.3% FY08 FY09 FY10 FY11 FY12 H1FY13 FY08 FY09 FY10 FY11 F
Slide 16: Balanced Loan Book Mix
Universal Bank Offering 3 Balanced Loan Book Mix Loan Book (Rs mn) Corporate Loan Book Classification – 30 Sep 12 (Rs mn) Total – Rs 189,931 mn Small Corporates 3,94,272 31,097 7.9% 3,50,640 FY 08-H1FY13 CAGR: 28.4% 48.2% Mid-sized 2,61,656 Corporates 50.8% 56,980 14.5% 2,05,506 55.6% 1,57,706 1,27,
Slide 17: Loan Book Diversity across Segments
Universal Bank Offering 3 Loan Book Diversity across Segments Corporate Loan Book by Industry– 30 Sep 12 Consumer Finance Loan Book by Product – 30 Sep 12 Total – Rs 189,931 mn Total – Rs 204,341 mn Comm. Vehicle Other Industry* Loans* 27.6% 24.2% *Represents each industry <1% * CV includes MHCV, LC
Slide 18: Well Distributed Vehicle Finance Portfolio
Universal Bank Offering 3 Well Distributed Vehicle Finance Portfolio Geographical Distribution of Vehicle Finance Portfolio – 30 Sep 12 Two & Three wheeler loans CV loans Total Vehicle Finance Portfolio ●J&K 0.2% Book: Rs 192,254 mn (94% of Consumer Finance Loan Book) Punjab 3.1% ● ●Himachal Pradesh
Slide 19: Comprehensive Corporate and Commercial Banking Offering
Universal Bank Offering 3 Comprehensive Corporate and Commercial Banking Offering Distribution of Corporate & Commercial Banking Network Product and Service Offerings Corporate & Investment Banking Working Capital Finance Financial Institutions and Public Short Term Finance Sector Units Bill D
Slide 20: Growing Fee Pool with Third Party Tie-ups
Universal Bank Offering 3 Growing Fee Pool with Third Party Tie-ups Fee Income (Rs mn) Fee Income Split 2.0% FY08 – Rs 2,179 mn FY12 – Rs 9,132 mn Fee Income as a % of Total Assets 1.8% 5,651 17.8% 8.7% 1.6% 20.0% 12.8% FY 08-12 9,132 CAGR: 43.1% 32.8% 12.8% 14.9% 1.4% 6,295 13.3% 1.2% 4,322 19.1% 2
Slide 21: Large Distribution Network
Growing Liability Franchise 4 Large Distribution Network J&K2 Strengthening Distribution Infrastructure HP 2 Chandigarh Punjab 30 2 Particulars FY08 FY09 FY10 FY11 FY12 H1FY13 Uttarakhand 1 Haryana Delhi 24 22 Branch Network 180 180 210 300 400* 441* Sikkim 1 Assam 6 Rajasthan 28 UP 24 Meghalaya 1 A
Slide 22: Improvement in CASA profile
Growing Liability Franchise 4 Improvement in CASA profile Building CASA traction through: Management focus on key target market segments: Government business Capital market flows Key Non-Resident markets Self employed and Emerging Corporate businesses Branch network expansion Savings A
Slide 23: Improvement in CASA profile (Contd.)
Growing Liability Franchise 4 Improvement in CASA profile (Contd.) Current Account (CA) (Rs mn) Savings Account (SA) (Rs mn) 18.3% 11.1% 11.1% 16.5% 16.9% 8.9% 16.2% 13.4% FY 08-H1FY13 7.2% CAGR: 39.5% 6.2% 9.5% 5.9% FY 08-H1FY13 CAGR: 39.5% 80,530 53,125 68,690 46,941 62,721 44,068 30,588 29,550 19
Slide 24: Innovation as a Service Differentiator
Growing Liability Franchise 4 Innovation as a Service Differentiator Instantly redeem credit Mobile transfers with Direct phone banking card reward points cardless access at our ATM service without IVR Choose denomination at the ATM Cheque images on account statement 365 day banking service 24
Slide 25: NPA and Restructured Advances
NPA and Restructured Advances © Opening Balance Additions Deduction Gross NPA Provisions Net NPA Total Advances Gross NPA as a% of Total Advances Net NPA as a % of Total Advances Provision Coverage Restructured Advances 615 385 827 827 0 122,842 FY10 1,954 1,601 1,827 1,728 709 1,018 82,664 CCB - Co
Slide 26: Segment-wise NPA Composition – Vehicle Finance
Stable Asset Quality 5 Segment-wise NPA Composition – Vehicle Finance Commercial Vehicle* Utility* Construction Equipment 1,000 180 1.9% 300 1.7% 1.6% 2.2% 2.1% 900 160 1.4% 1.4% 1.5% 250 1.2% 800 1.7% 140 1.2% 1.3% 700 1.5% 1.5% 200 120 1.1% 1.1% 0.9% 0.8% 600 150 1.2% 100 0.7% 500 0.9% 1.0% 0.5% 0
Slide 27: Credit Costs
Stable Asset Quality 5 Credit Costs (Rs mn) FY08 FY09 FY10 FY11 FY12 H1FY13 Corporate and Commercial Banking 298 781 859 820 611 376 Consumer Finance Division 508 827 758 783 815 497 Total Credit Costs 806 1608 1616 1603 1426 874 Credit Costs 63 102 79 61 41 22 (Basis Points on Advances) Provision C
Slide 28: Rated Corporate Loan Book
Stable Asset Quality 5 Rated Corporate Loan Book* As on 30th September 2012 P E 38% R 36% C E 34% N 32% T Investment Grade Sub Investment Grade 30% 28% O F 26% 24% Unsecured NFB % R 22% A 20% Secured NFB % T E 18% Unsecured FB % D 16% Secured FB % 14% P 12% O 10% R 8% T F 6% O 4% L 2% I 0% O IB1 IB2
Slide 29: CRAR – Basel II
Focused Execution on Risk, Operations and Portfolio 6 CRAR – Basel II (Rs mn) H1FY12 H1FY13 Risk Weighted Assets (RWA) - Credit Risk 298,284 404,074 - Market Risk 6,595 10,349 - Operational Risk 24,083 34,428 - Total RWA 328,962 448,851 Tier I Capital Funds 37,607 44,567 Tier II Capital Funds 9,491
Slide 30: Yield / Cost Management
Focused Execution on Risk, Operations and Portfolio 6 Yield / Cost Management 13.8% 13.9% 12.6% 12.4% 10.5% 10.8% 8.8% 9.1% 8.8% 8.1% 7.6% 6.8% 7.2% 5.9% 6.3% 5.6% FY10 FY11 FY12 H1FY13 Yield on Assets Yield on Advances Cost of Deposits Cost of Funds Yield on Assets/Cost of funds are based on Total
Slide 31: Risk Management Structure in place
Focused Execution on Risk, Operations and Portfolio 6 Risk Management Structure in place Risk Organisation Market Risk Financial Credit Quality Credit Approval & Credit Risk Operational Risk Management & Restructuring & Assurance & Loan Monitoring Management Management ALM Reconstruction Review Cr
Slide 32: Continuous Process Improvement
Focused Execution on Risk, Operations and Portfolio 6 Continuous Process Improvement Centralization / Standardization Initiatives Sustainable Environment – Green Banking Continuous improvement framework through staff training Ethos of a “responsible corporate citizen” across entire bank; changes
Slide 33: Financial Performance
Financial Performance IndusInd Bank >
Slide 34: Balance Sheet
Balance Sheet (Rs mn) FY10 FY11 FY12 H1FY13 CAGR* (%) Capital & Liabilities Capital 4,107 4,660 4,677 4,697 5.5% Reserves and Surplus 19,866 35,843 42,741 47,729 42.0% Deposits 267,102 343,653 423,615 477,645 26.2% Borrowings 49,343 55,254 86,820 67,452 13.3% Other Liabilities and Provisions 13,278
Slide 35: Profit and Loss Account
Profit and Loss Account (Rs mn) FY10 FY11 FY12 CAGR* (%) H1FY13 27,070 35,894 53,592 40.7% 33,600 Interest Income 18,206 22,129 36,549 41.7% 23,661 Interest Expense 8,864 13,765 17,042 38.7% 9,938 Net Interest Income 5,535 7,137 10,118 35.2% 6,393 Other Income 14,399 20,902 27,160 37.3% 16,331 Total
Slide 36: Additional Information
D Additional Information IndusInd Bank >
Slide 37: Shareholding
Shareholding As on 30th September 2012 Promoters NRI's /Directors 19.4% /Others 1.3% Private Corporates 13.7% Individuals FII's 8.8% 34.3% MF /Bank /Insurance Cos 8.8% GDR Holders 13.8% 37
Slide 38: Awards
Awards Sunday Standard Finwiz 2012 - Best Bankers‟ Winner of India‟s Best Mid-Sized Bank Award Awards 2011 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. NASSCOM IT User Award
Slide 39: 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 40: Thank You
D IndusInd Bank >
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