Indusind Bank Ltd. · NSE:INDUSINDBK
Indusind Bank — Investor Day (November 2022)
41 slides from Indusind Bank's investor day presentation, Nov 22, 2022
Slide 1: Investor Day
– Investor Day 22nd November 2022 1
Slide 2: Presentation-2 Consumer Banking
IndusInd Bank – Investor Day Presentation-2 Consumer Banking
Slide 3: Scaling a Differentiated Retail Consumer Franchise
Scaling a “DIFFERENTIATED” Retail Consumer Franchise
Slide 4: Presentation Flow
Presentation 1 Our Core Beliefs Flow 2 Experienced leadership team focused on sustainable business growth 3 Building blocks of a “differentiated” retail franchise 1. Distribution Expansion based on Micro Market Focused Approach 2. Segmented Strategy to build Domain Leadership 3. Robust client acquis
Slide 5: Our core beliefs
Our core beliefs Phygital Model Dominant in Domains Business Owner Affluent NR From physical branch to mobile, from savings to payments to loans.. From RM to VRM to AI led engagement.. We are Home present across multiple touch points to Markets best engage with our customers Phygital will exist as m
Slide 6: Our core beliefs
Our core beliefs Data Intelligence Deep Play in Assets Raw Credit Data cards Campaigns Client HL/Loan & Offers 360 Against Property Analytical Assets Agri Loans Personal Loans Enabling RM, VRM Sales and Service Architecture with crucial & timely data insights for superior customer experience BBG and
Slide 7: Evolving Operating Environment and our Response / Performance
Evolving Operating Environment and our Response / Performance Macro Developments Performance / Steps for H1 FY23 QoQ Retail growth jumped from 3% in Q1 FY23 to 4.7% in Q2 FY23; Q3 FY23 trending Retail Deposit Growth Muted better than Q2 FY23 Retail TD – we ramped up mobilization in Q4 FY22 itself fo
Slide 8: Our Retailization Journey so far…
Highlights (FY22) 1.8X Industry Growth ~2X ~2X IBL Deposits 2 Year CAGR Retail CASA in 2 Years Retail CASATD in 2 Years Bank’s Retailization focus has yielded results with LCR now IBL started accelerating on LCR with one of the best LCR at 41% of overall deposits growth per branch in FY 22 Our Retai
Slide 9: Our Retailization Journey so far…
~1.7 lacs retail ATS per Client acquisition has accelerated over Highlights customer recent years IBL Retail ATS per customer is in line with peers Ramping up client to boost LCR deposits Our Retailization 2.37 2.31 No. of Customers (# Debit Card outstanding), indexed Journey so far… 2.08 200 1.72 1
Slide 10: Building blocks of a differentiated retail customer franchise
Building blocks of a “differentiated” retail customer franchise Creating people-first culture Customer to provide world responsive class client innovations as a experience Calibrated growth strategy across differentiator in the Business retail assets & marketplace Owner credit cards to Strong data d
Slide 11: Distribution Expansion based on Micro Market Focused Approach
Understanding Market size & growth potential #1 by analysing RBI & Bureau data (Retail Loan 01 Book / Delinquency) New Economic Growth Centres – SMART cities, DMIC influences, Industrial/ MSME corridors, Distribution 02 business communities Expansion based on Playing the “Density Game” through Impac
Slide 12: We continue to invest in brick & mortar footprint expansion
We continue to invest in brick & mortar footprint expansion…present across the length & breadth of the country Large Distribution Infrastructure Our geographical reach… Bank Branch Network Branch Network H1 FY-23 FY-22 FY-21 FY-20 FY-19 FY-18 South Metro 740 726 622 572 512 431 21% East 15% Urban 56
Slide 13: Segmented Strategy to maximize revenue output and create domain expertise
#2 Segmented Strategy to maximize revenue output and create domain expertise Affluent NRI Business Owner Salaried/ Household Rural Domain Domain Domain • Personalized business • Current A/c with Segment solution • FCNR account Transaction Banking and Need • Wealth Management • Remittance efficiency
Slide 14: Segmented Strategy to build Domain Leadership
22% 8.86% 20% NR Highlights Of Bank‘s LCR Book is NR Segment Of total NR Industry Balance Sheet Growth Outward Remittances 12.5k of 1.40 lacs between FY19-22 Market Share (Retail LRS) NR Focused Branch Strategy 24x7 Coverage & Service Segmented Strategy to build Domain • 203 dedicated NRI focused br
Slide 15: Comprehensive Solutions for all merchant types
Comprehensive Solutions for all merchant types Tarakki Ka Khata DIGI CA / DIY Journeys For prosperity Segmented Retail Merchants Handling Payments & Collections Unsecured Loans (LACR) Strategy to build - Digitally (POS / QR / Indus Direct) Domain Leadership Business Owner Solutions for funding needs
Slide 16: Home Markets
Home Markets 17 Cities 19% 36% 27% Geographical Spread Of the Branch Network Of Consumer Deposits Of Consumer Fees Home Markets For IBL Consumer Bank, Home Markets Deposits grew the IBL Home market strategy yielding results with strong growth … fastest across markets … … Playing the density game 155
Slide 17: Initiatives to Scale-up Government Business
Initiatives to Scale-up Government Business by following eco system route to capture “money in motion” Central Government (Delhi) Government Banking Home States Uttarakhand Capital (Dehradun) Capture the “money in motion” by opening the scheme accounts starting Districts with Central Mandate to all
Slide 18: Community Banking focus through Sunrise sectors
Community Banking focus through Sunrise sectors…One Bank solution driven approach ! Economic factors supporting Sunrise segments Focused Sunrise: Ecosystem approach- 10K Opportunity Value Creation - GoI Initiatives • Indian IT/ITES market is • Tap into Eco-system Information 1 Technology projected t
Slide 19: Diamond Bank – Community Banking roadmap
Diamond Bank – one Community Banking that we have started…. the roadmap IBL is market leader and has strong relationships & well entrenched G&J sector contributes 7% to the India’s GDP and employees 5 mn people CAPTURE THE FAMILY HOW WE GAIN AS START WITH THE DMUs EPI-CENTRES COMMUNITY BANK A BANK a
Slide 20: Omni channel, partnerships and alliances fueling client acquisition
#3 Omni channel, partnerships and alliances fueling the client acquisition Thrust on Leveraging Assets base & Launch of digital proposition (INDIE) will lead to 2x New client acquisition Robust Client Aspiration – 2x Client 370 Addressing the issue of Low Customers / Branch Acquisition acquisition b
Slide 21: Strong data intelligence-based relationship management architecture
#4 Raw Data Client 360 Analytical Assets Campaigns & Offers Strong data intelligence-based relationship management architecture for client engagement Internal Data Demographic Transaction Personas – Customer Segmentation Acquisition | Onboarding | Activation Leveraging Data Product Holding NRV Prope
Slide 22: Strong data intelligence-based architecture for better productivity
Pioneer RM & Pioneer Service RM (150 RMs) Biz Owner RM & Service Team (300 RMs) Strong data HNI NR RM & Service Team (300 RMs) intelligence-based architecture for better Upper Mass-Affluent RM • These clients are serviced by dedicated team of ~1700 physical RMs productivity Middle Class i-Sky Virtua
Slide 23: Calibrated growth strategy across Retail Assets & Credit Cards
#5 1 Scaling up Branch & In-House Channel • Asset Servicing Branch distribution expected to increase by 20-30% Calibrated growth in terms of geography coverage • Sourcing through low cost channels, with focus on Digital to improve strategy across Retail CoA Assets & Credit Cards 2 to deepen the exis
Slide 24: Product for every customer segment
Product for every customer segment Calibrated growth strategy across Retail Loan Against Home Loan Property Assets & Credit cards to deepen the client relationship further Offering wide range of products & channels to Loan against serve all strata of customer segment Business Loan Card Receivables V
Slide 25: Retail Loans Performance Highlights
Retail Loans Performance Highlights Retail Assets (Non-Vehicle Finance Portfolio) H1-FY23 Calibrated growth strategy FY-2022 across Retail Assets & FY-2021 Credit cards to deepen the FY-2020 FY-2019 client relationship further FY-2018 FY-2017 With an eye on maintaining FY-2016 yields, optimizing gro
Slide 26: Cards for every customer segment
Cards for every customer segment…an important Brand builder for the Bank Indulge Visa Infinite Calibrated growth Super Heritage World Elite strategy across Retail Premium Celesta Amex Assets & Credit cards to deepen the client Pinnacle E-com rewards relationship further Legend Weekend Rewa
Slide 27: Building on domain expertise in Credit Cards
Spends Spends Market Share % 5,894 4.80% 3.91% Building on domain expertise in Credit 1,307 Cards… Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Sep-22 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Sep-22 5-year CAGR higher than Industry across key Spends CAGR over Sep’17 IBL – 36% | Industry – 27% Spends
Slide 28: Business Banking – well-distributed book and growth momentum
Business Banking - over years, have built a well-distributed book & post COVID, growth momentum is back 7500+ 150+ cities 700+ branches # Asset Clients Geographical Spread Branch Coverage Segment has huge opportunity for building Our loan book mirrored the market granular & profitable franchise… dev
Slide 29: Business Banking poised for the next growth spurt
With our strategic enablers in place, Business Banking is poised for the next growth spurt Going ahead, with strategic focus on…. 1 Digitization Invest in Digital Capabilities to deliver growth and seamless client experience 2 Branch coverage model to enhance distribution In line with the growth str
Slide 30: Continue Customer Responsive Innovations
#6 Continue “Customer Responsive Innovations” to create differentiators in the market CA DIY Account VKYC @ Card, Deposits Account Aggregator Service Fx Portal All-in-1 App WhatsApp Indus Assist 24x7 Video Branch Banking @ Alexa Banking Choice Money My Account Cash on Mobile Finger Print Banking Duo
Slide 31: Recognitions through awards and accolades
…and even though we keep a low profile, recognitions through various awards & accolades follow IndusInd Bank ranks #1 across Banks in the latest GoI MeITY’s Digital Payments Rankings FY22 Financial Express Best Bank Award for Indus Merchant Solutions awarded #1 #4 Best Savings Product Outstanding Di
Slide 32: Creating the right people-first culture
#7 Consumer Bank’s “Bible” - Commitment & Discipline to-dos Inculcating Customer First Attitude Creating the right people-first culture to provide world class client experience Robust framework for Business Etiquettes in place to create a “Customer First Leaders’ Connect Reinforcing & Rewarding Righ
Slide 33: Ongoing process re-engineering for ease of doing business
Consumer Bank Digital Journeys Ongoing process Digital Account Opening: 1 Savings Account re-engineering for Opening Key Impact on CX Metrics Mobile App based account opening ease of doing for seamless & instant AC opening Current Account 2 business and Opening achieve extra- Acquisition Metric Stat
Slide 34: Better customer experience decisions with root-cause analysis
1. Voice of Customer : 2. Detractor Engagement Listening to the customer starts & Service Recovery: from asking two simple questions on Detractors are called and for greater Advocacy & Effort understanding & resolution Better customer experience 4. Root Cause Analysis decisions with & Process Reengi
Slide 35: What our clients say about us – Voice of Customer
What does our clients say about us….”Voice of Customer” The “client litmus” test helps us to Arvind Bali |CEO TSSC| Gurgaon build credibility & “Great on Technology , Service , efficiency & beyond reliability Business. Impressed with the smart team and proactive approach“ https://youtu.be/yffvvJZJBN
Slide 36: Scientific process for Staff Assessment
Scientific process for Staff Assessment Creating the right Quantitative – (55-40%) Branch Managers RH / ZHs people-first culture Liabilities / Assets / Fees / NTBs Build a healthy Franchise Development “Culture” based on Quantitative – (45-60%) transparency, well articulated KPIs, open BSOS Score (S
Slide 37: Career Progression for frontline staff
Continuum – the scientific process for staff career progression Career path Level 3 Level 4 framework based Level 1 Level 2 Service Delivery Key Account RM Senior Banking Sr. Banking BDE BDM RM Partner Partner on performance & Manager Manager Career Progression for defined frontline staff competenci
Slide 38: Building the Next-Gen People Leaders - Rewards & Recognitions
Building the Next-Gen People Leaders - Rewards & Recognitions Have the right employee rewards & recognition program to award a diverse workforce Happy Employees provide the best Customer Experience
Slide 39: Consumer Bank – the way ahead
Consumer Bank – the way ahead 1 Leveraging Digitization Doubling client acquisition by FY24 2 Focus on Domains Focused Segments (NRI) to grow at 2x of IBL Growth & Home markets to reach to 5% market share by FY24 3 Retailization of Deposits LCR book as % of deposits to reach ~45%+ by FY24 4 Assets B
Slide 40: Thank You
THANK \ielu, IndusInd Bank
Slide 41: 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