IndusInd Bank Ltd. · NSE:INDUSINDBK
IndusInd Bank — Q2 FY2009-10 Earnings Presentation
29 slides from IndusInd Bank's earnings presentation, Oct 14, 2009
Slide 1: Investor Presentation
Investor Presentation October 14 2009 1
Slide 2: Safe Harbour
Safe Harbour 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. Actual results may differ materially from those included in these statements due to a variety o
Slide 3: The Presentation Path
The Presentation Path Promise Vs Delivery - Q2-’10 Driving Themes for 2009-10 Financial Results – Q2-’10 3 3
Slide 4: Stated Ambition
Stated Ambition To: REPOSITION IBL to a TOP 3 Performer in the NEW PRIVATE BANK space in 3 YEARS. Measured by: Profitability Productivity Efficiency Measured by: ROA, ROE, NIM, Efficiency, Net NPAs and Revenue per Employee. 4 4
Slide 5: Delivering on the Ambition
Delivering on the Ambition Actual Actual Actual Actual Mar’08 Sep-08 Mar’09 Sep-09 Return on Assets 0.34% 0.54% 0.58% 1.07% Return on Equity 6.76% 9.80% 10.38% 15.01% Net Interest Margin 1.37% 1.68% 1.80% 2.86% Cost to Income Ratio 67.21% 65.45% 59.77% 54.44% Net NPAs 2.27% 2.21% 1.14% 0.98% Revenue
Slide 6: The Presentation Path
The Presentation Path Promise Vs Delivery - Q2-’10 Driving Themes for 2009-10 Financial Results – Q2-’10 6 6
Slide 7: IBL Business Plan 2009-10: Themes
IBL Business Plan 2009-10 : Themes Continue the focus on Productivity, Profitability & Efficiency. Build Customer Propositions – Product & Services Expand Network / Footprint. Image makeover / build the brand. 7 7
Slide 8: The Presentation Path
The Presentation Path Promise Vs Delivery - Q2-’10 Driving Themes for 2009-10 Financial Results – Q2-’10 8 8
Slide 9: Financial Performance Highlights-FY 2009-10
Financial Performance Highlights-FY 2009-10 Net Profit 131% Operating Profit 132% Y-o-Y – Q2 Revenue 76% Net Interest Income 98% Core Fee Income 44% NPA 123 bps 9 9 9
Slide 10: Financial Results
Financial Results (Rs. in Crs.) Q-o-Q Q2-10 Q2-09 Y-o-Y Growth Q1-10 Growth Interest Earned 655.03 549.87 19% Ï 628.83 4% Ï Interest Expended 446.48 444.63 - Ï 461.46 (3%) Ð NII 208.55 105.24 98% Ï 167.37 25% Ï Non-Interest Income 132.35 88.95 49% Ï 172.75 (24%) Ð REVENUE 340.90 194.19 76% Ï 340.12
Slide 11: Balance Sheet
Balance Sheet (Rs. in Crs.) Y-o-Y Q-o-Q 30.09.09 30.09.08 Growth 30.06.09 Growth CAPITAL AND LIABILITIES Capital 410 355 15% Ï 355 15% Ï Reserves and Surplus 1898 1256 51% Ï 1395 36% Ï Deposits 22815 19488 17% Ï 21639 5% Ï Borrowings 1793 2017 (11%) 2341 (23%) Other Liabilities and Provisions 3246 1
Slide 12: Key Financial Indicators
Key Financial Indicators Q2-10 Q2-09 Q1-10 Gross NPA 1.50% 3.00% 1.46% Net NPA 0.98% 2.21% 1.01% NIM 2.86% 1.68% 2.45% ROA 1.07% 0.54% 1.27% ROE 15.01% 9.80% 22.85% EPS (not annualized-Rs. per share) 2.05 0.95 2.44 Revenue/Employee(Rs. in lacs) 28.64 19.74 30.23 Efficiency Ratio 55.44% 65.45% 48.75%
Slide 13: Net Interest Margin
Net Interest Margin(%) NIM – Y-o-Y NIM – Q-o-Q 2.86% 2.86% 2.45% 1.68% Q2-PY Q2-CY Q1-CY Q2-CY Improvement in NIM on account of better management of Yield on Advances and Cost of Deposits 13 13
Slide 14: Yield on Advances
Yield on Advances Y-o-Y Q-o-Q 13.37% 13.08% 13.08% 12.52% Q2-PY Q2-CY Q1-CY Q2-CY Increase in yield by 56 bps Y-o-Y 14 14
Slide 15: Cost of Deposits
Cost of Deposits Y-o-Y Q-o-Q 7.88% 7.65% 7.19% 7.19% Q2-PY Q2-CY Q1-CY Q2-CY Decrease in Cost of Deposit by 69 bps Y-o-Y 15 15
Slide 16: Net Interest Income (NII)
Net Interest Income (NII) Rs. in crs Y-0-Y 98% Consistent growth in NII in last 5 quarters 16 16
Slide 17: Other Income
Other Income (Rs. in Crs.) Y-o-Y Q-o-Q Q2-10 Q2-09 Growth Q1-10 Growth Fee & FX 128.87 89.67 44% Ï 94.02 37% Ï Securities/MM Market 9.14 2.50 266% Ï 86.76 (90%) Ð Profit/(Loss) on sale of assets (7.67) (6.53) - - (8.56) - - NPA Recovery 2.02 3.31 (39%) Ð 0.50 304% Ï Total 132.36 88.95 49% Ï 172.75 (
Slide 18: Core (Client) Fee Income
Core (Client) Fee Income (Rs. in Crs.) Y-o-Y Q-o-Q Q2-10 Q2-09 Growth Q1-10 Growth Trade Fees (LC, BG, Remittances) 13.13 11.17 18% Ï 10.42 26% Ï Processing Fees & other charges 23.53 16.66 41% Ï 21.50 9% Ï FX – Exchange Profit 26.07 14.89 75% Ï 17.38 50% Ï Insurance 28.24 18.19 55% Ï 17.15 65% Ï Mu
Slide 19: Operating Expenses
Operating Expenses (Rs. in Crs.) Y-o-Y Q-o-Q Q2-10 Q2-09 Growth Q1-10 Growth Payment to employees 78.85 44.72 76% 60.79 30% Other Operating Expenses 106.73 82.38 30% 105.02 2% Total Operating Expenses 185.58 127.10 46% 165.81 12% No. of employees 4762 3936 21% 4500 6% 19 19 19
Slide 20: Gross/Net NPAs
Gross/Net NPAs N et N PA < 1% Improvement in Quality of Asset Book 20 20
Slide 21: Movement in NPA
Movement in NPA Q2-10 Q2-09 (INR in crs) CCB CFD Total CCB CFD Total Opening Balance 56.41 184.69 241.10 229.56 201.68 431.24 Additions 33.89 51.14 85.03 5.43 46.15 51.58 Deduction 4.21 56.80 61.01 8.90 49.39 58.29 Gross NPA 86.08 179.03 265.11 226.09 198.44 424.53 Provisions 59.61 33.73 93.34 60.04
Slide 22: NPA Composition - CFD
NPA Composition - CFD (Rs. in Crs.) Com. Const. Vehicle Utility Equip. 3W TW Cars TOTAL Gross NPA 75 10 19 5 46 25 179 Net NPA 61 8 16 4 37 20 145 Gross NPA(%) 2.04 1.63 1.81 0.58 5.57 5.31 2.37 Net NPA(%) 1.66 1.29 1.57 0.47 4.53 4.29 1.93 22 22 22
Slide 23: Restructured Advances
Restructured Advances (Rs. in Crs.) Q2-10 Q2-09 Q1-10 No. Rs. in crs No. Rs. in crs No. Rs. in crs Restructured Loans 105 72 2 1.39 116 76 Advances 17583 14049 16452 % Restructured Loans 0.41% - 0.46% No new restructuring undertaken in Q2-10 23 23 23
Slide 24: Loan Portfolio – Composition
Loan Portfolio – Composition (Rs. in Crs.) Consumer Finance 30/09/2009 % Comm. Vehicle Loans 3689 21% Utility Vehicle Loans 584 3% Three Wheeler Loans 797 5% Auto Loans Personal 1311 8% Equipment Financing 1035 6% Home Loans 160 1% Total Advances 7576 43% (Rs. in Crs.) Corp. & Comm. Bkg. Advances 30
Slide 25: Comparative analysis of CRAR under Basel I & Basel II
Comparative analysis of CRAR under Basel I & Basel II (Rs. in Crs.) Basel I Basel II Credit Risk RWA 21127 18015 Market Risk RWA 280 280 Operational Risk RWA 0 1095 Total Risk Weighted Assets 21406 19390 Tier I 2062 2062 Tier II 830 830 Total Capital 2892 2892 CRAR 13.51 14.91 Tier I 9.63 10.64 Tier
Slide 26: Improved CASA
Improved CASA 4,842 3,496 - o-Y %Y 39 21% 18% Q2-PY Q2-CY 26 26 26
Slide 27: Our Network
Our Network 30/09/09 30/09/08 Branches 180 180 ATMs 402 356 Branch/Representative Office Strategic Alliance 30 new Branches by December . 27 27
Slide 28: Share-Holding Pattern – 30/09/09
Share-Holding Pattern – 30/09/09 28 28
Slide 29: Thank you
Indusind Bank GY Thank you