Indusind Bank Ltd. · NSE:INDUSINDBK
Indusind Bank — Q2 FY22 Earnings Presentation
49 slides from Indusind Bank's earnings presentation, Oct 27, 2021
Slide 1: Regulation 30 disclosure covering letter
Induslnd Bank October 27, 2021 National Stock Exchange of India Ltd. (Symbol: INDUSINDBK) BSE Ltd. (Scrip Code: 532187) India Intemationa] Exchange (Scrip Code: 1100027) Singapore Stock Exchange Luxembourg Stock Excl]ange Madam/ Dear Sir, Sub: Disclosure under SEBI (Listing Obligations and Disclosur
Slide 2: Investor Presentation Q2-FY22
Investor Presentation Q2-FY22 | OCTOBER 2021
Slide 3: IndusInd Bank at a Glance
IndusInd Bank at a Glance 5th Largest Private Bank ₹220,808 cr ₹ 275,288 cr 30 mn 5,507 with Disproportionately Loans Deposits Customers Branches/Outlets Large Distribution Network Diversified Across Products and Geographies Across Segments PAN India Network Universal Banking Approach 55:45 Loan Mix
Slide 4: Key Financial Highlights for Q2 FY22
Key Financial Highlights for Q2 FY22 Loans Deposits CASA Term Deposits Total Assets Balance ₹220,808 crores ₹275,288 crores ₹115,863 crores ₹159,425 crores ₹3,80,495 crores Sheet 10% YoY 5% QoQ 21% YoY 3% QoQ 26% YoY 3% QoQ 17% YoY 3% QoQ 15% YoY 2% QoQ Net Interest Income Total Fee Income Revenue O
Slide 5: Balance Sheet
Balance Sheet ₹In Crore Q2FY22 Q2FY21 Y-o-Y (%) Q1FY22 Q-o-Q (%) Capital & Liabilities Capital 774 756 2% 774 - Reserves and Surplus 44,552 38,244 16% 43,774 2% Share Warrant Subscription money - 674 (100%) - - Deposits 275,288 2,27,884 21% 267,233 3% Borrowings 46,295 52,385 (12%)
Slide 6: Profit and Loss Account – Q2 & H1 FY22
Profit and Loss Account – Q2 & H1 FY22 ₹In Crore Q2FY22 Q2FY21 Y-o-Y (%) Q1FY22 Q-o-Q (%) H1FY22 H1FY21 Y-o-Y (%) Net Interest Income 3,658 3,278 12% ▲ 3,564 3% ▲ 7,222 6,587 10% ▲ Other Income 1,838 1,554 18% ▲ 1,788 3% ▲ 3,626 3,075 18% ▲ Total Income 5,496 4,832 14% ▲ 5,352 3% ▲ 10,848 9,662 12%
Slide 7: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 8: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 9: Well Diversified Loan Book across Consumer and Corporate Products
Well Diversified Loan Book across Consumer and Corporate Products Loan Book Mix (₹Crs) 186,395 206,783 212,595 210,727 220,808 (₹Crs) 44% 43% 44% 45% Consumer Banking Sep-21 % 61% Vehicle Finance 59,302 27% 56% 57% 56% 55% Commercial Vehicle 22,598 10% 39% Utility Vehicle 5,214 2% Small CV 2,990 1%
Slide 10: Vehicle Finance: Granular Portfolio Across Vehicle Categories
Vehicle Finance: Granular Portfolio Across Vehicle Categories Overview of Vehicle Finance Division Diversified Vehicle Loan Book across Vehicle Categories (%) Utility Vehicle Two Wheelers 9% 8% Market Leader CV 35+ Years of Vintage Business Owner Segment in Most Products 38% Across Credit Cycles >90
Slide 11: Microfinance: Bridging the Financial Inclusion Gap
Microfinance: Bridging the Financial Inclusion Gap Micro Finance Loan Book (₹Crore) 28,115 26,007 25,944 22,348 22,891 2nd Largest 9mn 1.28 Lacs Villages Micro Finance Women Borrowers covered across 21 Lender States Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Average Ticket Size (₹) 29,564 28,065 28,182
Slide 12: Corporate Portfolio – Focus on Granular, Higher Rated Customers
Corporate Portfolio – Focus on Granular, Higher Rated Customers Corporate Loan Book (₹Crore) Improving Risk Profile * BB+ & Below BBB-, BBB, BBB+ A-, A, A+ AA-, AA, AA+ AAA 99,079 91,018 92,407 88,482 16% 19% 85,427 25% 28% 18% 15% 15% 19% 29% 29% 27% 25% 29% 31% 26% 23% 7% 6% 6% 5% Sep-20 Dec-20 Ma
Slide 13: Non-Vehicle Retail Loans – Risk Calibrated Growth Strategy
Non-Vehicle Retail Loans – Risk Calibrated Growth Strategy Business Banking (₹Crore) Loan Against Property (₹Crore) 11,531 11,575 11,772 11,223 11,031 9,540 9,362 9,003 8,761 8,788 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Credit Cards (₹Crore) Business Loan, Personal Loa
Slide 14: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 15: Deposit Growth Driven by Granular Retail Deposits; Building Stable Low-Cost Deposit Book
Deposit Growth Driven by Granular Retail Deposits; Building Stable Low-Cost Deposit Book Deposits (₹Crore) Retail Deposits as per LCR (₹Crore)* Retail Deposits Share of Retail Deposits (%) 41% 40% 37% 2,67,233 2,75,288 2,55,870 21% YoY 36% 48% YoY 2,39,135 2,27,884 33% 3% QoQ 6% QoQ 1,05,737
Slide 16: Healthy Share of CASA; Strong Liquidity Profile
Healthy Share of CASA; Strong Liquidity Profile CASA (₹Crore) CA (₹Crore) CASA Share of CASA % CA Share of CA % 42% 42% 42% 15% 14% 14% 40% 40% 12% 12% 1,15,863 1,12,349 34,773 35,725 1,06,791 32,313 32,421 32,587 6% YoY 91,846 96,646 26% YoY 1% QoQ 3% QoQ Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2
Slide 17: Borrowings Constituted by Long Term Sources
Borrowings Constituted by Long Term Sources Borrowings (₹Crore) Borrowings Mix (%) Borrowings (₹Cr) % of Total Liabilities Short-Term FCY Infrastructure Borrowings (12 Long-Term FCY Bonds months) Borrowings 4% 16% 17% 4% 14% 14% 13% Euro Medium- 12% Term Notes 52,385 51,323 6% 48,622 49,294 46,295 A
Slide 18: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 19: Strong Product Groups with Efficient Capital Deployment
Strong Product Groups with Efficient Capital Deployment LC-BG Mix Low RWA Consumption (₹Crore) One of the largest LC - Usance treasuries in Indian banks Notional Amount Risk Weighted Assets 18% with best-in-class risk 7,54,374 management systems LC - Sight Financial 13% Guarantees 0.5%# 37% Robu
Slide 20: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 21: Yield / Cost Movement
Yield / Cost Movement Yield on Assets Yield on Advances 11.66% 11.75% Cost of Deposits Cost of Funds 8.44% 8.59% 4.85% 4.97% 4.53% 4.37% •Yield on Assets/Cost of funds are based on Total Assets/Liabilities Q2FY22 Q1FY22 Segment-wise Yield: Q2FY22 Q1FY22 Outstanding (₹Crs) Yield (%) Outstanding (₹Crs
Slide 22: Diversified and Granular Fee and Other Income Streams
Diversified and Granular Fee and Other Income Streams ₹In Crore Q2FY22 Q2FY21 Y-o-Y(%) Q1FY22 Q-o-Q(%) Trade and Remittances 200 152 31% 170 17% Foreign Exchange Income 221 228 (3%) 192 15% Distribution Fees (Third Party Products) 360 323 11% 311 16% General Banking Fees* 234 123 89% 1
Slide 23: Operating Profit Margins Amongst the Highest in Industry
Operating Profit Margins Amongst the Highest in Industry Net Interest Margin (%) Total Fee to Asset Ratio (%) 4.16% 4.12% 4.13% 4.06% 4.07% 2.0% 2.0% 2.1% 2.0% 2.0% Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Operating Profit Margin (%) Cost to Income Ratio (%) 41
Slide 24: Key Financial Indicators
Key Financial Indicators Return on Assets (%) Return on Equity (%) 10.28% 1.29% 9.30% 1.09% 1.17% 8.88% 1.05% 8.35% 7.12% 0.85% Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Earning Per Share – Annualized (₹) Net Worth (₹ Crore) 59.2 42,751 52.6 41,508 42,243 48.4 3
Slide 25: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 26: Movement in Non-Performing Assets
Movement in Non-Performing Assets Q2FY22 Q1FY22 ₹In Crore Corporate Consumer Total Corporate Consumer Total Opening Balance 2,767 3,418 6,186 2,800 2,995 5,795 Fresh Additions 252 2,406 2,658 421 2,342 2,762 Deductions 497 2,101 2,598 452 1,919 2,372 -Write-offs 10 423 433 188 750 938 -Upgrades 64 1
Slide 27: NPA Composition – Consumer Banking
NPA Composition – Consumer Banking (₹Crs) Q2 FY22 CV Utility CE Small CV TW Cars Tractor BBG/LAP HL/PL/Others Cards MFI Total Gross NPA 596 47 107 144 450 92 103 780 245 258 905 3,723 Gross NPA % 2.62% 0.91% 1.24% 4.74% 9.23% 1.15% 1.42% 3.89% 2.56% 5.05% 3.01% 3.02% Q1 FY22 CV Utility CE Small CV T
Slide 28: Loan Related Provisions held as on September 30, 2021
Loan Related Provisions held as on September 30, 2021 Specific provision of ₹3,768 Crs (towards PCR) Floating provisions of ₹70 Crs other than related to COVID-19 (towards PCR) Counter-cyclical provision of ₹635 Crs (towards PCR) Standard contingent provisions of ₹3,178 Crs surplus outside P
Slide 29: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 30: Healthy Capital Adequacy
Healthy Capital Adequacy CET1 Ratio (%) 15.55% 15.59% 15.42% Capital Adequacy 14.50% 14.30% ₹In Crore 30 Sep 21 30 Jun 21 Credit Risk, CVA and UFCE 233,184 229,559 Market Risk 9,286 9,688 Operational Risk 33,120 33,120 Total Risk Weighted Assets 275,590 272,367 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Cor
Slide 31: Shareholding Pattern and Credit Ratings
Shareholding Pattern and Credit Ratings Diversified Shareholding Credit Ratings Domestic Rating: GDR issue CRISIL AA + for Infrastructure Bonds program/Tier 2 Bonds NRIs/ Director/ 8.20 Others Promoters CRISIL AA for Additional Tier 1 Bonds program 2.45 15.18 Individuals CRISIL A1+ for certifi
Slide 32: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 33: Disproportionately Large Distribution Network with Unparalleled Rural Presence
Disproportionately Large Distribution Network with Unparalleled Rural Presence Distribution Network with Deep Rural Presence Strengthening Distribution Infrastructure Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, Particulars 2020 2020 2021 2021 2021 ~30mn ~1,28,000 Branches/Banking Outlets 1,910 1,915 2,0
Slide 34: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 35: Creating future ready tech stacks and platforms
Creating future ready tech stacks and platforms – building cloud native, micro-services based API-led stacks Creating future ready platforms and API stacks leveraging cloud native, micro- Few Platform services based, data driven framework Key Principles Examples … Omni-Channel Chatbots Web Mobile Ca
Slide 36: Digital Business Mix continues to improve
Key Metrics: Digital Business Mix continues to improve and digital engagement continues to intensify Digital Business Mix continues to grow on the 91% of transactions happen digitally back of seamless digital onboarding journeys powered by “IndiaStack” across products of service requests processed S
Slide 37: Launched Indus EasyCredit for Businesses
Launched Indus EasyCredit for Businesses: Focused digital products for SME segment live now Building the “Digital SME Stack” by leveraging microservices Delivering completely digital, assisted and partner based APIs led journeys across channels Easy and simplified product, overdraft up to Rs. 2 cr
Slide 38: Debit Card EMI at Point-of-sale
Introduced Debit Card EMI on IndusInd Bank Debit Cards - a convenient consumer financing solution at Point-of-sale - for IBL’s CASA customers • Extend instant credit accessibility to IBL Debit Card users, making high value purchases affordable • Make IBL Debit Card a more preferred card payment opti
Slide 39: Launched Indus Merchant Solutions on Playstore
Launched Indus Merchant Solutions on Playstore: a unified stack for small retailers Digital Self - Onboarding All your banking needs in one App Payments. Banking. Loans. Accept Manage Get Loans More Payments Banking All in one payment Digital account opening & IndusEasyCredit for Business Performanc
Slide 40: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 41: Our Strategic Elements of Sustainability and ESG
Our Strategic Elements of Sustainability and ESG Human Capital Development GOVERNANCE RESPONSIBLE Direct Links to Key Sustainability Policies Framework to oversee BANKING implementation of Environmental & Social Workplace Health & Safety Policy Responsible sustainable strategies, Governance Bankin
Slide 42: Key ESG Performance Highlights For FY21
Key ESG Performance Highlights For FY21 12 Years of Reporting ~42% * 8.83 Million Bank's GHG Emissions Intensity per The Bank’s carbon footprint on Sustainability of Total Lending ESG Beneficiaries Through Unit Revenue has decreased by per full-time employee (FTE) Initiatives Focused Micro Finance 2
Slide 43: A Few Achievements
A Few Achievements Carbon Disclosure Project Dow Jones Sustainability Index Only Bank in India securing highest Band Only Indian bank and one of the 55 banks A in CDP globally to be included in DJSI's 'The For the 6th consecutive year, the Bank Sustainability Yearbook 2021' retained its top po
Slide 44: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Heathy Disproportionately Executing Digital ESG Experienced Cap
Slide 45: Board of Directors with Varied Expertise
Board of Directors with Varied Expertise Name Nature of Directorship Special Knowledge /Expertise Prior Experience Non-Executive, Non- Previously, CMD of Union Bank of India, Executive Director of Mr. Arun Tiwari Independent, Part-time Banking Allahabad Bank, Various leadership roles at Bank of Baro
Slide 46: Experienced and Well-knit Management Team
Experienced and Well-knit Management Team Name Designation Exp (Yrs) Prior Experience Career banker with years of rich experience in large multi-national banks such as Citibank, Bank of Mr. Sumant Kathpalia Managing Director & CEO 30+ America and ABN AMRO Deputy CEO & Head-Global Markets, Transactio
Slide 47: Awards and Accolades
Awards and Accolades FICCI CSR Awards 2019-20 ASIAMONEY FX Survey 2021 In the category of Environment In the category of Inclusive Development of Sustainability for & PWDs for IndusInd Bank was adjudged as the Market Leader, India Drain Restoration Project, Gurgaon IndusInd Bank Para-Champions Progr
Slide 48: Thank You
THANK YOU IndusInd Bank
Slide 49: 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