Indusind Bank Ltd. · NSE:INDUSINDBK
Indusind Bank — Q1 FY2013 Earnings Presentation
30 slides from Indusind Bank's earnings presentation, Jul 10, 2012
Slide 1: Investor Presentation
Investor Presentation July 10, 2012
Slide 2: Disclaimer
Disclaimer 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. Please also refer to the statement of quarterly financial results required by Indian regulations
Slide 3: IndusInd Bank - Best Mid-Sized Bank Award 2011
Indusind Bank @) Winner of India’s Best Mid-Sized Bank Award - 2011 “BEST BANK - MID SIZE' "BEST MID-SIZED BANK’ BW-PwcC Best Banks Survey of 2011 BT-KPMG Best Banks Survey of 2011
Slide 4: Q1 FY13 Performance Highlights
Steady performance in deteriorating macro economic environment Net Interest Income grew 24% Y-o-Y & 4% Q-o-Q inspite of stressed Money Markets Q1 FY13 PERFORMANCE HIGHLIGHTS Non-Interest Income to revenue remains healthy at 40% Consistent growth in Core Fee Income 44% Y-o-Y & 2% Q-o-Q Cred
Slide 5: Scale with Profitability
Theme for Planning Cycle II - 2011-14 – ‘Invest to grow’ phase Scale with Profitability 5
Slide 6: Planning Cycle II – Pillars of Growth
Planning Cycle II – Pillars of Growth Q1-13 outcome Loan book to grow 25%-30% p.a.; Loan growth 31% well above market growth. Cons. Finance Growing To grow beyond Rs. 25,000 crs by Year 3 book Consumer Rs. 18,761 crs Finance book To be funded through CASA Growth 48% CASA growth CASA to reach > 3
Slide 7: Planning Cycle II – Key Initiatives
Planning Cycle II – Key Initiatives Full suite Assets Scale up Investment Credit Cards Portfolio Banking practice Launched (LAP / Home Loans) New Client Acquisition Used Commercial Offshore branches, Ramp-up Vehicles NRE Deposits Supply New Branch rollouts CBS rollout Chain Products & Currency Chest
Slide 8: How We Measure Up On Key Metrics
How We Measure Up On Key Metrics Net Interest Margin (NIM) RoA RoE* 3.41% 20.00% 20.35% 3.35% 3.25% 3.29% 1.60% 19.12% 3.22% 1.59% 18.41% 18.81% 1.57% 1.55% 1.55% Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 *on average equity Cost to Incom
Slide 9: 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 Fitch AA- for Long Term Debt Instruments by Fitch Ratings
Slide 10: Financial Performance
Financial Performance 7 IndusInd Bank >
Slide 11: Strong Headline Numbers for Q1FY13
Strong Headline Numbers for Q1FY13 Y-o-Y Growth Q-o-Q Growth Net Interest Rs 484.10 crs 24% 4% Income Other Income Rs 318.78 crs 48% 9% Revenue Rs 802.88 crs 33% 6% Operating Rs 404.03 crs 30% 7% Profit Net Rs 236.26 crs 31% 6% Profit 11
Slide 12: Top line momentum
Top line momentum Y-o-Y Growth Q-o-Q Growth Advances Rs 37,245 crs 31% 6% Corporate Advances Rs 18,484 crs 18% 4% Consumer Finance Rs 18,761 crs 48% 9% Advances Deposits Rs 45,076 crs 28% 6% CASA Rs 12,557 crs 26% 9% 12
Slide 13: Balance Sheet
Balance Sheet (Rs crs) Q1FY13 Q1FY12 Y-o-Y (%) Q4FY12 Q-o-Q (%) Capital & Liabilities Capital 469 466 1% 468 - Reserves and Surplus 4,515 3,765 20% 4,274 6% Deposits 45,076 35,264 28% 42,362 6% Borrowings 8,705 6,642 31% 8,682 - Other Liabilities and Provisions 1,947 1,701 14% 1,81
Slide 14: Profit and Loss Account
Profit and Loss Account (Rs crs) Q1FY13 Q1FY12 Y-o-Y (%) Q4FY12 Q-o-Q (%) Net Interest Income 484.10 390.01 24% 464.39 4% Other Income 318.78 215.40 48% 292.05 9% Total Income 802.88 605.41 33% 756.44 6% Operating Expenses 398.85 293.69 36% 377.36 6% Operating Profit 404.03 311.72 30
Slide 15: Key Financial Indicators
Key Financial Indicators Q1FY13 Q1FY12 Q4FY12 Return on Assets 1.57% 1.59% 1.60% ROE (On average equity) 20.35% 18.41% 20.00% Revenue / Staff Cost Multiple 4.96 5.22 5.57 Cost / Income Ratio 49.68% 48.51% 49.88% Net Interest Margin 3.22% 3.41% 3.29% Net NPA 0.27% 0.30% 0.27% EPS (annualized, Rs. per
Slide 16: Well Diversified Loan Book
Well Diversified Loan Book Loan Book (Rs crs) 35,064 37,245 26,166 50% 20,551 51% 56% 60% 49% 50% 44% 40% FY10 FY11 FY12 Jun-12 Consumer Finance Division Corporate & Commercial Banking (Rs crs) (Rs crs) Small Consumer Finance 30 Jun-12 Corporate Banking 30 Jun-12 Corporates 8% Comm. Vehicle Loans 8,
Slide 17: Diversified Corporate Loan Book
Diversified Corporate Loan Book NBFCs (other than HFCs) 4.38% Lease Rental 2.58% Power 2.52% Constn related to infra.- EPC 2.16% Gems and Jewellery 1.72% Steel 1.47% Hosp. & Med. Serv. 1.46% Pharma 1.32% Paper 1.31% Auto Ancillaries 1.07% Other Industry 29.65% 17
Slide 18: Well Rated Corporate Portfolio
Well Rated Corporate Portfolio 32% P 30% E R 28% C 26% E Investment Grade Sub Investment Grade N 24% T 22% O 20% Unsecured Non Fund Based % F 18% Secured Non Fund Based % R 16% A Unsecured Fund Based % 14% T Secured Fund Based % E 12% D 10% P 8% O R 6% T 4% F O 2% L 0% I IB1 IB2+ IB2 IB2- IB3+ IB3 I
Slide 19: Improving CASA profile
Improving CASA profile Building CASA traction CASA Uptick Expanding branch network 14,000 33% 28.2% 27.7% 27.9% Some leverage from SA rate advantage 12,000 27.2% 26.5% 27.3% 27% 10,000 Focus on target market segments 8,000 12,557 10,627 10,757 11,563 21% Government business 6,000 9,331 9,946
Slide 20: Other Income
Other Income (Rs crs) Q1FY13 Q1FY12 Y-o-Y (%) Q4FY12 Q-o-Q(%) Core Fee 269.03 187.07 44% 263.96 2% Securities/MM/FX Trading 49.65 27.79 79% 27.41 81% Others 0.10 0.54 - 0.68 - Total 318.78 215.40 48% 292.05 9% 20
Slide 21: Diverse Revenues from Core Fee Income
Diverse Revenues from Core Fee Income (Rs crs) Q1FY13 Q1FY12 Y-o-Y(%) Q4FY12 Q-o-Q(%) Trade & Remittances 37.28 25.49 46% 30.87 21% Foreign Exchange Income 63.38 42.27 50% 46.04 38% Distribution Fees (Insurance, 56.44 50.57 12% 70.69 (20%) MF,Cr. Card ) General Banking Fees 29.03 25.60 1
Slide 22: Yield / Cost Movement
Yield / Cost Movement 13.95% 13.91% 10.84% 10.56% 8.86% Yield on Assets 8.27% 7.62% Yield on Advances 7.27% Cost of Deposits Cost of Funds Q1FY13 Q4FY12 •Yield on Assets/Cost of funds are based on Total Assets/Liabilities Segment-wise Yield Q1FY13 Q4FY12 Outstanding Yield Outstanding Yield (Rs crs)
Slide 23: Credit costs
Credit costs (Rs crs) FY09 FY10 FY11 FY12 Q4FY12 Q1FY13 Corporate Bank 78.08 85.86 81.99 61.11 15.13 21.41 Consumer Finance 82.70 75.77 78.34 81.46 20.37 23.85 Total Credit Costs 160.78 161.63 160.33 142.57 35.50 45.26 Credit Costs 102 79 61 41 10 12 (Basis Points on Advances) PCR 30% 60% 73% 73% 73
Slide 24: Loan Portfolio - Movement in NPA and Restructured Advances
Loan Portfolio - Movement in NPA and Restructured Advances (Rs crs) Q1FY13 Q4FY12 Corporate Consumer Total Corporate Consumer Total Opening Balance 110 237 347 92 242 334 Additions 51 58 109 21 63 84 Deductions 8 83 91 3 68 71 Gross NPA 153 212 365 110 237 347 Net NPA 36 64 100 12 83 95 % of Gross N
Slide 25: NPA Composition – Consumer Finance - Vehicles
NPA Composition – Consumer Finance - Vehicles (Rs crs) Com. Const. Q1-FY13 Utility Small CV TW Cars Vehicle Equip. Gross NPA 63 13 23 16 56 12 Net NPA 18 2 7 9 23 3 Gross NPA % 0.71% 0.92% 0.99% 0.81% 3.47% 0.76% Net NPA % 0.20% 0.15% 0.31% 0.45% 1.44% 0.19% Com. Const. Q4-FY12 Utility Small CV TW C
Slide 26: CRAR - Basel II
CRAR - Basel II (Rs crs) 30 June-12 30 June-11 Risk Weighted Assets - Credit Risk 37,530 29,313 - Market Risk 997 580 - Operational Risk 3,443 2408 - Total RWA 41,970 32,301 Tier I Capital Funds 4,459 3771 Tier II Capital Funds 937 1071 Total Capital Funds 5,396 4,842 CRAR 12.86% 14.99% Tier I 10.62
Slide 27: Distribution Expansion to Drive Growth
Distribution Expansion to Drive Growth Strengthening Distribution Infrastructure June 30, As at, end FY10 FY11 FY12 2012 Branch Network 210 300 400* 421* ATMs 497 594 692 735 *includes 19 specialized branches Branch/Representative Office Strategic Alliance 27
Slide 28: Shareholding Pattern
Shareholding Pattern MFs / Banks/ Insurance Co 8.7% Promoters Individuals 19.4% 8.7% Private Corporates 13.5% NRIs/ Director/ Others FIIs 1.7% GDR issue 34.2% 13.8% As at June 30, 2012 28
Slide 29: Accolades
ACCOLADES CIO Magazine - Top Green Top 100 CISO (Chief IT Enterprise Award 2012 Information Security Officer) Awards 2012 The CII Environmental Panasonic Green Globe NASSCOM IT User Best Practice Award foundation Award 2012 in Award 2012 for 2012 for the “Most the “Business Enterprise “Environmental
Slide 30: Thank you
D IndusInd Bank >