Indusind Bank Ltd. · NSE:INDUSINDBK
Indusind Bank — Q1 FY2021 Earnings Presentation
33 slides from Indusind Bank's earnings presentation, Jul 28, 2020
Slide 1: Disclosure to stock exchanges cover letter
A Indusind Bank July 28, 2020 National Stock Exchange of India Ltd (Symbol: INDUSINDBKk) BSE Ltd. (Scrip Code: 532187) India International Exchange (Scrip Code: 1100027) Madam / Dear Sir, Subject: Disclosure under SEBIL (Listing Qbligations__and Disclosure Requirements) Regulations, 2015 (Listing Re
Slide 2: Investor Presentation Q1-2020-21
Investor Presentation Q1-2020-21 July 28, 2020
Slide 3: Q1 – FY21 Performance Highlights
PPOP at Rs 2,928 crs, grew by 13% YoY; 2% QoQ ; PPOP at 3.95% amongst the industry highest NII up by 16% YoY ; 2% QoQ Q1 – FY21 Performance Highlights NIM at 4.28% up by 23 bps YoY and 3 bps sequentially Consol PAT at Rs. 510 crs after Covid provisions of Rs. 920 crs Credit growth 2% YoY a
Slide 4: Q1 FY Outcome
Q1 FY 21 Outcome Q1 FY21 Outcome Loan Growth 2% CASA Ratio 40% Revenue Resulting in 7% Growth RoRWA 0.78% Distribution 4,853* Points Customer Base 26 million * includes 150 banking outlets 3
Slide 5: How We Measure Up On Key Metrics
How We Measure Up On Key Metrics Net Interest Margin (NIM) RoA RoE 4.25% 4.28% 18.45% 17.26% 4.05% 4.10% 4.15% 2.05% 15.62% 1.98% 1.82% 0.69% 5.86% 0.42% 3.69% Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Cost / Income Net NPA Revenue / Emp
Slide 6: Ratings
Ratings Domestic Rating: CRISIL AA + for Infra Bonds program CRISIL AA for Additional Tier I Bonds program CRISIL A1+ for certificate of deposit program / short term FD programme IND AA+ for Senior bonds program by India Ratings and Research IND AA for Additional Tier I Bonds program by In
Slide 7: Consolidated Financial Performance
Consolidated Financial Performance 6
Slide 8: Steady Headline Numbers for Q1 FY21
Steady Headline Numbers for Q1 FY21 Y-o-Y Growth Q-o-Q Growth Net Interest Rs. 3,309 crs 16% 2% Income Total Fee Income Rs. 1,520 crs (9%) (14%) Revenue Rs. 4,830 crs 7% (3%) Operating Profit Rs. 2,928 crs 13% 2% Net Profit Rs. 510 crs (64%) 62% 7
Slide 9: Top line momentum
Top line momentum Y-o-Y Growth Q-o-Q Growth Advances Rs. 1,98,069 crs 2% (4%) Deposits Rs. 2,11,265 crs 5% 5% CASA Rs. 84,473 crs (2%) 4% TD Rs. 1,26,791 crs 11% 5% Borrowings Rs. 59,196 crs 19% (3%) 8
Slide 10: Balance Sheet
Balance Sheet (Rs Crs) * Q1FY21 Q1FY20 Y-o-Y (%) Q4FY20 Q-o-Q (%) Capital & Liabilities Capital 694 693 - 694 - Reserves and Surplus 34,134 31,365 9% 33,381 2% Share Warrant Subscription money 674 - - 674 - Deposits 2,11,265 2,00,586 5% 2,02,027 5% Borrowings 59,196 49,764 19% 60,7
Slide 11: Profit and Loss Account – Q1 FY21
Profit and Loss Account – Q1 FY21 (Rs Crs) Q1FY21 Q1FY20 Y-o-Y (%) Q4FY20 Q-o-Q (%) Net Interest Income 3,310 2,844 16% ▲ 3,232 2% ▲ Other Income 1,520 1,663 (9%) ▼ 1,773 (14%) ▼ Total Income 4,830 4,507 7% ▲ 5,005 (3%) ▼ Operating Expenses 1,902 1,916 (1%) ▼ 2,148 (11%) ▼ Operating Profit 2,928 2,5
Slide 12: Key Financial Indicators
Key Financial Indicators Q1FY21 Q1FY20 Q4FY20 Return on Assets 0.69% 2.05% 0.42% PPOP / Average Assets 3.95% 3.78% 3.84% Return on Equity 5.86% 18.45% 3.69% Cost / Income Ratio 39.38% 42.52% 42.90% Net Interest Margin 4.28% 4.05% 4.25% Net NPA 0.86% 1.23% 0.91% EPS (annualized, Rs. per share) 29.44
Slide 13: Well Diversified Loan Book
Well Diversified Loan Book Loan Book (Rs crs) 206,783 198,069 186,394 144,954 44% 42% 61% 60% (Rs crs) 56% 58% Consumer Finance Jun-20 40% 39% Vehicle Loans 57,506 29% FY18 FY19 FY20 Jun-20 Comm. Vehicle Loans 23,737 12% FY18 and FY19 are not Consumer Finance Corporate & Commercial Banking Utility V
Slide 14: Diversified Corporate Loan Book
Diversified Corporate Loan Book Sector % Lease Rental 4.35% Real Estate - Commercial and Residential 3.67% Steel 3.14% Gems and Jewellery 3.08% NBFCs (other than HFCs ) 2.56% Power Generation – Renewable 1.45% Telecom- Cellular 1.26% Housing Finance Companies 1.20% Services 1.13% Food Beverages and
Slide 15: BBB Fund and Non Fund Exposures
BBB Fund and Non Fund Exposures The Bank’s BBB exposures are granular / well collateralised with 5 year average slippages of 0.4% (excluding one large infra group NPA) The book includes certain portfolios such as RE, LRD and G&J which inherently get a BBB rating but have shown good credit outcom
Slide 16: Microfinance Recovery Trend
Microfinance Recovery Trend Center Meetings Conducted % Collection Efficiency % 86% 96% 96% 82% 93% 95% 87% 73% 67% 71% 57% 47% 36% 24% 15% 12% 8% 3% Week 7 Week 8 Week 9 Week 10Week 11Week 12Week 13Week 14Week 15 Week 7 Week 8 Week 9 Week 10Week 11Week 12Week 13Week 14Week 15 04th to 29th June 04th
Slide 17: Well Rated Corporate Portfolio
Well Rated Corporate Portfolio P 24% E R Investment Grade Sub Investment Grade 22% C E 20% N T 18% O 16% Unsecured Non Fund Based % F Secured Non Fund Based % 14% R Unsecured Fund Based % A 12% Secured Fund Based % T E 10% D 8% P O 6% R T 4% F O 2% L I 0% O IB1 (AAA) IB2+ IB2 (AA) IB2- (AA-) IB3+ (A
Slide 18: Improving CASA profile
Improving CASA profile Building CASA traction Expanding branch network CASA 95,000 50% Focus on target market segments 43.1% 43.1% 41.5% 42.4% 90,000 40.4% 40.0% 44% Government business 85,000 38% 80,000 91,865 Capital market flows 75,000 84,070 86,539 85,838 84,473 33% 81,557 Key Non Resi
Slide 19: Other Income
Other Income (Rs Crs) Q1FY21 Q1FY20 Y-o-Y (%) Q4FY20 Q-o-Q (%) Core Fee 682 1,422 (52%) ▼ 1,390 (51%) ▼ Securities/MM/FX 838 241 248% 383 119% Trading/Others Total 1,520 1,663 (9%) ▼ 1,773 (14%) ▼ 18
Slide 20: Diverse Revenues from Core Fee Income
Diverse Revenues from Core Fee Income (Rs Crs) Q1FY21 Q1FY20 Y-o-Y(%) Q4FY20 Q-o-Q(%) Trade and Remittances 116 164 (29%) 189 (38%) Foreign Exchange Income 155 250 (38%) 248 (37%) Distribution Fees (Insurance, MF, 174 302 (42%) 367 (53%) Cards) General Banking Fees 70 90 (22%) 80 (12%)
Slide 21: Diversified and Granular Fee Streams – Q1 FY21
Diversified and Granular Fee Streams – Q1 FY21 Corporate Banking Consumer Banking Trading and Other Income (18%) (27%) (55%) Trade and Remittances , 6% Foreign Exchange, 3% Investment Banking - Trade and Remittances , 1% Project Finance / Investment Banking - Advisory, 0% Loan Syndication, 0% Invest
Slide 22: Yield / Cost Movement
Yield / Cost Movement 11.85% 11.89% 9.38% 9.77% Yield on Assets Yield on Advances 5.73% 6.05% 5.52% Cost of Deposits 5.10% Cost of Funds Q1FY21 Q4FY20 •Yield on Assets/Cost of funds are based on Total Assets/Liabilities Segment-wise Yield Q1FY21 Q4FY20 Outstanding Yield Outstanding Yield (Rs crs) (%
Slide 23: Provisions held on June 2020
Provisions held on 30 June 2020 Specific provision of Rs. 2,566 crs related to non-performing loans Provision of Rs. 1,203 crs related to COVID-19 Floating provisions of Rs. 70 crs other than related to COVID-19 Standard asset provision of Rs. 922 crs other than related to COVID-19 Other p
Slide 24: Credit Cost
Credit Cost (Rs Crs) FY16 FY17 FY18 FY19 FY20 Q4FY20 Q1FY21 Corporate Bank 258 401 468 2,134 1,893 1,442 907 Consumer Finance 244 303 433 585 1,136 344 259 Gross Credit Costs 502 704 901 2,719 3,029 1,786 1,166 Gross Credit Costs 57 62 62 146 146 86 59 (Basis Points on Advances) Net Credit Cost 468
Slide 25: Loan Portfolio - Movement in NPA and Restructured Advances
Loan Portfolio - Movement in NPA and Restructured Advances (Rs Crs) Q1FY21 Q4FY20 Corporate Consumer Total Corporate Consumer Total Opening Balance 3,416 1,731 5,147 3,050 1,528 4,578 Additions 1,225(1) 312 1,537 1,249 808 2,058 Deductions 1,253(2) 332 1,585 884 606 1,490 Gross NPA 3,388 1,711 5099*
Slide 26: NPA Composition – Consumer Finance
NPA Composition – Consumer Finance (Rs Crs) Com. Const. Small HL/PL/O Q1 FY21 Utility TW Cars Tractor BBG/LAP Cards MFI Total Vehicle Equip. CV thers Gross NPA 524 51 90 66 154 58 67 253 43 38 367 1,711 Gross NPA % 2.19% 1.16% 1.11% 1.82% 2.62% 0.80% 1.43% 1.23% 0.54% 0.79% 1.55% 1.48% Com. Const. S
Slide 27: Strong Balance Sheet & Profitability Buffers in Place
Strong Balance Sheet & Profitability Buffers in Place Capital Adequacy Pre Provision Operating Profit Margin (Rs Crs) 10.0% PBT / Loans Total Provisions / Loans PPOP / Loans 30 Jun 20 31 Mar 20 9.0% 8.0% Credit Risk, CVA and UFCE 222,384 222,175 7.0% 5.9% 6.0% 5.2% Market Risk 10,985 8,077 5.0% 4.6%
Slide 28: Distribution Expansion to Drive Growth
Distribution Expansion to Drive Growth Strengthening Distribution Infrastructure Sep 30, Dec 31, Mar 31, Jun 30, Particulars 2019 2019 2020 2020 Branches/Banking Outlets 1,753 1,851 1,911 1,911* BFIL Branches 2,028 2,163 2,071 2,088 Vehicle Finance Marketing 842 859 853 854 Outlets Total 4,623 4,873
Slide 29: Shareholding Pattern
Shareholding Pattern June 30, 2020 (Basis Paid Up Capital) MFs / Banks/ Promoters # Insurance Co 13.31% 13.38% Individuals 9.43% Private Corporates 4.14% NRIs/ Director/ Others 3.29% GDR issue 9.15% FIIs* 47.30% *includes FPIs # 14.94% with diluted capital including warrants/ESOP 28
Slide 30: Accolades
Accolades 29 IndusiInd Bank
Slide 31: Accolades
Accolades IndusInd Bank is presented with 2 IndusInd Bank is awarded with the Infosys Finacle Client Innovations awards at the Finacle Innovations Awards 2020 for Alexa and Chatbot Awards 2020 for technology Implementations implementations • Product Innovation • Transformation Excellence 30
Slide 32: Thank You
Thank You \) IndusiInd Bank 31
Slide 33: 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