IndusInd Bank Ltd. · NSE:INDUSINDBK

IndusInd Bank — CLSA India Conference 2017

29 slides from IndusInd Bank's conference presentation, Nov 13, 2017

  1. Slide 1: Regulation 30 disclosure cover letter to exchanges

    CIN: L65191PN1994PLC076333 Indusind Bank November 14, 2017 The Asst. Vice President The Deputy General Manager Listing Department Corporate Relationship Dept. National Stock Exchange of India Ltd. BSE Ltd. Exchange Plaza, 5“ Floor 1 Floor, New Trading Ring Plot No.C/1, G Block Rotunda Building, P. J

  2. Slide 2: Past Reflections and Future Ambitions

    Past Reflections and Future Ambitions Presentation at CLSA India Conference November 13, 2017

  3. Slide 3: Started with a Set of Management Beliefs

    Started with a Set of Management Beliefs  Universal Banking: All products and services for target market  Strategize once, Execute daily  Differentiation through Responsive Innovation  Liability Driven Strategies for Balanced Growth  Effective use of Technology: To Find, Serve and Engage custom

  4. Slide 4: Staging of the Growth Strategy: 3-Year Planning Cycles

    Staging of the Growth Strategy: Business Plans Split into 3-Year Planning Cycles (PC) 3

  5. Slide 5: PC 1 (FY 09-11) – Restoring Health and Profitability

    PC 1 (FY 09-11) – Restoring Health and Profitability Select Focus Areas Centralize Risk with Right Pricing Book Capital Light Distribution Businesses Liability & Fee Driven Branch Franchise Ring Fence Great Business: Vehicles Re-talent & Performance Manage 4

  6. Slide 6: PC 1 (FY 09-11) – Key Performance Vectors

    PC 1 (FY 09-11) – Key Performance Vectors NIM (%) RoA (%) RoE (%) 3.47 1.46 19.30 1.53 6.80 0.34 FY08 FY11 FY08 FY11 FY08 FY11 Cost-to-Income (%) NNPA (%) Revenue per Employee (Rs lac) 67.20 2.27 30 48.30 21 0.28 FY08 FY11 FY08 FY11 FY08 FY11 5

  7. Slide 7: PC 2 (FY 12-14) – Scale With Profitability

    PC 2 (FY 12-14) – Scale With Profitability 1 To be No. in terms of Select Focus Areas ROA ROE NIM Scale Up e.g. Used CV, Investment Banking Create Boosters: LAP, Cards, Mortgages Invest to grow… Double2  Profits Capacity Creation: Capital, CBS, Network  Clients  Branches Revamped Global Market

  8. Slide 8: PC 2 (FY 12-14) – Key Performance Vectors

    PC 2 (FY 12-14) – Key Performance Vectors NIM (%) RoA (%) RoE (%) 3.71 19.30 QIP – Rs 1.81 2000 crs 17.49 3.47 1.46 FY11 FY14 FY11 FY14 FY11 FY14 Cost-to-Income (%) NNPA (%) Revenue per Employee (Rs lac) 48.30 0.33 31 0.28 30 45.71 FY11 FY14 FY11 FY14 FY11 FY14 7

  9. Slide 9: PC 3 (FY 15-17) – 3D To Double The Bank

    PC 3 (FY 15-17) – 3D To Double The Bank Select Focus Areas Non-Vehicle Retail Assets Home Markets Development Corporate Bank Specialist Verticals Acquisition of Diamond Portfolio Digitization of Businesses 8

  10. Slide 10: PC 3 (FY 15-17) – Key Performance Vectors

    PC 3 (FY 15-17) – Key Performance Vectors NIM (%) RoA (%) RoE (%) 1.86 17.49 QIP & Pref. 3.99 Allot. 15.26 Rs 5,081crs 3.71 1.81 FY14 FY17 FY14 FY17 FY14 FY17 Cost-to-Income (%) NNPA (%) Revenue per Employee (Rs lac) 47.10 0.39 40 46.74 0.33 31 FY14 FY17 FY14 FY17 FY14 FY17 9

  11. Slide 11: IndusInd Bank Journey: Delivered Scale with Profitability

    Last 10 Year IndusInd Bank Journey: Delivered Scale with Profitability 10

  12. Slide 12: Key P&L & Balance Sheet Parameters

    Key P&L & Balance Sheet Parameters Revenue (Rs cr) Net Profit (Rs cr) Networth (Rs cr) 10,234 2,868 20,272 CAGR of 37% CAGR of 50% CAGR of 38% 598 75 1,110 2008 2017 2008 2017 2008 2017 Deposits (Rs cr) CASA (% of Deposits) Advances (Rs. Cr) 1,26,572 36.90% 1,13,081 CAGR of 23% CAGR of 27% 15.70% 19

  13. Slide 13: Key Performance Vectors

    Key Performance Vectors NIM (%) RoA (%) RoE (%) 4.00 1.90 16.48 1.53 6.80 0.34 FY08 Q2FY18 FY08 Q2FY18 FY08 Q2FY18 Cost-to-Income (%) NNPA (%) Revenue per Employee (Rs lac) 67.20 2.27 48 45.70 21 0.44 FY08 Q2FY18 FY08 Q2FY18 FY08 Q2FY18 12

  14. Slide 14: PC 4 (FY 18-20) Strategy

    PC 4 (FY 18-20) Strategy ae 8 Indusind Bank

  15. Slide 15: PC 4 (FY 18-20) – Ambition: 4D To Double the Bank

    PC 4 (FY 18-20) – Ambition 4D To Double the Bank in terms of  Clients  Loans  Profits 14

  16. Slide 16: PC 4 (FY 18-20) – Broad Themes

    PC 4 (FY 18-20) – Strategy Planning Cycle 4 (2017–20) Market Share with Profitability Do More of the Same Strategy Digitize to Differentiate, Diversify and Create Domain Leadership Financing Livelihoods Broad Themes Finding Customers from Within Reengineering Our Businesses Sustainable Banking 15

  17. Slide 17: PC 4 (FY 18-20) – Pillars of Growth

    PC 4 (FY 18-20) – Pillars of Growth Planning Cycle 4 (2017–20) Loan Growth 25% - 30% CASA Ratio 40% Exceed Balance Sheet Resulting in Revenue Growth Growth RoRWA > 2.4% Branch Network 2,000 Customer Base Double to >20mn 16

  18. Slide 18: What is Attracting Management Attention? Scaling Proven Verticals

    What is Attracting Management Attention?  Scaling Proven Verticals  Vehicle Finance  Non-Vehicle Retail Products  Microfinance  Investment Banking  Treasury 17

  19. Slide 19: What is Attracting Management Attention? New Leadership Domains

    What is Attracting Management Attention?  Search for New Leadership Domains Vehicle Finance Diamond Financing ? Microfinance ? 18

  20. Slide 20: What is Attracting Management Attention? Manufacture vs. Distribute

    What is Attracting Management Attention?  Manufacture vs. Distribute  Insurance  Wealth Management 19

  21. Slide 21: What is Attracting Management Attention? Future Growth Hotspots

    What is Attracting Management Attention?  Turning up in Future Growth Hotspots  Consumer Digital Lending  Affordable Housing 20

  22. Slide 22: What is Attracting Management Attention? Enhanced X-Sell

    What is Attracting Management Attention?  Enhanced X-Sell  Consumer with Vehicle  Corporate with Consumer 21

  23. Slide 23: What is Attracting Management Attention? Organisational Efficiency

    What is Attracting Management Attention?  Improving Organisational Efficiency  Reducing Funding Costs  Optimising Organisational Structures  Branch Re-design 22

  24. Slide 24: What is Attracting Management Attention? Digitization of Businesses

    What is Attracting Management Attention?  Digitization of Businesses  Enriching Client Experience  Online Ecosystem Partnerships  Responsive Innovation 23

  25. Slide 25: What is Attracting Management Attention? Adding Qualitative Aspects

    What is Attracting Management Attention?  Adding Qualitative Aspects  Sustainable Practices  Integrated Reporting  Impact Lending 24

  26. Slide 26: What is Attracting Management Attention? Rural India

    What is Attracting Management Attention?  Covering the New Frontier – Rural India  Bridging the Rural Last Mile  New Branch Outlet Strategy  Leveraging the Government Infrastructure  Completing Bharat Financial Inclusion Merger 25

  27. Slide 27: Key Learnings From Our Journey

    Key Learnings From Our Journey 26

  28. Slide 28: Key Learnings

    Key Learnings  Getting it right more important than being there first  Risk Management – Centralised vs. De-centralised  Importance of Managing Operational Risk  Organisational Agility a Strategic Imperative 27

  29. Slide 29: Thank You

    Thank You

IndusInd Bank — CLSA India Conference 2017 on 6ix