Indusind Bank Ltd. · NSE:INDUSINDBK
Indusind Bank — Q2 FY2012 Earnings Presentation
27 slides from Indusind Bank's earnings presentation, Oct 18, 2011
Slide 1: Investor Presentation
Investor Presentation Oct 18, 2011
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: Scale with Profitability
Theme for Planning Cycle II - 2011-14 – ‘Invest to grow’ phase Scale with Profitability 3
Slide 4: Planning Cycle II – Pillars of Growth
Planning Cycle II – Pillars of Growth Q2 outcome Loan book to grow 25%-30% p.a.; Loan growth 28% well above market growth. To grow beyond Rs. 25,000 crs by Year 3 CFD book Growing CFD Rs.14,081 crs book To be funded through CASA Growth 44% CASA growth CASA to reach > 35% by Year 3 28% Manage CD
Slide 5: Planning Cycle II – Key Initiatives
Planning Cycle II – Key Initiatives Scale up Investment Credit Cards Full suite Assets Banking practice Launched Portfolio New Client Acquisition Used Commercial Currency Chest Ramp-up Vehicles Factoring & New Branch rollouts CBS rollouts Supply Chain Products 5
Slide 6: How We Measure Up On Key Metrics
How We Measure Up On Key Metrics Net Interest Margin (NIM) RoA RoE* 3.47% 19.49% 19.27% 18.81% 3.41% 1.59% 1.55% 18.41% 3.35% 1.46% 1.14% 2.88% FY10 FY11 Q1FY12 Q2FY12 FY10 FY11 Q1FY12 Q2FY12 FY10 FY11 Q1FY12 Q2FY12 *on average equity Cost to Income Ratio Net NPA Revenue/Employee(Rs. Lacs) 51.12% 1.
Slide 7: Ratings
Ratings ‘ICRA AA’(upgraded from ICRA AA-) for Lower Tier II subordinate debt program and ‘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 Ins
Slide 8: Financial Performance
Financial Performance IndusInd Bank >
Slide 9: Strong Headline Numbers for Q2FY12
Strong Headline Numbers for Q2FY12 Y-o-Y Growth Net Interest Rs 419.20 crs 27% Income Other Income Rs 239.21 crs 37% Revenue Rs 658.40 crs 30% Operating Rs 332.98 crs 27% Profit Net Rs 193.09 crs 45% Profit 9
Slide 10: Top line momentum
Top line momentum Y-o-Y Growth Q-o-Q Growth Advances Rs 30,135 crs 28% 6% CCBG Advances Rs 16,054 crs 17% 2% CFD Advances Rs 14,081 crs 44% 11% Deposits Rs 38,367 crs 23% 9% CASA Rs 10,626 crs 34% 7% 10
Slide 11: Balance Sheet
Balance Sheet (Rs crs) Q2FY12 Q2FY11 Y-o-Y (%) Q1FY12 Q-o-Q (%) Capital & Liabilities Capital 467 461 1% 466 - Reserves and Surplus 3,962 3,352 18% 3,765 5% Deposits 38,367 31,290 23% 35,264 9% Borrowings 5,985 3,632 65% 6,642 (10%) Other Liabilities and Provisions 1,675 2,013 (17%)
Slide 12: Profit and Loss Account (Quarterly)
Profit and Loss Account (Quarterly) (Rs crs) Q2FY12 Q2FY11 Y-o-Y (%) Q1FY12 Q-o-Q (%) Net Interest Income 419.19 329.73 27% 390.01 7% Other Income 239.21 175.12 37% 215.40 11% Total Income 658.40 504.85 30% 605.41 9% Operating Expenses 325.42 243.00 34% 293.69 11% Operating Profit 33
Slide 13: Profit and Loss Account (Half Yearly)
Profit and Loss Account (Half Yearly) (Rs crs) HY 2012 HY 2011 Y-o-Y (%) Net Interest Income 809.21 625.41 29% Other Income 454.61 336.07 35% Total Income 1,263.81 961.48 31% Operating Expenses 619.11 469.03 32% Operating Profit 644.70 492.45 31% Provisions & Contingencies 91.56 105.44 (13
Slide 14: Key Financial Indicators
Key Financial Indicators Q2FY12 Q2FY11 Q1FY12 Return on Assets 1.55% 1.38% 1.59% ROE (On average Equity) 18.81% 20.83% 18.41% Revenue / Staff Cost 5.52 5.17 5.22 Cost / Income Ratio 49.43% 48.13% 48.51% Net Interest Margin 3.35% 3.41% 3.41% Net NPA 0.31% 0.36% 0.30% EPS (annualized, Rs. per share) 1
Slide 15: Well Diversified Loan Book
Well Diversified Loan Book Loan Book (Rs crs) 30,135 26,166 20,551 53% 15,771 56% 55% 43% 44% 47% 57% 45% FY09 FY10 FY11 Q2FY12 Consumer Finance Division Corporate & Commercial Banking (Rs crs) Loan to Small Business Consumer Finance 30 Sep-11 % 9% Comm. Vehicle Loans 6,755 22 Utility Vehicle Commer
Slide 16: Diversified Corporate Loan Book
Diversified Corporate Loan Book As on September 30,2011 NBFCs 5.28% Construction 4.28% Real Estate 2.95% Pharmaceuticals 2.96% Telecom & Related 3.23% Power Generation 1.76% Automobiles Ancillaries 1.44% Gem & Jewellery 1.46% Hospital & Medical Services 1.20% Steel 1.01% Aluminium 1.03% Other Indust
Slide 17: And Improving Liability and CASA
And Improving Liability and CASA Strong management focus on CASA Uptick Building CASA through 12,000 28.2% 33% 26.8% 27.2% 27.7% • New product launches 10,000 24.3% 25.4% 27% 8,000 • Expanding branch network 10,627 6,000 9,331 9,946 21% • Focus on self employed ,small business and 7,959 8,214 4,
Slide 18: Other Income
Other Income (Rs crs) Q2FY12 Q2FY11 Y-o-Y (%) Q1FY12 Q-o-Q(%) Core Fee 211.87 163.14 30% 187.07 13% Securities/MM/FX Trading 23.89 12.16 96% 27.79 (15%) Profit/(Loss) on Other Assets 0.49 (0.18) - 0.54 (9%) Others 2.96 - - -- - Total 239.21 175.12 37% 215.40 11% 18
Slide 19: Diverse Revenues from Core Fee Income
Diverse Revenues from Core Fee Income (Rs crs) Q2FY12 Q2FY11 Y-o-Y(%) Q1FY12 Q-o-Q(%) Trade & Remittances 28.55 22.21 29% 25.49 12% Foreign Exchange Income 52.30 31.65 62% 42.27 24% Distribution Fees 57.08 39.54 44% 52.35 9% (Insurance, MF , Cr. Card ) General Banking Fees 26.85 21.88 23
Slide 20: Yield / Cost Movement
Yield / Cost Movement 13.81% 13.52% 12.10% 10.50% 10.04% 8.84% Yield on Assets 8.16% 7.71% Yield on Advances 7.15% 6.63% 5.99% Cost of Deposits 5.43% Cost of Funds Q2FY12 Q2FY11 Q1FY12 •Yield on Assets/Cost of funds are based on Total Assets/Liabilities Segment-wise Yield Q2FY12 Q1FY12 Outstanding Y
Slide 21: Credit costs
Credit costs (Rs crs) FY08 FY09 FY10 FY11 Q1FY12 Q2FY12 HY FY 12 Corporate Loan Book(CCB) 29.82 78.08 85.86 81.99 15.83 20.06 35.89 Consumer Finance Loan 50.80 82.70 75.77 78.34 22.86 19.86 42.72 Book(CFD) Total Credit Costs 80.62 160.78 161.63 160.33 38.69 39.92 78.61 Credit Costs 63 102 79 61 14 1
Slide 22: Loan Portfolio - Movement in NPA and Restructured Advances
Loan Portfolio - Movement in NPA and Restructured Advances (Rs crs) Q2FY12 Q1FY12 CCB CFD Total CCB CFD Total Gross NPA 104 228 332 94 215 309 Net NPA 8 85 93 7 77 84 % of Gross NPA 1.09% 1.08% % of Net NPA 0.31% 0.30% Provision Coverage Ratio (PCR) 72% 73% Restructured Advances 0.30% 0.37% 22
Slide 23: NPA Composition – CFD - Vehicles
NPA Composition – CFD - Vehicles (Rs crs) Com. Const. Q2-12 Utility 3W TW Cars Vehicle Equip. Gross NPA 72 16 26 17 50 11 Net NPA 22 9 11 12 22 4 Gross NPA % 1.06% 1.58% 1.51% 0.97% 3.77% 1.24% Net NPA % 0.33% 0.85% 0.66% 0.72% 1.69% 0.38% Com. Const. Q1-12 Utility 3W TW Cars Vehicle Equip. Gross NP
Slide 24: CRAR - Basel II
CRAR - Basel II (Rs crs) 30 Sept-11 30 Sep-10 Risk Weighted Assets - Credit Risk 29,828 25,030 - Market Risk 659 458 - Operational Risk 2,408 1,578 - Total RWA 32,896 27,066 Tier I Capital Funds 3,761 3,294 Tier II Capital Funds 949 1,096 Total Capital Funds 4,710 4,390 CRAR 14.32% 16.22% Tier I 11.
Slide 25: Distribution Expansion to Drive Growth
Distribution Expansion to Drive Growth Strengthening Distribution Infrastructure As at, end FY09 FY10 FY11 Q2FY12 Branch Network 180 210 300 350* ATMs 356 497 594 666 *includes 19 specialized branches Branch/Representative Office Strategic Alliance 25
Slide 26: Shareholding Pattern
Shareholding Pattern MFs / Banks/ Insurance Co 7.2% Promoters Individuals 19.5% 9.2% Private Corporates 12.4% NRIs/ Director/ Others GDR issue FIIs 2.6% 13.9% 35.2% As at September 30, 2011 26
Slide 27: Thank you
@D Thank you | IndusInd Bank >