Indusind Bank Ltd. · NSE:INDUSINDBK
Indusind Bank — Investor Presentation (August 2010)
40 slides from Indusind Bank's investor presentation, August 2010
Slide 1: IndusInd Bank August 2010
Indusind Bank @&® August 2010
Slide 2: Disclaimer
Disclaimer This presentation is strictly confidential and may not be copied, published, distributed or transmitted. The information in this presentation is being provided by IndusInd Bank Limited (the “Bank”). This presentation has been prepared for information purposes only and is not an offer or i
Slide 3: Overview
Overview Indusind Bank
Slide 4: A New Private Sector Bank
A New Private Sector Bank Overview Incorporated in 1994 Widespread & loyal customer base of ~ 2.1 million as at June 30, 2010 Pan India presence through a network of 224 branches, 514 marketing outlets, 533 ATMs, representative offices in Dubai and London and strategic alliances in UAE and Qat
Slide 5: With over 16 years of Operating History
With over 16 years of Operating History Awarded the “Best Priority Sector Bank” amongst the private sector banks by Dun & Bradstreet Tier II Issue – raised Rs. 4200 million in April 2010 Awarded the „Technology Bank of the Year-2009‟ from IBA 2010 “Excellence Award‟, the 2nd best new generat
Slide 6: Distinguished Board
Distinguished Board Name Designation Occupation Mr. R. Seshasayee Chairman Managing Director of Ashok Leyland Ltd. Mr. Romesh Sobti Whole-time Director Managing Director & CEO Mr. T. Anantha Narayanan Independent, Non-executive Retired as Executive Director (Finance) of Ashok Leyland Ltd. Dr.
Slide 7: New Execution-focused Management
New Execution-focused Management Management Team Designation Previous Assignments Executive Vice President – Country Executive, India and Head, UAE & Sub-continent at ABN AMRO bank N.V. Romesh Sobti Managing Director & CEO Has been associated with ANZ Grindlays Bank plc & State Bank of India in
Slide 8: Planning Cycle I: 2008-11
Planning) Gycleth 2Z0067I4) Indusind Bank
Slide 9: Themes for Planning Cycle: 2008-11
Themes for Planning Cycle: 2008-11 Mission & Measurable Targets Business Segments reorganized Focus on Productivity, Profitability & Efficiency New Products & Services to ensure strong customer proposition Expand Network / Footprint Image Makeover / Build the Brand Invest in Technology
Slide 10: Stated Ambition with Measurable Targets
Stated Ambition with Measurable Targets Mission Statement To position IndusInd Bank as a Top 3 performer in the new private sector bank space in 3 years RoA Profitability RoE Measured By Objectives Net Interest Margins Productivity Cost to Income Ratio Revenue per Employee Efficiency Net NPAs 10
Slide 11: Business Units
Business Units Global Markets Transaction Banking Product Groups Client Groups Consumer Banking Corp. & Commercial Banking Corporate & Consumer Finance Investment Banking Retail Liabilities Commercial Banking Banking Channel Management Business Banking & Services Wealth Management & Financial Instit
Slide 12: Distribution Expansion to Drive Growth
Distribution Expansion to Drive Growth Strengthening Distribution infrastructure As at, end FY08 FY09 FY10 Q1FY11 Branch Network 180 180 210 224 ATMs 336 356 497 533 Marketing Outlets 410 410 499 514 Regulatory clearances for 113 new branches are in place Branch/Representative Office Strategic Allia
Slide 13: Build up of Competent Workforce to Steer Growth
Build up of Competent Workforce to Steer Growth Ramped up work force (specially client-facing) to match business expansion initiatives Pool drawn from peer banks and foreign banks Variable pay structure introduced in line with industry practices Increasing Net Profits and No. of Employees on P
Slide 14: Revamped Risk Organisation
Revamped Risk Organisation Risk Organisation Credit Approval & Market Risk Mgmt Operational Risk Fin Restr & CQA & Loan Credit Risk Mgmt Monitoring & ALM Mgmt Reconstnn Review Credit Appraisal/ Risk Rating Models Proactive Risk and Control Separate group Quality check on Approval process
Slide 15: Continuous Process Improvement
Continuous Process Improvement Centralization / Standardization Initiatives Sustainable Environment – Green Banking Launched a front end Branch Banking platform Ethos of a “responsible corporate citizen” permeates entire bank; Image based work flow solution for consumer and trade finance chang
Slide 16: Recognition for our Performance
Recognition for our Performance Awards & Recognition Awarded the “Best Priority Sector Bank” amongst the private sector banks by Dun & Bradstreet Received the „Technology Bank of the Year-2009‟ award from the Indian Banks‟ Association (IBA) The State Forum of Bankers‟ Clubs, Kerala, bestowed o
Slide 17: How we Measure Up on Key Metrics
How we Measure Up on Key Metrics Net Interest Margin (NIM) RoA RoE 3.3% 1.3% 2.9% 1.1% 20.7% 16.2% 1.8% 1.4% 0.6% 10.4% 6.8% 0.3% FY08 FY09 FY10 Q1FY11 FY08 FY09 FY10 Q1FY11 FY08 FY09 FY10 Q1FY11 Cost to Income Ratio Net NPA Revenue/Employee (Rs Mn) 2.3% 3.1 67.2% 59.8% 2.7 51.1% 49.5% 2.2 2.1 1.1%
Slide 18: How we Measure Up on Key Metrics
How we Measure Up on Key Metrics Net Interest Margin (NIM) RoA RoE 3.2% 3.3% 1.3% 22.8% 1.3% 20.7% 2.9% 2.9% 1.2% 1.1% 1.1% 18.1% 2.5% 16.4% 2.3% 15.0% 14.1% 0.8% Q4FY09 Q1FY10 Q2FY10 Q3FY10 Q4FY10 Q1FY11 Q4FY09 Q1FY10 Q2FY10 Q3FY10 Q4FY10 Q1FY11 Q4FY09 Q1FY10 Q2FY10 Q3FY10 Q4FY10 Q1FY11 Cost to Inc
Slide 19: Financial Performance
Financial Pemonnance Indusind Bank
Slide 20: Strong Headline Numbers for Q1FY11
Strong Headline Numbers for Q1FY11 Y-o-Y Growth Net Interest Rs 2,957 mn 77% Income Core Fee Rs 1,296 mn 50% Revenue Rs 4,566 mn 34% Operating Rs 2,306 mn 32% Profit Net Rs 1,186 mn 37% Profit 20
Slide 21: Balance Sheet
Balance Sheet (Rs Mn) FY09 FY10 Growth Q1FY10 Q1FY11 Growth Capital & Liabilities Capital 3,552 4,106 16% 3,552 4,111 16% Reserves and Surplus (incl. ESOP o/s) 13,092 19,866 52% 13,952 21,078 51% Deposits 221,102 267,102 21% 216,388 273,824 27% Borrowings 28,170 49,343 75% 32,353 41,85
Slide 22: Profit and Loss Account
Profit and Loss Account (Rs Mn) FY09 FY10 Growth Q1FY10 Q1FY11 Growth Net Interest Income 4,590 8,864 93% 1,674 2,957 77% Other Income 4,563 5,535 21% 1,728 1,610 -7% Total Income 9,153 14,399 57% 3,401 4,566 34% Operating Expenses 5,470 7,360 35% 1,658 2,260 36% Operating Profit 3,6
Slide 23: Well Diversified Loan Book
Well Diversified Loan Book Loan Book (Rs Mn) 205,506 216,081 157,706 127,953 60% 58% 55% 43% 57% 45% 40% 42% FY08 FY09 FY10 Q1FY11 Consumer Finance Division Corporate & Commercial Banking (Rs Bn) Equipment Financing Car Loans (Rs Bn) 30 Jun-10 % 6% 3% 2 W Loans Consumer Finance 30 Jun-10 % 4% C&I 61
Slide 24: Diversified Corporate Loan Book
Diversified Corporate Loan Book Industry-wise Advances NBFCs 4.8% Pharma 3.3% Housing Finance Co. 2.1% Steel 2.1% Construction 1.9% Textiles 1.6% Telecom 1.6% Aluminium 1.3% Hospital & Medical Serv. 1.2% Real Estate 1.1% Construction Equip. 1.1% Auto Ancillaries 1.0% Microfinance Institution 0.9% Ot
Slide 25: And Improving Liability and CASA
And Improving Liability and CASA Strong management focus on CASA Uptick 24.3% Building CASA through 70,000 23.7% 26% 60,000 24% • New product launches 22% 50,000 19.2% 66,634 • restructuring of branch network 40,000 20% 15.7% 63,217 18% • focus on self employed and small business 30,000 16% 20,0
Slide 26: Other Income
Other Income (Rs Mn) FY09 FY10 Growth Q1FY10 Q1FY11 Growth Fee Based Income 2,508 3,501 39.54% 715 1,090 52.45% Profit on Exchange Transactions 719 845 17.52% 174 288 65.52% Profit on Sale of Investments 1,216 1,110 8.72% 868 199 (77.07%) Profit/(Loss) on sale of assets (306) (340) (11.11%) (86) (3)
Slide 27: Diverse Revenues from Core Fee Income
Diverse Revenues from Core Fee Income (Rs Mn) FY09 FY10 Growth Q1FY10 Q1FY11 Growth Trade Fees 414 538 30% 102 191 87% Loan Processing fees 610 915 50% 212 304 43% Foreign Exchange Income 313 612 96% 93 201 117% TPP Distribution Income (Insurance, MF) 673 1161 73% 169 362 114% Genera
Slide 28: Favourable Yield / Cost Movement
Favourable Yield / Cost Movement Yield on Advances Cost of Deposits 14% 13.2% 14% 12.6% 12.2% 11.8% 12% 12% 10% 10% 7.8% 8.2% 8% 8% 6.7% 6.8% 6.0% 6% 6% 4% 4% 2% 2% 0% 0% FY08 FY09 FY10 Q1FY11 FY07 FY08 FY09 FY10 Q1FY11 * Yield / Cost based on daily averages Segment-wise Yield Q1FY10 FY10 Q1FY11 Out
Slide 29: Provision Coverage Ratio
Provision Coverage Ratio 70% 60% 50% 35% 31% Q1FY10 Q2FY10 Q3FY10 Q4FY10 Q1FY11 Achieved regulatory norm of 70% ahead of stipulated time frame 29
Slide 30: Cost of Credit
Cost of Credit (Rs Mn) FY08 FY09 FY10 Q1FY11 Bad Debts Written Off and Provisions for NPA – 298.2 780.8 450.3 - Corporate Loan Book Bad Debts Written Off, Diminution in value/ Loss on sale of Repossessed vehicles and Provisions for 508.0 827.0 650.3 111.1 NPA – Consumer Finance Loan Book Accelerated
Slide 31: Loan Portfolio - Movement in NPA
Loan Portfolio - Movement in NPA (Rs Mn) FY09 FY10 Q1FY11 CCB CFD Total CCB CFD Total CCB CFD Total Opening Balance 2,059 1,864 3,923 596 1,954 2,550 827 1,727 2,554 Additions 898 1,292 2,190 616 1,600 2,216 105 563 668 Deduction 2,361 1,202 3,563 385 1,827 2,212 31 440 471 Gross NPA 596 1,954 2,550
Slide 32: CFD - Segment wise NPA
CFD - Segment wise NPA Commercial Vehicle Utility Construction Equipment 2.0% 1.6% 1.8% 1.9% 1.9% 1.6% 1.6% 1.6% 1.5% 1.3% 1.2% 1.2% 1.7% 1.1% 1.5% 1.5% 1.4% 1.2% 0.8% 0.8% 749 703 0.6% 0.8% 0.8% 96 209 607 0.7% 75 188 175 184 181 517 77 88 162 139 76 57 596 333 665 50 44 326 94 Q2FY10 Q3FY10 Q4FY10
Slide 33: Loan Portfolio – Restructured Standard Advances
Loan Portfolio – Restructured Standard Advances Q1-11 Q1-10 Q4-10 No. Rs Mn No. Rs Mn No. Rs Mn Restructured Loans (Net) 77 453 129 757 85 472 Advances 216,081 164,516 205,506 Restructured Loans 0.2% 0.5% 0.2% 33
Slide 34: CRAR - Basel II
CRAR - Basel II (Rs Mn) 30 Jun-10 30 Jun-09 Credit Risk RWA 225,731 169,086 Market Risk RWA 3,282 3,072 Operational Risk RWA 15,784 10,948 Total Risk Weighted Assets 244,797 183,106 Tier I 21,379 15,134 Tier II 12,170 8,934 Total Capital 33,549 24,068 CRAR 13.71% 13.14% Tier I 8.73% 8.26% Tier II 4.
Slide 35: Planning Cycle II: 2011-14
Planning GyclesinZoggri4 Indusind Bank
Slide 36: Themes for Planning Cycle II
Themes for Planning Cycle II Continue building on Planning Cycle - I acquiring scale organically & inorganically including strategic alliances Re-rating of the Profitability, Productivity & Efficiency targets Complete the “Universal Bank” agenda Products Client Segments Build Scale Pro
Slide 37: Growth Drivers over Next 3 Years
Growth Drivers over Next 3 Years New Products Consumer Finance Loans against Property Credit Cards Incremental Revenues Supply Chain Financing Corporate Infrastructure Lending Banking Commodity Finance Co-operative Bank Sector Initiatives New Products / Client Segments Consumer HNI A
Slide 38: Management Outlook - Disciplined Growth Strategy
Management Outlook - Disciplined Growth Strategy To continue to optimize balance sheet and business mix to improve profitability To continue to create a more enhanced and deeper customer focus and leverage customer relationships To widen and leverage delivery channels and achieve disciplined g
Slide 39: Shareholding Pattern
Shareholding Pattern Shares held by Custodians & against w hich Depository Receipts have been issued 16% Others (incl NRIs and Directors and their relatives and friends) 3% Promoters and Promoter Group Individuals 22% 12% Bodies Corporates 12% MFs / Banks / Insurance Co and Financial Institutions 6%
Slide 40: Thank you
Indusind Bank