IndusInd Bank Ltd. · NSE:INDUSINDBK
IndusInd Bank — Q1 FY2014 Earnings Presentation
30 slides from IndusInd Bank's earnings presentation, Jul 10, 2013
Slide 1: Investor Presentation July 10, 2013
Investor Presentation July 10, 2013
Slide 2: Q1 – FY14 Performance Highlights
Consistent performance in deteriorating macro economic environment Total Business crossed Rs. 1,00,000 crs Q1 – FY14 Performance Highlights Net Interest Income grew 40% Y-o-Y & 3% Q-o-Q Non-Interest Income to revenue remains healthy at 41% Consistent growth in Core Fee Income 31% Y-o-Y & 2
Slide 3: Planning Cycle III (2014-16) – Pillars of Growth
Planning Cycle III (2014-16) – Pillars of Growth Q1-14 outcome Loan Growth 25% - 30% 27% Y-o-Y Exceed Loan Growth Growth-33% CASA Growth (CASA % in 30’s) CASA-30% Resulting in Core Fee Growth Fee Growth Exceed Loan Growth 31% 30 New Branches Branch Growth Double added in Q1-14 New Client Growth Doub
Slide 4: Planning Cycle III – Key Initiatives
Planning Cycle III – Key Initiatives Further inroads Focus on Investment Build Scale in into Used CV Commercial Banking Business Loans Mortgages (LAP) Expansion Banking Growing Market Unsecured Loans Build Brand Industry Share all Vehicle (Credit Cards & around Specialisation Categories PL) Innovati
Slide 5: How We Measure Up On Key Metrics
How We Measure Up On Key Metrics Net Interest Margin (NIM) RoA RoE* QIP – Rs 2000 crs 1.77% 1.83% 20.35% 20.45% 3.70% 3.72% 1.57% 1.56% 1.60% 3.46% 3.22% 3.25% 17.37% 17.62% 16.70% Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 *on average eq
Slide 6: 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 IND A1+ for Short Term Debt Instruments by India Ratings and
Slide 7: Financial Performance
Financial Performance ’ Indusind Bank
Slide 8: Strong Headline Numbers for Q1-FY14
Strong Headline Numbers for Q1-FY14 Y-o-Y Growth Q-o-Q Growth Net Interest Rs 679.48 crs 40% 3% Income Other Income Rs 470.61 crs 48% 28% Core Fee Income Rs 351.57 crs 31% 2% Revenue Rs 1,150.09 crs 43% 12% Operating 59% 18% Rs 641.60 crs Profit Net 42% 9% Rs 334.84 crs Profit 8
Slide 9: Top line momentum
Top line momentum Y-o-Y Growth Q-o-Q Growth Advances Rs 47,425 crs 27% 7% Corporate Rs 24,070 crs 30% 10% Advances Consumer Finance Rs 23,355 crs 24% 4% Advances Deposits Rs 55,660 crs 23% 3% CASA Rs 16,673 crs 33% 5% 9
Slide 10: Balance Sheet
Balance Sheet (Rs crs) Q1FY14 Q1FY13 Y-o-Y (%) Q4FY13 Q-o-Q (%) Capital & Liabilities Capital 523 469 12% 523 - Reserves and Surplus 7,447 4,515 65% 7,107 5% Deposits 55,660 45,076 23% 54,117 3% Borrowings 7,755 8,705 (11%) 9,460 (18%) Other Liabilities and Provisions 2,346 1,947 21
Slide 11: Profit and Loss Account
Profit and Loss Account (Rs crs) Q1FY14 Q1FY13 Y-o-Y (%) Q4FY13 Q-o-Q (%) Net Interest Income 679.48 484.10 40% 661.23 3% Other Income 470.61 318.78 48% 367.89 28% Total Income 1,150.09 802.88 43% 1,029.12 12% Operating Expenses 508.49 398.85 27% 485.67 5% Operating Profit 641.60 404
Slide 12: Key Financial Indicators
Key Financial Indicators Q1FY14 Q1FY13 Q4FY13 Return on Assets 1.83% 1.57% 1.77% ROE (On average equity) 17.62% 20.35% 16.70% Cost / Income Ratio 44.21% 49.68% 47.19% Net Interest Margin 3.72% 3.22% 3.70% Net NPA 0.21% 0.27% 0.31% EPS (annualized, Rs. per share) 25.64 20.20 23.56 Net Worth (Rs. in c
Slide 13: Well Diversified Loan Book
Well Diversified Loan Book Loan Book (Rs crs) 44,321 47,425 35,064 51% 26,166 49% 20,551 51% 56% 60% 51% 49% 49% 40% 44% FY10 FY11 FY12 FY13 Jun-14 Consumer Finance Division Corporate & Commercial Banking (Rs crs) (Rs crs) Corporate Consumer Finance June-13 June-13 Banking Comm. Vehicle Loans 10,158
Slide 14: Diversified Corporate Loan Book
Diversified Corporate Loan Book NBFCs (other than HFCs/HFIs) 3.57% Lease Rental 3.25% Constn related to infra.- EPC 2.36% Power 2.12% Gems and Jewellery 1.98% Steel 1.53% Pharma 1.28% Real Estate Developers 1.05% Other Industry 33.62% 14
Slide 15: Well Rated Corporate Portfolio
Well Rated Corporate Portfolio 28% P E 26% R C 24% E Investment Grade Sub Investment Grade N 22% T 20% O F 18% Unsecured Non Fund Based % R 16% A Secured Non Fund Based % T 14% Unsecured Fund Based % E D 12% Secured Fund Based % P 10% O R 8% T F 6% O L 4% I O 2% 0% IB1 IB2+ IB2 IB2- IB3+ IB3 IB3- IB
Slide 16: Improving CASA profile
Improving CASA profile Building CASA traction CASA Uptick Expanding branch network 18,000 33% 29.3% 30.0% 27.9% 28.0% 28.7% Some leverage from SA rate advantage 16,000 27.3% 14,000 27% Focus on target market segments 12,000 16,673 10,000 14,651 15,867 13,365 21% Government business 8,000 11,
Slide 17: Other Income
Other Income (Rs crs) Q1FY14 Q1FY13 Y-o-Y (%) Q4FY13 Q-o-Q(%) Core Fee 351.57 269.03 31% 344.92 2% Securities/MM/FX Trading 104.53 49.65 211% 17.84 486% Others 14.51 0.10 - 5.13 183% Total 470.61 318.78 48% 367.89 28% 17
Slide 18: Diverse Revenues from Core Fee Income
Diverse Revenues from Core Fee Income (Rs crs) Q1FY14 Q1FY13 Y-o-Y(%) Q4FY13 Q-o-Q(%) Trade & Remittances 48.83 37.28 31% 47.27 3% Foreign Exchange Income 92.21 63.38 45% 73.21 26% Distribution Fees 66.68 56.44 18% 78.47 (15%) ( Insurance, MF, Cr. Card ) General Banking Fees 38.84 29.03
Slide 19: Yield / Cost Movement
Yield / Cost Movement 13.39% 13.48% 10.47% 10.51% Yield on Assets 8.18% 8.06% Yield on Advances 6.75% 6.81% Cost of Deposits Cost of Funds Q1FY14 Q4FY13 •Yield on Assets/Cost of funds are based on Total Assets/Liabilities Segment-wise Yield Q1FY14 Q4FY13 Outstanding Yield Outstanding Yield (Rs crs)
Slide 20: Credit Cost
Credit Cost (Rs crs) FY11 FY12 FY13 Q4FY13 Q1FY14 Corporate Bank 81.99 61.11 116.51 26.90 27.80 Consumer Finance 78.34 81.46 103.10 36.76 33.72 Gross Credit Costs 160.33 142.57 219.61 63.66 61.52 Gross Credit Costs 61 41 50 14 13 (Basis Points on Advances) Net Credit Cost 139.38 133.12 204.81 58.28
Slide 21: Loan Portfolio - Movement in NPA and Restructured Advances
Loan Portfolio - Movement in NPA and Restructured Advances (Rs crs) Q1FY14 Q4FY13 Corporate Consumer Total Corporate Consumer Total Opening Balance 199 259 458 182 240 422 Additions 27 86 113 24 102 126 Deductions 3 63 66 7 83 90 Gross NPA 223 282 505 199 259 458 Net NPA 41 110 101* 43 94 137 % of G
Slide 22: NPA Composition – Consumer Finance - Vehicles
NPA Composition – Consumer Finance - Vehicles (Rs crs) Com. Const. Q1-FY14 Utility Small CV TW Cars Vehicle Equip. Gross NPA 119 17 33 18 59 16 Net NPA 53 6 11 6 26 6 Gross NPA % 1.17% 0.86% 1.16% 0.83% 2.87% 0.70% Net NPA % 0.52% 0.33% 0.39% 0.28% 1.29% 0.25% Com. Const. Q4-FY13 Utility Small CV TW
Slide 23: CRAR
CRAR (Rs crs) 30 June-13 30 June-12 Basel – III Basel - II Basel - II Risk Weighted Assets - Credit Risk 48,599 48,599 37,530 - Market Risk 3,236 3,236 997 - Operational Risk 4,670 4,670 3,443 - Total RWA 56,505 56,505 41,970 Tier I Capital Funds 7,622 7,321 4,459 Tier II Capital Funds 771 825 937 T
Slide 24: Distribution Expansion to Drive Growth
Distribution Expansion to Drive Growth J&K2 Strengthening Distribution Infrastructure HP 2 Chandigarh June 30, Punjab 2 Particulars FY11 FY12 FY13 32 2013 Uttarakhand Haryana 1 Delhi 24 28 Branch Network 300 400* 500* 530 Sikkim Assam Rajasthan UP 2 8 35 ATMs 594 692 882 1,003 40 Meghalaya Bihar 1 7
Slide 25: Shareholding Pattern
Shareholding Pattern NRIs/ Director/ Others- 1.25% GDR issue- 12.36 % Promoters- 15.27 % MFs / Banks/ Individuals- Insurance Co- 7.55 % 7.02% Private Corporates- 14.27% FIIs- 42.28 % 25
Slide 26: Events and Awards
Events and Awards | ce Indusind Bank
Slide 27: Accolades For 'Best Use of CSR Practices in Banking & Finance'
Accolades Global CSR Excellence & Leadership Award 2013 For ‘ Best Use of CSR Practices in Banking & Finance’ For ‘Innovation in Corporate Social Responsibility Practices’ BSE - 7th Social and Corporate Governance Awards For Best Corporate Social Responsibility Practice’ 2013’ 27
Slide 28: Accolades
Accolades Inclusion in Nifty50 On 1st April 2013 IndusInd Bank entered Benchmark Index of NSE Nifty 50 28
Slide 29: Thank you
Thank you 29 Indusind Bank
Slide 30: 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