Indusind Bank Ltd. · NSE:INDUSINDBK
Indusind Bank — Q2 FY2020 Earnings Presentation
37 slides from Indusind Bank's earnings presentation, Oct 11, 2019
Slide 1: Stock exchange intimation letter
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Slide 2: Investor Presentation Q2-2019-20
Investor Presentation Q2-2019-20 October 10, 2019
Slide 3: Q2 – FY20 Performance Highlights
Q2 FY 20 marked by strong growth in headline numbers; Consolidated PAT at Rs. 1401 crs up by 52% Q2 – FY20 Performance Highlights Strengthened Balance Sheet by improving PCR from 43% to 50% with accelerated provisions of Rs. 355 crs Q2 PAT without accelerated provisions at Rs. 1,667 crs up by
Slide 4: Planning Cycle (2017-2020) - Plan vs Outcome
Planning Cycle 4 (2017-2020) - Plan vs Outcome Q2 FY20 Outcome Consolidated Loan Growth 25% - 30% 21% CASA Ratio 40% 41% Revenue Exceed Balance Resulting in 32% Growth Sheet Growth RoRWA > 2.4% 2.39% Branch 2,000 1753* Network Customer Base Double to >20mn On track * includes 83 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 18.45% 4.05% 4.10% 2.05% 17.26% 3.84% 3.83% 1.98% 15.44% 14.85% 3.59% 1.59% 1.62% 0.56% 5.46% Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Cost / Income Net NPA Revenue / Em
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 IND AA+ for Senior bonds program by India Ratings and Research IND AA for Additional Tier I Bonds program by India Ratings and Research
Slide 7: Consolidated Financial Performance
Consolidated Financial Performance Consolidated post merger of BFIL (effective July 04, 2019 with appointed date Jan. 01, 2018) * * Previous year periods not comparable 6
Slide 8: Steady Headline Numbers for Q2-FY20
Steady Headline Numbers for Q2-FY20 Y-o-Y Growth Q-o-Q Growth Net Interest Rs. 2,909 crs 32% 2% Income Total Fee Income Rs. 1,727 crs 31% 4% Revenue Rs.4,637 crs 32% 3% Operating Profit Rs. 2,623 crs 32% 1% Net Profit Rs. 1,401 crs 52% (2%) 7
Slide 9: Top line momentum
Top line momentum Y-o-Y Growth Q-o-Q Growth Advances Rs. 1,97,113 crs 21% 2% Deposits Rs. 2,07,193 crs 23% 3% CASA Rs. 85,838 crs 17% (1%) SA Rs. 58,117 crs 14% 1% Borrowings Rs. 44,558 crs 4% (10%) 8
Slide 10: Balance Sheet
Balance Sheet (Rs Crs) * Q2FY20 Q2FY19 Y-o-Y (%) Q1FY20 Q-o-Q (%) Capital & Liabilities Capital 693 601 15% 693 - Reserves and Surplus 32,171 24,763 30% 31,365 3% Share Warrant Subscription money 674 - - - - Deposits 2,07,193 1,68,220 23% 2,00,586 3% Borrowings 44,558 42,828 4% 49,
Slide 11: Profit and Loss Account – Q2FY20
Profit and Loss Account – Q2FY20 (Rs Crs) Q2FY20 Q2FY19 Y-o-Y (%) Q1FY20 Q-o-Q (%) Net Interest Income 2,909 2,204 32% 2,844 2% Other Income 1,727 1,317 31% 1,663 4% Total Income 4,636 3,521 32% 4,507 3% Operating Expenses 2,013 1,529 32% 1,916 5% Operating Profit 2,623 1,992 32% 2
Slide 12: Key Financial Indicators
Key Financial Indicators Q2FY20 Q2FY19 Q1FY20 Return on Assets 1.98% 1.59% 2.05% PPOP 3.57% 3.34% 3.63% ROE 17.26% 14.85% 18.45% Cost / Income Ratio 43.42% 43.41% 42.52% Net Interest Margin 4.10% 3.84% 4.05% Net NPA 1.12% 0.48% 1.23% EPS (annualized, Rs. per share) 80.88 61.27 82.74 Capital + Reserv
Slide 13: Well Diversified Loan Book
Well Diversified Loan Book Loan Book (Rs crs) 193,520 197,113 186,394 144,954 46% 45% 61% 60% (Rs crs) 55% Consumer Finance Sep-19 54% 39% 40% Vehicle Loans 56,472 29% FY18 FY19 Jun-19 Sep-19 Comm. Vehicle Loans 25,092 13% FY18 and FY19 are not Consumer Finance Division Corporate & Commercial Bankin
Slide 14: Diversified Corporate Loan Book
Diversified Corporate Loan Book SMA2 Sector % (Rs.crs) Real Estate 3.82% 28 Lease Rental 3.81% 48 Gems and Jewellery 3.73% SMA 1 Outstanding: NBFCs (other than HFCs ) 3.68% 257* 0.38% of loans Power Generation 2.85% SMA 2 Outstanding: Steel 0.58% of loans 2.46% Services 2.00% 16 Accounts in SMA1 & H
Slide 15: Well Rated Corporate Portfolio
Well Rated Corporate Portfolio P 24% Investment Grade Sub Investment Grade E R 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% T Secured Fund Based % 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 16: Behavioural Scoring affirms quality of Vehicle Financing Portfolio
Behavioural Scoring affirms quality of Vehicle Financing Portfolio • Behavioural Score (B-score) measures post disbursement credit quality using long range historical data. • B-score assesses every borrower risk using Current and Historical DPD, LTV, Geography, Loan tenor, Customer type, etc. • B-sc
Slide 17: Market rumours / comments on Exposure to Potentially Stressed Groups
Market rumours / comments on Exposure to Potentially Stressed Groups Three groups, one each in Media / Diversified / Housing Finance sectors speculated as being stressed Bank’s net funded and non-funded exposure to these groups is 1.1% of the loan book net of provisions held as under: % of Loans
Slide 18: Commercial Real Estate Exposure (CRE)
Commercial Real Estate Exposure (CRE) Bank’s CRE exposure comprises of 3.8% Real Estate Developer Loans (RE) and 3.8% Lease Rental Discounting (LRD) RE exposure is diversified across 71 projects with average ticket size of INR 108 cr LRD exposure is diversified across 122 projects with average
Slide 19: Improving CASA profile
Improving CASA profile Building CASA traction CASA Uptick Expanding branch network 1,00,000 50% 43.4% 43.6% 43.6% 43.1% 43.1% 90,000 41.5% Focus on target market segments 80,000 44% Government business 70,000 38% 60,000 84,070 86,539 85,838 76,549 33% Capital market flows 50,000 68,980 73,37
Slide 20: Other Income
Other Income (Rs Crs) Q2FY20 Q2FY19 Y-o-Y (%) Q1FY20 Q-o-Q (%) Core Fee 1,468 1,218 21% 1,422 3% Securities/MM/FX 259 99 162% 241 8% Trading/Others Total 1,727 1,317 31% 1,663 4% 19
Slide 21: Diverse Revenues from Core Fee Income
Diverse Revenues from Core Fee Income (Rs Crs) Q2FY20 Q2FY19 Y-o-Y(%) Q1FY20 Q-o-Q(%) Trade and Remittances 182 151 20% 164 11% Foreign Exchange Income 277 223 24% 250 11% Distribution Fees (Insurance, 322 280 15% 302 7% MF, Cards) General Banking Fees 90 91 (1%) 90 - Loan Fees 360 260
Slide 22: Diversified and Granular Fee Streams – Q2-FY20
Diversified and Granular Fee Streams – Q2-FY20 Corporate Banking Consumer Banking Trading and Other Income (36%) (49%) (15%) Trade and Remittances , 2% Trade and Remittances , 8% Foreign Exchange, 6% Foreign Exchange, 10% Investment Banking - Project Distribution, 19% Finance / Advisory, 1% Investme
Slide 23: Yield / Cost Movement
Yield / Cost Movement 12.04% 12.00% 10.00% 9.99% Yield on Assets Yield on Advances 6.70% 6.86% 5.90% 5.94% Cost of Deposits Cost of Funds Q2FY20 Q1FY20 •Yield on Assets/Cost of funds are based on Total Assets/Liabilities Segment-wise Yield Q2FY20 Q1FY20 Outstanding Yield Outstanding Yield (Rs crs) (
Slide 24: Credit Cost
Credit Cost (Rs Crs) FY15 FY16 FY17 FY18 FY19 Q1FY20 Q2FY20 HY FY20 Corporate Bank 144 258 401 468 2,134 67 101 168 Consumer Finance 195 244 303 433 585 237 262 499 Gross Credit Costs 339 502 704 901 2,719 304 363* 667* Gross Credit Costs 49 57 62 62 146 16 18* 34* (Basis Points on Advances) Net Cre
Slide 25: Loan Portfolio - Movement in NPA and Restructured Advances
Loan Portfolio - Movement in NPA and Restructured Advances (Rs Crs) Q2FY20 Q1FY20 Corporate Consumer Total Corporate Consumer Total Opening Balance 2,903 1,297 4,200 2,841 1,106 3,947 Additions 479# 623 1,102 175 550 725 Deductions 450# 482 932 113 359 472 Gross NPA 2,932 1,438 4,370* 2,903 1,297 4,
Slide 26: NPA Composition – Consumer Finance
NPA Composition – Consumer Finance (Rs Crs) Com. Const. Small HL/PL/O Q2-FY20 Utility TW Cars Tractor BBG/LAP Cards MFI Total Vehicle Equip. CV thers Gross NPA 361 48 79 59 155 52 65 258 81 102 178 1,438 Gross NPA % 1.43% 1.20% 0.97% 1.72% 3.16% 0.73% 1.57% 1.27% 1.04% 2.40% 0.94% 1.34% Com. Const.
Slide 27: CRAR
CRAR (Rs Crs) 30 Sep 19 30 Sep 19 30 Jun 19 30 Jun 19 Incl. H1 FY Incl. Q1 Basel – III Basel – III 20 PAT PAT Credit Risk, CVA and UFCE 2,04,955 2,04,955 1,99,418 1,99,418 Market Risk 9,282 9,282 8,690 8,690 Operational Risk 22,986 22,986 22,986 22,986 Total Risk Weighted Assets 2,37,223 2,37,223 2,
Slide 28: Distribution Expansion to Drive Growth
Distribution Expansion to Drive Growth Strengthening Distribution Infrastructure Dec. 31, Mar. 31, Jun. 30, Sep. 30, Particulars 2018 2019 2019 2019 IBL Branches/Banking 1,558 1,665 1,701 1,753* Outlets BFIL Branches - - 1,938 2,028 Vehicle Finance Marketing 869 845 855 842 Outlets Total Branches/Ou
Slide 29: Shareholding Pattern
Shareholding Pattern September 30, 2019 Promoters MFs / Banks/ 13.04% Insurance Co 15.62% Individuals 6.69% Private Corporates 5.15% NRIs/ Director/ Others 2.94% GDR issue 9.33% *FIIs 47.23% *includes FPIs 28
Slide 30: Initiatives for FY20
Initiatives for FY20 BFIL Merger Liabilities Surge Fee Growth Retail Asset Growth • Merger consummation • Pioneer – Banking for well-off • Distribution fees for wealth • Continued market share gains in products vehicle finance • Scaling up liabilities & RDSP • Retailisation via Household (Kirana Sto
Slide 31: Accolades
Accolades 30
Slide 32: Accolades
Accolades Mr. Romesh Sobti, MD & CEO Honoured with the ‘Lifetime Achievement Award’ at the Financial Express India’s Best Banks Awards held in Mumbai on September 30, 2019. 31
Slide 33: Accolades
Accolades IndusInd Bank has been awarded with the Best Corporate Social Responsibility Practices (CSR) Award by the Haryana Government 32
Slide 34: Accolades
Accolades IndusInd bank wins three awards at CMO Asia Awards 2019 ceremony held in Singapore - Best Search Campaign – IndusForex campaign - Best Digital Campaign – IndusInd Bank NEXXT Card - Best Digital Integrated Campaign – IndusInd Bank DUO CARD 33
Slide 35: Accolades
Accolades IndusInd Bank received 2 awards at JCB Awards 2018. • BEST FINANCIER FOR 2018 • BEST FINANCIER – BACKHOE LOADER 2018 34
Slide 36: Thank You
Thank You
Slide 37: 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