Indusind Bank Ltd. · NSE:INDUSINDBK
Indusind Bank — Investor Day (July 2022)
38 slides from Indusind Bank's investor day presentation, Jul 27, 2022
Slide 1: Analyst Day
– Analyst Day 27th July 2022
Slide 2: Presentation-1: Bank's Strategy
IndusInd Bank – Analyst Day Presentation-1 Bank’s Strategy
Slide 3: Presentation Path
Presentation Path 1 Backdrop of the Bank’s Strategy 2 Building Blocks in Place 3 Focused on Sustainable Growth
Slide 4: Backdrop of the Bank's Strategy
1 Backdrop of the Bank’s Strategy 2 Building Blocks in Place 3 Focused on Sustainable Growth
Slide 5: Management Beliefs Driving Our Strategy
1 Management Beliefs Driving Our Strategy Business Approach towards Technology Governance Philosophy Customers • Universal Banking Approach • Branch and Digital to Co-exist • Infrastructure to Support • Quality of Earning More and Complement Each Other Scale, Security and Reliability Important than
Slide 6: IndusInd Bank: A Differentiated Franchise
2 IndusInd Bank: A Differentiated Franchise Diversified Robust Strong Loan Book with Domain Liability Franchise Product Groups Expertise in Livelihood Loans Disproportionately Large Customer Centric Experienced Distribution Network with Future Ready Digital 2.0 Management Team Deep Rural Presence St
Slide 7: Our Core Executive Team
3 Our Core Executive Team Mr. Sumant Kathpalia Managing Director & CEO Mr. Sanjeev Anand Mr. Arun Khurana Mr. S.V. Zaregaonkar Head - Corporate, Commercial, Mr. Bijayananda Pattanayak Deputy CEO Chief Operating Officer (COO) Head - Gems & Jewellery Rural & Inclusive Banking Mr. Soumitra Sen Mr. J Sr
Slide 8: The Bank Has Delivered Scale with Profitability over the Years
4 FY08 FY08 180 12,795 FY09 FY09 FY10 FY10 FY11 FY11 FY12 FY12 FY13 FY13 FY14 FY14 FY15 FY15 23% CAGR FY16 FY16 Branches (#) FY17 FY17 Loan Book (Rs.cr) FY18 FY18 FY19 FY19 FY20 FY20 FY21 FY21 FY22 FY22 2265 2,39,052 FY08 FY08 2,869 19,037 FY09 FY09 FY10 FY10 FY11 FY11 FY12 FY12 The Bank has Deliver
Slide 9: The Bank Faced Internal and External Challenges During the Last 2 Years
5 The Bank, However, Faced a Few Internal and External Challenges During the Last 2 Years Concerns on potential Corporate slippages and Profit After Tax (Rs.cr) 4,805 chunky exposures Government Deposit Outflows 75 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Covid-19 o
Slide 10: Recalibration of Strategy Towards 'Scale with Sustainability'
6 The Bank Responded with Recalibration of Strategy Towards ‘Scale with Sustainability’ Planning Cycle 5 (2020–23) Strategy Scale with Sustainability Broad Themes Leapfrog Digital Banking Fortifying Liabilities Scaling up Domains of Expertise Investing in New Growth Engines Conservative & Robust Pra
Slide 11: With Strategic Priorities as
7 With Strategic Priorities as 1. Retail Liabilities Surge 5. 2. New Fine-tuning Growth Underpinned by Corporate Bank Boosters 6. Approach Digitization & 7. Sustainability 3. 4. Holistic Scaling up Rural Domains Banking
Slide 12: And Well Defined Sustainability Metrics
8 And Well Defined Sustainability Metrics Credit to Deposit Ratio <95% Lower Non-Funded to Certificates of Deposits Funded Ratio 5%-10% PCR Retail LCR Deposits >65% 45%-50% Unsecured Retail <5%
Slide 13: Resulting in
Resulting in Planning Cycle 5 (2020–23) Loan Growth 15% - 18%* CASA Ratio > 40% Resulting in Revenue Growth Exceed Balance Sheet Growth PPOP / Loans > 5% Branch Network 2,500 Customer Base Double to >45mn * For FY22-FY23
Slide 14: Building Blocks in Place
1 Backdrop of the Bank’s Strategy 2 Building Blocks in Place 3 Focused on Sustainable Growth
Slide 15: Laying Foundation for Growth
Laying Foundation for Growth 1 Fortified Liability Franchise 2 Fine-tuned Corporate Bank Approach 3 Domains Outperformed Industry 4 Maintained Healthy Operating Margins & Improved Stressed Coverage 5 Continued Investment in Growth Boosters 6 Strengthened Leadership &Talent Base 7 Reinforced Risk Man
Slide 16: Fortified Liability Franchise with Focus on Retailisation of Deposits
1 Forfeited Liability Franchise with Focus on Retailisation of Deposits Robust Deposit Growth Driven by Retail & CASA Ramped up Client Acquisition Continue Investment in Distribution Network ~87% of incremental deposits from retail & CASA (Rs.cr) NTB CASA & Retail TD Acquisition (#) Narrowing Differ
Slide 17: Fine Tuned Corporate Bank Franchise with Granular Low Risk Portfolio
2 Fine Tuned Corporate Bank Franchise with Focus on Building Granular Low Risk Portfolio 1 Loan book orientation towards higher Corporate Book: No New Surprises Gross Corporate Slippages – Trailing 4 Quarters rated granular portfolio 6.0% 5.1% 5.0% 2 Portfolio rebalancing done with significant 4.0%
Slide 18: Domains Outperformed Industry Amidst Macro Challenges
3 Domains Outperformed Industry Amidst Macro Challenges Vehicle Finance Micro Finance Gems & Jewellery 60 DPD (%) 100 100 100 100 100 89 100 100 100 85 73 • No Restructuring 68 • No NPA 50 • No SMA2 26 28 11 30 DPD (%) 60 DPD (%) 90 DPD (%) CV CE PV Tractor TW Industry IBL Industry IBL Indexed to 10
Slide 19: Maintained Healthy Operating Margins & Improved Stressed Coverage
4 Maintained Healthy Operating Margins & Improved Stressed Coverage Stable NIMs Aided by CoD Reduction Granular Fee Mix Range-bound Cost to Income Ratio 8% 4% 1% 4.3% 4.3% 4.2% 15% 21% 43% 41% 41% 40% 41% 42% 43% 4.1% 4.1% 4.1% 4.1% 4.1% 4.2% Investment Banking 27% 19% 23% 39% 41% Other Corporate 52
Slide 20: Continue Investment in New Initiatives to Boost Growth
5 Continue Investment in New Initiatives to Boost Growth Holistic Rural Banking Affluent Banking NRI Banking Rural Focused Loans Net Relationship Value (Rs.cr) Deposits (Rs.cr) 37 % 17 % Tractor KCC BFIL Agri Business Group 59,935 CAGR CAGR 18 % 50,903 25,706 26,801 CAGR 19,506 32,076 17% of 19% of
Slide 21: Strengthened Leadership and Talent Base
6 Strengthened Leadership and Talent Base Continue to Strengthen Human Capital Organisation Structure Audit Committee of Board (ACB) 1 Smooth succession planning across leadership positions MD & CEO Deputy CEO 2 Reorganised Corporate Banking Unit with Lateral Hiring and Internal Reallocations • Prod
Slide 22: Reinforced Risk Management Framework
7 Reinforced Risk Management Framework Incorporating Past Learnings & Evolving Macro Environment 1 Reduced corporate exposure Concentration; Increased focus on granular high rated working capital loans 2 Conservative Capping of Sensitive Sector Exposures; Tightened overall Concentration Exposure nor
Slide 23: IT Strategic Priorities Aligned to Bank's Strategic Objectives
8a IT Strategic Priorities Aligned to Bank’s Strategic Objectives Building Highly Scalable and Performance oriented Customer Experience is at Centerpiece of our environment initiatives • Enhancing Core Banking System Architecture • Future ready enterprise solution CRM NEXT • End-to-end paperless, pr
Slide 24: Multiple HR Initiatives for Enhanced Employee Experience
8b Multiple HR Initiatives for Enhanced Employee Experience & Engagement Curated and Rolled out HR Mobile App: One Multiple Activities and Gamified Learning AI based Chat Bot with Stop Solution for all Programs for Women Modules 24x7 Support Employee needs Employees under ELEVAT
Slide 25: Moved Towards Improving Sustainability of Organisation
Overall in Last 2 Years, We have moved towards Improving Sustainability of Organisation FY20: 102% FY21: 83% FY22: 81% Credit to Deposit Ratio <95% FY20: 3.15x Certificates of FY20: 16% Lower Non-Funded Deposits FY21: 2.34x to Funded Ratio FY21: 3% FY22: 2.30x CRAR 5%-10% FY22: 3% FY20: 15.04% FY21:
Slide 26: Focused on Sustainable Growth
1 Backdrop of the Bank’s Strategy 2 Building Blocks in Place 3 Focused on Sustainable Growth
Slide 27: Themes for the Coming Years: Growth with Sustainability
Themes for the Coming Years: Growth with Sustainability 1 Loan growth acceleration 6 2 Deposit Sustainable mobilization Banking to continue apace Becoming Leapfrogging Employer of Digital 2.0 Choice 5 New Growth 3 Boosters 4
Slide 28: Acceleration in Loan Growth Led by Areas of Domain Expertise
1 Acceleration in Loan Growth Led by Areas of Domain Expertise Steadily Pivoting towards Loan Growth All Businesses are Poised for Loan Growth Acceleration Vehicle Finance Loan Book (Rs.’000cr) MFI Loan Book (Rs.’000cr) Domains Poised for Loan Growth 55 56 58 57 58 59 61 61 60 59 61 62 18 19 21 24 2
Slide 29: Deposit Mobilization to Continue Apace
2 Deposit Mobilization to Continue Apace; Multiple Initiatives in Place Multipronged Strategy in Place with Data Intelligence Driven Client Engagement Approach Best-in-Class Experience at ‘’PIONEER‘’ Branches Strengthening the Core Business 1 • • • • Branch Network Expansion Market Share Gain in Hom
Slide 30: Leapfrogging Digital 2.0
3 Leapfrogging Digital 2.0 Digital 2.0 Strategy to drive 3 main Continued Execution on Our Digital 2.0 Initiatives objectives across business lines Launched in FY22 Work in Progress 5. SME Digital 4. Differentiated Offering payments & finance 1 Build Enriched Digital Value Proposition Stacks 3. Merc
Slide 31: Scaling-up New Growth Boosters
4 Scaling-up New Growth Boosters Scaling Up Existing Initiatives… …Adding New Boosters Affluent Banking NRI Banking • Pioneer” offering well accepted in the market • Ramping-up NR branches, international • Product & customer segment expansion to presence Home Loans boost growth • End to end digital
Slide 32: Becoming Employer of Choice
5 Becoming Employer of Choice Work Opportunities Rewards Culture Work Environment Advancement Pay & Benefits Affiliation 1. Recognition & Autonomy 1. Continuous learning 1. Market-linked 1. Pride & Trust 2. Work environment – at work compensation 2. Collaboration & team quality infrastructure 2. Car
Slide 33: Sustainable Banking: Integrating ESG with Business, Risk & Operations
6 Sustainable Banking : Integrating ESG with Business, Risk & Operations Integration of ESG Risk with Credit Risk 2022 Highlights Launch of ESG Theme Products Green Fixed Deposit Risk Sharing with Multilateral Agencies NR Home Coming with Akshay Patra Foundation GHG Intensity down from 3
Slide 34: Committed to the PC-5 Ambitions
We are thus Committed to the PC-5 Ambitions Planning Cycle 5 (2020–23) Loan Growth 15% - 18%* CASA Ratio > 40% Resulting in Revenue Growth Exceed Balance Sheet Growth PPOP / Loans > 5% Branch Network 2,500 Customer Base Double to >45mn * For FY22-FY23
Slide 35: A Peep Into Potential Planning Cycle 6
A Peep Into Potential “Planning Cycle 6” Domains to Contribute >50% of Loans Addition of a New Domain Asset Management, Traditional + Surge in Client Retail Broking, Para Banking Digital >4 mn per Acquisition Insurance year Green Ops / Lending Vehicles, “Sustainability” at Consistent Gain in Employe
Slide 36: Planning Cycle 6 Tentative Indicators
A Peep Into Potential “Planning Cycle 6” Tentative Indicators Loan Growth CAGR Ahead of PC-5 Loan Mix 60%:40% Retail: Corporate Resulting in CASA Ratio > 45% PPOP / Loans > 5.5% Branch Network > 3,000 Customer Base > 50mn
Slide 37: Thank You
THANK \ielu, IndusInd Bank
Slide 38: 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