Indusind Bank Ltd. · NSE:INDUSINDBK
Indusind Bank — Q1 FY2020 Earnings Presentation
40 slides from Indusind Bank's earnings presentation, Jul 12, 2019
Slide 1: IndusInd Bank exchange filing cover letter
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Slide 2: Investor Presentation Q1-2019-20
Investor Presentation Q1-2019-20 July 12, 2019
Slide 3: Q1 – FY20 Performance Highlights
Integration of Bharat Financial Inclusion Limited (BFIL) with IndusInd Bank Limited completed Q1 FY 20 marked by strong QoQ growth in headline numbers Q1 – FY20 Performance Highlights Q1 consolidated PAT growth up by 38% Core fee up by 22% YoY Credit growth up 28% and Deposit growth up 26%
Slide 4: Planning Cycle (2017-2020) - Plan vs Outcome
Planning Cycle 4 (2017-2020) - Plan vs Outcome Q1 FY20 Q1 FY20 Outcome Outcome Consolidated Standalone Loan Growth 25% - 30% 28% 26% CASA Ratio 40% 43% 43% Revenue Exceed Balance Resulting in 32% 17% Growth Sheet Growth RoRWA > 2.4% 2.57% 2.28% Branch 2,000 1701* 1701* Network Customer Base Double t
Slide 5: How We Measure Up On Key Metrics
How We Measure Up On Key Metrics Net Interest Margin (NIM) RoA RoE# 18.45% 17.25% 3.92% 4.05% 2.05% 3.84% 3.83% 14.85% 15.44% 1.91% 3.59% 1.59% 1.62% 0.56% 5.46% Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Cost / Income Net NPA Revenue / E
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: Financial Performance
Financial Performance Consolidated post merger of BFIL (effective July 04, 2019 with appointed date Jan. 01, 2018) (Business Banking and MFI classified under Consumer Segment as per Industry Practice*) * Previous year periods not comparable 6
Slide 8: Steady Headline Numbers for Q1-FY20
Steady Headline Numbers for Q1-FY20 Y-o-Y Growth* Q-o-Q Growth* Net Interest Rs. 2,844 crs 34% 27% Income Total Fee Income Rs. 1,663 crs 28% 7% Revenue Rs. 4,507 crs 32% 19% Operating Profit Rs. 2,591 crs 36% 25% Net Profit Rs. 1,433 crs 38% 298% *Excluding BFIL 7
Slide 9: Top line momentum
Top line momentum Y-o-Y Growth Q-o-Q Growth Advances Rs. 1,93,520 crs 28% 4% Deposits Rs. 2,00,586 crs 26% 3% CASA Rs. 86,341 crs 25% 3% SA Rs. 57,652 crs 21% 6% Borrowings Rs. 49,764 crs 34% 5% *Regrouped. For Details Refer Slide No 14 8
Slide 10: Balance Sheet
Balance Sheet (Rs Crs) * Q1FY20 Q1FY19 Y-o-Y (%) Q4FY19 Q-o-Q (%) Capital & Liabilities Capital 693 600 15% 603 15% Reserves and Surplus 31,365 24,321 29% 26,083 20% Deposits 2,00,586 1,58,862 26% 1,94,868 3% Borrowings 49,764 37,040 34% 47,321 5% Other Liabilities and Provisions 10,
Slide 11: Profit and Loss Account – Q1FY20
Profit and Loss Account – Q1FY20 (Rs Crs) Q1FY20 Q1FY19 Y-o-Y (%) Q4FY19 Q-o-Q (%) Net Interest Income 2,844 2,122 34% 2,232 27% Other Income 1,663 1,302 28% 1,559 7% Total Income 4,507 3,424 32% 3,791 19% Operating Expenses 1,916 1,513 27% 1,724 11% Operating Profit 2,591 1,911 36%
Slide 12: IBL Standalone and Merged Performance
IBL Standalone and Merged Performance Q1FY20 Q1FY19 IBL Q1FY20 IBL Rs crores IBL IBL Y-o-Y (%) IBL + BFIL Y-o-Y (%) Standalone Standalone Net Worth 27,620 24,561 12% 31,734 29% Advances 1,89,962 1,50,675 26% 1,93,520 28% Net Interest Income 2,419 2,122 14% 2,844 34% Other Income 1,602 1,
Slide 13: Key Financial Indicators
Key Financial Indicators Q1FY20 Q1FY19 Q4FY19 Return on Assets 2.05% 1.91% 0.56% ROE (On average equity) 18.45% 17.25% 5.46% Cost / Income Ratio 42.52% 44.18% 45.46% Net Interest Margin 4.05% 3.92% 3.59% Net NPA 1.23% 0.51% 1.21% EPS (annualized, Rs. per share) 82.74 69.00 24.37 Capital + Reserves (
Slide 14: Bharat Financial Inclusion Limited – Operational Update
Bharat Financial Inclusion Limited – Operational Update Q1FY20 Q1FY19 Y-o-Y(%) Q4FY19 Q-o-Q(%) Branches 1,938 1,639 18% 1,854 5% Centers (Sangam)* 3,53,675 3,07,798 15% 3,46,870 2% Employees 20,590 17,415 18% 19,816 4% Members (mn)* 9.0 7.8 15% 8.8 2% Active borrowers (mn)* 7.5 6.4 1
Slide 15: Well Diversified Loan Book
Well Diversified Loan Book Loan Book (Rs crs) 1,86,394 1,93,520 1,44,954 46% 1,13,081 61% 88,419 60% 68,788 60% 59% (Rs crs) 59% 54% 40% 40% 39% Consumer Finance Jun-19 41% 41% FY15 FY16 FY17 FY18 FY19 Jun-19 Vehicle Loans 55,046 28% Consumer Finance Division Corporate & Commercial Banking Comm. Veh
Slide 16: 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 funded and non-funded exposure to these groups is 1.67% of the loan book net of provisions held Consolidated security
Slide 17: Diversified Corporate Loan Book
Diversified Corporate Loan Book SMA2 Sector % (Rs.crs) Real Estate 3.85% 0 Gems and Jewellery 3.54% 0 Lease Rental 3.20% 5 NBFCs (other than HFCs ) 3.00% 0 Power Generation 2.53% 0 Steel 2.45% 0 SMA 1 Outstanding: Constn related to infra.- EPC 1.98% 0 0.18% of loans Services 1.97% 13 SMA 2 Outstandi
Slide 18: Well Rated Corporate Portfolio
Well Rated Corporate Portfolio Externally rated standard 24% loan book portfolio in sub investment grade category 22% is 3.1% of total loan book P E 20% R C Investment Grade Sub Investment Grade E 18% N T 16% O Unsecured Non Fund Based % 14% F Secured Non Fund Based % R 12% Unsecured Fund Based % A
Slide 19: 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 20: Improving CASA profile
Improving CASA profile Building CASA traction CASA Uptick Expanding branch network 1,00,000 90,000 44.0% 43.4% 43.6% 43.6% 43.1% 43.1% 50% 44% Focus on target market segments 80,000 70,000 38% Government business 86,539 60,000 76,549 84,070 33% 50,000 73,375 Capital market flows 66,729 68,98
Slide 21: Other Income
Other Income (Rs Crs) Q1FY20 Q1FY19 Y-o-Y (%) Q4FY19 Q-o-Q (%) Core Fee 1,422 1,165 22% 1,419 1% Securities/MM/FX 241 137 76% 140 72% Trading/Others Total 1,663 1,302 28% 1,559 7% Merger of BFIL effective July 04, 2019 with appointed date Jan. 01, 2018. Previous year periods not comparab
Slide 22: Diverse Revenues from Core Fee Income
Diverse Revenues from Core Fee Income (Rs Crs) Q1FY20 Q1FY19 Y-o-Y(%) Q4FY19 Q-o-Q(%) Trade and Remittances 164 141 16% 189 (13%) Foreign Exchange Income 250 228 10% 289 (14%) Distribution Fees (Insurance, 302 278 9% 302 - MF, Cards) General Banking Fees 90 80 13% 84 8% Loan Fees 337
Slide 23: Diversified and Granular Fee Streams – Q1-FY20
Diversified and Granular Fee Streams – Q1-FY20 (to update) Corporate Banking Consumer Banking Trading and Other Income (39%) (45%) (16%) Trade and Remittances , 2% Trade and Remittances , 8% Foreign Exchange, 4% Foreign Exchange, 10% Distribution, 18% Investment Banking - Project Finance / Advisory,
Slide 24: Yield / Cost Movement
Yield / Cost Movement 12.00% 11.25% 9.99% 9.51% Yield on Assets Yield on Advances 6.86% 6.80% 5.94% 5.92% Cost of Deposits Cost of Funds Q1FY20 Q4FY19 •Yield on Assets/Cost of funds are based on Total Assets/Liabilities Segment-wise Yield Q1FY20 Q4FY19 Outstanding Yield Outstanding Yield (Rs crs) (%
Slide 25: Credit Cost
Credit Cost (Rs Crs) FY15 FY16 FY17 FY18 FY19 Q1FY20 Corporate Bank 144 258 401 468 2,134 67 Consumer Finance 195 244 303 433 585 238 Gross Credit Costs 339 502 704 901 2,719 304 Gross Credit Costs 49 57 62 62 146 16 (Basis Points on Advances) Net Credit Cost 323 468 672 856 2,689 293 Net Credit Cos
Slide 26: Loan Portfolio - Movement in NPA and Restructured Advances
Loan Portfolio - Movement in NPA and Restructured Advances (Rs Crs) Q1FY20 Q4FY19 Corporate Consumer Total Corporate Consumer Total Opening Balance 2,841 1,106 3,947 1,203 765 1,968 Additions 175 550 725 3,230 458 3,688 Deductions 113 359 472 1,345 364 1,709 Gross NPA 2,902 1,297 4,200* 3,088 859 3,
Slide 27: NPA Composition – Consumer Finance
NPA Composition – Consumer Finance (Rs Crs) Com. Const. Small HL/PL/O Q1-FY20 Utility TW Cars Tractor BBG/LAP Cards MFI Total Vehicle Equip. CV thers Gross NPA 324 48 66 45 169 52 56 266 72 88 111 1,297 Gross NPA % 1.30% 1.23% 0.84% 1.38% 3.56% 0.76% 1.49% 1.35% 1.02% 2.22% 0.61% 1.24% Com. Const. L
Slide 28: CRAR
CRAR (Rs Crs) 30 Jun 19 30 Jun 19 31 Mar 19 Basel – III Incl. Q1 PAT Basel – III Credit Risk, CVA and UFCE 1,99,418 1,99,418 1,82,948 Market Risk 8,690 8,690 8,615 Operational Risk 22,986 22,986 22,986 Total Risk Weighted Assets 2,31,094 2,31,094 2,14,549 Core Equity Tier 1 Capital Funds 29,955 31,2
Slide 29: Distribution Expansion to Drive Growth
Distribution Expansion to Drive Growth Strengthening Distribution Infrastructure Sept. 30, Dec. 31, Mar. 31, Jun. 30, Particulars 2018 2018 2019 2019 IBL Branches/Banking 1,466 1,558 1,665 1,701* Outlets BFIL Branches - - - 1,938 Vehicle Finance Marketing 914 869 845 855 Outlets Total Branches/Outle
Slide 30: Shareholding Pattern
Shareholding Pattern June 30, 2019 MFs / Banks/ Insurance Co Promoters 9.69% 14.98% Individuals 6.88% Private Corporates 8.84% NRIs/ Director/ Others 2.94% GDR issue 10.72% *FIIs 45.95% *includes FPIs 29
Slide 31: Proforma Consolidated Profit and Loss Account – FY19
Proforma Consolidated Profit and Loss Account – FY19 FY 19 IBL BFIL FY 18 Y-o-Y(%) (IBL+BFIL) Net Interest Income 8,846 1,551 10,397 7,498 39% Other Income 5,647 544 5,931* 4,750 30% Total Income 14,493 2,095 16,328 12,248 35% Operating Expenses 6,405 878 7,023* 5,592 30% Operating Profit 8,
Slide 32: 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 33: Accolades
Accolades 32
Slide 34: Accolades
Accolades IndusInd Bank Nexxt Credit Card adjudged the ‘Credit Card of the Year’ at the Product of the year awards 2019, the world's largest consumer-voted award for the product innovation 33
Slide 35: Accolades
Accolades IndusInd Bank wins two awards at the BTVI National Awards For Marketing Excellence Best Performance Marketing Campaign for Nexxt Best Digital Campaign for Duo 34
Slide 36: Accolades
Accolades IndusInd Bank has won 4 awards at the Asset Asian Awards 2019, India for Best Payment and Collection Solution 35
Slide 37: Accolades
Accolades IndusInd Bank Ltd. is awarded as Best In Supply Chain Finance 2019 at Tech Supply Chain Conference & Exposition by Technology Supply Chain Innovation Awards TSC2019 36
Slide 38: Accolades
Accolades IndusInd Bank is adjudged winners of Stevie Awards-2019, Asia-Pacific under the category - Innovative Use of Technology in Customer Service. 37
Slide 39: Thank You
Thank You
Slide 40: 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