Indusind Bank Ltd. · NSE:INDUSINDBK
Indusind Bank — Q3 FY23 Earnings Presentation
47 slides from Indusind Bank's earnings presentation, Jan 18, 2023
Slide 1: Investor Presentation Q3-FY23
Investor Presentation Q3-FY23 | December 2022 January 18, 2023
Slide 2: IndusInd Bank at a Glance
IndusInd Bank at a Glance 5th Largest Private Bank ₹2,72,754 crs ₹ 3,25,278 crs 33 mn 6,352 with Disproportionately Loans Deposits Customers Group Network Large Distribution Network Diversified Across Products and Geographies Across Segments Pan India Universal Banking Approach 53:47 Loan Mix 42% CA
Slide 3: Key Financial Highlights for Q3 FY23
Key Financial Highlights for Q3 FY23 Loans Deposits CASA Term Deposits Total Assets Balance ₹2,72,754 crs ₹3,25,278 crs ₹1,36,379 crs ₹1,88,899 crs ₹4,44,485 crs Sheet 19% YoY 5% QoQ 14% YoY 3% QoQ 14% YoY 2% QoQ 15% YoY 4% QoQ 14% YoY 4% QoQ Net Interest Income Total Fee Income Revenue Operating Pr
Slide 4: Consolidated Balance Sheet
Consolidated Balance Sheet ₹In crs Q3 FY23 Q3 FY22 Y-o-Y (%) Q2 FY23 Q-o-Q (%) Capital & Liabilities Capital 775 775 - 775 - Reserves and Surplus 52,109 45,830 14% 50,109 4% Deposits 3,25,278 2,84,484 14% 3,15,532 3% Borrowings 47,284 45,669 4% 40,673 16% Other Liabilities and Provisions
Slide 5: Consolidated Profit and Loss Account – Q3 & 9M FY23
Consolidated Profit and Loss Account – Q3 & 9M FY23 ₹In Crore Q3FY23 Q3FY22 Y-o-Y (%) Q2FY23 Q-o-Q (%) 9M FY23 9M FY22 Y-o-Y (%) Net Interest Income 4,495 3,793 18% ▲ 4,302 4% ▲ 12,923 11,016 17% ▲ Other Income 2,077 1,877 11% ▲ 2,011 3% ▲ 6,019 5,442 11% ▲ Total Income 6,572 5,670 16% ▲ 6,313 4% ▲
Slide 6: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 7: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 8: Well Diversified Loan Book across Consumer and Corporate Products
Well Diversified Loan Book across Consumer and Corporate Products (₹crs) Loan Book Mix (₹crs) 2,28,583 2,39,052 2,47,960 2,60,129 2,72,754 Consumer Banking Dec-22 % Vehicle Finance 71,665 26% 46% 46% 46% 47% 47% Commercial Vehicle 26,819 10% Utility Vehicle 8,311 3% 54% 54% 54% 53% 53% Small CV 3,36
Slide 9: Vehicle Finance: Granular Portfolio Across Vehicle Categories
Vehicle Finance: Granular Portfolio Across Vehicle Categories Overview of Vehicle Finance Division Diversified Vehicle Loan Book across Vehicle Categories (%) Two Wheelers Small CV 7% 5% Market Leader Utility Vehicle 35+ Years of Vintage Focus on Business CV in Most Products 12% Across Credit Cycles
Slide 10: Microfinance: Bridging the Financial Inclusion Gap
Microfinance: Bridging the Financial Inclusion Gap Micro Finance Loan Book (₹crs) 30,612 29,403 29,617 29,688 27,443 2nd Largest 10mn 1.34 Lacs Villages Micro Finance Women Customers covered across 21 8% YoY Lender States -% QoQ Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Average Ticket Size (₹) 29,
Slide 11: Corporate Portfolio – Focus on Granular, Higher Rated Customers
Corporate Portfolio – Focus on Granular, Higher Rated Customers Corporate Loan Book (₹crs) Improving Risk Profile * 1,27,010 BB+ & Below BBB-, BBB, BBB+ A-, A, A+ AA-, AA, AA+ AAA 1,21,766 1,14,429 1,09,463 1,05,481 20% YoY 23% 23% 22% 22% 21% 24% 25% 24% 27% 27% 26% 28% 4% QoQ 24% 22% 23% 22% 5
Slide 12: Non-Vehicle Retail Loans – Risk Calibrated Growth Strategy
Non-Vehicle Retail Loans – Risk Calibrated Growth Strategy Business Banking (₹crs) Loan Against Property (₹crs) 12,512 12,839 12,203 9,502 11,892 9,009 9,248 11,314 8,664 8,817 13% YoY 10% YoY 3% QoQ 3% QoQ Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Credit Cards (₹
Slide 13: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 14: Deposit Growth Driven by Granular Retail Deposits; Building Stable Low-Cost Deposit Book
Deposit Growth Driven by Granular Retail Deposits; Building Stable Low-Cost Deposit Book Deposits (₹crs) Retail Deposits as per LCR (₹crs)* Retail Deposits Share of Retail Deposits (%) 42% 41% 41% 3,25,278 41% 3,15,532 3,02,719 40% 2,93,349 2,84,484 14% YoY 21% YoY 1,13,615 1,20,509 1,24,105 1
Slide 15: Healthy Share of CASA; Strong Liquidity Profile
Healthy Share of CASA; Strong Liquidity Profile CASA (₹crs) CA (₹crs) CASA Share of CASA % CA Share of CA % 43% 42% 14% 15% 43% 42% 42% 12% 12% 12% 1,33,525 1,36,379 50,007 1,30,508 44,157 1,19,894 1,25,333 36,507 35,265 50% YoY 33,279 14% YoY 2% QoQ 13% QoQ Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q
Slide 16: Borrowings Constituted by Long Term Sources
Borrowings Constituted by Long Term Sources Borrowings Mix (%) Borrowings (₹crs) Borrowings (₹Cr) % of Total Liabilities Short-Term Infrastructure FCY (less than Bonds 12 months) AT1 Bonds 3% 6% 3% Tier 2 Bonds 12% 12% 6% 10% 10% 11% 47,323 47,284 45,669 41,812 40,673 Refinance from Development Long
Slide 17: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 18: Strong Product Groups with Efficient Capital Deployment
Strong Product Groups with Efficient Capital Deployment LC-BG Mix Low RWA Consumption (₹crs) One of the largest LC - Usance treasuries in Indian banks Notional Amount Risk Weighted Assets 17% with best-in-class risk 13,20,269 LC - Sight Financial management systems 8% Guarantees 36% Robust frame
Slide 19: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 20: Yield / Cost Movement
Yield / Cost Movement 11.75% 11.51% 8.99% 8.65% Yield on Assets Yield on Advances 5.47% 5.10% 4.72% 4.41% Cost of Deposits Cost of Funds Q3FY23 Q2FY23 Segment-wise Yield: Q3FY23 Q2FY23 Outstanding (₹crs) Yield (%) Outstanding (₹crs) Yield (%) Corporate Banking 1,27,010 8.57% 1,21,766 8.20% Consumer
Slide 21: Diversified and Granular Fee and Other Income Streams
Diversified and Granular Fee and Other Income Streams ₹In crs Q3FY23 Q3FY22 Y-o-Y(%) Q2FY23 Q-o-Q(%) Trade and Remittances 201 188 7% 189 6% Foreign Exchange Income 249 228 9% 268 (7%) Cards and Distribution Fees 619 388 59% 559 11% General Banking Fees 248 239 4% 307 (19%) Loan Proc
Slide 22: Operating Profit Margins Amongst the Highest in Industry
Operating Profit Margins Amongst the Highest in Industry Net Interest Margin (%) Total Fee to Asset Ratio (%) 1.9% 1.9% 1.9% 1.9% 1.9% 4.20% 4.21% 4.24% 4.27% 4.10% Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Operating Profit Margin (%) Cost to Income Ratio (%) 5.
Slide 23: Key Financial Indicators
Key Financial Indicators Return on Assets (%) Return on Equity (%) 1.73% 1.80% 1.87% 1.51% 15.23% 1.35% 13.44% 14.45% 10.88% 11.92% Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Earning Per Share – Annualized (₹) Net Worth (₹ crs) 101.3 45,817 47,265 50,686 93.2 48,
Slide 24: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 25: Movement in Non-Performing Assets
Movement in Non-Performing Assets Q3FY23 Q2FY23 ₹In crs Corporate Consumer Total Corporate Consumer Total Opening Balance 2,251 3,316 5,567 2,492 3,441 5,933 Fresh Additions 119 1,348 1,467 179 1,393 1,572 -from Standard 80 1,055 1,135 66 926 992 -from Restructured 39 293 332 113 467 580 Deductions
Slide 26: NPA Composition – Consumer Banking
NPA Composition – Consumer Banking (₹crs) Q3 FY23 CV Utility CE Small CV TW Cars Tractor BBG/LAP HL/PL/Others Cards MFI Total Gross NPA 597 38 176 75 368 65 171 814 226 159 1,153 3,842 Gross NPA % 2.21% 0.46% 1.88% 2.21% 7.54% 0.64% 1.86% 3.56% 1.56% 2.03% 3.75% 2.60% Q2 FY23 CV Utility CE Small CV
Slide 27: Loan Related Provisions held as on December 31, 2022
Loan Related Provisions held as on December 31, 2022 Specific provision of ₹ 3,959 crs for non-performing accounts(towards PCR) Floating provisions of ₹ 70 crs (towards PCR) Standard contingent provisions of ₹ 2,192 crs surplus outside PCR Standard asset provisions of ₹ 1,214 crs other than
Slide 28: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 29: Healthy Capital Adequacy
Healthy Capital Adequacy CET1 Ratio (%) 15.96% 16.06% 15.97% 16.01% 15.13% Capital Adequacy ₹In crs 31 Dec 22 30 Sep 22 Credit Risk, CVA and UFCE 2,76,259 2.65,073 Market Risk 8,199 8,372 Operational Risk 38,026 38,026 Total Risk Weighted Assets 3,22,484 3,11,471 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 C
Slide 30: Shareholding Pattern and Credit Ratings
Shareholding Pattern and Credit Ratings Diversified Shareholding Credit Ratings Domestic Rating: GDR issue NRIs/ Director/ 8.19% CRISIL AA + for Infrastructure Bonds program/Tier 2 Bonds Others Promoters 1.92% 15.16% CRISIL AA for Additional Tier 1 Bonds program Individuals 6.87% MFs / Banks/
Slide 31: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 32: Disproportionately Large Distribution Network with Unparalleled Rural Presence
Disproportionately Large Distribution Network with Unparalleled Rural Presence Distribution Network with Deep Rural Presence Strengthening Distribution Infrastructure Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, Particulars 2021 2021 2022 2022 2022 ~33 mn ~1,34,000 Branches/Banking Outlets 2,103 2,265 2,
Slide 33: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 34: Digital Strategy at IndusInd continues to drive impact across 3 primary Business Objectives
Digital Strategy at IndusInd continues to drive impact across 3 primary Business Objectives Digital transaction intensity continues to grow and more and more of existing business moving digital 1 93% of transactions 26% YoY growth in 87% YoY growth in 54% QoQ growth in processed digitally IndusMobil
Slide 35: Digital Strategy at IndusInd continues to drive impact across 3 primary Business Objectives
Digital Strategy at IndusInd continues to drive impact across 3 primary Business Objectives Direct platform led business continues to grow at a robust pace Do It Yourself (DIY) Direct Platform led Business: Assets grew 450% YoY, Liabilities grew 53% YoY Open Banking / BaaS led business: Digital Part
Slide 36: Digital Stack for Individuals
Digital Stack for Individuals: Stack getting increasingly robust to drive superior customer experience and DIY, STP & BaaS agenda Credit Cards Personal Loans Mobile Banking • Co-browsing enabled for CC DIY to increase lead conversion and tele-sales • Migration of personal loans to easycredit • ~60%
Slide 37: Digital Stack for MSME: Continue to enhance capabilities on Digital MSME Stack
Digital Stack for MSME: Continue to enhance capabilities on Digital MSME Stack Digital current account with VKYC now live, digitized renewals and enabled real time decisioning for small ticked unsecured business loans IndusEasyCredit for Businesses Awarded in SME Launched Digital Current Connect Cat
Slide 38: Data backed analytics is becoming core of all customer engagement and risk decisions
Data backed analytics is becoming core of all customer engagement and risk decisions 2. Cloud Native Infra • Azure and SAS Viya powered data analytics platform. • Change Data Capture Tool • 100+ compute nodes • 1000+ people using to fuel growth 04 4. Impact • 100 Terabyte of data handling • Digital
Slide 39: Continue to invest in MarTech capabilities to lower cost of acquisition
Continue to invest in MarTech capabilities to lower cost of acquisition and to drive customer engagement Further strengthening of MarTech… enabling new capabilities & use-cases …and driving Impact Cost of acquisition for CC went down by 43% Omni-channel Real Time Event Driven Engagement 1,000+ 150+
Slide 40: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 41: ESG highlights for Q3 of FY23
ESG highlights for Q3 of FY23 Partnerships • Only Bank selected for pilot exercise of TNFD – A UN supported initiative for Sustainable ESG Ratings Developing New ESG Agriculture • Highest ranked linked products among the top 5 • Holistic platform for Indian Private sector supporting Women banks in C
Slide 42: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Heathy Disproportionately Executing Digital ESG Experienced Cap
Slide 43: Board of Directors with Varied Expertise
Board of Directors with Varied Expertise Name Nature of Directorship Special Knowledge /Expertise Prior Experience Non-Executive, Non- Banking, Finance, Human Previously, CMD of Union Bank of India, Executive Director of Allahabad Bank, Mr. Arun Tiwari Independent, Part-time Resource, Risk Managemen
Slide 44: Experienced and Well-knit Management Team
Experienced and Well-knit Management Team Name Designation Exp (Yrs) Prior Experience Career banker with years of rich experience in large multi-national banks such as Citibank, Bank of Mr. Sumant Kathpalia Managing Director & CEO 30+ America and ABN AMRO Mr. Arun Khurana Deputy CEO 28+ Regional Hea
Slide 45: Awards and Accolades
Awards and Accolades ‘Marksmen’ ‘Euromoney 2022 Market Leaders Award’ IndusInd Bank was honoured as "Most Preferred IndusInd Bank is proud to be ranked as a Market Workplace 2022–23 by Marksmen" Leader for ESG in India by Euromoney 2022 Global Transaction Banking Innovation Awards 2022 Best Transact
Slide 46: Campaigns/Announcements
Campaigns/Announcements Launch of the #CheerForThemToHear campaign during the T20 Cricket World Cup for the Blind in Dec 2022. Video Post Video Post This was a campaign we ran with the following objectives: • To position IndusInd as a responsible brand by creating awareness about the Bank’s support
Slide 47: 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