IndusInd Bank Ltd. · NSE:INDUSINDBK
IndusInd Bank — Q2 FY2017 Earnings Presentation
33 slides from IndusInd Bank's earnings presentation, Oct 12, 2016
Slide 1: Investor Presentation
Investor Presentation October 12, 2016
Slide 2: Q2 – FY17 Performance Highlights
Undeviating quarter with robust all round growth Q2 – FY17 Performance Highlights Persistent uptrend in Net Interest Income; Y-o-Y up by 33% and Q-o-Q up by 8% Y-o-Y PAT growth up by 26% ; Q-o-Q up by 6% Fee growth at 24% Y-o-Y; Non-Interest Income to revenue remains healthy at 40% NIM Y-o
Slide 3: Plan vs Outcome
Plan vs Outcome Planning Cycle 3 (2014–17) Q2 FY 17 Outcome Loan Growth 25% - 30% 26% CASA Growth CASA > 35% 36.54% Resulting in Fee Growth Exceed Loan Growth 24% Branch Network To Double from 602 1035 Customer Base To Double On track 3
Slide 4: How We Measure Up On Key Metrics
How We Measure Up On Key Metrics Net Interest Margin (NIM) RoA RoE* QIP & Pref. 1.93% 1.92% 1.90% 1.94% 1.93% Allot. 16.70% Rs 5081 crs 3.88% 3.91% 3.94% 3.97% 4.00% 15.05% 15.38% 14.56% 14.05% Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17 *
Slide 5: Ratings
Ratings ICRA AA for Upper Tier II bond program by ICRA CRISIL A1+ for certificate of deposit program by CRISIL IND A1+ for Short Term Debt Instruments by India Ratings and Research IND AA for Upper Tier II bond program by India Ratings and Research IND AA+ for Senior bonds program by India
Slide 6: Financial Performance
Financial Performance 6 IndusiInd Bank
Slide 7: Headline Numbers for Q2-FY17
Headline Numbers for Q2-FY17 Y-o-Y Growth Q-o-Q Growth Net Interest 33% 8% Rs 1,460 crs Income Fee Income Rs 971 crs 24% - Revenue Rs 2,431 crs 29% 4% Operating Profit Rs 1,282 crs 27% 4% Net Profit Rs 704 crs 26% 6% 7
Slide 8: Headline Numbers for HY-FY17
Headline Numbers for HY-FY17 Y-o-Y Growth Net Interest Rs 2,817 crs 36% Income Fee Income Rs 1,943 crs 26% Revenue Rs 4,760 crs 31% Operating Profit Rs 2,515 crs 30% Net Profit Rs 1,366 crs 26% 8
Slide 9: Top line momentum
Top line momentum Y-o-Y Growth Q-o-Q Growth Advances Rs 98,949 crs 26% 6% Corporate Rs 58,391 crs 26% 6% Advances Consumer Finance Rs 40,558 crs 27% 5% Advances Deposits Rs 1,12,313 crs 39% 10% CASA Rs 41,034 crs 46% 17% SA Rs 20,567 crs 37% 8% Borrowings Rs 15,078 crs (29%) (12%) 9
Slide 10: Balance Sheet
Balance Sheet (Rs Crs) Q2FY17 Q2FY16 Y-o-Y (%) Q1FY17 Q-o-Q (%) Capital & Liabilities Capital 597 592 1% 596 - Reserves and Surplus 18,518 16,178 14% 17,786 4% Deposits 1,12,313 80,840 39% 1,01,768 10% Borrowings 15,078 21,117 (29%) 17,176 (12%) Other Liabilities and Provisions 7,332
Slide 11: Profit and Loss Account – Q2FY17
Profit and Loss Account – Q2FY17 (Rs Crs) Q2FY17 Q2FY16 Y-o-Y (%) Q1FY17 Q-o-Q (%) Net Interest Income 1460.31 1,094.28 33% 1,356.42 8% Other Income 970.42 783.54 24% 972.97 - Total Income 2,430.73 1,877.82 29% 2,329.39 4% Operating Expenses 1149.08 871.29 32% 1,095.60 5% Operating P
Slide 12: Profit and Loss Account – HY FY17
Profit and Loss Account – HY FY17 (Rs Crs) HY-FY17 HY-FY16 Y-o-Y (%) Net Interest Income 2,816.73 2,074.94 36% Other Income 1,943.39 1,545.15 26% Total Income 4,760.12 3,620.09 31% Operating Expenses 2,244.68 1,690.84 33% Operating Profit 2,515.44 1,929.25 30% Provisions & Contingencies 44
Slide 13: Key Financial Indicators
Key Financial Indicators Q2FY17 Q2FY16 Q1FY17 Return on Assets 1.93% 1.93% 1.94% ROE (On average equity) 15.38% 16.70% 15.05% Cost / Income Ratio 47.27% 46.40% 47.03% Net Interest Margin 4.00% 3.88% 3.97% Net NPA 0.37% 0.31% 0.38% EPS (annualized, Rs. per share) 47.24 38.16 44.44 Capital + Reserves
Slide 14: Well Diversified Loan Book
Well Diversified Loan Book Loan Book (Rs crs) 88,419 93,678 98,949 98,949 68,788 52% 55,102 59% 59% 58% 44,321 59% 55% 51% 41% 48% 42% 41% 49% 45% 41% FY13 FY14 FY15 FY16 Jun-16 Sep-16 Sep-16 (BBG forming part Consumer Finance Division Corporate & Commercial Banking of Consumer) (Rs crs) Small (Rs c
Slide 15: Diversified Corporate Loan Book
Diversified Corporate Loan Book Gems and Jewellery 6.15% Lease Rental 4.63% Telecom- Cellular 4.00% Microfinance 2.61% Real Estate 2.41% Steel 1.80% Power Generation 1.73% Housing Finance Companies 1.64% Media,Entertainment & Advt 1.49% Constn related to infra.- EPC 1.49% Services 1.27% Contract Con
Slide 16: Well Rated Corporate Portfolio
Well Rated Corporate Portfolio 24% P 22% E R C 20% Investment Grade Sub Investment Grade E N 18% T 16% O F 14% Unsecured Non Fund Based % R Secured Non Fund Based % A 12% Unsecured Fund Based % T Secured Fund Based % E 10% D 8% P O R 6% T F 4% O L 2% I O 0% IB1 IB2+ IB2 IB2- IB3+ IB3 IB3- IB4+ IB4 I
Slide 17: Improving CASA profile
Improving CASA profile Building CASA traction CASA Uptick 45,000 38% Expanding branch network 34.7% 34.7% 35.0% 35.2% 34.4% 36.5% 40,000 Focus on target market segments 35,000 33% 30,000 41,034 Government business 25,000 27% 32,724 35,043 Capital market flows 20,000 30,232 26,945 28,085 21%
Slide 18: Other Income
Other Income (Rs crs) Q2FY17 Q2FY16 Y-o-Y (%) Q1FY17 Q-o-Q(%) Core Fee 825.57 673.30 23% 781.91 6% Securities/MM/FX 144.85 110.24 31% 191.06 (24%) Trading/Others Total 970.42 783.54 24% 972.97 - 18
Slide 19: Diverse Revenues from Core Fee Income
Diverse Revenues from Core Fee Income (Rs crs) Q2FY17 Q2FY16 Y-o-Y(%) Q1FY17 Q-o-Q(%) Trade and Remittances 102.50 84.35 22% 109.34 (6%) Foreign Exchange Income 155.63 169.57 (8%) 150.97 3% Distribution Fees 155.77 119.21 31% 136.69 14% (Insurance, MF, Cards) General Banking Fees 49.43 4
Slide 20: Yield / Cost Movement
Yield / Cost Movement 11.86% 12.07% 9.51% 9.64% Yield on Assets Yield on Advances 6.60% 6.93% 5.51% 5.67% Cost of Deposits Cost of Funds Q2FY17 Q1FY17 •Yield on Assets/Cost of funds are based on Total Assets/Liabilities Segment-wise Yield Q2FY17 Q1FY17 Outstanding Yield Outstanding Yield (Rs crs) (%
Slide 21: Credit Cost
Credit Cost (Rs crs) FY14 FY15 FY16 Q1FY17 Q2FY17 HYFY17 Corporate Bank 93.70 143.74 257.68 64.65 73.57 138.22 Consumer Finance 169.97 195.19 243.82 79.70 78.13 157.83 Gross Credit Costs 263.67 338.93 501.50 144.35 151.70 296.05 Gross Credit Costs 48 49 57 15 15 30 (Basis Points on Advances) Net Cre
Slide 22: Loan Portfolio - Movement in NPA and Restructured Advances
Loan Portfolio - Movement in NPA and Restructured Advances (Rs crs) Q2FY17 Q1FY17 Corporate Consumer Total Corporate Consumer Total Opening Balance 420 441 861 382 395 777 Additions 73 188 261 94 159 253 Deductions 69 154 223 56 113 169 Gross NPA 424 475 899* 420 441 861* Net NPA 369 356 % of Gross
Slide 23: NPA Composition – Consumer Finance - Vehicles
NPA Composition – Consumer Finance - Vehicles (Rs crs) Com. Const. Small LAP & Q2-FY17 Utility TW Cars Tractor Cards Total Vehicle Equip. CV others Gross NPA 152 25 51 22 116 21 57 7 24 475 Gross NPA % 1.07% 1.17% 1.40% 0.97% 3.62% 0.49% 0.71% 0.49% 1.68% 1.17% Com. Const. Small LAP & Q1-FY17 Utilit
Slide 24: CRAR
CRAR (Rs Crs) 30 Sep 16 30 Jun 16 Basel – III Basel – III Risk Weighted Assets - Credit Risk, CVA and UFCE 1,09,512 1,05,027 - Market Risk 6,377 5,091 - Operational Risk 11,466 11,466 - Total RWA 1,27,355 1,21,584 Core Equity Tier 1 / Tier 1 Capital Funds 18,697 18,000 Tier 2 Capital Funds 814 744 T
Slide 25: Distribution Expansion to Drive Growth
Distribution Expansion to Drive Growth Strengthening Distribution Infrastructure Dec. 31, Mar. 31, June 30, Sept 30, Particulars 2015 2016 2016 2016 Branch 905 1,000 1,004 1,035* Network ATMs 1,621 1,800 1,885 1,935 *includes 70 specialized branches Note: Numbers given above are total • Branch/Repre
Slide 26: Shareholding Pattern
Shareholding Pattern September 30, 2016 NRIs/ Director/ Others, 1.53 GDR issue, 10.84 Promoters, 14.86 Individuals, 6.74 MFs / Banks/ Insurance Co, 11.59 Private Corporates, 10.63 FIIs*, 43.81 *includes FPIs 26
Slide 27: Accolades
Accolades wy IndusiInd Bank
Slide 28: Accolades
Accolades IndusInd Bank features among Forbes’ Super 50 Companies in India. IndusInd Bank Awarded the “Best Bank Award” for Innovative Use of Technology at the 12th IDRBT Banking Technology Excellence Awards 2015-16. 28
Slide 29: Accolades
Accolades Mr. Romesh Sobti was awarded as ‘The Banker of the Year’ at the Financial Express Best Banks Awards 2015. IndusInd Bank received ‘Runner-up award’ - New Private Sector Bank’ category, at the Financial Express Best Banks Awards 2015. 29
Slide 30: Accolades
Accolades IndusInd Bank has been ranked No. 12 in the prestigious 'Brandz Top 50 Most Valuable Indian Brands 2016‘as adjudged by Kantar Millward Brown and WPP with a brand value of $ 1.80 bn - a growth of 18% from last year. IndusInd Bank was recognized as a ‘Symbol of Excellence’ in the Banking cat
Slide 31: Accolades
Accolades IndusInd Bank was honoured with the CNBC Asia’s Corporate Social Responsibility Award. The Bank was recognized as the Best Private Sector Bank for Retail Growth Performance at Dun & Bradstreet “India’s Leading SME Companies & SME Business Excellence Awards 2016”. 31
Slide 32: Thank you
Thank you “2 IndusiInd Bank
Slide 33: 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