Indusind Bank Ltd. · NSE:INDUSINDBK
Indusind Bank — Q4 FY2020 Earnings Presentation
49 slides from Indusind Bank's earnings presentation, Apr 27, 2020
Slide 1: Indusind Bank
Indusind Bank April 27, 2020 To National Stock Exchange of India Ltd. (Symbol: INDUSINDBK) BSE Ltd. (Scrip Code: 532187) India International Exchange (Scrip Code: 1100027) Singapore Stock Exchange Luxembourg Stock Exchange Madam / Dear Sir, Subject: Disclosure under SEBI (Listing Obligations and Dis
Slide 2: Investor Presentation Q4-2019-20
Investor Presentation Q4-2019-20 April 27, 2020
Slide 3: Q4 – FY20 Performance Highlights
Stable operational metrics in Q4 FY20 Revenue growth of 32%; NII up by 45%; Fee up by 14% Q4 – FY20 Performance Highlights PPOP at Rs.2,858 crs, grew by 38% YoY; PPOP / Assets of 3.84% amongst the industry highest Consol PAT at Rs. 315 crs NIM up by 10 bps to 4.25% QoQ (3.59% LY) Credit
Slide 4: End of 3-year Planning Cycle (PC4)
Q4 – FY20 marks the end of our 3-year Planning Cycle 4 (PC4) themed “Market Share with Profitability” to “Digitize to Differentiate, Diversify and Create Domain Leadership”. 3
Slide 5: Planning Cycle (2017-2020) - Delivered Scale
Planning Cycle 4 (2017-2020) - Delivered Scale Revenue (Rs. Crs) Networth (Rs. Crs) 19,011 34,428 CAGR of 23% CAGR of 19% 10,234 20,272 2017 2020 2017 2020 Deposits (Rs. Crs) Advances (Rs. Crs) CAGR of 17% 2,02,027 2,06,783 CAGR of 22% 1,26,572 1,13,081 2017 2020 2017 2020 4
Slide 6: Planning Cycle (2017-2020) - Delivered Profitability
Planning Cycle 4 (2017-2020) - Delivered Profitability NIM (%) Cost/Income (%) 46.74 4.25 43.04 3.99 2017 2020 2017 2020 5
Slide 7: Planning Cycle (2017-2020)
Planning Cycle 4 (2017-2020) Branches Clients (mn) 25.00 1,911 1,200 9.50 2017 2020 2017 2020 Profit (Rs. Crs) 4,458 2,868 2017 2020 6
Slide 8: Planning Cycle (2017-2020) - Plan vs Outcome
Planning Cycle 4 (2017-2020) - Plan vs Outcome FY20 Outcome/CAGR Consolidated Loan Growth 25% - 30% 22% CASA Ratio 40% 40% Revenue Exceed Balance Resulting in 23% Growth Sheet Growth RoRWA > 2.4% 1.77% Branch 2,000 1,911* Network Customer Base Double to >20mn 25 million * includes 150 banking outlet
Slide 9: How We Measure Up On Key Metrics
How We Measure Up On Key Metrics Net Interest Margin (NIM) RoA RoE 4.15% 4.25% 18.45% 4.05% 4.10% 17.26% 2.05% 1.98% 1.82% 15.62% 3.59% 0.56% 0.42% 5.46% 3.69% Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Cost / Income Net NPA Revenue / Emp
Slide 10: 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 / short term FD programme IND AA+ for Senior bonds program by India Ratings and Research IND AA for Additional Tier I Bonds program by In
Slide 11: Consolidated Financial Performance
Consolidated Financial Performance 10
Slide 12: Steady Headline Numbers for Q4-FY20
Steady Headline Numbers for Q4-FY20 Y-o-Y Growth Q-o-Q Growth Net Interest Rs. 3,232 crs 45% 5% Income Total Fee Income Rs. 1,773 crs 14% (1%) Revenue Rs. 5,004 crs 32% 3% Operating Profit Rs. 2,858 crs 38% 4% Net Profit Rs. 315 crs (12%) (76%) 11
Slide 13: Top line momentum
Top line momentum Y-o-Y Growth Q-o-Q Growth Advances Rs. 2,06,783 crs 11% - Deposits Rs. 2,02,027 crs 4% (7%) CASA Rs. 81,557 crs (3%) (11%) SA Rs. 53,130 crs (2%) (18%) Borrowings Rs. 60,754 crs 28% 30% 12
Slide 14: Balance Sheet
Balance Sheet (Rs Crs) * Q4FY20 Q4FY19 Y-o-Y (%) Q3FY20 Q-o-Q (%) Capital & Liabilities Capital 694 603 15% 693 - Reserves and Surplus 33,381 26,083 28% 32,789 2% Share Warrant Subscription money 674 - - 674 - Deposits 2,02,027 1,94,868 4% 2,16,713 (7%) Borrowings 60,754 47,321 28%
Slide 15: Profit and Loss Account – Q4FY20
Profit and Loss Account – Q4FY20 (Rs Crs) Q4FY20 Q4FY19 Y-o-Y (%) Q3FY20 Q-o-Q (%) Net Interest Income 3,232 2,232 45% ▲ 3,074 5% ▲ Other Income 1,773 1,559 14% ▲ 1,790 (1%) ▼ Total Income 5,005 3,791 32% ▲ 4,864 3% ▲ Operating Expenses 2,148 1,724 25% ▲ 2,106 2% ▲ Operating Profit 2,857 2,068 38% ▲
Slide 16: Profit and Loss Account – FY20
Profit and Loss Account – FY20 (Rs. ‘crores) FY20 FY19 YoY (%) Net Interest Income 12,059 8,846 36% ▲ Other Income 6,953 5,647 23% ▲ Total Income 19,011 14,493 31% ▲ Operating Expenses 8,183 6,405 28% ▲ Operating Profit 10,829 8,088 34% ▲ Provisions & Contingencies 4,652 3,108 50% ▲ Profit before Ta
Slide 17: Key Financial Indicators
Key Financial Indicators FY19 Q4FY19 Q3FY20 Q4FY20 FY20 Return on Assets 1.39% 0.56% 1.82% 0.42% 1.56% PPOP / Average Assets 3.41% 3.20% 3.83% 3.84% 3.79% Return on Equity 13.25% 5.46% 15.62% 3.69% 14.67% Cost / Income Ratio 44.19% 45.46% 43.31% 42.90% 43.04% Net Interest Margin 3.80% 3.59% 4.15% 4.
Slide 18: Well Diversified Loan Book
Well Diversified Loan Book Loan Book (Rs crs) 206,783 207,413 206,783 186,394 144,954 44% 44% 46% 61% 60% (Rs crs) 56% 54% 56% Consumer Finance Mar-20 40% 39% Vehicle Loans 57,054 28% FY18 FY19 FY20 Dec-19 Mar-20 Comm. Vehicle Loans 23,948 12% FY18 and FY19 are not Consumer Finance Division Corporat
Slide 19: Diversified Corporate Loan Book
Diversified Corporate Loan Book SMA2 Sector % (Rs. crs) Lease Rental 4.27% 5 Gems and Jewellery 3.59% 7 Real Estate 3.36% - SMA 1 Outstanding: Steel 3.11% - 0.53% of loans NBFCs (other than HFCs ) 2.77% - SMA 2 Outstanding: Power Generation 1.20% 0.16% of loans Telecom- Cellular 1.11% - Accounts in
Slide 20: Well Rated Corporate Portfolio
Well Rated Corporate Portfolio 24% P E 22% R C 20% E N T 18% O 16% F 14% R Unsecured Non Fund Based % A T 12% Secured Non Fund Based % E D 10% Unsecured Fund Based % P Secured Fund Based % 8% O R T 6% F O 4% L I 2% O 0% IB1 (AAA) IB2+ IB2 (AA) IB2- (AA-) IB3+ (A+) IB3 (A) IB3- (A-) IB4+ IB4 (BBB) IB
Slide 21: 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-s
Slide 22: Improving CASA profile
Improving CASA profile Building CASA traction Expanding branch network CASA Uptick 1,00,000 50% Focus on target market segments 90,000 43.6% 43.1% 43.1% 41.5% 42.4% 40.4% 44% Government business 80,000 70,000 38% 86,539 85,838 91,865 Capital market flows 60,000 76,549 84,070 81,570 33% 50,00
Slide 23: Other Income
Other Income (Rs Crs) Q4FY20 Q4FY19 Y-o-Y (%) Q3FY20 Q-o-Q (%) Core Fee 1,390 1,419 2% ▼ 1,506 8% ▼ Securities/MM/FX 383 140 174% 284 35% Trading/Others Total 1,773 1,559 14% 1,790 1% ▼ 22
Slide 24: Diverse Revenues from Core Fee Income
Diverse Revenues from Core Fee Income (Rs Crs) Q4FY20 Q4FY19 Y-o-Y(%) Q3FY20 Q-o-Q(%) FY20 FY19 Y-o-Y(%) Trade and Remittances 189 189 - 185 2% 720 636 13% Foreign Exchange Income 248 289 14% 241 3% 1,016 1,015 - Distribution Fees 367 302 22% 347 6% 1,338 1,128 19% (Insurance, MF,
Slide 25: Diversified and Granular Fee Streams – Q4-FY20
Diversified and Granular Fee Streams – Q4-FY20 Corporate Banking Consumer Banking Trading and Other Income (27%) (52%) (21%) Trade and Remittances , 2% Trade and Foreign Investment Remittances , Exchange Banking - Project 9% 8% Finance / Advisory, Foreign 1% Exchange, Investment Banking - 6% Loan Sy
Slide 26: Yield / Cost Movement
Yield / Cost Movement 11.89% 11.97% 9.77% 9.88% Yield on Assets Yield on Advances 6.05% 6.49% 5.52% 5.73% Cost of Deposits Cost of Funds Q4FY20 Q3FY20 •Yield on Assets/Cost of funds are based on Total Assets/Liabilities Segment-wise Yield Q4FY20 Q3FY20 Outstanding Yield Outstanding Yield (Rs crs) (%
Slide 27: Credit Cost
Credit Cost (Rs Crs) FY16 FY17 FY18 FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 FY20 Corporate Bank 258 401 468 2,134 67 101 283 1,442 1,893 Consumer Finance 244 303 433 585 237 262 293 344 1,136 Gross Credit Costs 502 704 901 2,719 304 363 576 1,786 3,029 Gross Credit Costs 57 62 62 146 16 18 28 86 146 (Basis
Slide 28: Loan Portfolio - Movement in NPA and Restructured Advances
Loan Portfolio - Movement in NPA and Restructured Advances (Rs Crs) Q4FY20 Q3FY20 Corporate Consumer Total Corporate Consumer Total Opening Balance 3,050 1,528 4,578 2,932 1,438 4,370 Additions 1,249(1) 808 2,058 1,237 708 1,945 Deductions 884(2) 606 1,490 1,119 618 1,737 Gross NPA 3,416 1,731 5,147
Slide 29: NPA Composition – Consumer Finance
NPA Composition – Consumer Finance (Rs Crs) Com. Const. Small HL/PL/O Q4-FY20 Utility TW Cars Tractor BBG/LAP Cards MFI Total Vehicle Equip. CV thers Gross NPA 466 45 85 63 167 52 58 257 78 92 368 1,731 Gross NPA % 1.94% 1.03% 1.05% 1.78% 3.14% 0.71% 1.23% 1.21% 0.93% 1.93% 1.51% 1.49% Com. Const. S
Slide 30: CRAR
CRAR (Rs Crs) 31 Mar 20 31 Dec 19 31 Dec 19 Incl. 9M FY 20 Basel – III Basel – III PAT Credit Risk, CVA and UFCE 222,175 2,14,105 2,14,105 Market Risk 8,077 8,761 8,761 Operational Risk 28,353 22,986 22,986 Total Risk Weighted Assets 258,605 2,45,852 2,45,852 Core Equity Tier 1 Capital Funds 34,196
Slide 31: Distribution Expansion to Drive Growth
Distribution Expansion to Drive Growth Strengthening Distribution Infrastructure Jun. 30, Sep. 30, Dec. 31, Mar. 31, Particulars 2019 2019 2019 2020 IBL Branches/Banking 1,701 1,753 1,851 1,911* Outlets BFIL Branches 1,938 2,028 2,163 2,071 Vehicle Finance 855 842 859 853 Marketing Outlets Total 4,4
Slide 32: Shareholding Pattern
Shareholding Pattern March 31, 2020 (Basis Paid Up Capital) Promoters# MFs / Banks/ Insurance 13.03% Co 14.08% Individuals 7.16% Private Corporates 3.90% NRIs/ Director/ Others 4.01% GDR issue 9.15% FIIs* 48.67% *includes FPIs # 14.67% with diluted capital including warrants/ESOP 31
Slide 33: Portfolio Level Disclosures
Portfolio Level Disclosures 32
Slide 34: Microfinance
Microfinance 33
Slide 35: BFIL Is in Best Position to Regularize Operations Quickly
BFIL IS IN BEST POSITION TO REGULARIZE OPERATIONS QUICKLY 80% of portfolio is Rural. Rural Majority impact of COVID felt in Metros/Urban areas Low migration impact in Rural Weekly model assists quick regularization (as witnessed during demonetization) Weekly ~50% of customers are exclusive
Slide 36: Microfinance Credit Bureau Data
Microfinance Credit Bureau Data JLG* Vs. Non-JLG model (30 + DPD) Repayment Frequency^ (30 + DPD) BFIL has 100% of BFIL has 100% of its loans in its loans in JLG Weekly format repayment format 18.2% 23.9% 11.3% 8.5% 5.7% Non-JLG JLG Monthly Fortnightly Weekly *JLG – Joint liability group lending mod
Slide 37: Vehicle Finance
Vehicle Finance 36
Slide 38: CV Portfolio – As per a Leading Bureau
CV Portfolio – As per a Leading Bureau 60+ Delinquency 90+ Delinquency 14 5 4.5 12 4 10 3.5 3 8 2.5 6 2 4 1.5 1 2 0.5 0 0 IBL Industry IBL Industry • Strong portfolio performance (60+ and 90+ QoQ) compared to competition and market
Slide 39: CE Portfolio – As per a Leading Bureau
CE Portfolio – As per a Leading Bureau 60+ Delinquency 90+ Delinquency 9 1.4 8 1.2 7 1 6 5 0.8 4 0.6 3 0.4 2 0.2 1 0 0 IBL Industry IBL Industry • Strong portfolio performance (60+ and 90+ QoQ) compared to competition and market
Slide 40: PV Portfolio – As per a Leading Bureau
PV Portfolio – As per a Leading Bureau 60+ Delinquency 90+ Delinquency 8 1.8 7 1.6 1.4 6 1.2 5 1 4 0.8 3 0.6 2 0.4 1 0.2 0 0 IBL Industry IBL Industry • Strong portfolio performance (60+ and 90+ QoQ) compared to competition and market
Slide 41: Tractor Portfolio – As per a Leading Bureau
Tractor Portfolio – As per a Leading Bureau 60+ Delinquency 90+ Delinquency 12 4.5 4 10 3.5 8 3 2.5 6 2 4 1.5 1 2 0.5 0 0 IBL Industry IBL Industry • Strong portfolio performance (60+ and 90+ QoQ) compared to competition and market
Slide 42: Other Retail Products
Other Retail Products 41
Slide 43: Retail Products 30DPD vs. Industry
Retail Products 30DPD vs. Industry Industry IBL 100% 100% 100% 59% 47% 39% LAP Personal Loans Credit Cards • Strong portfolio performance compared to market
Slide 44: Accolades
Accolades 43 IndusiInd Bank
Slide 45: Accolades
Accolades IndusInd Bank is awarded with the IndusInd Bank is awarded with the Spirit of Innovation awards for the Best Technology Bank, Best use of IT launch of its IndusCorp, Duo Card, and Data Analytics for Business Nexxt Credit Card and Data Outcome and Best Payment Initiative Warehouse & Power B
Slide 46: Accolades
Accolades IndusInd Bank has been awarded IndusInd Bank has witnessed the with the BankTech Awards 2020 highest' growth in brand value for its efforts in using technology amongst top global banks, according to solutions to provide a suite of The Banker's Top 500 Banking Brands services enabling a sup
Slide 47: Accolades
Accolades IndusInd Bank has been awarded with the Best Bank Award in the mid-sized bank category at the 24th edition of the Business Today - Money Today Financial Awards. 46
Slide 48: Thank You
Thank You \) IndusiInd Bank A7
Slide 49: 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