IndusInd Bank Ltd. · NSE:INDUSINDBK

IndusInd Bank — Debt Investor Presentation (June 2018)

30 slides from IndusInd Bank's debt investor presentation, Jun 12, 2018

  1. Slide 1: IndusInd Bank exchange disclosure letter

    Induslnd Bank June 12, 2018 The Asst. Vice President 'fhe Deputy General Manager Listing Department Corporate Relationship Dept. National Stock Exchange of India Ltd. BSE Ltd. Exchange Plaza, 5th Floor 1't Floor, New Trading Ring Plot No.C/l, G Block Rotunda Building, P. J. Towers Bandra-Kurla Compl

  2. Slide 2: Debt Investor Presentation

    Debt Investor Presentation June 2018

  3. Slide 3: India – Some Macro Concerns, but Growth Remains Intact

    India – Some Macro Concerns, but Growth Remains Intact Positive Negative GDP growth bottomed out in H1FY18 and is picking up now Oil price spike adds to fiscal, current account & inflationary pressures Agriculture Industry Services Real GDP USD/Barrel 74.54 7.4% Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Oc

  4. Slide 4: IndusInd Bank – Consistently Building Scale with Profitability

    IndusInd Bank – Consistently Building Scale with Profitability Strength Growth Returns  CRAR at 15.03%; CET1 at 13.42% 3 Year CAGR FY18  RoA = 1.90%  Strong Asset Quality with impaired assets  Loans 25% 28% proportion amongst the lowest in Indian banks;  Deposits 28% 20%  RoE = 16.48% Net NPAs

  5. Slide 5: Overview of the Bank

    Overview of the Bank  Leading private sector bank and financial services company in India Shareholding (1)  Incorporated in January, 1994; Current customer base of ~11 million(1) and Total Mfs/Banks/Insurance Co Assets of over Rs 2,200 bn(1) 10% Promoters 15%  Pan India presence through a network

  6. Slide 6: Business Units

    Organization Structure Global Markets Transaction Banking Business Units Product Groups Client Groups Consumer Banking Corporate Banking Consumer Finance Corporate & Investment Banking Retail Liabilities Commercial Banking Banking Channel Management Financial Institutions Group & Services Wealth Man

  7. Slide 7: Benchmarking Growth with Profitability

    Benchmarking Growth with Profitability IBL is one of the leaders in growth with profitability in the Indian Banking Sector  A comparison of IBL with the top 7 Public Sector (PSU) and top 5 Private Sector Banks (PB) 40% Revenue Growth * Bubble size indicates Profit After Tax PB3 30% PB5 IBL 20% PSB7

  8. Slide 8: Domestic Ratings

    Domestic Ratings  CRISIL(1) 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 (2)  IND AA for Additional Tier I Bonds program by India Ratings and Research 

  9. Slide 9: Award Winning Brand / Franchise

    Award Winning Brand / Franchise “The Best CEO (BFSI)” Forbes’ Super 50 Ranked 12th Most Winner- Fraud Mr. Romesh Sobti Companies in India Valuable Indian Brands Management and Cybersecurity BrandZ Top 50 Business Today Forbes India Celent Model Bank WPP Plc & Milward Brown 2016 2016 2017 2017 8

  10. Slide 10: Presentation Path

    Presentation Path  Capital Adequacy 1  Asset Quality 2  Management Track Record & Strategy 3  Earnings Update 4  Liquidity & Funding Profile 5  Building Sustainable Banking 6 9

  11. Slide 11: 1. Strong Capital Adequacy

    1. Strong Capital Adequacy  Bank has maintained strong capital adequacy levels well in excess Rs bn 31 Mar 16 31 Mar 17 31 Mar 18 of the minimum regulatory requirement Credit Risk, CVA and UFCE 994 1,220 1,350  Raised Rs 10 billion of Additional Tier I (AT1) bonds in FY18 to Market Risk 55 67 96 a

  12. Slide 12: 1. Deploying Capital Efficiently

    1. Deploying Capital Efficiently Return on Risk Weighted Assets (RoRWA) 2.40% 2.28% 2.21% FY17 FY18 FY20 Ambition 11

  13. Slide 13: 2. Asset Quality Stable Across Cycles

    2. Asset Quality Stable Across Cycles Gross NPA Net NPA 1.23% 0.51% 1.17% 0.50% 1.12% 1.01% 1.03% 0.98% 0.93% 0.39% 0.87% 0.36% 0.81% 0.33% 0.31% 0.31% 0.28% 0.27% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Credit Cost * Predominantly Secured Lending 0.

  14. Slide 14: 2. Diversified Loan Book

    2. Diversified Loan Book Loan Book (Rs bn) 1,449 1,449 1,232 1,285 1,131 884 60% 54% 688 60% 59% 60% 551 59% 59% 55% 40% 46% 40% 40% 41% 45% 41% 41% FY14 FY15 FY16 FY17 Sep-17 Dec-17 FY18 Mar-18 (BBG forming part of Consumer Finance Division Corporate & Commercial Banking Consumer) (Rs bn) Small (Rs

  15. Slide 15: 2. Diversified Corporate Portfolio

    2. Diversified Corporate Portfolio Gems and Jewellery 5.18% Power Generation 4.13% Lease Rental 3.01% Microfinance 2.84% Real Estate 2.77% Contruction related to infra.- EPC 2.75% Services 2.24% Steel 1.59% Food Beverages and Food Processing 1.40% Petroleum & Products 1.16% Contract Construction - C

  16. Slide 16: 2. Well Rated Corporate Portfolio

    2. Well Rated Corporate Portfolio 15

  17. Slide 17: 3. Management Track Record

    3. Management Track Record NIM (Net Interest Margin) RoA (%) RoE (%) 1.9% 17.5% 4.0% 3.5% 16.5% 1.5% FY14 FY18 FY14 FY18 FY14 FY18 Cost/Income (%) Net NPA (%) Revenue per Employee (Rs. Mn) 47.1% 45.7% 4.8 0.5% 3.0 0.3% FY14 FY18 FY14 FY18 FY14 FY18 16

  18. Slide 18: 3. Planning Cycle Strategy (FY17-FY20)

    3. Planning Cycle 4 Strategy (FY17-FY20) Market Share with Profitability Loan Growth 25% - 30% Do More of the Same Strategy CASA Ratio 40% Digitize to Differentiate, Diversify and Create Domain Leadership Exceed Balance Sheet Resulting in Revenue Growth Growth Financing Livelihoods RoRWA > 2.4% Broa

  19. Slide 19: 3. Strategic Themes

    3. Strategic Themes Rural Rebalancing Banking and of Loan Book Microfinance Internal Focus on Collaboration Sustainability Productivity and Cross Sell Enriching Digitization Client of Businesses Experience 18

  20. Slide 20: 4. Earnings Update

    4. Earnings Update FY18 Net Interest Margin (NIM) RoA Outcome 1.86% 1.90% 1.96% 1.90% 4.00% 4.00% 4.00% 3.99% 3.97% 1.74% Loan Growth 28% CASA Ratio 44% Revenue 20% Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Growth RoE Net NPA PAT Growth 26% 16.48% 16.96% 16.56% 0.44% 0.44

  21. Slide 21: 4. Diversified Revenue Streams, Opex Trend Improving

    4. Diversified Revenue Streams, Opex Trend Improving Net Revenue Streams (FY18) Trading & Other Income General Banking 5% Fees 2% Investment Cost / Income Trajectory Banking Fees 6% Distribution Fees 48.1% 8% 47.0% 46.7% 45.7% Foreign Exchange Fees Net Interest 6% Income 62% Loan Processing Fees 7%

  22. Slide 22: 5. Liquidity & Funding Profile

    5. Liquidity & Funding Profile Diversified Funding Sources Other Liabilities Other Borrowings 4% 9% Net Worth 11% Infra Bonds Basel III Leverage Ratio 1% AT1 Bonds 9.4% 9.5% 9.6% CA Deposits 9.3% 9.2% 9.2% 9.1% 9.3% 1% 9.0% Refinance 9% 6% Capital Markets TD 1% Required >4.5% Corporate TD 11% SA Dep

  23. Slide 23: 5. Improving CASA profile

    5. Improving CASA profile Building CASA traction CASA Uptick 800  Expanding branch network 700 44.0%  Focus on target market segments 600 36.9% 35.2% 500 34.1%  Government business 32.5% 400  Capital market flows 300 29.3% 667 27.3% 466  Key Non Resident markets 200 327 100 197 253 159  Self e

  24. Slide 24: 6. Sustainable Banking: Good Ecology is good Economics!

    6. Sustainable Banking: Good Ecology is good Economics! Regulatory Environmental Social Governance Compliance  Operational Compliance  Solar ATMs  Water rejuvenation  Board Level CSR  Market Risk Management  Thin Servers projects Committee  Liquidity Management  Micro Credit  7 Years of Sus

  25. Slide 25: Additional Information

    Additional Information 24 Indusind Bank

  26. Slide 26: Balance Sheet

    Balance Sheet *In Rs bn FY18 FY17 Y-o-Y (%) Capital & Liabilities Capital 6 6 -% Reserves and Surplus 232 200 16%  Deposits 1,516 1,266 20%  Borrowings 383 225 71%  Other Liabilities and Provisions 79 90 (12)%  Total 2,216 1,786 24%  Assets Cash and Balances with RBI 109 77 41%  Balances with

  27. Slide 27: Profit and Loss Statement

    Profit and Loss Statement In Rs bn FY18 FY17 Y-o-Y (%) Net Interest Income 74.9 60.6 24%  Other Income 47.5 41.7 14%  Total Income 122.5 102.3 20%  Operating Expenses 55.9 47.8 17%  Operating Profit 66.6 54.5 22%  Provisions & Contingencies 11.8 10.9 8%  Profit before Tax 54.8 43.6 26%  Provi

  28. Slide 28: Outline of Existing Borrowings

    Outline of Existing Borrowings Name Issue Date Tenor Related Info Amount AA+/ Stable by CRISIL and IND AA+/ Stable Rs.5 bn Long Term Senior Infrastructure Bonds Mar-15 7 years by India Ratings (equiv. USD 77mm) AA+/ Stable by CRISIL and IND AA+/ Stable Rs.15 bn Long Term Senior Infrastructure Bonds

  29. Slide 29: Thank You

    Thank You

  30. Slide 30: 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

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