Indusind Bank Ltd. · NSE:INDUSINDBK

Indusind Bank — Debt Investor Presentation (March 2019)

29 slides from Indusind Bank's debt investor presentation, Mar 11, 2019

  1. Slide 1: Debt Investor Presentation

    Debt Investor Presentation March 11, 2019

  2. Slide 2: India – Positive Macro Outlook

    India – Positive Macro Outlook GDP growth to remain in the 7.0%-7.5% range this year and the next Credit growth continues to be strong 20.0% 8.2% 7.6% 7.2% 7.4% 7.1% 6.8% 6.7% 6.6% 15.0% 6.1% 5.6% 5.6% 14.28% 10.0% 5.0% 0.0% CPI hovering at the lower end of prescribed limits Currency regained stabil

  3. Slide 3: IndusInd Bank – Consistently Building Scale with Profitability

    IndusInd Bank – Consistently Building Scale with Profitability Strength Growth Returns  CRAR at 14.19%; CET1 at 12.79% 3 Year CAGR 9MFY19 (y-o-y) 9MFY19  Strong Asset Quality with impaired assets  Loans 28% 35%  RoA = 1.7% proportion amongst the lowest in Indian  Deposits 27% 20% banks; Net NPA

  4. Slide 4: 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 ~14 million(1) and Total NRIs/ Director/ Others, Assets of over Rs 2,500 bn(1) 2.69% GDR issue, 10.74% Promoters, 14.99%  Pan India p

  5. Slide 5: Business Units

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

  6. Slide 6: Benchmarking Revenue, Risk & Returns

    Benchmarking Revenue, Risk & Returns  A comparison of IBL with the top 6 Public Sector (PSU) and top 5 Private Sector Banks (PB) 40% * Bubble size indicates Profit After Tax Revenue Growth PB3 30% PB5 IBL 20% PSB7 PB4 PSB2 10% PSB3 PSB1 PB2 PB1 0% -3.00% -2.00% -1.00% 0.00% PSB6 1.00% 2.00% 3.00% P

  7. Slide 7: Domestic Ratings

    Domestic Ratings  CRISIL(1) AA + for Infra Bonds program  CRISIL AA for Additional Tier I Bonds program  ICRA 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

  8. Slide 8: Award Winning Brand / Franchise

    Award Winning Brand / Franchise International Banker Ranked 20th Most Valuable Dream Employer of the Year 2018 Awards Brand Best Commercial Bank of the Year, India BrandZ Top 75 Best Innovation in WPP Pls & Milward Brown ET NOW: ‘Dream Companies to Retail Banking India 2018 Work for 2019” 8

  9. Slide 9: 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

  10. Slide 10: 1. Strong Capital Adequacy

    1. Strong Capital Adequacy  Bank has maintained strong capital adequacy levels well in Rs bn FY17 FY18 9MFY19 excess of the minimum regulatory requirement Credit Risk, CVA and UFCE 1,220 1,445 1,750  The proposed merger with BFIL to be capital accretive Market Risk 67 98 80 Operational Risk 148 18

  11. Slide 11: 1. Deploying Capital Efficiently

    1. Deploying Capital Efficiently Return on Risk Weighted Assets (RoRWA) Leverage Ratio 2.34%* 2.40% 2.30% 2.28% 9.42% 9.48% 9.56% 2.23% 2.21% 9.02% 9.02% 8.66% 8.72% 2.04% Required 4.5% FY15 FY16 FY17 FY18 9MFY19 FY20 Ambition Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 *Excluding contin

  12. Slide 12: 2. Asset Quality Stable Across Cycles

    2. Asset Quality Stable Across Cycles NPA Credit Cost * 1.23% 0.79% 1.17% 1.12% 1.13% 1.01% 1.03% 0.98% 0.93% 0.61% 0.59% 0.59% 0.87% 0.81% 0.53% 0.46% 0.48% 0.41% 0.41% 0.40% 0.59% 0.50% 0.51% 0.36% 0.39% 0.31% 0.33% 0.31% 0.28% 0.27% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 9M FY19 FY10 FY11 F

  13. Slide 13: 2. Diversified Loan Book

    2. Diversified Loan Book Loan Book (Rs crs) 1,63,144 1,73,169 1,73,169 1,44,954 1,13,081 61% 55% 88,419 61% 68,788 60% 60% 59% 59% 45% 40% 39% 39% 41% 41% 40% FY15 FY16 FY17 FY18 Sep-18 Dec-18 Dec-18 (BBG forming part Consumer Finance Division Corporate & Commercial Banking of Consumer) (Rs crs) Cor

  14. Slide 14: 2. Diversified Corporate Portfolio

    2. Diversified Corporate Portfolio NBFCs (other than HFCs ) Microfinance Gems and Jewellery Power Generation Real Estate Constn related to infra.- EPC Steel Lease Rental Roads/other infra projects Services Petroleum & Products Food Beverages and Food processing Other Industry 14

  15. Slide 15: 2. Well Rated Corporate Portfolio

    2. Well Rated Corporate Portfolio 24% P E 22% R C 20% E Investment Grade Sub Investment Grade N 18% T O 16% F R Unsecured Non Fund Based % A 14% T Secured Non Fund Based % E 12% Unsecured Fund Based % D Secured Fund Based % P 10% O R 8% T F O 6% L I 4% O 2% 0% IB1 (AAA) IB2+ IB2 (AA) IB2- (AA-) IB3+

  16. Slide 16: 2. Behavioural Scoring affirms quality of Vehicle Financing Portfolio

    2. 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. •

  17. Slide 17: 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

  18. Slide 18: 3. Management Track Record

    3. Management Track Record Net Interest Margin (NIM) RoA (%) RoE 3.85% 1.90% 17.69% 1.80% 16.14% 3.60% * * FY16 9M FY19 FY16 9M FY19 FY16 9M FY19 * pre contingent provision *pre contingent provision Cost to Income (%) Net NPA (%) Revenue per Employee (Rs. mn) 50.4% 0.59% 5.3 43.7% 3.8 0.36% FY16 9M

  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 19

  20. Slide 20: 4. Earnings Update

    4. Earnings Update 9MFY19 Net Interest Margin (NIM) RoA Outcome 4.00% 3.99% 1.90% 1.96% 1.86% 1.91% 1.89% 3.97% 1.90% Loan Growth 35% 3.92% 3.84% 3.83% * * 1.59% 1.62% CASA Ratio 44% Revenue 18% Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Growth Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 RoE Net NPA PA

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

    4. Diversified Revenue Streams, Opex Trend Improving Net Revenue Streams (Q3 FY19) Trading and Other General Banking Income Fees 6% 3% Cost / Income Trajectory Investment Banking Fees 48.1% 47.0% 46.7% 5% 45.7% Net Interest 43.7% Income Distribution Fees 61% 7% Foreign Exchange Fees 7% Loan Processi

  22. Slide 22: 5. Liquidity & Funding Profile

    5. Liquidity & Funding Profile Diversified Funding Sources Other Other Infra Bonds Borrowings Liabilities Liquidity Coverage Ratio 4% Net Worth 1% 7% 10% 109.38% AT1 Bonds 105.88% 104.96% 104.41% 102.15% 1% 95.01% CA Deposits Refinance 10% 8% Capital Markets TD 1% Corporate TD 8% Q2 FY18 Q3 FY18 Q4

  23. Slide 23: 5. Improving CASA profile

    5. Improving CASA profile Building CASA traction CASA Trajectory 800 44.0% 43.6% 36.9%  Expanding branch network 35.2% 700 32.5% 34.1%  Focus on target market segments 600 29.3% 27.3%  Government business 500  Capital market flows 400 765 300 667  Key Non Resident markets 466 200 327  Self emp

  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 projects  Market Risk Management  Thin Servers Committee  Micro Credit  8 Years of Sustainability  Liquidity

  25. Slide 25: Additional Information

    Additional Information 25 Indusind Bank

  26. Slide 26: Balance Sheet

    Balance Sheet INR mn 9M FY19 (USD mn) 9M FY19 FY18 FY17 Capital & Liabilities Capital 86 6,021 5,190 5,982 Reserves and Surplus 3,696 2,57,977 2,32,269 2,00,580 Deposits 25,176 17,57,010 15,16,390 12,65,722 Borrowings 6,381 4,45,360 3,82,890 2,24,537 Other Liabilities and Provisions 1,370 95,620 78,

  27. Slide 27: Profit and Loss Statement

    Profit and Loss Statement INR mn. 9M FY19 (USD mn) 9M FY19 FY18 FY17 Net Interest Income 948 66,138 75,372 60,626 Other Income 586 40,877 47,506 41,715 Total Income 1,372 95,775 1,22,878 1,02,341 Operating Expenses 671 46,810 55,914 47,831 Operating Profit 863 60,205 66,964 54,510 Provisions & Conti

  28. Slide 28: Thank You

    Thank You

  29. Slide 29: 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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