Indusind Bank Ltd. · NSE:INDUSINDBK
Indusind Bank — Q3 FY24 Earnings Presentation
46 slides from Indusind Bank's earnings presentation, Jan 18, 2024
Slide 1: Investor Presentation Q3-FY24
Investor Presentation Q3-FY24 | DECEMBER 2023 January 18, 2024
Slide 2: IndusInd Bank at a Glance
IndusInd Bank at a Glance 5th Largest Private Bank ₹3,27,057 crs ₹ 3,68,793 crs 38 mn 6,772 with Disproportionately Loans Deposits Customers Group Network Large Distribution Network Diversified Across Products and Geographies Across Segments Pan India Universal Banking Approach 55:45 Loan Mix 38% CA
Slide 3: Key Financial Highlights for Q3 FY24
Key Financial Highlights for Q3 FY24 Loans Deposits CASA Term Deposits Total Assets Balance ₹3,27,057 crs ₹3,68,793 crs ₹1,41,924 crs ₹2,26,869 crs ₹4,88,865 crs Sheet 20% YoY 4% QoQ 13% YoY 3% QoQ 4% YoY - QoQ 20% YoY 4% QoQ 10% YoY 2% QoQ Net Interest Income Total Other Income Revenue Operating Pr
Slide 4: Q3FY24 Outcome Against PC-6 Ambitions
Q3FY24 Outcome Against PC-6 Ambitions Planning Cycle 6 (FY 2023-26) Q3FY24 Outcome Loan Growth 18%-23% 20% Retail Loan Mix 55%-60% 55% Resulting in Retail Deposits as per LCR 45%-50% 45% PPOP / Loans 5.25% - 5.75% 5.2% Branch Network 3,250 - 3,750 2,728 Customer Base > 50mn 38mn 4
Slide 5: Consolidated Balance Sheet
Consolidated Balance Sheet ₹In crs Q3 FY24 Q3 FY23 Y-o-Y (%) Q2 FY24 Q-o-Q (%) Capital & Liabilities Capital 778 775 - - 777 - - Reserves and Surplus 60,003 52,109 15% 57,617 4% Deposits 3,68,793 3,25,278 13% 3,59,548 3% Borrowings 40,473 47,284 (14)% 40,530 - Other Liabilities and Provi
Slide 6: Consolidated Profit and Loss Account – Q3 FY24 and 9M FY24
Consolidated Profit and Loss Account – Q3 FY24 and 9M FY24 ₹In Crore Q3FY24 Q3FY23 Y-o-Y (%) Q2FY24 Q-o-Q (%) 9M FY24 9M FY23 Net Interest Income 5,296 4,495 18% ▲ 5,077 4% ▲ 15,239 12,923 Other Income 2,396 2,077 15% ▲ 2,282 5% ▲ 6,888 6,019 Total Income 7,692 6,572 17% ▲ 7,359 5% ▲ 22,127 18,942 O
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: 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 9: Well Diversified Loan Book across Consumer and Corporate Products
Well Diversified Loan Book across Consumer and Corporate Products Loan Book Mix (₹crs) (₹crs) 2,72,754 2,89,924 3,01,317 3,15,454 3,27,057 Consumer Banking Dec-23 % Vehicle Finance 86,092 26% 47% 46% 46% 45% 45% Commercial Vehicle 31,863 10% Utility Vehicle 11,951 4% 53% 54% 54% 55% 55% Small CV 394
Slide 10: 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 6% 4% Market Leader Tractor 35+ Years of Vintage Focus on Business 11% CV in Most Products Across Credit Cycles Owner S
Slide 11: Microfinance: Bridging the Financial Inclusion Gap
Microfinance: Bridging the Financial Inclusion Gap Micro Finance Loan Book (₹crs) 35,761 32,215 31,981 34,363 2nd Largest 12mn 1.53 Lacs Villages 29,688 20% YoY Micro Finance Customers covered across 23 Lender States 4% QoQ Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Average Loan Outstanding per Bor
Slide 12: Corporate Portfolio – Focus on Granular, Higher Rated Customers
Corporate Portfolio – Focus on Granular, Higher Rated Customers Corporate Loan Book (₹crs) Improving Risk Profile * BB+ & Below BBB-, BBB, BBB+ A-, A, A+ AA-, AA, AA+ AAA 1,43,154 1,46,587 1,39,437 1,34,150 1,27,010 22% 21% 21% 23% 15% YoY 24% 26% 29% 27% 27% 29% 27% 27% 2% QoQ 23% 20% 19% 20% 4
Slide 13: Non-Vehicle Retail Loans – Risk Calibrated Growth Strategy
Non-Vehicle Retail Loans – Risk Calibrated Growth Strategy Business Banking (₹crs) Loan Against Property (₹crs) 15,894 10,470 15,364 9,953 10,181 14,807 9,502 9,640 13,845 12,839 24% YoY 10% YoY 3% QoQ 3% QoQ Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Credit Cards
Slide 14: 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 15: 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 (%) 45% 44% 43% 3,68,793 43% 3,47,047 3,59,548 42% 3,36,120 3,25,278 13% YoY 20% YoY 1,37,968 1,65,371 1,43,021 1
Slide 16: 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 % 42% 40% 40% 39% 38% 14% 14% 15% 15% 14% 1,36,379 1,38,440 1,41,437 1,41,924 1,34,728 4% YoY 50,007 50,600 49,343 49,910 50,044 - YoY - QoQ - QoQ Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24
Slide 17: Borrowings Constituted by Long Term Sources
Borrowings Constituted by Long Term Sources Borrowings (₹crs) Borrowings Mix (%) Borrowings (₹Cr) % of Total Liabilities Short-Term FCY (less than Infrastructure 12 months) Bonds AT1 Bonds 3% 4% 4% 11% 11% 10% 8% Tier 2 Bonds 8% 7% 47,284 49,011 45,622 40,530 40,473 Refinance from Development Long-T
Slide 18: 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 19: 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 treasuries LC - Usance in Indian banks with best-in- Notional Amount Risk Weighted Assets 14% class risk management 13,75,710 LC - Sight 7% Financial systems Guarantees 0.6%# 40% Robus
Slide 20: 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 21: Yield / Cost Movement
Yield / Cost Movement 12.45% 12.30% 9.75% 9.69% Yield on Assets 6.44% 6.35% Yield on Advances 5.46% 5.40% Cost of Deposits Cost of Funds Q3FY24 Q2FY24 Segment-wise Yield: Q3FY24 Q2FY24 Outstanding (₹crs) Yield (%) Outstanding (₹crs) Yield (%) Corporate Banking 1,46,587 9.06% 1,43,154 8.97% Consumer
Slide 22: Diversified and Granular Fee and Other Income Streams
Diversified and Granular Fee and Other Income Streams ₹In crs Q3FY24 Q3FY23 Y-o-Y(%) Q2FY24 Q-o-Q(%) Trade and Remittances 227 201 13% 234 (3)% Foreign Exchange Income 276 249 11% 227 22% Cards and Distribution Fees 743 619 20% 681 9% General Banking Fees 286 248 15% 367 (22)% Loan P
Slide 23: 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% 2.0% 4.27% 4.28% 4.29% 4.29% 4.29% Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Operating Profit Margin (%) Cost to Income Ratio (%) 5.
Slide 24: Key Financial Indicators
Key Financial Indicators Return on Assets (%) Return on Equity (%) 1.87% 1.90% 1.90% 1.90% 1.93% 15.23% 15.26% 15.24% 15.33% 15.45% Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Earning Per Share – Annualized (₹) Net Worth (₹ crs) 113.5 118.4 54,994 58,841 105.4 109
Slide 25: 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 26: Movement in Non-Performing Assets
Movement in Non-Performing Assets Q3FY24 Q2FY24 ₹In crs Corporate Consumer Total Corporate Consumer Total Opening Balance 2,066 4,098 6,164 1,989 3,952 5,941 Fresh Additions 312 1,453 1,765 214 1,251 1,465 -from Standard 304 1,393 1,697 206 1,176 1,382 -from Restructured 8 60 68 8 75 83 Deductions 1
Slide 27: NPA Composition – Consumer Banking
NPA Composition – Consumer Banking (₹crs) HL/PL/Oth Q3 FY24 CV Utility CE Small CV TW Cars Tractor BBG/LAP Cards MFI Total ers Gross NPA 315 18 72 53 415 28 73 895 389 265 1,637 4,159 Gross NPA % 0.99% 0.15% 0.65% 1.35% 7.77% 0.22% 0.77% 3.31% 1.75% 2.57% 4.42% 2.27% HL/PL/Oth Q2 FY24 CV Utility CE
Slide 28: Loan Related Provisions held as on December 31, 2023
Loan Related Provisions held as on December 31, 2023 Specific provision of ₹ 4,432 crs for non-performing accounts(towards PCR) Floating provisions of ₹ 70 crs (towards PCR) Standard contingent provisions of ₹ 1,300 crs (surplus outside PCR) Standard asset provisions of ₹ 1,440 crs other tha
Slide 29: 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 30: Healthy Capital Adequacy
Healthy Capital Adequacy CET1 Ratio (%) Capital Adequacy 16.44% 16.33% 16.01% 15.93% 16.07% ₹In crs 31 Dec 23 30 Sep 23 Credit Risk, CVA and UFCE 3,20,426 2,99,257 Market Risk 7,575 8,708 Operational Risk 42,411 42,411 Total Risk Weighted Assets 3,70,412 3,50,376 Core Equity Tier 1 Capital Funds 59,
Slide 31: Shareholding Pattern and Credit Ratings
Shareholding Pattern and Credit Ratings Diversified Shareholding Credit Ratings Shareholding as per SEBI LODR Domestic Rating: Director/ Others, CRISIL AA + for Infrastructure Bonds program/Tier 2 Bonds 0.64% Foreign CRISIL AA for Additional Tier 1 Bonds program Corporates/ GDR issue, Promoters,
Slide 32: 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 33: 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, June 30, Sep 30, Dec 31, Particulars 2022 2023 2023 2023 2023 ~38 mn ~1,53,000 Branches/Banking Outlets 2,384 2,606 2
Slide 34: 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 35: Strong suite of platforms and applications – Digital Platforms
Strong suite of platforms and applications catering to all customer segments – Digital Platforms continue to drive customer engagement and experience Active user base up 23% YoY 140 130 23% Active User Base nearly doubled 100,000+ registered customer base 120 100 YoY 100 80 200 186 Interoperable wit
Slide 36: Remote Digital Customer DIY business model continues to scale
Remote Digital Customer DIY business model continues to scale across key lines of businesses in Retail Individual and MSME segments with focus on profitability and quality % vol % vol % disb % vol % vol % vol % vol 1.4 lac customers val onboarded through Video 100% 4% 0% 3% 2% KYC every month 23% 80
Slide 37: INDIE off to a strong start and growing strongly
INDIE off to a strong start and growing strongly with transactions nearly doubling every month with a profitable business model Officially launched with TVC during World Cup 500 Mn+ impressions on Digital OTT, YouTube and Hotstar CTV ~4 Mn 25 Installs Installs every minute Txns per client 5 accounts
Slide 38: Digital Business – Remote Digital / Partnerships led business continues to grow
Digital Business – Remote Digital / Partnerships led business continues to grow at a healthy rate YoY Assets have grown ~3.1X YoY; 22% QoQ Indexed Assets (in Crs.) 3.1x • Scale up remote digital led business models in personal loans and credit cards on the back of optimization of marketing spends an
Slide 39: 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 40: ESG highlights for Q3 of FY24
IndusWE will empower ESG highlights for Q3 of FY24 women-owned businesses, with access to a range of carefully curated offers that will help meet not only banking requirements but also support to expand Alignment with Global business through the 3 Framework IndusWE Pillars - Learn, Insights from the
Slide 41: 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 42: Board of Directors with Diverse Expertise
Board of Directors with Diverse Expertise Name Nature of Directorship Special Knowledge /Expertise Prior Experience Non-Executive, Was on the board of all AIG companies in India, Held various senior positions at Banking, Financial services, Insurance Mr. Sunil Mehta Independent, Part-time Citibank,
Slide 43: 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 35+ America and ABN AMRO Mr. Arun Khurana Executive Director & Deputy
Slide 44: Awards & Accolades
Awards & Accolades 44 IndusInd Bank
Slide 45: Business World Supply Chain Awards 2023
Business World Supply Chain Awards 2023 Outstanding Customer- Excellent in Supply Chain Excellence in Digital Lending Centric Supply Chain Innovations and Creativity IndusInd Bank was recognized and awarded by Business World IndusInd Bank was recognized as a Digital in two significant categories at
Slide 46: 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