Indusind Bank Ltd. · NSE:INDUSINDBK
Indusind Bank — Q4 FY2021 Earnings Presentation
52 slides from Indusind Bank's earnings presentation, Apr 30, 2021
Slide 1: Exchange disclosure cover letter
April 30, 2021 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, Sub: Disclosure under SEBI (Listing Obligations and Disclosure Requireme
Slide 2: Investor Presentation Q4-2020-21
Investor Presentation Q4-2020-21 April 30, 2021
Slide 3: Q4 – FY21 Performance Highlights
Steady operational metrics in Q4 FY21 Q4 – FY21 Performance Highlights PPOP at Rs. 3,129 crs, grew by 10% YoY; PPOP / Assets at 3.68% NII at Rs. 3,535 crs ; up by 9% YoY. NIM at 4.13% and Fee Income back to pre-Covid levels Consol PAT at Rs. 926 crs up by 194% YoY and 12% QoQ PCR stands at
Slide 4: How We Measure Up On Key Metrics
How We Measure Up On Key Metrics Net Interest Margin (NIM) RoA RoE 4.25% 4.28% 4.16% 4.12% 4.13% 1.05% 1.09% 8.35% 8.88% 0.85% 7.12% 0.69% 5.86% 0.42% 3.69% Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Cost / Income Net NPA Revenue / Employ
Slide 5: Ratings
Ratings Domestic Rating: CRISIL AA + for Infrastructure 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 prog
Slide 6: Consolidated Financial Performance
Consolidated Financial Performance 5
Slide 7: Steady Headline Numbers for Q4 FY21
Steady Headline Numbers for Q4 FY21 Y-o-Y Growth Q-o-Q Growth Net Interest Rs. 3,535 crs 9% 4% Income Total Fee Income Rs. 1,780 crs - 8% Revenue Rs. 5,315 crs 6% 5% Operating Profit Rs. 3,129 crs 10% 6% Net Profit Rs. 926 crs 194% 12% 6
Slide 8: Top line momentum
Top line momentum Y-o-Y Growth Q-o-Q Growth Advances Rs. 2,12,596 crs 3% 3% Deposits Rs. 2,55,870 crs 27% 7% CASA Rs. 1,06,791 crs 31% 10% TD Rs. 1,49,079 crs 24% 5% Borrowings Rs. 51,323 crs (16%) 6% 7
Slide 9: Balance Sheet
Balance Sheet (Rs Crs) * Q4FY21 Q4FY20 Y-o-Y (%) Q3FY21 Q-o-Q (%) Capital & Liabilities Capital 773 694 12% 757 2% Reserves and Surplus 42,727 33,381 28% 39,100 9% Share Warrant Subscription money - 674 (100%) 674 (100%) Deposits 2,55,870 2,02,027 27% 2,39,135 7% Borrowings 51,323 60
Slide 10: Profit and Loss Account – Q4 FY21
Profit and Loss Account – Q4 FY21 (Rs Crs) Q4FY21 Q4FY20 Y-o-Y (%) Q3FY21 Q-o-Q (%) Net Interest Income 3,535 3,232 9% ▲ 3,406 4% ▲ Other Income 1,780 1,773 - ▲ 1,646 8% ▲ Total Income 5,315 5,005 6% ▲ 5,052 5% ▲ Operating Expenses 2,186 2,148 2% ▲ 2,088 5% ▲ Operating Profit 3,129 2,857 10% ▲ 2,964
Slide 11: Profit and Loss Account – FY FY21
Profit and Loss Account – FY FY21 (Rs Crs) FY FY21 FY FY20 Y-o-Y (%) Net Interest Income 13,528 12,059 12% ▲ Other Income 6,501 6,953 (6%) ▼ Total Income 20,029 19,011 5% ▲ Operating Expenses 8,157 8,183 - ▼ Operating Profit 11,872 10,829 10% ▲ Provisions & Contingencies 7,943 4,652 71% ▲ Profit bef
Slide 12: Key Financial Indicators
Key Financial Indicators FY21 Q4FY21 Q4FY20 Q3FY21 FY20 Return on Assets 0.93% 1.09% 0.42% 1.05% 1.56% PPOP / Average Assets 3.75% 3.68% 3.84% 3.74% 3.79% Return on Equity 7.55% 8.88% 3.69% 8.35% 14.67% Cost / Income Ratio 40.73% 41.13% 42.90% 41.34% 43.04% Net Interest Margin 4.17% 4.13% 4.25% 4.12
Slide 13: Well Diversified Loan Book
Well Diversified Loan Book Loan Book (Rs crs) 206,783 207,128 212,595 186,394 44% 42% 43% 61% (Rs crs) 56% 58% 57% Consumer Finance Mar-21 39% Vehicle Loans 61,313 29% FY19 FY20 Dec-20 Mar-21 Comm. Vehicle Loans 23,600 11% FY19 are not comparable Consumer Finance Division Corporate & Commercial Bank
Slide 14: Diversified Corporate Loan Book
Diversified Corporate Loan Book Sector % Gems and Jewellery 3.80% Real Estate - Commercial and Residential 3.30% Lease Rental 3.25% NBFCs (other than HFCs ) 3.14% Steel 2.94% Power Generation – Non Renewable 1.51% Power Generation – Renewable 1.41% Food Beverages and Food processing 1.07% Housing Fi
Slide 15: Well Rated Corporate Portfolio
Well Rated Corporate Portfolio 26% P 24% E R 22% C E Investment Grade 20% N T Sub Investment Grade 18% O F 16% Unsecured Non Fund Based % R 14% Secured Non Fund Based % A T 12% Unsecured Fund Based % E Secured Fund Based % D 10% P O 8% R T 6% F O 4% L I 2% O 0% IB1 (AAA) IB2+ IB2 (AA) IB2- (AA-) IB3
Slide 16: Improving Deposit Profile
Improving Deposit Profile Expanding branch network CASA Focus on target market segments 50% 1,00,000 41.7% Growth driven by retail customer acquisitions 40.4% 40.0% 40.3% 40.4% 44% 90,000 38% Scaling up new businesses – Affluent and NRI 80,000 33% Leverage BFIL for rural customers 1,06,791
Slide 17: Other Income
Other Income (Rs Crs) Q4FY21 Q4FY20 Y-o-Y (%) Q3FY21 Q-o-Q (%) Core Fee 1,508 1,390 8% 1,389 9% Securities/MM/FX 273 383 (29%) ▼ 257 6% Trading/Others Total 1,781 1,773 - 1,646 8% 16
Slide 18: Diverse Revenues from Core Fee Income
Diverse Revenues from Core Fee Income (Rs Crs) Q4FY21 Q4FY20 Y-o-Y(%) Q3FY21 Q-o-Q(%) FY 21 FY 20 Y-o-Y(%) Trade and Remittances 219 189 16% 183 20% 751 720 4% Foreign Exchange Income 269 248 9% 268 - 879 1,016 (13%) Distribution Fees 399 367 9% 370 8% 1,256 1,338 (6%) (Insurance,
Slide 19: Diversified and Granular Fee Streams – Q4 FY21
Diversified and Granular Fee Streams – Q4 FY21 Corporate Banking Consumer Banking Trading and Other Income (27%) (57%) (16%) Trade and Remittances , 2% Foreign Exchange, 5% Trade and Remittances , 13% Investment Banking - Project Finance / Advisory, 1% Foreign Exchange, 7% Distribution Investment Ba
Slide 20: Yield / Cost Movement
Yield / Cost Movement 11.78% 11.67% Yield on Assets 8.67% 8.86% Yield on Advances 5.34% Cost of Deposits 5.03% 4.54% 4.74% Cost of Funds Q4FY21 Q3FY21 •Yield on Assets/Cost of funds are based on Total Assets/Liabilities Segment-wise Yield Q4FY21 Q3FY21 Outstanding Yield Outstanding Yield (Rs crs) (%
Slide 21: Loan Related Provisions held as on March 31, 2021
Loan Related Provisions held as on March 31, 2021 Specific provision of Rs. 3,488 crs (towards PCR) Floating provisions of Rs. 70 crs other than related to COVID-19 (towards PCR) Counter-cyclical provision of Rs. 760 crs (towards PCR) Standard contingent provisions of Rs. 1,600 crs surplus o
Slide 22: Credit Cost
Credit Cost (Rs Crs) FY18 FY19 FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 FY21 Corporate Bank 468 2,134 1,893 907 419 238 542 2,106 Consumer Finance 433 585 1,136 259 201 187 2,044 2,691 Gross Credit Costs 901 2,719 3,029 1,166 620 425 2,586* 4,797 Gross Credit Costs 62 146 146 59 31 21 122 226 (Basis Points
Slide 23: Loan Portfolio - Movement in NPA and Restructured Advances
Loan Portfolio - Movement in NPA and Restructured Advances Q4FY21 Q3FY21 Rs cr Corporate Consumer Total Corporate Consumer Total Opening Balance 2,231 1,420 3,651 2,930 1,602 4,532 Proforma NPA as on Dec 31,2020 413 2,095 2,508 - - - Proforma Opening Balance 2,644 3,515 6,159 Fresh Additions during
Slide 24: NPA Composition – Consumer Finance
NPA Composition – Consumer Finance (Rs Crs) Com. Const. Small HL/PL/ Q4 FY21 Utility TW Cars Tractor BBG/LAP Cards MFI Total Vehicle Equip. CV Others Gross NPA 717 67 107 100 392 105 79 709 247 73 399 2,995 Gross NPA % 3.00% 1.34% 1.18% 2.88% 6.73% 1.31% 1.17% 3.36% 2.84% 1.58% 1.49% 2.43% Com. Cons
Slide 25: Strong Balance Sheet & Profitability Buffers in Place
Strong Balance Sheet & Profitability Buffers in Place Capital Adequacy Pre Provision Operating Profit Margin (Rs. in Crores) 31 Mar 21 31 Dec 20 5.5% 5.8% 5.7% 5.8% 6.0% 5.7% 4.9% Credit Risk, CVA and UFCE 2,30,602 2,28,995 2.4% 3.6% Market Risk 9,190 8,105 1.9% 4.5% 3.9% 3.6% 3.8% Operational Risk
Slide 26: Distribution Expansion to Drive Growth
Distribution Expansion to Drive Growth Strengthening Distribution Infrastructure Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Particulars 2020 2020 2020 2020 2021 Branches/Banking 1,911 1,911 1,910 1,915 2,015 Outlets BFIL Branches 2,071 2,079 2,144 2,249 2,289 Vehicle Finance 853 854 841 840 828 Marketi
Slide 27: Digital Business Mix continues to grow
Digital Business Mix continues to grow on the back of seamless digital onboarding journeys powered by “IndiaStack” across products Non Resident Fixed Current Mutual Funds Personal Insurance Credit Savings Deposits Account (IndusSmart) Loans (Life+Non Life) Cards 95 93% 93… % 66% 91… 37% 36% 39… % Di
Slide 28: Digital Transaction Mix continues to grow
Digital Transaction Mix continues to grow with 91% of transactions happening digitally and 63% of service requests processed digitally Digital service requests* (% of total SRs) increased to 63% Overall Digital Transaction mix at 91% up from 84% by volume reducing cost to serve 64% 92% 62% 90% 60% 8
Slide 29: User Base and Transaction Volumes continue to show healthy growth
User Base and Transaction Volumes continue to show healthy growth across channels Mobile App User Base increased 39% Average monthly mobile banking transactions grew 1.35X YoY Indexed User Base 2.5 Mn 150 39% 2 1.35X 100 1.5 2.38 139 1 50 100 0.5 1.01 0 0 Q4-FY 20 Q4-FY21 Q4-FY 20 Q4-FY21 Whatsapp (
Slide 30: Key Platforms and Digital Client Value Propositions going live shortly
Key Platforms and Digital Client Value Propositions going live shortly Easycredit for Individuals Easycredit for Businesses Indus Merchant Solutions End to end digital End to end digital One of its kind journey for journey for Small value proposition Personal Loans & Ticket Business for merchants an
Slide 31: Shareholding Pattern
Shareholding Pattern Paid up Capital as of March 31, 2021 Promoters,# MFs / Banks/ 14.92% Insurance Co, 16.32% Individuals, 9.38% Private Corporates, 2.70% NRIs/ Director/ GDR issue, FIIs,* Others, 2.72% 8.06% 45.90% *includes FPIs # 14.92% with diluted capital including warrants/ESOP 30
Slide 32: Planning Cycle – FY21 Update
Planning Cycle 5 – FY21 Update 31
Slide 33: Scale with Sustainability – Strengthened Balance Sheet
Scale with Sustainability – Strengthened Balance Sheet FY20: 102% FY21: 83% Credit to Deposit Ratio <95% FY20: 3.15x Lower Non-Funded Certificates of FY21: 2.60x to Funded Ratio Deposits FY20: 16% 5%-10% FY21: 3% CRAR FY20: 15.04% FY21: 17.38% FY20: 63% PCR Retail LCR Deposits FY20: 31% FY21: 75% >6
Slide 34: PC5 Strategic Priorities
PC5 Strategic Priorities 1. Retail Liabilities Surge 5. New 2. Fine-tuning Growth Corporate Boosters Bank Underpinned by Approach 6. Digitization & 7. Sustainability 3. Holistic 4. Scaling Rural up Domains Banking 33
Slide 35: 1. Retail Liabilities Surge – Improved Retail Mix
1. Retail Liabilities Surge – Improved Retail Mix Retail Deposits as per LCR Certificates of Deposits 153 100 100 22 Mar-20 Mar-21 Mar-20 Mar-21 Term Deposits < 2 cr Deposits Sourced by Consumer BU 175 140 100 100 Mar-20 Mar-21 Mar-20 Mar-21 Indexed to Mar-20 34
Slide 36: 2. Fine-tuning Large Corporate Bank Approach
2. Fine-tuning Large Corporate Bank Approach – Proactive Steps Yielding Results BBB and below Exposures Tenure > 3 Years 100 100 77 76 Mar-20 Mar-21 Mar-20 Mar-21 Top 20 Exposures (Fund + Non Fund) Granular Fees Trade & Remittances 25% 100 38% 84 FX 25% 34% Investment Banking 34% 13% Loan Processing
Slide 37: 3. Holistic Rural Banking – Leveraging BFIL & Vehicle Distribution
3. Holistic Rural Banking – Leveraging BFIL & Vehicle Distribution Rural Focused Loans SA and RD Accounts in Microfinance (lacs) KCC Agri Business Group Tractors Microfinance 63 53 14 % 17% of 19% of Loans Loans 8 FY19 FY20 FY21 Mar-20 Mar-21 Bharat Money Stores Merchants Acquired by BFIL 51,000 1,7
Slide 38: 4. Scaling up Domains – Loan Growth Driven by Areas of Expertise
4. Scaling up Domains – Loan Growth Driven by Areas of Expertise FY20 FY21 Vehicle Finance Vehicle 27% Finance 29% Others Others 55% 57% Microfinance 12% Microfinance 12% Diamonds Diamonds Finance Finance 4% 4% 37
Slide 39: 5. New Growth Boosters – Scaled PC-5 and PC-4 New Initiatives
5. New Growth Boosters – Scaled PC-5 and PC-4 New Initiatives Affluent Banking (Rs cr) NRI Banking (Rs cr) Net Relationship Value Deposits 50,903 25,706 19,506 32,076 14,420 24,193 FY19 FY20 FY21 FY19 FY20 FY21 Tractor Finance (Rs cr) Affordable Housing (Rs cr) 6,653 1,790 4,670 1,313 3,520 553 FY19
Slide 40: Appendix
Appendix 39 IndusiInd Bank
Slide 41: CV Portfolio – As per a Leading Bureau
CV Portfolio – As per a Leading Bureau 60+ Delinquency 90+ Delinquency 6 25 5 20 4 15 3 10 2 5 1 0 0 DEC'19 Mar'20 June'20 Sep'20 Dec'20 DEC'19 Mar'20 June'20 Sep'20 Dec'20 IBL Industry IBL Industry • Strong portfolio performance (60+ and 90+ QoQ) compared to competition and market
Slide 42: CE Portfolio – As per a Leading Bureau
CE Portfolio – As per a Leading Bureau 60+ Delinquency 90+ Delinquency 16 5 4.5 14 4 12 3.5 10 3 8 2.5 2 6 1.5 4 1 2 0.5 0 0 DEC'19 Mar'20 June'20 Sep'20 Dec'20 DEC'19 Mar'20 June'20 Sep'20 Dec'20 IBL Industry IBL Industry • Strong portfolio performance (60+ and 90+ QoQ) compared to competition and
Slide 43: PV Portfolio – As per a Leading Bureau
PV Portfolio – As per a Leading Bureau 60+ Delinquency 90+ Delinquency 12 1.8 1.6 10 1.4 8 1.2 1 6 0.8 4 0.6 0.4 2 0.2 0 0 DEC'19 Mar'20 June'20 Sep'20 Dec'20 DEC'19 Mar'20 June'20 Sep'20 Dec'20 IBL Industry IBL Industry • Strong portfolio performance (60+ and 90+ QoQ) compared to competition and ma
Slide 44: Used PV Portfolio – As per a Leading Bureau
Used PV Portfolio – As per a Leading Bureau 60+ Delinquency 90+ Delinquency 12 3.5 3 10 2.5 8 2 6 1.5 4 1 2 0.5 0 0 DEC'19 Mar'20 June'20 Sep'20 Dec'20 DEC'19 Mar'20 June'20 Sep'20 Dec'20 IBL Industry IBL Industry • Strong portfolio performance (60+ and 90+ QoQ) compared to competition and market
Slide 45: Tractor Portfolio – As per a Leading Bureau
Tractor Portfolio – As per a Leading Bureau 60+ Delinquency 90+ Delinquency 18 6 16 5 14 12 4 10 3 8 6 2 4 1 2 0 0 DEC'19 Mar'20 June'20 Sep'20 Dec'20 DEC'19 Mar'20 June'20 Sep'20 Dec'20 IBL Industry IBL Industry • Strong portfolio performance (60+ and 90+ QoQ) compared to competition and market
Slide 46: TW Portfolio – As per a Leading Bureau
TW Portfolio – As per a Leading Bureau 60+ Delinquency 90+ Delinquency 16 8 14 7 12 6 10 5 8 4 6 3 4 2 2 1 0 0 DEC'19 Mar'20 June'20 Sep'20 Dec'20 DEC'19 Mar'20 June'20 Sep'20 Dec'20 IBL Industry IBL Industry • Strong portfolio performance (60+ and 90+ QoQ) compared to competition and market
Slide 47: Microfinance – As per a Leading Bureau
Microfinance – As per a Leading Bureau As of Feb 2021 Industry IBL 100 100 100 50 34 31 30DPD 60DPD 90DPD
Slide 48: Accolades
Accolades 47 IndusiInd Bank
Slide 49: Awards and Accolades
Awards and Accolades IndusInd Bank retains its top position in Carbon Disclosure Project (CDP) ‘A’ list for 6th Consecutive year 48
Slide 50: Awards and Accolades
Awards and Accolades IndusInd Bank has been included in the S&P DJSI Sustainability Yearbook. IndusInd Bank is the only Indian bank and one of the 55 banks globally to be included in the Yearbook. The Bank is one of 21 Indian companies to be a part of the Yearbook. 49
Slide 51: Thank You
Thank You \) IndusiInd Bank 50
Slide 52: 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