IndusInd Bank Ltd. · NSE:INDUSINDBK
IndusInd Bank — Q2 FY2011 Earnings Presentation
27 slides from IndusInd Bank's earnings presentation, Oct 11, 2010
Slide 1: Investor Presentation
Investor Presentation October 11,2010
Slide 2: Disclaimer
Disclaimer Certain statements in these slides are forward-looking statements. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of
Slide 3: Stated Ambition
Stated) Ambition IndusInd Bank @)
Slide 4: Stated Ambition with Measurable Targets
Stated Ambition with Measurable Targets Mission Mission Statement Statement To position IndusInd Bank as a Top 3 performer in the new private sector bank space in 3 years RoA Profitability RoE Measured By Objectives Net Interest Margins Productivity Cost to Income Ratio Revenue per Employee Efficien
Slide 5: How We Measure Up On Key Metrics
How We Measure Up On Key Metrics Net Interest Margin (NIM) RoA RoE* 3.41% 1.38% 20.83% 19.49% 2.88% 1.14% 1.81% 11.69% 1.37% 0.58% 6.92% 0.34% FY08 FY09 FY10 Q2FY11 FY08 FY09 FY10 Q2FY11 FY08 FY09 FY10 Q2FY11 *on average equity Cost to Income Ratio Net NPA Revenue/Employee (Rs Lacs) 2.27% 32 67.21%
Slide 6: How We Measure Up On Key Metrics
How We Measure Up On Key Metrics Net Interest Margin (NIM) RoA RoE* 3.41% 21.89% 1.38% 20.54% 20.83% 3.32% 1.33% 18.84% 17.79% 3.19% 1.08% 1.16% 1.07% 2.94% 2.86% Q2FY10 Q3FY10 Q4FY10 Q1FY11 Q2FY11 Q2FY10 Q3FY10 Q4FY10 Q1FY11 Q2FY11 Q2FY10 Q3FY10 Q4FY10 Q1FY11 Q2FY11 *on average equity Cost to Incom
Slide 7: Recognition for our Performance
Recognition for our Performance Awards & Recognition Awarded the “Best Priority Sector Bank” amongst the private sector banks by Dun & Bradstreet The State Forum of Bankers’ Clubs, Kerala, bestowed on the Bank the ‘Excellence Award’, as the second best new generation bank in Kerala Recognised for ‘B
Slide 8: Financial Performance
Pinancial Pewonnance IndusInd Bank @)
Slide 9: Strong Headline Numbers for Q2FY11
Strong Headline Numbers for Q2FY11 Y-o-Y Growth Net Interest Rs 330 crs 58% Income Core Fee Rs 163 crs 34% Revenue Rs 505 crs 48% Operating Rs 262 crs 69% Profit Net Rs 133 crs 71% Profit 9
Slide 10: Strong Headline Numbers for HYFY11
Strong Headline Numbers for HYFY11 Y-o-Y Growth Net Interest Rs 625 crs 66% Income Core Fee Rs 293 crs 40% Revenue Rs 961 crs 41% Operating Rs 492 crs 49% Profit Net Rs 252 crs 53% Profit 10
Slide 11: Balance Sheet
Balance Sheet (Rs crs) Q211 Q210 Y-o-Y (%) Q1FY11 Q-o-Q (%) Capital & Liabilities Capital 461 410 11% 411 12% Reserves and Surplus (incl. ESOP o/s) 3,350 1,898 77% 2108 59% Deposits 31,290 22,815 37% 27,382 14% Borrowings 3,632 2,687 35% 4,185 -14% Other Liabilities and Provisions 2,015 2,351 -14% 1
Slide 12: Profit and Loss Account
Profit and Loss Account (Rs crs) Q2FY11 Q2FY10 Y-o-Y (%) HYFY11 HYFY10 Y-o-Y (%) Net Interest Income 330 209 58% 625 376 66% Other Income 175 132 32% 336 305 10% Total Income 505 341 48% 961 681 41% Operating Expenses 243 186 31% 469 351 33% Operating Profit 262 155 69% 492 330 49% Provisions & Cont
Slide 13: Key Financial Indicators
Key Financial Indicators Q2-11 Q2-10 Q1-11 ROA 1.38% 1.07% 1.33% ROE 20.83% 17.79% 21.89% Revenue/Employee (Rs. in lacs) 32 30 31 Efficiency Ratio 48.13% 54.44% 49.50% NIM 3.41% 2.86% 3.32% Net NPA 0.36% 0.98% 0.38% EPS (annualized-Rs. per share) 12.84 8.20 11.56 Net Worth (Rs. in crs.)- excluding R
Slide 14: Well Diversified Loan Book
Well Diversified Loan Book Loan Book (Rs crs) 20,551 23,452 15,771 12,795 58% 60% 55% 43% 40% 42% 57% 45% FY08 FY09 FY10 Q2FY11 Consumer Finance Division Corporate & Commercial Banking (Rs crs) (Rs crs) 30 Sep-10 % Consumer Finance 30 Sep-10 % C&I 7,625 32 Comm. Vehicle Loans 4,918 21 Comm. Banking
Slide 15: Diversified Corporate Loan Book
Diversified Corporate Loan Book Industry-wise Advances 4.77% 3.44% 3.30% 2.01% 1.68% 1.63% 1.56% 1.53% 1.38% 1.32% 35.57% 15
Slide 16: And Improving Liability and CASA
And Improving Liability and CASA Strong management focus on CASA Uptick 9,000 28% Building CASA through 24.3% 25.4% 8,000 23.7% 26% • New product launches 7,000 24% 6,000 22% 19.2% • restructuring of branch network 5,000 20% 7,959 4,000 15.7% 6,663 18% • focus on self employed and small business 3,0
Slide 17: Other Income
Other Income (Rs crs) Q2FY11 Q2FY10 Y-o-Y (%) HYFY11 HYFY10 Y-o-Y(%) Core Fee 163 122 34% 293 209 40% Securities/MM/FX Trading 13 16 -19% 41 109 -63% NPA Recovery - 2 - 3 3 - 176 140 25% 337 321 5% Loss on sale of Repossessed -1 -8 - -1 -16 - Vehicle/Other Assets Total 175 132 32% 336 305 10% 17
Slide 18: Diverse Revenues from Core Fee Income
Diverse Revenues from Core Fee Income (Rs crs) Q2FY11 Q2FY10 Y-o-Y(%) HYFY11 HYFY10 Y-o-Y(%) Trade & Remittances 22 14 57% 43 26 65% Loan Processing fees 29 23 26% 60 45 33% Foreign Exchange Income 30 20 50% 49 29 69% TPP Distribution Income (Insurance, MF) 40 33 21% 76 50 52% Investment Banking Inc
Slide 19: Favourable Yield / Cost Movement
Favourable Yield / Cost Movement Yield on Advances Cost of Deposits 14% 13.23% 14% 12.60% 12.10% 11.76% 12% 12% 10% 10% 8.22% 8% 8% 7.84% 6.82% 5.99% 6% 6% 4% 4% 2% 2% 0% 0% FY08 FY09 FY10 Q2FY11 FY08 FY09 FY10 Q2FY11 * Yield / Cost based on daily averages Segment-wise Yield Q2FY11 Q2FY10 Outstandin
Slide 20: Provision Coverage Ratio
Provision Coverage Ratio 70% 71% 60% 50% 35% 31% Q1FY10 Q2FY10 Q3FY10 Q4FY10 Q1FY11 Q2FY11 Achieved regulatory norm of 70% ahead of stipulated time frame 20
Slide 21: Cost of Credit
Cost of Credit (Rs crs) FY08 FY09 FY10 Q2FY11 Bad Debts Written Off and Provisions for NPA – 29.82 78.08 85.86 22.52 Corporate Loan Book Bad Debts Written Off, Diminution in value/ Loss on sale of Repossessed vehicles and Provisions 50.80 82.70 75.77 10.60 for NPA – Consumer Finance Loan Book Total
Slide 22: Loan Portfolio - Movement in NPA and Restructured Advances
Loan Portfolio - Movement in NPA and Restructured Advances (Rs crs) Q2FY11 Q2FY10 CCB CFD Total CCB CFD Total Opening Balance 90 185 275 56 185 241 Additions 25 50 75 34 51 85 Deduction 21 43 64 4 57 61 Gross NPA 94 192 286 113 174 286 Provisions 94 108 202 113 90 203 Net NPA - 84 84 - 84 84 Total A
Slide 23: NPA Composition - CFD
NPA Composition - CFD (Rs crs) Com. Const. Utility 3W TW Cars Others Total Vehicle Equip. Gross NPA 68 8 21 7 52 17 19 192 Net NPA 32 5 11 5 24 7 - 84 Gross NPA % 1.39% 0.95% 1.67% 0.61% 5.62% 2.74% 12.10% 1.94% Net NPA % 0.67% 0.56% 0.84% 0.45% 2.62% 1.19% - 0.86% 23
Slide 24: CRAR - Basel II
CRAR - Basel II (Rs crs) 30 Sep- Sep-10 30 Sep- Sep-09 Credit Risk RWA 25,030 18,015 Market Risk RWA 1,578 1,095 Operational Risk RWA 458 280 Total Risk Weighted Assets 27,066 19,390 Tier I 3,294 2,062 Tier II 1,096 830 Total Capital 4,390 2,892 CRAR 16.22% 14.91% Tier I 12.17% 10.63% Tier II 4.05%
Slide 25: Distribution Expansion to Drive Growth
Distribution Expansion to Drive Growth Strengthening Distribution Infrastructure As on As at, end FY08 FY09 FY10 Q1FY11 date Branch Network 180 180 210 224 238 ATMs 336 356 497 533 544 Regulatory clearances for 127 new branches in place:28 already opened Branch/Representative Office Strategic Allian
Slide 26: Shareholding Pattern
Shareholding Pattern As at September 30, 2010 26
Slide 27: Thank you
(=) Mr IndusInd Bank @)