Indusind Bank Ltd. · NSE:INDUSINDBK
Indusind Bank — Q1 FY24 Earnings Presentation
51 slides from Indusind Bank's earnings presentation, Jul 18, 2023
Slide 1: Stock exchange disclosure cover letter
July 18, 2023 National Stock Exchange of India Ltd. (Symbol: INDUSINDBK) BSE Ltd. (Scrip Code: 532187) Luxembourg Stock Exchange Madam/ Dear Sir, Sub: Disclosure under Regulation 30 and 46 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 In compliance with Regulation 3
Slide 2: Investor Presentation Q1-FY24
Investor Presentation Q1-FY24 | JUNE 2023 July 18, 2023
Slide 3: IndusInd Bank at a Glance
IndusInd Bank at a Glance 5th Largest Private Bank ₹3,01,317 crs ₹ 3,47,047 crs 35 mn 6,561 with Disproportionately Loans Deposits Customers Group Network Large Distribution Network Diversified Across Products and Geographies Across Segments Pan India Universal Banking Approach 54:46 Loan Mix 40% CA
Slide 4: Key Financial Highlights for Q1 FY24
Key Financial Highlights for Q1 FY24 Loans Deposits CASA Term Deposits Total Assets Balance ₹3,01,317 crs ₹3,47,047 crs ₹1,38,440 crs ₹2,08,607 crs ₹4,66,993 crs Sheet 22% YoY 4% QoQ 15% YoY 3% QoQ 6% YoY 3% QoQ 21% YoY 4% QoQ 14% YoY 2% QoQ Net Interest Income Total Other Income Revenue Operating P
Slide 5: Q1FY24 Outcome Against PC-6 Ambitions
Q1FY24 Outcome Against PC-6 Ambitions Planning Cycle 6 (FY 2023-26) Q1FY24 Outcome Loan Growth 18%-23% 22% Retail Loan Mix 55%-60% 54% Resulting in Retail Deposits as per LCR 45%-50% 43% PPOP / Loans 5.25% - 5.75% 5.5% Branch Network 3,250 - 3,750 2,606 Customer Base > 50mn 35mn 4
Slide 6: Consolidated Balance Sheet
Consolidated Balance Sheet ₹In crs Q1 FY24 Q1 FY23 Y-o-Y (%) Q4 FY23 Q-o-Q (%) Capital & Liabilities Capital 776 775 - - 776 - - Reserves and Surplus 56,368 48,932 15% 54,229 4% Deposits 3,47,047 3,02,719 15% 3,36,120 3% Borrowings 45,622 41,812 9% 49,011 (7)% Other Liabilities and Provi
Slide 7: Consolidated Profit and Loss Account – Q1 FY24
Consolidated Profit and Loss Account – Q1 FY24 ₹In Crore Q1FY24 Q1FY23 Y-o-Y (%) Q4FY23 Q-o-Q (%) Net Interest Income 4,867 4,125 18% ▲ 4,669 4% ▲ Other Income 2,210 1,932 14% ▲ 2,154 3% ▲ Total Income 7,077 6,057 17% ▲ 6,823 4% ▲ Operating Expenses 3,246 2,626 24% ▲ 3,065 6% ▲ Operating Profit 3,83
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: 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 10: Well Diversified Loan Book across Consumer and Corporate Products
Well Diversified Loan Book across Consumer and Corporate Products Loan Book Mix (₹crs) (₹crs) 2,47,960 2,60,129 2,72,754 2,89,924 3,01,317 Consumer Banking June-23 % Vehicle Finance 78,332 26% 46% 47% 47% 46% 46% Commercial Vehicle 29,320 10% Utility Vehicle 9,813 3% 54% 53% 53% 54% 54% Small CV 3,5
Slide 11: 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 (%) Small CV Two Wheelers 5% 6% Market Leader Utility Vehicle 35+ Years of Vintage Focus on Business CV in Most Products 13% 37% Across Credit Cy
Slide 12: Microfinance: Bridging the Financial Inclusion Gap
Microfinance: Bridging the Financial Inclusion Gap Micro Finance Loan Book (₹crs) 32,215 31,981 29,403 29,617 29,688 2nd Largest 10mn 1.38 Lacs Villages 9% YoY Micro Finance Women Customers covered across 21 Lender States 1% QoQ Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Average Ticket Size (₹) 32,
Slide 13: 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 1,39,437 1,34,150 1,27,010 22% 22% 22% 21% 1,21,766 1,14,429 22% YoY 25% 24% 24% 26% 26% 28% 27% 29% 4% QoQ 23% 22% 23% 20% 4
Slide 14: Non-Vehicle Retail Loans – Risk Calibrated Growth Strategy
Non-Vehicle Retail Loans – Risk Calibrated Growth Strategy Business Banking (₹crs) Loan Against Property (₹crs) 14,807 9,953 13,845 9,502 9,640 9,009 9,248 12,839 12,203 12,512 21% YoY 10% YoY 7% QoQ 3% QoQ Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Credit Cards (₹
Slide 15: 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 16: Deposit Growth Driven by Granular Retail Deposits
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 (%) 43% 3,47,047 43% 3,36,120 42% 3,25,278 41% 3,15,532 3,02,719 41% 15% YoY 21% YoY 1,50,691 1,24,105 1,29,990 1
Slide 17: 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% 14% 43% 42% 15% 12% 14% 15% 1,38,440 50,007 50,600 49,343 40% YoY 1,30,508 1,33,525 1,36,379 1,34,728 44,157 6% YoY 35,265 2% QoQ 3% QoQ Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1
Slide 18: Borrowings Constituted by Long Term Sources
Borrowings Constituted by Long Term Sources Borrowings Mix (%) Borrowings (₹crs) Short-Term Borrowings (₹Cr) % of Total Liabilities FCY (less than Infrastructure 12 months) Bonds AT1 Bonds 4% 3% 3% 11% Tier 2 Bonds 11% 10% 6% 10% 10% 47,284 49,011 45,622 41,812 40,673 Long-Term FCY Refinance from 26
Slide 19: 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 20: 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 LC - Usance treasuries in Indian banks Notional Amount Risk Weighted Assets 15% with best-in-class risk 13,86,814 LC - Sight Financial management systems 6% Guarantees 0.5%# 38% Robust
Slide 21: 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 22: Yield / Cost Movement
Yield / Cost Movement 12.24% 12.02% 9.60% 9.20% Yield on Assets 6.12% 5.81% Yield on Advances 5.31% 4.92% Cost of Deposits Cost of Funds Q1FY24 Q4FY23 Segment-wise Yield: Q1FY24 Q4FY23 Outstanding (₹crs) Yield (%) Outstanding (₹crs) Yield (%) Corporate Banking 139,437 8.99% 134,150 8.89% Consumer Ba
Slide 23: Diversified and Granular Fee and Other Income Streams
Diversified and Granular Fee and Other Income Streams ₹In crs Q1FY24 Q1FY23 Y-o-Y(%) Q4FY23 Q-o-Q(%) Trade and Remittances 233 189 23% 200 17% Foreign Exchange Income 262 220 19% 269 (2)% Cards and Distribution Fees 637 507 26% 714 (11)% General Banking Fees 382 334 20% 237 61% Loan
Slide 24: 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% 1.9% 4.21% 4.24% 4.27% 4.28% 4.29% Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Operating Profit Margin (%) Cost to Income Ratio (%) 5.
Slide 25: Key Financial Indicators
Key Financial Indicators Return on Assets (%) Return on Equity (%) 1.87% 1.90% 1.90% 1.73% 1.80% 15.23% 15.26% 15.24% 13.44% 14.45% Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Earning Per Share – Annualized (₹) Net Worth (₹ crs) 105.4 109.5 50,686 52,848 54,994 10
Slide 26: 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 27: Movement in Non-Performing Assets
Movement in Non-Performing Assets Q1FY24 Q4FY23 ₹In crs Corporate Consumer Total Corporate Consumer Total Opening Balance 2,069 3,757 5,826 1,869 3,842 5,711 Fresh Additions 43 1,333 1,376 264 1,339 1,603 -from Standard 43 1,201 1,244 82 1,162 1,244 -from Restructured - 132 132 182 177 359 Deduction
Slide 28: NPA Composition – Consumer Banking
NPA Composition – Consumer Banking (₹crs) HL/PL/Oth Q1 FY24 CV Utility CE Small CV TW Cars Tractor BBG/LAP Cards MFI Total ers Gross NPA 378 30 93 65 376 60 169 847 265 216 1,453 3,952 Gross NPA % 1.28% 0.30% 0.91% 1.81% 7.62% 0.54% 1.76% 3.34% 1.47% 2.38% 4.39% 2.41% HL/PL/Oth Q4 FY23 CV Utility CE
Slide 29: Loan Related Provisions held as on June 30, 2023
Loan Related Provisions held as on June 30, 2023 Specific provision of ₹ 4,124 crs for non-performing accounts(towards PCR) Floating provisions of ₹ 70 crs (towards PCR) Standard contingent provisions of ₹ 1,700 crs surplus outside PCR Standard asset provisions of ₹ 1,345 crs other than cont
Slide 30: 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 31: Healthy Capital Adequacy
Healthy Capital Adequacy CET1 Ratio (%) 16.06% 15.97% 16.01% 16.44% 15.93% Capital Adequacy ₹In crs 30 June 23 31 Mar 23 Credit Risk, CVA and UFCE 2,82,316 2,85,986 Market Risk 9,643 8,639 Operational Risk 42,411 42,411 Total Risk Weighted Assets 3,34,370 3,37,036 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23
Slide 32: Shareholding Pattern and Credit Ratings
Shareholding Pattern and Credit Ratings Diversified Shareholding Credit Ratings Domestic Rating: GDR issue NRIs/ Director/ 8.18% CRISIL AA + for Infrastructure Bonds program/Tier 2 Bonds Others Promoters 1.93% 15.14% CRISIL AA for Additional Tier 1 Bonds program Individuals 7.37% CRISIL A1+ fo
Slide 33: 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 34: 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 Jun 30, Sep 30, Dec 31, Mar 31, June 30, Particulars 2022 2022 2022 2023 2023 ~35 mn ~1,38,000 Branches/Banking Outlets 2,286 2,320 2
Slide 35: 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 36: Digital Strategy: Customer Experience and Engagement
Digital Strategy at IndusInd continues to drive impact across 3 primary Business Objectives Digital transaction intensity continues to grow and more and more of existing business moving digital 1 IndusMerchant Solutions 32% YoY growth in 82% growth in mobile PlayStore App Rating IndusMobile MAU* txn
Slide 37: Digital Strategy: Direct Platform-led Business
Digital Strategy at IndusInd continues to drive impact across 3 primary Business Objectives Direct platform led business continues to grow at a robust pace 3 Do It Yourself (DIY) Platform led & BaaS* led Business: Assets grew 4X YoY, Liabilities grew 1.4X YoY Assets (Indexed) Liabilities (Indexed) 5
Slide 38: Digital Marketing at IndusInd Activating the Brand Digitally
Digital Marketing at IndusInd continues to activate the brand digitally and driving better conversions through insight-led marketing campaigns Impactful digital marketing initiatives leading to increase in organic growth ~30% ~100 Increase in lead Avg. No. Of page traffic per leads generated per Cre
Slide 39: Digital Stack for Individual and MSME Segments
Digital Stack for Individual and MSME Segments: Continued enhancements to drive DIY, STP & overall operational efficiencies for Individuals • Enabled instant completion of personal loan and credit card application journey by integrating assisted Video-KYC in assisted as well as DIY (Mobile Banking a
Slide 40: NTC Underwriting and MSME Underwriting Models
With alternate data, newer algorithms and multi dimensional models we have been able to augment our asset disbursements with very short TAT 1 1. Started underwriting ntc • Using alternate data and ML algorithms we have identified profitable segments for unsecured underwriting personal loans • PL ori
Slide 41: Launching a new way to bank
Launching a new Digital Stack for Individual and MSME Segments: Continued enhancements to drive DIY, STP & overall operational efficiencies way to bank 40 38
Slide 42: 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 43: ESG highlights for Q1 of FY24
ESG highlights for Q1 of FY24 Business Risk Operations Awards ORMC approvals for Women Selected by UN Supported Entrepreneurs Product in place. ‘Taskforce on Nature related All our pioneer branches are now Signed a MoU with USAID Financial Disclosures’ as a pilot LEED certified. Recognized as the ‘B
Slide 44: Awarded 'Best Bank for ESG in India - FY23'
Awarded ‘Best Bank for ESG in India - FY23’ Our Sustainability Pillars ESG products for ESG Integration in Business Risk Management ESG Principles in Industry-level Bank’s IT, HR and Advocacy & Operations Collaboration Disclosures & ESG ESG integration in Ratings PC-6 strategy Thanking our partners
Slide 45: 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 46: Board of Directors with Varied Expertise
Board of Directors with Varied Expertise Name Nature of Directorship Special Knowledge /Expertise Prior Experience Was on the board of all AIG companies in India, Held various senior positions at Non-Executive, Banking, Financial services, Citibank, Independent Director on the Board of State Bank of
Slide 47: 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, Mr. Sumant Kathpalia Managing Director & CEO 35+ Bank of America and ABN AMRO Mr. Arun Khurana Deputy CEO 29+ Regional Hea
Slide 48: Awards & Accolades
Awards & Accolades "7 IndusInd Bank
Slide 49: Accolades
Accolades JCB Annual Financiers Award Captain Tractors 2022 Captain Tractors awarded IndusInd IndusInd Bank was ranked Bank for being the Number 1 second at the JCB Annual Financier, for 2 consecutive Financiers Award 2022. Financial years Wells Fargo Operational Finnoviti Awards 2023 Excellence Awa
Slide 50: Accolades: Infosys Finacle Innovation Awards 2023
Accolades Infosys Finacle Innovation awards 2023 Gold Winner: Ecosystem Platinum Winner: Modern Gold Winner: Maximizing Led Innovation - Open Technologies-led innovation Customer Engagement - Banking & Omni-Channel - Digital Centre of Centralized hub for Excellence communications The Bank was recogn
Slide 51: 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