Indusind Bank Ltd. · NSE:INDUSINDBK
Indusind Bank — Q4 FY2024 Earnings Presentation
56 slides from Indusind Bank's earnings presentation, Apr 25, 2024
Slide 1: Investor Presentation Q4-FY24
Investor Presentation Q4-FY24 | MARCH 2024 April 25, 2024
Slide 2: IndusInd Bank at a Glance
IndusInd Bank at a Glance 5th Largest Private Bank ₹3,43,298 crs ₹ 3,84,586 crs 39 mn 6,971 with Disproportionately Loans Deposits Customers Group Network Large Distribution Network Diversified Across Products and Geographies` Across Segments Pan India Universal Banking Approach 56:44 Loan Mix 38% C
Slide 3: Key Outcomes for Q4FY24 & FY24
Key Outcomes for Q4FY24 & FY24 1 Retailisation of deposits continues apace Retail deposits as defined by LCR grew by 18% YoY in sync with overall loan growth Share of retail deposits improved by 151bps to 44.1% from 42.6% YoY 2 Loan growth driven by granular businesses Retail loans grew by 23%
Slide 4: Key Financial Highlights for Q4 FY24
Key Financial Highlights for Q4 FY24 Loans Deposits CASA Term Deposits Total Assets Balance ₹3,43,298 crs ₹3,84,586 crs ₹1,45,666crs ₹2,38,920 crs ₹5,15,094crs Sheet 18% YoY 5% QoQ 14% YoY 4% QoQ 8% YoY 3% QoQ 19% YoY 5% QoQ 13% YoY 5% QoQ Net Interest Income Total Other Income Revenue Operating Pro
Slide 5: Consolidated Balance Sheet
Consolidated Balance Sheet ₹In crs Q4FY24 Q4 FY23 Y-o-Y (%) Q3 FY24 Q-o-Q (%) Capital & Liabilities Capital 778 776 - - 778 - - Reserves and Surplus 62,429 54,229 15% 60,003 4% Deposits 3,84,586 3,36,120 14% 3,68,793 4% Borrowings 47,611 49,011 (3)% 40,473 18% Other Liabilities and Provi
Slide 6: Consolidated Profit and Loss Account – Q4 FY24 and FY24
Consolidated Profit and Loss Account – Q4 FY24 and FY24 ₹In Crore Q4FY24 Q4FY23 Y-o-Y (%) Q3FY24 Q-o-Q (%) FY24 FY23 Y-o-Y (%) Net Interest Income 5,376 4,669 15% ▲ 5,296 2% ▲ 20,616 17,592 17% Other Income 2,508 2,154 16% ▲ 2,396 5% ▲ 9,396 8,173 15% Total Income 7,854 6,823 16% ▲ 7,692 3% ▲ 30,012
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) 2,89,924 3,01,317 3,15,454 3,27,057 3,43,298 Consumer Banking Mar-24 % Vehicle Finance 88,395 26% 46% 46% 45% 45% 44% Commercial Vehicle 33,239 10% PV 25,658 7% Small CV 4,018 1% 54% 54% 55% 55% 56% Two-Whe
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 10% 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) 39,192 34,363 35,761 32,215 31,981 2nd Largest 12 mn 1.57 Lacs Villages 22% YoY Micro Finance BFIL Customers covered across 23 Lender States 10% QoQ Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Average Loan Outstanding
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 1,52,053 1,43,154 1,46,587 1,39,437 1,34,150 21% 21% 23% 23% 13% YoY 26% 29% 28% 29% 29% 27% 27% 26% 4% QoQ 21% 20% 19% 19% 3
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) 16,732 15,894 10,811 15,364 10,470 14,807 9,953 10,181 13,845 9,640 21% YoY 12% YoY 5% QoQ 3% QoQ Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 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% 44% 43% 43% 3,84,586 3,68,793 3,59,548 18% YoY 3,47,047 3,36,120 14% YoY 1,43,021 2% QoQ 1,50,691 4
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% 15% 15% 14% 14% 12% 1,45,666 1,38,440 1,41,437 1,41,924 50,600 49,343 50,044 7% YoY 1,34,728 8% YoY 49,910 46,989 3% QoQ 6% QoQ Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 F
Slide 17: Borrowings Constituted by Long Term Sources
Borrowings Constituted by Long Term Sources Borrowings (₹crs) Borrowings Mix (%) Short-Term FCY Infrastructure (less than 12 Bonds Borrowings (₹Cr) % of Total Liabilities months) 3% 11% 11% 11% 10% 8% 9% Tier 2 Bonds 6% 49,011 47,611 45,622 40,530 40,473 Long-Term FCY Refinance from 30% Development
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) Notional Amount Risk Weighted Assets One of the largest treasuries LC - Usance in Indian banks with best-in- 12% class risk management LC - Sight 13,05,181 4% Financial systems Guarantees 44% 1.2%# 0.5%#
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 Yield on Assets 12.66% 12.45% Yield on Advances Cost of Deposits 9.85% 9.75% Cost of Funds 6.48% 6.44% 5.59% 5.46% Q4FY24 Q3FY24 Segment-wise Yield: Q4FY24 Q3FY24 Outstanding (₹crs) Yield (%) Outstanding (₹crs) Yield (%) Corporate Banking 1,52,053 9.01% 1,46,587 9.06% Consumer
Slide 22: Diversified and Granular Fee and Other Income Streams
Diversified and Granular Fee and Other Income Streams ₹In crs Q4FY24 Q4FY23 Y-o-Y(%) Q3FY24 Q-o-Q(%) Trade and Remittances 239 200 19% 227 5% Foreign Exchange Income 235 269 (13%) 276 (15%) Cards and Distribution Fees 864 714 21% 743 16% General Banking Fees 294 237 24% 286 3% 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% 2.0% 1.9% 1.9% 4.28% 4.29% 4.29% 4.29% 4.26% Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Operating Profit Margin (%) Cost to Income Ratio (%) %
Slide 24: Key Financial Indicators
Key Financial Indicators Return on Assets (%) Return on Equity (%) 1.90% 1.90% 1.90% 1.93% 1.90% 15.26% 15.24% 15.33% 15.45% 15.23% Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Earning Per Share – Annualized (₹) Net Worth (₹ crs) 120.8 58,841 61,445 113.5 118.4 54,
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 Q4FY24 Q3FY24 ₹In crs Corporate Consumer Total Corporate Consumer Total Opening Balance 2,218 4,159 6,377 2,066 4,098 6,164 Fresh Additions 162 1,266 1,428 312 1,453 1,765 -from Standard 162 1235 1,397 304 1,393 1,697 -from Restructured - 31 31 8 60 68 Deductions 66
Slide 27: NPA Composition – Consumer Banking
NPA Composition – Consumer Banking (₹crs) Q4 FY24 CV CE Small CV TW PV Tractor BBG/LAP Cards MFI Others Total Gross NPA 288 42 61 402 64 114 840 268 1837 463 4,379 Gross NPA % 0.86% 0.37% 1.51% 7.65% 0.25% 1.27% 3.00% 2.48% 4.53% 1.80% 2.26% Q3 FY24 CV CE Small CV TW PV Tractor BBG/LAP Cards MFI Oth
Slide 28: Loan Related Provisions held as on March 31, 2024
Loan Related Provisions held as on March 31, 2024 Specific provision of ₹ 4,655 crs for non-performing accounts(towards PCR) Floating provisions of ₹ 70 crs (towards PCR) Standard contingent provisions of ₹ 1,000 crs (surplus outside PCR) Standard asset provisions of ₹ 1,485 crs other than c
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 15.93% 16.44% 16.33% 16.07% 15.82% ₹In crs 31 Mar 24 31 Dec 23 Credit Risk, CVA and UFCE 3,27,803 3,20,426 Market Risk 7,148 7,575 Operational Risk 48,709 42,411 Total Risk Weighted Assets 383,660 3,70,412 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Co
Slide 31: Shareholding Pattern and Credit Ratings
Shareholding Pattern and Credit Ratings Diversified Shareholding Credit Ratings Domestic Rating: CRISIL AA + for Infrastructure Bonds program/Tier 2 Bonds GDR issue CRISIL AA for Additional Tier 1 Bonds program NRIs/ Director/ 7.92% Others Promoters CRISIL A1+ for certificate of deposit progra
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 Mar 31, June 30, Sep 30, Dec 31, Mar 31, Particulars 2023 2023 2023 2023 2024 ~39 mn ~1,57,000 Branches/Banking Outlets 2,606 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: Digital Platforms continue to drive superior customer engagement
Digital Platforms continue to drive superior customer engagement and transformation of existing businesses Monthly Active User Base Active User Base increased by 19% YoY; increased by 38% YoY; 1.2 lakh registered 8.4 Mn registered users 60K registered users users Mn users (indexed) ‘000 users (index
Slide 36: Digital Business: Key Highlights (Direct to Client Business Model)
Digital Business: Key Highlights (Direct to Client Business Model Scaling with Efficiency) Direct to Client Platforms continue to scale FY 24 Digital Unassisted / DIY Business Highlights with efficiency – creating a new tech led 2000,000 business model Liabilities ENR – Rs Cr (indexed) 141 New clien
Slide 37: Digital Business: Key Highlights (Direct to Client Business Model)
Digital Business: Key Highlights (Direct to Client Business Model Scaling with Efficiency) Digital model drives better business efficiency than offline across lines of business in which it operates Customer Acquisition Cost for 60 day Activation Rate % 90 dpd % of ENR (9 MOB+ Cards acquired digitall
Slide 38: INDIE off to a strong start and growing strongly
INDIE off to a strong start and growing strongly with transactions nearly doubling every month – to be profitable in H1 FY 24 Continuous enhancements to the platform and opening up the ~5 Mn ~170K platform to existing customers of the Bank Installs Customers Migrated Setup Auto Sweep Setup Auto Pay
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 Q4 of FY24
ESG highlights for Q4 of FY24 Inviting MSEs to avail Solar Rooftop Loans Express Awards for Women Entrepreneurs One of the highest- rated among top 5 private banks in India, earning a ”B” rating The latest sustainability report, accessible via this link, provides comprehensive insights into our envi
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 36+ America and ABN AMRO Mr. Arun Khurana Executive Director & Deputy
Slide 44: Planning Cycle Progress
Planning Cycle 6 Progress “4 IndusInd Bank
Slide 45: PC-6 Strategy
PC-6 Strategy Planning Cycle 6 (2023–26) Market Share with Diversification Strategy 3G: Growth, Granularity, Governance 1 Continuing Retailisation Journey 2 Diversifying Domains Key 3 Themes Scaling Sub-scale Businesses 4 Accelerating Digital 2.0 5 Imbibing ESG into Business 45
Slide 46: Continuing Retailisation Journey: Increasing Share of Retail Deposits
1 Continuing Retailisation Journey: Increasing Share of Retail Deposits Robust Deposit Growth Driven by Retail & CASA Increased Ramped Share of Retail up Client Deposits Acquisition Investing in Distribution Network ~73% of incremental deposits from retail & CASA (Rs in crore) Retail Deposit as per
Slide 47: Diversifying Domains (Vehicle Finance): Sustainable Growth Across Product Cycles
2a Diversifying Domains (Vehicle Finance): Sustainable Growth Across Product Cycles Steadily Lowered Dependency on MHCV Ramped up LCV Segment MHCV % Total Loan Book LCV Disbursements: Trailing 12 Months (Rs.cr) 11% 6,341 10% 5,651 9% 8% 7% 3,285 3,233 3,398 6% 2,574 2,350 Q4FY18 Q1FY19 Q2FY19 Q3FY19
Slide 48: Diversifying Domains (BFIL): Evolving from Microfinance to Micro Banking
2b Diversifying Domains (BFIL): Evolving from Microfinance to Micro Banking Diversifying Book from JLG Loans Scaled up Merchant Business BFIL Originated Loan Book Mix Active Merchants: Loan Clients (#’000) JLG Loans Merchant & New Products 700 595 1% 6% 11% 13% 325 Merchant Loans: 100% 99% 94% Rs.5,
Slide 49: Diversifying Domains (Gems & Jewellery): An Approach to Community Banking
2c Diversifying Domains (Gems & Jewellery): An Approach to Community Banking Gems & Jewellery Loan Book (Rs.’000 cr) 1 Cautious on Growth Amidst Macro Slowdown 12.2 7.4 8.1 10.3 9.5 6% CAGR 2 Asset Quality to Remain Pristine Zero NPA | Zero SMA 1 &2 | Zero Restructuring Mar-20 Mar-21 Mar-22 Mar-23
Slide 50: Scaling Sub-scale Businesses: Growing Existing and New Initiatives
3 Scaling Sub-scale Businesses: Growing Existing and New Initiatives Home Loans Merchant Loans - BFIL MSME Focused Loan Book (Rs.cr) Home Loan Book (Rs.cr) Merchant Loan Book (Rs.cr) 1,792 20% 43,953 SME 5,565 CAGR Banking 34,988 1,377 21% SCF 4,033 27,423 1,004 CAGR 21,452 22,505 BBG 368% YoY
Slide 51: Accelerating Digital 2.0: Innovative Digital Platforms
4 Accelerating Digital 2.0: Innovative Digital Platforms Created a strong stack of digital Launched ‘Indie’ With Exciting Industry Leading Propositions products & capabilities Targeted Campaigns Building Awareness ~5mn App Installed For Revamped Individuals ~1.2mn accounts opened For Businesses ~9 m
Slide 52: Imbibing ESG into Business: Multiple Initiatives at Place
5 Imbibing ESG into with Business: Multiple Initiatives at Place • Enhancing Exposure to ESG +ve sectors Environment • Carbon neutrality by 2032 • ESG Linked Products • Green Deposits • Board level ESG Committee • Green & Sustainability Linked Bonds • Indus Solar - Solar Rooftop Loans • Integrated E
Slide 53: On Track with PC-6 Ambitions
On Track with PC-6 Ambitions Planning Cycle 6 (FY 2023-26) FY24 Outcome Loan Growth 18%-23% 18% Retail Loan Mix 55%-60% 56% Resulting in Retail Deposits as per LCR 45%-50% 44% PPOP / Loans 5.25% - 5.75% 5.2% Branch Network 3,250 - 3,750 2,984 Customer Base > 50mn 39mn 53
Slide 54: Awards & Accolades
Awards & Accolades IndusInd Bank
Slide 55: IBA Banking Technology Awards 2024 & India Gem & Jewellery Awards 2024
IBA Banking Technology Awards 2024 & India Gem & Jewellery Awards 20244 24 Best Technology Bank Award for Mid Size Best Bank Financing The Industry Best Digital Engagement Award IndusInd Bank was bestowed with the Best Technology Bank IndusInd Bank was awarded as the Best Bank Financing The Award fo
Slide 56: 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