Indusind Bank Ltd. · NSE:INDUSINDBK
Indusind Bank — Q2 FY2025 Earnings Presentation
47 slides from Indusind Bank's earnings presentation, Oct 24, 2024
Slide 1: Cover letter to stock exchanges
October 24, 2024 National Stock Exchange of India Limited (Symbol: INDUSINDBK) BSE Limited (Scrip Code: 532187) Luxembourg Stock Exchange Madam / Dear Sir, Sub.: Investor Presentation on the Unaudited Consolidated and Standalone Financial Results for the quarter and half year ended September 30, 202
Slide 2: Investor Presentation Q2-FY25
Investor Presentation Q2-FY25 | SEPTEMBER 2024 October 24, 2024
Slide 3: IndusInd Bank at a Glance
IndusInd Bank at a Glance 5th Largest Private Bank ₹3,57,159 crs ₹ 4,12,397 crs 41 mn 7,090 with Disproportionately Loans Deposits Customers Group Network Large Distribution Network Diversified Across Products and Geographies` Across Segments Pan India Universal Banking Approach 53:47 Loan Mix 36% C
Slide 4: Key Financial Highlights for Q2 FY25
Key Financial Highlights for Q2 FY25 Loans Deposits CASA Term Deposits Total Assets Balance ₹3,57,159 crs ₹4,12,397 crs ₹1,47,944 crs ₹2,64,453 crs ₹5,43,407 crs Sheet 13% YoY 3% QoQ 15% YoY 3% QoQ 5% YoY 1% QoQ 21% YoY 5% QoQ 14% YoY 2% QoQ Net Interest Income Total Other Income Revenue Operating P
Slide 5: Consolidated Balance Sheet
Consolidated Balance Sheet ₹In crs Q2FY25 Q2FY24 Y-o-Y (%) Q1FY25 Q-o-Q (%) Capital & Liabilities Capital 779 777 - 779 - Reserves and Surplus 64,923 57,617 13% 64,799 - Deposits 4,12,397 3,59,548 15% 3,98,513 3% Borrowings 44,716 40,530 10% 44,169 1% Other Liabilities and Provisions 20,592 19,450 6
Slide 6: Consolidated Profit and Loss Account – Q2 FY25
Consolidated Profit and Loss Account – Q2 FY25 ₹In Crore Q2FY25 Q2FY24 Y-o-Y (%) Q1FY25 Q-o-Q (%) H1 FY25 H1 FY24 Net Interest Income 5,347 5,077 5% 5,408 (1)% 10,755 9,944 Other Income 2,185 2,282 (4)% 2,441 (11)% 4,627 4,492 Total Income 7,532 7,359 2% 7,849 (4)% 15,382 14,436 Operating Expenses 3
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) 3,15,454 3,27,057 3,43,298 3,47,898 3,57,159 Consumer Banking Sep-24 % Vehicle Finance 90,619 25% 45% 45% 44% 45% 47% Commercial Vehicle 34,183 10% PV 27,438 8% Small CV 4,091 1% 55% 55% 56% 55% 53% 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 5% 5% Tractor Market Leader 9% CV 35+ Years of Vintage Focus on Business in Most Products 38% Across Credit Cycles Owne
Slide 11: Microfinance: Bridging the Financial Inclusion Gap
Microfinance: Bridging the Financial Inclusion Gap Micro Finance Loan Book (₹crs)* 39,192 35,761 37,046 34,363 32,723 2nd Largest 13 mn 1.61 Lacs Villages (5)% YoY Micro Finance BFIL Customers covered across 21 Lender States (12)% QoQ Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 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 1,66,118 157,273 1,52,053 1,43,154 1,46,587 23% 23% 25% 24% 16% YoY 28% 29% 28% 30% 4% QoQ 27% 26% 26% 25% 20% 19% 18% 19% 3% 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) 11,169 11,401 17,499 10,811 16,732 16,683 10,470 15,364 15,894 10,181 14% YoY 12% YoY 5% QoQ 2% QoQ Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Credit Cards (₹crs
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
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 (%) 44% 44% 44% 44% 45% 3,98,513 4,12,397 3,84,586 16% YoY 3,59,548 3,68,793 15% YoY 1,57,187 4% QoQ 1,65,371 3% QoQ 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 % 39% 38% 38% 37% 36% 14% 14% 12% 12% 13% 1,45,666 1,46,134 1,47,944 49,910 50,044 52,606 1,41,437 1,41,924 5% YoY 46,989 48,475 5% YoY 1% QoQ 9% QoQ Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q2 F
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 Infrastructure Bonds FCY (less 3% than 12 Tier 2 Bonds months)… 6% 8% 8% 9% 8% 8% 47,611 44,716 44,169 40,530 40,473 Long-Term FCY 31% Refinance from Q2 FY24 Q3 FY24 Q4
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 LC - Usance One of the largest treasuries 10% in Indian banks with best-in- LC - Sight class risk management 6% 15,54,613 14,29,816 Financial systems Guarantees 1.00%#
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 Yield on Advances 12.31% 12.57% Cost of Deposits 9.69% 9.87% Cost of Funds 6.55% 6.53% 5.61% 5.62% Q2FY25 Q1FY25 Segment-wise Yield: Q2 FY25 Q1 FY25 Outstanding (₹crs) Yield (%) Outstanding (₹crs) Yield (%) Corporate Banking 1,66,118 8.89% 1,57,273 8.96% Consume
Slide 22: Diversified and Granular Fee and Other Income Streams
Diversified and Granular Fee and Other Income Streams ₹In crs Q2FY25 Q2FY24 Y-o-Y(%) Q1FY25 Q-o-Q(%) Trade and Remittances 250 234 7% 268 (7)% Foreign Exchange Income 256 227 13% 205 25% Cards and Distribution Fees 593 681 (13)% 659 (10)% General Banking Fees 461 367 26% 600 (23)% Loan Processing Fe
Slide 23: Key Profitability Metrics
Key Profitability Metrics Net Interest Margin (%) Total Fee to Asset Ratio (%) 4.29% 4.29% 4.26% 4.25% 2.0% 2.0% 4.08% 1.9% 1.9% 1.7% Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Operating Profit Margin (%) Cost to Income Ratio (%) % of Average Loans % of Average A
Slide 24: Key Financial Indicators
Key Financial Indicators Return on Assets (%) Return on Equity (%) 1.90% 1.93% 1.90% 1.70% 15.33% 15.45% 15.23% 13.52% 1.00% 8.11% Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Earning Per Share – Annualized (₹) Net Worth (₹ crs) 118.4 120.8 113.5 111.5 61,445 63,81
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 Q2FY25 Q1FY25 ₹In crs Corporate Consumer Total Corporate Consumer Total Opening Balance 2,305 4,822 7,127 2,314 4,379 6,693 Fresh Additions 118 1,680 1,798 48 1,488 1,536 Deductions 140 1,146 1,286 57 1,045 1,102 -Write-offs 23 644 667 9 605 614 -Upgrades 29 119 148
Slide 27: NPA Composition – Consumer Banking
NPA Composition – Consumer Banking (₹crs) Q2 FY25 CV CE Small CV TW PV Tractor BBG/LAP Cards MFI Others Total Gross NPA 376 103 60 403 98 139 880 365 2259 673 5,356 Gross NPA % 1.10% 0.87% 1.45% 7.99% 0.36% 1.70% 3.00% 3.31% 6.54% 2.37% 2.76% Q1 FY25 CV CE Small CV TW PV Tractor BBG/LAP Cards MFI Ot
Slide 28: Loan Related Provisions held as on September 30, 2024
Loan Related Provisions held as on September 30, 2024 Specific provision of ₹ 5,287 crs for non-performing accounts(towards PCR) Floating provisions of ₹ 70 crs (towards PCR) Standard contingent provisions of ₹ 1,525 crs (surplus outside PCR) Standard asset provisions of ₹ 1,530 crs other th
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 (%) 16.33% 16.07% 16.15% Capital Adequacy 15.82% 15.21% ₹In crs 30 Sep 24 30 June 24 Credit Risk, CVA and UFCE 3,66,358 3,36,917 Market Risk 5,452 3,212 Operational Risk 48,709 48,709 Total Risk Weighted Assets 4,20,519 3,88,838 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24
Slide 31: Shareholding Pattern and Credit Ratings
Shareholding Pattern and Credit Ratings Diversified Shareholding Credit Ratings Domestic Rating: GDR issue CRISIL AA + for Infrastructure Bonds program/Tier 2 Bonds NRIs/ Director/ 7.79% Others Promoters CRISIL A1+ for certificate of deposit program / short term FD 1.97% 15.09% Individuals progr
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 Sep 30, Dec 31, Mar 31, June 30, Sep 30, Particulars 2023 2023 2024 2024 2024 ~41 mn ~1,61,000 Branches/Banking Outlets 2,631 2,728 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: INDIE: Scaling consistently and bringing a better way to Bank
INDIE: Scaling consistently and bringing a “better way to Bank” – now open for all IndusInd Bank customers Scalable Business Impact Awards & Accolades – Q2’ FY 25 1.4 Mn Now live INDIE by IndusInd Bank won The Most accounts opened across the branch and Effective 360-degree Marketing vehicle finance
Slide 36: Digital DIY D2C / BaaS Business showed robust growth
Overall Digital DIY D2C / BaaS* Business showed robust growth Digital Assets Balance Sheet grew by 29% in H1 YTD, Digital SA Book by 18% and FD by 11% Digital Asset Balance Sheet – up 29% Digital SA Balance Sheet – up 18% Digital FD Balance Sheet – up 11% YTD YTD YTD Indexed ENR (Rs Cr) Indexed ENR
Slide 37: Digital Platform adoption continues to accelerate
Digital Platform adoption continues to accelerate with ongoing enhancements 10 Mn 90% Key New Launches Registered Base YoY increase in monthly conversations • Digitized CGTMSE working capital loans 3.2 Mn Monthly Active • Automated post sanction documentation Users 90K creation in SBB registered Rec
Slide 38: Q2 Launch Update: New Investment platform
Q2 Launch Update: IndusInd Bank Unveils "New Investment platform“, A Simplified, Tech- Enabled, Investment platform for all Personalized Investment Services: Tailored investment solutions with an intuitive interface, making investing effortless Powerful Features: Enjoy portfolio analysis, fund c
Slide 39: Q2 Launch Update: Mobile banking app for GIFT City customers
Q2 Launch Update: IndusInd Bank Launches a mobile banking app for GIFT City customers • Digital Onboarding: Simplified registration journey designed to cater to individual & non-individual gift city account holders including Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), Foreign Nat
Slide 40: 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 41: ESG highlights for Q2 of FY25
ESG highlights for Q2 of FY25 Asia Pacific Climate Leaders 2024 Employee Volunteering India’s Best Bank for ESG 2024 IndusInd Bank has been featured IBL volunteers dedicated 1,600+ The Bank has been recognised as in the Asia-Pacific Climate hours to support 130+ India’s Best Bank for ESG at the Lead
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 Heathy Disproportionately Executing Digital ESG Experienced Cap
Slide 43: Board of Directors with Diverse Expertise
Board of Directors with Diverse Expertise Name Nature of Directorship Special Knowledge /Expertise Prior Experience Mr. Sunil Mehta has over forty years of proven leadership experience in banking, financial services, insurance and investments with leading global and domestic financial institutions.
Slide 44: 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 45: Awards & Accolades
Awards & Accolades IndusInd Bank
Slide 46: Awards & Accolades
Awards & Accolades The Most Effective Marketing For Credit/Debit Cards Most Effective 360-degree Water Conservation and Outstanding CSR Contribution to Best-in-Class Payment Solution CFO of the year- BFSI Marketing Campaign Management High-Performing Athletes 45
Slide 47: 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