IndusInd Bank Ltd. · NSE:INDUSINDBK

IndusInd Bank — Investor Presentation (August 2009)

32 slides from IndusInd Bank's investor presentation, August 2009

  1. Slide 1: IndusInd Bank August 2009

    Indusind Bank & August - 2009

  2. Slide 2: Disclaimer

    Disclaimer This presentation has been prepared by IndusInd Bank Limited (the “Bank”) and is being furnished to you, the recipient, solely for your information and may not be reproduced, delivered or transmitted (in whole or in part), directly or indirectly, by any means to any other person in any ma

  3. Slide 3: Agenda

    Agenda Overview of IndusInd Bank Bank in Transformation – Key Takeaways Financial Performance 3

  4. Slide 4: Overview of IndusInd Bank

    OVarviawy or irieltisirie| ain) le Indusind Bank @

  5. Slide 5: A New Generation Private Sector Bank

    A New Generation Private Sector Bank Overview  Incorporated in 1994  Widespread & loyal customer base of ~ 2.02 million as at June 30, 2009  Pan India presence through a network of 180 branches, 410 marketing offices, 378 ATMs, representative offices in Dubai and London and strategic alliances in

  6. Slide 6: With 15 years of Operating History

    With 15 years of Operating History  Launched new Brand Campaign 2009  RBI approval received for 30 new branches and 50 off site ATM  Appointed as Clearing & Settlement Bank at all major Tea Auction centres  Tied up with BONY Mellon for on line remittances from United States to India GDR Issue -

  7. Slide 7: In Growth Mode

    In Growth Mode Net Interest Margin (NIM) RoA RoE 2.6% 1.3% 22.8% 2.0% 1.5% 1.4% 0.6% 10.4% 0.3% 0.3% 6.5% 6.8% FY07 FY08 FY09 Q1FY10 FY07 FY08 FY09 Q1FY10 FY07 FY08 FY09 Q1FY10 Cost to Income Ratio Net NPA Revenue/Employee (Rs Mn) 66.7% 67.2% 2.5% 3.0 59.8% 2.3% 48.8% 2.1 2.2 2.0 1.1% 1.0% FY07 FY08

  8. Slide 8: A Bank in Transformation – Key Takeaways

    A Bank in Transformation – Key Takeaways

  9. Slide 9: What Changed Since February 2008

    What Changed Since February 2008 1 New execution-focused management brought on board from a prominent foreign bank 2 Mission and measurable targets set 3 Business segments reorganized to boost profitability 4 Ramped up workforce and branch network 5 Focus on improving the liability side of balance s

  10. Slide 10: New Execution-focused Management

    New Execution-focused Management Management Team Designation Previous Assignments  Executive Vice President – Country Executive, India and Head, UAE & Sub-continent at ABN AMRO bank N.V. Romesh Sobti Managing Director & CEO  Has been associated with ANZ Grindlays Bank plc & State Bank of India in

  11. Slide 11: Stated Ambition with Measurable Targets

    Stated Ambition with Measurable Targets Mission Statement To position IndusInd Bank as a Top 3 performer in the new private bank space in 3 years RoA Profitability RoE Measured By Objectives Net Interest Margins Productivity Cost to Income Ratio Revenue per Employee Efficiency Net NPAs 11

  12. Slide 12: Reorganization of Business Segments

    Reorganization of Business Segments Global Markets Transaction Banking Product Groups Client Groups Consumer Banking Corp. & Commercial Banking Corporate & Consumer Finance Investment Banking Retail Liabilities Commercial Banking Banking Channel Management Business Banking & Services Wealth Manageme

  13. Slide 13: Revitalizing Distribution and Workforce

    Revitalizing Distribution and Workforce Distribution infrastructure being strengthened FY07 FY08 FY09 Q1FY10 Branch Network 170 180 180 180 ATMs 178 336 356 378 Distribution Centres 410 410 410 410 30 new Branches and 36 Off Site ATM licenses are on hand Work force additions to help drive business g

  14. Slide 14: Improving Liability side of Balance Sheet

    Improving Liability side of Balance Sheet  Top priority of the management towards CASA Uptick 50,000 22%  Building CASA 19.2% 20.2% 40,000 20%  Increasing the retail proportion in the term 15.7% 18% deposits 30,000 14.9% 43,709 16%  Broad basing the wholesale deposits 42,549 20,000 14% 29,883 

  15. Slide 15: Right Pricing of Asset Book impacting NII

    Right Pricing of Asset Book impacting NII  Differential risk-based loan pricing for each customer segment  Increased focus on Small Business & Mid - Corporates  Strong traction in the high yielding consumer finance division  Churning of old loans with new higher yielding loans  Priority Sector

  16. Slide 16: Thrust on Driving Revenues from Fee Income

    Thrust on Driving Revenues from Fee Income (Rs Mn) FY08 FY09 Growth Q1FY09 Q1FY10 Growth L/C, BG, FIBC/FOBC 324 414 27.7%  102 104 2.1%  Processing fees 435 471 8.2%  60 114 89.1%  Foreign exchange profit 289 719 148.8%  119 174 45.4%  Insurance 386 638 65.3%  122 172 40.3%  Mutual funds 31

  17. Slide 17: Achieving Efficiency to Boost Profitability

    Achieving Efficiency to Boost Profitability Cost to Income Ratio Net NPA Revenue/Employee (Mn) 70.9% 3.0 65.5% 2.4% 2.9 58.3% 2.2% 2.4 51.8% 48.8% 2.1 2.0 1.3% 1.1% 1.0% Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10 Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10 Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10  Cost to Income ratio ha

  18. Slide 18: Employee Efficiency - Key Metrics

    Employee Efficiency - Key Metrics (Rs Mn) FY08 FY09 Growth Q1FY09 Q1FY10 Growth Revenue / Employee 2.09 2.15 3.2%  2.06 3.02 47.0%  Staff Cost / Employee 0.43 0.44 3.5%  0.49 0.54 11.1% Staff Cost / Revenue 20.4% 20.5% 0.4%  23.6% 17.9% -24.4%  18

  19. Slide 19: Revamped Risk Organisation

    Revamped Risk Organisation - All Risk Classes Unified – Integrated Risk Management - New Functions Created Risk Organisation Credit Approval & Market Risk Mgmt Operational Risk Fin Restr & CQA & Loan Credit Risk Mgmt Monitoring & ALM Mgmt Reconstnn Review  Credit Appraisal/  Risk Rating Models  P

  20. Slide 20: Financial Performance

    Financial/ Pemonnance Indusind Bank @

  21. Slide 21: Profit and Loss Account

    Profit and Loss Account (Rs Mn) FY08 FY09 Growth Q1FY09 Q1FY10 Growth Net Interest Income 3,008 4,590 52.6%  929 1,674 80.1%  Non Interest Income 2,976 4,563 53.3%  649 1,728 166.1%  Total Net Income 5,984 9,153 53.0%  1,579 3,401 115.5%  Operating Expenses 4,022 5,470 36.0%  1,120 1,658 48.1

  22. Slide 22: Balance Sheet

    Balance Sheet (Rs Mn) FY08 FY09 Growth Q1FY09 Q1FY10 Growth Capital & Liabilities Capital 3,200 3,552 11.0%  3,552 3,552 0.0% Reserves and Surplus 10,297 13,092 27.1%  12,294 13,952 13.5%  Deposits 190,374 221,102 16.1%  181,160 216,388 19.4%  Borrowings 10,954 18,565 69.5%  29,134 23,413 -19.

  23. Slide 23: Other Income

    Other Income (Rs Mn) FY08 FY09 Growth Q1FY09 Q1FY10 Growth Fee Based Income 1,890 2,509 32.7%  523 715 36.7%  Profit on Exchange Transactions 289 719 148.8%  120 174 45.5%  Profit on Sale of Investments 194 1,216 525.3%  (51) 868 1801.2%  Profit/(Loss) on sale of assets (7) (306) (63) (86) NPA

  24. Slide 24: Operating Metrics

    Operating Metrics Net Interest Margin (NIM) RoA RoE 2.6% 1.3% 22.8% 2.5% 2.0% 1.8% 1.7% 0.8% 14.1% 0.7% 12.6% 0.5% 9.8% 0.3% 5.7% Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10 Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10 Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10 Cost to Income Ratio Net NPA Revenue/Employee (Rs Mn) 70.9% 3.0 6

  25. Slide 25: Well Diversified Asset Book

    Well Diversified Asset Book Asset Book (Rs Mn) 157,706 164,516 127,953 110,842 54.8% 55.8% 43.2% 41.5 56.8% 45.2% 44.2% 58.5% FY07 FY08 FY09 Q1FY10 Consumer Finance Division Corporate & Commercial Banking Risk Diversification – Analysis of Bank’s Exposure (incl NFB) Industry-wise Corp. & Comm. Banki

  26. Slide 26: Favourable Yield / Cost Movement

    Favourable Yield / Cost Movement Yield on Advances Cost of Deposits 16% 9% 8.2% 7.8% 7.7% 14% 13.2% 8% 13.4% 7% 6.7% 12% 11.8% 9.8% 6% 10% 5% 8% 4% 6% 3% 4% 2% 2% 1% 0% 0% FY07 FY08 FY09 Q1FY10 FY07 FY08 FY09 Q1FY10 26

  27. Slide 27: Loan Portfolio - Movement in NPA

    Loan Portfolio - Movement in NPA (Rs Mn) FY08 FY09 Q1FY10 CCB CFD Total CCB CFD Total CCB CFD Total Opening Balance 1,898 1,529 3,427 2,234 1,689 3,923 756 1,795 2,551 Additions 539 1016 1,555 926 1,264 2,190 86 397 483 Deduction 203 857 1,060 2,404 1,158 3,562 278 345 623 Gross NPA 2,234 1,689 3,92

  28. Slide 28: CFD - Segment wise NPA

    CFD - Segment wise NPA (Rs Mn) Q1FY10 CV CE 3W TW Cars BILLS HL TOTAL Net Book Assets 41,361 10,166 6,213 8,356 5,161 111 1,444 72,812 Add: Provision 217 29 8 95 54 - - 403 Gross Book Assets 41,578 10,195 6,221 8,451 111 1,444 73,214 5,215 Gross NPA Asset 920 158 44 463 - - 1,847 262 Net NPA Asset 7

  29. Slide 29: Loan Portfolio – Restructured Standard Advances

    Loan Portfolio – Restructured Standard Advances Q1-10* Q1-09 Q4-09* No. Rs Mn No. Rs Mn No. Rs Mn Restructured Loans (Net) 129 760 18 20 126 380 Advances 164,520 134,680 157,710 Restructured Loans 0.5% 0.0% 0.2% * Includes restructuring of consumer / vehicle loans – 118 borrowal accounts involving R

  30. Slide 30: Shareholding Pattern

    Shareholding Pattern Shares held by Custodians & against w hich Depository Receipts have been issued 18.2% NRIs / Director / Others 5.5% Promoters 25.6% Individuals 17.1% MFs / Banks / Insurance Co 2.6% Private Corporates 12.7% FIIs 18.3% As at June 30, 2009 30

  31. Slide 31: Management Outlook

    Management Outlook  Continued focus on Productivity, Profitability & Efficiency  Expected to derive benefit from the current interest rate scenario with  Consumer Loan portfolio carrying historically high fixed yields  Benefit is expected to accrue from the short tenor bulk liability book due to

  32. Slide 32: Thank you

    Indusind Bank @

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