Indusind Bank Ltd. · NSE:INDUSINDBK

Indusind Bank — Morgan Stanley Virtual Investor Trip 2020

15 slides from Indusind Bank's conference presentation, Sep 23, 2020

  1. Slide 1: Stock exchange disclosure letter

    September 23, 2020 National Stock Exchange of India Ltd. (Symbol: INDUSINDBK) BSE Ltd. (Scrip Code: 532187) India International Exchange (Scrip Code: 1100027) Madam / Dear Sir, Subject: Disclosure under SEBI (Listing Obligations and Disclosure Require ments) Regulations, 2015 (Listing Regulations) I

  2. Slide 2: Macro Environment & Implications to IndusInd

    Macro Environment & Implications to IndusInd Presentation at Morgan Stanley Virtual Investor Trip Sep 22,12020

  3. Slide 3: Current Macro Environment

    Current Macro Environment Indusind Bank

  4. Slide 4: One of the Most Challenging Operating Environment

    One of the Most Challenging Operating Environment  Threat of Covid-19 pandemic spreading wide and deep remains as the country opens up with onset of festive season  The GDP print for Q1 confirmed severe and deep contraction in two main elements of aggregate demand – private consumption and investm

  5. Slide 5: Implications to IBL's Balance Sheet & Profitability

    Implications to IBL’s Balance Sheet & Profitability 4

  6. Slide 6: Deposit Growth – Scaling up with Improving Granularity

    Deposit Growth– Scaling up with Improving Granularity  Factors Lowering Deposit Growth: • Physical acquisitions yet to achieve pre-Covid efficiency • Conservatively letting go bulky deposits • Reduced reliance on Certificates of Deposits and will follow this approach going ahead as well  Factors I

  7. Slide 7: Loan Growth – Taking a Calibrated Approach

    Loan Growth – Taking a Calibrated Approach  Factors Lowering Loan Growth: • Weak overall economic activity with borrowers looking at de-leveraging • Covid-19 needs to be incorporated as a constant risk in underwriting • Re-aligning our own loan book towards granular exposures, reduction in concentr

  8. Slide 8: Net Interest Income Faces Multiple Crosswinds

    Net Interest Income Faces Multiple Crosswinds  Factors Lowering NII Growth: • Cost of Deposits to remain elevated vs. market due to deposit retailisation drive • Improving share of higher rated corporate borrowers impacts yields • Significant excess liquidity in balance sheet with sub-optimal retur

  9. Slide 9: Fee Income Proportion to Total Revenues to Come Off in the Near Term

    Fee Income Proportion to Total Revenues to Come Off in the Near Term  Factors Lowering Fee Growth: • Overall weak economic activity to result in lower client fees • Corporate fees to move towards higher proportion of flow businesses • Evolving regulatory frameworks reducing fee pools  Factors Impr

  10. Slide 10: Variability & Strong Control to keep Operating Expenses Under Check

    Variability & Strong Control to keep Operating Expenses Under Check  Factors Increasing Opex Growth: • Continued investment in distribution & technology • Scaling up new businesses such as Affluent, NRI, Merchant Acquisition etc. • Marketing push  Factors Improving Opex Growth: • Variability of co

  11. Slide 11: Aim to Protect PPOP Margin – A Core Strength of the Bank

    Aim to Protect PPOP Margin – A Core Strength of the Bank 10

  12. Slide 12: Provisions to Remain Elevated to Strengthen the Balance Sheet

    Provisions to Remain Elevated to Strengthen the Balance Sheet  Factors Increasing Provisions Growth: • Uncertainty around Covid-19 implications • Second order impact from lower economic activity may play-out • Conservative provisioning approach on GNPAs as well as likely restructured book  Factors

  13. Slide 13: Conclusion

    Conclusion  Near Term Focus on Strengthening the Balance Sheet  Strong Capital Adequacy and Provision Coverage  Maintaining Excess Liquidity  Deposit Growth Ahead of Loan Growth  De-risking Loan Book  Businesses to Pivot Back to Growth once the Operating Environment Improves  Focus on Areas o

  14. Slide 14: Thank You

    of? Thank You 13 Indusind Bank

  15. Slide 15: 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

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