Indusind Bank Ltd. · NSE:INDUSINDBK
Indusind Bank — Q3 FY2019-20 Earnings Presentation
37 slides from Indusind Bank's earnings presentation, Jan 14, 2020
Slide 1: Exchange filing cover letter
Induslnd Bank January 14, 2020 The Asst. Vice President The Deputy General Manager Listing Department Corporate Relationship Dept. National Stock Exchange of India Ltd. BSE Ltd. Exchange Plaza, 5'h Floor l" Floor, New Trading Ring Rotunda Plot No. C/l, G Block Building, P. J. Towers Bandra-Kurla Com
Slide 2: Investor Presentation Q3 2019-20
5$ Investor Presentation Q3-2Or9-2O fanuary 14,2O2O
Slide 3: Q3 FY20 marked by robust growth in headline numbers
> Q3 FY 20 marked by robust growth in headline numbers D Revenue growth of 29o/o; NII up by 34o/o; Fee up by 22o/o ) PPOPatRs.2'758 crs,grewby3O0/oYoY;PPOP/Assets of3.&3o/oamongsttheindustryhighest D Consolidated PAT at Rs. 1,309 crs up by 33% D Q3 PAT without accelerated provisions at Rs. 1,497 crs
Slide 4: rEl
I ,t "-tor. I [+oml I Exceed Balance I t-shesg-croffitr J | ,r.nu" I @ [ ,,ooo I @ Inouute to >zomr{ rEl ffi/ r includes 123 banking outlets Induslnd Bank
Slide 5: Key ratios: NIM, cost/income, net NPA
Net Interest Margin (NlM) 14.450/0 4.lOo/o 17.260/0 Z.OSVI t.gao/o 3.83% 1S-44o/o 15.62Vo LaZo/o 3.59o/o r.620/o O.560/o s.460/0 Q3FYle Q4FY19 QIFYzO Q}F!'IO Qirvzo Q3FY19 Q4FY19 QlrY2o Q2FY20 Q3FY20 Q3FY19 Q4FY19 Q1FY20 QzFYzO Q3FY20 Cost / lncome Net NPA Revenue / Employee (Rs Lakhs) 1-27o/o l.tzo
Slide 6: Credit ratings
CRISILAA + for Infra Bonds program CRISIL AA for Additional Tier I Bonds program CRISIL A1+ for certificate of deposit program IND AA+ for Senior bonds program by India Ratings and Research IND AA for Additional Tier I Bonds program by India Ratings and Research IND 41+ for Short Term Debt Instrumen
Slide 7: Consolidated Financial Performance
Consolidated Financial Performance --{( ) :1,(J/ T$ x&d tAV Z\\Y " lndlrslnd Bank
Slide 8: Y-o-Y and Q-o-Q growth
Y-o-Y Growth Q-o-Q Growt} Rs. 3,074crs 34o/o 60/o Rs. 1,790 crs 22o/o 4o/o Rs,4,864crs 29o/o So/o Rs. 2,758 crs 3Oo/o 5o/o Rs. 1,309 crs 33o/o (7o/o) tr# Induslnd Bank
Slide 9: EEEEE EEEEE BHHHB
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Slide 10: Capital & Liabilities / Assets
Capital & Liabillties Capital 693 602 t|o/o 693 A Reserves and Surplus 32,789 25,798 27o/o A 32,t77 7o/o Share Warrant Subscription money 674 674 Deposits 2,L6,773 7,75,701 23o/o A 2,07,r93 5o/o ^. Borrowings 46,8t3 44,536 5o/o 44,558 5o/o Other Liabilities and Provisions ^. ^. r0,267 9,562 7o/o 9,6
Slide 11: Profit and loss: quarter
Net Interest Income 3,074 2,288 34o/o ^l 2,909 60/o A Other Income L,790 7,469 22o/o 1,727 4o/o Total Income 4,864 3,757 29o/o +,636 5o/o A Operating Expenses 2,L06 1,640 29o/o 2,073 5o/o Operating Profit 2,754 2,117 30o/o 2,623 5o/o Provisions & Contingencies 1,044 607 72o/o 737 42o/o Credit Cost 5
Slide 12: Profit and loss: nine months
Net Interest Income 8,828 6,6t4 33o/o Other Income 5,180 4,OBB 27o/o A Total Income 14,008 lo,702 3Lo/o Operating Expenses 6,036 4,68L 29o/o Operating Profit 7,972 6,O21 32o/o Provisions & Contingencies 2,272 L,547 43o/o Credit Cost L,243 7t5 7 4o/o Others 969 832 760/o Profitbefore Tax s,760 4,474
Slide 13: Key ratios
Return on Assets 7.82o/o t.620/o L.980/o PPOP / Average Assets 3.83o/o 3.49o/o 3.700/o Return on Equity 15.620/o L5.44o/o 17.260/o Cost / Income Ratio 43.37o/o 43.650/o 43.42o/o Net Interest Margin 4.15o/o 3.83o/o 4.70o/o Net NPA 1,.050/o 0.59o/o 7.12o/o EPS (annualized, Rs. per share) 75.56 65.48 8
Slide 14: Loan book
Loan Book crs) 2,07,413 146394 193,520 144,954 46% 4s%' 610k 60% ll ll @@I (Rs crs) ],{ FY18 F{ FY19 ,un-19 I II sep-19 I Vehicle Loans Comm. Vehicle Loans 58,071 280/o 24,977 12o/o FYlS and FY19 arc not | | Consumer Flnance Division Corporate & Commercial Banklng UtilityVehicle Loans 4,264 20/o r.c
Slide 15: Sector exposure and SMA
Sector o/o SMA2 (Rs. crs) r Lease Rental 4.360/o 45 ! Real Estate 3.640/o z3 I Gems and fewellery 3.34o/o SMA 1 Outstanding: r NBFCs (other than HFCs ) 3.21o/o 0.647o of loans I Power Generation 3.060/o SMA 2 Outstanding: I Steel 0.53olo of loans 2.52o/o 13 I Roads/other infra proiects excluding ove
Slide 16: Loans to NBFCs at 3.2% of loan book
Loans to NBFCs (other than HFCs and MFIs) at3.2o/o of the total loan book (3.To/oprevious quarter) Portfolio spread across entities with strong sponsors typically in niche retail businesses Resilient portfolio performance despite the sector facing a tough operating environment Sponsor Profile NBFC N
Slide 17: Portfolio rating distribution
P E R c Investment Grade Sub Investment Grade E N T o r Unsecured Non Fund Based % F I Secured Non Fund Based % R A I Unsecured Fund Based % T E r Secured Fund Based% D P o R T F o L I o rBl (MA) l82+ rB2 (AA) lB2- (AA-) rB3+ (A+) rB3 (A) rB3- (A-) l84+ fB4 (BBB) tB/- l85+ rB5 (BB) rB5- (BB-) rB5 (B
Slide 18: Vehicle finance portfolio risk distribution
Vehicle Finance Portfolio-wise Risk Distribution - DEC'19 Behavioural Score (B- score) measures post disbursement credit 6(l('6 quality using long range historical data. 500'6 . CAR-UTltlTY B-score assesses every borrower risk using 40(,'( -- W IS: t,6 Current and Historical DPD, LTV, Geography, ! 3
Slide 19: Three stressed groups
Three stressed groups, one each in Media / Diversified / Housing Finance sectors Bank's net funded and non-funded exposure to these groups is O.47o/o of the loan book net of provisions held as under: o/o of Loans Q4FY19 Q1FYz0 Q2FYz0 Q3FYz0 Media Group 0.4o/o 0.4o/o 0.3o/o g.27oyo$l Diversified Grou
Slide 20: Building CASA traction
Buildins CASA traction CASA Uptick r Expanding branch network 43.ro/o 43.1o/o a Focus on target market segments 47.5o/o 42.4o/o ) Government business 44,070 86,539 85,838 91,865 > Capital market flows 73,375 76,5+9 D Key Non Resident markets ) Launched branded Wealth offering "Pioneer" > Self employ
Slide 21: Other income
(Rs crs) Core Fee 1,506 r,266 79o/o 1,,468 3o/o Securities/MM/FX Trading/Others 284 203 40o/o 259 I0o/o A Total 1,790 1,469 22o/o 1,727 4o/o A -4 t\ Fi'tV l](d- [epz so Induslnd Bank
Slide 22: Core fee income
Trade and Remittances 185 155 19o/o r82 2o/o Foreign Exchange Income 241 275 (72Vo) 277 (73o/o) V Distribution Fees (lnsurance, 347 268 29o/o 322 8o/o A Ml, Cards) General Banking Fees B5 97 (7o/o) V 90 (60/o) v Loan Fees 3BB 261 49o/o 360 Bo/o Investment Banking 209 201 4o/o ^l 20r 4o/o PSLC JI _i-
Slide 23: Fee income mix
Corporate Banking Trading and Other lncome (32%) (L7Vo) Trade and Rcmittances , 29o Tred. add Rcmlttances ,8% lnvestment Banking - For€lgn Proiect Finance / Advisory, Exchange,896 1o/o lnvestment Banking - Loan SyndlcitloL SctG Investment Banking - Structured Financc2Yo LoaD Processing - Small Corp,
Slide 24: Yield and cost of funds
11,970/o 12,O4o/o Yield on Assets ll Yield on Advances I Cost of Deposits I Cost of Funds Q3FY20 Q2FY2O .Ytetd on Ast ts/C6t ott0dt @ b6.d on Tocol Ass.tt/Llab lrles Segrnent-wlse Yield Corporate Bank 95,253 B.B7o/o 89,66r 9.02o/o Consumer Finance r,72,t60 14.67o/o t,07,452 14.650/o Total 2,O7,413 l
Slide 25: Gross credit costs
Corporate Bank 744 258 401 468 2,134 67 101 243 450 Consumer Finance 195 244 303 433 237 262 293 793 Grcss Credit Costs 339 502 704 901 2,719 304 363 s76* L,213 Gross Credit Costs (Basls Polnts on Advonces) 49 62 62 146 t6 18 28'l 60 Net Credit Cost 323 464 672 856 2,649 293 348 575* 1,216 Net Credi
Slide 26: NPA movement
(Rs Crs) Opening Balance 2,932 7,438 +,370 2,903 7,297 4,200 Additions 1,237|t) 708 1,945 , 479 623 t,Loz Deductions 7,\Lge) 618 L,737 +so 482 932 Gross NPA 3,050 r,528 4,578't 2,932 1,438 4,370* Net NPA 2,173 2,203 %o ofGross NPA 2,18o/o 2,19o/o o/o of Net NPA l.OSo/o 1,12o/o Provision Coverage Rat
Slide 27: Gross NPA by segment
(Rs crs) Gross NPA 4t5 47 82 60 155 52 69 217 87 118 226 l,S2A Gross NPA 7o 1.650/o 7.08o/o I.O0o/o 1.660/o 2.88o/o 0.7 lo/a 1.560/o t.030/o 7.72o/o 2.57o/o LOSo/o !,35o/o Gross NPA 36r 48 79 59 155 52 65 258 81 t02 L78 1,434 Gross NPA %o 7.43o/o 7.20Vo 0.97o/o 1.72o/o 3.I6Vo 0.73o/o L570/o 7.270/o
Slide 28: Capital adequacy
(Rs Crs) Credit Risk, CVA and UFCE 2,74,r05 2,1,4,105 2,04,955 2,04,955 Market Risk 8,76L 8,761 9,282 9,282 Operational Risk 22,986 22,986 22,986 22,986 Total Risk Weighted Assets 2,45,852 2,45,852 2,37,223 2,37,223 Core EquityTier 1 Capital Funds 29,673 33,389 30,363 32,9t2 Additional Tier 1. Capit
Slide 29: Strengthening distribution infrastructure
Strengthening Distribution Inft'astructure IBL Branches/Banking 1,558 1,851. Outlets BFll, Branches 2,163 Vehicle Finance 845 859 Marketing Oudets Total Branches/Outlets 2,427 2,510 4,873 ATMs 2,453 2,545 2,7 2r *includes 208 specialized branchesand 123 Banking outlets Dubai Doha . rlbu Dhabi . bo n
Slide 30: Shareholding pattern
December 3L,20!9 (Basis Paid Up Capital) n \ 'lncludes FPls #14.68%wlthdilutedcapltallncludlngwarrants/EsoP __J")-</ [a?M 2s Induslnd Bank
Slide 31: Strategic priorities
nprl r,lerger I tiabitities surge I r"" c.o*tt Retail Rsset crowtn I I Merger consummation Pioneer - Banking for well-off Distribution fees for wealth Continued market share gains in products vehicle finance Scaling up liabilities & RDSP Retailisation via Household (Kirana Stores) pilot acquisition
Slide 32: Accolades
Accolades -4 t\ 31 F*$9' Induslnd Bank
Slide 33: CSR Impact Awards 2019
Induslnd Bank was honored at 6th CSR ImpactAwards 2019 in the Special Categories Project -( t\ I \<.,/ DA&'QY I c\ J-(t\d 82 Indoslnd Bank
Slide 34: CSR Times Awards 2019
Induslnd Bank was awarded as the Best Corporate in the EnvironmenL Climate & Forest Category at the CSRTimesAwards 2019 -4)<(Il t I l) o<c --'.----.'\ IYZ r"alz /.\\R 3it Induslnd Bank
Slide 35: Sports initiatives recognition
Induslnd Bank's sports initiatives ra -a'cGal..F Eb--5ait-n 'i under the National Priority Areas have received an 'Honorable mention'by the Ministry of filhar. .r-au-. Corporate Affairs (MCA), Govt. of India -( t\ ffi-$/ i.|4 Induslnd Bank
Slide 36: Thank You
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