IndusInd Bank Ltd. · NSE:INDUSINDBK
IndusInd Bank — Q4 FY2019 Earnings Presentation
40 slides from IndusInd Bank's earnings presentation, May 22, 2019
Slide 1: Investor Presentation Q4-2018-19
Investor Presentation Q4-2018-19 May 22, 2019
Slide 2: Q4 – FY19 Performance Highlights
Underlying growth drivers remained intact during the quarter BUT…. Q4 – FY19 Performance Highlights Q4 results impacted adversely due to one-off accelerated de-recognition of interest and provisioning of Rs. 1,273 crs in respect of exposure to Group in the infrastructure sector Q4 PAT stands a
Slide 3: Planning Cycle (2017-2020) - Plan vs Outcome
Planning Cycle 4 (2017-2020) - Plan vs Outcome FY19 Outcome Loan Growth 25% - 30% 29% CASA Ratio 40% 43% Revenue Exceed Balance Resulting in 18%/ Growth Sheet Growth 20%* 0.69%/ RoRWA > 2.4% 2.28%* Branch 2,000 1,665** Network Customer Base Double to >20mn On track *Excluding derecognition of intere
Slide 4: Ratings
Ratings Domestic Rating: CRISIL AA + 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
Slide 5: Financial Performance
Financial Performance : IndusiInd Bank
Slide 6: Steady Headline Numbers for Q4-FY19
Steady Headline Numbers for Q4-FY19 * excludes impact of a large group NPA in infra sector Y-o-Y Growth Q-o-Q Growth Net Interest Rs. 2,232 crs 11% (2%) Income * Rs. 2,385 crs * 19% * 4% Rs. 1,559 crs 29% 6% Total Fee Income * Rs. 1,559 crs * 29% * 6% Rs. 3,791 crs 18% 1% Revenue * Rs 3,944 crs * 23
Slide 7: Steady Headline Numbers for FY 2018-19
Steady Headline Numbers for FY 2018-19 * excludes impact of a large group NPA in infra sector Y-o-Y Growth Net Interest Rs. 8,846 crs 18% Income * Rs. 8,999 crs * 20% Rs. 5,647 crs 19% Total Fee Income * Rs. 5,647 crs * 19% Rs. 14,493 crs 18% Revenue * Rs. 14,646 crs * 20% Rs. 8,088 crs 22% Operatin
Slide 8: Top line momentum
Top line momentum Y-o-Y Growth Q-o-Q Growth Advances Rs. 1,86,394 crs 29% 8% Corporate Rs. 1,00,162 crs 20% 3% Advances excl MFI Microfinance Rs. 13,548 crs 227% 80% Advances Consumer Finance Rs. 72,684 crs 27% 7% Advances Deposits Rs. 1,94,868 crs 29% 11% CASA Rs. 84,070 crs 26% 10% SA Rs. 54,486 c
Slide 9: Balance Sheet
Balance Sheet (Rs Crs) * Q4FY19 Q4FY18 Y-o-Y (%) Q3FY19 Q-o-Q (%) Capital & Liabilities Capital 603 600 0% 602 0% Reserves and Surplus 26,083 23,242 12% 25,798 1% Deposits 1,94,868 1,51,639 29% 1,75,701 11% Borrowings 47,321 38,289 24% 44,536 6% Other Liabilities and Provisions 8,944
Slide 10: Profit and Loss Account – Q4FY19
Profit and Loss Account – Q4FY19 (Rs Crs) Q4FY19 Q4FY18 Y-o-Y (%) Q3FY19 Q-o-Q (%) Net Interest Income 2,232 2,008 11% 2,288 (2%) Other Income 1,559 1,208 29% 1,469 6% Total Income 3,791 3,216 18% 3,757 1% Operating Expenses 1,724 1,447 19% 1,640 5% Operating Profit 2,068 1,769
Slide 11: Profit and Loss Account – Q4FY19 – Excluding Impact of a Group in Infrastructure Sector
Profit and Loss Account – Q4FY19 – Excluding Impact of a Group in Infrastructure Sector Q4FY19 Q4FY18 Y-o-Y (%) Q3FY19 Q-o-Q (%) Net Interest Income (Rs Crs) 2,385 2,008 19% 2,288 4% Total Income(Rs Crs) 3,944 3,216 23% 3,757 5% Operating Profit(Rs Crs) 2,221 1,769 26% 2,117 5% Profi
Slide 12: Profit and Loss Account – FY19
Profit and Loss Account – FY 19 (Rs Crs) FY 19 Y-o-Y (%) (Excl impact (Excl impact of FY 19 FY18 Y-o-Y (%) of a group in a group in infra sector) infra sector) Net Interest Income 8,846 8,999 7,498 18% 20% Other Income 5,647 5,647 4,750 19% 19% Total Income 14,493 14,646 12,248 18% 20% O
Slide 13: Key Financial Indicators
Key Financial Indicators Q3FY19 Q4FY19 FY19 (Excl impact (Excl impact (Excl impact of a FY18 Q4FY18 Q3FY19 Q4FY19 FY19 of a group in of a group in group in infra infra sector) infra sector) sector) Return on Assets 1.90% 1.86% 1.62% 1.90% 0.56% 1.84% 1.39% 1.89% ROE (On average equity) 16.48% 16.56%
Slide 14: Well Diversified Loan Book
Well Diversified Loan Book Loan Book (Rs crs) 1,86,394 1,86,394 1,73,169 1,44,954 1,13,081 61% 55% 61% 88,419 60% 68,788 60% 59% 59% 45% 40% 39% 39% 41% 40% 41% FY15 FY16 FY17 FY18 Dec-18 Mar-19 Mar-19 (BBG forming part Consumer Finance Division Corporate & Commercial Banking of Consumer) (Rs crs) (
Slide 15: Market rumours / comments on Exposure to Potentially Stressed Groups
Market rumours / comments on Exposure to Potentially Stressed Groups Three groups, one each in Media / Diversified / Housing Finance sectors speculated as being stressed Bank’s funded and non-funded exposure to these groups is 1.9% of the loan book Consolidated security cover of 140% for the e
Slide 16: Diversified Corporate Loan Book
Diversified Corporate Loan Book Sector % SMA2 (Rs cr) Microfinance 7.27% 0 Gems and Jewellery 3.94% 5 Real Estate 3.90% 0 Power Generation 3.39% 0 NBFCs (other than HFCs ) 3.27% 0 Services 2,68% 7 SMA 1 Outstanding: Lease Rental 2.51% 0 0.32% of loans Steel 2.48% 0 SMA 2 Outstanding: Roads/other inf
Slide 17: Well Rated Corporate Portfolio
Well Rated Corporate Portfolio 24% 22% P E R 20% Investment Grade Sub Investment Grade C E 18% N T 16% O Unsecured Non Fund Based % 14% F Secured Non Fund Based % R 12% Unsecured Fund Based % A T 10% Secured Fund Based % E D 8% P O 6% R T 4% F O 2% L I 0% O IB1 IB2+ IB2 IB2- IB3+ IB3 IB3- IB4+ IB4 I
Slide 18: Behavioural Scoring affirms quality of Vehicle Financing Portfolio
Behavioural Scoring affirms quality of Vehicle Financing Portfolio • Behavioural Score (B-score) measures post disbursement credit quality using long range historical data. • B-score assesses every borrower risk using Current and Historical DPD, LTV, Geography, Loan tenor, Customer type, etc. • B-sc
Slide 19: Improving CASA profile
Improving CASA profile Building CASA traction CASA Uptick Expanding branch network 90,000 42.9% 44.0% 43.4% 43.6% 43.6% 43.1% 50% 80,000 44% Focus on target market segments 70,000 38% 60,000 84,070 Government business 73,375 76,549 50,000 68,980 33% 62,616 66,729 Capital market flows 40,000
Slide 20: Other Income
Other Income (Rs Crs) Q4FY19 Q4FY18 Y-o-Y (%) Q3FY19 Q-o-Q (%) Core Fee 1,419 1,113 27% 1,266 12% Securities/MM/FX 140 95 48% 203 (31%) Trading/Others Total 1,559 1,208 29% 1,469 6% 20
Slide 21: Diverse Revenues from Core Fee Income
Diverse Revenues from Core Fee Income (Rs Crs) Q4FY19 Q4FY18 Y-o-Y(%) Q3FY19 Q-o-Q(%) FY19 FY18 Y-o-Y(%) Trade and 189 153 23% 155 22% 636 540 18% Remittances Foreign Exchange 289 197 47% 275 5% 1,015 779 30% Income Distribution Fees 302 273 11% 268 13% 1,128 976 16% (Insurance, MF
Slide 22: Diversified and Granular Fee Streams – FY19
Diversified and Granular Fee Streams – FY19 Corporate Banking Consumer Banking Trading and Other Income (42%) (48%) (10%) Trade and Remittances ,Trade and Remittances , 1% 10% Foreign Exchange, 8% Foreign Exchange, 10% Investment Banking - Project Distribution, 20% Finance / Advisory, 1% Investment
Slide 23: Yield / Cost Movement
Yield / Cost Movement 11.25% 11.52% 9.51% 9.64% Yield on Assets Yield on Advances 6.80% 6.74% 5.92% 5.81% Cost of Deposits Cost of Funds Q4FY19 Q3FY19 •Yield on Assets/Cost of funds are based Corporate on Total Assets/Liabilities Yield 9.06% Segment-wise Yield (excl MFI, BBG and one off) Q4FY19 Q3FY
Slide 24: Credit Cost
Credit Cost (Rs Crs) Q4FY19 FY19 (Excl Infra (Excl Infra FY15 FY16 FY17 FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 FY19 Group Group provision) provision) Corporate Bank 144 258 401 468 80 59 158 1,837 186 2,134 483 Consumer Finance 195 244 303 433 129 141 148 167 167 585 585 Gross Credit Costs 339 502 704 901
Slide 25: Loan Portfolio - Movement in NPA and Restructured Advances
Loan Portfolio - Movement in NPA and Restructured Advances (Rs Crs) Q4FY19 Q3FY19 Corporate Consumer Total Corporate Consumer Total Opening Balance 1,203 765 1,968 1,061 720 1,781 Additions 3,230 458 3,688 458 348 806 Deductions 1,345 364 1,709 316 303 619 3,088 859 3,947* 1,203 765 1,968* Gross NPA
Slide 26: NPA Composition – Consumer Finance
NPA Composition – Consumer Finance (Rs Crs) Com. Const. LAP/HL/P Q4-FY19 Utility Small CV TW Cars Tractor Cards Total Vehicle Equip. L Gross NPA 285 47 54 44 171 52 62 62 82 859 Gross NPA % 1.16% 1.29% 0.71% 1.38% 3.75% 0.79% 0.42% 1.76% 1.87% 1.18% Com. Const. LAP/HL/P Q3-FY19 Utility Small CV TW C
Slide 27: CRAR
CRAR (Rs Crs) 31 Mar 19 31 Dec 18 Basel – III Basel – III Credit Risk, CVA and UFCE 1,82,948 1,75,042 Market Risk 8,615 7,973 Operational Risk 22,986 18,840 Total Risk Weighted Assets 2,14,549 2,01,855 Core Equity Tier 1 Capital Funds 25,905 25,809 Additional Tier 1 Capital Funds 3,490 2,000 Tier 2
Slide 28: Distribution Expansion to Drive Growth
Distribution Expansion to Drive Growth Strengthening Distribution Infrastructure June 30, Sept. 30, Dec. 31, Mar. 31, Particulars 2018 2018 2018 2019 Branches/Banking 1,410 1,466 1,558 1,665* Outlets ATMs 2,285 2,372 2,453 2,545 *includes 208 specialized branches and 65 Banking outlets • Branch/Repr
Slide 29: Shareholding Pattern
Shareholding Pattern March 31, 2019 MFs / Banks/ Insurance Co Promoters 8.70% 14.99% Individuals 6.59% Private Corporates 8.24% NRIs/ Director/ Others 2.96% GDR issue 10.73% FIIs 47.78% *includes FPIs 29
Slide 30: Initiatives for FY20
Initiatives for FY20 BFIL Merger Liabilities Surge Fee Growth Retail Asset Growth • Merger consummation, subject to • Pioneer – Banking for well-off • Distribution fees for wealth • Continued market share gains in the NCLT approval products vehicle finance • Retailisation via Household • Scaling up
Slide 31: Digital Product and Channel Progress within Consumer Banking
Digital Product and Channel Progress within Consumer Banking On average, > 50% of major Retail products are Digital Digital transaction volume up from 73% to 80% YoY Q4’ FY 18 Q4’ FY 19 ATM, 11.8% Branch, Deposit Deposit 30% 73% 3.1% Cheque, 5.2% Personal Personal Loans Loans Digital, 33% 47% 79.9%
Slide 32: Industry / Media Recognition / Awards
Industry / Media Recognition / Awards 32
Slide 33: Industry / Media Recognition / Awards
Industry / Media Recognition / Awards IndusInd Bank is the ET Now ‘Dream Employer of the Year’ at the 8th Edition of the ET Now Dream Companies of Work for Awards Organized by the World HRD Congress In Mumbai 33
Slide 34: Industry / Media Recognition / Awards
Industry / Media Recognition / Awards Mr Romesh Sobti, MD and CEO IndusInd Bank bestowed with the ‘Banker of the Year’ Award at the Financial Express India's Best Banks awards 34
Slide 35: Industry / Media Recognition / Awards
Industry / Media Recognition / Awards Mr Romesh Sobti, MD and CEO IndusInd Bank Honoured with the ‘Banker of the Year’ Award at the Business Standard Annual Awards 35
Slide 36: Accolades
Accolades IndusInd Bank has been awarded with the Global Digital Marketing Award by World Digital Marketing Congress as Best Digital Payment Facilitator IndusInd Bank has been awarded with the Times Now India Digital Awards 2019 for Innovative Money Transfer Product/Service 36
Slide 37: Accolades
Accolades IndusInd Bank has been awarded with the IDC FIIA 2019 Financial Insights Innovation Award as Asia's Leading Partner Bank 37
Slide 38: Accolades
Accolades IndusInd Bank awarded with the Indy’s Award for ‘Empowerment of Women’ for the Legal Literacy Programme and the IndusInd Girl Power Programme ‘Support and Improvement of Education’ for the Enhanced Education Programme and the Mid- day Meals in the Municipal Schools of Bhubaneshwar Programm
Slide 39: Thank You
Thank You
Slide 40: 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