Indusind Bank Ltd. · NSE:INDUSINDBK
Indusind Bank — Q1 FY23 Earnings Presentation
49 slides from Indusind Bank's earnings presentation, Jul 20, 2022
Slide 1: Stock exchange disclosure cover letter
lnduslnd Bank July 20, 2022 National Stock Exchange of India Ltd. (Symbol: INDUSINDBK) BSE Ltd. (Scrip Code: 532187) Luxembourg Stock Exchange Madam I Dear Sir, Sub: Disclosure under SEBJ (Listing Obligations and Disclosure Requirements) Regulations. 2015 In compliance with Regulation 30 of SEBI (Li
Slide 2: Investor Presentation Q1-FY23 | June 2022
Investor Presentation Q1-FY23 | June 2022 lnduslnd Bank
Slide 3: IndusInd Bank at a Glance
IndusInd Bank at a Glance 5th Largest Private Bank ₹2,47,960 crs ₹ 3,02,719 crs 32 mn 5,939 with Disproportionately Loans Deposits Customers Branches/Outlets Large Distribution Network Diversified Across Products and Geographies Across Segments PAN India Network Universal Banking Approach 54:46 Loan
Slide 4: Key Financial Highlights for Q1 FY23
Key Financial Highlights for Q1 FY23 Loans Deposits CASA Term Deposits Total Assets Balance ₹2,47,960 crs ₹3,02,719 crs ₹1,30,508 crs ₹1,72,211 crs ₹4,10,100 crs Sheet 18% YoY 4% QoQ 13% YoY 3% QoQ 16% YoY 4% QoQ 11% YoY 2% QoQ 10% YoY 2% QoQ Net Interest Income Total Fee Income Revenue Operating Pr
Slide 5: Balance Sheet
Balance Sheet ₹In crs Q1 FY23 Q1 FY22 Y-o-Y (%) Q4 FY22 Q-o-Q (%) Capital & Liabilities Capital 775 774 - 775 - - Reserves and Surplus 48,932 43,774 12% 47,252 4% Deposits 3,02,719 2,67,233 13% 2,93,349 3% Borrowings 41,812 49,294 (15%) 47,323 (12%) Other Liabilities and Provisions 15,
Slide 6: Profit and Loss Account – Q1 FY23
Profit and Loss Account – Q1 FY23 ₹In crs Q1 FY23 Q1 FY22 Y-o-Y (%) Q4FY22 Q-o-Q (%) Net Interest Income 4,125 3,564 16% ▲ 3,985 4% ▲ Other Income 1,932 1,723 12% ▲ 1,903 1% ▲ Total Income 6,057 5,287 15% ▲ 5,888 3% ▲ Operating Expenses 2,626 2,166 21% ▲ 2,508 5% ▲ Operating Profit 3,431 3,121 10% ▲
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) 210,727 220,808 228,583 239.052 247,960 (₹crs) 44% 45% 46% 46% 46% Consumer Banking Jun-22 % Vehicle Finance 64,583 26% 56% 55% 54% 54% 54% Commercial Vehicle 24,415 9% Utility Vehicle 6,797 3% Small CV 3,184 1% J
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 WheelersSmall CV 7% 5% Market Leader Utility Vehicle 35+ Years of Vintage Focus on Business CV in Most Products 10% 38% Across Credit Cyc
Slide 11: Microfinance: Bridging the Financial Inclusion Gap
Microfinance: Bridging the Financial Inclusion Gap Micro Finance Loan Book (₹crs) 30,612 29,403 28,115 27,443 25,944 2nd Largest 10mn 1.33 Lacs Villages Micro Finance Women Customers covered across 21 Lender States Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Average Ticket Size (₹) 27,852 29,738 27,211
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 * 1,14,429 ■ BB+ & Below ■ BBB-, BBB, BBB+ ■ A-, A, A+ ■ AA-, AA, AA+ ■ AAA 1,09,463 1,05,481 99,079 92,407 19% 23% 23% 25% 15% 15% 21% 24% 29% 27% 27% 27% 31% 26% 24% 22% 6% 6% 5% 4% St
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) 11,892 12,203 8,761 9,009 11,223 11,314 8,788 8,664 8,817 11,031 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Credit Cards (₹crs) Business Loan, Personal Loan, Aff
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; Building Stable Low-Cost Deposit Book
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 (%) 41% 41% 41% 3,02,719 13% YoY 40% 17% YoY 2,84,484 2,93,349 40% 2,75,288 2,67,233 3% QoQ 3% QoQ 1,05,737 1,1
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 % 43% 43% 42% 42% 12% 12% 12% 12% 12% 42% 1,25,333 1,30,508 36,507 1,19,894 35,265 1,12,349 1,15,863 32,421 32,587 33,279 9% YoY 16% YoY 4% QoQ 3% QoQ Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1
Slide 17: Borrowings Constituted by Long Term Sources
Borrowings Constituted by Long Term Sources Borrowings (₹crs) Borrowings Mix (%) Infrastructure Money Market Bonds Borrowings (₹Cr) % of Total Liabilities 0% 4% Long-Term FCY Borrowings 33% 14% 13% 12% 12% 49,294 10% 47,323 46,295 45,669 41,812 Tier 2 Bonds 7% Refinance from Development AT1 Bonds In
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) One of the largest LC - Usance treasuries in Indian banks Notional Amount Risk Weighted Assets 20% with best-in-class risk 9,71,791 Financial management systems LC - Sight Guarantees 11% 34% 0.5%# Robust
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 11.39% 11.29% ■ Cost of Deposits ■ Cost of Funds 8.35% 8.28% 4.79% 4.60% 4.14% 4.08% •Yield on Assets/Cost of funds are based on Total Assets/Liabilities Q1FY23 Q4FY22 Segment-wise Yield: Q1FY23 Q4FY22 Outstanding (₹crs) Yield (%) Outstandi
Slide 22: Diversified and Granular Fee and Other Income Streams
Diversified and Granular Fee and Other Income Streams ₹In crs Q1FY23 Q1FY22 Y-o-Y(%) Q4FY22 Q-o-Q(%) Trade and Remittances 189 170 11% 199 (5%) Foreign Exchange Income 220 192 15% 234 (6%) Distribution Fees (Third Party Products) 507 311 63% 470 8% General Banking Fees 334 188 78% 209
Slide 23: Operating Profit Margins Amongst the Highest in Industry
Operating Profit Margins Amongst the Highest in Industry Net Interest Margin (%) Total Fee to Asset Ratio (%) 1.9% 1.9% 1.9% 1.9% 1.8% 4.07% 4.10% 4.20% 4.21% 4.06% Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Operating Profit Margin (%) Cost to Income Ratio (%) 41
Slide 24: Key Financial Indicators
Key Financial Indicators Return on Assets (%) Return on Equity (%) 1.73% 13.44% 1.35% 1.51% 10.88% 11.92% 1.29% 10.28% 1.17% 9.30% Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Earning Per Share – Annualized (₹) Net Worth (₹ crs) 42,751 43,833 45,817 47,265 84.2 42,
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 Q1FY23 Q4FY22 ₹In crs Corporate Consumer Total Corporate Consumer Total Opening Balance 2,530 2,987 5,517 2264 3,515 5,779 Fresh Additions 603 1,647 2,250 346 1,742 2,088 -from Standard 272 1,058 1,330 187 1,511 1,698 -from Restructured 331 590 921 159 231 390 Deduc
Slide 27: NPA Composition – Consumer Banking
NPA Composition – Consumer Banking (₹crs) Q1 FY23 CV Utility CE Small CV TW Cars Tractor BBG/LAP HL/PL/Others Cards MFI Total Gross NPA 486 39 145 69 353 68 146 752 208 149 1,024 3,439 Gross NPA % 1.98% 0.58% 1.64% 2.14% 7.89% 0.77% 1.76% 3.48% 1.73% 2.25% 3.38% 2.54% Q4 FY22 CV Utility CE Small CV
Slide 28: Loan Related Provisions held as on June 30, 2022
Loan Related Provisions held as on June 30, 2022 Specific provision of ₹ 4,202 crs (towards PCR) Floating provisions of ₹ 70 crs other than related to COVID-19 (towards PCR) Standard contingent provisions of ₹ 3,003 crs surplus outside PCR Standard asset provision of ₹ 1,095 crs other than r
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 (%) 15.59% 15.42% 15.96% 16.06% Capital Adequacy 15.13% ₹In crs 30 Jun 22 31 Mar 22 Credit Risk, CVA and UFCE 2,56,767 2,47,567 Market Risk 8,325 9,538 Operational Risk 38,026 38,026 Total Risk Weighted Assets 3,03,118 2,95,131 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 C
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/ 8.20% Others Promoters MFs / Banks/ CRISIL AA for Additional Tier 1 Bonds program 3.61% 15.16% Insurance Co Individ
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 Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, Particulars 2021 2021 2021 2022 2022 ~32 mn ~1,33,000 Branches/Banking Outlets 2,015 2,015 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: Digital Sourcing % continues to grow and digital unassisted business models gaining momentum
Digital Sourcing % continues to grow and digital unassisted* business models gaining momentum 96% of deposits (savings and fixed deposit) 54% of personal 70% of current opened digitally loans accounts 30% of savings accounts --ca opened digitally opened digitally digitally unassisted* Scaling up dig
Slide 36: Focusing on building sustainable, profitable digital unassisted business models
Focusing on building sustainable, profitable digital unassisted (Customer Do It Yourself led) business models Digitally Acquired Savings IndusEasycredit – Digitally IndusEasycredit – Digitally Accounts Acquired Personal Loans Acquired Credit Cards Indexed DIY Volume – Savings Account 214 Indexed DIY
Slide 37: Driving digital client engagement and digital transaction intensity
Driving digital client engagement and digital transaction intensity IBL Mobile+UPI transaction volumes increased ~2X Indexed mobile transaction volumes 220 208 200 70% 180 160 of Bank’s service requests* processed 140 straight through digitally via channels as self 120 100 service 100 80 May'21 May'
Slide 38: Whatsapp Banking: ~5.1 mn clients enjoy 50+ services
Whatsapp Banking: ~5.1 mn clients enjoy the list of 50+ services now available on the channel WhatsApp Banking: Offer 50+ services for clients across Registered Base of 5.1 Mn - up 82% YoY million segments 6.0 5.0 FD/RD Chequebook Block/ 82% Talk to Agent Request CC Statement Summary Unblock CC 4.0
Slide 39: Scaling up Credit Card and Personal Loan sourcing on the back of IndusEasyCredit
Scaling up Credit Card and Personal Loan sourcing on the back of IndusEasyCredit Easycredit Platform Impact on Credit Card Business Indus easy CREDIT TAT to Decision Offline Channel Partner - Indexed Volumes Credit Card Volumes growth post platform adoption Instant Powered by IndiaStack - Digital
Slide 40: Indus Merchant Solutions: Garnered substantial interest from new to bank customers
Indus Merchant Solutions: Garnered substantial interest from new to bank customers; current focus on strengthening the offering and boosting growth ~ Dinital =.J •;, CXs A.ward, N 4.4 app rating Android Instant Merchant BFIL users Settlement Loans Holistic Merchant Stack with 40+ services Coming int
Slide 41: Collaborating with ecosystem players to generate business digitally (BaaS models)
Collaborating with ecosystem players to generate business digitally (BaaS* models) Retail Client Base and Balance Sheet acquired via partners scaled up steadily scaling Open / Steadily Scaling up the Open / API Banking led model with partners API Banking led models IndusInd API Stack (400+ APIs) Ind
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 Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 43: Sustainability: Core to Bank's Strategy
Sustainability: Core to Bank’s PC 5 Strategy Outlined a comprehensive ESG Strategy in 2022 integrating ESG with Business, Operations, Risk & Products Business Operations Enhance Exposure to ESG +ve sectors Governance & Polices Sustainable Finance Sector Targets Greening IBL branches Monito
Slide 44: What Really Matters
Awarded Best Bank ESG in India - 2022 by Asia Money 2022 Integration of ESG Risk with Credit Risk Highlights Launch of ESG Theme Products Green Fixed Deposit Risk Sharing with Multilateral Agencies We are winning at NR Home Coming with Akshay Patra Foundation GHG Intensity down from 3.8
Slide 45: 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 46: Board of Directors with Varied Expertise
Board of Directors with Varied Expertise Name Nature of Directorship Special Knowledge /Expertise Prior Experience Non-Executive, Non- Banking, Finance, Human Previously, CMD of Union Bank of India, Executive Director of Allahabad Bank, Mr. Arun Tiwari Independent, Part-time Resource, Risk Managemen
Slide 47: 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 30+ America and ABN AMRO Mr. Arun Khurana Deputy CEO 28+ Regional Hea
Slide 48: Accolades
Accolades DIGITAL CX AWARD ASIAMONEY BEST BANK AWARD 2022 IndusInd Bank was bestowed with highly IndusInd Bank was adjudged as the BEST Acclaimed award for Outstanding Digital CX – BANK FOR ESG – INDIA at the Payments & Collection Services” at the Digital ASIAMONEY BEST BANK AWARD 2022 CX Awards 202
Slide 49: 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