Indusind Bank Ltd. · NSE:INDUSINDBK
Indusind Bank — Investor Day (November 2022)
34 slides from Indusind Bank's investor day presentation, Nov 22, 2022
Slide 1: Investor Day, 22nd November 2022
– Investor Day 22nd November 2022
Slide 2: Presentation-5: Bharat Financial Inclusion Limited
Presentation-5 Bharat Financial Inclusion Limited
Slide 3: Introducing Bharat Financial Inclusion
Introducing Bharat Financial Inclusion • Founded in 1997, over 24 years experience in serving the underserved • Started as an NGO, we evolved into an NBFC and later became a part of IndusInd Bank in 2019 • We provide micro-loans and banking services to bottom-of-the-pyramid segment to help them impr
Slide 4: Evolving Operating Environment and Our Response / Performance
Evolving Operating Environment and Our Response / Performance Macro Developments Our Performance RBI Master Direction on Micro Finance, a unified regulatory Implemented the revised framework in Q1; amongst the framework, introduced on March 14, 2022, effective from April early adopters. 1, 2022. All
Slide 5: We serve customers with high aspiration though low on literacy and moderate on tech quotient
We serve customers with high aspiration though low on literacy and moderate on tech quotient Profile of Our Customers • Rural women entrepreneurs and nano-retailers high on aspiration though low on literacy levels • Largely bottom-of-the-pyramid segment. • We are the only financier for 41% of our cu
Slide 6: Highly phygital customer journey
Highly phygital customer journey Customer base that requires assisted banking services Physical Sourcing Phygital On-Boarding Phygital Servicing Physical sourcing of Assisted on-boarding by feet-on- Customers are serviced customers given the street given the low levels of Phygitally. Approximately 2
Slide 7: Organization chart
Organization chart Chairman BFIL Board Head Legal, IBL Head Compliance, IBL Executive Vice Chairman Head Internal Audit, IBL • Core Banking Operations (BC) • Risk Control Unit Chief Operating Chief Business Chief Distribution Chief People Chief Internal • Solutions Delivery Officer , MFI Officer, BS
Slide 8: Microfinance
Microfinance A 100% BHARAT Financial Inclusion Ltd Prayaas se pragati
Slide 9: High customer connect
High customer connect Village Survey Peer • Exclusive women borrowers Weekly center/ Group • Group selects members and underwrites loan Meetings/ Projection • Progressive loans - Ticket Size increases with customer vintage FUL/ Banking Meeting Lending Product Asset & • Core lending is for income gen
Slide 10: Sustained growth amidst macro shocks
Sustained growth amidst macro shocks BFIL Marketshare (YoY%) BFIL Growth (YoY%) Industry Growth (YoY%) 12% 86% 11.4% 90% 11.1% 10.1% 80% 9.8% 9.8% 9.9% 10% 70% 9.1% 9.3% 70% 73% 8% 60% 50% 50% 6% 42% 38% 40% 34% 4% 27% 28% 30% 26% 24% 22% 19% 17% 20% 2% 6% 10% 10% 0% 0% FY15 FY16 FY17 FY18 FY19 FY20
Slide 11: Bharat Super Shop
Bharat Super Shop E-a BHARST AMD eyes se proc ‘A 100% subsidiary of Indusind Bank Limited
Slide 12: Giving wings to nano retailers – 7.3 Lakh retailers spread across ~400 Cities
Giving wings to nano retailers – 7.3 Lakh retailers spread across ~400 Cities We lend to 52 identified trades Retailers mix Others Opportunity Nano retailers who have no access to institutional credit • Meat Shop, 3% • Electrical Shop, 2% • Electronic Shop, 2% • Footwear Store, 2% Identified trades
Slide 13: Scaling up since FY2020
Scaling up since FY2020 Scale H1 2023 Stable Credit costs • Locations ~400 | Branches 471 • 98.5% On-time Collection efficiency ^ • Retailers ~7.3 lakh | Active Borrowers 4.2 lakh • 1.2% GNPA • Cumulative loans disbursed ~ 10 lakh | Amount disbursed Rs.5,445 Cr. • Managed Covid events with <1.5% cre
Slide 14: Bharat Money Store
Bharat Money Store E-a BHARST AMD eyes se proc ‘A 100% subsidiary of Indusind Bank Limited
Slide 15: Solving the last mile question
Solving the last mile question 5 - 8 Kms & invests upto 2 hours for cash deposit and withdrawal at Bank / ATM 2 - 5 kms, spending upto 1 hour for electricity bill payment 1 - 5 kms to Municipality office for water bill payment spending up to 30 minutes Travels 1 - 5 km and spending up to 30 minutes
Slide 16: BMS since 2018
BMS since 2018 FY19 FY20 FY21 FY22 FY23-H1 Enrolled BMS Enrolled BMS Enrolled BMS Enrolled BMS Enrolled BMS Merchants: 1,376 Merchants: 23,286 Merchants: 86,027 Merchants: 86,653 Merchants: 51,379 Transaction value Transaction value Transaction value Transaction value Transaction value (₹ Cr): 56.8
Slide 17: BMS 2.0 – Strong rural branding focus
BMS 2.0 – Strong rural branding focus Flanges & Standee at the main entrance Posters on the glass 16
Slide 18: IndusInd Bank’s rural touch points, highly visible
IndusInd Bank’s rural touch points, highly visible BHARAT MONEY STORE BMS 1.0 BMS 2.0 Current Account Transactions Balances Deposit, Withdrawal, Current Account IMPS, Bill Payment enhanced with QR Welcome Kit with code Debit card IndusInd Bank Merchant Loan Branding sharper RD based 1st Cycle focus
Slide 19: A Strong Risk Culture
A Strong Risk Culture E-a BHARST AMD eyes se proc ‘A 100% subsidiary of Indusind Bank Limited
Slide 20: A strong risk culture
A strong risk culture Credit Risk Operational Risk Robust Credit norms to mitigate credit risk JLG continues to mitigate risk for micro-credit portfolio. Product programme detailing credit norms, concentration risk, monitoring, corrective action etc Robust Consumer Grievance redressal mechanis
Slide 21: Delinquency trend (0+DPD) – BFIL vs. Industry
Delinquency trend (0+DPD) – BFIL vs. Industry 16.3% 14.0% 11.2% 13.6% 8.2% 7.6% 6.0% 6.1% 4.9% 3.6% 2.1% 1.1% 1.1% 1.2% 0.6% 0.2% FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 (Aug'22) BFIL 0+% Ind 0+% Kerala floods 2018 Demonetization Odisha Cyclone Covid-19 waves 1,2 & 3 Nov – Dec 2016 2018 -2019 20 Not
Slide 22: BFIL has conservative ticket sizes
BFIL has conservative ticket sizes BFIL Industry Ticket Size Ticket Size Market Share Over ₹45,000 7% ₹72,101 ₹25,758 States Included: Andaman & Nicobar, Assam, Dadra & Nagar Haveli, Delhi, J&K, Industry ₹47,811 Cr BFIL Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, West Bengal 93 ₹45,342 ₹19,174 Un
Slide 23: Agile Technology
Agile Technology ED BHARAT AMD eyes se proc ‘A 100% subsidiary of Indusind Bank Limited
Slide 24: Agile technology, capability to handle large volumes
Agile technology, capability to handle large volumes Lead Customer Underwriting Customer Product Rules Engine Generation Data Entry Workflow Creation Set up Core Levers Branch Centralized Loan/RD Loan Disbursal NPA Collection COB/COD Schedule Creation Work Flow Sangam Manager Loan EKYC KYC Verificat
Slide 25: Employer of Choice
Employer of Choice E-a BHARST AMD eyes se proc ‘A 100% subsidiary of Indusind Bank Limited
Slide 26: Strong foundation of People – Culture – Performance
Strong foundation of People – Culture – Performance Very high degree of internal talent sourcing Employer of choice • For the field staff, talent is hired ONLY at the Sangam • Consistently ranked in Top 100 Great Places to work in Manager (entry) Level. Internal talent development India for last eig
Slide 27: Internal Audit – Ensuring Process Controls
Internal Audit – Ensuring Process Controls
Slide 28: Internal Audit – Critical role in ensuring process control
Internal Audit – Critical role in ensuring process control • ISO 9001:2015 certified process • All branches are inspected once in a Quarter on a 4-tier grading system Strength • Communication of Audit Findings at all levels – Branch, Region and Senior Management • Branch Grading linked to incentives
Slide 29: Contact Center – Voice of Customer
Contact Center – Voice of Customer
Slide 30: Effective Customer Contact Center in Place
Effective Customer Contact Center in Place INITIATIVES TAKEN Voice blast to customers on various Financial Literacy points Jingle through Voice Blast/IVR Welcome Call through IVR for BSS Customer as part of Onboarding INITIATIVES IN PROGRESS IVR in 8 vernacular languages Animation Videos on Financia
Slide 31: Towards becoming a Micro-banker
Towards becoming a Micro-banker
Slide 32: Towards becoming a Micro-banker from a Micro-lender
Towards becoming a Micro-banker from a Micro-lender RBI framework Near term growth strategy Wind under the wing Playing to strengths • Comprehensive Principle-based RBI regulations • Evolving from a micro-lender to a micro-banker announced in March 2022 offering a wider suite of products to meet evo
Slide 33: Sambhav Hai! It’s possible!
Sambhav Hal! It’s possible! IndusInd Bank
Slide 34: 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