Indusind Bank Ltd. · NSE:INDUSINDBK
Indusind Bank — Q1 FY22 Earnings Presentation
47 slides from Indusind Bank's earnings presentation, Jul 27, 2021
Slide 1: Exchange filing cover letter
Induslnd Bank July 27,2021 National Stock Exchange of India Ltd. (Symbol; INDUSINDBK) BSE Ltd. (Scrip Code: 532187) India Internationel Exchrnge (Scrip Code: f100027) Madam / Dear Sir, Sub: Disclosure under SEBI (Listing Obligrtions and Disclosure Requirements) Regulations, 2015 ('Listing Regulation
Slide 2: Investor Presentation Q1-2021-22
Investor Presentation Q1-2021-22 July 27, 2021
Slide 3: Q1 – FY22 Performance Highlights
Stable financial performance despite Covid 2nd wave Q1 – FY22 Performance Highlights PPOP at Rs. 3,185 crs, grew by 9% YoY; PPOP / Assets at 3.67% NII at Rs. 3,564 crs ; up by 8% YoY. NIM at 4.06% and Fee Income grew 18% YoY Consol PAT at Rs. 1,016 crs up by 99 % YoY and 10% QoQ PCR stands
Slide 4: How We Measure Up On Key Metrics
How We Measure Up On Key Metrics Net Interest Margin (NIM) RoA RoE 4.28% 4.16% 4.12% 4.13% 4.06% 1.09% 1.17% 1.05% 9.30% 8.35% 8.88% 0.85% 7.12% 0.69% 5.86% Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Cost / Income Net NPA Revenue / Employ
Slide 5: Ratings
Ratings Domestic Rating: CRISIL AA + for Infrastructure Bonds program CRISIL AA for Additional Tier I Bonds program CRISIL A1+ for certificate of deposit program / short term FD programme IND AA+ for Senior bonds program by India Ratings and Research IND AA for Additional Tier I Bonds prog
Slide 6: Consolidated Financial Performance
Consolidated Financial Performance 5
Slide 7: Steady Headline Numbers for Q1 FY22
Steady Headline Numbers for Q1 FY22 Y-o-Y Growth Q-o-Q Growth Net Interest Rs. 3,564 crs 8% 1% Income Total Fee Income Rs. 1,788 crs 18% - Revenue Rs. 5,352 crs 11% 1% Operating Profit Rs. 3,185 crs 9% 2% Net Profit Rs. 1,016 crs 99% 10% 6
Slide 8: Top line momentum
Top line momentum Y-o-Y Growth Q-o-Q Growth Advances Rs. 210,727 crs 6% (1%) Deposits Rs. 267,233 crs 26% 4% CASA Rs. 112,349 crs 33% 5% TD Rs. 154,884 crs 22% 4% Borrowings Rs. 49,294 crs (17%) (4%) 7
Slide 9: Balance Sheet
Balance Sheet (Rs Crs) * Q1FY22 Q1FY21 Y-o-Y (%) Q4FY21 Q-o-Q (%) Capital & Liabilities Capital 774 694 12% 773 - Reserves and Surplus 43,774 34,134 28% 42,727 2% Share Warrant Subscription money - 674 (100%) - - Deposits 267,233 2,11,265 26% 2,55,870 4% Borrowings 49,294 59,196 (17%
Slide 10: Profit and Loss Account – Q1 FY22
Profit and Loss Account – Q1 FY22 (Rs Crs) Q1FY22 Q1FY21 Y-o-Y (%) Q4FY21 Q-o-Q (%) Net Interest Income 3,564 3,310 8% ▲ 3,535 1% ▲ Other Income 1,788 1,520 18% ▲ 1,780 - ▲ Total Income 5,352 4,830 11% ▲ 5,315 1% ▲ Operating Expenses 2,167 1,902 14% ▲ 2,186 (1%) ▼ Operating Profit 3,185 2,928 9% ▲ 3
Slide 11: Key Financial Indicators
Key Financial Indicators Q1FY22 Q1FY21 Q4FY21 Return on Assets 1.17% 0.69% 1.09% PPOP / Average Assets 3.67% 3.95% 3.68% Return on Equity 9.30% 5.86% 8.88% Cost / Income Ratio 40.48% 39.38% 41.13% Net Interest Margin 4.06% 4.28% 4.13% Net NPA 0.84% 0.86% 0.69% EPS (annualized, Rs. per share) 52.56 2
Slide 12: Well Diversified Loan Book
Well Diversified Loan Book Loan Book (Rs crs) 206,765 212,595 210,727 186,394 44% 43% 44% 61% (Rs crs) 56% 57% 56% Consumer Finance Jun-21 39% Vehicle Loans 59,645 28% FY19 FY20 FY21 Jun-21 Comm. Vehicle Loans 22,853 11% FY19 are not comparable Consumer Finance Corporate & Commercial Banking Utility
Slide 13: Diversified Corporate Loan Book
Diversified Corporate Loan Book Sector % Gems and Jewellery 3.85% NBFCs (other than HFCs ) 3.78% Lease Rental 3.26% Real Estate - Commercial and Residential 3.19% Steel 3.00% Power Generation – Non Renewable 1.64% Power Generation – Renewable 1.39% Real Estate - Others 1.34% Housing Finance Companie
Slide 14: Well Rated Corporate Portfolio
Well Rated Corporate Portfolio 26% P 24% E R 22% C E 20% Investment Grade Sub Investment Grade N T 18% O F 16% R Unsecured Non Fund Based % A 14% Secured Non Fund Based % T Unsecured Fund Based % E 12% D Secured Fund Based % P 10% O R 8% T F 6% O L 4% I O 2% 0% IB1 (AAA) IB2+ IB2 (AA) IB2- (AA- IB3+
Slide 15: Improving Deposit Profile
Improving Deposit Profile Expanding branch network CASA Focus on target market segments 50% 1,00,000 41.7% 42.0% Growth driven by retail customer acquisitions 40.0% 40.3% 40.4% 44% 90,000 38% Scaling up new businesses – Affluent and NRI 80,000 1,12,349 33% Leverage BFIL for rural customers
Slide 16: Other Income
Other Income (Rs Crs) Q1FY22 Q1FY21 Y-o-Y (%) Q4FY21 Q-o-Q (%) Core Fee 1,214 682 78% 1,508 (20%) ▼ Securities/MM/FX 574 838 (31%) ▼ 273 111% Trading/Others Total 1,788 1,520 18% 1,781 - 15
Slide 17: Diverse Revenues from Core Fee Income
Diverse Revenues from Core Fee Income (Rs Crs) Q1FY22 Q1FY21 Y-o-Y(%) Q4FY21 Q-o-Q(%) Trade and Remittances 170 116 47% 219 (22%) Foreign Exchange Income 192 155 24% 269 (29%) Distribution Fees (Insurance, MF, 311 174 79% 399 (22%) Cards) General Banking Fees* 188 109 72% 200 (6%) Lo
Slide 18: Diversified and Granular Fee Streams – Q1 FY22
Diversified and Granular Fee Streams – Q1 FY22 Corporate Banking Consumer Banking Trading and Other Income (21%) (48%) (31%) Trade and Remittances , 2% Trade and Foreign Investment Banking - Project Remittances , 8% Exchange, Finance / Advisory, 0% 5% Investment Foreign Investment Banking Banking -
Slide 19: Yield / Cost Movement
Yield / Cost Movement 11.75% 11.78% Yield on Assets 8.59% 8.67% Yield on Advances Cost of Deposits 4.97% 4.53% 5.03% 4.54% Cost of Funds Q1FY22 Q4FY21 •Yield on Assets/Cost of funds are based on Total Assets/Liabilities Segment-wise Yield Q1FY22 Q4FY21 Outstanding Yield Outstanding Yield (Rs crs) (%
Slide 20: Loan Related Provisions held as on June 30, 2021
Loan Related Provisions held as on June 30, 2021 Specific provision of Rs. 3,596 crs (towards PCR) Floating provisions of Rs. 70 crs other than related to COVID-19 (towards PCR) Counter-cyclical provision of Rs. 760 crs (towards PCR) Standard contingent provisions of Rs. 2,050 crs surplus ou
Slide 21: Credit Cost
Credit Cost (Rs Crs) FY18 FY19 FY20 FY21 Q4FY21 Q1FY22 Corporate Bank 468 2,134 1,893 2,106 542 473 Consumer Finance 433 585 1,136 2,691 2,044 659 Gross Credit Costs 901 2,719 3,029 4,797 2,586 1,132 Gross Credit Costs 62 146 146 226 122 54 (Basis Points on Advances) Net Credit Cost 856 2,689 2,973
Slide 22: Loan Portfolio - Movement in NPA and Restructured Advances
Loan Portfolio - Movement in NPA and Restructured Advances Q1FY22 Q4FY21 Rs cr Corporate Consumer Total Corporate Consumer Total Opening Balance 2,800 2,995 5,795 2,231 1,420 3,651 Proforma NPA as on Dec 31,2020 413 2,095 2,508 Proforma Opening Balance 2,644 3,515 6,159 Fresh Additions 421 2342 2,76
Slide 23: NPA Composition – Consumer Finance
NPA Composition – Consumer Finance (Rs Crs) Com. Const. Small HL/PL/ Q1 FY22 Utility TW Cars Tractor BBG/LAP Cards MFI Total Vehicle Equip. CV Others Gross NPA 675 70 131 253 515 142 87 675 215 203 452 3,418 Gross NPA % 2.93% 1.40% 1.47% 7.62% 9.78% 1.82% 1.28% 3.34% 2.75% 4.37% 1.69% 2.85% Com. Con
Slide 24: Strong Balance Sheet & Profitability Buffers in Place
Strong Balance Sheet & Profitability Buffers in Place Capital Adequacy Pre Provision Operating Profit Margin (Rs. in Crores) 30 Jun 21 31 Mar 21 5.5% 5.7% 6.0% 6.0% 4.9% Credit Risk, CVA and UFCE 229,559 2,30,602 2.4% 3.6% 3.5% Market Risk 9,688 9,190 1.9% 3.8% Operational Risk 33,120 33,120 Total R
Slide 25: Distribution Expansion to Drive Growth
Distribution Expansion to Drive Growth Strengthening Distribution Infrastructure Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, Particulars 2020 2020 2020 2021 2021 Branches/Banking 1,911 1,910 1,915 2,015 2,015* Outlets BFIL Branches 2,079 2,144 2,249 2,289 2,385 Vehicle Finance 854 841 840 828 821 Market
Slide 26: Digital Strategy: Digital 2.0
Digital Strategy: Digital 2.0 about client centric, segment specific value propositions, Open / API Banking and creating frictionless banking experience Journey So Far Way Forward Differentiated Client Create Experience & Marketplaces Engagement Responsive Enriched Digital • Frictionless, Value Prop
Slide 27: Creating future ready tech stacks and platforms
Creating future ready tech stacks and platforms – building cloud native, micro-services based API-led stacks Creating future ready platforms and API stacks leveraging cloud native, micro-services based, data driven framework Few Platform Key Principles Examples … Chatbots Web Mobile Call Center RM B
Slide 28: Digital Business Mix continues to grow
Digital Business Mix continues to grow on the back of seamless digital onboarding journeys powered by “IndiaStack” across products Non Fixed Current Mutual Funds Personal Insurance Credit Savings Resident Deposits Account (IndusSmart) Loans (Life+Non Life) Cards 96% 93% 92% 85 70% % 46% 45 50% % Q1
Slide 29: User Base and Transaction Volumes continue to show healthy growth
User Base and Transaction Volumes continue to show healthy growth across channels Average monthly mobile banking transactions grew 2.7X Mobile App User Base increased 37% YoY Indexed User Base 300 Indexed Mobile App Txns 150 37% 250 200 2.7X 100 150 137 268 100 50 100 50 100 0 0 Q1 FY 21 Q1 FY 22 Q1
Slide 30: Digital Transaction Mix continues to grow
Digital Transaction Mix continues to grow with 92% of transactions happening digitally and 67% of service requests processed digitally Digital service requests* (% of total SRs) increased to 67% Overall Digital Transaction mix at 92% up from 86% by volume reducing cost to serve 68% 93% 92% 67% 91% 6
Slide 31: Launched all new IndusMobile
Launched all new IndusMobile: Improved app Rating from 3.8 to 4.0 within 3 months; 85% of users rate latest release 5 Stars IndusMobile Ratings on Android Playstore 4.0 3.8 Apr'21 Jul'21 IndusMobile Ratings crossed peer average Faster response time on login Multiple User Access Performance Sprin
Slide 32: Launched Indus Easy credit
Launched Indus Easy credit :Instant personal loan and credit cards in a completely digital end to end journey Micro-services based API Stack that will be Unique one of its kind client journey in leveraged across Client, Sales Assisted, the industry, leveraging the power of Partner Led journeys ‘Indi
Slide 33: India's first all-in-one Merchant solutions
Run your business with : India’s first all-in-one Merchant solutions (Going Live Shortly) All your banking needs in one App Digital Self - Onboarding Payments. Banking. Loans. Digital account opening & merchant onboarding 3-in-1: Payment Collections, Banking & Loans DIY / Assisted / Partner le
Slide 34: Launching Indus Easy Credit for Businesses
Launching Indus Easy Credit for Businesses: Focused digital products for SME segment going live soon Q1 Building the “Digital SME Stack” by leveraging Delivering completely digital, assisted and microservices based APIs partner led journeys across channels Easy and simplified product, overdraft up
Slide 35: Shareholding Pattern
Shareholding Pattern Paid up Capital as of June 30, 2021 MFs / Banks/ Promoters, Insurance Co, 15.19% 16.28% Individuals, 7.34% Private Corporates, 2.54% NRIs/ Director/ Others, 2.67% GDR issue, 8.20% FIIs, * 47.78% *includes FPIs 34
Slide 36: Appendix
Appendix 35 IndusiInd Bank
Slide 37: CV Portfolio – As per a Leading Bureau
CV Portfolio – As per a Leading Bureau 60+ Delinquency 90+ Delinquency 20 6 18 5 16 14 4 12 10 3 8 2 6 4 1 2 0 0 DEC'19 Mar'20 June'20 Sep'20 Dec'20 Mar'21 DEC'19 Mar'20 June'20 Sep'20 Dec'20 Mar'21 IBL Industry IBL Industry • Strong portfolio performance (60+ and 90+ QoQ) compared to competition an
Slide 38: CE Portfolio – As per a Leading Bureau
CE Portfolio – As per a Leading Bureau 60+ Delinquency 90+ Delinquency 16 5 4.5 14 4 12 3.5 10 3 8 2.5 2 6 1.5 4 1 2 0.5 0 0 DEC'19 Mar'20 June'20 Sep'20 Dec'20 Mar'21 DEC'19 Mar'20 June'20 Sep'20 Dec'20 Mar'21 IBL Industry IBL Industry • Strong portfolio performance (60+ and 90+ QoQ) compared to co
Slide 39: PV Portfolio – As per a Leading Bureau
PV Portfolio – As per a Leading Bureau 60+ Delinquency 90+ Delinquency 10 1.8 9 1.6 8 1.4 7 1.2 6 1.0 5 0.8 4 0.6 3 0.4 2 1 0.2 0 - DEC'19 Mar'20 June'20 Sep'20 Dec'20 Mar'21 DEC'19 Mar'20 June'20 Sep'20 Dec'20 Mar'21 IBL Industry IBL Industry • Strong portfolio performance (60+ and 90+ QoQ) compare
Slide 40: Used PV Portfolio – As per a Leading Bureau
Used PV Portfolio – As per a Leading Bureau 60+ Delinquency 90+ Delinquency 12 3.0 10 2.5 8 2.0 6 1.5 4 1.0 2 0.5 0 0.0 DEC'19 Mar'20 June'20 Sep'20 Dec'20 Mar'21 DEC'19 Mar'20 June'20 Sep'20 Dec'20 Mar'21 IBL Industry IBL Industry • Strong portfolio performance (60+ and 90+ QoQ) compared to competi
Slide 41: Tractor Portfolio – As per a Leading Bureau
Tractor Portfolio – As per a Leading Bureau 60+ Delinquency 90+ Delinquency 18 6 16 5 14 12 4 10 3 8 6 2 4 1 2 0 0 DEC'19 Mar'20 June'20 Sep'20 Dec'20 Mar'21 DEC'19 Mar'20 June'20 Sep'20 Dec'20 Mar'21 IBL Industry IBL Industry • Strong portfolio performance (60+ and 90+ QoQ) compared to competition
Slide 42: TW Portfolio – As per a Leading Bureau
TW Portfolio – As per a Leading Bureau 60+ Delinquency 90+ Delinquency 16 7 14 6 12 5 10 4 8 3 6 2 4 2 1 0 0 DEC'19 Mar'20 June'20 Sep'20 Dec'20 Mar'21 DEC'19 Mar'20 June'20 Sep'20 Dec'20 Mar'21 IBL Industry IBL Industry • Strong portfolio performance (60+ and 90+ QoQ) compared to competition and ma
Slide 43: Microfinance – As per a Leading Bureau
Microfinance – As per a Leading Bureau Industry IBL As of May 2021 100 100 100 43 36 31 30 DPD 60 DPD 90 DPD
Slide 44: Accolades
Accolades 43 IndusiInd Bank
Slide 45: Awards and Accolades
Awards and Accolades IndusInd Bank is bestowed with the Asset Asian Triple Awards 2021 Treasury, Payment and Working Capital Category Supply Chain Finance Category Best Service Provider (India) Best in Treasury and Best Payment and Best Payment and Best Supply Chain Working Capital Collection Soluti
Slide 46: Thank You
Thank You | oe UNS Indusind Bank AS
Slide 47: 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