Indusind Bank Ltd. · NSE:INDUSINDBK
Indusind Bank — Q2 FY24 Earnings Presentation
49 slides from Indusind Bank's earnings presentation, Oct 18, 2023
Slide 1: Stock exchange disclosure letter
October 18, 2023 National Stock Exchange of India Ltd. (Symbol: INDUSINDBK) BSE Ltd. (Scrip Code: 532187) Luxembourg Stock Exchange Madam/ Dear Sir, Sub: Disclosure under Regulation 30 and 46 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 In compliance with Regulatio
Slide 2: Investor Presentation Q2-FY24
Investor Presentation Q2-FY24 | SEPTEMBER 2023 October 18, 2023
Slide 3: IndusInd Bank at a Glance
IndusInd Bank at a Glance 5th Largest Private Bank ₹3,15,454 crs ₹ 3,59,548 crs 37 mn 6,657 with Disproportionately Loans Deposits Customers Group Network Large Distribution Network Diversified Across Products and Geographies Across Segments Pan India Universal Banking Approach 55:45 Loan Mix 39% CA
Slide 4: Key Financial Highlights for Q2 FY24
Key Financial Highlights for Q2 FY24 Loans Deposits CASA Term Deposits Total Assets Balance ₹3,15,454 crs ₹3,59,548 crs ₹1,41,437 crs ₹2,18,111 crs ₹4,77,922 crs Sheet 21% YoY 5% QoQ 14% YoY 4% QoQ 6% YoY 2% QoQ 20% YoY 5% QoQ 12% YoY 2% QoQ Net Interest Income Total Other Income Revenue Operating P
Slide 5: Q2FY24 Outcome Against PC-6 Ambitions
Q2FY24 Outcome Against PC-6 Ambitions Planning Cycle 6 (FY 2023-26) Q2FY24 Outcome Loan Growth 18%-23% 21% Retail Loan Mix 55%-60% 55% Resulting in Retail Deposits as per LCR 45%-50% 44% PPOP / Loans 5.25% - 5.75% 5.2% Branch Network 3,250 - 3,750 2,631 Customer Base > 50mn 37mn 4
Slide 6: Consolidated Balance Sheet
Consolidated Balance Sheet ₹In crs Q2 FY24 Q2 FY23 Y-o-Y (%) Q1 FY24 Q-o-Q (%) Capital & Liabilities Capital 777 775 - - 776 - - Reserves and Surplus 57,617 50,109 15% 56,368 2% Deposits 3,59,548 3,15,532 14% 3,47,047 4% Borrowings 40,530 40,673 - - 45,622 (11)% Other Liabilities and Provi
Slide 7: Consolidated Profit and Loss Account – Q2 FY24 and H1 FY24
Consolidated Profit and Loss Account – Q2 FY24 and H1 FY24 ₹In Crore Q2FY24 Q2FY23 Y-o-Y (%) Q1FY24 Q-o-Q (%) H1 FY24 H1 FY23 Net Interest Income 5,077 4,302 18% ▲ 4,867 4% ▲ 9,944 8,427 Other Income 2,282 2,011 13% ▲ 2,210 3% ▲ 4,492 3,943 Total Income 7,359 6,313 17% ▲ 7,077 4% ▲ 14,436 12,370 Ope
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: 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 10: Well Diversified Loan Book across Consumer and Corporate Products
Well Diversified Loan Book across Consumer and Corporate Products Loan Book Mix (₹crs) (₹crs) 2,60,129 2,72,754 2,89,924 3,01,317 3,15,454 Consumer Banking Sep-23 % Vehicle Finance 82,051 26% 47% 47% 46% 46% 45% Commercial Vehicle 30,879 10% Utility Vehicle 10,729 3% 53% 53% 54% 54% 55% Small CV 3,7
Slide 11: 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 Wheelers Small CV 6% 4% Market Leader Utility Vehicle 35+ Years of Vintage Focus on Business CV in Most Products 13% Across Credit Cycles
Slide 12: Microfinance: Bridging the Financial Inclusion Gap
Microfinance: Bridging the Financial Inclusion Gap Micro Finance Loan Book (₹crs) 34,363 32,215 31,981 29,617 29,688 2nd Largest 10mn 1.43 Lacs Villages 16% YoY Micro Finance Women Customers covered across 21 Lender States 7% QoQ Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Average Loan Outstanding p
Slide 13: Corporate Portfolio – Focus on Granular, Higher Rated Customers
Corporate Portfolio – Focus on Granular, Higher Rated Customers Corporate Loan Book (₹crs) Improving Risk Profile * BB+ & Below BBB-, BBB, BBB+ A-, A, A+ AA-, AA, AA+ AAA 1,39,437 1,43,154 1,34,150 1,27,010 22% 22% 21% 21% 1,21,766 18% YoY 24% 24% 26% 29% 28% 27% 29% 27% 3% QoQ 22% 23% 20% 19% 4
Slide 14: Non-Vehicle Retail Loans – Risk Calibrated Growth Strategy
Non-Vehicle Retail Loans – Risk Calibrated Growth Strategy Business Banking (₹crs) Loan Against Property (₹crs) 15,364 10,181 14,807 9,953 9,502 9,640 13,845 9,248 12,512 12,839 23% YoY 10% YoY 4% QoQ 2% QoQ Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Credit Cards (
Slide 15: 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 16: Deposit Growth Driven by Granular Retail Deposits
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 (%) 44% 43% 43% 3,59,548 42% 3,36,120 3,47,047 41% 3,15,532 3,25,278 14% YoY 21% YoY 1,29,990 1,57,187 1,37,968 1
Slide 17: 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 % 42% 42% 40% 40% 39% 14% 14% 14% 15% 15% 1,41,437 1,33,525 1,36,379 1,34,728 1,38,440 50,007 50,600 49,343 49,910 13% YoY 6% YoY 44,157 1% QoQ 2% QoQ Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2
Slide 18: Borrowings Constituted by Long Term Sources
Borrowings Constituted by Long Term Sources Borrowings (₹crs) Borrowings Mix (%) Borrowings (₹Cr) % of Total Liabilities Infrastructure Short-Term Bonds FCY (less than AT1 Bonds 4% 4% 12 months) 11% 11% 10% 7% 10% 8% Tier 2 Bonds 7% 47,284 49,011 45,622 40,673 40,530 Refinance from Development Long-
Slide 19: 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 20: 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 treasuries LC - Usance in Indian banks with best-in- Notional Amount Risk Weighted Assets 14% class risk management 14,15,512 LC - Sight 7% Financial systems Guarantees 0.5%# 40% Robus
Slide 21: 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 22: Yield / Cost Movement
Yield / Cost Movement 12.30% 12.24% 9.69% 9.60% Yield on Assets 6.35% 6.12% Yield on Advances 5.40% 5.31% Cost of Deposits Cost of Funds Q2FY24 Q1FY24 Segment-wise Yield: Q2FY24 Q1FY24 Outstanding (₹crs) Yield (%) Outstanding (₹crs) Yield (%) Corporate Banking 1,43,154 8.97% 139,437 8.99% Consumer B
Slide 23: Diversified and Granular Fee and Other Income Streams
Diversified and Granular Fee and Other Income Streams ₹In crs Q2FY24 Q2FY23 Y-o-Y(%) Q1FY24 Q-o-Q(%) Trade and Remittances 234 189 24% 233 1% Foreign Exchange Income 227 268 (15)% 262 (13)% Cards and Distribution Fees 681 559 22% 637 7% General Banking Fees 367 307 19% 382 (4)% Loan
Slide 24: 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% 1.9% 4.24% 4.27% 4.28% 4.29% 4.29% Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Operating Profit Margin (%) Cost to Income Ratio (%) 5.
Slide 25: Key Financial Indicators
Key Financial Indicators Return on Assets (%) Return on Equity (%) 1.87% 1.90% 1.90% 1.90% 1.80% 15.23% 15.26% 15.24% 15.33% 14.45% Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Earning Per Share – Annualized (₹) Net Worth (₹ crs) 109.5 113.5 52,848 54,994 56,198 10
Slide 26: 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 27: Movement in Non-Performing Assets
Movement in Non-Performing Assets Q2FY24 Q1FY24 ₹In crs Corporate Consumer Total Corporate Consumer Total Opening Balance 1,989 3,952 5,941 2,069 3,757 5,826 Fresh Additions 214 1,251 1,465 43 1,333 1,376 -from Standard 206 1,176 1,382 43 1,201 1,244 -from Restructured 8 75 83 - 132 132 Deductions 1
Slide 28: NPA Composition – Consumer Banking
NPA Composition – Consumer Banking (₹crs) HL/PL/Oth Q2 FY24 CV Utility CE Small CV TW Cars Tractor BBG/LAP Cards MFI Total ers Gross NPA 365 24 66 75 371 73 97 851 320 247 1,609 4.098 Gross NPA % 1.18% 0.22% 0.63% 1.96% 7.50% 0.62% 1.01% 3.25% 1.52% 2.59% 4.52% 2.34% HL/PL/Oth Q1 FY24 CV Utility CE
Slide 29: Loan Related Provisions held as on September 30, 2023
Loan Related Provisions held as on September 30, 2023 Specific provision of ₹ 4,280 crs for non-performing accounts(towards PCR) Floating provisions of ₹ 70 crs (towards PCR) Standard contingent provisions of ₹ 1,520 crs surplus outside PCR Standard asset provisions of ₹ 1,397 crs other than
Slide 30: 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 31: Healthy Capital Adequacy
Healthy Capital Adequacy CET1 Ratio (%) 15.97% 16.01% 15.93% 16.44% 16.33% Capital Adequacy ₹In crs 30 Sep 23 30 June 23 Credit Risk, CVA and UFCE 2,99,257 2,82,316 Market Risk 8,708 9,643 Operational Risk 42,411 42,411 Total Risk Weighted Assets 3,50,376 3,34,370 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23
Slide 32: Shareholding Pattern and Credit Ratings
Shareholding Pattern and Credit Ratings Diversified Shareholding Credit Ratings Shareholding as per SEBI LODR Domestic Rating: Director/ Others, CRISIL AA + for Infrastructure Bonds program/Tier 2 Bonds Foreign 0.72% GDR issue, Corporates/ NRI, CRISIL AA for Additional Tier 1 Bonds program 8.17%
Slide 33: 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 34: 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 Sep 30, Dec 31, Mar 31, June 30, Sep 30, Particulars 2022 2022 2023 2023 2023 ~37 mn ~1,43,000 Branches/Banking Outlets 2,320 2,384 2
Slide 35: 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 36: Digital transaction intensity continues to grow
Digital transaction intensity continues to grow and more and more of existing business moving digital IndusMerchant Solutions 30% YoY growth in 69% growth in mobile PlayStore App Rating IndusMobile MAU* txn. Volumes 118% YoY growth in IndusMerchant Driving Superior (Aug’23 vs Aug’22)# Solutions Cust
Slide 37: DIY and BaaS led business continues to grow at a robust pace
DIY and BaaS* led business continues to grow at a robust pace with DIY volumes growing strongly across platforms Do It Yourself (DIY) Platform led & BaaS* led Business: Assets grew 3.5X YoY, Liabilities grew 37% YoY Assets (Rs Cr) Liabilities Rs Cr 400 350 150 137 37% 300 100 3.5x 100 200 100 50 100
Slide 38: Digital Adoption across platforms continues to see healthy growth
Digital Adoption across platforms continues to see healthy growth on the back of real time event driven, analytics led engagement IndusMobile MAU* up 30% 74% of all Service Requests Whatsapp Registered Base up Whatsapp Monthly YoY processed digitally 37% YoY active clients up 122% 7.3 YoY 150 130 76
Slide 39: Digital Stack for Individual and MSME Segments
Digital Stack for Individual and MSME Segments: Continued enhancements across digital stacks to create better customer engagement and enablement • Co-bundling of Savings Account with Credit Card • 100% completion of LOS migration from legacy software to new state-of-the-art LOS system for Individual
Slide 40: IndusInd Bank launched 'INDIE' digital banking app
IndusInd Bank launched ‘INDIE’, an innovative customer oriented digital banking app with multiple industry-first offerings Best of Both Worlds – Trust of a Bank and Experience of a new age fintech From Product Centric to Client Centric Personalized Experience Data and Analytics led intelligent engag
Slide 41: INDIE digital banking app offerings
IndusInd Bank launched ‘INDIE’, an innovative customer oriented digital banking app with multiple industry-first offerings Flexible Linked Deposits Simply link your fixed deposit to your savings account to pay with FD when savings balance runs low Industry First Security Features Nudging customers f
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: ESG highlights for Q2 of FY24
ESG highlights for Q2 of FY24 Products Launched Client Engagement Sector Report: Green Steel Steel Industry for Sustainable Finance To provide impetus to the Corporate Sector in A report titled “Path to Sustainability – Green Steel” supporting India’s Net Zero goals and to address the Panel discussi
Slide 44: 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 45: Board of Directors with Diverse Expertise
Board of Directors with Diverse Expertise Name Nature of Directorship Special Knowledge /Expertise Prior Experience Was on the board of all AIG companies in India, Held various senior positions at Non-Executive, Banking, Financial services, Citibank, Independent Director on the Board of State Bank o
Slide 46: 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, Mr. Sumant Kathpalia Managing Director & CEO 35+ Bank of America and ABN AMRO Mr. Arun Khurana Deputy CEO 29+ Regional Hea
Slide 47: Awards & Accolades
Awards & Accolades 46 IndusInd Bank
Slide 48: Pitch BFSI Marketing Summit & Awards 2023
Pitch BFSI Marketing Summit & Awards 2023 Most Effective Holiday, Most Effective Most Effective 360- Most Effective Use of Seasonal & Festival Launch/Relaunch degree Marketing OTT/Digital for Marketing Campaign for Campaign for Campaign for Savings Savings Account Ho To #BankOnHappiness EazyDiner Cr
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