IndusInd Bank Ltd. · NSE:INDUSINDBK
IndusInd Bank — FY2008-09 Earnings Presentation
47 slides from IndusInd Bank's earnings presentation, May 5, 2009
Slide 1: Financial Results FY 2008-09
Financial Results FY 2008-09 Presentation to Analysts May 5, 2009
Slide 2: Safe Harbour
Safe Harbour Certain statements in these slides are forward-looking statements. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety o
Slide 3: The Presentation Path
The Presentation Path Promise Vs Delivery - FY 2008-09 Driving Themes for 2009-10 New Initiatives Financial Results – FY 2008-09 3
Slide 4: Stated Ambition
Stated Ambition To: To: To: To: REPOSITION REPOSITION IBL IBLas TOP TOP33 Bank REPOSITIONIBL IBLfrom an anOUTLIER REPOSITION from OUTLIER (FRINGE) as (FRINGE) BanktotoaaTOP TOP33 Performer Performerin Performer in the NEW PRIVATE BANK space in 3 YEARS. Performer inthe in theNEW the NEWPRIVATE NEW PR
Slide 5: Delivering on the Ambition
Delivering on the Ambition Return Returnon onAssets Assets 0.34% 0.34% 0.51% 0.51% 0.58% 0.58% Return Returnon onEquity Equity 6.76% 6.76% 9.71% 9.71% 10.38% 10.38% Net NetInterest InterestMargin Margin 1.53% 1.53% 1.94% 1.94% 1.96% 1.96% Cost Costto toIncome IncomeRatio Ratio 67.21% 67.21% 63.41% 6
Slide 6: Delivering on the Ambition - Qualitatives
Delivering Key Input on the Ambition - Qualitatives Results Key Key Initiatives Initiatives Impact Impact // Results Results Balance Controlled Growth/Liquidity Management/Capital Sheet preservation Achievement of Priority Sector Advances Maintained Portfolio quality during the slow down inclu
Slide 7: Delivering on the Ambition - Qualitatives
Delivering on the Ambition - Qualitatives Key Key Initiatives Initiatives Impact Impact // Results Results Increased Broad based revenue streams product range Expanded Products range Human Talent on – boarding en-masse, Learning and Development, Resources Mark to Market compensation Improved
Slide 8: Delivering on the Ambition: Summary of Year 1
Delivering on the Ambition SUMMARY SUMMARYOF OFYEAR YEAR11 Broad over delivery on numbers. Strong steps towards building a Robust / Sustainable Organization. 8
Slide 9: The Presentation Path
The Presentation Path Promise Vs Delivery - FY 2008-09 Driving Themes for 2009-10 New Initiatives Financial Results – FY 2008-09 9
Slide 10: IBL Business Plan 2009-10: Themes
IBL Business Plan 2009-10 : Themes Continue the focus on, Profitability, Productivity & Efficiency. Build Customer Propositions – Product & Services Expand Network / Footprint. Image makeover / build the brand. 10
Slide 11: The Presentation Path
The Presentation Path Promise Vs Delivery - FY 2008-09 Driving Themes for 2009-10 New Initiatives Financial Results – FY 2008-09 11
Slide 12: New Initiatives 2009-10 - Consumer Bank
New Initiatives 2009-10 - Consumer Bank Initiative Product/Service/Description Service Servicedriven drivenwealth wealth&&deposit depositproposition propositionfor forthe theNR NR Non-Resident Non-Resident Indian community communitylaunched launchedininApril’09 Indian(NRI) (NRI) April’09 Building Bu
Slide 13: New Initiatives 2009-10 - Corporate/GMG/Transaction Banking
New Initiatives 2009-10 - Corporate/GMG/Transaction Banking Initiative Product/Service/Description Online Online Full Fullscope scopeonline onlinebanking bankingfor forCorporate, Corporate,Institutional Institutional Banking &&SME Banking SMEclients, clients,Payment Paymentgateway gateway Supply Sup
Slide 14: New Initiatives 2009-10 - Risk Management
New Initiatives 2009-10- Risk Management Initiative Product/Service/Description Basel Basel BaselIIIIsystem systemimplemented. implemented.Initiatives Initiativesto tomove move BaselIIII towards towardsadvanced advancedapproaches approachesbeing beingundertaken. undertaken. Liquidity Liquidity Robus
Slide 15: The Presentation Path
The Presentation Path Promise Vs Delivery - FY 2008-09 Driving Themes for 2009-10 New Initiatives Financial Results – FY 2008-09 15
Slide 16: Financial Performance Highlights-FY 2008-09
Financial Performance Highlights-FY 2008-09 FULL Q4 YEAR Net Profit 250% 98% Operating Profit 195% 88% Revenue 93% 53% Net Interest Income 66% 53% Core Fee Income 37% 48% Costs 46% 36% 16
Slide 17: Financial Results
Financial Results (Rs. in Cr.) Q4-08 Q4-09 2007-08 2008-09 Interest Earned 515.58 613.80 1,880.67 2,309.47 Interest Expended 428.61 469.53 1,579.86 1,850.44 NII 86.97 144.27 300.81 459.03 Non-Interest Income 75.44 169.32 297.57 456.25 REVENUE 162.41 313.59 598.38 915.28 Operating Expenses 111.14 162
Slide 18: Balance Sheet
Balance Sheet (Rs. in Cr.) 2007-08 2008-09 Y-O-Y Growth (%) CAPITAL AND LIABILITIES Capital 320 355 11% Reserves and Surplus 1030 1309 27% Deposits 19037 22110 16% Borrowings 1096 1857 69% Other Liabilities and Provisions 1779 1984 11% TOTAL 23262 27615 19% ASSETS Cash and Balances with RBI 1526 119
Slide 19: Key Financial Indicators
Key Financial Indicators 3 60.00 50.52 2.5 2.41 2.21 45.06 50.00 2.48 2 1.84 1.95 40.00 1.68 33.67 1.5 1.30 30.00 1.14 1 19.10 0.70 0.76 20.00 0.54 0.5 0.31 10.00 0 0.00 Q1-09 Q2-09 Q3-09 Q4-09 NIM (%) ROA (%) NET NPA (%) Net Profit (in crs) NIM is pre amortization 19
Slide 20: Key Financial Indicators
Key Financial Indicators Q4-08 Q4-09 2007-08 2008-09 Gross NPA 3.04% 1.61% 3.04% 1.61% Net NPA 2.27% 1.14% 2.27% 1.14% NIM 1.64% 2.48% 1.53% 1.96% ROA 0.41% 0.76% 0.34% 0.58% ROE 5.21% 14.14% 6.76% 10.38% EPS (not annualized-Rs. per share) 0.70 1.42 2.35 4.28 Revenue/Employee(Rs. in lacs) 22.64 29.5
Slide 21: Net Interest Margin(%)
Net Interest Margin(%) NIM - Quarter NIM – Full Year NIM-Quarter NIM-Full Year 2.48% 2.50% 2.50% 2.00% 1.96% 1.64% 2.00% 1.53% 1.50% 1.50% 1.00% 1.00% 0.50% 0.50% 0.00% 0.00% NIM NIM Q4-PY Q4-CY 2007-08 2008-09 21
Slide 22: Yield/Cost-Quarter
Yield/Cost-Quarter Yield on Advances - Quarter Cost of Deposits - Quarter 14.00% 13.79% 8.50% 8.38% 13.50% 8.00% 7.85% 13.00% 7.50% 12.50% 12.20% 12.00% 7.00% 11.50% 6.50% 11.00% 6.00% Yield on Advances Cost of Deposit Q4-PY Q4-CY Q4-PY Q4-CY 22
Slide 23: Yield/Cost-Full Year
Yield/Cost-Full Year Yield on Advances – Full Year Cost of Deposits – Full Year 13.50% 13.23% 8. 62% 13.00% 8. 22% 8. 22% 7. 84% 12.50% 7. 82% 7. 42% 12.00% 11.76% 7. 02% 11.50% 6. 62% 6. 22% 11.00% Cost of Deposi t Yield on Advances 2007-08 2008-09 2007-08 2008-09 23
Slide 24: Other Income Break-up
Other Income Break-up (Rs. in Cr.) Q4-08 Q4-09 2007-08 2008-09 Fee Based Income 50.15 62.89 189.01 250.86 Profit on Exchange Transactions 10.50 20.25 28.89 71.88 Profit on Sale of Investments 1.64 79.50 19.44 121.55 Profit/(Loss) on sale of assets -3.80 -9.52 -0.67 -30.62 NPA Recovery 13.52 12.46 42
Slide 25: Core Fee Income
Core Fee Income (Rs. in Cr.) Q4-08 Q4-09 FY-08 FY-09 L/C, BG, FIBC/FOBC 9.36 10.32 32.40 41.39 Processing Fee 2.50 5.17 43.53 47.11 FX 10.50 20.25 28.89 71.88 Insurance 11.04 11.27 38.62 63.84 Mutual Funds 0.89 1.11 3.05 3.58 AQB,Collection,etc. 10.09 14.27 39.19 51.90 Others - Fee Income 16.27 20.7
Slide 26: Operating Expenses
Operating Expenses (Rs. in Cr.) (Rs. in Cr.) Q4-08 Q4-09 2007-08 2008-09 Payment to employees 34.94 51.56 121.90 187.14 Other Operating Expenses 76.20 110.74 280.29 359.89 Total Operating Expenses 111.14 162.30 402.19 547.03 No. of employees 2869 4251 2869 4251 26
Slide 27: Key Ratios
Key Ratios (Rs. in lacs.) Q4-08 Q4-09 FY-08(A) FY-09(A) Revenue/Employee Bank as whole 22.64 29.51 20.86 21.53 Consumer 9.01 13.32 8.10 13.07 Staff Cost/Employee 4.85 4.87 4.25 4.40 Staff Cost/Revenue 21.51% 16.44% 20.37% 20.45% 27
Slide 28: Loan Portfolio – Composition
Loan Portfolio – Composition (Rs. In Crs.) Segment 31-Mar-08 31-Mar-09 Growth (%) CFD Commercial Vehicles 4,351 4164 -4.30% Equipment Financing 1,060 1005 -5.19% Two wheelers 788 864 9.64% Car Loans 605 511 -15.54% Utility Vehicle 329 429 30.40% Home Loan 163 172 5.52% Personal loans 53 35 -33.96% T
Slide 29: Loan Portfolio – Industry-wise Break up of CCB
Loan Portfolio – Industry-wise Break up of CCB Highly Diversified % to FB + NFB Advanc Infrastrucure Real Estate Industries es Steel Petroleum & Products Textiles Steel 3.74% Pharmaceticals Infrastructure 3.11% NBFCs(other than Real Estate* 3.07% HFCs) Textiles 2.14% Gems and Jewellery Petroleum & P
Slide 30: Loan Portfolio (CCB) - Sensitive Sector Exposure
Loan Portfolio (CCB) - Sensitive Sector Exposure** (Rs. in Cr.) 31.03.2008 31.03.2009 % of Total % of Total Amt. Advances* Amt. Advances* Capital Market Exposure 350.87 2.03% 375.27 1.91% Real Estate Exposure 468.02 2.71% 665.81 3.40% * Total FB + NFB Advances **Outstandings or sanctioned limit whic
Slide 31: Real Estate Exposure
Real Estate Exposure (Rs. in Crs.) 31-Mar-08 31-Mar-09 a) Direct Exposure (i) Residential Mortgages 179.61 172.48 (ii) Commercial Real Estate Land & Building Developers 51.20 258.35 Lease Rental Discounting 56.35 142.83 Others 46.14 47.46 b) Indirect Exposure 134.72 44.69 Total Real Estate Exposure
Slide 32: Capital Market Exposure
Capital Market Exposure (Rs. in Crs.) 31-Mar-08 31-Mar-09 Direct investment in equity 11.41 7.15 Advances against equity 93.34 83.69 Secured and unsecured advances to and 246.12 284.43 Guarantees on Behalf of stockbrokers TOTAL 350.87 375.27 32
Slide 33: Loan Portfolio - Movement in NPA
Loan Portfolio - Movement in NPA (Rs. In Crs.) 2007-08 2008-09 CCBG CFD Total CCBG CFD Total Opening Balance 216 196 411 223 169 392 Additions 13 54 67 93 126 219 Deduction 6 81 86 240 116 356 Gross NPA 223 169 392 76 179 255 Provisions 57 45 101 34 42 76 Net NPA 167 124 291 42 137 179 Total Advance
Slide 34: CFD-Segment wise NPA
CFD-Segment wise NPA Rs. in crs. 2007-08 CV CE 3W TW Cars BILLS HL TOTAL Net Advances 4,177 1,058 466 786 604 45 163 7,299 Add: Provision 25 2 1 13 4 - - 45 Gross Advances 4,201 1,061 467 799 608 45 163 7,344 Gross NPA 89 9 4 46 21 - - 169 Net NPA 65 7 3 33 17 - - 124 Gross NPA 2.12% 0.88% 0.76% 5.7
Slide 35: Loan Portfolio - Restructured Standard Advances - Segment-wise
Loan Portfolio - Restructured Standard Advances - Segment-wise Segment FY-08 FY-09 % of % of Total Total No. O/S Adv No. O/S Adv CCB 0 0 0.00% 3 36 0.47% CFD 18 2 0.02% 116 8 0.10% Total 18 2 0.01% 119 44 0.28% 35
Slide 36: Capital Infusion
Capital Infusion Bank succeeded in full subscription by large institutional investors to its 2nd GDR(Rs.222 crs) in June, 2008. Last GDR programme was run in March, 2007 (Rs.147crs) Net worth stands increased to Rs. 1429 crs. Bank raised Rs. 100 crs of Tier II capital in March,2009. Tier I infu
Slide 37: Comparative analysis of CRAR under Basel I & Basel II
Comparative analysis of CRAR under Basel I & Basel II (Rs. in Cr.) Basel I Basel II Credit Risk RWA 18628 17212 Market Risk RWA 344 344 Operational Risk RWA -- 1095 Total Risk Weighted 18972 18651 Tier I 1426 1426 Tier II 914 914 Total Capital 2340 2340 CRAR 12.33 % 12.55% 37
Slide 38: Deposit Profile
Deposit Profile (Rs. in Cr.) As on March 31 2008 As on March 31 2009 Next Day 80.28 84.81 2 Days - 7 Days 647.45 583.10 8 Days - 14 Days 354.25 494.28 15 Days - 28 Days 366.29 697.80 29 Days - 3 Months 2,699.21 2,478.16 3 Months - 6 Months 1,369.21 1,755.45 6 Months - 12 Months 1,995.82 2,374.02 12
Slide 39: Structural shift: Retailisation of Liability products
Structural shift : Retailisation of Liability products Below 15 lacs 3500 3250 3000 3122 Rs in crs 2750 2678 Below 15 lacs 2500 2445 2321 2250 2000 2078 8 8 08 9 08 -0 -0 -0 p- c- n ar ar Ju Se De M M Movement in Deposits less than Rs. 15 Lacs 39
Slide 40: Structural shift: Retailisation of Liability products
Structural shift : Retailisation of Liability products CASA 4255 4500 2988 4000 3500 3000 2500 19.24% Rs. in Crs 2000 15.70% 1500 1000 500 0 CASA 2007-08 2008-09 Focused Strategies to mobilise CASA 40
Slide 41: Investment Break-up
Investment Break-up (Rs. in Crs.) Items 31.03.08 31.03.09 Held to Maturity (HTM) · G-Secs 4,678 5,494 · Equity Shares 6 6 · Other Investments (RIDF) 1,103 1,657 5,786 7,157 Held for Trading (HFT) 178 0 Available for Sale (AFS) · T-Bills 442 800 · Gsec & other approved 223 127 665 927 SLR Investments
Slide 42: Provision and Contingencies
Provision and Contingencies (Rs. in Cr.) Particulars Q4-08 Q4-09 2007-08 2008-09 Income Tax/Wealth Tax/Deferred Tax/ 9.00 21.97 39.23 79.15 Fringe benefits tax Provision for diminution in value of 8.90 (0.13) 3.63 (3.09) investments Provision for non performing assets 11.17 70.02 60.90 125.29 includ
Slide 43: Contingent Liability
Contingent Liability (Rs. in Cr.) Particulars 31.03.2008 31.03.2009 Claims against the Bank not acknowledged as debts 237 248 Forward Exch. contracts 17,113 30,454 Derivative-IRS 9,149 9,831 Guarantees 1,803 1,747 Acceptances, Endorsements and Other Obligations 2,680 2,020 TOTAL 30,982 44,300 43
Slide 44: Assets securitised
Assets securitised (Rs. in Cr.) Items 2007-2008 2008-2009 No. of accounts - 35 Aggregate value (net of prov.) of accounts - 40.00 sold to ARC Aggregate consideration - 26.00 Additional consideration realized in respect 10.70 - of accounts transferred in earlier years Aggregate gain/ (loss) over net
Slide 45: Our Network
Our Network 31/03/08 31/03/09 Branches 180 180 ATMs 336 356 Distribution Centres 410 410 30 new Branches and 50 Off Site ATM licences are on hand Branch/Representative Office Strategic Alliance 45
Slide 46: Share-Holding Pattern
Share-Holding Pattern 31/03/09 Promoters 18.22% 25.63% MFs / Banks/ Insurance Co 6.03% FIIs Private Corporates 1.00% Individuals 15.73% NRIs/ Director/ Others 18.74% 14.65% GDR issue 46
Slide 47: Thank You!
Indusind Bank @> Thank You!