IndusInd Bank Ltd. · NSE:INDUSINDBK
IndusInd Bank — FY2010 Earnings Presentation
39 slides from IndusInd Bank's earnings presentation, Apr 16, 2010
Slide 1: Presentation to Analysts
Presentation to Analysts April 16 2010 1
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 - 2009-10 Driving Themes for 2010-11 Financial Results – FY 2009-10 3 3
Slide 4: Stated Ambition
Stated Ambition To: REPOSITION IBL to a TOP 3 Performer in the NEW PRIVATE BANK space in 3 YEARS. Measured by: Profitability Productivity Efficiency Measured by: ROA, ROE, NIM, Efficiency, Net NPAs and Revenue per Employee. 4 4
Slide 5: Delivering on the Ambition
Delivering on the Ambition Where we Actual Where we are were Q4 – FY 10 Mar-09 Mar-10 Mar’08 Return on Assets 0.34% 0.58% 1.14% 1.16% Return on Equity 6.76% 10.38% 16.18% 18.09% Net Interest Margin 1.37% 1.81% 2.88% 3.19% Cost to Income Ratio 67.21% 59.77% 51.12% 50.52% Net NPAs 2.27% 1.14% 0.50% 0.
Slide 6: Operating Metrics
Operating Metrics Net Interest Margin (NIM)(%) RoA(%) RoE(%) 1.27 22.8 2.88 2.86 2.94 3.19 1.14 1.16 1.07 1.08 18.1 2.45 16.2 16.4 15.0 1.81 0.58 10.4 1.37 6.8 0.34 10 10 10 10 08 09 10 0 0 0 0 08 09 10 0 0 0 0 FY FY FY Y Y Y Y Y1 Y1 Y1 Y1 08 09 10 Y1 Y1 Y1 Y1 1F 2F 3F 4F FY FY FY FY FY FY 1F 2F 3F
Slide 7: Delivering on the Ambition - Qualitative
Delivering on the Ambition - Qualitative SUMMARY OF YEAR 2 Performed beyond targeted benchmarks Continued momentum towards building Robust/Sustainable/ Efficient Businesses Further Improved Regulatory perception/compliances Launched Brand building 7 7
Slide 8: Market Recognition
Market Recognition MARCH 20) THE FINANCIAL ExppEes ¢ the banking recnpeyouy Sa <s oon outse ding 2 emen ae ), Ta Indusind Bank bags ‘Technology Bank of the Year-2009’ award from IBA in the private & foreign bank category. Seen in the photo - Sanjay Jaiswal, Head-Delivery & Business Support, IT and M
Slide 9: The Presentation Path
The Presentation Path Promise Vs Delivery - 2009-10 Driving Themes for 2010-11 Financial Results – FY 2009-10 9 9
Slide 10: IBL Business Plan 2010-11: Themes
IBL Business Plan 2010-11 : Themes Continue the focus on Productivity, Profitability & Efficiency Build Customer Service Propositions Expand Network / Footprint to build scale Image makeover / build the brand/rebrand Consolidate and widen Margin/Returns 10 10
Slide 11: The Presentation Path
The Presentation Path Promise Vs Delivery - 2009-10 Driving Themes for 2010-11 Financial Results – FY 2009-10 11 11
Slide 12: Headline Numbers – Q4 FY2009-10
Headline Numbers – Q4 FY2009-10 Net Interest Rs.272.79 crs 89% Income Core Fee Rs.112.21 crs 47% Income Y-o-Y – Q4-10 Revenue Rs. 405.15 crs 29% Operating Rs. 200.48 crs 33% Profit Net Rs. 97.96 crs 94% Profit 12 12 12
Slide 13: Headline Numbers – FY 2009-10
Headline Numbers – FY 2009-10 Net Interest Rs.886.41 crs 93% Income Core Fee Rs.432.27 crs 44% Income Y-o-Y – 2009-10 Revenue Rs. 1439.89 crs 57% Operating Rs. 703.89 crs 91% Profit Net Rs. 350.31 crs 136% Profit 13 13 13
Slide 14: Financial Results – Q4 FY 2009-10
Financial Results – Q4 FY 2009-10 (Rs. in Crs.) Y-o-Y Q-o-Q Q4-10 Q4-09 Growth Q3-10 Growth Interest Earned 720.21 613.80 17% 702.92 2% Interest Expended 447.42 469.53 (5%) 465.22 (4%) NII 272.79 144.27 89% 237.70 15% Non-Interest Income 132.36 169.32 (22%) 116.02 14% REVENUE 405.15 313.59 29% 353.7
Slide 15: Financial Results – FY 2009-10
Financial Results – FY 2009-10 (Rs. in Crs.) 2009-10 2008-09 Y-o-Y Growth Interest Earned 2706.99 2309.47 17% Interest Expended 1820.58 1850.44 (2%) NII 886.41 459.03 93% Non-Interest Income 553.48 456.25 21% REVENUE 1439.89 915.28 57% Payments to Staff 290.56 187.14 55% Other Expenses 445.44 359.89
Slide 16: Balance Sheet – FY 2009-10
Balance Sheet – FY 2009-10 (Rs. in Crs.) Q-o-Q Y-o-Y Growth 31.03.10 31.03.09 Growth % 31.12.09 % CAPITAL AND LIABILITIES Capital 411 355 16% 410 - Reserves and Surplus 1987 1309 52% 1975 1% Deposits 26710 22110 21% 24755 8% Borrowings 4934 2817 75% 4309 15% Other Liabilities and Provisions 1328 102
Slide 17: Improved CASA
Improved CASA 10,000 29% 23.7% 24% 21.2% 22.5% 20.2% 19.2% 6,322 5,579 19% 14.9% 15.7% 4,842 4,371 4,255 15% 2,633 2,988 0 10% FY07 FY08 FY09 Q1FY10 Q2FY10 Q3FY10 Q4FY10 CASA (Rs. in crs) Ratio Growing share of CASA in deposits 17 17 17
Slide 18: Key Financial Indicators
Key Financial Indicators Q4-10 Q4-09 Q3-10 2009-10 2008-09 Profitability ROA 1.16% 0.76% 1.08% 1.14% 0.58% ROE 18.09% 14.14% 16.36% 16.18% 10.38% Productivity Revenue/Employee (Rs. in lacs) 30 22 28 27 22 Efficiency Ratio 50.52% 51.76% 50.87% 51.12% 59.77% Efficiency NIM 3.19% 2.33% 2.94% 2.88% 1.81
Slide 19: Net Interest Margin
Net Interest Margin Quarter Full Year 3.19% 2.88% 2.33% 1.81% Q4-PY Q4-CY 2008-09 2009-10 19 19
Slide 20: Yield on Advances
Yield on Advances Quarter Full Year 13.79% 13.23% 12.61% 11.85% Q4-PY Q4-CY Q4-PY Q4-CY 20 20
Slide 21: Cost of Deposits
Cost of Deposits Quarter Full Year 8.38% 8.22% 6.01% 6.82% Q4-PY Q4-CY 2008-09 2009-10 Sharper decrease in Cost of Deposit 21 21
Slide 22: Other Income
Other Income (Rs. in Crs.) Y-o-Y Y-o-Y Q4-10 Growth 2009-10 Growth Fee & FX 112.21 47% 432.27 44% Securities/MM Market/FX Trading 9.42 (90%) 134.24 (17%) Profit/(Loss) on sale of assets (7.35) - (34.00) - NPA Recovery 18.08 45% 20.97 (14%) Total 132.36 14% 553.48 21% 22 22 22
Slide 23: Core (Client) Fee Income
Core (Client) Fee Income (Rs. in Crs.) Y-o-Y Y-o-Y Q4-10 Growth 2009-10 Growth Trade Fees (LC, BG, Remittances) 16.04 55% 53.84 30% Processing Fees & other charges 19.79 52% 91.49 50% FX – Client 14.43 50% 61.24 96% TPP (Insurance ,MF ,etc ) 34.45 69% 116.04 73% Account Maintenance Fees 9.76 (7%) 65
Slide 24: Gross/Net NPAs
Gross/Net NPAs 1.70% 1.61% 1.46% 1.50% 1.50% 1.34% 1.30% 1.23% 1.14% 1.10% 1.01% 0.98% 0.90% 0.67% 0.70% 0.50% 0.50% 0.30% 0.10% Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Continuous Improvement in Quality of Asset Book 24 24
Slide 25: Provisioning Coverage Ratio (PCR)
Provisioning Coverage Ratio (PCR) 60% 50% 35% 30% 31% Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 On path to achieve regulatory norm of 70% without technical write-off 25 25
Slide 26: Movement in NPA
Movement in NPA (Rs. in Crs.) FY-10 FY-09 (INR in crs) CCB CFD Total CCB CFD Total Opening Balance 76 179 255 223 169 392 Additions 70 152 222 93 126 219 Deduction 45 177 222 240 116 356 -Upgradations 30 52 82 7 59 66 -Recoveries 10 60 70 138 7 145 -Write-offs 5 65 70 95 50 145 Gross NPA 101 154 255
Slide 27: NPA Composition - CFD
NPA Composition - CFD (Rs. in Crs.) Com. Const. Vehicle Utility Equip. 3W TW Cars TOTAL Gross NPA 59.65 7.60 18.39 3.45 47.48 17.95 154.52 Net NPA 33.35 4.42 13.88 2.65 34.65 12.88 101.84 Gross NPA(%) 1.49% 1.10% 1.62% 0.37% 5.19% 3.71% 1.86% Net NPA(%) 0.84% 0.64% 1.23% 0.29% 3.85% 2.69% 1.23% 27 2
Slide 28: Restructured Advances
Restructured Advances (Rs. in Crs.) 31 Mar-10 31 Mar-09 31 Dec-09 No. Rs. in crs No. Rs. in crs No. Rs. in crs Restructured Loans 85 53.36 108 42.82 97 64 Advances 20551 15771 19,091 % Restructured Loans 0.26% 0.27% 0.33% 28 28 28
Slide 29: Loan Portfolio – Composition
Loan Portfolio – Composition Loan to Small Others(Home, (Rs. in Crs.) Business , 9% Personal), 1% Consumer Finance 31/03/2010 % Comm. Vehicle Loans 4013 20% Utility Vehicle Loans 690 3% Comm. Vehicle Loans , 20% Three Wheeler Loans 922 5% Utility Vehicle Commercial Loans , 3% Two Wheeler Loans 901 4
Slide 30: CRAR – Basel II
CRAR – Basel II (Rs. in Crs.) 31 Mar-10 31 Mar-09 Credit Risk RWA 20216 17212 Market Risk RWA 385 344 Operational Risk RWA 1578 1095 Total Risk Weighted Assets 22180 18651 Tier I 2140 1426 Tier II 1259 914 Total Capital 3399 2340 CRAR 15.33% 12.55% Tier I 9.65% 7.65% Tier II 5.68% 4.90% 30 30 30
Slide 31: Loan Portfolio - Sensitive Sector Exposure
Loan Portfolio - Sensitive Sector Exposure** (Rs. in Cr.) 31 Mar-10 31 Mar-09 % of Total % of Total Amt. Advances Amt. Advances* Capital Market Exposure 671.63 2.81% 375.27 1.91% Real Estate Exposure 900.19 3.77% 665.81 3.40% * Total FB + NFB Advances **Outstandings or sanctioned limit whichever is
Slide 32: Real Estate Exposure
Real Estate Exposure (Rs. in Crs.) 31-Mar-10 31-Mar-09 a) Direct Exposure (i) Residential Mortgages 146.68 172.48 (ii) Commercial Real Estate Land & Building Developers 181.95 258.35 Lease Rental Discounting 211.32 142.83 Others 59.69 47.46 b) Indirect Exposure 300.55 44.69 Total Real Estate Exposur
Slide 33: Capital Market Exposure
Capital Market Exposure (Rs. in Crs.) 31-Mar-10 31-Mar-09 Direct investment in equity 7.15 7.15 Advances against equity 23.79 83.69 Secured and unsecured advances to and 505.69 Guarantees on Behalf of stockbrokers 284.43 Advances for any other purposes to the extent secured by the collateral securit
Slide 34: Capital Infusion
Capital Infusion The Bank’s maiden QIP issue for Rs 480 crs met with an overwhelming response from the investor community Bank raised Rs. 420 crs of Tier II capital in March,2010 Net worth stands increased to Rs. 2166 crs. 34 34
Slide 35: Investment Break-up
Investment Break-up (Rs. in Crs.) Items 31 Mar-10 Held to Maturity (HTM) 8,616 Available for Sale (AFS) 1,786 Total Investments 10,402 Of which: SLR Investments 8,525 Non SLR Investments 1,877 Modified Duration(AFS) 0.56 35 35 35
Slide 36: Provision and Contingencies
Provision and Contingencies (Rs. in Cr.) Particulars Q4-10 Q4-09 2009-10 2008-09 Income Tax/Wealth Tax/Deferred Tax/ 49.38 21.97 182.74 79.15 Fringe benefits tax NPA and Other Provisions Provision for diminution in value of (0.13) (0.13) (0.29) (3.09) investments Provision for non performing assets
Slide 37: Our Network
Our Network Mar-10 Mar-09 Branches 210 180 ATMs 497 356 Branch/Representative Office Strategic Alliance 100 new branches by Mar’11 37 37
Slide 38: Share-Holding Pattern – Mar-10
Share-Holding Pattern – 31 Mar-10 GDR issue, 15.76% NRIs/ Director/ Others, 2.91% Promoters, 22.17 % MFs / Banks/ Individuals, 13.2 Insurance 5% Co, 6.78% FIIs, 27.82% Private Corporates, 11.3 2% 38 38
Slide 39: Thank you
IndusInd Bank @® Se