Indusind Bank Ltd. · NSE:INDUSINDBK
Indusind Bank — Motilal Oswal Annual Global Investor Conference 2022
30 slides from Indusind Bank's conference presentation, Sep 19, 2022
Slide 1: Exchange disclosure cover letter
September 19, 2022 The Asst. Vice President The Deputy General Manager Listing Department Corporate Relationship Dept. National Stock Exchange of India Ltd. BSE Ltd. Exchange Plaza, 5th Floor 1st Floor, New Trading Ring Plot No. C/1, G Block Rotunda Building, P. J. Towers Bandra–Kurla Complex Dalal
Slide 2: IndusInd Bank – Diamond Decade Opportunities
IndusInd Bank – Diamond Decade Opportunities Motilal Oswal Global Investor Conference 19th September 2022
Slide 3: Presentation Path
Presentation Path 1 Indian Economy Poised for the Diamond Decade 2 IndusInd Bank: Uniquely Placed to Participate in India’s Growth Journey 3 Opportunities across Businesses Providing Sustainable Growth Runway 4 Potential Implications to the Bank
Slide 4: Presentation Path
Presentation Path 1 Indian Economy Poised for the Diamond Decade 2 IndusInd Bank: Uniquely Placed to Participate in India’s Growth Journey 3 Opportunities across Businesses Providing Sustainable Growth Runway 4 Potential Implications to the Bank
Slide 5: Indian Economy Well poised for Next Decade with Favorable Demographics & Initiatives in Place
Indian Economy Well poised for Next Decade with Favorable Demographics & Initiatives in Place Favorable demographic dividend with high share of young working population Continuously rising affluence (GDP per capita, USD at PPP) Start of demographic dividend End of Demographic dividend ~745mn India 2
Slide 6: Entrepreneurial India: Start-up Ecosystem to Bolster Economic Growth
Entrepreneurial India: Start-up Ecosystem to Bolster Economic Growth 3rd Largest Startup Ecosystem.. Number of Recognised Start-ups(#) 1 Strong talent pool with improving perception towards 72,993 entrepreneurship 41,061 2 ‘India Stack’ enabling innovative solutions 471 Dec-16 Dec-20 Jun-22 3 Collab
Slide 7: Banking Sector: Economic Growth along with Credit Under-penetration Implies Robust Growth Potential
Banking Sector: Economic Growth along with Credit Under-penetration Implies Robust Growth Potential India’s bank credit has grown @~10% CAGR over the last decade… ..however, penetration remain low compared to large economies Bank Credit (Rs. Lac crore) Total Credit to Private Non-financial Sector (%
Slide 8: Presentation Path
Presentation Path 1 Indian Economy Poised for the Diamond Decade 2 IndusInd Bank: Uniquely Placed to Participate in India’s Growth Journey 3 Opportunities across Businesses Providing Sustainable Growth Runway 4 Potential Implications to the Bank 7
Slide 9: IndusInd Bank: Uniquely Placed to Participate in India's Growth Story
IndusInd Bank: Uniquely Placed to Participate in India’s Growth Story Diversified Robust Strong Loan Book with Domain Liability Franchise Product Groups Expertise in Livelihood Loans Disproportionately Large Customer Centric Experienced Distribution Network with Future Ready Digital 2.0 Management T
Slide 10: With Strong Foundation Laid for Sustainable Future
With Strong Foundation Laid for Sustainable Future Parameter Mar-20 Jun-22 1 CET1 13.2% 16.1% Capital 15.0% CRAR 18.1% RWA/Assets 84% 74% Net NPA 0.91% 0.67% 2 Asset Quality Provision Coverage Ratio 63% 72% Contingent Provisions - Rs.3,003cr Liquidity Coverage Ratio 112% 124% 3 Liquidity Credit/Depo
Slide 11: And Steady Improvement in Growth Across Businesses
Q4FY19 Q1FY20 Q4FY19 Q2FY20 Q1FY20 Q3FY20 Q2FY20 Q4FY20 Q3FY20 Q4FY20 Q1FY21 Q1FY21 Q2FY21 Q2FY21 Q3FY21 Q3FY21 Q4FY21 Q4FY21 Q1FY22 Q1FY22 Q2FY22 Q2FY22 Q3FY22 Q3FY22 Q4FY22 Q4FY22 Corporate Loan Growth (YoY %) Q1FY23 Q1FY23 8% Vehicle Finance Loan Growth (YoY %) 24% Q1FY21 Q4FY19 Q2FY21 Q1FY20 Q2F
Slide 12: Presentation Path
Presentation Path 1 Indian Economy Poised for the Diamond Decade 2 IndusInd Bank: Uniquely Placed to Participate in India’s Growth Journey 3 Opportunities across Businesses Providing Sustainable Growth Runway 4 Potential Implications to the Bank
Slide 13: Leveraging Opportunities Across Businesses Provide Suitable Growth Runway
Leveraging Opportunities Across Businesses Provide Suitable Growth Runway A Existing Businesses B New Growth Boosters 1 Vehicle Finance: Poised for Growth Cycle Driven by 6 Home Loans: Largest Retail Credit Segment with Steady Growth Consumption & Capex Demand Potential 2 Inclusive Banking: Holistic
Slide 14: Opportunities in Existing Businesses
A Opportunities in Existing Businesses
Slide 15: Vehicle Finance: Poised for Growth Cycle Driven by Consumption & Capex Demand
26% 1 Vehicle Finance: Poised for Growth Cycle Driven by Consumption & Capex Demand of Loan Book Poised for New Growth Cycle.. ..with Positive Macro & Policy Environment Domestic CV sales rebounded sharply & reached new highs after every period of downturn M&HCV LCV 1 Governments infrastructure push
Slide 16: Inclusive Banking: Holistically Serving the Under-Served Rural India
12% 2 Inclusive Banking: Holistically Serving the Under-Served Rural India of Loan Book Rural India – A Large Untapped Opportunity Evolving Operating Environment IBL Diversifying Offerings via BFIL Share of Rural (%) Current Loan Book 1 Low banking penetration presents large growth opportunity 6% 66
Slide 17: Gems & Jewellery: India's Export Dominance to Continue
4% 3 Gems & Jewellery: India’s Export Dominance to Continue of Loan Book India leading in Gems & USD 39.1bn ~27% ~8% ~14% ~8.23mn Jewellery Export of global jewellery contribution to share in India‘s persons export in FY22 consumption India‘s GDP merchandise exports employed India aiming to reach Ge
Slide 18: Corporate: Realigned Coverage & Underwriting; Positioned for Incipient Growth
42% 4 Corporate: Realigned Coverage & Underwriting; Positioned for Incipient Growth of Loan Book Long Growth Runway for IBL with Small Market Share Imminent Corporate Capex Cycle Driven by.. IBL Corporate Loan Market Share (%) 1 Strong private corporate balance sheet backed by strong cash ~1.8% flow
Slide 19: Consumer Loans: Sub-scale Business to Participate in Abundant Opportunity
14% 5 Consumer Loans: Sub-scale Business to Participate in Abundant Opportunity of Loan Book Significant Under-penetration for Consumer Credit IBL has Long Growth Runway with Small Market Share Customers (# mn) IBL Consumer Loan Market Share (%) 814 242 ~1.3% 408 164 Credit Eligible Credit Credit Cr
Slide 20: Opportunities in New Segments
A Opportunities in New Segments
Slide 21: Home Loans: Largest Retail Credit Segment with Steady Growth Potential
New 6 Launch Home Loans: Largest Retail Credit Segment with Steady Growth Potential Large Market Size... …with Significant Room for Growth Mortgage penetration remains low in India ~Rs. 24tn ~13% (Home loans % of GDP) current housing loan market share in Bank Credit 64% 60% 46% 35% ~50% ~77% 28% 21%
Slide 22: Merchant Acquiring: Digital Adoption Providing Ability to Serve
1% 7 Merchant Acquiring: Digital Adoption Providing Ability to Serve of Loan Book India’s Digital Payments Merchant Funnel Scaling-up the IBL’s Merchant Business via BFIL Merchants in mn FY21 CAGR FY26E Customer Acquisition (A/Cs opened) Advances ENR (Rs. Cr) No of merchants (includes traders, other
Slide 23: MSME: Large Unmet Credit Demand
8 MSME: Large Unmet Credit Demand MSME Credit Demand in India Multiple growth drivers in place 1 Increasing formalisation of MSMEs driven by GST Rs.45 tn Rs.15 tn Rs.10 tn 2 Availability to alternate surrogate data-based credit models to drive digital lending Rs.20 tn 3 Increasing digital payments a
Slide 24: Wealth Management: Rising Income Levels Growing Affluent Population
9 Wealth Management: Rising Income Levels Growing Affluent Population Rising Income Levels Expanding Affluent Middle Class Share of Middle Class Household (%) 1 Rising household savings with high proportion of savings ~80% towards financial assets 50%-55% 2 Robust start-up ecosystem catalysing new s
Slide 25: Digital Banking: Business Models Evolving Focused on Client Convenience
10 Digital Banking: Business Models Evolving Focused on Client Convenience Increasing internet penetration with growth in subscriber base There is a fundamental shift in the way consumers consume financial products Mar-15 Mar-19 Mar-22 37 825 98 103 637 25 49 13 Convenient, Intuitive, 302 Personaliz
Slide 26: Presentation Path
Presentation Path 1 Indian Economy Poised for the Diamond Decade 2 IndusInd Bank: Uniquely Placed to Participate in India’s Growth Journey 3 Opportunities across Businesses Providing Sustainable Growth Runway 4 Potential Implications to the Bank
Slide 27: Potential Growth to Accelerate in "Planning Cycle 6"
Potential Growth to Accelerate in “Planning Cycle 6” Tentative Indicators Loan Growth CAGR Ahead of PC-5 Loan Mix 60%:40% Retail: Corporate Resulting in CASA Ratio > 45% PPOP / Loans > 5.5% Branch Network > 3,000 Customer Base > 50mn 26
Slide 28: Key Drivers for Growth
Key Drivers for Growth Domains to Contribute >50% of Loans Addition of a New Domain Asset Management, Traditional + Surge in Client Retail Broking, Para Banking Digital >4 mn per Acquisition Insurance year Green Ops / Lending Vehicles, “Sustainability” at Consistent Gain in Employer of Choice the Co
Slide 29: Thank You
THANK \ielu, IndusInd Bank
Slide 30: 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
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