Indusind Bank Ltd. · NSE:INDUSINDBK
Indusind Bank — Q4 FY2019 Earnings Presentation
41 slides from Indusind Bank's earnings presentation, May 29, 2019
Slide 1: IndusInd Bank filing cover letter
Induslnd Bank May 29,2019 The Asst. Vice President Thc Deputy General Manager Listing Dcpartment Corporate Ilelationship Dept. National Stock Iixchangc of India Ltd. BSE I,Td. Exchange Plaza, 5th Floor 1st Floor, New 'l-rading Ring Plot No. C/l, G Block Rotunda lluilding, P. J. 'Ibwers Bandra Kurla
Slide 2: Investor Presentation Q4-2018-19
Investor Presentation Q4-2018-19
Slide 3: Q4 - FY19 Performance Highlights
Q4 - FY19 Performance Highlights derlying growth drivers remained intact during the quarter BUT... 24 results impacted adversely due to one-off accelerated de-recognition of interest and I provisioning 1,273 crs in. in respect of rexposure to Group in the infrastructure sector = = : _Gredit growth (
Slide 4: l@ m lnduslndBank
l@ m @ @ *Excluding derecognition of interest/Provision for a ** includes 65 banking outlets Broup in infrastructure sector lnduslndBank
Slide 5: Credit ratings
Domestic Rating: . CRISIL AA + for Infra Bonds program . CRISIL AA for Additional Tier I Bonds program ' CRISIL 41+ for certificate of deposit program . IND AA+ for Senior bonds program by India Ratings and Research . IND AA for Additional Tier I Bonds program by India Ratings and Research . IND A1+
Slide 6: Financial Performance
Financial Performance -t(. ) ftrfr ' o lrtdttslnd laank
Slide 7: Induslnd B'an,k
Y-o-Y Growth Q-o-Q Growth Rs.2,232 crs llo/o (2o/o) ) * Rs. 2,385 crs * 19o/o * 4o/o Rs. 1,559 crs 29o/o 60/o ) * Rs. 1,559 crs Rs.3,791 crs l8o/o to/o ) * Rs 3,944 crs Rs. 2,068 crs 17o/o (2o/o) ) * Rs 2,221 crs * 260/o * So/o Rs.360 crs (620/o) (630/o) ) * Rs 1,189 crs * 25o/o * 3o/o 6 Induslnd B'
Slide 8: ffiffiffiffiffi1
I ! ffiffiffiffiffi1 ffiffiffiffiffi .^. ^A' ^L ^^. .L EBEHg %' -ll ,t ") ll rN {t av \='€
Slide 9: f-1' -l f 1l-l F;] t "- I f-1:1",j
Y-o-Y Growth Q-o-Q Growth f-1' -l f 1l-l t- 1'"1"-l f-':,r-j f-1'1.':l''-.} F;] t "- I f-1:1",j f-l?T.-} f-11:1 ,| f-'l?-l f ll.':1..l f-'? .l f -?:1' 1 f,1t-l f r"L-1 l'nduslnd 8,ank
Slide 10: Balance sheet
{Rs Crs) Capital & Liabilities Capital 603 0o/o 0 602 0o/o t Reserves and Surplus 26,083 23,242 tZo/o ,l 25,798 Lo/o 0 Deposits 1,94,868 L,51,,639 29o/o 0 L,75,701 LLo/o ,1, Borrowings 47,32t 38,289 24o/o 6 44,536 60/o 6 Other Liabilities and Provisions 8,944 7,856 l4o/o 6 9,562 (6vo) 9 Cash and Bal
Slide 11: Profit and loss account
Net Interest lncome 2,232 2,008 77o/o tt 2,288 (zVo) v Other Income 1,559 1,208 29o/o 6 t,469 60/o O Total Income 3,79L 3,216 lBo/o 3,757 7o/o {. Operating Expenses t,724 7,447 79o/o 4 t,640 5o/o ,1. 17o/o 6 2,117 (zVo) I Provisions & Contingencies 1561 335 3660/o 6 607 757o/o 6 Prolit before Tax 50
Slide 12: Key financial metrics
Net Interest Income (Rs Crs) 2,385 2,008 79o/o Total Income(Rs Crs) 3,944 3,215 23o/o 5o/o Operating Profit[Rs Crs) 2,227 1,769 260/o 2,LL7 5o/o Profit after Tax((Rs Crs) 1,189 953 25o/o 1,151 3o/o Net Interest Margin(%) 3.84o/o 3.83o/o Return on Assets[%o) l.B4o/o 1.90o/o Return on Equityf%) 17.75o
Slide 13: Full year P&L
(Rs Crc) Net Interest Income Other Income 5,647 4,750 re"1: + te% 4 Total Income L4,493 14,646 12,24g t8o/o ,l 20o/o 6 Operating Expenses 6,405 6,405 5,592 l5o/o I L50/o I Operating Profit 8,088 8,241 6,656 Z2o/o 4 Z4o/o li Provisions & contingencies 3,108 1,457 t,L7s 1640/o 4 24o/o 4 Profit before
Slide 14: Key ratios
Return on Assets 1.90o/o 7,860/o L.62o/o L.90o/o 0.560/o 1.84o/o L.39o/o 7.890/o ROE (On average equity) 16.480/o t6.56o/o 15.44o/o t8.040/o 5.460/o 77,75o/o 13.25o/o 77.540/o Cost / Income Ratio 45.650/o 44.98o/o 43.650/o 43.650/o 43.70o/o 44.19o/o 43.73o/o Net Interest Margin 3.990/o 3.97o/o 3.83o
Slide 15: Loan Book
Loan Book !rConsumer Flnance Division r.Corporate & Commertial Banklng (Rs crs) qgfn{nl,Y,eXlqlq.l?oa{rt............- -?!.144 . .1..3% 52,166 28o/o Corporates q!U.!y.,v-_e,hicf e.-Lea!i . 3,1l.gll-. .,.. 2."1p.. Mid size Colporateq 33,369 180/o 5ry!aU.,c.y-....... .,. -..,.,.,.,,,... .... 3,,1,3,s,.
Slide 16: Exposure to stressed groups
' Three groups, one each in Media / Diversified / Housing Finance sectors speculated as being stressed ' Bank's funded and non-funded exposure to these groups is L.9o/o of the loan book ' Consolidated securit5r cover of 140o/o for the exposures held by us, of which marketable security in the form of
Slide 17: Sector-wise exposure
a Microfinance I Gems and fewellery r Real Estate I Power Generation I NBFCS (other than HFCs ) I Services SMA 1 Outstandingl r Lease Rental 2.51o/o 0.32olo of loans 2.48o/o SMA 2 Outstandingi c Roads/other infra proiects 0.34Yo ofloans I Constn related to infra.- EPC 0 .. : Accounts in sMAl & r Foo
Slide 18: Rating-wise distribution
P E R 20% Investment Grade Sub Investment Grade c E 18% N T$% X Unsecured Non Fund Based % ! '^w I Secured Non Fund Based % R 12% I Unsecured Fund Based % A T 10% t Secured Fund Based % E Daw lBl lB2+ lS2 lB2- lB3+ lB3 lB! lB4+ lB4 lB+ lB5+ lB5 lB5- lB7 tB8 NPA (AAA) (AA+) (AA) (AA-) (A+) (A) (4.) (
Slide 19: Vehicle finance risk distribution
tl tl rl. Vehlcle Flnance Portfolio-wise Risk Distribution - Mar'19 a Behavioural Score (B-score) I I measures post I I disbursement credit quality ! I using long range trisioricat I data. ! i . ;:;;;.. assesses ! "u"ry ! I borrower risk using Current ; and Historical DPD, LTV, I I Geography, Loan t
Slide 20: Building CASA traction
Building CASA traction CASA Uptick I Expanding branch network I Focus on target market segments I Government business P Capital market flows ) Key Non Resident markets > Self employed and Emerging Corporate businesses ts Transaction Banking and CMS Mandates Q3FY1S Q4FY18 Q1Fy19 Q2Fy19 Q3Fy19 Q4Fy19
Slide 21: Fee income
(Rs Crs) Core Fee 7,4r9 1,773 27o/o 7,266 120/o 4. Securities/MM/FX Trading/Others L40 95 49o/o 6 203 (37o/o) I 9n Induslnd 8,alrk
Slide 22: Fee income breakdown
(Rs Crs) Trade and Remittances 189 153 23o/o i 155 220/o 6 636 540 IBo/o 4 Foreign Exchange Income 797 47o/o 6 27s s% I 1,015 779 30o/o 6 Distribution Fees (lnsurance, MF, Cards) 302 273 l7o/o 6 268 730/o 6 t,\28 976 760/o i General Banking Fees 29o/o 6 91 (B%) 9 344 264 30o/o 6 Loan Fees 328 228 44
Slide 23: Fee composition
Trade and Remittances Trade and Remittances , 1olo Foreign Exchange, 87o Foreign Exchange, 10olo lnvestment Banking - Project Distribution, 20olo Finance / Advisory 1olo Invesunent Banking - Loan Slmdication, 8olo Investment Banldng - Structured Finance, 796 General Banking, 60lo Loan Processing - S
Slide 24: Yields and cost of funds
t Yield oD Assels xYield on Advances r Cost ofDeposits t Cost of Funds Q3Frl9 .ytel.I on Assett/ctrs,offunds are bssed Corporate on Total Assc6 /Lldbitities Yleld 9.06olo (excl MFI, Segment-wise Yield BBG and one off) Corporat-e Bank Consumer Finance 68,033 74.72o/o Tnr-al Total * Excl reversal ofin
Slide 25: Credit costs
(Rs Crs) Corporate Bank t44 258 40L 80 59 158 7,837 185 2,L34 483 Consumer Finance 195 244 303 433 t29 L4I L48 t67 5U5 Jd5 Gross Credit Costs (Bosis Points on Advonc6) 62 L4 12 18 108 19 L+6 Net Credit Cost 323 468 672 205 193 299 r,99?, 341 2,6A9 1,038 Net Credit Costs (Basls Polnts on 48 53 59 59
Slide 26: NPA movement
(Rs Crs) 0pening Balance L,203 765 1,968 7,06L 720 1,,781 : Additions 3,230 458 3,688 458 348 Deductions I,345 364 1,709 316 303 6L9 3,OBB 859 ,947* 7,203 765 1,968'r Gross NPA 944t* Net NPA 1,O29 % of Gross NPA 1.13o/o o/o of Net NPA O.59o/o Provision Coverage Ratio (PCRJ Restructured Advances O.L!
Slide 27: Gross NPA
(Rs Crs) Gross NPA Gross NPA % L.!60/o L29o/o 0.71o/o 3.75o/o 0.79o/o 0.42o/o L.7 60/o L.L8o/o Gross NPA 765 Gross NPA o/o L.05o/o L32o/o 0.760/o 0.4Io/o 7.460/o 1.90o/o L.l2o/o 26
Slide 28: Capital adequacy
(Rs Crs) Credit Risk, CVA and UFCE t,82,948 r,75,042 Market Risk 8,615 7,973 Operational Risk 22,986 18,840 Total Risk Weighted Assets 2,14,549 2,01,955 Core Equity Tier 1 Capital Funds 25,905 25,809 Additional Tier l Capital Funds 3,490 2,000 Tier 2 Capital Funds 975 831 Total Capital Funds 30,37O
Slide 29: Strengthening Distribution Infrastructure
Strengthening Distribution Inftastructure Branches/Banking 111.| outlets 1,466 1,558 1,565'* ATMs 2,285 2,372 2,453 2,545 *includes 208 specialized branches and 65 Banking outlets . B rc nch/Re p ft e nta tive Ofri ce Note: Numbe's given above ore totol branches ln eoch stot 28
Slide 30: Shareholding pattern
March 31,20t9 NRIS/ Director/ Others 2,960/o *includes FPls Induslnd Bank
Slide 31: H=1RF3
.n= \n 0q Eg fE !J =' zga P,; :. o i oa i..j { tz' ^d il6Y- c6' o Y. EE :)t!ga- d3 "l != sq P= ;[66 Im 3B 3.6 fr o;; O-l o P9Y =' €: 6f+ o -(D .) !r r) >:D a') H=1RF3 iiA) I ii5 o 6-5 F+ L s3 ? ;J tr9. ? >1 6'=; .i iiE 6a 3 Yi !! ;t vl -.- 5(D f;. 9l .' 5cr'o 3O og X' += o'y X=' t! 9-= 5 i5- j x 6;<
Slide 32: Digital transactions
Q4'FY 18 Q4'FY 19 ATM, ;;) lL.8% Branch, ai: r'i. 30% .i: ill'l",,I,,,,.,,,,,,.,,r,:,i,i I' v 'r ":l::" I 3.1% Cheque, s.2% ,,,,,i,"::l>', ir. Cards rl:, ,,,,""3:"rlN t..,.. 14oh . ,:': ',',,i ' .r.t:,.,,,,,1" Digital constitutes rr ::1 r,, ,,.. , . . . ]:li , , l Digital constitutes 92o/o ol total
Slide 33: Industry / Media Recognition / Awards
Industry / Media Recogniti on / Awards 32
Slide 34: ET Now Dream Employer award
Induslnd Bank is the ET Now 'Dream Employer of the Year' at the Bth Edition of the ET Now Dream Companies of Work for Awards Organized by the World HRD Congress In Mumbai 33
Slide 35: Banker of the Year award
Mr Romesh Sobti, MD and CEO Induslnd Bank bestowed with the 'Banker of the Year' Award at the Financial Express India's Best Banks awards 34
Slide 36: Business Standard award
Mr Romesh Sobti, MD and CEO Induslnd Bank Honoured with the 'Banker of the Year' Award at the Business Standard Annual Awards JJ
Slide 37: Digital awards
Induslnd Bank has been awarded with the Global Digital MarketingAward by World Digital Marketing Congress as Best Digital Payment Facilitator Induslnd Bank has been awarded with the Times Now India DigitalAwards 2019 for Innovative Money Transfer Product/Service 36
Slide 38: IDC FIIA 2019 award
Induslnd Bank has been awarded with the IDC FIIA 2019 Financial Insights Innovation Award as Asia's Leading Partner Bank
Slide 39: CSR awards
uslnd Bank awarded with the Indv's for powerment of Women'for the Legal Literary gramme and the Induslnd Girl Power 'Support and Improvement of Education' for the Enhanced Education Programme and the Mid- day Meals in the Municipal Schools of Bhubaneshwar Programme 'Environment Excellence' for the R
Slide 40: Thank You
ee Thank You ee ee ee
Slide 41: ,IJreg p,J"rls,r',p..tl
,IJreg p,J"rls,r',p..tl 0t 's?lowpsa luawaaDuDN uo pasDq Jo slDlzuDu{ pa%a! aE p4!u,t!7 Jo slri'.JuDult pqlpnv wo{ aJD uolJo$aseJd aqt u! sJaqwnu ppuDud tM :a$N '!o 6ulpunot o1 anp aat6o 1ou Iow smot / suwryot awos u! lDlol 'uollquasald s,JDaI / s,pouad )ualJnc a41 o7 w.toluot o1 ttossacau ntataqm p