IndusInd Bank Ltd. · NSE:INDUSINDBK

IndusInd Bank — Debt Investor Presentation (January 2018)

30 slides from IndusInd Bank's debt investor presentation, Jan 24, 2018

  1. Slide 1: Cover letter to stock exchanges

    CiN: L651 91 PN1994PLO076333 Induslnd Bank Ianuary 24,2018 The Asst. Vice President The Deputy General Manager Listing Department Corporate Relationship Dept. National Stock Exchange of India Ltd. BSE I,td. Exchange Plaza, 5th Floor I't Floor, New Trading Ring Plot No.C/l, G Block Rotunda Building,

  2. Slide 2: Debt Investor Presentation

    Debt Investor Presentation January 24, 2018

  3. Slide 3: India – Positive Macro Outlook

    India – Positive Macro Outlook GDP growth bottomed out and likely to accelerate henceforth Credit growth back to double digits GDP Growth (%) 20.0% Bank Credit Growth (YoY) 7.6% 6.8% 6.7% 7% 15.0% 6.1% 5.6% 5.6% 10.7% 10.0% 5.0% 0.0% Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 H2FY18E Apr-14 Jun-14 Au

  4. Slide 4: IndusInd Bank – Consistently Building Scale with Profitability

    IndusInd Bank – Consistently Building Scale with Profitability Strength Growth Returns  CRAR at 15.83%; CET1 at 14.07% 3 Year CAGR 9MFY18  RoA = 1.96%  Strong Asset Quality with impaired assets  Loans 27% 25% proportion amongst the lowest in Indian banks;  Deposits 28% 23%  RoE = 16.96% Net NP

  5. Slide 5: Overview of the Bank

    Overview of the Bank  Leading private sector bank and financial services company in India Shareholding (1)  Incorporated in January, 1994; Current customer base of ~11 million(1) and Total GDR issue, Promoters, Assets of over Rs 2,000 bn(1) 10.8% 15.0% NRIs/ Director/ Others, 2.1%  Pan India pres

  6. Slide 6: Business Units

    Organization Structure Global Markets Transaction Banking Business Units Product Groups Client Groups Consumer Banking Corporate Banking Consumer Finance Corporate & Investment Banking Retail Liabilities Commercial Banking Banking Channel Management Financial Institutions Group & Services Wealth Man

  7. Slide 7: Benchmarking Revenue, Risk & Returns

    Benchmarking Revenue, Risk & Returns  IBL performance is in top decile when comparing with the top 5 Public Sector (PSU) and other top 5 Private Sector Banks (PB) Data as of H1FY18. (Banks’ nomenclature not in any particular order) 6

  8. Slide 8: Domestic Ratings

    Domestic Ratings  CRISIL(1) AA + for Infra Bonds program  CRISIL AA for Additional Tier I Bonds program  CRISIL A1+ for certificate of deposit program  IND AA+ for Senior bonds program by India Ratings and Research (2)  IND AA for Additional Tier I Bonds program by India Ratings and Research 

  9. Slide 9: Award Winning Brand / Franchise

    Award Winning Brand / Franchise “The Best CEO (BFSI)” Forbes’ Super 50 Ranked 12th Most Winner- Fraud Mr. Romesh Sobti Companies in India Valuable Indian Brands Management and Cybersecurity BrandZ Top 50 Business Today Forbes India Celent Model Bank WPP Plc & Milward Brown 2016 2016 2017 2016 8

  10. Slide 10: Presentation Path

    Presentation Path  Capital Adequacy 1  Asset Quality 2  Management Track Record & Strategy 3  Earnings Update 4  Liquidity & Funding Profile 5  Building Sustainable Banking 6 9

  11. Slide 11: 1. Strong Capital Adequacy

    1. Strong Capital Adequacy  Bank has maintained strong capital adequacy levels well in excess Rs bn 31 Mar 16 31 Mar 17 31 Dec 17 of the minimum regulatory requirement Credit Risk, CVA and UFCE 994 1,220 1,350  Raised Rs 10 billion of Additional Tier I (AT1) bonds in FY17 and Market Risk 55 67 96

  12. Slide 12: 1. Deploying Capital Efficiently

    1. Deploying Capital Efficiently Return on Risk Weighted Assets (RoRWA) 2.37% 2.40% 2.32% 2.34% 2.18% Q4FY17 Q1FY18 Q2FY18 Q3FY18 FY20 Ambition 11

  13. Slide 13: 2. Asset Quality Stable Across Cycles

    2. Asset Quality Stable Across Cycles Gross NPA Net NPA 1.23% 0.50% 1.12% 1.16% 0.46% 1.01% 0.98% 1.03% 0.93% 0.39% 0.87% 0.36% 0.81% 0.31% 0.33% 0.31% 0.28% 0.27% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 9MFY18 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 9MFY18 Credit Cost * Predominantly Secured Lendin

  14. Slide 14: 2. Diversified Loan Book

    2. Diversified Loan Book Loan Book (Rs bn) 1,232 1,285 1,285 1,131 884 59% 52% 688 60% 60% 551 59% 59% 55% 41% 48% 40% 40% 41% 41% 45% FY14 FY15 FY16 FY17 Sep-17 Dec-17 Dec-17 (BBG forming part Consumer Finance Division Corporate & Commercial Banking of Consumer) (Rs bn) Small (Rs bn) Corporates BBG

  15. Slide 15: 2. Diversified Corporate Portfolio

    2. Diversified Corporate Portfolio Gems and Jewellery 5.39% Power Generation 3.36% Lease Rental 3.10% Real Estate 3.02% Microfinance 2.04% Services 2.07% Telecom- Cellular 1.18% Steel 1.90% Contract Construction-Civil 1.37% Constn related to infra.- EPC 1.42% Food Beverages and Food processing 1.39%

  16. Slide 16: 2. Well Rated Corporate Portfolio

    2. Well Rated Corporate Portfolio 24% P 22% E Investment Grade R Sub Investment Grade 20% C E N 18% T 16% O Unsecured Non Fund Based % F 14% Secured Non Fund Based % R 12% Unsecured Fund Based % A Secured Fund Based % T 10% E D 8% P O 6% R T 4% F O 2% L I 0% O IB1 (AAA) IB2+ IB2 (AA) IB2- (AA-) IB3+

  17. Slide 17: 3. Management Track Record

    3. Management Track Record NIMs (%) RoA (%) RoE (%) QIP & Pref. Allot. 3.99 1.86 1.81 17.48 Rs 50.8 bn 3.71 15.26 2014 2017 2014 2017 2014 2017 Cost / Income (%) Net NPAs (%) Revenue per Employee (Rs mn) 47.1 46.7 0.39 0.33 4.0 3.0 2014 2017 2014 2017 2014 2017 16

  18. Slide 18: 3. Planning Cycle Strategy (FY17-FY20)

    3. Planning Cycle 4 Strategy (FY17-FY20) Market Share with Profitability Loan Growth 25% - 30% Do More of the Same Strategy CASA Ratio 40% Digitize to Differentiate, Diversify and Create Domain Leadership Exceed Balance Sheet Resulting in Revenue Growth Growth Financing Livelihoods RoRWA > 2.4% Broa

  19. Slide 19: 3. Strategic Themes

    3. Strategic Themes Rural Rebalancing Banking and of Loan Book Microfinance Internal Focus on Collaboration Sustainability Productivity and Cross Sell Enriching Digitization Client of Businesses Experience 18

  20. Slide 20: 4. Earnings Update

    4. Earnings Update 9MFY18 Net Interest Margin (NIM) RoA Outcome 1.88% 1.86% 1.90% 1.96% 4.00% 4.00% 4.00% 4.00% 3.99% 1.74% Loan Growth 25% CASA Ratio 43% Revenue 23% Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Growth RoE Net NPA PAT Growth 25% 16.48% 16.96% 0.44% 0.44% 0.4

  21. Slide 21: 4. Diversified Revenue Streams, Opex Trend Improving

    4. Diversified Revenue Streams, Opex Trend Improving Net Revenue Streams (9MFY18) Trading and Other General Banking Income, 5% Fees, 2% Cost / Income Trajectory Investment Banking Fees, 6% 48.1% Distribution 47.0% 46.7% Fees, 8% 45.9% Foreign Exchange Fees, 7% Net Interest Income, 61% FY15 FY16 FY17

  22. Slide 22: 5. Liquidity & Funding Profile

    5. Liquidity & Funding Profile Diversified Funding Sources Other Liabilities; 4% Other Borrowings; 3% Net Worth; 11% Infra Bonds; 1% AT1 Bonds; 1% Basel III Leverage Ratio Refinance; 7% 9.7% Capital Markets TD; 9.5% 9.3% 9.2% 9.2% 9.3% 9.4% 9.5% 9.6% CA Deposits; 10% 9.1% 2% Required >4.5% Corporate

  23. Slide 23: 5. Improving CASA profile

    5. Improving CASA profile Building CASA traction CASA Uptick 700 42.9%  Expanding branch network 600 36.9%  Focus on target market segments 500 40% 35.2% 34.1%  Government business 400 32.5% 34% 626  Capital market flows 300 29.3% 27.3% 466 200  Key Non Resident markets 327 29% 253 100 159 197

  24. Slide 24: 6. Sustainable Banking: Good Ecology is good Economics!

    6. Sustainable Banking: Good Ecology is good Economics! Regulatory Environmental Social Governance Compliance  Operational Compliance  Board Level CSR  Solar ATMs  Water rejuvenation Committee  Market Risk Management  Thin Servers projects  6 Years of Sustainability  Liquidity Management  M

  25. Slide 25: Additional Information

    Additional Information 24 Indusind Bank

  26. Slide 26: Balance Sheet

    Balance Sheet *In Rs bn Q3FY18 Q3FY17 Y-o-Y (%) FY17 Capital & Liabilities Capital 6 6 1%  6 Reserves and Surplus 223 193 16%  200 Deposits 1,461 1,192 23%  1,266 Borrowings 234 203 15%  225 Other Liabilities and Provisions 83 77 8%  90 Total 2,007 1,671 20%  1,786 Assets Cash and Balances wit

  27. Slide 27: Profit and Loss Statement

    Profit and Loss Statement In Rs bn 9MFY18 9MFY17 Y-o-Y (%) FY17 Net Interest Income 54.9 44.0 25%  60.6 Other Income 35.4 29.6 20%  41.7 Total Income 90.3 73.6 23%  102.3 Operating Expenses 41.5 34.8 19%  47.8 Operating Profit 48.9 38.8 26%  54.5 Provisions & Contingencies 8.4 6.6 27%  10.9 Pr

  28. Slide 28: Outline of Existing Borrowings

    Outline of Existing Borrowings Name Issue Date Tenor Related Info Amount AA+/ Stable by CRISIL and IND AA+/ Stable Rs.5 bn Long Term Senior Infrastructure Bonds Mar-15 7 years by India Ratings (equiv. USD 77mm) AA+/ Stable by CRISIL and IND AA+/ Stable Rs.15 bn Long Term Senior Infrastructure Bonds

  29. Slide 29: Thank You

    Thank You

  30. 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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