Indusind Bank Ltd. · NSE:INDUSINDBK
Indusind Bank — Investor Day (July 2022)
36 slides from Indusind Bank's investor day presentation, Jul 27, 2022
Slide 1: Analyst Day, 27th July 2022
– Analyst Day 27th July 2022
Slide 2: IndusInd Bank – Analyst Day: Consumer Banking
IndusInd Bank – Analyst Day Presentation-4 Consumer Banking
Slide 3: Scaling a Differentiated Retail Consumer Franchise
Scaling a “DIFFERENTIATED” Retail Consumer Franchise
Slide 4: Our core beliefs
Our core beliefs Dominant in Domains Phygital Model Business Owner Affluent NR Home Markets From physical branch to mobile, from savings to payments to loans.. From RM Become a meaningful player in to VRM to AI led engagement.. We are identified domains through present across multiple touch points t
Slide 5: Our core beliefs
Our core beliefs Deep Play in Assets Credit Data Intelligence cards Loan Against Property Raw Data Agri Campaigns Loans Client 360 & Offers Analytical Personal Assets Loans BBG Enabling RM, VRM Sales and Service Architecture with crucial & timely data Assets penetration to deepen the insights for su
Slide 6: Building blocks of a differentiated retail customer franchise
Building blocks of a “differentiated” retail customer franchise Creating people-first culture Customer to provide world responsive class client innovations as a experience Calibrated growth strategy across differentiator in the retail assets & marketplace credit cards to Strong data deepen the clien
Slide 7: …As a consequence, Retail Liabilities Franchise has improved significantly
Highlights 1.8X Industry Growth ~2X ~2X IBL Deposits 2 Year CAGR Retail CASA in 2 Years Retail CASATD in 2 Years Bank’s Retailization focus has yielded results with LCR now IBL leading amongst all peers with % change in LCR highest at 41% of overall deposits at 31% (FY22 vs FY21) …As a 31% consequen
Slide 8: Distribution Expansion based on Micro Market Focused Approach
Understanding Market size & growth potential #1 by analysing RBI & Bureau data (Retail Loan 01 Book / Delinquency) New Economic Growth Centres – SMART cities, DMIC influences, Industrial/ MSME corridors Distribution 02 Expansion based on Playing the “Density Game” through Impact Ratio Understanding
Slide 9: Investing in brick & mortar footprint expansion across the country
We continue to invest in brick & mortar footprint expansion…present across the length & breath of the country Large Distribution Infrastructure Our geographical reach… Bank Branch Network Branch Network FY-22 FY-21 FY-20 FY-19 FY-18 South Metro 726 622 572 512 431 21% East 15% Urban 562 511 476 425
Slide 10: Segmented Strategy to maximize revenue output and create domain expertise
#2 Segmented Strategy to maximize revenue output and create domain expertise Affluent NRI Business Owner Salaried/ Household Rural Domain Domain Domain • Personalized business Segment solution • FCNR account • Current A/c with Banking Need • Wealth Management • Remittance efficiency and Payment solu
Slide 11: PIONEER - Our Flagship Brand
PIONEER - Our Flagship Brand Built on foundation of Trust and Transparency to cater to “THE SWEET SPOT” Segmented Strategy Emerging to build Domain Category Ultra HNIs Super HNIs HNIs Affluent Affluent Mass Affluent Mass Leadership # of Adults ~2200 11300 2.5L 30L 70L 2.8Cr 78Cr Affluent Business –
Slide 12: Affluent Strategy
Affluent Strategy – Leverage PIONEER Brand to Double the Business and Be Amongst Top 5 Banks in Affluent Segment SCALE STRONG DOMAIN SEAMLESS DELIVERY SUPERIOR SERVICE EXPERTISE • Strong Capabilities in • Grow market share in Home Business • Priority Processing • Integrated Wealth Platform • Dedicat
Slide 13: Segmented Strategy to build Domain Leadership: NR
22% 8.86% 20% NR Highlights Of Bank‘s LCR Book is NR Segment Of total NR Industry Balance Sheet Growth Outward Remittances 12.5k of 1.40 lacs between FY19-22 Market Share (Retail) NR Focused Branch Strategy 24x7 Coverage & Service Segmented Strategy to build Domain • 203 dedicated NRI focused branch
Slide 14: Comprehensive Solutions for all merchant types
Comprehensive Solutions for all merchant types Tarakki Ka Khata DIGI CA / DIY Journeys For prosperity Segmented Retail Merchants Handling Payments & Collections Unsecured Loans (LACR) Strategy to build - Digitally (POS / QR / Indus Direct) Domain Leadership Business Owner Solutions for funding needs
Slide 15: Home Markets: Playing the density game
Home Markets 17 Cities 19% 36% 27% Geographical Spread Of the Branch Network Of Consumer Deposits Of Consumer Fees Home Markets For IBL Consumer Bank, Home Markets Deposits grew the IBL Home market strategy yielding results with strong growth … fastest across markets … … Playing the density game 155
Slide 16: Robust Client Acquisition Model across Omni-Channel, Partnerships and Alliances
#3 Omni channel, partnerships and alliances fueling the client acquisition… Robust Client 211 Acquisition Model across Omni- Channel, Aspiration – 2x Client 73% acquisition by FY 24 Partnerships & 146 Alliances 122 22% Partners & Alliances Scale numbers with 109 an eye on quality 100 i-SKY Channels
Slide 17: Strong data intelligence-based relationship management architecture
#4 Raw Data Client 360 Analytical Assets Campaigns & Offers Strong data intelligence-based relationship management architecture for client engagement Internal Data Demographic Transaction Personas – Customer Segmentation Acquisition | Onboarding | Activation Leveraging Data Product Holding NRV Prope
Slide 18: Strong data intelligence-based architecture for better RM productivity
Pioneer RM & Pioneer Service RM (150 RMs) Biz Owner RM & Service Team (300 RMs) Strong data HNI NR RM & Service Team (300 RMs) intelligence-based architecture for better Upper Mass-Affluent RM • These clients are serviced by dedicated team of ~1700 physical RMs productivity Middle Class i-Sky Virtua
Slide 19: Calibrated growth strategy across Retail Assets & Credit Cards
#5 1 Scaling up Branch & In-House Channel • Asset Servicing Branch distribution expected to increase by 20-30% Calibrated growth in terms of geography coverage • Sourcing through low cost channels, with focus on Digital to improve strategy across Retail CoA Assets & Credit Cards 2 to deepen the exis
Slide 20: Product for every customer segment
Product for every customer segment Calibrated growth strategy across Retail Loan Against Home Loan Property Assets & Credit cards to deepen the Upcoming Product client relationship further Offering wide range of products & channels to Loan against serve all strata of customer segment Business Loan C
Slide 21: Retail Loans Performance Highlights
Retail Loans Performance Highlights Retail Assets FY-2022 Calibrated growth strategy FY-2021 across Retail Assets & BBG Credit cards to deepen the FY-2020 LAP client relationship further FY-2019 CC FY-2018 PL With an eye on maintaining AGRI yields, optimizing growths FY-2017 Others between secured &
Slide 22: Cards for every customer segment
Cards for every customer segment…an important Brand builder for the Bank Indulge Visa Infinite Calibrated growth Super Heritage World Elite strategy across Retail Premium Celesta Amex Assets & Credit cards to deepen the client Pinnacle E-com rewards relationship further Legend Weekend Rewa
Slide 23: Building on domain expertise in Credit Cards
Spends (INR Cr.) Spends Market Share % 5,659 5.28% Building on domain 3.91% expertise in Credit 1,307 Cards… Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 5-year CAGR higher than Industry across key Spends 5 Year CAGR IBL – 34% | Industry – 26% Spends Per Card
Slide 24: Business Banking: well-distributed book, growth momentum back
Business Banking - over years, have built a well-distributed book & post COVID, growth momentum is back 7500+ 130+ cities 700+ branches # Asset Clients Geographical Spread Branch Coverage Segment has huge opportunity for building Our loan book mirrored the market granular & profitable franchise… dev
Slide 25: Business Banking poised for the next growth spurt
With our strategic enablers in place, Business Banking is poised for the next growth spurt and as we step into FY23, with strategic focus on…. 1 Digitization Invest in Digital Capabilities to deliver growth and seamless client experience 2 Branch coverage model to enhance distribution In line with t
Slide 26: Continue Customer Responsive Innovations to create differentiators
#6 Continue “Customer Responsive Innovations” to create differentiators in the market CA DIY Account VKYC @ Card, Deposits Account Aggregator Service Fx Portal All-in-1 App WhatsApp Indus Assist 24x7 Video Branch Banking @ Alexa Banking Choice Money My Account Cash on Mobile Finger Print Banking Duo
Slide 27: Recognitions through various awards & accolades
…and even though we keep a low profile, recognitions through various awards & accolades follow IndusInd Bank ranks #1 across Banks in the latest GoI MeITY’s Digital Payments Rankings FY22 Financial Express Best Bank Award for Indus Merchant Solutions awarded #1 #4 Best Savings Product Outstanding Di
Slide 28: Creating the right people-first culture
#7 Consumer Bank’s “Bible” - Commitment & Discipline to-dos Inculcating Customer First Attitude Creating the right people-first culture to provide world class client experience Robust framework for Business Etiquettes in place to create a “Customer First Leaders’ Connect Reinforcing & Rewarding Righ
Slide 29: Ongoing process re-engineering for ease of doing business
Consumer Bank Digital Journeys Ongoing process Digital Account Opening: 1 Savings Account re-engineering for Opening Key Impact on CX Metrics Mobile App based account opening ease of doing for seamless & instant AC opening Current Account 2 business and Opening achieve extra- Acquisition Metric Stat
Slide 30: Better customer experience decisions with root-cause analysis
1. Voice of Customer : 2. Detractor Engagement Listening to the customer starts & Service Recovery: from asking two simple questions on Detractors are called and for greater Advocacy & Effort understanding & resolution Better customer experience 4. Root Cause Analysis decisions with & Process Reengi
Slide 31: Scientific process for Staff Assessment
Scientific process for Staff Assessment Creating the right Quantitative – (55-40%) Branch Managers RH / ZHs people-first culture Liabilities / Assets / Fees / NTBs Build a healthy Franchise Development “Culture” based on Quantitative – (45-60%) transparency, well articulated KPIs, open BSOS Score (S
Slide 32: Career Progression for frontline staff
Continuum – the scientific process for staff career progression Career path Level 3 Level 4 framework based Level 1 Level 2 Service Delivery Key Account RM Senior Banking Sr. Banking BDE BDM RM Partner Partner on performance & Manager Manager Career Progression for defined frontline staff competenci
Slide 33: Building the Next-Gen People Leaders - Rewards & Recognitions
Building the Next-Gen People Leaders - Rewards & Recognitions Have the right employee rewards & recognition program to award a diverse workforce Happy Employees provide the best Customer Experience
Slide 34: Consumer Bank – the way ahead
Consumer Bank – the way ahead 1 Leveraging Digitization Doubling client acquisition by FY 24 2 Focus on Domains Focused Segments (NR / Affluent) to grow at 2x of IBL Growth & Home markets to reach to 5% Market share by FY 24 3 Retailization of Deposits LCR book as % of deposits to reach 45%+ by FY 2
Slide 35: Thank You
THANK \ielu, IndusInd Bank
Slide 36: 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