Indusind Bank Ltd. · NSE:INDUSINDBK
Indusind Bank — Q2 FY2021 Earnings Presentation
31 slides from Indusind Bank's earnings presentation, Oct 30, 2020
Slide 1: Exchange disclosure letter - IndusInd Bank
lnduslnd Bank October 30, 2020 To, National Stock Exchange of India Ltd. (Symbol: INDUSINDBK) BSE Ltd. (Scrip Code: 532187) India International Exchange (Scrip Code: 1100027) Singapore Stock Exchange Luxembourg Stock Exchange Madam/ Dear Sir, Sub: Disclosure under SEBI (Listing Obligations and Discl
Slide 2: Investor Presentation Q2-2020-21
Investor Presentation Q2-2020-21 October 30, 2020
Slide 3: Q2 – FY21 Performance Highlights
Strengthened capital position by raising Rs. 3,288 crs; Capital Adequacy stands at 16.55% PPOP at Rs 2,852 crs, grew by 9% YoY; PPOP / Assets at 3.66% amongst the industry highest Q2 – FY21 Performance Highlights NII at Rs. 3278 crs ; up by 13% YoY NIM at 4.16% up by 6 bps YoY Consol PAT a
Slide 4: How We Measure Up On Key Metrics
How We Measure Up On Key Metrics Net Interest Margin (NIM) RoA RoE 4.25% 4.28% 17.26% 4.10% 4.15% 4.16% 15.62% 1.98% 1.82% 0.85% 7.12% 0.69% 5.86% 0.42% 3.69% Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Cost / Income Net NPA Revenue / Empl
Slide 5: Ratings
Ratings Domestic Rating: CRISIL AA + for Infra Bonds program CRISIL AA for Additional Tier I Bonds program CRISIL A1+ for certificate of deposit program / short term FD programme IND AA+ for Senior bonds program by India Ratings and Research IND AA for Additional Tier I Bonds program by In
Slide 6: Consolidated Financial Performance
Consolidated Financial Performance 5
Slide 7: Steady Headline Numbers for Q2 FY21
Steady Headline Numbers for Q2 FY21 Y-o-Y Growth Q-o-Q Growth Net Interest Rs. 3,278 crs 13% (1%) Income Total Fee Income Rs. 1,554 crs (10%) 2% Revenue Rs. 4,832 crs 4% 0% Operating Profit Rs. 2,852 crs 9% (3%) Net Profit Rs. 663 crs (53%) 30% 6
Slide 8: Top line momentum
Top line momentum Y-o-Y Growth Q-o-Q Growth Advances Rs. 2,01,247 crs 2% 2% Deposits Rs. 2,27,884 crs 10% 8% CASA Rs. 91,846 crs 7% 9% TD Rs. 1,36,038 crs 12% 7% Borrowings Rs. 52,385 crs 18% (12%) 7
Slide 9: Balance Sheet
Balance Sheet (Rs Crs) * Q2FY21 Q2FY20 Y-o-Y (%) Q1FY21 Q-o-Q (%) Capital & Liabilities Capital 756 693 9% 694 9% Reserves and Surplus 38,244 32,171 19% 34,134 12% Share Warrant Subscription money 674 674 - 674 - Deposits 2,27,884 2,07,193 10% 2,11,265 8% Borrowings 52,385 44,558 18%
Slide 10: Profit and Loss Account – Q2 FY21
Profit and Loss Account – Q2 FY21 (Rs Crs) Q2FY21 Q2FY20 Y-o-Y (%) Q1FY21 Q-o-Q (%) Net Interest Income 3,278 2,909 13% ▲ 3,310 (1%) ▼ Other Income 1,554 1,727 (10%) ▼ 1,520 2% ▲ Total Income 4,832 4,636 4% ▲ 4,830 - ▲ Operating Expenses 1,980 2,013 (2%) ▼ 1,902 4% ▲ Operating Profit 2,852 2,623 9%
Slide 11: Profit and Loss Account – HY FY21
Profit and Loss Account – HY FY21 (Rs Crs) HYFY21 HYFY20 Y-o-Y (%) Net Interest Income 6,587 5,753 14% ▲ Other Income 3,075 3,390 (9%) ▼ Total Income 9,662 9,143 6% ▲ Operating Expenses 3,882 3,929 (1%) ▼ Operating Profit 5,780 5,214 11% ▲ Provisions & Contingencies 4,224 1,168 261% ▲ Profit before
Slide 12: Key Financial Indicators
Key Financial Indicators Q2FY21 Q2FY20 Q1FY21 Return on Assets 0.85% 1.98% 0.69% PPOP / Average Assets 3.66% 3.57% 3.95% Return on Equity 7.12% 17.26% 5.86% Cost / Income Ratio 40.98% 43.42% 39.38% Net Interest Margin 4.16% 4.10% 4.28% Net NPA 0.52% 1.12% 0.86% EPS (annualized, Rs. per share) 37.20
Slide 13: Well Diversified Loan Book
Well Diversified Loan Book Loan Book (Rs crs) 193,520 197,113 2,01,247 186,394 144,954 44% 42% 42% 61% 61% (Rs crs) 56% 58% 58% Consumer Finance Sep-20 39% 39% Vehicle Loans 59,214 30% FY18 FY19 FY20 Jun-20 Sep-20 Comm. Vehicle Loans 23,932 12% FY18 and FY19 are not Consumer Finance Division Corpora
Slide 14: Diversified Corporate Loan Book
Diversified Corporate Loan Book Sector % Lease Rental 4.41% Real Estate - Commercial and Residential 3.56% Steel 3.16% Gems and Jewellery 3.11% NBFCs (other than HFCs ) 2,14% Power Generation – Renewable 1.78% Housing Finance Companies 1.12% Services 1.07% Telecom- Cellular 1.04% Other Industry 21.0
Slide 15: Vehicle Finance Segment Wise Collection Update
Vehicle Finance Segment Wise Collection Update September Collection Efficiency 98.7% 98.4% 95.6% 95.4% 94.3% 92.1% 89.2% 82.4% Cars Construction LCV MHCV Overall Tractors 2-Wheelers SCV Equipments Vehicles 14
Slide 16: Microfinance Performance Update
Microfinance Performance Update 99.9% Cumulative Collection Efficiency 99.2% customers resumed Collection Efficiency % for 2.7 mn new loans (May – Oct) payment since Lockdown 99.84%* 93% 99.2% 91% Cumulative Collection Efficiency Sep'20 Oct'20 Paying Customers % * For entire portfolio originated in
Slide 17: Well Rated Corporate Portfolio
Well Rated Corporate Portfolio P 24% E R 22% C E 20% Investment Grade Sub Investment Grade N T 18% O 16% F 14% Unsecured Non Fund Based % R A 12% Secured Non Fund Based % T E 10% Unsecured Fund Based % D 8% Secured Fund Based % P O 6% R T 4% F O 2% L I 0% O IB1 (AAA) IB2+ IB2 (AA) IB2- (AA-) IB3+ (A
Slide 18: Improving CASA profile
Improving CASA profile Building CASA traction Expanding branch network CASA Focus on target market segments 50% 43.1% 42.4% 1,00,000 41.5% 40.4% 40.0% 40.3% 44% Government business 90,000 38% Capital market flows 91,865 33% 80,000 91,846 86,539 Key Non Resident markets 85,838 84,473 27% 70
Slide 19: Other Income
Other Income (Rs Crs) Q2FY21 Q2FY20 Y-o-Y (%) Q1FY21 Q-o-Q (%) Core Fee 1,061 1,468 (28%) ▼ 682 56% Securities/MM/FX 493 259 90% 838 (41%) ▼ Trading/Others Total 1,554 1,727 (10%) ▼ 1,520 2% 18
Slide 20: Diverse Revenues from Core Fee Income
Diverse Revenues from Core Fee Income (Rs Crs) Q2FY21 Q2FY20 Y-o-Y(%) Q1FY21 Q-o-Q(%) Trade and Remittances 152 182 (16%) 116 31% Foreign Exchange Income 228 277 (18%) 155 47% Distribution Fees (Insurance, MF, 323 322 - 174 86% Cards) General Banking Fees / PSL 123 126 (2%) 109 13% L
Slide 21: Diversified and Granular Fee Streams – Q2 FY21
Diversified and Granular Fee Streams – Q2 FY21 Corporate Banking Consumer Banking Trading and Other Income (21%) (48%) (31%) Trade and Remittances , 8% Trade and Remittances , 2% Investment Banking - Foreign Project Finance / Exchange, Advisory, 1% 7% Foreign Investment Banking - Investment Exchange
Slide 22: Yield / Cost Movement
Yield / Cost Movement 11.97% 11.85% 9.10% 9.38% Yield on Assets Yield on Advances 5.58% 5.73% Cost of Deposits 4.94% 5.10% Cost of Funds Q2FY21 Q1FY21 •Yield on Assets/Cost of funds are based on Total Assets/Liabilities Segment-wise Yield Q2FY21 Q1FY21 Outstanding Yield Outstanding Yield (Rs crs) (%
Slide 23: Provisions held as on September 30, 2020
Provisions held as on September 30, 2020 Specific provision of Rs. 2,646 crs related to non-performing loans Provision of Rs. 2,155 crs related to COVID-19 Floating provisions of Rs. 70 crs other than related to COVID-19 Standard asset provision of Rs. 972 crs other than related to COVID-19
Slide 24: Credit Cost
Credit Cost (Rs Crs) FY18 FY19 FY20 Q1FY21 Q2FY21 HYFY21 Corporate Bank 468 2,134 1,893 907 419 1,326 Consumer Finance 433 585 1,136 259 201 460 Gross Credit Costs 901 2,719 3,029 1,166 620 1,786 Gross Credit Costs 62 146 146 59 31 89 (Basis Points on Advances) Net Credit Cost 856 2,689 2,973 1,157
Slide 25: Loan Portfolio - Movement in NPA and Restructured Advances
Loan Portfolio - Movement in NPA and Restructured Advances (Rs Crs) Q2FY21 Q1FY21 Corporate Consumer Total Corporate Consumer Total Opening Balance 3,388 1,711 5,099 3,416 1,731 5,147 Additions 13 386 399 1,225 312 1,537 Deductions 471 495 966 1,253 332 1,585 Gross NPA 2,930 1,602 4,532* 3,388 1,711
Slide 26: NPA Composition – Consumer Finance
NPA Composition – Consumer Finance (Rs Crs) Com. Const. Small HL/PL/ Q2 FY21 Utility TW Cars Tractor BBG/LAP Cards MFI Total Vehicle Equip. CV Others Gross NPA 440 53 76 66 223 65 70 189 34 28 358 1,602 Gross NPA % 1.82% 1.17% 0.90% 1.78% 3.80% 0.87% 1.27% 0.89% 0.40% 0.57% 1.58% 1.36% Com. Const. S
Slide 27: Strong Balance Sheet & Profitability Buffers in Place
Strong Balance Sheet & Profitability Buffers in Place Capital Adequacy Pre Provision Operating Profit Margin (Rs Crs) 5.9% 30 Sep 20 30 Jun 20 5.7% 5.2% 4.6% Credit Risk, CVA and UFCE 2,24,353 2,22,384 4.3% 0.8% 2.2% 4.6% 3.9% Market Risk 8,977 10,985 1.7% Operational Risk 28,353 28,353 3.8% 2.7% 3.
Slide 28: Distribution Expansion to Drive Growth
Distribution Expansion to Drive Growth Strengthening Distribution Infrastructure Dec 31, Mar 31, Jun 30, Sep 30, Particulars 2019 2020 2020 2020 Branches/Banking Outlets 1,851 1,911 1,911 1,910* BFIL Branches 2,163 2,071 2,079 2,144 Vehicle Finance Marketing 859 853 854 841 Outlets Total 4,873 4,835
Slide 29: Shareholding Pattern
Shareholding Pattern Paid up Capital as of September 30, 2020 Promoters# MFs / Banks/ 13.45% Insurance Co 15.79% Individuals 9.07% Private Corporates 2.93% NRIs/ Director/ FIIs* Others 47.46% GDR issue 2.91% 8.39% *includes FPIs # 14.92% with diluted capital including warrants/ESOP 28
Slide 30: Thank You
Thank You | oe UNS Indusind Bank 29
Slide 31: 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