Indusind Bank Ltd. · NSE:INDUSINDBK
Indusind Bank — Q2 FY23 Earnings Presentation
47 slides from Indusind Bank's earnings presentation, Oct 19, 2022
Slide 1: Stock exchange disclosure letter
lnduslnd Bank October 19, 2022 National Stock Exchange of India Ltd. (Symbol: INDUSINDBK) BSE Ltd. (Scrip Code: 532187) Luxembourg Stock Exchange Madam/ Dear Sir, Sub: Disclosure under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 In compliance with Regulation 30 of SEBI (
Slide 2: Investor Presentation Q2-FY23
Investor Presentation Q2-FY23 | September 2022 October 19, 2022 lnduslnd Bank
Slide 3: IndusInd Bank at a Glance
IndusInd Bank at a Glance 5th Largest Private Bank ₹2,60,129 crs ₹ 3,15,532 crs 33 mn 6,103 with Disproportionately Loans Deposits Customers Group Network Large Distribution Network Diversified Across Products and Geographies Across Segments Pan India Universal Banking Approach 53:47 Loan Mix 42% CA
Slide 4: Key Financial Highlights for Q2 FY23
Key Financial Highlights for Q2 FY23 Loans Deposits CASA Term Deposits Total Assets Balance ₹2,60,129 crs ₹3,15,532 crs ₹1,33,525 crs ₹1,82,007 crs ₹4,26,575 crs Sheet 18% YoY 5% QoQ 15% YoY 4% QoQ 15% YoY 2% QoQ 14% YoY 6% QoQ 12% YoY 4% QoQ Net Interest Income Total Fee Income Revenue Operating Pr
Slide 5: Consolidated Balance Sheet
Consolidated Balance Sheet ₹In crs Q2 FY23 Q2 FY22 Y-o-Y (%) Q1 FY23 Q-o-Q (%) Capital & Liabilities Capital 775 774 - - 775 0% - Reserves and Surplus 50,109 44,552 12% 48,932 2% Deposits 3,15,532 2,75,288 15% 3,02,719 4% Borrowings 40,673 46,295 (12%) 41,812 (3%) Other Liabilities and P
Slide 6: Consolidated Profit and Loss Account – Q2 & H1FY23
Consolidated Profit and Loss Account – Q2 & H1FY23 ₹In Crore Q2FY23 Q2FY22 Y-o-Y (%) Q1FY23 Q-o-Q (%) H1FY23 H1FY22 Y-o-Y (%) Net Interest Income 4,302 3,658 18% ▲ 4,125 4% ▲ 8,427 7,222 17% ▲ Other Income 2,011 1,841 9% ▲ 1,932 4% ▲ 3,943 3,565 11% ▲ Total Income 6,313 5,500 15% ▲ 6,057 4% ▲ 12,370
Slide 7: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 8: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 9: Well Diversified Loan Book across Consumer and Corporate Products
Well Diversified Loan Book across Consumer and Corporate Products (₹crs) Loan Book Mix (₹crs) 2,20,808 2,28,583 2,39,052 2,47,960 2,60,129 Consumer Banking Sep-22 % Vehicle Finance 67,167 26% 45% 46% 46% 46% 47% Commercial Vehicle 25,340 10% Utility Vehicle 7,467 3% 55% 54% 54% 54% 53% Small CV 3,19
Slide 10: Vehicle Finance: Granular Portfolio Across Vehicle Categories
Vehicle Finance: Granular Portfolio Across Vehicle Categories Overview of Vehicle Finance Division Diversified Vehicle Loan Book across Vehicle Categories (%) Two Wheelers Small CV 6% 5% Market Leader Utility Vehicle 35+ Years of Vintage Focus on Business CV 11% in Most Products 38% Across Credit Cy
Slide 11: Microfinance: Bridging the Financial Inclusion Gap
Microfinance: Bridging the Financial Inclusion Gap Micro Finance Loan Book (₹crs) 30,612 29,403 29,617 28,115 27,443 2nd Largest 10mn 1.33 Lacs Villages Micro Finance Women Customers covered across 21 5% YoY Lender States 1% QoQ Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Average Ticket Size (₹) 29,
Slide 12: Corporate Portfolio – Focus on Granular, Higher Rated Customers
Corporate Portfolio – Focus on Granular, Higher Rated Customers Corporate Loan Book (₹crs) Improving Risk Profile * ■ BB+ & Below ■ BBB-, BBB, BBB+ ■ A-, A, A+ ■ AA-, AA, AA+ ■ AAA 1,21,766 1,14,429 1,09,463 1,05,481 99,079 23% YoY 25% 23% 23% 22% 15% 21% 24% 25% 27% 27% 27% 26% 6% QoQ 26% 24% 2
Slide 13: Non-Vehicle Retail Loans – Risk Calibrated Growth Strategy
Non-Vehicle Retail Loans – Risk Calibrated Growth Strategy Business Banking (₹crs) Loan Against Property (₹crs) 12,203 12,512 11,892 9,248 11,031 11,314 8,788 8,817 9,009 8,664 13% YoY 5% YoY 3% QoQ 3% QoQ Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Credit Cards (₹c
Slide 14: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 15: Deposit Growth Driven by Granular Retail Deposits
Deposit Growth Driven by Granular Retail Deposits; Building Stable Low-Cost Deposit Book Deposits (₹crs) Retail Deposits as per LCR (₹crs)* Retail Deposits Share of Retail Deposits (%) 41% 41% 3,15,532 41% 41% 40% 2,93,349 3,02,719 2,84,484 2,75,288 15% YoY 16% YoY 1,11,749 1,13,615 1,20,509
Slide 16: Healthy Share of CASA; Strong Liquidity Profile
Healthy Share of CASA; Strong Liquidity Profile CASA (₹crs) CA (₹crs) CASA Share of CASA % CA Share of CA % 14% 43% 42% 12% 42% 42% 43% 12% 12% 12% 44,157 1,30,508 1,33,525 36,507 35,265 1,25,333 32,587 33,279 1,15,863 1,19,894 36% YoY 15% YoY 2% QoQ 25% QoQ Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q
Slide 17: Borrowings Constituted by Long Term Sources
Borrowings Constituted by Long Term Sources Borrowings Mix (%) Borrowings (₹crs) Infrastructure % of Total Liabilities Bonds Borrowings (₹Cr) Short-Term FCY AT1 Bonds (less than 12 4% 4% months) 5% 13% Tier 2 Bonds 12% 12% 7% 10% 10% 47,323 46,295 45,669 41,812 40,673 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23
Slide 18: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 19: Strong Product Groups with Efficient Capital Deployment
Strong Product Groups with Efficient Capital Deployment LC-BG Mix Low RWA Consumption (₹crs) One of the largest LC - Usance treasuries in Indian banks Notional Amount Risk Weighted Assets 18% with best-in-class risk 11,29,838 LC - Sight Financial management systems 10% Guarantees 34% 0.6%# Robus
Slide 20: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 21: Yield / Cost Movement
Yield / Cost Movement 11.51% 11.39% 8.65% 8.35% ■ Yield on Assets ■ Yield on Advances 5.10% 4.79% 4.41% 4.14% ■ Cost of Deposits ■ Cost of Funds Q2FY23 Q1FY23 Segment-wise Yield: Q2FY23 Q1FY23 Outstanding (₹crs) Yield (%) Outstanding (₹crs) Yield (%) Corporate Banking 1,21,766 8.20% 1,14,429 7.80% C
Slide 22: Diversified and Granular Fee and Other Income Streams
Diversified and Granular Fee and Other Income Streams ₹In crs Q2FY23 Q2FY22 Y-o-Y(%) Q1FY23 Q-o-Q(%) Trade and Remittances 189 200 (6%) 189 - - Foreign Exchange Income 268 221 21% 220 22% Cards and Distribution Fees 559 360 55% 507 10% General Banking Fees 307 234 31% 334 (8%) Loan Pro
Slide 23: Operating Profit Margins Amongst the Highest in Industry
Operating Profit Margins Amongst the Highest in Industry Net Interest Margin (%) Total Fee to Asset Ratio (%) 1.9% 1.9% 1.9% 1.9% 1.9% 4.10% 4.20% 4.21% 4.24% 4.07% Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Operating Profit Margin (%) Cost to Income Ratio (%) 41
Slide 24: Key Financial Indicators
Key Financial Indicators Return on Assets (%) Return on Equity (%) 1.80% 14.45% 1.73% 13.44% 1.51% 11.92% 1.29% 1.35% 10.28% 10.88% Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Earning Per Share – Annualized (₹) Net Worth (₹ crs) 93.2 43,833 45,817 47,265 48,186 84
Slide 25: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 26: Movement in Non-Performing Assets
Movement in Non-Performing Assets Q2FY23 Q1FY23 ₹In crs Corporate Consumer Total Corporate Consumer Total Opening Balance 2,492 3,441 5,933 2,528 2,989 5,517 Fresh Additions 179 1,393 1,572 602 1,648 2,250 -from Standard 66 926 992 272 1,058 1,330 -from Restructured 113 467 580 330 590 921 Deduction
Slide 27: NPA Composition – Consumer Banking
NPA Composition – Consumer Banking (₹crs) Q2 FY23 CV Utility CE Small CV TW Cars Tractor BBG/LAP HL/PL/Others Cards MFI Total Gross NPA 511 34 128 67 358 55 140 773 205 160 885 3,316 Gross NPA % 2.00% 0.45% 1.44% 2.09% 8.02% 0.59% 1.62% 3.48% 1.59% 2.23% 2.91% 2.36% Q1 FY23 CV Utility CE Small CV TW
Slide 28: Loan Related Provisions held as on September 30, 2022
Loan Related Provisions held as on September 30, 2022 Specific provision of ₹ 3,913 crs for non-performing accounts(towards PCR) Floating provisions of ₹ 70 crs (towards PCR) Standard contingent provisions of ₹ 2,653 crs surplus outside PCR Standard asset provisions of ₹ 1,155 crs other than
Slide 29: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 30: Healthy Capital Adequacy
Healthy Capital Adequacy CET1 Ratio (%) 15.42% 15.96% 16.06% 15.97% Capital Adequacy 15.13% ₹In crs 30 Sep 22 30 Jun 22 Credit Risk, CVA and UFCE 2.65,073 2,56,767 Market Risk 8,372 8,325 Operational Risk 38,026 38,026 Total Risk Weighted Assets 3,11,471 3,03,118 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 C
Slide 31: Shareholding Pattern and Credit Ratings
Shareholding Pattern and Credit Ratings Diversified Shareholding Credit Ratings Domestic Rating: NRIs/ Director/ GDR issue CRISIL AA + for Infrastructure Bonds program/Tier 2 Bonds 8.19% Others 2.07% Promoters CRISIL AA for Additional Tier 1 Bonds program 15.16% Individuals 6.84% CRISIL A1+ fo
Slide 32: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 33: Disproportionately Large Distribution Network with Unparalleled Rural Presence
Disproportionately Large Distribution Network with Unparalleled Rural Presence Distribution Network with Deep Rural Presence Strengthening Distribution Infrastructure Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, Particulars 2021 2021 2021 2022 2022 ~33 mn ~1,33,000 Branches/Banking Outlets 2,015 2,103 2,
Slide 34: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 35: Digital Sourcing % continues to grow and digital unassisted business models gaining momentum
Digital Sourcing % continues to grow and digital unassisted* business models gaining momentum 98% of savings accounts 57% of personal loans opened digitally 63% of current 32% of savings accounts digitally unassisted* --ca ' opened digitally 46% of Small Business Banking accounts opened digitally (u
Slide 36: Focusing on building sustainable, profitable digital unassisted business models
Focusing on building sustainable, profitable digital unassisted (Customer Do It Yourself led) business models Indus Digitally Acquired Indus Digitally Acquired Credit Digitally Acquired Savings Accounts easy CREDIT Personal Loans easy CREDIT Cards Indexed DIY Volume – Savings Account Indexed DIY Vol
Slide 37: IndusMobile: Went live with tokenization and MAU and transactions continue to grow
IndusMobile: Went live with tokenization and MAU and transactions continue to grow Indus Mobile Live with tokenization on mobile app. Customers can: • View existing tokens • Suspend existing token IBL Mobile+UPI transaction volumes 220 200 increased ~2X Indexed mobile transaction volumes 201 - 70% •
Slide 38: Whatsapp Banking & Chatbots
Whatsapp Banking & Chatbots Whatsapp Banking: Registered Base of Chatbots: Monthly active users up 120% 5.3 Mn - up 71% YoY YoY million 71% 120% 3.1 5.3 100 220 Q2'FY22 Q2'FY23 Q2'FY22 Q2'FY23 Total Utterances increased by ~ 2.5X Indexed utterances Indexed monthly active user base 100 135 100 243 Q2
Slide 39: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Healthy Disproportionately Executing Digital ESG Experienced Ca
Slide 40: Sustainability: Core to Bank's Strategy
Sustainability: Core to Bank’s PC 5 Strategy Outlined a comprehensive ESG Strategy in 2022 integrating ESG with Business, Operations, Risk & Products Business Operations Enhanced exposure to ESG positive sectors Governance & Policies ESG sector development Monitor & Reduce Bank’s GHG intensi
Slide 41: What Really Matters
Select ESG initiatives for FY23 We are winning at What Really Matters Increase exposure to Green Increase share of Climate & lnduslnd B nk ls Planning for Carbon & Climate Finance to 3.5% Social Finance to 45% in proud to be the '8 t Bank for ESG - India' Neutrality by 2032 of book from the current
Slide 42: Key Strengths of the Bank
Key Strengths of the Bank Diversified Robust Strong Profitability Stable Loan Book with Domain Liability Franchise Product Groups amongst the Highest Asset Quality Expertise in Livelihood in Industry with Conservative Loans Provisioning Heathy Disproportionately Executing Digital ESG Experienced Cap
Slide 43: Board of Directors with Varied Expertise
Board of Directors with Varied Expertise Name Nature of Directorship Special Knowledge /Expertise Prior Experience Non-Executive, Non- Banking, Finance, Human Previously, CMD of Union Bank of India, Executive Director of Allahabad Bank, Mr. Arun Tiwari Independent, Part-time Resource, Risk Managemen
Slide 44: Experienced and Well-knit Management Team
Experienced and Well-knit Management Team Name Designation Exp (Yrs) Prior Experience Career banker with years of rich experience in large multi-national banks such as Citibank, Bank of Mr. Sumant Kathpalia Managing Director & CEO 30+ America and ABN AMRO Mr. Arun Khurana Deputy CEO 28+ Regional Hea
Slide 45: Accolades
Accolades ET CX AWARD 2022 ‘Governance Now 5th India BFSI Conclave & Awards’ IndusInd Bank was recognized as one of the most customer centric IndusInd Bank awarded by brand and was awarded at the 3rd ‘Governance Now’ under the category Edition of ET CX Summit 2022 – ‘SME Connect’ for initiating ‘Ind
Slide 46: Campaigns/Announcements
Campaigns/Announcements Launch of #BankOnHappiness Festive campaign – Debit and Credit cards DEBIT CARD CREDIT CARD LOANS lnduslnd Bank lnduslnd Banlt lnduslnd Bank 100% #BankOn cashback. Happiness . . . . . . . MNOll'I ~ 100% ........ ..... ~CMOI sparkling festivities. Make Everything #BankOnHappin
Slide 47: 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