Indusind Bank Ltd. · NSE:INDUSINDBK
Indusind Bank — Q1 FY2025 Earnings Presentation
46 slides from Indusind Bank's earnings presentation, Jul 26, 2024
Slide 1: Stock exchange intimation letter for investor presentation
July 26, 2024 National Stock Exchange of India Ltd. (Symbol: INDUSINDBK) BSE Ltd. (Scrip Code: 532187) Luxembourg Stock Exchange Madam / Dear Sir, Sub.: Investor Presentation on the Unaudited Standalone and Consolidated Financial Results for the quarter ended June 30, 2024 Ref.: Disclosure under Reg
Slide 2: Investor Presentation Q1-FY25
Investor Presentation Q1-FY25 | JUNE 2024 July 26, 2024
Slide 3: IndusInd Bank at a Glance
IndusInd Bank at a Glance 5th Largest Private Bank ₹3,47,898 crs ₹ 3,98,513 crs 41 mn 7,026 with Disproportionately Loans Deposits Customers Group Network Large Distribution Network Diversified Across Products and Geographies` Across Segments Pan India Universal Banking Approach 55:45 Loan Mix 37% C
Slide 4: Key Financial Highlights for Q1 FY25
Key Financial Highlights for Q1 FY25 Loans Deposits CASA Term Deposits Total Assets Balance ₹3,47,898 crs ₹3,98,513 crs ₹1,46,134 crs ₹2,52,379 crs ₹5,30,165 crs Sheet 15% YoY 1% QoQ 15% YoY 4% QoQ 6% YoY - QoQ 21% YoY 6% QoQ 14% YoY 3% QoQ Net Interest Income Total Other Income Revenue Operating Pr
Slide 5: Consolidated Balance Sheet
Consolidated Balance Sheet ₹In crs Q1FY25 Q1FY24 Y-o-Y (%) Q4FY24 Q-o-Q (%) Capital & Liabilities Capital 779 776 - 778 - Reserves and Surplus 64,799 56,368 15% 62,429 4% Deposits 3,98,513 3,47,047 15% 3,84,586 4% Borrowings 44,169 45,623 (3)% 47,611 (7)% Other Liabilities and Provisions 21,905 17,1
Slide 6: Consolidated Profit and Loss Account – Q1 FY25
Consolidated Profit and Loss Account – Q1 FY25 ₹In Crore Q1FY25 Q1FY24 Y-o-Y (%) Q4FY24 Q-o-Q (%) Net Interest Income 5,408 4,867 11% 5,376 1% Other Income 2,441 2,210 10% 2,508 (3)% Total Income 7,849 7,077 11% 7,884 - Operating Expenses 3,897 3,246 20% 3,803 2% Operating Profit 3,952 3,830 3% 4,08
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 Loan Book Mix (₹crs) (₹crs) 3,01,317 3,15,454 3,27,057 3,43,298 3,47,898 Consumer Banking June-24 % Vehicle Finance 89,818 26% 46% 45% 45% 44% 45% Commercial Vehicle 33,834 10% PV 26,629 8% Small CV 4,060 1% 54% 55% 55% 56% 55% Two-Wh
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% 4% Tractor Market Leader 9% 35+ Years of Vintage Focus on Business CV in Most Products 38% Across Credit Cycles Owne
Slide 11: Microfinance: Bridging the Financial Inclusion Gap
Microfinance: Bridging the Financial Inclusion Gap Micro Finance Loan Book (₹crs) 39,192 35,761 37,046 34,363 31,981 2nd Largest 13 mn 1.60 Lacs Villages 16% YoY Micro Finance BFIL Customers covered across 21 Lender States (5)% QoQ Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Average Loan Outstanding per
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 1,57,273 1,52,053 1,43,154 1,46,587 1,39,437 21% 23% 23% 25% 13% YoY 29% 28% 29% 28% 3% QoQ 27% 27% 26% 26% 20% 19% 19% 18% 3% 3%
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) 16,732 16,683 15,894 15,364 14,807 11,169 10,811 10,181 10,470 9,953 13% YoY 12% YoY - QoQ 3% QoQ Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Credit Cards (₹crs)
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 (%) 3,98,513 45% 44% 44% 3,84,586 44% 43% 3,68,793 3,59,548 3,47,047 16% YoY 15% YoY 1,50,691 3% QoQ 4% QoQ 1,57,187 1,
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 % 40% 39% 38% 38% 37% 14% 14% 14% 12% 12% 1,41,924 1,45,666 1,46,134 1,38,440 1,41,437 49,343 49,910 50,044 6% YoY 46,989 48,475 (2)% YoY - QoQ 3% QoQ Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q1
Slide 17: Borrowings Constituted by Long Term Sources
Borrowings Constituted by Long Term Sources Borrowings (₹crs) Borrowings Mix (%) Short-Term Infrastructure Borrowings (₹Cr) % of Total Liabilities FCY (less Bonds than 12 3% months) 10% Tier 2 Bonds 6% 10% 8% 8% 9% 8% 45,622 47,611 44,169 40,473 40,530 Refinance from Long-Term Development FCY Financ
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) Notional Amount Risk Weighted Assets LC - Usance One of the largest treasuries 10% in Indian banks with best-in- LC - Sight 5% class risk management 15,02,171 Financial systems Guarantees 45% 1.2%# 0.5%#
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 Yield on Assets 12.57% 12.66% Yield on Advances Cost of Deposits 9.87% 9.85% Cost of Funds 6.53% 6.48% 5.62% 5.59% Q1FY25 Q4FY24 Segment-wise Yield: Q1 FY25 Q4 FY24 Outstanding (₹crs) Yield (%) Outstanding (₹crs) Yield (%) Corporate Banking 1,57,273 8.96% 1,52,053 9.01% Consume
Slide 22: Diversified and Granular Fee and Other Income Streams
Diversified and Granular Fee and Other Income Streams ₹In crs Q1FY25 Q1FY24 Y-o-Y(%) Q4FY24 Q-o-Q(%) Trade and Remittances 268 233 15% 239 13% Foreign Exchange Income 205 262 (22)% 235 (13)% Cards and Distribution Fees 659 637 3% 864 (24)% General Banking Fees 600 382 57% 294 104% Loan Processing Fe
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 (%) 4.29% 4.29% 4.29% 4.26% 4.25% 2.0% 2.0% 1.9% 1.9% 1.9% Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Operating Profit Margin (%) Cost to Income Ratio (%) %
Slide 24: Key Financial Indicators
Key Financial Indicators Return on Assets (%) Return on Equity (%) 1.90% 1.90% 1.93% 1.90% 1.70% 15.24% 15.33% 15.45% 15.23% 13.52% Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Earning Per Share – Annualized (₹) Net Worth (₹ crs) 61,445 63,815 56,198 58,841 118.4 1
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 Q1FY25 Q4FY24 ₹In crs Corporate Consumer Total Corporate Consumer Total Opening Balance 2,314 4,379 6,693 2,218 4,159 6,377 Fresh Additions 48 1,488 1,536 162 1,266 1,428 Deductions 57 1,045 1,102 66 1,046 1,112 -Write-offs 9 605 614 29 473 502 -Upgrades 13 100 113
Slide 27: NPA Composition – Consumer Banking
NPA Composition – Consumer Banking (₹crs) Q1 FY25 CV CE Small CV TW PV Tractor BBG/LAP Cards MFI Others Total Gross NPA 364 64 73 364 82 118 890 334 1,988 545 4,822 Gross NPA % 1.07% 0.54% 1.77% 7.05% 0.31% 1.37% 3.14% 3.07% 5.16% 2.13% 2.49% Q4 FY24 CV CE Small CV TW PV Tractor BBG/LAP Cards MFI Ot
Slide 28: Loan Related Provisions held as on June 30, 2024
Loan Related Provisions held as on June 30, 2024 Specific provision of ₹ 4,962 crs for non-performing accounts(towards PCR) Floating provisions of ₹ 70 crs (towards PCR) Standard contingent provisions of ₹ 1,000 crs (surplus outside PCR) Standard asset provisions of ₹ 1,505 crs other than co
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 (%) 16.44% 16.33% 16.07% 16.15% 15.82% Capital Adequacy ₹In crs 30 June 24 31 Mar 24 Credit Risk, CVA and UFCE 3,36,917 3,27,803 Market Risk 3,212 7,148 Operational Risk 48,709 48,709 Total Risk Weighted Assets 3,88,838 383,660 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 C
Slide 31: Shareholding Pattern and Credit Ratings
Shareholding Pattern and Credit Ratings Diversified Shareholding Credit Ratings Domestic Rating: GDR issue CRISIL AA + for Infrastructure Bonds program/Tier 2 Bonds NRIs/ Director/ 7.86% Others Promoters CRISIL AA for Additional Tier 1 Bonds program 2.22% 15.09% Individuals CRISIL A1+ for cert
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 June 30, Sep 30, Dec 31, Mar 31, June 30, Particulars 2023 2023 2023 2024 2024 ~41 mn ~1,60,000 Branches/Banking Outlets 2,606 2,631
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: INDIE completes 1 Year: Bringing a better way to Bank
INDIE completes 1 Year: Bringing a “better way to Bank” with several industry firsts and award winning innovations Impact on migrated customers post migration* 35% Liabilities per client 22% Transactions per client Includes existing clients who have migrated to INDIE *Impact on migrated clients comp
Slide 36: Digital Platforms drive superior customer engagement
Digital Platforms continued to drive superior customer engagement and transformation of existing businesses 100% credit cards sourced digitally 3 Mn+ Monthly Active Users Introduced new 98% personal loans sourced digitally 30% Increase in volume of feature “Sub Users” to assist merchants to recurrin
Slide 37: Digital Business – Unassisted Digital & Digital Partnerships led growth
Digital Business – Unassisted Digital & Digital Partnerships led business continues to grow at a healthy rate YoY Assets grew 2X YoY, Liabilities grew 1.35X YoY 200,000 + clients acquired Assets Balance Sheet (indexed) Liabilities Balance Sheet (indexed) 250 150 200 1.35x 2x 150 100 200 135 100 Crea
Slide 38: 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 39: ESG highlights for Q1 of FY25
ESG highlights for Q1 of FY25 Strengthened ESMS framework ESG ratings update ESG Operations update On May 24, 2024, The Morgan Stanley Key highlights of Employee Bank’s Board approved an upgraded Capital International (MSCI) has Volunteering activities in the and robust ESG Risk Assessment upgraded
Slide 40: 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 41: Board of Directors with Diverse Expertise
Board of Directors with Diverse Expertise Name Nature of Directorship Special Knowledge /Expertise Prior Experience Mr. Sunil Mehta has over forty years of proven leadership experience in banking, financial services, insurance and investments with leading global and domestic financial institutions.
Slide 42: 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 36+ America and ABN AMRO Mr. Arun Khurana Executive Director & Deputy
Slide 43: Awards & Accolades
Awards & Accolades IndusInd Bank
Slide 44: Great Place To Work
Great Place To Work Great Place To Work IndusInd Bank was recognized as a Great Place To Work for March 2024 to March 2025 43
Slide 45: Other awards
Other awards IBSi Digital Banking Awards 2024 Infosys Finacle Innovation Awards Banking Frontiers Finnoviti Digital Customer Experience 2024 Awards 2024 (Digital CX) Awards 2024 IndusInd Bank has been recognized for “Customer & Program Impact” at IBL has won the honors that recognize IndusInd Bank w
Slide 46: 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