debt investor presentation - indusind.com · debt investor presentation june 2017. indusind bank...

Debt Investor Presentation

June 2017

IndusInd Bank – Consistently Building Scale with Profitability

Strength Growth Returns

CRAR at 15.31%; CET1 at 14.02%; Further raised

AT1 of Rs 10 billion in April 2017

Strong Asset Quality with impaired assets

proportion amongst the lowest in Indian banks;

Net NPAs at 0.39%

In top decile on productivity, profitability and

efficiency parameters in Indian banking industry

3 Year CAGR FY17

Loans 27% 28%

Deposits 28% 36%

Revenue 29% 31%

Profits 27% 25%

Networth 33% 17%

RoA = 1.86%

RoE = 15.26%

NIMs = 3.99%

Note: Data as of FY17

2

Revenue (Rs mn) Net Profit (Rs mn) Total Assets(Rs bn)

47,812

58,241

78,135

1,02,341

FY14 FY15 FY16 FY17

14,080

17,937

22,865

28,679

FY14 FY15 FY16 FY17

870

1,091

1,429

1,787

FY14 FY15 FY16 FY17

Benchmarking Revenue, Risk & Returns

IBL performance is in top decile when comparing with the top 5 Public Sector (PSU) and top 5 Private Sector Banks (PB)

Data as of FY17. (Banks’ nomenclature not in any particular order) 3

Overview of the Bank

Leading private sector bank and financial services company in India

Incorporated in January, 1994; Current customer base of ~9.5 million(1)

Pan India presence through a network of 1200 branches and 1,988 ATMs(1)

Diversified loan book – Split between Corporate & Commercial Banking and

Consumer Finance at 60% and 40% respectively(1)

Enterprise-wide Risk Management framework for effective management of

risks

Total Assets of over Rs 1,786 bn(1) and Market Cap of over Rs 900 bn(2)

Promoters15%

MFs / Banks/

Insurance Co

12%

FIIs43%

Private Corporates

10%

Individuals7%

NRIs/ Director/

Others2%

GDR issue11%

Shareholding (1)

1. As on March 31, 20172. As on June 08, 2017

4

Over 20 years of Operating History

New Management team headed by Mr. Romesh Sobtiinducted from ABN AMRO Bank NV

New Launch/Rollout: Investment Bank, 3rd PartyDistribution Platform, Warehouse Receipt Finance

GDR – raised USD 52mn (Jun 2008); QIP – raised Rs4,803 mn (Aug 2009) & Rs 11,728 mn (Sept 2010)

Acquired Deutsche Bank’s credit card business in IndiaPre-2008

Planning Cycle I: FY09-FY11

Incorporated in 1994; Promoted by a groupof Non Resident Indians

IPO – raised Rs 1,800 mn (Dec 1997); GDR –raised USD 34mn (Mar 2007)

Ashok Leyland Finance Ltd, an NBFC mergedwith the Bank

New products /segments launched – PrepaidForex cards, Tractor financing, MFI through Partnership Model

Implemented Finacle 2.0 core banking system

QIP – raised Rs 20,006 mn (Dec 2012)

Innovations introduced – Instant Redeem, Direct Connect & Cash On Mobile, My Account My Number

Planning Cycle II: FY12-FY14

Launched new Non-vehicle retail products; Started operations in GIFT City

Implemented systems for Treasury, Trade Finance and Fraud Analytics

Acquired Diamond financing business of RBS in India

Capital Raise : QIP of Rs 43,280 mn and Preferential Issue of Rs 7,530 mn; AT1 of Rs 10,000 mn

Innovations introduced – Video Branch, Fingerprint Banking; Revamped Mobile App

Planning Cycle III: FY15-FY17

5

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

IND A1+ for Short Term Debt Instruments by India Ratings and Research

1. Indian subsidiary of S&P2. Indian subsidiary of Fitch

6

Organization Structure

Product Groups

Client Groups

Consumer Banking Corporate Banking

Consumer Finance

Retail Liabilities

Corporate & Investment Banking

Commercial Banking

Business Banking

Public Sector Unit

Banking Channel Management & Services

Wealth Management & Third Party Distribution

Global Markets Transaction Banking

Bu

sin

ess

Un

its

Financial Institutions Group

Credit Cards

7

Investment Highlights

Universal Banking Offerings

Growing Liability and Fee Franchise

Focused Execution on Risk, Operations and Portfolio

Well Defined Expansion Strategy

History of Technology Refresh and Innovation

Stable Asset Quality

Experienced Management Team

1

2

3

4

5

6

7

8

Planning Cycle 4 Strategy

Well Defined Expansion Strategy1

Market Share with ProfitabilityDo More of the Same

Strategy

Digitize to Differentiate, Diversify and Create Domain Leadership

Bro

ad

Th

em

es

Financing Livelihoods

Finding Customers from Within

Reengineering Our Businesses

Sustainable Banking

9

Strategic Themes


Internal

Collaboration

and Cross Sell

Enriching

Client

Experience

Digitization

of Businesses

Focus on

ProductivitySustainability

Rebalancing

of Loan Book

Rural

Banking and

Microfinance

10

Pillars of Growth


CASA Ratio

Revenue Growth

RoRWA

Branch Network

Loan Growth

40%

Exceed Balance Sheet Growth

> 2.4%

2,000

25% - 30%

Re

sult

ing

in

Customer Base Double to >20mn

11

The Core Executive Team

Experienced Management Team 2

Name Designation Prior Experience

Mr. Romesh Sobti Managing Director & CEO Over 40 years banking career with ABN AMRO Bank N.V., ANZ Grindlays Bank Plc & State Bank of India

Mr. Paul Abraham Chief Operating Officer Managing Director of ABN AMRO Central Enterprise Services

Mr. Suhail Chander Head – Corporate & Commercial Banking Head – Consumer & Commercial Banking, ABN AMRO Malaysia & Singapore

Mr. Sumant Kathpalia Head – Consumer Banking Head – Consumer Banking, ABN AMRO Bank (India)

Mr. Kalpathi Sridhar Senior Executive Vice President - Risk Senior Vice President and Country Risk Officer, ABN AMRO Bank (India)

Mr. Ramaswamy Meyyappan Chief Risk Officer Chief Risk Officer at JP Morgan Chase Bank NA, Mumbai

Mr. S.V. Zaregaonkar Chief Financial Officer Joined IndusInd Bank in 1995 as Head – Operations; Chief Manager Dena Bank

Mr. Arun Khurana Head – Global Markets Group Regional Head Corporate Solutions Asia-Pacific Markets of RBS Singapore

Mr. S.V. Parthasarathy Head – Consumer Finance Executive Director, Ashok Leyland Finance Limited

Mr. Ramesh Ganesan Head – Transaction Banking Executive Director, ABN AMRO Bank (India)

Mr. Sanjay MallikHead – Investor Relations& Strategy

Director, BROTKO, his own financial services firm; Held prior positions at ANZ Bank, ABN AMRO Bank (India) and Standard Chartered Bank

Ms. Roopa SatishHead, Corporate, Institutions & Investment Banking

Head – Mid Markets (Western Region), ABN AMRO Bank (India)

Mr. Sanjeev AnandDeputy Head – Corporate& Commercial Banking

Head – Commercial Banking, ABN AMRO Bank (India)

Mr. Zubin Mody Head – Human Resources Head – HR, ICICI Lombard General Insurance Company Limited

12

Performance Across Key Financial Vectors

Experienced Management Team 2

QIP & Pref. Allot.Rs 5,081 crs

3.71

3.99

2014 2017

NIMs (%)

1.81

1.86

2014 2017

RoA (%)

17.4815.26

2014 2017

RoE (%)

47.1 46.7

2014 2017

Cost / Income (%)

13

0.330.39

2014 2017

Net NPAs (%)

3.0

4.0

2014 2017

Revenue per Employee (Rs mn)

Well Diversified Loan Book

Universal Banking Offerings3

Consumer Finance Mar-17

Comm. Vehicle Loans 15,606 13%

Utility Vehicle Loans 2,342 2%

Small CV 2,374 2%

Two Wheeler Loans 3,262 3%

Car Loans 4,665 4%

Tractor 1,813 2%

Equipment Financing 4,120 4%

Credit Card 1,704 2%

Loan Against Property 7,051 6%

BL, PL, GL, Others 2,592 2%

Total Advances 45,529 40%

Loan Book (Rs crs)

(Rs crs)(Rs crs)

*Includes Business Banking Rs. 8,273 crs managed by Consumer Banking

49% 45% 41% 42% 41% 40% 48%51%

55%59%

58%59%

60% 52%

44,321 55,102

68,788

88,419

1,02,770 1,13,081 1,13,081

FY13 FY14 FY15 FY16 Dec-16 Mar-17 Mar-17(BBG forming part

of Consumer)Consumer Finance Division Corporate & Commercial Banking

Corporate Banking Mar-17

Large Corporates 31,477 28%

Mid size Corporates 22,203 20%

Small Corporates* 13,872 12%

Total Advances 67,552 60%

BBG7%

Comm. Vehicle Loans 14%

Utility Vehicle Loans

2%

Small CV2%

Two Wheeler Loans

3%Car Loans

4%Tractor

2%

Equipment Financing

4%

Credit Card1%

Loan Against Property

6%BL,PL,GL

2%

Large Corporates28%

Mid Size Corporates

20%

Small Corporates5%

14

Well Distributed Vehicle Finance Portfolio


15

Andhra Pradesh 6%

●Assam 2%

●Bihar 2%

Chandigarh 0% ●

●Chhatisgarh 3%Dadra & Nagar

Haveli 0%

● Delhi 2%

Goa 1% ●

●Gujarat 5%

Haryana 5% ●

●Himachal Pradesh 1%

●J&K 0%

●Jharkhand 3%

Karnataka 4% ●

Kerala 9% ●

●Madhya Pradesh5%

●Maharashtra 7%

● Mizoram 0%

●Odisha 4%

● Pondicherry 0%

Punjab 3% ●

Rajasthan 10% ●

●Uttaranchal 0%

●West Bengal 5%

Sikkim 0%●

●Tamil Nadu 11%

Tripura 1%

●UP 6%

●

●

Geographical Distribution of Vehicle Finance Portfolio (Rs 342,122mn)– March 31, 2017

Two Wheeler loans

Car loans

M&HCV loans

Small CV & Utility Vehicle loans

LCV Loans

●Telangana 5%

● Manipur, 0% Tractor Loans

Comprehensive Corporate and Commercial Banking Offering


16

Distribution of Corporate & Commercial Banking Network Product and Service Offerings

Working Capital Finance

Short Term Finance

Bill Discounting

Export Credit

Term Lending

Buyer’s Credit / Supplier’s Credit

Asset based financing

Lease Rental Discounting

Supply Chain Finance

Warehouse Receipt Finance

Agri Finance

Inclusive Banking

Non FundBased Services

Value AddedServices

Letter of Credit

Bank Guarantees

Forward Contracts / Derivatives

Channel Financing / Associate Financing

Cash Management Services

Corporate Salary Accounts

Liability/ Investment Products

Commodity Finance

Project Finance

Forex / Derivative Desks

Fund BasedServices

Andhra Pradesh

AssamBihar

Punjab

Chandigarh

Chhatisgarh

Gujarat

Haryana

Jharkhand

Karnataka

Kerala

Madhya Pradesh

Maharashtra

Orissa

Rajasthan

West Bengal

Tamil Nadu

UP

●

Corporate & Institutions Banking

Public Sector Units

Business Banking Group

Commercial Banking

Goa

Tripura

Nagaland

Meghalaya

Pondicherry

Uttarakhand

HP

Non Fund Based Services

Structured Finance

Debt Syndication

Advisory Services

InvestmentBanking

Telengana

Diversified Corporate Loan Book


6.14%

5.08%

3.49%

2.52%

2.26%

2.02%

1.84%

1.68%

1.53%

1.32%

1.17%

1.03%

1.00%

28.67%

Gems and Jewellery

Lease Rental

Telecom- Cellular

Microfinance

Services

Real Estate

Steel

Constn related to infra.- EPC

Food Beverages / processing

Housing Finance Companies

Media,Entertainment & Advt

Airlines

Contract Construction-Civil

Other Industry

17

Improving CASA profile

Growing Liability and Fee Franchise4

CASA Uptick

Savings Account (SA)Current Account (CA)

11,563 15,868 19,691

25,300 32,724

46,646

27.3%29.3%

32.5%34.1% 35.2% 36.9%

10%

16%

21%

27%

33%

38%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

FY12 FY13 FY14 FY15 FY16 FY17

CASA (Rs crs) % of Total Deposits

6,869 8,835 9,776

12,356 15,478

19,609

16.2% 16.3% 16.2% 16.7% 16.6%15.5%

5%

7%

9%

11%

13%

15%

17%

19%

0

3,000

6,000

9,000

12,000

15,000

18,000

21,000


CA (Rs crs) % of Total Deposits

Building CASA traction

Expanding branch network

Focus on target market segments

Government business

Capital market flows

Key Non Resident markets

Self employed and Emerging Corporate businesses

Transaction Banking and CMS Mandates

Differentiated service propositions

4,694 7,033 9,915

12,944 17,246

27,037

11.1%13.0%

16.4%17.5% 18.5%

21.4%

-3.0%

1.0%

5.0%

9.0%

13.0%

17.0%

21.0%

25.0%

0

5,000

10,000

15,000

20,000

25,000

30,000


SA (Rs crs) % of Total Deposits

18

Efficient Distribution and Cross Sell


Life Insurance General Insurance Health Insurance Mortgage and Broking

19

Diversified Fee streams


Fee growth ahead of loan growth for last 7 years

Comprises a mix of retail and corporate fee incomes

Individual fee streams comprise of multiple drivers

Rs cr FY15 FY16 FY17

Trade and Remittances 265 323 439

Foreign Exchange Income 553 639 655

Distribution Fees (Insurance, MF, Cards) 385 491 715

General Banking Fees 171 185 232

Loan Processing fees 493 700 854

Investment Banking 334 472 594

Total Core Fee Income 2,201 2,810 3,489

20

Asset Quality Stability Across Cycles

Stable Asset Quality 5

1.23%

1.01% 0.98%1.03%

1.12%

0.81%0.87%

0.93%

FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17

0.50%

0.28% 0.27%0.31% 0.33% 0.31%

0.36%0.39%


Gross NPA

Focus on Secured LendingCredit Cost *

0.79%

0.61%

0.41%0.46%

0.41%

0.48%0.53%

0.59%


90.5% 89.4% 87.2% 88.1% 88.1%

FY13 FY14 FY15 FY16 FY17

Net NPA

* Net of recoveries21

Well Rated Corporate Portfolio

Stable Asset Quality 5

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%

24%

IB1(AAA)

IB2+(AA+)

IB2 (AA) IB2-(AA-)

IB3+(A+)

IB3 (A) IB3- (A-)

IB4+(BBB+)

IB4(BBB)

IB4-(BBB-)

IB5+(BB+)

IB5 (BB) IB5-(BB-)

IB6 (B) IB7 (C ) IB8 (C ) NPA (D)

Unsecured Non Fund Based %

Secured Non Fund Based %

Unsecured Fund Based %

Secured Fund Based %

PERCENT

OF

RATED

PORTFOLIO

Investment Grade Sub Investment Grade

22

Robust Risk Management Structure

Focused Execution on Risk, Operations and Portfolio6

Risk and Control SelfAssessment

Key Risk

Indicators (KRIs)

Loss Data Collection and Analysis

Risk Profiling of branches

Operational Risk Assessment Processfor New Products

Risk Events Reporting

Business ContinuityPlan

Separate groupmonitors nonperforming loans

Account-wisemonitoring &recovery mechanism

Quality check onentire credit process

Tracking of credit

rating

Tracking of portfolio quality

Proactive Monitoringof Risk & exposures

Daily valuation

VaR & PV01Based Limit

Online monitoring ofRisk sensitivities

Capital Charge on Market Risk, CVA Basel III Liquidity Standards – LCR, Liquidity Ratios

Liquidity Gaps monitoring – Daily

Duration-based gapapproach

Stress testing for Liquidity, interest and foreign exchangerisk

ALM System / FundTransfer Pricing

Risk Rating Modelsrevised and benchmarked against external rating

Basel II & III implementation

Internal Capital AdequacyAssessment Process(ICAAP)

Stress testingreinforced

Portfolio Management &Credit QualityMonitoringreinforced

Credit Risk values measurement reinforced – PD, LGD, EAD

Credit Appraisal/ Approval process

Credit standards

tightened

Credit Adminreinforced andcentralised in hubs

Early warningsignals / Exceptions tracking

Enhancedmonitoringmechanism

23

Credit Approval & Monitoring

Credit Risk Management

Market Risk Management & ALM

Operational Risk Management

Financial Restructuring & Reconstruction

Credit Quality Assurance & Loan

Review

Risk Organization

Comfortable Capital Adequacy


Rs cr 31 Mar 15 31 Mar 16 31 Mar 17

Credit Risk, CVA and UFCE 76,718 99,360 1,22,036

Market Risk 4,356 5,462 6,669

Operational Risk 7,855 11,466 14,824

Total Risk Weighted Assets 88,929 1,16,288 1,43,529

CET 1 Capital Funds 9,975 17,350 20,125

Additional Tier 1 Capital Funds - - 1,000

Tier 2 Capital Funds 776 669 842

Total Capital Funds 10,751 18,019 21,967

CRAR 12.09% 15.50% 15.31%

CET1 11.22% 14.92% 14.02%

Tier 1 11.22% 14.92% 14.72%

Tier 2 0.87% 0.58% 0.59%

Bank has maintained strong capital adequacy levels well in excess

of the minimum regulatory requirement

Raised Rs 10 billion of Additional Tier I (AT1) bonds in FY17 and

again in April 2017 to augment the Tier I ratio and position itself

strongly for the next phase of growth

The Bank is valued at 4.5x of FY17 book value (1)

12.3% 11.4%13.8% 12.7%

11.2%

14.9% 14.7%

3.6%2.5%

1.6%1.1%

0.9%

0.6% 0.6%

15.9%

13.9%

15.4%

13.9%

12.1%

15.5% 15.3%

FY11 FY12 FY13 FY14 FY15 FY16 FY17

Tier I Tier II

CRAR

24(1) Basis market cap as on June 8, 2017

Strong Funding and Liquidity Profile


Liquidity Coverage RatioDiversified Funding Sources

25

9,558 28,215

14,683 29,823

65.1%74.2%

66.4%70.7%

78.4% 81.1%

91.3% 94.6%

Jun

-15

Sep-1

5

Dec-1

5

Mar-1

6

Jun

-16

Sep-1

6

Dec-1

6

Mar-1

7

HQLA (Rs cr) Net Cash Outflow (Rs cr) LCR (%)

Net Worth12%

CA Deposits; 11%

SA Deposits; 15%

Retail & SME TD; 19%

Public Sector Units TD; 9%

Financial Institutions TD; 10%

Corporate TD; 4%

Capital Markets TD; 2%

Refinance; 8%

Infra Bonds; 1%

AT1 Bonds; 1%

Other Borrowings; 3%

Other Liabilities; 5%

Note: Data as on March 2017

Basel III Leverage Ratio

9.5% 9.7% 9.3% 9.2% 9.2% 9.1% 9.3%

Sep-1

5

Dec-1

5

Mar-1

6

Jun

-16

Sep-1

6

Dec-1

6

Mar-1

7

Required >4.5%

Required >80%

Excludes SLR securities not currently part of HQLA

Liabilities Match Funding Assets


Assets (Rs cr)Liabilities (Rs cr)

26Note: Data as on March 2017

Net Worth , 20,646

Refinance , 13,500

CASA, 46,646

Term Deposits, 79,927

Other Borrowings, 8,954

Other Liabilities, 8,976

Liabilities

Investments 36,702

Vehicle Term Finance 34,182

Non-Vehicle Retail Advances19,620

Corporate Banking Advances59,279

Cash and bank balances18,628

Other Assets10,237

Assets

Distribution Expansion to Drive Growth


Note: Numbers given above are total branches in each state.This does not include Branch/Representative Office in London, Dubai and Abu Dhabi.

602

1,200

2014 2017

Branches

4.5

9.5

2014 2017

Clients (mn)

27

Sustainable Banking: Good Ecology is good Economics!


28

Regulatory Compliance

Operational Compliance

Market Risk Management

Liquidity Management

AT-1 Capital Issuance

IT & Information Security

Reputation Risk

Management

Strategic Risk

Management

Environmental

Solar ATMs

Thin Servers

Waste Management

Green champions

LEEDs certified building

Financing Renewable

Energy

Afforestation Projects

Social

Water rejuvenation

projects

Micro Credit

Rural Branches

Para Champions

Priority sector compliance

Legal and Financial

literacy

Critical care support

Governance

Board Level CSR

Committee

6 Years of Sustainability

Reporting

Participation in CDP, DJSI

Surveys

Environmental Lending

Policy

Integrated Financial

Reporting

A

Innovation as a Service Differentiator

History of Technology Refresh and Innovation7

Channel

Innovation

Service

Innovation

Product

Innovation

Client

Experience Edge

29

Digitize to Differentiate, Diversify and Create Domain Expertise

History of Technology Refresh and Innovation7

30

Integrated Digital Strategy to extract significant value (14% of 2020 profit) via:

1. Agility & Innovation as Service Differentiator

2. Operating Efficiency in Front & Back Office

3. Evolution to Online/Digital Channels

4. Partnering with the Digital Ecosystems

5. Improved Decision Making & Analytics

6. Transform to Digital Offerings

7. Re-skilling Staff on Digital Technologies

India – Macro Update

31

India – Positive Macro Outlook

CRP = CURRENCY REPLACEMENT PROGRAM

Stylised representation of growth recovery cycle: Morgan Stanley Research

2013 2014 2015 2016 2017e

EXPORTS

CONSUMPTION

FDI

PUBLIC CAPEX

PRIVATE DOMESTIC CAPEX

MACRO ADJUSTMENT, WEAK TREND IN DOMESTIC DEMAND.

DOMESTIC DEMAND STILL WEAK. EXTERNAL DEMAND SLOWS SHARPLY.

MACRO ADJUSTMENT COMPLETE. GROWTH IMPROVES LED BY PUBLIC CAPEX AND FDI, WEAKNESS IN EXTERNAL DEMAND INTENSIFIES.

GROWTH RECOVERY BROADENS, WITH PICK UP IN CONSUMPTION. EXPORTS BACK ON RECOVERY TRACK FROM SEP-16. CRP IN NOV-16 DELAYED DOMESTIC DEMAND RECOVERY.

IMPACT OF CRP TO FADE FROM 2Q17. EXPORT RECOVERY STRENGTHENS, CONTINUED STRENGTH IN PUBLIC CAPEX / FDI. PRIVATE CAPEX RECOVERY EXPECTED IN 2018.

SHARP DECLINE IN GLOBAL COMMODITY PRICES, EM SHOCK

CRP SHOCK TO CONSUMPTION RECOVERY

32

Backed by Improving Fundamentals

33

Inflation Trending towards RBI Targets Resulting in Stable Currency

Fiscal Deficit Consolidation(%) and Also Current Account Deficit (%)

Forecast

Source: Morgan Stanley Research

34

Key reforms & developments in 2016-17 with long-term implications

A national Goods and Services tax (GST) regime to be implemented by July 2017. GST will create a common market, improve tax compliance, boost investment and growth. Potential to raise real GDP growth by a 0.5% to 2%.

A new Bankruptcy law enacted to improve the framework around closure of businesses and to facilitate recovery of bad loans.

A new monetary policy framework with an inflation target of 4% agreed between govt. and the RBI. Positive in the medium-term for macro-economic stability and for sustainable growth.

Demonetization initiative to curb the size of the informal economy and to widen the tax base.

FDI reform measures were implemented, allowing India to become one of the largest recipient. Net FDI inflows are now exceeding $30 billion annually.

Stability of policy environment buttressed by state elections according greater support for the central government. This will help improve the position of BJP in the Rajya Sabha by 2019.

Weak investment activity and bank NPA’s emerged as major challenges. Stressed loans (NPAs, restructured & potential bad loans) were around 16% of total by end of Dec. 2016, as per the Economic Survey 2017.

35

Emerging themes and areas of opportunities

India to remain the fastest growing large economy in the world until 2020, as per the IMF. Positive for overall credit growth, especiallyretail loans and mortgages.

Greater formalization, reduction in cash transactions and government’s efforts at financial inclusion. Positive for deposit mobilization,demand for credit products and micro finance.

Focus on raising farm incomes and productivity under govt.’s plan of doubling farm incomes by 2022. Positive for micro-finance, cold-chains, warehousing, food processing and other agri. dependent sectors.

GST regime will have a positive impact on logistics, commercial vehicles, warehousing and industrial manufacturing. Zero-rating ofexports will be particularly beneficial for export oriented sectors.

Push for renewable energy led by solar power. Government plans to scale up total capacity to 170 GWs with 100 GWs of solar power by2022. Tariffs for solar power has fallen below that of thermal.

Infrastructure development with focus on transportation including roads, railways and aviation.

Affordable housing push by the government, through fiscal incentives and other support measures.

Additional Information

36

Balance Sheet

* FY17 FY16 Y-o-Y (%)

Capital & Liabilities

Capital 598 595 1%

Reserves and Surplus 20,048 17,101 17%

Deposits 1,26,572 93,000 36%

Borrowings 22,454 24,996 (10%)

Other Liabilities and Provisions 8,976 7,205 25%

Total 1,78,648 1,42,897 25%

Assets

Cash and Balances with RBI 7,749 4,521 71%

Balances with Banks 10,879 5,591 95%

Investments 36,702 34,054 8%

Advances 1,13,081 88,419 28%

Fixed Assets 1,335 1,255 6%

Other Assets 8,902 9,057 (2%)

Total 1,78,648 1,42,897 25%

(Rs Crs)

37

Profit and Loss Statement

(Rs Crs)FY17 FY16 Y-o-Y (%)

Net Interest Income 6,063 4,517 34%

Other Income 4,171 3,297 27%

Total Income 10,234 7,814 31%

Operating Expenses 4,783 3,672 30%

Operating Profit 5,451 4,141 32%

Provisions & Contingencies 1,091* 672 62%

Profit before Tax 4,360 3,469 26%

Provision for Tax 1,492 1,183 26%

Profit after Tax 2,868 2,286 25%

*Includes a one-off provision of Rs 122.00 crs against a large corporate account classified as ‘Standard Advance’ pursuant tospecific RBI advice in this regard. The Bank’s exposure which is due for repayment in June 2017 relates to a bridge loan for aMerger & Acquisition transaction in cement industry.

38

Outline of Existing Borrowings

Name Date Tenor Rating Amount

Long Term Senior Infrastructure Bonds Dec-16 10 yearsAA+/ Stable by CRISIL and IND AA+/

Stable by India Ratings Rs.1500 crore (equiv.

USD 232mm)

IndusInd Bank- Rated , Listed, Non-convertible, Perpetual , Subordinated & Unsecured BASEL III compliant AT1 Bonds

Mar-17Apr-17

Perpetual (Call option on the 5th

Anniversary of the Deemed Dated of Allotment)

AA/Stable by CRISIL Ltd and IND AA/ Stable by India Ratings & Research

Private Ltd

Rs.2000 crore (equiv. USD 310mm)

Refinance - Development Financial Institution

May-17 3 yearsAgainst portfolio of eligible assets

constituting of Agri & SME Rs 4500crs (equiv.USD

700mm)

Overseas Private Investment Corporation (OPIC) – Multilateral Agency of the US Government

Jun-178 years

(3 years moratorium)Against funding for MSME USD 225mm

39* Based on swap rates as on June 8, 2017

Accolades

40

Award Winning Brand / Franchise

41

Business Today2016

“The Best CEO (BFSI)” Mr. Romesh Sobti

Forbes India2016

Forbes’ Super 50 Companies in India

BrandZ Top 50WPP Plc & Milward Brown

2016

Ranked 12th Most Valuable Indian Brands

Celent Model Bank 2017

Winner- Fraud Management and

Cybersecurity

Thank You

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 information contained herein has been independently verified by

anyone else. This presentation may not be copied, distributed, redistributed or disseminated, directly or indirectly, in any manner.

This presentation does not constitute an offer or invitation, directly or indirectly, to purchase or subscribe for any securities of the Bank by any person in any jurisdiction, including

India and the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or

subscribe for any securities. Any person placing reliance on the information contained in this presentation or any other communication by the Bank does so at his or her own risk

and the Bank shall not be liable for any loss or damage caused pursuant to any act or omission based on or in reliance upon the information contained herein.

No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or

opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Further, past performance is not necessarily

indicative of future results.

This presentation is not a complete description of the Bank. This presentation may contain statements that constitute forward-looking statements. All forward looking statements

are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement.

Important factors that could cause actual results to differ materially include, among others, future changes or developments in the Bank’s business, its competitive environment and

political, economic, legal and social conditions. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these

forward-looking statements. The Bank disclaims any obligation to update these forward-looking statements to reflect future events or developments.

Except as otherwise noted, all of the information contained herein is indicative and is based on management information, current plans and estimates in the form as it has been

disclosed in this presentation. Any opinion, estimate or projection herein constitutes a judgment as of the date of this presentation and there can be no assurance that future results

or events will be consistent with any such opinion, estimate or projection. The Bank may alter, modify or otherwise change in any manner the content of this presentation, without

obligation to notify any person of such change or changes. The accuracy of this presentation is not guaranteed, it may be incomplete or condensed and it may not contain all

material information concerning the Bank.

This presentation is not intended to be an offer document or a prospectus under the Companies Act, 2013 and Rules made thereafter , as amended, the Securities and Exchange

Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended or any other applicable law.

Figures for the previous period / year have been regrouped wherever necessary to conform to the current period’s / year’s presentation. Total in some columns / rows may not

agree due to rounding off.

Note: All financial numbers in the presentation are from Audited Financials or Limited Reviewed financials or based on Management estimates.43

debt investor presentation - indusind.com · debt investor presentation june 2017. indusind bank...

Documents