investor presentation - aceanalyser.com meet/132187_20120710.pdfindusind bank’s equity shares are...

Investor Presentation

July 10, 2012

2

Disclaimer

Certain statements in these slides are forward-looking statements. These

statements are based on management's current expectations and are subject

to uncertainty and changes in circumstances.

Please also refer to the statement of quarterly financial results required by

Indian regulations that has been filed with the stock exchanges in India where

IndusInd Bank’s equity shares are listed and is available on our website

www.indusind.com.

http://www.indusind.com/





Net Interest Income grew 24% Y-o-Y & 4% Q-o-Q inspite of stressed Money Markets

Non-Interest Income to revenue remains healthy at 40%

Consistent growth in Core Fee Income 44% Y-o-Y & 2% Q-o-Q

Credit growth above industry 31% Y-o-Y & 6% Q-o-Q

Low exposure to stressed / sensitive sectors

Net NPA 0.27%; PCR 72.64%; Restructured Advances 0.24%

Q1

FY

13 P

ER

FO

RM

AN

CE

HIG

HL

IGH

TS

Steady performance in deteriorating macro economic environment

Credit cost at 12 bps

4

5

Theme for Planning Cycle II - 2011-14 – ‘Invest to grow’ phase

Scale with Profitability

6

Planning Cycle II – Pillars of Growth

Growing

Consumer

Finance book

To grow beyond Rs. 25,000 crs by Year 3

To be funded through CASA

CASA growth CASA to reach > 35% by Year 3

Manage CD

Ratio

CD ratio > 75% < 80%

Deposits to be put to efficient use

Fee Growth Fee growth to exceed Loan Growth

Increased focus on (New) fee enhancers

Loan growth Loan book to grow 25%-30% p.a.;

well above market growth.

Cons. Finance book

Rs. 18,761 crs Growth 48%

Growth-26%

CASA-28%

83%

Fee Growth

48%

31%

Q1-13 outcome

7

Planning Cycle II – Key Initiatives

Used Commercial

Vehicles

Scale up Investment

Banking practice Credit Cards

Launched

Full suite Assets

Portfolio

(LAP / Home Loans)

New Client Acquisition

Ramp-up

Offshore branches,

NRE Deposits

Supply

Chain Products

New Branch rollouts

& Currency Chests CBS rollout

8

8

How We Measure Up On Key Metrics

8

Net Interest Margin (NIM) RoA RoE*

Cost to Income Ratio Net NPA

Consistent delivery of strong operating performance

3.41% 3.35%

3.25% 3.29% 3.22%

Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13

1.59%

1.55% 1.55%

1.60%

1.57%


18.41% 18.81% 19.12%

20.00% 20.35%


48.51%

49.43% 49.80% 49.88% 49.68%


0.30% 0.31%

0.29% 0.27% 0.27%


*on average equity

Revenue/Employee(Rs. Lacs)

30 32 32 32 31


9

Ratings

ICRA AA for Lower Tier II subordinate debt program by ICRA

ICRA AA- for Upper Tier II bond program by ICRA

CRISIL A1+ for certificate of deposit program by CRISIL

CARE AA for Lower Tier II subordinate debt program by CARE

Fitch AA- for Long Term Debt Instruments by Fitch Ratings

Fitch A1+ for Short Term Debt Instruments by Fitch Ratings

Financial Performance

11

Strong Headline Numbers for Q1FY13

Net Interest

Income Rs 484.10 crs 24%

Other Income Rs 318.78 crs 48%

Revenue Rs 802.88 crs 33%

Operating

Profit Rs 404.03 crs 30%

Net

Profit Rs 236.26 crs 31%

Y-o-Y Growth

4%

9%

6%

7%

6%

Q-o-Q Growth

12

Top line momentum

Advances Rs 37,245 crs 31%

Corporate Advances Rs 18,484 crs 18%

Consumer Finance

Advances Rs 18,761 crs 48%

CASA Rs 12,557 crs 26%

Y-o-Y Growth

6%

4%

9%

9%

Q-o-Q Growth

Deposits Rs 45,076 crs 28% 6%

13

Balance Sheet

(Rs crs)

Q1FY13 Q1FY12 Y-o-Y (%) Q4FY12 Q-o-Q (%)

Capital & Liabilities

Capital 469 466 1% 468 -

Reserves and Surplus 4,515 3,765 20% 4,274 6%

Deposits 45,076 35,264 28% 42,362 6%

Borrowings 8,705 6,642 31% 8,682 -

Other Liabilities and Provisions 1,947 1,701 14% 1,811 8%

Total 60,712 47,838 27% 57,597 5%

Assets

Cash and Balances with RBI 3,062 2,461 24% 2,904 5%

Balances with Banks 1,671 775 116% 2,636 (37%)

Investments 16,308 14,233 15% 14,572 12%

Advances 37,245 28,384 31% 35,064 6%

Fixed Assets 671 613 9% 657 2%

Other Assets 1,755 1,372 28% 1,764 (1%)

Total 60,712 47,838 27% 57,597 5%

Business (Advances + Deposit) 82,321 63648 29% 77,426 6%

14

Profit and Loss Account

(Rs crs)

Q1FY13 Q1FY12 Y-o-Y (%) Q4FY12 Q-o-Q (%)

Net Interest Income 484.10 390.01 24% 464.39 4%

Other Income 318.78 215.40 48% 292.05 9%

Total Income 802.88 605.41 33% 756.44 6%

Operating Expenses 398.85 293.69 36% 377.36 6%

Operating Profit 404.03 311.72 30% 379.09 7%

Provisions &

Contingencies 53.50 44.69 20% 45.99 16%

Profit before Tax 350.53 267.03 31% 333.10 5%

Provision for Tax 114.27 86.95 32% 109.72 4%

Profit after Tax 236.26 180.18 31% 223.38 6%

Key Financial Indicators

15

Q1FY13 Q1FY12 Q4FY12

Return on Assets 1.57% 1.59% 1.60%

ROE (On average equity) 20.35% 18.41% 20.00%

Revenue / Staff Cost Multiple 4.96 5.22 5.57

Cost / Income Ratio 49.68% 48.51% 49.88%

Net Interest Margin 3.22% 3.41% 3.29%

Net NPA 0.27% 0.30% 0.27%

EPS (annualized, Rs. per share) 20.20 15.48 19.12

Net Worth (Rs. in crs) excl Reval Reserve 4,766 4,007 4,522

Book Value (Rs. per share) 101.69 86.00 96.73

Comm. Vehicle Loans 24%

Utility Vehicle Loans

4% Small CV

5%

Two Wheeler Loans

4% Car

Loans 4%

Equipment Financing

6%

Credit Card 1%

Loan Against Property

2%

Home,PL,etc) 0%

Large Corporates

27%

Mid size Corporates

15%

Small Corporates

8%

Corporate Banking 30 Jun-12

Large Corporates 9,952 27%

Mid size Corporates 5,528 15%

Small Corporates 3,004 8%

Total Advances 18,484 50%

16

40% 44%

49% 50%

60%

56%

51% 50%

20,551

26,166

35,064 37,245

FY10 FY11 FY12 Jun-12

Consumer Finance Division Corporate & Commercial Banking

Well Diversified Loan Book

Loan Book (Rs crs)

Consumer Finance 30 Jun-12

Comm. Vehicle Loans 8,841 24%

Utility Vehicle Loans 1,432 4%

Small CV 2,007 5%

Two Wheeler Loans 1,570 4%

Car Loans 1,611 4%

Equipment Financing 2.337 6%

Credit Card 281 1%

Loan Against Property 556 2%

Home, PL,etc) 126 -

Total Advances 18,761 50%

(Rs crs)

(Rs crs)

17 17

Diversified Corporate Loan Book

4.38%

2.58%

2.52%

2.16%

1.72%

1.47%

1.46%

1.32%

1.31%

1.07%

29.65%

NBFCs (other than HFCs)

Lease Rental

Power

Constn related to infra.- EPC

Gems and Jewellery

Steel

Hosp. & Med. Serv.

Pharma

Paper

Auto Ancillaries

Other Industry

18 18

Well Rated Corporate Portfolio

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%

24%

26%

28%

30%

32%

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 %

Sub Investment Grade Investment Grade

PERCENT OF RATED PORTFOLIO

Building CASA traction

Expanding branch network

Some leverage from SA rate advantage

Focus on target market segments

Government business

Capital market flows

Key Non Resident markets

Self employed and Emerging Corporate businesses

Differentiated Service Propositions

19

Improving CASA profile

9,331 9,946 10,627 10,757 11,563

12,557

27.2% 28.2% 27.7%

26.5% 27.3% 27.9%

10%

16%

21%

27%

33%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13

CASA (Rs.crs) % of Total Deposits

CASA Uptick

Savings Account (SA)

3,059 3,229 3,294

3,977

4,694 5,139

8.9%

9.2%

8.6%

9.8%

11.1% 11.4%

0%

2%

4%

6%

8%

10%

12%

1

1,001

2,001

3,001

4,001

5,001

6,001


SA (Rs.crs) % of Total Deposits

Current Account (CA)

6,272

6,717 7,333

6,780 6,869 7,418

18.3%

19.1% 19.1%

16.7% 16.2% 16.5%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000


CA (Rs.crs) % of Total Deposits

20

Other Income

(Rs crs)

Q1FY13 Q1FY12 Y-o-Y (%) Q4FY12 Q-o-Q(%)

Core Fee 269.03 187.07 44% 263.96 2%

Securities/MM/FX Trading 49.65 27.79 79% 27.41 81%

Others 0.10 0.54 - 0.68 -

Total 318.78 215.40 48% 292.05 9%

21

Diverse Revenues from Core Fee Income

(Rs crs)

Growth momentum continues on regular fee flows

Q1FY13 Q1FY12 Y-o-Y(%) Q4FY12 Q-o-Q(%)

Trade & Remittances 37.28 25.49 46% 30.87 21%

Foreign Exchange Income 63.38 42.27 50% 46.04 38%

Distribution Fees (Insurance,

MF,Cr. Card ) 56.44 50.57 12% 70.69 (20%)

General Banking Fees 29.03 25.60 14% 29.80 (3%)

Loan Processing fees 51.72 33.17 56% 46.79 11%

Investment Banking 31.18 9.97 213% 39.77 (22%)

Total Core Fee Income 269.03 187.07 44% 263.96 2%

22

Yield / Cost Movement

Q1FY13 Q4FY12

Outstanding

(Rs crs)

Yield

(%)

Outstanding

(Rs crs)

Yield

(%)

Corporate Bank 18,484 11.78% 17,827 11.73%

Consumer Finance 18,761 16.34% 17,237 16.33%

Total 37,245 13.95% 35,064 13.91%

Segment-wise Yield

•Yield on Assets/Cost of funds are based

on Total Assets/Liabilities

10.84% 10.56%

13.95% 13.91%

8.86% 8.27%

7.62% 7.27%

Q1FY13 Q4FY12

Yield on Assets

Yield on Advances

Cost of Deposits

Cost of Funds

23

Credit costs

FY09 FY10 FY11 FY12 Q4FY12 Q1FY13

Corporate Bank 78.08 85.86 81.99 61.11 15.13 21.41

Consumer Finance 82.70 75.77 78.34 81.46 20.37 23.85

Total Credit Costs 160.78 161.63 160.33 142.57 35.50 45.26

Credit Costs

(Basis Points on Advances) 102 79 61 41 10 12

PCR 30% 60% 73% 73% 73% 73%

49% 53% 51% 43% 43% 47%

51% 47% 49% 57% 57% 53%

FY09 FY10 FY11 FY12 Q4FY12 Q1FY13

Corporate Loan Book Consumer Finance Loan Book

(Rs crs)

24

Loan Portfolio - Movement in NPA and Restructured Advances

Q1FY13 Q4FY12

Corporate Consumer Total Corporate Consumer Total

Opening Balance 110 237 347 92 242 334

Additions 51 58 109 21 63 84

Deductions 8 83 91 3 68 71

Gross NPA 153 212 365 110 237 347

Net NPA 36 64 100 12 83 95

% of Gross NPA 0.97% 0.98%

% of Net NPA 0.27% 0.27%

Provision Coverage Ratio

(PCR) 72.64% 72.72%

Restructured Advances 0.24% 0.26%

(Rs crs)

NPA Composition – Consumer Finance - Vehicles

25

(Rs crs)

Q4-FY12 Com.

Vehicle Utility

Const.

Equip. Small CV TW Cars

Gross NPA 83 16 26 18 51 14

Net NPA 30 4 10 11 22 4

Gross NPA % 1.00% 1.31% 1.22% 0.95% 3.32% 0.99%

Net NPA % 0.36% 0.34% 0.46% 0.56% 1.45% 0.29%

Q1-FY13 Com.

Vehicle Utility

Const.

Equip. Small CV TW Cars

Gross NPA 63 13 23 16 56 12

Net NPA 18 2 7 9 23 3

Gross NPA % 0.71% 0.92% 0.99% 0.81% 3.47% 0.76%

Net NPA % 0.20% 0.15% 0.31% 0.45% 1.44% 0.19%

26

CRAR - Basel II

30 June-12 30 June-11

Risk Weighted Assets

- Credit Risk 37,530 29,313

- Market Risk 997 580

- Operational Risk 3,443 2408

- Total RWA 41,970 32,301

Tier I Capital Funds 4,459 3771

Tier II Capital Funds 937 1071

Total Capital Funds 5,396 4,842

CRAR 12.86% 14.99%

Tier I 10.62% 11.67%

Tier II 2.23% 3.32%

CRAR (with profit) 13.42% 15.55%

Tier I 11.19% 12.23%

Tier II 2.23% 3.32%

(Rs crs)

27

Distribution Expansion to Drive Growth

As at, end FY10 FY11 FY12 June 30,

2012

Branch Network 210 300 400* 421*

ATMs 497 594 692 735

Strengthening Distribution Infrastructure

Branch/Representative Office

Strategic Alliance

*includes 19 specialized branches

28

Shareholding Pattern

As at June 30, 2012

Promoters 19.4%

FIIs 34.2% GDR issue

13.8%

NRIs/ Director/ Others 1.7%

Private Corporates

13.5%

Individuals 8.7%

MFs / Banks/ Insurance Co

8.7%

29

29

29

CIO Magazine - Top Green IT Enterprise Award 2012

Top 100 CISO (Chief Information Security Officer) Awards 2012

Panasonic Green Globe foundation Award 2012 in the “Business Enterprise Services”

(UNEP/TERI/KPMG)

NASSCOM IT User Award 2012 for “Environmental Sustainability” (Frost & Sullivan)

The CII Environmental Best Practice Award 2012 for the “Most Innovative Project

ACCOLADES

Thank you

investor presentation - aceanalyser.com meet/132187_20120710.pdfindusind bank’s equity shares are...

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