Investor Presentation - Alpha Ideasalphaideas.in/.../2013/03/...Presentation-Q3-FY13.pdf ·...

Investor Presentation

January 09, 2013

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/





NIM recovery on track - Net Interest Income grew 34% Y-o-Y & 13% Q-o-Q

Non-Interest Income to revenue remains healthy at 38%

Consistent growth in Core Fee Income 32% Y-o-Y & 11% Q-o-Q

Credit growth above industry 31% Y-o-Y & 8% Q-o-Q

Low exposure to stressed / sensitive sectors

Net NPA 0.30%; PCR 70.30%; Restructured Advances 0.26%

Q3 F

Y13 P

ER

FO

RM

AN

CE

HIG

HL

IGH

TS

Steady performance in deteriorating macro economic environment

Credit cost at 16 bps

3

4

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

Scale with Profitability

5

Planning Cycle II – Pillars of Growth

Growing

Consumer

Finance book

To grow beyond Rs. 25,000 crs by March 2014

To be funded through CASA

CASA growth CASA to reach > 35% by March 2014

Manage CD

Ratio

CD ratio > 75% < 80%

Deposits to be put to efficient use

Fee GrowthFee growth to exceed Loan Growth

Increased focus on (New) fee enhancers

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

well above market growth.

Cons. Finance book

Rs. 21,691 crs Growth 38%

Growth-26%

CASA-28.67%

83%

Fee Growth

32%

31%

Q3-13 outcome

6

Planning Cycle II – Key Initiatives

Used Commercial

Vehicles

Scale up Investment

Banking practiceCredit 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

(Completed Dec 2012)

"On Track " performance on all initiatives

7

7

How We Measure Up On Key Metrics

7

Net Interest Margin (NIM) RoA RoE*

Cost to Income Ratio Net NPA

Consistent delivery of strong operating performance

3.25% 3.29%3.22% 3.25%

3.46%

Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13

19.12%20.00% 20.35% 20.45%

17.37%


49.80% 49.88%49.68% 49.43% 49.43%


0.29%0.27% 0.27%

0.29% 0.30%


*on average equity

Revenue/Employee(Rs. Lacs)

32 32 31 3033


1.55% 1.60% 1.57% 1.56% 1.60%


QIP – Rs

2000 crs

8

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

IND AA- for Long Term Debt Instruments by India Ratings and Research

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

Financial Performance

10

Strong Headline Numbers for Q3FY13

Net Interest

IncomeRs 577.80 crs 34%

Other Income Rs 355.80 crs 34%

Revenue Rs 933.60 crs 34%

Operating

ProfitRs 472.16 crs 35%

Net

ProfitRs 267.27 crs 30%

Y-o-Y Growth

13%

11%

12%

12%

7%

Q-o-Q Growth

Core Fee Income Rs 329.29 crs 32% 11%

11

Top line momentum

Advances Rs 42,426 crs 31%

Corporate Advances Rs 20,735 crs 24%

Consumer Finance

AdvancesRs 21,691 crs 38%

CASA Rs 14,651 crs 36%

Y-o-Y Growth

8%

9%

6%

10%

Q-o-Q Growth

Deposits Rs 51,098 crs 26% 7%

12

Balance Sheet

(Rs crs)

Q3FY13 Q3FY12 Y-o-Y (%) Q2FY13 Q-o-Q (%)

Capital & Liabilities

Capital 522 467 12% 470 1%

Reserves and Surplus 6,973 4,168 67% 4,773 46%

Deposits 51,098 40,558 26% 47,765 7%

Borrowings 6,567 8,137 (19%) 6,745 (3%)

Other Liabilities and Provisions 2,736 1,803 52% 2,308 19%

Total 67,896 55,133 23% 62,061 9%

Assets

Cash and Balances with RBI 2,845 2,960 (4%) 2,859 (1%)

Balances with Banks 2,631 876 200% 1,580 67%

Investments 17,594 15,362 15% 15,609 13%

Advances 42,426 32,426 31% 39,427 8%

Fixed Assets 731 635 15% 695 5%

Other Assets 1,669 2,875 (42%) 1,891 (12%)

Total 67,896 55,133 23% 62,061 9%

Business (Advances + Deposit) 93,524 72,983 28% 87,192 7%

13

Profit and Loss Account (Quarter)

(Rs crs)

Q3FY13 Q3FY12 Y-o-Y (%) Q2FY13 Q-o-Q (%)

Net Interest Income 577.80 430.66 34% 509.73 13%

Other Income 355.80 265.12 34% 320.49 11%

Total Income 933.60 695.77 34% 830.22 12%

Operating Expenses 461.44 346.53 33% 410.40 12%

Operating Profit 472.16 349.24 35% 419.82 12%

Provisions &

Contingencies78.68 42.83 84% 49.07 60%

Profit before Tax 393.48 306.41 28% 370.75 6%

Provision for Tax 126.21 100.45 26% 120.50 5%

Profit after Tax 267.27 205.96 30% 250.25 7%

14

Profit and Loss Account (9 months)

(Rs crs)

9M-FY13 9M-FY12 Y-o-Y (%)

Net Interest Income 1,571.63 1,239.85 27%

Other Income 995.07 719.73 38%

Total Income 2,566.70 1,959.58 31%

Operating Expenses 1,270.69 965.74 32%

Operating Profit 1,296.01 993.94 30%

Provisions & Contingencies 181.25 134.39 35%

Profit before Tax 1,114.76 859.55 30%

Provision for Tax 360.98 280.32 29%

Profit after Tax 753.78 579.23 30%

Key Financial Indicators

15

Q3FY13 Q3FY12 Q2FY13

Return on Assets 1.60% 1.55% 1.56%

ROE (On average equity) 17.37% 19.12% 20.45%

Cost / Income Ratio 49.43% 49.81% 49.43%

Net Interest Margin 3.46% 3.25% 3.25%

Net NPA 0.30% 0.29% 0.29%

EPS (annualized, Rs. per share) 22.04 17.64 21.32

Net Worth (Rs. in crs) excl Reval Reserve 7,282 4,413 5,025

Book Value (Rs. per share) 139.48 94.55 106.76

Corporate

Banking31 Dec-12

Large Corporates 11,202 26%

Mid size

Corporates6,205 15%

Small Corporates 3,328 8%

Total Advances 20,735 49%

16

40% 44%49% 52% 51%

60%

56%

51%48%

49%

20,551

26,166

35,064

39,427 42,426

FY10 FY11 FY12 Sep-12 Dec-12

Consumer Finance Division Corporate & Commercial Banking

Well Diversified Loan Book

Loan Book (Rs crs)

Consumer Finance 31 Dec-12

Comm. Vehicle Loans 9,757 23%

Utility Vehicle Loans 1,758 4%

Small CV 2,192 5%

Two Wheeler Loans 1,815 4%

Car Loans 1,995 5%

Equipment Financing 2,675 6%

Credit Card 333 1%

Loan Against Property 1,069 3%

Home, PL, etc 97 -

Total Advances 21,691 51%

(Rs crs)

(Rs crs)

Comm. Vehicle Loans 23%

Utility Vehicle Loans

4%

Small CV5%

Two Wheeler Loans

4%Car

Loans5%

Equipment Financing

6%Credit Card

1%

Loan Against Property

3%

Large Corporate26%

Medium Corporate

15%

Small Business

8%

1717

Diversified Corporate Loan Book

4.73%

3.04%

2.95%

1.92%

1.80%

1.75%

1.55%

1.30%

1.11%

28.72%

NBFCs (other than HFCs)

Lease Rental

Power

Pharma

Gems and Jewellery

Constn related to infra.- EPC

Real Estate Developers

Steel

Paper

Other Industry

1818

Well Rated Corporate Portfolio

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%

24%

26%

28%

30%

32%

34%

36%

38%

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

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

10,62710,757

11,56312,557 13,365

14,651

27.7%26.5% 27.3% 27.9% 28.0% 28.7%

10%

16%

21%

27%

33%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13

CASA (Rs.crs) % of Total Deposits

CASA Uptick

Savings Account (SA)

3,294

3,977

4,694 5,139 5,312

6,162

8.6%

9.8%11.1% 11.4% 11.1%

12.1%

0%

2%

4%

6%

8%

10%

12%

1

1,001

2,001

3,001

4,001

5,001

6,001

7,001


SA (Rs.crs) % of Total Deposits

Current Account (CA)

7,333 6,780 6,869 7,4188,053 8,489

19.1%

16.7% 16.2% 16.5%16.9% 16.6%

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

8,000


CA (Rs.crs) % of Total Deposits

20

Other Income

(Rs crs)

Q3FY13 Q3FY12 Y-o-Y (%) Q2FY13 Q-o-Q(%)

Core Fee 329.29 250.34 32% 296.10 11%

Securities/MM/FX Trading 17.72 13.09 52% 21.75 (19%)

Others 8.79 1.68 - 2.64 -

Total 355.80 265.11 34% 320.49 11%

21

Diverse Revenues from Core Fee Income

(Rs crs)

Growth momentum continues on regular fee flows

Q3FY13 Q3FY12 Y-o-Y(%) Q2FY13 Q-o-Q(%)

Trade & Remittances 43.37 33.21 31% 40.28 8%

Foreign Exchange Income 82.87 60.13 38% 65.84 26%

Distribution Fees

( Insurance, MF, Cr. Card ) 68.06 66.30 3% 67.40 1%

General Banking Fees 33.37 27.79 20% 33.11 1%

Loan Processing fees 66.07 41.60 59% 56.64 17%

Investment Banking 35.54 21.31 67% 32.84 8%

Total Core Fee Income 329.29 250.34 32% 296.10 11%

22

Yield / Cost Movement

Q3FY13 Q2FY13

Outstanding

(Rs crs)

Yield

(%)

Outstanding

(Rs crs)

Yield

(%)

Corporate Bank 20,735 11.63% 18,993 11.84%

Consumer Finance 21,691 15.94% 20,434 16.11%

Total 42,426 13.72% 39,427 13.94%

Segment-wise Yield

•Yield on Assets/Cost of funds are based

on Total Assets/Liabilities

10.75% 10.80%

13.72% 13.94%

8.43% 8.68%

7.29%7.55%

Q3FY13 Q2FY13

Yield on Assets

Yield on Advances

Cost of Deposits

Cost of Funds

23

Credit costs

FY09 FY10 FY11 FY12 Q2FY13 Q3FY13 9MFY13

Corporate Bank 78.08 85.86 81.99 61.11 16.22 52.37 90.01

Consumer Finance 82.70 75.77 78.34 81.46 25.87 16.23 65.94

Total Credit Costs 160.78 161.63 160.33 142.57 42.09 68.60 155.95

Credit Costs

(Basis Points on Advances)102 79 61 41 11 16 37

PCR 30% 60% 73% 73% 72% 70% 70%

(Rs crs)

49% 53% 51%43% 39%

76%

58%

51% 47% 49%57% 61%

24%

42%

FY09 FY10 FY11 FY12 Q2FY13 Q3FY13 9MFY13

Corporate Loan Book Consumer Finance Loan Book

24

Loan Portfolio - Movement in NPA and Restructured Advances

Q3FY13 Q2FY13

Corporate Consumer Total Corporate Consumer Total

Opening Balance 186 224 410 153 212 365

Additions 105** 80** 185 42 71* 113

Deductions 109** 64** 173 9 59* 68

Gross NPA 182 240 422 186 224 410

Net NPA 45 80 125 51 63 114

% of Gross NPA 0.99% 1.03%

% of Net NPA 0.30% 0.29%

Provision Coverage Ratio

(PCR) 70.30% 72.09%

Restructured Advances 0.26% 0.19%

(Rs crs)

* includes sale to ARC Rs. 21 crs

**ncludes sale to ARC Rs. 75 crs

NPA Composition – Consumer Finance - Vehicles

25

(Rs crs)

Q2-FY13Com.

Vehicle Utility

Const.

Equip. Small CV TW Cars

Gross NPA 72 14 21 19 57 13

Net NPA 17 2 2 12 24 3

Gross NPA % 0.75% 0.86% 0.84% 0.90% 3.36% 0.71%

Net NPA % 0.17% 0.14% 0.09% 0.56% 1.43% 0.19%

Q3-FY13Com.

Vehicle Utility

Const.

Equip. Small CV TW Cars

Gross NPA 89 13 26 20 66 13

Net NPA 31 1 7 10 26 3

Gross NPA % 0.90% 0.75% 0.96% 0.92% 3.55% 0.64%

Net NPA % 0.32% 0.08% 0.26% 0.45% 1.45% 0.13%

26

CRAR - Basel II

31 December-12 31 December-11

Risk Weighted Assets

- Credit Risk 43,464 32,074

- Market Risk 1,539 670

- Operational Risk 3,443 2,408

- Total RWA 48,445 35,152

Tier I Capital Funds 6,441 3,762

Tier II Capital Funds 830 958

Total Capital Funds 7,271 4,720

CRAR 15.01% 13.43%

Tier I 13.30% 10.70%

Tier II 1.71% 2.73%

CRAR (with profit) 16.56% 15.08%

Tier I 14.85% 12.35%

Tier II 1.71% 2.73%

(Rs crs)

Particulars FY10 FY11 FY12Dec

31,2012

Branch Network 210 300 400* 461*

ATMs 497 594 692 852

Strengthening Distribution Infrastructure

*includes 19 specialized branches

27

London

DubaiQatar

UAE

• Branch/Representative Office

• Strategic Alliance

Note: Numbers given above are

total branches in each state

Distribution Expansion to Drive Growth

Assa

m 9

J & K

2

HP 2

Chandigarh

2Punja

b

30Harya

na

24

Delhi

24

UP

27

MP

18

Gujar

at

32

Rajasth

an

33

Harya

na

22

WB

31

Bihar

6

Uttarakha

nd

1

D & NH

2

Maharashtra

50

Oriss

a 22

Goa 4

Pondicherry

1

Andhra

Pradesh

35

Karnata

ka

22

Keral

a

22

Tamil

Nadu

37

Maharash

tra 51

Maharash

tra 50

Chhattisgar

h 7

Jharkhand

11Tripura

2Mizoram

1

Meghala

ya 1

Sikkim

2

28

Shareholding Pattern

As at December 31, 2012

Promoters15.3%

FIIs39.1%

GDR issue12.4%

NRIs/ Director/ Others1.7%

Private Corporates15.0%

Individuals7.7%

MFs / Banks/ Insurance Co

8.8%

ACCOLADES

29

BA Banking Technology Awards

2nd Runners-Up- Best Online Bank- Best use of Business Intelligence- Best use of Mobility technology in Banking

1st Runners- Up- Best Risk Management & IT Security- Best Use of Technology in training & e Learning

-The best bank award among small banks for ‘IT forEffectiveness

Institute for Development and Research in Banking Technology (IDRBT).

ACCOLADES

30

Sunday Standard Finwiz 2012 - Best Bankers’ Awards

Best Private Sector Banker(Category- Medium) Romesh Sobti , MD & CEO, IndusInd Bank Ltd.

Best Indian Banker(Category- Medium) Romesh Sobti , MD & CEO, IndusInd Bank Ltd.

31

31

31

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

32

32

32

ACCOLADES

Banking Frontier –Finnoviti 2012 Awards for 2 innovations:- Cash on mobile- Direct connect for select customers

National Payments Corporation of India –Operational Excellence Awards –Special Jury award for effectively managing charge backs

Thank you

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