Investor Presentation - aceanalyser.com Meet/132187_20120710.pdfIndusInd Bank’s equity shares are...
Transcript of Investor Presentation - aceanalyser.com Meet/132187_20120710.pdfIndusInd Bank’s equity shares are...
Investor Presentation
July 10, 2012
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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.
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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
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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
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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
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How We Measure Up On Key Metrics
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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%
Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13
18.41% 18.81% 19.12%
20.00% 20.35%
Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13
48.51%
49.43% 49.80% 49.88% 49.68%
Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13
0.30% 0.31%
0.29% 0.27% 0.27%
Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13
*on average equity
Revenue/Employee(Rs. Lacs)
30 32 32 32 31
Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13
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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
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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
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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%
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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%
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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
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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%
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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)
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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
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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
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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
Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13
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
Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13
CA (Rs.crs) % of Total Deposits
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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%
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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%
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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
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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)
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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
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(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%
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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)
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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
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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%
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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