October 30, 2020
Investor Presentation Q2-2020-21
2
Q2
– F
Y2
1 P
erf
orm
an
ce H
igh
lig
hts
NNPA improved to 0.52% from 0.86% QoQ
Efficiency ratio at 40.98% (43.42% LY)
Liquidity Coverage Ratio (LCR) stands at 140%
Loan book quality stable; GNPA at 2.21% (reduction of 32 bps sequentially)
Credit growth 2% YoY and Deposit growth 10% YoY
PPOP at Rs 2,852 crs, grew by 9% YoY; PPOP / Assets at 3.66% amongst the industry highest
NII at Rs. 3278 crs ; up by 13% YoY
NIM at 4.16% up by 6 bps YoY
Strengthened capital position by raising Rs. 3,288 crs; Capital Adequacy stands at 16.55%
Consol PAT at Rs. 663 crs after Covid provisions of Rs. 952 crs taking total provision at Rs. 2,155 crs
PCR improved to 77% ; Total loan related provisions at 132% of GNPA
Client base at 26 million
3
Consistent delivery of strong operating performance
Net Interest Margin (NIM) RoA
Cost / Income Net NPA
4.10% 4.15% 4.25% 4.28% 4.16%
Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21
43.42% 43.31% 42.90%
39.38% 40.98%
Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21
RoE
1.12% 1.05%
0.91% 0.86%
0.52%
Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21
63 65 65 64 66
Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21
Revenue / Employee (Rs Lakhs)
How We Measure Up On Key Metrics
1.98% 1.82%
0.42%
0.69% 0.85%
Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21
17.26% 15.62%
3.69%
5.86% 7.12%
Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21
4
Domestic Rating:
CRISIL AA + for Infra Bonds program
CRISIL AA for Additional Tier I Bonds program
CRISIL A1+ for certificate of deposit program / short term FD programme
IND AA+ for Senior bonds program by India Ratings and Research
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
International Rating:
Ba1 for Senior Unsecured MTN programme by Moody’s Investors Service
Ratings
5
Consolidated Financial Performance
Q-o-Q Growth Y-o-Y Growth
6
Net Interest Income
13%
Total Fee Income Rs. 1,554 crs
(10%)
Revenue Rs. 4,832 crs
4%
Operating Profit Rs. 2,852 crs
9%
Net Profit Rs. 663 crs
(53%)
(1%)
2%
0%
(3%)
30%
Steady Headline Numbers for Q2 FY21
Rs. 3,278 crs
Y-o-Y Growth Q-o-Q Growth
7
Top line momentum
Rs. 2,01,247 crs 2%
Deposits Rs. 2,27,884 crs 10%
TD Rs. 1,36,038 crs 12%
2%
8%
7%
CASA Rs. 91,846 crs 7% 9%
Advances
Borrowings Rs. 52,385 crs 18% (12%)
8
(Rs Crs)
* Q2FY21 Q2FY20 Y-o-Y (%) Q1FY21 Q-o-Q (%)
Capital & Liabilities
Capital 756 693 9% 694 9%
Reserves and Surplus 38,244 32,171 19% 34,134 12%
Share Warrant Subscription money 674 674 - 674 -
Deposits 2,27,884 2,07,193 10% 2,11,265 8%
Borrowings 52,385 44,558 18% 59,196 (12%)
Other Liabilities and Provisions 12,053 9,644 25% 11,953 1%
Total 3,31,996 294,933 13% 3,17,916 4%
Assets
Cash and Balances with RBI 8,278 9,973 (17%) 7,621 9%
Balances with Banks 37,566 5,306 608% 28,497 32%
Investments 62,953 63,540 (1%) 59,596 6%
Advances 2,01,247 1,97,113 2% 1,98,069 2%
Fixed Assets 1,890 1,799 5% 1,855 2%
Other Assets 20,062 17,202 17% 22,278 (10%)
Total 3,31,996 2,94,933 13% 3,17,916 4%
Business (Advances + Deposit) 4,29,131 4,04,306 6% 4,09,333 5%
Balance Sheet
9
Q2FY21 Q2FY20 Y-o-Y (%) Q1FY21 Q-o-Q (%)
Net Interest Income 3,278 2,909 13% ▲ 3,310 (1%) ▼
Other Income 1,554 1,727 (10%) ▼ 1,520 2% ▲
Total Income 4,832 4,636 4% ▲ 4,830 - ▲
Operating Expenses 1,980 2,013 (2%) ▼ 1,902 4% ▲
Operating Profit 2,852 2,623 9% ▲ 2,928 (3%) ▼
Provisions & Contingencies 1,964 737 166% ▲ 2,259 (13%) ▼
Profit before Tax 888 1,886 (53%) ▼ 669 33% ▲
Provision for Tax 225 485 (54%) ▼ 159 42% ▲
Profit after Tax 663 1,401 (53%) ▼ 510 30% ▲
Profit and Loss Account – Q2 FY21 (Rs Crs)
10
HYFY21 HYFY20 Y-o-Y (%)
Net Interest Income 6,587 5,753 14% ▲
Other Income 3,075 3,390 (9%) ▼
Total Income 9,662 9,143 6% ▲
Operating Expenses 3,882 3,929 (1%) ▼
Operating Profit 5,780 5,214 11% ▲
Provisions & Contingencies 4,224 1,168 261% ▲
Profit before Tax 1,556 4,046 (62%) ▼
Provision for Tax 383 1,213 (68%) ▼
Profit after Tax 1,173 2,833 (59%) ▼
Profit and Loss Account – HY FY21 (Rs Crs)
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Key Financial Indicators
Q2FY21 Q2FY20 Q1FY21
Return on Assets 0.85% 1.98% 0.69%
PPOP / Average Assets 3.66% 3.57% 3.95%
Return on Equity 7.12% 17.26% 5.86%
Cost / Income Ratio 40.98% 43.42% 39.38%
Net Interest Margin 4.16% 4.10% 4.28%
Net NPA 0.52% 1.12% 0.86%
EPS (annualized, Rs. per share) 37.20 80.88 29.44
Capital + Reserves (Excl. Revaluation Reserve) (Rs. in crs)
39,357 33,216 35,183
Well Diversified Loan Book
Consumer Finance Sep-20
Vehicle Loans 59,214 30%
Comm. Vehicle Loans 23,932 12%
Utility Vehicle Loans 4,539 2%
Small CV 3,691 2%
Two Wheeler Loans 5,739 3%
Car Loans 7,460 4%
Tractor 5,484 3%
Equipment Financing 8,369 4%
Non-Vehicle Loans 34,223 17%
Business Banking 11,531 6%
Loan Against Property 9,540 5%
Credit Card 4,853 2%
BL, PL, AHL, Others 8,299 4%
Microfinance* 22,383 11%
Total Advances 1,15,820 58%
Loan Book (Rs crs)
(Rs crs)
(Rs crs)
Corporate Banking
Sep-20
Large Corporates
41,927 20%
Mid size Corporates
39,889 20%
Small Corporates
3,611 2%
Total Advances 85,427 42%
12
*includes BFIL
FY18 and FY19 are not comparable due to reclassification of BBG & MFI
39% 39%
56% 58% 58%
61%
61%
44% 42% 42% 144,954
186,394 193,520
197,113 2,01,247
FY18 FY19 FY20 Jun-20 Sep-20
Consumer Finance Division Corporate & Commercial Banking
Vehicle Finance 29%
Non Vehicle Retail 17%
Microfinance 11%
Large Corporates
21%
Mid Size Corporates
20%
Small Corporates
2%
Sector %
4.41%
3.56%
3.16%
3.11%
2,14%
1.78%
1.12%
1.07%
1.04%
21.05%
Corporate Banking 42.44%
Consumer Banking 57.56%
Total 100.00%
Lease Rental
Real Estate - Commercial and Residential
Steel
Gems and Jewellery
NBFCs (other than HFCs )
Power Generation – Renewable
Housing Finance Companies
Services
Telecom- Cellular
Other Industry
13
Diversified Corporate Loan Book
14
Vehicle Finance Segment Wise Collection Update
98.7% 98.4% 95.6% 95.4% 94.3% 92.1%
89.2%
82.4%
Cars ConstructionEquipments
LCV MHCV OverallVehicles
Tractors 2-Wheelers SCV
September Collection Efficiency
15
Microfinance Performance Update
* For entire portfolio originated in FY21, representing ~27% of overall loan portfolio.
91% 93%
Sep'20 Oct'20
99.9% Cumulative Collection Efficiency for 2.7 mn new loans (May – Oct)
Collection Efficiency %
99.84%*
Cumulative Collection Efficiency
99.2% customers resumed payment since Lockdown
99.2%
Paying Customers %
16
Well Rated Corporate Portfolio
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
17
Improving CASA profile
CASA
Savings Account (SA) Current Account (CA)
Building CASA traction
Expanding branch network
Focus on target market segments
Government business
Capital market flows
Key Non Resident markets
Scaling up branded Wealth offering “Pioneer”
Self employed and Emerging Corporate businesses
Transaction Banking and CMS Mandates
Differentiated service propositions
Digital distribution
86,539 85,838
91,865
81,557 84,473
91,846
43.1% 41.5% 42.4% 40.4% 40.0% 40.3%
10%
16%
21%
27%
33%
38%
44%
50%
50,000
60,000
70,000
80,000
90,000
1,00,000
Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21
CASA (Rs crs) % of Total Deposits
28,887 27,721 26,970 28,427 31,946
34,773
14.4% 13.5% 12.4%
14.1% 15.1% 15.3%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
18,000
20,000
22,000
24,000
26,000
28,000
30,000
32,000
34,000
36,000
38,000
Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21
CA (Rs crs) % of Total Deposits
57,652 58,117
64,895
53,130 52,527 57,073
28.7% 28.0% 30.0% 26.3%
24.9% 25.0%
-0.5%
4.5%
9.5%
14.5%
19.5%
24.5%
29.5%
34.5%
1
10,001
20,001
30,001
40,001
50,001
60,001
70,001
Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21
SA (Rs crs) % of Total Deposits
18
Q2FY21 Q2FY20 Y-o-Y (%) Q1FY21 Q-o-Q (%)
Core Fee 1,061 1,468 (28%) ▼ 682 56%
Securities/MM/FX Trading/Others
493 259 90% 838 (41%) ▼
Total 1,554 1,727 (10%) ▼ 1,520 2%
Other Income
(Rs Crs)
19
Q2FY21 Q2FY20 Y-o-Y(%) Q1FY21 Q-o-Q(%)
Trade and Remittances 152 182 (16%) 116 31%
Foreign Exchange Income 228 277 (18%) 155 47%
Distribution Fees (Insurance, MF, Cards)
323 322 - 174 86%
General Banking Fees / PSL 123 126 (2%) 109 13%
Loan Fees 212 360 (41%) 99 114%
Investment Banking 23 201 (89%) 29 (21%)
Total Core Fee Income 1,061 1,468 (28%) 682 56%
Diverse Revenues from Core Fee Income
(Rs Crs)
20
Diversified and Granular Fee Streams – Q2 FY21
Corporate Banking (21%)
Consumer Banking (48%)
Trading and Other Income (31%)
Trade and Remittances , 2%
Foreign Exchange,
7%
Distribution, 21%
General Banking, 8%
Loan Processing, 10%
PSLC , 0%
Securities/MM/FX Trading/Others, 31%
Loan Processing - Large Corp, 1% Loan Processing -
Medium Corp, 2%
Loan Processing - Small Corp, 0%
Investment Banking - Structured Finance,0%
Investment Banking - Loan
Syndication, 1%
Investment Banking - Project Finance /
Advisory, 1% Foreign
Exchange, 8%
Trade and Remittances , 8%
9.10% 9.38%
11.97% 11.85%
5.58% 5.73% 4.94% 5.10%
Q2FY21 Q1FY21
Yield on Assets
Yield on Advances
Cost of Deposits
Cost of Funds
21
•Yield on Assets/Cost of funds are based on Total Assets/Liabilities
Segment-wise Yield
Q2FY21 Q1FY21
Outstanding
(Rs crs)
Yield
(%)
Outstanding
(Rs crs)
Yield
(%)
Corporate Bank 85,427 8.42% 83,986 8.56%
Consumer Finance 1,15,820 14.63% 1,14,083 14.49%
Total 2,01,247 11.97% 1,98,069 11.85%
Yield / Cost Movement
22
Specific provision of Rs. 2,646 crs related to non-performing loans
Provision of Rs. 2,155 crs related to COVID-19
Floating provisions of Rs. 70 crs other than related to COVID-19
Standard asset provision of Rs. 972 crs other than related to COVID-19
Other provisions of Rs. 150 crs on standard assets
Total loan related provisions at 132% of GNPA
Loan related provisions are 3.0% of the loans
Provisions held as on September 30, 2020
23
FY18 FY19 FY20 Q1FY21 Q2FY21 HYFY21
Corporate Bank 468 2,134 1,893 907 419 1,326
Consumer Finance 433 585 1,136 259 201 460
Gross Credit Costs 901 2,719 3,029 1,166 620 1,786
Gross Credit Costs (Basis Points on Advances)
62 146 146 59 31 89
Net Credit Cost 856 2,689 2,973 1,157 602 1759
Net Credit Costs (Basis Points on Advances)
59 144 144 58 30 87
PCR 56% 43% 63% 67% 77% 77%
52% 45% 62%
78% 68% 74%
48% 55% 38%
22% 32% 26%
FY18 FY19 FY20 Q1FY21 Q2FY21 HYFY21Corporate Loan Book Consumer Finance Loan Book
Credit Cost
(Rs Crs)
24
Loan Portfolio - Movement in NPA and Restructured Advances
Q2FY21 Q1FY21
Corporate Consumer Total Corporate Consumer Total
Opening Balance 3,388 1,711 5,099 3,416 1,731 5,147
Additions 13 386 399 1,225 312 1,537
Deductions 471 495 966 1,253 332 1,585
Gross NPA 2,930 1,602 4,532* 3,388 1,711 5,099*
Net NPA 1,056 1,703
% of Gross NPA 2.21% 2.53%
% of Net NPA 0.52% 0.86%
Provision Coverage Ratio (PCR) 77% 67%
Restructured Advances 0.05% 0.05%
Restructured + Gross NPA to Advances
2.26% 2.58%
(Rs Crs)
*After sale to ARC Rs .95 crs (Rs. 26 crs)
25
NPA Composition – Consumer Finance
Q2 FY21 Com.
Vehicle Utility
Const. Equip.
Small CV
TW Cars Tractor
BBG/LAP
HL/PL/Others
Cards MFI Total
Gross NPA 440 53 76 66 223 65 70 189 34 28 358 1,602
Gross NPA % 1.82% 1.17% 0.90% 1.78% 3.80% 0.87% 1.27% 0.89% 0.40% 0.57% 1.58% 1.36%
(Rs Crs)
Q1 FY21 Com.
Vehicle Utility
Const. Equip.
Small CV
TW Cars Tractor
BBG/LAP
HL/PL/Others
Cards MFI Total
Gross NPA 524 51 90 66 154 58 67 253 43 38 367 1,711
Gross NPA % 2.19% 1.16% 1.11% 1.82% 2.62% 0.80% 1.43% 1.23% 0.54% 0.79% 1.55% 1.48%
109% 111% 112% 124%
140%
0%
20%
40%
60%
80%
100%
120%
140%
0
0
0
1
1
1
1
1
Mar-18 Mar-19 Mar-20 Jun-20 Sep-20
LCR Min
26
Strong Balance Sheet & Profitability Buffers in Place
30 Sep 20 30 Jun 20
Credit Risk, CVA and UFCE 2,24,353 2,22,384
Market Risk 8,977 10,985
Operational Risk 28,353 28,353
Total Risk Weighted Assets 2,61,683 2,61,722
Core Equity Tier 1 Capital Funds 37,942 34,435
Additional Tier 1 Capital Funds 3,490 3,490
Tier 2 Capital Funds 1,871 1,749
Total Capital Funds 43,303 39,674
CRAR 16.55%* 15.16%
CET1 14.50%* 13.16%
Tier 1 15.83% 14.49%
Tier 2 0.72% 0.67%
(Rs Crs) Pre Provision Operating Profit Margin
Liquidity Coverage Ratio
Capital Adequacy
* CRAR at 16.87% and CET1 at 14.82% including HY FY 21 PAT
Minimum Required
3.8% 2.7% 3.0%
1.4% 1.8%
0.8%
1.7% 2.2%
4.6% 3.9%
4.6% 4.3%
5.2%
5.9% 5.7%
FY18 FY19 FY20 Q1FY21 Q2FY21
PBT/Loans Total Provisions/Loans PPOP/Loans
27
• Branch/Representative Office
Strengthening Distribution Infrastructure
Distribution Expansion to Drive Growth
*includes 208 specialized branches and 150 Banking outlets
Particulars Dec 31,
2019 Mar 31,
2020 Jun 30, 2020
Sep 30,
2020
Branches/Banking Outlets 1,851 1,911 1,911 1,910*
BFIL Branches 2,163 2,071 2,079 2,144
Vehicle Finance Marketing Outlets
859 853 854 841
Total 4,873 4,835 4,844 4,895
ATMs 2,721 2,760 2,721 2,785
Note: Numbers given above are total branches in each state
28
Paid up Capital as of September 30, 2020
*includes FPIs # 14.92% with diluted capital including warrants/ESOP
Shareholding Pattern
Promoters# 13.45%
FIIs* 47.46%
GDR issue 8.39%
NRIs/ Director/ Others 2.91%
Private Corporates 2.93%
Individuals 9.07%
MFs / Banks/ Insurance Co
15.79%
Thank You
29
30
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.