investor presentation q2-2020-21 › content › dam › indusind...ppop at rs 2,852 crs, grew by 9%...

October 30, 2020

Investor Presentation Q2-2020-21

2

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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%


RoE

1.12% 1.05%

0.91% 0.86%

0.52%


63 65 65 64 66


Revenue / Employee (Rs Lakhs)

How We Measure Up On Key Metrics

1.98% 1.82%

0.42%

0.69% 0.85%


17.26% 15.62%

3.69%

5.86% 7.12%


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)

11

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


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


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.

investor presentation q2-2020-21 › content › dam › indusind...ppop at rs 2,852 crs, grew by 9%...

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