Business of Retailing

The Business of Retailing Investor Presentation by Consumer Banking

Presentation Outline

The Business of Retailing: Our Beliefs

Consumer Bank Performance: Key Metrics

Building Blocks of Consumer Bank

Future Plans

8 Core Beliefs drive the retail franchise of the Bank

1. Segmentation creates value – geographic segmentation and client segmentation

2. Scale is crucial; Build scale selectively

3. Universality of products and offerings

4. Efficient distributor – don’t manufacture everything

5. No “one size fit all” approach – solutions driven by segmentation

6. Client centricity through responsive innovation and share of wallet penetration

7. Technology / Digitization to find, serve and engage with customers and in the way

we run the business

8. Brand is built through customer advocacy and responsive innovations





Future Plans

1186 3059

9915

0

2000

4000

6000

8000

10000

2008 2011 2014

IndusInd SA has grown much faster than industry

IndusInd SA deposits have grown at CAGR of 48% compared to 19% for other new

private sector banks*

*Other pvt. banks include HDFC,ICICI, Axis, Kotak, Yes and ING Vysya

1,80,768

3,06,206

-

50,000

1,00,000

1,50,000

2,00,000

2,50,000

3,00,000

3,50,000

2011 2014

19%

Rs Cr Rs Cr

48%

IndusInd SA has grown at CAGR of 48% over

last 3 years

SA in other new private sector banks has

grown at CAGR of 19% over last 3 years

SA grew from 6.2% to 16.4% of overall

deposits over last 2 planning cycles

6.2%

8.9%

16.4%

5.0%

10.0%

15.0%

20.0%

2008 2011 2014

37%

Source: Annual Reports 2014

IndusInd branch footprint has grown much faster than industry

1. Other pvt. banks include HDFC,ICICI, Axis, Kotak, Yes and ING Vysya

6,930

11,271

-

2,000

4,000

6,000

8,000

10,000

12,000

2011 2014

180 300

602

0

200

400

600

800

2008 2011 2014

18%

Rs Cr Rs Cr

26%

IndusInd branch footprint has grown at 26% Branch footprint of new private sector banks

has grown by 18%

ATM footprint has also grown with the

branch network

336 594

1110

0

200

400

600

800

1000

1200

2008 2011 2014

# of clients nearly tripled over last two

planning cycles

0.9 1.2

2.7

-

1.0

2.0

3.0

2008 2011 2014

mn clients

Source: Annual Reports 2014

Consumer Non Vehicle and small business portfolio growth has

been strong

7293 11392

21604 227

3181

0

5000

10000

15000

20000

25000

30000

2008 2011 2014

Overall Consumer (Non Vehicle) + BBG has

grown at 69% over last three years

69%

1135

3410

12754

28195

7293

BBG

Consumer Loans (Non Vehicle)

Consumer Loans (Vehicle)

Overall Consumer (non vehicle) + BBG grew by 69% from 1362 Cr to 6591 Cr between 2011 & 2014

Share of Consumer (Non Vehicle) grew

from 2% to 13% of Consumer loan book

Share of Consumer (Non Vehicle) + BBG

grew from 5% to 12% of Bank’s loan book

44%

CAGR 2011-14

141%

24%

98% 87%

2% 13%

0%

50%

100%

2011 2014

Non Vehicle

Vehicle

51% 49%

44% 39%

1% 6%

4% 6%

0%

20%

40%

60%

80%

100%

2011 2014BBG Consumer Non VehicleConsumer Vehicle Corporate

12%

IndusInd Brand is well-recognized now

BrandZ: Top 50 Most

Valuable Indian Brands

IndusInd ranked 19th in the

Top 50 Most Valuable Indian

Brands 2014 as per the

BrandZ Top 50 Ranking

powered by WPP Plc and

Millward Brown

ET: Best Indian Brands

Paul Writer: Star

Brand

IndusInd awarded “Star

Brand 2011” in ICMR Star

Brands of India Survey

M.IT.R-50 Marketing &IT

Recognition Program

amongst top 50 brands-

organised by Paul Writer in

association with IBM

IndusInd ranked 39th in

the Best Indian Brands

2014 as per the Economic

Times and Interbrand Best

Indian Brand Study





Future Plans

3 core Building Blocks of Consumer Bank: Segmentation, Digitization

and Employee Development enabled by Op. Excellence & Quality

Consumer Bank

Segmentation Digitization /

Technology

Employee

Development

Operational Excellence

Quality Framework

Geographic segmentation has been core to Consumer Bank strategy

2009 2014 2011 2010 2012 2013

Categorization

of branches

into A / B / C

Creation of

CAT A+

Creation of

Home

Markets

Creation of

Developed

Markets

Creation of

Rural

Markets

Delivery formats attuned to cater to distinctive needs of each segment

in different geographies

• 2-person branches

operating in hub and

spoke model

• Designed for

efficiency

• Biometric

authentication

• Micro-ATMs

• Business As Usual

Branches

• Co-branding with

White Label ATM

operators

• Flagship branches in

metros and top

cities

• Enhanced brand

image in select

catchments

• Virtual Teller

Machines (mini

branch)

• Video Branch

• Digital branches

• Differentiated 24x7

service with STP;

offering ease and

convenience

• Virtual Teller

Machines (mini

branch)

• Video Branch

Rural BaU Metro / Home Markets

Branches

Other delivery

channels

Focussed approach to client segments through channels has created

value

3.1 4.1

5.2

-

1.0

2.0

3.0

4.0

5.0

6.0

Overall Select Exclusive

Cross-Sell Ratio of >5 in

Exclusive segment

Products per client

Built universality to bring full suite of products to our clients and to

acquire new relationships

Savings

Life Insurance

Investments

General Insurance

2008 2008-11

Savings

Life Insurance

Investments

General Insurance

Trade FX

Credit Cards

Home Loans

2011-14

Savings

Life Insurance

Investments

General Insurance

Trade / FX

Credit Cards

Home Loans

LAP

BBG

Business Loans

Personal Loans

Gold Loans

Health Insurance

Current

SME

Individuals

Current Current

Basic offerings

• Launch of trade to meet needs of business owners

• Launch of Retail FX, HL & Cards to acquire new reln. & to meet needs of existing clients

• Added BBG, LAP, BL to bring full suite of products to SMEs

• Added GL, PL and Health for individuals

Retail FX

We will continue to expand our offering to bring full suite of

products to our Retail clients

Retail

Kisan Credit Card

Mobile / Digital Wallets: own or through partnerships

Aadhar led Direct Benefit Transfers

Solutions / alliances for domestic remittances

Payment Solutions for international remittances

Loan Against Securities

Current Product Suite New Asset Products Payment Solutions

Savings

Life Insurance

Investments

General Insurance

Credit Cards

Home Loans

Personal Loans

Gold Loans

Health Insurance

We will continue to expand our offering to bring full suite of

products to our SME clients

SME

Trade / FX

LAP

BBG

Business Loans

Current Account

Cheque Protect

Commercial Cards

Transaction Banking Solutions

Mobile / Mobile-POS led payment solutions

Payment Gateways for online payments

Facilitation of payments through bin sponsorship

Loan Against Card Receivables

WC/TL for Agri SMEs

Current Product Suite New Asset Products Payment Solutions

We will continue to expand our offering to bring full suite of products to

our Government / Institutional Clients clients

Government / Institutional

clients

Solutions for government & institutional clients

Solutions for fee collection

Toll Collection

E-tendering Tax Collection

Welfare Payments

Illustrative

Technology led innovations have been core to Bank’s DNA:

Bringing many industry first client centric innovations

We are putting in place the building blocks of a Digital Bank

Digital

Marketing Data Analytics

Channel

Innovation

Product

Development

Operating

Process

Redesign

Digital Bank

Social Media

Marketing

Search Engine

Marketing, etc

Virtual / Video

Branch

Mobile Based

Solutions & Apps

Micro-

segmentation of

clients

Straight Through

Processing

Online / Instant

Decisioning

Analyzed Pricing

Segment specific

Product Bundles

Tele-RM /

Virtual RM

Context specific

product offers

Predictive

analytics

Operational Excellence core to Consumer Bank driven by 3 core

beliefs

Paperless Operations:

Minimize physical

movement of paper

Efficient, lean

operations

Ensure control

& compliance

Provide superior

client

experience

Straight Through

Processing

Faster TAT to customers

Operational Excellence: Our Beliefs Principles

Faster Decisioning

Scalability

Mystery

Shopping

A robust Quality Framework underpins the entire organization

Consumer Bank Quality Framework

Sales Discipline

• FTR

• Product Mix

• Quality of wealth business

Skilling

• Attrition

• IndusPro Certification

• Product / Process Knowledge

Consistent, Superior Customer Service

• Mystery Shopping

• Complaint / Request Resolution TAT

• Service Score

• Client Activation

Embedded in KRAs

of employees at all

levels

Strong focus on

tracking quality on

a regular basis

Quality Scorecard

published monthly

Certification

Program such as

IndusPro

Voice of

Customer

Survey

We lay high focus on employee development throughout employee

lifecycle

Hiring

Training Performance Management

Hire-Train-Deploy Model with

supervisory alignment to hire entry

level frontline

Balanced Scorecard Led Approach with focus

on

1. Business

2. Quality

3. Control & Compliance

IndusPro: Award winning program for

frontline skilling with continuous evaluation

MT Program in service & sales roles

to create home grown talent

E-learning for skilling in cost effective,

scalable manner:

• 6K participants and 15K man-hours / month Quality Framework embedded in KRAs at each

level across the organization





Future Plans

Bank has a clearly articulated ambition for Planning Cycle III

Consumer Bank committed to the overall Bank’s vision for PC III

Diversify Dominate

Differentiate

Launch of new asset

products

Payment Solutions

Home Markets

Digitization for client

lifecycle management

Micro-segment

specific product /

solutions

Products & Solutions

for Rural & Agri

Banking

6 core themes will drive the future for Consumer Bank going forward

• Growth and diversification of consumer assets

• New Business Opportunities – Payments and transaction banking

• Scale up of distribution

• Digital Bank: Use of technology to find, serve and engage with customers

• Sharper focus on geographic and client segmentation; micro-segmentation

and creation of new segments

• Focus on client level revenue and profitability

Planning Cycle III: Distribution Expansion

Consumer Bank will double its footprint over next 3 years

180 300 602

1200

0

200

400

600

800

1000

1200

1400

2008 2011 2014 2017

336 594 1110

3400

0

1000

2000

3000

4000

2008 2011 2014 2017

Branches ATMs

Consumer Bank will double its client base over next 3 years

0.9 1.2 2.7

5.4

-

2.0

4.0

6.0

2008 2011 2014 2017

mn clients

ATM expansion plan also includes co-branded

ATMs with WLA operators

Thank You!

Business of Retailing

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