Investor Presentation - aceanalyser.com Meet/132187_20111018.pdf · IndusInd Bank’sequity shares...
Transcript of Investor Presentation - aceanalyser.com Meet/132187_20111018.pdf · IndusInd Bank’sequity shares...
Investor Presentation
Oct 18, 2011
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
3
Theme for Planning Cycle II - 2011-14 – ‘Invest to grow’ phase
Scale with Profitability
4
Planning Cycle II – Pillars of Growth
Growing CFD
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 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.
CFD book
Rs.14,081 crs
Growth 44%
28%
79%
30%
28%
Q2 outcome
5
Planning Cycle II – Key Initiatives
Used Commercial
Vehicles
Scale up Investment
Banking practiceCredit Cards
Launched
Full suite Assets
Portfolio
New Client Acquisition
Ramp-upCurrency Chest
Factoring
&
Supply
Chain Products
New Branch rollouts CBS rollouts
6
How We Measure Up On Key Metrics
Net Interest Margin (NIM) RoA RoE*
Cost to Income Ratio Net NPA
Consistent delivery of strong operating performance
2.88%
3.47%3.41%
3.35%
FY10 FY11 Q1FY12 Q2FY12
1.55%1.59%1.46%
1.14%
FY10 FY11 Q1FY12 Q2FY12
19.49% 19.27%18.41%
18.81%
FY10 FY11 Q1FY12 Q2FY12
51.12%
48.25% 48.51%
49.43%
FY10 FY11 Q1FY12 Q2FY12
1.14%
0.50%
0.30% 0.31%
FY10 FY11 Q1FY12 Q2FY12
*on average equity
Revenue/Employee(Rs. Lacs)
27
30 30 32
FY10 FY11 Q1FY12 Q2FY12
7
Ratings
‘ICRA AA’(upgraded from ICRA AA-) for Lower Tier II subordinate debt program and
‘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 and ‘Fitch A1+’ for Short Term Debt
Instruments by Fitch Ratings
Financial Performance
9
Strong Headline Numbers for Q2FY12
Net Interest
IncomeRs 419.20 crs 27%
Other Income Rs 239.21 crs 37%
Revenue Rs 658.40 crs 30%
Operating
ProfitRs 332.98 crs 27%
Net
ProfitRs 193.09 crs 45%
Y-o-Y Growth
10
Top line momentum
Advances Rs 30,135 crs 28%
CCBG Advances Rs 16,054 crs 17%
CFD Advances Rs 14,081 crs 44%
CASA Rs 10,626 crs 34%
Y-o-Y Growth
6%
2%
11%
7%
Q-o-Q Growth
Deposits Rs 38,367 crs 23% 9%
11
Balance Sheet
Q2FY12 Q2FY11 Y-o-Y (%) Q1FY12 Q-o-Q (%)
Capital & Liabilities
Capital 467 461 1% 466 -
Reserves and Surplus 3,962 3,352 18% 3,765 5%
Deposits 38,367 31,290 23% 35,264 9%
Borrowings 5,985 3,632 65% 6,642 (10%)
Other Liabilities and Provisions 1,675 2,013 (17%) 1,701 (2%)
Total 50,456 40,748 24% 47,838 5%
Assets
Cash and Balances with RBI 3,216 2,638 22% 2,461 31%
Balances with Banks 619 807 (23%) 775 (20%)
Investments 14,286 12,000 19% 14,233 -
Advances 30,135 23,452 28% 28,384 6%
Fixed Assets 624 651 (4%) 613 2%
Other Assets 1,576 1,200 31% 1,372 15%
Total 50,456 40,748 24% 47,838 5%
Business (Advances + Deposit) 68,519 54,742 25% 63,648 8%
(Rs crs)
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Profit and Loss Account (Quarterly)
Q2FY12 Q2FY11 Y-o-Y (%) Q1FY12 Q-o-Q (%)
Net Interest Income 419.19 329.73 27% 390.01 7%
Other Income 239.21 175.12 37% 215.40 11%
Total Income 658.40 504.85 30% 605.41 9%
Operating Expenses 325.42 243.00 34% 293.69 11%
Operating Profit 332.98 261.85 27% 311.72 7%
Provisions & Contingencies 46.97 56.71 (17%) 44.59 5%
Profit before Tax 286.01 205.14 39% 267.13 7%
Provision for Tax 92.92 71.98 29% 86.95 7%
Profit after Tax 193.09 133.15 45% 180.18 7%
(Rs crs)
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Profit and Loss Account (Half Yearly)
HY 2012 HY 2011 Y-o-Y (%)
Net Interest Income 809.21 625.41 29%
Other Income 454.61 336.07 35%
Total Income 1,263.81 961.48 31%
Operating Expenses 619.11 469.03 32%
Operating Profit 644.70 492.45 31%
Provisions & Contingencies 91.56 105.44 (13%)
Profit before Tax 553.14 387.01 43%
Provision for Tax 179.88 135.31 33%
Profit after Tax 373.27 251.70 48%
(Rs crs)
Key Financial Indicators
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Q2FY12 Q2FY11 Q1FY12
Return on Assets 1.55% 1.38% 1.59%
ROE (On average Equity) 18.81% 20.83% 18.41%
Revenue / Staff Cost 5.52 5.17 5.22
Cost / Income Ratio 49.43% 48.13% 48.51%
Net Interest Margin 3.35% 3.41% 3.41%
Net NPA 0.31% 0.36% 0.30%
EPS (annualized, Rs. per share) 16.56 12.84 15.47
Net Worth (Rs. in crs) excl Revaluation Reserve 4,205 3,583 4,007
Book Value (Rs. per share.) 90.12 77.65 86.00
Comm. Vehicle Loans 22%
Utility Vehicle Loans
3%
Three Wheeler Loans
6%
Two Wheeler Loans
4%Car
Loans4%
Equipment Financing
6%
Credit Card1%
Others (Home , LAP )
1%
C&I 29%
Commercial Banking
15%
Loan to Small Business
9%
15
57% 45%44% 47%
43%55%
56%53%
15,771
20,551
26,16630,135
FY09 FY10 FY11 Q2FY12
Consumer Finance Division Corporate & Commercial Banking
Well Diversified Loan Book
Loan Book (Rs crs)
30 Sep-11 %
C&I 8,750 29
Comm. Banking 4,508 15
Loan to Small Business 2,796 9
Total 16,054 53
Consumer Finance 30 Sep-11 %
Comm. Vehicle Loans 6,755 22
Utility Vehicle Loans 1,010 3
Three Wheeler Loans 1,697 6
Two Wheeler Loans 1,289 4
Car Loans 1,075 4
Equipment Financing 1,706 6
Credit Card 239 1
Other (Home, LAP) 310 1
Total Advances 14,081 47
(Rs crs)
(Rs crs)
1616
Diversified Corporate Loan Book
5.28%
4.28%
2.95%
2.96%
3.23%
1.76%
1.44%
1.46%
1.20%
1.01%
1.03%
26.67%
As on September 30,2011
NBFCs
Construction
Real Estate
Pharmaceuticals
Telecom & Related
Power Generation
Automobiles Ancillaries
Gem & Jewellery
Hospital & Medical Services
Steel
Aluminium
Other Industries
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And Improving Liability and CASA
6,6637,959
8,2149,331 9,946 10,627
24.3% 25.4%
26.8% 27.2% 28.2%
27.7%
10%
16%
21%
27%
33%
0
2,000
4,000
6,000
8,000
10,000
12,000
Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12
CASA (Rs.crs) % of Total Deposits
CASA Uptick Strong management focus on
Building CASA through
• New product launches
• Expanding branch network
• Focus on self employed ,small business and
Emerging Corporate
• Targeting CA and SA pools
• Focus on IPO and Dividend Mandate
Broad basing wholesale deposits
Tenor mapping
Current Account (CA)
4,6235,598 5,628
6,272 6,7177,333
16.9%17.9% 18.4% 18.3%
19.1% 19.2%
5%
9%
13%
17%
21%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12
CA (Rs.crs) % of Total Deposits
Savings Account (SA)
2,040
2,3612,586
3,059 3,229 3,294
7.5%
7.6% 8.4%8.9%
9.2%8.6%
0%
2%
4%
6%
8%
10%
1
501
1,001
1,501
2,001
2,501
3,001
3,501
Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12
SA (Rs.crs) % of Total Deposits
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Other Income
Q2FY12 Q2FY11 Y-o-Y (%) Q1FY12 Q-o-Q(%)
Core Fee 211.87 163.14 30% 187.07 13%
Securities/MM/FX Trading 23.89 12.16 96% 27.79 (15%)
Profit/(Loss) on Other Assets 0.49 (0.18) - 0.54 (9%)
Others 2.96 - - -- -
Total 239.21 175.12 37% 215.40 11%
(Rs crs)
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Diverse Revenues from Core Fee Income
Q2FY12 Q2FY11 Y-o-Y(%) Q1FY12 Q-o-Q(%)
Trade & Remittances 28.55 22.21 29% 25.49 12%
Foreign Exchange Income 52.30 31.65 62% 42.27 24%
Distribution Fees
(Insurance, MF , Cr. Card )57.08 39.54 44% 52.35 9%
General Banking Fees 26.85 21.88 23% 23.82 13%
Loan Processing fees 39.13 29.35 33% 33.17 18%
Investment Banking 7.96 18.51 (57%) 9.97 (20%)
Total Core Fee Income 211.87 163.14 30% 187.07 13%
(Rs crs)
Growth momentum continues on regular fee flows
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Yield / Cost Movement
10.50%
8.84%10.04%
13.81%
12.10%
13.52%
8.16%
5.99%
7.71%7.15%
5.43%
6.63%
Q2FY12 Q2FY11 Q1FY12
Yield on Assets
Yield on Advances
Cost of Deposits
Cost of Funds
Q2FY12 Q1FY12
Outstanding
(Rs crs)
Yield
(%)
Outstanding
(Rs crs)
Yield
(%)
Corporate and Commercial Banking(CCB) 16,054 11.78% 15,683 11.22%
Consumer Finance Division(CFD)* 14,081 16.36% 12,701 16.32%
Total 30,135 13.81% 28,384 13.52%
Segment-wise Yield
•Yield on Assets/Cost of funds are based
on Total Assets/Liabilities
*including LAP/Credit Card business
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Credit costs
FY08 FY09 FY10 FY11 Q1FY12 Q2FY12 HY FY 12
Corporate Loan Book(CCB) 29.82 78.08 85.86 81.99 15.83 20.06 35.89
Consumer Finance Loan
Book(CFD)50.80 82.70 75.77 78.34 22.86 19.86 42.72
Total Credit Costs 80.62 160.78 161.63 160.33 38.69 39.92 78.61
Credit Costs
(Basis Points on Advances)63 102 79 61 14 13 26
PCR 26% 30% 60% 73% 73% 72% 72%
37%49% 53% 51%
41%50%
59%50%49%47%51%
63%
FY08 FY09 FY10 FY11 Q1FY12 Q2FY12
Corporate Loan Book Consumer Finance Loan Book
(Rs crs)
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Loan Portfolio - Movement in NPA and Restructured Advances
Q2FY12 Q1FY12
CCB CFD Total CCB CFD Total
Gross NPA 104 228 332 94 215 309
Net NPA 8 85 93 7 77 84
% of Gross NPA 1.09% 1.08%
% of Net NPA 0.31% 0.30%
Provision Coverage Ratio (PCR) 72% 73%
Restructured Advances 0.30% 0.37%
(Rs crs)
NPA Composition – CFD - Vehicles
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(Rs crs)
Q1-12Com.
Vehicle Utility
Const.
Equip. 3W TW Cars
Gross NPA 65 14 23 16 46 14
Net NPA 19 7 9 12 18 4
Gross NPA % 1.06% 1.54% 1.44% 1.08% 3.73% 1.41%
Net NPA % 0.31% 0.80% 0.60% 0.79% 1.55% 0.46%
Q2-12Com.
Vehicle Utility
Const.
Equip. 3W TW Cars
Gross NPA 72 16 26 17 50 11
Net NPA 22 9 11 12 22 4
Gross NPA % 1.06% 1.58% 1.51% 0.97% 3.77% 1.24%
Net NPA % 0.33% 0.85% 0.66% 0.72% 1.69% 0.38%
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CRAR - Basel II
30 Sept-11 30 Sep-10
Risk Weighted Assets
- Credit Risk 29,828 25,030
- Market Risk 659 458
- Operational Risk 2,408 1,578
- Total RWA 32,896 27,066
Tier I Capital Funds 3,761 3,294
Tier II Capital Funds 949 1,096
Total Capital Funds 4,710 4,390
CRAR 14.32% 16.22%
Tier I 11.43% 12.17%
Tier II 2.89% 4.05%
CRAR(with profit) 15.45% 17.15%
Tier I 12.56% 13.10%
Tier II 2.89% 4.05%
(Rs crs)
25
Distribution Expansion to Drive Growth
As at, end FY09 FY10 FY11 Q2FY12
Branch Network 180 210 300 350*
ATMs 356 497 594 666
Strengthening Distribution Infrastructure
Branch/Representative Office
Strategic Alliance
*includes 19 specialized branches
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Shareholding Pattern
As at September 30, 2011
Promoters19.5%
FIIs35.2%
GDR issue13.9%
NRIs/ Director/ Others2.6%
Private Corporates
12.4%
Individuals9.2%
MFs / Banks/ Insurance Co
7.2%
Thank you