investor presentation · 1.37% 67.21% 2.27% 21 lacs actual sep’09 1.07% 15.01% 2.86% 55.44% 0.98%...

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Investor PresentationInvestor Presentation

January 15 2010

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Safe Harbour

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. Actual results may differ materially from those included in these statements due to a variety of factors.

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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http://www.indusind.com/

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The Presentation Path

Driving Themes for 2009-10

Promise Vs Delivery - Q3-’10

Financial Results – Q3-’10

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Stated Ambition

Measured by:Measured by:

ProfitabilityProfitabilityProductivityProductivityEfficiencyEfficiency

To: REPOSITION IBL to a TOP 3

Performer in the NEW PRIVATE BANK space in 3 YEARS.

Measured by:Measured by:ROA, ROE, NIM, Efficiency, Net NPAs and Revenue per Employee.ROA, ROE, NIM, Efficiency, Net NPAs and Revenue per Employee.

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Delivering on the Ambition

Return on AssetsReturn on Assets

Return on EquityReturn on Equity

Net Interest MarginNet Interest Margin

Cost to Income RatioCost to Income Ratio

Net NPAsNet NPAs

Revenue / EmployeeRevenue / Employee

ActualDec-09

0.34%0.34%

6.76%6.76%

1.37%1.37%

67.21%67.21%

2.27%2.27%

21 lacs21 lacs

ActualSep’09

1.07%1.07%

15.01%15.01%

2.86%2.86%

55.44%55.44%

0.98%0.98%

29 lacs29 lacs

ActualMar’08

ActualDec-08

0.70%0.70%

12.62%12.62%

1.81%1.81%

58.34%58.34%

1.30%1.30%

24 lacs24 lacs

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1.08%1.08%

16.36%16.36%

2.94%2.94%

50.87%50.87%

0.67%0.67%

28 lacs28 lacs

6666

1.40% 1.53%

1.96%

2.60%2.86% 2.94%

FY07 FY08 FY09 Q1FY10 Q2FY10 Q3FY10

Net Interest Margin (NIM) RoA RoE

Cost to Income Ratio Net NPA Revenue/Employee (Rs Mn)

Significant improvement in operating metrics since the new management took charge in February 2008

0.34% 0.34%

0.58%

1.27%

1.07% 1.08%


6.5% 6.8%

10.4%

22.8%

15.0%16.4%


66.7% 67.2%59.8%

48.8%54.4% 50.9%


2.47%2.27%

1.14% 1.01% 0.98%0.67%


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Operating Metrics

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888

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Continue the focus on Productivity, Profitability & Efficiency.

Build Customer Propositions – Product & Services

Expand Network / Footprint.

Image makeover / build the brand.

IBL Business Plan 2009-10 : Themes

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999

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Financial Performance Highlights-FY 2009-10

Net Profit 95%

Operating Profit 67%

Revenue 47%

Net Interest Income 104%

Core Fee Income 41%

NPA 63 bps

YY-- oo

-- Y Y ––

Q3

Q3

10

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Financial Results

Q3-10 Q3-09 Y-o-Y Growth Q2-10Q-o-Q

Growth

Interest Earned 702.92 627.48 12% 655.03 7%

Interest Expended 465.22 510.90 (9%) 446.48 4%

NII 237.70 116.58 104% 208.55 14%

Non-Interest Income 116.02 133.07 (13%) 132.35 (12%)

REVENUE 353.72 249.65 42% 340.90 4%

Payments to Staff 72.99 53.56 36% 78.85 (7%)

Other Expenses 106.95 92.09 16% 106.73 -

OPERATING EXP 179.94 145.65 24% 185.58 (3%)

OPERATING PROFIT 173.78 104.00 67% 155.32 12%

Other Prov. & Cont. 44.51 29.89 49% 38.85 15%

PBT 129.27 74.11 74% 116.47 11%

Provision for taxes 41.23 29.05 42% 38.65 7%

NET PROFIT 88.04 45.06 95% 77.82 13%

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(Rs. in Crs.)

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Balance Sheet

31.12.09 31.12.08Y-o-Y

Growth 30.09.09Q-o-Q

Growth

CAPITAL AND LIABILITIES

Capital 410 355 15% 410 -

Reserves and Surplus 1975 1309 51% 1898 4%

Deposits 24755 20634 20% 22815 9%

Borrowings 3414 1814 88% 1793 90%

Other Liabilities and Provisions 2636 1973 34% 3246 -19%

TOTAL LIABILITIES 33190 26085 27% 30161 10%

ASSETS

Cash and Balances with RBI 1587 1252 27% 1674 -5%

Balances with Banks 455 706 -36% 712 -36%

Investments 10163 7815 30% 8295 23%

Advances 19090 14383 33% 17583 9%

Fixed Assets 631 623 1% 623 1%

Other Assets 1264 1306 -3% 1273 -1%

TOTAL ASSETS 33190 26085 27% 30161 10%

Core Banking (Advances + Deposit) 43845 35018 25% 40398 9%

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(Rs. in Crs.)

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Improved CASA

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4,8425,579

4,2552,9882,633

4,371

22.5%21.2%20.2%19.2%

15.7%14.9%

0

10,000

FY07 FY08 FY09 Q1FY10 Q2FY10 Q3FY1010%

15%

19%

24%

CASA (Rs. in crs) Ratio

Growing share of CASA in depositsGrowing share of CASA in deposits

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Q3-10 Q3-09 Q2-10

Profitability

ROA 1.08% 0.70% 1.07%

ROE 16.36% 12.62% 15.01%

ProductivityRevenue/Employee (Rs. in lacs) 27.51 24.24 28.64

Efficiency Ratio 50.87% 58.34% 54.44%

EfficiencyNIM 2.94% 1.81% 2.86%

Net NPA 0.67% 1.30% 0.98%

Shareholder’s WealthEPS (not annualized-Rs. per share) 2.15 1.27 2.05

Net Worth (Rs. in crs.)- excl. Reval Res. 2,152 1,428 2,074

Book Value (Rs. per share.) 52.51 40.22 50.60

Adjusted Book Value (Rs. per share) 49.37 34.93 46.41

Key Financial Indicators

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Net Interest Margin(%)

NIM NIM –– YY--oo--YY NIM NIM –– QQ--oo--QQ

Improvement in NIM on account of better management Improvement in NIM on account of better management of Yield on Advances and Cost of Deposits of Yield on Advances and Cost of Deposits

1.81%

2.94%

Q3-PY Q3-CY

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2.86%

2.94%

Q2-CY Q3-CY

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Yield on Advances

YY--oo--YY QQ--oo--Q Q

Falling yield on advances, but Falling yield on advances, but ……

14.09%

12.35%

Q3-PY Q3-CY

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13.08%12.35%

Q2-CY Q3-CY

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Cost of Deposits

YY--oo--YY QQ--oo--QQ

8.79%

6.63%

Q3-PY Q3-CY

Sharper decrease in Cost of DepositSharper decrease in Cost of Deposit

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7.19%

6.63%

Q2-CY Q3-CY

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Other Income

Q3-10 Q3-09Y-o-Y

Growth Q2-10Q-o-Q

Growth

Fee & FX 115.47 94.92 22% 128.87 (10%)

Securities/MM Market 10.67 44.65 (76%) 9.14 17%

Profit/(Loss) on sale of assets (10.42) (8.28) - (7.67) -

NPA Recovery 0.30 1.78 (83%) 2.02 (85%)

Total 116.02 133.07 (13%) 132.36 (12%)

(Rs. in Crs.)

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Core (Client) Fee Income

Q3-10 Q3-09Y-o-Y

Growth Q2-10Q-o-Q

Growth

Trade Fees (LC, BG, Remittances) 15.09 9.69 56% 13.13 15%

Processing Fees & other charges 23.89 15.02 59% 23.53 2%

FX – Client 15.57 9.04 72% 14.68 6%

TPP (Insurance ,MF ,etc ) 32.59 18.64 75% 33.16 (2%)

Account Maintenance Fees 10.83 9.86 10% 11.22 (3%)

Investment Banking Income 1.18 - - 7.17 -

Gen. Bkg. / Other Income 12.14 16.92 (28%) 14.60 9%

111.29 79.17 41% 117.49 (5%)

(Rs. in Crs.)

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Operating Expenses

Q3-10 Q3-09Y-o-Y

Growth Q2-10Q-o-Q

Growth

Payment to employees 72.99 53.56 36% 78.85 (7%)

Other Operating Expenses 106.85 92.09 15% 106.73 -

Total Operating Expenses 179.94 145.65 24% 185.58 (3%)

No. of employees 5098 4120 4762

(Rs. in Crs.)

2020

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Gross/Net NPAs

Continuous Improvement in Quality of Asset BookContinuous Improvement in Quality of Asset Book

Net NPA < 1%

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29% 30% 31%

35%

50%

Q3-09 Q4-09 Q1-10 Q2-10 Q3-10

Provision Coverage

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On path to achieve regulatory norm of 70%On path to achieve regulatory norm of 70%

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Movement in NPA

Q3-10 Q3-09

(INR in crs) CCB CFD Total CCB CFD Total

Opening Balance 66.56 198.55 265.11 226.09 198.44 424.53

Additions 4.37 34.65 39.02 9.62 52.04 61.66

Deduction 2.22 44.33 46.54 182.24 40.36 222.60

Gross NPA 68.72 188.87 257.59 53.47 210.12 263.59

Provisions 68.23 60.62 128.86 21.95 54.20 76.15

Net NPA 0.49 128.25 128.73 31.52 155.92 187.44

Total Advances 19091 14383

Gross NPA 1.34% 1.82%

Net NPA 0.67% 1.30%

Provision Coverage 50.03% 28.89%

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NPA Composition - CFD

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Com.Vehicle Utility

Const.Equip. 3W TW Cars Others TOTAL

Gross NPA 70.31 7.72 20.94 3.15 45.40 22.38 18.97 188.87

Net NPA 51.72 5.00 17.46 2.50 34.91 16.66 - 128.25Gross NPA(%) 1.89% 1.18% 1.92% 0.37% 5.24% 4.76% - 2.17%

Net NPA(%) 1.40% 0.77% 1.61% 0.29% 4.08% 3.59% - 1.65%

(Rs. in Crs.)

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Restructured Advances

(Rs. in Crs.)

Q3-10 Q3-09 Q2-10

No. Rs. in crs No. Rs. in crs No. Rs. in crs

Restructured Loans 97 64 20 33.35 115 72

Advances 19,091 14,383 17,583

% Restructured Loans 0.33% 0.23% 0.41%

No new restructuring undertaken in Q3No new restructuring undertaken in Q3--1010

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Loan Portfolio – Composition

(Rs. in Crs.)

Consumer Finance 31/12/2009 %

Comm. Vehicle Loans 3736 19%

Utility Vehicle Loans 649 3%

Three Wheeler Loans 856 4%

Two Wheeler Loans 855 4%

Car Loans 464 2%

Equipment Financing 1086 6%

Other (Home, Personal) 178 1%

Total Advances 7824 40%

Corp. & Comm. Bkg. Advances 31/12/2009 %

C&I 5790 31%

Comm. Banking 3819 20%

Loan to Small Business 1657 9%

Total 11266 60%

(Rs. in Crs.)

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Comparative analysis of CRAR under Basel I & Basel II

Basel I Basel IICredit Risk RWA 23582 20176

Market Risk RWA 300 300

Operational Risk RWA 1095

Total Risk Weighted Assets 23882 21571

Tier I 2150 2150

Tier II 836 836

Total Capital 2986 2986

CRAR 12.50% 13.84%

Tier I 9.00% 9.97%

Tier II 3.50% 3.87%

(Rs. in Crs.)

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As on date Dec-08

Branches 200 180ATMs 419 356

Our Network

Branch/Representative Office

Strategic AllianceCurrently work in progress for 10 branchesCurrently work in progress for 10 branches

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Share-Holding Pattern – 31/12/09

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Thank youThank you

investor presentation · 1.37% 67.21% 2.27% 21 lacs actual sep’09 1.07% 15.01% 2.86% 55.44% 0.98%...

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