investor presentation - alpha ideasalphaideas.in/.../2013/03/...presentation-q3-fy13.pdf ·...
TRANSCRIPT
Investor Presentation
January 09, 2013
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.
NIM recovery on track - Net Interest Income grew 34% Y-o-Y & 13% Q-o-Q
Non-Interest Income to revenue remains healthy at 38%
Consistent growth in Core Fee Income 32% Y-o-Y & 11% Q-o-Q
Credit growth above industry 31% Y-o-Y & 8% Q-o-Q
Low exposure to stressed / sensitive sectors
Net NPA 0.30%; PCR 70.30%; Restructured Advances 0.26%
Q3 F
Y13 P
ER
FO
RM
AN
CE
HIG
HL
IGH
TS
Steady performance in deteriorating macro economic environment
Credit cost at 16 bps
3
4
Theme for Planning Cycle II - 2011-14 – ‘Invest to grow’ phase
Scale with Profitability
5
Planning Cycle II – Pillars of Growth
Growing
Consumer
Finance book
To grow beyond Rs. 25,000 crs by March 2014
To be funded through CASA
CASA growth CASA to reach > 35% by March 2014
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.
Cons. Finance book
Rs. 21,691 crs Growth 38%
Growth-26%
CASA-28.67%
83%
Fee Growth
32%
31%
Q3-13 outcome
6
Planning Cycle II – Key Initiatives
Used Commercial
Vehicles
Scale up Investment
Banking practiceCredit Cards Launched
Full suite Assets
Portfolio
(LAP / Home Loans)
New Client Acquisition
Ramp-up
Offshore branches,
NRE Deposits
Supply
Chain Products
New Branch rollouts &
Currency Chests
CBS rollout
(Completed Dec 2012)
"On Track " performance on all initiatives
7
7
How We Measure Up On Key Metrics
7
Net Interest Margin (NIM) RoA RoE*
Cost to Income Ratio Net NPA
Consistent delivery of strong operating performance
3.25% 3.29%3.22% 3.25%
3.46%
Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13
19.12%20.00% 20.35% 20.45%
17.37%
Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13
49.80% 49.88%49.68% 49.43% 49.43%
Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13
0.29%0.27% 0.27%
0.29% 0.30%
Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13
*on average equity
Revenue/Employee(Rs. Lacs)
32 32 31 3033
Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13
1.55% 1.60% 1.57% 1.56% 1.60%
Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13
QIP – Rs
2000 crs
8
Ratings
ICRA AA for Lower Tier II subordinate debt program by ICRA
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
IND AA- for Long Term Debt Instruments by India Ratings and Research
IND A1+ for Short Term Debt Instruments by India Ratings and Research
Financial Performance
10
Strong Headline Numbers for Q3FY13
Net Interest
IncomeRs 577.80 crs 34%
Other Income Rs 355.80 crs 34%
Revenue Rs 933.60 crs 34%
Operating
ProfitRs 472.16 crs 35%
Net
ProfitRs 267.27 crs 30%
Y-o-Y Growth
13%
11%
12%
12%
7%
Q-o-Q Growth
Core Fee Income Rs 329.29 crs 32% 11%
11
Top line momentum
Advances Rs 42,426 crs 31%
Corporate Advances Rs 20,735 crs 24%
Consumer Finance
AdvancesRs 21,691 crs 38%
CASA Rs 14,651 crs 36%
Y-o-Y Growth
8%
9%
6%
10%
Q-o-Q Growth
Deposits Rs 51,098 crs 26% 7%
12
Balance Sheet
(Rs crs)
Q3FY13 Q3FY12 Y-o-Y (%) Q2FY13 Q-o-Q (%)
Capital & Liabilities
Capital 522 467 12% 470 1%
Reserves and Surplus 6,973 4,168 67% 4,773 46%
Deposits 51,098 40,558 26% 47,765 7%
Borrowings 6,567 8,137 (19%) 6,745 (3%)
Other Liabilities and Provisions 2,736 1,803 52% 2,308 19%
Total 67,896 55,133 23% 62,061 9%
Assets
Cash and Balances with RBI 2,845 2,960 (4%) 2,859 (1%)
Balances with Banks 2,631 876 200% 1,580 67%
Investments 17,594 15,362 15% 15,609 13%
Advances 42,426 32,426 31% 39,427 8%
Fixed Assets 731 635 15% 695 5%
Other Assets 1,669 2,875 (42%) 1,891 (12%)
Total 67,896 55,133 23% 62,061 9%
Business (Advances + Deposit) 93,524 72,983 28% 87,192 7%
13
Profit and Loss Account (Quarter)
(Rs crs)
Q3FY13 Q3FY12 Y-o-Y (%) Q2FY13 Q-o-Q (%)
Net Interest Income 577.80 430.66 34% 509.73 13%
Other Income 355.80 265.12 34% 320.49 11%
Total Income 933.60 695.77 34% 830.22 12%
Operating Expenses 461.44 346.53 33% 410.40 12%
Operating Profit 472.16 349.24 35% 419.82 12%
Provisions &
Contingencies78.68 42.83 84% 49.07 60%
Profit before Tax 393.48 306.41 28% 370.75 6%
Provision for Tax 126.21 100.45 26% 120.50 5%
Profit after Tax 267.27 205.96 30% 250.25 7%
14
Profit and Loss Account (9 months)
(Rs crs)
9M-FY13 9M-FY12 Y-o-Y (%)
Net Interest Income 1,571.63 1,239.85 27%
Other Income 995.07 719.73 38%
Total Income 2,566.70 1,959.58 31%
Operating Expenses 1,270.69 965.74 32%
Operating Profit 1,296.01 993.94 30%
Provisions & Contingencies 181.25 134.39 35%
Profit before Tax 1,114.76 859.55 30%
Provision for Tax 360.98 280.32 29%
Profit after Tax 753.78 579.23 30%
Key Financial Indicators
15
Q3FY13 Q3FY12 Q2FY13
Return on Assets 1.60% 1.55% 1.56%
ROE (On average equity) 17.37% 19.12% 20.45%
Cost / Income Ratio 49.43% 49.81% 49.43%
Net Interest Margin 3.46% 3.25% 3.25%
Net NPA 0.30% 0.29% 0.29%
EPS (annualized, Rs. per share) 22.04 17.64 21.32
Net Worth (Rs. in crs) excl Reval Reserve 7,282 4,413 5,025
Book Value (Rs. per share) 139.48 94.55 106.76
Corporate
Banking31 Dec-12
Large Corporates 11,202 26%
Mid size
Corporates6,205 15%
Small Corporates 3,328 8%
Total Advances 20,735 49%
16
40% 44%49% 52% 51%
60%
56%
51%48%
49%
20,551
26,166
35,064
39,427 42,426
FY10 FY11 FY12 Sep-12 Dec-12
Consumer Finance Division Corporate & Commercial Banking
Well Diversified Loan Book
Loan Book (Rs crs)
Consumer Finance 31 Dec-12
Comm. Vehicle Loans 9,757 23%
Utility Vehicle Loans 1,758 4%
Small CV 2,192 5%
Two Wheeler Loans 1,815 4%
Car Loans 1,995 5%
Equipment Financing 2,675 6%
Credit Card 333 1%
Loan Against Property 1,069 3%
Home, PL, etc 97 -
Total Advances 21,691 51%
(Rs crs)
(Rs crs)
Comm. Vehicle Loans 23%
Utility Vehicle Loans
4%
Small CV5%
Two Wheeler Loans
4%Car
Loans5%
Equipment Financing
6%Credit Card
1%
Loan Against Property
3%
Large Corporate26%
Medium Corporate
15%
Small Business
8%
1717
Diversified Corporate Loan Book
4.73%
3.04%
2.95%
1.92%
1.80%
1.75%
1.55%
1.30%
1.11%
28.72%
NBFCs (other than HFCs)
Lease Rental
Power
Pharma
Gems and Jewellery
Constn related to infra.- EPC
Real Estate Developers
Steel
Paper
Other Industry
1818
Well Rated Corporate Portfolio
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
22%
24%
26%
28%
30%
32%
34%
36%
38%
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
Building CASA traction
Expanding branch network
Some leverage from SA rate advantage
Focus on target market segments
Government business
Capital market flows
Key Non Resident markets
Self employed and Emerging Corporate businesses
Differentiated Service Propositions
19
Improving CASA profile
10,62710,757
11,56312,557 13,365
14,651
27.7%26.5% 27.3% 27.9% 28.0% 28.7%
10%
16%
21%
27%
33%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13
CASA (Rs.crs) % of Total Deposits
CASA Uptick
Savings Account (SA)
3,294
3,977
4,694 5,139 5,312
6,162
8.6%
9.8%11.1% 11.4% 11.1%
12.1%
0%
2%
4%
6%
8%
10%
12%
1
1,001
2,001
3,001
4,001
5,001
6,001
7,001
Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q2FY13
SA (Rs.crs) % of Total Deposits
Current Account (CA)
7,333 6,780 6,869 7,4188,053 8,489
19.1%
16.7% 16.2% 16.5%16.9% 16.6%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13
CA (Rs.crs) % of Total Deposits
20
Other Income
(Rs crs)
Q3FY13 Q3FY12 Y-o-Y (%) Q2FY13 Q-o-Q(%)
Core Fee 329.29 250.34 32% 296.10 11%
Securities/MM/FX Trading 17.72 13.09 52% 21.75 (19%)
Others 8.79 1.68 - 2.64 -
Total 355.80 265.11 34% 320.49 11%
21
Diverse Revenues from Core Fee Income
(Rs crs)
Growth momentum continues on regular fee flows
Q3FY13 Q3FY12 Y-o-Y(%) Q2FY13 Q-o-Q(%)
Trade & Remittances 43.37 33.21 31% 40.28 8%
Foreign Exchange Income 82.87 60.13 38% 65.84 26%
Distribution Fees
( Insurance, MF, Cr. Card ) 68.06 66.30 3% 67.40 1%
General Banking Fees 33.37 27.79 20% 33.11 1%
Loan Processing fees 66.07 41.60 59% 56.64 17%
Investment Banking 35.54 21.31 67% 32.84 8%
Total Core Fee Income 329.29 250.34 32% 296.10 11%
22
Yield / Cost Movement
Q3FY13 Q2FY13
Outstanding
(Rs crs)
Yield
(%)
Outstanding
(Rs crs)
Yield
(%)
Corporate Bank 20,735 11.63% 18,993 11.84%
Consumer Finance 21,691 15.94% 20,434 16.11%
Total 42,426 13.72% 39,427 13.94%
Segment-wise Yield
•Yield on Assets/Cost of funds are based
on Total Assets/Liabilities
10.75% 10.80%
13.72% 13.94%
8.43% 8.68%
7.29%7.55%
Q3FY13 Q2FY13
Yield on Assets
Yield on Advances
Cost of Deposits
Cost of Funds
23
Credit costs
FY09 FY10 FY11 FY12 Q2FY13 Q3FY13 9MFY13
Corporate Bank 78.08 85.86 81.99 61.11 16.22 52.37 90.01
Consumer Finance 82.70 75.77 78.34 81.46 25.87 16.23 65.94
Total Credit Costs 160.78 161.63 160.33 142.57 42.09 68.60 155.95
Credit Costs
(Basis Points on Advances)102 79 61 41 11 16 37
PCR 30% 60% 73% 73% 72% 70% 70%
(Rs crs)
49% 53% 51%43% 39%
76%
58%
51% 47% 49%57% 61%
24%
42%
FY09 FY10 FY11 FY12 Q2FY13 Q3FY13 9MFY13
Corporate Loan Book Consumer Finance Loan Book
24
Loan Portfolio - Movement in NPA and Restructured Advances
Q3FY13 Q2FY13
Corporate Consumer Total Corporate Consumer Total
Opening Balance 186 224 410 153 212 365
Additions 105** 80** 185 42 71* 113
Deductions 109** 64** 173 9 59* 68
Gross NPA 182 240 422 186 224 410
Net NPA 45 80 125 51 63 114
% of Gross NPA 0.99% 1.03%
% of Net NPA 0.30% 0.29%
Provision Coverage Ratio
(PCR) 70.30% 72.09%
Restructured Advances 0.26% 0.19%
(Rs crs)
* includes sale to ARC Rs. 21 crs
**ncludes sale to ARC Rs. 75 crs
NPA Composition – Consumer Finance - Vehicles
25
(Rs crs)
Q2-FY13Com.
Vehicle Utility
Const.
Equip. Small CV TW Cars
Gross NPA 72 14 21 19 57 13
Net NPA 17 2 2 12 24 3
Gross NPA % 0.75% 0.86% 0.84% 0.90% 3.36% 0.71%
Net NPA % 0.17% 0.14% 0.09% 0.56% 1.43% 0.19%
Q3-FY13Com.
Vehicle Utility
Const.
Equip. Small CV TW Cars
Gross NPA 89 13 26 20 66 13
Net NPA 31 1 7 10 26 3
Gross NPA % 0.90% 0.75% 0.96% 0.92% 3.55% 0.64%
Net NPA % 0.32% 0.08% 0.26% 0.45% 1.45% 0.13%
26
CRAR - Basel II
31 December-12 31 December-11
Risk Weighted Assets
- Credit Risk 43,464 32,074
- Market Risk 1,539 670
- Operational Risk 3,443 2,408
- Total RWA 48,445 35,152
Tier I Capital Funds 6,441 3,762
Tier II Capital Funds 830 958
Total Capital Funds 7,271 4,720
CRAR 15.01% 13.43%
Tier I 13.30% 10.70%
Tier II 1.71% 2.73%
CRAR (with profit) 16.56% 15.08%
Tier I 14.85% 12.35%
Tier II 1.71% 2.73%
(Rs crs)
Particulars FY10 FY11 FY12Dec
31,2012
Branch Network 210 300 400* 461*
ATMs 497 594 692 852
Strengthening Distribution Infrastructure
*includes 19 specialized branches
27
London
DubaiQatar
UAE
• Branch/Representative Office
• Strategic Alliance
Note: Numbers given above are
total branches in each state
Distribution Expansion to Drive Growth
Assa
m 9
J & K
2
HP 2
Chandigarh
2Punja
b
30Harya
na
24
Delhi
24
UP
27
MP
18
Gujar
at
32
Rajasth
an
33
Harya
na
22
WB
31
Bihar
6
Uttarakha
nd
1
D & NH
2
Maharashtra
50
Oriss
a 22
Goa 4
Pondicherry
1
Andhra
Pradesh
35
Karnata
ka
22
Keral
a
22
Tamil
Nadu
37
Maharash
tra 51
Maharash
tra 50
Chhattisgar
h 7
Jharkhand
11Tripura
2Mizoram
1
Meghala
ya 1
Sikkim
2
28
Shareholding Pattern
As at December 31, 2012
Promoters15.3%
FIIs39.1%
GDR issue12.4%
NRIs/ Director/ Others1.7%
Private Corporates15.0%
Individuals7.7%
MFs / Banks/ Insurance Co
8.8%
ACCOLADES
29
BA Banking Technology Awards
2nd Runners-Up- Best Online Bank- Best use of Business Intelligence- Best use of Mobility technology in Banking
1st Runners- Up- Best Risk Management & IT Security- Best Use of Technology in training & e Learning
-The best bank award among small banks for ‘IT forEffectiveness
Institute for Development and Research in Banking Technology (IDRBT).
ACCOLADES
30
Sunday Standard Finwiz 2012 - Best Bankers’ Awards
Best Private Sector Banker(Category- Medium) Romesh Sobti , MD & CEO, IndusInd Bank Ltd.
Best Indian Banker(Category- Medium) Romesh Sobti , MD & CEO, IndusInd Bank Ltd.
31
31
31
CIO Magazine - Top Green IT Enterprise Award 2012
Top 100 CISO (Chief Information Security Officer) Awards 2012
Panasonic Green Globe foundation Award 2012 in the “Business Enterprise Services”
(UNEP/TERI/KPMG)
NASSCOM IT User Award 2012 for “Environmental Sustainability” (Frost & Sullivan)
The CII Environmental Best Practice Award 2012 for the “Most Innovative Project
ACCOLADES
32
32
32
ACCOLADES
Banking Frontier –Finnoviti 2012 Awards for 2 innovations:- Cash on mobile- Direct connect for select customers
National Payments Corporation of India –Operational Excellence Awards –Special Jury award for effectively managing charge backs
Thank you