CiN: L651 91 PN1994PLO076333 Induslnd Bank Ianuary 24,2018 The Asst. Vice President The Deputy General Manager Listing Department Corporate Relationship Dept. National Stock Exchange of India Ltd. BSE I,td. Exchange Plaza, 5th Floor I't Floor, New Trading Ring Plot No.C/l, G Block Rotunda Building, P. J. Towers Bandra-Kurla Comolex Dalal Street, Fort Bandra (East), Mumbai - 400 001 Mumbai - 400 051 NSE Symbol: INDUSINDBK BSE Scrip Code: 532187 Madam / Dear Sir, Subject: Reeulations. 20t5 (Listing Resulations we enclose herewith the Presentation made to the group of Debt Investors in Taiwan today, i.e., Januuy 24,2018. In compliance wjth the Regulation 46, the presentation is also being hosted on the Bank,s website at www.indusind.com. Kindly take the same on record and oblige. Thanking you, Yours faithfully, F'or Induslnd Bank Limited Haresh Ga Company Induslnd Bank Limited, 701-80t Solitaire Corporate Parl! 167, Guru Hargovindji Marg, Andheri (E), Mumbai - 400 093. Maharashtra, India Tel: (022) 664.122OO Fax lO2A 66412224 Rcgisteied Otli<et 2401 Gen. Thimmayya Road, Pune 41 1 oot, India Tel.: (020) 2634 3201 Faxt 1020) 2634 3241 Visit us at wwwlndusind.com CIN: 1651 91 PN1 994P1C076333
Debt Investor Presentation January 24, 2018
India – Positive Macro Outlook GDP growth bottomed out and likely to accelerate henceforth Credit growth back to double digits Bank Credit Growth (YoY) 20.0% GDP Growth (%) 7.6% 7% 6.8% 6.7% 15.0% 6.1% 5.6% 5.6% 10.7% 10.0% 5.0% 0.0% Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 H2FY18E Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Feb-17 Apr-17 Jun-17 Aug-17 Oct-17 Dec-17 Stable Currency Outlook Inflation within RBI mandate of 4% +/- 2% 12% 70 INR/USD 10% 68 8% 66 6% 64 4% 62 2% 0% 60 Feb-13 Jun-13 Oct-13 Feb-14 Jun-14 Oct-14 Feb-15 Jun-15 Oct-15 Feb-16 Jun-16 Oct-16 Feb-17 Jun-17 Oct-17 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 2 Source: CSO, RBI, Research
IndusInd Bank – Consistently Building Scale with Profitability Strength Growth Returns CRAR at 15.83%; CET1 at 14.07% 3 Year CAGR 9MFY18 RoA = 1.96% Strong Asset Quality with impaired assets Loans 27% 25% proportion amongst the lowest in Indian banks; RoE = 16.96% Deposits 28% 23% Net NPAs at 0.46% Revenue 29% 23% In top decile on productivity, profitability and NIMs = 3.99% efficiency parameters in Indian banking industry Profits 27% 25% Networth 33% 16% Note: Data as of December 2017 Revenue (Rsmn) Net Profit (Rsmn) Total Assets(Rsbn) 28,679 1,787 1,02,341 1,429 22,865 78,135 1,091 17,937 58,241 870 47,812 14,080 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 3
Overview of the Bank Leading private sector bank and financial services company in India Shareholding (1) Incorporated in January, 1994; Current customer base of ~11 million (1) and Total GDR issue, Promoters, Assets of over Rs 2,000 bn (1) 10.8% 15.0% NRIs/ Director/ Others, 2.1% Pan India presence through a network of 1,320 branches and 2,162 ATMs (1) Individuals, 6.6% MFs / Diversified loan book – Split between Corporate & Commercial Banking and Banks/ Insurance Consumer Finance at 59% and 41% respectively (1) Private Co, 11.5% Corporates, 9.5% Enterprise-wide Risk Management framework for effective management of risks Market Cap of over Rs 1,000bn (2) implying trailing P/E multiple of 30x and P/B multiple of 4.5x FIIs, 44.55% Recently announced acquisition of Bharat Financial Inclusion Limited (BFIL), a leading Microfinance Non Bank Finance company 1. As on December 31, 2017 4 2. As on January 19, 2018
Organization Structure Global Markets Transaction Banking Product Groups Business Units Client Groups Consumer Banking Corporate Banking Corporate & Investment Banking Consumer Finance Retail Liabilities Commercial Banking Banking Channel Management Financial Institutions Group & Services Business Banking Wealth Management & Third Party Distribution Public Sector Unit Credit Cards 5
Benchmarking Revenue, Risk & Returns IBL performance is in top decile when comparing with the top 5 Public Sector (PSU) and other top 5 Private Sector Banks (PB) 6 Data as of H1FY18. (Banks’ nomenclature not in any particular order)
Domestic Ratings CRISIL (1) AA + for Infra Bonds program CRISIL AA for Additional Tier I Bonds program CRISIL A1+ for certificate of deposit program IND AA+ for Senior bonds program by India Ratings and Research (2) 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 1. Indian subsidiary of S&P 7 2. Indian subsidiary of Fitch
Award Winning Brand / Franchise th Mos Win inner- Fr Fraud Forbes’ Super 50 Ranked 12 th “The Best CEO (BFSI)” ost Management an and Companies Co es in in In India ia Mr. Rom omes esh Sob obti Valu luable In India ian Br Brands Cyb Cybersecurity Br BrandZ Top op 50 Ce Cele lent Model Ban Bank Bu Busin ines ess Tod oday Forbes In India ia WPP PP Pl Plc & & Mil ilward Br Brown 2017 2017 2016 2016 2016 2016 2016 2016 8
Presentation Path Capital Adequacy 1 Asset Quality 2 Management Track Record & Strategy 3 4 Earnings Update Liquidity & Funding Profile 5 Building Sustainable Banking 6 9
1. Strong Capital Adequacy Rs bn 31 Mar 16 31 Mar 17 31 Dec 17 Bank has maintained strong capital adequacy levels well in excess of the minimum regulatory requirement Credit Risk, CVA and UFCE 994 1,220 1,350 Market Risk 55 67 96 Raised Rs 10 billion of Additional Tier I (AT1) bonds in FY17 and again in April 2017 to augment the Tier I ratio and position itself Operational Risk 115 148 148 strongly for the next phase of growth Total Risk Weighted Assets 1,163 1,435 1,594 The Bank is valued at 4.5x of Dec-2017 book value (1) CET 1 Capital Funds 174 201 224 CRAR Additional Tier 1 Capital Funds - 10 20 Tier I Tier II CRAR Tier 2 Capital Funds 7 8 8 15.9% 15.83% 15.5% 15.4% 15.3% 0.50% 13.9% 13.9% 0.6% 0.6% 180 220 252 Total Capital Funds 1.6% 3.6% 12.1% 1.1% 2.5% 0.9% CRAR 15.50% 15.31% 15.83% 15.33% 14.9% 14.7% 13.8% 12.7% 12.3% 11.4% 11.2% CET1 14.92% 14.02% 14.07% Tier 1 14.92% 14.72% 15.33% Tier 2 0.58% 0.59% 0.50% FY11 FY12 FY13 FY14 FY15 FY16 FY17 9MFY18 (1) Basis market cap as on January 19, 2018 10
1. Deploying Capital Efficiently Return on Risk Weighted Assets (RoRWA) 2.40% 2.37% 2.34% 2.32% 2.18% Q4FY17 Q1FY18 Q2FY18 Q3FY18 FY20 Ambition 11
2. Asset Quality Stable Across Cycles Gross NPA Net NPA 1.23% 0.50% 1.16% 1.12% 0.46% 1.03% 1.01% 0.98% 0.39% 0.93% 0.87% 0.36% 0.81% 0.33% 0.31% 0.31% 0.28% 0.27% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 9MFY18 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 9MFY18 Predominantly Secured Lending Credit Cost * 0.79% 90.5% 89.4% 88.1% 88.1% 88.0% 87.2% 0.61% 0.59% 0.53% 0.48% 0.48% 0.46% 0.41% 0.41% FY13 FY14 FY15 FY16 FY17 9MFY18 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 9MFY18 * Net of recoveries 12
2. Diversified Loan Book Loan Book (Rs bn) 1,285 1,285 1,232 1,131 884 52% 59% 60% 688 60% 551 59% 59% 55% 48% 41% 40% 40% 41% 41% 45% FY14 FY15 FY16 FY17 Sep-17 Dec-17 Dec-17 (BBG forming part Consumer Finance Division Corporate & Commercial Banking of Consumer) (Rs bn) (Rs bn) Small BBG Corporates Consumer Finance Dect-17 7% 4% Corporate Banking Dec-17 Comm. Vehicle Loans 179.4 14% Mid Size Large Corporates 29% Utility Vehicle Loans 26.9 2% 366.0 Utility Vehicle Comm. Vehicle Corporates Loans Small CV 24.7 2% Mid size Corporates 19% Loans 19% 240.7 2% 14% Two Wheeler Loans 35.0 3% Small CV Small Corporates* 11% 147.5 Car Loans 52.6 4% 2% Total Advances 59% 754.2 Two Wheeler Tractor 25.1 2% Loans Equipment Financing 49.8 4% 3% *Includes Business Banking (BBG) Credit Card 23.5 2% Large Car Loans Rs. 87.9 bn managed by Consumer Banking Corporates 4% Loan Against Property 78.2 6% Tractor 29% 2% BL, PL, GL, Others 36.1 3% Equipment Total Advances 41% 531.2 Loan Financing Credit Against 4% 13 BL,PL,GL Card Property 3% 6% 2%
2. Diversified Corporate Portfolio 5.39% Gems and Jewellery 3.36% Power Generation Lease Rental 3.10% Real Estate 3.02% Microfinance 2.04% Services 2.07% Telecom- Cellular 1.18% Steel 1.90% Contract Construction-Civil 1.37% Constn related to infra.- EPC 1.42% Food Beverages and Food processing 1.39% Media,Entertainment & Advt 0.89% Power Distribution 0.90% Other Industry 30.65% 14
2. Well Rated Corporate Portfolio 24% P 22% E Investment Grade Sub Investment Grade R 20% C E N 18% T 16% O Unsecured Non Fund Based % F 14% Secured Non Fund Based % Unsecured Fund Based % R 12% A Secured Fund Based % T 10% E D 8% P O 6% R T 4% F O 2% L I 0% O IB1 (AAA) IB2+ IB2 (AA) IB2- (AA-) IB3+ (A+) IB3 (A) IB3- (A-) IB4+ IB4 (BBB) IB4- (BBB- IB5+ IB5 (BB) IB5- (BB-) IB6 (B) IB7 (C ) IB8 (C ) NPA (D) (AA+) (BBB+) ) (BB+) 15
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