July 08,2011 - aceanalyser.com Meet/132187_20110708.pdfIndusInd Bank’sequity shares are listed and is available on our website . 3 Theme for Planning Cycle II - 2011-14

Investor Presentation

July 08,2011

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.

http://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.

Growth 41%

28%

80%

44%

31%

Q1 outcome

5

Planning Cycle II – Key Initiatives

Used Commercial

Vehicles

Scale up Investment

Banking practiceCredit Cards Launch

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

QoQ delivery of strong operating performance

3.41%3.50%

3.61%

3.41%3.32%

Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12

1.33%

1.38%

1.54% 1.55%

1.59%


21.89%20.83%

16.44%18.13% 18.41%


49.50%

48.13%47.91% 47.69%

48.51%


0.38%

0.30%0.28%

0.36% 0.36%


*on average equity

Revenue/Employee(Rs. Lacs)

3132 34 33

30


7

Ratings

P1+ for certificate of deposit program by CRISIL

‘LAA-’ for Lower Tier II subordinate debt program and ‘LA+’ for Upper Tier II bond

program by ICRA

‘CARE AA’(upgrade in June-11) for Lower Tier II subordinate debt program by

CARE

‘AA-(ind)’ for Lower Tier II subordinate debt program ,‘A(ind)’ for Upper Tier II bond

program and F1+ for Short Term program by Fitch Ratings

Financial Performance

9

Strong Headline Numbers for Q1FY12

Net Interest

IncomeRs 390 crs 32%

Core Fee Rs 187 crs 44%

Revenue Rs 605 crs 33 %

Operating

ProfitRs 312 crs 35 %

Net

ProfitRs 180 crs 52 %

Y-o-Y Growth

10

Top line momentum

Advances Rs 28,384 crs 31%

CCBG Advances Rs 15,683 crs 24 %

CFD Advances Rs 12,701 crs 41 %

CASA Rs 9,946 crs 49 %

Y-o-Y Growth

8%

8 %

9 %

7 %

Q-o-Q Growth

Deposits Rs 35,264 crs 29% 3%

11

Balance Sheet

Q1FY12 Q1FY11 Y-o-Y (%) Q4FY11 Q-o-Q (%)

Capital & Liabilities

Capital 466 411 13% 466 -

Reserves and Surplus 3,765 2,108 79% 3,584 5%

Deposits 35,264 27,382 29% 34,365 3%

Borrowings 6,642 4,185 59% 5,525 20%

Other Liabilities and Provisions 1,701 1,419 20% 1,694 -

Total 47,838 35,505 35% 45,635 5%

Assets

Cash and Balances with RBI 2,461 2,089 18% 2,456 -

Balances with Banks 775 435 78% 1,569 (51%)

Investments 14,233 9,422 51% 13,551 5%

Advances 28,384 21,608 31% 26,166 8%

Fixed Assets 613 649 (6%) 596 3%

Other Assets 1,372 1,302 5% 1,297 6%

Total 47,838 35,505 35% 45,635 5%

Business (Advances + Deposit) 63,648 48,991 30% 60,531 5%

(Rs crs)

12

Profit and Loss Account

Q1FY12 Q1FY11 Y-o-Y (%) Q4FY11 Q-o-Q (%)

Net Interest Income 390.01 295.68 32% 388.08 1%

Other Income 215.40 160.96 34% 181.63 19%

Total Income 605.41 456.64 33% 569.71 6%

Operating Expenses 293.69 226.03 30% 271.68 8%

Operating Profit 311.72 230.61 35% 298.03 5%

Provisions & Contingencies 44.59 48.74 (8%) 40.25 11%

Profit before Tax 267.13 181.87 47% 257.78 4%

Provision for Tax 86.95 63.32 37% 86.02 1%

Profit after Tax 180.18 118.55 52% 171.76 5%

(Rs crs)

Key Financial Indicators

13

Q1FY12 Q1FY11 Q4FY11

ROA 1.59% 1.33% 1.55%

ROE 18.41% 21.89% 18.13%

Revenue/Staff Cost 5.22 4.81 5.54

Cost/Income Ratio 48.51% 49.50% 47.69%

NIM 3.41% 3.32% 3.50%

Net NPA 0.30% 0.38% 0.28%

EPS (annualized, Rs. per share) 15.47 11.56 14.76

Net Worth (Rs. in crs) excl Revaluation Reserve 4,007 2,288 3,825

Book Value (Rs. per share.) 86.00 55.68 82.08

14

57% 45%44% 45%

43%55%

56%55%

15,771

20,551

26,16628,384

-3000

2000

7000

12000

17000

22000

27000

32000

FY09 FY10 FY11 Q1FY12

Consumer Finance Division Corporate & Commercial Banking

Well Diversified Loan Book

Loan Book (Rs crs)

30 Jun-11 %

C&I 8,604 30

Comm. Banking 4,334 15

Loan to Small Business 2,743 10

Total 15,683 55

Consumer Finance 30 Jun-11 %

Comm. Vehicle Loans 6,158 22

Utility Vehicle Loans 910 3

Three Wheeler Loans 1,501 5

Two Wheeler Loans 1,199 4

Car Loans 947 3

Equipment Financing 1,600 6

Credit Card 241 1

Other (Home, Personal) 147 1

Total Advances 12,701 45

(Rs crs)

(Rs crs)

Comm. Vehicle Loans 22% Utility Vehicle

Loans 3% Three

Wheeler Loans

5%Two Wheeler

Loans4%

Car Loans3%

Equipment Financing

6%Credit Card

1%

C&I 30%

Commercial Banking

15%

Loan to Small Business

10%

Others(Home, Personal)

1%

1515

Diversified Corporate Loan Book

5.37%

3.88%

3.28%

3.13%

2.64%

1.89%

1.61%

1.48%

1.29%

1.28%

1.17%

28.23%

As on June 30,2011

NBFCs

Construction

Real Estate

Pharmaceuticals

Telecom & Related

Power Generation

Automobiles Ancillaries

Gem & Jewellery

Hospital & Medical Services

Steel

Aluminium

Other Industries

16

And Improving Liability and CASA

6,322 6,663 7,959

8,214 9,3319,946

23.7% 24.3%

25.4%26.8% 27.2% 28.2%

10%

16%

21%

27%

33%

0

2,000

4,000

6,000

8,000

10,000

12,000

Q4FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12

CASA (Rs.crs) Ratio

CASA Uptick Strong management focus on

Building CASA through

• New product launches

• Expanding branch network

• Focus on self employed ,small business and

Emerging Corporate Groups(ECG)

• Targeting CA and SB pools

• Focus on IPO and Dividend Mandate

Broad basing wholesale deposits

Tenor mapping

Current Account (CA)

4,407 4,6235,598 5,628

6,272 6,717

16.5% 16.9%17.9% 18.4% 18.3%

19.1%

5%

9%

13%

17%

21%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000


CA (Rs.crs) % of Total Deposits

Savings Account (SA)

1,915

2,040 2,3612,586 3,059

3,229

7.2%

7.5%7.6%

8.4%

8.9%9.2%

5%

7%

9%

11%

0

500

1,000

1,500

2,000

2,500

3,000

3,500


SA (Rs.crs) % of Total Deposits

17

Other Income

Q1FY12 Q1FY11 Y-o-Y (%) Q4FY11 Q-o-Q(%)

Core Fee 187.07 129.58 44% 164.85 13%

Securities/MM/FX Trading 27.79 28.64 (4%) 19.23 44%

NPA Recovery - 3.00 - -- -

Loss on Other Assets 0.54 (0.26) - (2.45) -

Total 215.40 160.96 33% 181.63 19%

(Rs crs)

18

Diverse Revenues from Core Fee Income

Q1FY12 Q1FY11 Y-o-Y(%) Q4FY11 Q-o-Q(%)

Trade & Remittances 25.49 20.82 22% 23.69 8%

Foreign Exchange Income 42.27 18.57 128% 26.56 59%

TPP Distribution Income

(Insurance, MF)50.57 36.17 40% 44.81 13%

General Banking Fees 25.60 21.20 21% 23.79 8%

Loan Processing fees 33.17 30.42 9% 34.67 (4%)

Investment Banking 9.97 2.40 315% 11.33 (12%)

Total Core Fee Income 187.07 129.58 44% 164.85 13%

(Rs crs)

Growth momentum continues on regular fee flows

19

Yield / Cost Movement

13.52%

12.18%12.90%

7.71%

5.98%7.03%

6.63%

5.34%5.95%

Q1FY12 Q1FY11 Q4FY11

Yield on Advances

Cost of Deposits

Cost of Funds

Q1FY12 Q4FY11

Outstanding

(Rs crs)

Yield

(%)

Outstanding

(Rs crs)

Yield

(%)

Corporate and Commercial Banking(CCB) 15,683 11.22% 14,547 10.32%

Consumer Finance Division(CFD) 12,701 16.32% 11,619 16.29%

Total 28,384 13.52% 26,166 12.90%

Segment-wise Yield

* Cost of Funds are based on Total Liabilities

20

Credit costs

FY08 FY09 FY10 FY11 Q4FY11 Q1FY12

Corporate Loan Book(CCB) 29.82 78.08 85.86 81.99 21.28 15.83

Consumer Finance Loan Book(CFD) 50.80 82.70 75.77 78.34 15.19 22.86

Total Credit Costs 80.62 160.78 161.63 160.33 36.47 38.69

Credit Costs

(Basis Points on Advances)63 102 79 61 14 14

PCR 26% 30% 60% 73% 73% 73%

37%49% 53% 51% 58%

41%

42%59%

49%47%51%63%

FY08 FY09 FY10 FY11 Q4FY11 Q1FY12

Corporate Loan Book Consumer Finance Loan Book

(Rs crs)

21

Loan Portfolio - Movement in NPA and Restructured Advances

Q1FY12 Q1FY11

CCB CFD Total CCB CFD Total

Opening Balance 82 184 266 83 172 255

Additions 16 57 73 10 57 67

Deduction 4 26 30 3 44 47

Gross NPA 94 215 309 90 185 275

Provisions 87 138 225 90 103 193

Net NPA 84 82

Total Advances 28,384 21,608

% of Gross NPA 1.08% 1,26%

% of Net NPA 0.30% 0.38%

Restructured Advances 0.37% 0.21%

(Rs crs)

NPA Composition - CFD

22

(Rs crs)

Q4-11Com.

Vehicle Utility

Const.

Equip. SCV TW Cars

Gross NPA 67 9 21 9 44 13

Net NPA 24 4 7 6 16 5

Gross NPA % 1.17% 1.08% 1.37% 0.62% 3.77% 1.58%

Net NPA % 0.43% 0.48% 0.48% 0.43% 1.38% 0.55%

Q1-12Com.

Vehicle Utility

Const.

Equip. SCV 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%

23

CRAR - Basel II

30 Jun-11 30 Jun-10

Risk Weighted Assets

- Credit Risk 29,313 22,574

- Market Risk 2,408 328

- Operational Risk 580 1,578

- Total RWA 32,301 24,480

Tier I Capital Funds 3771 2,138

Tier II Capital Funds 1071 1,217

Total Capital Funds 4,842 3,355

CRAR 14.99% 13.71%

Tier I 11.67% 8.73%

Tier II 3.32% 4.98%

(Rs crs)

24

Distribution Expansion to Drive Growth

As at, end FY09 FY10 FY11 Q1FY12

Branch Network 180 210 300 326

ATMs 356 497 594 633

Strengthening Distribution Infrastructure

Branch/Representative Office

Strategic Alliance

25

Shareholding Pattern

As at June 30, 2011

Promoters19.5%

FIIs8.1%

GDR issue34.7%

NRIs/ Director/ Others11.7%

Private Corporates9.5%

Individuals2.6%

MFs / Banks/ Insurance Co

13.9%

Thank you

Documents

July 08,2011 - aceanalyser.com Meet/132187_20110708.pdfIndusInd Bank’sequity shares are listed and is available on our website . 3 Theme for Planning Cycle II - 2011-14