Debt Investor Presentation. June 2017

Transcription

1 Debt Investor Presentation June 2017

2 IndusInd Bank Consistently Building Scale with Profitability Strength Growth Returns CRAR at 15.31%; CET1 at 14.02%; Further raised AT1 of Rs 10 billion in April 2017 Strong Asset Quality with impaired assets proportion amongst the lowest in Indian banks; Net NPAs at 0.39% In top decile on productivity, profitability and efficiency parameters in Indian banking industry Note: Data as of FY17 3 Year CAGR FY17 Loans 27% 28% Deposits 28% 36% Revenue 29% 31% Profits 27% 25% Networth 33% 17% RoA = 1.86% RoE = 15.26% NIMs = 3.99% Revenue (Rs mn) Net Profit (Rs mn) Total Assets(Rs bn) 1,02,341 28,679 1,787 78,135 22,865 1,429 47,812 58,241 14,080 17, ,091 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 2 FY14 FY15 FY16 FY17

3 Benchmarking Revenue, Risk & Returns IBL performance is in top decile when comparing with the top 5 Public Sector (PSU) and top 5 Private Sector Banks (PB) Data as of FY17. (Banks nomenclature not in any particular order) 3

4 Overview of the Bank Leading private sector bank and financial services company in India Incorporated in January, 1994; Current customer base of ~9.5 million (1) Pan India presence through a network of 1200 branches and 1,988 ATMs (1) Diversified loan book Split between Corporate & Commercial Banking and Consumer Finance at 60% and 40% respectively (1) NRIs/ GDR issue Director/ 11% Others 2% Individuals 7% Private Corporates 10% Shareholding (1) Promoters 15% MFs / Banks/ Insurance Co 12% Enterprise-wide Risk Management framework for effective management of risks Total Assets of over Rs 1,786 bn (1) and Market Cap of over Rs 900 bn (2) FIIs 43% 1. As on March 31, As on June 08,

5 Over 20 years of Operating History Planning Cycle III: FY15-FY17 Launched new Non-vehicle retail products; Started operations in GIFT City Implemented systems for Treasury, Trade Finance and Fraud Analytics Acquired Diamond financing business of RBS in India Planning Cycle II: FY12-FY14 New products /segments launched Prepaid Forex cards, Tractor financing, MFI through Partnership Model Implemented Finacle 2.0 core banking system Capital Raise : QIP of Rs 43,280 mn and Preferential Issue of Rs 7,530 mn; AT1 of Rs 10,000 mn Innovations introduced Video Branch, Fingerprint Banking; Revamped Mobile App QIP raised Rs 20,006 mn (Dec 2012) Planning Cycle I: FY09-FY11 Innovations introduced Instant Redeem, Direct Connect & Cash On Mobile, My Account My Number Pre-2008 Incorporated in 1994; Promoted by a group of NonResident Indians IPO raised Rs 1,800 mn (Dec 1997); GDR raised USD 34mn (Mar 2007) Ashok Leyland Finance Ltd, an NBFC merged with the Bank New Management team headed by Mr. Romesh Sobti inducted from ABN AMRO Bank NV New Launch/Rollout: Investment Bank, 3rd Party Distribution Platform, Warehouse Receipt Finance GDR raised USD 52mn (Jun 2008); QIP raised Rs 4,803 mn (Aug 2009) & Rs 11,728 mn (Sept 2010) Acquired Deutsche Bank s credit card business in India 5

6 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 2. Indian subsidiary of Fitch 6

7 Business Units Organization Structure Global Markets Transaction Banking Product Groups Client Groups Consumer Banking Corporate Banking Consumer Finance Retail Liabilities Banking Channel Management & Services Wealth Management & Third Party Distribution Credit Cards Corporate & Investment Banking Commercial Banking Financial Institutions Group Business Banking Public Sector Unit 7

8 Investment Highlights Well Defined Expansion Strategy 1 Experienced Management Team 2 Universal Banking Offerings 3 Growing Liability and Fee Franchise 4 Stable Asset Quality 5 Focused Execution on Risk, Operations and Portfolio 6 History of Technology Refresh and Innovation 7 8

9 Broad Themes 1 Well Defined Expansion Strategy Planning Cycle 4 Strategy Market Share with Profitability Do More of the Same Strategy Digitize to Differentiate, Diversify and Create Domain Leadership Financing Livelihoods Finding Customers from Within Reengineering Our Businesses Sustainable Banking 9

10 1 Well Defined Expansion Strategy Strategic Themes Rebalancing of Loan Book Rural Banking and Microfinance Internal Collaboration and Cross Sell Sustainability Focus on Productivity Enriching Client Experience Digitization of Businesses 10

11 Resulting in 1 Well Defined Expansion Strategy Pillars of Growth Loan Growth 25% - 30% CASA Ratio Revenue Growth RoRWA 40% Exceed Balance Sheet Growth > 2.4% Branch Network 2,000 Customer Base Double to >20mn 11

12 2 Experienced Management Team The Core Executive Team Name Designation Prior Experience Mr. Romesh Sobti Managing Director & CEO Over 40 years banking career with ABN AMRO Bank N.V., ANZ Grindlays Bank Plc & State Bank of India Mr. Paul Abraham Chief Operating Officer Managing Director of ABN AMRO Central Enterprise Services Mr. Suhail Chander Head Corporate & Commercial Banking Head Consumer & Commercial Banking, ABN AMRO Malaysia & Singapore Mr. Sumant Kathpalia Head Consumer Banking Head Consumer Banking, ABN AMRO Bank (India) Mr. Kalpathi Sridhar Senior Executive Vice President - Risk Senior Vice President and Country Risk Officer, ABN AMRO Bank (India) Mr. Ramaswamy Meyyappan Chief Risk Officer Chief Risk Officer at JP Morgan Chase Bank NA, Mumbai Mr. S.V. Zaregaonkar Chief Financial Officer Joined IndusInd Bank in 1995 as Head Operations; Chief Manager Dena Bank Mr. Arun Khurana Head Global Markets Group Regional Head Corporate Solutions Asia-Pacific Markets of RBS Singapore Mr. S.V. Parthasarathy Head Consumer Finance Executive Director, Ashok Leyland Finance Limited Mr. Ramesh Ganesan Head Transaction Banking Executive Director, ABN AMRO Bank (India) Mr. Sanjay Mallik Ms. Roopa Satish Mr. Sanjeev Anand Head Investor Relations & Strategy Head, Corporate, Institutions & Investment Banking Deputy Head Corporate & Commercial Banking Director, BROTKO, his own financial services firm; Held prior positions at ANZ Bank, ABN AMRO Bank (India) and Standard Chartered Bank Head Mid Markets (Western Region), ABN AMRO Bank (India) Head Commercial Banking, ABN AMRO Bank (India) Mr. Zubin Mody Head Human Resources Head HR, ICICI Lombard General Insurance Company Limited 12

13 2 Experienced Management Team Performance Across Key Financial Vectors 3.71 NIMs (%) RoA (%) RoE (%) QIP & Pref. Allot. Rs 5,081 crs Cost / Income (%) Net NPAs (%) Revenue per Employee (Rs mn)

14 3 Universal Banking Offerings Well Diversified Loan Book Loan Book (Rs crs) 55,102 68,788 44,321 59% 51% 55% 49% 45% 41% 1,13,081 1,13,081 1,02,770 88,419 60% 52% 59% 58% 42% 41% 40% 48% Corporate Banking *Includes Business Banking Rs. 8,273 crs managed by Consumer Banking FY13 FY14 FY15 FY16 Dec-16 Mar-17 Mar-17 (BBG forming part Consumer Finance Division Corporate & Commercial Banking of Consumer) Mar-17 Large Corporates 31,477 28% Mid size Corporates 22,203 20% Small Corporates* 13,872 12% Total Advances 67,552 60% (Rs crs) Mid Size Corporates 20% Small Corporates 5% Large Corporates 28% BBG 7% BL,PL,GL 2% Comm. Vehicle Loans 14% Credit Card 1% Loan Against Property 14 6% Utility Vehicle Loans 2% Small CV 2% Two Wheeler Loans 3% Car Loans 4% Tractor 2% Equipment Financing 4% Consumer Finance (Rs crs) Mar-17 Comm. Vehicle Loans 15,606 13% Utility Vehicle Loans 2,342 2% Small CV 2,374 2% Two Wheeler Loans 3,262 3% Car Loans 4,665 4% Tractor 1,813 2% Equipment Financing 4,120 4% Credit Card 1,704 2% Loan Against Property 7,051 6% BL, PL, GL, Others 2,592 2% Total Advances 45,529 40%

15 3 Universal Banking Offerings Well Distributed Vehicle Finance Portfolio Geographical Distribution of Vehicle Finance Portfolio (Rs 342,122mn) March 31, 2017 Two Wheeler loans M&HCV loans J&K 0% Car loans Himachal Pradesh 1% Punjab 3% Chandigarh 0% Uttaranchal 0% Delhi Haryana 5% 2% Sikkim 0% Rajasthan 10% UP 6% Assam 2% Bihar 2% Manipur, 0% Jharkhand Gujarat Madhya Pradesh 3% West Mizoram 0% 5% 5% Tripura Bengal Chhatisgarh 1% Dadra & Nagar 5% 3% Haveli 0% Maharashtra 7% Odisha 4% LCV Loans Tractor Loans Telangana 5% Small CV & Utility Vehicle loans Goa 1% Karnataka 4% Andhra Pradesh 6% Pondicherry 0% Kerala 9% Tamil Nadu 11% 15

16 3 Universal Banking Offerings Comprehensive Corporate and Commercial Banking Offering Distribution of Corporate & Commercial Banking Network Product and Service Offerings Gujarat Punjab Chandigarh Rajasthan HP Uttarakhand Haryana UP Madhya Pradesh Bihar Corporate & Institutions Banking Public Sector Units Commercial Banking Business Banking Group Jharkhand Meghalaya Assam Nagaland Fund Based Services Working Capital Finance Short Term Finance Bill Discounting Export Credit Term Lending Buyer s Credit / Supplier s Credit Asset based financing Lease Rental Discounting Supply Chain Finance Warehouse Receipt Finance Agri Finance Inclusive Banking Goa Maharashtra Chhatisgarh Orissa Telengana Andhra Pradesh West Bengal Tripura Non Fund Based Services Investment Non Banking Fund Based Services Letter of Credit Bank Guarantees Forward Contracts / Derivatives Structured Finance Debt Syndication Advisory Services Karnataka Kerala Tamil Nadu Pondicherry 16 Value Added Services Channel Financing / Associate Financing Cash Management Services Corporate Salary Accounts Liability/ Investment Products Commodity Finance Project Finance Forex / Derivative Desks

17 3 Universal Banking Offerings Diversified Corporate Loan Book Gems and Jewellery Lease Rental Telecom- Cellular Microfinance Services Real Estate Steel Constn related to infra.- EPC Food Beverages / processing Housing Finance Companies Media,Entertainment & Advt Airlines Contract Construction-Civil Other Industry 6.14% 5.08% 3.49% 2.52% 2.26% 2.02% 1.84% 1.68% 1.53% 1.32% 1.17% 1.03% 1.00% 28.67% 17

18 4 Growing Liability and Fee Franchise Improving CASA profile Building CASA traction Expanding branch network Focus on target market segments Government business Capital market flows Key Non Resident markets Self employed and Emerging Corporate businesses Transaction Banking and CMS Mandates Differentiated service propositions 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 CASA Uptick 34.1% 35.2% 36.9% 32.5% 29.3% 27.3% 46,646 32,724 25,300 15,868 19,691 11,563 FY12 FY13 FY14 FY15 FY16 FY17 CASA (Rs crs) % of Total Deposits 38% 33% 27% 21% 16% 10% Current Account (CA) Savings Account (SA) 21,000 18,000 15,000 12,000 9,000 6,000 3, % 16.3% 16.2% 16.7% 16.6% 15.5% 19,609 15,478 12,356 8,835 9,776 6,869 FY12 FY13 FY14 FY15 FY16 FY17 CA (Rs crs) % of Total Deposits 19% 17% 15% 13% 11% 9% 7% 5% 30,000 25,000 20,000 15,000 10,000 5, % 17.5% 21.4% 18.5% 11.1% 13.0% 27,037 17,246 12,944 9,915 4,694 7,033 FY12 FY13 FY14 FY15 FY16 FY17 SA (Rs crs) % of Total Deposits 25.0% 21.0% 17.0% 13.0% 9.0% 5.0% 1.0% -3.0% 18

19 4 Growing Liability and Fee Franchise Efficient Distribution and Cross Sell Life Insurance General Insurance Health Insurance Mortgage and Broking 19

20 4 Growing Liability and Fee Franchise Diversified Fee streams Fee growth ahead of loan growth for last 7 years Comprises a mix of retail and corporate fee incomes Individual fee streams comprise of multiple drivers Rs cr FY15 FY16 FY17 Trade and Remittances Foreign Exchange Income Distribution Fees (Insurance, MF, Cards) General Banking Fees Loan Processing fees Investment Banking Total Core Fee Income 2,201 2,810 3,489 20

21 5 Stable Asset Quality Asset Quality Stability Across Cycles Gross NPA Net NPA 1.23% 1.01% 0.98% 1.03% 1.12% 0.81% 0.87% 0.93% 0.50% 0.28% 0.27% 0.31% 0.33% 0.31% 0.36% 0.39% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY % Credit Cost * FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Focus on Secured Lending 90.5% 89.4% 87.2% 88.1% 88.1% 0.61% 0.41% 0.46% 0.41% 0.48% 0.53% 0.59% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 * Net of recoveries 21 FY13 FY14 FY15 FY16 FY17

22 5 Stable Asset Quality Well Rated Corporate Portfolio P E R C E N T O F R A T E D 24% 22% 20% 18% 16% 14% 12% 10% Investment Grade Sub Investment Grade Unsecured Non Fund Based % Secured Non Fund Based % Unsecured Fund Based % Secured Fund Based % P O R T F O L I O 8% 6% 4% 2% 0% 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) 22

23 6 Focused Execution on Risk, Operations and Portfolio Robust Risk Management Structure Risk Organization Credit Approval & Monitoring Credit Appraisal/ Approval process Credit standards tightened Credit Admin reinforced and centralised in hubs Early warning signals / Exceptions tracking Enhanced monitoring mechanism Credit Risk Management Risk Rating Models revised and benchmarked against external rating Basel II & III implementation Internal Capital Adequacy Assessment Process (ICAAP) Stress testing reinforced Portfolio Management & Credit Quality Monitoring reinforced Credit Risk values measurement reinforced PD, LGD, EAD Market Risk Management & ALM Proactive Monitoring of Risk & exposures Daily valuation VaR & PV01 Based Limit Online monitoring of Risk sensitivities Capital Charge on Market Risk, CVA Basel III Liquidity Standards LCR, Liquidity Ratios Liquidity Gaps monitoring Daily Duration-based gap approach Stress testing for Liquidity, interest and foreign exchange risk Operational Risk Management Risk and Control Self Assessment Key Risk Indicators (KRIs) Loss Data Collection and Analysis Risk Profiling of branches Operational Risk Assessment Process for New Products Risk Events Reporting Business Continuity Plan Financial Restructuring & Reconstruction Separate group monitors non performing loans Account-wise monitoring & recovery mechanism Credit Quality Assurance & Loan Review Qualitycheck on entire credit process Tracking of credit rating Tracking of portfolio quality ALM System / Fund Transfer Pricing 23

24 6 Focused Execution on Risk, Operations and Portfolio Comfortable Capital Adequacy Bank has maintained strong capital adequacy levels well in excess of the minimum regulatory requirement 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 strongly for the next phase of growth The Bank is valued at 4.5x of FY17 book value (1) Rs cr 31 Mar Mar Mar 17 Credit Risk, CVA and UFCE 76,718 99,360 1,22,036 Market Risk 4,356 5,462 6,669 Operational Risk 7,855 11,466 14,824 Total Risk Weighted Assets 88,929 1,16,288 1,43, % 3.6% 13.9% 2.5% CRAR Tier I 15.4% 13.9% 1.6% 1.1% Tier II 12.1% 0.9% 15.5% 15.3% 0.6% 0.6% CET 1 Capital Funds 9,975 17,350 20,125 Additional Tier 1 Capital Funds - - 1,000 Tier 2 Capital Funds Total Capital Funds 10,751 18,019 21, % 11.4% 13.8% 12.7% 11.2% 14.9% 14.7% FY11 FY12 FY13 FY14 FY15 FY16 FY17 CRAR 12.09% 15.50% 15.31% CET % 14.92% 14.02% Tier % 14.92% 14.72% Tier % 0.58% 0.59% (1) Basis market cap as on June 8,

25 6 Focused Execution on Risk, Operations and Portfolio Strong Funding and Liquidity Profile Capital Markets TD; 2% Corporate TD; 4% Financial Institutions TD; 10% Diversified Funding Sources Other Liabilities; 5% Other Borrowings; 3% Infra Bonds; 1% AT1 Bonds; 1% Refinance; 8% Net Worth 12% CA Deposits; 11% SA Deposits; 15% Liquidity Coverage Ratio HQLA (Rs cr) Net Cash Outflow (Rs cr) LCR (%) Excludes SLR securities not 91.3% 94.6% currently part of HQLA 78.4% 74.2% 81.1% 65.1% 66.4% 70.7% Required >80% 29,823 14,683 28,215 9,558 Mar-17 Dec-16 Sep-16 Jun-16 Mar-16 Dec-15 Sep-15 Jun-15 Basel III Leverage Ratio 9.5% 9.7% 9.3% 9.2% 9.2% 9.1% 9.3% Required >4.5% Public Sector Units TD; 9% Note: Data as on March 2017 Retail & SME TD; 19% 25 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17

26 6 Focused Execution on Risk, Operations and Portfolio Liabilities Match Funding Assets Liabilities (Rs cr) Other Liabilities, 8,976 Other Borrowings, 8,954 Other Assets 10,237 Cash and bank balances 18,628 Assets (Rs cr) Term Deposits, 79,927 Corporate Banking Advances 59,279 Non-Vehicle Retail Advances 19,620 CASA, 46,646 Vehicle Term Finance 34,182 Refinance, 13,500 Net Worth, 20,646 Investments 36,702 Note: Data as on March 2017 Liabilities 26 Assets

27 6 Focused Execution on Risk, Operations and Portfolio Distribution Expansion to Drive Growth Branches 1, Clients (mn) Note: Numbers given above are total branches in each state. This does not include Branch/Representative Office in London, Dubai and Abu Dhabi

28 6 Focused Execution on Risk, Operations and Portfolio Sustainable Banking: Good Ecology is good Economics! Regulatory Compliance Environmental Social Governance Operational Compliance Market Risk Management Liquidity Management AT-1 Capital Issuance IT & Information Security Solar ATMs Thin Servers Waste Management Green champions LEEDs certified building Water rejuvenation projects Micro Credit Rural Branches Para Champions Board Level CSR Committee 6 Years of Sustainability Reporting Participation in CDP, DJSI Surveys Reputation Risk Management Financing Renewable Energy Priority sector compliance Legal and Financial Environmental Lending Policy Strategic Risk Management Afforestation Projects literacy Critical care support A Integrated Financial Reporting 28

29 7 History of Technology Refresh and Innovation Innovation as a Service Differentiator Channel Innovation Service Innovation Product Innovation Client Experience Edge 29

30 7 History of Technology Refresh and Innovation Digitize to Differentiate, Diversify and Create Domain Expertise Integrated Digital Strategy to extract significant value (14% of 2020 profit) via: 1. Agility & Innovation as Service Differentiator 2. Operating Efficiency in Front & Back Office 3. Evolution to Online/Digital Channels 4. Partnering with the Digital Ecosystems 5. Improved Decision Making & Analytics 6. Transform to Digital Offerings 7. Re-skilling Staff on Digital Technologies 30

31 India Macro Update 31

32 India Positive Macro Outlook FDI PRIVATE DOMESTIC CAPEX MACRO ADJUSTMENT, WEAK TREND IN DOMESTIC DEMAND. PUBLIC CAPEX DOMESTIC DEMAND STILL WEAK. EXTERNAL DEMAND SLOWS SHARPLY. SHARP DECLINE IN GLOBAL COMMODITY PRICES, EM SHOCK MACRO ADJUSTMENT COMPLETE. GROWTH IMPROVES LED BY PUBLIC CAPEX AND FDI, WEAKNESS IN EXTERNAL DEMAND INTENSIFIES. GROWTH RECOVERY BROADENS, WITH PICK UP IN CONSUMPTION. EXPORTS BACK ON RECOVERY TRACK FROM SEP-16. CRP IN NOV-16 DELAYED DOMESTIC DEMAND RECOVERY. IMPACT OF CRP TO FADE FROM 2Q17. EXPORT RECOVERY STRENGTHENS, CONTINUED STRENGTH IN PUBLIC CAPEX / FDI. PRIVATE CAPEX RECOVERY EXPECTED IN CONSUMPTION EXPORTS CRP SHOCK TO CONSUMPTION RECOVERY e CRP = CURRENCY REPLACEMENT PROGRAM Stylised representation of growth recovery cycle: Morgan Stanley Research 32

33 Backed by Improving Fundamentals Fiscal Deficit Consolidation(%) and Also Current Account Deficit (%) Inflation Trending towards RBI Targets Resulting in Stable Currency Forecast Source: Morgan Stanley Research 33

34 Key reforms & developments in with long-term implications A national Goods and Services tax (GST) regime to be implemented by July GST will create a common market, improve tax compliance, boost investment and growth. Potential to raise real GDP growth by a 0.5% to 2%. A new Bankruptcy law enacted to improve the framework around closure of businesses and to facilitate recovery of bad loans. A new monetary policy framework with an inflation target of 4% agreed between govt. and the RBI. Positive in the medium-term for macro-economic stability and for sustainable growth. Demonetization initiative to curb the size of the informal economy and to widen the tax base. FDI reform measures were implemented, allowing India to become one of the largest recipient. Net FDI inflows are now exceeding $30 billion annually. Stability of policy environment buttressed by state elections according greater support for the central government. This will help improve the position of BJP in the Rajya Sabha by Weak investment activity and bank NPA s emerged as major challenges. Stressed loans (NPAs, restructured & potential bad loans) were around 16% of total by end of Dec. 2016, as per the Economic Survey

35 Emerging themes and areas of opportunities India to remain the fastest growing large economy in the world until 2020, as per the IMF. Positive for overall credit growth, especially retail loans and mortgages. Greater formalization, reduction in cash transactions and government s efforts at financial inclusion. Positive for deposit mobilization, demand for credit products and micro finance. Focus on raising farm incomes and productivity under govt. s plan of doubling farm incomes by Positive for micro-finance, coldchains, warehousing, food processing and other agri. dependent sectors. GST regime will have a positive impact on logistics, commercial vehicles, warehousing and industrial manufacturing. Zero-rating of exports will be particularly beneficial for export oriented sectors. Push for renewable energy led by solar power. Government plans to scale up total capacity to 170 GWs with 100 GWs of solar power by Tariffs for solar power has fallen below that of thermal. Infrastructure development with focus on transportation including roads, railways and aviation. Affordable housing push by the government, through fiscal incentives and other support measures. 35

36 Additional Information 36

37 Balance Sheet * FY17 FY16 Y-o-Y (%) (Rs Crs) Capital & Liabilities Capital % Reserves and Surplus 20,048 17,101 17% Deposits 1,26,572 93,000 36% Borrowings 22,454 24,996 (10%) Other Liabilities and Provisions 8,976 7,205 25% Total 1,78,648 1,42,897 25% Assets Cash and Balances with RBI 7,749 4,521 71% Balances with Banks 10,879 5,591 95% Investments 36,702 34,054 8% Advances 1,13,081 88,419 28% Fixed Assets 1,335 1,255 6% Other Assets 8,902 9,057 (2%) Total 1,78,648 1,42,897 25% 37

38 Profit and Loss Statement FY17 FY16 Y-o-Y (%) (Rs Crs) Net Interest Income 6,063 4,517 34% Other Income 4,171 3,297 27% Total Income 10,234 7,814 31% Operating Expenses 4,783 3,672 30% Operating Profit 5,451 4,141 32% Provisions & Contingencies 1,091* % Profit before Tax 4,360 3,469 26% Provision for Tax 1,492 1,183 26% Profit after Tax 2,868 2,286 25% *Includes a one-off provision of Rs crs against a large corporate account classified as Standard Advance pursuant to specific RBI advice in this regard. The Bank s exposure which is due for repayment in June 2017 relates to a bridge loan for a Merger & Acquisition transaction in cement industry. 38

39 Outline of Existing Borrowings Name Date Tenor Rating Amount Long Term Senior Infrastructure Bonds Dec years AA+/ Stable by CRISIL and IND AA+/ Stable by India Ratings Rs.1500 crore (equiv. USD 232mm) IndusInd Bank- Rated, Listed, Nonconvertible, Perpetual, Subordinated & Unsecured BASEL III compliant AT1 Bonds Mar-17 Apr-17 Perpetual (Call option on the 5th Anniversary of the Deemed Dated of Allotment) AA/Stable by CRISIL Ltd and IND AA/ Stable by India Ratings & Research Private Ltd Rs.2000 crore (equiv. USD 310mm) Refinance - Development Financial Institution May-17 3 years Against portfolio of eligible assets constituting of Agri & SME Rs 4500crs (equiv.usd 700mm) Overseas Private Investment Corporation (OPIC) Multilateral Agency of the US Government Jun-17 8 years (3 years moratorium) Against funding for MSME USD 225mm * Based on swap rates as on June 8,

40 Accolades 40

41 Award Winning Brand / Franchise The Best CEO (BFSI) Mr. Romesh Sobti Forbes Super 50 Companies in India Ranked 12 th Most Valuable Indian Brands Winner- Fraud Management and Cybersecurity Business Today 2016 Forbes India 2016 BrandZ Top 50 WPP Plc & Milward Brown 2016 Celent Model Bank

42 Thank You

43 Disclaimer This presentation has been prepared by IndusInd Bank Limited (the Bank ) solely for information purposes, without regard to any specific objectives, financial situations or informational needs of any particular person. All information contained has been prepared solely by the Bank. No information contained herein has been independently verified by anyone else. This presentation may not be copied, distributed, redistributed or disseminated, directly or indirectly, in any manner. This presentation does not constitute an offer or invitation, directly or indirectly, to purchase or subscribe for any securities of the Bank by any person in any jurisdiction, including India and the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. Any person placing reliance on the information contained in this presentation or any other communication by the Bank does so at his or her own risk and the Bank shall not be liable for any loss or damage caused pursuant to any act or omission based on or in reliance upon the information contained herein. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Further, past performance is not necessarily indicative of future results. This presentation is not a complete description of the Bank. This presentation may contain statements that constitute forward-looking statements. All forward looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. Important factors that could cause actual results to differ materially include, among others, future changes or developments in the Bank s business, its competitive environment and political, economic, legal and social conditions. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Bank disclaims any obligation to update these forward-looking statements to reflect future events or developments. Except as otherwise noted, all of the information contained herein is indicative and is based on management information, current plans and estimates in the form as it has been disclosed in this presentation. Any opinion, estimate or projection herein constitutes a judgment as of the date of this presentation and there can be no assurance that future results or events will be consistent with any such opinion, estimate or projection. The Bank may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such change or changes. The accuracy of this presentation is not guaranteed, it may be incomplete or condensed and it may not contain all material information concerning the Bank. This presentation is not intended to be an offer document or a prospectus under the Companies Act, 2013 and Rules made thereafter, as amended, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended or any other applicable law. Figures for the previous period / year have been regrouped wherever necessary to conform to the current period s / year s presentation. Total in some columns / rows may not agree due to rounding off. Note: All financial numbers in the presentation are from Audited Financials or Limited Reviewed financials or based on Management estimates. 43