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IndusInd Bank Bank 20 April 2013 3 Other highlights During the quarter, bank added 39 branches and...

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Page 1: IndusInd Bank Bank 20 April 2013 3 Other highlights During the quarter, bank added 39 branches and 30 ATMs, taking the overall branch network to 500 and ATMs to 882. IIB declared a

Alpesh Mehta ([email protected]) + 91 22 3982 5415

Sohail Halai ([email protected]) + 91 22 3982 5430

Investors are advised to refer through disclosures made at the end of the Research Report.

1

IndusInd BankCMP: INR450 TP: INR525 Buy

Financials & Valuation (INR b)Y/E March 2013 2014E 2015E

NII 22.3 29.9 36.7

OP 18.4 24.7 30.6

NP 10.6 13.8 17.1

NIM (%) 3.7 4.0 4.0

EPS (INR) 20.3 26.5 32.7

EPS Gr. (%) 18.3 30.3 23.6

BV/Sh. (INR) 141.9 163.7 190.7

ROE (%) 17.8 17.3 18.5

ROA (%) 1.6 1.7 1.7

Payout (%) 20.1 17.5 17.5

Valuations

P/E(X) 22.2 17.0 13.8

P/BV (X) 3.2 2.7 2.4

P/ABV (X) 3.2 2.8 2.4

Div. Yield (%) 0.7 0.9 1.1

BSE Sensex S&P CNX19,016 5,783

Bloomberg IIB IN

Equity Shares (m) 522.9

M. Cap. (INR b)/(USD b) 235/4.4

52-Week Range (INR) 456/288

1,6,12 Rel.Perf.(%) 10/23/21

20 April 2013

4QFY13 Results Update | Sector: Financials

IndusInd Bank's (IIB) 4QFY13 PAT grew 38% YoY and 15% QoQ to ~INR3.1b (6%

above estimates). Aided by capital raising, NIMs expanded 24bp QoQ (40bp YoY)

to 3.7%. And coupled with healthy loan growth (26% YoY), NII grew 42% YoY and

14% QoQ to INR6.6b (in line with our estimates). Key highlights:

Despite the challenging scenario, IIB continues to demonstrate a healthy

performance in CV portfolio and its overall GNPAs (%) remains stable at

1.03%, with PCR at 70%.

Within the consumer loans portfolio, while most of the products have seen

a moderation in growth, strong growth in LAP (31% QoQ, +243% YoY on a

lower base) led to healthy growth (+3% QoQ) in consumer finance division.

Of the incremental growth in CFD division, LAP contributed ~45%.

Post moderation in 2QFY13, SA deposits quarterly addition has bounced back

to INR8-9b (INR1.7b in 2QFY13). Share of SA in overall deposits increased to

13% v/s 12% in 3QFY13 and 11% in 4QFY12.

Valuation and view: While stress on CV portfolio is increasing at the system

level, close-to-customer business model of IIB and higher exposure towards

SRTOs shall help it to navigate the difficult times. Further improving CASA, higher

proportion of fixed rate high yielding retail loans, benefit of capital and matched

bulk business shall lead to 20-25bp NIMs improvement, in our view. Healthy

contribution from fees (1.9% of assets) and control over cost (C/I ratio less than

50%) shall lead to RoA of ~1.7% and RoE of ~18%. Buy.

Page 2: IndusInd Bank Bank 20 April 2013 3 Other highlights During the quarter, bank added 39 branches and 30 ATMs, taking the overall branch network to 500 and ATMs to 882. IIB declared a

IndusInd Bank

20 April 2013 2

Quarterly performance: Above estimates (INR m)

Y/E March 4QFY13E 4QFY13A v/s our Est Comments

Net Interest Income 6,693 6,612 -1 NIMs and growth largely in-line with estimates

% Change (Y-o-Y) 44 42

Other Income 3,560 3,679 3 Fee income growth remains strong

Net Income 10,253 10,291 0

Operating Expenses 5,133 4,857 -5

Operating Profit 5,120 5,435 6 Lower than expected opex drives operating profit

% Change (Y-o-Y) 35 43

Other Provisions 787 819 4 Asset quality performance remains healthy

Profit before Tax 4,333 4,616 7

Tax Provisions 1,422 1,542 8

Net Profit 2,912 3,074 6 PAT above est. led by lower than expected opex

% Change (Y-o-Y) 30 38

Source: Company/MOSL

NIMs of 3.7%, highest in last five years - helped by benefit of capital raisingHelped by capital raising of INR20b in December, margins expanded 24bp QoQ (40bp

YoY) to 3.7%. Cost of funds declined by 48bp QoQ to 6.8%; however, yield on loans

declined by 24bp QoQ, thus NIM expansion was contained. Yield on consumer finance

and corporate portfolio each declined by 20bp+ QoQ to 15.7% and 11.4% respectively.

Nevertheless, strong margin performance coupled with healthy loan growth of 26%

YoY and 4% QoQ led to NII growth of 42% YoY and 14% QoQ to INR6.6b (in line with our

estimates; however, it was 10% above consensus estimates).

Corporate portfolio and LAP drive loan growth; Growth in vehicle financesegment moderatesLoan growth for the quarter was at 4.5% QoQ (26% YoY), led by 5.7% QoQ (23% YoY)

growth in corporate finance and strong growth of 31% QoQ and 243% YoY in LAP.

Growth in vehicle finance moderated to 2% QoQ and 25% YoY, with CV portfolio growth

at 2% QoQ and 21% YoY (lowest in last 10 quarters). IIB sold INR30b of loans in 4QFY13.

Gradual improvement in CASA ratio continuesCASA grew 8% QoQ and 37% YoY led by a strong growth in SA deposits. As a proportion

of overall deposit, SA deposits stood at 13%, compared to 12.1% a quarter ago and

11.1% a year ago. CA deposits grew 4% QoQ and 28.6% YoY. Overall CASA ratio improved

to 29.3%, compared to 28.7% a quarter ago and 27.3% a year ago. Incremental CASA

ratio for FY13 was at 36.6%, compared to 28% in FY12, driven by a higher share of CA

deposits in incremental deposits (16.7% v/s 7.5% in FY12).

Healthy asset quality performance - despite challenging economicenvironmentGNPAs and NNPAs were stable QoQ at 1% and 0.3% respectively. Slippages for the

quarter stood at INR1.3b (v/s INR1.9b in 3QFY13 — included a large account of INR1b).

Though slippages in Consumer Finance Division increased QoQ to INR1b (annualized

slippage ratio of 2.4%) v/s INR800m a quarter ago, it remains manageable. Credit cost

for the quarter stood at 54bp (annualized based on the average of quarterly loans).

Restructured loan portfolio increased by just 100m and stood at 28bp of overall loans.

Page 3: IndusInd Bank Bank 20 April 2013 3 Other highlights During the quarter, bank added 39 branches and 30 ATMs, taking the overall branch network to 500 and ATMs to 882. IIB declared a

IndusInd Bank

20 April 2013 3

Other highlights During the quarter, bank added 39 branches and 30 ATMs, taking the overall branch

network to 500 and ATMs to 882.

IIB declared a dividend of INR3 per share, translating into dividend payout ratio of

~17% (including the dividend distribution tax).

Fee income continued to grow faster than the loan growth at 4.7% QoQ and 31%

YoY, led by 9% QoQ and 53% YoY growth in trade fees.

Guidance: (1) focus to be on market share with profitability, (2) loan growth target

of 25-30% over FY14-16, (3) fee income growth to be faster than loan growth, (4)

CASA ratio target of 30%+ and (5) branch and client network to be doubled in next

three years.

Key conference call takeaways In FY13, bank disbursed INR148b in vehicle loans, of which 15% pertains to used

vehicle segment. Disbursements for 4QFY13 were at INR38b (stable QoQ).

As a strategy, IIB has increased its focus, on new products such as gold loans, LAP,

credit cards and unsecured loans.

Lower yield on loans, especially retail loans, was on account of the bank offering

discounts on retail loans.

While stress level in fleet segment has increased, SRTO segment continues to

perform well. Further, 70% of the loans disbursed are to existing customers.

Asset quality to remain healthy and it expects to contain credit cost in line with

historical average (50-80bp).

Currently, 10% of vehicle loans and 15% of disbursement is from used vehicle

segment and management plans to increase the share of used vehicles in vehicle

loans to 15%.

Bank would utilize the windfall gains if it accrues to increase the provision

coverage ratio. Hence, it would largely be neutral on PAT.

Promoters' holding fell to ~15% (which needs to be reduced to 10% as per RBI's

existing guidelines). Management stated the possibility of RBI keeping the

promoter ownership in line with banking amendment bill should provide a relief.

IIB expects to increase the branch network to 650, 800 and 1,000 in FY14, FY15 and

FY16 respectively.

DUPONT Anlaysis (as a percentage of average assets): Highest every quarterly RoA led by strong NIMs and asset quality performance 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13

NII 3.3 3.5 3.5 3.6 3.3 3.4 3.3 3.3 3.3 3.3 3.6 3.7

Fee income 1.5 1.7 1.7 1.5 1.6 1.7 1.9 1.9 1.8 1.9 2.0 2.0

Core Income 4.8 5.2 5.2 5.1 4.9 5.1 5.2 5.2 5.1 5.3 5.6 5.7

Operating costs 2.6 2.5 2.6 2.5 2.5 2.6 2.6 2.7 2.7 2.7 2.8 2.8

- Emp Costs 1.0 1.0 1.0 0.9 0.9 0.9 1.0 0.9 1.0 1.1 1.0 1.0

- Other Expenses 1.5 1.5 1.7 1.6 1.6 1.7 1.7 1.7 1.7 1.6 1.8 1.7

Cost to Core Income Ratio 53.2 49.3 50.1 49.1 50.9 51.6 50.9 51.8 53.0 50.9 50.9 48.3

Core Operating Profit 2.2 2.6 2.6 2.6 2.4 2.5 2.5 2.5 2.4 2.6 2.7 2.9

Non-core Income 0.4 0.1 0.2 0.2 0.2 0.2 0.1 0.2 0.3 0.2 0.2 0.1

Operating Profit 2.6 2.7 2.8 2.7 2.7 2.7 2.6 2.7 2.7 2.7 2.9 3.1

Provisions 0.6 0.6 0.5 0.4 0.4 0.4 0.3 0.3 0.4 0.3 0.5 0.5

Tax 0.7 0.8 0.8 0.8 0.7 0.8 0.8 0.8 0.8 0.8 0.8 0.9

RoA 1.3 1.4 1.5 1.6 1.5 1.6 1.6 1.6 1.6 1.6 1.6 1.7

Leverage (x) 14.4 12.0 10.6 10.8 11.3 11.4 11.7 12.0 12.2 12.0 10.2 9.3

RoE 19.3 16.8 15.8 17.1 17.4 17.8 18.2 19.1 19.4 19.6 16.8 16.3

Page 4: IndusInd Bank Bank 20 April 2013 3 Other highlights During the quarter, bank added 39 branches and 30 ATMs, taking the overall branch network to 500 and ATMs to 882. IIB declared a

IndusInd Bank

20 April 2013 4

Valuation and view: Best-placed in the current environment Levers in place for superior margin improvement: IIB is well-poised to report a

gradual improvement in margins over the next few quarters led by (1) liabilities

side: (a) ~50% of deposits are wholesale in nature, which makes IIB the most

leveraged to systemic interest rates and liquidity. And with interest rates expected

to ease, benefit to reflect in declining cost of funds, (b) increasing traction in

CASA deposits, (2) asset side: 50% of loan book fixed in nature (built in high

interest rate environment) and even though yields on corporate portfolio would

decline, overall decline would be contained and (3) recently raised equity of

INR20b.

Well-capitalized; growth rates remain superior: Post capital raising, CAR has

increased to 15.4%+ and Tier I ratio to ~13.8%. Thus, the bank is well capitalized

for the next phase of growth. Further, on the back of niche presence, IIB has been

able to grow its balance sheet much faster than peers. In fact, it has been selling-

down loans to manage margins and improve profitability. New product additions

like LAP, gold loans (on a pilot stage), credit cards etc will drive growth higher. Led

by strong loan CAGR of 25% over FY14E/15E and improving margins, NII CAGR over

FY14E/15E is expected to be 28%.

Asset light revenue drive RoA up: Share of fee income to average assets has

increased to 1.9% in FY13 v/s 1.7% in FY12 - a key RoA driver. Over FY10-13,

contribution of fee income to average assets increased by ~50bp, driving RoA

upgrade. Management maintained its guidance to grow its fee income faster than

balance sheet growth. Some of its new initiatives have worked well for generating

fees. We expect fee income CAGR of ~24% over FY14E/15E.

Well-managed asset quality; uptick in credit cost to be compensated by margins:

IIB has managed its asset quality very well in the current cycle, with lower exposure

to riskier segment and close-to-customer business model of CV financing. While

stress on CV loans is increasing, higher channel checks suggest that SRTO (segment

that IIB caters to) performance remains healthy, albeit some delays in payment.

While asset quality remains strong, we model a higher credit cost of 75bp for

FY14E/15E v/s ~50bp in FY13, to factor a possible rise in delinquencies. However,

superior margins, focused fee income strategy and control over C/I ratio will keep

core operating profitability strong.

Maintain Buy: Improving liability franchise, structural improvement in RoA and

21%+ asset growth should help IIB to post PAT CAGR of ~27% over FY14E-15E . RoE

is expected to remain healthy at ~17/18% in FY14E/15E (post equity dilution). The

stock trades at 17x FY14E EPS and 2.7x FY14E BV and 13.8x FY15E EPS and 2.4x FY15E

BV. Maintain Buy with a target price of INR525 (2.75x FY15E BV).

Page 5: IndusInd Bank Bank 20 April 2013 3 Other highlights During the quarter, bank added 39 branches and 30 ATMs, taking the overall branch network to 500 and ATMs to 882. IIB declared a

IndusInd Bank

20 April 2013 5

We largely maintain our earnings estimate (INR b)

Old Estimates New Estimates Change (%)

FY14 FY15 FY14 FY15 FY14 FY15

Net Interest Income 28.7 36.0 29.9 36.7 4.0 2.0

Other Income 17.6 21.8 17.5 21.8 -0.6 -0.2

Total Income 46.4 57.8 47.4 58.5 2.3 1.2

Operating Expenses 22.3 27.2 22.7 27.9 1.8 2.7

Operating Profits 24.0 30.6 24.7 30.6 2.7 -0.1

Provisions 4.1 5.2 4.2 5.2 1.1 1.1

PBT 19.9 25.4 20.5 25.3 3.0 -0.4

Tax 6.5 8.3 6.7 8.2 3.0 -0.4

PAT 13.4 17.2 13.8 17.1 3.0 -0.4

Margins (%) 4.0 4.1 4.0 4.0

Credit Cost (%) 0.8 0.8 0.8 0.8

RoA (%) 1.7 1.8 1.7 1.7

RoE (%) 16.8 18.5 17.3 18.5

Source: MOSL

IndusInd Bank: One year forward P/BV (x) IndusInd Bank: One year forward P/E (x)

DUPONT Analysis: Structurally bank has moved to higher RoA's led by strong NIMs and credit cost (% of average assets)Y/E March FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13E FY14E FY15E

Net Interest Income 2.7 1.9 1.4 1.4 1.8 2.8 3.4 3.3 3.4 3.7 3.7

Fee income 1.2 1.0 1.2 1.2 1.3 1.4 1.6 1.8 1.9 1.9 1.9

Fee to core Income (%) 30.1 33.7 46.2 46.2 42.4 32.8 31.4 34.9 35.7 33.8 34.1

Core Income 3.9 2.9 2.6 2.5 3.1 4.2 5.0 5.1 5.3 5.6 5.6

Operating Expenses 1.7 1.9 1.8 1.8 2.2 2.3 2.5 2.6 2.7 2.8 2.8

Cost to Core Income 44.6 66.7 68.2 71.9 68.7 55.8 50.3 51.3 50.6 50.4 50.2

Employee cost 0.4 0.5 0.5 0.6 0.7 0.9 0.9 0.9 1.0 1.1 1.0

Other operating expenses 1.3 1.4 1.3 1.3 1.4 1.4 1.5 1.7 1.7 1.7 1.8

Core Operating Profits 2.1 1.0 0.8 0.7 1.0 1.9 2.5 2.5 2.6 2.8 2.8

Trading and others 0.5 0.2 0.1 0.2 0.5 0.4 0.2 0.2 0.2 0.3 0.3

Operating Profits 2.6 1.1 0.9 0.9 1.4 2.2 2.7 2.7 2.8 3.0 3.1

Provisions 0.9 0.8 0.3 0.4 0.6 0.5 0.5 0.3 0.4 0.5 0.5

NPA provisions 0.4 0.5 0.3 0.3 0.5 0.4 0.4 0.3 0.3 0.5 0.5

Other Provisions 0.5 0.2 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1

PBT 1.7 0.4 0.6 0.5 0.9 1.7 2.2 2.3 2.4 2.5 2.6

Tax 0.3 0.1 0.2 0.2 0.3 0.6 0.7 0.8 0.8 0.8 0.8

Tax Rate 19.3 37.8 36.5 34.3 34.8 34.3 34.4 32.7 32.7 32.5 32.5

RoA 1.4 0.2 0.4 0.3 0.6 1.1 1.4 1.6 1.6 1.7 1.7

Leverage (x) 18.8 19.6 20.0 20.4 20.0 17.5 13.5 12.4 11.0 10.2 10.7

RoE 25.8 4.3 7.1 6.9 11.7 19.5 19.3 19.2 17.8 17.3 18.5

Source: Company, MOSL

Page 6: IndusInd Bank Bank 20 April 2013 3 Other highlights During the quarter, bank added 39 branches and 30 ATMs, taking the overall branch network to 500 and ATMs to 882. IIB declared a

IndusInd Bank

20 April 2013 6

Quarterly trends

Gradual improvement in CASA ratio continues (%)

Cost of funds decline at a faster pace (%)

Growth in vehicle finance moderated to 2% QoQ and 25%

YoY, with CV portfolio growth at 2% QoQ and 21% YoY (lowest

in last 10 quarters)

While cost of funds declined by 48bp QoQ, yield on loans

declined by 24bp QoQ containing margin expansion.

Decline in overall yield was led by decline in both consumer

and corporate finance yields

Above industry loan growth continues

In last two quarters share of vehicle financing has declined

by 240bp whereas share of LAP and corporate loans have

increased by 120bp and 130bp respectively

Deposit growth in-line with loan growth

Deposit growth continues to remain healthy at 6% QoQ and

28% YoY however CD ratio remains at 82%+ led by higher

share of borrowings and net-worth in balance sheet

Margin up 24bp QoQ - highest in past 5 years (%)

Led by benefit of INR20b of capital raised in Dec-12, margin

improved by 24bp QoQ to 3.7%

Led by strong growth of 14% QoQ and 50% YoY in SA Deposits

gradual improvement in CASA ratio continues and as such

proportion of SA in overall deposits have increased to 13%

as compared to 8.6% in Sept-12

Growth moderates in vehicle financing segment (INR b)4QFY13 3QFY13 QoQ Gr. (%) 4QFY12 YoY Gr. (%)

Vehical Finance 206 202 1.8 164 25.0

CV 100 98 2.2 83 20.7

Utility 18 18 1.8 12 44.3

Car 21 20 2.8 14 47.0

Small-CV/3 Wheeler21 22 -3.2 19 10.5

2 veheeler 19 18 5.7 15 28.5

Equipment Finan. 27 27 1.2 21 26.9

Retail Advances 18 15 22.9 8 132.4

Credit Cards 3 3 2.7 2 38.5

Personal 1 1 3.1 1 -27.5

LAP 14 11 31.1 4 243.4

Coprorate Advances 219 207 5.7 178 23.0

Page 7: IndusInd Bank Bank 20 April 2013 3 Other highlights During the quarter, bank added 39 branches and 30 ATMs, taking the overall branch network to 500 and ATMs to 882. IIB declared a

IndusInd Bank

20 April 2013 7

Quarterly trends

Cost to core income remains under check

Credit cost contained

Despite strong network addition, higher share of core

revenues have kept cost to core income ratio under check,

though cost to average assets have increased

IIB has been able to contain credit cost in the range of 50-

70bp in last four years despite challenging macro-

environment and moderation in CV cycle

Fee income traction continues (%)

Led by strong growth in trade fees overall fee income

growth continues to be above loan growth, one of the key

drivers of RoA's

Asset quality continues to remain strong

Despite the challenging scenario IIB continues to

demonstrate the healthy performance on CV portfolio and its

overall GNPA (%) remains stable 1.03% with the PCR of 70%

GNPA and NNPA in Vehicle financing segment remains low

FY10 FY11 FY12 FY13

3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

GNPA (%)

CV 1.9 1.5 1.4 1.4 1.5 1.2 1.1 1.1 1.1 1.1 0.7 0.8 0.9 1.0

Utility 1.2 1.1 1.2 1.0 1.1 1.1 1.5 1.6 1.4 1.3 0.9 0.9 0.8 0.9

CE 1.9 1.6 1.5 1.7 1.6 1.4 1.4 1.5 1.3 1.2 1.0 0.8 1.0 1.2

3W 0.4 0.4 1.1 0.6 0.5 0.6 1.1 1.0 1.1 1.0 0.8 0.9 0.9 0.8

2W 5.2 5.2 5.3 5.6 4.5 3.8 3.7 3.8 3.7 3.3 3.5 3.4 3.6 3.0

NNPA (%)

CV 1.4 0.,8 0.6 0.7 0.7 0.4 0.3 0.3 0.4 0.4 0.2 0.2 0.3 0.4

Utility 0.8 0.6 0.8 0.6 0.6 0.5 0.8 0.9 0.4 0.3 0.2 0.1 0.1 0.3

CE 1.6 1.2 0.8 0.8 0.7 0.5 0.6 0.7 0.6 0.5 0.3 0.1 0.3 0.4

3W 0.3 0.3 0.9 0.5 0.4 0.4 0.8 0.7 0.7 0.6 0.5 0.6 0.5 0.3

2W 4.1 3.9 2.4 2.6 1.9 1.4 1.6 1.7 1.8 1.5 1.4 1.4 1.5 1.4

Cars 3.6 2.7 1.6 1.2 0.8 0.6 0.8 0.4 0.4 0.3 0.2 0.2 0.1 0.3

Page 8: IndusInd Bank Bank 20 April 2013 3 Other highlights During the quarter, bank added 39 branches and 30 ATMs, taking the overall branch network to 500 and ATMs to 882. IIB declared a

IndusInd Bank

20 April 2013 8

Quarterly SnapshotFY12 FY13 Variation (%) Cumulative Numbers

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q QoQ YoY FY12 FY13 YoY Gr (%)

Profit and Loss (INR m)

Net Interest Income 3,900 4,192 4,307 4,644 4,841 5,097 5,778 6,612 14 42 17,043 22,329 31

Other Income 2,154 2,392 2,651 2,921 3,188 3,205 3,558 3,679 3 26 10,118 13,630 35

Trading profits 278 239 131 274 497 218 177 178 1 -35 922 1,070 16

Profits on sale of assets 5 5 17 7 1 0 0 0 N.A. N.A. 34 1 N.A.

Others (Ex non core) 1,871 2,148 2,504 2,640 2,690 2,987 3,381 3,501 4 33 9,162 12,559 37

Total Income 6,054 6,584 6,958 7,565 8,029 8,302 9,336 10,291 10 36 27,160 35,958 32

Operating Expenses 2,937 3,254 3,465 3,774 3,989 4,104 4,614 4,857 5 29 13,430 17,564 31

Employee 1,107 1,152 1,261 1,334 1,526 1,621 1,685 1,784 6 34 4,855 6,615 36

Others 1,830 2,102 2,204 2,439 2,463 2,484 2,930 3,073 5 26 8,575 10,949 28

Operating Profits 3,117 3,330 3,492 3,791 4,040 4,198 4,722 5,435 15 43 13,730 18,395 34

Provisions 446 470 428 460 535 491 787 819 4 78 1,804 2,631 46

PBT 2,671 2,860 3,064 3,331 3,505 3,708 3,935 4,616 17 39 11,927 15,764 32

Taxes 870 929 1,005 1,097 1,143 1,205 1,262 1,542 22 41 3,900 5,152 32

PAT 1,802 1,931 2,060 2,234 2,363 2,503 2,673 3,074 15 38 8,026 10,612 32

Asset Quality

GNPA 3,093 3,326 3,342 3,471 3,651 4,095 4,216 4,578 9 32

NNPA 838 931 936 947 999 1,143 1,252 1,368 9 44

GNPA (%) 1.1 1.1 1.0 1.0 1.0 1.0 1.0 1.0 4 5

NNPA (%) 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 1 4

PCR (Calculated, %) 72.9 72.0 72.0 72.7 72.6 72.1 70.3 70.1

Ratios (%)

Fees to Total Income 30.9 32.6 36.0 34.9 33.5 36.0 36.2 34.0 33.7 34.9

Tax Rate 32.5 32.5 32.8 32.9 32.6 32.5 32.1 33.4 32.7 32.7

CASA (Reported) 28.2 27.7 26.5 27.3 27.9 28.0 28.7 29.3

Loan/Deposit 80.5 78.5 79.9 82.8 82.6 82.5 83.0 81.9

RoA 1.6 1.6 1.6 1.6 1.6 1.6 1.6 1.8

RoE 18.4 18.8 19.1 20.0 20.4 20.5 17.4 16.7

Margins (%) - Reported

Yield on loans 13.5 13.8 13.8 13.9 14.0 13.9 13.7 13.5 -24 -43 13.8 13.8 2

Cost of deposits 7.7 8.2 8.2 8.3 8.9 8.7 8.4 8.1 -37 -21 8.1 8.5 43

Margins 3.4 3.4 3.3 3.3 3.2 3.3 3.5 3.7 24 41 3.3 3.4 8

Balance Sheet (INR b)

Loans 284 301 324 351 372 394 424 443 4 26

Investments 142 143 154 146 163 156 176 197 12 35

Deposits 353 384 406 424 451 478 511 541 6 28

CASA Deposits 99 106 108 116 126 134 147 159 8 37

of which Savings 32 33 40 47 51 53 62 70 14 50

Current 67 73 68 69 74 81 85 88 4 29

Borrowings 66 60 81 87 87 67 66 95 44 9

Total Assets 478 505 551 576 607 621 679 733 8 27

Risk Weighted Assets 323 329 352 392 420 449 484 533 10 36

For %age change QoQ and YoY is bp Source: Company, MOSL

Page 9: IndusInd Bank Bank 20 April 2013 3 Other highlights During the quarter, bank added 39 branches and 30 ATMs, taking the overall branch network to 500 and ATMs to 882. IIB declared a

IndusInd Bank

20 April 2013 9

EPS: MOSL forecast v/s consensus (INR)

MOSL Consensus Variation

Forecast Forecast (%)

FY14 26.5 26.5 -0.1

FY15 32.7 33.5 -2.5

Shareholding pattern (%)

Mar-13 Dec-12 Mar-12

Promoter 15.3 15.3 19.5

Domestic Inst 8.5 8.8 7.9

Foreign 53.9 52.5 50.6

Others 22.3 23.4 22.1

1-year Sensex rebased

Page 10: IndusInd Bank Bank 20 April 2013 3 Other highlights During the quarter, bank added 39 branches and 30 ATMs, taking the overall branch network to 500 and ATMs to 882. IIB declared a

IndusInd Bank

20 April 2013 10

Financials and Valuation

Page 11: IndusInd Bank Bank 20 April 2013 3 Other highlights During the quarter, bank added 39 branches and 30 ATMs, taking the overall branch network to 500 and ATMs to 882. IIB declared a

IndusInd Bank

20 April 2013 11

Financials and Valuation

Page 12: IndusInd Bank Bank 20 April 2013 3 Other highlights During the quarter, bank added 39 branches and 30 ATMs, taking the overall branch network to 500 and ATMs to 882. IIB declared a

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