Company Overview

IndusInd Bank (NSE: INDUSINDBK) is a universal Bank with a widespread banking footprint with over 2.5 crore customers, over 5,000 distribution points and nearly 2,000 branches across the country. With ‘Sustainability’ at the core, the company offer a wide array of products and services for individuals and corporates including microfinance, personal loans, personal and commercial vehicles loans, credit cards, SME loans. IndusInd Bank is also a preferred banking partner for various Government entities, PSUs and large corporates. 1

IndusInd Bank was established in 1994 by Srichand P Hinduja, the name ‘IndusInd’ Bank was inspired by the Indus Valley Civilisation - one of the greatest cultural example of a combination of innovation with sound business and trade practices.

Branch Network

With total network of 1,911 banking outlets and 2,760 ATMs, the Bank has presence in all 28 States and 6 out of the 8 Union Territories. In addition, the Bank also has representative offi¬ces in London, Dubai and Abu Dhabi. The Bank has 5 Currency Chest, one each in, Mumbai, Delhi, Chennai, Kolkata and Bengaluru. The Bank has set up 7 PIONEER branches in Mumbai (Juhu, Peddar Road & Lower Parel), Pune (Koregaon Park), Delhi (Defence Colony & Punjabi Baugh) and Gurugram (Palm Springs).

  • 1,911 Branches
  • 2,760 ATMs
  • 751 Geographic Locations


Business Overview

During the financial year 2019-20, the Bank witnessed robust growth in its topline as well in operating pro ts. Net Pro t rose by 33.83% over the previous year to Rs 4,417.91 crores from Rs 3,301.10 crores. Operating Pro t (before Provisions and Contingencies) increased by 33.19% to Rs 10,772.71 crores from Rs 8,088.22 crores. 2

Net Interest Income of the Bank increased by 36.32% to Rs 12,058.74 crores from Rs 8,846.18 crores. Yield on Advances improved to 11.97% during the year, as against 11.26% in the previous year, while the Cost of Deposits fell marginally to 6.51% from 6.58% in the previous year. The Net Interest Margin for the year improved to 4.14%.

Non-Interest Income rose by 23.10% to Rs 6,951.31 crores from Rs 5,646.72 crores. Core Fee Income such as commission, exchange, loan processing and account management fees, fees on Investment Banking and distribution of third-party products, and earnings from foreign exchange business grew by 14.17% to Rs 5,785.83 crores from Rs 5,067.57 crores earned in the previous year.

The Bank expanded its branch network steadily to reach 1,911 branches including 150 banking outlets, as against 1,665 branches at the beginning of the year. The extended network of the Bank included 2,760 ATMs, 2,071 branches of BFIL, and 853 outlets of IndusInd Marketing and Financial Services Private Limited, an associate entity.

Net Non-Performing Assets of the Bank improved to 0.91% as on March 31, 2020, and Return on Assets for the year stood at 1.54% (annualised).

Consumer Banking

The Consumer Banking business continued its growth story with strong revenue and balance-sheet growth across business segments, and continued focus on retailisation and digitalisation. The Bank’s journey on its Digital agenda continued apace, with more than 50% of its sales across retail liabilities, assets and wealth products done via digital platforms, helping drive sales efficiency

On the deposits side, compelling customer proposition via product differentiators and competitive pricing have remained the cornerstone of its brand promise that has helped drive business growth. Retail Deposits grew 34% y-o-y, amongst the best-in-class, with new client acquisition scale-up across its distribution franchise which is the 4th largest in the private banking space, coupled with the launch of digital e-KYC based account opening both, on the Mobile App and its Website. Online Account Opening for NR and Current Account customers were launched as well and have helped improve traction in these target client segments. In addition, partnership with other financial services players, viz., Upstox, Paytm, besides Bharat Financial have been scaled up through the year for new customer and deposit mobilisation.

The Business Banking Group (BBG) which ful ls the financial needs of the Bank’s MSME customers followed a cautious approach towards new customer acquisition during FY20, looking to the overall economic scenario. Increased emphasis was laid on portfolio granularity through expansion of the client base: 85% of the customers acquired during the year were of ticket size of less than Rs 2 crores, and almost 50% of these were sourced through the Bank’s own branch network.

Personal Loans business continued on its rapid growth path, while contributing strong yield to the Assets portfolio. The performance of the Book continued to be robust, growing by 46%, while exhibiting strong portfolio metrics. The product has a live portfolio of more than 3 lakh accounts, with ~1.86 lakh accounts on-boarded in the year 2019-20. Cross-sell synergy with the Consumer Finance Team helped expand the footprint into new geographies and now contributes to a sizeable 24% of the Personal Loan Book, overall cross-sell book stands at 59%, the significant contributor being cross-sell to Savings Account clients, sourced and fulfilled completely using digital platforms.

Credit Cards receivables grew by 38% over the year while maintaining a strong profitability and core portfolio fundamentals. The business significantly improved its cost efficiency during the last financial year with strong revenue momentum and effective cost management. The business saw a growth of 28% increase in Cards in force, and crossed 1.35 million clients during the year. The yield remained stable while the EMI Book grew by 65% during the year. India’s first battery-powered Credit Card with functional buttons, the ‘Nexxt’ Credit Card, has been a key driver of the EMI business at the Point of Sale (POS), clearly showcasing the strong adoption of the new feature by customers who are using the EMI option for their big-ticket purchases. F

The Bank had taken a conservative approach in growth in Business Loans (Unsecured SME) and shifted its focus to strengthen collections. As a result, Business Loan Book remained ¬at at Rs 1,076 crores as of March 2020 against earlier reported y-o-y growth of 28%. With more focus on collection, the Bank was able to hold portfolio quality in FY20, even as the industry faced challenges with increased default in unsecured SME. This will also help the Bank to handle expected collection challenges faced in unsecured lending with better efficiency post COVID-19 in FY2020-21.

Retail Agriculture

The Retail Agriculture Business witnessed steady growth through expansion in rural and semi-urban locations, operational in 98 districts of Madhya Pradesh, Gujarat, Haryana, Punjab, Kerala, Rajasthan, Maharashtra and Chhattisgarh. More than 10,000 relationships with over 15,000 farmers have been created under the Indus Kisan Credit Card (KCC) product for taking up traditional Agricultural / Agri-allied activities, bringing nearly 12% growth in the Book over the previous year. As a part of the Bank’s commitment towards improving digital literacy, all customers are made aware and empowered in making cashless transactions through RuPay Debit Card and Net / Mobile Banking.

The Bank has built a highly diversi ed portfolio since its launch, ranging from funding for traditional agricultural activities to high-tech farming / Agri-allied activities, and has crossed the Rs 1,670 crores mark as on March 2020.

Credit Cards

The Bank’s Credit Cards business maintained a consistent and robust growth, fueled by strong digitisation initiatives and data-driven portfolio actions. The quality of customer receivables has continued to be healthy, growing by 38%.

The Cards business crossed 1.35 million clients during the year. The asset quality is within acceptable risk and the yields on the portfolio remain stable. Fee and Interest contributed equally to the overall revenue. The business is ramping up using low-cost digital channels which will enable the business to grow without compromising the Return on Assets.

Consumer Finance

The Consumer Finance Division (CFD) extends funding for a wide range of Vehicles / Equipment, which include Commercial Vehicles, viz., Heavy, Light and Small Vehicles used both for goods and passenger applications, Passenger Cars, Utility Vehicles, Two-Wheelers, Tractors, and Construction Equipment such as Excavators, Loaders, Tippers, Cranes, etc. Finance is extended for both, new and used assets in all the above segments. Housing loans to Low cost / affordable housing segment has also been launched in line with the accent on ‘housing for all’, focus by the Government of India.

Aggregate disbursements made during the year stood at Rs 32,664 crores as against Rs 34,706 crores in 2018-19, a drop of 6% caused by the slowdown in the overall vehicle and construction equipment sales, especially commercial vehicles which forms a signification portion of the Division’s Loan Book. New Loan Accounts numbered 13.14 lakh loans as against 12.84 lakh in 2018-19. The focus during the year was optimising the product mix to maximize yields, while maintaining portfolio quality despite the industry sluggishness.

During the year 2019-20, loan disbursements towards purchase of new vehicles was Rs 25,185 crores as against Rs 28,398 crores in 2018-19, a 11% de-growth y-o-y, even as used vehicles disbursement was Rs 6,776 crores as against Rs 6,046 crores in 2018-19, an increase of 12% over the previous year.

Corporate Banking

Corporate & Investment Banking provides Universal Banking Solutions to large Indian groups and multinational corporates. Over the years with continued addition of New to bank clients, the unit has become a banker to and developed deep relationships with almost all large corporate houses and large market cap companies in India.

Amongst the top Mandated Lead Arrangers (INR Borrowings) in India, the Bank achieved Rank 4 for CY 2019 with syndication volumes of ~INR 11,000 crores, bettering it’s position from Rank 5 in CY 2018. The Bank was ranked 2 when it comes to number of deals.

The International Financial Service Centre Banking Unit (IBU) has seen significant business, achieving Balance Sheet size of USD 1,453 million as on March 31, 2020, registering a 53% growth over 2019.

The product offering from IBU includes External Commercial Borrowings (ECBs), Trade Credits, Loans to Overseas Entities, and non-funded products. Having developed the product offerings that cover an area that the Bank was not able to address hitherto, the IBU is slated to be a significant contributor to the Bank’s Balance Sheet as well as profitability.

Transaction Banking

The Transaction Banking Group (TBG) o ers products and services to customers across all Business Units in the areas of Cash Management, Trade Services and Finance, Factoring, Global Remittances and continues to build a world class Transaction Banking product portfolio by leveraging the strengths of its Digital Banking platform.

Under the umbrella of Cash Management Services (CMS), the Bank offers customised and differentiated products to its Corporate and Consumer Banking customers, to enhance efficiencies in their Payables and Receivables Management with increased digital focus through APIs, eNACH, Remote Cheque Scanning products. Apart from this, the Bank is steadily becoming a significant player in providing Digital Solutions to Government Departments across e-Tendering, eProcurement, GeM, PFMS and subsidy management services.

The Bank continued to be one of the leading players facilitating India linked Cross Border Remittances. The Bank enjoys a significant share in Retail Outward Remittances from India, originating transactions from its branches as well as facilitating flows for other licensed AD II players. It also continues to be a preferred India Correspondent for Overseas Banks, Exchange Houses as well as MSBs / MTOs. The Bank continued to add new licensed partners under Rupee Drawing Arrangement Scheme of RBI as well as adding new Banking Partners for their India-bound remittances.

Priority Sector Lending

The Bank’s Priority Sector Lending portfolio is sourced from various business divisions from Corporate, Commercial and Consumer Banking Groups, to address the demands of various niche areas.

To address the demands of various niche areas, the Bank’s PSL portfolio is sourced from various business divisions from Corporate, Commercial and Consumer Banking Groups.

The Bank identifies potential high-credit areas like micro-enterprises, agri-allied sectors, etc. and to achieve the stipulated targets for these segments, defined processes have been set up including a committee which looks after identifying the gaps and oversees the PSL portfolio built up by contributing business divisions.

With the Bharat Financial Inclusion Limited (BFIL) merger and its portfolio largely comprising Agriculture and Small & Marginal Farmers, the Bank will be able to meet PSL targets.


Financial Highlights

IndusInd Bank Q4 FY20

Financial Results for The Quarter And Year Ended March 31, 2020 3

The Board of Directors of IndusInd Bank Limited approved the Bank’s results for the quarter and full year ended March 31, 2020, at their meeting held in Mumbai on Monday, April 27, 2020. The accounts have been subjected to audit by the statutory auditors of the Bank.

Consolidated Financial Results

The Bank’s consolidated financial results include the financial results of its wholly owned subsidiary, Bharat Financial Inclusion Limited (BFIL), a business correspondent of the Bank involved in originating small ticket MFI loans and associate entity, IndusInd Marketing & Financial Services Private Limited (IMFS) under the recognition and measurement principles as per Indian GAAP.

Profit & Loss Account for Year ended March 31, 2020 (FY 2019-20)

For the year ended March 31, 2020, the Bank earned Total Income (Interest Income and Fee Income) of Rs. 35,735.50 crore, up by 28.05% as compared to Rs. 27,907.87 crore for the year ended March 31, 2019.

Net Interest Income for the year FY 2019-20 increased to Rs. 12,058.74 Crore, up by 36.32% from Rs. 8,846.18 Crore for FY 2018-19. Net Interest Margin for FY 2019-20 improved to 4.14%.

Revenue (Net Interest Income and Fee income) for FY 2019-20 was Rs. 19,011.42 crore, up by 31.18 % over Rs. 14,492.90 crore for the previous year FY 2018-19.

Fee income at Rs. 6,952.67 crore for FY 2019-20 as against Rs. 5,646.72 crore for the previous FY 2018-19 include

  • Core fee emanating from client transactions such as trade & remittances fee, loan processing fee, income from distributing third party products, foreign exchange income, investment banking and other fee income, of Rs. 5,785.83 crore (that was Rs. 5,067.57 crore for the previous year FY 2018- 19); and
  • Proprietary trading income on the Investment portfolio, forex and derivatives of Rs. 1,166.84 crore (that was Rs. 579.15 crore for the previous year FY 2018-19).

Operating expenses for FY 2019-20 were Rs. 8,182.59 crore, an increase of 27.75% over Rs. 6,405.30 crore for FY 2018-19. The cost-to-income ratio for FY 2019-20 was at 43.04 %, an improvement from 44.19 % in FY 2018-19.

Pre Provision Operating Profit (PPOP) at Rs. 10,828.82 crore for FY 2019-20 grew by 33.89 % over the previous year. PPOP /Average Assets ratio improved to 3.79% as compared to 3.41% in the previous year FY 2018-19.

The Bank strengthened its Balance Sheet by improving Provision Coverage Ratio to 63.34 % in March,2020 from 43.04% in March 2019. Provisions and contingencies for FY 2019-20 were Rs. 6,370.96 crore (comprising of provision for credit and other losses at Rs 4,652.10 crore and towards taxes on income at Rs. 1,718.86 crore) as compared to 4,787.12 crore (comprising of provision for credit and other losses at Rs 3,107.65 crore and towards taxes on income at Rs. 1,679.47 crore) for the previous year 2018-19.

COVID-19 pandemic continues to spread across India and there is an unprecedented level of disruption on socio-economic front across the country. There is a high level of uncertainty about the duration of the lockdown and the time required for things to get normal. In this backdrop, during the quarter and year ended March 31 2020, on the basis of an internal assessment, the Bank has made a counter cyclical buffer/ floating provision of Rs.260 crore.

In line with the RBI COVID Regulatory Package, the Bank offered a moratorium on loan instalments and interest payable to eligible borrowers, basis a Board approved policy. In respect of such borrowers to whom the benefit of asset classification was extended consequent to the moratorium, the Bank made a general provision of Rs.23 crore during the quarter and year ended March 31, 2020.

Consolidated Net Profit for the year FY 2019-20 grew by 35.07% to Rs. 4,458.18 crore from Rs. 3,300.75crore during FY 2018-19.

Profit & Loss Account for the Quarter ended March 31, 2020 (Q4 FY 2019-20)

For the Quarter ended March 31, 2020, the Bank earned Total Income (Interest Income and Fee Income) of Rs. 9,158.80 crore, up by 21.30% as compared to Rs. 7,550.43 crore for the corresponding quarter of previous year.

Net Interest Income during Q4 FY 2019-20 increased to Rs. 3,231.19 Crore, up by 44.74% from Rs. 2,232.38 Crore for Q4 FY 2018-19.Net Interest Margin for Q4 FY 2019-20 improved to 4.25% from 4.15% during Q3 FY 2019-20 and3.59% during Q4 FY 2018-19.

Revenue (Net Interest Income and Fee income) for Q4 FY 2019-20 was Rs. 5,003.42 crore, up by 31.97% over Rs. 3,791.37 crore for the corresponding Q4 FY 2018-19.

Fee Income for the quarter ended March 31, 2020 at Rs. 1,772.23 crore was higher by 13.68% as compared to Rs. 1,558.99 crore for the quarter ended March 31, 2019.

Operating expenses for the quarter ended March 31, 2020 were Rs. 2,146.70 crore, an increase of 24.50% over Rs. 1,724.30 crore for the quarter ended March 31, 2019.

Pre Provision Operating Profit (PPOP) at Rs. 2,856.72 crore for the quarter ended March 2020 grew by 38.20 % over the corresponding quarter of previous year. PPOP /Assets ratio for Q4 FY 2019-20 stood at 3.84% compared to 3.20 % in the corresponding Q4 FY 2018-19.

Consolidated Net Profit for the quarter ended March 31, 2020 was Rs. 315.25 crore.

Balance Sheet as of March 31, 2020

Balance Sheet footage as of March 31, 2020 was Rs. 3,07,228.60 crore as against Rs. 2,77,820.70 crore as of March 31, 2019, a growth of 10.59 %.

Total deposits as of March 31, 2020 were Rs. 2,02,026.99 crore, an increase of 3.67 % over March 31, 2019. CASA deposits stood at Rs.81,557.02 crore with Current account deposits at Rs. 28,427.19 crore and Saving account deposits at Rs. 53,129.83 crore. CASA deposits comprised 40.37% of total deposits as of March 31, 2020.

Total advances as of March 31, 2020 were Rs. 2,06,783.16 crore, an increase of 10.94 % over March 31, 2019.

Asset Quality

The loan book quality was stable. The Gross non-performing assets were at 2.45% of gross advances as on March 31, 2020 as against 2.18% as on December 31, 2019 and 2.10 % as on March 31, 2019. On account of higher level of prudential provisioning, the Net Non-Performing Asset were 0.91% of net advances as on March 31, 2020 as compared to 1.05% on December 31, 2019 and 1.21% on March 31, 2019. The Provision Coverage Ratio increased to 63.34% which was higher than 52.53% as of December 31, 2019 and 43.04 % as of March 31, 2019.

Capital Adequacy

The Bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 15.04 % as on March 31, 2020 (14.16 % as on March 31, 2019). Tier 1 CAR was at 14.57 % as of March 31, 2020 compared to 13.70 % as of March 31, 2019. Risk-weighted Assets were at Rs. 2,58,605 crore (as against Rs. 2,14,549 crore as at March 31, 2019).


As of March 31, 2020, the Bank’s distribution network included 1,911 branches/banking outlets and 2,760 onsite & offsite ATMs across 751 geographic locations, as against 1,665 branches/banking outlets and 2,545 onsite & offsite ATMs across 736 geographic locations as of March 31, 2019. The Network also includes 2071 branches of BFIL and 853 outlets of IMFS as of March 31, 2020. The number of employees were at 30,674 as of March 31, 2020 (as against 27,739 as of March 31, 2019). The client base grew by 6.83% to touch 25.37 million.

Key Business Updates

Inclusive Banking overview

The Bank’s wholly owned subsidiary BFIL is involved in originating small ticket micro finance loans for Bank with operations spanning 30 States/UTs and a customer base of 9.4 million served through 2071 branches. The portfolio managed by BFIL stands at Rs. 25,120 crore.

Pioneer Banking

The Bank launched Pioneer Banking in January 24, 2020 that caters to Ultra rich high net worth individuals, scaled up in 9 cities, during the quarter ended March 31, 2020.

Sports Vertical

Bank sports vertical, “IndusInd For Sports” is engaged in making sports an integral, intrinsic and strategic element for both internal and external stakeholders. The Para Champions Programme – IndusInd Umang, is a first-of-its-kind platform exclusively designed for differently-abled sportspersons. In addition to financial scholarships the Programme will also help athletes with access to the top sports science and sports medicine experts provide opportunities for high-performance training and enable them to travel to events with their escorts/guardians.

Commenting on the performance, Mr. Sumant Kathpalia, Managing Director & CEO, IndusInd Bank said: “During FY20, as well as Qtr4, the Bank has witnessed healthy growth in its topline as well as in its pre-provision operating profits. The Bank’s CRAR remains strong. PCR has also improved significantly. During the quarter, there was a considerable slowdown in economic activities following the outbreak of COVID-19 which did have an impact on business volumes across sectors. However, given the Bank’s long operating history, IndusInd Bank has seen several business cycles and have always demonstrated an ability to manage its portfolios effectively in such times, and emerge stronger. IndusInd Bank is now pushing forward into FY21 basis its strong belief in new opportunities in the banking markets, especially in rural India, which will be one of the big pillars of its growth in the near future.”


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Created by Asif Farooqui on 2021/06/01 12:35
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