IndusInd Bank Limited — PPTs, 21-05-2025: Investor Presentation

1. Financial Highlights:

IndusInd Bank’s loans stood at ₹3.45 lakh crore, up 1% YoY but down 6% QoQ, while deposits rose 7% YoY to ₹4.11 lakh crore. CASA declined 7% YoY to ₹1.35 lakh crore (33% of deposits). Net interest income dropped 43% YoY to ₹3,048 crore; total income fell 52% YoY to ₹3,757 crore. The Bank posted an operating loss of ₹491 crore and net loss of ₹2,329 crore. Net interest margin contracted 201 bps YoY to 2.25%. Gross NPA stood at 3.13% and net NPA at 0.95%, with provision coverage ratio at 70%. Capital adequacy ratio (CRAR) remains strong at 16.24%.

2. Strategic Initiatives & Growth Drivers:

The Bank is pushing its Digital 2.0 strategy via the INDIE app (1.6 million active users) to boost customer engagement and savings balances. Digital loan originations, including personal loans and credit cards, are scaling rapidly. Focus on rural expansion and growing affluent and NRI segments continues. Granular retail deposits and innovative products support liability growth.

3. Business Developments:

No new acquisitions announced. The Bank leverages technology partnerships like Easy Credit (processing 1.2 million applications monthly) for digital sourcing and enhances credit card and business banking offerings. Microfinance remains core, with the Bank as the 2nd largest player serving 12 million customers across 1,621 villages.

4. Market Position & Competitive Advantage:

IndusInd is the 5th largest private bank with a balanced loan book (58% retail, 42% wholesale), strong vehicle finance (28%) and microfinance (9%) exposure. Its wide network of 7,100+ outlets covers ~1.62 lakh villages, backed by expertise in livelihood loans. Digital innovation, prudent provisioning, and stable capital base underpin its competitive edge.

5. Investor Implications:

Profitability pressures and slowing loan growth signal execution challenges amid asset quality stress, though well-provisioned. Strong capital and robust liability franchise offer resilience. The digital push and expanding granular retail focus present avenues for positive growth potential, but execution risks remain key to monitor.