#1IndusInd Bank - Investor Day 22nd November 2022 1#2IndusInd Bank - Investor Day Presentation-6 Corporate & Commercial Banking Group IndusInd Bank#3Evolving Operating Environment and Bank's Response/Performance Macro Developments Increasing Lending Rates Robust Credit Growth backed by government push & record high GST collection Deleveraging by corporates & strengthening of balance sheet Accelerated Digital adoption across supply chain by corporates Positive momentum in the Real Estate industry coupled with Consolidation Disruptions caused by Russia-Ukraine conflict Bank's Performance 40 bps improvement in QoQ Yields Overall Corporate Segment growth: 23% YoY Small Business growth: 46% YoY Increase in upgrade ratio; Investment grade book at 96%, up 100 bps y-o-y 'Early Credit' digital platform for ecosystem financing launched; 85%+ Clients transacting online; 35k crs throughput across 2.3L+ transactions in H1. Focus on building robust book; Active churn strategy; ~75% of Real estate book churned since Mar'20. Close monitoring and periodic stress testing of portfolio; no surprises in asset quality Indusind Bank#4Presentation Outline Corporate & Commercial Banking Franchise Fine-tuning corporate bank approach Future in focus IndusInd Bank#5Presentation Outline Corporate & Commercial Banking Franchise Fine-tuning corporate bank approach Future in focus 5 Indusind Bank#6Catering to the all-encompassing corporate landscape 88 5000+ # Asset Clients 540+ Coverage team strength Large & Mid corporates coverage from 1 2 Business Operations Cash Management ☐ Cash Credit Overdrafts Working Capital Demand Loan ◉ Short term loan Pledge Financing ■ Vendor/Dealer Finance Receivables Collection ☐ Payables Management Current Accounts; Escrow Services ◉ 3 - Customer Trade Solutions 5 Growth Financing 4 Treasury Solutions ☐ ☐ ■ ◉ Bill Discounting/ Factoring Vendor/Dealer Finance Pre & post Shipment Financing Letter of Credit/ Bank Guarantees Buyer's Credit IDPMS/EDPMS/ Digital trade documents Small Corporates 15+ cities coverage from 60+ cities Corporate entities from turnover 150 crs and above - includes SMEs, Mid Corporates, Large corporates, Conglomerates, PSUs, MNCS Across 100+ Industries and sub-industries with dedicated coverage of identified specialized verticals Remittances FX & IR Hedging Structured Deposits Exchange traded currency derivatives Pan-India geographical coverage across all regions with industry specific cluster coverage; International Entities through GIFT City Brownfield capex financing Project Financing Syndication/ Debt Capital markets Investment Advisory 6 IndusInd Bank#7Well Diversified Book Loan Book (crs) (*crs) di % 1,14,429 1,21,766 Large Corporates 68,668 crs 56.4% 1,09,463 1,05,481 99,079 92,407 Mid Corporates 42,478 crs 34.9% June'21 Sep'21 Dec'21 Mar'22 Jun'22 Sep'22 Small Corporates 10,620 crs 8.7% Sep-22 Book by Region Sep-22 6% ■ North Book by Ticket Size Book by Industry (*crs) Sep-22 ■ <100 14%* 29% ■ 100-250 ■ Real Estate - Comm. & Resi. ■NBFCs (other than HFCS) 9.98% 9.96% ■Gems and Jewellery 39% ■ South 14% 37% ■ 250-500 9.51% ■ Steel ■ West 57.15% 18% 18% 25% ■ 500-1000 ■ East ■ >1000 *94% AA & above 5.08% 3.25% 5.08 Power Generation - Non Renew. ■ Food Bev. and Food Proc. Note: All data as of Sep-22 ■ Others 7 IndusInd Bank#8Franchise strength - built on a client-centric and holistic business model Risk Management Adaptive Risk and Policy framework for: ☐ Robust & tiered due-diligence framework Early identification and mitigation of Risks ■ Continuous monitoring 04 Digitization & Analytics ☐ Digitized customer journeys (Front to 03 ☐ backend) for enhancing client experience ■ Robust Risk Management Productivity enhancement using Analytics Monitor Acquire Deepen Service 01 Client-centric Coverage ■ Strategically segmented in line with size of corporates Specialized coverage for identified industries 02 Broad based, differentiated Product solutions ■ Differentiated product capabilities to deliver client & industry specific integrated solutions ■ Broad base capabilities and continuous innovation 8 IndusInd Bank#901 Comprehensive coverage to provide best in class client service IIIII Client Coverage Units Emerging Mid- Corporates Corporate Banking Group Global Corporates & Institutional Group Public Sector Undertakings (PSUs) Note: All data as of Sep-22 健 Gems & Jewelery Specialized Coverage Units Domain Expertise with market leadership position No Restructuring No SMA No NPA Real Estate & warehousing Financial Institutions & NBFCs Our Real Estate Unit focuses on micro-market expertise with churning to maintain sectoral caps Banker of choice for Cash Management Services with focus on liability led asset growth 75% of asset book churned since Mar'20 2800+ escrow accounts 96%+ Book 'A' rated & above No NPA & restructuring. Agri Business Group Education Agri, Education and Healthcare unit Captures end-to end Value chain with gamut of tailor-made solutions ~10,000+ crs Asset book built across 3 verticals Healthcare 9 IndusInd Bank#1002 Our differentiated product capabilities With comprehensive products for capturing ecosystem financing backed by digital capabilities Trade & Supply Chain financing Well-diversified book across products with dominant position in niche offering Digital Stack Indus Direct for Trade (Web & Mobile) 43% CAGR in last 2 years for supply chain finance product - Digital Stack Early Credit for Supply Chain Financing IndusDIRECT CORPORATE MINITAL RANKING Indus CearlyCREDIT Global Market Solutions# Dominant Market Maker in Fx. spot and forwards with annual volumes of 380+ bn USD Provide hedging solutions to clients across sized with annual volume of 55+ bn USD 25% CAGR in income across FX, trading and derivatives products Digital stack Speed Remit for Fx Remittance -Indus SPEED REMIT One of the first banks to implement Ripple (A Block chain solution for Remittances) Cash Management Solutions Bouquet of products across collection and payments 400+ APIs on API Gateway and 50 APIs on Sandbox 700+ mandates implemented across 550+ clients in FY22; Additionally, 235 mandates implemented across 200+ clients in H1'23. 35%+ growth in cash throughput value (y-o-y) for H1'23 First Bank to launch Digital Payments for Escrows First Bank to go live on BBPS for NBFCS Product✶ Penetration @76%+ across client coverage units Product✶ fee contribution @ 57%+ of total fees Corporate clients transacting digitally @ 12k + corporate clients@ Product* fee contribution increased to 55-60% levels from 45% - 50% levels earlier. All data as on Sep'22 except # which is as on Mar'22 @Includes Non-individual clients across Retail & Corporate segments *Products includes Trade, FX & Cash Management IndusInd Bank#1102 Our differentiated product capabilities Debt Capital Markets ~45,300 crs of assets sold till date across 170+ deals Improved League Table Position from 6th in CY16 to 2nd in 9MCY22 ■ Maintained position in Top 5 in League Table since 2017 42 projects | 15k+crs Project Financing Underwritten under renewable energy sector 15 projects | ~9kcrs Underwritten under Roads and Highways sector 14 projects | ~8kcrs Underwritten under Transmission sector 85% Book underwritten churned 70% Book underwritten churned 87% Book underwritten churned 9MCY22 League Table Position - IBL ranked 2nd in Deal Volume & Count by Refinitiv 1st Bank to structure HAM and Road Invit financing in India Bank offers products across the project life cycle and has financed projects in sectors like Energy Efficiency, E-mobility, Water and City Gas Distribution Note: All data as of Sep-22 Market Volume Lenders Share (Cr.) Rank (Volume) Deals Rank (Deal Count) SBI 79.59% 41,002 1 7 1 IndusInd Bank 3.15% 1,645 2 4 2 ICICI Bank 2.59% 1,305 3 3 3 Bank of Baroda 1.68% 867 4= 1 4= Bank of Maharashtra 1.68% 867 4= 1 4= Canara Bank 1.68% 867 4= 1 4= EXIM Bank 1.68% 867 4= 1 4= 11 IndusInd Bank#1203 End-to-End digital enablement for Corporate Banking Digital channels and tools to address the rapidly evolving demands and expectations of our corporate clients across products and services. IndusDIRECT CORPORATE MOBILE BANKING APP Indus REMIT Indus CearlyCREDIT INDUS COLLECT Customer Coverage Interactive Dashboards Sales enablement tools enabling Teams to focus their efforts on prospects and clients with the highest value in terms of returns KPI Management Portfolio Management team * eee Risk Management Early Warning System Real-time data analytics with Risk triggers Internal + External Data Points 200+ Triggers Automated Alerts Client one View Differentiating insights which are tailored to the specific needs of an individual prospect or client. Share of Wallet - Asset, CA, CMS, Fx etc. Pricing Analytics Self Transfer 12 IndusInd Bank#1304 Comprehensive Risk Management Framework - with multiple layers of defense Underwriting aligned towards granular, secured, shorter duration loans from high rated customers Robust Credit Framework.. Central Quality & Assurance Team Approval Grids (L1 > L2 > L3) Policy: Credit | Pricing | ESG Regulatory Guidelines 3 Third Line of Defense ..with continuous monitoring and right support & interventions Portfolio Monitoring 2 Second Line of Defense Risk Analytics Credit Due Diligence Business Due First Line of 1 Early Warning Signals Diligence Defense Credit Org. structure mirrors coverage model enabling specialized underwriting Defined pre-screening guidelines to enhance filteration process & acquisition quality 13 IndusInd Bank#14Presentation Outline Corporate & Commercial Banking Franchise ༣ Fine-tuning corporate bank approach Future in focus 14 Indusind Bank#15The precursor to our current Business Strategy 01 We had consistent loan growth journey ... ... 02 except for FY19-21 102421 Loan Book (crs) 91334 91018 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Mar'19 Mar'20 Mar'21 15 IndusInd Bank#16The precursor to our current Business Strategy 03 Key learnings from our experience ✓ Customer concentration built up over the period ✓ Reliance on bulky fee income ✓ Deals pertaining to holding company with limited cashflow support ✓ Limited focus on building liability franchise Sub-optimal coverage structure especially in small businesses ✓ Under penetration in top conglomerates ✓ Delayed identification of risk triggers 04 Implementing the learnings while navigating COVID Tighter & well-defined credit underwriting norms with enhanced risk management framework Re-orientation of business model to focus on granular acquisition A B 16 IndusInd Bank#17Implementing the learnings - 'Fine-tuning the Corporate Bank approach' A Tighter credit underwriting norms & enhancing risk management framework Policy & Thresholds Tighter policy norms pertaining to complex & structured transactions to address inherent risks in the transactions Introduction of pre-screening process with defined go/ no go criteria Rationalization of Single Borrower limit linked to Internal Rating; Correlated with Net Profits & much below RBI prescribed norms Proactive Portfolio Monitoring Implementation of robust Early Warning Signals (EWS) Systems for taking timely remedial action <<< Group Borrower exposures strategies basis Strength & Standing of Group Strengthen Credit Quality Assurance Unit to enhance stress identification Conservative Capping of Sensitive Sector Exposures; Tightening of Concentration Exposure norms Enhancing rigor and frequency of internal reviews across Business & Credit 17 Indusind Bank#18Implementing the learnings - 'Fine-tuning the Corporate Bank approach' B Re-orientation of business model to focus on granular acquisition Key principles " Carving a dedicated unit for Strategic groups, Global corporates to provide a differentiated coverage & delivery Optimization of industry verticals in line with market; Continued focus on specialized verticals for active portfolio management Dedicated coverage of emerging mid-corporates Client Coverage Units Specialized Coverage Units Product Units Sharper focus Sharper focus Scale-up Global Corporates & Financial Services Group Maintain Leadership Gems & Jewelery Corporate Banking Group Emerging Mid- corporates Scale-up Supply Chain Financing Re-newed Investment Advisory & DCM Institutional Group PSUs (Public Sector Undertakings) Consolidation Scale-up Selective Focus Real Estate & warehousing Trade, CMS, Cash Agri Business Group Project Finance Education Healthcare Structured Finance FX, Derivatives Digital 18 IndusInd Bank#19How our strategy has played so far Focused approach on acquisition across high rated asset has resulted in .... Improvement in rating profile of the book# ... 6% 6% 5% 4% 24% 23% 31% 26% 26% 27% 27% 29% 15% 21% 25% 15% 19% 25% 23% 22% 80%+ of new disbursement to A rated and above entities across Large & Mid corporates in last 18 months. * Relatively higher rating onboarding in high ticket size For TS> 100 crs, 80% + portfolio rated A & above Mar-20 Mar-21 Mar-22 Sep-22 ■AAA AA-, AA, AA+ A-, A, A+ BBB-, BBB, BBB+ ■BB+ & Below ...focus on balance between rating profile & Ticket size # BBB- Mar'20 Sep'22 *Excluding Real Estate #Includes Fund-based and Non-Fund based book for corporates Rating Scale AAA + 10crs Ticket Size 1000crs Indusind Bank#20How our strategy has played so far Re-orientation of coverage models have enabled higher annuity profile of the book.... $ Consistent increase in % share of working capital *Product includes Trade, Fx and Cash Management services 100 % of WC Book 142 Mar'20 Sep'22 100 %<3 year book 115 Mar-20 Sep-22 Fees composition 3% 16% 34% 22% 40% Steady increase in share Investment Banking 16% of Product income* 24% Loan Processing 21% 25% Foreign Exchange 38% 36% 25% Trade & Remittances FY20 FY22 Q2'23 20 Indusind Bank#21How our strategy has played so far Corporate loan growth is back on track... as evidenced by Q-o-Q book growth... Loan Book (crs) Slippages stabilized over last 12-18 months Y-o-Y Growth 1,21,766 1,14,429 3990 31% 1,09,463 1,05,481 99,079 91,018 92,407 24% 23% 20% 0% III Mar'19 Mar'20 Mar'21 Mar'22 Jun'22 Sep'22 Mar'21 Jun'21 Sep'21 Dec'21 Mar'22 Jun'22 Sep'22 FY19 -11% 3509 3140 Fresh Slippages (crs) 1075 781 FY20 FY21 FY22 H1'23* *Of this, 338 crs from Standard book. 21 IndusInd Bank#22Presentation Outline Corporate & Commercial Banking Franchise Fine-tuning corporate bank approach Future in focus 22 Indusind Bank#23Priority for the future is 'Scalable & Sustainable growth' with identified growth levers Scalable & sustainable growth Increasing granularity & annuity orientation of the loan portfolio & income composition Broad-base our corporate coverage Scale-up of Small businesses < 500 Focus on cross-sell & RORWA Strengthening liability franchise crs Analytics-led customer engagement & risk management Continued focus on building digital capability across product & services 23 IndusInd Bank#24With building blocks in place, we aim for 'Scalable & Sustainable Growth' going forward 30-35% Small Businesses 15-20% Client Coverage Group 10-15% Specialized Verticals and steadily increasing the share of Small & Mid 1 ...improving risk density with high quality onboarding, minimizing credit costs corporates Taking the loan book growth to 15-20% y-o-y... 2 ...increasing returns with diversification of fee income through cross-sell & product fees* Large Corporates 46-48% Mid Corporates 38-40% *Product includes Trade, Fx and Cash Management services Small Corporates 14-16% 3 ...lowering cost of funds through granular liability franchise 24 IndusInd Bank#25THANK YOU Indusind Bank#26Disclaimer 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. 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