#1IndusInd Bank - Analyst Day 27th July 2022#2IndusInd Bank - Analyst Day Presentation-5 Corporate Banking IndusInd Bank#3Presentation Outline Corporate & Commercial Banking Franchise Fine-tuning corporate bank approach Future in focus IndusInd Bank#4Presentation Outline Corporate & Commercial Banking Franchise Fine-tuning corporate bank approach Future in focus Indusind Bank#5Catering to the all-encompassing corporate landscape 88 5000+ # Asset Clients 500+ Coverage team strength Large & Mid corporates coverage from 15+ cities 1 Business Operations 2 Cash Management ◉ 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 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 5 IndusInd Bank#6Well Diversified Book Jun-22 39% (*crs) di % 1,14,429 Loan Book (crs) 1,09,463 Large Corporates 62,322 crs 55% 1,05,481 99,079 92,407 Mid Corporates 42,210 crs 37% June'21 Sep'21 Dec'21 Mar'22 June'22 Book by Region 6% Jun-22 ■ North 37% 12% ■ South Small Corporates 9,897 crs 8% Book by Ticket Size (*crs) Jun-22 ■ <100 13%* 31% ■ 100-250 ■ 250-500 59% ■ West 19% 25% ■ 500-1000 19% ■ East *92% AA & above; 8% A rated ■ >1000 Book by Industry ■NBFCs (other than HFCs) 10% ■Gems and Jewellery 9% ■Real Estate - Comm. & Resi. 9% ■ Steel 5% ■Lease Rental 5% ■ Power Generation - 3% Non Renew. Others IndusInd Bank#7Franchise 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 IndusInd Bank#801 Comprehensive coverage to provide best in class client service IIIII Client Coverage Units Specialized Coverage Units Emerging Mid- Corporates Corporate Banking Group 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 70% of asset book churned since Mar'20 2,300+ Escrow accounts 98% Book 'A' rated & above No NPA & restructuring. Global Corporates & Institutional Group 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 Public Sector Undertakings (PSUs) Note: All data as of Mar-22 Healthcare Gems & Jewelery Domain Expertise with market leadership position No Restructuring No SMA No NPA IndusInd Bank#902 Our differentiated product capabilities Trade Global Market Solutions Cash Management Solutions Supply Chain Financing Well-diversified book across fund & non-fund products. Higher impetus on working capital related trade products - Dominant position in niche offering · Handled 40% India's urea import through LCs) 100%+ y-o-y volume growth in digital transactions across all corporates Dominant Market Maker in MIFOR / Currency Swaps/ OIS / FX Options Among the top 5 market makers in MIFOR and OIS 25% CAGR in Fixed Income, FX, Commodities, Equities, & FX Derivatives business across trading & client segments. Market Firsts / USPS - ◉ ■ First Bank to launch Digital Payments for Escrows ■ First Bank to go live on BBPS for NBFCs 700+ mandates implemented across 550+ clients in FY22 ☐ 30%+ growth in cash throughput value. 43% CAGR in last 2 years Well diversified portfolio across industries Auto: Non-Auto @ 35:65 - Launched industry-leading digital portal with real-time capabilities Awarded as Invoice Finance Provider of the Year & Best Supply Chain Solutions, India Note: As on Mar-22 ☑ Transaction Banking Fees @ 60%+ of total fees Transaction Banking Product Penetration @72%+ across client coverage units Liability book growth 25%+ Self Funding improved 10pps Digital transacting corporate clients Quadrupled in last year IndusInd Bank#1002 Our differentiated product capabilities Debt Capital Markets ~44,000 crs of assets sold till date across 160+ deals ■Improved League Table Position from 6th in CY16 to 2nd in CY21 ■ Maintained position in Top 5 in League Table since 2017 CY21 League Table Position - IBL ranked 2nd in Deal Volume & Count by Refinitiv 41 projects | 14k+crs Underwritten under renewable energy sector Project Financing 13 projects | ~7.5kcrs Underwritten under Roads and Highways sector 90% Book underwritten churned 82% Book underwritten churned ■ Bank Offers entire lifecycle financing for all kind of renewable projects 1st Bank to structure HAM and Road Invit financing in India Lenders SBI Market Share Volume ( Cr.) Rank (Volume) Deals Rank (Deal Count) 70.22% 66,319 1 13 1 IndusInd Bank 7.37% 6,980 2 9 2= Standard Chartered 4.71% 4,518 3 5 5 L&T Financial Services 2.78% 2,641 ICICI Bank 2.74% 2,583 5 86 2= 4 Deutsche Bank/ JP Morgan 2.51% 2,416 6= 1 8= Axis Bank 1.35% 1,280 8 4 6 IndusInd Bank#1103 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 130+ 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 IndusInd Bank#1204 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 IndusInd Bank#13Presentation Outline Corporate & Commercial Banking Franchise ༣ Fine-tuning corporate bank approach Future in focus Indusind Bank#14The 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 IndusInd Bank#15The 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 IndusInd Bank#16Implementing 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 IndusInd Bank#17Implementing 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 Consolidation Maintain Leadership Global Corporates & Institutional Corporate Banking Group Emerging Mid- corporates Real Estate & warehousing Scale-up Supply Chain Financing Re-newed Investment Advisory & Gems & Jewelry DCM Group PSUs (Public Sector Undertakings) Selective Focus Trade, CMS, Cash Financial Services Group Healthcare Project Finance Scale-up FX, Derivatives Education Structured Finance Agri Business Group Digital IndusInd Bank#18How 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% 31% 26% 5% 24% 27% 27% 29% 15% 21% 15% 19% 25% 23% Mar-20 Mar-21 Mar-22 AAA AA-, AA, AA+ A-, A, A+ BBB-, BBB, BBB+ ■■BB- & Below 84% of new disbursement pertaining to A rated and more across Large & Mid corporates in FY22* Relatively higher rating onboarding in high ticket size For TS> 100 crs, 80% + portfolio rated A & above ...focus on balance between rating profile & Ticket size Rating Scale BBB- Risk Density of Corporate book improved 5pps AAA+ *Excluding Real Estate #Includes Fund-based and Non-Fund based book for corporates Ticket Size Mar'20 Mar'22 10crs 1000crs IndusInd Bank#19How our strategy has played so far Re-orientation of coverage models have enabled higher annuity profile of the book.... $ +900 bps increase in % share of working capital disbursements Steady increase in share of transaction banking income 100 % of WC book 137 Mar'20 Mar'22 Granular Fees % of less than 3 Yr book 100 116 Mar'20 Mar'22 Trade & Remittances 25% 38% FX 25% 24% Investment Banking 34% 16% Loan Processing Fees 22% 16% FY20 FY22 IndusInd Bank#20How our strategy has played so far Corporate loan growth is back on track... as evidenced by Q-o-Q book growth... 31% 0% Y-o-Y Growth Loan Book (crs) 20% 24% 92,407 91,018 99,079 Slippages stabilized over last 12-18 months 1,14,429 109,463 3990 1,05,481 Mar-19 Mar-20 Mar-21 Mar-22 Jun-22 Mar'21 June'21 Sep'21 Dec'21 Mar'22 June'22 -11% 3509 (*crs) 3140 ■Fresh Slippages 1075 603 FY19 FY20 FY21 FY22 Q1'23* *Of this, 272 crs from Standard book. IndusInd Bank#21Presentation Outline Corporate & Commercial Banking Franchise Fine-tuning corporate bank approach Future in focus IndusInd Bank#22Priority 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 IndusInd Bank#23With 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% 2 ...increasing returns with diversification of fee income through cross-sell & transaction banking Large Corporates 50-52% y-o-y... Mid Corporates 38-40% ...lowering cost of funds through granular Small Corporates 10-12% 3 liability franchise IndusInd Bank#24THANK YOU Indusind Bank#25Disclaimer 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. 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