#1D IndusInd Bank Investor Presentation Q2-2020-21 October 30, 2020#2Q2 - FY21 Performance Highlights Strengthened capital position by raising Rs. 3,288 crs; Capital Adequacy stands at 16.55% PPOP at Rs 2,852 crs, grew by 9% YoY; PPOP / Assets at 3.66% amongst the industry highest NII at Rs. 3278 crs; up by 13% YoY NIM at 4.16% up by 6 bps YoY ➤ Consol PAT at Rs. 663 crs after Covid provisions of Rs. 952 crs taking total provision at Rs. 2,155 crs Credit growth 2% YoY and Deposit growth 10% YoY ➤ PCR improved to 77%; Total loan related provisions at 132% of GNPA ➤ Liquidity Coverage Ratio (LCR) stands at 140% Loan book quality stable; GNPA at 2.21% (reduction of 32 bps sequentially) ➤ NNPA improved to 0.52% from 0.86% QoQ Efficiency ratio at 40.98% (43.42% LY) ➤ Client base at 26 million 2 IndusInd Bank#3How We Measure Up On Key Metrics Net Interest Margin (NIM) 4.10% 4.15% 4.25% 4.28% 4.16% 1.98% 1.82% ROA 0.85% 0.69% 0.42% 17.26% 15.62% ROE 7.12% 5.86% 3.69% Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Cost / Income Net NPA Revenue/Employee (Rs Lakhs) 43.42% 43.31% 42.90% 40.98% 39.38% 1.12% 1.05% 0.91% 0.86% 0.52% 69 63 65 55 65 55 64 66 99 T Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Consistent delivery of strong operating performance 3 IndusInd Bank#4Ratings Domestic Rating: CRISIL AA + for Infra Bonds program CRISIL AA for Additional Tier I Bonds program CRISIL A1+ for certificate of deposit program / short term FD programme IND AA+ for Senior bonds program by India Ratings and Research IND AA for Additional Tier I Bonds program by India Ratings and Research IND A1+ for Short Term Debt Instruments by India Ratings and Research International Rating: Ba1 for Senior Unsecured MTN programme by Moody's Investors Service 4 IndusInd Bank#5Consolidated Financial Performance 5 IndusInd Bank#6Steady Headline Numbers for Q2 FY21 Net Interest Income Rs. 3,278 crs Y-o-Y Growth Q-0-Q Growth 13% (1%) Total Fee Income Rs. 1,554 crs (10%) 2% Rs. 4,832 crs 4% 0% Revenue Operating Profit Rs. 2,852 crs 9% (3%) Net Profit Rs. 663 crs 6 (53%) 30% IndusInd Bank#7Top line momentum Y-o-Y Growth Q-0-Q Growth Advances Rs. 2,01,247 crs 2% 2% Deposits Rs. 2,27,884 crs 10% 8% CASA Rs. 91,846 crs 7% 9% TD Rs. 1,36,038 crs 12% 7% Borrowings Rs. 52,385 crs 18% (12%) 7 IndusInd Bank#8Balance Sheet (Rs Crs) Q2FY21 Q2FY20 Y-0-Y (%) Q1FY21 Q-0-Q (%) Capital & Liabilities Capital 756 693 9% 694 9% Reserves and Surplus 38,244 32,171 19% 34.134 12% Share Warrant Subscription money 674 674 674 Deposits 2,27,884 2,07,193 10% 2,11,265 8% Borrowings 52,385 44,558 18% 59,196 (12%) Other Liabilities and Provisions 12,053 9,644 25% 11,953 1% Total 3,31,996 294,933 13% 3,17,916 4% Assets Cash and Balances with RBI 8,278 9,973 (17%) 7,621 9% Balances with Banks 37,566 5,306 608% 28,497 32% Investments 62,953 63,540 (1%) 59,596 6% Advances 2,01,247 1,97,113 2% 1,98,069 2% Fixed Assets 1,890 1,799 5% 1,855 2% Other Assets Total 20,062 3,31,996 17,202 17% 22,278 (10%) Business (Advances + Deposit) 4,29,131 2,94,933 13% 4,04,306 6% 3,17,916 4% 4,09,333 5% 8 Indusind Bank#9Profit and Loss Account - Q2 FY21 (Rs Crs) Net Interest Income Q2FY21 3,278 Q2FY20 Y-0-Y (%) Q1FY21 Q-0-Q (%) 2,909 13% 3,310 (1%) Other Income 1,554 1,727 (10%) 1,520 2% Total Income 4,832 4,636 4% 4,830 Operating Expenses 1,980 2,013 (2%) 1,902 4% Operating Profit 2,852 2,623 9% 2,928 (3%) Provisions & Contingencies 1,964 737 166% 2,259 (13%) Profit before Tax 888 1,886 (53%) 669 33% Provision for Tax 225 485 (54%) 159 42% Profit after Tax 663 1,401 (53%) 510 30% 9 Indusind Bank#10Profit and Loss Account - HY FY21 (Rs Crs) HYFY21 HYFY20 Y-0-Y (%) Net Interest Income 6,587 5,753 14% Other Income 3,075 3,390 (9%) Total Income 9,662 9,143 6% Operating Expenses 3,882 3,929 (1%) Operating Profit 5,780 5,214 11% Provisions & Contingencies 4,224 1,168 261% Profit before Tax 1,556 4,046 (62%) Provision for Tax 383 1,213 (68%) Profit after Tax 1,173 2,833 (59%) 10 Indusind Bank#11Key Financial Indicators Return on Assets PPOP/Average Assets Return on Equity Cost Income Ratio Net Interest Margin Net NPA EPS (annualized, Rs. per share) Capital + Reserves (Excl. Revaluation Reserve) (Rs. in crs) 11 Q2FY21 Q2FY20 Q1FY21 0.85% 1.98% 0.69% 3.66% 3.57% 3.95% 7.12% 17.26% 5.86% 40.98% 43.42% 39.38% 4.16% 4.10% 4.28% 0.52% 1.12% 0.86% 37.20 80.88 29.44 39,357 33,216 35,183 IndusInd Bank#12Well Diversified Loan Book Loan Book (Rs crs) 193,520 197,113 2,01,247 186,394 144,954 44% 42% 42% 61% 61% Consumer Finance 56% 58% 58% (Rs crs) Sep-20 39% 39% Vehicle Loans Comm. Vehicle Loans 59,214 30% FY18 FY19 FY20 Jun-20 Sep-20 23,932 12% FY18 and FY19 are not Consumer Finance Division Corporate & Commercial Banking comparable due to reclassification of BBG & MFI Small Corporates 2% Utility Vehicle Loans Small CV 4,539 2% 3,691 2% Two Wheeler Loans 5,739 3% (Rs crs) Car Loans 7,460 4% Corporate Sep-20 Tractor 5,484 3% Banking Large 41,927 20% Corporates Mid Size Corporates 20% Mid size Vehicle Finance 39,889 20% Corporates 29% Small 3,611 2% Corporates Equipment Financing Non-Vehicle Loans Business Banking Loan Against Property Credit Card 8,369 4% 34,223 11,531 6% 17% 9,540 5% 4,853 2% Total Advances 85,427 42% Large Corporates 21% BL, PL, AHL, Others Microfinance* 8,299 4% Non Vehicle Retail 17% Total Advances *includes BFIL 22,383 1,15,820 11% 58% Microfinance 11% 12 IndusInd Bank#13Diversified Corporate Loan Book Sector % Lease Rental 4.41% - Real Estate Commercial and Residential 3.56% Steel 3.16% ■Gems and Jewellery 3.11% INBFCs (other than HFCS) 2,14% ■Power Generation - Renewable 1.78% Housing Finance Companies 1.12% Services 1.07% Telecom- Cellular 1.04% Other Industry 21.05% Corporate Banking 42.44% Consumer Banking 57.56% Total 100.00% 13 IndusInd Bank#14Vehicle Finance Segment Wise Collection Update September Collection Efficiency 98.7% 98.4% 95.6% 95.4% 94.3% 92.1% 89.2% 82.4% Cars Construction LCV MHCV Equipments Overall Vehicles Tractors 2-Wheelers SCV 14 IndusInd Bank#15Microfinance Performance Update 99.9% Cumulative Collection Efficiency for 2.7 mn new loans (May - Oct) Collection Efficiency % 99.2% customers resumed payment since Lockdown 99.84%* 93% 91% 99.2% Sep'20 Oct'20 Paying Customers % Cumulative Collection Efficiency * For entire portfolio originated in FY21, representing ~27% of overall loan portfolio. 15 IndusInd Bank#16Well Rated Corporate Portfolio PERCENT 24% 22% Investment Grade 20% OF RATED 18% 16% 14% 12% PORTFOLIO 10% 8% 6% 4% Sub Investment Grade Unsecured Non Fund Based % Secured Non Fund Based % Unsecured Fund Based % Secured Fund Based % 0% + IB1 (AAA) IB2+ IB2 (AA) IB2- (AA-) IB3+ (A+) IB3 (A) IB3- (A-) IB4+ IB4 (BBB) (AA+) (BBB+) IB4- (BBB-) IB5+ (BB+) IB5 (BB) IB5-(BB-) IB6 (B) IB7 (C) IB8 (C) NPA (D) 2% 16 IndusInd Bank#17Improving CASA profile Building CASA traction Expanding branch network Focus on target market segments ➤ Government business ➤ Capital market flows. ➤ Key Non Resident markets ➤ Scaling up branded Wealth offering "Pioneer" ➤ Self employed and Emerging Corporate businesses ➤ Transaction Banking and CMS Mandates Differentiated service propositions Digital distribution Current Account (CA) CASA 43.1% 41.5% 42.4% 40.4% 40.0% 40.3% 91,865 91,846 86,539 85,838 81,557 84,473 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 CASA (Rs crs) % of Total Deposits Savings Account (SA) 28.7% 28.0% 15.1% 15.3% 14.4% 13.5% 14.1% 12.4% 30.0% 26.3% 24.9% 25.0% 64,895 58,117 53,130 57,652 52,527 57,073 34,773 31,946 28,887 27,721 28,427 26,970 Q1FY20 Q2FY20 Q3FY20 Q4FY20 CA (Rs crs) Q2FY21 Q1FY21 % of Total Deposits 17 Q1FY20 Q2FY20 Q3FY20 SA (Rs crs) Q4FY20 Q1FY21 Q2FY21 % of Total Deposits IndusInd Bank#18Other Income Core Fee Securities/MM/FX Trading/Others Total (Rs Crs) Q2FY21 Q2FY20 Y-0-Y (%) Q1FY21 Q-0-Q (%) 1,061 1,468 (28%) 682 56% 493 259 90% 838 (41%) 1,554 1,727 (10%) 1,520 2% 18 IndusInd Bank#19Diverse Revenues from Core Fee Income (Rs Crs) Q2FY21 Q2FY20 Y-0-Y(%) Q1FY21 Q-o-Q(%) Trade and Remittances 152 182 (16%) 116 31% Foreign Exchange Income 228 277 (18%) 155 47% Distribution Fees (Insurance, MF, 323 322 174 86% Cards) General Banking Fees / PSL 123 126 (2%) 109 13% Loan Fees 212 360 (41%) 99 114% Investment Banking 23 201 (89%) 29 (21%) Total Core Fee Income 1,061 1,468 (28%) 682 56% 1979 IndusInd Bank#20Diversified and Granular Fee Streams - Q2 FY21 Corporate Banking (21%) Consumer Banking (48%) Trade and Remittances, 8% Trade and Remittances, 2% Investment Banking - Project Finance / Advisory, 1% Investment Banking - Foreign Exchange, 7% Foreign Structured Finance,0% Investment Banking - Loan Syndication, 1% Exchange, 8% Loan Processing - Large Corp, 1% Loan Processing - Medium Corp, 2% Loan Processing - Small Corp, 0% Securities/MM/FX Trading/Others, 31% Distribution, 21% General Banking, 8% Loan Processing, 10% PSLC, 0% 20 20 Trading and Other Income (31%) IndusInd Bank#21Yield / Cost Movement 9.10% 11.97% 5.58% 4.94% Q2FY21 Corporate Bank Consumer Finance Total 9.38% 11.85% 5.73% 5.10% Q1FY21 Yield on Assets Yield on Advances Cost of Deposits Cost of Funds •Yield on Assets/Cost of funds are based on Total Assets/Liabilities Outstanding (Rs crs) Segment-wise Yield Q2FY21 Yield (%) Q1FY21 Outstanding (Rs crs) Yield (%) 85,427 8.42% 83,986 8.56% 1,15,820 14.63% 1,14,083 14.49% 2,01,247 11.97% 1,98,069 11.85% 21 IndusInd Bank#22Provisions held as on September 30, 2020 ■ Specific provision of Rs. 2,646 crs related to non-performing loans Provision of Rs. 2,155 crs related to COVID-19 Floating provisions of Rs. 70 crs other than related to COVID-19 Standard asset provision of Rs. 972 crs other than related to COVID-19 Other provisions of Rs. 150 crs on standard assets Total loan related provisions at 132% of GNPA Loan related provisions are 3.0% of the loans 22 22 IndusInd Bank#23Credit Cost (Rs Crs) FY18 FY19 FY20 Q1FY21 Q2FY21 HYFY21 Corporate Bank Consumer Finance Gross Credit Costs 468 2,134 1,893 907 419 1,326 433 585 1,136 259 201 460 901 2,719 3,029 1,166 620 1,786 62 146 856 2,689 Gross Credit Costs (Basis Points on Advances) Net Credit Cost Net Credit Costs 59 144 144 58 30 87 (Basis Points on Advances) 146 59 31 89 2,973 1,157 602 1759 PCR 56% 43% 63% 67% 77% 77% 22% 38% 32% 26% 48% 55% 78% 62% 68% 74% 52% 45% FY18 FY19 FY20 Q1FY21 Q2FY21 HYFY21 Corporate Loan Book Consumer Finance Loan Book 23 IndusInd Bank#24Loan Portfolio - Movement in NPA and Restructured Advances Opening Balance Additions Deductions Gross NPA Net NPA % of Gross NPA % of Net NPA Provision Coverage Ratio (PCR) Restructured Advances Restructured + Gross NPA to Advances *After sale to ARC Rs.95 crs (Rs. 26 crs) (Rs Crs) Q2FY21 Q1FY21 Corporate Consumer Total Corporate Consumer Total 3,388 1,711 5,099 3,416 1,731 5,147 13 386 399 1,225 312 1,537 471 495 966 1,253 332 1,585 2,930 1,602 4,532* 3,388 1,711 5,099* 1,056 1,703 2.21% 2.53% 0.52% 0.86% 77% 67% 0.05% 2.26% 0.05% 2.58% 24 IndusInd Bank#25NPA Composition – Consumer Finance - (Rs Crs) Q2 FY21 Com. Vehicle Utility Const. Equip. CV Small TW Cars Tractor BBG/LAP HL/PL/ Others Cards MFI Total Gross NPA 440 53 76 66 223 Gross NPA % 1.82% 1.17% 0.90% 1.78% 3.80% 65 0.87% 70 1.27% 189 34 28 358 1,602 0.89% 0.40% 0.57% 1.58% 1.36% Q1 FY21 Com. Vehicle Utility Const. Small Equip. CV TW Cars Tractor BBG/LAP HL/PL/ Others Cards MFI Total Gross NPA 524 51 90 Gross NPA % 2.19% 66 1.16% 1.11% 1.82% 2.62% 0.80% 1.43% 154 58 67 253 1.23% 43 38 367 1,711 0.54% 0.79% 1.55% 1.48% 25 25 IndusInd Bank#26Strong Balance Sheet & Profitability Buffers in Place Capital Adequacy Pre Provision Operating Profit Margin (Rs Crs) 5.9% 30 Sep 20 30 Jun 20 5.7% 5.2% 4.6% Credit Risk, CVA and UFCE 2,24,353 2,22,384 4.3% 0.8% 2.2% Market Risk 8,977 10,985 1.7% 4.6% 3.9% Operational Risk Total Risk Weighted Assets 28,353 28,353 3.8% 2,61,683 2,61,722 2.7% 3.0% 1.8% 1.4% FY18 FY19 FY20 Q1FY21 Q2FY21 Core Equity Tier 1 Capital Funds 37,942 34,435 ■PBT/Loans Total Provisions/Loans ■PPOP/Loans Additional Tier 1 Capital Funds 3,490 3,490 Liquidity Coverage Ratio Tier 2 Capital Funds 1,871 1,749 140% 124% Total Capital Funds 43,303 39,674 109% 111% 112% Minimum Required CRAR 16.55%* 15.16% CET1 14.50%* 13.16% Tier 1 15.83% 14.49% Tier 2 0.72% 0.67% Mar-18 Mar-19 Mar-20 LCR Jun-20 Sep-20 Min * CRAR at 16.87% and CET1 at 14.82% including HY FY 21 PAT 26 26 Indusind Bank#27Distribution Expansion to Drive Growth Gujarat 143 J&K 5 HP 12 Punjab 131 Chandigarh Rajasthan 115 D & NH 2 Daman & Diu Goa 11 Particulars Strengthening Distribution Infrastructure Dec 31, Mar 31, Jun 30, Sep 30, 2019 2020 2020 2020 13 Uttarakhand 20 Haryana 119 NCT of Delhi 63 Branches/Banking Outlets 1,851 1,911 1,911 1,910* Arunachal Pradesh Sikkim 3 Assam 34 BFIL Branches 2,163 2,071 2,079 2,144 UP 125 Meghalaya 4 Nagaland 3 Bihar 43 Vehicle Finance Marketing 859 853 854 841 Manipur 3 Outlets MP 93 Jharkhand 28 Tripura 6 Total WB 79 Mizoram 2 Chhattisgarh 45 ATMs 4,873 4,835 4,844 4,895 2,721 2,760 2,721 2,785 Maharashtra 205 Karnataka 120 Telangana 77 Andhra Pradesh 57 Pondicherry Kerala 65 Tamil Nadu 105 Odisha 116 Note: Numbers given above are total branches in each state *includes 208 specialized branches and 150 Banking outlets 27 • Branch/Representative Office London Dubai Abu Dhabi Indusind Bank#28Shareholding Pattern Paid up Capital as of September 30, 2020 MFs/Banks/ Insurance Co 15.79% Individuals Private Corporates 2.93% NRIS/ Director/. 9.07% Others 2.91% Promoters# 13.45% FIIS* 47.46% GDR issue 8.39% *includes FPIS # 14.92% with diluted capital including warrants/ESOP 28 IndusInd Bank#29Thank You 29 29 IndusInd Bank#30Disclaimer 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. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. Any person placing reliance on the information contained in this presentation or any other communication by the Bank does so at his or her own risk and the Bank shall not be liable for any loss or damage caused pursuant to any act or omission based on or in reliance upon the information contained herein. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Further, past performance is not necessarily indicative of future results. This presentation is not a complete description of the Bank. This presentation may contain statements that constitute forward-looking statements. All forward looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. Important factors that could cause actual results to differ materially include, among others, future changes or developments in the Bank's business, its competitive environment and political, economic, legal and social conditions. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Bank disclaims any obligation to update these forward-looking statements to reflect future events or developments. Except as otherwise noted, all of the information contained herein is indicative and is based on management information, current plans and estimates in the form as it has been disclosed in this presentation. Any opinion, estimate or projection herein constitutes a judgment as of the date of this presentation and there can be no assurance that future results or events will be consistent with any such opinion, estimate or projection. The Bank may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such change or changes. The accuracy of this presentation is not guaranteed, it may be incomplete or condensed and it may not contain all material information concerning the Bank. This presentation is not intended to be an offer document or a prospectus under the Companies Act, 2013 and Rules made thereafter, as amended, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended or any other applicable law. Figures for the previous period/year have been regrouped wherever necessary to conform to the current period's/year's presentation. Total in some columns/rows may not agree due to rounding off. Note: All financial numbers in the presentation are from Audited Financials or Limited Reviewed financials or based on Management estimates. 80 30 IndusInd Bank