23 July 2015
Update | Sector: Financials
IndusInd Bank
BSE Sensex
28,371
S&P CNX
8,590
CMP: INR949
TP: INR1,140 (+20%)
Buy
Motilal Oswal values your
support in the Asiamoney
Brokers Poll 2015 for India
Research, Sales and Trading
team. We
request your ballot.
Robust growth, market share gains to continue
Best in class return ratios, well capitalized; reiterate Buy
n
n
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INR b)/(USD b)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Free float (%)
IIB IN
580.7
551.1/8.6
967/534
11/14/62
85
n
n
Avg Val (INR m)/Vol ‘000 790/1,003
Market Share (MS) gains (40bp over the next three years), increasing confidence
on liability side to fund growth (500bp+ increase in CASA ratio over FY15-18),
rebound in retail loan growth, acquisition of Gems and Jewelry portfolio, and
new product launches should drive loan CAGR of 25%+ over FY15-18.
A differentiated branch expansion strategy (5% branch market share in identified
centers) would help ensure healthy SA and retail deposit growth. We expect
CASA ratio to increase from 34% in FY15 to 39% by FY18.
Healthy share of core revenues (5.6% of assets – best in the industry), continued
productivity gains, operating leverage (despite strong expansion), control over
asset quality, and strong loan growth should enable ~30% earnings CAGR.
Post the QIP issuance and expected promoter infusion (INR43.3+7.5b), CET1 ratio
would increase to ~17%—the highest amongst Indian banks. RoA and RoE remain
best-in-class at 2%+ and 18-19%, respectively. We expect CET1 of ~14% by FY18.
Building home markets to drive ~30% SA growth over FY15-18
Our branch analysis suggests that during the last three years (FY12-15), IIB has
opened more than half of its new branches in 20 districts. New Delhi was the
only metro market to feature in the top-20 list. During this period, IIB has made
significant branch MS gains in SA-rich regions like Gurgoan (3.8% branch market
share versus 1.9% in 2012), Sangli (3.7% versus 0.4%), and Kolhapur (2.8%
versus 0.3%). We believe its current strategy of building at least 15 home
markets (5%+ branch market share) would create a strong brand for IIB and
help it to deliver ~30% SA deposit CAGR over FY15-18.
Financial Snapshot (INR Billion)
Y/E Mar
2016E 2017E 2018E
NII
44.1 54.8 69.8
OP
41.6 51.9 66.3
NP
24.3 30.2 38.7
NIM (%)
4.0
4.1
4.2
EPS (INR)
41.8 52.1 66.6
EPS Gr. (%)
23.5 24.5 27.8
BV/Sh. (INR) 287.1 331.9 389.2
ABV/Sh. (INR) 285.4 329.1 385.3
RoE (%)
18.0 16.8 18.5
RoA (%)
2.0
2.1
2.2
Payout (%)
14.0 14.0 14.0
Valuations
P/E (X)
22.7 18.2 14.3
P/BV (X)
3.3
2.9
2.4
P/ABV (X)
3.3
2.9
2.5
Div. Yield (%) 0.5
0.7
0.8
Well equipped for next growth phase
IIB is well placed for the next growth cycle, with recent capital infusion (tier-I to
increase by >600bp; sufficient for 3-4 years of 25%+ loan growth) and strong
branch expansion (50% of existing branches opened in last three years). Pick-up
in retail growth would drive up share of its Consumer Finance Division (CFD)
and lead to NIM expansion. Since the management change in FY08, IIB’s loan
and PAT MS has improved from 0.5%/0.2% in FY08 to 1%/2.2%, and its
incremental loan MS during the period was 125bp. Over FY15-18, we factor in
27% loan CAGR and expect loan MS to rise to 1.3%.
Healthy RoE of 18%+, RoA best in class at 2%+; reiterate Buy
In the third phase of its growth cycle, IIB is likely to focus on building scale, with
its 3Ds strategy of Dominate (among top-3 banks in home markets),
Differentiate (extensive use of technology and cross-selling), and Diversify (new
product addition, payment solutions, etc). Strong core profitability (3%+ of
average assets versus private banks’ average of 2.5% and HDFCB’s 2.7%),
improving CASA ratio (best among mid-sized private banks), and healthy return
ratios (RoA of 2%+ and RoE of 18-19%) are the key positives. With growth
capital in place (17%+ CET-1 ratio), we expect 30% PAT / 25%+ EPS CAGR over
FY15-18. The stock trades at 2.9x FY17E BV and 18.2x FY17E EPS. Reiterate
Buy.
Alpesh Mehta
(Alpesh.Mehta@MotilalOswal.com); +91 22 3982 5415
Vallabh Kulkarni
(Vallabh.Kulkarni@MotilalOswal.com); +91 22 3982 5430
Investors are advised to refer through disclosures made at the end of the Research Report.
Motilal Oswal research is available on
www.motilaloswal.com/Institutional-Equities,
Bloomberg, Thomson Reuters, Factset and S&P Capital.

IndusInd Bank
Well thought out branch expansion strategy
Silently deepening presence in key centers
n
n
n
n
n
Our branch analysis suggests that during the last three years (FY12-15), IIB has opened
more than half of its new branches in 20 districts. New Delhi was the only metro
market to feature in the top-20 list.
Of the top-20, the Western region accounted for 50% of incremental expansion and
the Northern region for 32%. Our analysis also shows that IIB is smartly creating in-
roads to highly competitive locations, with incremental expansion in bottom 50%
locations, where there are only one or two large sizeable private banks are present.
During FY12-15, IIB has made significant branch MS gains in SA-rich regions like
Gurgaon (3.8% branch market share versus 1.9% in 2012), Sangli (3.7% versus 0.4%),
and Kolhapur (2.8% versus 0.3%).
We believe its current strategy of building at least 15 home markets (5%+ branch
market share) would create a strong brand for the bank and help it to deliver ~30% SA
deposit growth over FY15-18.
Our discussions with bankers suggest that 4% branch market share is a good threshold
to extract benefits of strong brand equity in a particular location.
Exhibit 1: Top-20 districts account for 53% of IIB’s incremental branch additions (2012-15)
District
Gurgaon
Ahmedabad
Indore
Lucknow
Nagpur
Kolhapur
Jaipur
Sangli
Vadodara
Gautam Buddha Nagar
Patna
Chandigarh
Raipur
Mahesana
Anand
New Delhi
Kamrup Metropolitan
Yamunanagar
Thane
Rajkot
Top 20
All India
State
Haryana
Gujarat
Madhya Pradesh
Uttar Pradesh
Maharashtra
Maharashtra
Rajasthan
Maharashtra
Gujarat
Uttar Pradesh
Bihar
Chandigarh
Chhattisgarh
Gujarat
Gujarat
Delhi
Assam
Haryana
Maharashtra
Gujarat
Branches o/s
2012 2015 Chg.
7
5
2
2
2
1
5
1
3
4
3
2
2
1
2
24
1
0
9
3
79
400
22
19
15
14
12
11
14
10
11
11
10
9
8
7
7
29
6
5
13
7
240
801
15
14
13
12
10
10
9
9
8
7
7
7
6
6
5
5
5
5
4
4
161
401
% of Incremental
Branches
2012-2015
5%
5%
4%
4%
3%
3%
3%
3%
3%
2%
2%
2%
2%
2%
2%
2%
2%
2%
1%
1%
53%
Ranking
(based on branches)
2012 2015 Chg.
20
26
24
30
29
26
22
20
24
20
25
28
22
24
18
29
27
27
29
21
30
42
8
18
13
20
17
12
18
8
15
12
20
13
16
10
12
29
16
10
29
16
20
35
12
8
11
10
12
14
4
12
9
8
5
15
6
14
6
0
11
17
0
5
10
7
Branch Market Share
(%)
2012 2015 Chg.
1.9%
0.5%
0.5%
0.3%
0.4%
0.3%
0.8%
0.4%
0.6%
1.2%
0.6%
0.7%
0.8%
0.5%
0.8%
0.9%
0.4%
0.0%
0.9%
0.8%
0.7%
0.4%
3.8%
1.8%
2.9%
1.7%
2.1%
2.8%
1.5%
3.7%
1.7%
2.7%
1.4%
2.6%
2.1%
2.6%
2.3%
0.9%
2.0%
2.6%
1.1%
1.4%
1.8%
0.6%
1.9%
1.2%
2.4%
1.4%
1.6%
2.5%
0.7%
3.3%
1.2%
1.4%
0.8%
1.9%
1.3%
2.1%
1.5%
0.1%
1.6%
2.6%
0.2%
0.7%
1.0%
0.2%
Note- The above analysis is based on branches data as of Feb-15.
Source: RBI, MOSL
23 July 2015
2

IndusInd Bank
Exhibit 2: Establishing presence in SA-rich states
Branches o/s
National Avg. SA
25,383
31,401
26,189
22,392
18,538
97
MH
75
GJ
67
HR
66
UP
20,716
49
RJ
Source: RBI, MOSL Note: G B Nagar stands for Gautam Buddha Nagar Source: RBI, MOSL
Avg. SA Balance (INR)
Exhibit 3: Gurgaon and Sangli have reached ~4% branch MS
Note: Avg. balance per customer data as of 2013
Exhibit 4: In 2012, TN accounted for 8% of overall branches
which dropped to 5% in 2015
MH, 11%
TN, 8%
RJ, 7%
Exhibit 5: In 2015, Top-4 states account for ~40% of overall
branch network
MH, 13%
Others,
37%
Others,
37%
GJ, 10%
HR, 9%
GJ, 7%
DL, 5%
HR, 5% UP, 6%
WB,
6.7%
PN, 6%
Source: RBI, MOSL
DL, 4%
PN, 5%
WB, 5%
WB,
6.7%
TN, 5%
UP, 9%
Source: RBI, MOSL
Exhibit 6: Top 4 states accounted for ~60% of the branch
expansion over 2012-15
Others,
37%
BH, 3%
AS, 4%
CH, 5%
RJ, 5%
WB,
6.7%
HR, 14%
UP, 13%
Source: RBI, MOSL
MH, 15%
Exhibit 7: KMB/YES largely track Top 3 PBs in key SA state;
while, IIB follows a differentiated branch expansion strategy
IIB - Proportion of centers where large PBs are not present (%)
State SA MS (%)
12.7
12.3
GJ, 14%
3.5
48.9
MH
45.5
UP
41.9
HR
Source: RBI, MOSL
23 July 2015
3

IndusInd Bank
Exhibit 8: In Maharashtra, four districts accounted for 75% of
incremental branch addition (2012-15); branch MS in Sangli
Exhibit 9: Interestingly, proportion of unique centers where
has increased to 3.7% versus 0.4% in 2012
no large private bank is present has been increasing
Others
25%
Maharashtra Centers
Nagpur
23%
100
100
93
71
Thane
9%
Sangli
20%
Source: RBI, MOSL
79
51
Kolhapur
23%
11
2010
13
2011
15
2012
21
2013
29
2014
47
2015
Overlap with Top 3 PBs (%)
Source: RBI, MOSL
Exhibit 10: In Gujarat, five districts accounted for 86% of
incremental branch addition (2012-15)
Others
14%
Rajkot
9%
Anand
12%
Mahesana
14%
Vadodara
19%
Source: RBI, MOSL
Ahmedabad
33%
Exhibit 11: Similar to Maharashtra, proportion of unique
centers have been increasing in Gujarat
Gujarat Centers
94
86
87
Overlap with Top 3 PBs (%)
93
96
64
16
2010
22
2011
23
2012
27
2013
27
2014
45
2015
Source: RBI, MOSL
Exhibit 12: In Haryana, four districts accounted for 67% of
incremental branch addition (2012-15
Exhibit 13: Branch overlap with top 3 private banks has
reduced to 58% v/s 100% in 2012; Haryana accounted for 14%
of incremental branch addition
Haryana Centers
Overlap with Top 3 PBs (%)
Others
33%
Gurgaon
35%
100
100
100
86
86
58
Panipat
9%
Karnal
12%
Yamunanag
ar
12%
Source: RBI, MOSL
5
2010
9
2011
12
2012
22
2013
22
2014
43
2015
Source: RBI, MOSL
23 July 2015
4

IndusInd Bank
SA MS up 3.5x from FY08; CASA to reach ~40%
Focused branch expansion and savings deregulation key enablers
n
n
n
n
Focused branch expansion, savings deregulation, and improving brand image have
driven up IIB’s SA market share (MS).
CASA ratio has been improving, and we expect it to reach ~40% by FY18 (comparable
with other large private banks).
Average SA balance/branch is lower than other private sector banks at INR185m
(average for private sector banks is INR275m). We believe as the branches mature,
SA/branch would go up disproportionately.
Reduction in SA rates is a concern (from a competitive positioning perspective)
however, we derive comfort from the early trends wherein despite cutting SA rates
(for <INR0.1m and >INR0.1m to 4%/5% from 4.5%/6%) growth has remained healthy.
Exhibit 14: Most improvement on CASA has been led by strong performance on the SA
front
Deeper geographical
penetration, increasing
cross-selling, product
innovation, digitalization,
and new customer
acquisition would keep SA
growth healthy
SA Market Share (bp)
Incremental SA Market Share (bp)
117
99
104
111
49
19
12
FY06
21
14
FY07
21
15
FY08
23
7
14
FY09
16
FY10
21
FY11
29
FY12
38
FY13
47
FY14
54
FY15
Source: MOSL, Company
Exhibit 15: IIB’s CA market share has quadrupled since FY08
Strong growth in CA driven
by market share gains
47
80
CA Market Share (bp)
632
7
173
162
335
Incremental CA Market Share (bp)
459
484
401
47
FY06
53
FY07
40
FY08
63
FY09
79
FY10
94
FY11
105
FY12
127
FY13
137
FY14
159
FY15
Source: MOSL, Company
Exhibit 16: CASA ratio has improved by ~700bp in the last three years
CA ratio (%)
SA ratio (%)
Expansion in branch
network and corporate tie-
ups have resulted in
significant improvement in
CASA ratio; Expect CASA
ratio to rise +500bp over
FY15-18
5.9
13.4
FY09
7.2
16.5
FY10
8.9
18.3
11.1
16.2
FY12
13.0
16.3
FY13
16.4
17.5
20.1
20.3
19.9
16.2
FY14
16.7
FY15
18.5
19.0
19.4
FY11
FY16E
FY17E
FY18E
Source: MOSL, Company
23 July 2015
5

IndusInd Bank
Exhibit 17: Private banks - CASA performance over the last five years (CASA ratio; %)
FY09
FY12
FY15
IIB has gradually improved
its CASA level, which is now
just above the industry
average
ICICIBC
HDFCB
AXSB
IIB
Source: MOSL, Company
Exhibit 18: IIB aims to double its branch network over the
next three years (branches)
Branches
500
602
801 811
400
Exhibit 19: Maintaining ATMs to branch ratio at ~2x ; ATM
CAGR of 29% over FY12-15
ATM
1,110
497 594
692
882
1,487 1,543
210
137 170 180 180
300
336 356
83
99
Source: Company, MOSL
Source: Company, MOSL
Exhibit 20: As the branches mature, SA per branch would go up disproportionately (SA per
branch; INR m)
IndusInd Bank
231
252
Private Banks Avg.
260
255
134
260
156
266
180
275
185
176
74
199
225
60
68
72
98
120
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
Source: MOSL, Company
23 July 2015
6

IndusInd Bank
Strong loan growth to continue
Incremental loan MS at 167bp in FY15; Outstanding MS just 100bp
n
n
n
n
Rebound in CV and CE loan growth to 20%+ (8%+ in FY15) would accelerate loan
growth for the Consumer Finance Division (CFD; 41.5% of loans).
Launch of new products like gold loans, commercial cards (charge cards), rural loans,
and unsecured loans to small businessmen would drive CFD growth higher.
On the corporate side, strong traction in working capital and transaction banking
business, acquisition of Gems and Jewelry portfolio (from RBS), and building skills like
project underwriting and advisory would drive strong loan CAGR of 27% over FY15-18.
IIB’s loan market share (MS) has improved from 54bp in FY08 to 1%; its incremental
MS during the period was 125bp. We expect loan MS to rise to 133bp by FY18.
CV/CE loans to rebound in FY16; share of non-vehicle loans to rise
The management expects strong rebound in CV and CE financing, with mid-20s
growth in FY16 (8% in FY15). This would be led by strong traction in replacement
demand and pick-up in bottom-up demand. IIB expects vehicle finance loans to grow
20%+ to INR280b+. There is strong traction in new products like LAP and unsecured
retail loans. Healthy growth is also seen in Retail Business Banking (reported under
Corporate Banking – 7% of the loan book). New products like gold loans, commercial
cards (charge cards), rural loans among others are likely to boost growth. Consumer
loans (including retail business banking) ex-vehicle loans are likely to increase to
INR150b+ from INR99b in FY16 led by strong growth in LAP and new products.
Exhibit 21: Over the last 3-4 years, IIB has diversified its
Consumer Finance Division loans…
LAP Unsecured
1%
2%
1QFY12
INR 127b
Exhibit 22: …by expanding presence in non-vehicle loans,
loans against property, and unsecured loans
LAP
13%
Unsecured
6%
1QFY16
INR 300b
CV
44%
Other
vehicle
37%
CV
60%
Other
vehicle
37%
Source: MOSL, Company
Source: MOSL, Company
Healthy growth momentum in corporate banking book to continue
Corporate Banking (ex-Retail Business Banking), which stood at INR360b as of FY15,
is likely to grow 20%+ to INR430b+. IIB is seeing strong traction in working capital
and transaction banking business. It is also seeing more bottom-up queries now,
which it expects will translate into loan growth in 2HFY16. In addition, the
acquisition of the INR45b Gems and Jewelry portfolio (from RBS) would further
boost growth. In our view IIB may look at sell down part of the portfolio to keep the
headline growth lower at ~25%.
23 July 2015
7

IndusInd Bank
Exhibit 23: Share of corporate loans increased, led by weakness in CV book (% of loans)
Corporate loans
contributed to~60% of
incremental loan growth
over FY12-15
Corporate Banking
Consumer Banking
45
55
47
53
48
52
49
51
50
50
52
48
51
49
51
49
49
51
49
51
47
53
45
55
43
57
43
57
42
58
41
59
42
58
Source: MOSL, Company
Market share gains to continue, with diversified portfolio
IIB’s loan market share has improved from 54bp in FY08 to 1% and incremental
market share during the period is 125bp. With strong traction in Corporate and
Commercial Banking, pick-up in vehicle loan portfolio, and addition of new products
in Consumer Finance Division, we expect IIB to report loan CAGR of 27%. We expect
IIB’s loan market share to rise to 133bp by FY18 (more than 2.5x of FY08).
Exhibit 24: Management aims to double the balance sheet
over next three years
Loans (INR b)
Loan growth (%)
Exhibit 25: Size differential with the larger private sector
banks is narrowing fast
IIB's loan book as a percentage of largest PB (%)
13.8
15.3 16.3
17.8
9.8
6.4
5.7
5.7
11.3 12.1
7.2
Source: Company, MOSL
Source: Company, MOSL
Exhibit 26: IIB’s loan market share has doubled since FY08
Loan MS (bp)
Incremental loan MS (bp)
167
194
189
189
133
73
42
9
62
58
39
54
57
63
66
76
101
81
143
143
84
92
101
112
123
133
Source: MOSL, Company
23 July 2015
8

IndusInd Bank
First mid-size private bank to cross 2%+ RoA
Focus on core revenues and operating leverage – key enablers
n
n
n
IIB has improved core revenue growth by capitalizing on its core strength of vehicle
financing and management expertise of fee income generation.
Its core-revenue-to-assets is one of the best at 5.6%, and has surpassed HDFCB’s 5.4%
and private sector banks’ average of 4.2%.
Fees (asset light business) provided much needed lever for branch expansion and RoA
improvement. Benefit of capital raising, control over cost and asset quality, strong
contribution from fees will enable IIB to report 2%+ RoA - first mid-size private sector
bank to achieve this.
Exhibit 27: Structural improvement in core income (% of average assets)
Core income % of assets
7.0
ICICIBC
HDFCB
AXSB
IIB
In the past two years, IIB’s
core income has been
higher than HDFCB’s
5.8
4.5
3.3
2.0
Core income = NII + Core Fee income
Source: MOSL, Company
Exhibit 28: IIB’s fee income remains the highest among peers
Fee income % of assets
Traction in fees is expected
to continue, led by focus on
forex, strong loan growth,
third-party distribution, and
Investment Banking income
2.5
2.0
1.5
1.0
0.5
ICICIBC
HDFCB
AXSB
IIB
Source: MOSL, Company
Exhibit 29: Fee income mix (%) – Forex and Investment
Banking fees driving growth
Trade Fees
Third Party Dist
37
2
21
13
15
12
FY09
21
5
25
14
22
14
FY10
Processing Fees
Investment banking
13
10
26
18
20
14
FY11
12
9
27
22
18
13
FY12
11
12
22
23
19
14
FY13
Forex
Other income
9
15
17
27
18
13
FY14
8
16
18
27
18
13
FY15
Exhibit 30: Fees now contribute ~38% of core income
Fee income / Core income (%)
37 36
37 36
36
32
34
36
37
36
38 38 38 38 38
34 34
Source: MOSL, Company
23 July 2015
Source: MOSL, Company
9

IndusInd Bank
Exhibit 31: Management expects forex income to be a key driver of fee income
Profit on exchange transactions (INRm)
Market share in forex income (%)
2.3
1.7
0.2
0.3
0.4
0.6
0.8
1.1
3.0
3.5
Relevant product
positioning and lower TAT
leading to impressive
market share gains for IIB
(mostly at the cost of public
sector and foreign banks)
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15E
Source: MOSL, RBI, Industry Data, Company
Exhibit 33: …and other opex/branch, despite significant
Exhibit 32: Lowest cost per employee amongst peers… (FY15) investment in network expansion (FY15)
Employees
Cost / Employee (INRm)
1.00
0.66
0.68
0.74
28.4
34.0
34.8
36.0
36.3
Branches
Other opex per branch (INR m)
0.56
IIB
HDFCB
ICICIBC
AXSB
YES
ICICIBC
IIB
HDFCB
AXSB
YES
Source: MOSL, Company
Source: MOSL, Company
Exhibit 34: Strong control over staff costs
Employee expenses (% of avg. assets)
0.9 0.9 0.9
0.7
0.5 0.5
0.6
1.0 1.0 1.0 1.0 1.0 1.0
Exhibit 35: Other operating expenses (% of average assets)
Other opex (% of avg. assets)
1.7 1.7
1.5
1.4
1.3 1.3
1.4 1.4
1.7
1.8
1.8 1.8 1.8
Source: MOSL, Company
Source: MOSL, Company
Exhibit 36: IIB to be first mid-size bank to demonstrate sustainable RoA improvement to
We expect RoA to sustain
above 2% in FY16-18E
11.7
7.1
4.3
0.2
FY06
0.4
FY07
6.9
0.3
FY08
0.6
FY09
1.1
FY10
1.4
FY11
1.6
FY12
1.6
FY13
1.8
FY14
1.8
2.0
2.1
2.2
ROA (%)
19.5
19.3
19.2
17.8
ROE (%)
17.5
19.0
18.0
18.5
16.8
FY15 FY16E FY17E FY18E
Source: MOSL, Company
23 July 2015
10

IndusInd Bank
Well-equipped for next growth phase
25%+ loan growth without dilution till FY19
n
n
n
IIB recently raised capital worth INR42.7b (~40% of outstanding net worth), leading to
an increase in the CET1 ratio from ~11.5% as at 1QFY16 to ~16.3%. Including the
INR7.5b equity issuance to promoters, CET1 would be >17%—the highest amongst
Indian banks.
The bank is well placed for the next growth cycle, given the recent capital infusion,
strong branch expansion (50% of existing branches opened in the last three years), and
technology initiatives.
RoA and RoE remain best-in-class at 2%+ and 18-19%, respectively. We expect CET1 of
~14% in FY18. We believe that the current capital position is sufficient for 4-5 years of
sustained 25%+ loan growth
Exhibit 37: IIB has set an internal floor of ~10.5% CET-1 ratio (%)
Loan growth has exceeded
RWA growth for the first
time since 1QFY13
RWA / Assets (%)
36
32
28
31
68
22
65
30
30
64
34
28
68
30
31
69
31
72
31
71
26
73
27
77
38
RWA Growth (%)
36
35
31
Loan growth (%)
37
28
24
76
31
26
24
77
24
82
22
84
22
85
25
81
32
32
22
23
79
24
76
Source: MOSL, Company
IndusInd Bank – 1yr forward PBV
4.3
3.3
2.3
1.3
0.3
2.1
0.6
PB (x)
Peak(x)
Avg(x)
4.1
3.9
Min(x)
IndusInd Bank – 1yr forward PE
60
50
40
30
20
10
0
3.7
16.9
20.2
PE (x)
Peak(x)
Avg(x)
Min(x)
49.5
Source: MOSL, Company
Source: MOSL, Company
23 July 2015
11

IndusInd Bank
Key takeaways from QIP documents
Geographical distribution of vehicle finance portfolio
Well diversified CV
portfolio; only 2 states
account for >10% share
The geographical distribution of IIB’s vehicle finance portfolio (consisting of loans for
M/HCV (including tractors and farm equipment), construction, earth-moving and
material-handling equipment, small CV, UV, cars and two-wheelers) across states
and UT in India as of March 31, 2015. The portfolio is well diversified with only
Rajasthan, Tamil Nadu and Kerala accounting for ~10% of the vehicle portfolio.
Exhibit 38: Geographical distribution of vehicle finance portfolio
% of vehicle
State
finance portfolio
Rajasthan
11.3%
Kerala
Tamil Nadu
West Bengal
Uttar Pradesh
Haryana
Gujarat
Maharashtra
Madhya Pradesh
Andhra Pradesh
Punjab
Telangana
Karnataka
Jharkhand
Chhattisgarh
Odisha
Assam
Delhi
Bihar
Himachal Pradesh
Goa
Tripura
Pondicherry
Uttaranchal
Mizoram
Sikkim
Chandigarh
Meghalaya
Jammu & Kashmir
10.2%
9.8%
6.1%
6.1%
6.1%
5.5%
5.4%
5.2%
4.8%
3.8%
3.3%
3.3%
3.3%
3.0%
2.8%
2.3%
2.0%
1.6%
0.8%
0.7%
0.5%
0.5%
0.4%
0.3%
0.3%
0.2%
0.2%
0.2%
Ashok Leyland
sales mix (%, FY14)
5.9%
10.1%
14.5%
1.8%
6.7%
5.2%
6.9%
10.4%
4.3%
4.8%
3.3%
3.7%
11.0%
0.4%
1.7%
2.4%
1.2%
1.9%
0.8%
1.3%
0.3%
0.0%
0.1%
0.3%
0.0%
0.0%
0.5%
0.0%
0.4%
Source: MOSL, Company
Top 10 states account for
>70% of vehicle finance
portfolio
23 July 2015
12

IndusInd Bank
Exhibit 39: Average ticket size of LAP segment compares very well with NBFCs
Maximum tenure for LAP is
10 years. Typical tenure for
most other segments is 4
years (2 years for 2W
loans).
4.1
38
2W
Avg. ticket size (INR '000)
% of loans
15.4
2.7
170
Small CV
4.6
310
Cars
2.9
530
Utility
Vehicles
560
Light CV
1170
H/MCV
4.1
1600
CE
5.5
9180
LAP
* Light CV and H/MCV together account for 15.4% of loans
Source: MOSL, Company
Exhibit 40: West contributes 50%+ of the deposits (Deposits
mix %)… partly driven by bulk deposits
6
8
9
19
4
6
10
21
5
8
10
27
Central
East (incl. NE)
South
58
59
51
North
West
Exhibit 41: West and North regions account for ~50% of
branches, but contribute >75% of IIB’s deposits
West
24%
South
18%
Central
17%
FY13
FY14
FY15
Source: MOSL, Company
North
26%
East
12%
North East
3%
Source: MOSL, Company
Exhibit 42: Metropolitan regions continue to account for bulk Exhibit 43: Population wise – Metro and Urban branches
of the deposits (deposits mix %)
account for 58% of overall branches
Metropolitan
1
3
13
Urban
1
3
19
Semi-urban
1
4
22
Urban
29%
Rural
22%
Rural
Metro
29%
83
77
73
FY13
FY14
FY15
Source: MOSL, Company
Semi-urban
20%
Source: MOSL, Company
23 July 2015
13

IndusInd Bank
Exhibit 44: Dupont analysis: Improvement in core income to drive RoAs higher
Y/E March
Net Interest Income
Core Fee Income
Core Income
Operating Expenses
Cost to Core Income
Employee cost
Others
Core operating Profits
Non Interest income
Trading and others
Operating Profits
Provisions
NPA
Others
PBT
Tax
Tax Rate
RoA
Leverage (x)
RoE
FY06
1.90
0.96
2.86
1.90
66.66
0.51
1.39
0.95
1.14
0.17
1.13
0.77
0.54
0.23
0.36
0.13
37.79
0.22
19.61
4.34
FY07
1.41
1.21
2.62
1.78
68.17
0.50
1.28
0.83
1.27
0.06
0.89
0.33
0.29
0.04
0.56
0.20
36.47
0.35
20.05
7.10
FY08
1.36
1.17
2.53
1.82
71.87
0.55
1.27
0.71
1.35
0.18
0.89
0.37
0.28
0.10
0.52
0.18
34.33
0.34
20.39
6.93
FY09
1.80
1.33
3.13
2.15
68.66
0.74
1.41
0.98
1.79
0.47
1.45
0.55
0.49
0.06
0.89
0.31
34.79
0.58
20.04
11.69
FY10
2.81
1.37
4.19
2.34
55.81
0.92
1.41
1.85
1.76
0.38
2.24
0.54
0.42
0.13
1.69
0.58
34.28
1.11
17.52
19.49
FY11
3.40
1.55
4.95
2.49
50.28
0.94
1.55
2.46
1.76
0.21
2.67
0.50
0.40
0.10
2.17
0.75
34.38
1.43
13.52
19.27
FY12
3.30
1.77
5.07
2.60
51.31
0.94
1.66
2.47
1.96
0.19
2.66
0.35
0.28
0.07
2.31
0.76
32.70
1.55
12.37
19.23
FY13
3.41
1.89
5.31
2.68
50.58
1.01
1.67
2.62
2.08
0.19
2.81
0.40
0.34
0.07
2.41
0.79
32.68
1.62
10.96
17.78
FY14
3.61
2.01
5.61
2.73
48.56
1.01
1.72
2.89
2.36
0.35
3.24
0.58
0.39
0.19
2.65
0.90
33.84
1.76
9.98
17.53
FY15
3.49
2.13
5.62
2.78
49.50
1.00
1.78
2.84
2.45
0.32
3.16
0.40
0.35
0.05
2.76
0.93
33.79
1.83
10.38
18.98
FY16E
FY17E
FY18E
3.69
3.78
3.90
2.22
2.28
2.30
5.91
6.06
6.21
2.84
2.88
2.86
48.13
47.45
46.11
1.02
1.04
1.05
1.82
1.84
1.82
3.06
3.18
3.34
2.63
2.67
2.66
0.41
0.39
0.36
3.48
3.58
3.71
0.42
0.44
0.45
0.36
0.38
0.39
0.06
0.07
0.07
3.06
3.14
3.25
1.02
1.05
1.09
33.50
33.50
33.50
2.03
2.09
2.16
8.88
8.07
8.54
18.05
16.83
18.47
Source: MOSL, Company
Exhibit 45: Comparative Dupont analysis: We expect IIB’s average RoA to be >2% for FY16-18E
Dupont analysis
Average
Net Interest Income
Fee income
Fee to core Income
Core Income
Operating Expenses
Cost to Core Income
Employee cost
Employee to total exp
Others
Core Operating Profit
Trading and others
Operating Profit
Provisions
NPA
Others
PBT
Tax
Tax Rate
RoA
Less: Dividend from Subs
Core RoA
Leverage (x)
RoE
ICICIBC
FY13-15 FY16-18
2.89
3.17
1.35
1.38
31.9
30.3
4.25
4.55
1.81
1.91
42.7
41.9
0.76
0.79
41.8
41.5
1.05
1.11
2.43
2.64
0.46
0.60
2.90
3.25
0.48
0.59
0.39
0.50
0.09
0.09
2.41
2.66
0.69
0.78
28.7
29.5
1.72
1.87
0.2
0.3
1.50
1.62
10.1
10.0
15.1
16.2
YESB
FY12-15 FY16-18
2.67
2.87
1.43
1.59
33.4
34.5
4.10
4.46
1.70
1.85
41.3
41.5
0.77
0.81
45.6
43.9
0.93
1.04
2.41
2.61
0.17
0.14
2.57
2.74
0.29
0.28
0.14
0.22
0.16
0.06
2.28
2.46
0.71
0.76
31.3
31.0
1.57
1.70
-
-
1.57
1.70
15.2
12.6
23.7
21.3
AXSB
FY12-15 FY16-18
3.25
3.20
1.67
1.59
34.0
33.1
4.93
4.78
2.19
2.05
44.5
42.9
0.74
0.73
33.7
35.4
1.45
1.33
2.74
2.73
0.37
0.30
3.10
3.03
0.56
0.44
0.49
0.47
0.07
-0.03
2.54
2.59
0.83
0.87
32.8
33.5
1.70
1.72
-
-
1.70
1.72
10.5
10.8
17.9
18.6
HDFCB
FY12-15 FY16-18
4.19
4.11
1.29
1.16
23.6
22.0
5.48
5.27
2.78
2.58
50.6
48.9
0.96
0.86
34.7
33.4
1.81
1.72
2.70
2.69
0.47
0.42
3.18
3.12
0.40
0.34
0.34
0.32
0.06
0.02
2.78
2.77
0.91
0.92
32.7
33.0
1.87
1.86
-
-
1.87
1.86
10.9
10.3
20.3
19.2
IIB
FY12-15 FY16-18
3.50
3.79
2.01
2.27
36.5
37.4
5.51
6.06
2.73
2.86
49.5
47.2
1.01
1.03
36.9
36.2
1.72
1.83
2.78
3.20
0.29
0.39
3.07
3.59
0.46
0.44
0.36
0.37
0.10
0.06
2.61
3.15
0.87
1.05
33.4
33.5
1.74
2.09
-
-
1.74
2.09
10.4
8.5
18.1
17.8
Source: MOSL, Company
23 July 2015
14

IndusInd Bank
Exhibit 46: Financials: Valuation metrics
63.7
Rating
ICICIBC*
HDFCB
AXSB
KMB*
YES
IIB
DCBB
FB
JKBK
SIB
Private Aggregate
SBIN (cons)*
PNB
BOI
BOB
UNBK
INBK
CRPBK
ANDB
IDBI
DBNK
Public Aggregate
HDFC*
LICHF
DEWH
IHFL
IDFC
RECL
REPCO
POWF
SHTF
MMFS
BAF
NBFC Aggregate
Buy
Buy
Buy
Neutral
Buy
Buy
Buy
Buy
Neutral
Buy
Buy
Buy
Neutral
Neutral
Buy
Buy
Neutral
Buy
Neutral
Neutral
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
CMP
Mcap
EPS (INR)
P/E (x)
BV (INR)
FY17
151
330
254
216
389
332
71
55
150
31
P/BV (x)
RoA (%)
RoE (%)
(INR) (USDb) FY16 FY17
313
28.5 22.9 27.4
1,107 43.6 49.1 59.2
584
21.7 37.2 43.2
721
20.6 23.6 29.2
824
5.4 60.6 77.2
949
8.7 41.8 52.1
134
0.6
6.9 9.4
70
1.9
5.7 7.1
106
0.8 13.1 18.0
23
0.5
2.2 3.1
132.2
270
31.6 28.0 34.9
140
4.1 23.2 32.3
173
1.8 33.8 47.4
153
1.1 21.9 29.2
163
1.6 37.4 47.6
135
1.0 25.7 33.1
51
0.1 16.5 21.9
71
0.7 20.6 25.5
64
1.6 14.4 19.7
44
0.4
9.7 13.6
43.9
1,349 33.4
37
44
497
3.9
34
43
482
1.1
53
68
717
4.2
63
75
153
3.8
13
14
289
4.5
62
74
699
0.7
25
29
260
5.4
54
62
881
3.1
68
84
265
2.3
17
20
5,139
4.3
214 267
66.7
FY16 FY17 FY16
10.9 8.8 131
22.6 18.7 285
15.7 13.5 218
30.5 24.7 188
13.6 10.7 328
22.7 18.2 287
19.5 14.3 62
12.3 9.9
50
8.1
5.9 136
10.6 7.6
28
18.9 15.7
9.2
7.4 230
6.0
4.3 219
5.1
3.6 421
7.0
5.2 184
4.4
3.4 319
5.3
4.1 284
3.1
2.3 141
3.4
2.8 170
4.4
3.3 157
4.5
3.2 130
7.8
5.9
24.3 18.6 169
14.6 11.6 182
9.1
7.1 358
11.5 9.6 208
12.2 10.7 109
4.7
3.9 300
28.2 23.9 152
4.8
4.2 285
13.0 10.5 462
15.8 13.3 113
24.0 19.3 1,342
16.1 13.6
FY16
1.91
3.88
2.68
3.84
2.51
3.31
2.17
1.41
0.78
0.83
2.91
258 1.12
247 0.64
459 0.41
206 0.83
358 0.51
310 0.47
158 0.36
188 0.42
173 0.41
141 0.34
0.79
194 5.37
217 2.73
410 1.35
239 3.45
120 1.14
357 0.96
180 4.60
330 0.91
528 1.91
127 2.35
1,566 3.83
2.90
FY17 FY16 FY17 FY16 FY17
1.60 1.72 1.78 16.3 17.2
3.35 1.89 1.86 18.4 19.2
2.30 1.75 1.69 18.2 18.2
3.33 1.51 1.60 13.9 14.5
2.12 1.66 1.71 19.9 21.5
2.86 2.03 2.09 18.0 16.8
1.88 1.07 1.15 11.8 14.1
1.27 1.07 1.12 12.0 13.6
0.71 0.79 0.97 10.0 12.6
0.76 0.47 0.59 8.2 10.5
2.54
0.99 0.72 0.80 12.2 13.9
0.56 0.67 0.82 11.0 13.9
0.38 0.35 0.43 8.3 10.8
0.74 0.66 0.78 12.5 15.0
0.46 0.58 0.65 12.4 14.1
0.44 0.58 0.65 9.2 11.1
0.32 0.54 0.64 12.3 14.7
0.38 0.62 0.66 12.2 14.2
0.37 0.58 0.69 9.5 11.9
0.31 0.36 0.44 7.7 10.0
0.72
4.25 2.52 2.55 23.5 23.6
2.29 1.50 1.56 20.3 21.4
1.18 1.28 1.32 15.7 17.6
3.00 3.91 3.79 32.3 33.5
1.02 2.20 2.19 11.5 12.0
0.81 3.13 3.16 22.2 22.5
3.88 2.16 2.12 17.5 19.2
0.79 3.06 3.12 20.3 20.2
1.67 2.27 2.56 15.3 16.9
2.09 2.60 2.67 15.7 16.6
3.28 3.01 2.91 19.1 18.3
2.53
*Multiples adj. for value of key ventures/Investments; For ICICI Bank and HDFC Ltd BV is adjusted for investments in subsidiaries
Source: MOSL, Company
23 July 2015
15

IndusInd Bank
Financials and valuations
Income Statement
Y/E March
Interest Income
Interest Expense
Net Interest Income
Change (%)
Non Interest Income
Net Income
Change (%)
Operating Expenses
Pre Provision Profits
Change (%)
Provisions (excl tax)
PBT
Tax
Tax Rate (%)
PAT
Change (%)
Equity Dividend (Incl tax)
Core PPP*
Change (%)
*Core PPP is (NII+Fee income-Opex)
Balance Sheet
Y/E March
Equity Share Capital
Reserves & Surplus
Net Worth
Of which Equity Networth
Deposits
Change (%)
of which CASA Dep
Change (%)
Borrowings
Other Liabilities & Prov.
Total Liabilities
Current Assets
Investments
Change (%)
Loans
Change (%)
Fixed Assets
Other Assets
Total Assets
Asset Quality
GNPA (INR m)
NNPA (INR m)
GNPA Ratio
NNPA Ratio
PCR (Excl Tech. write off)
E: MOSL Estimates
2011
35,894
22,129
13,765
55.3
7,137
20,902
45.2
10,085
10,817
53.7
2,019
8,798
3,025
34.4
5,773
64.8
932
9,764
67.6
2012
53,592
36,549
17,042
23.8
10,118
27,160
29.9
13,430
13,730
26.9
1,804
11,927
3,900
32.7
8,026
39.0
1,196
12,680
29.9
2013
69,832
47,504
22,329
31.0
13,630
35,958
32.4
17,564
18,395
34.0
2,631
15,764
5,152
32.7
10,612
32.2
1,838
17,325
36.6
2014
82,535
53,628
28,907
29.5
18,905
47,812
33.0
21,853
25,960
41.1
4,676
21,283
7,203
33.8
14,080
32.7
2,154
23,327
34.6
2015
96,920
62,717
34,203
18.3
24,039
58,241
21.8
27,259
30,982
19.3
3,891
27,092
9,155
33.8
17,937
27.4
2,552
28,232
21.0
2016E
114,203
70,129
44,073
28.9
31,475
75,549
29.7
33,976
41,573
34.2
5,037
36,536
12,239
33.5
24,296
35.5
3,397
37,073
31.3
2017E
134,950
80,135
54,815
24.4
38,754
93,570
23.9
41,694
51,876
24.8
6,397
45,479
15,235
33.5
30,243
24.5
4,228
46,626
25.8
(INR Million)
2018E
167,668
97,886
69,782
27.3
47,645
117,427
25.5
51,168
66,259
27.7
8,124
58,135
19,475
33.5
38,660
27.8
5,405
60,259
29.2
2011
4,660
35,842
40,502
40,502
343,654
28.7
93,309
47.6
55,254
16,948
456,358
40,246
135,508
30.3
261,656
27.3
5,965
12,983
456,358
2,659
728
1.0
0.3
72.6
2012
4,677
42,740
47,417
47,417
423,615
23.3
115,631
23.9
86,820
18,108
575,961
55,396
145,719
7.5
350,640
34.0
6,568
17,638
575,961
3,471
947
1.0
0.3
72.7
2013
5,229
71,074
76,303
76,303
541,167
27.7
158,674
37.2
94,596
21,000
733,065
68,487
196,542
34.9
443,206
26.4
7,561
17,269
733,065
4,578
1,368
1.0
0.3
70.1
2014
5,256
85,173
90,430
90,430
605,023
11.8
196,909
24.1
147,620
27,187
870,259
67,694
215,630
9.7
551,018
24.3
10,164
25,753
870,259
6,208
1,841
1.1
0.3
70.4
2015
5,295
101,151
106,445
106,445
741,344
22.5
252,996
28.5
206,181
37,190
1,091,159
107,791
248,594
15.3
687,882
24.8
11,576
35,316
1,091,159
5,629
2,105
0.8
0.3
62.6
2016E
5,807
164,755
170,562
170,562
867,372
17.0
335,187
32.5
217,349
44,684
1,299,967
84,652
285,883
15.0
873,610
27.0
11,677
44,145
1,299,967
5,050
1,524
0.6
0.2
69.8
(INR Million)
2017E
2018E
5,807
190,708
196,515
196,515
1,101,563
27.0
432,788
29.1
247,935
53,730
1,599,743
94,402
328,765
15.0
1,109,485
27.0
11,909
55,182
1,599,743
7,022
2,499
0.6
0.2
64.4
5,807
223,900
229,707
229,707
1,398,984
27.0
549,351
26.9
283,110
64,651
1,976,452
110,968
378,080
15.0
1,409,046
27.0
12,140
66,218
1,976,452
(%)
10,089
3,495
0.7
0.2
65.4
23 July 2015
16

IndusInd Bank
Financials and valuations
Ratios
Y/E March
Spreads Analysis (%)
Avg. Yield-Earning Assets
Avg. Yield on loans
Avg. Yield on Investments
Avg. Cost-Int. Bear. Liab.
Avg. Cost of Deposits
Interest Spread
Net Interest Margin
Profitability Ratios (%)
RoE
RoA
Int. Expense/Int.Income
Fee Income/Net Income
Non Int. Inc./Net Income
Efficiency Ratios (%)
Cost/Income*
Empl. Cost/Op. Exps.
Busi. per Empl. (INR m)
NP per Empl. (INR lac)
* ex treasury and RWO
Asset-Liability Profile (%)
Loans/Deposit Ratio
CASA Ratio
Investment/Deposit Ratio
G-Sec/Investment Ratio
CAR
Tier 1
Valuations
Book Value (INR)
Change (%)
Price-BV (x)
Adjusted BV (INR)
Price-ABV (x)
EPS (INR)
Change (%)
Price-Earnings (x)
Dividend Per Share (INR)
Dividend Yield (%)
E: MOSL Estimates
2.0
12.4
45.3
81.1
82.1
55.7
96.7
17.8
9.8
95.4
9.9
17.2
38.5
55.3
2.2
0.2
141.9
46.7
6.7
140.2
6.8
20.3
18.3
46.8
3.0
0.3
164.5
15.9
5.8
162.2
5.9
26.8
32.0
35.4
3.5
0.4
193.7
17.7
4.9
191.1
5.0
33.9
26.5
28.0
4.0
0.4
287.1
48.3
3.3
285.4
3.3
41.8
23.5
22.7
5.0
0.5
331.9
15.6
2.9
329.1
2.9
52.1
24.5
18.2
6.3
0.7
389.2
17.3
2.4
385.3
2.5
66.6
27.8
14.3
8.0
0.8
76.1
27.2
39.4
74.0
15.9
12.3
82.8
27.3
34.4
81.7
13.9
11.4
81.9
29.3
36.3
71.8
15.4
13.8
91.1
32.5
35.6
71.3
13.8
12.7
92.8
34.1
33.5
72.0
12.1
11.2
100.7
38.6
33.0
70.2
16.1
15.4
100.7
39.3
29.8
74.2
15.1
14.5
100.7
39.3
27.0
78.3
14.2
13.8
50.3
37.9
87.0
0.9
51.3
36.1
84.2
1.0
50.6
37.7
84.3
1.0
48.6
37.0
79.0
1.0
49.5
36.0
74.5
1.0
48.1
35.8
78.0
1.2
47.4
36.2
84.5
1.3
46.1
36.5
89.6
1.4
19.3
1.4
61.7
30.1
34.1
19.2
1.6
68.2
33.6
37.3
17.8
1.6
68.0
34.5
37.9
17.5
1.8
65.0
33.7
39.5
19.0
1.8
64.7
35.8
41.3
18.05
2.0
61.4
35.1
41.7
16.8
2.1
59.4
35.3
41.4
18.5
2.2
58.4
35.1
40.6
9.9
12.1
6.1
6.2
6.0
3.7
3.8
11.5
13.8
7.7
8.0
8.0
3.4
3.6
11.7
14.1
7.5
8.3
8.3
3.4
3.7
11.3
13.3
7.2
7.7
7.6
3.5
3.9
10.8
12.5
7.2
7.4
7.7
3.4
3.8
10.4
11.6
6.8
6.9
7.1
3.5
4.0
10.1
11.0
6.7
6.6
6.6
3.5
4.1
10.1
11.0
6.7
6.5
6.4
3.6
4.2
2011
2012
2013
2014
2015
2016E
2017E
2018E
23 July 2015
17

IndusInd Bank
Corporate profile
Company description
IndusInd Bank (IIB) is one of the ten new private
sector banks that were awarded license in 1994.
The bank has pan-India presence, with 811
branches and 1,543 ATMs as on June 30, 2015. It
also has one representative office each in Dubai
and London. Current management team, led by
Managing Director Mr Romesh Sobti, took charge
in February 2008 and has since been effecting
structural and operational changes to improve
productivity and efficiency, leading to strong
improvement in core operating performance.
Exhibit 47: Sensex rebased
1,100
950
800
650
500
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
IndusInd Bank
Sensex - Rebased
Exhibit 48:
Shareholding pattern (%)
Jun-15
Mar-15
Promoter
DII
FII
Others
15.0
9.4
50.8
24.8
15.1
9.0
51.9
24.0
Exhibit 49: Top holders
Jun-14
15.2
8.6
55.9
20.4
Holder Name
Bridge India Fund
Afrin Dia
GA Global Investments Ltd
Goldman Sachs Investments (Mauritius) I
Franklin Templeton Investment Fund
% Holding
4.2
2.8
2.4
1.8
1.7
Note: FII Includes depository receipts
Exhibit 50: Top
management
Name
Romesh Sobti
Paul Abraham
SV Zaregaonkar
Suhail Chander
SV Parthasarathy
Designation
MD & CEO
COO
CFO
Head - Corporate Banking
Head – Consumer Finance
Exhibit 51: Directors
Name
R Seshasayee
Romesh Sobti
Vijay Vaid*
Ashok Kini*
Name
Ranbir Singh Butola
Kanchan Chitale*
T Anantha Narayanan
Yashodhan M Kale
*Independent
Exhibit 52: Auditors
Name
BSR & Co
Type
Statutory
Exhibit 53: MOSL forecast v/s consensus
EPS
(INR)
FY16
FY17
FY18
MOSL
forecast
41.8
52.1
66.6
Consensus
forecast
41.3
52.2
66.1
Variation
(%)
1.2
-0.1
0.8
23 July 2015
18

IndusInd Bank
NOTES
23 July 2015
19

This document has been prepared by Motilal Oswal Securities Limited (hereinafter referred to as Most) to provide information about the company(ies) and/sector(s), if any, covered in the report and may be distributed
by it and/or its affiliated company(ies). This report is for personal information of the selected recipient/s and does not construe to be any investment, legal or taxation advice to you. This research report does not
IndusInd Bank
constitute an offer, invitation or inducement to invest in securities or other investments and Motilal Oswal Securities Limited (hereinafter referred as MOSt) is not soliciting any action based upon it. This report is not for
public distribution and has been furnished to you solely for your general information and should not be reproduced or redistributed to any other person in any form. This report does not constitute a personal
recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Before acting on any advice or recommendation in this material, investors should consider
whether it is suitable for their particular circumstances and, if necessary, seek professional advice. The price and value of the investments referred to in this material and the income from them may go down as well as
up, and investors may realize losses on any investments. Past performance is not a guide for future performance, future returns are not guaranteed and a loss of original capital may occur.
MOSt and its affiliates are a full-service, integrated investment banking, investment management, brokerage and financing group. We and our affiliates have investment banking and other business relationships with a
some companies covered by our Research Department. Our research professionals may provide input into our investment banking and other business selection processes. Investors should assume that MOSt and/or
its affiliates are seeking or will seek investment banking or other business from the company or companies that are the subject of this material and that the research professionals who were involved in preparing this
material may educate investors on investments in such business. The research professionals responsible for the preparation of this document may interact with trading desk personnel, sales personnel and other
parties for the purpose of gathering, applying and interpreting information. Our research professionals are paid on the profitability of MOSt which may include earnings from investment banking and other business.
MOSt generally prohibits its analysts, persons reporting to analysts, and members of their households from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover.
Additionally, MOSt generally prohibits its analysts and persons reporting to analysts from serving as an officer, director, or advisory board member of any companies that the analysts cover. Our salespeople, traders,
and other professionals or affiliates may provide oral or written market commentary or trading strategies to our clients that reflect opinions that are contrary to the opinions expressed herein, and our proprietary
trading and investing businesses may make investment decisions that are inconsistent with the recommendations expressed herein. In reviewing these materials, you should be aware that any or all of the foregoing
among other things, may give rise to real or potential conflicts of interest. MOSt and its affiliated company(ies), their directors and employees and their relatives may; (a) from time to time, have a long or short position
in, act as principal in, and buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation
or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other potential conflict of interests with
respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the specific recommendations made by the analyst(s), as the recommendations
made by the analyst(s) are completely independent of the views of the affiliates of MOSt even though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
Reports based on technical and derivative analysis center on studying charts company's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as
such, may not match with a report on a company's fundamental analysis. In addition MOST has different business segments / Divisions with independent research separated by Chinese walls catering to different set
of customers having various objectives, risk profiles, investment horizon, etc, and therefore may at times have different contrary views on stocks sectors and markets.
Unauthorized disclosure, use, dissemination or copying (either whole or partial) of this information, is prohibited. The person accessing this information specifically agrees to exempt MOSt or any of its affiliates or
employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOSt or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOSt or any of
its affiliates or employees free and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this information due to any errors and delays. The information contained herein is
based on publicly available data or other sources believed to be reliable. Any statements contained in this report attributed to a third party represent MOSt’s interpretation of the data, information and/or opinions
provided by that third party either publicly or through a subscription service, and such use and interpretation have not been reviewed by the third party. This Report is not intended to be a complete statement or
summary of the securities, markets or developments referred to in the document. While we would endeavor to update the information herein on reasonable basis, MOSt and/or its affiliates are under no obligation to
update the information. Also there may be regulatory, compliance, or other reasons that may prevent MOSt and/or its affiliates from doing so. MOSt or any of its affiliates or employees shall not be in any way
responsible and liable for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. MOSt or any of its affiliates or employees do not provide, at any time,
any express or implied warranty of any kind, regarding any matter pertaining to this report, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement.
The recipients of this report should rely on their own investigations.
This report is intended for distribution to institutional investors. Recipients who are not institutional investors should seek advice of their independent financial advisor prior to taking any investment decision based on
this report or for any necessary explanation of its contents.
Most and it’s associates may have managed or co-managed public offering of securities, may have received compensation for investment banking or merchant banking or brokerage services, may have received any
compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months.
Most and it’s associates have not received any compensation or other benefits from the subject company or third party in connection with the research report.
Subject Company may have been a client of Most or its associates during twelve months preceding the date of distribution of the research report
MOSt and/or its affiliates and/or employees may have interests/positions, financial or otherwise of over 1 % at the end of the month immediately preceding the date of publication of the research in the securities
mentioned in this report. To enhance transparency, MOSt has incorporated a Disclosure of Interest Statement in this document. This should, however, not be treated as endorsement of the views expressed in the
report.
Motilal Oswal Securities Limited is registered as a Research Analyst under SEBI (Research Analyst) Regulations, 2014. SEBI Reg. No. INH000000412
There are no material disciplinary action that been taken by any regulatory authority impacting equity research analysis activities
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or will be
directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report. The research analysts, strategists, or research associates principally responsible for preparation
of MOSt research receive compensation based upon various factors, including quality of research, investor client feedback, stock picking, competitive factors and firm revenues
Disclosure of Interest Statement
§
Analyst ownership of the stock
§
Served as an officer, director or employee
INDUSIND BANK
No
No
Disclosures
A graph of daily closing prices of securities is available at www.nseindia.com and http://economictimes.indiatimes.com/markets/stocks/stock-quotes
Regional Disclosures (outside India)
For U.S.
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use would be contrary to law,
regulation or which would subject MOSt & its group companies to registration or licensing requirements within such jurisdictions.
Motilal Oswal Securities Limited (MOSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the United States. In
addition MOSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the
United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by MOSL, including the products and services described herein are not available to or
intended for U.S. persons.
This report is intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major institutional
investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which this document relates is only available to major
institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the
"Exchange Act") and interpretations thereof by the U.S. Securities and Exchange Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOSL has entered into a chaperoning
agreement with a U.S. registered broker-dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this
chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered broker-dealer, MOSIPL,
and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading securities held by a research analyst account.
Motilal Oswal Capital Markets Singapore Pte Limited is acting as an exempt financial advisor under section 23(1)(f) of the Financial Advisers Act(FAA) read with regulation 17(1)(d) of the Financial Advisors
Regulations and is a subsidiary of Motilal Oswal Securities Limited in India. This research is distributed in Singapore by Motilal Oswal Capital Markets Singapore Pte Limited and it is only directed in Singapore to
accredited investors, as defined in the Financial Advisers Regulations and the Securities and Futures Act (Chapter 289), as amended from time to time.
In respect of any matter arising from or in connection with the research you could contact the following representatives of Motilal Oswal Capital Markets Singapore Pte Limited:
Kadambari Balachandran
Email : kadambari.balachandran@motilaloswal.com
Contact : (+65) 68189233 / 65249115
Office Address : 21 (Suite 31),16 Collyer Quay,Singapore 04931
For Singapore
Motilal Oswal Securities Ltd
23 July 2015
Motilal Oswal Tower, Level 9, Sayani Road, Prabhadevi, Mumbai 400 025
Phone: +91 22 3982 5500 E-mail: reports@motilaloswal.com
20