Banking Financial

Services and
Management

Submitted by:-

Sruthi Ramachandran

B2356

MBA B
HISTORY OF INDUSIND BANK
IndusInd Bank Ltd., incorporated in the year 1994, is a banking company (having a market cap
of Rs 85738.01 Crore).

IndusInd Bank Ltd. key Products/Revenue Segments include Interest & Discount on Advances
& Bills which contributed Rs 13699.91 Crore to Sales Value (79.27 % of Total Sales), Income
From Investment which contributed Rs 3074.38 Crore to Sales Value (17.79 % of Total Sales),
Interest On Balances with RBI and Other Inter-Bank Funds which contributed Rs 321.48 Crore
to Sales Value (1.86 % of Total Sales) and Interest which contributed Rs 184.99 Crore to Sales
Value (1.07 % of Total Sales)for the year ending 31-Mar-2018.

The Bank has reported a Gross Non Performing Assets (Gross NPAs) of Rs .00 Crore (.00 %
of total assets) and Net Non Performing Assets (Net NPAs) of Rs .00 Crore (.00% of total
assets).

For the quarter ended 30-06-2019, the company has reported a Consolidated Interest Income of
Rs 5753.84 Crore, up 17.55 % from last quarter Interest Income of Rs 4894.74 Crore and up
38.76 % from last year same quarter Interest Income of Rs 4146.62 Crore. The bank has
reported net profit after tax of Rs 1432.50 Crore in latest quarter.

The bank’s top management includes Dr.T T Ram Mohan, Mr.Arun Tiwari, Mr.R Seshasayee,
Mr.Rajiv Agarwal, Mr.Romesh Sobti, Mr.Shanker Annaswamy, Mr.Siraj Chaudhry, Mrs.Akila
Krishnakumar, Mrs.Kanchan Chitale. It has Haribhakti & Co. LLP as its auditoRs As on 30-
06-2019, the company has a total of 603,138,942 shares outstanding.

SHAREHOLDING PATTERN OF INDUSIND BANK

 Shareholding Pattern - IndusInd Bank Ltd.
Holder's Name No of Shares % Share Holding
ForeignInstitutions 277160997 45.95%
ForeignPromoter 90375939 14.98%
Others 71799175 11.9%
GDR 64681464 10.72%
NBanksMutualFunds 49652322 8.23%
GeneralPublic 40701963 6.75%
FinancialInstitutions 8767032 1.45%
CentralGovt 50 0%

It is always presumed that banks with low leverage are in a better as they have less debt to pay
off. IndusInd Bank’s leverage ratio of 9.46 x is a very safe ratio. This means that the assets are
9.46 times equity, and the bank has maintained a judicious control over its own fund relative to
borrowed funds. This proves that it is in a strong position to repay its debts in times of crisis.

PRODUCTS OF INDUSIND BANK

I. IndusInd Credit Cards

IndusInd Credit Cards are tailor made credit cards designed to meet the needs of all the
individuals, enriched with multiple perks and rewards These are known for providing best-in-
class travel and shopping privilege accompanied with complimentary access to airport lounges
and golf courses. IndusInd Bank Platinum Aura Credit Card, IndusInd Bank Chelsea FC Credit
Card, IndusInd Bank Signature Credit Card and IndusInd Bank Platinum Credit Card are some
of the popular cards offered by IndusInd.
 II. IndusInd Debit Cards
IndusInd Debit Cards serve as robust shopping solutions guaranteeing safe and secure
transactions. Reward points are earned whenever activated and can also be redeemed later for
the various purchases. It gives its cardholders various deals and discounts on shopping over 4
lakh outlets across India

III. IndusInd Savings Account

IndusInd bank also offers a range of savings bank accounts that all citizens of India can apply
for. The various types of savings account schemes are:
 Indus Exclusive Savings Account
 Indus Select Saving Account
 Indus Maxima Savings Account
 Indus Privilege Savings Account
 Indus Privilege Active
 Indus Diva Savings Account
 Indus Senior Savings Account
 Indus 3 in 1
 Indus Young Silver
 Indus Classic Savings Account
 Indus Easy Savings Account
 Indus Small Account

IV. IndusInd Bank Fixed Deposits

Fixed deposit schemes are eligible to earn a rate of interest depending on the period for which
the deposits were maintained with the bank. The tenure specific rates are:

 Short-term Fixed Deposit Rates : The short-term fixed deposit rates are provided for deposits
of less than 1 year tenure and it ranges from 3.5% to 6.70% p.a.
 Medium and long-term fixed deposit rates : The interest rate on medium and long term
deposit ranges from 7.00% p.a. to 6.50% p.a.
 Fixed Deposit rates for senior citizens : For senior citizens, the fixed deposit rate of interest
increases by 0.50% than the regular FD rates provided to non-senior applicants.

V. Loans offered by IndusInd

Different loan types offered by IndusInd Bank are :-
1) Personal Loan
IndusInd personal loan is offered at competitive interest rates. The process of obtaining loan is
simple and easy. The documentation process is also hassle-free and effortless. No collateral or
any other security is required to avail the Personal Loan from IndusInd. Bank also gives the
option to its customers to choose the tenure of loan. IndusInd offers personal loan at an intrest
rate of 10.75% onwards.
2) Car Loan
Now you don’t have to think much before getting your dream car with IndusInd car loans. All
salaried and self-employed individuals with minimum salary of Rs. 2,50,000 per annum are
eligible to apply for the IndusInd Car Loan. IndusInd requires minimal documents and also
assigns an agent to provide you door- step services.
3) Loan Against Property
Whether you need funds for your business expansion or for medical emergency, with IndusInd
loan against property you can meet all your requirements. There are no hidden charges; and
customers are well informed about the charges, fees and rates at the time of application.
Customers can avail loan against residential property as well as commercial property and loan
can also be availed against rentals from commercial properties as well.
4) Gold Loan
IndusInd Gold Loans will provide you financial support for any funding requirements you
have. Gold loan is availed by pledging your gold to the bank for the amount of loan you need.
Gold is sealed in the presence of the owner of the gold to provide a sense of security.The status
of the application is also commuted as soon as possible to save the time of the customers and it
also makes the process fast and efficient.
5) Home Loan
IndusInd provides home loan at attractive interest rates to help you buy your dream house.
Loans are also granted for the renovation of the existing house. All salaried and self-employed
individuals are eligible for obtaining the loan. The tenure of home loan is up to 30 years.
IndusInd bank also provides balance transfer facility for home loans.

KEY FINANCIAL RATIOS OF INDUSIND BANK AND OTHER BANKS

KEY FINANCIAL RATIOS (2019)

INDUSI KOTAK
HDFC AXIS ICICI YES
ND MAHINDRA

Per Share
Ratios
Basic EPS
54.90 78.65 25.52 18.20 5.23 7.45
(Rs.)
Diluted Eps
54.46 77.87 25.48 18.09 5.17 7.38
(Rs.)
Cash EPS
54.77 81.59 27.41 20.95 6.42 7.43
(Rs.)
Book Value
[Excl. Reval
442.78 547.89 222.14 259.27 163.36 116.21
Reserve]/Sh
are (Rs.)
Book Value
442.78 547.89 222.14 259.27 168.08 116.21
[Incl. Reval
Reserve]/Sh
are (Rs.)
Dividend/Sh
7.50 15.00 0.80 1.00 1.00 2.00
are (Rs.)
Operating
Revenue / 369.36 363.43 125.44 213.82 98.34 127.97
Share (Rs.)
Net
Profit/Share 54.77 77.40 25.49 18.19 5.22 7.43
(Rs.)
Per
Employee
Ratios
Interest
Income/
0.00 10,092,906.51 5,734,487.96 8,877,263.59 7,307,399.77 0.00
Employee
(Rs.)
Net Profit/
Employee 0.00 2,149,495.24 1,165,265.18 755,022.33 387,642.38 0.00
(Rs.)
Business/
177,699,813.9 103,363,871.5 168,432,242.9 142,868,072.0
Employee 0.00 0.00
0 1 8 8
(Rs.)
Per Branch
Ratios
Interest
193,948,756.6 159,621,384.0 135,767,335.0 130,080,411.5
Income/ 0.00 0.00
1 0 6 7
Branch (Rs.)
Net Profit/
Branches 0.00 41,305,438.57 32,435,544.67 11,547,180.99 6,900,495.69 0.00
(Rs.)
Business/
3,414,740,633 2,877,167,818 2,575,973,612 2,543,221,694
Branches 0.00 0.00
.16 .00 .35 .30
(Rs.)
Key
Performanc
e Ratios
Net Profit
14.82 21.29 20.32 8.50 5.30 5.80
Margin (%)
Operating
Profit -10.53 3.48 1.09 -15.37 -17.58 -9.68
Margin (%)
Return on
1.18 1.69 1.55 0.58 0.34 0.45
Assets (%)
Return on
Equity /
12.37 14.12 11.47 7.01 3.19 6.39
Networth
(%)
Net Interest 3.18 3.87 3.60 2.71 2.80 2.57
 Margin (X)
Cost to
40.10 38.41 38.52 44.28 48.98 37.05
Income (%)
Interest
Income/Tota 8.01 7.95 7.66 6.86 6.57 7.77
l Assets (%)
Non-Interest
Income/Tota 2.03 1.41 1.47 1.63 1.50 1.20
l Assets (%)
Operating
Profit/Total -0.84 0.27 0.08 -1.05 -1.15 -0.75
Assets (%)
Operating
Expenses/To
2.30 2.09 2.40 1.97 1.87 1.64
tal Assets
(%)
Interest
Expenses/To
4.82 4.07 4.06 4.15 3.77 5.20
tal Assets
(%)
Valuation
Ratios
Enterprise
339,633.2 388,912.
Value (Rs. 1,624,316.38 502,713.05 865,733.45 1,037,532.15
4 00
Cr)
EV Per Net
15.26 16.41 21.00 15.74 16.36 13.13
Sales (X)
Price To
Book Value 4.02 4.23 6.01 2.99 2.44 2.37
(X)
Price To
4.82 6.37 10.65 3.63 4.06 2.15
Sales (X)
Retention
100.00 80.77 96.70 100.00 71.30 100.00
Ratios (%)
Earnings
0.03 0.03 0.02 0.02 0.01 0.03
Yield (X)

KEY FINANCIAL RATIOS (2018)

INDUS KOTAK
HDFC AXIS ICICI YES
IND MAHINDRA

Face Value 10.00 2.00 5.00 2.00 2.00 2.00

Dividend Per
7.50 13.00 0.70 -- 1.50 2.70
Share
Operating Profit
35.28 70.56 17.89 20.24 12.61 11.96
Per Share (Rs)
 Net Operating
Profit Per Share 287.91 309.20 103.63 178.37 85.51 88.01
(Rs)
Free Reserves
-- -- -- -- -- --
Per Share (Rs)
Bonus in Equity
-- -- 67.31 -- 9.06 --
Capital
Interest Spread 6.77 7.78 6.94 5.90 6.43 5.41
Adjusted Cash
17.32 19.26 18.43 1.48 10.44 17.47
Margin(%)
Net Profit
20.86 21.79 20.68 0.60 12.33 20.84
Margin
Return on Long
65.05 62.88 43.84 43.00 38.54 72.69
Term Fund(%)
Return on Net
15.36 16.45 10.89 0.43 6.63 16.40
Worth(%)
Adjusted Return
on Net 15.36 16.45 10.89 0.43 6.63 16.40
Worth(%)
Return on Assets
Excluding 390.94 409.60 196.69 247.20 158.91 111.85
Revaluations
Return on Assets
Including 396.97 409.60 196.69 247.20 163.59 111.85
Revaluations
Interest Income /
8.65 8.32 8.24 7.08 6.68 7.68
Total Funds
Net Interest
Income / Total 3.75 4.16 3.98 2.88 2.80 2.93
Funds
Non Interest
Income / Total 2.38 1.58 1.69 1.70 2.12 1.98
Funds
Interest
Expended / 4.90 4.17 4.26 4.20 3.88 4.75
Total Funds
Operating
Expense / Total 2.69 2.26 2.55 2.08 1.81 1.89
Funds
Profit Before
Provisions / 3.33 3.38 2.99 2.41 3.01 2.94
Total Funds
Net Profit / Total 1.81 1.81 1.70 0.04 0.82 1.60
 Funds
Loans Turnover 0.13 0.13 0.13 0.11 0.11 0.12
Total Income /
Capital 11.03 9.90 9.93 8.78 8.80 9.66
Employed(%)
Interest
Expended /
4.90 4.17 4.26 4.20 3.88 4.75
Capital
Employed(%)
Total Assets
0.09 0.08 0.08 0.07 0.07 0.08
Turnover Ratios
Asset Turnover
0.09 0.09 0.09 0.07 0.07 0.08
Ratio
Interest
Expended / 56.61 50.03 51.73 59.33 58.11 61.83
Interest Earned
Other Income /
21.56 15.94 17.03 19.33 24.07 20.49
Total Income
Operating
Expense / Total 24.42 22.82 25.73 23.65 20.62 19.54
Income
Selling
Distribution
0.18 0.20 0.55 0.33 0.73 0.47
Cost
Composition
Capital
15.03 14.82 18.22 16.57 18.42 18.40
Adequacy Ratio
Advances /
85.53 80.80 85.65 78.44 74.18 89.05
Loans Funds(%)
Credit Deposit
92.75 84.68 87.35 93.63 92.92 97.73
Ratio
Investment
31.19 31.88 31.32 32.57 34.68 34.47
Deposit Ratio
Cash Deposit
Ratio
Total Debt to
8.09 8.58 5.81 9.48 7.28 10.70
Owners Fund
Financial
Charges 1.70 1.84 1.73 1.60 1.80 1.64
Coverage Ratio
Financial
Charges 1.39 1.46 1.43 1.03 1.24 1.36
Coverage Ratio
 Post Tax
Current Ratio 0.08 0.04 0.05 0.10 0.12 0.07
Quick Ratio 21.38 17.48 19.49 20.02 20.44 20.80
Dividend Payout
11.98 -- 2.79 509.74 21.50 12.99
Ratio Net Profit
Dividend Payout
Ratio Cash 11.32 -- 2.60 166.54 19.28 12.31
Profit
Earning
88.02 100.00 97.21 -409.74 78.50 87.01
Retention Ratio
Cash Earning
88.68 100.00 97.40 -66.54 80.72 87.69
Retention Ratio
AdjustedCash
39.72 42.88 43.91 537.61 74.22 45.05
Flow Times
Earnings Per
60.08 67.38 21.43 1.07 10.54 18.34
Share
Book Value 390.94 409.60 196.69 247.20 158.91 111.85

KEY FINANCIAL RATIOS (2017)

INDUS KOTAK
HDFC AXIS ICICI YES
IND MAHINDRA

Face Value 10.00 2.00 5.00 2.00 2.00 10.00

Dividend Per Share 6.00 11.00 0.60 5.00 2.50 12.00
Operating Profit
24.58 55.68 15.20 26.73 13.29 40.57
Per Share (Rs)
Net Operating
Profit Per Share 240.84 270.46 96.14 185.98 92.98 359.81
(Rs)
Free Reserves Per
-- -- -- -- -- --
Share (Rs)
Bonus in Equity
-- -- 69.68 -- -- --
Capital
Interest Spread 7.14 7.46 7.64 6.84 6.58 6.56
Adjusted Cash
16.46 18.85 17.48 7.44 14.33 17.01
Margin(%)
Net Profit Margin 19.90 20.99 19.27 8.26 18.09 20.27
Return on Long
62.71 65.17 53.30 57.23 45.09 71.05
Term Fund(%)
Return on Net
14.15 16.26 12.35 6.59 10.11 15.09
Worth(%)
Adjusted Return 14.15 16.26 12.35 6.59 10.11 15.09
 on Net Worth(%)
Return on Assets
Excluding 338.65 349.12 150.01 232.83 166.37 483.13
Revaluations
Return on Assets
Including 344.91 349.12 150.01 232.83 171.59 483.13
Revaluations
Interest Income /
9.06 8.81 8.70 7.91 7.29 8.64
Total Funds
Net Interest
Income / Total 3.81 4.21 3.99 3.21 2.92 3.05
Funds
Non Interest
Income / Total 2.62 1.56 1.71 2.07 2.62 2.19
Funds
Interest Expended /
5.25 4.60 4.71 4.69 4.36 5.59
Total Funds
Operating Expense
2.89 2.40 2.62 2.07 1.88 2.07
/ Total Funds
Profit Before
Provisions / Total 3.43 3.27 2.94 3.12 3.56 3.07
Funds
Net Profit / Total
1.80 1.85 1.68 0.65 1.32 1.75
Funds
Loans Turnover 0.14 0.14 0.14 0.13 0.12 0.14
Total Income /
Capital 11.69 10.38 10.41 9.98 9.91 10.82
Employed(%)
Interest Expended /
Capital 5.25 4.60 4.71 4.69 4.36 5.59
Employed(%)
Total Assets
0.09 0.09 0.09 0.08 0.07 0.09
Turnover Ratios
Asset Turnover
0.10 0.09 0.09 0.08 0.08 0.09
Ratio
Interest Expended /
57.92 52.18 54.09 59.38 59.86 64.70
Interest Earned
Other Income /
22.45 15.07 16.42 20.79 26.48 20.20
Total Income
Operating Expense
24.72 23.12 25.16 20.79 19.00 19.17
/ Total Income
Selling Distribution 0.34 0.21 0.55 0.29 0.53 0.61
 Cost Composition
Capital Adequacy
15.31 14.55 16.77 14.95 17.39 17.00
Ratio
Advances / Loans
85.61 84.21 80.49 76.40 75.25 81.43
Funds(%)
Credit Deposit
91.77 85.64 86.04 92.17 98.69 90.53
Ratio
Investment Deposit
30.93 31.79 32.54 32.47 35.32 38.83
Ratio
Cash Deposit Ratio
Total Debt to
7.36 8.02 6.46 9.31 6.58 8.23
Owners Fund
Financial Charges
1.68 1.73 1.66 1.68 1.84 1.57
Coverage Ratio
Financial Charges
Coverage Ratio 1.37 1.43 1.39 1.16 1.33 1.33
Post Tax
Current Ratio 0.07 0.06 0.06 0.10 0.12 0.08
Quick Ratio 14.45 11.19 18.09 17.10 16.31 13.17
Dividend Payout
0.01 -- -- 38.25 -- --
Ratio Net Profit
Dividend Payout
0.01 -- -- 33.60 -- --
Ratio Cash Profit
Earning Retention
99.99 100.00 100.00 61.75 100.00 100.00
Ratio
Cash Earning
99.99 100.00 100.00 66.40 100.00 100.00
Retention Ratio
AdjustedCash
41.38 41.84 42.52 98.94 46.41 40.81
Flow Times
Earnings Per Share 47.95 56.78 18.53 15.36 16.83 72.95
Book Value 338.65 349.12 150.01 232.83 166.37 483.13

KEY FINANCIAL RATIOS (2016)

INDUS KOTAK
HDFC AXIS ICICI YES
IND MAHINDRA

Face Value 10.00 2.00 5.00 2.00 2.00 10.00

Dividend Per Share 4.50 9.50 0.50 5.00 5.00 10.00
Operating Profit
16.82 44.77 9.36 30.12 15.89 40.45
Per Share (Rs)
Net Operating
194.64 238.20 89.32 172.01 90.70 321.82
Profit Per Share
 (Rs)
Free Reserves Per
-- -- -- -- -- --
Share (Rs)
Bonus in Equity
-- -- 69.93 -- -- --
Capital
Interest Spread 6.96 7.52 7.86 6.81 6.83 7.53
Adjusted Cash
16.42 18.31 12.51 17.21 15.31 16.31
Margin(%)
Net Profit Margin 19.74 20.41 12.75 20.06 18.44 18.76
Return on Long
60.88 70.54 52.62 68.74 50.29 92.35
Term Fund(%)
Return on Net
13.21 16.91 8.72 15.46 11.19 18.41
Worth(%)
Adjusted Return
13.21 16.91 8.72 15.46 11.19 18.41
on Net Worth(%)
Return on Assets
Excluding 290.79 287.47 130.61 223.12 149.47 327.84
Revaluations
Return on Assets
Including 297.19 287.47 130.61 223.12 154.31 327.84
Revaluations
Interest Income /
9.32 9.27 10.99 8.30 7.73 8.98
Total Funds
Net Interest
Income / Total 3.64 4.25 4.63 3.41 3.11 3.03
Funds
Non Interest
Income / Total 2.65 1.65 1.75 1.90 2.25 1.80
Funds
Interest Expended /
5.69 5.02 6.36 4.89 4.62 5.95
Total Funds
Operating Expense
2.83 2.50 3.48 1.96 1.76 1.90
/ Total Funds
Profit Before
Provisions / Total 3.33 3.29 2.71 3.26 3.50 2.85
Funds
Net Profit / Total
1.84 1.89 1.40 1.67 1.43 1.68
Funds
Loans Turnover 0.15 0.15 0.18 0.13 0.13 0.16
Total Income /
Capital 11.98 10.92 12.74 10.20 9.98 10.78
Employed(%)
Interest Expended /
Capital 5.69 5.02 6.36 4.89 4.62 5.95
Employed(%)
Total Assets
0.09 0.09 0.11 0.08 0.08 0.09
Turnover Ratios
Asset Turnover
0.10 0.10 0.12 0.09 0.08 0.09
Ratio
Interest Expended /
61.00 54.18 57.88 58.93 59.76 66.26
Interest Earned
Other Income /
22.16 15.15 13.75 18.61 22.51 16.69
Total Income
Operating Expense
23.63 22.93 27.29 19.18 17.61 17.64
/ Total Income
Selling Distribution
0.18 0.41 0.60 0.21 0.40 0.61
Cost Composition
Capital Adequacy
15.50 15.53 16.34 15.29 16.64 16.50
Ratio
Advances / Loans
84.25 84.82 96.23 78.84 77.02 75.32
Funds(%)
Credit Deposit
94.06 83.24 86.57 91.10 105.08 85.64
Ratio
Investment Deposit
33.55 33.13 38.26 37.38 44.32 47.04
Ratio
Cash Deposit Ratio
Total Debt to
6.66 8.25 6.66 8.60 6.86 10.40
Owners Fund
Financial Charges
1.61 1.68 1.46 1.69 1.78 1.49
Coverage Ratio
Financial Charges
Coverage Ratio 1.35 1.40 1.25 1.36 1.33 1.30
Post Tax
Current Ratio 0.09 0.07 0.07 0.07 0.13 0.08
Quick Ratio 14.16 14.51 15.61 25.74 14.97 14.02
Dividend Payout
12.79 19.53 4.39 14.48 29.89 16.55
Ratio Net Profit
Dividend Payout
11.97 18.47 3.86 13.74 27.89 15.86
Ratio Cash Profit
Earning Retention
87.21 80.47 95.61 85.52 70.11 83.45
Ratio
Cash Earning
88.03 81.53 96.14 86.26 72.11 84.14
Retention Ratio
AdjustedCash 38.07 42.03 58.32 41.30 40.43 42.16
 Flow Times
Earnings Per Share 38.43 48.64 11.39 34.51 16.73 60.39
Book Value 290.79 287.47 130.61 223.12 149.47 327.84

KEY FINANCIAL RATIOS (2015)

INDUS KOTAK
HDFC AXIS ICICI YES
IND MAHINDRA

Face Value 10.00 2.00 5.00 2.00 2.00 10.00

Dividend Per Share 4.00 8.00 0.90 4.60 5.00 9.00
Operating Profit
15.51 36.16 15.04 22.89 14.15 30.84
Per Share (Rs)
Net Operating
Profit Per Share 183.06 193.38 125.85 149.67 84.68 277.02
(Rs)
Free Reserves Per
-- -- -- -- -- --
Share (Rs)
Bonus in Equity
-- -- 47.90 -- -- --
Capital
Interest Spread 7.47 8.01 8.38 7.34 7.04 8.43
Adjusted Cash
15.87 18.91 17.52 17.70 19.31 15.34
Margin(%)
Net Profit Margin 18.50 21.07 19.19 20.73 22.76 17.32
Return on Long
87.70 66.77 58.89 72.32 57.03 94.12
Term Fund(%)
Return on Net
17.51 16.47 13.19 16.46 13.89 17.16
Worth(%)
Adjusted Return
17.51 16.47 13.19 16.46 13.89 17.16
on Net Worth(%)
Return on Assets
Excluding 193.40 247.39 183.09 188.47 138.72 279.60
Revaluations
Return on Assets
Including 200.78 247.39 183.09 188.47 138.72 279.60
Revaluations
Interest Income /
9.92 8.96 10.04 8.40 7.91 9.44
Total Funds
Net Interest
Income / Total 3.50 4.14 4.36 3.37 3.07 2.85
Funds
 Non Interest
Income / Total 2.46 1.66 2.10 1.98 1.96 1.67
Funds
Interest Expended /
6.42 4.82 5.68 5.03 4.84 6.59
Total Funds
Operating Expense
2.66 2.46 3.16 2.08 1.75 1.79
/ Total Funds
Profit Before
Provisions / Total 3.17 3.22 3.10 3.17 3.18 2.65
Funds
Net Profit / Total
1.84 1.89 1.93 1.74 1.80 1.64
Funds
Loans Turnover 0.16 0.15 0.16 0.14 0.14 0.18
Total Income /
Capital 12.38 10.62 12.14 10.38 9.88 11.11
Employed(%)
Interest Expended /
Capital 6.42 4.82 5.68 5.03 4.84 6.59
Employed(%)
Total Assets
0.10 0.09 0.10 0.08 0.08 0.09
Turnover Ratios
Asset Turnover
0.10 0.10 0.10 0.09 0.08 0.10
Ratio
Interest Expended /
64.71 53.79 56.55 59.91 61.22 69.86
Interest Earned
Other Income /
19.87 15.66 17.27 19.08 19.87 15.03
Total Income
Operating Expense
21.49 23.20 26.06 20.07 17.69 16.15
/ Total Income
Selling Distribution
-- -- -- -- -- --
Cost Composition
Capital Adequacy
12.09 16.79 17.17 15.09 17.02 15.60
Ratio
Advances / Loans
80.92 80.97 83.23 76.65 75.94 70.97
Funds(%)
Credit Deposit
92.02 81.71 88.99 84.71 104.72 79.33
Ratio
Investment Deposit
34.48 35.13 41.74 40.75 52.43 52.95
Ratio
Cash Deposit Ratio
Total Debt to
9.25 8.00 6.15 9.00 6.64 10.05
Owners Fund
Financial Charges
1.51 1.69 1.58 1.65 1.68 1.41
Coverage Ratio
Financial Charges
Coverage Ratio 1.31 1.42 1.37 1.37 1.39 1.26
Post Tax
Current Ratio 0.05 0.04 0.02 0.03 0.06 0.06
Quick Ratio 20.53 12.69 14.83 20.64 13.81 12.25
Dividend Payout
11.81 19.62 4.39 14.78 25.93 18.74
Ratio Net Profit
Dividend Payout
11.03 18.44 3.98 14.00 24.49 17.98
Ratio Cash Profit
Earning Retention
88.19 80.38 95.61 85.22 74.07 81.26
Ratio
Cash Earning
88.97 81.56 96.02 86.00 75.51 82.02
Retention Ratio
AdjustedCash
38.60 41.46 36.36 41.53 30.55 43.62
Flow Times
Earnings Per Share 33.88 40.76 24.16 31.04 19.28 48.01
Book Value 193.40 247.39 183.09 188.47 138.72 279.60

KEY FINANCIAL RATIOS (2014)

INDUS KOTAK
HDFC AXIS ICICI YES
IND MAHINDRA

Face Value 10.00 2.00 5.00 10.00 10.00 10.00

Dividend Per Share 3.50 6.85 0.80 20.00 23.00 8.00
Operating Profit Per
15.29 29.65 17.43 93.96 58.45 28.55
Share (Rs)
Net Operating Profit
157.08 171.47 113.81 652.16 382.97 276.77
Per Share (Rs)
Free Reserves Per
-- -- -- -- -- --
Share (Rs)
Bonus in Equity
-- -- 48.02 -- -- --
Capital
Interest Spread 7.85 8.01 9.52 7.67 7.35 10.34
Adjusted Cash
14.84 18.65 16.40 17.29 19.02 14.36
Margin(%)
Net Profit Margin 17.05 20.61 17.13 20.29 22.20 16.20
Return on Long
86.75 81.47 59.62 73.36 56.92 134.67
Term Fund(%)
Return on Net
16.30 19.50 12.24 16.26 13.40 22.71
Worth(%)
Adjusted Return on
16.30 19.50 12.24 16.26 13.40 22.71
Net Worth(%)
Return on Assets
Excluding 164.33 181.23 159.35 813.47 634.60 197.48
Revaluations
Return on Assets
Including 171.89 181.23 159.35 813.47 634.60 197.48
Revaluations
Interest Income /
10.33 9.22 10.24 8.47 7.81 9.59
Total Funds
Net Interest Income
3.62 4.14 4.34 3.30 2.91 2.61
/ Total Funds
Non Interest Income
2.37 1.78 1.63 2.05 1.84 1.65
/ Total Funds
Interest Expended /
6.72 5.08 5.89 5.16 4.90 6.98
Total Funds
Operating Expense /
2.61 2.55 2.78 2.08 1.72 1.62
Total Funds
Profit Before
Provisions / Total 3.25 3.22 3.01 3.17 2.93 2.58
Funds
Net Profit / Total
1.76 1.90 1.75 1.72 1.73 1.55
Funds
Loans Turnover 0.17 0.15 0.17 0.14 0.14 0.19
Total Income /
Capital 12.70 11.00 11.87 10.51 9.65 11.25
Employed(%)
Interest Expended /
Capital 6.72 5.08 5.89 5.16 4.90 6.98
Employed(%)
Total Assets
0.10 0.09 0.10 0.08 0.08 0.10
Turnover Ratios
Asset Turnover
0.11 0.10 0.11 0.09 0.08 0.10
Ratio
Interest Expended /
64.98 55.07 57.57 60.99 62.71 72.79
Interest Earned
Other Income /
18.64 16.14 13.77 19.46 19.10 14.71
Total Income
Operating Expense /
20.57 23.18 23.38 19.81 17.82 14.41
Total Income
Selling Distribution
-- -- -- -- -- --
Cost Composition
 Capital Adequacy
13.83 16.07 18.83 16.07 17.70 14.40
Ratio
Advances / Loans
79.37 82.33 73.95 73.29 73.26 60.67
Funds(%)
Credit Deposit Ratio 86.74 81.79 92.18 80.03 100.71 72.71
Investment Deposit
35.96 35.05 49.37 42.60 55.79 59.46
Ratio
Cash Deposit Ratio
Total Debt to
8.72 9.36 5.86 8.67 6.65 13.41
Owners Fund
Financial Charges
1.50 1.66 1.54 1.63 1.62 1.38
Coverage Ratio
Financial Charges
Coverage Ratio Post 1.28 1.40 1.33 1.35 1.37 1.23
Tax
Current Ratio 0.04 0.06 0.03 0.03 0.09 0.08
Quick Ratio 22.84 8.55 17.39 18.57 11.31 10.40
Dividend Payout
13.07 19.38 4.19 15.11 27.07 17.83
Ratio Net Profit
Dividend Payout
12.22 17.96 3.78 14.27 25.57 17.16
Ratio Cash Profit
Earning Retention
86.93 80.62 95.81 84.89 72.93 82.17
Ratio
Cash Earning
87.78 82.04 96.22 85.73 74.43 82.84
Retention Ratio
AdjustedCash Flow
40.17 40.15 35.42 42.69 31.96 44.14
Times
Earnings Per Share 26.80 35.34 19.51 132.33 85.04 44.86
Book Value 164.33 181.23 159.35 813.47 634.60 197.48
FINANCIAL ANALYSIS BETWEEN INDUSIND AND OTHER BANKS

The ratios chosen for financial analysis of the company are:-

 Net Profit Margin- higher the net profit margin, higher is the ability of the
company to convert its sales into actual profit.
 ROA- A rise in ROA indicates better management of assets of the company.
 ROE- An increasing ROE indicates the ability to generate profit without the
requirement of higher amount of capital.

Comparison between HDFC and IndusInd

 As far as the five year company’s current ratio is concerned, IndusInd bank shows a steady
increase in net profit margin over HDFC bank’s performance. The ROA has been the same
throughout the last five years (160%) and it’s really strong as per this criteria. The ROE shows
a fluctuating trend but projects a positive outcome as per the graph.
Comparison between Kotak Mahindra and IndusInd
As far as the five year company’s current ratio is concerned, IndusInd bank shows a steady
increase in terms of net profit margin as compared to Kotak Mahindra bank even though the
latter has a greater net profit margin at present. The ROA of Kotak Mahindra shows an
ascending trend after the decline which occurred four years back and gone up as compared to
the ROA of IndusInd. But as we compare the ROEs of both the banks, IndusInd results out to
be financially stronger bank as compared to Kotak Mahindra Bank, at present.

Comparison between Axis Bank and IndusInd

In past five year company’s current ratio is concerned, IndusInd bank shows an increasing
trend in terms of net profit margin compared to Axis bank as well. The ROA of Axis Bank is
not as attractive as that of IndusInd Bank. The ROE graph of Axis Bank seems highly
vacillating as compared to that of IndusInd Bank.
Comparison between ICICI Bank and IndusInd
The past five year trend of both the banks, IndusInd bank shows a favourable rise as compared
to ICICI Bank in terms of net profit margin. The ROA of ICICI Bank showcases an
plummeting since 2017. IndusInd proves to more financially stable bank as compared to ICICI
Bank, to be precise.
Comparison between YES Bank and IndusInd
 Both the YES Bank and the IndusInd Bank seemed to go hand in hand during the period from
2013-2014. Afterwards, the trends wavered as follows:-

 Net profit margin of YES Bank stepped up and continued the trend till 2018 following a steep
fall, subsequently.
 ROA was same for both the banks till 2017. Later on, the bank witnessed a plump in its graph.
 ROE of IndusInd declined from 2016 to 2017 but recovered later. Similar to the previous two
criteria, the graph of YES Bank exhibited a serious diminution in its value.

CONCLUSION
The IndusInd Bank, even though faced critical losses and sharp downfall in its share prices
recently, it is expected to normalize its earnings from 2020, with its ROE moving towards
20%, as per the recommendations of a certified news source. Hence they are encouraging
investors to invest in the company’s shares. Its promising performance, as compared to its peer
group members, could also be inferred from the 5 year trend analysis done above.
References

1. IndusInd Bank, July 21, 2019 ,MoneyControl,

https://m.moneycontrol.com/stock/indusind bank/IIB/financials/financials-ratio
2. IndusInd Bank Fact Sheet, equitymaster, https://www.equitymater.com
3. Understated Factors To Consider Before Investing In IndusInd Bank Limited
(NSE:INDUSINDBK), February 2019, Simply Wall St News, https://simplywall-
st.cdn.ampproject.org/v/s/simplywall.st/stocks/in/banks/nse-indusindbk/indusind-bank-
shares/news/understated-factors-to-consider-before-investing-in-indusind-bank-limited-
nseindusindbk-2