IndusInd Bank Ltd: History, Latest Updates, Milestones, Subsidiaries and Share Price
INTRODUCTION
IndusInd Bank is recognized as one of India's foremost financial services brands. It serves as the preferred banking solutions provider and partner for approximately 37 million customers across the country, catering to individuals, large corporations, various government entities, and PSUs. The bank's extensive network includes 2631 branches/banking outlets and 2903 ATMs strategically positioned throughout India, covering 1,43,000 villages. Additionally, IndusInd Bank maintains a global presence with representative offices in London, Dubai, and Abu Dhabi. The bank offers a comprehensive range of products and services tailored for individuals and corporations, including microfinance, personal loans, personal and commercial vehicle loans, credit cards, and SME loans.
IndusInd Bank Ltd. Moves in 2023:
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IndusInd Bank launches a brand campaign to promote its new digital banking app, 'INDIE,' coinciding with the ongoing ICC Men's Cricket World Cup 2023.
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Strong NII Growth: Net Interest Income (NII) recorded a robust 18% year-on-year increase, reaching Rs 5,077 crores from Rs 4,302 crores.
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Stable Net Interest Margin (NIM): The net interest margin remained steady at 4.29%, showcasing consistency in performance compared to previous quarters.
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Significant Profit Growth: Net profit demonstrated substantial growth, rising by 22% year-on-year to Rs 2,202 crores from Rs 1,805 crores.
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Healthy Deposit Growth: Deposits exhibited a healthy 14% year-on-year growth, reaching Rs 3,59,548 crores from Rs 3,15,532 crores, with a notable 6% growth in CASA.
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Improvements in Asset Quality: Gross NPA and Net NPA ratios decreased to 1.93% and 0.57%, respectively, from 2.11% and 0.61% year-on-year. The Provision Coverage Ratio (PCR) stood at 71% as of September 30, 2023, indicating prudent risk management.
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Sustained Capital Adequacy: The Capital Adequacy Ratio (CRAR) as of September 30, 2023, increased to 18.21% from 18.01% on September 30, 2022, reflecting a sound financial position.
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Key Financial Metrics: Notable financial metrics include a Net Interest Margin (NIM) of 4.29%, a Net NPA of 0.57%, a Provision Coverage Ratio of 71%, a capital adequacy ratio (CRAR) of 18.21%, a CASA of 39%, and a liquidity coverage ratio of 117%.
These key highlights underscore IndusInd Bank Ltd.'s robust financial performance, prudent risk management, and strategic initiatives undertaken in the year 2023.
Evolution of IndusInd Bank: From Past to Present:
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1994-1995: IndusInd Bank Ltd. commences operations, emphasizing a diverse, efficient, and customer-centric approach.
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1996-1997: A successful IPO in November 1997 signifies a significant expansion, raising USD 30 million in capital.
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1997-2000: The bank enriches its product portfolio with services such as Indus Home, FAST Forex, and Indus Auto, addressing diverse financial needs.
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2001-2003: IndusInd enters the digital era with the launch of ‘IndusNet’, introducing Internet Banking, Phone Banking, and Mobile Banking services nationwide.
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2003-2004: Strategic merger with Ashok Leyland Finance Limited and IndusInd Enterprises and Finance Ltd.
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2004-2005: The bank achieves consistent growth with the opening of its 100th branch in Dadar, Mumbai, and inaugurates a second representative office in London.
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2005-2006: IndusInd raises Rs 170 crore through Tier-II bond issuance and forms strategic partnerships with Religare Securities and Aviva Life Insurance.
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2007-2008: Mr. Romesh Sobti assumes the role of Managing Director and CEO, and the bank extends microfinance to over 300,000 women.
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2009-2010: IndusInd Bank raises Rs 480 crore through Qualified Institutions Placement and introduces a solar-powered ATM in Maharashtra.
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2010-2011: Introduction of innovative services like Choice Money ATM and Check-On-Cheque.
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2011-2012: Acquisition of Deutsche Bank’s Credit Card business in India, expanding credit offerings.
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2012-2013: The bank raises Rs 2,000 crore and installs 100 solar-powered ATMs, showcasing its commitment to green initiatives.
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2014-2015: Milestones include the inauguration of India’s first digital branch at IndusInd Cybercity Station and achieving the 1st Green Branch certification in digital and green banking.
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2016-2017: Support for 18 para-athletes for the Paralympics 2016, showcasing commitment to social causes.
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2017-2018: Significant merger announcement with Bharat Financial Inclusion Limited, accompanied by substantial microfinance funding from OPIC and ADB.
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2018-2019: The bank introduces the IndusInd Bank Duo Card and Nexxt Credit Card, receiving the Best Commercial Bank of the Year (India) award at the International Banker Awards.
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2019-2020: Launch of the IndusInd Bank Celesta American Express Credit Card and a USD 400 million public bond, highlighting continued growth.
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2020-2021: Unveiling of a Zebu Bull sculpture in Mumbai and introduction of India’s first mobile app-based facility for opening current accounts.
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Name
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IndusInd Bank Ltd.
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Founded year
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1994
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Founding chairman
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Srichand P Hinduja
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Headquarters
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Pune, India
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Sector
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Banking and Financial Services
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Current chairman
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Sumant Kathpalia (MD and CEO) and
Gobind Jain (CFO)
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Major subsidiaries
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Bharat Financial Inclusion Limited (BFIL)
IndusInd Financial Inclusion Ltd.
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revenue
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Rs. 44,540 crore (US$5.6 billion) (FY23)
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Geographical presence
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Worldwide
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Nse code
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INDUSINDBK
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Bse code
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532187
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Timeline of IndusInd Bank
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Year
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Fact
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Description
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1994
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Incorporation and commencement of commercial operations
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The bank was incorporated in January and commenced commercial operations in April. It obtained the Certificate of Commencement of Business in February 1994.
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1995
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Issuance of 120 million equity shares
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The company issued 120 million equity shares and formed a strategic alliance with Kredietbank NV.
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1995
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Strategic alliance with Kredietbank NV
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The bank formed a strategic alliance with Kredietbank NV, Brussels, Belgium, enhancing its global standards.
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1996
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Establishment of a state-of-the-art dealing room
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A state-of-the-art dealing room was set up at Nariman Point, Mumbai, aimed at enhancing profitability.
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1997
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Issuance of 400 million equity shares
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The company successfully issued 400 million equity shares to the public.
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1997
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Successful launch of 'anywhere banking'
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The bank introduced the concept of 'anywhere banking,' offering customers a unified banking experience.
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1997
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Introduction of Fast Forex for international remittances
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Fast Forex, an international remittance product, was launched for speedy fund transfers globally.
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1998
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Launch of Banking on the Net service
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The bank introduced the Banking on the Net service, providing alternate delivery channels for customers.
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1999
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Introduction of technologically advanced products
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The bank introduced technologically superior products like Fast Forex, anywhere banking, Internet banking, and depository services.
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2003
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RBI permission for setting up offices abroad
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The bank received RBI permission to set up offices abroad.
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2003
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ISO 9001:2000 certification for all branches
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All branches received ISO 9001:2000 certification in the 10th year of operations.
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2008
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Signing of Rs 150-cr deal with SKS Micro
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The bank signed a Rs 150-crore deal with SKS Micro for collaboration.
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2009
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Introduction of a new look branch model at Bandra
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The bank launched a new look branch model at Bandra.
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2012
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Opening of the first Currency Chest in Mumbai
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The bank opened its first Currency Chest in Mumbai.
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2013
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Launch of Indus Forex Card
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IndusInd Bank launched the Indus Forex Card.
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2013
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Enhancement of core banking system to Finacle 10.2
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The bank enhanced its core banking system to Finacle 10.2 version.
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2015
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Launch of customer-responsive service QuickPay
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The bank launched QuickPay, allowing customers to send money instantly through SMS, E-mail, and social media platforms.
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2016
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Partnership with PayU India
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The bank partnered with PayU India to revolutionize Digital Banking & Payments.
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2016
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Launch of IndusForSports
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IndusInd Bank launched IndusForSports, a non-banking sports vertical.
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2017
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Strengthening footprint in Sikar, Rajasthan
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The bank strengthened its footprint in Sikar, Rajasthan.
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2017
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Launch of IndusForex.com
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The bank launched IndusForex.com.
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2018
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Partnership with Paytm Payments Bank
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The bank partnered with Paytm Payments Bank to introduce a facility to create a fixed deposit.
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2018
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Launch of programs to support girl athletes
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Programs were launched to support girl athletes.
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2019
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Launch of co-branded credit card with PAYBACK
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The bank launched a co-branded credit card with PAYBACK.
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2020
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Introduction of 'PIONEER' Banking
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IndusInd Bank introduced 'PIONEER' Banking, its Wealth Management platform.
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2020
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Launch of Pioneer Heritage in partnership with MasterCard
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Pioneer Heritage was launched in partnership with MasterCard.
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2021
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Partnership with Vistara for a co-branded credit card
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The bank partnered with Vistara to launch a co-branded credit card.
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2021
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Launch of 'Indus Merchant Solutions' app
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The bank launched the 'Indus Merchant Solutions' app.
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2021
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Becoming the first Indian bank to offer cross-border remittances via UPI
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IndusInd Bank became the first Indian bank to offer cross-border remittances via UPI.
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2021
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Innovation Awards
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The bank received the 2020 APAC Innovation Awards for RED HAT.
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2022
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Partnership with the Department of Panchayati Raj, Government of Uttarakhand
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IndusInd Bank partnered with the Department of Panchayati Raj, Government of Uttarakhand, to offer banking services in more than 600 Nyaya Panchayats.
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2022
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Governance Now Award for 'SME Connect' category
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IndusInd Bank received the Governance Now Award for the 'SME Connect' category.
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2022
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Strategic partnership with Asian Development Bank (ADB)
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IndusInd Bank announced a strategic partnership with the Asian Development Bank (ADB) to support and promote supply chain finance (SCF) solutions in India.
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2022
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Partnership with M2P for digital-first and digital-only products
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IndusInd Bank partnered with M2P to offer digital-first and digital-only products.
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Inside IndusInd Bank: Exploring Subsidiary Ventures
IndusInd Bank Ltd
Corporate actions: IndusInd Bank Ltd. is scheduled to discuss Quarterly Results in its upcoming board meeting today. For the fiscal year ending March 2023, the bank has declared a substantial equity dividend of 140.00%, equating to Rs 14 per share. This demonstrates the bank's commitment to shareholder value, maintaining a consistent dividend record over the past 5 years.
The Final Dividend announcement on April 24, 2023, highlights an Ex-Date of June 2, 2023, with shareholders set to receive Rs. 14.0000 per share (140%). This financial update underscores IndusInd Bank's stability and performance, promising valuable insights into its strategic trajectory during the board meeting.
Main News: IndusInd Bank is reportedly considering the sale of a 2.86% stake valued at Rs 762 crore in Nippon AMC through a block deal, with a floor price set at Rs 426.60 per share, as per insider sources.
Latest News: IndusInd Bank shares surged 28% this year, targeting Rs 2,000 by 2024. With a 22% gain in the last six months, the stock outpaced the Sensex's 16% climb in 2023. Closing at Rs 1569.70 in the latest session, IndusInd Bank demonstrates strong market performance, indicating positive investor sentiment. The bank's current momentum and optimistic outlook position it for continued growth, making it a noteworthy choice for investors in the dynamic financial markets.
Bharat Financial Inclusion Limited (BFIL)
Latest News: In 2023, Bharat Financial Inclusion Limited (BFIL) has been recognized as a "Great Place to Work" for the 9th consecutive year, ranking #69 among the Best Companies to Work For. BFIL also receives the ASSOCHAM Award for its CSR initiative, PRAGAT Watershed, focusing on water conservation in Karnataka. Additionally, BFIL is re-certified for ISO 9001:2015 compliance in audit processes for the 13th consecutive year, highlighting its commitment to operational excellence. These accolades underscore BFIL's dedication to maintaining high standards in the workplace, impactful CSR endeavors, and robust audit practices.
IndusInd Financial Inclusion Ltd.
IndusInd Financial Inclusion Ltd., a subsidiary that exemplifies the bank's commitment to financial inclusion, tirelessly works to provide essential financial services to the most marginalized sections of society. In doing so, it actively contributes to their economic upliftment.
Major Acquisitions by IndusInd Bank Ltd.
IndusInd Bank made strategic acquisitions to fortify its market presence:
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Deutsche Bank’s Credit Card Business
IndusInd Bank entered the credit card market by acquiring Deutsche Bank's credit card business in India. This move broadened the bank's offerings, providing tailored solutions to a new customer base and strengthening its position in the credit card sector.
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Diamond & Jewelry Financing Business from RBS
The acquisition of RBS's Diamond & Jewelry Financing business solidified IndusInd Bank’s position in this specialized financing sector. This diversification enriched the bank's loan portfolio, establishing a strong client base and market expertise in diamond and jewelry financing.
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Bharat Financial Inclusion Limited Merger
IndusInd Bank significantly augmented its microfinance portfolio through a merger with Bharat Financial Inclusion Limited. This strategic partnership expanded the bank’s outreach to the unbanked and underserved population in India, reaffirming its commitment to fostering financial inclusion.
IndusInd Bank Limited NSE/BSE: Current Share Prices
Achievements and milestones
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Recognized as the Most Preferred Workplace by Marksmen.
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Ranked as the No. 1 Financier for two consecutive years by Escorts Kubarta.
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Awarded for Outstanding Digital Customer Experience (CX) in Payments & Collection Services at the Digital CX Awards 2022.
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Named the Best Bank for Environmental, Social, and Governance (ESG) in India at the AsiaMoney Best Bank Award 2022.
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Acknowledged as the Most Customer-Centric Brand at the 3rd edition of the ETCX Summit 2022.
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Meity (Ministry of Electronics and Information Technology) ranked IndusInd Bank as #1 among private banks on the Digidhan Dashboard.
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Received the Best Chief Information Officer (CIO) Award at the recently concluded Bharat Fintech Summit 2023.
CONCLUSION
IndusInd Bank Ltd. stands as a reliable preference for customers throughout India. Its inventive products, such as the Duo and Nexxt Credit Cards, enhance banking convenience. The bank's enduring history reflects a strong dedication to customers and the nation's economic progress. With an extensive network and diverse services, IndusInd Bank remains a trustworthy ally for individuals and businesses, ensuring security and prosperity in all financial pursuits.
Frequently Asked Questions:
1. Can you provide a brief overview of IndusInd Bank Ltd.'s business?
IndusInd Bank Ltd. offers a range of banking products and services to individuals, NRIs, businesses, corporates, and government institutions. The bank operates in segments such as Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations.
2. Where can I find real-time updates on IndusInd Bank share price?
Check out the current IndusInd Bank share price today and real-time updates on stock prices on Enrich Money's stock analysis page here.
3. What were the recent corporate actions of IndusInd Bank Ltd.?
The latest board meeting on October 18, 2023, discussed quarterly results.
4. How is the shareholding pattern distributed for IndusInd Bank?
As of September 2023, promoters hold 16.47%, while non-promoters hold 83.53% of IndusInd Bank shares.
5. What is the market cap of IndusInd Bank stock?
The market capitalization of IndusInd Bank stock is Rs 125,230.44 crore.
6. What has been the highest IndusInd Bank stock price in the last 52 weeks?
52 Week's highest IndusInd Bank share price is Rs 1,275.80, while 52 week's low is Rs 763.20
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