IndusInd Bank Integrated Report 2020 21

Integrated Report 2020-21
ESG Highlights 2020-21

SUSTAINABLE
Only Indian Bank to be included in
the S&P DJSI Sustainability Yearbook
2020 with Highest Ranking within the
Leadership in Climate Change
Mitigation in CDP and the only
bank with the Highest Rating ‘A’
Pioneering ESG Excellence
through Refinitiv ESG Ratings
& Rankings
FROM THE CORE
Indian banking sector
Sustainability is at the core of everything IndusInd does.
Environment Underpinned by its PC-5 strategy of scaling with sustainability
(Read more on Page 37), IndusInd Bank very well understands
3 Green buildings 37.5% 92.25% and is committed to inspiring its vast fraternity of stakeholders
LEED Gold and Platinum rated Reduce emissions intensity in Emissions reduced from through delivering value that matters.
corporate offices FY 2020-21 as compared to business travel
baseline year of FY 2017-18
The Bank began its sustainability journey on the firm belief that
to deliver long-term value to its stakeholders, it had to embed
Social environment, inclusive social development and good factors
into every aspect of its business.
3.5 Lakhs+ 63% 4,273 This commitment has meant looking inside, and viewing every
Active clients in Micro-Finance Increase in rural customers New hires under the age of 30
Investment (MFI) Project Sunstone over the past year in FY 2020-21 function through the ESG lens. The rigour of this exercise has
strengthened the Bank at its core. While this has meant minimising
resource use, firming up the Bank’s financial viability, imbibing best
~280% 8.5 Lakhs+ 45% governance practices, it has also meant greater focus on
Growth in registrations and active Employee training man-hours Of total lending is ESG focused
users in FY 2020-21 for Banking on through 1,590+ programmes
the impact the Bank was creating through its investments.
WhatsApp
With sustainability as its core idea, IndusInd Bank, is going strong,
Governance deepening its impact through responsible lending, mitigating
climate change and promoting lasting social changes through its
12 years 2/9 Part of the
investments in its people and the society.
of reporting on sustainability
initiatives
Women Directors on the Board Top 21
Indian companies included in the
DJSI Yearbook 2020
57th 78/100 Score ‘A’ list for the 6th

Global Rank out of 914 global Rated by Refinitiv ESG Rankings
Consecutive year
Banking Services companies by Only Indian Bank on the CDP List
Refinitiv ESG Rankings
Numbers in the FY 2020-21 Annual Report may differ, as ESG audit was underway at the time of publication of the Annual Report.
About the Report Contents
Approach to reporting THE BANK’S CAPITALS

IndusInd Bank has been one of the first organisations
in India to incorporate integrated thinking in its
operations and reporting. The Bank believes in
creating long-term value for its stakeholders and
4 62
Financial Capital Infrastructure Capital
has been voluntarily reporting its sustainability Corporate Overview Responsibility Towards
performance since 2011, to communicate its triple The Bank offers and The Bank is expanding
bottom line focus. The Bank published its first excels in various verticals its physical outlets 6 Message from the Managing Director
the Community
Integrated Report in 2017. IndusInd Bank has since through corporate, retail through developing green
8 About IndusInd Bank 64 Social Financing
continued to publish Integrated Reports that banking, microfinance and buildings and IT systems
provide a holistic view of its strategy, performance, vehicle fi
nance, creating to engage responsibly 10 Product Suite 74 Community Development
relationships and value-creation efforts, including consistent value. with its customers.
12 Strengths
its overall approach to Environmental, Social and
Governance (ESG) aspects. 14 Investment Case 82
16 Digitalisation
Reporting frameworks Employee
This Integrated Report is prepared in accordance 18 Information Security
with the International Integrated Reporting <IR> Intellectual Capital Human Capital
Well-being
20 COVID-19 Response
Framework outlined by the International Integrated
The Bank prioritises its The Bank considers its people 84 People Practices
Reporting Council (IIRC). The Key Performance 22 Customer Connect
customers and believes to be its biggest asset,
Indicators (KPIs) and disclosures discussed in this 92 Health and Well-being
in providing clear and believes in delivering value
report are in accordance with the Global Reporting
Initiative (GRI) Standards ‘Core’ option. The report
is also in accordance with the Task Force on Climate
customised solutions using
a collaborative knowledge
to its workforce through
transparent communication,
24 94
driven approach. The Bank incentivised work culture,
Related Financial Disclosures (TCFD). The Bank also
also aims to keep its internal capacity building and
Integrated Approach
publishes an annual report. The FY 2020-21 Annual
processes updated with training programmes. to Value Creation Ethics and Values
Report can be accessed here. Throughout the report,
the Bank has reported its efforts and initiatives
the rapidly changing at Work
technological world. 26 Value-creation Model
to support the United Nations Sustainable
96
Corporate Governance
Development Goals (UNSDGs). 28 Opportunity Landscape
104
Sustainable Procurement
30 Risk Management
105
Way Forward
34 Stakeholder Engagement
Natural Capital
The Bank is committed to
Social and
Relationship Capital
36 Materiality
37 Strategy
106
preserving the environment The Bank trusts to build 38 ESG Integration in Annexures
through investing in green good relationships with its Products and Services
and alternative choices. stakeholders and focuses on 106
Independent IR ESG Assurance
Reporting scope and boundary 44 ESG Targets and Performance
The Bank has adopted initiatives that help enhance Statement
This Integrated Report presents information about renewable energy, dedicated the business. The Bank
the pan-India standalone operations of the Bank
across various business verticals. It covers information
to reduce its GHG emissions,
and is actively advocating
also supports community
development by proving
46 110
Integration with Sustainable
Development Goals
pertaining to the period April 1, 2020-March 31, to inculcate sustainability in new livelihood opportunities, 112 GRI Content Index
2021. The last report was published for the period the core strategic framework contributing to a holistic
Environment Preservation
116 List of Tables and Graphs
April 1, 2019-March 31, 2020. There were no significant of a business. development of the society.
48 Green Financing
changes to the Bank or its supply chain during the
reporting year. 50 Resource Management
Precautionary principle
We follow a precautionary approach towards minimising our negative impact on 56 Aligning with TCFD
External assurance the environment. As a Bank, we have a limited impact. We take measures to make Recommendations
The IndusInd Bank Integrated Report 2020-21 has our employees aware and consistently reduce water and energy footprint of our
been externally assured by Deloitte Haskins & Sells ATMs, data centres and Bank branches.
LLP. Their assurance statement is a part of the report
on Page 106.
Read more about the bank’s sustainability initiatives here.

[GRI: 102-10, 102-11, 102-45, 102-46, 102-48, 102-49, 102-50, https://www.indusind.com/in/en/sustainability.html
102-51, 102-52, 102-54]
Highlights
With sustainability at its
core, IndusInd Bank offers 2,015
Branches across India
a wide range of products
and services for individuals
and corporates. 2,872
ATMs across India
28 Mn
Customer base
436
Branches in rural areas
CORPORATE
IN THIS SECTION
Message from the
Managing Director 6
About IndusInd Bank 8
Product Suite 10
OVERVIEW
Strengths 12
Investment Case 14
Digitisation 16
Information Security 18
COVID-19 Response 20
Customer Connect 22
IndusInd Bank Integrated Report 2020-21 SUSTAINABLE FROM THE CORE
Message from the Managing Director
Signs of a strengthened core
Dear Stakeholders, pandemic year, we, at IndusInd Bank, have accorded initiatives in livelihood, healthcare, education etc. “The Bank is committed to
the highest priority to the continuity of services to our The Bank is committed to increasing capital allocation
I begin with the hope that this missive finds you and customers and the safety of our employees. in these areas and taking the allocation to 45% by 2023.
increasing capital allocation
your family safe and in the best of health. It gives
During the year, we strengthened our balance sheet,
Regarding sustainable operations, IndusInd Bank has in these areas and taking the
me great pleasure to share with you the FY 2020-21 committed to reducing its carbon footprint by 50% by
Integrated Report of IndusInd Bank, one of the
reinforcing the Bank’s sound positioning to participate
FY 2024-25 over the baseline of FY 2019-20. During FY
allocation to 45% by 2023.
in the growth to follow in the coming years. We closed
frontrunners in India’s banking sector. Having taken
the year with a capital adequacy ratio of 17.38%, surplus
2020-21, the Bank reduced its carbon emission intensity Regarding sustainable operations,
on the mantle in March last year, I am proud to have by 38% over baseline emissions of FY 2017-18.
been a part of the Bank’s momentous journey over the
liquidity of ₹ 40,000 crores, credit deposit ratio below IndusInd Bank has committed
85% with strong traction on retail deposits. FY 2020-21 As a result of these efforts, we have achieved the
past one year, during which it has demonstrated why it
was also the year when the Bank adopted its fifth 3-year following:
to reducing its carbon footprint
remains a market leader.
(triennial) planning cycle for the period FY 2020-23. by 50% by FY 2024-25 over the
FY 2020-21 was an extraordinary year by any measure. Planning Cycle-5 (PC-5) has ‘Scale with Sustainability’ as • We are the only Indian bank to be included in the S&P
It was a year of unprecedented challenges both at the a key theme and along with growth areas, the Bank has DJSI Sustainability Yearbook for 2021. The yearbook
baseline of FY 2019-20. During
personal and professional levels. The year brought also defined boundaries relating to capital adequacy, showcases select organisations that have progressed FY 2020-21, the Bank reduced its
with it a considerable amount of uncertainty following provision coverage, stable funding sources among well on the sustainability aspects. It includes 21
the virulent outbreak of COVID-19, which led to others which will help it achieve sustainable growth Indian companies and we are the only Indian bank
carbon emission intensity by 38%
strict lockdowns that brought economic activities together with stable profitability across the business amongst them over baseline emissions of
to a standstill. The Indian economy has shown great cycles. • For the 6th consecutive year, the Bank has retained
resilience to the COVID-19 challenges. After reporting its top position in the Carbon Disclosure Project by
FY 2017-18.”
The Bank’s strategy revolves around improving the
two quarters of negative GDP in FY 2020-21, the nation securing the highest ‘Band A’ and being the only
sustainability of the organisation. While we have
has seen strong economic recovery. As the pandemic bank in India in Band A Rankings
registered strong traction on the financial metrics,
is brought under control and the vaccination drive • IndusInd Bank was also ranked 57th out of 914
we have also progressed on non-financial aspects.
lifts consumer and business confidence, economic Global Banking Services companies assessed by
We are committed to sustainable finance, and this
recovery is expected to gain further momentum. Refinitiv ESG Rankings. The Bank was rated 78/100 by We have followed a structured programme for our
is evident from the fact that ~42% of our lending
During successive lockdowns and all through the Refinitiv ESG Rankings for excellent ESG performance, CSR efforts, with our focus areas being education,
book constitutes sustainable finance, which includes
commitment, effectiveness and a high degree of healthcare, inclusive sports, skill development and
climate/green finance and social finance that supports
transparency in reporting material ESG data publicly livelihood and environment conservation initiatives.
Digitalisation will remain a powerful enabler and As a part of the overarching strategy of the Bank, the
driver of our PC-5 strategy of scaling up through our management team and I will focus on sustainability –
“FY 2020-21 was an five decided strategies of growing retail liabilities, which is at the core of everything we do – as a theme
sharpening our corporate bank services, promoting to drive long-term stakeholder value. The Bank has
extraordinary year by any holistic rural banking, capitalising our domains of an extremely strong franchise of 29 million customers
measure. It was a year of expertise and focusing on the new businesses of NRI served by about 30,000 employees today, and I would
banking and wealth management. Technology will like to acknowledge the support of our customers and
unprecedented challenges both also enable us as we emphasise responsible lending, our highly committed and capable workforce. We will
at the personal and professional helping us to take banking services to the unbanked keep supporting the society through our offerings and
while carefully selecting projects and people we will hope that you will stand by us as we move forward to
levels. The year brought with be lending to. With a focus on customer-centricity implement our goals and larger vision.
it a considerable amount of and human-centered design, the Bank is set to start
Stay safe.
its Digital 2.0 journey. The Bank has created a Digital
uncertainty following the Centre of Excellence and is taking a comprehensive Yours sincerely,
virulent outbreak of COVID-19, view to deploy new-age digital platforms and build
end-to-end digital client value propositions. Sumant Kathpalia
which led to strict lockdowns Managing Director & CEO
The Bank is backed by its agile workforce whose
that brought economic activities safety and well-being are of paramount importance.
to a standstill.” Our people also contribute to taking forward
our environmental preservation activities while
volunteering for social causes. We ensure a good
working culture along with an exemplary governance
structure, which caters to the needs of our people and
empowers them.
[GRI: 102-14] [GRI: 102-14]
6 7
About IndusInd Bank
Banking Made Effortless

IndusInd Bank, in its 26th year of Presence
MISSION
operation, is one of India’s fastest-
growing new generation private banks. We will consistently add value to all our London, UK
Established in 1994 by Srichand P. stakeholders and emerge as India’s most
Hinduja, the Bank was named after the convenient Bank with best-in-banking
Indus Valley Civilisation – one of the financial parameters together with the
greatest cultural examples of human doubling of our loan book, clients and profits
ingenuity, enterprise and business within the next three years.
acumen. Over the years, IndusInd
VISION
Bank has grown with a single-minded
pursuit to provide best-in-class banking IndusInd Bank’s vision is to become
Dubai
solutions that meet every need of its

• A relevant business and banking partner
customers while leveraging technology Abu Dhabi
to its clients
to make banking an effortless, fruitful
exercise for millions of its customers • Customer-responsive, striving at all times Mumbai, India
across the country. to collaborate with clients in providing
solutions for their banking needs
Headquartered in Mumbai, the Bank has an extensive reach across every region in India. It also has representative
• A forerunner in the marketplace in terms
offices in London (UK), Dubai and Abu Dhabi (UAE).
of profitability, productivity and efficiency
• Engaged with all our stakeholders and will Highlights

deliver sustainable and compliant returns
• A change agent for financial inclusion 435 46 29,661

in India following the merger of Bharat Semi-urban branches Back offices Permanent employees
Financial Inclusion Limited with the Bank
2,289 9 5
BFIL branches Pioneer branches Currency chests
51,000 43:57 A Nifty50

Active retail distribution
service points
Corporate: Retail Loan
Book (%)
Company
[GRI: 102-1, 102-5, 102-7] [GRI: 102-4, 102-5, 102-7, 102-16]
8 9
Product Suite
Delivering Streamlined Solutions Digital Offerings
IndusInd Bank believes that digital is the way forward and has a variety of digital offerings for its customers to
make banking seamless and convenient.
IndusInd is a universal Bank that offers a wide array of products and services
for individuals and corporates including microfinance, personal loans,
personal and commercial vehicles loans, credit cards, SME loans. It is a Indusnet – IndusAssist - WhatsApp Banking Video Branch
preferred banking partner for various government entities, public sector NetBanking Voice Banking on Alexa Use of WhatsApp to Video conferencing
A secure online platform Banking made convenient interact with and resolve facility to streamline
organisations and large corporates. Given its focus on sustainability, it is also offering service on the go with Amazon’s Alexa customers’ queries interaction between
into impact investing and green lending. at your service using Natural Language customers and respective
Processing (NLP) Bank Managers
Product
GLOBAL TRANSACTION
Group
MARKETS BANKING
IndusMobile IndusForex Video KYC Platform UPI Auto Pay
Banking App providing A one-stop online portal Enables the Bank to Customers can now enable
100+ services to its offering forex services, on-board customers recurring e-mandate using
customers including multi-currency using a live video-based any UPI application for
travel cards interface, with online recurring payments such
verification of documents as mobile bills, electricity
easing the process bills, EMI payments,
entertainment/OTT
subscriptions, insurance,
mutual funds, among
others
IndusSmart On-the-go Banking
Helping customers learn, Banking services on
plan and invest in mutual Facebook
funds and other wealth
Client management schemes
Initiatives under Mobile Banking
Group
USER-FRIENDLY SERVICES ON INDUSMOBILE
Digi SA made live allowing NTB users to open
savings account
Onboarding of vehicle loan customers
Allowing customers to manage debit card limits
and usage preference
Donations made live for customers
CONSUMER BANKING CORPORATE BANKING
SMS BANKING
Vehicle Finance Corporate & Investment Made available for non-internet and non-smart
Banking phone numbers
Retail Liabilities
Commercial Banking
Banking Channel VERNACULAR LANGUAGE FACILITY
Management & Services Financial Institutions Group To ease banking transactions for non-English speakers
Business Banking Public Sector Unit
SAFE AND SECURE SERVICES
Wealth Management & Account balance, payment status, transfer funds,
Third-party Distribution live UPI enabled on iOS and android
Retail Assets
SPECIAL AND CUSTOMISED SOLUTIONS
Tailormade services as per customer’s requirement
[GRI: 102-2, 102-6] [GRI: 102-2]
10 11
Strengths
Positioned to Pursue Opportunities INCREASE IN BALANCE SHEET STRENGTH

Ratio March 2020 March 2021
CRAR 15.04% 17.38%
During FY 2020-21, in light of the critical challenges facing the banking Net NPA 0.91% 0.69%
and financial services sector, the Bank took calibrated steps that ensured Provision Coverage Ratio 63% 75%
it was able to deliver much-needed services to its customers even while it Liquidity Coverage Ratio 112% 145%
pursued its own strategy of ‘scale with profitability’. Share of Retail Deposits as per LCR 31.0% 37.0%
Credit Deposit Ratio 102% 83%
A financial institution’s resilience is measured by the agility with which it
can respond to the business environment. The Bank’s measured response
has not only ensured business continuity and banking convenience, but
also healthy returns for its stakeholders.
VALUE-ADDED SERVICES
The COVID-19 pandemic and the government emphasis
2 Lakhs+
on Aatmanirbhar Bharat have brought into play many Clients under SME partnerships
Small and Medium-sized Enterprises which have rapidly and alliances
digitised their business. The Bank offers an all-in-one
What Differentiates IndusInd Bank Merchant Stack in 12 languages with capabilities
on payments, lending, value-added services, digital
self-onboarding and facility of easy credit for business.
The Bank’s expertise in existing domains has been
demonstrated by strong risk-adjusted returns in
The Bank is amongst the top 3 market players
with decades of experience. During the pandemic, SUPPORT FOR THE COMMUNITY
50 Lakhs
the segments of Livelihood loans and loans such investors’ sentiment continued to remain positive Merchants under all-in-one
The Bank has shown great resilience during the
as Vehicle Finance (30%), Microfinance (14%) and and this was proved by the equity raise of ₹2,021 Merchant Stack
COVID-19 pandemic, and declared provision of
Diamond Financing (3%). The Bank will continue to crores via promoter warrants conversion in
₹1,203 crores related to pandemic and is monitoring
explore new domains such as Affordable Housing, February 2021. Despite the subdued environment,
the requirements closely. It has supplied relief materials
SME, NRI Banking, and Wealth Management. the Bank was able to strengthen its balance sheet
such as face masks, hand sanitisers and gloves to
and address market challenges.
affected areas to combat the pandemic. The Bank is also
facilitating Personal Protective Equipment (PPE) supply
for medical officials on duty. It has also taken several
other initiatives to support communities in need during
the pandemic.
Scaling up areas of Strong financial
domain expertise profile
Convenience and Proven

security track record
The Bank has ramped up digital channel The Bank has responded well to COVID-19, and
facilitation since the lockdown in anticipation of a with this it reaffirms its track record of an agile
surge in self-serve banking and offers distinctive response, which it established during successive
customer experience with process re-engineering crises in the past such as the Global Financial
and improved client communication, for which Crisis, the ‘Taper Tantrum’ of 2013, demonetisation,
the Bank ensures safety from cyber threats fraud, GST implementation and others. With respect
theft and financial crime with its resilient IT to FY 2020-21, the Bank’s overall position versus
infrastructure. the industry stands out on most parameters,
whether in pre-provision profitability, Gross NPA or
capitalisation levels.
12 13
Investment Case
Banking on Strong Fundamentals
One of the strongest brands in the industry, IndusInd Bank’s sustainable

value propositions are rooted in its inherent strengths.
ECONOMIC VALUE RETAINED
Universal banking approach Capital adequacy significantly (` crores)
The Bank serves the diverse needs of its customers across above regulatory threshold Particulars FY 2018-19 FY 2019-20 FY 2020-21
segments with its universal product offerings. While offering During the past fiscal, the Bank has completed two equity
financial solutions to unbanked and underserved raise transactions. With the recent equity raise via promoter A) Direct Economic Value Generated
populations, including entrepreneurial women in rural areas, warrants conversion in February 2021, it has taken the Revenues from Operations 8,846 12,059 13,528
it also caters to the multiple financial services required by pro-forma December 2020-March 2021 CRAR to 17.38%,
individuals and corporates. which is well above the regulatory threshold and the best Revenues from Other Sources 5,647 6,953 6,501
amongst the industry, allowing it a strong foundation for its Total A 14,493 19,011 20,029
future growth.
B) Economic Value Distributed
Operating Expenses (Excluding Employee Wages and Benefits) 4,552 5,363 5,118
Promotes sustainability-driven growth Focus on digital banking to drive growth
The Bank believes in the ethos of ‘Good Ecology is Good The Bank’s Planning Cycle Strategy for 2020-23, which Employee wages and benefits 1,854 2,820 3,039
Economics’, and is committed to consistently delivering emphasises on scale with sustainability, has the broad theme Total B 6,405 8,183 8,157
greater value to all its stakeholders in a manner that of ‘Leapfrog Digital Banking’. The Bank aims to provide
promotes financial, social, and environmental sustainability. clients and customers a seamless and self-serve banking Economic Value Retained (A-B) 8,088 10,828 11,872
experience. A pioneer in digital initiatives across the banking
sector, the Bank continues to invest in digital engagement
and productivity tools for both customers and employees.
WELL DIVERSIFIED CORPORATE AND CONSUMER

LOAN BOOK BANKING LOAN BOOK
Pan-India distribution network with unparalleled Stable asset quality with stringent risk management
(%) (%)
rural presence across the cycles
The Bank has a widespread distribution network and a The Bank has best-in-industry asset quality across its 2
strong customer base of 2.8 crores. It has unparalled rural businesses and follows a stringent risk management strategy
42
43
61
44
presence, covering more than 1.26 lakh villages across India across the economic cycles. 20
with its extensive network of 397 rural branches.
29
Profitability amongst the highest Experienced and well-knit management team
58
57
56
in the industry The Bank has a strong management team with decades
The Bank has strong pre-provision operating profits (PPOP) of experience and domain expertise. The team has been
39
as a % of average assets, amongst the highest in the banking consistently steering the Bank’s strategic approach and 21
16
Industry. The Bank aims to continue to maintain a strong result orientation. The Bank is an equal opportunity
PPOP margin, which enables it to have a sufficient credit cost employer and has ensured diversity in the workforce with all
cushion in an uncertain economic environment. employee benefit policies in place.
12
Vehicle Finance FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21
Non-vehicle Retail
Microfinance Consumer Finance Division
Large Corporates Corporate & Commercial Banking
Mid size Corporates
Small Corporates
[GRI: 201-1]
14 15
Digitalisation
A Digital New Age Bank
Agile and responsive, IndusInd Bank was among the first in the industry to Video KYC Platform Robotic Process Automation
Key digital highlights
The new KYC facility enables (RPA) for SWIFT Controls
adopt digital. It is now strengthening its digital backbone by investing in the Bank to on-board customers RBI mandated Banks to strengthen
technologies to elevate customer experience through safe, convenient and with a live video-based interface their operational controls for SWIFT
reliable digital platforms while enhancing its service and product delivery. without customers having to
physically meet with Bank officials
related processes. One of the key
controls required was related
~55,000
to complete formalities like physical to frequent reconciliation of all FDs booked through online
authentication of documents. outgoing payment SWIFT messages acquisition portal and valued at
The application also allows booking every 1-2 hours. ₹270 crores
of FDs in just a few steps. This also
Account Aggregator CRM Next on Cloud (AWS) Open Banking Sandbox To overcome the manual
enables credit card customers to
IndusInd Bank is the first bank to go CRMNEXT provides an enhanced The Bank is proud to launch Indus reconciliation challenges,
live on RBI’s Account Aggregator
framework in collaboration
digital customer experience and
action platform that leverages the
Open Banking – a developer
portal for seamless development
submit applications and get them
processed digitally – a first-of-its-kind
service in the banking industry.
Automated (RPA) SWIFT message
reconciliation process through Bots
1,100
with Sahamati Foundation, elasticity and resilience of the cloud experience and faster adoption for was implemented on October 5, Vehicle Loan customers registered
The App also detects frauds and
which is a Collective of Account through a robust API-led integration our partners – fintechs, corporate, 2020. In case of any mismatch, an and on-boarded through mobile
malicious activity.
Aggregator (AA) ecosystem setup with all customer touch points. exchange houses and financial email alert is triggered to notify App that allows them to access
as a non-government, non-profit It is a single platform for customer institution (FI) partners. A total of the Bank. The measure has not only their loan details, make due
UPI Auto Pay - Recurring Mandate
organisation. This model is intended service, sales, campaigns and leads 44 APIs are available in the Open reduced manpower but also led to payments and money transfers
IndusInd Bank implemented
to provide ease of sharing financial solutions, with enhanced customer Banking Sandbox. The Bank aims cost savings of ₹50 lakhs.
AutoPay functionality for SIP
information of customers securely survey management. This has to bring these time-tested APIs on
investments through CAMS and
and digitally across all regulated
financial entities basis explicit
consent from the customer.
further enhanced Bank productivity. cloud to enable developers to build
innovative use cases to drive digital
payments in India.
reloading of DMRC’s transit card.
Through this, customers can place
TRRACS - Trade Regulatory
Reporting and Compliance
System
₹200 Cr+
recurring e-mandate using any UPI Pulled from non-IndusInd Bank
TRAACS is the one-stop solution
application for recurring payments account to IndusInd Bank account
that allows banks to continue with
such as mobile bills, electricity bills, with Add Money functionality
the existing business process and
EMI payments, entertainment/OTT
still be compliant to RBI regulatory
subscriptions, insurance, mutual
requirement. TRRACS processes
funds among others.
data from the Bank’s existing
Ganseva Online Savings Account
system as per the RBI guidelines 15,000 (Pre-COVID) to
As part the government’s PM
and transforms it into RBI compliant
formats. It provides web interfaces
35,000 (Post COVID)
SVANidhi scheme to empower street FD booking run-rate improved
to handle processes that are not per month
vendors, IndusInd has tied up with
available in their existing
Atyati, which offers Assisted Digital
trade system.
Financial services, for
Savings account on-boarding
and loan processing.
Pull funds on Whatsapp
IndusInd Bank became the first
bank to launch a financial
2,700+
Accounts opened by Digi SA,
transaction on WhatsApp. Backed
mostly by New to Bank (NTB)
by UPI architecture, it allows
customers
customers to add money to their
high-interest Bank account from
other bank accounts.
25,000
Service requests mobilised
per month
16 17
Information Security
Ensuring Safe and ISO 27001 Certified
Secure Operations IndusInd BankISOis27001

ISO 27001:
Certified
2013 (Information Security
ManagementIndusInd
System)Bank is ISO 27001:
certified,
The Bank accords highest importance to ensuring the privacy, safety and 2013
which includes (Information
100% of Security
security of financial information relating to its customers. It is constantly the Bank’s ITManagement
InfrastructureSystem)
enhancing cyber security measures and strengthening its IT and digital certified,
comprising data which
centres andincludes
infrastructure through the adoption of best-in-class technology and DR sites. 100% of the Bank’s IT
effective risk management processes. An enterprise-wide comprehensive Infrastructure comprising
Customer Awareness Framework has also been developed, resulting in data centres and DR sites.
customer-facing initiatives and greater information security awareness
among customers.
The Bank has Board-level oversight of its IT and digital

infrastructure. The Board of Directors ensures and
reviews its information security/cybersecurity strategy.
The IT Strategy Committee is a Board committee
that oversees cyber security strategy. It is chaired by
Mr. Shanker Annaswamy, the Board member who
SECURITY VIOLATION
oversees the cybersecurity strategy and is a part of the
Cybersecurity/information security committee. The Bank strictly carries out exercises to assess the
awareness levels of employees with regard to cyber
All employees are trained on the critical aspects of
security. This forms a part of the employee performance
information security through the mandatory security
evaluation. Strict warnings and disciplinary actions are
awareness training module. As part of the Bank’s
initiated if their conduct is found in violation of security
continuous improvement, training sessions are also
policies. Simulated phishing exercises are conducted
undertaken on an annual basis for on-site and off-site
periodically to assess the awareness levels of employees
vendors to keep them abreast on information security
and additional awareness is provided to those who
policy and procedures as well as ISO 27001 and
fail the simulated tests. Employees who observe or
PCI-DSS frameworks.
suspect new security threats, or incidents, must report
The Bank has a Chief Information Security Officer them directly to the Security Incident Response Team.
(CISO) who reports to the Chief Risk Officer (CRO) and is The team notifies the Chief Information Security Officer
responsible for overseeing cyber security within (CISO) and the Bank’s respective team.
the organisation. The Bank has made There were zero incidents of IT infrastructure
regulatory learning models interruption or failure for which any penalties or
revenue losses occurred.
available for its employees
The Bank also has an internal
Information Security Policy,
Information Technology Policy,
Cybersecurity Policy, Cyber INFORMATION SECURITY BREACHES AND FINES
Crisis Management Plan,
Particulars FY 2018-19 FY 2019-20 FY 2020-21
Business Continuity Policy Number of information security breaches or other cybersecurity incidents 0 2 0
and IT DR Plan with a coverage Number of information security breaches involving customers' personally identifiable information 0 0 0
of ₹200 crores. Number of fines/penalties paid in relation to information security breaches or other 0 0 0
cybersecurity incidents
18 19
COVID-19 Response
Dealing with an Extraordinary Crisis IndusInd Bank is committed to supporting the community rebuild and
adapt to new trends that may arise in the coming years.
The COVID-19 pandemic impacted the lives and livelihoods of millions

of people around the world and its shadow looms large on the Indian
economy. IndusInd Bank devoted itself to supporting the community
during these perilous times.
SUPPORTING THE COMMUNITY

Awarded ‘Outstanding Response to In keeping with its commitment towards society, the
COVID-19, Branchless Banking’ Bank has been working with the government and its
in Global Retail Banking Innovation Awards agencies across several states as well as at the national
2020 – The Digital Banker level, to fight against the pandemic and in collecting
donations for the Prime Ministers’ Citizen Assistance
and Relief in Emergency Situations (PM CARES) Fund.
The Bank declared a provision of `1,203 crores for
RESPONDING TO THE EVOLVING CRISIS
COVID-19 management has since monitored the
As the COVID-19 infection rate escalated, the Bank requirements closely.
observed accelerated changes in customer behaviour
The Bank spent nearly 24% of the total CSR expenditure
as they shifted away from using cash to making
in response to the pandemic. The following activities
contactless transactions and payments, given the
were conducted as part of its COVID-19 relief work:
COVID safety protocol of minimal contact.
• Supported the Municipal Corporation of Greater
On the basis of its Planning Cycle-5 strategy, the Bank
identified, analysed and comprehensively responded
Mumbai (MGCM) in training of 3,000 doctors and Relief Materials Distributed During the Pandemic
nurses in ventilator management for critical care
to the changes in customer behaviour and preferences
and new ways of functioning in the market. • Set up of 1,100 kitchen gardens for the sustenance
SUPPORTING CUSTOMERS
and benefit of villagers during the pandemic
• Conducted online training to initiate the use of
9,000 35,650 100
N-95 masks PPE kits Hospital beds
The Bank focused on the delivery of products and technology for business continuity for 1,000 women
services through digital channels as well as customer micro-entrepreneurs
engagement through enabled and experienced
• Donation to the Chief Minister’s Relief Fund, State
frontline staff. Branches were functional since 2020, and
witnessed an improvement in branch efficiency despite
the pandemic.
Disaster Management Authority and the
PM CARES Fund
4,00,000 15,200 5,000
Three-ply face masks VTM and Rapid testing kits Pulse oximeters
• Distribution of relief material in direct association
Customers were encouraged to choose ‘Social Distance
with the government, and through NGOs
Banking’ by opting for the Bank’s various Digital
Banking Services for all their banking needs, from
the comfort of their home.
2,72,400 4 110
SUPPORTING WORKFORCE Pairs of gloves Ventilators Spray machines
IndusInd Bank prioritises the health and safety of its
employees. It continued to offer its workforce the
flexibility of work-from-home. The Bank also extended
its ‘Employee Benefit Corpus’ to help those who had 16,130 ltr 24,250 34
been severely affected by the pandemic. The Bank has Dry ration kits
Sanitisers Thermal fogging spraying machines
also carried out mass vaccination drives for
its employees.
123 15,500 3,400 ltr

Soya cooking oil for
Sanitiser dispensers
Disposable bed sheets community kitchens
20 21
Customer Connect
Redefining Convenience
for the Customer
of ethics, are authorised to access customer iInformation
The Bank understands that customer for business purposes only. They are subject to Marketing Campaigns
disciplinary action in case of any breach. A customer
needs are rapidly changing. To may contact the Bank at reachus@indusind.com if they
#HARINDIANKACOMEBACK
address these evolving needs, the
Bank has kept customer experience 97%+ do not wish to be informed of the offers available.
During FY 2020-21, there were zero complaints
The Bank’s first brand campaign of the year –
#HarIndianKaComeback – was launched to celebrate
Customer complaints received in received from outside parties and regulatory bodies or
at the centre of its focus. From FY 2020-21 resolved within the substantiated by the organisation regarding breach of
the indomitable spirit of resourcefulness and resilience
that every Indian citizen upheld amidst the trying times.
constant innovation of products and reporting year customer privacy and loss of customer data. There were
The campaign highlighted the Bank’s unwavering
no identified leaks, thefts or losses of customer data.
services, to customising its offerings During FY 2020-21, 30,045 customer complaints were
commitment to partnering with its customers as
they restarted their journey with renewed vigour.
and empowering the customer reported, of which 29,714 were resolved and 873 were
The campaign was primarily TV-led, and was aired on
through digital, the Bank is exploring
multifarious ways in which it can
75% under process as on March 31, 2021. 2.9% customer
complaints were pending as on March 31, 2021 which
will be resolved subsequently.
32 top channels across different genres.
Customer satisfaction reported by THE ‘ZEBU’ BULL SCULPTURE

make banking more efficient, simple, survey against target of 70% in CUSTOMER GRIEVANCE REDRESSAL
In partnership with the Municipal Corporation of
FY 2020-21
accessible and reliable. The Bank follows a Board-approved Grievance Redressal Greater Mumbai (MCGM) and supported by the Hinduja
Policy, which is displayed at all branches and also Foundation, the Bank unveiled a majestic sculpture
hosted on the Bank’s website. Customers can file of its brand identity – The ‘Zebu’ Bull – at the central
CUSTOMER ENGAGEMENT: APPROACH CUSTOMER SATISFACTION complaints related to any services provided by the Bank business district of Worli in Mumbai. Conceptualised
AND STRATEGY or any outsourced agency at the Bank or through the by globally acclaimed Mumbai-based sculptor, Arzan
(% of satisfied customers out of total number of
call centre. Khambatta, the ‘Zebu’ Bull resonates through the Bank’s
The Bank’s customer engagement strategy is designed customers responding to the survey)
history as a symbol of stability, confidence and strength.
basis client segmentation, given the distinctive Read more on Grievance Redressal Policy here and
and specific needs of different categories of clients. Mechanism here.
DIGITAL CAMPAIGNS
Apart from the interaction with its trained, enabled and 75%
experienced staff, the Bank uses technology to engage 73% D Radio Campaigns: IndusInd Bank executed two
F
with its clientele and personalise its services. Digital and 69% strategically planned radio campaigns on the Bank’s
non-digital modes are used for client engagement. 65%
The Bank also uses targeted campaigns to engage with
IndusInd Bank was ranked Fixed Deposit propositions which aired in six languages
viz. Hindi, Tamil, Telugu, Kannada, Malayalam and
customers to not only create awareness of its products 55th among the Top 75 Most Bengali. The radio campaign was aired across
but also attract and onboard new customers through
appropriate client offerings. The engagement activities
Valuable Indian Brands 2020 24 markets.
aunch of the ‘PIONEER Heritage’ Metal Credit Card:
L
are followed up with surveys that carefully gauge the as per the WPP Kanter BrandZ A unique offering for those who live on their own terms.
‘Voice of the customer’ through customer feedback
which is analysed and assessed to make further
Top 75 rankings. Not only is the metal card loaded with features, but
it is also a piece of art owing to its stylish aesthetics.
enhancements and drive innovations.
From privileges on dining, travel and entertainment to
FY2017-18 FY2018-19 FY2019-20 FY2020-21 exciting rewards, it’s a meticulously crafted credit card
ENHANCING CUSTOMER EXPERIENCE
for the discerning few.
The Bank is committed to creating a distinctive CUSTOMER DATA PRIVACY
Loan Festivals: The Bank organised over 1,000 ‘Loan
customer experience (CEX) in order to retain its
Data privacy is of utmost importance to IndusInd Bank Melas’ across 125 cities in the months of October,
competitive advantage. The Bank’s CEX strategy is to
and it focuses on protecting customers’ privacy during November and December 2020 for reaching out to both
’Redefine convenience’ by making its services ‘Seamless,
their offline visits and online logins. The Bank takes the existing and potential customers.
Easy, Fast and Transparent (SEFT)’. There is a constant
responsibility of keeping customer data confidential
endeavour to deliver superior CEX by embedding the IndusInd Bank believes in transparent communications
at all times. It follows a Board-approved Privacy Policy
SEFT principle in the Bank’s culture, processes and with its customers. There were no marketing
which is displayed at all branches and also hosted
technology solutions. communication breaches reported in FY 2020-21.
on the Bank’s website. Read more about the Bank’s
privacy policy here. The Bank treats every customer’s
MEASURING CUSTOMER SATISFACTION
information as private and confidential and doesn’t
With the objective of assessing the service delivery disclose it to any other entity unless authorised by the
standards, the Bank regularly conducts digital surveys customer or compelled by law, as mentioned in the
basis the category of interaction and channel used by Customer Rights Policy. Employees, bound by the code
the customer.
[GRI: 418-1] [GRI: 418-1]
22 23
IndusInd’s reputation has grown Sustainable
Procurement
over the years as a responsible The Bank’s has a sustainable

procurement policy that has
acted as a central approach
in bringing uniformity in the
lender. Today it lends to emerging bank’s procurement practices
keeping in mind transparency, Greening Operations
safety and inclusion of To mitigate climate change
ESG Targets
industries that are ESG-positive- An effort to
mainstreaming
human rights impact by deploying
climate strategy to invest
in eco-friendly projects
sustainability into its such as Greening IT system,
a factor that has increased its business practices by
voluntarily committing to
Greening infrastructure,
waste management, shifting
12 ESG targets IndusInd Bank's ESG to renewable energy, virtual
credibility amongst investors Framework meetings and carbon
sequestration
Environmental
INTEGRATED
and Social Risk Sustainable Financing
Management System
Development of credit
Ensures investments lines based on the ESG
balance financial growth performance of companies.
with socio-environmental Portfolio is divided into
sustainability. The system Green and Climate Finance
is aimed at assessing ESG and Social, Livelihood and
risks arising from the Bank’s Inclusive Finance
APPROACH
investments
TO VALUE
IN THIS SECTION
Value-creation Model 26
Opportunity Landscape 28
Risk Management 30
Stakeholder Engagement 34
CREATION
Materiality 36
Strategy 37
ESG Integration in 38
Products and Services
ESG Targets and Performance 44
Value-creation Model
Valuing Resources and Relationships
Inputs Business Activities Outputs and Outcomes

• Equity capital: ₹ 773.37 crores • Net Interest Margin (NIM): 4.17%
• Assets: ₹ 3,62,903 crores • Return on Assets (ROA): 0.93%
• Deposits: ₹ 2,55,870 crores Vision and • Return on Equity (ROE): 7.55%
Financial • Corporate and commercial advances: Mission • Capital adequacy ratio: 17.38%
Capital ₹ 2,12,596 crores
N
TIO
CA
• Branches: 2,015 L LO • Increased network of ATMs and branches across India
• Banking outlets: 150 EA GO
• Increased banking accessibility in remote areas
• ATMs: 2,872 U RC VE
R • Rural branches: 436
O
Infrastructure • Corporate and back offices: 49 LEED Gold and Platinum rated offices
N
S
AN
RE
Capital • Overseas offices: 3
CE
D
• Pioneer branches: 9
AN
• Green buildings: 3
Wholesale and
• Data centres: 2 GYE retail lending
AT
services
STR
• Digital infrastructure expenditure: • Enhanced customer experience and

₹428 crores increased productivity
• New technology partnerships • 1 crore digital transactions/month. Benefits and features
Transactional
Intellectual • Conducive and customer-centric processes of digitisation extended to rural India
banking services
Capital • Robust risk management framework and • Registered users on the IndusMobile app: 28 Lakhs
project scrutiny • User growth in Whatsapp banking: approx. 280%
• Customer data security analytics and robotics
• Collaboration with fintechs and start-ups
Global
market services
• Total permanent employees: 29,661 • Employee turnover: 20.6%
• Training programmes: 1,590+ • Average learning hours/employee: 28.57
• No. of training participants: 5.05 lakhs • Permanent women employees in the workforce: 5,528
Asset and wealth
Human • Permanent employees man hours worked: • Permanent employees with disabilities: 25
management and
Capital 5,82,22,638 hours
advisory services
Depository
• Electricity consumption: 73,037.88 MWh • Funded renewable energy projects: 4568 MW
services
• Fuel consumption: 681.53 Kl • Emissions Intensity/FTE decreased by 6.16%
RI
• Paper consumption: 1146.21 MT • Emissions intensity per unit revenue decreased by 13.87%
SK
CE
Natural • Total water used: 3,28,347.27 Kl/annum • GHG emission avoidance: 4,524.56 MTCO2e
AN
M
AN
Capital AG • Trees planted through the afforestation project: 56,000
M
R
EM F O
EN P ER
T
• Total No. of rural liabilities • Beneficiaries of CSR projects: 19.01 Lakhs

customers: 15.1 lakhs • Customer satisfaction score: 75%
• CSR expenditure: ₹94.72 crores • Microfinance beneficiaries: 83.13 Lakhs
Social and
Relationship
Capital
[GRI: 102-7, 102-8] [GRI: 102-7, 102-8]
26 27
Opportunity Landscape
Staying Ahead of the Curve
FY 2020-21 brought many challenges for the banking and financial services
sector. There were both risks and opportunities for the Bank, the impact of which
would crystallise over a long period of time. The Bank has faced the challenges
with fortitude and will continue to propel forward to make the best of the
opportunities available to it.
Trends Driving the Financial Sector
AVING THE WAY FOR A

P HE PANDEMIC’S IMPACT ON THE ECONOMY
T
CASHLESS ECOSYSTEM IndusInd Bank’s response AND LONG-TERM CONSEQUENCES IndusInd Bank’s response
Adapting to the new trend, the Bank is To take advantage of the market
T he world is moving towards a cashless ecosystem part from its immediate health consequences, the
A
focusing on finding innovative ways to attract opportunities, the Bank will be deepening
enabled by digitalised wallets and platforms. pandemic will also have monetary and fiscal impact,
customers, improve customer experience its reach in existing markets and widening
The use of cloud computing and robotic process leading to changes in tax structure and government
and make banking seamless through the use its reach as well, while adding new growth
automation is making banking leaner, faster and more spending, which are likely to impact client needs.
of advanced technologies. It is accelerating boosters. Rising income is creating a desire
profitable. Various companies are aiming to improve Governments are under pressure to ensure access
digital adoption, keeping the client at for affluent banking, which the Bank intends
environmental sustainability with the adoption of green to financial support – loans, guarantees, or grants –
the centre while reshaping operations, to capitalise on and take its place among
and clean tech. needed to prevent companies from collapsing under
infrastructure, and resources to become the country’s top 5 wealth managers, while
financial stress. However, the government’s and the
more digitally enabled. At the same time, the ramping up its non-resident branches,
Reserve Bank of India’s (RBI) monetary and fiscal
Bank is increasing the level of financial flows international presence, and digital offerings.
support are helping shore up the economy. In the days
to sustainable development that addresses The Bank will continue to endeavour to stay
ahead, the government’s affordable housing scheme,
climate and environmental issues. ahead of the curve by bringing out the best in
reduction in corporate tax, GST tax revision, the RBI’s
banking services and address their
accommodative policy stance, and the finance
customer’s needs.
ministry’s push to empower bankers are likely to
boost credit growth.
E XPANDING MARKET REACH

IndusInd Bank’s response
urchasing power and aspirations are growing in
P
Close to 37+ crores people belong to the
semi-urban and rural India. With the introduction
Bottom of Pyramid (BoP) and nearly 60%
of technology in rural areas, and the enhanced
of India’s population live and earn in rural
connectivity at low cost, rural customers are seeking
areas. The Bank is aware of the significant
better life conditions and financial choices. Tier 2 and
opportunities opening up in rural and
Tier 3 cities in India are accessing financial products
semi-urban India and has a rural banking
through various digital platforms.
vertical to cater to these areas with a variety
of product and service offerings such as
micro-loans, vehicle loans, savings accounts
and asset securitisation. It is also engaging
in term-lending to microfinance institutions
through its extensive network of 397 rural
branches. IndusInd Bank believes that rural
India offers an enormous opportunity to
assisted-digital players and consider holistic
rural banking as a strategic priority.
[GRI: 102-15] [GRI: 102-15]
28 29
Risk Management
Managing Threats Strategically RISK MANAGEMENT DEPARTMENT AND STRUCTURE
Managing
Director
FY 2020-21 brought various unseen risks related to the pandemic, making it

imperative for the Bank to re-evaluate its risk exposure and find an effective way Chief Risk
Officer
to mitigate them, particularly with respect to its SME, Real Estate and Unsecured
business, which had been most impacted.
Head Risk
The Bank has an Enterprise-wide Risk Management The Bank has been proactively taking various Management
(ERM) Framework which helps identify and measure the initiatives in line with best international practices and
level of risk and define its mitigation measures across operating environment towards enhancement of Risk
various segments. The framework is supported with Management. With the growth in business volumes,
policies which help adequate management. introduction of innovative products/services etc., it is
highly imperative to adopt risk management practices
The Chief Risk Officer (CRO) Mr. Ramaswamy Meyyappan
so as to safeguard Bank’s interests. Credit Market Operational Asset
reports to MD and CEO of the Bank as well as the Risk Risk Risk Liability
Board-level Committee, which is the ‘Risk Management Management Management Management Management
Some of the measures recently adopted are
Committee’. The Risk Management Committee (RMC)
• Risk Analytics and Data mining
has a complete oversight on the functioning of various
• B-score model development for retail loan book
sub committees setup for identification, measurement,
• Development of rating models for assessing
management and mitigation of risks faced by the Bank. Risk
borrower risk for newer segments introduced
The Bank undertakes a range of business activities Management
• Implementation of software for assessment of various
necessitating it to identify, measure, control, monitor Committee
risks such as credit risk, market risk, operational risk,
and report risks effectively. The Board of Directors and
ALM, reputation risk etc.
Risk Management Committee have oversight on the risk
assumed by the Bank. Risk Management functions within the Bank are Credit Market Operational Asset
continually enhanced to keep abreast with latest Risk
The Risk Management function is structurally Risk Risk Liability
developments. Management Management
independent of the business lines and is without any Management Management
Committee Committee Committee
volume or profit targets. The CRO reports to the CEO Committee
with no alignment to business. The Risk Management
team filters and prioritises the risks based on the The Bank is equipped with E-learning and
structured policies and Risk management framework. Training Modules on Compliance Risk covered
EMERGING RISKS AND APPROACH TO MITIGATION
The Chief Risk officer discusses the individual risks and in the Induction training, Compliance Training
based on the criticality of risks, these are tabled on to for Branch Team, Specialised Training on Name of the emerging risk Model Risk Natural Calamity/Pandemic
the Risk Management Committee of the Board which Compliance Risk, Specialised Training on
are discussed and their inputs are taken for further Operational Risk along with Mandatory Category Other (Finance and Technology) Environmental
improvements. E-learning module for Business Continuity Description • Assessing the Bank’s financial models used to • Occurrence of extreme weather events like rising sea levels,
Management awareness and Information measure as the market risks or value transactions floods, cyclones, tsunami and flooding.
Financial incentives are linked to the performance
Security Awareness for all employees. for their performance as per the expected
against risk management metrics in the KRA of Senior • Occurrence of global pandemics and epidemics, health
standards disasters.
Management which includes various parameters of
Risk management. Impact • Technical errors, data or calibration errors can • Higher Credit costs for agriculture, infrastructure and real
The Bank has an Integrated Risk Management The key enabler for employee performance is the Bank’s have potential impact on valuations of benchmark estate sectors
Department, independent of business functions, performance management process, which comprises models. • Decreased asset quality
covering Credit Risk, Market Risk, Assets-Liabilities Goal/SMART setting, and Annual Review processes. • Damage to the Bank’s infrastructure and technological assets
Management (ALM), Operational Risk Management Risk Compliance is also an integral part of the SMARTs • Lower productivity, absenteeism and delayed completion of
and Business Continuity Planning (BCP). Credit Risk is of employees. The Bank also ensured adherence to all tasks by workforce
managed both at the transactions level as well as at the the HR-related regulatory and statutory laws. The Bank’s
portfolio level. The Bank’s the Environmental and Social business ambition based on stretch targets is captured Mitigating actions • Well-tested and validated models in use • Sophisticated technology and automated operations, leading
Risk management policy and process is detailed here. in the Individual Goals/SMARTs, which are linked to the • Statistical tests for validation to lower operational risk exposure
business plans of the Bank. • Less complex models for measurement of credit • The staff is qualified and adequately skilled to perform
and market risk operations in the Bank. However, intense competition for
skilled resources among financial firms leads to concerns of
• Periodic review of model performance
attrition risk of people resources.
[GRI: 102-15] [GRI: 102-15]
30 31
Risk Management
CORE RISKS AND APPROACH TO MITIGATION

Estimated Estimated
Risk Identified financial Methods of management Risk Identified financial Methods of management
implications implications
CREDIT RISK This is a function • The Bank uses a robust risk rating framework for evaluating credit REGULATORY RISK Compliance The Bank ensures qualitative checks and controls with qualitative
Transaction risk and Portfolio risk of loss given risk of the borrowers. It uses segment-specific rating models that with regulatory internal and external audits to comply with regulatory requirements.
Compliance with new regulatory guidelines
default are aligned to target segment of the borrowers guidelines Well- defined internal policy and function.
Depends on the probability of default and Minimal occurrence – the Bank has a well-
• Risks on various counter-parties such as corporates, banks etc. are and penalties/
concentration of portfolio defined Compliance Department which
monitored through counter-party exposure limits, also governed fines levied
oversees Compliance function. Bank staff are
by country risk exposure limits in case of international trades in case of
adequately educated on compliance issues and
violations/non-
• The Bank manages risk at the portfolio level too, with portfolio dealing in customers and regulatory issues.
compliance
level prudential exposure limits to mitigate concentration risk
Potential Impact : C
BRAND AND REPUTATION RISK Depends on The Bank has maintained its asset quality while achieving growth in
MARKET RISK Replacement The Bank manages market risk through a framework which supports
Market/public perception, Nature and volume of balance sheet size.
Interest rate risk, foreign exchange risk, price cost equivalent various measures such as mark-to-market, sensitivity analysis, value-
volume of frauds/customer complaints etc. frauds and The Bank has been able to raise capital at regular intervals and
risk, volatility risk and commodity risk to mark-to- at-risk and monitoring through operational limits such as stop-loss
replacement maintained its external rating.
market limits, exposure limits, deal-size limits, maturity ladder, etc. Minimal occurrence – the Bank has adequate
Depends on deterioration of value of assets due cost of deposits
corporate governance and professional
to unfavourable movement in market variable due to adverse
management team in place
reputational
event
ASSETS AND LIABILITIES MISMATCH RISK Depends on the • Limits prescribed for mismatch in time buckets facilitate efficient Potential Impact : C
Mismatch in future buckets managed, cost of funds to management of Asset Liability Management (ALM) risk.
CLIMATE-CHANGE RISKS Credit costs Revised policy of funding
therefore occurrence is very less likely be generated • Interest rate sensitivity is monitored on earning perspective and
Extreme weather events like rising sea levels, for agriculture, Having a well-diversified portfolio across various industries and
to mitigate the economic value perspective through prudential limits for rate
floods, cyclones, tsunami and flooding infrastructure segments
mismatch sensitive gaps, modified duration and other risk parameters. and real estate Implementation of a BCP
The likelihood of occurrence is moderate
• Interest rate risk on the investment portfolio is monitored sectors, Digitalisation of process for employees and clients
through value at risk and risk sensitivities on a daily basis. (For more details, please refer to Aligning with decreased asset
Optimum risk is assumed through duration to balance between TCFD recommendations on Page 56) quality,
risk containment and profit generation from market movements damage to
the Bank's
Potential Impact : C infrastructure
OPERATIONAL RISK Value of actual • The Bank has adopted business continuity plan (BCP) to ensure and
Inadequate or failed processes, people loss incidents timely recovery of the Bank’s critical operations and services in technological
or systems risk and provisions the event of any crisis. assets
Depends on the probability of • Regular mock drills are carried out to ascertain BCP preparedness.
operational loss incidents • The risk is managed effectively through regular training,
OCCUPATIONAL HEALTH AND SAFETY RISK Lower • Bank has sophisticated technology and automated operations,
awareness, process enhancements, insurance premium,
Health and safety issues related to indoor air productivity, leading to lower operational risk exposure
outsourcing and automation. The Bank has implemented various
quality, ergonomics, physical infrastructure absenteeism Bank’s staff have been provided adequate training to perform
risk management tools such as Risk and Control Self-Assessment
(lifts, stairs, railing, etc.) Health issues due to and delayed operations in the Bank
(RCSA), KRIs monitoring and loss data collection (Basel 8X7
pandemics and other natural calamities completion of • Regular checks and signages in place for H&S aspects in all
matrix) including near miss events and Operational Risk
tasks the facilities
Assessment Process (ORAP) framework. The likelihood of occurrence is low
Potential Impact : C Potential Impact : C

LIQUIDITY RISK Depends on the Liquidity risk is monitored through structural liquidity gaps, dynamic CYBER RISK Depends on The Bank applies a variety of strong technical control vulnerabilities,
Funding gap risk and market liquidity risk cost of funds to liquidity position, liquidity coverage ratios, liquidity ratios analysis An accelerating risk due to advances in volume of fraud network security controls, password management controls and
be generated and behavioural analysis, with prudential limits for negative gaps in technology and digital landscapes. Also, as software development controls
Funding gap risk is managed through
to mitigate the various time buckets. a result of the COVID-19 pandemic working
management of LCR and adequate investment
liquidity gap remotely has increased the risk of potential
in high quality liquid assets, therefore very less
likely Market liquidity risk shall depend on the cyber-related threats.
liquidity conditions in the financial market The likelihood of occurrence is low
Potential Impact : C Potential Impact : D
Potential Impact : Potential Impact :

C Erosion of capital D Erosion of capital and data C Erosion of capital D Erosion of capital and data
[GRI: 102-15] [GRI: 102-15]
32 33
Stakeholder Engagement
Reflecting on
Stakeholder Concerns
The Bank regularly engages with its stakeholders to assess their concerns
and address them. Without this critical step, an effective management of
risks, undertaking new ventures and development of products and processes
would not be successful. The Bank is committed to communicating with its
stakeholders in a transparent manner on all developments that concern them.
Open, regular and transparent engagement with stakeholders
REGULATORS AND
INVESTORS CUSTOMERS EMPLOYEES SUPPLIERS SOCIETY AND NGOs
POLICYMAKERS
TOPICS OF INTEREST
• Strong operational performance • Data privacy and security • Benefits and remuneration • Fair treatment • Compliance to regulations • Rural development
with a focused growth strategy • Grievance mechanism • Grievance redressal and • Procurement from local suppliers • Solid ESG performance • Financial literacy and inclusion
• Risk management • Ease of access for banking facilities timely response • Service delivery and quality and Integration • Support for livelihoods
• Compliance to regulations • Training and career development • Operational efficiency • CSR and reporting • Socio-economic development
• Building a responsible value chain • Work-life balance • Job creation
• Solid ESG performance
and Integration
INDUSIND BANK’S INTERACTION AND ENGAGEMENT APPROACH

The Bank communicates with The Bank has a continuous ongoing The Bank has ongoing regular IndusInd Bank interacts with its The Bank engages with regulators The Bank is committed to uplift the
investors and shareholders interaction with customers through communication with its employees suppliers through supplier meets, through one-to-one meetings, communities in which it operates.
during investor meets, through digital channels such as video using town-hall meetings, appraisal techno-commercial discussions and emails and submission of It engages with the community
investor grievance channels, at conferencing, customer care, process, newsletters and other supplier sustainability assessments. performance reports. It strives through its CSR team regularly.
roundtables, quarterly conference satisfaction and loyalty survey, channels to understand and support The Bank subscribes to responsible to be a good corporate citizen Community meetings are held to
calls, face-to-face meetings, annual and social media platforms to their concerns and ensure they procurement practices and invests and complies with applicable understand their needs and play an
general meetings and more. understand their requirements and are aligned with the Bank’s in building relationships with regulations. The Bank plays its role active role in supporting them.
These are aimed at providing create better solutions, products strategic priorities. its suppliers. in developing and implementing
relevant information as well as and services for them. public policies.
understanding stakeholders’
perspectives on the Bank’s
performance and strategy.
ENHANCING VALUE FOR ALL STAKEHOLDERS

Solid financial performance Happy customers and Career development and The Bank strives to create an The Bank consistently supports The Bank is focused on giving
irrespective of volatility and trustworthy relations employee well-being empowered group of suppliers government endeavours and back through its CSR programmes
changing dynamics which contribute to a responsible abides by the laws of the land, in the areas of environment,
supply chain with best practices leading by example and education, skill and livelihood
reducing risk development, healthcare, arts
and sports
[GRI: 102-21, 102-40, 102-42, 102-43, 102-44] [GRI: 102-21, 102-40, 102-42, 102-43, 102-44]
34 35
Materiality Strategy
Addressing Issues that Matter Scaling with a Sustainability Focus

The Bank considers those issues as material which have the potential to impact IndusInd Bank prepares its strategic objectives in 3-year planning cycles, which
its operations and affect its relationships with its stakeholders. Issues that impact are further segmented into yearly and quarterly ambitions. The Bank takes into
the relevance, financial and socioeconomic viability of the Bank are accorded account potential changes in the external environment while setting these
of utmost importance. The Bank’s materiality assessment process has provided strategic objectives and identifies trends in the political, economic, social,
important inputs in the shaping of its sustainability strategy and approach to technological and regulatory factors that could have a bearing on the Bank’s
value creation. performance.
PLANNING CYCLE-5
The Bank has recently presented Planning Cycle-5 (PC-5), which will be in effect till FY 2022-23.
With ‘Scale with Sustainability’ as the core idea, the PC-5 strategy is defined by five broad themes.
MATERIALITY ASSESSMENT PROCESS PC-5 THEMES

Stakeholder
Define Define
A constantly evolving market dynamics and engagement
purpose and stakeholder
changing customer needs make it necessary for
scope groups Leapfrog Scaling up Investing in Conservative
for the Bank to strike a balance between prioritisation Fortifying
digital domains of new growth and robust
revenue generation, good governance, liabilities
banking expertise engines practices
stakeholder participation and larger
sustainability issues. In FY 2019-20, the Bank
undertook a materiality assessment that
helped it arrive on issues most material to its
Establish
performance and the interests of Identify PC-5, THE BANK BELIEVES, CAN SPUR CALIBRATED GROWTH
Assess impact materiality
its key stakeholders. potential
matrix GROWTH TARGETS
topics
<95% 5-10% <5% 45-50%

Credit to deposit ratio Certificates of deposits Unsecured retail Retail LCR deposits
MATERIALITY MATRIX
High
Stimulating diversity
Environmental risk
The Bank has identified 20 material issues and equality
>65% >15%
Responsible
No reportable asset-quality
associated with
which are of strategic relevance. The issues investment & financing Financial transactions
inclusion
are assessed based on two dimensions of the
impact of the issue on the business and the
Compliance &
corporate governance
Talent attraction
& retention PCR CRAR
divergence
IMPORTANCE TO STAKEHOLDERS
importance of the issues to the stakeholder Digitalisation Ethics, integrity

Climate & fair dealing
concerned. SociaI impact of
change products and services
Client data protection &
PC-5 HINGES ON FIVE STRATEGIC PRIORITIES
Supporting cyber security
communities Customer experience
Sharpening Scaling
Viable business model Retail Adding
corporate Holistic rural up areas
liabilities new growth
Management of social risk bank banking of domain
surge boosters
Environment footprint
of transactions
approach expertise
Human rights Underpinned by: • Digitisation • Sustainability

Environment compliance
Facilitate transition to a
sustainable-circular economy
Low
IMPACT ON BUSINESS Business strategy underpinned

by sustainability
Low Environment Social Governance High
• Sustainable finance • CSR
• Responsible banking • Sustainable operations
[GRI: 102-47] [GRI: 102-15]
• Human capital development • Governance
36 37
ESG Integration in Products and Services
The Bank’s ESG Commitments
As part of its commitment to sustainability, IndusInd Bank has forayed into SUSTAINABLE FINANCE LENDING VERTICALS
sustainable financing and has developed credit lines based on the ESG Particulars FY 2017-18 FY 2018-19 FY2019-20 FY 2020-21
performance of companies. Under this portfolio, the Bank provides loans and Green and climate finance Advances (` in crores) 2,493 4,194 5,381.73 4,400
credit facilities, with floating rates tied to the borrower’s ESG performance. Green and climate finance as % of Bank's Advances 1.72 2.25 2.6 2.07
Social, livelihood and inclusive finance Advances (` in crores) 49,009 72,079 81,438.14 91,730
Social, livelihood and inclusive finance as % of Bank's Advances 33.81 38.67 39.4 43.15
FINANCING CONNECTED WITH ESG PERFORMANCE OF COMPANIES Total advances (` in crores) 1,44,954 1,86,394 2,06,783 2,12,595
As a financial services provider, the Bank offers Specific targets have been set by the Bank along with Total ESG Lending 51,502 76,273 86,820 96,130
corporate and retail banking solutions that have an long-term sustainability commitments to adopt a ESG Lending as % of Bank's Advances 35.53 40.92 42 45.1
important role to play in addressing challenges in order systematic approach towards addressing ESG-linked
to facilitate the transition to a sustainable economy. global challenges. The identified material issues and * For FY 2020-21, the review and audit is underway and the final numbers are subject to change.
The Bank offers climate-friendly financing solutions and coherent stakeholder engagement processes have led
healthcare, education and affordable housing credit to the development of new revenue streams, advancing CORPORATE AND CONSUMER BANKING ESG EXPOSURE
among others. future risks and building trust among stakeholders. Corporate Banking Retail Banking
The Bank’s corporate governance systems include checks The Bank is not active in the asset management
and balances that ensure that the Board of Directors business and the wealth management vertical Particulars Monetary Value (₹ Crores) Particulars Monetary Value (₹ Crores)
has proper control and oversight to help generate constitutes less than 5% of the Bank’s total business. GCF Advances 4,400 GCF Advances 0
long-term financial returns and create positive societal Hence, ESG practices are integrated into our Corporate
impact. The Bank takes into consideration the associated and Retail banking verticals and Project Financing. SLIF Advances 18,086 SLIF Advances 73,643
risks and identifies the business opportunities linked to GCF & SLIF Corporate Total 22,486 GCF & SLIF Retail Total 73,643
Environmental, Social and Governance (ESG) factors. Corporate Advances 91,018 Retail Advances 1,21,577
*GCF is Green and climate finance
*SLIF is Social, livelihood and inclusive finance
PERCENTAGE ESG EXPOSURE

Corporate Retail Corporate Banking Retail Banking
Banking Banking
Particulars % Particulars %
GCF & SLIF Corporate Total as % of 25 GCF & SLIF Retail Total as % of Retail 61
Corporate Advances Advances
Social, Social, GCF & SLIF Corporate Total as % of 11 GCF & SLIF Retail Total as % of Bank's 35
Green and livelihood livelihood Bank's Total Advances Total Advances
climate finance and inclusive and inclusive GCF as % of Corporate Advances 5 GCF as % of Retail Advances 0
segments finance finance
SLIF as % of Corporate Advances 20 SLIF as % of Retail Advances 61
segments segments
*GCF is Green and climate finance
*SLIF is Social, livelihood and inclusive finance
Clean Green
Agribusiness Education Agribusiness Livelihood
Energy Buildings
(Retail-Agri Financing/
finance) Inclusive
Energy Water Sanitation Financing
Healthcare Impact NBFC
Efficiency and Hygiene (Microfinance,
Vehicle finance,
and Consumer
Renewable
Energy
Sustainable
Management
of Natural
Affordable
Housing
Livelihood
Financing/
Inclusive
banking)
45%
ESG-based credit lines out of total
Resources and Financing
credit/loan business of the Bank
Land Use
38 39
IndusInd Bank has established an ENVIRONMENT AND SOCIAL EVALUATION AND OUTCOME
DUE DILIGENCE
Environmental and Social Management The Bank has a zero-tolerance The outcome of the E&S evaluation may have potential
System (ESMS) to ensure investments policy for non-compliance The Bank has established Environmental and Social Risk
Management (ESMS) Policy to ensure our investments
gaps. Hence, the other applicable local environmental
and social laws, International Finance Corporation (IFC)
balance the triple bottom line and has and carries out diligence balance economic growth with socioeconomic Performance Standards are addressed by the borrower.
All corporate credit/lending clients are informed
identified key elements of sustainability to ensure that the projects sustainability. This safeguards the bank against credit
and reputational risks. ESMS evaluates our clients about ESG-related risks and opportunities and all the
and ESG. The Bank’s governing body have been approved by the on various parameters of ESG and assists to identify proposals are subjected to an exclusion check as the
risks. Implementation of the policy is carried out by first step while checking environmental and social risks.
and key stakeholders maintain an planning authorities of the our Relationship Managers who undergo rigorous IndusInd Bank strictly does not do business with any
oversight on the proper functioning State. Accordingly, relevant capacity building to appropriately assess all proposals, excluded entity.
identify gaps, and maintain transparent reporting
of the ESMS. compliances related to through the digital filing systems. The policy is
energy efficiency, wastewater governed at the macro level by key stakeholders
The Bank’s ESMS Policy draws from several international including board members, the business heads, and
frameworks, including the Principles of the UN Global
treatment and afforestation, the CEO. To convey ESG performance of the Bank, ESG
Compact (UNGC), UN Principles for Responsible among others, are checked targets for FY 2020-21 were announced in last fiscal
Investing (UNPRI), the International Standards year. These targets include among others, a special
Organisation (ISO) environment management
at the authority level as focus on our ESG portfolio. We have specific targets
guidelines, the Equator Principles and other applicable applicable under the respective to increase green lending portfolio and livelihoods
national regulations. supporting/social lending portfolio. Through this policy,
development the Bank has integrated Environment and Social Due
The Bank evaluates its clients’ proposals based on the
various ESG parameters and assesses the risks involved.
control regulations Diligence (ESDD) with the overall credit risk assessment
framework to identify underlying environmental and
The policy is reinforced by the Bank’s relationship
Social (E&S) risks.
managers, who undergo rigorous capacity-building
to appropriately assess all proposals, identify gaps
and maintain transparent reporting through the ESMS POLICY
digital-filing systems.
Align with external
stakeholders
(Investors, Multilateral
Agency lenders’
Practicing sustainably
requirements)
Promote Sustainable
Banking by adopting some
Managing the impact of internationally recognised
our investments (multilateral) lending
Understanding the standards
Environment & Social risks
present in our lending
portfolio Screening
proposals against Exclusion
list Identifying proposals
from the High Negative
Impact Industries
PROMOTING
ENVIRONMENT &
SOCIAL PRINCIPLES
Building capabilities Encouraging borrowers to
Building internal be more responsible and
capabilities to assess and sustainable - create an
mitigate Environment & understanding of E&S risk
Social (E&S) risks associated with
their operations
40 41
EXCLUSION LIST
TRANSMISSION LINE PROJECT 1
• Production or trade in any product or activity
deemed illegal
• Production or trade in substances that are The Bank decided to lend a project developer
internationally banned, including, but not limited for developing a transmission line project
to, wildlife products, products regulated under that would enable evacuation of electricity
Convention on International Trade in Endangered generated through renewable energy
Species (CITES) and illegal narcotics, among others sources to the demand site. During E&S risk
assessment it was found that the route of
• Gambling, casinos and equivalent enterprises
the transmission line was to pass through
• Production or trade in products involving forced the eco-sensitive zone of a bird sanctuary.
labour or harmful child labour The transmission lines might have a
negative impact on birds due to collisions
• Businesses owning factories or workplaces that have
and electrocutions. The IFC EHS Guidelines TRANSMISSION LINE PROJECT 2
inadequate safety mechanism when dealing with
suggest that transmission corridors should
known industrial carcinogens
be aligned to avoid such critical habitats or
In a transmission line project, some of the
• Businesses with a substantial stake in the ensure control measures to minimise avian
proposed transmission lines were to pass
porn industry and bat collisions.
through Forest Area measuring ~33% of the
• Production or trade in explosives and/or fireworks As a mitigation measure, IndusInd Bank total project length and wildlife sanctuary
primarily meant for non-industrial use and has put forward a suggestion asking the and an eco-sensitive zone measuring 4.0% of
production or trade in tobacco or any of its derivate developer to detour the project which would the total project length. The study carried out
products, including, but not limited to, cigarettes, steer clear of the eco-sensitive zone and the for alternate routes provided justification for
gutka, etc. bird sanctuary. The transmission line now the chosen route. It also highlighted the lack
includes a stretch of ~0.9% of total project of any economically viable alternate route
The Bank aligns its corporate banking including project length to pass through a wildlife sanctuary that can avoid bypassing the forest area and
finance business with the Equator Principles. We ensure and ~1.5% other forest area. As a caveat, eco-sensitive zone and wildlife sanctuary.
compliance with the Equator Principles (EP) and with the Bank decided to cap disbursement at Thus, a biodiversity impact assessment
other ESG frameworks through internal experts. certain levels unless timely wildlife and forest became imperative for the chosen route.
clearances were obtained by the company.
IndusInd Bank has therefore stipulated that
During FY 2020-21, 2 projects have been reviewed in
a Biodiversity Impact Assessment report
line with the Equator Principles by the Project
shall be obtained prior to disbursement.
Finance team. TRANSMISSION LINE PROJECT 3
Moreover, obtaining wild life clearances
was critical to the viability of the project.
Number of projects/deals reviewed: 2
Hence, obtaining the clearance and approvals One out of six elements of a transmission
on time were a part of the conditions line project was to pass through the wildlife
Number of projects/deals reviewed as percentage
stipulated at the time of sanction of the loan sanctuary an eco-sensitive zone and forest
of total projects/deals: 100
by the Bank. In case of any adverse impact on area measuring 10.03% of the project length.
viability of the project, the Bank also reserves There weren’t any economically viable
Number of projects/deals having reached
the right to withhold disbursement of the alternatives to avoid bypassing the wildlife
financial close: 2
facility at any time. area. Therefore, the Bank stipulated that the
developer ensure that the wildlife and forest
Number of projects/deals declined: 0’
clearances are obtained on a timely basis.
Consequently, the disbursement under the
facility was restricted to a lower debt-equity
ratio until all the forest and wildlife-related
approvals for the Project are in place
and LIF confirmation is obtained.
Further during the intital period, the Bank
also stipulated that the biodiversity
assessment report be made available to
availing subsequent disbursements.
42 43
ESG Targets and Performance

SOCIAL
Delivering on Sustainability Aspects Baseline

Targets for
FY 2020-21
Performance Dashboard
FY 2020-21
Target Status
Revised Target Year
and KPIs
Commitments
Social, Livelihood FY 2017-18: 45% of all loan Social, Livelihood and Inclusive Finance: Work-in- Target year: FY
and Inclusive 33.8% (Audited FY 2018-19: 38.7% (Audited by E&Y) progress, target 2022-23
Finance Portfolio by E&Y) FY 2019-20: 39.4% (Audited by E&Y) yet to be audited Social, Livelihood and
FY 2020-21: 43.15% (Audit underway) Inclusive Finance @
41.5%
The Bank’s specific ESG targets drive its focus towards green lending, Women’s FY 2017-18: Expand to 22% Women Employees in workforce: Work-in- Target year: FY
Participation 18.68% FY 2018-19: 18.26% (Audited by KPMG) progress, 2022-23
generation of sustainable livelihoods, and social lending. Yearly progress in Workforce FY 2019-20: 18.26% (Audited by KPMG) target yet to be Women’s
is monitored and reported to all the stakeholders. FY 2020-21: 18.64%
(Audit underway by Deloitte)
achieved participation in
workforce @22%
Employee Internal Employee Employee Engagement: Work-in- Target year: FY

Engagement initiatives engagement Employee Engagement Score survey progress, 2022-23
with external exercise planned target yet to be Achieving employee
benchmarking achieved engagement score
with external
benchmarking
Participation FY 2017- In addition: Employee Volunteering: Work-in- Target year: FY

in Community and 18: Green Bank-wide FY 2018-19: 2,458 hours of volunteering progress, 2022-23
Outreach Champions volunteering of by 350 employees target yet to be Volunteering
Activity Programme 10 hr/staff and FY 2019-20: 7,292 hours of volunteering achieved strategy being
e-learning (on by ~1400 employees revised considering
sustainability) FY 2020-21: 1,470 hours of volunteering COVID-19 pandemic.
by 213 employees Target setting under
Restrictions to conduct pre-defined progress
activities due to COVID-19 pandemic
ENVIRONMENT
GOVERNANCE
Targets for Performance Dashboard Revised Target Year
Aspects Baseline Target Status Targets for Performance Dashboard Revised Target Year
FY 2020-21 FY 2020-21 and KPIs Aspects Baseline Target Status
FY 2020-21 FY 2020-21 and KPIs
Green and FY 2017-18: 5% of loans Green and Climate Finance: Work-in-progress, Target year: FY 2022-23
Corporate Did not Corporate Corporate Governance: Work-in- Target year: FY
Climate Finance 1.72% (Audited through FY 2018-19: 2.25% (Audited by E&Y) target yet to be Green and Climate
Governance Score participate governance score FY 2019-20: Conducted internal progress, 2022-23
Portfolio by E&Y) distinctive FY 2019-20: 2.6% achieved Finance @ 3.5%
Rating in a leadership evaluation target yet to be Corporate
lending themes (Audited by E&Y)
category FY 2020-21: External evaluation for achieved governance score in a
FY 2020-21: 2.07% (Audit underway)
rating underway leadership category
GHG Emissions FY 2017-18: 5.2 15% reduction in Reduction in carbon intensity: Target achieved Target year: FY 2024-25
ESMS Lending ESMS filters Expand ESMS FY 2019-20: Conducted external Work-in- Target year: FY
Intensity CO2 / Revenue carbon intensity FY 2018-19: 12% reduction over baseline 50% reduction over
Filters implemented to cover all assurance by third party -Environment progress, 2022-23
and E-footprint Cr (CO2 /Cr revenue) (4.6 MTCO2e/ Revenue Cr) baseline (1.9 MTCO2e /
corporate loans Resource Management target yet to be Expand ESMS to
FY 2019-20: 27% reduction over baseline Revenue Cr)
with external FY 2020-21: 91% corporate loans achieved cover all corporate
(3.8 MTCO2e / Revenue Cr) Baseline Year:
assurance covered under ESMS. loans
FY 2020-21: 38% reduction over baseline FY 2019-20
(3.24 MTCO2e / Revenue Cr) 3.8 MTCO2e / ESG Disclosure Integrated Have external Integrated Report: Work-in- Target year: FY
Revenue Cr and Integrated Report accredited FY 2018-19: Integrated Report and ESG progress, 2022-23
Reporting published but agencies verify KPIs externally assured by KPMG target yet to be Integrated Annual
no ESG/integrated FY 2019-20: Integrated Report and ESG achieved Report with external
Participation Carbon Maintain Carbon Disclosure Project Rating: Target achieved Target year: FY 2022-23
external reports and KPIs externally assured by KPMG assurance
in ESG Indices Disclosure A-Rating or FY 2018-19: A- Rating Maintain highest rating
assurance disclosures FY 2020-21: External assurance
Project Rating higher in CDP FY 2019-20: A rating
FY 2017-18: A- FY 2020-21: Response submitted and
of Integrated report and ESG KPIs
underway by Deloitte
Rating results awaited
Formulation Internal External Formulated ESG policies: Work-in- Target year: FY
Dow Jones Submit to DJSI Dow Jones Sustainability Index Score: Work-in-progress, Target year: FY 2022-23
Sustainability with a score >70 FY 2018-19: 55 score target yet to be Achieve DJSI Score >79 and Compliance disclosures disclosures of Sustainability Policy (externally disclosed) progress, 2022-23
Index Score FY 2019-20: 64 score achieved to ESG Policies ESG policies Anti-corruption and Anti-Bribery Policy target yet to be External disclosure of
FY 2017-18: 50 FY 2020-21: Response submitted and and CDP Program Sustainable Procurement Policy achieved ESG policies:
score results awaited Human Rights, Diversity and Inclusion Anti-corruption and
Policy Anti-Bribery Policy
Sustainable Some vendors 80% of vendors ESG Compliant Vendors: Work-in-progress, Target year: FY 2022-23 ESMS policy (externally disclosed) Sustainable
Procurement exhibit have ESG policies 45% of vendors by procurement spend target yet to be 80% of vendors have Workforce Health & Safety Policy Procurement Policy
in Supply Chain sustainability in place; vendor ESG compliant. Audited by third party- achieved ESG policies in place (externally disclosed) Human Rights,
practices sustainability DQS. CSR policy (externally disclosed) Diversity and
assessments in Set internal processes to monitor the Inclusion Policy
place compliance of these policies.
44 45
Highlights
The bank’s environmental
agenda is aimed at maximising 13.75%
Decrease in paper
5,251.60 MW
Electricity saved through
resource optimisation while emissions as compared numerous energy
to FY 2019-20 efficiency initiatives
enabling positive impact on the
environment and society. 9.26%
Decrease in GHG Emissions
33,497 kg
E-waste recycled
(Scope 1 and 2) as compared through authorised
to FY 2019-20 vendors
92.4%
Decrease in cumulative
emissions from business travel
as compared to FY 2019-20
ENVIRONMENT IN THIS SECTION
PRESERVATION
Green Financing 48
Resource Management 50
Aligning with TCFD 56
Recommendations
Green Financing
Making Investments
that Count
Aligning with the global concern on climate change, the Bank has spread
its verticals across green and climate investing projects and is focused
on reducing domestic greenhouse gas emissions. The Bank’s PC-5
strategy, themed ‘Scale with Sustainability’, is based on the
understanding that success means not only excelling commercially
but also acting sustainably.
The Bank believes green financing can GREEN BUILDINGS

support and help accelerate the transition to To promote initiatives towards sustainability, the Bank
also provides financing for retrofitting/replacement
a low-carbon economy by increasing financial in existing buildings so that they become eligible
flow towards organisations specifically for eco-certifications. It also finances real estate
developers who directly provide products/services for
focused on green activities and that these infrastructure projects with certifications such as LEED/
investments will advance innovative carbon- GRIHA/IGBC or equivalent certification.
efficient technologies and supply-chains. ENERGY EFFICIENCY (EE)
Projects including retrofitting replacement for reducing
The Bank is actively increasing its green and energy consumption, industrial EE improvement, EE in GREEN INFRASTRUCTURE FINANCE
climate finance portfolio through sectors that commercial buildings, municipal projects, residential
buildings, agricultural equipment and transportation Particulars Monetary Value (₹)
will positively impact the environment. as well as manufacturing of energy-efficient products Total value of green and sustainable infrastructure projects financed 43,87,25,00,000
approved by the Bureau of Energy Efficiency (BEE).
RENEWABLE ENERGY Total value of infrastructure finance 69,74,59,33,000
IndusInd Bank is geared up to finance renewable WASH (WATER, SANITATION AND HYGIENE)
energy projects in India as a means to contribute PROGRAMME
towards the national agenda of installing at least 9%
of generation capacity through wind and solar energy
– a commitment within India’s Intended Nationally
The Bank provides basic sanitation and safe drinking
water under this programme and Sewage Treatment
62.9%
Plants (STPs), industrial and municipal wastewater Green/Sustainable infrastructure
Determined Contributions (INDC) towards the Paris
treatment plants, water management/treatment finance versus total value of
Climate Change Agreement.
projects, distribution, desalination are also setup. infrastructure finance
As on March 31, 2021, the Bank sanctioned credit
of ₹17,251.1 crores for setting up renewable energy CLEAN ENERGY * Products categories included: Renewable Energy, Energy Efficiency, Green Buildings, Clean Energy, Water, Sanitation & Hygiene
projects of 4568.02 MW capacity since 2015.
Energy sources such as waste-to-energy, clean-coal
These projects include solar, wind, biomass or biogas
technology, natural gas for industrial or transportation GREEN AND CLIMATE FINANCE
and small hydro projects, renewable energy products
or domestic applications and electric mobility form a
and renewable energy production/transmission and Particulars Outstanding Exposure (₹ crores)
part of clean energy.
distribution.
Renewable Energy 2,840
Energy Efficiency 150
Green Buildings 1,161
Clean Energy 74
Water, Sanitation & Hygiene 162
Sustainable Management of Natural Resources and Land Use 13
Total 4,400
The Bank’s focus on green and climate finance is limited to the corporate banking vertical, with
the low-carbon products forming 3.2% of the corporate banking loan book, while products
that avoided emissions for third-parties account for 1.6% of the corporate banking loan book.
48 49
Resource Management
Reducing the Bank’s Energy Efficiency
Environment Footprint
The Bank is progressively decarbonising its operations with the following initiatives for ensuring energy
efficiency:
• Sourcing electricity for operations from renewable sources, including solar, wind and hydropower
• Incorporation of energy-efficient technologies with certified energy-efficient and low-carbon
equipment and systems into offices and branch building design
IndusInd Bank makes every possible effort to decarbonise its own operations.
• Regular upgradation of hardware, deployment of new technologies, and streamlining
The Bank reports environmental indicators such as electricity use, energy use, IT operations as part of the ‘Green IT’ vision
GHG emissions, paper waste and e-waste for 100% of its operations. • Regular auditing of energy costs to identify gaps and initiate long-term solutions
• Promoting awareness on energy conservation among employees. Workshops are conducted for
Environment Focus Areas
employees to increase awareness on energy conservation and sustainability.
Energy
₹48.44 Cr
Efficiency Total cost of energy FY 2020-21
(Fuel + Electricity)
ENERGY CONSUMPTION
The Bank considers climate change to be the
most pertinent issue of our times and has Particulars FY2016-17 FY2017-18 FY2018-19 FY2019-20 FY2020-21
put in place comprehensive strategies for
Resource Emissions Waste Source of
Type of energy (MWh) (GJ) (MWh) (GJ) (MWh) (GJ) (MWh) (GJ) (MWh) (GJ)
reducing its carbon footprint: Energy
Conservation Mitigation Management
Non- Direct Energy
• Measuring, monitoring, and reducing Renewable
Diesel 13,485.21 48,546.76 11,426.04 41,133.74 11,187.97 40,276.69 10,857.55 39,088.27 6,692.91 24,095.14
GHG emissions associated with its
operations across India Petrol 503.68 1,813.25 304.23 1,095.23 222.25 800.10 190.34 685.23 131.56 473.61
• Transforming its operations to achieve CNG 3.11 11.20 - - - - - - - -
carbon neutrality over the long term
• Investing in renewables and Total 13,992.00 50,371.20 11,730.27 42,228.97 11,410.22 41,076.79 11,047.88 39,773.50 6,824.46 24,568.75
Water
energy-efficient solutions for meeting
Management Indirect Energy (Electricity) 62,032.21 2,23,315.96 70,588.81 2,54,119.72 74,076.87 2,66,676.51 76,132.20 2,74,083.65 73,037.88 2,62,943.73
its energy requirements
Total 76,024.21 2,73,687.16 82,319.08 2,96,348.69 85,487.09 3,07,753.30 87,180.10 3,13,857.15 79,862.34 2,87,512.48
• Divesting from fossil fuel interests
• Educating its employees on climate Renewable Solar 255.26 918.94 245.28 883.01 255.80 920.88 252.40 908.67 234.77 845.20
change and encouraging them to be Total 76,279.47 2,74,606.10 82,564.36 2,97,231.70 85,742.89 3,08,674.18 87,432.50 3,14,765.81 80,097.11 2,88,357.68
partners in the implementation of its
8.39% mitigation strategies
The Bank measures and monitors its carbon
Decrease in energy RENEWABLE ENERGY ENERGY CONSUMPTION PATTERN
footprint covering all its businesses and
consumption as compared
operations in India, annually, as per the In FY 2020-21, renewable energy consumption Energy consumption (EC) for FY 2020-21 (%)
to FY 2019-20
GHG Protocol and the ISO 14064 standard, was 2,34,774 kWh. The largest contributor to the
verified externally by an independent third Bank’s carbon footprint is purchased electricity,
2,34,774 kWh party. Limited assurance (as per the ISAE 3410
Assurance standard) is provided on GHG data.
The Bank has also implemented a climate
which accounts for more than 91.19% of the
total GHG emissions. The Bank has implemented
various initiatives to utilise solar energy in its
Solar energy consumed 8.36
change mitigation strategy to reduce its GHG operations, such as solar-powered ATMs.
in FY 2020-21
emissions. It reports environmental indicators 0.29
such as electricity use, energy use, GHG 0.16
7.16% emissions, paper waste and e-waste for

its entire operations.
Decrease in total electricity 91.19
ENVIRONMENT COMPLIANCE
emissions as compared to FY 2019-20
The Bank complies with all applicable
environment protection laws and
193.62 MTCO2e regulations. In FY 2020-21, there were no
fines or non-monetary sanctions due to
Non-renewable indirect energy (Electricity)
Non-renewable direct energy (Diesel)
Emissions saved through non-compliance with environmental laws
Renewable energy
deploying solar energy and regulations.
Non-renewable direct energy (Petrol)
[GRI: 307-1] [GRI: 302-1]
50 51
Resource Management
Emission Mitigation FY 2020-21 (MTCO2e) (%)
After surpassing its emissions intensity target of 4.4 MTCO2e/revenue (₹ crores) by 2021, the Bank EMISSION SUMMARY SCOPE 1 EMISSIONS SCOPE 2 EMISSIONS SCOPE 3 EMISSIONS
has taken new target of 50% reduction over FY 2019-20 baseline of 3.8 MTCO2e/Revenue crore by FY
2024-25. Currently the emissions intensity for the Bank is 3.3 MTCO2e/Revenue crore. The Bank also 8 11 12 7 2
16
plans to reduce its absolute emissions by 50% by FY 2030-31.
13
21 39
STEPS TO REDUCE EMISSIONS

17
Measuring, monitoring, and Transforming its operations to Investing in renewables for 71 88
reducing GHG emissions achieve carbon neutrality over meeting its energy requirements 73
22
associated with its operations the long term and in energy-efficient solutions
Scope 1 Company Cars Electricity Paper
across India and divesting from fossil fuel
Scope 2 Generator Sets (Offices & Branches) Work from Home
interests
Scope 3 Refrigerant Leaks Off-site ATMs Business Travel
(HVAC) Transactional ATMs
Fire Extinguisher <1 Data Centres
ABSOLUTE EMISSIONS (MTCO2e) Employee Commute
Particulars FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21
Direct GHG Scope 1 5,937.57 5,777.29 5,299.38 8,831.60 6,698.02

Indirect GHG Scope 2 51,141.22 57,801.92 60,907.97 62,785.67 58,290.04
OPERATIONAL EFFICIENCY INITIATIVES ENERGY EFFICIENCY INITIATIVES
Total (Scope 1+2) 57,078.79 63,579.21 66,207.35 71,617.26 64,988.06
The Bank has implemented Emission Reduction Particulars Electricity saved Emissions saved
Scope 3 5,131.66 5,797.56 15,298.30 13,927.40 17,039.28 Initiatives namely timers installed at signages,
deployment of thin clients and virtual servers. The Bank Units kWh MTCO2e
Grand Total 62,210.45 69,376.77 81,505.65 85,544.66 82,027.34
has deployed 147 thin clients this year. The per-unit Thin clients 41,836.47 34.5
cost of a thin client is less than the cost of a standard
EMISSIONS INTENSITY computer and also the electricity consumption is also Virtual servers 31,82,560.76 2,624.63
less. The Bank installed 102 timers in our signages. Timers 1,56,600 129.15
Particulars FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 These help reduce electricity consumption in our
Specific GHG Emissions (Scope 1+2) per branches and offices. The Bank has continued its Energy Optimisation Project 5,77,517.45 476.27
5.6 5.2 4.6 3.77 3.24 investment in virtual servers as a means of reducing
revenue crore (`) Optimisation of AC Power
12,93,089.45 1,066.4
Specific GHG Emissions (Scope 1+2) energy costs and improving efficiency this financial Consumption
2.25 2.51 2.39 2.33 2.19 year. This year the Bank has virtualised 553 servers.
per FTE Total 52,51,604.13 4,330.95
These initiatives not only help in cost reduction as a
result of reduced electricity consumption but also help
SCOPE 3 EMISSIONS OVERVIEW (MTCO2e) RENEWABLE ENERGY (SOLAR)
reduce the carbon footprint of the Bank and thus, help
Particulars FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21
in climate change mitigation. The total emission savings Electricity
Particulars Emissions avoided
through these initiatives are 2,788.28 MTCO2e. generated
Paper 3,013.43 3,562.91 9,060.16 7,619.53 6,571.54
Moreover, the Bank has implemented energy Units kWh MTCO2e
Employee commute 184.61 239.59 273.60 479.83 328.74 optimisation devices at its facilities to reduce electricity Solar energy generated at
34,051 28.08
consumption and thus reduce Scope 2 emissions. Karapakkam facility, Chennai
Business Travel Total 1,933.61 1,995.06 2,413.58 1,226.65 93.13
The project involves the installation of power factor Solar energy generated at IBL
9,923 8.18
CFD-Reimbursment and IBL Car Hire - - 119.54 653.33 2,857.16 (PF) correction systems to help improve energy House, Mumbai
efficiency. IndusInd Bank has installed power-saving Solar ATMs 1,90,800 157.35
Hotel stays - - 67.55 156.51 103.05
devices in some of its HVAC systems to reduce
Data centre - - 1,018.74 1,182.57 1,237.55 energy consumption. Currently, this project has been Total 2,34,774 193.61
implemented in 92 branches/offices. This device has
Transaction-based offsite ATMs - - 2,345.14 2,608.99 2,188.15
sensors for starting and switching off the ACs and also ENERGY EFFICIENCY INVESTMENTS
Work from Home - - - - 3,659.96 for monitoring the ambient temperature.
Particulars Monetary Value (₹)
Total 5,131.66 5,797.56 15,298.31 13,927.41 17,039.29 Thin clients 85,92,000
Refer to the GHG Assurance Statement here.
Virtual servers 3,55,00,000
*Data Center Emissions have been revised for last two years (FY 2018-19 and FY 2019-20). The error occurred due to misinterpretation of data centres managed and controlled
by data centre vendors. We have rectified the errors and revised the accounting methodology. The data has been revised retrospectively leading to an increase in the overall Timers 5,05,512
Scope 3 emissions.
Energy Optimisation Project 82,73,727
Total 5,28,71,239
[GRI: 305-1, 305-2, 305-3, 305-4] [GRI: 305-1, 305-2, 305-3]
52 53
Resource Management
Waste Management Resource Conservation TOTAL NUMBER OF TREES PLANTED
Aligning with government regulations, the Bank is

following a sustainable approach to managing waste.
GREEN BUILDINGS
The Bank is actively converting its buildings into
56,000
Waste generation at the Bank comprises electronic and
efficient green buildings. The Bank plans to make all the
paper waste. Also, the Bank has started consuming
Pioneer branches plastic-free, solar powered and obtain
recyclable paper and reducing the use of paper in its
a green building certification.
56,000
59,000
operations by going digital.
Waste segregation bins have been placed in the
pantries of corporate offices and dry waste is sent for
LEED Gold certified
8,557
recycling while wet waste at a few facilities is converted Palm Spring office at Gurgaon
25,861
into compost. During FY 2020-21, no shredded paper
3,582
from disposal of Bank’s old records stored with the
Record Management Agencies took place on account
of COVID-19 lockdowns. Also, on account of COVID-19,
LEED Platinum certified
the procurement of newspapers/magazines was IBL House in Mumbai
terminated. The Bank recycles electronic waste through
authorised e-waste vendors.
LEED Gold rating certified
33,497 kgs Karapakkam office in Chennai
FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21
Of e-waste recycled
The Bank has set out to certify its facilities for

CARBON SEQUESTRATION
ISO 14001. This will help map out a framework
In association with the Centre for Environmental and setup an effective environmental
Research & Education (CERE), the Bank has achieved the management system which would include
Water Conservation following: climate change aspects as well. The project
will be carried out in a phased manner
The Bank’s water consumption is limited to the use
• Planted 56,000 trees in and around major cities covering a selected number of locations
of water at its offices; it is working to minimise its
such as Delhi, Noida, Gurgaon, Hyderabad, Kolkata, on an annual basis.
consumption of water.
Nagpur, Nashik, Pune, Aurangabad, Bengaluru,
Chennai and Mumbai
• Washbasin taps have been installed with Aerator
• Carbon Sequestration Potential (CSP) of 11,464.56 MT
sprinkler filters that help save ~2,500 litres per device
of carbon dioxide in FY 2020-21
per day
• It achieved a tree survival rate of greater than 92% as
• Male urinals are fitted with bio-blocks, which work as
only native species are planted
a replacement of water flushes converting existing
flush-based urinals into a completely waterless
system. Thus, ~3 litres of water is saved per flush
3,28,347.27 Kl/annum
Total water used
[GRI: 303-1, 303-3, 306-2]
54 55
Aligning with TCFD Recommendations
Progressing towards Mitigation

of Climate Change
IndusInd Bank recognises the significance of risks emerging from and related to RISK MANAGEMENT COMMITTEE ESMS COMMITTEE
climate change. The Bank perceives climate risk as a material issue and has made The Risk Management Committee (RMC) comprises The Bank has recently instituted the Environment and
of several committees including the Operational Risk Social Management System (ESMS) Committee, which
progress in identifying, assessing and managing this risk. In aligning with the Management Committee, Credit Risk Committee and reviews and monitors the implementation of the ESMS
TCFD framework, the Bank is progressing towards mitigating climate change. the Market Risk Management Committee. The RMC function within the Bank. ESMS is responsible for
reports directly to the Bank’s Board of Directors. assessing environmental and social risk arising from
The RMC monitors and manages risks and opportunities the Bank's investments. The system also includes an
within the investments of the Bank and considers exclusion list that protects the Bank from investing in
India’s is already witnessing erratic rainfall patterns, environmental risk while determining the overall risk of specific industries that carry an extremely high social
heatwaves and droughts. These extreme weather
Governance the investments and operations of the Bank itself. or environmental impact. The risk profile considered
events driven by climate change pose concerns for the through the policy includes risks associated with global
HOW INDUSIND BANK HAS EMBEDDED The Enterprise-wide Risk Management Department is
Bank across its operating locations. The Bank identifies warming and climate change.
CLIMATE IN ITS GOVERNANCE STRUCTURE responsible for managing, monitoring, and mitigating
its financial implications with respect to climate risk
various risks which reduces volatility in the Bank’s
and is striving to align its initiatives with and progress CSR & SUSTAINABILITY COMMITTEE
earnings and enhances shareholder value. The specific
towards the TCFD recommendations. This would further
responsibilities of the risk department include the This committee reviews and evaluates the sustainability
assist the Bank in carrying out a scenario analysis and
TCFD’s Recommended Disclosure following actions and monitoring processes: strategy of the Bank and provides an industry
developing a robust mechanism in order to be able
Board oversight of climate-related risks and perspective on the sustainability agenda of the Bank,
to respond to any such climate related issues in the
opportunities Management role in assessing • Recommending to the Board the methodology to including climate change. This includes evaluating
future. The Bank is in the process of integrating the
and managing climate-related risks be followed for managing risk such as allocation of the Bank's response to climate change through its
TCFD framework in its risk management, planing to fully
and opportunities capital for credit risk and operational changes at the operations and assessing the Bank's performance
integrate it by 2023.
Bank-wide level to mitigate operational risk including against its ESG targets. The CSR & Sustainability
The Bank has implemented several measures and has regulatory, transitional and physical risks posed Committee is comprised of members of the Board
contributed towards the TCFD Framework. by climate change including the MD and CEO of the Bank.
The management overview for Climate Change, below • Monitoring the progress of the Bank’s compliance
the level of the Board, is provided by the Head of with RBI guidelines for operations and BASEL SUSTAINABILITY COUNCIL
Corporate Investment and Sustainable Banking (Head recommendations with respect to credit
The Sustainability Council is responsible for the
– CISB) at IndusInd Bank. At a functional level, the risk management
Bank's sustainability strategy, goals and performance.
Governance Sustainability department is responsible for addressing • Reviewing the risk involved in lending
It helps align the Bank's sustainability policies with the
climate-related risks and opportunities and is directly to new segments
operations of the Bank's business units. The Council
under the supervision of the Head – CISB, who has an • Stress testing the credit portfolio to gauge the
also reviews the Bank's compliance with respect to
oversight over climate change related issues and drives impact of unforeseen but plausible events on the
sustainability and climate change. The Sustainability
the ESG targets as well as the Bank's climate change Bank’s profitability and capital adequacy
Strategy Council is headed by the MD and CEO of the Bank and
mitigation activities. The Head of Sustainable Banking is
Risks and Opportunities associated with environmental reports to the CSR & Sustainability Committee.
also present on the Bank’s ESMS committee and is thus
and social issues along with climate change are
is responsible for the integration of climate change risk
considered within these broader risk categories.
into the Bank’s business activities.
Risk The Bank also has integrated Environment and Social
Management The Head – CISB is responsible for appraising and due diligence (ESDD) into the overall credit risk
reviewing climate-related policies, projects and assessment framework.
performance as executed by the Sustainability
department and is also responsible for presenting
the budget for climate-related activities to the CSR
Metrics & Sustainability Committee. These activities are
and monitored by the Head – CISB through the course of
Targets the year and are presented to the top management
including the MD & CEO quarterly during the meetings
of the Sustainability Council.
TCFD Framework Structure
56 57
Strategy Risk Management DISTRIBUTION OF FUNDS IN ELEVATED RISK Initiative #1

SECTORS
BANK’S LOANS AND ADVANCES
ENABLING A SMOOTH SHIFT TOWARDS MANAGING RISKS ASSOCIATED WITH Sectors Fund Based Exposure (` in million)
A RISK-FREE ENVIRONMENT CLIMATE CHANGE Airlines 4,244 As part of the renewable Energy Global Investors Meet
Agriculture 3,57,319* (Outstanding Exposure) and Expo (RE-Invest) in March 2015 the Bank also made
Automobile 6,13,130* (Outstanding Exposure – Vehicle a commitment to Ministry of New and Renewable
loans) Energy to finance 2 GW of renewable energy projects
TCFD’s Recommended Disclosure TCFD’s Recommended Disclosure
Construction 39,228 in 5 years.
Climate-related risks and opportunities (short, How the Bank identifies, assesses and manages
medium, and long term) and impact climate-related risks, what is the process of Coal 2 Initiative #2
on strategy and financial planning. doing it. How this is integrated into overall Chemicals 18,091
Resilience of strategy under different risk management Mining 10,817 BANK’S INVESTMENTS AND PARTNERSHIPS
climate-related scenarios Oil and Gas 22
The Bank is increasing its Green and Climate Finance
Power 76,069
portfolio through sectors such as Renewable Energy,
Shipping 10,012
One of the core focus areas of PC5 (Planning Cycle IndusInd Bank has started to use some aspects of Clean Energy, Energy Efficiency, Green Buildings Water
Steel 62,477
5: 2021-2024) is the mainstreaming of sustainability scenario analysis to forecast potential changes in the and Sanitation, Alternate Fuels and others. The Bank has
in business and across the Bank's operations. Bank’s business and operations. These scenarios are Transportation 1,125 committed to increase its Green and Climate Finance
The key elements of sustainability include 'Sustainable assessed through our risk mechanisms and by the senior and has set a target of increasing the portfolio size of
Operations', 'Good Governance', 'Responsible Banking', leadership of the Bank. The scope of our assessment CLIMATE-RELATED TRANSITION RISKS this sector from 1% in 2018 to 3.5% by the end of 2023.
'Sustainable Finance', 'Human Capital Development,' includes our own operations and our downstream Currently Green and Climate Finance accounts for
As part of commitments made within India’s Intended
‘Sustainable Procurement’ and 'Social Responsibility; activities and clients. almost 2.6% of our portfolio.
Nationally Determined Contributions, including the
and climate change is integrated into these elements.
The banking industry has always dealt with a plethora following, that are likely to impact the Bank’s operations The guidelines and standards for charging infrastructure
The Bank has committed to climate change-related
of risks. In order to keep the business viable, it is and business strategy: for electric vehicles were issued by the Ministry of
targets for these elements which are actively monitored
necessary for the Bank to identify, assess and manage Power, Government of India in 2018 to promote the
by the Sustainability Council.
these risks. The most pressing issue of today’s day and • To reduce the emissions intensity of its GDP by 33 to adoption of electric vehicles. The government has also
age is climate change. Climate risks pose a serious 35% by 2030 from 2005 level notified the second phase of the Faster Adoption and
Climate change is expected to have several
threat to the banking business and it can be categorised • To achieve about 40% cumulative electric power Manufacturing of (Hybrid) Electric Vehicles (FAME)
negative impacts on businesses and livelihoods;
broadly into transition and physical risks. These risks installed capacity from non-fossil fuel-based energy scheme to encourage faster adoption of electric and
hence the Bank has included it as a parameter to
can be monitored over different timescales of short, resources by 2030 hybrid vehicles. While these regulations/schemes will
focus on reducing its carbon footprint. The bank
medium and long term, depending on the nature • To create an additional carbon sink of 2.5 to 3 billion help in addressing the issue of environmental pollution,
recognises that climate change will directly impact
of impact. tonnes of CO2 equivalent through additional forest climate change and fuel security, they will cause a
its business through physical impacts on its assets
and tree cover by 2030 disruptive change in the automobile industry.
and employees and indirect impacts on its business;
• To better adapt to climate change by enhancing
such as, the risks posed by climate change in the Vehicle finance forms 29% of the Bank’s loan book in
investments in development programmes in sectors
agricultural sector in which the bank is expanding Transition Risk Short term FY 2020-21 (Outstanding loans being ₹61,313 crores).
vulnerable to climate change, particularly agriculture,
its presence and opportunities for new business in 0-1 year Emerging regulations for the mobility sector will pose
Policy, regulatory and legal changes water resources, Himalayan region, coastal regions,
the renewable energy sector. risks as well as opportunities for the Bank in the coming
health and disaster management
Technology shifts years. New regulations related to energy conservation
INDCs showcases a clear scenario of significant increase rules in building construction and the construction of
Changing market demand
in the market for renewable energy and other energy disaster-resilient buildings are affecting the real estate
and reputation
efficiency activities, while also promoting development sector, thus increasing the Bank's exposure in this
and adaptation in the priority sector (rural, agriculture, sector. Compliance readiness with these regulations
water etc) using financial instruments. amongst the Bank’s clients then forms a part of its risk
Physical Risk Medium term
assessment process.
1-5 years The Bank has started to account for these scenarios
Acute – Extreme weather events
through its risk assessment frameworks. The focus The Bank is also empanelled with government bodies
Chronic – Shifts in climate patterns Long term of INDCs informs the Bank’s business strategy and such as BEE and SIDBI under partial risk sharing facility
over a long term 5-30 years has led to an increased focus on green and climate for energy efficiency projects. Additionally, in 2019,
financing particularly the renewable energy, energy the Bank signed a $50 million risk sharing guarantee
efficiency, clean energy, green buildings, water and with USAID to increase its portfolio in water, sanitation
sanitation sectors across the short, medium and long and hygiene sector. Proposals funded under WaSH
term. Sectors impacted by this risk are coal mining, coal include water and wastewater treatment projects,
power, oil and gas. infrastructure for basic sanitation and distribution of
safe drinking water and other projects that ensure
accessibility, drinkability, and security of water -
4,568 MW activities that are essential for climate adaptation.
Moreover, the Bank is instrumental in financing several
Renewable energy projects setup projects in Public Private Partnership (PPP) mode under
with a credit of `17,251 crores the National Clean Ganga Mission (NCGM) run by the
central government.
58 59
Initiative #3
BANK’S OPERATIONS
₹73,78,839 Lakhs Initiative #2
BANK’S OPERATIONS
CLIMATE-REALTED OPPORTUNITIES FOR
INDUSIND BANK
The Bank’s outstanding exposure to Sector Opportunities
After surpassing its Emissions Intensity target of 4.4 agriculture, infrastructure and The Bank has an Operational Risk Management (ORM)
Financing projects with energy efficient irrigation
MTCO2e/revenue(₹ crores) by 2021, the Bank has taken real estate in FY 2020-21 Framework which assesses the risk of incurring loss
Agriculture systems that deploy new technology to ensure
new target of 50% reduction over FY 2019-20 baseline due to a failure of systems, technology, processes, food security such as hydroponics
of 3.8 MTCO2e/Revenue crore by FY 2024-25. The Bank employees, projects, natural disasters, external factors,
is determined to mitigate climate change impact by Chronic physical risks are also included in the Credit frauds etc. While not specifically stated, this also Financing green buildings and retrofitting energy
Construction
deploying climate strategy to invest in eco-friendly Risk Assessment process as they may impact the Bank's encompasses risks arising from the physical impacts efficiency products in old buildings
projects as below: clients, particularly in the infrastructure and agricultural of climate change on its assets and employees.
Developing infrastructure to support roads,
sectors. In the agricultural sector particularly, long-term Damage from flooding and extreme weather events
reening IT system – server virtualisation and
G Infrastructure highways, metros, BRT, smart electricity grids and
impacts of climate change such as sea-level rise, to the Bank's infrastructure and technological assets
installation of thin clients and timers EV charging infrastructure
prolonged drought and water scarcity affect the is an ongoing cause of concern for the Bank. The Bank
reening infrastructure – green building certification
G livelihoods of farmers. In such circumstances, many recognises that these occurrences are likely to increase Oil and Gas Funding projects for sourcing carbon neutral oil
achieved for the Bank’s facilities, retrofitting with farmers default on loans causing financial risks to Banks. with climate change and has put in place adaptive
Increasing portfolios for renewable energy, energy
energy efficient devices in ACs and Electric metres as The Bank considers such risks during its Credit Risk measures. A specific example of such an adaptive Power
efficiency services and clean energy
well as LED lights and sensors Assessment process and also offers loans for income measure is the implementation of a Business Continuity
through non-farm activities as alternatives to make the Plan wherein critical activities have been identified and Increasing portfolios for low-carbon and energy
Waste management – recycling of e-waste Transport
farmers more resilient to climate change. recovery plans have been put in place in the event of a efficient transport services
hifting to renewable energy – Installed solar ATMs
S crisis. Climate change-related extreme weather events
In FY 2020-21, the retail agriculture vertical of the
and rooftop at the Bank’s facilities like floods and cyclones pose a direct threat to the
Bank witnessed a steady growth of approximately
Bank's operations and employees, in terms of damage
Metrics and Targets
Virtual meetings – promoting the concept of online 14% with an expansion into new rural and semi-urban
to physical assets, infrastructure and employee travel
meetings, which has resulted in a decrease in emissions locations by funding over 2,200 applications under the HOW IS THE BANK MEASURING ITS TARGETS
and health. In the event of an extreme weather event
from Business Travel by 92.25% and Hotel Stays Kisan Credit Card (KCC) scheme across 532 designated AND ACHIEVEMENTS
(e.g. floods), the financial implications could be high
by 34.16% branches in Madhya Pradesh, Maharashtra, Kerala,
and run into crores of rupees.
Gujarat, Rajasthan, Haryana, Punjab, and Chhattisgarh.
Carbon Sequestration through Tree plantation
The Bank is also planning to expand into new states The fixed assets of the Bank, specifically those TCFD’s Recommended Disclosure
including Andhra Pradesh, Telangana and Tamil Nadu. associated with the corporate head offices are valued Metrics to assess and manage climate-related
The outstanding book size for FY 2020-21 under retail at ₹1,809.37 crores which is exposed to risk from severe risks and opportunities
agri-business is ₹25,58,192.62 lakhs comprising 10,968 storms and floods. Furthermore, extreme weather
Climate-related Physical Risks farmer customer households. In addition to lending to events, especially flooding, air pollution and extreme
farmers, the Bank has organised more than 40 farmers heat disrupt transportation systems and impact Scope 1, 2 and 3 GHG emissions and related risks targets
meetings/campaigns to promote financial awareness. employee health respectively. These events, therefore, to manage climate-related risks and opportunities and
The Bank recognises that climate change will have
As of March 31, 2021, the KCC lending book stands at lead to greater absenteeism and reduce productive performance against targets.
increasingly significant physical impacts including
₹16.7 billion (1,670 crores) and the Bank's total rural working hours. Costs associated with premiums paid
flooding, droughts, severe storms and other severe The Bank is constantly measuring data related to
customer base is 5,82,762. The Bank thus has significant towards insurance of branches and offices of the Bank
weather events as the globe warms from 1 degree to climate change associated risks. The Bank reports on
exposure to the agricultural sector which is vulnerable amount to approximately ₹1.35 crores with additional
4.5-6 degrees (BAU scenario). The Bank also recognises sustainable financing and operational carbon footprint
to both the acute and chronic physical impacts of taxes. The cost of safety training and manuals is
that these risks while less significant will still exist in across its operations.
climate change. These risks are assessed through our integrated into the CS and CSR department's annual
a 1.5-degree world. These risks have the potential to
credit risk mechanism. budget - ₹121.73 crores. Additionally, the cost to The Bank has taken ESG focused targets for its lending
affect the Bank’s business and are considered in its
execute the BCP has been integrated into the existing portfolio. By FY 2022-23, the Green and Climate Finance
Credit Risk Assessment mechanism and as part of its In response to this risk, the Bank is exploring
budget of the risk department which does not exceed should account for 3.5% of the Bank’s loan book and
ESMS framework. investment in climate-smart agriculture and is also
10% of the Bank's overall operating expenses which is Social, Livelihood and Inclusive Finance should account
supporting alternative activities. The Bank offers various
₹8,157 crores. The cost of managing and responding for 41.5% of the Bank’s loan book. Currently the Green
Initiative #1 channels/facilities, including Business Correspondent
to this risk is thus inclusive of the budgets of the risk, and Climate Finance accounts for almost 2.6% of our
(BC) Term Loans and Securitisation, which are being
CSR and Sustainability departments and the cost of portfolio for FY 2019-20.
BANK’S BUSINESS ACTIVITY used to reach out to women borrowers in
insurance premiums.
the agricultural sector that is engaged in a small farm After surpassing its Emissions Intensity target of 4.4
The risks associated with the acute physical impacts of
(livestock rearing, fisheries, etc.) and non-farm activities MTCO2e/revenue(₹ crores) by 2021, the Bank has taken
CC such as flooding and cyclones are evaluated through
(petty businesses, Kirana stores, etc.) new target of 50% Reduction over FY 2019-20 baseline
our Credit Risk Assessment and ESMS frameworks.
of 3.8 MTCO2e/ Revenue Cr by FY 25. Currently the
These risks may impact the Bank’s loans to sectors
such as agriculture, infrastructure and real estate
which are vulnerable to the acute physical impacts
₹1,670 Cr Emissions Intensity for the Bank is 3.3 MTCO2e/ Revenue
crore. IndusInd Bank is making progress in its journey to
align with the TCFD recommendations and will soon be
of climate change. Kisan Credit Card (KCC) scheme
implementing it in a more comprehensive manner.
lending book
For more details on targets refer to Sustainability Commitments
on Page 44.
1.4 Cr+ For more details on metrics refer to Resource Management

on Page 50 and ESG integration on Page 38.
Active loans financed
60 61
Highlights
The bank believes in uplifting
communities through various 92,770 66.83 million m3
of water storage capacity created
financial lending verticals and Students benefitted from
educations programmes
CSR interventions.
92,770 100%
Students benefitted from of social indicators related to operations
educations programmes are reported by the Bank
56,000 639
Trees planted in FY 2020-21 Sportspersons groomed to compete at
national or international platforms across
RESPONSIBILITY
several disciplines
TOWARDS THE IN THIS SECTION
COMMUNITY
Social Financing 64
Community Development 74
62 63
Social Financing
Bringing
Transformative Change
IndusInd Bank aims to create a
positive impact on society through
its sustainable finance offerings. It
PROJECT SUNSTONE
83,13,794 Microfinance is an integral
part of IndusInd Bank’s
also offers debt solutions to social ‘Sunstone’ (Registered with RBI) is a rural
microfinance institution operating across nine
Microfinance beneficiaries financial inclusion strategy.
enterprises, especially in the sanitation states in North and Central India, largely covering in BoP segment The microfinance programme
poorest state inclusive growth (PSIG) districts
space. The Bank is committed to and offering credit to women borrowers of inclusion in FY 2020-21 provides small loans to
growing consistently and responsibly, underdeserved households under the Joint
women borrowers, with
Liability Group (JLP).
benefiting those it directly serves annual household income
Sunstone has established a business
while promoting the well-being of its correspondent relationship with IndusInd Bank not exceeding ~1,00,000 in
stakeholders, including the among other organisations with a gross loan FINANCIAL INCLUSION
rural areas and not exceeding
portfolio of ~600 crores and revenue of MEASUREMENT AND IMPACT
community at large. ~127 crores. ~1,60,000. The Bank has
Particulars Monetary Value (₹ crores)
Inclusive banking is one of the most effective Loan disbursal to weaker sections 28,916
extended the opportunities
of sustainable livelihood
accelrators of economic participation in an emerging
economy like India. The Bank believes in delivering
affordable and flexible services to every individual.
62,179 ₹312 Cr Loan disbursal to Agri. and Allied sector
Loan disbursal to Microenterprise’s sector
14,375
13,815 among groups, thereby
Touchpoints Own loan portfolio
The Bank hosts a wide range of financial inclusion
Total 29,797 encouraging rural development
offerings such as microfinance, loans for missing-middle in a significant way. The Bank
segment, microenterprise segment on the asset side,
savings bank accounts, micro recurring deposits, and
remittances among a host of value-added services.
3.5+ Lakhs 218 believes in bridging the gap
between urban and rural India
Active clients Branches
by bringing the unbanked and
underbanked a step closer
Quick Facts to mainstream banking. Our
Digital solutions are streamlining transactions in rural banking model promotes
the microfinance segment through the use of IMPS,
RTGS, NEFT and UPI supported by AEPS/Biometric
inclusivity by creating and
Authentication System and more. developing opportunities for
sustainable livelihood among
underprivileged and economically
• Total number of rural customers as on
March 31, 2021 under Business
disadvantaged groups.
Correspondent (BCs)=62,72,427
• Number of new rural customers added in
FY 2020-21 under BCs=5,95,945
• Increase in rural customers over previous
year under BCs=7.38%
• The Inclusive Banking group has provided
loans to 8.38 million women in FY 2020-21
[GRI: 203-1] [GRI: 203-1]
64 65
Social Financing
FINANCIAL SERVICES FOR THE MICROFINANCE THROUGH BC MODEL BUSINESS BANKING GROUP OFFERINGS
DIFFERENTLY ABLED
The Bank provides easy access to differently-abled
people through a variety of services
628 Branches and 905 ATMs Microfinance forms an integral part of the Bank’s
overall strategy to promote financial inclusion.
The Bank drives financial inclusion under its flagship
The Business Banking Group offers secured working
capital loans and short-term finance, primarily on the
basis of stock and book debts to meet the working
Equipped with ramps for Business Correspondent model that was launched capital requirement of the entity.
• Dedicated counters with less height desks for senior in association with Microfinance Institutions (MIs).
citizens and differently-abled persons wheelchair users This model works on the principle of value chain
The Bank understands that SMEs in India are vital to
its economy, contributing 45% to the industry outputs
• All ATMs i.e., 2,872, equipped with audio-enabled deconstruction where critical functions are retained
and providing over 45% of industrial jobs. The Bank’s
‘Talking ATMs’ with Braille keypads while the rest of the activities are outsourced within the
endeavour is to offer a large target pool of clients’ funds
• Cheques in Braille prevailing operative and regulatory framework.
between the range of ₹25 lakhs to ₹20 crores. To do this,
• Doorstep banking available as per the requirements
The model has proved to be commercially viable, it has come up with a differential product offering under
defined in Banking Codes and Standards Board
particularly successful in reaching out to unbanked its ‘Small business banking policy’.
of India (BCSBI). Read more about doorstep
BANK’S WEBSITE ACCESSIBILITY and underbanked women customers by offering them
banking here Client availing the Bank’s Business Banking Group
microloans through JLG, and has enabled convergence
• Accessible Net banking and Mobile banking The Web Content Accessibility Guidelines offerings are broadly divided into Traders, Service
of other financial services. The programme is keenly
• A total of 905 ATMs and 628 branches equipped (WCAG) for the Bank’s website features providers, Exporters, Importers and Manufacturers.
monitored and supervised at regular intervals for the
with ramps for wheelchair-users The groups offer tremendous cross-selling
Colours – There is high contrast between the benefit of the customers and to widen the reach of
opportunities. The main industries accessing these
colour of the text presented and that the Bank’s CSR initiatives. IndusInd Bank is the largest
services are textiles, pharma, logistics, construction,
of the background. The website ensures lender under the Pradhan Mantri Mudra Yojana (PMMY).
auto, chemicals among others. The Bank is aiming to
that colour is not the only prompt used to
stay ahead of the curve by bringing more innovative
convey information.
Text – The text can be made larger without
affecting the content or function of the page
Largest lender schemes and products.
BUSINESS BANKING LOAN PROPOSITION

under Pradhan Mantri Mudra Yojana
or site.
ENTITIES WITH FINANCIAL DETAILS
Images – All images have alternative text
• Under this proposition, the Bank caters to
unless they are purely for decoration.
FINANCIAL SERVICES FOR LOW-INCOME working capital and trade related banking finance
SOCIAL GROUPS requirements
• The target pool SMEs under sole or multiple banking
MICROFINANCE LOANS
with exclusive collateral security cover
IndusInd bank has been proactively offering • Prospects include sole proprietorship, registered
microloans to entrepreneurial women to generate firms, private and public limited companies
sustainable livelihood options. This programme lends • Entities must have 3 years of business vintage with a
to entrepreneurs and women borrowers, with annual minimum of 2 years of audited financials
household income not exceeding ₹1 lakhs in rural
ENTITIES WITHOUT THE FINANCIAL DETAILS
areas and not exceeding ₹1.60 lakhs in the urban and
semi-urban areas, as defined by the Reserve Bank of • In order to lend to this segment, an effective score
India. card mechanism was devised to provide objectivity
in lending
MICRO ENTERPRISE LOANS • Under the ‘GST and Banking’ proposition, facilities are
offered to customers who are willing to provide their
Loans are offered to existing customers having higher
GST returns, have satisfactory banking and adequate
loan requirements for expansion of business. Up to
collateral
₹2.5 lakhs are offered through this programme.
• Loans can be availed without submitting
detailed financials
SERVICE OFFERINGS
Customers can now access services through
mobile/micro-ATM applications. Services include
deposit, withdrawal, fund transfer/remittances,
Aadhaar Enabled Payment System (AEPS), biometric
authentication on real-time basis, balance inquiry,
Aadhaar seeding, mobile update, RuPay card activation
among others.
[GRI: 203-1] [GRI: 203-1]
66 67
Social Financing
SPREADING FINANCIAL LITERACY

TOPICS COVERED BY FINANCIAL
The Bank believes financial literacy is an enabler for LITERACY CAMPS BHARAT MONEY STORES
socially inclusive development and is striving to help
communities become financially literate, with an
emphasis on educating women borrowers.
INCREASING ACCESSIBILITY FOR
Need for banking and Financial risk and
UNDESERVED GROUPS AND DISTANT
SENSITISING WOMEN BORROWERS ON saving products fraudulent activity
GEOGRAPHIES
• Risks of over-indebtedness
In order to build last-mile banking, the Bank
• Mechanisms for grievance redressal
has enrolled around 35,900 kirana stores as
• Pricing and importance of making loan repayment
Document Importance of Bharat Money Stores (BMS). These stores act
on time
requirements for borrowing loans from as both merchants and service points of the
• Credit bureau track record
account opening and regulated entities versus Bank, facilitating financial and non-financial
• Rules and regulations of the microfinance loan
their relevance informed channels transactions to customers. The BMS are in close
• Group understanding and ability to voluntarily
proximity of the target community and are open
cross guarantee their loans
virtually 24x7 to provide assistance. The Bank
The Bank conducts ‘Financial and Digital Literacy has also introduced a specifically designed Micro
Camps’ in rural locations where the target group Importance of Know Mobile banking and Recurring Deposit (Micro RD) and Voluntary
consists of farmers, women, senior citizens and Your Customer (KYC) Internet banking - Savings Bank (SB) account facility to customers
students. At least one outdoor camp is organised by the practices usage and benefits to enable them to use the account effectively.
branches in neighbouring villages on a monthly basis. An AEPS-enabled App has been developed to
During FY 2020-21, the Bank also conducted special facilitate the process for merchants. The App is
camps during the financial literacy week. encrypted and linked to the Bank’s Core Banking
PMJDY and RuPay card
System (CBS), which allows customers to be
Digital banking services benefits, linking to
authenticated by biometrics, facilitating real-time
Aadhar
online transactions.
LOANS FOR COMMERCIAL VEHICLES
The biggest beneficiaries of this model are
IndusInd Bank’s Consumer Finance Division (CFD)
women in remote villages whose single point
offers loans to commercial vehicle operators or Use of banking services
Highlighting the for payment of utility bills, withdrawals, loan
first-time borrowers. By funding a vehicle, the Bank such as bank branches,
availability of social repayments and more is located within their own
helps create livelihood opportunities for a number ATMs,
security schemes and village through the merchant’s point. It helps
of people. Business Correspondents TRANSFORMING BANKING FOR
benefits them save time, since they no longer have to
travel to the nearest town, and the loss of a day’s DISADVANTAGED SOCIAL GROUPS
wages. The model furthers the Bank’s mission of
empowering women financially.
Among the Bank’s customer-centric intiatives is
With the onset of the pandemic, financial literacy leveraging the high penetration of mobile phones
became an important tool for individuals to manage to maintain and conduct regular interactions.
their financial concerns, build resilience and Virtual centre meetings are held through phones
knowledge on how to manage income even in difficult to address any difficulty in payments, loan
situations. The Bank continued its essential services disbursals and account management among
during the countrywide lockdown, providing seamless others. SMS has become an integral medium
banking services not only through branches but also to send customers confirmation of payments,
35,900
through BC agents. creating awareness on banking products and
services, and sending reminders prior to loan
repayment due dates, and so on. These initiatives
are aimed at streamlining customers’ association
with the Bank and understand customer choices
Kirana stores enrolled in the and preferences.
Bharat Money Stores (BMS)
[GRI: 203-1] [GRI: 203-1]
68 69
Social Financing
FINANCING AGRI CORPORATES UPLIFTING SMALL AND RETAIL AGRICULTURE EDUCATION FINANCING
IndusInd bank supports holistic development of MARGINAL FARMERS The Bank provides short-and long-term credit products As the Indian population grows, demand for education
agricultural businesses and value chains. The bank to farmers from agriculture and agri-allied sectors. is steadily rising. Investment in this sector is also
is expanding its investment in agribusiness through Indus Kisan, the Bank’s retail agriculture product, growing owing to steady cash flows, the business being
The Bank’s Food & Agri division from its inception
financing projects and providing corporate linked offers loans to meet financial requirements for crop recession proof and negative working
in 2016 has contributed tremedously towards
agricultural finance. cultivation, agri-investment and agri-allied activities. capital requirements.
the upliftment of small and marginal farmers by
Indus Kisan simplifies credit availability and offers
Corp Agri book is diversified across all types of providing them banking linkage and supporting Under the education segment, funding is provided
flexible repayment schedules dependent on the types
borrowers – from individuals to Agri Corporates. payments directly to their accounts resulting in to various types of educational institutions like
of crops being harvested by the farmers. All Indus
For individual lending, the female exposure may savings for their development. medical colleges, engineering colleges and vocational
Kisan customers are issued RuPay debit cards and
constitute ~25-30%. colleges. These institutes help in creating health
Food & Agri, a sub-vertical of ABG has Indus Mobile App in accordance with the ‘going green’
professionals, engineers, etc. which aids in the growth
The Agricultural Business Group (ABG) has voluntarily approximately 50% dairy exposure to the clients philosophy of the Bank.
and development of the overall society. Further, few
signed up for ESMS compliance, under which like AMUL, Vadilal, etc., benefiting dairy farmers
Every customer is offered a bundled savings account. institutes provide affordable education so as to make
all on-boarded clients need to provide upfront and rural women through on-lending from there
This enables multiple product offerings to each education accessible to students belonging to lower
self-declaration or furnish relevant proofs stating there corporates. ABG also encourages lending across
customer at a low cost and improves customer retention socio-economic strata of the society.
is no violation of human rights, child labour laws or areas like education, housing, renewable energy,
and loyalty. Training is also provided to farmers to
issues not aligned with the Bank’s growth philosophy. MSMEs, etc. The Bank finances clients with a good track record and
familiarise them with Mobile and Internet banking, and
robust monitoring mechanisms such as periodical cash
other digital infrastructure.
flow monitoring, reconciliation of cash flow routing with
823
In FY 2020-21, the retail agriculture vertical of the the actual number of students on rolls, comparison with
Bank witnessed a steady growth of approximately projected admissions among others to help build good
14% with an expansion into new rural and semi-urban portfolio quality. In FY 2020-21, 33 disbursements were
locations by funding over 2,200 applications under done for 22 clients in the education portfolio.
the Indus Kisan Credit Card (KCC) scheme across 532
Contracts signed under Corp designated branches in Madhya Pradesh, Maharashtra,
Kerala, Gujarat, Rajasthan, Haryana, Punjab, and
Agri business in FY 2020-21 Chhattisgarh. The Bank is planning to expand into new SOCIAL IMPACT OF EDUCATION FINANCING
states – Andhra Pradesh, Telangana and Tamil Nadu.
• Medical colleges provide education to
The outstanding book size for FY 2020-21 under retail
health professionals
agri-business is ₹19.09 billion.
• Institutions which offer vocational courses for
WHAT DOES AGRI-FINANCE ACHIEVE entry-level skill development across industries.
Bank has partnered with National Skill
Expanding processing
and warehousing
Provides financial
cushion for business
₹1,910 Cr Development Corporation
• VG Education under Gems Group offers
Outstanding book size for retail affordable education, benefiting the families
capacity through Infra operations via
agri-business for FY 2020-21 in lower socio-economic strata
loans working capital loans
Socio-economic impact Price parity for farmers, RURAL BANKING MEASUREMENT AND IMPACT
to the lowest strata of JLGs and other
Particulars Values
agri-community via agri-stakeholders when
trickle-down effect availing commodity KCC lending book as of March 31, 2021 ₹ 16.7 Bn
when funding large finance loans and Outstanding credit portfolio across 11,000 clients ₹ 19.1 Bn
farmers, traders, stocking through the Disbursal ₹ 3.5 Bn
processors, etc. lean season Total No. of rural liabilities customers 1.51 Mn
No. of Rural customers in FY 2020-21 5,82,762
Increase/decrease in rural customers over previous year 63%
One of the Bank’s product programmes-WH Commodity
Finance-exclusively caters to JLG group of farmers who
need small ticket size funding to manage their operational
expenses and prepare for the next crop cycle without
burdening their personal finances. This also liberates them
from the local lenders’ debt trap.
[GRI: 203-1] [GRI: 203-1]
70 71
Social Financing
INFRASTRUCTURE FINANCE HEALTHCARE SOLUTIONS

IndusInd Bank finances infrastructure projects after IndusInd Bank is offering support to the healthcare
considering the lending through the sustainability ecosystem by catering to the banking and financial
prism. The Bank integrates ESG parameters in its needs of hospitals, diagnostic chains, speciality care
lending business and associates only with approved units through its dedicated healthcare delivery team.
projects by reputed developers. Projects financed by This business has gained good traction in terms of asset
the Bank are pre-approved by the State’s planning building and generating income for the Bank. The entire
authorities and municipal bodes. healthcare value chain is covered by the business-from
new medical equipment manufacturers to large
Relevant compliances related to energy efficiency, waste
established hospital chains, from promoter-driven
water treatment, afforestation etc. are checked before
single vintage hospitals to private equity backed
issuance of NOC (e.g. storm water drainage, pollution
young hospital chains.
control, tree re-plantation, waste treatment, etc.) and CC
(Commencement Certificate for project development).
DEEPENING HEALTHCARE PENETRATION
The Bank ensures that the project has due approvals
before a lending decision is taken. It usually targets During the COVID-19 pandemic, Krsnaa has been
financing projects in Tier 1 metro cities undertaken by one of the prominent players in providing diagnostic
leading developers. The Bank undertakes due diligence testing (RT-PCR) through the public-private partnership
on necessary approvals to integrate ESG aspects while (PPP) model in the states of Maharashtra, Tamil Nadu
financing real estate projects. and Rajasthan, among other areas. The organisation
has presence in 15 states in India and under the PPP
model, offers a pan-India world-class diagnostic facility.
It also works out of designated spaces in government
hospitals on the basis of revenue sharing or rental
arrangements. In Maharashtra, the organisation uses
mobile vans (customised Volvo buses) for COVID testing.
As on February 2021, it had conducted 5.78 lakhs RT-PCR
tests for various in the three states. IndusInd Bank has FUNDING TL INITIATIVE IN MOHALI
sanctioned loans worth ₹147 crores to the organisation AND PATIALA
for setting up new centres, thus directly contributing
The Bank is contributing to the healthcare
to the much-needed healthcare penetration.
infrastructure by lending to a hospital
Working capital limits sanctioned are to help Krsnaa
with a presence in both Mohali and
manage its working capital requirements during these
Patiala. Mohali handles patient inflow
testing times.
from Himachal Pradesh, Jammu & Kashmir,
western Uttarakhand and states which lack
quality tertiary healthcare facilities. It is
also surrounded by districts of Punjab and
Haryana such as Rupnagar, Fatehgarh Sahab,
SBS Nagar, Ambala, Kaithal, Yamunanagar,
and other which do not have specialised
medical setup. Patients actually go to
Chandigarh Tri-city for super-specialty
care. The hospital that sought the Bank’s
services welcomes patients covered under
various state and central government
health schemes, including Employees State
Insurance Corporation (ESIC) and Ayushman
Bharat health schemes, and positions itself
~₹20 Cr
as an affordable healthcare unit for the
undeserved.
IndusInd Bank’s funding of ₹20 crores will
help commission the Patiala unit, which will
help patients to access quality healthcare
and also help offer better equipment and
Funding towards
facilities in the hospital’s Mohali unit, thus
helping patients from adjoining states and
Patiala hospital unit
districts to get quality healthcare.
[GRI: 203-1] [GRI: 203-1]
72 73
Community Development
Promoting
Holistic Development
The Bank’s CSR mission is to emerge FOCUS AREAS Priority SDG Description of Business benefit KPI Social/environmental
Areas Alignment alignment between benefit KPI
as a best-in-class bank committed to The Bank’s community efforts are based on needs
priority areas and
assessment and a participatory approach, involving the
growth and development that not only community to generate a higher impact. Training and
business drivers
benefits the Bank and its customers, capacity building is provided to the beneficiaries who Priority 1: Certain districts are The Bank’s work at the Ensuring access to highly
further implement and carry forward the efforts.
but also the natural environment and Good Health
and Well-being
categorised as aspirational
districts while some are
grass-root level has created
goodwill. The community
subsidised and affordable
primary healthcare and
the community at large. The Bank ENVIRONMENTAL
To ensure healthy determined as difficult terrain identifies the brand and medicines for 2,00,000 people
geographies. The Bank is connects with it, showcasing per year belonging to poor and
undertakes CSR activities under the PRESERVATION
lives and promote
well-being for all at operating in difficult terrains. a good credit-deposit ratio. lower income families. These
motto of ‘Sattvam-Our country. all ages families come from some of the
most backward and aspirational
Our commitment.’ districts of India as published by
Niti Aayog.
CSR GOVERNANCE
Priority 2: Good Metropolitan cities like Working with the Planting of 59,000 indigenous
The Board’s CSR Committee has oversight over the Sustainable Cities Mumbai, Gurgaon, Bengaluru, communities at grassroot trees by 2020. This is expected
Bank’s CSR activities and is responsible for undertaking and Communities Chennai, Hyderabad, levels bring synergies and to have a carbon sequestration
EDUCATION
and implementing need-based community efforts that Make cities and Ahmedabad Noida, Delhi, the creates a win-win situation potential of approximately
ensure that the Bank’s business grows consistently and human settlements business hubs, are the ones for the Bank and the society 26,700 MT of CO2 (offset over
responsibly, benefiting those it serves and promoting inclusive, safe, worst affected by pollution. at large. As outcomes, the 15 years).
the well-being of its employees, the environment, and resilient and The Bank has targeted urban Bank has witnessed an
the community. sustainable spaces in order to create increase in the number of
mini forests to mitigate the ill accounts through such
effects of pollution. interventions.
Priority 3: Clean The Bank acknowledges the The Bank has witnessed an Ensuring the additional water
CSR EXPENDITURE availability of more than 700
Water and significance of safe drinking increase in rural business.
3% 0% HEALTHCARE
Sanitation water and has started working Relationship with business million litres or 7,00,000 cubic
Ensure availability in the area where it has an correspondents has become metres will be created through
and sustainable extensive network of Micro- stronger, with them working various conservation and
management finance institutions. These with the Bank on a common restoration initiatives by 2024.
of water and areas have contaminated agenda for the community. Watersheds will be developed
sanitation for all water with high TDS levels. Deposits have grown over the over 3,600 hectares of land.
The Bank works with period and continue to grow.
communities to bring in Ensuring the availability of
awareness on drinking affordable, RO purified drinking
clean water. water to 1,60,000 people from
SKILLS AND
rural areas.
97% LIVELIHOOD
CSR BENEFICIARIES
Charitable Donations
Community Investments Focus areas Male Female Total
Commercial Initiatives Education 48,788 43,982 92,770 SOCIO-ECONOMIC
Water 3,01,659 2,93,229 5,94,888 COMPLIANCE
Environment (Other) 38,454 33,308 71,762
The Bank complies with all
Healthcare 66,298 5,98,534 6,64,832
Sports 503 136 639
applicable socio-economic
SPORTS Skills & livelihood 3,34,264 1,42,491 4,76,755
laws and regulations.
Total 7,89,966 11,11,680 19,01,646 In FY 2020-21, there
were no fines or
CSR CONTRIBUTIONS non-monetary sanctions
Type of contribution Monetary value (₹) due to non-compliance with
Cash contributions: Donations by employees and IndusInd Bank to 6 NGOs 39,20,750 socio-economic laws and
namely Aranyak, Helpage, Nalandaway, Prayas, Samarthnam, Support. regulations.
Time: employee volunteering during paid working hours 1,470
In-kind giving: product or services donations, projects/partnerships or similar 0
[GRI: 203-1, 413-1] Management overheads 0 [GRI: 102-12, 203-1, 413-1, 419-1]
74 75
RESTORATION OF WATER BODIES IN ACCESS TO SAFE DRINKING WATER

Preserving the Ecology for the Community URBAN AREAS
As many as 40 RO-based Water ATMs have been
Lakes, ponds and drains, especially in urban areas, re-installed in Uttar Pradesh and Rajasthan, which
The IndusInd Bank not only believes ENSURING WATER SECURITY are most vulnerable to encroachment and degradation. face acute drinking water crisis in terms of quality,
The Bank is seeking to restore and maintain them in accessibility and affordability. These village-based
in causing minimum damange to the The Bank has been restoring degraded
partnership with the local corporation and community decentralised Water ATMs dispense clean water at the
water bodies in water scarce landscapes
environment, but it has also forayed and improving water harvesting
in five states and Union Territories – rate of 30 paisa/litre and is owned and operated by the
Tamil Nadu, Karnataka, Gujarat, Pondicherry, Andhra community and Gram Panchayat. Similarly, 10 defunct
into undertaking initiatives for, and capacities by building structural barriers.
Pradesh. These restored water bodies act as a buffer RO systems were revived in Karnataka under the Pragat
It also creates widespread awareness on
together with, the community in adaption and best cropping practices,
for urban flooding, recreational space for citizens and Water Initiative of Bharat Financial Inclusion Limited
improves biodiversity. (BFIL). Both initiatives have incorporated bore well
resource management and revival soil conservation and optimum water use.
recharge in and around the system, which has a water
The Bank’s aim is to revive the ecosystem
of the ecosystem. and provide water security to the
agricultural communities.
7 52 Ha harvesting and recharge capacity of more than
37,000 cu mt.
Water bodies restored Area restored
RESTORATION OF WATER BODIES IN

RURAL AREAS
45 81,000
10,145 6,500 Qt Villages Population benefited
Trees planted Garbage cleared
Watershed management – Maharashtra,

Odisha, Jharkhand, MP Springshed
26,636,420 ltr
management – Odisha
Rainwater harvesting– Rajasthan
5,74,29,465 Cu Mt Drinking water dispensed
Water holding capacity created

Revival of water bodies – MP
Community-led institutions for managing
agriculture resources with tank-based AFFORESTATION ENCOURAGING USE OF RENEWABLE ENERGY
watershed approach – TN, AP, Karnataka,
Under the Bank’s Urban Afforestation Programme, it has To incorporate green energy use, a large rooftop
Telangana
planted 56,000 trees across multiple cities in states such solar installation was initiated in a hospital, providing
Pragat Watershed Development – Karnataka as Maharashtra, Karnataka, Tamil Nadu, Delhi, Haryana, a clean energy source, saving electricity costs and
West Bengal and Uttar Pradesh. Plantation in urban spreading awareness on clean energy source among
River water harvesting - West Bengal
spaces was done by liaising with government officials the beneficiaries. The hospital selected for solar
and departments for land, permits and other resources. electrification provides preventive and curative
paediatric cardiac care.
In another initiative, an AC micro-grid system (solar PV
RESULT 11 56,000 based) was installed in a forest-fringed village
on Kumirmari Island in Sundarbans. This has provided
Cities Trees critical electricity supply to 200 households and village
9,863 Ha institutions which are at risk of human-wildlife conflicts.
Also, a total of 100 smart solar street lights
Land treated
825 MTCO2e/annum were operationalised.
OUTCOME
Following completion, the activities will result 190
Sequestration potential
330 kWp 39,000
in increase in ground water levels, area under The plantation survival rate has been maintained at Capacity Population benefited
Villages benefited
irrigation and cultivation, crop production, around 90% with only native species being planted.
household incomes, farmers adopting Miyawaki (mini-forest) technique was also adopted
sustainable agriculture practices, reduction in
women drudgery and migration etc. 93,65,510 Cu Mt in three cities. Apart from the Urban Afforestation
Programme. 1.64 lakhs trees were planted in project
locations in watershed, springshed, lake rejuvenation
384 MTCO2e/annum
Pondage created Emissions saved
and other areas.
[GRI: 203-1, 413-1] [GRI: 203-1, 413-1]
76 77
Strengthening the Knowledge Base Supporting Healthcare Infrastructure

Through its programmes that promote universal education, the Bank The pandemic has reiterated the importance of access to basic
aims to improve knowledge comprehension and analytical abilities of healthcare services to all. IndusInd Bank recognises this need and
students, making them the change agents of their own lives. supports initiatives such as setting up of healthcare units and
partnerships with hospitals to support the vulnerable population.
ACADEMIC IMPROVEMENT PROGRAMMES REWARDING EDUCATIONAL EXCELLENCE PRIMARY HEALTHCARE PROVIDING SPECIALISED CARE
The Bank runs three major programmes under this Scholarships are provided to deserving students from To provide timely access to primary medical care in Support for screening, diagnosis, treatment, surgeries
sub-theme. Two of these focus on providing remedial socio-economically backward families to help them remote locations amid the restrictions induced by the and infrastructure support (eg. equipment) for critical
education to bridge the learning gaps in grade level complete their education. Such support is provided pandemic, e-Health/Telemedicine Clinics were setup. and cost intensive ailments such as paediatric and
reading, comprehension and solving arithmetic with through Ashoka University, FFE Foundation for In some places, access is provided through Mobile general cancer, paediatric congenital heart diseases
a holistic approach towards the overall development Excellence and Purkal Youth Development Society. Medical Units (MMUs). Local awareness campaigns and HIV are also provided by the Bank. As and where
of children in government schools. Teachers are on health and hygiene and preventive healthcare are necessary, the Bank enters into tie-ups with institutions
also trained through disseminating unique teaching PROGRAMMES TO PROMOTE EDUCATIONAL conducted by local community health facilitators. working on a large scale and catering to disadvantaged
ideas, approaches and concepts. In the third kind EXCELLENCE These initiatives run hand-in-hand with the government patients. The Bank has also launched a Mother and
of programme, Education Centres established run healthcare machinery. Care has been provided for Child Care programme in conjunction with the
• Scholarship for engineering students
group tuitions to assist children from poor families the treatment of primary ailments. Cases requiring government healthcare department of the Odisha state
• Scholarships for students from Purkal
with necessary education and knowledge support, secondary care are referred with a follow-up. government and a specialised menstrual and general
Youth Development Society
and help them gain a basic degree (pass Class 10). Patients receive free consultation and medicines at health programme for adolescent girls in Telangana.
• Young India Fellowship Programme
The programme also intends to reduce dropout subsidised cost. Thus, communities are less vulnerable
rates and encourage those who drop out to gain to interference from quacks. SPECIALISED CARE PROJECTS
salaried employment.
• Treatment of HIV patients - Kolhapur
To continue the programme during the pandemic,
the Bank adopted online mode of teaching at the
4,317 92,770 PRIMARY HEALTHCARE PROGRAMMES
• E-clinics – UP, MP, Jharkhand, Chhattisgarh, Bihar
•
•
Cancer support for children - Jaipur
Cancer treatment for children - Maharashtra and Goa
community centres to provide access, through Schools/ Students • Primary Healthcare programme - UP • Cancer support with the Assam Government
FaceTime, to teachers. The self-learning mode was Learning centres • Pragat - PHC and Sub Centre strengthening • Congenial heart disease programme -Chattisgarh,
also encouraged with the help of video resources and Haryana, Maharashtra
learning worksheets provided to the students to help
them adapt to the change.
4,221 4,137 2,591 8
PROGRAMMES FOR EDUCATIONAL IMPROVEMENT Patients Specialised hospitals
Teachers Villages directly benefited associated with Bank
• Road to School Programme, Odisha
• Early Language Learning, Haryana
• Assisted Learning Programme, MP, Jharkhand,
Chhattisgarh, Bihar, UP
• Pragat – Road to School, Karnataka
579 310
Villages E-clinics, Healthcare
Centres, MMUs etc.
6,25,029 1,670
Benefited directly Community
and through health facilitators
outreach programmes and frontline
healthcare workers
[GRI: 203-1, 413-1] [GRI: 203-1, 413-1]
78 79
Enhancing Skills to Build Livelihoods Pursuing Development through Sports

The pandemic has reiterated the importance of access to basic Through its programmes that promote universal education, the Bank
healthcare services to all. IndusInd Bank recognises this need and aims to improve knowledge comprehension and analytical abilities of
supports initiatives such as setting up of healthcare units and students, making them the change agents of their own lives.
partnerships with hospitals to support the vulnerable population.
SANITARY PAD MANUFACTURING LIVESTOCK DEVELOPMENT PROGRAMMES SPORTS PROGRAMMES ELITE ATHLETE PROGRAMME (IN PARTNERSHIP
WITH MANN DESHI FOUNDATION)
The Bank provides support to entrepreneurs in sanitary Two income enhancing livestock development PARA-CHAMPIONS PROGRAMME (IN
pad manufacturing and runs three short-term skill programmes viz. Dairy Farmer’s Livelihood Programme PARTNERSHIP WITH GOSPORTS FOUNDATION) Launched in 2019, this programme supports 55
training programmes that groom youths for placement. (income enhancement through ICT intervention athletes (from Nomadic tribes/backward castes) in
Launched in 2016 with an objective to support
The latter has led to average earnings of ₹8,185/month and market linkage) in Punjab and the Sanjeevani Satara district in Maharashtra across three disciplines
para-athletes across various sports disciplines, this
while the former has created 201 women entrepreneurs Programme in MP and Jharkhand (livestock (field hockey, athletics and wrestling). In totality, these
programme currently supports 43 para-athletes across
in villages. veterinary care) have led to 4,75,546 beneficiaries. athletes have won eight gold, six silver and five bronze
7 disciplines. In all, the para-athletes have won 309 gold,
medals at various national, state, district and local level
156 silver and 107 bronze medals till 2021.
KEY SKILL DEVELOPMENT PROJECTS RATION AND SANITATION KIT DISTRIBUTION tournaments.
During the year, the Bank also carried out activities GIRL POWER PROGRAMME (IN PARTNERSHIP WITH
SHOOTING STARS PROGRAMME
like ration and sanitation kit distribution, awareness INSPIRE INSTITUTE OF SPORT)
Village-level Skill training programmes, stitching and distribution of masks Launched in 2017, in partnership with the Government
Launched in 2017, this programme supports 60 girl
entrepreneurs for programme for through SHGs, grocery procurement from small farmers, of Madhya Pradesh, the programme aims at providing
athletes across 3 disciplines i.e., Judo, boxing and
sanitary pad drug rehabilated SHGs, MSMEs affected by the pandemic. In one such job opportunities to promising athletes. Chinki Yadav
wrestling (20 in judo, 12 in boxing, 28 in wrestling).
manufacturing youth drive, 50,000 Happiness Boxes were distributed to the (Bhopal) secured India’s quota for 25 m pistol shooting
The programme provides the sportspeople high-quality
children of government schools and their families who at Tokyo Olympics 2021 and received the Vikram Award
coaching, along with a tailor made academic and life
were losing out on their daily nutrition due to in 2020. She even bagged a gold at the ISSF World Cup
skills programme. In all, the athletes have won 84 gold,
Skill training Skill training the pandemic. in 2021 in women’s 25 m pistol event.
39 silver and 66 bronze medals till 2021.
programme for the programme
differently-abled for the youth
HOCKEY FOR HER EXCELLENCE PROGRAMME
(IN PARTNERSHIP WITH TATA TRUST)
Launched in 2019, this programme supports 40 girl
182 639
Medals/Win Athletes
1,209 290 athletes in hockey. Uptil 2021, two cadets represented
Odisha State and won bronze at the School National
Hockey Championship in 2019; one cadet represented
Youth/
Entrepreneurs benefited
Villages
Assam and stood 4th in Khelo India Youth Games 2020.
Nine girls from the programme were also selected to
77% 57
represent Odisha in the Hockey India Junior Women Athletes supported are Tournaments
National Championship 2021. differently-abled and
45% 47% CRICKET FOR BLIND PROGRAMME (IN

PARTNERSHIP WITH CABI)
27% are females
Differently- Women
abled beneficiaries beneficiaries Launched in 2016, this programme supports the Indian
Blind Cricket Team and 300+ blind cricketers at the state
and district level. The Indian Blind Cricket Team has
won eight international series, including the ODI World
Cup. Also, Shekhar Naik of the team was conferred the
Padma Shree Award and National Best Sportsperson
Award in 2017; and Prakash Jayaramaiah the National
Best Sportsperson Award in 2018.
[GRI: 203-1, 413-1] [GRI: 203-1, 413-1]
80 81
Highlights
The bank’s biggest asset –
its workforce. Fuelled by an 5,528
Permanent women employees
enriched human capital, and 25 differently-abled
permanent employees
the Bank is taking strides in
enhancing its work culture while 14,00,100
nurturing its employees. Man-hours of
training provided
5,77,612
Participants reached
through 1,553 programmes
EMPLOYEE IN THIS SECTION
WELL-BEING
People Practices 84
Health and Well-being 92
82 83
People Practices
Nurturing a Talented
and Motivated Team
IndusInd Bank is supported by a strong team of
talented individuals who help the Bank achieve
its goals. The Bank recognises that well engaged
employees are an asset to business, hence it regularly
conducts training and capacity building programmes.
Polices are designed to attract and retain talented
professionals by rewarding and acknowledging their
efforts, which also helps the Bank identify future
leaders for driving business growth.
DIVERSITY AND INCLUSION The Bank offers a harmonious work environment that is
safe, secure, fair, and respects individuals irrespective of
IndusInd Bank is an equal opportunity employer,
their age, religion, gender, race, caste, and nationality.
drawing its workforce from varied backgrounds
and life experiences. The Bank promotes diversity
of thought which enables it to better understand
The Bank’s HR policy pertains to regular full-time
employees and covers guidelines and policies relevant BUILDING A DIVERSE BANK
29,661
to employee welfare and benefits, work environment, Total permanent employees
and serve the diverse needs of its customers, clients,
and business ethics. The Bank gives full and fair Diversity Indicator Percentage
and communities. IndusInd Bank ensures overall
consideration to everyone based on their competencies,
well-being through its policies that promote diversity
and inclusion, engagement driven by values, and
undertakes focused initiatives to empower its people.
strengths, and potential with an environment
encouraging development and growth. It is also
Female share of total workforce
Females in all management positions, including junior,

18.64
18.64
21,568
committed to paying its people fairly and equitably
middle and senior management
Total contractual employees
depending on their assigned role, skills, experience,
and performance.
20%
Females in junior management positions, i.e. first level 21.4
of management
90.66
87.22
84.48
78.63
PERMANENT EMPLOYEE STRENGTH (GRADE Females in top management positions, i.e. maximum 1.2 Of open positions are filled
AND GENDER-WISE CLASSIFICATION) two levels away from the CEO or comparable positions by internal candidates
11.89
~16,506
Employee Category Males Females Total Females in management positions in revenue-
generating functions (e.g. sales) of all such managers
Junior Management 13,426 3,648 17,074 (i.e. excluding support functions such as
21.37
15.52
Middle Management 8,803 1,617 10,420 HR, IT, Legal, etc.) Average hiring cost/FTE
12.78
9.34
Senior Management 1,535 225 1,760

Top Management 369 38 407
NEW EMPLOYEE HIRES (FY 2020-21)
Total 24,133 5,528 29,661 Junior Middle Senior Top
Joining (Zone Wise) Left within 1 year (Zone Wise)
% Males % Females
Age Group Gender East West North South Corporate Total East West North South Corporate Total
86.54
86.93
<30 Male 351 597 1,086 581 198 2,813 208 396 502 291 134 1,531
PERMANENT EMPLOYEE STRENGTH (AGE AND
67.76
GENDER-WISE CLASSIFICATION) Female 203 323 473 297 164 1,460 113 178 211 162 72 736
Total 554 920 1,559 878 362 4,273 321 574 713 453 206 2,267
Age Group Males (Nos) Females (Nos) Total
30-50 Male 250 537 837 513 217 2,354 84 244 295 202 71 896
32.24
<30 5,830 2,774 8,604

Female 32 80 99 70 45 326 10 41 44 28 14 137
30-50 17,975 2,703 20,678
13.46
13.07
Total 282 617 936 583 262 2,680 94 285 339 230 85 1,033
>50 328 51 379
>50 Male - 3 1 2 5 11 - 1 - - 2 3
Total 24,133 5,528 29,661
<30 30-50 >50 Female - - - - 1 1 - - - - - 0
Total 0 3 1 2 6 12 0 1 0 0 2 3
% Males % Females
[GRI: 102-8] [GRI: 102-8, 401-1]
84 85
People Practices
REWARDING AND UPSKILLING EMPLOYEES EMPLOYEE PERFORMANCE

The Bank’s HR policies are designed to acknowledge IndusInd Bank employs a highly educated workforce, whose technical skills are greatly valued globally. The Bank
employees’ efforts by acknowledging individual follows a fair and transparent recruitment process. The Bank aspires to be a first employer and create an
performance. The Bank also provides counselling and environment suitable for talent to thrive and do better irrespective of their varied backgrounds. In FY 2019-20,
constructive feedback during performance assessment. 100% of all employees received a performance appraisal.
The rewards and recognition programme, subject to
employees meeting their targets, helps build long-term
TYPE OF PERFORMANCE APPRAISAL
employee ownership and association.
All the employees can participate in the Employee Particulars % of All Employees
Stock Options Scheme for the future growth of the Management by objectives: systematic use of agreed measurable targets by line superior 100
organisation and also avail the benefits such as Multidimensional performance appraisal (e.g. 360 degree feedback) 100
healthcare (Mediclaim, group personal accident policy)
and insurance, which are offered to full-time employees. Formal comparative ranking of employees within one employee category 100
Supporting the Bank’s PC-5 Strategy, the Board

has setup a Compensation Committee to make EMPLOYEE REMUNERATION
recommendations on the issuance of the Bank’s shares
to its employees under the Employees Stock Option Ratio (= Average
Average Female Average Male Female Salary
Scheme, 2007. Employee Level
Salary (₹ Lakh) Salary (₹ Lakh) / Average Male
Salary)
Executive level (Base salary only) 131 119.41 1.097
Management level (Base salary only) 4.21 4.81 0.88
Management level (Base salary + other cash incentives) 11.68 13.56 0.86
Non-management level 3.31 3.45 0.96
EMPLOYEE BENEFITS (₹ in crores)

0.63% EMPLOYEE TURNOVER
Benefits Cost Incurred Employee absentee rate
Zone
Life Insurance 0.80 Age Group Gender
Corporate East West North South Total
Healthcare 40.50
Disability/invalidity coverage 0.84
20.6% <30

Male
Female
44
76
70
130
261
466
243
559
131
292
749
1,523
Employee turnover rate Total 120 200 727 802 423 2,272
30-50 Male 57 47 123 125 77 429
PARENTAL LEAVE Female 232 246 646 992 592 2,708
Total 289 293 769 1,117 669 3,137
Employees who Employees who Employees who
Employees entitled Employees who
returned after availed parental returned after >50 Male 3 1 4
Categories availing parental leave and were availing parental
to parental leaves took parental leave Female 10 4 2 2 5 23
leave in the current employed even leave in previous
reporting period after 12 months reporting period
Total 13 4 3 2 5 27
Permanent 5,528 316 116 15 79
Contractual 770 10 4 2 2
Total 6,298 326 120 17 81 EMPLOYEE TURNOVER RATE
FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21
Total employee turnover rate 22.6% 21.6% 20.2% 20.6%

EMPLOYEE SATISFACTION
Voluntary employee turnover rate 20.4% 19.5% 18.6% 18.0%
The Bank also tracks employee satisfaction using a variety of channels, including branch visits, employee
engagement, grievance redressal, query resolutions and exit interviews. The branch visits conducted in the year
offer feedback and insights, which are then analysed for remedial actions or process changes.
[GRI: 401-3] [GRI: 401-1, 404-3]
86 87
People Practices
TYPE OF PERFORMANCE REVIEWS EMPLOYEE ENGAGEMENT THE FINISH LINE

Total No. of Employees as on No. of employees receiving regular Percentage (No. of employees receiving The Bank engages its employees in activities beyond An eight-part web series, launched in partnership with
March 31, 2020* performance reviews review/ Total no. of employees) the realm of banking to nurture their talent, passion and Baseline Ventures, ‘The Finish Line’ aimed at keeping
Employee Male Female Total Male Female Total Male Female Total team spirit. The Bank had introduced the ‘Get Set Run’ the sportsman spirit alive. It featured eight atheletes
Category initiative in 2017. over a span of eight weeks. The athletes featured were
- Abhinav Bindra, Vishwanath Anand, Pankaj Advani,
Junior 14,854 4,101 18,955 11,208 2,919 14,127 75 71 75 During FY 2020-21, a total of 32 virtual marathons
Smriti Mandhana, Leander Paes, Varun Singh Bhati,
Management were conducted through the year which engaged
Parul Parmar, Dinesh Kartik. This series garnered more
Middle 8,288 1,408 9,696 6,903 1,178 8,081 83 84 83 over 6,000 employees across the country. This phase
than 2 million views.
Management kick-started in June 2020 with participation in one of
the first virtual marathons – ‘Run to the Moon’.
Senior 1,469 210 1,679 1,363 189 1,552 93 90 92 BEACH CLEAN-UP
Management During the nationwide lockdown, the Bank organised
The Bank had organised a beach clean-up at Juhu
Top Management 313 31 344 294 31 325 94 100 94 several employee initiatives. Some employee centric
Beach, Mumbai. A total of 110 employees attended the
videos include:
Total 24,924 5,750 30,674 19,768 4,317 24,085 79 75 79 beach clean-up drive and clocked 220 hours of hard
1. Squat Challenge video – Participants were work. The volunteers were able to clear up 500 kgs of
*This data pertains to FY 2019-20. The appraisal process for FY 2020-21 were not complete at the time of publishing the Integrated Report.
encouraged to send across short videos of them waste, showcasing the relentless efforts of the Bank in
doing squats – one of the most effective exercises. order to stay committed to sustainability.
EMPLOYEE TRAINING This video garnered more than 29,000 views across
the social media platforms of the Bank.
IndusInd Bank invests in induction
and development programmes for its 2. Runner’s Tips Video – With the focus on six
employees. During FY 2020-21, the Bank in-house runners, the video threw light on how the
conducted 8,52,997 training man-hours for athletes were keeping their spirits alive and the
5,05,132 participants through athlete in them alive.
1,593 programmes.
3. Run to the Moon Video – This was created to
New training initiatives on business commemorate 51 years of man’s landing on the
communication skills, leadership moon and culminated in the Bank’s participation
development, the art of collaboration in the very first virtual running event – Run to the
and interpersonal effectiveness, Moon. This video garnered more than 7,20,000
behavioural/soft skills training, CFD views across the social media platforms of
behavioural/technical training, external the Bank.
training were also conducted in FY 2020-21.
#SPORTSCHANGESLIFE CAMPAIGN
This was an internal employee-centric campaign
launched in November 2020, through which employees
₹874 28.76 ₹259.17 Lakhs

were encouraged to share their stories on how sports
has inspired them in life. The campaign, lived up
to the ethos of the Sports vertical – that ‘there’s a
Average amount spent on Average hours of training and Total spend on learnings
sportsperson in everyone’. A total of 28 employees
training and development/ development/Total learning
across 18 sports were featured through
Full-Time Employee (FTE)
this campaign.
EMPLOYEE MAN-HOURS WORKED

The Bank also celebrates International Women’s
Particulars Man-hours worked in the reporting period Days worked in the reporting period Missed days in the reporting period Day, Environment Day, Earth Day along with
employee volunteering activities aimed at
Employee
Male Female Total Male Female Total Male Female Total
building employee engagement among its
Category people while raising awareness.
Permanent 4,84,89,192 97,33,446 5,82,22,638 53,87,688 10,81,494 64,69,182 35,441 20,488 55,929
Employees
Contractual 18,88,443 10,59,894 29,48,337 2,09,827 1,17,766 3,27,593 4,451 1,953 6,404
Employees
Total 5,03,77,635 1,07,93,340 6,11,70,975 55,97,515 11,99,260 67,96,775 39,892 22,441 62,333
[GRI: 404-1, 404-3]
88 89
People Practices
HUMAN RIGHTS PRACTICES PREVENTION OF HARASSMENT EMPLOYEE DEVELOPMENT PROGRAMMES

IndusInd Bank has a robust and comprehensive All the cases are addressed in line with the statutory Employee Development Quantitative impact of business benefits
Description of business benefits
policy on human rights, diversity and inclusivity obligations laid down in the Prevention of Sexual Programmes (Monetary or Non-monetary)
as well as on the prevention of sexual harassment. harassment (Prevention, Prohibition and Redressal) Act, Introducing employees from diverse • This orientation programme gave new Better product knowledge for sales, lower
The Board maintains a strict oversight. IndusInd Bankis 2013. The employees identified for breach of law have backgrounds to Bank’s structure, vision, joiners adequate exposure about the Bank, operational procedural errors, better knowledge
committed to respect human rights in accordance with also faced appropriate punitive action. strategy, functions, people policies, value its core executive team, structure, business of the Bank’s structure, culture, vision, mission
applicable standards to prevent , forced labor, child system, code of conduct (33 % of FTEs units and their roles/responsibilities, among others.
Training on code of conduct is also undertaken regularly
labor, freedom of association, the right to collective participating in the programme) standardised operational processes and
to create awareness among the employees of the Bank, The business impact has been in terms of
bargaining, equal remuneration and all forms policies, Bank’s business products, future
its subsidiaries, JVs and partners as well as the Board. The Bank conducts a 2-day exhaustive
of discrimination. agenda, code of conduct and requisite HR • Sales force and Relationship Managers
This Group-level code of conduct has been instituted orientation programme across locations
processes being aware of all the products. They gain
The policy is applicable to our own operations which deals with aspects such as country wide where new joiners are given a
confidence to have an effective client
(employees, direct activities, products or services) and classroom orientation on the Bank’s business • Helped new joiners get acquainted with
the Bank and get started on the job interface and acquisition through effective
our suppliers and partners. • Corruption and bribery units, structure, vision, business journey,
sales pitch and customer service. This has
• Discrimination technology platforms, operational processes & • Develop understanding for the Bank’s
been a factor in the growth of the Bank’s
As part of the due diligence process, the following policies, HR policies, etc. operational processes and products
• Confidentiality of information revenues over the past years
activities with respect to human rights are executed improving
• Conflicts of interest E-learning interventions to provide learning
by the Bank: • Orienting new joiners, drawn from diverse
• Antitrust/anti-competitive practices on Bank’s products, processes, compliance, In order to achieve the Bank’s business
organisations, into the ethos and culture of
• Money-laundering and insider trading/dealing risk, credit, treasury goals, there is a need for a trained workforce
• Identification of potential human rights issues arise the Bank
• Environment on products, sales, operational processes,
and Risk identification in our own operations, in our technology, compliance, domain skills • Reducing operational errors leading to
• Health and safety
value chain and in new business relations (mergers, pertaining to say Credit, Risk, Treasury, among higher efficiencies and customer satisfaction
• Whistleblowing
acquisitions, joint ventures, etc.) others. On an operational level, E-learning
• The Bank does a systematic periodic review of the
0
interventions help in:
risk mapping of potential issues covering human The banks e-learning initiatives have
effectively addressed the training needs of - Standardised learning solutions
trafficking, forced labor, child labor, freedom of
the Bank’s workforce by offering customised
association, the right to collective bargaining, equal Complaints of infringement - Cost efficiency
learning solutions on various technical and
remuneration and all forms of discrimination of human rights
behavioural aspects. - Better TATs of training delivery
• The Bank covers its employees, women, children and
third-party contracted labor - Cost of delivery is 10% of that of other
As part of the mitigation and remediation process, the

following activities with respect to human rights are
0 delivery channels
Managing scale and complexity. e- learning has

Cases of child labour,
executed by the Bank: helped the Bank to offer learning solutions to
forced labour, the entire employee base (27,739), which would
involuntary labour and have otherwise involved a significant cost
• No loans are given to customersbusinesses involved
discriminatory employment outlay and would have been a very time and
in any activities employing child labour, juvenile
labour deforestation, sand mining, coal mining resource consuming proposition.
wherever banned
• Human rights reviews are being undertaken from
4
time to time in areas of hiring employees/contract Cases of sexual harassment were
staff and during their life cycle, on an ongoing basis recorded, redressed and stand concluded.
• Periodic checks are done and SOPs are defined for HUMAN CAPITAL RETURN ON INVESTMENT
potential issues covering forced labor, child labor,
608
freedom of association, the right to collective Particulars Monetary Value (₹)
bargaining, equal remuneration and all forms a) Total Revenue Currency: (₹) 2,00,29,00,00,000
of discrimination b) Total Operating Expenses Currency: (₹) 81,57,00,00,000
Cases of staff accountability were
• The SOPs request for document verification and
reported, out of which 606 were c) Total employee related expenses (Salaries + Benefits) Currency: (₹) 30,39,00,00,000
evidence, KYC checks before onboarding
resolved, with 2 cases under process. Resulting HC ROI (a - (b - c)) / c 4.9
100%
Of our employees, contractors, suppliers, service 48
providers and subsidiaries are covered by the Code of Cases under
Conduct through written acknowledgement and training whistle blower policy
90 91
Health and Well-being
Ensuring Zero Tolerance

to Harm
During the COVID-19 pandemic, the
Bank’s employees worked incredibly
SAFE AND SOUND 0 3,100 3,885
During the year, IndusInd Bank conducted a virtual Reported cases of injury/ Total security personnel Total security personnel
hard to support customers and clients. training workshop for women’s self-defence. incidents, occupational trained on human rights in the Company
Many were designated as frontline The virtual sessions received an overwhelming response diseases and work-
and the Bank will continue such engaging sessions for related fatalities
workers and continued to man employees.
the branches while others showed
remarkable adaptability by working 4,950 1,345
from home. The constant effort of the Employees sensitised Women employees trained
about workplace safety through workplace
Bank during this critical time was to through 780 classroom safety sessions achieving
ensure the health and safety of the sessions in FY 2020-21 4,035 man-hours
employees and customers across all
RIGHT OF ASSOCIATION ACTIVE AND PASSIVE SECURITY MEASURES
its facilities.
The Bank allows employees to exercise the lawful
right of free association. However, the Bank does not • CCTV surveillance
ALIGNING WITH SDG GOAL 3: GOOD have any collective bargaining agreements as there • Fire, burglar alarm system
HEALTH AND WELL-BEING is no trade union or employee association. The Bank • Intrusion detection system
encourages transparency across its workforce and • Remote Health Monitoring System for CCTV
IndusInd Bank ensures the health and
enables easy access to senior management through
well-being of its employees through
reduce the potential for accidents, help achieve readily available internal tools.
various initiatives throughout the year
compliance with safety legislations and continually • Intrinsically safe design of locker and
such health awareness campaigns like
improve its performance. It has provided a systematic strong room
#SportsChangesLife and challenges THE BANK’S SAFETY MANAGEMENT SYSTEM
way to identify workplace hazards and risks and to • British Standards Institue/Global Standards
organised for employees on various COMPRISES THE FOLLOWING THREE
setup a continual safety improvement programme to are followed
topics such as nutrition, exercises etc. COMPONENTS:
implement suitable controls to manage risks.
Virtual marathons every month enabled
employees to run/ride and kept them The Bank is committed to providing its employees a
WORKPLACE HEALTH AND SAFETY POLICY • Auto dialler facility System for Branch Manager
motivated. To ensure fitness and keep their safe and secure working environment. A Health and
The Bank’s Workplace Health and Safety Policy and and MCSOP
spirits up during the lockdown, the Bank Safety Management System helps achieve compliance
safety-related vision/mission/targets are available • Emergency contact numbers of critical services
organised the Squat Challenge and Runner’s with safety legislations and the implementation of
online under Policies and Codes here. (Police, Fire, Ambulance, etc.)
Tips videos were produced. suitable controls to manage risks against identified
workplace hazards.
OHS GOVERNANCE AND MANAGEMENT
The Bank has a Fire Safety Manual, Security Manual, GOVERNANCE STRUCTURE ON FIRE AND
• Physical/Human barriers
IndusInd Bank prioritises employee health and Facilities and Administration Manual and Workplace SAFETY
• Trained and skilled security guard and gunmen
safety and has laid out action plans for zonal Health and Safety Policy in place. Regular drills and Responsibility, accountability and authority for
• Role players and surprise check/cold calling
managers along with a dedicated H&S department. trainings in first aid, fire safety and personal safety development, implementation and performance
There is documentation of health risks on a regular are conducted together with periodic checks on the evaluation of the safety management system are
basis following a bottom up approach and at the physical and mental health of employees allocated by the top management of the organisation
strategic level a top down approach where in evaluation to achieve the desired safety objectives.
During FY 2020-2021: Fire safety training and evacuation
19,500
of progress in reducing/preventing health issues/risks is
drills were conducted at 35 high-rise buildings and
monitored through internal inspections, consultations
1,350 bank branches across all zones. More than 19,500
by OHS specialists as well as independent external
employees including outsourced staff participated in WORKPLACE SAFETY ASSESSMENT
verification of health, safety and well-being such as
these fire and evacuation drills /training programmes. The Bank maintains a keen eye and corrects
OHSAS 18000. Goals regarding H&S are embedded in
Online e-learning modules covering emergency workplace hazards at all the locations.
performance and remuneration of management.
preparedness at ground level have been implemented Emergency prevention, preparedness and response Employees participated in
The Bank developed effective Health & Safety for further raising the awareness threshold of the arrangements have been established in cooperation
Management System which integrates safety in environment in this regard. The efficacy of the with external agencies as applicable. The Bank also fire and evacuation drills and
day-to-day operations and allows an organisation fire drills and practices carried out is evident from conducts periodic audits, safety inspections and
to consistently identify and control its safety risks, non-occurrence of any major fire incidents since 2014. management review to determine the effectiveness training programmes
of the system.
[GRI: 403-1, 403-2, 403-3] [GRI: 102-41, 403-2, 403-3, 403-4, 403-5, 403-9, 403-10]
92 93
Highlights
The bank is underpinned by
good governance practices. 6
Independent Directors
Corporate governance has always
been a cornerstone for the bank’s 2
Women Board Members
operations, laying down the
foundation for a sustainable 8
An average Board member’s tenure
and viable business.
18,500+
Participants attended
business ethics training
module in FY 2020-21
ETHICS AND
VALUES AT IN THIS SECTION
WORK
Corporate Governance 96
Sustainable Procurement 104
Way Forward 105
Upholding Best Practices

BOARD STRUCTURE BOARD EXPERIENCE
The leadership at IndusInd Bank provides strategic guidance and is The Chairman is Part-time Non-Executive Chairman of Six Independent or Non-Executive members have
committed to improving the governance mechanism to better the Bank’s the Board and all executive functions of the Bank are relevant industry experience including
invested in the MD & CEO. This indicates the split in the
value-creation potential. roles of the Chairman and the Managing Director & CEO
• Information Technology – Mr. Shanker Annaswamy
and Mrs. Akila Krishnakumar
of the Bank.
• Banking and Finance – Dr. T. T. Ram Mohan,
APPOINTMENT OF THE BOARD Law, Small-scale industry as well as Information Six out of the total number of Directors (8) are Mr. Sanjay Asher, Mrs. Bhavna Doshi
Technology, Human Resources, Business Development Independent Directors on the Board, including two • Small Scale Industry – Mr. Rajiv Agarwal
The Bank appoints all Directors in conformity to the
and Management, Payment and Settlement Systems woman Directors.
‘Fit and Proper’ criteria laid down in the RBI’s extant
and Risk Management. BOARD EVALUATION
guidelines and takes professionals with adequate
expertise and experience on the Board. The Board IndusInd Bank adheres to and maintains a board
1 1 The Board has formulated a Policy on Performance
is governed as per the provisions of the Banking diversity policy that does not discriminate on the basis Evaluation, which provides a guideline for evaluation
Regulation Act 1949. The Nomination & Remuneration of gender, caste, race or ethnicity. The policy can be of the Board, its committees, Individual Directors’ and
Committee determines the suitability of a person for accessed here. various aspects such as attendance, participation and
the position of ‘Director’, in compliance with contribution towards strategies of the Board. The policy
The Bank exceeds the statutory requirement of having
RBI guidelines.
at least one-woman Director on the Board. At present, 8 6
can be found here. The key focus areas of evaluation
Total Board size of the Board Directors are knowledge of business,
The Bank organises various induction programmes the bank has two women directors (Mrs. Bhavna Doshi
diligence and preparedness, effective interaction with
for its Directors, inviting external domain experts to and Mrs. Akila Krishnakumar) along with six male
others, constructive contribution to discussion and
provide trainings, and also encourages Directors to directors, who come from diverse backgrounds and
strategy, concern for stakeholders, attention to the
attend programmes conducted by other bring varied expertise in a mix of areas. The Directors’
internal controls’ mechanism and ethical conduct issues.
reputed institutions. profiles can be found here.
6 While considering the extension of tenure of a Director,
The Board has an optimal combination of Executive, the Nomination and Remuneration Committee of the
BOARD COMMITTEES
Non-Executive, Independent and Woman Directors Executive Directors (Managing Director & CEO) Board reviews the Directors’ performance and makes a
The Board has constituted various committees for in accordance with the requirements of the Banking Independent Directors recommendation to the Board.
the efficient conduct of its business and ensuring Regulation Act, 1949, the Companies Act, 2013, Listing Other Non-Executive Directors The Board’s performance is evaluated annually by
compliance with the regulatory statutory requirements Regulations, and Articles of Association of the Bank.
an external agency, which appraises the Board basis
of RBI, Companies Act, and SEBI (Listing obligations and
the criteria defined by the Bank’s Nomination and
Disclosure Requirements) Regulations, 2015, BOARD INDEPENDENCE
BOARD MANDATES Remuneration Committee:
among others.
IndusInd has a single-tier system and its Board of
Number of Non-Executive/Independent Directors with • Development of suitable strategies and business
Directors has eight members, including the Chairman,
THE COMMITTEES OF THE BOARD INCLUDE: four or less other mandates: Mr. Shanker Annaswamy, plans at appropriate time and their effectiveness
Managing Director & CEO and six directors.
Dr. T. T. Ram Mohan • Implementation of robust policies and procedures
• Audit Committee: Review Committee
The Independent Directors meet the criteria of • Size, structure and expertise of the Board
(Wilful Defaulters) Number of other mandates for
independence as laid down under SCHEDULE IV • Oversight of the Financial Reporting Process,
• Compensation Committee: Stakeholders Non-Executive/Independent Directors restricted to 13
and Section 149 (6) of the Companies Act, 2013 and including Internal Controls
Relations Committee
Regulation 16 (1) (b) and 17 (1) (a) of the Securities • Willingness to spend time and effort to learn about
• Customer Service Committee: Special Committee
(for monitoring large value frauds)
• Corporate Social Responsibility & Sustainability
and Exchange Board of India (Listing Obligation and
Disclosure Requirements) Regulations, 2015. 94.08% the Bank and its business
• Awareness about the latest developments in the
areas such as Corporate Governance framework,
committee : IT Strategy Committee An Independent Director can be appointed for two Board meetings attended in last financial reporting, industry and market
• Finance Committee: Vigilance Committee consecutive terms of four years each. The tenure business/fiscal year conditions, etc.
• Nomination and Remuneration Committee of an Independent Director will be in line with the
provisions of the Banking Regulations Act, 1949.
Minimum of attendance for all members required,
BOARD DIVERSITY Independent Directors are not liable to retire by
at least is 12.5%
rotation. Re-appointment at the end of the term shall
IndusInd Bank has a robust and balanced Board with a
be based on the recommendations of the Nomination
wide range of attributes ensuring a blend of functional BOARD ELECTION
and Remuneration Committee and subject to approval
and industry experience and expertise. The Bank
of the Board and the shareholders. In considering The Bank’s Board members are individually elected and
maintains diversity in Board in compliance with Section
re-appointment, the Board will take into consideration re-elected on an annual basis. The average tenure of
10A (2)(a) of the Banking Regulation Act, 1949.
the outcome of the performance evaluation process Board members is eight years.
The Board has expertise and special knowledge or and whether the Director continues to meet the
practical experience in respect of one or more of the independence criteria as defined under the Companies
following namely Accountancy, Agriculture and Rural Act, 2013.
Economy, Banking, Co-operation, Economics, Finance,
[GRI: 102-18, 102-19, 102-20, 102-22, 102-23, 102-24] [GRI: 102-18, 102-19, 102-20, 102-24]
96 97
SHAREHOLDING PATTERN Volatility, Risk free interest rates and Expected and clawback arrangement would adjust deferred
life of options. remuneration after vesting.
Stock Ownership of MD and CEO and Key Managerial Personnel as on March 31, 2021.
CEO’s shareholding is 34 times his base salary Employee Stock Option Scheme 2020 (‘ESOS 2020’) is The CEO is granted Stock Options which are a part of
granted to the Eligible Employees, including Directors the Variable Compensation. Upon vesting, the options
Particulars Number of shares other than the Promoters, Non-Executive, Independent have to be exercised within a maximum period of five
Directors and Directors holding more than 10% of the years or such period as may be determined by the
Mr. Sumant Kathpalia: (Appointed as Managing Director & CEO on March 24, 2020) 5,94,818
outstanding Equity shares of the Bank, having Face Compensation Committee from time to time. The stock
EXECUTIVE COMMITTEE MEMBERS value of ₹10 per share under ESOS 2020 by way of options are equity settled where the employees will
Mr. Arun Khurana 4,73,400 issuance of Employee Stock Options. The fair value of receive one equity share per stock option.
options granted during the year has been estimated on
Mr. S.V. Zaregaonkar 75,400 The longest performance period covered by the Bank’s
the date of grant using the Black-Scholes option
Mr. S.V. Parthasarathy 45,250 executive compensation plan is one year. The ratio
pricing model.
between the total annual compensation of the CEO and
Mr. Sanjeev Anand 140
The percentage of the short-term bonus deferred in the median employee compensation is 101.22.
Mr. Ramesh Ganesan 1,10,000 the form of shares or stock options is calculated as a
The compensation of CEO and some executive
Mr. Zubin Mody 5,600 cumulative figure for the 18 employees defined as WTD
committee members is linked to the responsible
/CEO/risk takers/other control function staff. The Bank
Mr. Sanjay Mallik 16,500 investment and sustainable financing which is a part of
has a clawback provision in place as per the RBI
Mr. Ramaswamy Meyyappan 56,000 the member’s KRA. The compensation of the CEO and
guidelines. The Bank will implement malus/claw-back
Country Head - Technology and CGMO is linked to the
Mr. Bijayananda Pattanyak 1,45,500 arrangements with the concerned employees in case
achievement of Product Innovation and Digitisation
of deferred variable pay. The criteria would be negative
Mr. Soumitra Sen 1,85,789 goals as part of the KRA. The compensation of the CEO
contributions to the bank and/or relevant line of
Mr. Anil Rao 10,500 and Chief HR Officer is linked to the reduction of the
business in any year. As applicable, malus arrangement
attrition rate which is also a part of the member’s KRA.
Mr. Anish Behl 1,45,400 would adjust deferred remuneration before vesting
Mr. Samir Dewan 60,500
Ms Roopa Satish Nil
Mr. Rana Vikram Anand Nil SUSTAINABILITY GOVERNANCE STRUCTURE longer run. It upholds sustainability in every aspect of
Mrs. Charu Sachdeva Mathur Nil its functioning.
The Bank’s current PC-5 strategy has embedded
sustainability into its core framework. It operates At the apex of the Bank’s sustainability governance lies
responsibly to achieve inclusive growth in terms of the CSR and Sustainability Committee Board,
The Bank has no specific stock ownership requirements variable compensation. During the year, the Bank has
revenue, environmental and social value creation. followed by the Sustainability Council and the
for the CEO and other members of the Executive implemented the RBI Guidelines on Compensation of
The Bank understands that inclusion of sustainable Sustainability Team.
Committee. Having specific stock ownership Whole Time Directors /Chief Executive Officers/Material
practices is key to surviving and thriving in the
requirements for the CEO and other members of Risk Takers and Control Function Staff, issued wide
executive committee is not a requirement as per Indian circular dated November 4, 2019. The quantum of
Companies Act. No governmental institution owns more overall variable pay to be disbursed in a year for all
than 5% of the total voting rights. No (founding) family eligible employees including the material risk takers
members individually have more than 5% of the voting and risk controllers may vary from year to year on the CSR &
rights. The Bank does not have differential voting rights basis of the financial performance of the Bank measured Sustainability Sustainability Sustainability
shares as well as dual class shares. It has a single class through various parameters such as Net Interest Margin, Committee Council Team
of shares for general public as well as for the senior Net Interest Income, Return on Assets, Profit After Tax of Board
management. Total number of shares as on March 31, and Return on Equity.
2021 is 77,33,72,299.
The CEO is granted Stock Options. The fair value of
options granted during the year has been estimated on
PROMOTER SHAREHOLDING • Agree, review and evaluate the • Sustainability strategy, goals and
the date of grant using the Black-Scholes option pricing • Management and
sustainability, strategy of the Bank performance
model. Expected volatility is a measure of the amount implementation of strategies
Promoter Name Number of shares Percentage • Provide industry perspective to • Align sustainability policies with
by which the equity share price is expected to fluctuate • Dedicated Head of Sustainability
IndusInd International the sustainability agenda of the the business units
8,95,37,464 11.58 during a period. The measure of volatility used in to drive agenda
Holdings Limited Bank • Review compliance with respect
Black – Scholes option pricing model is the annualised • Business and functional
to sustainability
IndusInd Limited 2,79,78,546 3.62 standard deviation of the continuously compounded coordination
Total 11,75,16,010 15.20 rates of return on the share over a period of time.
Expected volatility has been computed by considering
the historical data on daily volatility in the closing
CEO’S COMPENSATION
equity share price on the National Stock Exchange
The Bank has pre-defined financial returns and (NSE), over a prior period equivalent to the expected life
relative financial metrics relevant for the CEO’s of the options, till the date of the grant. The fair value of
variable compensation. options granted during the year has been estimated on
the date of grant using the Black-Scholes option pricing
The Bank has guidelines on deferred bonus, time
model with the following assumptions: Dividend yield,
vesting, and performance period for the CEO’s
98 99
VIGILANCE MECHANISM POLICIES AND THE CODE OF CONDUCT

IndusInd bank has a strong vigilance mechanism in There were 15 Vigilance complaints/references received
place for ensuring prudent governance. These policies directly of which seven were closed after investigation
Anti-corruption Policy Whistleblower Policy
help the Bank uphold its code of conduct and (not substantiated), four cases resulted in punitive
ethical standards. action, three were under disciplinary proceedings and The Bank prohibits corruption in any form, including: The Bank has a rigid whistle-blower process and an
one was under investigation as on March 31, 2021. open communication channel wherein employees can
There were no complaints received from outside
• Bribes in any form (including kickbacks) on any raise whistle blows/complaints through the forum to
parties and substantiated by the Bank regarding There are no incidents of non-compliance with
portion of contract payments or soft dollar practices the Corporate Ombudsman.
breaches of customer privacy and loss of customer data regulations or voluntary codes concerning product
• Undisclosed direct or indirect political contributions
or complaints received from regulatory bodies during and service information and labeling. Also there are Under the Whistleblower policy, the Bank protects
• Undisclosed charitable contributions and
the year. no incidents of non-compliance with regulations or the identity of the whistleblower, which is known
sponsorship
voluntary codes concerning marketing communications. only to designated authorities. Any form of reprisal or
The Directors, both, Executive and Non-Executive,
The Bank conducts regular training sessions for the retaliation against the whistleblower is thus avoided.
top management, middle level management and all
employees to sensitise them in vigilance practices.
associates follow and adhere to strong corporate codes
of conduct laid out by the organisation in its culture
Clawback Policy
and also in policies accessible to all. These policies lay
Privacy Policy
emphasis on activities being carried out in an honest, The Bank has a clawback provision in place as per the
fair, diligent and ethical manner, within the scope of the The Bank takes responsibility to maintain the guidelines of the RBI. The Bank has regulations on
authority conferred upon associates and in accordance confidentiality of the information, at all times. deferred bonus, time vesting, and performance period
with the laws, rules, regulations, agreements, guidelines for the CEO’s variable compensation. The longest
Privacy policy applies to the entire operations of the
and standards. Directors and associates have a duty performance period covered by the Bank’s executive
Bank, including suppliers. Mr. Anil Rao is the custodian
to make decisions and implement policies in the compensation plan is 1 year.
of the Privacy policy and related issues. Privacy policy
best interests of the Company and its stakeholders.
system is embedded in group-wide risk/compliance
The Board of Directors are entrusted with the fiduciary CODE OF CONDUCT CASES
management. Disciplinary actions in case of breaches
responsibility of overseeing the assets and affairs
of privacy are taken as and when required. To ensure Particulars FY 2020-21
of the Company.
compliance, as per the statutory requirement of the
Cases of corruption* 0
The Bank has a Chief Compliance Officer who reports to Reserve Bank of India, audit of the privacy policy is
the MD and CEO of the Bank and is the custodian of being carried out. Whistle blower cases** 48
the anti-money-laundering and anti-terrorism Breaches against codes 4
The bank’s Privacy policy can be accessed here.
financing policy. of conduct and ethics
* During
the year, 6 complaints were received/dealt with in the category
of corruption and bribery, none of which could be substantiated/
found to be true.
** Out
of 48 whistle blower cases, 9 cases did not require any
investigation, while 39 were investigated. Out of 39, 10 were pending
investigation as on 31st March 2021 while 29 were closed after
investigation resulting in 10 cases of punitive action.
The Bank takes responsibility to maintain the

confidentiality of the information, at all times.
Privacy policy applies to the entire operations of the
Bank, including suppliers. The Bank has a General
Banking Operations (GBO) department which
oversees the Data Privacy at the Bank. Mr. Anil Rao,
who is the Head-Consumer Operations overseas
the implementation of the policy. Privacy policy
system is embedded in group-wide risk/compliance
management. Disciplinary actions in case of breaches
of privacy are taken as and when required. To ensure
compliance, internal audits are also conducted. As per
the statutory requirement of the Reserve Bank of India,
audit of the privacy policy is being carried out.
[GRI: 102-16, 102-17, 417-3] [GRI: 102-16, 102-17, 205-3]
100 101
ANTI-COMPETITIVE AND MONOPOLISTIC HONESTY AND INTEGRITY TAX STRATEGY

PRACTICES
The Bank’s governance practices are laid out on the The Bank’s business operations are largely concentrated and international regulatory initiatives that press for
The Bank strictly adheres to the prevention of foundation of honesty and integrity, conducting in India and international activities are restricted to the adoption of stronger capital requirements and loss
anti-competitive and monopolistic practices during business in compliance with all regulatory and resource mobilisation in the international markets. absorbency, among other measures. Global Systemically
its operations. As a result, there is no legal case legal obligations. The Bank is committed to compliance with the tax laws Important Banks, as defined and monitored by the
pending/completed against the Bank with respect and regulations in the countries in which the Financial Stability Board (FSB), are particularly subject to
The principles of anti-corruption and bribery are
to anti-competitive behaviour and violations of company operates. these regulatory initiatives, as the Basel Committee on
captured in the three codes of conduct the Bank:
anti-trust and monopoly legislation for FY 2020-21. Banking Supervision seeks to improve the resilience of
Since the Bank does not have material earnings
The Bank did not incur any fines or settlements related banks and banking systems that are active in business
• C ode of Conduct for Directors and Senior emanating from foreign operations, the Bank is
to anti-competitive practices in the past four fiscal areas with high-risk exposure. As per the latest list
Management considered to operate only in the domestic segment.
years. There are no ongoing investigations related to released by the FSB, IndusInd Bank does not fall under
• Code of Conduct for Prevention of Insider Trading The Bank is not present in any tax haven countries
anti-competitive practices. the ambit of Global Systemically Important Banks
• Code of Practices and Procedures for Fair Disclosure and does not do business in any tax evasive modes.
(G-SIB).
The Bank does not transfer value created to low tax
ANTI-MONEY LAUNDERING
ZERO-TOLERANCE APPROACH TOWARDS jurisdictions or use tax structures without
BASEL III LEVERAGE COMPONENTS
The Bank has established procedures to ensure the BRIBERY AND ANTI-CORRUPTION commercial substance.
effective establishment and implementation of a Particulars March 2020 March 2021
IndusInd Bank is committed to act professionally, The tax policy of the Bank is approved by the board
Company culture opposing money-laundering and
fairly and with integrity in all its business dealings of directors. Tier 1 capital (₹ Mn) 376,853 4,59,230
terrorism financing. These include:
and relationships. Strong guidelines and stringent Exposure measure (₹ Mn) 39,65,994 45,29,275
The Bank does not support or align with political
control measures have been laid down to avoid and
• Customer due diligence (CDD): Formal policies and campaigns, political organisations, lobbyists or lobbying Leverage ratio (%) 9.50 10.14
stop malpractices, consequences of which are also
procedures include customer verification based on organisations and other tax-exempt groups to influence
well defined. The bank promotes its employees in
reliable sources policy.
pointing out such malpractices, if found. The Bank has RESTRICTED ACCESS AND ETHICS
• Non-face-to-face CDD: Formal policies and
also made no direct or indirect political contributions
procedures are in place for non-face-to-face TRADE ASSOCIATIONS The Bank secures financial information. It maintains
and charitable contributions. Sponsorships are part of
customers physical, electronic and procedural safeguards to
CSR funding. Any donations made are legal and ethical Trade associations supported by the Bank
• Terrorist financing: CDD procedures include formal protect the customer information. Employees are
under local laws and practices, such as mandates laid
searches against lists of known or suspected Particulars Monetary Value (₹) authorised to access customer information for business
down by Section (135) of the Companies Act 2013.
terrorists issued by competent authorities having purposes only.
Indian banks association 27,25,000
jurisdiction over the relevant financial institution IndusInd Bank does not encourage associates or any
The Bank’s employees are bound by a code of ethics
• Politically exposed persons (PEPs): Formal policy connected stakeholders to follow unethical means Micro finance institutions network 11,61,551
that requires confidential treatment of customer
and procedures in place covering the identification, such as Bribery or kickbacks. We have a zero tolerance Institutional investor advisory services India limited 6,49,000 information and are subject to disciplinary action if
periodical review and monitoring of PEPs approach to bribery and corruption and are committed
Bombay chamber of commerce and industry 88,500 they fail to follow this code. IndusInd Bank may also
• Senior management to sign off PEP to acting professionally, fairly and with integrity in all
Indo-German chamber of commerce 10,900 share Information to provide customers with better
customers or other customers from countries, its business dealings and relationships, wherever they
services and a range of offers and services available to
businesses and products with greatest risk of cooperate, and to implementing and enforcing effective Total 46,34,951
them. If customers desire the Bank to limit such sharing
money-laundering/terrorism financing systems to counter bribery. Strong guidelines have been
whereby customer would not like to be informed
• Record keeping for five years for all laid down to avoid malpractices and consequences of
GLOBAL SYSTEMICALLY IMPORTANT of offers available, he/she may contact the Bank at
anti-money-laundering/terrorism financing-related such actions are also well defined. Strong and stringent
BANK (G-SIB) reachus@indusind.com.
documents control measures are in place to stop such activities
• Annual independent assessment of monitoring and associates are encouraged to bring to notice any Banks play a vital role in the flow of money and
procedures via an external agency such malpractice which might have been missed out. credit between savers and borrowers. For a working
The Bank has also made no direct or indirect economy and society, the stability and sustainability
There is no legal case pending against the Bank with
political contributions. of the entire financial system is of utmost importance.
respect to anti-competitive behaviour and violations of
Learnings from past financial crisis have driven national
anti-trust and monopoly legislation for FY 2020-21.
TAX RATES
Particulars
Earnings before Tax (₹ in crores)

FY 2019-20
6,120.61
FY 2020-21
3784.14
26.76
Average tax rate
Reported Taxes (₹ in crores) 1,702.70 947.75
28.18
Effective Tax Rate (in %) 27.8191 25.05
Cash Taxes Paid (₹ in crores) 2,061.36 730.08
Cash Tax Rate (in %) 33.679 19.29 Average Cash Tax Rate
[GRI: 102-16] [GRI: 102-13]
102 103
Sustainable Procurement Way forward
Embedding Sustainability in the Geared for a Carbon

Value Chain Neutral Future
IndusInd Bank believes in responsible sourcing and is committed to IndusInd Bank recognises the need to have specific guidelines for financial
building a strong and reliable supply chain while onboarding many local institutions on key ESG disclosures like SBTi, TCFD among others.
suppliers, which is fundamental to carrying out sustainable operations.
SUSTAINABLE PROCUREMENT POLICY The Bank has undertaken a commitment that 80% of The Bank looks forward to having standard and specific CLIMATE-RELATED SCENARIO ANALYSIS
the vendors will have ESG policies and practices in guidelines, benchmarks and best practices on the
The Bank’s sustainable procurement policy has acted Conduct climate scenario stress in line with TCFD
place. In order to meet the compliance for this target, a following aspects:
as a central approach in bringing uniformity in its recommendations to appropriately incorporate
Vendor Assessment Questionnaire on ESG was shared
procurement practices keeping in mind transparency, potential impacts of climate change on businesses,
with large vendors, including both OEMs and MSMEs. NET ZERO CARBON TRANSITION
safety and inclusion of human rights. This policy guides strategies, and financial performance in the planning
These suppliers provide technology, equipment,
the Bank’s software and hardware related procurement. Climate risks factored into capital requirements, hence processes. The Bank needs to consider how such risks
IT hardware, white goods manpower, security and
Through this policy, the bank maintains a keen focus cost of capital is reflected in pricing and underwriting and opportunities may evolve and what the potential
housekeeping services to the Bank. An external agency,
on sustainable sourcing, prioritising local suppliers and decisions. Sustainability-linked loans with KPIs are implications may be under different conditions.
namely Deutsch Quality System India Pvt Ltd (DQS),
procures raw material at a fair price. reflective of actions in the real economy to reduce Scenario analysis is a strategic planning tool to
was appointed to help audit and assess the Bank’s
climate risk and associated weighting on the Banks’ enhance critical strategic thinking by challenging
vendors on the ESG information provided by them.
ENGAGING LOCALLY balance sheets. ‘business-as-usual’ assumptions and instead exploring
These suppliers were assessed on their social and
alternatives based on their relative impact and
The Bank prefers to interact with local suppliers who environment practices, including health and safety,
REPORTING FINANCED EMISSIONS AND likelihood of occurrence (i.e. critical uncertainties).
deal with IT-related hardware and software services. employee welfare, water management, EHS, GHG
PORTFOLIO TRAJECTORY A scenario describes a potential path of development
These materials include laptops, desktops, printers, emissions management, etc. The response to the
that will lead to a particular outcome or goal
UPS and UPS batteries. These items are often recycled. questionnaire from 40 vendors was followed by a Gap Develop portfolio impact metrics that take into account
Almost 70% of the products for the Bank are sourced Assessment of vendor’s ESG data and submission of key emissions intensity. Set targets to align portfolios
locally, making for a responsible supply chain. findings and observations. The resultant closure of audit with climate-related goals such as the Paris Agreement.
observations helped improve supplier sustainability Divestment from activities contributing to
SUSTAINABLE PROCUREMENT AUDIT AND ratings and ensure the processes and products supplied climate change.
VENDOR ESG ASSESSMENT to the Bank are more ESG compliant.
SCIENCE-BASED TARGETS
IndusInd Bank has commenced its supplier DQS has provided an Independent Limited Assurance
sustainability journey through the following steps: to IndusInd Bank Limited on Supplier Sustainability The SBTi launched its framework for financial
Assessment for FY 2020-21. institutions in 2020 to set science-based targets
to align lending and investment activities with the
Paris Agreement.
A formal Sustainable Procurement Policy and
a Supplier Code of Conduct are in place 45%
Public commitment to ESG targets on Of vendors (17 nos.) by
sustainable procurement spend are ESG compliant
Conducting supplier engagement and
collecting vendor ESG Declarations
Conducting supplier assessments and
29%
procurement audit Of vendors (19 nos.) are
partially ESG compliant
Refer to the Sustainability Procurement Audit

Assurance Statement here.
3%
Vendors (4 nos.)
need substantial
improvement in their
ESG performance.
[GRI: 102-9] [GRI: 102-12]
104 105
Annexures
Independent IR ESG Assurance Statement
Independent Limited Assurance Statement on Key Performance Indicators disclosed The scope of limited assurance covers the Bank’s pan-India standalone operations across
in the Integrated Report of IndusInd Bank for the financial year ended March 31, various business verticals and information pertaining to the period April 1, 2020 to March 31,
2021 2021.
Responsibility of the Management

The Board of Directors of IndusInd Bank
The Bank’s management is responsible for the selection, preparation and presentation of the
We have been engaged by the Management of IndusInd Bank (“the Bank”), to provide a Limited KPIs for the year ended March 31, 2021, in accordance with the criteria mentioned above. This
Assurance Statement on Key Performance Indicators (“KPIs”) described below and disclosed responsibility includes identification, preparation and reporting of KPIs in accordance to GRI
as per the Global Reporting Initiative (“GRI”) Standards (herein the “GRI Standards Standards, the identification of stakeholders and stakeholder requirements, material matters
Disclosures”) in its Annual Integrated Report (the “Report”) for the year ended March 31, and commitments with respect to sustainability performance. The management is also
2021. responsible for design, implementation and maintenance of adequate internal controls to
facilitate collection, calculation, aggregation and validation of the data, relevant to the KPIs and
Subject Matter preparation of the Report, that is free from material misstatement, whether due to fraud or
error.
We are required to provide limited assurance on the following KPIs, presented in the Report, in
accordance with management’s basis of preparation, the audited financial statements, the Our Independence, Ethical Requirements and Quality Control
audited books of account for the year ended March 31, 2021 and other relevant records and
the GRI Standards Disclosures. Our team comprising multidisciplinary professional, have complied with independence policies of
Deloitte Haskins and Sells LLP, which address the requirements of the International Federation
The terms of management’s basis of preparation and GRI Standards Disclosures comprise the of Accountants (IFAC) Code of Ethics for Professional Accountants in the role as independent
criteria by which the KPIs are to be evaluated for purposes of our limited assurance auditors. We have complied with the relevant applicable requirements of the International
engagement. Standard on Quality Control (ISQC) 1, Quality Control for Firms that Perform Audits and Reviews
of Historical Financial Information, and Other Assurance and Related Services Engagements.
The subject matter includes the following:
We also confirm that we have maintained our independence in the Report and there were no
events or prohibited services related to the Assurance Engagement which could impair our
KPI GRI Disclosure independence.
E-waste Recycled through authorised vendors 306-2
Our Responsibility
Organization Structure – Number of Branch and ATMs across India 102-6; 102-7
Our responsibility is to express a limited assurance conclusion on the KPIs set out in the subject
Training Man Hours and Fire Drills 403-5; 404-1 matter paragraph, as disclosed in the Report for the year ended March 31, 2021, based on the
procedures we have performed and the evidence we have obtained. We conducted our limited
Sexual Harassment of Women at Workplace- Number of Cases Not Applicable
assurance in accordance with International Standard on Assurance Engagement 3000 (Revised)
recorded, redressed and concluded
Assurance Engagements Other than Audits or Reviews of Historical Financial Information (herein
Microfinance Beneficiaries in Bottom of Pyramid (BoP) segment* Not Applicable referred as “ISAE 3000”) issued by the IFAC. This standard requires us to comply with ethical
requirements and to plan and perform our limited assurance engagement to obtain sufficient
Total Employees- Permanent and Contract 102-8 appropriate evidence about whether the KPIs are free from material misstatement.
Employee New Hires and Turnover 401-1 A limited assurance engagement is substantially less in scope than a reasonable assurance
engagement in relation to both risk assessment procedures, including an understanding of
Parental Leaves 401-3
internal controls, and the procedures performed in response to the assessed risks. The
Reported cases of injury/ 403-9; 403-10 procedures we performed were based on our professional judgment and included inquiries,
incidents, occupational observation of process followed, inspection of documents, analytical procedures, evaluating
diseases and workrelated appropriateness of quantification methods, agreeing or reconciling with underlying data, etc.
fatalities
In performing the procedures listed above, we:
Employee Absentee Rate Not Applicable
• Interviewed key personnel including senior executives to understand the governance,
Water Consumption 303-3 systems, internal control environment, risk assessment process and information systems
* Includes details of Bharat Financial Inclusion Limited. during the reporting period, relevant to the KPIs set out in the subject matter paragraph;
Page 1 of 4 Page 2 of 4
[GRI: 102-56] [GRI: 102-56]
106 107
Annexures
Independent IR ESG Assurance Statement
• Tested data, reviewed records and relevant documentation submitted by the Bank, to arrive Restriction on use and distribution
at the data presented in their Report; and
Our work has been undertaken to enable us to express a limited assurance conclusion on the
• Reviewed key systems and processes relating to collation, aggregation, validation and KPI disclosures to the management of the Bank in accordance with the terms of our engagement,
reporting of the KPIs on sample basis. and for no other purpose. We do not accept or assume liability to any party other than the entity,
for our work, for this report, or for the conclusion we have reached.
We have relied on the information, documents, records and explanations provided by the Bank
for the purpose of our review. For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
Our procedures are restricted to detailed testing of source data for the year ended March 31, (Firm’s Registration No. 117366W/W-
2021 and do not include any such testing or the testing of the operating effectiveness of internal 100018)
controls or review of the Bank’s financial performance or any other KPIs for years prior to and
including year ended March 31, 2021.
Pallavi Mahesh Sharma
The procedures performed in a limited assurance engagement vary in nature from, and are less Partner
in extent than for, a reasonable assurance engagement. As a result, the level of assurance (Membership No. 113861)
obtained in a limited assurance engagement is substantially lower than the assurance that would
have been obtained had a reasonable assurance engagement been performed. Accordingly, we
do not express a reasonable assurance opinion about whether the KPIs have been presented, in
all material respects, in accordance with management’s basis of preparation.
Further, a limited assurance engagement does not constitute an audit or review of any of the
underlying information in accordance with International Standards on Auditing or International
Standards on Review Engagements and accordingly, we do not express an audit opinion or
review conclusion.
Refer to the GHG Assurance Statement here.
Our Conclusion
Refer to the Sustainability Procurement Audit
The procedures we have performed and the documents and records that were made available Assurance Statement here.
to us and the information and explanations provided to us by the Bank in connection to the
review of the KPIs, set out in the subject matter paragraph, as disclosed in the Report for the
year ended March 31, 2021, provide an appropriate basis for our conclusion.
Based on the procedures performed and the evidence we have obtained, nothing has come to
our attention that causes us to believe that the KPIs set out in the subject matter paragraph for
the year ended March 31, 2021, are not presented, in all material respects, in accordance with
the management’s basis of preparation and GRI Standards Disclosures.
Other Matters
Our report does not extend to any disclosures or assertions relating to future performance plans
and/or strategies disclosed in the reports. The maintenance and integrity of the IndusInd Bank
website is the responsibility of its management. Our procedures did not involve consideration of
these matters and, accordingly we accept no responsibility for any changes to either the
information on the website, the reports or our independent assurance report that may have
occurred since the initial date of presentation.
Page 3 of 4 Page 4 of 4
108 109
Annexures
Integration with Sustainable Development Goals
SDGs Initiatives Outcome (Beneficiaries) SDGs Initiatives Outcome (Beneficiaries)
NO POVERTY Livelihood financing Microfinance Rural banking • 92,770 students benefitted through education AFFORDABLE • Solar ATMs • Provided solar rooftop installation for a
Enhancing access to education programmes AND CLEAN ENERGY • Renewable and clean energy financing pediatric cardiac care hospital.
• 1,209 youth and entrepreneurs trained for • Schools on rooftop solar • Installed AC micro-grid system of 330
employable & entrepreneurial skill to generate kWp capacity in an island of Sundarbans,
• Solar streetlights
income benefitting a population of 39,000 people
• 1,600 MTCO2e Emissions saved through clean
ZERO HUNGER Livelihood financing Legal and financial literacy,
energy solutions
skilling and rehabilitation programme for women
DECENT WORK AND Digitisation Financial inclusion Rural banking • Recorded a 63% growth in rural customers
ECONOMIC GROWTH
GOOD HEALTH AND Lending in healthcare Improving health care • Set up 310 e-health clinics across 579 villages
WELL BEING access: e-health clinics, specialised HIV benefitting 625,029 people
and cancer care • Provided specialised care to 2591 patients
through 8 hospitals INDUSTRY INNOVATION • Financial inclusion Lending in infrastructure • 639 athletes benefitted through sports
AND INFRASTRUCTURE Microfinance Rural banking Enhancing access programs
to education • 182 medals won at 57 tournaments
QUALITY EDUCATION Lending in education Legal and financial literacy • Initiatives spread across 4,317 schools • IndusInd for Sports • 77% athletes are differently abled
Programmes conducted for improvement in benefitting 92,770 students and 4,221
education Programmes offering scholarships and teachers • 27% athletes are female
fellowships to Indian students REDUCED INEQUALITIES Microfinance Promoting digital literacy Rural • Supported 83.77 lakh women through
banking Enhancing access to education IndusInd microfinance
GENDER EQUALITY Equal opportunity employer Microfinance Rural • Provided employment security to 1,209 youth for Sports
banking Enhancing access to education IndusInd across 290 villages.
for Sports Legal literacy, skilling and rehabilitation • 45% of differently abled beneficiaries
programmes for women
• 47% of women beneficiaries SUSTAINABLE CITIES Lending in affordable housing Areas of special • Planted 56,000 trees across 11 cities,
AND COMMUNITIES interest: Preserving heritage, arts and culture thus creating 825 CO2e/ annum carbon
CLEAN WATER AND • Lending in infrastructure and housing Urban afforestation sequestration potential
SANITATION • Water stewardship
• Water body restoration
Water body restoration in Rural areas • 9,365,510 Cub. Mt. of Pondage created across RESPONSIBLE CONSUMPTION Livelihood financing Microfinance Rural banking • Waste management program in Dehradun is
190 villages AND PRODUCTION Solid waste management benefitting more than 25,000 people
• 153,635 Trees planted
• 155,502 Lives benefitted
Water body restoration in Urban areas • 57,429,465 Cub. Mt. of water holding capacity
created across 7 water bodies CLIMATE ACTION Urban Afforestation drives • Planted 56,000 trees for increasing the carbon
• 10,145 Trees planted sequestration capacity of cities
Installed RO based water ATMs across Uttar • 26,636,420 litres of water dispensed across
Pradesh and Rajasthan 45 villages benefitting a population of 81,000
people
110 111
Annexures
GRI Content Index
In accordance with the GRI Standards (Core) option
WORD DOCUMENT PAGE WORD DOCUMENT PAGE

GRI STANDARD DISCLOSURE DESCRIPTION NUMBER / GRI STANDARD DISCLOSURE DESCRIPTION NUMBER /
REFERENCE LINK REFERENCE LINK
GRI 102: GENERAL DISCLOSURES 2016 REPORTING PRACTICE 102-45 Entities included in the consolidated 2
ORGANIZATIONAL 102-1 Name of the organisation 8 financial statements
PROFILE 102-2 102-46 Defining report content and topic Boundaries 2
Activities, brands, products, and services 10-11
102-3 102-47 List of material topics 36
Location of headquarters Back Cover
102-4 102-48 Restatements of information 2
Location of operations 9
102-5 102-49 Changes in reporting 2
Ownership and legal form 08-09
102-6 102-50 Reporting period 2
Markets served 10
102-7 102-51 Date of most recent report 2
Scale of the organization 08-09, 26-27
102-8 102-52 Reporting cycle 2
Information on employees and other workers 26-27, 84-85
102-9 102-53 Contact point for questions regarding the report Back Cover
Supply chain 104
102-10 102-54 Claims of reporting in accordance with 2, 118
Significant changes to the organization 2
and its supply chain the GRI Standards
102-11 102-55 GRI content index 118-121
Precautionary Principle or Approach 2
102-12 102-56 External assurance 106
External initiatives 75, 105
102-13 Membership of associations 103 GRI 200: ECONOMIC
102-14 GRI 201: 103-1 Explanation of the material topic and its Boundary 12-15
STRATEGY Statement from senior decision-maker 6-7
ECONOMIC 2016 103-2 The management approach and its components 12-15
102-15 Key impacts, risks, and opportunities 28-33, 37
102-16 103-3 Evaluation of the management approach 12-15
ETHICS AND INTEGRITY Values, principles, standards, and norms of behavior 9, 100-102
102-17 201-1 Direct economic value generated 15
Mechanisms for advice and concerns about ethics 100-101
and distributed
GOVERNANCE 102-18 Governance structure 96-97
GRI 203: 103-1 Explanation of the material topic and its Boundary 64-81
102-19 Delegating authority 96-97 INDIRECT ECONOMIC 103-2 The management approach and its components 64-81
102-20 Executive-level responsibility for economic, 96-97 IMPACTS 2016
103-3 Evaluation of the management approach 64-81
environmental, and social topics
102-21 203-1 Infrastructure investments and services Supported 64-81
Consulting stakeholders on economic, environmental, and 34-35
social topics GRI 205: 103-1 Explanation of the material topic and its Boundary 101-102
102-22 Composition of the highest governance body 96 ANTI-CORRUPTION 103-2 The management approach and its components 101-102
and its committees 2016
102-23 Chair of the highest governance body 96 205-3 Confirmed incidents of corruption and actions taken 101
102-24 Nominating and selecting the highest 96-97 GRI 300: ENVIRONMENT
governance body
GRI 302: 103-1 Explanation of the material topic and its Boundary 51
STAKEHOLDER 102-40 List of stakeholder groups 34-35 ENERGY 2016 103-2 The management approach and its components 51
ENGAGEMENT 102-41 Collective bargaining agreements 93
103-3 Evaluation of the management approach 51
102-42 Identifying and selecting stakeholders 34-35
302-1 Energy consumption within the organization 51
102-43 Approach to stakeholder engagement 34-35
102-44 Key topics and concerns raised 34-35 WATER AND 103-2 The management approach and its components 54
EFFLUENTS 2018
303-1 Interactions with water as a shared resource 54
303-2 Management of water discharge-related impacts 54
303-3 Water withdrawal 54
[GRI: 102-54, 102-55] [GRI: 102-55]
112 113
Annexures
GRI Content Index
WORD DOCUMENT PAGE WORD DOCUMENT PAGE

GRI STANDARD DISCLOSURE DESCRIPTION NUMBER / GRI STANDARD DISCLOSURE DESCRIPTION NUMBER /
REFERENCE LINK REFERENCE LINK
GRI 305: 103-1 Explanation of the material topic and its Boundary 52-53 GRI 413: 103-1 Explanation of the material topic and its Boundary 74-81
EMISSIONS 2016 103-2 The management approach and its components 52-53 LOCAL COMMUNITIES 103-2 The management approach and its components 74-81
2016
103-3 Evaluation of the management approach 52-53 103-3 Evaluation of the management approach 74-81
305-1 Direct (Scope 1) GHG emissions 52-53 413-1 Operations with local community engagement, impact 74-81
305-2 Energy indirect (Scope 2) GHG emissions 52-53 assessments, and development programmes
305-3 GRI 417: 103-1 Explanation of the material topic and its Boundary 23
Other indirect (Scope 3) GHG emissions 52-53
MARKETING AND 103-2 The management approach and its components 23
305-4 GHG emissions intensity 52 LABELING
103-1 103-3 Evaluation of the management approach 23
GRI 306: Explanation of the material topic and its Boundary 54 2016
EFFLUENTS AND 103-2 417-3 Incidents of non-compliance concerning 100
The management approach and its components 54
WASTE 2016 marketing communications
306-2 Waste by type and disposal method 54 CUSTOMER 103-2 The management approach and its components 22-23
GRI 307: 103-1 Explanation of the material topic and its Boundary 50 PRIVACY 2016
ENVIRONMENTAL 103-2 The management approach and its components 50
COMPLIANCE 2016 418-1 Substantiated complaints concerning breaches of 22-23
customer privacy and losses of customer data
307-1 Non-compliance with environmental laws and regulations 50 103-1
GRI 419: Explanation of the material topic and its Boundary 75
GRI 400: SOCIAL SOCIO-ECONOMIC 103-2 The management approach and its components 75
GRI 401: 103-1 Explanation of the material topic and its Boundary 84-87 COMPLIANCE 2016
EMPLOYMENT 2016
103-2 The management approach and its components 84-87 419-1
Non-compliance with laws and regulations in the social 75
103-3 Evaluation of the management approach 84-87 and economic area
401-1 New employee hires and employee turnover 85, 87
401-3 Parental leave 86
103-2 The management approach and its components 92-93
403-1 Occupational health and safety management system 92
403-2 Hazard identification, risk assessment, and incident 92-93
investigation
403-3 Occupational health services 92-93
403-4 Worker participation, consultation, and communication on 93
occupational health and safety
403-5 Worker training on occupational health and safety 93
403-9 Work-related injuries 93
403-10 Work-related ill health 93
TRAINING AND 103-2 The management approach and its components 88
EDUCATION 2016

404-1 Average hours of training per year per employee 88
404-3 Percentage of employees receiving regular performance 87
and career development reviews
[GRI: 102-55] [GRI: 102-55]
114 115
IndusInd Bank Integrated Report 2020-21
Annexures
List of Tables and Graphs
Table Title Page Number
Table 1 Increase in balance sheet strength 13
Table 2 Economic value retained 15
Table 3 Information security breaches and fines 19
Table 4 Emerging risks and approach to mitigation 31
Table 5 Core risks and approach to mitigation 32
Table 6 Stakeholder engagement 34
Table 7 Sustainable finance lending verticals 39
Table 8 Corporate and consumer banking ESG exposure 39
Table 9 Percentage ESG exposure 39
Table 10 Environment - Sustainability Commitments 44
Table 11 Social - Sustainability Commitments 45
Table 12 Governance - Sustainability Commitments 45
Table 13 Green infrastructure finance 49
Table 14 Green and climate finance 49
Table 15 Energy consumption 51
Table 16 Absolute emissions 52
Table 17 Emissions intensity 52
Table 18 Scope 3 emissions overview 52
Table 19 Energy efficiency initiatives 53
Table 20 Renewable Energy (Solar) 53
Table 21 Energy efficiency investments 53
Table 22 Distribution of funds in elevated risk sectors 59
Table 23 Climate related opportunities for IndusInd Bank 61
Table 24 Financial inclusion measurement and impact 65
Table 25 Rural banking measurement and impact 71
Table 26 CSR priority areas 75
Table 27 CSR beneficiaries 75
Table 28 CSR contributions 75
Table 29 Permanent Employee Strength (Grade and Gender-wise classification) 84
Table 30 Permanent Employee Strength (Age and Gender-wise classification) 84
Table 31 Building a diverse bank 85
Table 32 New employee hires 85
Table 33 Employee benefits 86
Table 34 Parental leave 86
Table 35 Type of performance appraisal 87
Table 36 Employee remuneration 87
Table 37 Employee turnover 87
Table 38 Employee turnover rate 87
Table 39 Type of performance reviews 88
Table 40 Employee man-hours worked 88
Table 41 Human capital return on investment 91
Table 42 Shareholding pattern 98
Table 43 Promoter shareholding 98
Table 44 Code of conduct cases 101
Table 45 Tax rates 102
Table 46 Trade associations 103
Table 47 Basel III Leverage Components 117
Table 48 Integration with sustainable development goals 114
Table 49 GRI Content Index 116
Graph Title Page Number

Graph 1 Well diversified loan book (%) 15
Graph 2 Corporate and consumer banking loanbook (%) 15
Graph 3 Customer satisfaction (%) 22
Graph 4 Materiality matrix 36
Graph 5 Energy consumption (%) 51
Graph 6 Emissions summary (MTCO2e %) 53
Graph 7 Scope 1 emissions (MTCO2e %) 53
Graph 10 Trees planted 55
Graph 11 CSR expenditure (%) 74
Graph 12 Permanent Employee Strength (Grade and Gender-wise classification) (%) 84
Graph 13 Permanent Employee Strength (Age and Gender-wise classification) (%) 84
116
Registered Office
2401 General Thimmayya Road, Cantonment,
Pune - 411 001
Tel.: +91 20 3046 1600 - 609
Corporate Office (Headquarters)

8th Floor, Tower 1, One lndiabulls Centre,
841, S.B. Marg, Prabhadevi 0/1/),
Mumbai - 400 013
Tel.: +91 22 2423 1999 / 3049 3999
Visit us at www.indusind.com or email us at sustainability@indusind.com
CIN: L65191 PN1994PLC076333

[GRI: 102-3, 102-53]

IndusInd Bank Integrated Report 2020 21

Uploaded by

Copyright:

Available Formats

IndusInd Bank Integrated Report 2020 21

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

IndusInd Bank Integrated Report 2020 21

Uploaded by

Copyright:

Available Formats

Integrated Report 2020-21

ESG Highlights 2020-21

57th 78/100 Score ‘A’ list for the 6th

Approach to reporting THE BANK’S CAPITALS

Read more about the bank’s sustainability initiatives here.

Message from the Managing Director

Signs of a strengthened core

[GRI: 102-14] [GRI: 102-14]

About IndusInd Bank

Banking Made Effortless

solutions that meet every need of its

• Engaged with all our stakeholders and will Highlights

• A change agent for financial inclusion 435 46 29,661

51,000 43:57 A Nifty50

[GRI: 102-1, 102-5, 102-7] [GRI: 102-4, 102-5, 102-7, 102-16]

Delivering Streamlined Solutions Digital Offerings

[GRI: 102-2, 102-6] [GRI: 102-2]

Positioned to Pursue Opportunities INCREASE IN BALANCE SHEET STRENGTH

CRAR 15.04% 17.38%

Convenience and Proven

Banking on Strong Fundamentals

One of the strongest brands in the industry, IndusInd Bank’s sustainable

WELL DIVERSIFIED CORPORATE AND CONSUMER

Profitability amongst the highest Experienced and well-knit management team

A Digital New Age Bank

Ensuring Safe and ISO 27001 Certified

Secure Operations IndusInd BankISOis27001

The Bank has Board-level oversight of its IT and digital

The COVID-19 pandemic impacted the lives and livelihoods of millions

SUPPORTING THE COMMUNITY

123 15,500 3,400 ltr

Customer satisfaction reported by THE ‘ZEBU’ BULL SCULPTURE

over the years as a responsible The Bank’s has a sustainable

Valuing Resources and Relationships

Inputs Business Activities Outputs and Outcomes

• Digital infrastructure expenditure: • Enhanced customer experience and

Capital AG • Trees planted through the afforestation project: 56,000

• Total No. of rural liabilities • Beneficiaries of CSR projects: 19.01 Lakhs

Staying Ahead of the Curve

Trends Driving the Financial Sector

 AVING THE WAY FOR A

E XPANDING MARKET REACH

[GRI: 102-15] [GRI: 102-15]

Managing Threats Strategically RISK MANAGEMENT DEPARTMENT AND STRUCTURE

FY 2020-21 brought various unseen risks related to the pandemic, making it

[GRI: 102-15] [GRI: 102-15]

CORE RISKS AND APPROACH TO MITIGATION

Potential Impact : C Potential Impact : C

Potential Impact : C Potential Impact : D

Potential Impact : Potential Impact :

[GRI: 102-15] [GRI: 102-15]

Open, regular and transparent engagement with stakeholders

INDUSIND BANK’S INTERACTION AND ENGAGEMENT APPROACH

ENHANCING VALUE FOR ALL STAKEHOLDERS

Addressing Issues that Matter Scaling with a Sustainability Focus

MATERIALITY ASSESSMENT PROCESS PC-5 THEMES

<95% 5-10% <5% 45-50%

importance of the issues to the stakeholder Digitalisation Ethics, integrity

Human rights Underpinned by: • Digitisation • Sustainability

AVING THE WAY FOR A

E XPANDING MARKET REACH