Investor Presentation 30.06 - kvb.co.in · Investor Presentation 30.06.2020 . DISCLAIMER This presentation has been prepared by Karur Vysya Bank Limited (“the Bank”) solely by

Investor Presentation 30.06.2020

DISCLAIMER

This presentation has been prepared by Karur Vysya Bank Limited (“the Bank”) solely by the Bank for information purposes only. This presentation is not a complete description of the

Bank and the information contained herein is only current as of its date and has not been verified by anyone else. All financial numbers are based on the Audited Financials or the

Reviewed Financial results or based on Management estimates. Figures for the previous period(s) have been regrouped wherever necessary; totals in columns / rows may not agree

due to rounding off. The accuracy of this presentation is not guaranteed, it may be incomplete or condensed and it may not contain all material information concerning the Bank.

This presentation does not constitute an offer or invitation, directly or indirectly, to purchase or subscribe for any securities of the Bank by any person / entity based in India or in any

other country. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any

securities.

This presentation may contain statements that constitute forward-looking statements. All forward looking statements are subject to risks, uncertainties and assumptions that could

cause actual results to differ materially from those contemplated. Factors that could cause actual results to differ materially include, inter-alia, changes or developments in the

Bank’s business, political, economic, legal and social conditions. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue

reliance on these forward-looking statements. Except as otherwise noted, all of the information contained herein is indicative and is based on management information, current

plans and estimates / projections. Any opinion, estimate or projection in the presentation constitutes a judgment as of the date of this presentation and there can be no assurance

that future results or events will be consistent with any such opinion, estimate or projection.

No representation or warranty, express or implied, is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information or

opinions contained in this presentation. Further, past performance is not necessarily indicative of future results. Anyone placing reliance on the information contained in this

presentation or any other communication by the Bank does so at his / her / their own risk. Neither the Bank nor anyone else shall be liable for any loss or damage caused pursuant to

any act or omission based on or in reliance upon the information contained in the presentation.

The Bank may, at its sole discretion, alter, modify or otherwise change in any manner the contents of this presentation, without obligation to notify anyone of such change(s). This

presentation is not to be distributed, redistributed, copied or disseminated in any manner whatsoever, either directly or indirectly.

Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any forward-looking statement to reflect the impact of

circumstances or events that arise after the date the forward-looking statement was made.

2

3

KVB – a unique franchise!

Unmatched presence in India’s fast growing hinterland

Customer service excellence the differentiator

1

15

25

51

4

6

1

1

1

5

1

14

6

420

21

6

1

59

121

7

12

1

Category No. of Branches

Metro 200

Urban 155

Semi Urban 297

Rural 127

Total 779

Category 30.06.20 31.03.20 31.03.19

Branches 779 779 778

ATM's + Cash Recyclers

2,226 2,224 2,179

26%

20% 38%

16% Metro

Urban

Semi Urban

Rural

www.kvb.co.in 4

Contents

Q1 Performance Highlights

Portfolio Performance

New Initiatives

Other Parameters

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Results Snapshot

5

Financial Indicators – 30.06.2020

Parameter Amount YoY

Growth %

Total Deposits

60,065 (3)

Gross Advances

48,617 (1)

Total Business

1,08,682 (2)

Total Income

879 3

Operating Profit

474 7

Net Profit 106 44

Other Business Parameters

Gross NPA 4,056

Net NPA 1,585

Gross NPA % 8.34

Net NPA % 3.44

PCR % 72.74

Basel III Capital 7,210

CRAR % 18.14

Tier I % 16.13

Tier II % 2.01

NIM % 3.36

RoA % (annualised) 0.59

(Rs. crore)

www.kvb.co.in 6

Particulars Jun 20 Jun 19 Y-o-Y (%)

Capital & Liabilities

Capital 160 160 -

Reserves and Surplus 6,546 6,336 3

Deposits 60,065 61,711 (3)

Borrowings 1,041 2,705 (61)

Other Liabilities and Provisions 1,568 1,503 4

Total 69,380 72,415 (4)

Assets

Cash and Balances with RBI 2,630 3,278 (20)

Balances with Banks 1,546 2,865 (46)

Investments (Net) 17,033 16,983 -

Advances (Net) 46,131 46,982 (2)

Fixed Assets 560 571 (2)

Other Assets 1,480 1,736 (15)

Total 69,380 72,415 (4)

Balance Sheet (Rs. crore)

www.kvb.co.in 7

(Rs. crore)

Business Profile

Particulars Jun 20 Jun 19 Y-o-Y

%

Total Deposits 60,065 61,711 (3)

Demand 6,179 6,241 (1)

Savings 13,734 12,099 14

CASA 19,913 18,340 9

Term Deposits 40,152 43,371 (7)

CASA % 33 30

Gross Advances 48,617 49,182 (1)

Net Advances 46,131 46,982 (2)

Total Business 1,08,682 1,10,893 (2)

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Investment Portfolio

8

Investments (Rs. crore) Portfolio wise Investment

Investment Portfolio

Debentures/CD/MF/CP includes SRs of Rs. 620.05 crore (3.57%)

Duration

Yield on Investment

* AFS Duration Dec 19 was 1.30, Mar 20 was 1.52 ; HTM Duration Dec 19 was 3.46, Mar 20 was 3.74 .

AFS* HFT HTM*

1.01 - 4.24

17227 16073

17357

June 19 Mar 20 June 20

68.61%

31.39%

HTM

AFS

90.31%

8.93% 0.76%

SLR

Debentures/CD/MF/CP

Shares 6.97% 6.63% 5.67%

June 19 Mar 20 June 20

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Advances (by value & share)

9

(Rs. crore)

Segments ABG – Agri CBG – Commercial (<= Rs. 25 crore) CIG – Corporate (> Rs. 25 crore) PBG* – Personal

* Portfolio inclusive of IBPC

8113 8161 8936

9609

17056 16539

15620 16074

14169 13589

12767 11978

11278 10893

11193 10956

Mar 19 June 19 Mar 20 June 20

ABG CBG CIG PBG

16% 17% 18% 20%

34% 34% 32% 33%

28% 28% 26% 25%

22% 22% 23% 23%

Mar 19 June 19 Mar 20 June 20

ABG

CBG

CIG

PBG

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Capital Adequacy – Basel III

Entire Tier I comprises of CET1 capital, well above the min. requirement of

7.375%

Capital As at

Jun 20 Mar 20 Mar 19 Mar 18 Mar 17

RWA 39,748 41,948 43,714 44,140 40,417

Tier I 6,412 6,404 6,245 6,145 4,790

Tier II 798 798 751 226 278

Total 7,210 7,202 6,996 6,371 5,068

10

(Rs. crore)

11.85%

13.92% 14.28% 15.27%

16.13%

0.69% 0.51% 1.72% 1.90% 2.01%

12.54% 14.43%

16.00% 17.17% 18.14%

0.00%

9.50%

19.00%

Mar 17 Mar 18 Mar 19 Mar 20 June 20

Tier I Tier II Total

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Profit and Loss A/c

11

Particulars Jun 20 Jun 19 YoY (%)

Net Interest Income 562 584 (4)

Other Income 317 270 17

Total Income 879 854 3

Operating Expenses 405 409 (1)

Operating Profit 474 445 7

Provisions 337 330 2

Credit Related 302 319 (5)

Others 35 11 -

Profit Before Tax 137 115 18

Tax 31 42 26

Net Profit 106 73 45

(Rs. crore)

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Break Up of Other Income

12


TOTAL NON-INT. INCOME 317 270 17

1) Fee Income 121 168 (28)

2) Investment trading profit 178 67 -

3) Forex Income 5 9 -

4) Others* 13 28 -

5) Profit/(loss) on sale of land, building, other assets etc.

- (2) -

*Includes recoveries from Written Off A/c’s – Rs 1 crore (Q1 FY 20-21) & Rs. 1 crore (Q1 FY 19-20)

(Rs. crore)

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Break Up of Operating Expenses

13


Staff Expenses 214 204 5

Of above – Prov. for employee retirement benefits

45 40 13

Other Operating Expenses 191 205 (7)

TOTAL OPG. EXPENSES 405 409 (1)

(Rs. crore)

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Key Ratios

14

^ NIM for Dec 19 includes items of non-recurring nature

3.49% 3.46% 3.33%

3.46% 3.36%

June 19 Sep 19 Dec 19 Mar 20 June 20

NIM^

47.87% 50.67%

54.05%

46.68% 46.09%


Cost to Income

0.40% 0.34%

0.08%

0.46% 0.59%


ROA

4.49% 3.87%

0.92%

5.07% 6.29%


ROE

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Provisions and Contingencies

15

Provision for Jun 20 Jun 19

NPA 228 318

Standard Assets 1 (1)

Restructured Advances - 2

Others (incl. NPI) 20 12

COVID-19 Relief Package 73 -

Investment Depreciation 15 (1)

Total Provisions (excl. Tax) 337 330

Tax Expense 31 42

Total Provisions 368 372

(Rs. crore)

www.kvb.co.in 16

Vertical Advances Book

as on 30.06.2020

Benefited availed book – O/s as on

31.03.2020*

Benefit availed book – O/s. as on 24.07.2020

Benefit availed book (Ex Gold Loan)

– O/s. as on 24.07.2020

ABG 9,609 2,807 31% 1,826 19% 388 4%

CBG 16,074 12,410 79% 8,868 55% 8,801 55%

CIG 11,978 5,074 40% 5,255 44% 5,255 44%

PBG 10,956 4,840 43% 3,864 35% 3,675 34%

Total 48,617 25,130 52% 19,813 41% 18,118 37%

COVID Relief Package – Benefits availed book

(Rs. crore)

*Percentage is based on loan book as on 31.03.2020

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SMA-1

SMA-2

SMA 30+

Moratorium Non Moratorium

0.66%

0.37%

0.22%

0.08%

0.87%

0.45%

Moratorium status as of 24.07.2020

SMA Book (Excluding Gold Loans)

17

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NPAs & Provisions

18

(Rs. crore)

4511 4391 4424 4213 4056

2322 2118 1946 1809 1585 2121 2223 2427 2351 2421


Gross NPA Net NPA NPA Provision

4.94 4.50 4.13 3.92

3.44

9.17 8.89 8.92 8.68 8.34


Net NPA% Gross NPA%

56.86 59.05 61.82 65.43

68.90 72.74

44.07 47.02 50.62

54.86 55.80 59.69

Mar 19 June 19 Sep 19 Dec 19 Mar 20 June 20

Provision Coverage Ratio % NPA Provision on Gross NPA %

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Movement of NPA

19

Particulars Apr 20 - Jun 20 Apr 19 - Jun 19 Gross NPAs Opening Balance 4,213 4,450 Additions during the period 40 474 Reductions during the period 198 413 Closing Balance 4,056 4,511 Net NPAs Opening Balance 1,809 2,420 Additions during the period (200) 132 Reductions/write off during the period 24 230 Closing Balance 1,585 2,322 Provisions Opening Balance 2,351 1,961 Provision made during the period 240 361 Write off/Write back of excess provision 170 201 Closing Balance 2,421 2,121

(Rs. crore)

VERTICAL Advances O/s.

Jun 20 NPA Additions

Q1 NPA Deletions

Q1 Total NPA

Jun 20 Accretion rate (%) Q1 (annualized)

COMMERCIAL 16,074 11 18 1,102 (0.2)

RETAIL (Per. Bankg.) 10,956 25 8 234 0.6

AGRICULTURE 9,609 4 3 229 -

CORPORATE 11,978 - 169 2,491 (5.6)

TOTAL 48,617 40 198 4,056 (1.3)

www.kvb.co.in 20

Contents



New Initiatives

Other Parameters

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Commercial

Agriculture Corporate

Retail 23% on Total Portfolio 33% on Total Portfolio

25% on Total Portfolio 20% on Total Portfolio

• Business Partnerships established

• High Yield contracts • Controlled Delinquencies

• Dedicated Business Owners • Risk Rate Progressing • Improved Asset Quality • Collection mechanisms

• Limited Exposure • Concentrated on Rated A/Cs • Seamless Recovery measures

• Spared Priority lending • Dedicated Touch Points • Business Partnership established

Rs. 10,956 Rs. 16,074

Rs. 11,978 Rs. 9,609

Portfolio Mix (Rs. crore)

21

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Advances Portfolio

22

Particulars Jun 20 Jun 19 Y-o-Y

Growth %

Commercial 16,074 16,539 (3)

Retail (Personal Banking)* 10,956 10,893 1

Agriculture 9,609 8,161 18

Corporate 11,978 13,589 (12)

Gross Advances 48,617 49,182 (1)

Jewel Loans (included above) 9,948 7,890 26

* Retail (ex. IBPC) 10,857 9,793 11

(Rs. crore)

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100 84 81 82 82

60 51 65

43 40 37 36 44 28

100

184 161 168

120 106

88 98

45 59 63 56

43 14

100 117 107 110

94 75 63 76

44 46 45 42 43 23

SMA-1 SMA-2 SMA 30+

100 82 76 75 74

52 44 57

35 33 31 30 37 24

100

180 151 156

109 92

75 85

37 50 53 47 36

12

100 114 101 102 85

65 54 66 36 39 39 35 37

20

SMA-1 SMA-2 SMA 30+

Portfolio Performance Portfolio Outstanding in % , Base Mar.31,2017=100

Portfolio performance Balance in INR , Base Mar.31,2017=100

SMA 1 1.47 %

SMA 2 0.35 %

SMA 1 (Ex-Gold) 1.02 %

SMA 2 (Ex-Gold) 0.30 %

Portfolio performance

23

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Robust Growth in Retail Segment

24

(Rs. crore)

2,330

2,795

3,619

4,548 4,636

965

1,393

1,712 1,683 1,672

921 1,017 1,044 989 963

596 578 625

895 1,014

FY 17 FY 18 FY 19 FY 20 June 20

Housing Mortgage (LAP) Vehicle Jewel Loans

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Retail Portfolio Distribution

25

Segment Advances outstanding as at

Jun 20 Mar 20 Mar 19 Mar 18 Mar 17

Housing 4,636 4,548 3,619 2,795 2,330

Mortgage (LAP) 1,672 1,683 1,712 1,393 965

Vehicle 963 989 1,044 1,017 921

Jewel Loans 1,014 895 625 578 596

Personal Loans 549 561 424 296 316

Education Loans 201 206 235 261 266

Others* 1,921 2,311 3,620 1,280 946

Total 10,956 11,193 11,278 7,620 6,340

Total Ex IBPC 10,856 10,693 9,228 7,420 6,340

*Includes IBPC of Rs.100 Cr Rs.500 Cr, Rs.2,050 Cr and Rs.200 Cr for Jun 20, Mar 20 , Mar 19 and Mar 18 respectively.

(Rs. crore)

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Digital Retail – Origination Volumes

26

Average Ticket Size

Jun'19 Sep'19 Dec'19 Mar'20 Jun'20

4266

5821 5739

4955

1174

4320

5570

4370 4060

1256

Disbursed Applications Disbursed Amount (in Million)

1 Mn

1 Mn

0.8 Mn

0.8 Mn

1 .1 Mn

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• Portfolio ~Rs. 10,000 crore

• Standalone Jewel Loan outlets initiated

• Digital Jewel Loan process implemented

Golden Journey

• Jewel Loan Book at less than Rs. One Crore

Mar. 2003

June 2020

Mar. 2010

• Portfolio stands at Rs. 1,777 crore – a new high

• Towards New Pinnacle

27

Gold Loans Outstanding As At

June 20 Mar 20 Dec 19 Sep 19 June 19 Mar 19 9,948 9,227 8,580 8,130 7,890 7,781

6431

7388 7890

9948

2000

6000

10000

June 17 June 18 June 19 June 20

(Rs. crore)

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Credit Portfolio – other metrics

28

• Average ticket size - Rs. 38 lakh

• ~85% of commercial loans are less than Rs. 5 crore

Short term credit (Working Capital) forms major part of credit portfolio

Low concentration : Top 20 borrowers (% of overall loans) Ticket size of Commercial Book

85%

11%

4%

< 5 crore >= 5 crore < 10 crore >= 10 crore

10%

8% 7% 7% 7%

FY 17 FY 18 FY 19 FY 20 June 20

79% 80% 75% 76% 77%

21% 20% 25% 24% 23%

FY 17 FY 18 FY 19 FY 20 June 20

Working Capital Loans Term Loans

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0

100

200

300

400

500

600

700

800

900

1000

JUN 2019 SEP 2019 DEC 2019 MAR 2020 JUN 2020

284

453

768 789

964

169

311

418 373

527

Am

ou

nt

in C

rs

Submission Disbursement

Digital SME Platform – Origination Volumes

25 Lakhs

26 Lakhs

28 Lakhs 27 Lakhs

10 Lakhs

Average Ticket Size

29

www.kvb.co.in

Corporate Book (exposure > Rs. 25 crore)

30

• Average ticket size Rs. 38 crore • ~67% of corporate loans are

less than Rs. 100 crore

(Rs. crore)

Standard Corporate advances > 1 Bn

14%

28%

25%

33%

< 25 cr >= 25 cr < 50 cr >= 50 cr < 100 cr >= 100 cr

2992

2244 2322 1891

2211 2304 2540 2733

6.2

4.7 4.6

3.8

4.5 4.6 5.2

5.6

2.0

5.0

8.0

1000

2500

4000

Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20

Amount > 100cr % on advance

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Advances – Composition

Well spread sub-sectorial exposures & diversified industrial exposures

Rs.486 Bn Breakup of Industrial exposure (Rs.114 Bn)

31

10%

6%

33%

6% 3%

4%

4%

3%

4%

5%

3%

4%

5%

10%

INFRASTRUCTURE

POWER

TEXTILES

IRON & STEEL

FOOD PROCESSING

CHEMICALS ANDCHEMICAL PRODUCTS

WOOD & ITS PRODUCT

PAPER & ITS PRODUCTS

ALL ENGINEERING

RUBBER & ITSPRODUCTS

CONSTRUCTION

TRANSPORT SECTOR

GEMS & JEWELLERY

OTHERS

MANUFACTURING SECTOR

24%

JEWEL LOAN 21%

PERSONAL SEGMENT

LOANS 16%

TRADING 14%

CRE 6%

Agri 2%

BILLS 1%

NBFC 3%

OTHER EXPOSURES

14%

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Advances – Composition

32

Particulars

Amount % to Total Advance Y-o-Y Growth

Jun 20 Jun 19 Jun 20 Jun 19 Amt %

Manufacturing 11,354 12,412 23 25 (1,058) (9)

Trading 6,822 7,560 14 15 (738) (10)

Jewel loan 9,948 7,890 20 16 2,058 26

Personal loans @ 7,660 7,374 16 15 286 4

CRE 3,013 2,754 6 6 259 9

Agri (other than Jewel Loan)

877 1,250 2 3 (373) (30)

Bills 634 1,080 1 2 (446) (41)

NBFC 1,539 1,802 3 4 (263) (15)

Capital market - 1 - - (1) -

Others* 6,770 7,059 14 14 (289) (4)

Total Advances 48,617 49,182 100 100 (565) (1)

@ Vehicle, Housing, Deposit loans & Insta Loans *Exposure to other service sectors.

(Rs. crore)

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Manufacturing Sector - Industry Wise

33

Industry Amount % to Total Advance Y-o-Y Growth

Jun 20 Jun 19 Jun 20 Jun 19 Amount %

Textile 3,750 3,876 7.7 7.9 (126) (3)

Infrastructure 1,835 2,056 3.8 4.2 (221) (11)

Basic Metal & Metal Products 708 875 1.5 1.8 (167) (19)

Food Processing 355 587 0.7 1.2 (232) (40)

Gems & Jewelry 590 672 1.2 1.4 (82) (12)

All Engineering 411 463 0.8 0.9 (52) (11)

Chemical & Chemical Products 441 475 0.9 1.0 (34) (7)

Rubber and Plastic Products 561 574 1.2 1.2 (13) (2)

Construction 346 426 0.7 0.9 (80) (19)

Wood & Wood Products 411 473 0.8 1.0 (62) (13)

Transport Sector 447 444 0.9 0.9 3 1

Paper & Paper Products 387 328 0.8 0.7 59 18

Cement & Cement products 244 247 0.5 0.5 (3) (1)

Other Products 868 917 1.8 1.8 (49) (5)

TOTAL 11,354 12,412 23.3 25.2 (1,058) (9)

(Rs. crore)

Other industries include : beverages & tobacco, mining & quarrying, petroleum, glass & glassware, leather& leather products, etc .

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Infrastructure Advances

34

Infrastructure

Amount O/s % to Total Advance Y-o-Y Growth

Jun 20 Jun 19 Jun 20 Jun 19 Amt %

Power 644 653 1.3 1.3 (9) (1)

Road 320 483 0.7 1.0 (163) (34)

Infra Others 871 920 1.8 1.9 (49) (5)

TOTAL 1,835 2,056 3.8 4.2 (221) (11)

Power Sector Exposure

Ownership Jun 20 Jun 19

Government 333 353

Private 311 300

TOTAL 644 653

(Rs. crore)

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Sector-wise Restructured Advances

35

S. N. SECTOR Amount

Jun 20 Jun 19

1 Textile 62.06 13.08

2 Cement & Cement Products 26.05 -

3 Food & Food Processing 19.12 36.55

4 Wood & Wood Products 16.62 5.77

5 Agriculture 4.71 4.23

6 All Engineering 3.68 3.43

7 Chemical & chemical Products 1.10 7.06

8 Others 63.81 65.87

TOTAL 197.15 135.99

% to Total Advances 0.41 0.28

(Rs. crore)

3.11 9.62

5.19

26.88 4.24

2.52

48.44

% to Total Restructured Advances Jun-19

Agri

Textiles

Chemical & itsproductsFood Processing

Wood & its Products

All Engineering

Others

2.39

31.48

0.56

9.70

13.21

8.43

1.87

32.37

% to Total Restructured Advances Jun -20

Agri

Textiles

Chemical & its products

Food Processing

Cement & its products

Wood & its Products

All Engineering

Others

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Stressed Book Analysis

36

(Rs. crore)

Movement of Restructured Advances

Particulars

Apr 20 to Jun 20

Apr 19 to Jun 19

A/c’s Amt. A/c’s Amt.

A. Position at the beginning of the period

73 193.29 34 72.09

B. Addition during the period 2 9.98 29 66.80

C. Additions in existing A/c’s - 5.96 - 1.23

D. Addition through upgradation from NPA

1 0.70 - -

E. Accounts closed during the period

- 0.49 - 0.86

F. Accounts ceasing to attract higher provision (upgradation)

- - - -

G. Recoveries during the period

- 9.32 - 1.33

H. Slippages during the period 2 2.98 2 1.94

Position at the end of the period

A+B+C+D-(E+F+G+H) 74 197.15 61 135.99

136 164 203 193 197

2322 2118 1946

1809 1585

361 446 524

546 543 3.89

3.72 3.67 3.73

3.35

0.00

2.50

5.00

0

1000

2000

3000


Std Restructured Assets Net NPA

Net SR % of Total Assets

2728 2548

2819 2673

2325

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Security Coverage

37

Nature of security 30.06.20

Exposure backed by -

Letter of Credit 123

Liquid Assets ^ 10,678

Vehicles 2,614

Commodities 202

Total (1) 13,617 Exposure secured by Immovable Property (% Coverage)

> 100% 22,940

90% to <100% 8,326

75% to <90% 1,747

50% to <75% 3,681

<50% 2,482

Total (2) 39,176 Exposure without Immovable property as security

Corporate, Consortium, Government, IBPC etc. 1,667

Unsecured Exposure 462

Total (3) 2,129

Total Risk Assets outstanding – Fund and Non Funded (1+2+3)* 54,922 * Total risk assets including technical write off accounts ^ Liquid Assets - Cash, Jewels, NSC/Insurance policies & other liquid assets Coverage defined as (Value of Security)/Loan Principal O/s; & is based on available valuation.

(Rs. crore)

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Retail Liability Franchise : Granular & Sticky

38

Low concentration of Deposits

Term deposits are primarily retail deposits

95% of term deposits are < Rs.5 Cr

Low dependence on wholesale deposits

66%

21%

8% 5%

< Rs.15 Lakhs

Rs.15 Lakhs-Rs.1 Cr

Rs.1 Cr-Rs.5 Cr

> Rs.5 Cr

7% 6% 6% 6% 6%

FY 17 FY 18 FY 19 FY 20 June 20

Concentration of Top 20 depositors %

67%

10%

23%

Term Deposits

Demand Deposits

Savings Deposits

www.kvb.co.in 39

Contents



New Initiatives

Other Parameters

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Digital Banking - DLite

@ IMPS, RTGS, NEFT, UPI, Bharat QR, Recharges

Acquisition - Saving Account - Term Deposit - non-life & Health Insurance

Loan Booking - Jewel Loan

Customer Maintenance - Manage Profile, Nominee,

Locker, Cheque book & Cards

Manage Payments - Secured Fund

Transfers/Payments@ - Recharge DTH, Fastag & etc.,

Demat Services - Manage Demat accounts - e-ASBA RD Module

Scheduled* Aug’20

V-KYC Scheduled*

Aug’20

Merchant Lobby

Scheduled* Q2, FY20-21

Retail Credit Card,

Scheduled* Q3, FY20-21

Loan Payment Scheduled* Q3, FY20-21

Insurance (Online

Integration) Scheduled* Q4, FY20-21

*Scheduled dates are provided based on information available at this time, these are subject to change

40

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Adoption of Video KYC

* V-CIP, Video based Customer Identification Process

41

• To have expedient customer boarding as well regulatory assent, we are in verge of V-CIP*

• Facilitates for New-KYC as well Re-KYC

• Will reduce both TAT & Cost on acquisition.

• High technologies of AI / Face Matching Tools are used to secure storage and Impenetrable security

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New Initiatives

Digital Savings A/c with e-Sign

Q2, FY20-21

Q2, FY20-21

Q2, FY20-21

Q3, FY20-21

Digital Current A/c with e-Sign

e-Mandates automation

Currency Chest automation

Schedules ahead

42

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Customer

Digital Nervous System, providing the strong backbone to support aggressive growth initiatives

Digital initiatives enabling accelerated growth in customer acquisition and engagement

Expense Management & Re-engineering • Demand Aggregation & Demand Management • Vendor Consolidation, Risk & Performance Management • Consumption Items & Rates - Standardisation & Cataloguing • Total cost of ownership • Activity Elimination, Activity Automation

Business Planning & Analytics : Focus at / on - • Business Segment and Cost Center level • Expense line level – Comprehensive vs Anecdotal • Revenue to Expense line dependency • Micro (constituent components) & Macro (Business) Level • Variances: Budget vs Actual / Revenue vs Expense Drivers • Business and Branch level Monthly, Quarterly Profitability

Expense Accounting & Financial Reporting : • Policy Enabler, Compliance enforcement to Policy / Regulatory • Independent accounting and payment with enhanced control

framework • Visibility on “Off Contract” and “Off Budgetary” Spend • Provisioning accuracy and timeliness • Financial Reporting – Accuracy, Agility, Real-Time

Expense Management Center – A key enabler to our Digital journey

43

www.kvb.co.in 44

Contents



New Initiatives

Other Parameters

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Business Growth

45

(Rs. thousand crore)

41 46 51 49 49

54 57

60 59 60

95

103

111 108 109

0

40

80

120

0

40

80

120

FY 17 FY 18 FY 19 FY 20 June 20

Gross Advances Deposit Business

41 45 49 46 46

66%

67%

71% 68% 67%

0

10

20

30

40

50

50%

75%

FY 17 FY 18 FY 19 FY 20 June 20

net Advances Advances as a % of Total Assets

Loans and Advances

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CASA Growth

46

(Rs. thousand crore)

10 11

12 13

14 5

6 6

6 6

0

5

10

15

20

FY 17 FY 18 FY 19 FY 20 June 20

Savings Demand

15 17 18 19 20

28%

29%

30%

31%

33%

25%

30%

35%

0

5

10

15

20

FY 17 FY 18 FY 19 FY 20 June 20

CASA CASA Mix

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Income – Expenses – Op. Profit (Rs. crore)

47

Opg. Profit Margin

584 596 577 591 562

0

325

650


Net Interest Income

270 278 260

347 317

0

200

400


Non Interest Income

204 213 225 215 214

205 230 227 223

191

0

250

500


Operating Expenses

Staff Cost Other Op.Exp

445 431 385

500 474

2.4 2.4

2.1

2.7 2.7

1.0

2.0

3.0

0

250

500


Operating Profit Operating Profit Margin% on Avg. Assets

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Key Ratios

48

Particulars Jun 20 Jun 19

Cost of Deposits (%) 5.37 5.82

Yield on Advances (%) 9.32 9.61

Cost of Funds (%) 5.42 5.88

Yield on Funds (%) 8.01 8.60

NIM (%) 3.36 3.49

Spread (%) 2.59 2.71

Cost to Income Ratio (%) 46.09 47.87

Business/Emp. (Rs. Crore) 13.87 14.25

Profit/Emp. (Rs. Lakh) 5.39 3.75

3.79% 3.99%

3.75% 3.90% 3.95%

3.49% 3.46% 3.33% 3.46% 3.36%

2.71% 2.64% 2.55% 2.66% 2.59%


Spread(Deposits and Advances) NIM Spread on Funds

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Mobile transactions volume

Market share in RTGS transactions POS Terminals

Cash Deposit Machines

Leveraging Technology - Delivery Channels

49

1.14% 1.07% 1.04%

1.19% 1.14%


Share of RTGS transactions (by volume)

22068 22873 21959

15534 15092


POS TERMINALS

146

222

174

FY 19 FY 20 June-20 *

Mobile Banking (Nos in lakh)

*Annualized

444

533 534 565 566


Cash Deposit Machines (Nos.)

Cash Deposit Machines (Nos.)

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Young workforce….. … number of employees… … lower attrition …

… leading to improved productivity

Human Resources

50

33 33

34 34 35

FY 17 FY 18 FY 19 FY 20 Jun-20

2.2%

3.9%

2.7%

3.8%

0.5%

FY 17 FY 18 FY 19 FY 20 Jun-20

7400

7956 7663

7935 7834

FY 17 FY 18 FY 19 FY 20 Jun-20

12.85 12.92 14.42 13.56 13.87

FY 17 FY 18 FY 19 FY 20 Jun-20

Business per employee (Rs. Crore)

134 130 142 138 140

FY 17 FY 18 FY 19 FY 20 Jun-20

Business per branch (Rs. Crore)

8.2

4.4

2.8 3.0

5.4

FY 17 FY 18 FY 19 FY 20 Jun-20

Profit per employee (Rs. Lakhs)

*Profit per employee for June 20 is annualized

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A Decade of Progress

51

Year 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

Paid up Capital 94 107 107 107 122 122 122 145 160 160

Reserves 2,020 2,601 2,978 3,219 4,124 4,451 4,723 6,066 6,205 6,440

Owned funds 2,114 2,708 3,085 3,326 4,246 4,573 4,845 6,211 6,365 6,600

CRAR - Basel II (%) 14.41 14.33 14.41 12.77 14.63 12.26

Basel III (%) 12.60 14.62 12.17 12.54 14.43 16.00 17.17

Deposits 24,722 32,112 38,653 43,758 44,690 50,079 53,700 56,890 59,868 59,075

Advances 18,052 24,205 29,706 34,226 36,691 39,476 41,435 45,973 50,616 48,516

Total Business 42,774 56,317 68,359 77,984 81,381 89,555 95,135 102,863 1,10,484 1,07,591

Total Income 2,482 3,621 4,695 5,680 5,977 6,150 6,405 6,600 6,779 7,145

Operating Profit 600 726 849 838 943 1,303 1,571 1,777 1,711 1,761

Net Profit 416 502 550 430 464 568 606 346 211 235

Dividend (%) 120 140 140 130 130 140 130 30 30 -

Branches (No.) 369 451 551 572 629 667 711 790 778 779

EPS (Rs.) 44.90 46.81 51.35 40.08 39.86 46.59 9.95* 4.78 2.64 2.94

Return on Assets (%) 1.71 1.56 1.35 0.86 0.88 1.03 1.00 0.53 0.31 0.32

Book Value(Rs.) 193.04 252.68 287.85 308.91 348.42 375.25 79.51* 85.49 79.56 82.57

No of Employees 4,574 5,673 6,730 7,339 7,197 7,211 7,400 7,956 7,663 7,935

* During the Financial Year 2016-17, one Equity Share face value of Rs.10/- each was subdivided into five Equity Shares of face value Rs.2/- each

(Rs. crore)

Documents

Investor Presentation 30.06 - kvb.co.in · Investor Presentation 30.06.2020 . DISCLAIMER This presentation has been prepared by Karur Vysya Bank Limited (“the Bank”) solely by