Karur Vysya Bank Ltd. · NSE:KARURVYSYA
Karur Vysya Bank — Q3 FY2023 Earnings Presentation
41 slides from Karur Vysya Bank's earnings presentation, Jan 23, 2023
Slide 1: Cover letter to stock exchanges
The Manager, The Manager, National Stock Exchange of India Ltd, BSE Limited, Exchange Plaza, 5th Floor, Phiroze Jeejeebhoy Towers, Plot No. C- 1, 'G' Block, Dalal Street, Bandra- Kurla Complex, Mumbai - 40000 1. Bandra (East),Mumbai - 400051. Scrip Code: KARURVYSYA Scrip Code: 590003 Dear Sir, Sub:
Slide 2: Investor Presentation Q3 FY 2023
Classification | PUBLIC Investor Presentation Q3 FY 2023
Slide 3: Disclaimer
Classification | PUBLIC 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 no
Slide 4: Quarter In focus
Classification | PUBLIC Quarter In focus
Slide 5: Strong presence in India's fast growing hinterland
Classification | PUBLIC Strong presence in India’s fast growing hinterland Category 31.12.22 31.03.22 31.03.21 Branches 792 789 780 ATM’s + Cash Recyclers 2,233 2,223 2,236 1 5 1 12 No. of Branches 6 Category BBU* CBU* Other offices^ Metro 204 10 9 10 1 6 1 Urban 157 3 - - 15 4 1 14 Semi Urban 304 2
Slide 6: Key Highlights
Classification | PUBLIC (Rs. crore) Key Highlights BUSINESS ADVANCES DEPOSITS CASA ₹ 1,39,062 ₹ 64,507* ₹ 76,175 ₹ 25,800 13% YoY 3% QoQ 16% YoY 3% QoQ 14% YoY 3% QoQ 7% YoY NET PROFIT ROA ROE NIM Q3- ₹ 289 56% YoY Q3 -1.32 % Q3- 14.04 % Q3- 4.32% 9M - ₹ 768 67% YoY 9M-1.19 % 9M- 12.43% 9M- 4.08% GN
Slide 7: Key Performance Indicators – KPIs (Quarter)
(Rs. crore) Classification | PUBLIC Key Performance Indicators – KPIs (Quarter) Growth Particulars Dec 22 Dec 21 Sep 22 Jun 22 Mar 22 %/bps Net interest income 889 686 30 821 746 710 Operating profit 689 401 72 572 475 441 Net profit 289 185 56 250 229 213 Advances (Gross) 62,887 55,793 13 61,846 59
Slide 8: Profit & Loss Statement
Classification | PUBLIC (Rs. crore) Profit & Loss Statement Quarter 9 Months Particulars Growth % Growth % Dec 22 Dec 21 Dec 22 Dec 21 (YoY) (YoY) Net Interest Income 889 686 30 2,456 2,005 22 Other Income 317 196 62 758 564 34 - Fee income 184 162 14 545 452 21 - Others 133 34 291 213 112 90 Total
Slide 9: Key Ratios
Classification | PUBLIC Key Ratios Quarter 9 Months Particulars Dec 22 Dec 21 Dec 22 Dec 21 Cost of Deposits (%) 4.26 4.22 4.14 4.35 Yield on Advances (%) 9.04 8.42 8.63 8.53 Cost of Funds (%) 4.29 4.24 4.18 4.39 Yield on Funds (%) 7.92 7.26 7.58 7.36 Net Interest Margin (%) 4.32 3.68 4.08 3.66 Spre
Slide 10: Key Ratios (Qtr)
Classification | PUBLIC Key Ratios (Qtr) ROA ROE 1.32 1.09 1.16 14.04 1.06 12.59 0.93 11.22 11.69 10.08 0.55 0.46 6.00 5.07 Mar-20 Mar-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-20 Mar-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 NIM Cost to Income 74.11 4.07 4.32 3.68 3.79 3.82 3.46 3.46 54.47 51.8 49.68 4
Slide 11: Balance Sheet
(Rs. crore) Classification | PUBLIC Balance Sheet Particulars Dec 22 Dec 21 YoY (%) Capital & Liabilities Capital 160 160 - Reserves and Surplus 8,080 7,220 12 Deposits 76,175 66,871 14 Borrowings 1,473 1,296 14 Other Liabilities and Provisions 3,125 2,065 51 Total 89,013 77,612 15 Cash and Balances
Slide 12: Capital to Risk Weighted Assets Ratio – Basel III
(Rs. crore) Classification | PUBLIC Capital to Risk Weighted Assets Ratio – Basel III Particulars Dec 22 Dec 21 Sep 22 CRAR % 17.86 18.79 18.31 Total capital 8,147 7,531 8,134 Tier I capital 7,299 6,717 7,293 Tier II capital 848 814 841 RWA 45,616 40,074 44,413 Credit risk 37,497 32,064 36,213 Opera
Slide 13: Driving growth across verticals
Classification | PUBLIC Driving growth across verticals
Slide 14: Total Business
(Rs. crore) Classification | PUBLIC Total Business Parameter Dec 22* Dec 21 YoY % Sep 22 QoQ % Mar 22 YTD % Deposits 76,175 66,871 14 73,614 3 68,676 11 Gross Advances * 64,507 55,793 16 61,846 3 57,550 12 Advances (after t.w off) 62,887 55,793 13 61,846 2 57,550 9 Total Business 1,39,062 1,22,664 1
Slide 15: Growing our books responsibly
Classification | PUBLIC (Rs. crore) Growing our books responsibly Particulars Dec 22* Dec 21 YoY % Dec 22* Sep 22 QoQ % Commercial 20,610 18,039 14 20,490 19,761 4 Retail (Personal Banking) 14,507 12,932 12 14,486 14,185 2 Agriculture 14,623 12,468 17 14,511 14,167 2 Corporate 14,768 12,354 20 14,15
Slide 16: Retail Portfolio
(Rs. crore) Classification | PUBLIC Retail Portfolio Particulars Dec 22 Dec 21 YoY % Sep 22 Housing loan 6,342 5,401 17 6,167 Jewel loans 1,781 1,714 4 1,858 Mortgage (LAP) loans 2,194 1,685 30 2,088 Vehicle loans 1,124 1,047 7 1,122 Personal loans 332 398 (17) 353 Educational loans 151 164 (8) 154
Slide 17: Gold Loan portfolio and commercial ticket size
Classification | PUBLIC (Rs. crore) Driving growth across verticals Gold Loan portfolio Ticket size of Commercial Book 17% 30 15465 15791 17000 14873 14147 25 13718 14% 25 25 25 25 20 25 12000 15 69% 10 7000 5 0 2000 < 5 crore >= 5 crore < 10 crore >= 10 crore Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Gold
Slide 18: ECLGS Portfolio
Classification | PUBLIC (Rs. crore) ECLGS (Emergency Credit Line Guarantee Scheme) Portfolio Vertical wise Vertical Dec 22 Dec 21 Sep 22 Commercial 1,216 1,477 1,313 Agriculture 3 5 4 Corporate 841 805 902 TOTAL 2,060 2,287 2,219 Scheme wise Dec 22 Sep 22 Particulars Outstanding NPA Outstanding NPA
Slide 19: Corporate Loan Book
(Rs. crore) Classification | PUBLIC Corporate Loan Book Standard Corporate advances > 125 crore 3,000 Improving Risk Profile 4.3 7.0 8% 7% 7% 7% 6% 3.9 34% 28% 24% 24% 37% 2,000 3.6 3.6 3.5 5.0 29% 31% 29% 2,696 27% 2,248 27% 3.0 1,798 1,745 1,854 32% 36% 38% 41% 28% 1,000 1.0 Mar 19 Mar 20 Mar 21 M
Slide 20: Sectoral composition
Classification | PUBLIC Sectoral composition Rs. 62,887 crore Breakup of Manufacturing Sector (Rs. 15,256 crore) GEMS & JEWELLERY 5% OTHER EXPOSURES OTHERS 10% MINING AND BILLS 6% INFRASTRUCTURE NBFC MANUFACTURING QUARRYING 2% 18% SECTOR 4% Agri 5% 2% 24% CEMENT CONSTRUCTION 1% 4% CRE 5% ALL ENGINEE
Slide 21: Secured Exposure
(Rs. crore) Classification | PUBLIC Secured Exposure Nature of security 31.12.2022 Exposure backed by - Letter of Credit 349 Govt. Guarantee (Emergency Credit Line Guarantee Scheme- ECLGS) 2,060 Liquid Assets ^ 16,883 Vehicles 2,520 Commodities 131 Total (1) 21,943 Exposure secured by Immovable Prop
Slide 22: Liability Franchise : Predominantly Retail
Classification | PUBLIC Liability Franchise : Predominantly Retail Low dependence on wholesale deposits 11% 12% 24% Term Deposits 57% 10% 66% Demand Deposits 20% Savings Deposits < Rs.15 Lakhs Rs.15 Lakhs-Rs.1 Cr Rs.1 Cr-Rs.5 Cr > Rs.5 Cr • Term deposits are primarily retail deposits ~89% of term de
Slide 23: Investment Portfolio
Classification | PUBLIC Investment Portfolio Gross Investments (Rs. crore) Investment Category 19386 17755 2.56% 16465 16.82% HTM AFS HFT Mar 21 Mar'22 Dec '22 80.62% Investment Composition 2.53% 12.35% SLR Duration 0.89% AFS HFT HTM Total Shares 1.36 0.04 3.27 2.90 SR Yield on Investments Debenture
Slide 24: Disciplined approach to reduce stressed assets
Classification | PUBLIC Disciplined approach to reduce stressed assets
Slide 25: Movement of NPA for the quarter
(Rs. crore) Classification | PUBLIC Movement of NPA for the quarter Particulars Oct 22 – Dec 22 Oct 21 – Dec 21 Gross NPAs Opening Balance 2,457 3,972 Additions during the period 162 224 Reductions during the period 945 308 -Of which Recoveries/Upgradation 191 308 Tech Write offs 754 0 Closing Balan
Slide 26: Movement of NPA
(Rs. crore) Classification | PUBLIC Movement of NPA Particulars Apr 22 – Dec 22 Apr 21 – Dec 21 Gross NPAs Opening Balance 3,431 4,143 Additions during the period 345 621 Reductions during the period 2102 876 -Of which Recoveries/Upgradation 470 510 Tech Write offs 1633 366 Closing Balance 1,674 3,8
Slide 27: Vertical wise NPA
(Rs. crore) Classification | PUBLIC Vertical wise NPA Advances O/s. NPA as on NPA Additions NPA Reduction Q3 NPA as on Provisions VERTICAL Recoveries / Dec 22 Sep 22 Q3 Tech W/off Dec 22 Dec 22 upgradation Commercial 20,354 1200 102 80 137 1,084 673 Retail (Personal Banking) 14,475 381 38 42 11 367
Slide 28: Improving Asset Quality
(Rs. crore) Classification | PUBLIC Improving Asset Quality 8.79 8.68 7.85 4450 4213 4143 5.96 3431 4.98 2420 2351 2366 2132 3.92 1961 1809 1719 1674 3.41 1261 1093 2.66 2.28 550 0.89 Mar 19 `Mar 20 Mar 21 Mar 22 Dec 22 Mar 19 `Mar 20 Mar 21 Mar 22 Dec 22 Gross NPA Net NPA NPA Provision Net NPA% Gro
Slide 29: Provisions Coverage
Classification | PUBLIC Provisions Coverage 90.87% 4.00% 80.27% 0.8 72.70% 90.87 68.90% 80.27 56.86% 72.70 2.91% 68.90 2.54% 56.86 2.00% 63.25 65.31 0.4 57.11 55.80 44.07 1.46% 1.25% 1.03%* 0 0.00% Mar 19 Mar 20 Mar 21 Mar 22 Dec 22 Mar 19 `Mar 20 Mar 21 Mar 22 Dec 22 PCR Credit costs *Credit cost f
Slide 30: Provisions and Contingencies
(Rs. crore) Classification | PUBLIC Provisions and Contingencies Quarter 9 Months Provision for Dec 22 Dec 21 Dec 22 Dec 21 NPA 250 99 597 492 Standard Assets 7 7 27 11 Restructured Advances (15) 11 (15) 74 Other credit related items 40 18 38 6 Sub-total – Credit Provisions 282 135 647 583 Others 82
Slide 31: Restructured Accounts
(Rs. crore) Classification | PUBLIC Restructured Accounts Dec 22 Dec 21 Sep 22 Particulars Standard NPA Standard NPA Standard NPA Resolution Framework - 2.0 634 66 817 19 675 60 COVID 19 - Resolution Framework 357 46 432 43 373 47 MSME 168 147 303 156 181 215 CDR - - - 3 - - Others* 1 37 64 120 2 42
Slide 32: Movement of Standard Restructured Advances for the quarter
(Rs. crore) Classification | PUBLIC Movement of Standard Restructured Advances for the quarter Oct 22 to Dec 22 Oct 21 to Dec 21 Particulars A/c’s Amt. A/c’s Amt. A. Position at the beginning of the period 2,821 1,231 3,479 1,579 B. Addition during the period - - 85 155 C. Additions in existing A/c’
Slide 33: Sector-wise Standard Restructured Advances
(Rs. crore) Classification | PUBLIC Sector-wise Standard Restructured Advances S. Amount Stressed Book Analysis 5.00 SECTOR 3500 3170 N. Dec 22 Sep 22 3050 1 Housing 272 292 198 2753 2 Real Estate 163 157 3000 149 3 Trade 92 116 4.08 3.81 130 2169 2500 1710 4 Textile 73 76 5 Personal 50 54 1356 1261
Slide 34: Building a strong digital ecosystem
Classification | PUBLIC Building a strong digital ecosystem
Slide 35: Digital Banking – D Lite
Classification | PUBLIC Digital Banking – D Lite Special Deposit-555 TD Redeem Feedback Recent launches BBPS e-DL UPI Transactions (in lakhs) Launching soon 1875 1758 30% 95% 1361 1618 1232 4.05 MILLION DLITE APP DOWNLOADS Growth in digital Share of digital transactions transaction Dec-21 Mar-22 Jun
Slide 36: Digital Partnerships
Classification | PUBLIC DIGITAL PARTNERSHIPS ASSETS LIABILITIES New opportunity 35 www.kvb.co.in
Slide 37: Awards and Accolades for the Quarter
Classification | PUBLIC Awards and Accolades for the Quarter IBA IBA IBA 9th edition of IDC INDIA WINNER RUNNER-UP CIO CROWN The Best AI ML adoption & The Best Technology Bank of INTELLIGENT AUTOMATION BEST IN FUTURE OF DIGITAL The Best Fintech collaboration The Best Digital Financial the Year (AL,M
Slide 38: External Ratings
Classification | PUBLIC External Ratings Rating Agency Instrument Ratings Certificate of Deposits A1+ Tier II Bonds A+ (stable) Tier II Bonds A+ Certificate of Deposits A1+ 37 www.kvb.co.in
Slide 39: Dynamic workforce
Classification | PUBLIC Dynamic workforce Leading to improved Efficiency 19 17 15.0* 14 15 14 9.2 4.6 2.8 3.0 FY 19 FY 20 FY 21 FY 22 Dec 22 FY 19 FY 20 FY 21 FY 22 Dec 22 Profit per employee (Rs. Lakhs) *Annualized Business per employee (Rs. Crore) 176 160 142 149 138 FY 19 FY 20 FY 21 FY 22 Dec 22
Slide 40: Decade of Sustained Growth
(Rs. crore) Classification | PUBLIC Decade of Sustained Growth Year 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Paid up Capital 107 107 122 122 122 145 160 160 160 160 Reserves 2,978 3,219 4,124 4,451 4,723 6,066 6,205 6,440 6,760 7,436^ Owned funds 3,085 3,326 4,
Slide 41: Thank You
Classification | PUBLIC Thank You