Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q2 FY22 Earnings Presentation
36 slides from Kotak Mahindra Bank's earnings presentation, Oct 26, 2021
Slide 1: Cover letter to stock exchanges
e kotak Kotak Mahindra Bank October 26, 2021 BSELimited National Stock Exchange of India Limited Corporate Relationship Department, Exchange Plaza, Plot No.C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, Dalal Street, Bandra (East), Mumbai 400 ooi. Mumbai 400 051. BSE Scrip Code: 5002
Slide 2: Investor Presentation Q2FY22
Investor Presentation Q2FY22 Presentation on financial results for the period ended 30th September, 2021 26th October, 2021
Slide 3: Standalone Highlights Q2FY22
Standalone Highlights Q2FY22 PAT NII NIM CASA Ratio ` 2,032 cr ` 4,021 cr 4.45% 60.6% [` 2,184 cr] [` 3,897 cr] [4.50%] [57.1%] Customer Capital & CAR# Net NPA Assets Reserves 23.1% 4.39% [23.4%] [4.72%] ` 256,353 cr 1.06% ` 67,376 cr Tier TierI#I# [` 218,790 cr] [0.74%^] [` 59,923 cr] 21.4% 22.1% [
Slide 4: Profit and Loss Account
Profit and Loss Account ` cr Q2FY22 Q2FY21 Q1FY22 FY21 Notes Net Interest Income 4,021 3,897 3,942 15,340 COVID-19 provision held: ` 1,279 cr, no utilization during H1FY22 Other Income 1,812 1,433 1,352 5,006 Fee and Services 1,419 1,057 1,169 4,331 As per the RBI guidelines dated 30th Aug, 2021
Slide 5: Fees & Services
Fees & Services ` cr Q2FY22 Q2FY21 Q1FY22 FY21 Distribution & Syndication Income 312 172 183 785 General Banking Fees 1,064 853 946 3,396 Others 43 32 40 150 Fees and Services 1,419 1,057 1,169 4,331 4
Slide 6: Asset Quality
Asset Quality 30-Sep-20 ` cr 30-Sep-21 30-Jun-21 Restructuring (` cr) 30-Sep-21 % of Adv 30-Jun-21 Proforma GNPA 7,658 5,632 7,932 COVID-1 related 227 0.10% 227 NNPA 2,491 1,524 2,792 COVID-2 related 268 0.11% 10 GNPA (%) 3.19% 2.70% 3.56% Total COVID related 495 0.21% 237 NNPA (%) 1.06% 0.74% 1.28%
Slide 7: Balance Sheet
Balance Sheet ` cr 30-Sep-21 30-Sep-20 30-Jun-21 Capital & Reserves and Surplus 67,376 59,923 65,472 Deposits 291,711 261,564 286,560 CA 53,280 40,454 52,433 SA 123,479 108,990 120,002 Term Deposits 114,952 112,120 114,125 Of which: TD Sweep 24,151 20,184 23,050 Borrowings 32,838 41,789 29,231 Other
Slide 8: Investing in Technology Backbone
Investing in Technology Backbone For Acquisition, Engagement, Experience INFRASTRUCTURE CORE APPLICATIONS DIGITAL CHANNELS BUILD RESILIENCY & DIY JOURNEY, REINFORCE CORE SYSTEMS GO TO CLOUD STP & AUTOMATION Upgrades Cash Mgmt. System Capacity reinforcements for Mobile and Completed Hyper Scala
Slide 9: Kotak MB: SuperApp for all financial needs
Kotak MB: SuperApp for all financial needs Bank Pay Shop Key launches in Q2 Roadmap Mobile App 2.0 Invest Protect Planned Two-app strategy for all banking needs Billpay & Revamped & Top 4 Cyber Loans Forex streamlined features in Insurance Recharge home page Hindi booking • 50+ Products • Wide range
Slide 10: Ecosystems
Ecosystems Current Partnerships and Fintechs Planned Kotak-orchestrated Ecosystem: Kaymall in-app shopping Kotak-orchestrated Ecosystems 15 partners LIVE Investment Health and Life Insurance Connected Banking 2 partners LIVE Leveraging Regulatory Enablers API Banking 281 partners LIVE Account OCEN A
Slide 11: Retail Assets: Digital Customer Experiences
Retail Assets Examples of Digital Customer Experiences Building digital engagement journeys Personal Loans * Credit Cards * Instant Disbursement Assisted Onboarding Existing to New to Co - on Kotak Platform on Digital channels Bank Bank origination Instant Disbursement API-driven journey for Custome
Slide 12: Digitizing Merchant Offerings
Digitizing Merchant Offerings kotak.biz Merchant App (Q2) Other major launches in Q2 Augment the Core Payment Stack offering and Enrich with VAS through partnerships • POS Digital On-boarding Integrated • Connected Banking – Accounting Completely Digital Solution Payment Solution Onboarding and acro
Slide 13: Corporate Banking
Corporate Banking Transforming Transaction Banking Trade Portal Connected Quickcheck Payment+ NACH Escrow CMS 24x7 Whitelabel Paperless | Seamless | End-to-End | Banking Seamless, Industry- Platform System 24x7 API SCM 24*7 | Dashboard | Report Designer Unified CX Cloud based first CMS for Seamless
Slide 14: Digital Highlights
Digital Highlights Netbanking WhatsApp Banking 27% YoY growth in Logins, Q2FY22 vs Q2FY21 1.9X YoY Monthly Active Users, Sep ‘21 vs Sep ‘20 Traditional 32% YoY growth in 90-day active user base, Q2FY22 vs Q2FY21 Emerging 40+ Services live, 2 new added in Q2 Digital 36% YoY growth in Financ
Slide 15: Deposit
Deposit CASA (` cr) Cost of SA CASA % 60.6% 57.1% 60.4% 3.69% [3.87%] Floating rate SA CASA & TDs below ` 5 cr, as % of total deposits TD Sweep as % of 90% [91%] Fixed rate SA total deposits Customers as on 8.3% [7.7%] CA 30th Sep, 2021: 28.5 mn YoY % YoY % 32% 32% Avg CA (YTD) 48,425 36,610 EOP CA
Slide 16: Customer Assets
Customer Assets 30-Sep-21 (` 256,353 cr) Customer Assets ` cr 30-Sep-21 30-Sep-20 30-Jun-21 Home Loans & LAP 61,479 47,732 55,623 Consumer Bank WC (Secured) 23,079 19,562 21,047 PL, BL and Consumer Durables 7,261 8,177 6,563 Credit Cards 4,363 4,378 3,848 CV/CE 19,490 18,363 19,349 Agriculture Divis
Slide 17: Consolidated Highlights Q2FY22
Consolidated Highlights Q2FY22 CAR# Customer PAT 24.2% Total Assets Assets [24.5%] ` 2,989 cr Tier I# ` 287,831 cr ` 511,826 cr [` 2,947 cr] 23.4% [` 247,432 cr] [` 457,283 cr] [23.9%] Capital & NIM Net NPA Book Value Reserves per Eq. share 4.54% ` 89,627 cr 1.09% ` 449 [4.55%] [` 79,389 cr] [0.86%^
Slide 18: Consolidated PAT
Consolidated PAT ` cr Q2FY22 Q2FY21 Q1FY22 FY21 Kotak Mahindra Bank 2,032 2,184 1,642 6,965 Kotak Mahindra Prime 240 133 79 535 Kotak Mahindra Investments 89 74 71 258 Kotak Securities 243 199 236 793 Kotak Mahindra Capital 58 14 42 82 Kotak Mahindra Life Insurance 155 171 (243) 692 Kotak Mahindra G
Slide 19: Entity-wise Capital & Reserves and Surplus
Entity-wise Capital & Reserves and Surplus ` cr 30-Sep-21 30-Sep-20 30-Jun-21 Kotak Mahindra Bank 67,376 59,923 65,472 Kotak Mahindra Prime 6,928 6,289 6,702 Kotak Mahindra Investments 2,277 1,976 2,189 Kotak Securities 5,769 4,897 5,526 Kotak Mahindra Capital 769 642 711 Kotak Mahindra Life Insuran
Slide 20: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance ` cr Q2FY22 Q2FY21 Q1FY22 FY21 Gross Written Premium (` cr) Capital 562 562 562 562 2,915 2,401 1,663 11,100 Other Reserves and 3,313 3,124 3,158 3,483 Surplus Total Premium 2,915 2,401 1,663 11,100 (Loss) / Profit After 155 171 (243) 692 Tax (Shareholders’) Solvency Ra
Slide 21: Kotak Securities
Kotak Securities ` cr Q2FY22 Q2FY21 Q1FY22 FY21 Market ADV* (` ‘000 cr) Total Income 613 516 571 2,020 3,171 1,261 2,390 1,530 Profit Before Tax 325 266 315 1,057 Profit After Tax 243 199 236 793 Market Share Cash* - (%) 11.0 8.7 9.6 9.3 Overall Market Share* Q2FY22: 2.4% (Q2FY21: 2.2%) 1,485 branch
Slide 22: Kotak Mahindra Capital Company
Kotak Mahindra Capital Company Equity Advisory Devyani International Ltd. Zomato Ltd. Sell-side Financial Advisor to the Founders of # Initial Public Offer # Initial Public Offer Billdesk for acquisition of Billdesk (IndiaIdeas.com) ` 9,375 cr ` 1,838 cr by PayU (payments and fintech business of Pro
Slide 23: Kotak Mahindra Investments
Kotak Mahindra Investments ` cr Q2FY22 Q2FY21 Q1FY22 FY21 Customer Assets* (` cr) NII 100 92 102 354 Other Income 42 25 13 74 NII and Other Income 142 117 115 428 Profit Before Tax 119 99 96 346 Profit After Tax 89 74 71 258 NNPA (%) 0.6% 1.0% 0.6% 0.6% CAR (%) (incl unaudited profits) 30.6% ROA (%)
Slide 24: Kotak Mahindra Prime
Kotak Mahindra Prime ` cr Q2FY22 Q2FY21 Q1FY22 FY21 Customer Assets* (` cr) NII 338 292 307 1,212 Other Income 97 65 47 220 NII and Other Income 435 358 354 1,432 Profit Before Tax 320 179 106 720 Profit After Tax 240 133 79 535 NNPA (%) 1.8% 1.3% 2.4% 1.8% CAR (%) (incl unaudited profits) 30.6% ROA
Slide 25: Kotak Mahindra AMC & Trustee Co.
Kotak Mahindra AMC & Trustee Co. Average Assets Under Management (` cr) - Overall ` cr Q2FY22 Q2FY21 Q1FY22 FY21 Profit Before Tax 130 113 143 465 Profit After Tax 97 84 107 346 Average Assets Under Management (` cr) - Equity Notes Overall Market share on AAUM increased to 7.4% in Q2FY22 (Q2FY21:
Slide 26: Assets Under Management and Relationship Value
Assets Under Management and Relationship Value 30th September, 2021 30th September, 2020 40% (Total: ` 381,058 cr) (Total: ` 271,769 cr) * Includes undrawn commitments, Relationship Value of Wealth + Priority + Investment Advisory as on wherever applicable 30th Sep, 2021 ~` 463,000 cr (PY: ~ ` 300,0
Slide 27: Geographical presence
Geographical presence 3 Branches 1,622* [No./%] 11 North Branches distributed 487 / 30% 91 10 across various geographies 72 102 West East 1 504 / 31% 125 / 8% 86 66 5 22 1 South 506 / 31% 1 159 46 9 42 25 Branch Classification 2 19 336 89 7 109 182 90 34 No. of ATMs 2,601 * Does not include branches
Slide 28: Group Profile
GROUP PROFILE
Slide 29: The Journey So far…
The Journey So far… ∞ First International Ability to Identify and Capitalize on Opportunities Branch ∞ Microfinance 2019 ARC 2013 ∞ Digital Bank - 811 BANK ∞ Kotak IDF 2020 2008 2008 ∞ Digital 2017 2011 Video Life Insurance* KYC 2003 2002 Auto Finance 2000 2013 2006 2004 2014 2010 Alternate ∞ ING Vy
Slide 30: Kotak – Diversified and integrated financial services
Kotak – Diversified and integrated financial services Kotak Mahindra Bank Commercial Bank & Parent Company Kotak Mahindra Kotak Mahindra Kotak Investment Kotak Mahindra Kotak Securities Prime Investments Advisors Capital Company ∞ Car Finance ∞ Investments ∞ Alternate Assets ∞ Investment Banking ∞ S
Slide 31: Present Across the Entire Value Chain
Present Across the Entire Value Chain Platform with Wide Product Portfolio Wholesale Banking Commercial Banking Consumer Banking Other Financial Services ∞ Corporate Loans ∞ Agriculture Finance ∞ Branch Banking ∞ Wealth Management ∞ Trade Finance ∞ Tractor Finance ∞ 811 ∞ Car and 2W Loans ∞ Business
Slide 32: Our Strengths
Our Strengths An integrated ∞ Balance Sheet, Market & Knowledge driven businesses encompassing all customer & geographic segments financial services conglomerate with a ∞ Wide spectrum of financial products and services that help to provide balance in market cycles, hedge against downturns in divers
Slide 33: Our Strategy
Our Strategy Keeping Technology at Leadership in digital Customer Centricity the Core capabilities Keep customer at the core of the Investing in technology (both business in order to provide a positive infrastructure and applications), with a Continue journey on best in class digital experience and
Slide 34: The Path of Leadership
The Path of Leadership Attract & Retain Talent - High degree of stability within the Risks Management kotak leadership team, with an Strong Capital Position average tenure of 20+ years with - Extensive on-the-ground the Group - Capital adequacy amongst the presence and superior sponsor / highest in
Slide 35: Strong and Committed Leadership Team
Strong and Committed Leadership Team Senior Leadership Team with Long Vintage Dipak Gupta Gaurang Shah KVS Manian D Kannan Shanti Jt. MD WTD WTD Ekambaram 29 Years 25 Years 26 Years 29 Years 30 Years Compliance, IT, HR & Credit, ARD, Asset Corporate, Marketing, Digital, Mgmt, Alternate Institutional
Slide 36: Disclaimer
Disclaimer This presentation is for information purposes only and does not constitute an offer, solicitation or advertisement with respect to the purchase or sale of any security of Kotak Mahindra Bank Limited (the “Bank”) and no part of it shall form the basis of or be relied upon in connection wit