Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q4 FY2021 Earnings Presentation
37 slides from Kotak Mahindra Bank's earnings presentation, May 3, 2021
Slide 1: Exchange filing cover letter
ekotak Kotak Mahindra Bank May3, 2021 The Manager The Manager Corporate Relationship, National Stock Exchange of India Ltd. BSE Limited, Exchange Plaza, 1st Floor, New Trading Ring, 5th Floor, Rotunda Building, Plot No.C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, Dalal Street, Band
Slide 2: Investor Presentation Q4FY21
INVESTOR PRESENTATION Q4FY21 Presentation on financial results for the period ended 31st March, 2021 3rd May, 2021
Slide 3: Highlights of unprecedented FY21 vs. FY20
Highlights of unprecedented FY21 vs. FY20 Standalone ` cr FY21 FY20 FY21 v FY20 Operating Profit 12,215 10,021 22% PBT 9,303 7,805 19% PAT 6,965 5,947 17% NIM 4.41% 4.62% CASA Ratio 60.4% 56.2% Capital Adequacy Ratio 22.3% 17.9% Credit cost excluding COVID provision (bps) 84 67 SMA 2 110 96 Unsecure
Slide 4: Standalone highlights Q4FY21
Standalone highlights Q4FY21 NII PAT Total Assets NIM ` 1,682 cr ` 3,843 cr 4.39% ` 383,489 cr [` 1,267 cr] [` 3,560 cr] [4.72%] [` 360,252 cr] Net NPA Loans CAR# Capital & 22.3% Reserves 4.39% [17.9%] ` 223,689 cr [4.72%] 1.21% ` 63,727 cr Tier TierI I ## [` 219,748 cr] 21.4% 21.4% [0.71%] [` 49,01
Slide 5: Profit and Loss Account
Profit and Loss Account ` cr Q4FY21 Q4FY20 Q3FY21 FY21 FY20 Notes Net Interest Income 3,843 3,560 3,876 15,340 13,500 During the quarter, the Hon. SC Other Income 1,949 1,489 1,285 5,459 5,372 vacated stay on NPA recognition and granted relief for interest on Fee and Services 1,378 1,270 1,121 4,3
Slide 6: Fees & Services
Fees & Services ` cr Q4FY21 Q4FY20 Q3FY21 FY21 FY20 Distribution & Syndication Income 292 234 178 785 590 General Banking Fees 1,023 1,007 913 3,396 4,021 Others 63 29 30 150 120 Fees and Services 1,378 1,270 1,121 4,331 4,731 5
Slide 7: Asset Quality
Asset Quality Asset Quality 31-Dec-20 • No sale to ARCs ` cr 31-Mar-21 31-Mar-20 Proforma • Total restructuring GNPA 7,426 5,027 7,126 implemented: ` 435 cr SMA2 outstanding - ` 110 cr, NNPA 2,705 1,558 2,646 (0.19% of net advances) 0.05% of net advances GNPA (%) 3.25% 2.25% 3.27% (PY: ` 96 cr, 0.04
Slide 8: Balance Sheet
Balance Sheet ` cr 31-Mar-21 31-Mar-20 31-Dec-20 Capital & Reserves and Surplus 63,727 49,015 61,914 Deposits 280,100 262,821 265,304 CA 52,087 43,013 43,975 SA 117,226 1,04,609 112,199 Term Deposits 110,787 1,15,199 109,130 Of which: TD Sweep 20,924 17,467 21,601 Borrowings 23,651 37,993 48,223 Oth
Slide 9: Digital Strategy
Digital Strategy Experience Retail Engagement Acquisition Commercial 811 SA Offers Risk Control APIs Payments Assets Analytics Upgrade Corporate Foundations UI/UX Resilience Scalability Investments Unified Platform 8
Slide 10: Digital Highlights
Digital Highlights Scaling Digital Banking Capabilities Accelerating Assets Launch of Universal Video KYC platform made for Assets customer Mobile Banking - Transaction volume up 75% & value up 41% YoY. Mobile transaction share of 4.3%. App Lending Chatbot (HL, BL, LAP) for providing Instant In-Prin
Slide 11: Digital Acquisition & Engagements
Digital Acquisition & Engagements 811 – Share in Digital Engagement Digital payments MB 30 day unique Logins 59% Key Highlights Key Trends Digital payment* checkout modes UPI transactions 58% contribute to 87%+ of monthly transaction share in Mar’21 ~2.43X Consumer UPI P2M Secured Credit Card 82
Slide 12: Deposit
Deposit CASA (` cr) Cost of SA CASA % 60.4% 56.2% 58.9% 3.74% [5.23%] CASA & TDs below ` 5 Wholesale floating rate SA cr, as % of total deposits Fixed rate SA TD Sweep as % of 91% [86%] total deposits 7.5% [6.6%] Certificate of CA Deposits at ` 666 cr Lower YoY by 85% YoY % YoY % 27% 12% Avg SA (YTD
Slide 13: Customer Assets
Customer Assets 31-Mar-21 (` 238,857 cr) Customer Assets ` cr 31-Mar-21 31-Mar-20 31-Dec-20 Home Loans & LAP 54,749 48,516 49,977 Consumer Bank WC (Secured) 21,839 19,839 20,548 PL, BL and Consumer Durables 7,024 9,754 7,528 Credit Cards 3,969 4,701 4,557 CV/CE 20,387 19,253 18,685 Agriculture Divis
Slide 14: Specific Sectors Exposure
Specific Sectors Exposure Specific Sectors as per Basel III Outstanding* (` cr) 31-Mar-21 % 31-Mar-20 % 31-Dec-20 % NBFCs 15,307 5.0% 11,294 4.0% 14,169 4.9% :Of which HFC 6,328 2.1% 4,548 1.6% 6,174 2.1% CRE (excl LRD) 6,076 2.0% 6,251 2.2% 5,572 1.9% LRD 3,198 1.1% 4,457 1.6% 4,104 1.4% Total incl
Slide 15: Consolidated Highlights Q4FY21
Consolidated Highlights Q4FY21 CAR# Customer PAT 23.4% Total Assets Assets [19.8%] ` 2,589 cr Tier I# ` 268,149 cr ` 478,873 cr [` 1,905 cr] 22.6% [` 260,583 cr] [` 443,173 cr] [19.2%] Capital & NIM Net NPA Book Value Reserves per Eq. share 4.45% ` 84,836 cr 1.23% ` 426 [4.73%] [` 67,134 cr] [0.70%]
Slide 16: Consolidated PAT
Consolidated PAT ` cr Q4FY21 Q4FY20 Q3FY21 FY21 FY20 Notes Non bank entities contributed Kotak Mahindra Bank 1,682 1,267 1,854 6,965 5,947 35% to consolidated PAT in Q4FY21 Kotak Mahindra Prime 184 161 149 535 673 Provision for interest on interest Kotak Mahindra Investments 73 77 68 258 270 imp
Slide 17: Entity-wise Capital & Reserves and Surplus
Entity-wise Capital & Reserves and Surplus ` cr 31-Mar-21 31-Mar-20 31-Dec-20 Kotak Mahindra Bank 63,727 49,015 61,914 Kotak Mahindra Prime 6,623 6,088 6,439 Kotak Mahindra Investments 2,117 1,860 2,044 Kotak Securities 5,321 4,529 5,081 Kotak Mahindra Capital 689 622 680 Kotak Mahindra Life Insuran
Slide 18: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance ` cr FY21 Individual New Business Product FY21 Indian Embedded Value (IEV)* 9,869 Mix# Value of New Business (VNB) * 691 Participating Products 46.8% VNB Margin (%) * 28.6% Non-Participating Products 30.2% ULIP 23.0% Channel Mix FY21 Highlights Bancassurance 48% Embed
Slide 19: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance ` cr Q4FY21 Q4FY20 Q3FY21 FY21 FY20 Gross Written Premium (` cr) Capital 562 562 562 562 562 4,870 3,865 2,623 11,100 10,340 Other Reserves and 3,483 2,791 3,291 3,483 2,791 Surplus Total Premium 4,870 3,865 2,623 11,100 10,340 Profit After Tax 193 165 167 692 608 (Shar
Slide 20: KLI – Update on Digitization
KLI – Update on Digitization Focus continues on empowering distribution, energizing employees and superior customer experience Digital onboarding of customers through Genie, continues to remain above 95% Comprehensive Lead management has been extended to help in visibility and improving leads li
Slide 21: Kotak Securities
Kotak Securities ` cr Q4FY21 Q4FY20 Q3FY21 FY21 FY20 Market ADV* (` ‘000 cr) Total Income 570 462 474 2,020 1,690 2,247 1,059 1,695 1,530 967 Profit Before Tax 321 218 245 1,057 738 Profit After Tax 241 163 184 793 550 Market Share* (%) 2.2 Market Share* in Cash Segment FY21: 9.3% (FY20: 10.0%) 1,45
Slide 22: Kotak Mahindra Capital Company
Kotak Mahindra Capital Company Equity Bharat Petroleum Corporation Limited Varroc Engineering Limited ` 5,467 cr # Block Deals # Qualified Institutional Placement ` 699 cr Brookfield India Real Estate Trust V-Mart Retail Limited # Initial Public Offer (IPO) # Qualified Institutional Placement 3,800
Slide 23: Kotak Securities - Digital Update
Kotak Securities - Digital Update Push on Digital Products and Platform Cheapest Plan in the industry for Derivative and intraday Traders - allows clients to trade at 0 Trade Free Plan brokerage Clients can open Trading accounts digitally and start trading in 60 minutes New NewMobile App Mobile
Slide 24: Kotak Mahindra Prime
Kotak Mahindra Prime ` cr Q4FY21 Q4FY20 Q3FY21 FY21 FY20 Customer Assets* (` cr) NII 313 313 306 1,212 1,234 Other Income 67 99 67 220 291 NII and Other Income 380 412 373 1,432 1,525 Profit Before Tax 248 203 201 720 923 Profit After Tax 184 161 149 535 673 NNPA (%) 1.7% 0.6% 2.2%* 1.7% 0.6% CAR (%
Slide 25: Kotak Mahindra AMC & Trustee Co.
Kotak Mahindra AMC & Trustee Co. Average Assets Under Management (` cr) - Overall ` cr Q4FY21 Q4FY20 Q3FY21 FY21 FY20 Profit Before 134 117 122 465 454 Tax Profit After 100 88 91 346 337 Tax Highlights Overall Market share on AAUM increased to 7.3% in Average Assets Under Management (` cr) - Equit
Slide 26: Assets Under Management and Relationship Value
Assets Under Management and Relationship Value 31st March, 2021 31st March, 2020 43% (Total: ` 323,762 cr) (Total: ` 225,878 cr) Relationship Value of Wealth + Priority + Investment Advisory as on 31st Mar, 2021 ~` 382,000 cr (PY: ~` 270,000 cr) 25
Slide 27: Key Awards
Key Awards Best Domestic Bank and The Best Bank India Best Cash Management Kotak General Insurance Best Corporate & award for the fourth Bank in India Best Insurance Investment Bank year The Asian Banker Campaign Asiamoney Best Bank Asset Triple A Country Transaction Finance FICCI Insurance Industry
Slide 28: Geographical presence
Geographical presence 3 Branches 1,604* [No./%] 11 North Branches distributed 485 / 30% 90 10 across various geographies 71 102 West East 1 496 / 31% 122 / 8% 86 66 5 1 22 South 501 / 31% 1 155 46 9 42 22 Branch Classification 2 19 332 87 7 109 181 90 34 No. of ATMs 2,598 27 * Does not include branc
Slide 29: Group Profile
GROUP PROFILE
Slide 30: 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 KYC Insurance 2003 2002 Auto Finance 2000 2013 2006 2004 2014 2010 Alternate ∞ ING Vys
Slide 31: 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 32: 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 33: 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 help to balance against market cycles, hedge against downturns in specific diver
Slide 34: Our Strategy
Our Strategy ∞ To be amongst the most trusted financial services conglomerates in India Enhance Customer ∞ Enhance customer experience backed by wide spectrum of products, and using cost efficient, convenient delivery channels including digital Experience & Trust and technological initiatives ∞ Stre
Slide 35: The Path of Leadership
The Path of Leadership Attract & Retain Talent - High degree of stability within the Risks Management management team, many have been Strong Capital Position with the Group for over 15 years - Extensive on-the-ground - Capital adequacy amongst the - Preferred Employer status in the presence and supe
Slide 36: 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 24 Years 26 Years 29 Years 30 Years Compliance, IT, HR & Credit, ARD, Asset Corporate, Marketing, Digital, Mgmt, Alternate Institutional
Slide 37: 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
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