Karur Vysya Bank Ltd. · NSE:KARURVYSYA
Karur Vysya Bank — Q2 FY2020-21 Earnings Presentation
47 slides from Karur Vysya Bank's earnings presentation, Oct 30, 2020
Slide 1: Regulation 30 intimation cover letter to NSE
Smart way to bank IRC:F48:104:601:2020 30.10.2020 The Manager, National Stock Exchange of India Ltd., Exchange Plaza, 5tn Floor, Plot No. C/1, ‘G’ Block, Bandra — Kurla Complex, Bandra (East), Mumbai - 400 051 Dear Sir, Sub: Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Reg
Slide 2: Investor Presentation 30.09.2020
Investor Presentation 30.09.2020 Karur Vysya Bank Limited 1
Slide 3: Disclaimer
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 anyon
Slide 4: 1. Performance Highlights
1. Performance Highlights Portfolio Performance New Initiatives & other parameters 3
Slide 5: Highlights
Highlights BUSINESS CREDIT Gross Advances grows @ Rs.1,11,530 crore to Rs. 50,408 crore CRAR CASA CRAR at 18.41% CASA share @ 34% Tier I @ 16.35% Total Deposits Rs. 61,122 crore PROFIT (6M) NIM Opg. Profit Rs.923 crore Net Profit Rs.220 crore 3.47% (Qtr.) 4
Slide 6: Business – continuing sequential growth
(Rs. crore) Business – continuing sequential growth YoY QoQ YTD Parameter 30.09.20 30.09.19 Growth 30.06.20 Growth 31.03.20 Growth % % % Total 61,122 62,213 (2) 60,065 2 59,075 3 Deposits Gross 50,408 49,388 2 48,617 4 48,516 4 Advances Advances 50,408 48,063 5 48,517 4 47,716 6 (ex-IBPC) Total 1,11
Slide 7: Quarterly Financials – improving trend
(Rs. crore) Quarterly Financials – improving trend YoY Growth QoQ Growth Parameter 30.09.20 30.09.19 30.06.20 % % Total Income 873 874 - 879 (1) Operating Profit 449 431 4 474 (5) Net Profit 115 63 83 106 8 938 874 879 873 431 500 474 449 63 84 106 115 Sep-19 Mar-20 Jun-20 `Sep 20 Total Income Opera
Slide 8: Gold Loan – Growth continues to shine
Gold Loan – Growth continues to shine Sept. 2020 A new high of Rs. 11,149 crore June 2020 Mar. 2020 Loan Book just short of Rs. 10,000 crore Outstanding advances cross Rs. 9,000 crore Mar. 2010 Mar. 2003 Portfolio reaches a new high of Rs. 1,777 crore Jewel Loan Book at less than Rs. One Crore 11149
Slide 9: Strong CRAR & Improving Asset Quality
(Rs. crore) Strong CRAR & Improving Asset Quality 30.09.20 30.09.19 31.03.20 30.06.20 Basel III Capital CRAR % 18.41 15.99 17.17 18.14 NPA Ratios Gross NPA 3,998 4,391 4,213 4,056 Net NPA 1,428 2,118 1,809 1,585 Gross NPA % 7.93 8.89 8.68 8.34 Net NPA % 2.99 4.50 3.92 3.44 PCR % 75.19 61.82 68.90 72
Slide 10: Business Profile (Averages)
(Rs. crore) Business Profile (Averages)* Y-o-Y YTD Particulars Sep 20 Sep 19 Growth Mar 20 Growth % % Avg. Deposits 59,688 60,952 (2) 61,103 (2) Avg. Demand Deposit 6,051 5,833 4 5,830 4 % to Total 10 9 10 Avg. Savings Deposit 13,593 12,029 13 12,308 10 % to Total 23 20 20 Avg. Time Deposit 40,043 4
Slide 11: Deposits – Stable & loyal customer base
(Rs. crore) Deposits – Stable & loyal customer base Particulars Sep 20 Sep 19 Y-o-Y Growth % Mar 20 YTD Growth % Total Deposits 61,122 62,213 (2) 59,075 3 Demand 6,455 6,142 5 5,504 17 Savings 14,242 12,380 15 13,003 10 CASA 20,697 18,522 12 18,507 12 CASA % 34 30 31 Term Deposits < 2 Crore 37,871 3
Slide 12: Balance Sheet – Healthy & De-risked
(Rs. crore) Balance Sheet – Healthy & De-risked Particulars Sep 20 Sep 19 Y-o-Y (%) Capital & Liabilities Capital 160 160 - Reserves and Surplus 6,661 6,341 5 Deposits 61,122 62,213 (2) Borrowings 1,383 3,052 (55) Other Liabilities and Provisions 1,849 1,648 12 Total 71,175 73,414 (3) Assets Cash an
Slide 13: Profit and Loss A/c
(Rs. crore) Profit and Loss A/c Quarter Half year Particulars Sep 20 Sep 19 YoY (%) Sep 20 Sep 19 YoY (%) Net Interest Income 601 596 1 1,163 1,180 (1) Other Income 272 278 (2) 589 548 7 Total Income 873 874 - 1,752 1,728 1 Operating Expenses 424 443 (4) 829 852 (3) Operating Profit 449 431 4 923 87
Slide 14: Fee & Other Income
(Rs. crore) Fee & Other Income Quarter Half year Particulars Sep 20 Sep 19 YoY (%) Sep 20 Sep 19 YoY (%) TOTAL NON-INT. INCOME 272 278 (2) 589 548 7 1) Fee Income 119 153 (22) 240 321 (25) 2) Investment trading 120 91 32 298 158 89 profit 3) Forex Income 8 10 (20) 13 19 (32) 4) Others* 25 28 (11) 38
Slide 15: Fee based income - continues to be healthy
(Rs. crore) Fee based income - continues to be healthy Growth in Other Income 400 37 36 40 32 31 31 • Non interest income accrues through 200 20 diverse sources - fee based, e- 347 317 transactions, third party products etc. 278 260 272 • ~31% share in total operating income 0 0 (Q2 FY 2020-21) Sep
Slide 16: Staff & Operating Expenses
(Rs. crore) Staff & Operating Expenses Quarter Half year Particulars Sep 20 Sep 19 YoY (%) Sep 20 Sep 19 YoY (%) Staff Expenses 220 213 3 434 417 4 Of above – Prov. for employee 45 48 (6) 90 87 3 retirement benefits Other Operating Expenses 204 230 (11) 395 435 (9) TOTAL OPG. EXPENSES 424 443 (4) 82
Slide 17: Key Ratios (Qtr)
Key Ratios (Qtr) NIM^ Cost to Income 54.05% 50.67% 3.46% 3.46% 3.47% 48.60% 3.36% 46.68% 46.09% 3.33% Sep 19 Dec 19 Mar 20 June 20 Sep 20 Sep 19 Dec 19 Mar 20 June 20 Sep 20 ROA ROE 0.59% 0.63% 6.29% 6.74% 0.46% 5.07% 0.34% 3.87% 0.08% 0.92% Sep 19 Dec 19 Mar 20 June 20 Sep 20 Sep 19 Dec 19 Mar 20 J
Slide 18: Key Ratios (Qtr)
Key Ratios (Qtr) Particulars Sep 20 Sep 19 Cost of Deposits (%) 5.06 5.86 Yield on Advances (%) 9.26 9.85 Cost of Funds (%) 5.09 5.95 Yield on Funds (%) 7.84 8.59 NIM (%) 3.47 3.46 Spread (%) 2.75 2.64 Cost to Income Ratio (%) 48.60 50.67 Business/Emp. (Rs. Crore) 14.37 13.88 Profit/Emp. (Rs. Lakh)
Slide 19: Key Ratios (Half year)
Key Ratios (Half year) Particulars Sep 20 Sep 19 Cost of Deposits (%) 5.21 5.84 Yield on Advances (%) 9.29 9.73 Cost of Funds (%) 5.25 5.92 Yield on Funds (%) 7.92 8.59 NIM (%) 3.42 3.47 Spread (%) 2.67 2.67 Cost to Income Ratio (%) 47.34 49.28 Business/Emp. (Rs. Crore) 14.37 13.88 Profit/Emp. (Rs.
Slide 20: Moratorium Book – Collection efficiency
(Rs. crore) Moratorium Book – Collection efficiency Collection Collection Working Capital Moratorium Working efficiency Term Loan efficiency where FITL Vertical Book Capital Book granted for Book for 31.08.2020 31.08.2020 September 31.08.2020 September 31.08.2020 2020** 2020** Agriculture 390 260 38
Slide 21: 2. Portfolio Performance
Performance Highlights 2.Portfolio Performance New Initiatives & other parameters 20
Slide 22: Advances Portfolio
(Rs. crore) Advances Portfolio Y-o-Y Particulars Sep 20 Sep 19 Growth % Commercial 16,421 16,118 2 Retail (Personal Banking) 11,360 10,438 9 Agriculture 10,510 8,229 28 Corporate 12,117 13,278 (9) Sub-total 50,408 48,063 5 IBPC - 1,325 - Gross Advances 50,408 49,388 2 Jewel Loans (included above) 11
Slide 23: Advances – diversified growth
(Rs. crore) Advances – diversified growth 17056 16421 16118 15620 14169 13278 12767 12117 11360 11763 11278 11193 10510 8936 8113 8229 Mar 19 Sep 19 Mar 20 Sep 20 ABG CBG CIG PBG 34% 33% 32% 33% 28% 27% 26% 22% 24% 23% 24% 23% 21% 17% 18% 16% Mar 19 Sep 19 Mar 20 Sep 20 ABG CBG CIG PBG Segments ABG
Slide 24: Growth in Retail Segment
(Rs. crore) Growth in Retail Segment 4,788 4,548 3,619 2,795 2,330 1,712 1,683 1,635 1,393 965 921 1,017 1,044 989 979 1,221 895 596 578 625 FY 17 FY 18 FY 19 FY 20 Sep 20 Housing Mortgage (LAP) Vehicle Jewel Loans 23
Slide 25: Retail Portfolio Distribution
(Rs. crore) Retail Portfolio Distribution Advances outstanding as at Segment Sep 20 Mar 20 Mar 19 Mar 18 Mar 17 Housing 4,788 4,548 3,619 2,795 2,330 Mortgage (LAP) 1,635 1,683 1,712 1,393 965 Vehicle 979 989 1,044 1,017 921 Jewel Loans 1,221 895 625 578 596 Personal Loans 566 561 424 296 316 Educat
Slide 26: Corporate Book
(Rs. crore) Corporate Book Standard Corporate advances > 1 Bn 4000 8.0 6.2 5.6 5.2 5.1 4.7 4.6 4.6 2500 4.5 5.0 3.8 2992 2540 2733 2554 2244 2322 2211 2304 1891 1000 2.0 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Amount > 100cr % on advance 13% 31% 29% • Corporate exposure are th
Slide 27: Advances – Composition
Advances – Composition Well spread sub-sectorial exposures & diversified industrial exposures Rs.504 Bn Breakup of Industrial exposure (Rs.114 Bn) INFRASTRUCTURE NBFC 3% BILLS TEXTILES 1% 2% OTHER 8% BASIC METAL & ITS Agri EXPOSURES 16% PRODUCTS 2% 14% 5% FOOD PROCESSING MANUFACTU 4% CHEMICALS AND R
Slide 28: Advances – Composition
(Rs. crore) Advances – Composition Particulars Amount % to Total Advance Y-o-Y Growth Sep 20 Sep 19 Sep 20 Sep 19 Amt % Manufacturing 11,445 12,006 23 24 (561) (5) Trading 7,071 7,052 14 14 19 - Jewel loan 11,149 8,130 22 16 3,019 37 Personal loans@ 7,748 7,918 15 16 (170) (2) CRE 3,055 2,838 6 6 21
Slide 29: Manufacturing Sector - Industry Wise
(Rs. crore) Manufacturing Sector - Industry Wise Amount % to Total Advance Y-o-Y Growth Industry Sep 20 Sep 19 Sep 20 Sep 19 Amount % Textile 3,722 3,786 7.4 7.7 (64) (2) Infrastructure 1,851 2,024 3.7 4.1 (173) (9) Basic Metal & Metal Products 709 791 1.4 1.6 (82) (10) Food Processing 386 331 0.8 0
Slide 30: Infrastructure Credit Portfolio
(Rs. crore) Infrastructure Credit Portfolio Amount O/s % to Total Advance Y-o-Y Growth Infrastructure Sep 20 Sep 19 Sep 20 Sep 19 Amt % Power 621 607 1.2 1.2 14 2 Road 369 481 0.7 1.0 (112) (23) Infra Others 861 935 1.7 1.9 (74) (8) TOTAL 1,851 2,024 3.7 4.1 (173) (9) Power Sector Exposure Ownership
Slide 31: Portfolio performance
Portfolio performance 184 161 168 SMA-1 SMA-2 SMA 30+ Portfolio performance 120 Balance in INR , Base Mar.31,2017=100 100 117 106 107 110 98 94 88 SMA 1 0.55 % 100 100 75 76 59 63 56 SMA 2 0.64 % 84 81 82 82 63 45 43 SMA 1 (Ex-Gold) 0.44 % 65 44 46 45 42 43 60 51 23 26 SMA 2 (Ex-Gold) 0.61 % 43 40 3
Slide 32: Security Coverage
(Rs. crore) Security Coverage Nature of security 30.09.20 Exposure backed by - Letter of Credit 178 Govt. Guarantee# 1,516 Liquid Assets ^ 11,750 Vehicles 2,588 Commodities 161 Total (1) 16,193 Exposure secured by Immovable Property (% Coverage) > 100% 22,780 90% to <100% 8,028 75% to <90% 1,366 50%
Slide 33: Sector-wise Standard Restructured Advances
(Rs. crore) Sector-wise Standard Restructured Advances % to Total Restructured Advances Sep-19 Amount S. N. SECTOR Sep 20 Sep 19 19.49 Textiles 1 Textile 65.44 32.04 Chemical & its products 2 Cement & Cement Products 28.20 0.66 Food Processing 44.08 4.84 Wood & its Products 3 Food & Food Processing
Slide 34: Stressed Book Analysis
(Rs. crore) Stressed Book Analysis Movement of Std. Restructured Advances 3000 5.00 Apr 20 to Sep Apr 19 to Sep 2728 2673 2548 20 19 Particulars 2325 A/c’s Amt. A/c’s Amt. 446 524 2090 546 A. Position at the beginning of 73 193.29 34 72.09 the period 543 2000 3.72 3.67 3.73 B. Addition during the pe
Slide 35: NPAs & Provisions
(Rs. crore) NPAs & Provisions 4391 4424 4213 4056 3998 8.89 8.92 8.68 8.34 7.93 2427 2351 2421 2521 2118 2223 1946 1809 1585 1428 4.50 4.13 3.92 2.99 3.44 Sep 19 Dec 19 Mar 20 June 20 Sep 20 Sep 19 Dec 19 Mar 20 June 20 Sep 20 Gross NPA Net NPA NPA Provision Net NPA% Gross NPA% Provision for Q2 Sep
Slide 36: Movement of NPA
(Rs. crore) Movement of NPA Particulars Apr 20 - Sep 20 Apr 19 - Sep 19 Gross NPAs Opening Balance 4,213 4,450 Additions during the period 48 891 Reductions during the period 262 949 Closing Balance 3,998 4,391 Net NPAs Opening Balance 1,809 2,420 Additions during the period* (319) 126 Reductions/wr
Slide 37: Provisions and Contingencies
(Rs. crore) Provisions and Contingencies Quarter Half year Provision for Sep 20 Sep 19 Sep 20 Sep 19 NPA 101 335 329 653 Standard Assets 6 11 8 9 Restructured Advances - 2 - 5 Others (incl. NPI) (9) 4 11 17 Investment Depreciation 87 13 102 11 Covid -19 Relief Package 100 - 173 - Total Provisions (e
Slide 38: 3. New Initiatives & other parameters
Performance Highlights Portfolio Performance 3.New Initiatives & other parameters 37
Slide 39: Digital Banking - DLite
Digital Banking - DLite Merchant Lobby Video KYC Application & Integration Accounts DLite Integration ( Cabs/Flights/hotels/Bus) Registrations 12+ lakh users Opened 1.86 lakh Recent launches Avg Daily Txns ~79,000 RD/TD Opening, Pay in & Nominee Registration & Redemption in Mobile Maintenance Bankin
Slide 40: Retail Liability Franchise: Granular & Sticky
Retail Liability Franchise : Granular & Sticky 23% Term deposits are Term Deposits 11% primarily retail 66% Demand Deposits deposits Savings Deposits 95% of term deposits are < Rs.5 Cr Low concentration of Deposits Low dependence on wholesale deposits 5% 9% 7% < Rs.15 Lakhs 6% 6% 6% 6% Rs.15 Lak
Slide 41: Investment Portfolio
Investment Portfolio Investments (Rs. crore) Portfolio wise Investment 18670 18830 30.43% 16073 69.57% HTM AFS Sep 19 Mar 20 Sep 20 Duration Investment Portfolio AFS* HFT HTM* 5.88% 0.69% SLR 1.55 - 4.03 Debentures/CD/ MF/CP Yield on Investment Shares 6.85% 6.63% 93.43% 5.43% Debentures/CD/MF/CP inc
Slide 42: KVB – a unique franchise!
KVB – a unique franchise! Unmatched presence in India’s fast growing hinterland 1 6 1 12 Category No. of Branches 1 6 6 Metro 201 1 Urban 155 15 4 1 14 1 Semi Urban 297 5 25 Rural 127 59 Total 780 1 51 121 7 421 21 Category 30.09.20 31.03.20 31.03.19 16% Metro 26% Customer Branches 780 779 778 Urban
Slide 43: Leveraging Technology - Delivery Channels (qtr)
Leveraging Technology - Delivery Channels (qtr) Mobile transactions value (in crore) Active internet users (in 000) 12111 949 932 936 925 911 8881 7695 7415 7381 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Mobile transactions volume (in 000) Internet transactions 0.4 40000
Slide 44: Leveraging Technology - Delivery Channels
Leveraging Technology - Delivery Channels Branch operations vs digital platform (Qtr.) Cash Deposit Machines 11 10 10 10 Cash Deposit Machines (Nos.) 565 568 533 534 444 2 2 2 1 1 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Transaction through branches (volume in Crs) Transaction through digital platform (vo
Slide 45: Human Resources
Human Resources Young workforce….. … number of employees… … lower attrition … 35 3.9% 3.8% 34 34 7956 7935 2.7% 7663 7762 7400 2.2% 33 33 0.8% FY 17 FY 18 FY 19 FY 20 Sep 20 FY 17 FY 18 FY 19 FY 20 Sep 20 FY 17 FY 18 FY 19 FY 20 Sep 20 … leading to improved productivity 14.42 14.37 8.2 134 142 138 1
Slide 46: A Decade of Progress
(Rs. crore) A Decade of Progress 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 6,21
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Karur Vysya Bank — Q2 FY2020-21 Earnings Presentation on 6ix