Kotak Mahindra Bank Limited · NSE:KOTAKBANK

Kotak Mahindra Bank — Q2 FY2021 Earnings Presentation

26 slides from Kotak Mahindra Bank's earnings presentation, Oct 26, 2020

  1. Slide 1: Earnings Update Q2FY21

    EARNINGS UPDATE Q2FY21 Presentation on financial results for the period ended 30th September, 2020 26th October, 2020

  2. Slide 2: Standalone highlights Q2FY21

    Standalone highlights Q2FY21 PPOP PAT NII Loans ` 3,913 cr [` 3,350 cr] ` 3,297 cr ` 2,184 cr NIM* ` 204,845 cr [` 2,509 cr] [` 1,724 cr] 4.52% [` 213,299 cr] [4.61%] Net NPA CAR# Total CASA 23.4% Assets [18.2%] 0.64% Tier I# ` 374,765 cr 57.1% [0.85%] 22.8% [` 316,890 cr] [17.6%] [53.6%] Figures in

  3. Slide 3: Profit and Loss Account

    Profit and Loss Account ` cr Q2FY21 Q2FY20 Q1FY21 FY20 Highlights Net Interest Income 3,913 3,350 3,724 13,500  Others include treasury (incl Other Income 1,452 1,224 773 5,372 equity), ARD buyout Fee and Services 1,058 1,162 776 4,731 Others 394 62 (3) 641  Provision (incl. on interest accrued) m

  4. Slide 4: Fees & Services

    Fees & Services ` cr Q2FY21 Q2FY20 Q1FY21 FY20 Distribution & Syndication Income 172 115 144 590 General Banking Fees 854 1,017 607 4,021 Others 32 30 25 120 Fees and Services 1,058 1,162 776 4,731 4

  5. Slide 5: Asset Quality

    Asset Quality Asset Quality ` cr 30-Sep-20 30-Sep-19 30-Jun-20 Non specific provisions GNPA 5,336 5,034 5,619 towards advances (standard NNPA 1,304 1,811 1,777 SMA2^ outstanding - ` 133 & COVID provisions) at 177% GNPA (%) 2.55% 2.32% 2.70% of the NNPA of the Bank cr, 0.06% of net advances NNPA (%)

  6. Slide 6: Balance Sheet

    Balance Sheet ` cr 30-Sep-20 30-Sep-19 30-Jun-20 Capital & Reserves and Surplus 59,923 45,912 57,709 Deposits 261,564 233,071 261,524 CA 40,454 38,200 38,594 SA 108,990 86,712 109,754 Term Deposits 112,120 108,159 113,176 Of which: TD Sweep 20,184 16,548 18,884 Borrowings 41,789 26,665 47,920 Other

  7. Slide 7: Summary of Q2

    Summary of Q2  India’s COVID situation improving; but need for continued alertness  Health and safety top priorities for the Bank Health &  Work from home continues to the extent possible Safety  Safe and efficient digital channels – Net Banking, Mobile Banking, call centers, Keya chat bot and W

  8. Slide 8: Digital Highlights

    Digital Highlights Enabling Assets Scaling Digital Banking Capabilities E-sign – Signing agreement and document remotely via Mobile Banking - Continues to be 5th* in industry with 5.1% Aadhaar share of transaction value; Transaction volume up 81% & value up 56% annually Paperless sanction - Home Loa

  9. Slide 9: Digital Channels

    Digital Channels Mobile Banking has 180+ features and Net Banking 250+ across product categories Banking & Servicing Loans & Cards  Innovative products like Consumer finance and  Self-service on MB, NB, Chatbot Payday loan  Help center in Hindi  Image credit card launched  97% RDs opened throug

  10. Slide 10: Digital Engagements

    Digital Engagements 811 – Share in Digital Engagement Digital payments MB 30 day unique Logins 55% Key Highlights Key Trends UPI transactions 56%  73% growth in Digital Payments volumes in Sep’20 over Sep’19  ~2.3X growth in Consumer  1.9X growth of consumer UPI P2M checkouts in Secured Credit Ca

  11. Slide 11: Deposit

    Deposit CASA (` cr) Cost of SA CASA % 57.1% 53.6% 56.7% 56.2% 3.87% [5.37%] Wholesale floating TDs below rate SA ` 1 cr ` 68,713 cr Fixed rate SA [` 62,430 cr] TD Sweep, as % of total deposits 7.7% [7.1%] CASA & TDs below ` 5 CA cr, as % of total deposits CDs at ` 2,029 cr 91% [86%] YoY % 32% Lower

  12. Slide 12: Customer Assets

    Customer Assets 30-Sep-20 (` 218,790 cr) Customer Assets 30-Sep- 30-Sep- 30-Jun- ` cr 20 19 20 Home Loans & LAP 47,732 45,816 47,168 Consumer Bank WC 19,562 19,571 18,240 (Secured) PL, BL and Consumer 8,177 9,667 9,088 Durables Credit Cards 4,378 4,624 4,343 CV/CE 18,363 19,688 18,442 Agriculture Di

  13. Slide 13: Specific Sectors Exposure

    Specific Sectors Exposure Specific Sectors as per Basel III Outstanding* (` cr) 30-Sep-20 % 30-Sep-19 % 30-Jun-20 % NBFCs 12,248 4.5% 10,964 4.0% 12,304 4.5% :Of which HFC 5,025 1.8% 3,563 1.3% 4,921 1.8% CRE (excl LRD) 5,661 2.1% 5,609 2.0% 6,106 2.2% LRD 4,363 1.6% 4,296 1.6% 4,400 1.6% Total incl

  14. Slide 14: Consolidated Highlights Q2FY21

    Consolidated Highlights Q2FY21 CAR# Customer PAT 24.5% Total Assets Assets [19.1%] ` 2,947 cr Tier I# ` 247,432 cr ` 457,283 cr [` 2,407 cr] 23.9% [` 259,321 cr] [` 400,342 cr] [18.7%] Capital & NIM* Net NPA Book Value Reserves per Eq. share 4.58% ` 79,389 cr 0.70% ` 399 [4.56%] [` 62,563 cr] [0.82%

  15. Slide 15: Consolidated PAT

    Consolidated PAT ` cr Q2FY21 Q2FY20 Q1FY21 FY20 Highlights  Q2FY20 had effect of reduced Kotak Mahindra Bank 2,184 1,724 1,244 5,947 corporate tax rate for H1FY20 Kotak Mahindra Prime 133 172 68 673  At PBT level, growth of 33% YoY Kotak Mahindra Investments 74 67 43 270 Kotak Securities 199 149 1

  16. Slide 16: Entity-wise Capital & Reserves and Surplus

    Entity-wise Capital & Reserves and Surplus ` cr 30-Sep-20 30-Sep-19 30-Jun-20 Kotak Mahindra Bank 59,923 45,912 57,709 Kotak Mahindra Prime 6,289 5,740 6,157 Kotak Mahindra Investments 1,976 1,719 1,902 Kotak Securities 4,897 4,238 4,698 Kotak Mahindra Capital 642 589 628 Kotak Mahindra Life Insuran

  17. Slide 17: Kotak Mahindra Prime

    Kotak Mahindra Prime ` cr Q2FY21 Q2FY20 Q1FY21 FY20 Customer Assets* (` cr) NII 300 305 300 1,229 Other Income 53 64 12 291 NII and Other Income 353 369 312 1,520 Profit Before Tax 179 234 93 923 Profit After Tax 133 172 68 673 NNPA (%) 1.3% 0.6% 1.1% 0.6% CAR (incl unaudited profits) 26.6% (%) ROA

  18. Slide 18: Kotak Mahindra Life Insurance

    Kotak Mahindra Life Insurance ` cr Q2FY21 Q2FY20 Q1FY21 FY20 Gross Written Premium (` cr) Capital 562 562 562 562 2,401 2,190 1,207 10,340 Other Reserves and Surplus 3,124 2,461 2,952 2,791 Total Premium 2,401 2,190 1,207 10,340 Profit After Tax 171 144 161 608 (Shareholders’) Solvency Ratio (x) 3.0

  19. Slide 19: KLI – Update on Digitization

    KLI – Update on Digitization Focus continue on empowering distribution, energizing employees and superior customer experience  Digital onboarding of customers through Genie, continues to remain high at 98%  Empowered advisors using “Boost”, an app for superior engagement and improving Empowering D

  20. Slide 20: Kotak Securities

    Kotak Securities ` cr Q2FY21 Q2FY20 Q1FY21 FY20 Market ADV (` ‘000 cr) Total Income 516 407 459 1,690 2,044 1,455 1,453 1,443 Profit Before Tax 266 181 225 738 Profit After Tax 199 149 169 550 Market Share* (%) 1.5 *excluding BSE Derivative segment Market Share in Cash Segment H1FY21: 7.7% (H1FY20:

  21. Slide 21: Kotak Mahindra Capital Company

    Kotak Mahindra Capital Company Equity ICICI Bank Limited UTI Asset Management Co. Limited # Qualified Institutional Placement # Initial Public Offer (IPO) ` 15,000 cr ` 2,160 cr PI Industries Limited Yes Bank Limited # Qualified Institutional Placement # Further Public Offer (FPO) ` 2,000 cr ` 15,00

  22. Slide 22: Kotak Mahindra AMC & Trustee Co.

    Kotak Mahindra AMC & Trustee Co. Average Assets Under Management (` cr) - Overall ` cr Q2FY21 Q2FY20 Q1FY21 FY20 Profit Before Tax 113 104 95 454 Profit After Tax 84 85 71 337 Highlights  Overall Market share on AAUM rose to 6.9% in Q2FY21 Average Assets Under Management (` cr) - Equity (Q2FY20: 6.

  23. Slide 23: Assets Under Management and Relationship Value

    Assets Under Management and Relationship Value 30th September, 2020 30th September, 2019 (Total: ` 271,769 cr) (Total: ` 242,023 cr) Relationship Value of Wealth + Priority + Investment Advisory as on 30th Sep, 2020 ~` 300,000 cr (PY: ~` 295,000 cr) 23

  24. Slide 24: Key Awards

    Key Awards Best Productivity, Efficiency & Automation Best Private Bank in Best Integrated Media Best Cash Management Initiative, Application or India Campaign – Bank in India Programme Global Private Banking Product/Services The Asian Banker The Asian Banker Awards 2020 Indian Digital Marketing Tra

  25. Slide 25: Geographical presence

    Geographical presence 3 Branches 1,602* [No./%] North 11 Branches distributed 485 / 30% 90 10 across various geographies 71 102 West East 495 / 31% 122 / 8% 1 86 66 5 22 1 South 500 / 31% 1 155 46 9 22 42 Branch Classification 2 19 331 87 7 109 180 90 34 No. of ATMs 2,550 25 * Does not include branc

  26. Slide 26: 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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