Karur Vysya Bank Ltd. · NSE:KARURVYSYA
Karur Vysya Bank — Q4 FY2021-22 Earnings Presentation
43 slides from Karur Vysya Bank's earnings presentation, May 20, 2022
Slide 1: Exchange filing cover letter for investor presentation
IRC: F48:70: 196:2022 20.05.2022 The Manager, The Manager, National Stock Exchange of India Ltd, Bombay Stock Exchange Ltd, Exchange Plaza, 5th Floor, Phiroze Jeejeebhoy Towers, Plot No. C/ 1, 'G' Block, Dalai Street, Bandra- Kurla Complex, Mumbai -- 40000 1 sandra (East), Mumbai - 400051 Scrip Code
Slide 2: Investor Presentation 31.03.2022
31.03.2022 Investor Presentation
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: Growing stronger & bigger everyday..
Growing stronger & bigger everyday.. 3 www.kvb.co.in
Slide 5: Awards and Accolades
Awards and Accolades Excellence in supporting Best IT Risk and cyber Education and Skill - Special Best Use of AI/ML & Data Best Cloud Adoption by Security Risk Initiatives Recognition by ASSOCHAM Analytics by IBA Banking IBA Banking Technology Runner-up by IBA Banking CSR & Sustainability Awards, T
Slide 6: Highlights Q4 - FY 2021-22
Highlights Q4 - FY 2021-22
Slide 7: Strong presence in India's fast growing hinterland
Strong presence in India’s fast growing hinterland Category 31.03.22 31.03.21 31.03.20 Branches 789 780 779 ATM’s + Cash Recyclers 2,223 2,236 2,224 1 6 1 12 No. of Branches 6 Category BBU* CBU* Other offices^ Metro 203 10 9 8 1 6 1 Urban 156 4 - - 15 4 1 14 Semi Urban 302 2 - - 1 Rural 128 - - - 5
Slide 8: Key Highlights for the Quarter
Key Highlights for the Quarter Business growth - 3% Cost to Income Ratio 51.80% Operating Profit Rs 441 cr RoA @ 1.06% up by 118% CRAR 19.46% Tier I at 17.49% Net Profit Rs 213 cr PCR (RBI) 80.27% up by 105% PCR (Market) 63.25% Net Interest Margin at Business per Employee 3.79% Rs. 17 crore www.kvb.
Slide 9: Key Highlights for the Year
Key Highlights for the Year Gross Advances Rs NIM 3.69% 57,550 cr up by 9% Deposits Rs. 68,676 cr up Cost to Income ratio - by 9% 53.20% CASA @ 35% CRAR 19.46% Tier I at 17.49% Operating Profit Rs. 1,630 cr ROA - 0.86% up by 26% Net Profit Rs. 673 cr GNPA 5.96% up 87% NNPA 2.28% www.kvb.co.in
Slide 10: Key Performance Indicators – KPIs (quarter)
(Rs. crore) Key Performance Indicators – KPIs (quarter) Growth Particulars Mar 22 Mar 21 Dec 21 Sep 21 Jun 21 Particulars %/bps Net interest income 710 613 16 686 680 638 Operating profit 441 202 118 401 375 412 Net profit 213 104 105 185 165 109 Advances (Gross) 57,550 52,820 9 55,793 53,850 52,315
Slide 11: Profit & Loss Statement
(Rs. crore) Profit & Loss Statement Quarter 12 months Particulars Growth % Growth % Mar 22 Mar 21 Mar 22 Mar 21 (YoY) (YoY) Net Interest Income 710 613 16 2,715 2,360 15 Other Income 205 169 21 769 919 (16) - Fee income 182 157 16 634 548 16 - Others 23 12 92 135 371 (64) Total Income 915 782 17 3,4
Slide 12: Key Ratios
Key Ratios Quarter 12 months Particulars Mar 22 Mar 21 Mar 22 Mar 21 Cost of Deposits (%) 4.12 4.63 4.30 4.96 Yield on Advances (%) 8.28 8.52 8.47 8.93 Cost of Funds (%) 4.14 4.65 4.32 4.99 Yield on Funds (%) 7.27 7.42 7.34 7.67 Net Interest Margin (%) 3.79 3.46 3.69 3.40 Spread (%) 3.13 2.77 3.02 2
Slide 13: Balance Sheet
(Rs. crore) Balance Sheet Particulars Mar 22 Mar 21 YoY (%) Capital & Liabilities Capital 160 160 - Reserves and Surplus 7,436 6,800 9 Deposits 68,676 63,278 9 Borrowings 1,339 2,528 (47) Other Liabilities and Provisions 2,433 1,857 31 Total 80,044 74,623 7 Assets Cash and Balances with RBI 3,594 3,
Slide 14: Capital to Risk Weighted Assets Ratio – Basel III
(Rs. crore) Capital to Risk Weighted Assets Ratio – Basel III Particulars Mar 22 Mar 21 Dec 21 CRAR % 19.46 18.98 18.79 Total capital 8,108 7,515 7,531 Tier I capital 7,288 6,711 6,717 Tier II capital 820 803 814 RWA 41,667 39,598 40,074 Credit risk 33,631 32,003 32,064 Operational risk 6,071 6,005
Slide 15: Driving growth across verticals
Driving growth across verticals
Slide 16: Total Business
(Rs. crore) Total Business Parameter Mar 22 Mar 21 YoY % Dec 21 Deposits 68,676 63,278 9 66,871 Gross Advances 60,510 54,976 10 58,304 Advances (after Tech. W/off) 57,550 52,820 9 55,793 Total Business 1,26,226 1,16,098 9 1,22,664 Deposits Portfolio Parameter Mar 22 Mar 21 YoY % Dec 21 Demand Deposi
Slide 17: Growing our books responsibly
(Rs. crore) Growing our books responsibly Particulars Mar 22 Mar 21 YoY % Dec 21 Agriculture 13,044 11,531 13 12,468 Retail (Personal Banking) 13,265 12,257 8 12,932 Commercial 18,698 16,687 12 18,039 Corporate 15,316 14,371 7 14,726 Corporate (after Tech. W/off) 12,543 12,345 2 12,354 Gross Advance
Slide 18: Retail Portfolio
(Rs. crore) Retail Portfolio Particulars Mar 22 Mar 21 YoY % Dec 21 Housing loan 5,823 5,343 9 5,673 Jewel loans 1,891 1,763 7 1,914 Mortgage (LAP) loans 1,832 1,691 8 1,747 Vehicle loans 1,085 1,046 4 1,054 Personal loans 409 609 (33) 454 Educational loans 162 178 (9) 164 Others loans 2,063 1,627 2
Slide 19: Driving growth across verticals
(Rs. crore) Driving growth across verticals Ticket size of Commercial Book Gold Loan portfolio (Bank as a whole) 16000 24 25 25 25 25 25 14000 11% 6% 13718 14147 20 13206 13473 12000 12852 15 10000 83% 8000 10 6000 5 4000 0 2000 < 5 crore >= 5 crore < 10 crore >= 10 crore Mar 21 Jun 21 Sep 21 Dec-21
Slide 20: ECLGS Portfolio
(Rs. crore) ECLGS (Emergency Credit Line Guarantee Scheme) Portfolio Vertical wise Vertical Mar 22 Mar 21 Dec 21 Agriculture 4 5 5 Commercial 1,488 1,431 1,477 Corporate 960 721 805 TOTAL 2,452 2,157 2,287 Scheme wise Particulars O/s as on 31.03.2022 NPA ECLGS 1.0 1,969 57 ECLGS 2.0 453 - ECLGS 3.0
Slide 21: Corporate Loan Book
(Rs. crore) Corporate Loan Book Standard Corporate advances > 100 crore 4200 8.0 Improving Risk Profile 12% 10% 8% 8% 7% 5.5 5.5 5.3 43% 37% 34% 4.6 4.7 43% 43% 2600 5.0 27% 27% 26% 27% 28% 21% 28% 32% 19% 20% 2927 2884 2453 2622 3,041 1000 2.0 Mar 21 Jun 21 Sep 21 Dec 21 Mar 22 Mar-21 Jun-21 Sep-21
Slide 22: Sectoral composition
Sectoral composition Rs.57,550 crore Breakup of Industrial exposure (Rs. 14,498 crore) OTHERS OTHER EXPOSURES MINING AND 5% QUARRYING INFRASTRUCTURE NBFC 8% 4% 17% 4% GEMS & JEWELLERY BILLS 6% 2% CEMENT Agri MANUFACTURING CONSTRUCTION SECTOR 1% 2% 4% 25% CRE ALL ENGINEERING 6% 4% WOOD AND ITS PRODUC
Slide 23: Secured Exposure
(Rs. crore) Secured Exposure Nature of security 31.03.2022 Exposure backed by - Letter of Credit 358 Govt. Guarantee (Emergency Credit Line Guarantee Scheme- ECLGS) 2,452 Liquid Assets ^ 15,009 Vehicles 2,538 Commodities 141 Total (1) 20,498 Exposure secured by Immovable Property ( Coverage) > 100 2
Slide 24: Portfolio performance
Portfolio performance 117 Portfolio performance (Rs. crore) 100 107 110 Balance in INR , Base Mar.31,2017=100 94 Particulars Mar 22 Mar 21 SMA 30+ 75 76 63 SMA 1 305 558 44 44 46 45 42 43 34 26 SMA 2 165 303 23 19 23 12 16 SMA 30+ 470 861 SMA 30+ - 0.82% SMA 1 - 0.53% 100 114 Portfolio Performance S
Slide 25: Liability Franchise : Predominantly Retail
Liability Franchise : Predominantly Retail 25% Term Deposits 10% • Term deposits are 65% Demand Deposits primarily retail deposits Savings Deposits 92% of term deposits are < Rs.5 Cr Concentration of Top 20 depositors Low dependence on wholesale deposits 8% 12% 6% 6% 6% 6% 5% 21% 59% FY 18 FY 19 FY
Slide 26: Investment Portfolio
Investment Portfolio Gross Investments (Rs. crore) Investment Category 17755 16.46% 16073 16465 83.54% Mar 20 Mar 21 Mar 22 HTM AFS Investment Composition Duration 3.04% 9.24% AFS HFT HTM Total SLR 1.78 - 3.28 3.07 1.10% Shares Yield on Investments SR 6.63% Debentures/CD/MF/CP 5.30% 5.41% 86.62% Mar
Slide 27: Disciplined approach to reduce stressed assets
Disciplined approach to reduce stressed assets
Slide 28: Movement of NPA for the quarter
(Rs. crore) Movement of NPA for the quarter Particulars Jan 22 – Mar 22 Jan 21 – Mar 21 Gross NPAs Opening Balance 3,888 3,843 Additions during the period 300 919 Reductions during the period 757 619 -Of which Recoveries/Upgradation 307 159 Tech Write offs 450 460 Closing Balance 3,431 4,143 Net NPA
Slide 29: Movement of NPA for the year
(Rs. crore) Movement of NPA for the year Particulars Apr 21 – Mar 22 Apr 20 – Mar 21 Gross NPAs Opening Balance 4,143 4,213 Additions during the period 843 959 Reductions during the period 1,555 1029 - Of which Recoveries/Upgradation 723 410 Tech Write offs 832 619 Closing Balance 3,431 4,143 Net NP
Slide 30: Vertical wise NPA and Collection efficiency
(Rs. crore) Vertical wise NPA Advances O/s. NPA as on NPA Additions NPA Reduction NPA as on Provisions VERTICAL Mar 22 Dec 21 Q4 Q4 Mar 22 Mar 22 Agriculture 13,044 248 6 15 239 193 Retail (Personal Banking) 13,265 408 31 57 382 245 Commercial 18,698 1,394 114 181 1,327 745 Corporate 12,543 1,838 14
Slide 31: NPAs & Provisions
(Rs. crore) NPAs & Provisions 8.79 8.68 7.85 4450 4213 4143 3431 6.56 3016 5.96 2420 2351 2366 4.98 1863 1961 2132 4.46 1809 1719 3.92 1261 3.41 1091 2.28 Mar-18 Mar-19 `Mar 20 Mar-21 Mar-22 Mar-18 Mar-19 `Mar 20 Mar 21 Mar 22 Gross NPA Net NPA NPA Provision Net NPA% Gross NPA% 80.27% 4.00% 0.8 68.9
Slide 32: Provisions and Contingencies
(Rs. crore) Provisions and Contingencies Quarter 12 months Provision for Mar 22 Mar 21 Mar 22 Mar 21 NPA 143 292 635 634 Standard Assets 6 1 17 6 Restructured Advances (7) 11 67 72 Other credit related items (6) 59 - 59 Covid-19 package - (301) - (47) Sub-total – Credit Provisions 136 62 719 724 Oth
Slide 33: Restructured Accounts
(Rs. crore) Restructured Accounts Mar 22 Dec 21 Mar 21 Particulars Standard NPA Standard NPA Standard NPA Resolution Framework - 2.0 774 35 817 19 - - COVID 19 - Resolution Framework 426 39 432 43 554 3 MSME 244 194 303 156 387 93 CDR - 3 - 3 - 3 Others* 196 49 64 120 16 293 Total 1,640 320 1,616 34
Slide 34: Movement of Standard Restructured Advances for the Quarter
(Rs. crore) Movement of Standard Restructured Advances for the Quarter Jan 22 to Mar 22 Jan 21 to Mar 21 Particulars A/c’s Amt. A/c’s Amt. A. Position at the beginning of the period 3,329 1,616 1,549 680 B. Addition during the period 1 134 130 327 C. Additions in existing A/c’s - 23 - 20 D. Addition
Slide 35: Movement of Standard Restructured Advances for the Year
(Rs. crore) Movement of Standard Restructured Advances for the Year Apr 21 to Mar 22 Apr 20 to Mar 21 Particulars A/c’s Amt. A/c’s Amt. A. Position at the beginning of the period 1,628 957 73 193 B. Addition during the period 1,994 891 1,576 798 C. Additions in existing A/c’s - 67 - 27 D. Addition t
Slide 36: Sector-wise Standard Restructured Advances
(Rs. crore) Sector-wise Standard Restructured Advances S. Amount Stressed Book Analysis SECTOR N. Mar 22 Dec 21 3039 3200 3364 3170 3050 5.00 3500 4.43 1 Housing Loan 346 356 4.07 4.31 4.08 247 3.81 2 Real Estate 391 262 3000 363 327 198 149 3 Trade 143 185 2500 4 Textile 93 107 1538 1356 1261 5 Per
Slide 37: Building a strong digital ecosystem
Building a strong digital ecosystem
Slide 38: Digital Banking – DLite
Digital Banking – DLite Customized OTP for all Push Notifications Modules In DLite Registered Accounts users Opened 17.60L 2.95L Recent launches Avg Daily Txns 80 K Feedback & Grievances Re-KYC Online UPI Transactions (in lakhs) Launching soon 1361 1232 51% 94% 1043 3.4 MILLION 759 DLITE APP Share o
Slide 39: Digital Lending
Digital Lending Backend checks Risk Analysis Loan Requirement CDD Risk Paperless process Faster TAT via digital integrations On- TAT Boarding Digital Lending Feet on Street, Sourcing Disbursement e2e digital Partnerships & documentation & Alliances disbursement Underwriting www.kvb.co.in
Slide 40: Digital Partnerships
DIGITAL PARTNERSHIPS ASSETS LIABILITIES
Slide 41: Dynamic workforce
Dynamic workforce Leading to Improved Productivity 9.2 17 14 15 13 14 4.4 4.6 2.8 3.0 FY 18 FY 19 FY 20 FY 21 FY 22 FY 18 FY 19 FY 20 FY 21 FY 22 Business per employee (Rs. Crore) Profit per employee (Rs. Lakhs) 149 160 142 138 130 FY 18 FY 19 FY 20 FY 21 FY 22 Business per branch (Rs. Crore) 40 www
Slide 42: Sustained Decade of Growth
(Rs. crore) Sustained Decade of 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 4,246 4,573 4,845 6,211 6,
Slide 43: Thank You
Thank You
Karur Vysya Bank — Q4 FY2021-22 Earnings Presentation on 6ix