Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Shareholder Meeting (August 2020)
28 slides from Kotak Mahindra Bank's shareholder meeting presentation, Aug 18, 2020
Slide 1: Kotak Mahindra Bank AGM submission letter
kotak Kotak Mahindra Bank 18th August 2020 The Manager The Manager Corporate Relationship, National Stock Exchange of India Ltd. BSE Limited, Exchange Plaza, 1st Floor, New Trading Ring, 5th Floor, Rotunda Buliding, Plot No.C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, Dalal Street,
Slide 2: Chairman's speech by Prakash Apte
By Prakash Apte Ladies and gentlemen, During last year, the global geopolitical and economic landscape faced various challenges, including a global trade slowdown led by a deterioration in US-China trade relations & Brexit finally culminating in an escalation of the COVID-19 pandemic in the last qua
Slide 3: The COVID-19 challenge this year
Euromoney Awards for Excellence 2018 and as “Best Domestic Bank, India” at the Asiamoney Best Bank Awards 2019. Apart from this, as in previous years, our Bank as well as other companies in the group, have won a number of significant awards for excellence in Products & Services and Information Techn
Slide 4: Chairman's speech continued: QIP and cost measures
physical to digital, capital preservation, liquidity management, cost rationalization and strengthening of collection infrastructure. In May 2020, your Bank successfully completed a Qualified Institutional Placement (QIP) of equity shares, being among the first entities in India to raise capital dur
Slide 5: Persevere. Pioneer. Prosper.
e kotak Persevere. Pioneer. Prosper. 1
Slide 6: Welcome to the Never Normal world
Welcome to the Never Normal world Working from home and social distancing: a new way of life COVID changes New balance between the physical and digital worlds every part of our lives Short-term uncertainty around job security, salary levels, sustainability of certain businesses and industries
Slide 7: Community support initiatives
Community support initiatives Since March 2020, Kotak has donated to the PM Cares Fund and the Maharashtra CM Relief – COVID-19 Fund Programme: Protecting the Programme: Food, Dry-Ration ` Kit, Programme: Campaign Gratitude Protector Health, Hygiene, Sanitation • The Bank matches funds raised by • P
Slide 8: Business initiatives
Business initiatives Priorities at Kotak have been employee safety and continuity of customer service Branches and large offices operating, following all safety protocols Business Employees encouraged to work from home continuity Uninterrupted service and customer support via digital channel
Slide 9: Business impact
Business impact Deposits business strong, despite savings interest rate cuts New loan origination and collections impacted by slowdown It could also result in a rise in credit costs Impact on Tightened credit policies, and actively monitoring the loan portfolio business Leveraging tele-cal
Slide 10: Our strategy (1/2)
Our strategy (1/2) ∞ To be amongst the most trusted financial services conglomerates in India Enhance customer ∞ Enhance customer experience backed by a wide spectrum of products experience and ∞ Cost efficient, convenient delivery channels including digital and technological initiatives trust ∞ Str
Slide 11: Our strategy (2/2)
Our strategy (2/2) ∞ Expand retail banking business by growing distribution network, optimizing digital channels and Continuously offering differentiated products expand access to low cost ∞ Increase retail deposit base and current deposits liabilities ∞ Expand current deposits by providing lending
Slide 12: Integrated and Diversified Financial Services
Integrated and Diversified Financial Services Kotak Mahindra Bank Bank & Parent Company Stock & Commodity Finance for infra Car Finance & Investments & Investment Alternate Assets Broking, projects other lending Lending Banking Distribution ∞ Kotak Mahindra ∞ Kotak Mahindra ∞ Kotak Investment ∞ Kota
Slide 13: Strong balance sheet
Strong balance sheet QIP in May 2020 raised ` 7,442 crore Other key balance sheet ratios Bank standalone, as on 31st March 2020 The additional capital will support the bank in dealing with Gross NPA (% of gross contingencies or financing business opportunities 2.25% advances) Mar-20 Jun-20 0.71% Net
Slide 14: Low cost, granular, stable deposit franchise
Low cost, granular, stable deposit franchise Bank standalone deposits metrics Mar-19 Mar-20 Jun-20 Total deposits (` cr.) 225,880 262,821 261,524 SA deposits (` cr.) 79,685 104,609 109,754 TDs below `1 cr. (` cr.) 55,279 63,549 67,643 CASA ratio 52.5% 56.2% 56.7% CASA & TDs below `5 cr 81% 86% 90% a
Slide 15: Cautious approach to lending
Cautious approach to lending Bank standalone advances (` cr.) The Bank slowed down lending even pre-COVID 219,748 205,695 203,998 Bank advances grew by 7% YoY in Mar-20 169,718 Looking at lending through three filters: 136,082 118,665 1 Sectors that we are comfortable with 2 Cautious about compani
Slide 16: Focus on digital and technology
Focus on digital and technology New customer acquisition continued even Kotak 811 through the lockdown During Q1FY21, ~97% of RDs, ~87% of FDs sourced digitally Digital During Q1FY21, mobile banking growth platforms volume grew by 61% YoY ~0.95 mn service requests through Keya for the month
Slide 17: Focus on digital and technology
Focus on digital and technology Kotak Life Insurance Kotak Securities Individual Policies sourced in Q4FY20 76% 119% 94% through Genie growth YoY* growth YoY* in Online in Mobile Total ADV Total ADV Business (sales in Q4FY20) through 96% Genie for BANCA channel *Q4FY20 v/s Q4FY19 Kotak General Insur
Slide 18: Strong pool of leadership to support future growth
Strong pool of leadership to support future growth Dipak Gupta Gaurang Shah KVS Manian Shanti Narayan SA D Kannan Jt. MD WTD WTD Ekambaram 28 years 23 years 25 years 29 years 28 years 29 years Compliance, IT, HR, Credit, ARD, Asset Corporate, Treasury, Car Marketing, Customer Mgmt., Alternate Instit
Slide 19: Pan-India bank distribution (Mar-20)
Pan-India bank distribution (Mar-20) Branches 1,600* [No. / %] No of ATMs 3 North 485 / 30% 2,519 1 1 90 1 0 West East 71 102 493 / 31% 122 / 8% 1 86 66 5 1 2 2 South 500 / 31% 1 155 46 9 42 22 19 Branch Classification 2 329 87 7 109 180 90 34 * Does not include branches in DIFC, Dubai & GIFT city,
Slide 20: Wide distribution of group businesses
Wide distribution of group businesses Bank Branches 3,693 Car Finance Life Insurance 2,935 18 329 Securities * 8 86 Mutual Fund 79 General Insurance 1,315 BSS Microfinance 1,209 * branches, franchises and referral coordinators 245 100 227 79 1,600 1,333 Mar-16 Mar-20 16
Slide 21: Financial Highlights
Financial Highlights
Slide 22: Standalone highlights
Standalone highlights FY19 FY20 Q1FY21 Pre-provision operating profit (` cr.) 8,348 10,021 2,624 Profit after tax (` cr.) 4,865 5,947 1,244 Loans (` cr.) 205,695 219,748 203,998 CASA ratio 52.5% 56.2% 56.7% Net interest margin * 4.31% 4.62% 4.40% Net NPA 0.75% 0.71% 0.87% CAR # 17.5% 17.9% 21.7% Tie
Slide 23: Consolidated highlights
Consolidated highlights FY19 FY20 Q1FY21 Profit after tax (` cr.) 7,204 8,593 1,853 Total Assets (` cr.) 395,171 443,173 458,618 NIM * 4.24% 4.59% 4.44% Net NPA 0.70% 0.70% 0.89% Capital and Reserves (` cr.) 58,280 67,134 76,443 CAR # 17.9% 19.8% 23.0% Tier I # 17.4% 19.2% 22.5% Book value per equit
Slide 24: Consolidated PAT
Consolidated PAT ` cr FY19 FY20 Q1FY21 Kotak Mahindra Bank 4,865 5,947 1,244 Kotak Mahindra Prime 599 673 68 Kotak Mahindra Investments 207 270 43 Kotak Securities 452 550 169 Kotak Mahindra Capital 63 79 6 Kotak Life Insurance 507 608 161 Kotak AMC and TC 255 337 71 International subsidiaries 148 1
Slide 25: Consolidated Capital & Reserves and Surplus
Consolidated Capital & Reserves and Surplus ` cr Mar-2019 Mar-2020 Jun-2020 Kotak Mahindra Bank 42,898 49,015 57,709 Kotak Mahindra Prime 5,416 6,088 6,157 Kotak Mahindra Investments 1,590 1,860 1,902 Kotak Securities 3,979 4,529 4,698 Kotak Mahindra Capital Company 572 622 628 Kotak Mahindra Life I
Slide 26: Assets Under Management and Relationship Value
Assets Under Management and Relationship Value AUM – 31st March 2020 (` cr.) AUM – 30th June 2020 (` cr.) 2,589 2,849 (Total: ` 225,878 cr.) (Total: ` 259,781 cr.) 15,176 15,368 Domestic MF Debt 32,080 7% 34,223 6% Domestic MF Equity 14% 13% 94,436 109,443 1% 42% Offshore Funds 1% 42% 24,627 10% 10%
Slide 27: Kotak uniqueness and strengths
Kotak uniqueness and strengths Integrated financial Ability to identify and services conglomerate capitalize on with a diversified opportunities business model Healthy asset quality & prudent risk Strong brand and management leadership in various capabilities businesses Strong governance Digital & t
Slide 28: Thank you
Thank you
Kotak Mahindra Bank — Shareholder Meeting (August 2020) on 6ix