Karur Vysya Bank Ltd. · NSE:KARURVYSYA
Karur Vysya Bank — Q3 FY2024 Earnings Presentation
42 slides from Karur Vysya Bank's earnings presentation, Jan 22, 2024
Slide 1: Regulation 30 intimation to stock exchanges
Classification | REGULATORS IRC:F48:13:38:2024 January 22, 2024 The Manager, The Manager, National Stock Exchange of India Ltd, BSE Limited, Exchange Plaza, 5th Floor, Phiroze Jeejeebhoy Towers, Plot No. C-1, ‘G’ Block, Dalal Street, Bandra- Kurla Complex, Mumbai – 400001. Bandra (East), Mumbai – 40
Slide 2: Investor Presentation Q3 FY 2024
Classification | INTERNAL Investor Presentation Q3 FY 2024
Slide 3: Disclaimer
Classification | INTERNAL 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
Slide 4: Quarter In focus
Classification | INTERNAL Quarter In focus
Slide 5: Strong presence in India's fast growing hinterland
Classification | INTERNAL Strong presence in India’s fast growing hinterland Category 31.12.23 31.03.23 31.03.22 Branches 831 799 789 ATM’s + Cash Recyclers 2,251 2,240 2,223 1 5 1 12 6 No. of Category BBU* CBU* DBU* Other offices^ 6 Branches 1 1 Metro 206 10 9 1 15 15 4 1 14 Urban 163 3 - - - 1 Sem
Slide 6: Key Highlights
Classification | INTERNAL (Rs. crore) Key Highlights Business Advances Deposits CASA 1,58,357 72,692 85,665 15% YoY 3% QoQ 17% YoY 3% QoQ 13% YoY 3% QoQ 5 % YoY 1% QoQ NIM PPOP (crs) Net Profit (crs) ROA 9M - 4.20 Q3 – 4.32 9M – 1,962 Q3 - 676 9M – 1,149 Q3 - 412 9M – 1.58 % Q3 – 1.65% 9 bps YoY 25b
Slide 7: Key Ratios
Classification | INTERNAL Key Ratios Quarter 9 Months Particulars Dec 23 Dec 22 Dec 23 Dec 22 Cost of Deposits (%) 5.25 4.26 5.13 4.15 Yield on Advances (%) 10.16 9.14 9.88 8.72 Cost of Funds (%) 5.30 4.30 5.16 4.19 Yield on Funds (%) 8.85 7.98 8.61 7.63 Net Interest Margin (%) 4.32 4.36 4.20 4.11 S
Slide 8: Key Ratios (Quarter)
Classification | INTERNAL Key Ratios (Quarter) ROA ROE 1.65 17.2 1.50 1.53 1.57 16.04 16.05 16.5 1.32 14.04 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 NIM Cost to Income 4.36 4.37 4.32 50.27 49.14 47.29 4.19 4.07 42.90 42.86 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Dec-22 Mar-23
Slide 9: Profit & Loss Statement
Classification | INTERNAL (Rs. crore) Profit & Loss Statement Quarter 9 Months Particulars Dec 23 Dec 22 Growth % Dec 23 Dec 22 Growth % Net Interest Income 1,001 889 13 2,813 2,456 15 Other Income 358 317 13 1,030 758 36 - Fee income 226 184 23 627 545 15 - Others 132 133 (1) 403 213 89 Total Incom
Slide 10: Balance Sheet
(Rs. crore) Classification | INTERNAL Balance Sheet Particulars Dec 23 Dec 22 YoY (%) Capital & Liabilities Capital 161 160 1 Reserves and Surplus 9,418 8,080 17 Deposits 85,665 75,932 13 Borrowings 2,993 1,473 103 Other Liabilities and Provisions 4,631 3,368 38 Total 1,02,868 89,013 16 Assets Cash
Slide 11: Capital to Risk Weighted Assets Ratio – Basel III
(Rs. crore) Classification | INTERNAL Capital to Risk Weighted Assets Ratio – Basel III Particulars Dec 23 Dec 22 Sep 23 CRAR % 15.39 17.62 16.84 Total capital 9,164 8,147 9,146 Tier I capital 8,257 7,300 8,249 Tier II capital 907 848 897 RWA 59,531 46,243 54,314 Credit risk 50,607 38,123 45,282 Ope
Slide 12: Driving growth across verticals
Classification | INTERNAL Driving growth across verticals
Slide 13: Total Business
(Rs. crore) Classification | INTERNAL Total Business Parameter Dec 23 Dec 22 YoY % Sep 23 QoQ % Mar 23 YTD % Deposits 85,665 75,932 13 83,068 3 76,638 12 Gross Advances 72,692 62,081 17 70,448 3 64,168 13 Total Business 1,58,357 1,38,013 15 1,53,516 3 1,40,806 12 Deposits Portfolio Parameter Dec 23
Slide 14: Growing our books responsibly
Classification | INTERNAL (Rs. crore) Growing our books responsibly Particulars Dec 23 Dec 22 YoY% Sep 23 QoQ% Commercial 24,398 20,299 20 23,510 4 Retail (Personal Banking) 17,090 14,137 21 16,225 5 Agriculture 16,833 14,110 19 16,302 3 Subtotal 58,321 48,546 20 56,037 4 Corporate 14,371 13,535 6 1
Slide 15: Retail Portfolio
(Rs. crore) Classification | INTERNAL Retail Portfolio Particulars Dec 23 Dec 22 YoY % Sep 23 QoQ % Housing loan 7,357 6,464 14 7,254 1 Jewel loans 2,096 1,729 21 2,159 (3) Mortgage (LAP) loans 3,885 3,009 29 3,632 7 Vehicle loans 1,135 1,118 2 1,139 - Personal loans 1,300 621 109 775 68 Education l
Slide 16: Driving growth across verticals
Classification | INTERNAL (Rs. crore) Driving growth across verticals Ticket size of Commercial Book Gold Loan portfolio 50 18,000 45 16,000 19% 40 14,000 35 15% 12,000 66% 30 25 25 25 25 25 25 10,000 20 8,000 15 6,000 15,333 16,107 16,997 17,669 18,106 10 < 5 crore >= 5 crore < 10 crore >= 10 crore
Slide 17: Corporate Loan Book
(Rs. crore) Classification | INTERNAL Corporate Loan Book Standard Corporate advances > 150 crore Improving Risk Profile 3,000 7.0 6% 5% 5% 5% 5% 24% 23% 22% 18% 19% 5.0 2.8 29% 33% 33% 37% 39% 2,000 3.1 3.3 2.9 2.6 3.0 41% 39% 40% 40% 37% 1,487 1,331 1,849 1,889 2,004 1,000 1.0 Mar 20 Mar 21 Mar 22
Slide 18: ECLGS Portfolio
Classification | INTERNAL (Rs. crore) ECLGS (Emergency Credit Line Guarantee Scheme) Portfolio Vertical wise Vertical Dec 23 Dec 22 Sep 23 Commercial 781 1,208 895 Agriculture 2 3 2 Corporate 602 836 661 TOTAL 1,385 2,047 1,558 Scheme wise Dec 23 Sep 23 Particulars Outstanding NPA Outstanding NPA EC
Slide 19: Sectoral composition
Classification | INTERNAL Sectoral composition Rs. 72,692 Crore Break of Manufacturing Sector (Rs. 17,050 Crore) OTHER EXPOSURES OTHERS 10% 6% INFRASTRUCTURE Agri NBFC 16% 2% BILLS MANUFACTURING GEMS & JEWELLERY 4% 2% SECTOR 10% 23% MINING AND QUARRYING CRE 3% 6% CONSTRUCTION CEMENT 4% 1% ALL ENGINE
Slide 20: Liability Franchise: Predominantly Retail
Classification | INTERNAL Liability Franchise : Predominantly Retail Low dependence on wholesale deposits 16% 22% 10% < Rs.15 Lakhs 10% Term Deposits 54% Rs.15 Lakhs-Rs.1 Cr Demand Deposits 68% Rs.1 Cr-Rs.5 Cr Savings Deposits 20% > Rs.5 Cr Term deposits are primarily retail deposits ~ 84 % of term
Slide 21: Investment Portfolio
Classification | INTERNAL Investment Portfolio Gross Investments (Rs. crore) Investment Category 21473 19411 17755 23% HTM AFS 77% Mar'22 Mar'23 Dec'23 Investment Composition 0.88% 1.99% Duration 11.15% AFS HFT HTM Total 2.15 - 3.23 3.00 Yield on Investments 85.98% 6.18% 5.76% 5.80% Dec 22 Mar 23 De
Slide 22: Disciplined approach to reduce stressed assets
Classification | INTERNAL Disciplined approach to reduce stressed assets
Slide 23: Movement of NPA for the quarter
(Rs. crore) Classification | INTERNAL Movement of NPA for the quarter Particulars Oct 23- Dec 23 Oct 22 – Dec 22 Gross NPAs Opening Balance 1219 2,457 Additions during the period 197 162 Reductions during the period 264 945 -Of which Recoveries/Upgradation 113 191 Tech Write offs 151 754 Closing Bal
Slide 24: Vertical wise NPA, Collection efficiency
(Rs. crore) Classification | INTERNAL Vertical wise NPA NPA Reduction Q3 Advances O/s. NPA as on NPA Additions NPA as on Provisions VERTICAL Recoveries / Dec 23 Sep 23 Q3 Tech W/off Dec 23 Dec 23 upgradation Commercial 24,398 673 104 67 130 580 375 Retail (Personal Banking) 17,090 308 46 35 4 315 25
Slide 25: Improving Asset Quality
(Rs. crore) Classification | INTERNAL Improving Asset Quality 4213 4143 8.78 3431 7.94 Net NPA% 6.03 Gross NPA% 2351 2366 2132 1809 1719 1261 1458 957 1152 822 2.27 468 3.96 1.58 305 3.45 2.3 0.74 0.42 Mar 20 Mar 21 Mar 22 Mar 23 Dec 23 `Mar 20 Mar 21 Mar 22 Mar 23 Dec 23 Gross NPA Net NPA NPA Provi
Slide 26: Provisions Coverage
Classification | INTERNAL Provisions Coverage 94.81 92.14 80.27 72.70 68.90 71.36 63.25 65.62 55.80 57.11 Mar 20 Mar 21 Mar 22 Mar 23 Dec 23 Market PCR (excl technical write off) Provision Coverage Ratio % * Dec 23 is 9 months annualized 25 www.kvb.co.in
Slide 27: Provisions and Contingencies
(Rs. crore) Classification | INTERNAL Provisions and Contingencies Quarter 9 Months Provision for Dec 23 Dec 22 Dec 23 Dec 22 NPA 108 250 318 597 Standard Assets 9 7 37 27 Restructured advance & Other credit related items (5) 25 (22) 23 Sub-total – Credit Provisions 112 282 333 647 Floating provisio
Slide 28: Restructured Accounts
(Rs. crore) Classification | INTERNAL Restructured Accounts Dec 23 Dec 22 Sep 23 Particulars Standard NPA Standard NPA Standard NPA Resolution Framework - 2.0 485 86 632 66 510 93 COVID 19 - Resolution Framework 215 119 356 46 219 124 MSME 95 24 167 147 118 97 CDR - - - - - - Others* - 29 - 37 - 26
Slide 29: Movement of Standard Restructured Advances for the quarter
(Rs. crore) Classification | INTERNAL Movement of Standard Restructured Advances for the quarter Oct 23 to Dec 23 Oct 22 to Dec 22 Particulars A/c’s Amt. A/c’s Amt. A. Position at the beginning of the period 2,204 847 2,821 1,226 B. Addition during the period - - - - C. Additions in existing A/c’s -
Slide 30: Sector-wise Standard Restructured Advances
(Rs. crore) Classification | INTERNAL Sector-wise Standard Restructured Advances S. Amount SECTOR 3500 N. Dec 23 Sep 23 1 Housing 223 228 3000 4.40 2 Real Estate 130 139 3 Trade 77 77 2500 Stressed Book Analysis 4 Textile 41 44 5 Personal 34 37 2000 0 6 Infrastructure 41 44 0 1500 550 2.20 7 Hotels
Slide 31: Building a strong digital ecosystem
Classification | INTERNAL Building a strong digital ecosystem
Slide 32: Digital Banking
Classification | INTERNAL Digital Banking DLite APP Sovereign Gold Bond Voice Based Login Integration(SGB) Registrations Accounts 23.46 L Opened Recent Launches users 3.72 L Online Dispute Resolution system Anytime Re-KYC option Avg Daily Txns including fraudulent 70.29 K transaction marking UPI Tra
Slide 33: Digital Partnerships
Classification | INTERNAL Digital Partnerships ASSETS LIABILITIES www.kvb.co.in
Slide 34: Environmental Social Governance
Classification | INTERNAL Environmental Social Governance
Slide 35: Environment
Classification | INTERNAL Environment Rs.40 Lakhs expenditure on Green and Climate resilient village in energy conservation Manavadi village Panchayat initiatives in FY 23 Progressing towards achieving the Indian green Building Council(IGBC) certification Promotion of Solar power water pumping
Slide 36: Social
Classification | INTERNAL Social Distribution of disaster relief kits to people of flood affected areas Promoting E library at Government ADW Girls hostel Construction of integrated re-habitation facility center for homeless people by Atchayam trust, Erode Renovation of Community infrastructures to
Slide 37: Governance
Classification | INTERNAL Governance Digital reach of over 3.59 lakhs + across geographies Incorporation of ESG in the lending process Rs. 12.84 Crore investment towards CSR activities Strong focus on improving gender equality with high workforce diversity of 28% Climate change factors conside
Slide 38: Awards and Accolades for the quarter
Classification | INTERNAL Awards and Accolades for the quarter Assocham 18th Governance Now-BFSI Assocham 18TH Annual Annual Summit & Summit & Conclave And Awards 2023 Awards Awards Winner Runner Up Outstanding Financial Innovation in Financial Best Risk And Cyber Performance Inclusion Technology Se
Slide 39: Shareholding pattern (%) External Ratings
Classification | INTERNAL Shareholding pattern (%) External Ratings Rating Agency Instrument Ratings Up gradation Promoter, 2.22 Resident Mutual Fund, Individual, 27.79 Certificate of 42.13 A1+ - Deposits Insurance Improved Companies, AA- 5.41 Tier II Bonds (stable) from A+ (stable) Tier II Foreign
Slide 40: Dynamic workforce
Classification | INTERNAL Dynamic workforce Leading to improved Efficiency 16.98 18 18 14.25 17 15 14 9.20 4.60 3.00 FY 20 FY 21 FY 22 FY 23 Dec'23 FY 20 FY 21 FY 22 FY 23 Dec'23 * Profit per employee ( Rs.Lakhs) Business per employee (Rs. Crore) 191 176 160 149 138 * annualized FY 20 FY 21 FY 22 FY
Slide 41: Decade of Sustained Growth
(Rs. crore) Classification | INTERNAL Decade of Sustained Growth Year 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Paid up Capital 107 122 122 122 145 160 160 160 160 160 Reserves 3,219 4,124 4,451 4,723 6,066 6,205 6,440 6,760 7,436^ 8,424^ Owned funds 3,326 4,246
Slide 42: Thank You
Classification | INTERNAL Thank You