Karur Vysya Bank Ltd. · NSE:KARURVYSYA
Karur Vysya Bank — Q1 FY2024 Earnings Presentation
43 slides from Karur Vysya Bank's earnings presentation, Jul 17, 2023
Slide 1: Regulation 30 intimation cover letter to exchanges
Classification | REGULATORS IRC:F48:140:340:2023 July 17,2023 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 – 4000
Slide 2: Investor Presentation Q1 FY 2024
Classification | INTERNAL Investor Presentation Q1 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 30.06.23 31.03.23 31.03.22 Branches 808 799 789 ATM’s + Cash Recyclers 2,240 2,240 2,223 1 5 1 12 6 No. of Category BBU* CBU* DBU* Other offices^ Branches 1 6 1 Metro 205 10 9 1 13 15 4 1 14 Urban 160 3 - - - 1 Sem
Slide 6: Key Highlights
Classification | INTERNAL (Rs. crore) Key Highlights Business Advances Deposits CASA 1,47,671 68,636* 80,715 26,549 17 % YoY 4 % QoQ 14 % YoY 5 % QoQ 2 % YoY 4 % QoQ 14 % YoY 5% QoQ * before Write Off NIM PPOP Net Profit ROA 4.19 648 359 1.53% 34bps YOY 18bps QoQ 36% YoY 12 % QoQ 57% YoY 6% QoQ 44bp
Slide 7: Key Ratios (Quarter)
Classification | INTERNAL Key Ratios (Quarter) Particulars Jun 23 Jun 22 Mar 23 Cost of Deposits (%) 4.96 4.10 4.61 Yield on Advances (%) 9.69 8.35 9.55 Cost of Funds (%) 4.99 4.13 4.64 Yield on Funds (%) 8.45 7.33 8.32 Net Interest Margin (%) 4.19 3.85 4.37 Spread (%) 3.46 3.20 3.67 Cost to income
Slide 8: Key Ratios (Quarter)
Classification | INTERNAL Key Ratios (Quarter) ROA ROE 1.50 1.53 1.32 16.04 16.05 1.09 1.16 14.04 11.69 12.59 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 NIM 4.36 4.37 Cost to Income 49.68 4.19 47.29 4.10 46.16 3.85 42.90 42.86 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Jun-22 Sep-
Slide 9: Profit & Loss Statement
Classification | INTERNAL (Rs. crore) Profit & Loss Statement Particulars Jun 23 Jun 22 Growth % (YoY) Mar 23 Net Interest Income 897 746 18 893 Other Income 333 199 67 401 - Fee income 204 187 9 202 - Others 129 12 975 199 Total Income 1,230 945 30 1,294 Operating Expenses 581 470 24 555 - Employee
Slide 10: Balance Sheet
(Rs. crore) Classification | INTERNAL Balance Sheet Particulars Jun 23 Jun 22 YoY (%) Capital & Liabilities Capital 160 160 - Reserves and Surplus 8,784 7,665 15 Deposits 80,715 70,961 14 Borrowings 1,555 2,611 (41) Other Liabilities and Provisions 3,393 2,450 39 Total 94,607 83,847 13 Cash and Bala
Slide 11: Capital to Risk Weighted Assets Ratio – Basel III
(Rs. crore) Classification | INTERNAL Capital to Risk Weighted Assets Ratio – Basel III Particulars Jun 23 Jun 22 Mar 23 CRAR % 17.67 18.95 18.56 Total capital 9,126 8,128 9,110 Tier I capital 8,244 7,299 8,242 Tier II capital 882 829 868 RWA 51,643 42,884 49,084 Credit risk 42,437 34,626 41,173 Ope
Slide 12: Driving growth across verticals
Classification | INTERNAL Driving growth across verticals
Slide 13: Total Business
(Rs. crore) Classification | INTERNAL Total Business Parameter Jun 23 Jun 22 YoY % Mar 23 QoQ % Deposits 80,715 70,961 14 76,638 5 Gross Advances 66,956 58,890 14 64,168 4 Advances (before write off) 68,638 58,890 17 66,031 4 Total Business 1,47,671 1,29,851 14 1,40,806 5 Deposits Portfolio Paramete
Slide 14: Growing our books responsibly
Classification | INTERNAL (Rs. crore) Growing our books responsibly Particulars Jun 23* Jun 22 YoY % Jun 23* Mar 23* QoQ % Commercial 22,677 18,633 22 22,295 21,193 5 Retail (Personal Banking) 15,644 13,277 18 15,634 15,023 4 Agriculture 15,646 13,264 18 15,623 14,857 5 Corporate 14,671 13,716 7 13,
Slide 15: Retail Portfolio
(Rs. crore) Classification | INTERNAL Retail Portfolio Particulars Jun 23 Jun 22 YoY % Mar 23 QoQ % Housing loan 6,981 6,006 16 6,717 4 Jewel loans 2,183 1,852 18 2,106 4 Mortgage (LAP) loans 3,198 2,448 31 3,048 5 Vehicle loans 1,126 1,097 26 1,109 2 Personal loans 686 606 13 642 7 Educational loan
Slide 16: Driving growth across verticals
Classification | INTERNAL (Rs. crore) Driving growth across verticals Gold Loan portfolio Ticket size of Commercial Book 50 18000 45 16000 40 14000 17% 35 14% 12000 30 25 25 25 25 25 69% 25 10000 20 8000 15 6000 15333 14462 15030 16107 16997 10 5 4000 < 5 crore >= 5 crore < 10 crore >= 10 crore 0 20
Slide 17: Corporate Loan Book
(Rs. crore) Classification | INTERNAL Corporate Loan Book Standard Corporate advances > 125 crore Improving Risk Profile 3,000 7% 7% 6% 5% 5% 7.0 22% 28% 24% 24% 23% 3.6 3.6 4.0 5.0 2,000 3.4 3.2 31% 29% 33% 33% 29% 2,247 2,180 3.0 1,744 1,852 2,132 36% 38% 41% 39% 40% 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 Jun 23 Jun 22 Mar 23 Commercial 1,002 1,412 1,103 Agriculture 2 4 3 Corporate 714 942 764 TOTAL 1,718 2,358 1,870 Scheme wise Jun 23 Mar 23 Particulars Outstanding NPA Outstanding NP
Slide 19: Sectoral composition
Classification | INTERNAL Sectoral composition Rs. 66,956 Crore Break of Manufacturing Sector (Rs. 16,558 Crore) OTHER OTHERS EXPOSURES 6% Agri GEMS & JEWELLERY NBFC 8% 8% INFRASTRUCTURE 2% BILLS 4% 16% 2% MINING AND QUARRYING MANUFACTURING 4% CRE SECTOR CONSTRUCTION 6% 25% 5% CEMENT 1% ALL ENGINEER
Slide 20: Liability Franchise: Predominantly Retail
Classification | INTERNAL Liability Franchise : Predominantly Retail Low dependence on wholesale deposits 12% 23% 12% Term Deposits 10% 67% Demand Deposits Savings Deposits 56% 20% < Rs.15 Lakhs Rs.15 Lakhs-Rs.1 Cr Rs.1 Cr-Rs.5 Cr > Rs.5 Cr Term deposits are primarily retail deposits ~88% of term de
Slide 21: Investment Portfolio
Classification | INTERNAL Investment Portfolio Gross Investments (Rs. crore) Investment Category 20640 19411 23% 17755 HTM AFS 77% Mar'22 Mar'23 Jun'23 Investment Composition 2.42% 14.04% Duration 0.87% AFS HFT HTM Total 1.44 0.00 3.24 2.86 82.67% Yield on Investments 6.05% 5.97% 5.85% SLR Shares SR
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 Apr 23 – Jun 23 Apr 22 – Jun22 Gross NPAs Opening Balance 1,458 3,431 Additions during the period 150 139 Reductions during the period 278 463 -Of which Recoveries/Upgradation 127 160 Tech Write offs 151 303 Closing Ba
Slide 24: Vertical wise NPA
(Rs. crore) Classification | INTERNAL Vertical wise NPA Advances O/s. NPA as on NPA Additions NPA Reduction Q1 NPA as on Provisions VERTICAL Recoveries / Jun 23 Mar 23 Q1 Tech W/off Jun 23 Jun 23 upgradation Commercial 22,171 848 97 85 124 736 441 Retail (Personal Banking) 15,610 350 42 31 24 337 23
Slide 25: Improving Asset Quality
(Rs. crore) Classification | INTERNAL Improving Asset Quality 4213 4143 8.78 7.94 Net NPA% 3431 Gross NPA% 6.03 2351 2366 2132 1809 1719 1261 1458 1330 957 2.27 1.99 907 3.96 468 390 3.45 0.74 2.3 0.59 Mar 20 Mar 21 Mar 22 Mar 23 Jun 23 `Mar 20 Mar 21 Mar 22 Mar 23 Jun 23 Gross NPA Net NPA NPA Provi
Slide 26: Provisions Coverage
Classification | INTERNAL Provisions Coverage 92.14% 93.41% 4.00% 80.27% 0.8 93.41 72.70% 92.14 68.90% 80.27 72.70 2.93% 68.90 68.20 2.00% 65.62 63.25 0.4 55.80 57.11 1.47% 1.45% 1.26% 0.82% 0 0.00% Mar 20 Mar 21 Mar 22 Mar 23 Jun 23 PCR Credit costs Mar 20 Mar 21 Mar 22 Mar 23 Jun 23 Market PCR (ex
Slide 27: Provisions and Contingencies
(Rs. crore) Classification | INTERNAL Provisions and Contingencies Provision for Jun 23 Jun 22 Mar 23 NPA 101 140 120 Standard Assets 13 9 7 Restructured advance & Other credit related items 23 13 160 Sub-total – Credit Provisions 137 162 287 Floating provisions 25 - - NPI (2) (8) 6 Total Provisions
Slide 28: Restructured Accounts
(Rs. crore) Classification | INTERNAL Restructured Accounts Jun 23 Jun 22 Mar 23 Particulars Standard NPA Standard NPA Standard NPA Resolution Framework - 2.0 536 101 718 52 579 85 COVID 19 - Resolution Framework 230 127 405 47 256 125 MSME 127 118 202 221 140 130 CDR - - - - - Others* - 26 193 43 1
Slide 29: Movement of Standard Restructured Advances for the quarter
(Rs. crore) Classification | INTERNAL Movement of Standard Restructured Advances for the quarter Apr 23 to Jun 23 Apr 22 to Jun 22 Particulars A/c’s Amt. A/c’s Amt. A. Position at the beginning of the period 2,478 976 3,222 1,640 B. Addition during the period - - C. Additions in existing A/c’s 9 - 1
Slide 30: Sector-wise Standard Restructured Advances
(Rs. crore) Classification | INTERNAL Sector-wise Standard Restructured Advances S. Amount Stressed Book Analysis SECTOR 5.00 N. Jun 23 Mar 23 3500 1 Housing 239 258 2746 2 Real Estate 146 149 3000 3 Trade 85 87 130 2163 4 Textile 49 58 2500 3.28 5 Personal 40 45 119 1705 6 Infrastructure 43 48 2000
Slide 31: Building a strong digital ecosystem
Classification | INTERNAL Building a strong digital ecosystem
Slide 32: Digital Banking
Classification | INTERNAL Digital Banking DLite APP Registrations Accounts 4.48 MILLION Opened 21.71 L DLITE APP users 3.57L DOWNLOADS Avg Daily Txns 74.6 K UPI Transactions (in lakhs) 2095 1966 18% 95% 1758 1875 1618 Share of digital Growth in digital transactions transaction Jun-22 Sep-22 Dec-22 M
Slide 33: Digital Partnerships
Classification | INTERNAL Digital Partnerships ASSETS LIABILITIES NOCPL www.kvb.co.in
Slide 34: Environmental Social Governance
Classification | INTERNAL Environmental Social Governance
Slide 35: Environment
Classification | INTERNAL Environment Progressing towards achieving the Indian Green Building Council (IGBC) certification Initiated energy conservation process by supporting the branch/offices with energy efficient light bulbs and green refrigerant ACs Electric powered buggies, RO plants provided f
Slide 36: Social
Classification | INTERNAL Social Supported construction of an Supported 1219 women dairy Integrated Facility for Palliative and farmers in bettering their Geriatric Care. livelihoods. Donated 33 battery operated pushcarts Integrated for building and reskilling a valued at Rs.40.00 lakhs to women fro
Slide 37: Governance
Classification | INTERNAL Governance The Board approved Environment, Social and Governance Policy disclosed on Bank’s Website CSR&ESG Committee of the Board to exercise oversight on ESG implementation related aspects in the Bank. Evaluating opportunities for raising Green deposits and Green lending
Slide 38: CSR Initiatives
Classification | INTERNAL CSR Initiatives As a part of Green & Climate Resilient Village Project, Second Tranche of Fund handed over to Sneha Sandhiya Age Pond Excavation and strengthening of Bunds at Care Foundation by MD & CEO for establishing Integrated Manavadi Village is in progress. facility f
Slide 39: Awards and Accolades for the Quarter
Classification | INTERNAL Awards and Accolades for the Quarter 14TH EDITION DATA CENTER INDIA SUMMIT AND KAMIKAZE BANKING AWARDS 2023 B2B MEDIA SUMMIT AND AWARDS 2023 WINNER UBS FORUMS BEST BNPL COMPANY/PLATFORM OF THE MOST INNOVATION MOBILE BANKING APP OF INFRASTRCUTURE MANAGEMENT YEAR THE YEAR (KV
Slide 40: Shareholding pattern and External Ratings
Classification | INTERNAL Shareholding pattern External Ratings Rating Agency Instrument Ratings Promoter, 2.24 Resident Mutual Fund, Individual, 42.54 26.83 Certificate of A1+ Deposits Insurance Companies, 2.62 Tier II Bonds A+ (stable) Tier II Bonds A+ Foreign Portfolio Investors others, 7.88 Cate
Slide 41: Dynamic workforce
Classification | INTERNAL Dynamic workforce Leading to improved Efficiency 17.35 14.25 18 18 17 15 14 9.20 4.60 3.00 FY 20 FY 21 FY 22 FY 23 Jun'23 FY 20 FY 21 FY 22 FY 23 Jun'23 * Business per employee (Rs. Crore) Profit per empolyee (Rs.Lakhs)) 176 183 160 149 138 * annualized FY 20 FY 21 FY 22 FY
Slide 42: Decade of Sustained Growth
(Rs. crore) Classification | INTERNAL Decade of Sustained Growth Year 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Paid up Capital 107 107 122 122 122 145 160 160 160 160 160 Reserves 2,978 3,219 4,124 4,451 4,723 6,066 6,205 6,440 6,760 7,436^ 8,424^ Owned
Slide 43: Thank You
Classification | INTERNAL Thank You