Karur Vysya Bank Ltd. · NSE:KARURVYSYA
Karur Vysya Bank — H1 FY2018 Earnings Presentation
39 slides from Karur Vysya Bank's earnings presentation, Sep 30, 2017
Slide 1: Investor Presentation 30.09.2017
Investor Presentation 30.09.2017
Slide 2: Smart way to bank
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Slide 3: About Us
About Us Banking tradition of 101 years Consistently earning profits since inception Uninterrupted dividend payment record 100% and above dividend for 14 consecutive years from 2004 (120% or higher for eleven years) First bank to get permission from RBI to issue bonus shares 752 branches
Slide 4: H1FY18 Results Snapshot
H1FY18 Results Snapshot Operating Profit Net Profit Advances Deposits Rs.224 crore Rs. 44,237 crore Rs. 56,400 crore Rs. 876 crore (↓ 18%) (↑12% ) (↑8%) (↑ 20%) ROA NIM 0.71% 3.78% CRAR Net NPA (↑ 18 bps) 12.22% 3.24 % 4
Slide 5: Profit & Loss Account (Q2 FY 18)
Profit & Loss Account (Q2 FY 18) Units: Rs crore Q2FY 2017- Q2FY Particulars YoY% 18 2016-17 Net Interest Income 556 495 12% Other Income 230 217 6% Total Income 786 712 10% Operating Expenses 358 330 8% Operating Profit 428 382 12% Provisions 322 182 77% Credit Related 297 156 90% Others 25 26 -4%
Slide 6: Profit & Loss Account (H1 FY 18)
Profit & Loss Account (H1 FY 18) Particulars H1 FY 18 H1 FY 17 YoY% Net Interest Income 1094 976 12% Other Income 466 380 23% Total Income 1560 1356 15% Operating Expenses 683 627 9% Operating Profit 877 729 20% Provisions 555 312 78% Credit Related 526 293 80% Others 29 19 53% Profit Before Tax 322
Slide 7: Breakup of Other Income (Quarter)
Breakup of Other Income (Quarter) Units: Rs crore Particulars Q2 FY 17-18 Q2 FY 16-17 YoY % Total 230 218 5.50% Fee Income 210 137 53.28% Forex 11 8 37.50% Commissions 149 116 28.45% Other 50 13 - Profit on Sale 20 81 (75.31)% of Investments 7
Slide 8: Breakup of Other Income (Half Year)
Breakup of Other Income (Half Year) Units: Rs crore Particulars H1FY18 H1FY17 YoY % Total 466 380 22.63% Fee Income 399 284 40.49% Forex 22 18 22% Commissions 310 240 29% Other 67 26 - Profit on Sale of 67 96 (30.21)% Investments 8
Slide 9: Healthy Other Income Profile
Healthy Other Income Profile Growth in other income Fee income consistently contributes ~ 67% of other income 9 100% 12% 12% 7% 7% 8 17% 13% 16% 14% 14% 90% 5% 5% 0.6 4% 4% 7% 7 0.4 7% 7% 5% 80% 11% 20% 1 15% 12% 26% 20% 13% 14% 6 70% 8% 18% 0.5 2.1 0.9 0.7 5 0.9 60% 0.4 0.4 0.6 0.7 0.7 50% 4 0.2 1
Slide 10: Key Ratios (Q2 2017-18)
Key Ratios (Q2 2017-18) Net Interest Margin Cost to Income % 4.50% 55% 51.29% 4.04% 50% 46.31% 45.61% 4.00% 3.81% 45% 42.00% 3.76% 3.68% 37.55% 3.61% 40% 3.50% 35% 30% 3.00% 25% Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Return on Assets Return on Equity 1.39% 20% 1.40% 17
Slide 11: Key Ratios (Quarter)
Key Ratios (Quarter) Particulars Q2 FY 17-18 Q2 FY 16-17 Cost of Deposits 6.08% 6.89% Yield on Advances 10.51% 11.50% Cost of Funds 6.00% 6.89% Yield on Funds 9.19% 9.90% Cost Income Ratio 45.61% 46.31% Spread 3.19% 3.01% NIM 3.81% 3.61% Business/Emp. (Rs crore) 12.86 12.60 Profit/Emp. (Rs lakh) 3.9
Slide 12: Key Ratios (H1 2018)
Key Ratios (H1 2018) Particulars H1 FY 17-18 H1 FY 16-17 Cost of Deposits 6.11% 6.93% Yield on Advances 10.54% 11.41% Cost of Funds 6.03% 6.88% Yield on Funds 9.21% 9.87% Cost Income Ratio 43.82% 46.26% Spread 3.18% 2.99% NIM 3.78% 3.60% Business/Emp. (Rs crore) 12.86 12.60 Profit/Emp. (Rs lakh) 5.7
Slide 13: Profitability Metrics (Quarterly)
Profitability Metrics (Quarterly) 5.50% 5.08% 4.86% 5.00% 4.61% 4.31% 4.39% 4.43% 4.43% 4.50% 4.25% 4.25% 4.04% 4.00% 3.76% 3.81% 3.61% 3.68% 3.47% 3.55% 3.52% 3.39% 3.50% 3.00% 3.39% 3.17% 3.16% 3.19% 2.99% 2.90% 3.01% 2.50% 2.76% 2.65% 2.00% 1.50% 1.00% Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Ma
Slide 14: Deposits
Deposits Units: Rs crore Particulars FY 17 -18 FY 16 -17 YoY % Total Deposits 56,400 52,002 8.46% CASA 15,574 12,963 20.14% CASA Mix % 27.61% 24.93% Demand 5,404 4,524 19.45% Savings 10,169 8,439 20.50% Term Deposits 40,826 39,039 4.58% 14
Slide 15: Retail Liability Franchise – Granular and Sticky
Retail Liability Franchise – Granular and Sticky Low dependence on wholesale deposits (FY 2017-18) Term deposits are primarily retail deposits. Only 10% of term deposits are > Rs.50 Mn Rs. 1.5 Mn - Rs. 10 Mn., 23% < Rs. 1.5 Mn, 61% Rs. 10 Mn - Rs. 50 Mn, 6% > Rs. 50 Mn, 10% Low concentration of depo
Slide 16: Deposit Mix
Deposit Mix Break-up of deposit base (in %) 100% 80% 60% 76% 77% 79% 78% 77% 72% 71% 72% 81% 81% 40% 20% 9% 11% 10% 11% 10% 8% 8% 8% 8% 8% 13% 13% 11% 11% 13% 14% 15% 19% 18% 18% 0% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Jun-17 Sep-17 Savings Deposits Demand Deposits Time Deposits Growth in demand
Slide 17: Advances
Advances Units: Rs crore Particulars H1 17-18 H1 16-17 YoY % Advances 44,237 39,537 11.89% Corporate 14,514 13,114 10.68% Commercial 15,042 13,303 13.07% Agriculture 7,773 6,950 11.84% Retail (Personal Banking) 6,908 6,170 11.96% Jewel Loan 6,725 6,356 5.81% (included in other segments) 17
Slide 18: Granular Loan Portfolio
Granular Loan Portfolio Loan book break up in FY17-18 Retail, 16% Agriculture, 17% Corporate, 33% Commercial, 34% Rs.296 Bn Commercial book Corporate book break-up* break-up* > Rs. 1000 < Rs. 250 > =250 mn, < 50 mn, mn, 30% mn, 17% 1% 78% >= 100 mn < 250 mn, 10% Rs.250mn - >= 50 mn < Rs. 500 mn 500
Slide 19: Breakup of Advances
Breakup of Advances Sub-sectoral exposures well spread out; diversified industrial exposures (FY17-18) Rs. 442 Bn Breakup of industry exposure (Rs. 132 Bn) OTHER INFRASTRUCTURE EXPOSUR 15% ES* 20% GEMS & OTHERS 20% POWER 4% NBFC 3% MANUFA JEWELLERY 4% CTURING SECTOR TRANSPORT BILLS 3% EQUIPMENTS 30%
Slide 20: Advances – Category wise
Advances – Category wise Growth over Amount (Rs. in crore) % to Total Advance Sep - 16 Particulars Sep-17 Sep-16 Mar-17 Sep-17 Sep-16 Mar-17 Amount % MANUFACTURING SECTOR 13,195 12,056 12,688 29.83 30.48 30.62 1139 9.45 JEWEL LOAN 6,725 6,356 6,159 15.20 16.07 14.86 369 5.81 PERSONAL SEGMENT LOANS @
Slide 21: Manufacturing Sector - Breakup
Manufacturing Sector - Breakup Growth Amount (Rs. in crore) % to Total Advance INDUSTRY 09-17/09-16 Sep-17 Sep-16 Mar-17 Sep-17 Sep-16 Mar-17 Abs. % INFRASTRUCTURE 2,779 2,857 2,964 6.28 7.23 7.15 (78) (2.73) TEXTILES 3,893 3,313 3,769 8.80 8.38 9.10 580 17.51 BASIC METAL & METAL PRODUCTS 1,343 1,35
Slide 22: Retail Advances
Retail Advances Amount (Rs. in crore) Segment Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Jun-17 Sep-17 Housing Loan 436 611 971 1,387 1,757 2,094 2,330 2,425 2,553 Mortgage Loan (LAP) - - - 381 568 787 965 1,045 1,178 Vehicle Loan 387 492 677 735 782 831 921 962 1,003 Jewel Loan 481 584 832 80
Slide 23: Advances Mix
Advances Mix Advances in Value (Rs.in crore) Advances Mix (in %) 45% 43% 16000 40% 38% 37% 14000 37% 35% 34% 34% 34% 35% 12000 30% 32% 33% 33% 33% 32% 32% 10000 31% 32% ABG ABG 25% 8000 CBG CBG 20% 18% 18% 18% 18% 18% 6000 CIG 17% 16% CIG 16% PBG 15% PBG 4000 16% 14% 15% 15% 16% 10% 12% 13% 2000 10%
Slide 24: Investment Portfolio
Investment Portfolio Investments Outstanding (Rs. In crore) Portfolio wise Investment 15000 14955 HFT, 0.00% 14818 14800 AFS, 25.13% 14600 14357 14400 HTM, 74.87% 14200 14000 Sep' 16 Mar' 17 Sep' 17 Modified Duration Investment Portfolio AFS HFT HTM Total SLR Shares Debentures/CD/MF/CP/SR 2.86 0.00
Slide 25: Stress Accounts
Stress Accounts Rs. in Crore SDR Outstanding (2 accounts) 96.09 5/25 (1 account ) 78.80 S4A Accounts (3 accounts) 235.09 Sale to ARC in Q2 of FY 17-18 Nil 25
Slide 26: Sector Wise Restructured Advances
Sector Wise Restructured Advances AMOUNT (%) to Total Rest. S.NO SECTOR (Rs. in crore) Adv Sep-17 Sep-16 Sep-17 Sep-16 1 AGRICULTURE 7.52 11.53 1.07 0.93 2 INFRASTRUCTURE 356.00 712.54 50.60 57.23 3 TEXTILES 43.32 198.41 6.16 15.94 4 AUTO LOANS 32.67 0.55 4.64 0.04 5 EDUCATIONAL LOANS 0.14 0.65 0.02
Slide 27: Movement of Restructured Assets
Movement of Restructured Assets Units: Rs crore Apr-17 to Jun-17 Jul-17 to Sep-17 Particulars Amount Amount No. of A/c ( Rs. in Cr) No. of A/c ( Rs. in Cr) Restructured accounts at the beginning of the 33 841.81 36 807.85 period - [A] Addition during the period - [B] 5 0.12 0 0 Addition of facilitie
Slide 28: NPA Position
NPA Position Units: Rs crore 2,136 1,807 1,484 Gross NPA 1,022 Net NPA 903 565 638 1,033 1,189 1,407 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 3.24 2.85 2.53 4.83 1.68 4.27 1.44 3.58 2.66 Net NPA % 2.29 Gross NPA % Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Provision Coverage 68.26% 67.06% 57.83 % 57.01% 54.09% Ra
Slide 29: Movement of NPA
Movement of NPA (Rs. in crore) Particulars Apr 17 - Jun 17 Jul 17 - Sep 17 Apr 16 - Sep 16 Movement of Gross NPAs Opening Balance 1,483.81 1,807.01 511.18 Additions during the period 389.24 426.84 617.83 Reductions during the period 66.04 97.66 226.27 Closing Balance 1,807.01 2,136.19 902.74 Movemen
Slide 30: Breakup of Provisions (Other than Tax)
Breakup of Provisions (Other than Tax) Units: Rs crore Particulars Q2 FY 17-18 Q2 FY 16-17 Total Provisions 321 182 NPA 106 96 Standard Assets 4 -- A/c’s referred to NCLT (Std. Assets) 54 -- Restructured (SDR, S4A, 5/25 etc.) 11 -- Investment 35 23 Others (including amortisation 63 of loss on sale o
Slide 31: Breakup of Provisions (Other than Tax)
Breakup of Provisions (Other than Tax) Units: Rs crore Particulars H1 FY 17-18 H1 FY 16-17 Total Provisions 555 312 NPA 263 190 Standard Assets 5 (-) 4 A/c’s referred to NCLT (Std. Assets) 54 -- Restructured (incl. SDR, S4A, 5/25 etc.) 19 (-) 6 Investment 39 16 Others (including amortisation 175 116
Slide 32: Branch and ATM / Cash Recyclers Network
Branch and ATM / Cash Recyclers Network 2500 1200 2207 2251 2191 1983 2008 2000 1759 900 1500 1276 752 711 719 667 1000 629 825 572 551 600 488 451 500 375 369 335 0 300 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Jun-17 Sep-17 ATM + Cash Recyclers Branches 32
Slide 33: Branch Network - Diversified Across the Country
Branch Network - Diversified Across the Country Geographical spread of branches (FY 2017-18) State /UT Sep-17 - Branches (Nos) TAMILNADU 399 Region, Number of branches South 643 18 Divisional Offices spread across the country ANDHRA PRADESH 110 North 42 TELANGANA 57 KARNATAKA 51 East 24 MAHARASHTRA
Slide 34: Leveraging Technology – Alternate Banking Channels
Leveraging Technology – Alternate Banking Channels Volume of RTGS transactions POS Terminals 25000 23929 23945 22068 1.50% 19000 1.25% 1.14% 1.18% 1.17% 0.99% 13000 10157 1.00% 0.91% 0.94% 8434 9234 0.84% 0.79% 5844 7000 0.75% 3399 1000 0.50% FY12 FY13 FY14 FY15 FY16 FY 17 Jun-17 Sep-17 FY12 FY13 FY
Slide 35: Capital Adequacy
Capital Adequacy Capital Adequacy Ratio (FY 12 to FY 14 Basel II and FY 15 onwards Basel III) 16% 14.33% 14.41% 14.61% 14% 1.21% 1.31% 1.05% 12.77% 12.54% 12.17% 12.22% 12% 1.15% 0.69% 11.71% 0.91% 0.82% 0.67% 10% 8% 13.12% 13.10% 13.56% 6% 11.62% 11.85% 11.40% 11.26% 11.04% 4% 2% 0% Mar-12 Mar-13 M
Slide 36: Human Resources
Human Resources Young workforce ( average 33 years)….. … and well qualified work force… …with lower attrition … 40% below 30 yrs of age out of 7,758 employees 8.4% 35 Others 34 34 11% 6.2% 34 5.4% 33 33 33 33 4.4% 4.5% Graduate 33 PG 32 32 32 37% 2.9% 2.7% 32 52% 2.2% 2.6% 31 30 FY10 FY11 FY12 FY13
Slide 37: A Decade of Progress
A Decade of Progress Units: Rs crore Year 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Paid up Capital 53.94 53.95 54.44 94.49 107.18 107.18 107.18 121.63 121.86 121.86 Reserves 1136.06 1296.21 1565.54 2020.05 2601.04 2978.01 3219.16 4124.4 4451.09 4723.16 Owned fu
Slide 38: Disclaimer
DISCLAIMER “The Karur Vysya Bank Limited, (“Bank”), is proposing, subject to market conditions and other considerations, a rights issue of its equity shares (the “Issue”), and has in this regard, filed a letter of offer dated October 11, 2017, (“Letter of Offer”), with the designated stock exchange,
Slide 39: Smart
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