Karur Vysya Bank Ltd. · NSE:KARURVYSYA
Karur Vysya Bank — Q2 FY2024 Earnings Presentation
42 slides from Karur Vysya Bank's earnings presentation, Oct 16, 2023
Slide 1: Regulation 30 intimation to stock exchanges
Classification | REGULATORS IRC:F48:201:456:2023 October 16, 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 –
Slide 2: Investor Presentation Q2 FY 2024
Classification | PUBLIC Investor Presentation Q2 FY 2024
Slide 3: Disclaimer
Classification | PUBLIC 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 no
Slide 4: Quarter In focus
Classification | PUBLIC Quarter In focus
Slide 5: Strong presence in India's fast growing hinterland
Classification | PUBLIC Strong presence in India’s fast growing hinterland Category 30.09.23 31.03.23 31.03.22 Branches 824 799 789 ATM’s + Cash Recyclers 2,244 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 Semi
Slide 6: Key Highlights
Classification | PUBLIC (Rs. crore) Key Highlights Business Advances Deposits CASA 1,53,516 70,448 83,068 26,794 14% YoY 4% QoQ 15% YoY 5% QoQ 13% YoY 3% QoQ 3 % YoY 1% QoQ NIM PPOP Net Profit ROA H1 - 4.13 Q2 - 4.07 H1 – 1,286 Q2 - 638 H1 – 737 Q2 - 378 H1 – 1.55% Q2 – 1.57% 15 bps YoY 12 bps QoQ 2
Slide 7: Key Ratios
Classification | PUBLIC Key Ratios Quarter Half year Particulars Sep 23 Sep 22 Sep 23 Sep 22 Cost of Deposits (%) 5.16 4.09 5.07 4.10 Yield on Advances (%) 9.76 8.64 9.73 8.50 Cost of Funds (%) 5.19 4.13 5.09 4.13 Yield on Funds (%) 8.52 7.57 8.49 7.45 Net Interest Margin (%) 4.07 4.10 4.13 3.98 Spr
Slide 8: Key Ratios (Quarter)
Classification | PUBLIC Key Ratios (Quarter) ROA ROE 16.04 16.05 16.5 1.50 1.53 1.57 14.04 1.32 12.59 1.16 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Cost to Income NIM 4.37 49.14 4.36 47.29 46.16 4.19 4.10 4.07 42.90 42.86 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Sep-22 Dec-22
Slide 9: Profit & Loss Statement
Classification | PUBLIC (Rs. crore) Profit & Loss Statement Quarter Half Year Particulars Sep 23 Sep 22 Growth % Sep 23 Sep 22 Growth % Net Interest Income 915 821 11 1,812 1,567 16 Other Income 339 242 40 672 441 52 - Fee income 197 174 13 401 361 11 - Others 142 68 109 271 80 239 Total Income 1,25
Slide 10: Balance Sheet
(Rs. crore) Classification | PUBLIC Balance Sheet Particulars Sep 23 Sep 22 YoY (%) Capital & Liabilities Capital 161 160 1 Reserves and Surplus 9,002 7,789 16 Deposits 83,068 73,398 13 Borrowings 2,588 2,281 13 Other Liabilities and Provisions 3,615 2,737 32 Total 98,434 86,365 14 Assets Cash and B
Slide 11: Capital to Risk Weighted Assets Ratio – Basel III
(Rs. crore) Classification | PUBLIC Capital to Risk Weighted Assets Ratio – Basel III Particulars Sep 23 Sep 22 Jun 23 CRAR % 16.84 18.07 17.67 Total capital 9,146 8,134 9,126 Tier I capital 8,249 7,293 8,244 Tier II capital 897 841 882 RWA 54,314 45,007 51,643 Credit risk 45,282 36,808 42,437 Opera
Slide 12: Driving growth across verticals
Classification | PUBLIC Driving growth across verticals
Slide 13: Total Business
(Rs. crore) Classification | PUBLIC Total Business Parameter Sep 23 Sep 22 YoY % Jun 23 QoQ % Mar 23 YTD % Deposits 83,068 73,398 13 80,715 3 76,638 8 Gross Advances 70,448 61,086 15 66,956 5 64,168 10 Total Business 1,53,516 1,34,484 14 1,47,671 4 1,40,806 9 Deposits Portfolio Parameter Sep 23 Sep
Slide 14: Growing our books responsibly
Classification | PUBLIC (Rs. crore) Growing our books responsibly Particulars Sep 23 Sep 22 YoY% Jun 23 QoQ% Commercial 23,510 19,713 19 22,171 6 Retail (Personal Banking) 16,225 13,855 17 15,610 4 Agriculture 16,302 13,796 18 15,621 4 Corporate 14,411 13,722 5 13,554 6 Gross Advances 70,448 61,086
Slide 15: Retail Portfolio
(Rs. crore) Classification | PUBLIC Retail Portfolio Particulars Sep 23 Sep 22 YoY % Jun 23 QoQ % Housing loan 7,254 6,256 16 6,981 4 Jewel loans 2,159 1,804 20 2,183 (1) Mortgage (LAP) loans 3,450 2,675 29 3,198 8 Vehicle loans 1,139 1,116 2 1,126 2 Personal loans 775 671 16 686 13 Educational loan
Slide 16: Driving growth across verticals
Classification | PUBLIC (Rs. crore) Driving growth across verticals Gold Loan portfolio Ticket size of Commercial Book 50 18000 45 16000 40 19% 14000 35 25 12000 14% 30 25 25 25 25 67% 25 10000 20 8000 15 6000 16997 15030 15333 16107 17669 10 5 4000 < 5 crore >= 5 crore < 10 crore >= 10 crore 0 2000
Slide 17: Corporate Loan Book
(Rs. crore) Classification | PUBLIC Corporate Loan Book Standard Corporate advances > 150 crore Improving Risk Profile 7% 6% 5% 5% 5% 24% 24% 23% 22% 18% 3,000 7.0 33% 37% 31% 29% 33% 5.0 2,000 3.1 3.3 2.9 3.1 38% 41% 39% 40% 40% 2.6 3.0 1,849 1,889 2,173 1,487 1,331 Sep-22 Dec-22 Mar-23 Jun-23 Sep-
Slide 18: ECLGS Portfolio
Classification | PUBLIC (Rs. crore) ECLGS (Emergency Credit Line Guarantee Scheme) Portfolio Vertical wise Vertical Sep 23 Sep 22 Jun 23 Commercial 895 1,305 1,002 Agriculture 2 4 2 Corporate 661 897 714 TOTAL 1,558 2,206 1,718 Scheme wise Sep 23 Jun 23 Particulars Outstanding NPA Outstanding NPA EC
Slide 19: Sectoral composition
Classification | PUBLIC Sectoral composition Rs. 70,448 Crore Break of Manufacturing Sector (Rs.17,043 Crore) OTHERS OTHER EXPOSURES 6% 8% GEMS & JEWELLERY NBFC 8% INFRASTRUCTURE Agri BILLS 16% 2% 5% 3% MINING AND QUARRYING MANUFACTURING 4% SECTOR CRE 24% CONSTRUCTION 6% 5% CEMENT 1% ALL ENGINEERING
Slide 20: Liability Franchise: Predominantly Retail
Classification | PUBLIC Liability Franchise : Predominantly Retail Low dependence on wholesale deposits 22% 15% 11% Term Deposits < Rs.15 Lakhs 10% Demand Deposits Rs.15 Lakhs-Rs.1 Cr 68% Savings Deposits Rs.1 Cr-Rs.5 Cr 55% > Rs.5 Cr 20% Term deposits are primarily retail deposits ~ 86% of term dep
Slide 21: Investment Portfolio
Classification | PUBLIC Investment Portfolio Gross Investments (Rs. crore) Investment Category 21413 19411 17755 24% HTM AFS 76% Mar'22 Mar'23 Sep'23 Investment Composition 13.11% 2.11 Duration 0.89% AFS HFT HTM Total 2.09 - 3.19 2.95 83.89% Yield on Investments 6.13% 5.97% 5.85% SLR Shares SR Deben
Slide 22: Disciplined approach to reduce stressed assets
Classification | PUBLIC Disciplined approach to reduce stressed assets
Slide 23: Movement of NPA for the quarter
(Rs. crore) Classification | PUBLIC Movement of NPA for the quarter Particulars Jun 23- Sep 23 Jun 22 – Sep 22 Gross NPAs Opening Balance 1,330 3,107 Additions during the period 155 131 Reductions during the period 266 781 -Of which Recoveries/Upgradation 115 205 Tech Write offs 151 576 Closing Bala
Slide 24: Vertical wise NPA and Collection efficiency
(Rs. crore) Classification | PUBLIC Vertical wise NPA Advances O/s. NPA as on NPA Additions NPA Reduction Q2 NPA as on Provisions VERTICAL Recoveries / Sep 23 Jun 23 Q2 Tech W/off Sep 23 Sep 23 upgradation Commercial 23,510 736 90 69 84 673 445 Retail (Personal Banking) 16,225 337 38 37 29 308 215 A
Slide 25: Improving Asset Quality
(Rs. crore) Classification | PUBLIC Improving Asset Quality 8.78 4213 4143 7.94 3431 6.03 Net NPA% Gross NPA% 2351 2366 2132 1809 1719 1458 2.27 1261 1219 3.96 1.73 957 865 3.45 468 2.3 0.74 324 0.47 `Mar 20 Mar 21 Mar 22 Mar 23 Sep 23 Mar 20 Mar 21 Mar 22 Mar 23 Sep 23 Gross NPA Net NPA NPA Provisi
Slide 26: Provisions Coverage
Classification | PUBLIC Provisions Coverage 94.49 92.14 92.14% 94.49% 4.00% 80.27 80.27% 0.8 72.70 72.70% 68.90 68.90% 70.99 65.62 2.93% 63.25 55.80 57.11 2.00% 0.4 0.68% 1.47% 1.45% 1.26% 0 0.00% Mar 20 Mar 21 Mar 22 Mar 23 Sep 23 Mar 20 Mar 21 Mar 22 Mar 23 Sep 23 PCR Credit costs Market PCR (excl
Slide 27: Provisions and Contingencies
(Rs. crore) Classification | PUBLIC Provisions and Contingencies Quarter Half year Provision for Sep 23 Sep 22 Sep 23 Sep 22 NPA 109 206 210 347 Standard Assets 15 11 28 20 Restructured advance & Other credit related items (22) (15) 1 (2) Sub-total – Credit Provisions 102 202 239 365 Floating provis
Slide 28: Restructured Accounts
(Rs. crore) Classification | PUBLIC Restructured Accounts Sep 23 Sep 22 Jun 23 Particulars Standard NPA Standard NPA Standard NPA Resolution Framework - 2.0 510 93 671 60 536 101 COVID 19 - Resolution Framework 219 124 372 47 230 127 MSME 118 97 181 215 127 118 CDR - - - - - - Others* - 26 1 42 - 26
Slide 29: Movement of Standard Restructured Advances for the quarter
(Rs. crore) Classification | PUBLIC Movement of Standard Restructured Advances for the quarter Jun 23 to Sep23 Jun 22 to Sep 22 Particulars A/c’s Amt. A/c’s Amt. A. Position at the beginning of the period 2,318 893 2,987 1,518 B. Addition during the period - - - - C. Additions in existing A/c’s - 10
Slide 30: Sector-wise Standard Restructured Advances
(Rs. crore) Classification | PUBLIC Sector-wise Standard Restructured Advances S. Amount SECTOR 3500 N. Sep 23 Jun 23 1 Housing 228 239 3000 4.40 2 Real Estate 139 146 3 Trade 77 85 2500 Stressed Book Analysis 4 Textile 44 49 2000 119 5 Personal 37 40 0 2.50 6 Infrastructure 44 43 550 2.20 1500 819
Slide 31: Building a strong digital ecosystem
Classification | PUBLIC Building a strong digital ecosystem
Slide 32: DLite Digital Banking
Classification | PUBLIC Digital Banking DLite APP Mutual Funds Opening of e-RBSB Integration Account Registrations Accounts 22.62 L Opened 3.66 DLite users L Beneficiary /Payee Repeat recent UPI Name Inquiry transaction Avg Daily Txns 74.1 K UPI Transactions (in lakhs) 2315 20% 95% 1966 2095 1875 17
Slide 33: Digital Partnerships
Classification | PUBLIC Digital Partnerships ASSETS LIABILITIES NOCPL www.kvb.co.in
Slide 34: Environmental Social Governance
Classification | PUBLIC Environmental Social Governance
Slide 35: Environment
Classification | PUBLIC Environment Established a comprehensive ESG due diligence policy Reduced our energy intensity by 14.3% over FY22 15% reduction in our scope 1 and scope 2 intensity MOU was signed between Tamil Nadu Agricultural University (TNAU), Karur Vysya Bank, District Administratio
Slide 36: Social
Classification | PUBLIC Social Improved our workforce diversity by 11.2% Increased our total manhours of training by over 3x Doubled our CSR expenditure over FY22 Reduced the employee turnover rate by 15.2% 40% and 16% of the total branches present in semi-urban and rural branches respecti
Slide 37: Governance
Classification | PUBLIC Governance Board diversity enhanced by 37.5% over FY22 ESG Enhancements Incorporation of ESG in the lending process Progressing towards achieving the Indian Green Building Council Developed an ESG due diligence framework to be (IGBC) certification. incorporated in our c
Slide 38: Awards and Accolades for the Half year
Classification | PUBLIC Awards and Accolades for the Half year 14TH EDITION DATA CENTER Indian Chamber of SUMMIT AND KAMIKAZE Commerce AWARDS 2023 B2B MEDIA 2nd Runner up WINNER BEST BNPL UBS FORUMS The Best Performance of CASA COMPANY/PLATFORM OF THE INFRASTRCUTURE MANAGEMENT YEAR INDIA 15TH EDITIO
Slide 39: Shareholding pattern and External Ratings
Classification | PUBLIC Shareholding pattern External Ratings Promoter Rating Agency Instrument Ratings Group, 2.24 Resident Mutual Fund, Individual, 24.69 Certificate of 43.54 A1+ Deposits Insurance Companies, Tier II Bonds A+ (stable) 5.65 Tier II Bonds A+ Foreign Portfolio others, 5.79 Investors
Slide 40: Dynamic workforce
Classification | PUBLIC Dynamic workforce Leading to improved Efficiency 18 17 16.66 17 15 14.25 14 9.20 4.60 3.00 FY 20 FY 21 FY 22 FY 23 Sep'23 * FY 20 FY 21 FY 22 FY 23 Sep'23 Profit per empolyee (Rs.Lakhs) Business per employee (Rs. Crore) 186 176 160 149 138 * annualized FY 20 FY 21 FY 22 FY 23
Slide 41: Decade of Sustained Growth
(Rs. crore) Classification | PUBLIC 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 4
Slide 42: Thank You
Classification | PUBLIC Thank You