Karnataka Bank Ltd. · NSE:KTKBANK
Karnataka Bank — The Karnataka Bank — FY2022 Earnings Presentation
57 slides from Karnataka Bank's earnings presentation, May 30, 2022
Slide 1: Karnataka Bank Ltd. Exchange Filing Cover Letter
XX Karnataka Bank Ltd. Your Family Bank, Across India Regd. & Head Office Phone: 0824-2228222 P. B. No.599, Mahaveera Circle E-Mail _: investor.grievance@ktkbank.com Kankanady Website : www.karnatakabank.com Mangaluru - 575 002 CIN _: L85110KA1924PLC001128 SECRETARIAL DEPARTMENT May 30, 2022 HO/SEC/
Slide 2: Analysis of Financial Results March 2022
98th Year Analysis of Financial Results March 2022 Marching towards Centenary year (2023-24)
Slide 3: Table of contents
Table of contents 1 01 Highlights Q4 FY22 Financial headline numbers and Key ratios 02 Company Overview Evolution, Presence and Timeline 03 Financial Performance FY22 Financial Results, Business numbers, Productivity ratios , Asset Quality 04 Digital Presence Digital & Risk Management systems, Digit
Slide 4: Highlights Q4 FY22
Table of contents 1 01 Highlights Q4 FY22 Financial headline numbers and Key ratios 02 Company Overview Evolution, Presence and Timeline 03 Financial Performance FY22 Financial Results, Business numbers, Productivity ratios , Asset Quality 04 Digital Presence Digital & Risk Management systems, Digit
Slide 5: Highlights Q4 FY22
Highlights Q4 FY22 ₹ in Cr Deposits Highlights Q4 FY22 Advances 31.03.2022 31.03.2021 31.03.2022 31.03.2021 80387 75655 6.25 % 10.22 % 56783 51516 Growth Investments Balance Sheet Size 31.03.2022 31.03.2021 1.88 % 7.50 % 31.03.2022 31.03.2021 22041 21635 92041 85615 Net Profit (Qtr) 315.66 % 15.64 %
Slide 6: Highlights: Key Ratios
Highlights Highlights Q4 FY22 ₹ crs Key Ratios as on / for the quarter 31.03.2022 (in brackets-31.03.2021 / Sequential 31.12.2021) NIM CRAR 3.25 % 15.66 % Gross Net ( 2.41%) (14.85%) NPA NPA 3.90% 2.42% (4.91%) ( 3.18%) ROE ROA 7.42 % 0.56 % (0.15%) Gross Net (1.89%) NPA NPA Sequential Sequential CA
Slide 7: Headline numbers
Headline numbers 3 Months 12 Months ₹ in Cr Particulars Q4 FY 22 Q4 FY 21 Y-o-Y Q3 FY 22 FY 22 FY 21 Y-o-Y Turnover 137170 127171 7.86% 133918 137170 127171 7.86% Asset size 92041 85615 7.50% 90958 92041 85615 7.50% Operating profit 380.12 328.71 15.64% 356.32 1634.00 1908.28 -14.37% Operating Profi
Slide 8: Company Overview
Table of contents 1 01 Highlights Q4 FY22 Financial headline numbers and Key ratios 02 Company Overview Evolution, Presence and Timeline 03 Financial Performance FY22 Financial Results, Business numbers, Productivity ratios , Asset Quality 04 Digital Presence Digital & Risk Management systems, Digit
Slide 9: Company Overview
Company Overview Incorporated in the year 1924 877 branches 12 million + 885 ATMs 36 E-lobbies Happy customers 563 Cash recyclers 510 mini E-lobbies Business Turnover of Rs ₹ 1,37,170 crore as on March 2022 Our MISSION is to be a technology Our VISION is to be savvy, customer centric progressive pro
Slide 10: Pan India Footprint
Pan India Footprint Pan-India footprint Area wise distribution of Branches Metro Urban Semi Urban Rural 21 7 2 4 23% 28% 8 1 9 10 1 2 3 16 7 20 23% 5 8 26% 52 25 17 25 7 41 Branches ATMs Recyclers 556 1 1026 1200 1001 50 848 858 877 885 21 1000 800 563 454 477 600 Presence in South India with 694 br
Slide 11: Timeline (First 50 years)
Timeline (First 50 years) 1924 1949 1960-66 1972 1974 Incorporation Silver Jubilee Year Takeover Own Head Office building Golden Jubilee Year Incorporated on Turnover: Rs 94.98 lakhs Sringeri Sharada Bank Bank's own the 18th of Deposits :Rs 55.59 lakhs in 1960 multistoried Head Turnover: Rs 55.2
Slide 12: Timeline (Next 48 years)
Timeline (Next 48 years) Marching towards Centenary Year 2023-24 1984 1991-99 2000-17 2017-20 2020-22 Diamond Jubilee Year Growth Technology adoption Transformation KBL –NxT & branding Turnover: Rs 333.56 Cr Business Turnover crossed Core Banking system Finacle Transformation Project ‘KBL –
Slide 13: Financial Performance FY22
Table of contents 1 01 Highlights Q4 FY22 Financial headline numbers and Key ratios 02 Company Overview Evolution, Presence and Timeline 03 Financial Performance FY22 Financial Results, Business numbers, Productivity ratios , Asset Quality 04 Digital Presence Digital & Risk Management systems, Digit
Slide 14: PL Numbers
PL Numbers ₹ in Cr 3 Months 12 Months Particulars Q4 FY 22 Q4 FY 21 Y-o-Y Q3 FY 22 FY 22 FY 21 Y-o-Y Interest Income 1578.78 1417.49 11.38% 1565.10 6221.66 6232.42 -0.17% Interest Expense 922.29 958.35 -3.76% 942.45 3730.63 4049.23 -7.87% Net Interest Income 656.49 459.14 42.98% 622.65 2491.03 2183.
Slide 15: PL Numbers: Interest Income and Expense
PL Numbers ₹ in Cr 3 Months 9 Months Particulars Q4 FY 22 Q4 FY 21 Y-o-Y Q3 FY 22 FY 22 FY 21 Y-o-Y Interest Income Interest Income 1578.78 1417.49 11.38% 1565.10 6221.66 6232.42 -0.17% Interest on Advances 1211.50 1073.13 12.89% 1195.32 4737.88 4937.29 -4.04% Interest on Investments 330.06 302.86 8
Slide 16: Financial Strength of the Bank
Financial Strength of the Bank Networth (₹ crs) 7,095 6,642 Business Turnover (₹ crs) 8000 5,970 1,28,749 1,37,170 6000 1,27,171 6,784 4000 5,659 6,331 120000 51,516 56,783 56,964 100000 2000 311 311 311 80000 0 Mar '20 Mar '21 Mar' 22 60000 75,655 80,387 71,785 Capital Reserves 40000 20000 0 Mar '2
Slide 17: Deposits
Deposits 16% Deposits (₹ crs) 14% Growth rate (y-o-y) 71,785 75,655 80,387 12% 0.08% 0.01% 0.37% 10% 8% 3.98% 11.23% 14.80% 6% 71.01% 68.50% 66.66% 6.25% 8.04% 4% 5.39% 1.65% 4.87% 2% 0% 28.91% 31.49% 32.97% CASA deposit Retail term deposit Total deposit -2% -1.45% -4% Mar'20 Mar '21 Mar'22 CASA dep
Slide 18: Advances
Advances Advances [Net] (₹ crs) Growth Y-O-Y (%) 56,964 68.77% 51,516 56,783 55.00% 13.23% 20.37% 25.80% 35.00% 33.79% 28.71% 31.85% 15.00% 10.64% 11.44% 9.57% 3.90% 5.99% 6.91% 3.26% 45.49% 52.98% 47.78% -5.00% Mar'20 Mar '21 -1.19% Mar'22 -11.26% -9.25% Mar'20 Mar '21 Mar'22 -25.00% Corporate (> 1
Slide 19: Advances: Credit Deposit Ratio and Sectoral Exposure
Advances Credit Deposit ratio (%) 82% Sectoral Loan exposures 80% 79.35% 78% 76% Others Agriculture 74% 6.49% NBFC 13.33% 72% 70.64% 14.69% 70% 68.09% Infra 68% 1.99% 66% MSME 28.84% 64% Other Personal loans 62% 7.07% Mar'20 Mar '21 Mar'22 Yield on Advances & Interest Spread (%) Yield on advances In
Slide 20: Advances to Priority Sectors
Advances to Priority Sectors Priority Sector Advances (₹ crs) Agriculture Advances* (₹ crs) Amount % Amount % 60% 32,077 35000 21% 12000 10,473 28,617 56.41% 30000 19% 50% 9,071 18.42% 10000 25,094 8,568 17% 46.58% 25000 40% 43.89% 8000 15% 20000 14.99% 30% 13% 14.76% 6000 15000 11% 20% 4000 10000 9
Slide 21: Geographical Credit concentration
Geographical Credit concentration (₹ crs) (₹ crs) GBC NPA Restructured SMA-2# State State State State Balance % to Balance % to Balance % to Balance % to wise Outstanding GBC wise wise Performing Outstanding GBC Outstanding GBC Outstanding advances % to % % Perf advance Karnataka 26361.60 45.63% 104
Slide 22: Restructured Loans
Restructured Loans Standard Restructured Portfolio –Sector break-up Standard Restructured Portfolio –Movement (₹ crs) Particulars FY 22 Opening balance 1489.78 Fresh restructuring during the period 3077.16 Others Agriculture Increase in balance in the existing restructured accounts 53.74 14% 6% Upgr
Slide 23: SMA Accounts (SMA 2 and SMA 1)
SMA Accounts (SMA 2 and SMA 1) SMA 2 (₹ crs) 4.00% 2000 3.50% 3.41% 1800 1600 3.00% 2.50% 2.34% * 1400 1200 1,717.08 1.79% 2.00% 1,240.36 1.64% 1000 ** 1.50% 800 SMA 1 (₹ crs) 897.02 890.83 0.93% 600 1.00% 518.11 400 0.50% 200 3.50% 1600 0.00% 0 2.94% Mar '21 June'21 Sep'21 Dec '21 Mar'22 3.00% 1400
Slide 24: Asset Quality
Asset Quality Gross NPAs (₹ crs) Net NPAs (₹ crs) 6% 4.82% 4.91% 3000 3.50% 3.08% 3.19% 2000 1800 3.00% 5% 3.90% 2500 2.42% 1600 2.50% 1400 4% 2000 1200 2,588 2.00% 2,251 1,377 1,755 2,800 3% 1500 1000 1,645 1.50% 800 2% 1000 1.00% 600 1% 500 400 0.50% 200 0% 0 0.00% 0 Mar'20 Mar '21 Mar'22 Mar'20 M
Slide 25: NPA Break-up
NPA Break-up Composition of NPA Size wise NPA Above Rs 50 Cr Loss Assets 3.09% Sub 3.73% Standard 32.53% Rs 5 Cr to Rs 50 Cr Upto Rs 1 31.07% Cr 41.56% Doubtful 63.74% Rs 1 Cr to Rs 5 Cr 24.28% Credit portfolio wise NPA Corporate (> 100 crore) 0% Mid Corporate (> 5 crore & upto 100 crore) 34% Retail
Slide 26: NPA Analysis
NPA Analysis Movement in NPA during Q4 22 (₹ crs) NPA Sectoral exposures Others Quarter ended Vehicle Loans 7% Large Enterprise Particulars 1% 6% 31.03.2022 Personal Loans 4% Opening GNPA 2330.51 Housing Agriculture Additions 395.59 9% 25% Sub Total ( A ) 2726.10 Reduction Up-gradation 155.31 Recove
Slide 27: NPA Break-up: Accounts above Rs 5 Crore
NPA Break-up Asset Quality NPA accounts of Rs 25 Crore and above and provisions held (₹ crs) NPA Classification No. of Borrowers Net Balance Provision held Provision % SS 1 (-) 37.62 (-) 6.03 (-) 16.03 (-) DS 1 1 (3) 25.13 (127.02) 25.13 (53.04) 100.00 (41.76) DS 2 2 (3) 95.31 (126.81) 53.92 (64.18)
Slide 28: Income & Profit
Income & Profit Net Income (₹ crs) Operating and Net Profit (₹ crs) 4000 3,292 3,587 3,445 1,908 3500 2000 1,657 1,634 3000 954 1800 1,585 1,262 1,404 1,256 1,283 2500 1600 1400 2000 1200 1500 1000 509 2,183 2,491 800 483 1000 2,030 600 432 500 400 0 200 Mar'20 Mar '21 Mar'22 0 Net Interest Income O
Slide 29: Return and Capital adequacy ratios
Return and Capital adequacy ratios Return on Equity (%) (after tax) Return on Assets (%) (after tax) 9.00% 0.70% 0.65% 7.65% 7.35% 7.41% 0.60% 0.57% 0.57% 0.55% 0.53% 6.00% Mar '20 Mar '21 Mar'22 0.50% Mar' 20 Mar '21 Mar'22 Capital Adequacy (%) - Basel III Tier I Tier II Total CRAR 18 15.66 16 14.8
Slide 30: Capital Adequacy
Capital Adequacy (₹ crs) Risk Weighted Assets Particulars 31.03.2020 31.03.2021 31.03.2022 52,708 49,760 51,855 Risk Weighted Assets 52,708.33 49,759.61 51,855.44 9.10% 10.89% 11.12% 3.43% Total Capital Fund (Basel III) 6,789.35 7,387.05 8118.55 6.34% 5.51% Total Tier I Capital 5,619.43 6,140.39 6,5
Slide 31: Provisions
Provisions Category Provision % to total Provision % to during FY 22 during FY 21 total (in crore) (in crore) Provision Coverage Ratio NPA 590.61 52.48% 1227.42 35.61% 100% Standard advances 278.97 24.79% 44.59 1.29% 90% Fair Value 48.11 4.27% 23.10 0.67% Investments 10.00 0.89% 5.66 0.16% 80% Tax 1
Slide 32: Provisions: Sector-wise PCR
Provisions Sector-wise PCR % 100.00% 100.00% 99.91% 99.28% 97.89% 98.16% 97.03% 96.49% 93.29% 93.16% 88.67% 80.00% 79.68% 60.00% 40.00% 20.00% 0.00% 0.00% Staff Large Housing Personal Vehicle NBFC Infra CRE Agri MSME Housing LRD Housing Others Total Entp (CRE) Loans Loans Loan PCR %(incl TW) 100.00%
Slide 33: Productivity Ratios
Productivity Ratios Operating Profit per employee (₹ lakh) * Operating Profit per branch (₹ lakh) * 22.66 222.41 25 19.48 19.18 250 195.37 186.32 20 200 15 150 10 100 5 50 0 Mar'20 Mar '21 Mar'22 0 * annualized Mar'20 Mar '21 Mar'22 Business per employee (₹ crs) Business per branch (₹ crs) 16.10 200
Slide 34: Investments
Investments Investments [excl. RIDF] (₹ crs) AFS 22.31% 22,041 HFT 21,635 0.11% 25000 17,545 20000 15000 HTM 10000 77.58% 5000 Duration 0 Mar'20 Mar '21 Mar'22 AFS HFT HTM TOTAL 3.89 0.02 5.50 5.14 Yield on Investments (%) 7% 6.83% Liquidity Coverage Ratio 350% 317.92% 300% 272.78% 6.02% 250% 219.25
Slide 35: Borrowers under External Rating
Borrowers under External Rating [ Figures in brackets – as of Mar’21] Of which, NPA SMA2 Restructured book No of Balance O/s Rating Borrowers % to GBC No. of No. of Bal o/s No. of Bal o/s % share to (in cr) Bal o/s (cr) borrowers borrowers (cr) borrowers (cr) Std. Adv. @ AAA 17 (13) 4,565 (2,653) 7.
Slide 36: External Rating of Top 50 borrowers
External Rating of Top 50 borrowers [ Figures in brackets – as of Dec‘20] Of which, NPA SMA2 Restructured book No of Balance O/s Rating % to GBC no. of no. of Bal o/s no. of Bal o/s % share to Borrowers (in cr) Bal o/s (cr) borrowers borrowers (cr) borrowers (cr) Std. Adv. * AAA 12 (8) 4,164 (2,299)
Slide 37: External Rating of NBFC Portfolio
External Rating of NBFC Portfolio [ Figures in brackets – as of Mar ‘21] Of which, NPA SMA2 Restructured book No of Balance O/s Rating % to GBC no. of no. of Bal o/s no. of Bal o/s % share to Borrowers (in cr) Bal o/s (cr) borrowers borrowers (cr) borrowers (cr) Std. Adv. * AAA 15 (11) 4,366 (2,153)
Slide 38: Shareholders value
Shareholders value Earning Per Share (₹) 16.36 Share holding pattern Others 17 15.52 * 4.59% 16 Indian Public 16 78.15% 13.89 15 15 14 14 13 Banks, FIs, MF, 13 Insurance Cos Mar'20 Mar '21 Mar'22 5.34% Book value (₹ in Cr) 213.67 227.83 192.06 250 200 Foreign Portfolio Investors 150 11.92% 100 50 0
Slide 39: Consolidated Numbers
Consolidated Numbers 3 Months 12 Months Q4 FY 22 Q4 FY 21 Q3 FY 22 Particulars Y-o-Y 31.03.2022 31.03.2021 Y-o-Y (31.03.2022) (31.03.2021) (31.12.2021) Turnover (₹ in Cr) 137170 127171 7.86% 133918 137170 127171 7.86% Asset size (₹ in Cr) 92040 85615 7.50% 90958 92040 85615 7.50% Operating profit (₹
Slide 40: Digital Presence
Table of contents 1 01 Highlights Q4 FY22 Financial headline numbers and Key ratios 02 Company Overview Evolution, Presence and Timeline 03 Financial Performance FY22 Financial Results, Business numbers, Productivity ratios , Asset Quality 04 Digital Presence Digital & Risk Management systems, Digit
Slide 41: Robust technology and digital platforms
Robust technology and digital platforms Pioneer in implementing “Finacle” (CBS) State-of-art IT set up which has enabled Anytime Anywhere Banking through alternate amongst first generation private sector banks delivery channels such as ATMs, VISA International Debit Card, RUPAY Debit Card, Internet
Slide 42: KBL- Digital Centre of Excellence
KBL- KBL- Digital Digital Centre Center of Excellence of Excellence (DCoE) Accelerating Digital Transformation Catalyst Digital Leads Enabling reach digitally 2200+ Risk Reduction Improving Asset Quality ( Cibil V3 >701 Score Portfolio) >76% 41
Slide 43: Strong foundation of digital capabilities and enablers
Strong foundation of digital capabilities and enablers Digital Channels Xpress Journeys Customer Assistant & Analytics platforms 42
Slide 44: Digital adoption and underwriting
Digital adoption and underwriting 93.22 % of customer transactions are through Digital means KBL Xpress Home Loans 4.58 Customer Rating 5 point Scale 75% KBL Xpress Car Loans 79% Digital 70% KBL Xpress MSME Loans 4.55 Customer Rating Customer Rating 4.25 5 point Scale Adoption 5 point Scale KBL Xpre
Slide 45: Mobile Banking
Mobile Banking No. of Regd users (Actuals as at the end of the quarter) 23,85,999 19,62,138 16,11,054 13,66,082 12,60,932 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 No. of transactions during the quarter Value of transactions during the quarter No. of Transactions (in 000’s) Avg. Transactions per day (in 00
Slide 46: Debit cards Penetration
Debit Cards Debit cards Penetration Position during the quarter 89.40% 88.42% 87.21% 51.68 86.88% 51.55 51.13 86.51% 50.34 49.90 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Total cards issued (Lakhs) Penetration (%) Total ATM transactions by our Debit Card holders Cards Usage 186 163 155 157 125 76 87 86 89
Slide 47: UPI Transactions
UPI Transactions Position during the quarter BHIM KBL UPI Txns count 2,263 1,610 1,811 1,374 1,331 208231 164850 1,48,148 1,23,647 1,21,076 KBL BHIM UPI Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 No. of Transactions (in 000's) Avg. Transactions per day (in 000's) BHIM KBL UPI Txn Value 430 316 339 261 263 3
Slide 48: POS and ECOM Transactions
POS and ECOM Transactions Position during the quarter 70 9.4 9.0 9.0 66 61 9.0 60 58 60 POS Transactions 50 6.2 42 40 5,895 5,538 5,500 847 845 5,229 30 815 784 3,790 20 563 10 0 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 No. of Txn ('000s) Avg per day ('000s) Value of Txn
Slide 49: Digital initiatives during Q4 FY22
Digital initiatives during Q4 FY22 NRI Mobile Banking facility enabled 1 2 Digital facility to update Online Re-KYC 4 New Digi-Centre opened in our Web based online safe deposit locker booking facility 3 Mannagudda, Mangaluru branch Digital facility for Compliance Test Report of the branches 5 6 Cen
Slide 50: Effective Risk Management Systems
Effective Risk Management Systems Dedicated Market Intelligence Unit ISO 9001: 2015 (MIU) for sourcing intelligence Bank’s Risk Management practices and from external sources on Effective ALM/mid office to borrowers with exposure ₹100 processes have been accredited with monitor Liquidity risk/ Crore
Slide 51: Business Strategy
Table of contents 1 01 Highlights Q4 FY22 Financial headline numbers and Key ratios 02 Company Overview Evolution, Presence and Timeline 03 Financial Performance FY22 Financial Results, Business numbers, Productivity ratios , Asset Quality 04 Digital Presence Digital & Risk Management systems, Digit
Slide 52: Focus areas for the FY 2022-23
KBL @ 99 Focus areas for the FY 2022-23 Implementation of KBL-NxT Opening of DBUs (KBL- VIKAAS 2.0 and Cyber Fraud (Digital Banking Units) Management) as per RBI Guidelines Integrated Management of Growth Management- Asset Quality Credit & CASA Including garnering Government business SMA, NPA, Restr
Slide 53: Projects in pipeline for Impact NxT
Projects in pipeline for Impact NxT @ One Place Account MSME Banking AA Aggregator Platform Comprehensive Financial Data @ One Place S.E.E.D Comprehensive Financial services @ One Place Secure & Compliant Ease & Experience Efficient & Empowered Disrupt & Transform Analytical KYC Centre Of Automation
Slide 54: Business Strategy- KBL @ 100 for FY 2023-24 and beyond
Business Strategy- KBL @ 100- for FY 2023-24 and beyond… KBL VIKAAS 3.0 Digital Bank of the Future New transformation journey End to end digital solutions under KBL-NxT 53
Slide 55: Board Of Directors
Board Of Directors Mr Pradeep Kumar Panja Mr Mahabaleshwara M S Part-Time Chairman Managing Director & CEO (Independent Director) Mr Keshav Krishnarao Desai Mrs Mythily Ramesh CA B R Ashok Independent Director Independent Director Non-Independent Director Justice A V Chandrashekar Mrs Uma Shankar Mr
Slide 56: Thank You
WE EXPRESS OUR HEARTFELT GRATITUDE TO ALL OUR STAKE HOLDERS FOR THEIR TRUST & SUPPORT AND SOLICIT THEIR CONTINUED PATRONAGE, AS WE CONTINUE OUR JOURNEY WITH RENEWED DEDICATION & Thank You COMMITMENT TO MAKE KARNATAKA BANK “A DIGITAL BANK OF THE FUTURE”. 55
Slide 57: Disclaimer
Disclaimer This presentation has been prepared by Karnataka Bank (the “Bank”) solely for providing information about the Bank. This presentation is confidential and may not be copied or disseminated, in whole or part, in any manner. This presentation has been prepared by the Bank based on informatio