Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q2 FY2021 Earnings Presentation
35 slides from Kotak Mahindra Bank's earnings presentation, Oct 27, 2020
Slide 1: Exchange filing cover letter
27th October 2020 The Manager The Manager Corporate Relationship, National Stock Exchange of India Ltd. BSE Limited, Exchange Plaza, 1st Floor, New Trading Ring, 5th Floor, Rotunda Buliding, Plot No.C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, Dalal Street, Bandra (East), Mumbai 40
Slide 2: Investor Presentation Q2FY21
INVESTOR PRESENTATION Q2FY21 Presentation on financial results for the period ended 30th September, 2020 26th October, 2020
Slide 3: Standalone highlights Q2FY21
Standalone highlights Q2FY21 PPOP PAT NII Loans ` 3,913 cr [` 3,350 cr] ` 3,297 cr ` 2,184 cr NIM* ` 204,845 cr [` 2,509 cr] [` 1,724 cr] 4.52% [` 213,299 cr] [4.61%] Net NPA CAR# Total CASA 23.4% Assets [18.2%] 0.64% Tier I# ` 374,765 cr 57.1% [0.85%] 22.8% [` 316,890 cr] [17.6%] [53.6%] Figures in
Slide 4: Profit and Loss Account
Profit and Loss Account ` cr Q2FY21 Q2FY20 Q1FY21 FY20 Highlights Net Interest Income 3,913 3,350 3,724 13,500 Others include treasury (incl Other Income 1,452 1,224 773 5,372 equity), ARD buyout Fee and Services 1,058 1,162 776 4,731 Others 394 62 (3) 641 Provision (incl. on interest accrued) m
Slide 5: Fees & Services
Fees & Services ` cr Q2FY21 Q2FY20 Q1FY21 FY20 Distribution & Syndication Income 172 115 144 590 General Banking Fees 854 1,017 607 4,021 Others 32 30 25 120 Fees and Services 1,058 1,162 776 4,731 4
Slide 6: Asset Quality
Asset Quality Asset Quality ` cr 30-Sep-20 30-Sep-19 30-Jun-20 Non specific provisions GNPA 5,336 5,034 5,619 towards advances (standard NNPA 1,304 1,811 1,777 SMA2^ outstanding - ` 133 & COVID provisions) at 177% GNPA (%) 2.55% 2.32% 2.70% of the NNPA of the Bank cr, 0.06% of net advances NNPA (%)
Slide 7: Balance Sheet
Balance Sheet ` cr 30-Sep-20 30-Sep-19 30-Jun-20 Capital & Reserves and Surplus 59,923 45,912 57,709 Deposits 261,564 233,071 261,524 CA 40,454 38,200 38,594 SA 108,990 86,712 109,754 Term Deposits 112,120 108,159 113,176 Of which: TD Sweep 20,184 16,548 18,884 Borrowings 41,789 26,665 47,920 Other
Slide 8: Summary of Q2
Summary of Q2 India’s COVID situation improving; but need for continued alertness Health and safety top priorities for the Bank Health & Work from home continues to the extent possible Safety Safe and efficient digital channels – Net Banking, Mobile Banking, call centers, Keya chat bot and W
Slide 9: Digital Highlights
Digital Highlights Enabling Assets Scaling Digital Banking Capabilities E-sign – Signing agreement and document remotely via Mobile Banking - Continues to be 5th* in industry with 5.1% Aadhaar share of transaction value; Transaction volume up 81% & value up 56% annually Paperless sanction - Home Loa
Slide 10: Digital Channels
Digital Channels Mobile Banking has 180+ features and Net Banking 250+ across product categories Banking & Servicing Loans & Cards Innovative products like Consumer finance and Self-service on MB, NB, Chatbot Payday loan Help center in Hindi Image credit card launched 97% RDs opened throug
Slide 11: Digital Engagements
Digital Engagements 811 – Share in Digital Engagement Digital payments MB 30 day unique Logins 55% Key Highlights Key Trends UPI transactions 56% 73% growth in Digital Payments volumes in Sep’20 over Sep’19 ~2.3X growth in Consumer 1.9X growth of consumer UPI P2M checkouts in Secured Credit Ca
Slide 12: Deposit
Deposit CASA (` cr) Cost of SA CASA % 57.1% 53.6% 56.7% 56.2% 3.87% [5.37%] Wholesale floating TDs below rate SA ` 1 cr ` 68,713 cr Fixed rate SA [` 62,430 cr] TD Sweep, as % of total deposits 7.7% [7.1%] CASA & TDs below ` 5 CA cr, as % of total deposits CDs at ` 2,029 cr 91% [86%] YoY % 32% Lower
Slide 13: Customer Assets
Customer Assets 30-Sep-20 (` 218,790 cr) Customer Assets 30-Sep- 30-Sep- 30-Jun- ` cr 20 19 20 Home Loans & LAP 47,732 45,816 47,168 Consumer Bank WC 19,562 19,571 18,240 (Secured) PL, BL and Consumer 8,177 9,667 9,088 Durables Credit Cards 4,378 4,624 4,343 CV/CE 18,363 19,688 18,442 Agriculture Di
Slide 14: Specific Sectors Exposure
Specific Sectors Exposure Specific Sectors as per Basel III Outstanding* (` cr) 30-Sep-20 % 30-Sep-19 % 30-Jun-20 % NBFCs 12,248 4.5% 10,964 4.0% 12,304 4.5% :Of which HFC 5,025 1.8% 3,563 1.3% 4,921 1.8% CRE (excl LRD) 5,661 2.1% 5,609 2.0% 6,106 2.2% LRD 4,363 1.6% 4,296 1.6% 4,400 1.6% Total incl
Slide 15: Consolidated Highlights Q2FY21
Consolidated Highlights Q2FY21 CAR# Customer PAT 24.5% Total Assets Assets [19.1%] ` 2,947 cr Tier I# ` 247,432 cr ` 457,283 cr [` 2,407 cr] 23.9% [` 259,321 cr] [` 400,342 cr] [18.7%] Capital & NIM* Net NPA Book Value Reserves per Eq. share 4.58% ` 79,389 cr 0.70% ` 399 [4.56%] [` 62,563 cr] [0.82%
Slide 16: Consolidated PAT
Consolidated PAT ` cr Q2FY21 Q2FY20 Q1FY21 FY20 Highlights Q2FY20 had effect of reduced Kotak Mahindra Bank 2,184 1,724 1,244 5,947 corporate tax rate for H1FY20 Kotak Mahindra Prime 133 172 68 673 At PBT level, growth of 33% YoY Kotak Mahindra Investments 74 67 43 270 Kotak Securities 199 149 1
Slide 17: Entity-wise Capital & Reserves and Surplus
Entity-wise Capital & Reserves and Surplus ` cr 30-Sep-20 30-Sep-19 30-Jun-20 Kotak Mahindra Bank 59,923 45,912 57,709 Kotak Mahindra Prime 6,289 5,740 6,157 Kotak Mahindra Investments 1,976 1,719 1,902 Kotak Securities 4,897 4,238 4,698 Kotak Mahindra Capital 642 589 628 Kotak Mahindra Life Insuran
Slide 18: Kotak Mahindra Prime
Kotak Mahindra Prime ` cr Q2FY21 Q2FY20 Q1FY21 FY20 Customer Assets* (` cr) NII 300 305 300 1,229 Other Income 53 64 12 291 NII and Other Income 353 369 312 1,520 Profit Before Tax 179 234 93 923 Profit After Tax 133 172 68 673 NNPA (%) 1.3% 0.6% 1.1% 0.6% CAR (incl unaudited profits) 26.6% (%) ROA
Slide 19: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance ` cr Q2FY21 Q2FY20 Q1FY21 FY20 Gross Written Premium (` cr) Capital 562 562 562 562 2,401 2,190 1,207 10,340 Other Reserves and Surplus 3,124 2,461 2,952 2,791 Total Premium 2,401 2,190 1,207 10,340 Profit After Tax 171 144 161 608 (Shareholders’) Solvency Ratio (x) 3.0
Slide 20: KLI – Update on Digitization
KLI – Update on Digitization Focus continue on empowering distribution, energizing employees and superior customer experience Digital onboarding of customers through Genie, continues to remain high at 98% Empowered advisors using “Boost”, an app for superior engagement and improving Empowering D
Slide 21: Kotak Securities
Kotak Securities ` cr Q2FY21 Q2FY20 Q1FY21 FY20 Market ADV (` ‘000 cr) Total Income 516 407 459 1,690 2,044 1,455 1,453 1,443 Profit Before Tax 266 181 225 738 Profit After Tax 199 149 169 550 Market Share* (%) 1.5 *excluding BSE Derivative segment Market Share in Cash Segment H1FY21: 7.7% (H1FY20:
Slide 22: Kotak Mahindra Capital Company
Kotak Mahindra Capital Company Equity ICICI Bank Limited UTI Asset Management Co. Limited # Qualified Institutional Placement # Initial Public Offer (IPO) ` 15,000 cr ` 2,160 cr PI Industries Limited Yes Bank Limited # Qualified Institutional Placement # Further Public Offer (FPO) ` 2,000 cr ` 15,00
Slide 23: Kotak Mahindra AMC & Trustee Co.
Kotak Mahindra AMC & Trustee Co. Average Assets Under Management (` cr) - Overall ` cr Q2FY21 Q2FY20 Q1FY21 FY20 Profit Before Tax 113 104 95 454 Profit After Tax 84 85 71 337 Highlights Overall Market share on AAUM rose to 6.9% in Q2FY21 Average Assets Under Management (` cr) - Equity (Q2FY20: 6.
Slide 24: Assets Under Management and Relationship Value
Assets Under Management and Relationship Value 30th September, 2020 30th September, 2019 (Total: ` 271,769 cr) (Total: ` 242,023 cr) Relationship Value of Wealth + Priority + Investment Advisory as on 30th Sep, 2020 ~` 300,000 cr (PY: ~` 295,000 cr) 23
Slide 25: Key Awards
Key Awards Best Productivity, Efficiency & Automation Best Private Bank in Best Integrated Media Best Cash Management Initiative, Application or India Campaign – Bank in India Programme Global Private Banking Product/Services The Asian Banker The Asian Banker Awards 2020 Indian Digital Marketing Tra
Slide 26: Geographical presence
Geographical presence 3 Branches 1,602* [No./%] North 11 Branches distributed 485 / 30% 90 10 across various geographies 71 102 West East 495 / 31% 122 / 8% 1 86 66 5 22 1 South 500 / 31% 1 155 46 9 22 42 Branch Classification 2 19 331 87 7 109 180 90 34 No. of ATMs 2,550 25 * Does not include branc
Slide 27: Group Profile
GROUP PROFILE
Slide 28: The Journey So far…
The Journey So far… ∞ First International Ability to Identify and Capitalize on Opportunities Branch ∞ Microfinance 2019 ARC 2013 ∞ Digital Bank - 811 BANK ∞ Kotak IDF 2020 2008 2008 ∞ Digital 2017 2011 Video Life 2012 KYC Insurance 2003 2002 Auto Finance 2000 2013 2006 2004 2014 2010 Alternate ∞ IN
Slide 29: Kotak – Diversified and integrated financial services
Kotak – Diversified and integrated financial services Kotak Mahindra Bank Commercial Bank & Parent Company Kotak Mahindra Kotak Mahindra Kotak Investment Kotak Mahindra Kotak Securities Prime Investments Advisors Capital Company ∞ Car Finance ∞ Investments ∞ Alternate Assets ∞ Investment Banking ∞ S
Slide 30: Present Across the Entire Value Chain
Present Across the Entire Value Chain Platform with Wide Product Portfolio Wholesale Banking Commercial Banking Consumer Banking Other Financial Services ∞ Corporate Loans ∞ Agriculture Finance ∞ Branch Banking ∞ Wealth Management ∞ Trade Finance ∞ Tractor Finance ∞ 811 ∞ Car and 2W Loans ∞ Business
Slide 31: Our Strengths
Our Strengths An integrated ∞ Balance Sheet, Market & Knowledge driven businesses encompassing all customer & geographic segments financial services conglomerate with a ∞ Wide spectrum of financial products and services help to balance against market cycles, hedge against downturns in specific diver
Slide 32: Our Strategy
Our Strategy ∞ To be amongst the most trusted financial services conglomerates in India Enhance Customer ∞ Enhance customer experience backed by wide spectrum of products, and using cost efficient, convenient delivery channels including digital Experience & Trust and technological initiatives ∞ Stre
Slide 33: The Path of Leadership
The Path of Leadership Attract & Retain Talent - High degree of stability within the Risks Management management team, many have been Strong Capital Position with the Group for over 15 years - Extensive on-the-ground - Capital adequacy amongst the - Preferred Employer status in the presence and supe
Slide 34: Strong and Committed Leadership Team
Strong and Committed Leadership Team Senior Leadership Team with Long Vintage Dipak Gupta Gaurang Shah KVS Manian D Kannan Shanti Narayan SA Jt. MD WTD WTD Ekambaram 28 Years 23 Years 25 Years 28 Years 29 Years 28 Years Compliance, IT, HR & Credit, ARD, Asset Corporate, Marketing, Digital, Mgmt, Alt
Slide 35: Disclaimer
Disclaimer This presentation is for information purposes only and does not constitute an offer, solicitation or advertisement with respect to the purchase or sale of any security of Kotak Mahindra Bank Limited (the “Bank”) and no part of it shall form the basis of or be relied upon in connection wit
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