Karnataka Bank Ltd. · NSE:KTKBANK
Karnataka Bank — Q1 FY2024 Earnings Presentation
33 slides from Karnataka Bank's earnings presentation, Aug 3, 2023
Slide 1: Exchange filing cover letter
Karnataka Bank Ltd. Your Family Bank. Across India. Regd. & Head Office Phone : 0824-2228182 P. B. No.599, Mahaveera Circle E-Mail : comsec@ktkbank.com Kankanady Website : www.karnatakabank.com Mangaluru – 575 002 CIN : L85110KA1924PLC001128 SECRETARIAL DEPARTMENT 03.08.2023 HO:SEC:117:2023-24 1. Th
Slide 2: Investor Presentation, 03 August 2023
Investor Presentation 03 August 2023
Slide 3: Table of Contents
Table of Contents Sr. No. Particulars Pg. No. 1 New Management Team 3 2 Strategic Roadmap 8 3 Our Strengths 18 4 Financial Highlights 24 2
Slide 4: Professional Management Team
Professional Management Team… Srikrishnan H. Sekhar Rao Balachandra Y V Gokuldas Pai MD & CEO Executive Director Chief Operating Officer Chief Business Officer Former MD & CEO, Jio Payments Bank; Former COO, CSB Bank; National Head, 28-years operations veteran at Karnataka 34-years veteran at Karnat
Slide 5: Guided by Experienced and Independent Board
…Guided by Experienced and Independent Board With no shareholder holding >5% share capital in the Bank P Pradeep Kumar B R Ashok Srikrishnan H. Sekhar Rao Non-Executive Director Part Time Chairman, Independent Director MD & CEO Executive Director Partner, M S K C & Associates Former MD, State Bank o
Slide 6: Banking with a Legacy, Embracing the Future
Banking with a Legacy, Embracing the Future ▪ Foster cultural shift to business and sales orientation ▪ Benchmark product development with market ▪ Digitization & automation at all levels ▪ Enhance operational and cost efficiencies Focus on ▪ Simplify and digitize processes Core Bank ▪ Centralise op
Slide 7: Start Up @ 100th Year: Focused on RRR
Start Up @ 100th Year : Focused on RRR Focus on retail advances and deposits backed by digital analytics RETAIL Superior Value customer creation for experience stakeholders New Management Startup culture Digitalization / Partnerships Business facing organisation Prudent risk management Deep underwri
Slide 8: Strategic Roadmap
Strategic Roadmap “Start Up @ 100th Year”
Slide 9: Strategic Roadmap
Strategic Roadmap A. Delivering Excellence in Proven Core Competencies Overlaying New Technology Platform Through tech-driven Processes, Products & People targeted at rural and retail sector B. Creating a Performance-Driven Culture Rebuild Outward-Facing, Business-Centric teams C. Strengthening Fina
Slide 10: A. Driving Excellence in Proven Core Competencies
A. Driving Excellence in Proven Core Competencies Consistent Emphasis on our Strength Areas Our Legacy Building on Our Legacy ▪ Tradition with Innovation 13 Mn 1 in 401 ▪ Outbound Sales Culture Indians bank Happy customers 100 Year Legacy with us ▪ Startup-like Agility 37.4% 46.0% ▪ Capitalise on co
Slide 11: Continued Transition Towards Retail
A. Driving Excellence in Proven Core Competencies Continued Transition Towards Retail Retail “Feet on Street” for liabilities and expanding home loan book Strategies Business Correspondent partnerships to strengthen portfolio Sector Focus Tie-ups to grow retail reach Scale-up from 5 Retail Loan Proc
Slide 12: B. Creating a Performance Driven Culture
B. Creating a Performance Driven Culture Rebuild Outward-Facing, Business-Centric Teams Agility of Start-Ups Entrepreneurial practices, Digital-first accountability and ownership in execution, focused on improving TAT Cross-Functional Focus on client acquisition, service capabilities delivery and se
Slide 13: C. Strengthen Financial Position to Drive Profitability
C. Strengthen Financial Position to Drive Profitability Prioritise Retail and Government Accounts with Sustained Growth in Other Segments Key Capabilities in Place to Leverage Opportunities in the Government Business Empaneled as 'Agency Bank' of RBI Integrated on National Jan Samarth portal Authori
Slide 14: Targeted Performance Improvement to Boost Returns
C. Strengthen Financial Position to Drive Profitability Targeted Performance Improvement to Boost Returns Consolidation of financial position to build stakeholder value and enhanced return on equity 13
Slide 15: Digitalization Propelling Robust Book Growth: Digital-First Bank
D. Digitalization Propelling Robust Book Growth Moving Towards a Digital-First Bank Mobile Banking and Digital Transactions Lending BHIM-UPI Higher Mobile Banking and Digital % of Digital Underwriting on Transactions Overall Sanctions BHIM-UPI Transactions Digital 90.0% 93.5% Personal Loan : 100% UP
Slide 16: Foundation in Place to Drive Next Leg of Digital Innovation
D. Digitalization Propelling Robust Book Growth Foundation in place to Drive Next Leg of Digital Innovation State-of-the-art ‘Technology & Digital Hub’ at Bengaluru ▪ ‘Project KBL-VIKAAS’ to drive transformation initiatives advised by ▪ 40,000 sq. ft. super built-up area Boston Consulting Group ▪ 37
Slide 17: Digital First Bank Driven by Fintech Partnerships
D. Digitalization Propelling Robust Book Growth Digital First, New-Age Private Sector Bank Driven by Fintech Partnerships Co-branded Credit Cards Co-Lending General, Health and Life Insurance Exploring partnerships with new age Tie-up with reputed NBFC and MFI as Bajaj Allianz, Universal Sompo, tech
Slide 18: Our Strengths
Karnataka Bank Our Strengths
Slide 19: Key Strengths
Key Strengths 99 years of legacy delivering consistent profit and dividend Diversified offerings with established brand equity Strong geographical footprint Key Highlights Healthy asset quality and financials backed by prudent risk management capabilities Superior customer service and retention Digi
Slide 20: Longstanding Legacy Delivering Consistent Growth
Longstanding Legacy Delivering Consistent Growth Key Highlights over 5 Years Mar’18 Mar’23 Mar’18 Mar’23 INR INR 3.1% 3.7% 70,374 Cr 99,057 Cr Total Assets NIM % INR INR 47.6% 47.1% 62,871 Cr 87,368 Cr Total Deposits Cost to Income % 4.9%/ 3.7%/ 27.9% 33.0% 3.0% 1.7% CASA Ratio GNPA/NNPA 6.1% 4.7% 6
Slide 21: Diversified Offerings With Established Brand Equity
Diversified Offerings With Established Brand Equity Product & Services for Everyone Retail and Personal Banking MSME Agriculture Banking ▪ Housing ▪ Working capital finance for traders & manufacturing ▪ Agriculture & allied activities industries ▪ Vehicle ▪ Farm development ▪ Term loans & infrastruc
Slide 22: A Trusted Brand Identity
Diversified Offerings With Established Brand Equity A Trusted Brand Identity 21
Slide 23: Strong Geographical Footprint
Strong Geographical Footprint A Trusted Brand Identity Steady Growth in Locations Served 1,445 1,463 1,474 885 901 877 7 4 2 8 21 1 9 10 2 Mar-22 Dec-22 Mar-23 1 Branches ATM & Recyclers 3 16 7 20 5 Presence Across All Tiers 8 53 Rural Metro 22.8% 27.8% 26 Top 5 States Karnataka 575 7 43 Total 575 M
Slide 24: Financial Highlights
Financial Highlights KX Karnataka Bank
Slide 25: Karnataka Bank at a Glance
Financial Highlights Karnataka Bank at a Glance Particulars Q1FY24 Q1FY23 Growth Y-o-Y FY23 FY22 Growth Y-o-Y Total Assets 99,120 94,084 5.4% 99,058 91,584 8.2% Advances/(% Retail Advances) 61,489/(50.6%) 58,359/(49.9%) 5.4% 59,952/(51.5%) 56,783/(52.2%) 5.6% Deposits 86,960 80,577 7.9% 87,368 80,38
Slide 26: Liability Profile
Liability Profile Deposit Profile (in INR Cr) Retail Term Deposit Breakup (Jun-23) Above 5 cr 2 cr to 5 cr 3.0% 87,368 86,960 4.0% 75,655 80,387 80,577 68,452 71,785 62,871 33% 32% 2% 32% 33% 33% 5% 28% 29% 28% 70% 71% 69% 67% 67% 67% 68% 67% FY18 FY19 FY20 FY21 FY22 FY23 Q1FY23 Q1FY24 Term deposit
Slide 27: Advances
Advances Advances Profile (in INR Cr) 59,952 61,489 56,964 56,783 58,359 54,828 51,516 47,252 42.9% 45.5% 47.8% 50.3% 49.9% 50.7% 45.1% 53.0% 26.9% 28.7% 29.5% 27.8% 27.6% 31.9% 29.2% 33.8% 27.3% 30.3% 25.8% 20.4% 20.2% 20.9% 21.5% 13.2% FY18 FY19 FY20 FY21 FY22 FY23 Q1FY23 Q1FY24 Large Corporate Mi
Slide 28: Asset Quality
Asset Quality GNPA & NNPA Provision Coverage (PCR) % 83.5% 4.9% 4.8% 4.9% 80.9% 4.4% 76.8% 3.9% 4.0% 73.5% 3.7% 3.7% 70.0% 64.7% 58.5% 3.0% 3.0% 3.1% 3.2% 54.6% 2.4% 2.2% 1.7% 1.4% FY18 FY19 FY20 FY21 FY22 FY23 Q1FY23 Q1FY24 FY18 FY19 FY20 FY21 FY22 FY23 Q1FY23 Q1FY24 Gross NPA % Net NPA % GNPA Brea
Slide 29: Asset Quality: Restructured Portfolio
Asset Quality Restructured Portfolio Standard Restructured Portfolio – Movement Standard Restructured Portfolio – Break-up Personal Loans Particulars (INR cr) Q1 FY24 2.9% Others Agriculture Opening balance 0.5% 3.3% 2,571 CRE 5.6% Fresh restructuring during the period 76 MSME Increase in balance in
Slide 30: Profitability
Profitability Operating Revenue (INR Cr.) Other Income1 (INR Cr.) 4,178 3,678 1,155 3,292 3,445 1,003 2,812 2,907 861 870 818 729 1,139 820 272 289 FY18 FY19 FY20 FY21 FY22 FY23 Q1FY23 Q1FY24 FY18 FY19 FY20 FY21 FY22 FY23 Q1FY23 Q1FY24 Operating Profit (INR Cr.) PAT (INR Cr.) 12% 24% 21% 22% 20% 20%
Slide 31: Key Ratios
Key Ratios Net Interest Margin Cost to Income ratio 3.7% 3.7% 3.3% 52.6% 3.2% 3.2% 50.1% 49.7% 49.7% 2.9% 2.9% 2.8% 47.6% 47.1% 47.2% 45.7% FY18 FY19 FY20 FY21 FY22 FY23 Q1FY23 Q1FY24 FY18 FY19 FY20 FY21 FY22 FY23 Q1FY23 Q1FY24 Return on Equity Return on Assets 17.7% 1.5% 15.4% 1.2% 8.5% 0.6% 7.4% 7
Slide 32: Key Ratios
Key Ratios CRAR RWA/Total Assets 17.4% 17.0% 15.7% 15.5% 14.9% 13.2% 63.9% 60.6% 63.3% 12.0% 12.7% 58.1% 56.6% 53.9% 55.7% 55.4% FY18 FY19 FY20 FY21 FY22 FY23 Q1FY23 Q1FY24 FY18 FY19 FY20 FY21 FY22 FY23 Q1FY23 Q1FY24 LCR Credit Cost % 328.2% 2.4% 308.4% 311.6% 2.3% 302.1% 268.6% 246.6% 215.5% 1.5% 1
Slide 33: 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