Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — FY2020 Earnings Presentation
37 slides from Kotak Mahindra Bank's earnings presentation, May 14, 2020
Slide 1: Cover letter to stock exchanges
14th May 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 Building, Plot No.C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, Dalal Street, Bandra (East), Mumbai 400 00
Slide 2: Kotak Mahindra Group Investor Presentation FY20
Kotak Mahindra Group Investor Presentation FY20 14th May, 2020
Slide 3: Kotak - Diversified & Integrated Financial Services
Kotak - Diversified & Integrated Financial Services KOTAK MAHINDRA BANK Commercial Bank & Parent Company Kotak Kotak Mahindra Kotak Investment Kotak Mahindra Mahindra Kotak Securities Investments Advisors Capital Company Prime ∞ Car Finance ∞ Investments ∞ Alternate Assets ∞ Investment ∞ Stock Broki
Slide 4: The Journey So far
The Journey So far… Ability to Identify and Capitalize on Opportunities Bill Investment Mutual Alternate ∞ ING Vysya Merger Discount Banking Fund Securities Assets ∞ General Insurance 1985 1991 1998 2001 2004 2014 2017 1990 1993 2000* 2003 2008 2017 Auto IPO Life BANK ARC ∞ Microfinance Finance Insu
Slide 5: 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 6: Geographical Presence
Geographical Presence 3 Branches 1,600* [No./%] North 11 485/30% 90 10 71 102 West East 493/31% 122/8% 1 86 66 5 22 1 South 1 500/31% 155 46 9 42 22 Branch Classification 2 19 329 87 Urban, 21.3% 7 Metro, 44.5% 109 No of ATMs 180 Semi Urban, 18.4% 90 2,519 34 Rural, 15.8% 5 * Does not include branch
Slide 7: Our Strengths
Our Strengths An integrated ∞ Balance Sheet, Market & Knowledge driven businesses encompassing all customer & geographic segments financial services ∞ Wide spectrum of financial products and services help to balance against market cycles, hedge against conglomerate with a downturns in specific segme
Slide 8: Our Strategy
Our Strategy ∞ To be amongst the most trusted financial services conglomerates in India ∞ Enhance customer experience backed by wide spectrum of products, and using cost efficient, Enhance Customer convenient delivery channels including digital and technological initiatives Experience and Trust ∞ St
Slide 9: 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 24 Years 29 Years 28 Years Compliance, IT, Credit, ARD, Asset Corporate, HR & Marketing, Mgmt, Alternate In
Slide 10: Key Awards
Key Awards India’s best bank and Fastest growing mid- Best mid-size bank World's best bank in Best domestic bank size bank Business World Business World the emerging markets Asiamoney Best Bank Magna Awards 2019 Euromoney Awards for Awards 2019 Magna Awards 2019 Excellence 2018 Best Cash Kotak 811 &
Slide 11: Business Performance Consolidated
Business Performance Consolidated 10
Slide 12: Consolidated Highlights – FY20
Consolidated Highlights – FY20 CAR CAR PAT LOANS BOOK VALUE 19.8% 19.8% PER EQUITY 17.9% [17.9%] SHARE ` 8,593 cr Tier I ` 249,879 cr ` 348.3 [` 7,204 cr] 19.2% [` 243,462 cr] [` 302.7] [17.4%] NIM* CAPITAL & NET NPA TOTAL RESERVES ASSETS 4.59% ` 67,134 cr 0.70% ` 443,173 cr [4.24%] [` 58,280 cr] [0
Slide 13: Consolidated Advances, AUM & Investments
Consolidated Advances, AUM & Investments Advances - 31-Mar-20 (` 249,879 cr) AUM - 31-Mar-20 (` 225,819 cr) Others CC PL, BL & CD 2% 4% 3% Cons Bk WC (Secured) 2,588 32,080 8% Corp & 1% Business Bkg 14% 38% 22,410 10% 42% 94,436 Home Loans & LAP 7% 19% 15,118 26% Auto loans CV/CE 8% 59,187 7% Agricu
Slide 14: PAT
PAT ` cr FY20 FY19 FY18 Kotak Mahindra Bank 5,947 4,865 4,084 Kotak Mahindra Prime 673 599 590 Kotak Mahindra Investments 270 207 245 Kotak Securities 550 452 531 Kotak Mahindra Life Insurance 608 507 413 Kotak Mahindra Group – Consolidated PAT FY20 FY19 FY18 8,593 7,204 6,201 13
Slide 15: Capital and Reserves & Surplus
Capital and Reserves & Surplus ` cr 31-Mar-20 31-Mar-19 31-Mar-18 Kotak Mahindra Bank 49,015 42,898 37,482 Kotak Mahindra Prime 6,088 5,416 4,816 Kotak Mahindra Investments 1,860 1,590 1,382 Kotak Securities 4,529 3,979 3,527 Kotak Mahindra Life Insurance 3,354 2,745 2,238 Kotak Mahindra Group– Cons
Slide 16: Business Performance Standalone
Business Performance Standalone 15
Slide 17: Standalone Highlights – FY20
Standalone Highlights – FY20 PPOP PAT NIM* LOANS ` 10,021 cr ` 5,947 cr 4.62% ` 219,748 cr [` 8,348 cr] [` 4,865 cr] [4.31%] [` 205,695 cr] NET NPA CAR ROA CASA 17.9% [17.5%] Tier I 0.71% 1.87% 56.2% [0.75%] 17.3% [52.5%] [16.9%] [1.69%] Figures in [brackets] are Y19 numbers * Doesn’t include divide
Slide 18: Advances
Advances 31-Mar-20 (` 219,748 cr) Advances CC Others ` cr 31-Mar-20 31-Mar-19 31-Mar-18 PL, BL & CD 2% 3% 4% Cons Bank Corp & Business Bkg 84,855 80,104 70,402 WC (Secured) CV/CE 19,253 19,706 15,202 9% Agriculture Division 21,188 20,625 17,861 Corp & Business Tractor Finance 7,569 6,367 5,054 Bkg H
Slide 19: Deposits – CASA
Deposits – CASA CASA (` cr) CASA % 56.2% 52.5% 50.8% ∞ Savings Deposit crossed ` 1 lakh crore in FY20 104,609 ∞ 811 Accounts opened 79,685 65,529 in FY20: ~44 lakh Continuing to open in 43,013 38,901 32,246 April 20 and May 20, Mar-20 Mar-19 Mar-18 during lockdown. CA SA Current run rate in Wholesal
Slide 20: Deposits – FY20 Highlights
Deposits – FY20 Highlights ∞ Total Deposits (excl. CDs) grew ∞ CASA, and TDs below ` 5 cr 20% YoY to ` 258,409 crore constitute 86% (PY: 81%) of total deposits ∞ Total Deposits grew 16% YoY to ∞ TDs below ` 1 cr were ` 63,549 ` 262,821 crore cr (PY: ` 55,279 cr) ∞ TD Sweep: 6.6% (PY: 6.5%) of ∞ Term
Slide 21: Asset Quality
Asset Quality Asset Quality ` cr 31-Mar-20 31-Mar-19 31-Mar-18 GNPA 5,027 4,468 3,825 ∞ Total provisioning towards advances NNPA 1,558 1,544 1,665 (including specific, GNPA (%) 2.25% 2.14% 2.22% standard, COVID NNPA (%) 0.71% 0.75% 0.98% provisions) higher SMA2 (Amt. & % of Net than the GNPA of the
Slide 22: Specific Sector Exposure
Specific Sector Exposure Specific Sectors as per Basel III Outstanding* (` cr) 31-Mar-20 % 31-Mar-19 % 31-Mar-18 % NBFCs 11,294 4.0% 11,081 4.0% 12,033 5.1% Of which HFC 4,548 1.6% 3,037 1.1% 3,071 1.3% CRE (excl. LRD) 6,251 2.2% 4,666 1.7% 4,581 1.9% LRD 4,457 1.6% 4,574 1.6% 2,904 1.2% Total inclu
Slide 23: Profit and Loss Account
Profit and Loss Account ` cr FY20 FY19 FY18 Net Interest Income 13,500 11,206 9,472 Other Income 5,372 4,657 4,112 Net Total Income 18,872 15,863 13,584 Employee Cost 3,878 3,159 2,930 Other Operating Expenses 4,973 4,356 3,496 Operating Expenditure 8,851 7,515 6,426 Pre Provisions Operating Profit
Slide 24: Balance Sheet
Balance Sheet ` cr 31-Mar-20 31-Mar-19 31-Mar-18 Capital and Reserves & Surplus 49,015 42,898 37,482 Deposits 262,821 225,880 192,643 CA 43,013 38,901 32,246 SA 104,609 79,685 65,529 Term Deposits 115,199 107,294 94,868 Of which: TD Sweep 17,467 14,777 11,910 Borrowings 37,993 32,249 25,154 Other Li
Slide 25: Business Performance Key Subsidiaries
Business Performance Key Subsidiaries 24
Slide 26: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance ` cr FY20 Individual New Business Product Mix# FY20 Indian Embedded Value (IEV)* 8,388 Participating Products 40.5% Value of New Business (VNB) 643 Non-Participating Products 39.0% VNB Margin (%) 28.8% ULIP 20.5% Highlights Individual New Business Channel Mix FY20 ∞ Ind
Slide 27: Kotak Mahindra Life Insurance (Continued)
Kotak Mahindra Life Insurance (Continued) Gross Written Premium (` cr) Highlights ∞ Gross Written Premium growth 26.6% YoY 10,340 8,168 6,599 ∞ Ranked 6th (PY: 6th) on New Business Premium, 28.4% YoY growth at INR 5,106 cr in FY20 2,990 837 2,086 ∞ Gross Individual Premium growth 20.8% YoY 515 1,608
Slide 28: Kotak Mahindra Prime
Kotak Mahindra Prime Customer Assets* (` cr) & NNPA (%) 30,000 0.60% 0.60% 25,000 20,271 20,104 0.50% 20,000 17,480 0.40% 0.44% 15,000 0.37% 0.30% 10,000 0.20% 5,000 0.10% 7,384 7,997 7,914 0 0.00% Mar-20 Mar-19 Mar-18 Car Others Net NPA (%) ` cr FY20 FY19 FY18 NII 1,229 1,104 1,115 291 288 256 COVI
Slide 29: Kotak Mahindra AMC & Trustee Company
Kotak Mahindra AMC & Trustee Company Average Assets Under Management (` cr) - Average Assets Under Management (` cr) - Overall Equity % of overall 41.6% 39.7% 38.5% AUM 173,394 72,066 138,215 54,830 115,399 44,475 FY20 FY19 FY18 FY20 FY19 FY18 Highlights ∞ Overall Ranking on AAUM improved to 6th in
Slide 30: Kotak Securities
Kotak Securities ` cr FY20 FY19 FY18 Total Income 1,690 1,582 1,655 Profit Before Tax 738 680 796 Profit After Tax 550 452 531 ∞ Market share in Cash Segment FY20: 9.1% (PY: 9.1%) ∞ 1,315 branches, franchises and referral co-ordinators 29
Slide 31: Kotak Mahindra Investments
Kotak Mahindra Investments Customer Assets* (` cr) & NNPA (%) 11,000 0.70% 10,000 0.60% 9,000 0.67% 0.50% 8,000 9,242 7,000 7,900 0.40% 6,000 5,000 0.30% 4,000 5,875 0.29% 0.20% 3,000 0.01% 0.10% 2,000 1,000 0.00% Mar-20 Mar-19 Mar-18 xxx Customer Assets Net NPA (%) ` cr FY20 FY19 FY18 NII 362 290 2
Slide 32: Focus on Digital
Focus on Digital 31
Slide 33: Digital Platforms
Digital Platforms New Features Q4FY20 • Google Assistant integration (1st Bank in India) • Recurring Deposit sourced Customers can view balance through Google assistant ~93% digitally • UPI 2.0 Customers can create, approve, revoke mandates • Fixed Deposit sourced ~80% digitally • My policies Custom
Slide 34: Digital Payments, Lending, API Banking & Partnerships
Digital Payments, Lending, API Banking & Partnerships Key Highlights Key Trends 1.74X growth of consumer volumes in Open Banking has enabled Q4FY20 over Q4FY19 91 API relationships YTD FY20 with ~15.9X transaction growth in Q4FY20 over Q4FY19 39X growth of registered UPI merchant base in Q4FY20 over
Slide 35: Digital Update – Subsidiaries
Digital Update – Subsidiaries Kotak Securities 76% 119% growth YoY* growth YoY* in Online in Mobile Total ADV Total ADV *Q4FY20 v/s Q4FY19 Kotak Life Insurance Kotak General Insurance Individual Policies sourced in Q4FY20 through 94% Genie (Tablet based end to end sales solution) Increasing its digi
Slide 36: Disclaimer
Disclaimer By attending the meeting where this Presentation or accompanying slides (“Presentation”) is made, or by reading the Presentation materials, you agree to be bound by the limitations contained herein and to maintain absolute confidentiality regarding the information disclosed in this Presen
Slide 37: Thank You
Thank You 36