Karur Vysya Bank Ltd. · NSE:KARURVYSYA
Karur Vysya Bank — Q2 FY2022 Earnings Presentation
39 slides from Karur Vysya Bank's earnings presentation, Nov 8, 2021
Slide 1: Intimation of Investor Presentation to exchanges
Smart aoay to bank IRC: F48: 114:565:202 1 08.11.2021 The Manager, The Manager, National Stock Exchangeof India Ltd, Bombay Stock Exchange Ltd, Exchange Plaza, 5th Floor, Phiroze Jeejeebhoy Towers, Plot No. C/ 1, 'G ' Block, Dalai Street, Bandra- Kurla Complex, Mumbai - 40000 1 Bandra (East), Mumbai
Slide 2: Investor Presentation 30.09.2021
30.09.2021 Investor Presentation
Slide 3: Disclaimer
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 not been verified by anyon
Slide 4: Quarter in focus
Quarter in focus
Slide 5: Strong presence in India's fast growing hinterland
Strong presence in India’s fast growing hinterland Category 30.09.21 31.03.21 31.03.20 Branches 781 780 779 ATM’s + Cash Recyclers 2,234 2,236 2,224 Business Correspondents 140 139 133 1 6 1 12 No. of Branches 6 Category BBU* CBU* Other offices# Metro 201 10 9 8 1 6 1 Urban 156 4 - - 15 4 1 14 Semi
Slide 6: Highlights (Quarter)
Highlights (Quarter) • Total business crossed Rs.1,19,000 crore • Overall advances grew by 7% yoy and stood at Rs. 53,850 crore Business • Total deposits grew by 7%; at stood Rs.65,410 crore • CASA share at 35%; Saving deposit grew by 14% • Net profit stood at Rs. 165 crore grew by 43%; highest in l
Slide 7: Key Performance Indicators – KPIs (quarter)
Key Performance Indicators – KPIs (quarter) (Rs. crore) Growth Particulars Sep 21 Sep 20 Jun 21 Mar 21 Dec 20 Particulars %/bps Net interest income 680 601 13 638 613 584 Operating profit1 374 360 4 409 187 257 Net profit 165 115 43 109 104 35 Advances (Gross) 53,850 50,408 7 52,315 52,820 52,113 De
Slide 8: Details of reclassification as per RBI Directions on Financial Statements Disclosure
(Rs. crore) Details of reclassification as per RBI Directions on Financial Statements Disclosure Regulatory framework Requirement Impact Depreciation on investments has been classified under other income which was hitherto classified under provision and contingencies ; recovery in Master Direction o
Slide 9: Profit & Loss Statement
(Rs. crore) Profit & Loss Statement Quarter Half year Particulars Growth % Growth % Sep 21 Sep 20 Sep 21 Sep 20 (YoY) (YoY) Net Interest Income 680 601 13 1,319 1,163 13 Other Income 163 183 (11) 364 484 (25) - Fee income 143 119 20 290 240 21 - Others1 20 64 (69) 74 244 (70) Total Income 843 784 8
Slide 10: Key Ratios
Key Ratios Quarter Half year Particulars Sep 21 Sep 20 Sep 21 Sep 20 Cost of Deposits (%) 4.32 5.06 4.42 5.21 Yield on Advances (%) 8.62 9.26 8.59 9.29 Cost of Funds (%) 4.36 5.09 4.46 5.25 Yield on Funds (%) 7.42 7.84 7.41 7.92 Net Interest Margin (%) 3.74 3.47 3.65 3.42 Spread (%) 3.06 2.75 2.95 2
Slide 11: Capital to Risk Weighted Assets Ratio – Basel III CRAR
(Rs. crore) Capital to Risk Weighted Assets Ratio – Basel III CRAR Particulars Sep 21 Sep 20 Jun 21 CRAR % 18.82 18.41 19.06 Total capital 7,488 7,207 7,524 Tier I capital 6,681 6,402 6,725 Tier II capital 807 805 799 RWA 39,782 39,156 39,471 Credit risk 31,914 31,379 31,599 Operational risk 6,071 6
Slide 12: Balance Sheet
(Rs. crore) Balance Sheet Particulars Sep 21 Sep 20 YoY (%) Capital & Liabilities Capital 160 160 - Reserves and Surplus 7,034 6,661 6 Deposits 65,410 61,122 7 Borrowings 1,158 1,383 (16) Other Liabilities and Provisions 2,112 1,849 14 Total 75,874 71,175 7 Assets Cash and Balances with RBI 3,365 2,
Slide 13: Optimising cost of borrowings
Optimising cost of borrowings Declining cost of deposits and cost of funds Quarter Half year Particulars Sep 21 Sep 20 Sep 21 Sep 20 Cost of Deposits (%) 4.32 5.06 4.42 5.21 Cost of Funds (%) 4.36 5.09 4.46 5.25 Improving CASA ratios Particulars Sep 21 Sep 20 Jun 21 Mar 21 CASA (%) 35 34 35 34 Avera
Slide 14: Driving growth across verticals
Driving growth across verticals
Slide 15: Total Business – growth
(Rs. crore) Total Business – growth Parameter Sep 21 Sep 20 YoY % Jun 21 Total Deposits 65,410 61,122 7 64,398 Gross Advances 53,850 50,408 7 52,315 Total Business 1,19,260 1,11,530 7 1,16,713 Deposit break up Parameter Sep 21 Sep 20 YoY % Jun 21 Demand Deposit 6,970 6,455 8 6,809 Saving Deposit 16,
Slide 16: Growing our books responsibly
(Rs. crore) Growing our books responsibly Particulars Sep 21 Sep 20 YoY % Jun 21 Agriculture 12,084 10,510 15 11,800 Retail (Personal Banking) 12,510 11,360 10 12,279 Commercial 17,231 16,421 5 16,504 Corporate 12,025 12,117 (1) 11,732 Gross Advances 53,850 50,408 7 52,315 17056 16687 16095 15620 17
Slide 17: Retail portfolio distribution
(Rs. crore) Retail portfolio distribution Particulars Sep 21 Sep 20 YoY % Jun 21 Housing loan 5,226 4,788 9 5,057 Jewel loans 1,778 1,221 46 1,806 Mortgage (LAP) loans 1,632 1,635 - 1,599 Vehicle loans 1,040 979 6 1,007 Personal loans 437 566 (23) 478 Educational loans 170 196 (13) 172 Others loans
Slide 18: Commercial book ticket size and gold loan portfolio
(Rs. crore) Driving growth across verticals Ticket size of Commercial Book Gold Loan portfolio (Bank as a whole) 4% 30 16000 24 25 25 10% 23 14000 25 22 13206 13473 12000 12852 20 12069 11149 10000 86% 15 8000 6000 10 4000 5 < 5 crore >= 5 crore < 10 crore >= 10 crore 2000 0 0 Sep 20 Dec 20 Mar 21 J
Slide 19: Corporate Loan Book
(Rs. crore) Corporate Loan Book Standard Corporate advances > 100 crore 4200 8.0 5.5 5.5 5.5 5.1 2600 4.6 5.0 2554 2887 2927 2884 2453 1000 2.0 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Amount > 100cr % on advance Consortium/MBA Sole Banking NBFC Govt/PSU 14% 29% 6% 15% 19% Consortium 29% • ~71% of corpora
Slide 20: ECLGS Portfolio
(Rs. crore) ECLGS (Emergency Credit Line Guarantee Scheme) Portfolio Vertical wise Vertical Sep 21 Jun 21 Mar 21 Agriculture 5 4 5 Commercial 1,382 1,429 1,431 Corporate 745 730 721 TOTAL 2,132 2,163 2,157 Scheme wise Particulars O/s as on 30.09.2021 NPA ECLGS 1.0 1,731 37 ECLGS 2.0 382 - ECLGS 3.0
Slide 21: Sectoral composition
Sectoral composition Rs.53,850 crore Breakup of Industrial exposure (Rs. 14,502 crore) GEMS & JEWELLERY OTHER EXPOSURES 5% OTHERS NBFC 10% MINING AND 6% INFRASTRUCTURE 3% QUARRYING 15% Agri BILLS 2% 2% 2% MANUFACTURING CEMENT CONSTRUCTION SECTOR 3% 4% CRE 6% 27% ALL ENGINEERING 4% WOOD AND ITS PRODU
Slide 22: Secured Exposure
(Rs. crore) Secured Exposure Nature of security 30.09.2021 Exposure backed by - Letter of Credit 293 Govt. Guarantee (Emergency Credit Line Guarantee Scheme- ECLGS) 2,132 Liquid Assets ^ 14,221 Vehicles 2,537 Commodities 140 Total (1) 19,323 Exposure secured by Immovable Property ( Coverage) > 100 2
Slide 23: Portfolio performance
Portfolio performance Portfolio Performance SMA 30+ - 1.86% 117 100 107 110 Balance in INR , Base Mar.31,2017=100 SMA 1 - 1.33% 94 SMA 30+ SMA 2 - 0.53% 75 76 63 44 44 46 45 42 43 34 23 23 26 16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20
Slide 24: Liability Franchise : Predominantly Retail
Liability Franchise : Predominantly Retail 25% Term Deposits 11% 65% Demand Deposits • Term deposits are Savings Deposits primarily retail deposits • 95% of term deposits are < Rs.5 Cr Low concentration of Deposits Low dependence on wholesale deposits 5% 11% 6% 6% 6% 6% 6% 21% 63% FY 18 FY 19 FY 20
Slide 25: Investment Portfolio
Investment Portfolio Investments (Rs. crore) Investment Category 15.07% 18830 16465 16879 Sep 20 Mar 21 Sep 21 84.93% HTM AFS Investment Composition Duration 12.00% 0.80% AFS HFT HTM Total 2.24 - 3.54 3.38 SLR Shares Yield on Investments Debentures/CD/MF/CP 5.43% 5.30% 5.37% 87.20% Out of 12%, Secur
Slide 26: Disciplined approach to reduce the share of stressed assets
Disciplined approach to reduce the share of stressed assets
Slide 27: Movement of NPA
(Rs. crore) Movement of NPA Particulars Jun 21 - Sep 21 Jun 20 - Sep 20 Gross NPAs Opening Balance 4,167 4,056 Additions during the period 164 32 Reductions during the period 360 89 Closing Balance 3,972 3,998 Net NPAs Opening Balance 1,845 1,585 Additions during the period (159) (99) Reductions 148
Slide 28: Vertical wise NPA and Collection efficiency
(Rs. crore) Vertical wise NPA Advances O/s. NPA as on NPA Additions NPA Reduction Total NPA VERTICAL Sep 21 Jun21 Q2 Q2 Sep 21 Agriculture 12,084 260 9 16 253 Retail (Personal Banking) 12,510 418 35 68 385 Commercial 17,231 1,543 60 180 1,423 Corporate 12,025 1,946 60 96 1,910 TOTAL 53,850 4,167 164
Slide 29: NPAs & Provisions
(Rs. crore) NPAs & Provisions 8.79 8.68 7.85 4450 4213 4143 7.38 3972 6.56 3016 2420 2351 2366 2377 4.98 1863 1961 1809 1719 4.46 1538 1091 3.92 3.41 2.99 Mar-18 Mar-19 `Mar 20 Mar-21 Sep-21 Gross NPA Net NPA NPA Provision Mar-18 Mar-19 `Mar 20 Mar 21 Sep 21 Net NPA% Gross NPA% 0.8 72.70% 4.00% 68.9
Slide 30: Provisions and Contingencies
(Rs. crore) Provisions and Contingencies Quarter Half year Provision for Sep 21 Sep 20 Sep 21 Sep 20 NPA1 113 98 389 326 Standard Assets 8 7 4 8 Restructured Advances 56 - 63 - Other credit related items (7) 1 (11) - Covid-19 relief - 100 - 173 Total provision – credit related 169 205 444 506 Others
Slide 31: Restructured Accounts
(Rs. crore) Restructured Accounts Sep - 21 June - 21 Mar - 21 Particulars Standard NPA Standard NPA Standard NPA Resolution Framework - 2.0 723 13 90 3 - - COVID 19 - Resolution Framework 490 14 561 8 554 3 MSME 356 113 361 115 387 93 CDR - 3 - 3 - 3 Others* 10 215 16 191 16 293 Total 1,579 358 1,02
Slide 32: Movement of Standard Restructured Advances
(Rs. crore) Movement of Standard Restructured Advances Jun 21 to Sep 21 Jun 20 to Sep 20 Particulars A/c’s Amt. A/c’s Amt. A. Position at the beginning of the period 1,951 1,028 74 197 B. Addition during the period 1,608 561 1 1 C. Additions in existing A/c’s - 36 - 24 D. Addition through upgradatio
Slide 33: Sector-wise Standard Restructured Advances
(Rs. crore) Sector-wise Standard Restructured Advances S. Amount SECTOR Stressed Book Analysis N. Sep 21 Sep 20 1 Housing Loan 378 1 3364 3039 3200 2 Real Estate 229 - 3500 2090 2376 5.00 3 Textile 140 65 247 327 4 Infrastructure 120 2 3000 363 4.43 4.31 5 Basic Metal & its products 88 1 4.07 6 Trad
Slide 34: Building a strong digital ecosystem
Building a strong digital ecosystem
Slide 35: Building a strong digital ecosystem
Building a strong digital ecosystem DLite – KVB’s digital banking platform 31% 28.5+ lakh Growth in digital DLite application transactions in Q2 FY22 downloads over Q1FY22 2.5+ lakh 15.9+ lakh 92% Digital accounts Registered users of Share of digital opened Dlite transaction DLite – Digitally enable
Slide 36: Delivery Channels
Delivery Channels Mobile transactions volume (through Dlite) Cash Deposit Machines (Nos.) 575 581 243 253 565 222 533 534 146 FY 18-19 FY 19-20 FY 20-21 Sep-21 * Mar-18 `Mar- 19 `Mar- 20 `Mar- 21 `Sep- 21 Nos. in lakhs *Annualized Digital vs Branch Transaction (%) 88% 92% 12% 8% Qtr sep-20 Qtr sep-2
Slide 37: Dynamic workforce
Dynamic workforce Number of Employees Attrition Rate 7956 7935 7746 7663 3.9% 3.8% 7478 2.7% 2.4% 1.5% FY 18 FY 19 FY 20 FY 21 Sep-21 FY 18 FY 19 FY 20 FY 21 Sep-21 Leading to Improved Productivity 142 138 149 153 14 15 16 130 14 7.3 13 4.4 4.6 2.8 3.0 FY 18 FY 19 FY 20 FY 21 Sep-21 FY 18 FY 19 FY 2
Slide 38: Sustained Decade of Growth
(Rs. crore) Sustained Decade of Growth Year 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Paid up Capital 107 107 107 122 122 122 145 160 160 160 Reserves 2,601 2,978 3,219 4,124 4,451 4,723 6,066 6,205 6,440 6,800^ Owned funds 2,708 3,085 3,326 4,246 4,573 4,845 6,
Slide 39: Thank You
Thank You