Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q1 FY2021 Earnings Presentation
39 slides from Kotak Mahindra Bank's earnings presentation, Jul 28, 2020
Slide 1: Cover letter to stock exchanges
28th July 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 0
Slide 2: Investor Presentation Q1FY21
INVESTOR PRESENTATION Q1FY21
Slide 3: Standalone Highlights Q1FY21
Standalone Highlights Q1FY21 PPOP PAT NIM* LOANS ` 2,624 cr ` 1,244 cr 4.40% ` 203,998 cr [` 2,399 cr] [` 1,360 cr] [4.48%] [` 208,030 cr] NET NPA CAR# NII CASA 21.7% [17.8%] Tier I# 0.87% ` 3,724 cr 56.7% [0.73%] 21.1% [` 3,161 cr] [50.7%] [17.3%] Figures in [brackets] are Q1FY20 numbers *Doesn’t i
Slide 4: Profit and Loss Account
Profit and Loss Account ` cr Q1FY21 Q1FY20 Q4FY20 FY20 Net Interest Income 3,724 3,161 3,560 13,500 Other Income 774 1,317 1,489 5,372 Fee and Services 776 1,162 1,270 4,731 Others (2) 155 219 641 Net Total Income 4,497 4,478 5,049 18,872 Employee Cost 911 902 970 3,878 Other Operating Expenses 963
Slide 5: Fees & Services
Fees & Services ` cr Q1FY21 Q1FY20 Q4FY20 FY20 Distribution & Syndication Income 144 114 234 590 General Banking Fees 607 1,018 1,007 4,021 Others 25 30 29 120 Fees and Services 776 1,162 1,270 4,731 4
Slide 6: Deposits
Deposits CASA (` cr) Highlights CASA % 56.7% 50.7% 56.2% CASA & TDs TDs below below ` 5 cr, ` 1 cr as % of total deposits ` 67,643 cr 90% [82%] [` 60,003 cr] TD Sweep, as Cost of SA % of total deposits 7.2% [7.0%] 4.22% [5.51%] Wholesale floating rate SA 9,409 9,378 10,836 (included above) Average S
Slide 7: Customer Assets
Customer Assets 30-Jun-20 (` 216,819 cr) Customer Assets 30-Jun- 30-Jun- 31-Mar- ` cr 20 19 20 Home Loans & LAP 47,168 43,571 48,516 Consumer Bank WC 18,240 19,173 19,839 (Secured) PL, BL and Consumer 9,088 9,357 9,754 Durables Credit Cards 4,343 4,549 4,701 CV/CE 18,442 19,910 19,253 Agriculture Di
Slide 8: Specific Sectors Exposure
Specific Sectors Exposure Specific Sectors as per Basel III Outstanding* (` cr) 30-Jun-20 % 30-Jun-19 % 31-Mar-20 % NBFCs 12,304 4.5% 11,466 4.2% 11,294 4.0% :Of which HFC 4,921 1.8% 3,715 1.4% 4,548 1.6% CRE (excl LRD) 6,106 2.2% 4,468 1.6% 6,251 2.2% LRD 4,400 1.6% 4,417 1.6% 4,457 1.6% Total incl
Slide 9: Asset Quality
Asset Quality Asset Quality ` cr 30-Jun-20 30-Jun-19 31-Mar-20 Total provisioning towards GNPA 5,619 4,614 5,027 advances (including specific, NNPA 1,777 1,524 1,558 standard, COVID provisions) GNPA (%) 2.70% 2.19% 2.25% higher than the GNPA of the NNPA (%) 0.87% 0.73% 0.71% Bank PCR (excl standard
Slide 10: Balance Sheet
Balance Sheet ` cr 30-Jun-20 30-Jun-19 31-Mar-20 Capital & Reserves and Surplus 57,709 44,290 49,015 Deposits 261,524 232,931 262,821 CA 38,594 36,543 43,013 SA 109,754 81,580 104,609 Term Deposits 113,176 114,808 115,199 Of which: TD Sweep 18,884 16,375 17,467 Borrowings 47,920 27,242 37,993 Other
Slide 11: COVID Impact and Response
COVID Impact and Response COVID-19 has adversely impacted near term growth outlook globally as well as domestically. RBI, ratings agencies, economists, banks have projected GDP de-growth in FY21 The Bank’s priorities have been the safety of its employees, and continuity of customer service Most
Slide 12: Digital Platforms
Digital Platforms New Features Q1FY21 • Sovereign Gold Bond • Recurring Deposit sourced ~97% digitally Customers can apply to buy SGB on Mobile App • Keya Chatbot • Ability to reschedule delivery of packages • Fixed Deposit sourced • Live chat for Privy customers ~87% digitally • Added skills for Ne
Slide 13: Digital Payments, API Banking & Partnerships
Digital Payments, API Banking & Partnerships Key Highlights Key Trends 1.7X growth of consumer volumes in Open Banking has enabled Q1FY21 over Q1FY20 new 10 API relationships in Q1 FY21 with ~11.6X transaction growth in Q1FY21 over Q1FY20 21X growth of registered UPI merchant base as at end of Q1FY2
Slide 14: Initiatives to address Covid-19
Initiatives to address Covid-19 • Donation to PM Cares Fund was launched on Website, Net and Mobile Banking • Launched a seamless process for direct fund transfer on Digital Channels • Online application form for Installment moratorium with OTP based authentication • A new website section to educate
Slide 15: Consolidated Highlights Q1FY21
Consolidated Highlights Q1FY21 PAT CAR# CUSTOMER BOOK VALUE 23.0% ASSETS PER EQ. [18.4%] SHARE ` 1,853 cr Tier I# ` 245,167 cr ` 383.8 [` 1,932 cr] 22.5% [` 255,084 cr] [` 312.8] [17.9%] NIM* CAPITAL & NET NPA TOTAL RESERVES ASSETS 4.44% ` 76,443 cr 0.89% ` 458,618 cr [4.41%] [` 60,231 cr] [0.71%] [
Slide 16: Consolidated PAT
Consolidated PAT ` cr Q1FY21 Q1FY20 Q4FY20 FY20 Kotak Mahindra Bank 1,244 1,360 1,267 5,947 Kotak Mahindra Prime 68 153 161 673 Kotak Mahindra Investments 43 63 77 270 Kotak Securities 169 110 163 550 Kotak Mahindra Capital 6 45 (7) 79 Kotak Mahindra Life Insurance 161 134 165 608 Kotak Mahindra Gen
Slide 17: Entity wise Capital & Reserves and Surplus
Entity wise Capital & Reserves and Surplus ` cr 30-Jun-20 30-Jun-19 31-Mar-20 Kotak Mahindra Bank 57,709 44,290 49,015 Kotak Mahindra Prime 6,157 5,568 6,088 Kotak Mahindra Investments 1,902 1,652 1,860 Kotak Securities 4,698 4,089 4,529 Kotak Mahindra Capital 628 588 622 Kotak Mahindra Life Insuran
Slide 18: Kotak Mahindra Prime
Kotak Mahindra Prime Customer Assets* (` cr) ` cr Q1FY21 Q1FY20 Q4FY20 FY20 NII 300 299 313 1,229 Other Income 12 63 99 291 NII and Other Income 312 362 412 1,520 Profit Before Tax 93 235 203 923 Profit After Tax 68 153 161 673 NNPA (%) 1.07 CAR (incl unaudited profits) (%) 26.2 ROA (%) - annualised
Slide 19: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance Gross Written Premium (` cr) Highlights 1,207 1,640 3,865 10,340 Individual APE NB premium grew 8% YoY against industry de-growth of 18% Renewal premium is affected by extension of grace period and lockdowns Individual Protection share to APE grew from 6.2% in Q1F
Slide 20: KLI - Digital Update
KLI - Digital Update Empowering Distribution Enhancing Customer Experience Digital Pre-Sales & Sales Whatsapp servicing launched for customers, 15k MAU Over 6 lac activity nudges for sales on CRM 11k MAU on KAYA, customer chatbot Boost, an agent engagement app, connected 10,000+ 38k MAU on online cu
Slide 21: GI & KS - Digital Update
GI & KS - Digital Update Kotak General Insurance Digital channels The Bank sources contributed to close to 50% business 94% Digital more than 35% digitally through BPoS, payments in of business in end to end issuance Q1FY21 Q1FY21 system Kotak Securities 21% 79% growth YoY growth YoY in in Online Mo
Slide 22: Kotak Securities
Kotak Securities Market ADV (` ‘000 cr) ADV (` cr) - KS 1,453 1,269 1,577 1,443 Kotak Securities (` cr) Q1FY21 Q1FY20 Q4FY20 FY20 Total Income 459 411 463 1,690 Profit Before Tax 225 168 218 738 Profit After Tax 169 110 163 550 Market Share* (%) 1.6 *excluding BSE Derivative segment Market Share in
Slide 23: AUM & RV
AUM & RV 30th Jun, 2020 30th Jun, 2019 AUM ` 259,781 cr AUM ` 237,216 cr Relationship Value of Wealth + Priority + Investment Advisory as on 30th Jun, 2020 ~ ` 282,000 cr 22
Slide 24: Kotak Mahindra AMC & Trustee Co.
Kotak Mahindra AMC & Trustee Co. Average Assets Under Management (` cr) - Overall Average Assets Under Management (` cr) - Equity ` cr Q1FY21 Q1FY20 Q4FY20 FY20 Highlights Profit Before Overall Market share on AAUM rose to 95 111 117 454 Tax 6.8% in Q1FY21 (Q1FY20: 6.3%) Profit After 71 73 88 337
Slide 25: Geographical Presence
Geographical Presence 3 Branches 1,600* [No./%] North 11 Branches distributed 485/30% 90 10 across various geographies 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 7 109 No of ATMs 180 90 2,516 34 24 * Does not include branches in DI
Slide 26: Group Profile
GROUP PROFILE
Slide 27: 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 28: 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 29: 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 30: 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 31: 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 32: The Path of Leadership
The Path of Leadership Attract & Retain Talent - High degree of stability within Risks Management the management team, many Strong Capital Position have been with the Group for - Extensive on-the-ground over 15 years - Capital adequacy amongst the presence and superior highest in the Indian banking
Slide 33: Bank Awards & Recognition
Bank Awards & Recognition Banker’s Choice Awards - Best Cash Mgt Bank India Banking Summit & - Best Supplier Awards 2019 Relationship Mgt - Best product Innovator - Best E-commerce of the year for Initiative, Application Whatsapp Banking or Programme: “Kotak - Best Customer Service ALLPAY” AsiaMoney
Slide 34: Awards and Recognition
Awards and Recognition Thomson Reuters Lipper India 2019 fund Awards – India Fund Award for Kotak Equity Arbitrage Fund FinanceAsia Country Awards Regular Plan–Growth Option (5 yrs & 10 yrs) 2020 Best Private Bank (India) Best Value Creater Fund Debt : Business 2019 Finance Asia Country Awards Today
Slide 35: Talent: Professional Entrepreneurs at work
Talent: Professional Entrepreneurs at work DIPAK GUPTA Joined Kotak in 1992; First charge | Senior Manager, Kotak Mahindra Finance Current charge | Joint Managing Director, Kotak Mahindra Bank On being a professional entrepreneur | I used to be an engineer and then a consultant. My first job a
Slide 36: Talent: Professional Entrepreneurs at work
Talent: Professional Entrepreneurs at work GAURANG SHAH Joined Kotak in 1996; First charge | Chief Operating Officer, Kotak Mahindra Primus; Current charge | Whole-time Director, Kotak Mahindra Bank On being a professional entrepreneur Came from corporate finance background & joined Kotak’s Ca
Slide 37: Talent: Professional Entrepreneurs at work
Talent: Professional Entrepreneurs at work JAIMIN BHATT Joined Kotak in 1995; First charge | Proprietary Investments Current charge | Group President - Group CFO, Kotak Mahindra Bank On being a professional entrepreneur | My initial work at Kotak was in the area of Proprietary Investments, whe
Slide 38: Talent: Professional Entrepreneurs at work
Talent: Professional Entrepreneurs at work NILESH SHAH Joined Kotak in 2015; First charge | Managing Director – Kotak Mahindra Asset Management Co. Ltd. Current charge | Managing Director – Kotak Mahindra Asset Management Co. Ltd. On being a professional entrepreneur |We are in the business of
Slide 39: 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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