Karur Vysya Bank Ltd. · NSE:KARURVYSYA
Karur Vysya Bank — Q1 FY2023 Earnings Presentation
36 slides from Karur Vysya Bank's earnings presentation, Jul 25, 2022
Slide 1: Intimation of Investor Presentation to Stock Exchanges
Sstart aoay to bank IRC: F48: 113:263:2022 25.07.2022 The Manager, The Manager, National Stock Exchange of 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 -- 400001 Bandra (East), Mumbai
Slide 2: Q1 FY 2023 Investor Presentation
Q1 FY 2023 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 30.06.22 31.03.22 31.03.21 Branches 789 789 780 ATM’s + Cash Recyclers 2,237 2,223 2,236 1 6 1 12 No. of Branches 6 Category BBU* CBU* Other offices^ Metro 203 10 9 10 1 6 1 Urban 156 3 - - 15 4 1 14 Semi Urban 303 2 - - 1 Rural 127 - - - 5
Slide 6: Key Highlights for the Quarter
Key Highlights for the Quarter Gross Advances Rs.59,612 cr NIM 3.82% up by 14% YoY Cost to Income 49.68% Deposits Rs. 71,168 cr up by RoA 1.09% 11% YoY RoE 11.69% CASA @ 36% CRAR 19.21% Tier I at 17.25% Operating Profit Rs. 475 cr GNPA 5.21% up by 15% YoY NNPA 1.91% Net Profit Rs. 229 cr up by PCR (
Slide 7: Key Performance Indicators – KPIs (Quarter)
(Rs. crore) Key Performance Indicators – KPIs (Quarter) Growth Particulars Jun 22 Jun 21 Mar 22 Dec 21 Sep 21 Particulars YoY Net interest income 746 638 17 710 686 680 Operating profit 475 412 15 441 401 375 Net profit 229 109 110 213 185 165 Advances (Gross) 59,612 52,315 14 57,550 55,793 53,850 D
Slide 8: Profit & Loss Statement (Quarter)
(Rs. crore) Profit & Loss Statement (Quarter) Particulars Jun 22 Jun 21 Growth % (YoY) Mar 22 Net Interest Income 746 638 17 710 Other Income 199 203 (2) 205 - Fee income 187 147 27 182 - Others 12 56 (79) 23 Total Income 945 841 12 915 Operating Expenses 470 429 10 474 - Employee expense 236 227 4
Slide 9: Key Ratios (Quarter)
Key Ratios (Quarter) Particulars Jun 22 Jun 21 Mar 22 Cost of Deposits (%) 4.09 4.53 4.12 Yield on Advances (%) 8.27 8.55 8.28 Cost of Funds (%) 4.12 4.56 4.14 Yield on Funds (%) 7.27 7.41 7.27 Net Interest Margin (%) 3.82 3.55 3.79 Spread (%) 3.15 2.85 3.13 Cost to income (%) 49.68 51.03 51.80 Retu
Slide 10: Balance Sheet
(Rs. crore) Balance Sheet Particulars Jun 22 Jun 21 YoY (%) Capital & Liabilities Capital 160 160 - Reserves and Surplus 7,665 6,909 11 Deposits 71,168 64,398 11 Borrowings 2,611 987 165 Other Liabilities and Provisions 2,243 1,806 24 Total 83,847 74,260 13 Assets Cash and Balances with RBI 4,252 3,
Slide 11: Capital to Risk Weighted Assets Ratio – Basel III
(Rs. crore) Capital to Risk Weighted Assets Ratio – Basel III Particulars Jun 22 Jun 21 Mar 22 CRAR % 19.21 19.06 19.46 Total capital 8,128 7,524 8,108 Tier I capital 7,299 6,725 7,288 Tier II capital 829 799 820 RWA 42,304 39,471 41,667 Credit risk 34,046 31,599 33,631 Operational risk 6,288 6,071
Slide 12: Driving growth across verticals
Driving growth across verticals
Slide 13: Total Business
(Rs. crore) Total Business Parameter Jun 22 Jun 21 YoY % Mar 22 QoQ % Deposits 71,168 64,398 11 68,676 4 Gross Advances 62,867 54,830 15 60,510 4 Gross Advances (after t.w off) 59,612 52,315 14 57,550 4 Total Business 1,30,780 1,16,713 12 1,26,226 4 Deposits Portfolio Parameter Jun 22 Jun 21 YoY % M
Slide 14: Advances Portfolio
(Rs. crore) Advances Portfolio Particulars Jun 22 Jun 21 YoY % Mar 22 QoQ % Agriculture 13,611 11,800 15 13,044 4 Retail (Personal Banking) 13,598 12,279 11 13,265 3 Commercial 18,677 16,092 16 18,094 3 Corporate 13,726 12,144 13 13,147 4 Gross Advances 59,612 52,315 14 57,550 4 Credit verticals are
Slide 15: Retail Portfolio
(Rs. crore) Retail Portfolio Particulars Jun 22 Jun 21 YoY % Mar 22 Housing loan 5,967 5,370 11 5,823 Gold loans 1,906 1,806 6 1,891 Mortgage (LAP) loans 1,899 1,668 14 1,832 Vehicle loans 1,103 1,019 8 1,085 Personal loans 362 558 (35) 409 Educational loans 153 172 (11) 162 Others loans 2,208 1,686
Slide 16: Driving growth across verticals
(Rs. crore) Driving growth across verticals Ticket size of Commercial Book Gold Loan portfolio (Bank as a whole) 25 25 25 25 25 25 16000 9% 14000 11% 20 14147 14873 13206 13473 13718 12000 15 10000 10 8000 80% 6000 5 4000 0 2000 Jun 21 Sep 21 Dec 21 Mar 22 Jun 22 < 5 crore >= 5 crore < 10 crore >= 1
Slide 17: ECLGS (Emergency Credit Line Guarantee Scheme) Portfolio
(Rs. crore) ECLGS (Emergency Credit Line Guarantee Scheme) Portfolio Vertical wise Vertical Jun 22 Jun 21 Mar 22 Agriculture 4 4 4 Commercial 1,420 1,429 1,488 Corporate 947 730 960 TOTAL 2,371 2,163 2,452 Scheme wise Particulars O/s as on 30.06.2022 NPA ECLGS 1.0 1,878 63 ECLGS 2.0 440 - ECLGS 3.0
Slide 18: Corporate Loan Book
(Rs. crore) Corporate Loan Book Standard Corporate advances > 125 crore Improving Risk Profile 10% 8% 8% 7% 7% 3000 4.9 28% 5.0 37% 34% 43% 43% 3.9 3.6 3.6 3.5 29% 2000 27% 2,929 27% 3.0 27% 28% 2,248 1897 1916 1941 28% 32% 36% 20% 22% 1000 1.0 Jun 21 Sep 21 Dec 21 Mar 22 Jun-22 Jun 21 Sep 21 Dec 21
Slide 19: Sectoral composition
Sectoral composition Rs.59,612 crore Breakup of Industrial exposure (Rs. 15,092 crore) GEMS & JEWELLERY OTHER EXPOSURES 5% OTHERS 9% MINING AND QUARRYING 6% INFRASTRUCTURE NBFC 4% 4% 18% BILLS 2% CEMENT CONSTRUCTION MANUFACTURING 1% 4% Agri 2% SECTOR CRE 25% ALL ENGINEERING 6% 4% WOOD AND ITS PRODUC
Slide 20: Secured Exposure
(Rs. crore) Secured Exposure Nature of security 30.06.2022 Exposure backed by - Letter of Credit 280 Govt. Guarantee 2,371 Liquid Assets ^ 15,722 Vehicles 2,541 Commodities 160 Total (1) 21,074 Exposure secured by Immovable Property ( % Coverage) > 100 28,181 90 to <100 8,228 75 to <90 2,015 50 to <
Slide 21: Portfolio performance
Portfolio performance (Rs. crore) Portfolio performance 117 100 107 110 Balance in INR , Base Mar.31,2017=100 SMA 30+ Particulars Jun 22 Jun 21 94 75 76 SMA 1 302 1,101 63 SMA 2 277 561 44 46 45 42 43 44 34 23 SMA 30+ 579 1,662 23 16 26 19 12 15 SMA 30+ - 0.97% SMA 1 - 0.51% SMA 2 - 0.46% 114 100 Po
Slide 22: Liability Franchise : Predominantly Retail
Liability Franchise : Predominantly Retail Low dependence on wholesale deposits 8% 25% 13% Term Deposits 11% 64% Demand Deposits Savings Deposits 58% 21% < Rs.15 Lakhs Rs.15 Lakhs-Rs.1 Cr Rs.1 Cr-Rs.5 Cr > Rs.5 Cr • Term deposits are primarily retail deposits 92% of term deposits are < Rs.5 Cr 21 ww
Slide 23: Investment Portfolio
Investment Portfolio Gross Investments (Rs. crore) Investment Category 18962 21.69% 17755 16465 78.31% Mar 21 Mar'22 Jun 22 HTM AFS Investment Composition Duration 2.74% 13.64% AFS HFT HTM Total SLR 0.92% 1.28 - 3.44 3.01 Shares Yield on Investments SR 5.30% 5.41% 5.64% 82.70% Debentures/CD/MF/CP Ma
Slide 24: Disciplined approach to reduce stressed assets
Disciplined approach to reduce stressed assets
Slide 25: Movement of NPA for the quarter
(Rs. crore) Movement of NPA for the quarter Particulars Apr 22 – Jun 22 Apr 21 – Jun 21 Gross NPAs Opening Balance 3,431 4,143 Additions during the period 139 519 Reductions during the period 463 494 -Of which Recoveries/Upgradation 160 115 Tech Write offs 303 379 Closing Balance 3,107 4,167 Provisi
Slide 26: Vertical wise NPA, Collection efficiency
(Rs. crore) Vertical wise NPA Advances O/s. NPA as on NPA Additions NPA ReductionQ1 NPA as on Provisions VERTICAL Recoveries / Jun 22 Mar 22 Q1 Tech W/off Jun 22 Jun 22 upgradation Agriculture 13,611 239 7 7 112 127 81 Retail (Personal Banking) 13,598 382 45 28 22 377 230 Commercial 18,677 1,347 78
Slide 27: NPAs & Provisions
(Rs. crore) NPAs & Provisions 4450 4213 4143 8.79 8.68 7.85 3431 3107 2420 2351 2366 5.96 1961 1809 2132 1968 4.98 5.21 1719 1261 1098 3.92 3.41 2.28 1.91 Mar 19 `Mar 20 Mar 21 Mar 22 Jun 22 Mar 19 `Mar 20 Mar 21 Mar 22 Jun 22 Gross NPA Net NPA NPA Provision Net NPA% Gross NPA% 82.74% 4.00% 80.27% 0
Slide 28: Provisions and Contingencies
(Rs. crore) Provisions and Contingencies Provision for Jun 22 Jun 21 Mar 22 NPA 140 278 143 Standard Assets 9 (4) 6 Restructured Advances 17 7 (7) Other credit related items (4) 3 (6) Sub-total – Credit Provisions 162 284 136 Others (8) (37) 4 -Of which NPI - (1) - Others (8) (36) 4 Total Provisions
Slide 29: Restructured Accounts
(Rs. crore) Restructured Accounts Jun 22 Jun 21 Mar 22 Particulars Standard NPA Standard NPA Standard NPA Resolution Framework - 2.0 723 52 90 3 774 35 COVID 19 - Resolution Framework 406 47 561 8 426 39 MSME 203 221 361 116 244 194 CDR - - - 3 - 3 Others* 193 43 16 192 196 49 Total 1,525 363 1,028
Slide 30: Movement of Standard Restructured Advances for the Quarter
(Rs. crore) Movement of Standard Restructured Advances for the Quarter Apr 22 to Jun 22 Apr 21 to Jun 21 Particulars A/c’s Amt. A/c’s Amt. A. Position at the beginning of the period 3,222 1,640 1,628 957 B. Addition during the period - - 375 96 C. Additions in existing A/c’s - 15 - 35 D. Addition th
Slide 31: Sector-wise Standard Restructured Advances
(Rs. crore) Sector-wise Standard Restructured Advances S. Amount Stressed Book Analysis SECTOR 5.00 N. Jun 22 Mar 22 3500 3200 3364 3170 3050 2753 4.31 4.43 1 Real Estate 368 391 198 247 149 2 Housing Loan 324 346 3000 327 3 Trade 134 143 4.08 3.81 130 2500 4 Textile 87 93 1538 1356 1261 3.28 5 Basi
Slide 32: Building a strong digital ecosystem
Building a strong digital ecosystem
Slide 33: Digital Banking – DLite
Digital Banking – DLite Special Dates Trading Account Online REMIND ME! Registered Accounts users Opened 18.41L 3.05L Recent launches Avg Daily Txns 74 K TDS Enquiry Rights Issuance UPI Transactions (in lakhs) Launching soon 74% 94% 1618 1361 1232 3.4 MILLION 1043 759 DLITE APP Growth in Share of DO
Slide 34: Dynamic workforce
Dynamic workforce Leading to Improved Productivity 18 17 12.6 14 15 14 9.2 4.6 2.8 3.0 FY 19 FY 20 FY 21 FY 22 Jun 22 FY 19 FY 20 FY 21 FY 22 Jun 22* Business per employee (Rs. Crore) Profit per employee (Rs. Lakhs) *Annualized 160 166 142 149 138 FY 19 FY 20 FY 21 FY 22 Jun 22 Business per branch (
Slide 35: Sustained Decade of Growth
(Rs. crore) Sustained Decade of Growth Year 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Paid up Capital 107 107 122 122 122 145 160 160 160 160 Reserves 2,978 3,219 4,124 4,451 4,723 6,066 6,205 6,440 6,760 7,436^ Owned funds 3,085 3,326 4,246 4,573 4,845 6,211 6,
Slide 36: Thank You
Thank You