Karur Vysya Bank Ltd. · NSE:KARURVYSYA
Karur Vysya Bank — Q2 FY2023 Earnings Presentation
40 slides from Karur Vysya Bank's earnings presentation, Oct 21, 2022
Slide 1: Intimation of Investor Presentation to Stock Exchanges
Smart wa) to bank IRC: F48: 158:372:2022 2 1.10.2022 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 - 40000 1 Bandra (Eastl, Mumbai
Slide 2: Investor Presentation 30.09.2022
Investor Presentation 30.09.2022
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 30.09.22 31.03.22 31.03.21 Branches 792 789 780 ATM’s + Cash Recyclers 2,238 2,223 2,236 1 6 1 12 No. of Branches 6 Category BBU* CBU* Other offices^ Metro 204 10 9 10 1 6 1 Urban 157 3 - - 15 4 1 14 Semi Urban 304 2 - - 1 Rural 127 - - - 5
Slide 6: Key Highlights
Key Highlights Business Advances Deposits CASA Total Business ₹ 1,35,460 cr ₹ 61,846 cr ₹ 73,614 cr ₹ 25,914 cr 14% YoY 4% QoQ 15% YoY 4% QoQ 13% YoY 3% QoQ 12% YoY Net Profit PPOP Other Income Net Interest Income Sustained Earnings Q2 - ₹ 250 cr 52%YoY Q2 - ₹ 572 cr 53%YoY Q2 - ₹ 242 cr 47%YoY Q2 -
Slide 7: Key Performance Indicators – KPIs (Quarter)
(Rs. crore) Key Performance Indicators – KPIs (Quarter) Growth Particulars Sep 22 Sep 21 Jun 22 Mar 22 Dec 21 %/bps Net interest income 821 680 21 746 710 686 Operating profit 572 375 53 475 441 401 Net profit 250 165 52 229 213 185 Advances (Gross) 61,846 53,850 15 59,612 57,550 55,793 Deposits 73,
Slide 8: Profit & Loss Statement
(Rs. crore) Profit & Loss Statement Quarter Half year Particulars Growth % Growth % Sep 22 Sep 21 Sep 22 Sep 21 (YoY) (YoY) Net Interest Income 821 680 21 1,567 1,318 19 Other Income 242 165 47 441 368 20 - Fee income 174 143 22 361 290 24 - Others 68 22 209 80 78 3 Total Income 1,063 845 26 2,008 1
Slide 9: Key Ratios
Key Ratios Quarter Half year Particulars Sep 22 Sep 21 Sep 22 Sep 21 Cost of Deposits (%) 4.08 4.32 4.09 4.42 Yield on Advances (%) 8.55 8.62 8.41 8.59 Cost of Funds (%) 4.12 4.36 4.12 4.46 Yield on Funds (%) 7.52 7.42 7.40 7.41 Net Interest Margin (%) 4.07 3.74 3.95 3.65 Spread (%) 3.39 3.06 3.28 2
Slide 10: Key Ratios (Qtr)
Key Ratios (Qtr) ROE ROA 12.59 11.22 11.69 1.16 1.06 1.09 9.20 0.86 6.00 0.55 Mar-21 Sep-21 Mar-22 Jun-22 Sep-22 Mar-21 Sep-21 Mar-22 Jun-22 Sep-22 NIM Cost to Income 74.11 4.07 3.82 55.68 3.79 51.8 49.68 3.74 46.16 3.46 Mar-21 Sep-21 Mar-22 Jun-22 Sep-22 Mar-21 Sep-21 Mar-22 Jun-22 Sep-22 9 www.kvb
Slide 11: Balance Sheet
(Rs. crore) Balance Sheet Particulars Sep 22 Sep 21 YoY (%) Capital & Liabilities Capital 160 160 - Reserves and Surplus 7,789 7,034 11 Deposits 73,614 65,410 13 Borrowings 2,281 1,158 97 Other Liabilities and Provisions 2,521 2,112 19 Total 86,365 75,874 14 Cash and Balances with RBI 4,691 3,365 39
Slide 12: Capital to Risk Weighted Assets Ratio – Basel III
(Rs. crore) Capital to Risk Weighted Assets Ratio – Basel III Particulars Sep 22 Sep 21 Jun 22 CRAR % 18.31 18.82 19.21 Total capital 8,134 7,488 8,128 Tier I capital 7,293 6,681 7,299 Tier II capital 841 807 829 RWA 44,413 39,782 42,304 Credit risk 36,213 31,914 34,046 Operational risk 6,288 6,071
Slide 13: Driving growth across verticals
Driving growth across verticals
Slide 14: Total Business
(Rs. crore) Total Business Parameter Sep 22 Sep 21 YoY % Jun 22 QoQ % Mar 22 YTD % Deposits 73,614 65,410 13 71,168 3 68,676 7 Gross Advances 65,660 56,362 16 62,867 4 60,510 9 Advances (after t.w off) 61,846 53,850 15 59,612 4 57,550 7 Total Business 1,35,460 1,19,260 14 1,30,780 4 1,26,226 7 Depos
Slide 15: Growing our books responsibly
(Rs. crore) Growing our books responsibly Particulars Sep 22 Sep 21 YoY % Jun 22 QoQ % Agriculture 14,167 12,084 17 13,611 4 Retail (Personal Banking) 14,185 12,510 13 13,598 4 Commercial 19,761 17,231 15 18,677 6 Corporate 13,733 12,025 14 13,726 - Gross Advances 61,846 53,850 15 59,612 4 Credit ve
Slide 16: Retail Portfolio
(Rs. crore) Retail Portfolio Particulars Sep 22 Sep 21 YoY % Jun 22 Housing loan 6,167 5,226 18 5,967 Jewel loans 1,858 1,778 4 1,906 Mortgage (LAP) loans 2,088 1,632 28 1,899 Vehicle loans 1,122 1,040 8 1,103 Personal loans 353 437 (19) 362 Educational loans 154 170 (9) 153 Others loans 2,443 2,227
Slide 17: Driving growth across verticals
(Rs. crore) Driving growth across verticals Ticket size of Commercial Book Gold Loan portfolio (Bank as a whole) 30 13473 13718 14147 14873 15465 17000 10% 25 11% 14000 20 25 25 25 25 25 11000 15 8000 79% 10 5 5000 0 2000 Sep 21 Dec 21 Mar 22 Jun 22 Sep 22 < 5 crore >= 5 crore < 10 crore >= 10 crore
Slide 18: ECLGS Portfolio
(Rs. crore) ECLGS (Emergency Credit Line Guarantee Scheme) Portfolio Vertical wise Vertical Sep 22 Sep 21 Jun 22 Agriculture 4 5 4 Commercial 1,313 1,382 1,420 Corporate 902 745 947 TOTAL 2,219 2,132 2,371 Scheme wise Sep 22 Jun 22 Particulars Outstanding NPA Outstanding NPA ECLGS 1.0 1,747 70 1,878
Slide 19: Corporate Loan Book
(Rs. crore) Corporate Loan Book Standard Corporate advances > 125 crore Improving Risk Profile 3,000 6.0 8% 8% 7% 7% 7% 4.9 28% 24% 37% 34% 4.1 43% 3.9 2,000 3.6 3.5 2,929 4.0 31% 29% 2,510 27% 27% 2,248 28% 1,916 1,941 32% 36% 38% 22% 28% 1,000 2.0 Sep 21 Dec 21 Mar 22 Jun 22 Sep 22 Sep 21 Dec 21 M
Slide 20: Sectoral composition
Sectoral composition Rs. 61,846 crore Breakup of Industrial exposure (Rs. 15,119 crore) OTHER EXPOSURES GEMS & JEWELLERY 9% 5% OTHERS NBFC MANUFACTURING 6% INFRASTRUCTURE SECTOR MINING AND QUARRYING BILLS 4% 18% 24% 4% 2% Agri CEMENT 2% CONSTRUCTION CRE 1% 4% 6% ALL ENGINEERING 5% WOOD AND ITS PRODU
Slide 21: Secured Exposure
(Rs. crore) Secured Exposure Nature of security 30.09.2022 Exposure backed by - Letter of Credit 307 Govt. Guarantee (Emergency Credit Line Guarantee Scheme- ECLGS) 2,219 Liquid Assets ^ 16,429 Vehicles 2,521 Commodities 145 Total (1) 21,441 Exposure secured by Immovable Property ( Coverage) > 100 2
Slide 22: Liability Franchise: Predominantly Retail
Liability Franchise : Predominantly Retail Low dependence on wholesale deposits 10% 24% 13% Term Deposits 11% 65% Demand Deposits Savings Deposits 57% 20% < Rs.15 Lakhs Rs.15 Lakhs-Rs.1 Cr Rs.1 Cr-Rs.5 Cr > Rs.5 Cr • Term deposits are primarily retail deposits ~90% of term deposits are < Rs.5 Cr 21
Slide 23: Investment Portfolio
Investment Portfolio Gross Investments (Rs. crore) Investment Category 18853 0.53% 17755 18.27% 16465 HTM AFS HFT Mar 21 Mar'22 Sep 22 81.20% Investment Composition Duration 2.67% SLR 11.38% AFS HFT HTM Total 0.97% 1.30 0.01 3.37 3.02 Shares Yield on Investments SR 5.30% 5.41% 5.69% 84.98% Debenture
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 Jun 22 – Sep 22 Jun 21 – Sep 21 Gross NPAs Opening Balance 3,107 4,167 Additions during the period 131 164 Reductions during the period 781 360 -Of which Recoveries/Upgradation 205 358 Tech Write offs 576 2 Closing Balance 2,457 3,972 Provision
Slide 26: Vertical wise NPA and Collection efficiency
(Rs. crore) Vertical wise NPA Advances O/s. NPA as on NPA Additions NPA Reduction Q2 NPA as on Provisions VERTICAL Recoveries / Sep 22 Jun 22 Q2 Tech W/off Sep 22 Sep 22 upgradation Agriculture 14,167 127 8 9 - 126 82 Retail (Personal Banking) 14,185 377 42 38 - 381 236 Commercial 19,761 1,255 74 93
Slide 27: Improving Asset Quality
(Rs. crore) Improving Asset Quality 8.79 8.68 7.85 4450 4213 4143 3431 5.96 2420 2351 2366 2457 4.98 1961 2132 1809 1719 1598 3.92 3.97 1261 3.41 819 2.28 1.36 Mar 19 `Mar 20 Mar 21 Mar 22 Sep 22 Mar 19 `Mar 20 Mar 21 Mar 22 Sep 22 Gross NPA Net NPA NPA Provision Net NPA% Gross NPA% Sep 22 Sep 21 Sl
Slide 28: Provisions Coverage
Provisions Coverage 86.94 86.94% 4.00% 80.27% 80.27 0.8 72.70% 68.90% 72.70 68.90 56.86% 2.91% 2.54% 56.86 66.67 2.00% 63.25 0.4 55.80 57.11 1.46% 1.25% 1.18% 44.07 0 0.00% Mar 19 Mar 20 Mar 21 Mar 22 Sep 22* Mar 19 `Mar 20 Mar 21 Mar 22 Sep 22 PCR Credit costs *annualized Provision Coverage Ratio %
Slide 29: Provisions and Contingencies
(Rs. crore) Provisions and Contingencies Quarter Half year Provision for Sep 22 Sep 21 Sep 22 Sep 21 NPA 206 115 347 393 Standard Assets 11 8 20 4 Restructured Advances (18) 56 (1) 63 Other credit related items 3 (7) (1) (11) Sub-total – Credit Provisions 202 171 365 448 Others 25 (5) 17 (35) -Of wh
Slide 30: Restructured Accounts
(Rs. crore) Restructured Accounts Sep 22 Sep 21 Jun 22 Particulars Standard NPA Standard NPA Standard NPA Resolution Framework - 2.0 675 60 723 13 723 52 COVID 19 - Resolution Framework 373 47 490 14 406 47 MSME 181 215 356 113 203 221 CDR - - - 3 - - Others* 2 42 10 215 193 43 Total 1,231 364 1,579
Slide 31: Movement of Standard Restructured Advances for the quarter
(Rs. crore) Movement of Standard Restructured Advances for the quarter Jun 22 to Sep 22 Jun 21 to Sep 21 Particulars A/c’s Amt. A/c’s Amt. A. Position at the beginning of the period 2,987 1,525 1,951 1,028 B. Addition during the period - - 1,608 561 C. Additions in existing A/c’s - 27 - 36 D. Additi
Slide 32: Sector-wise Standard Restructured Advances
(Rs. crore) Sector-wise Standard Restructured Advances S. Amount Stressed Book Analysis SECTOR 5.00 N. Sep 22 Jun 22 3500 3364 3170 3050 2753 2169 1 Housing Loan 292 324 247 198 2 Real Estate 157 368 3000 4.43 4.08 149 3 Trade 116 134 3.81 130 4 Textile 76 87 2500 1538 3.28 1356 1261 119 5 Personal
Slide 33: Building a strong digital ecosystem
Building a strong digital ecosystem
Slide 34: Digital Banking – DLite
Digital Banking – DLite Fastag - Vehicle Reg Number IOS Face-ID Login Registered Accounts mapping Opened 19.29L 3.17L users Recent launches Avg Daily Txns Term Deposit Interest 75K PFMS EPA Integration Certificate UPI Transactions (in lakhs) Launching soon 1758 94% 1618 40% 1361 1232 3.7 MILLION 104
Slide 35: Digital Partnerships
DIGITAL PARTNERSHIPS ASSETS LIABILITIES
Slide 36: Awards and Accolades for the half year
Awards and Accolades for the half year TECH ENABLED EASE OF BANKING AWARD TECH ENABLED EASE OF BANKING DATA CENTRE COMPANY OF THE YEAR KRYPTON BFSI LEADERSHIP AWARDS QUANTIC INDIA SYNNEX GROUP & INDIA BANKING SUMMIT BANKING RPA INTEGRATOR OF THE YEAR FINNOVITI - CERSAI FRONT END AUTOMATION BANK WITH
Slide 37: External Ratings
External Ratings Rating Agency Instrument Ratings Certificate of Deposits A1+ Tier II Bonds A+ Certificate of Deposits A1+ Tier II Bonds A+ www.kvb.co.in
Slide 38: Dynamic workforce
Dynamic workforce Leading to Improved Productivity 18 17 13.0 14 15 14 9.2 4.6 2.8 3.0 FY 19 FY 20 FY 21 FY 22 Sep 22 FY 19 FY 20 FY 21 FY 22 Sep 22* Business per employee (Rs. Crore) Profit per employee (Rs. Lakhs) *Annualized 160 171 142 149 138 FY 19 FY 20 FY 21 FY 22 Sep 22 Business per branch (
Slide 39: Decade of Sustained Growth
(Rs. crore) Decade of Sustained 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 40: Thank You
Thank You