Karur Vysya Bank Ltd. · NSE:KARURVYSYA
Karur Vysya Bank — Q1 FY2019-20 Earnings Presentation
45 slides from Karur Vysya Bank's earnings presentation, Jul 24, 2019
Slide 1: Karur Vysya Bank – Intimation of Investor Presentation
KVB) Karur Vysya Bank Smart way to bank IRC: F48:100:725:2019 24.07.2019 The Manager National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No.C/1 G Block, Bandra-Kurla Complex, Bandra (E), Mumbai 400051. Dear Sir, Sub: Regulation 30 of SEBI (Listing Obligations and Disclosure Requ
Slide 2: Investor Presentation Q1 FY 2019-20 Business Performance
INVESTOR PRESENTATION Q1 – FY 2019-20 Business Performance 31.12.2018 1
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: The Bank of choice - trusted by all
The Bank of choice - trusted by all Over Over Over 7 million 450000 700000 individuals businesses agri customers 3
Slide 5: KVB – a unique franchise!
KVB – a unique franchise! Bank of Choice, trusted by : Over 7 million individuals Over 450000 businesses Over 700000 customers involved in agriculture 1 6 1 Unmatched presence in India’s fast growing hinterland 12 6 1 Category No. of Branches 6 1 Metro 200 4 1 15 14 Urban 155 1 5 Semi Urban 29
Slide 6: Highlights
Highlights BUSINESS CRAR Total Business CRAR at 15.99% Up by 5% CET 1 at 14.27% @ Rs. 1,10,893 crore 06 01 PAT CREDIT Operating Profit Rs. 445 crore Gross Advances grew Y-o-Y Net Profit Rs. 73 crore 05 02 by Rs. 1,296 crore to Rs. 49,182 crore NIM CASA 3.49% 04 03 CASA share @ 30% Total Deposits up
Slide 7: KVB DLite App
KVB DLite App • Instant account opening • Multiple fund transfer modes • Debit Card Management • KVB Shoppy - Online Shopping • QR Code based payment • Cheque Management • Locker Management • Demat Accounts • Savings Accounts • Mobile Recharge • FASTag • UPI • E-ASBA • Insurance 6
Slide 8: Blending Tradition with Modernity
Blending Tradition with Modernity Business model transformation progressing well - Digital product suites well received • KVB DLite banking application has over 1.1 million downloads – Over 1.91 lakh average transactions per day @ INR 90 crore per day – Increasing account engagement through embedded
Slide 9: Blending Tradition with Modernity
Blending Tradition with Modernity Digital suite extension to ‘self service’ mode underway Non-branch Distribution Operations Commenced Risk based pricing implemented Through the door booking yield (Weighted Average) in Q1 – Retail @ 11.77% Commercial @ 12.03% Risk & Compliance Architec
Slide 10: Results Snapshot
(Rs. crore) Results Snapshot* Financial Indicators – 30.06.2019 Other Business Parameters YoY Growth Gross NPA 4,511 Parameter Amount % Net NPA 2,322 Total 61,711 7 Gross NPA % 9.17 Deposits Net NPA % 4.94 Gross 49,182 3 PCR % Advances 59.05 Total 1,10,893 5 Business Basel III Capital 6,991 CRAR % 1
Slide 11: Business Profile
(Rs. crore) Business Profile Q1 Q1 Y-o-Y Particulars FY 19-20 FY 18-19 % Total Deposits 61,711 57,554 7 Demand 6,241 5,874 6 Savings 12,099 11,370 6 CASA 18,340 17,244 6 Term Deposits 43,371 40,310 8 CASA % 30 30 Gross Advances 49,182 47,886 3 Net Advances 46,982 46,406 1 Total Business 1,10,893 1,0
Slide 12: Business Profile (Averages)
(Rs. crore) Business Profile (Averages) Q1 Q1 Y-o-Y Growth Particulars FY 19-20 FY 18-19 Amount % Avg. Deposits 60,429 56,851 3,578 6 Avg. Demand Deposit 5,934 5,467 467 9 % to Total 10 10 Avg. Savings Deposit 12,016 10,952 1,064 10 % to Total 20 19 Avg. Time Deposit 42,478 40,432 2,046 5 % to Total
Slide 13: Balance Sheet
Balance Sheet (Rs. crore) Q1 Q1 Particulars Y-o-Y (%) FY 19-20 FY 18-19 Capital & Liabilities Capital 160 145 10 Reserves and Surplus 6,336 6,165 3 Deposits 61,711 57,554 7 Borrowings 2,705 3,083 (12) Other Liabilities and Provisions 1,503 1,336 13 Total 72,415 68,283 6 Assets Cash and Balances with
Slide 14: Income v/s Expenses (Qtr)
(Rs. crore) Income v/s Expenses (Qtr) Net Interest Income Non Interest Income 650 300 618 584 579 581 584 273 270 255 260 325 150 175 0 0 June 18 Sep 18 Dec 18 Mar 19 June 19 June 18 Sep 18 Dec 18 Mar 19 June 19 Total Operating Income Operating Expenses 900 450 891 854 839 841 218 215 221 205 754 20
Slide 15: Operating Profit (Qtr)
(Rs. crore) Operating Profit (Qtr) 510 7 27 57 67 453 398 407 382 378 240 -30 -21 June 18 Sep 18 Dec 18 Mar 19 June 19 Core Operating Profit Investment Trading Profit 500 3.0 2.7 2.7 2.5 2.4 2.1 250 2.0 460 464 445 425 361 0 1.0 June 18 Sep 18 Dec 18 Mar 19 June 19 Operating Profit Operating Profit
Slide 16: Profit and Loss A/c
(Rs. crore) Profit and Loss A/c Q1 Q1 YoY Particulars FY 19-20 FY 18-19 (%) Net Interest Income 584 584 - Other Income 270 255 6 Total Income 854 839 2 Operating Expenses 409 379 8 Operating Profit 445 460 (3) Provisions 330 423 (22) Credit Related 319 378 (16) Others 11 45 - Profit Before Tax 115 3
Slide 17: Break Up of Other Income
(Rs. crore) Break Up of Other Income Q1 Q1 Particulars YoY (%) FY 19-20 FY 18-19 TOTAL NON-INT. INCOME 270 255 6 1) Fee Income 168 175 (4) 2) Investment trading profit 67 7 - 3) Forex Income 9 13 (31) 4) Others* 26 60 - *Includes recoveries from Written Off A/c’s – Rs. 1 crore (Q1 FY 19-20) & Rs. 22
Slide 18: Healthy Other Income Profile (Qtr)
(Rs. crore) Healthy Other Income Profile (Qtr) Growth in Other Income 300 40 • Non interest income accrues 31 32 30 31 through diverse sources - fee based, e-transactions, third party products 23 etc. 150 20 273 270 255 260 • 32% share in total operating income 175 Q1 (FY 2019-20) 0 0 June 18 Sep 18
Slide 19: Break Up of Operating Expenses
(Rs. crore) Break Up of Operating Expenses Q1 Q1 Particulars YoY (%) FY 19-20 FY 18-19 Staff Expenses 204 179 14 Of above – Prov. for employee retirement benefits 36 29 24 Other Operating Expenses 205 200 3 TOTAL OPG. EXPENSES 409 379 8 18
Slide 20: Key Ratios
Key Ratios Particulars Q1 FY 19-20 Q1 FY 18-19 Cost of Deposits 5.82% 5.79% Yield on Advances 9.61% 9.85% Cost of Funds 5.88% 5.80% Yield on Funds 8.60% 8.70% NIM 3.49% 3.65% Spread 2.71% 2.90% 4.50% 4.06% 4.01% 3.94% 3.79% 3.79% 3.88% 3.50% 3.65% 3.57% 3.60% 3.49% 3.08% 2.90% 2.79% 2.80% 2.71% 2.50
Slide 21: Key Ratios (Qtr)
Key Ratios (Qtr) NIM^ Cost to Income 60.00% 4.50% 52.12% 4.00% 3.88% 49.45% 50.00% 47.88% 47.87% 3.65% 3.60% 3.57% 45.18% 3.49% 3.50% 40.00% 3.00% June 18 Sep 18 Dec 18 Mar 19 June 19 June 18 Sep 18 Dec 18 Mar 19 June 19 ROA ROE 1.00% 10.00% 5.28% 0.49% 4.49% 0.50% 0.40% 5.00% 3.74% 0.35% 2.93% 0.27
Slide 22: Business Growth
(Rs. thousand crore) Business Growth Deposit Advances Business 20 111 111 80 103 120 95 6 6 89 15 6 5 60 62 80 54 57 10 4 12 12 50 11 40 10 8 40 5 46 51 49 39 41 0 0 0 FY 16 FY 17 FY 18 FY 19 June 19 FY 16 FY 17 FY 18 FY 19 June 19 Savings Demand Loans and Advances CASA Mix 74% 66% 66% 67% 71% 65% 5
Slide 23: Retail Liability Franchise: Granular & Sticky
Retail Liability Franchise : Granular & Sticky Deposit Mix 20% 10% Term deposits are primarily retail deposits 70% 93% of term deposits are < Rs. 5 Cr Term Deposits Demand Deposits Savings Deposits Low concentration of Deposits Low dependence on wholesale deposits 7% 9% 9% 7% 7% 6% 6% 21% 63% FY
Slide 24: Investment Portfolio
Investment Portfolio Investments (Rs. crore) Portfolio wise Investment 17227 3.16% 16341 35.13% 15137 61.71% Jun-18 Mar-19 Jun 19 HTM AFS HFT Duration Investment Portfolio AFS* HFT HTM* 19.05% 0.83% 1.23 0.12 4.05 Yield on Investment 80.12% 6.93% 7.04% 6.97% SLR Debentures/CD/MF/CP Shares Jun-18 Mar
Slide 25: Advances Portfolio
(Rs. crore) Advances Portfolio Q1 Q1 Y-o-Y Particulars FY 19-20 FY 18-19 Growth % Gross Advances 49,182 47,886 3 Commercial 16,539 16,510 - Corporate 13,589 14,893 (9) Retail (Personal Banking)* 10,893 8,232 32 Agriculture 8,161 8,251 (1) Jewel Loans (incl. in above) 7,890 7,388 7 Segment wise advan
Slide 26: Advances – Business Verticals
(Rs. crore) Advances – Business Verticals Advances by value terms Advances - Portfolio wise 17056 35% 16095 35% 35% 34% 33% 14504 16539 13763 28% 13589 32% 28% 33% 31% 14397 14169 13612 22% 12763 10893 22% 11278 18% 17% 17% 7861 7032 6979 8161 17% 17% 7620 8113 15% 15% 16% 5918 6340 FY 16 FY 17 FY 1
Slide 27: Retail Portfolio
(Rs. crore) Retail Portfolio Advances outstanding as at Segment June – 19 Mar-19 June - 18 Mar-18 Mar-17 Mar-16 Housing 3,878 3,619 2,977 2,795 2,330 2,094 Mortgage (LAP) 1,723 1,712 1,470 1,393 965 787 Vehicle 1,037 1,044 1,051 1,017 921 831 Jewel Loans 660 625 596 578 596 703 Personal Loans 447 42
Slide 28: Robust Growth in Retail Segment
(Rs. crore) Robust Growth in Retail Segment Retail Segment June- 2019 4,000 3,878 3,619 27% 2,795 36% 2,094 2,330 2,200 1,712 1,723 2% 1,393 965 4% 1,017 1,044 1,037 921 787 831 6% 596 578 625 703 660 10% 16% 400 FY 16 FY 17 FY 18 FY 19 Jun-19 Housing Mortgage (LAP) Vehicle Jewel Loans Housing Mortg
Slide 29: Granular Loan Book
Granular Loan Book Corporate Loans : Exposures above Rs. 250 Mn Commercial book 11% 5% • Average ticket size of Rs. 4 Mn • 84% of commercial loans are less than Rs. 50 Mn 84% Corporate book 27% 16% < 50 Mn >= 50 Mn < 100 Mn >= 100 Mn 27% • Average ticket size of Rs. 355 Mn 29% • 73 % of corporate
Slide 30: Advances – Composition
Advances – Composition Well spread sub-sectorial exposures & diversified industrial exposures Rs. 492 Bn Breakup of Industrial exposure (Rs.124 Bn) INFRASTRUCTURE 3% OTHER EXPOSURES POWER 1% NBFC 4% 14% BILLS 2% MANUFACTURING OTHERS 6% SECTOR 25% Agri 3% GEMS & JEWELLERY 1% CRE 6% TRANSPORT SECTOR 1
Slide 31: Advances – Composition
(Rs. crore) Advances – Composition Growth Amount % to Total Advance Particulars Over Q1 FY18-19 Q1 Q1 Q4 Q1 Q1 Amt % FY 19-20 FY 18-19 FY 18-19 FY 19-20 FY 18-19 Manufacturing 12,412 13,484 13,162 25 28 (1,072) (8) Trading 7,560 8,195 7,979 15 17 (635) (8) Jewel loan 7,890 7,388 7,781 16 15 502 7 Pe
Slide 32: Manufacturing Sector - Industry Wise
(Rs. crore) Manufacturing Sector - Industry Wise Amount % to Total Advance Y-o-Y Growth Industry Jun-19 Jun-18 Jun-19 Jun-18 Amount % Textile 3,876 4,033 7.9 8.4 (157) (4) Infrastructure 2,056 2,628 4.2 5.5 (572) (22) Basic Metal & Metal Products 875 1,172 1.8 2.4 (297) (25) Food Processing 587 952
Slide 33: Security Coverage
(Rs. crore) Security Coverage Nature of security 30.06.19 Exposure backed by - Letter of Credit 398 Liquid Assets ^ 8,930 Vehicles 2,733 Commodities 637 Total (1) 12,698 Exposure secured by Immovable Property (% Coverage) > 100% 22,973 90% to <100% 7,449 75% to <90% 1,715 50% to <75% 3,678 <50% 2,45
Slide 34: Sector-wise Restructured Advances
(Rs. crore) Sector-wise Restructured Advances % to Total Restructured Advances Amount June -19 Agri S. N. SECTOR Textiles Q1 Q1 3.13 FY 19-20 FY 18-19 9.69 Housing loan 0.81 1 Infrastructure - 41.55 27.07 Food Processing 41.07 2 Food Processing 36.55 - Chemical & chemical Products 4.27 3 Textile 13.
Slide 35: Stressed Book Analysis
Stressed Book Analysis (Rs. crore) 2816 Movement of Restructured Advances 3000 5.00 2539 2673 2819 2495 324 Apr-19 to Jun- Apr 18 to Jun- 372 361 399 19 18 397 Particulars 4.06 3.89 A/c’s Amt. A/c’s Amt. 3.72 3.95 2000 3.67 A. Position at the beginning of 34 72.09 22 262.43 the period 2.50 2420 2322
Slide 36: NPAs & Provisions
(Rs. crore) NPAs & Provisions 4450 4511 4056 3563 3707 8.79 9.17 8.49 7.44 7.70 2296 2420 2322 2088 2052 1961 2121 1590 1692 1409 4.99 4.98 4.94 4.50 4.41 June 18 Sep 18 Dec 18 Mar 19 June 19 June 18 Sep 18 Dec 18 Mar 19 June 19 Net NPA% Gross NPA% Gross NPA Net NPA NPA Provision Advances O/s. Net N
Slide 37: Provision Coverage Ratio
(Rs. crore) Provision Coverage Ratio 58.50 59.05 56.50 56.50 56.09 56.86 54.09 54.07 47.02 44.07 42.89 41.72 39.55 36.17 34.89 32.40 Sep-17 Dec-17 Mar-18 June 18 Sep 18 Dec 18 Mar 19 June 19 Provision Coverage Ratio % NPA Provision on Gross NPA % 36
Slide 38: Movement of NPA
(Rs. crore) Movement of NPA Particulars Apr 19 – Jun 19 Apr 18 - Jun 18 Gross NPAs Opening Balance 4,450 3,016 Additions during the period 474 785 Reductions during the period 413 238 Closing Balance 4,511 3,563 Net NPAs Opening Balance 2,420 1,863 Additions during the period 132 362 Reductions/writ
Slide 39: Portfolio performance
Portfolio performance Portfolio performance Balance in INR, Base Mar. 31, 2017 = 100 SMA-1 SMA-2 SMA 30+ 200 184 168 150 161 117 120 107 110 106 100 100 94 98 100 88 75 76 84 81 82 82 63 45 59 50 65 44 46 60 51 43 40 Portfolio performance 0 Portfolio Outstanding in %, Base Mar.31, 2017 = 100 31.03.1
Slide 40: Provisions and Contingencies
(Rs. crore) Provisions and Contingencies Q1 Q1 Provision for FY 19-20 FY 18-19 NPA 318 403 Standard Assets (1) 6 Restructured Advances 2 (9) SDR, S4A, 5/25 etc. - (10) NCLT (specific a/c’s) - (12) Others (incl. NPI) 12 39 Investment Depreciation (1) 6 Total Provisions (excl. Tax) 330 423 Tax Expense
Slide 41: Capital Adequacy – Basel III
(Rs. crore) Capital Adequacy – Basel III Capital as at Nature June - 19 Mar-19 Mar-18 Mar-17 Mar-16 Tier I 6,241 6,245 6,145 4,790 4,064 Tier II 750 752 226 278 330 Total 6,991 6,996 6,371 5,068 4,394 14.43% 16.00% 15.99% 12.54% 13.92% 14.28% 14.27% 11.85% Entire Tier I comprises of CET1 capital, we
Slide 42: Leveraging Technology - Delivery Channels
Leveraging Technology - Delivery Channels Market share in RTGS transactions POS Terminals POS TERMINALS 22068 22873 21959 21789 1.14% 1.11% 1.07% 1.04% 0.99% 10157 Mar-16 Mar-17 Mar-18 `Mar- 19 Jun-19 Share of RTGS transactions (by volume) Mar-16 Mar-17 Mar-18 `Mar- 19 Jun-19 Exponential growth in M
Slide 43: Human Resources
Human Resources Young workforce….. … well qualified … … lower attrition … Others 11% 34 34 33 33 33 Graduate PG 3.9% 54% 35% 2.7% 2.7% 2.2% 0.8% FY16 FY 17 FY 18 FY 19 Jun-19 FY16 FY 17 FY 18 FY 19 Jun-19 … leading to improved productivity 14.42 14.25 134 134 142 142 8.2 130 7.9 12.85 12.92 12.4 4.4
Slide 44: A Decade of Progress
(Rs. crore) A Decade of Progress Year 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Paid up Capital 54 94 107 107 107 122 122 122 145 160 Reserves 1,566 2,020 2,601 2,978 3,219 4,124 4,451 4,723 6,066 6,205 Owned funds 1,620 2,114 2,708 3,085 3,326 4,246 4,573 4,845
Slide 45: Blending Tradition with Modernity
Blending Tradition with Modernity 44
Karur Vysya Bank — Q1 FY2019-20 Earnings Presentation on 6ix