Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q1 FY22 Earnings Presentation
37 slides from Kotak Mahindra Bank's earnings presentation, Jul 26, 2021
Slide 1: Cover letter to stock exchanges
ekotak Kotak Mahindra Bank July 26, 2021 TheManager TheManager 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 J eejeebhoy Towers, Bandra-Kurla Complex, Dalal Street, Ba
Slide 2: Investor Presentation Q1FY22
Investor Presentation Q1FY22 Presentation on financial results for the period ended 30th June, 2021 26th July, 2021
Slide 3: Standalone Highlights Q1FY22
Standalone Highlights Q1FY22 PAT NII NIM CASA Ratio ` 1,642 cr ` 3,942 cr 4.60% 60.2% [` 1,244 cr] [` 3,724 cr] [4.40%] [56.7%] Customer Capital & CAR# Net NPA Assets Reserves 23.7% 4.39% [21.7%] [4.72%] ` 235,358 cr 1.28% ` 65,472 cr TierI I Tier # # [` 216,819 cr] [0.87%] [` 57,709 cr] 22.8% 21.4%
Slide 4: Profit and Loss Account
Profit and Loss Account ` cr Q1FY22 Q1FY21 Q4FY21 FY21 Net Interest Income 3,942 3,724 3,843 15,340 Other Income 1,583 774 1,949 5,459 Fee and Services 1,169 776 1,378 4,331 Others 414 (2) 571 1,128 Net Total Income 5,525 4,497 5,792 20,799 Employee Cost 1,082 911 869 3,729 Other Operating Expenses
Slide 5: Fees & Services
Fees & Services ` cr Q1FY22 Q1FY21 Q4FY21 FY21 Distribution & Syndication Income 183 144 292 785 General Banking Fees 946 607 1,023 3,396 Others 40 25 63 150 Fees and Services 1,169 776 1,378 4,331 4
Slide 6: Asset Quality
Asset Quality Asset Quality ` cr 30-Jun-21 30-Jun-20 31-Mar-21 • No sale to ARCs GNPA 7,932 5,619 7,426 • Collections impacted in Apr SMA2 outstanding^ - ` 430 cr NNPA 2,792 1,777 2,705 and May; improvement in Jun (31st Mar, 2021: ` 110 cr), and Jul GNPA (%) 3.56% 2.70% 3.25% Total COVID & MSME rest
Slide 7: Balance Sheet
Balance Sheet ` cr 30-Jun-21 30-Jun-20 31-Mar-21 Capital & Reserves and Surplus 65,472 57,709 63,727 Deposits 286,560 261,524 280,100 CA 52,433 38,594 52,087 SA 120,002 109,754 117,226 Term Deposits 114,125 113,176 110,787 Of which: TD Sweep 23,050 18,884 20,924 Borrowings 29,231 47,920 23,651 Other
Slide 8: Digital Strategy
Digital Strategy Acquisition Engagement Experience Retail DIY (Do-It- Offers Risk Control APIs Yourself) Upgrade Analytics Foundations UI/UX Resilience Scalability DIFW DIWY (Do-It- (Do-It- Unified Platform Commercial With- For-You) You) Digital Priorities Agility A hybrid model On-prem for core
Slide 9: Digital Acquisition
Digital Acquisition Pay Your Contact Savings, Business A/C 811 VKYC Mobile Loans Biometric Banking 2.0 Digi PL & HL Customer Consumer Fin PayDay Loans DIY Payments Q1 FY22 About Journeys Needs Current Pay Your - Updates 5 lakh customers Imminent Contact acquired New Fast Tag digitally per Launches D
Slide 10: Digital Engagement
Digital Engagement Data Science, AI & ML, Omni Channel Usage for Loans Home Car Consumer Personal Finance LAP Gold Business LAS Kotak Customer Usage for Payments Credit Cards UPI Fast Tag Analytics + AI/ML Tools + Personalization Pay Your Contact POS Debit Card Multiple Channels of Engagement
Slide 11: Digital Experience
Digital Experience Reliability, Consistency, Service at Scale, WOW Service Digitization Automation as a Theme STP of Service Requests 128% Q-o-Q Increase in Hours Saved via Robotics Process Automation (RPA) across 23 Business 16 Most Used Customer Services Live across Net Verticals Banking/Mob
Slide 12: Investing in Digital Backbone
Investing in Digital Backbone For Acquisition – Engagement - Experience INFRASTRUCTURE CORE APPLICATIONS DIGITAL CHANNELS BUILD RESILIENCY & DIY JOURNEY, UPGRADE OF CORE APPLN GO TO CLOUD STP & AUTOMATION Completed Finacle- Core Banking Net Banking 2.0 Near Real Time Databases Retail Lending
Slide 13: Other Digital Highlights
Other Digital Highlights Mobile App: Transaction volume up 128%* & value up 51%* 61%* increase in monthly active users for Keya Chatbot Channel 74%* increase in monthly active users for Whatsapp Banking Transactions Kotak rated amongst the Top 3 Banks in the MeitY Scorecard for FY21 (Ranked
Slide 14: Deposit
Deposit CASA (` cr) Cost of SA CASA % 60.2% 56.7% 60.4% 3.73% [4.22%] Floating rate SA CASA & TDs below ` 5 cr, as % of total deposits TD Sweep as % of 92% [90%] Fixed rate SA total deposits Customers as on 8.0% [7.2%] CA 30th Jun, 2021: ~ 27 mn YoY % YoY % 28% 36% Avg CA (YTD) 46,341 36,066 EOP CA
Slide 15: Customer Assets
Customer Assets 30-Jun-21 (` 235,358 cr) Customer Assets ` cr 30-Jun-21 30-Jun-20 31-Mar-21 Home Loans & LAP 55,623 47,168 54,749 Consumer Bank WC (Secured) 21,047 18,240 21,839 PL, BL and Consumer Durables 6,563 9,088 7,024 Credit Cards 3,848 4,343 3,969 CV/CE 19,349 18,442 20,387 Agriculture Divis
Slide 16: Specific Sectors Exposure
Specific Sectors Exposure Specific Sectors as per Basel III Outstanding* (` cr) 30-Jun-21 % 30-Jun-20 % 31-Mar-21 % NBFCs 14,832 5.0% 12,304 4.5% 15,307 5.0% :Of which HFC 6,180 2.1% 4,921 1.8% 6,328 2.1% CRE (excl LRD) 6,030 2.0% 6,106 2.2% 6,076 2.0% LRD 3,553 1.2% 4,400 1.6% 3,198 1.1% Total incl
Slide 17: Consolidated Highlights Q1FY22
Consolidated Highlights Q1FY22 CAR# Customer PAT 24.9% Total Assets Assets [23.0%] ` 1,806 cr Tier I# ` 264,013 cr ` 491,399 cr [` 1,853 cr] 24.1% [` 245,167 cr] [` 458,618 cr] [22.5%] Capital & NIM Net NPA Book Value Reserves per Eq. share 4.66% ` 86,768 cr 1.34% ` 435 [4.44%] [` 76,443 cr] [0.89%]
Slide 18: Consolidated PAT
Consolidated PAT ` cr Q1FY22 Q1FY21 Q4FY21 FY21 Kotak Mahindra Bank 1,642 1,244 1,682 6,965 Kotak Mahindra Prime 79 68 184 535 Kotak Mahindra Investments 71 43 73 258 Kotak Securities 236 169 241 793 Kotak Mahindra Capital 42 6 25 82 Kotak Mahindra Life Insurance (243) 161 193 692 Kotak Mahindra Gen
Slide 19: Entity-wise Capital & Reserves and Surplus
Entity-wise Capital & Reserves and Surplus ` cr 30-Jun-21 30-Jun-20 31-Mar-21 Kotak Mahindra Bank 65,472 57,709 63,727 Kotak Mahindra Prime 6,702 6,157 6,623 Kotak Mahindra Investments 2,189 1,902 2,117 Kotak Securities 5,526 4,698 5,321 Kotak Mahindra Capital 711 628 689 Kotak Mahindra Life Insuran
Slide 20: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance ` cr Q1FY22 Q1FY21 Q4FY21 FY21 Gross Written Premium (` cr) Capital 562 562 562 562 1,663 1,207 4,870 11,100 Other Reserves and 3,158 2,952 3,483 3,483 Surplus Total Premium 1,663 1,207 4,870 11,100 (Loss) / Profit After (243) 161 193 692 Tax (Shareholders’) Solvency Ra
Slide 21: KLI – Update on Digitization
KLI – Update on Digitization KLI’s 3E Digital edge for Empowering distribution, Engaging channels, Enhancing customer experience EMPLOYEE & ADVISOR CUSTOMER CUSTOMER DATA & ENGAGEMENT ONBOARDING SERVICING ANALYTICS 95%+ digital onboarding on Significantly high customer Analytics driven cross sell 95
Slide 22: Kotak Securities
Kotak Securities ` cr Q1FY22 Q1FY21 Q4FY21 FY21 Market ADV* (` ‘000 cr) Total Income 571 459 570 2,020 2,390 957 2,247 1,530 Profit Before Tax 315 225 321 1,057 Profit After Tax 236 169 241 793 Market Share Cash* - (%) 9.6 9.4 9.7 9.3 Market Share* Q1FY22: 2.4% (Q1FY21: 2.3%) 1,510 branches, franchi
Slide 23: Kotak Mahindra Capital Company
Kotak Mahindra Capital Company Equity Advisory Sona BLW Precision Forgings Ltd. Manager to the Buyback Offer to the shareholders of Infosys # Initial Public Offer through open market route ` 5,550 cr ` 9,200 cr Buy-side Financial Advisor and Advisor to the Open Offer to Macrotech Developers Ltd. API
Slide 24: Kotak Mahindra Investments
Kotak Mahindra Investments ` cr Q1FY22 Q1FY21 Q4FY21 FY21 Customer Assets* (` cr) NII 102 88 88 354 Other Income 13 (2) 29 74 NII and Other Income 115 86 117 428 Profit Before Tax 96 57 98 346 Profit After Tax 71 43 73 258 NNPA (%) 0.6% 0.8% 0.6% 0.6% CAR (%) (incl unaudited profits) 37.0% ROA (%) -
Slide 25: Kotak Mahindra Prime
Kotak Mahindra Prime ` cr Q1FY22 Q1FY21 Q4FY21 FY21 Customer Assets* (` cr) NII 307 301 313 1,212 Other Income 47 16 67 220 NII and Other Income 354 317 380 1,432 Profit Before Tax 106 93 248 720 Profit After Tax 79 68 184 535 NNPA (%) 2.4% 1.1% 1.8% 1.8% CAR (%) (incl unaudited profits) 30.9% ROA (
Slide 26: Kotak Mahindra AMC & Trustee Co.
Kotak Mahindra AMC & Trustee Co. Average Assets Under Management (` cr) - Overall ` cr Q1FY22 Q1FY21 Q4FY21 FY21 Profit Before Tax 143 95 134 465 Profit After Tax 107 71 100 346 Average Assets Under Management (` cr) - Equity Notes Overall Market share on AAUM increased to 7.4% in Q1FY22 (Q1FY21:
Slide 27: Assets Under Management and Relationship Value
Assets Under Management and Relationship Value 30th June, 2021 30th June, 2020 32% (Total: ` 343,708 cr) (Total: ` 259,781 cr) * Includes undrawn commitments, Relationship Value of Wealth + Priority + Investment Advisory as on wherever applicable 30th Jun, 2021 ~` 404,000 cr (PY: ~` 282,000 cr) – up
Slide 28: Geographical presence
Geographical presence Branches 1,612* [No./%] 3 11 North 91 Branches distributed 487 / 30% 72 10 across various geographies 102 West East 86 1 499 / 31% 122 / 8% 66 5 22 1 South 1 504 / 31% 157 46 9 42 22 Branch Classification 2 19 333 89 7 108 181 90 34 No. of ATMs 2,591 * Does not include branches
Slide 29: Group Profile
GROUP PROFILE
Slide 30: The Journey So far…
The Journey So far… ∞ First International Ability to Identify and Capitalize on Opportunities Branch ∞ Microfinance 2019 ARC 2013 ∞ Digital Bank - 811 BANK ∞ Kotak IDF 2020 2008 2008 ∞ Digital 2017 2011 Video Life Insurance* KYC 2003 2002 Auto Finance 2000 2013 2006 2004 2014 2010 Alternate ∞ ING Vy
Slide 31: Kotak – Diversified and integrated financial services
Kotak – Diversified and integrated financial services Kotak Mahindra Bank Commercial Bank & Parent Company Kotak Mahindra Kotak Mahindra Kotak Investment Kotak Mahindra Kotak Securities Prime Investments Advisors Capital Company ∞ Car Finance ∞ Investments ∞ Alternate Assets ∞ Investment Banking ∞ S
Slide 32: 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 33: Our Strengths
Our Strengths An integrated ∞ Balance Sheet, Market & Knowledge driven businesses encompassing all customer & geographic segments financial services conglomerate with a ∞ Wide spectrum of financial products and services that help to provide balance in market cycles, hedge against downturns in divers
Slide 34: Our Strategy
Our Strategy Keeping Technology at Leadership in digital Customer Centricity the Core capabilities Keep customer at the core of the Investing in technology (both business in order to provide a positive infrastructure and applications), with a Continue journey on best in class digital experience and
Slide 35: The Path of Leadership
The Path of Leadership Attract & Retain Talent - High degree of stability within the Risks Management kotak leadership team, with an Strong Capital Position average tenure of 20+ years with - Extensive on-the-ground the Group - Capital adequacy amongst the presence and superior sponsor / highest in
Slide 36: Strong and Committed Leadership Team
Strong and Committed Leadership Team Senior Leadership Team with Long Vintage Dipak Gupta Gaurang Shah KVS Manian D Kannan Shanti Jt. MD WTD WTD Ekambaram 29 Years 24 Years 26 Years 29 Years 30 Years Compliance, IT, HR & Credit, ARD, Asset Corporate, Marketing, Digital, Mgmt, Alternate Institutional
Slide 37: 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