Karur Vysya Bank Ltd. · NSE:KARURVYSYA
Karur Vysya Bank — Q4 FY2023 Earnings Presentation
52 slides from Karur Vysya Bank's earnings presentation, May 15, 2023
Slide 1: Regulatory filing cover letter to NSE and BSE
Classification | REGULATORS IRC:F48:95:231:2023 15.05.2023 The Manager, The Manager, National Stock Exchange of India Ltd, BSE Limited, Exchange Plaza, 5th Floor, Phiroze Jeejeebhoy Towers, Plot No. C-1, ‘G’ Block, Dalal Street, Bandra- Kurla Complex, Mumbai – 400001. Bandra (East), Mumbai – 400051.
Slide 2: Investor Presentation 31.03.2023
Classification | PUBLIC Investor Presentation 31.03.2023
Slide 3: Disclaimer
Classification | PUBLIC 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 no
Slide 4: Quarter In focus
Classification | PUBLIC Quarter In focus
Slide 5: Strong presence in India's fast growing hinterland
Classification | PUBLIC Strong presence in India’s fast growing hinterland Category 31.03.23 31.03.22 31.03.21 Branches 799 789 780 ATM’s + Cash Recyclers 2,240 2,223 2,236 1 5 1 12 No. of Branches 6 Category BBU* CBU* Other offices^ Metro 204 10 9 10 1 6 1 Urban 159 3 - - 15 4 1 14 Semi Urban 307 2
Slide 6: Our Vision & Mission
Classification | PUBLIC Our Vision & Mission Vision Mission To be the preferred choice of To provide superior banking experience by stakeholders and deliver value using technology to deliver entire gamut of by blending technology with financial products under one roof, easily tradition. available to
Slide 7: Our Journey
Classification | PUBLIC Our Journey Bank launches Crosses Four Smaller banks First ATM of the Crossed Business milestone business taken over by the New and Emerging bank launched ₹ 50,000 Cr ₹ 1,40,806 Cr and Opportunities (NEO) & bank Net profit ₹ 1106 Cr Precious Metal Division (PMD) as on 31-Mar-
Slide 8: Key Highlights
Classification | PUBLIC (Rs. crore) Key Highlights Business Advances Deposits CASA 1,40,806 66,031* 76,638 25,449 12 % YOY 2% QoQ 16 % YOY 2% QoQ 12 % YOY 1% QoQ 6% YOY * before Write Off Net Profit ROA ROE NIM Q4-338 59% YoY Q4-1.50 % 18 bps QoQ Q4- 16.04% 200bps QoQ Q4- 4.37 % 1bps QoQ 12M-1,106 6
Slide 9: Key Ratios
Classification | PUBLIC Key Ratios Quarter 12 Months Particulars Mar 23 Mar 22 Mar 23 Mar 22 Cost of Deposits (%) 4.61 4.13 4.27 4.31 Yield on Advances (%) 9.55 8.37 8.93 8.56 Cost of Funds (%) 4.64 4.15 4.30 4.33 Yield on Funds (%) 8.32 7.32 7.81 7.39 Net Interest Margin (%) 4.37 3.82 4.18 3.72 Spr
Slide 10: Key Ratios (Qtr)
Classification | PUBLIC Key Ratios (Qtr) ROA ROE 1.50 1.32 1.16 16.04 1.06 1.09 14.04 11.69 12.59 11.22 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 NIM Cost to Income 4.36 4.37 51.8 49.68 46.16 42.9 42.86 4.1 3.82 3.85 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Mar-22 Jun-22 Sep-22
Slide 11: Profit & Loss Statement
Classification | PUBLIC (Rs. crore) Profit & Loss Statement Quarter 12 Months Particulars Growth % Growth % Mar 23 Mar 22 Mar 23 Mar 22 (YoY) (YoY) Net Interest Income 893 710 26 3,349 2,715 23 Other Income 401 205 96 1,159 769 51 - Fee income 202 182 11 747 634 18 - Others 199 23 765 412 135 205 To
Slide 12: Balance Sheet
Classification | PUBLIC Balance Sheet Particulars Mar 23 Mar 22 YoY (%) Capital & Liabilities Capital 160 160 - Reserves and Surplus 8,424 7,436 13 Deposits 76,638 68,486 12 Borrowings 1,432 1,339 7 Other Liabilities and Provisions 3,525 2,650 33 Total 90,179 80,071 13 Cash and Balances with RBI 4,2
Slide 13: Capital to Risk Weighted Assets Ratio – Basel III
(Rs. crore) Classification | PUBLIC Capital to Risk Weighted Assets Ratio – Basel III Particulars Mar 23 Mar 22 Dec 22 CRAR % 18.56 19.21 17.62 Total capital 9,110 8,107 8,147 Tier I capital 8,242 7,287 7,299 Tier II capital 868 820 848 RWA 49,084 42,212 46,242 Credit risk 41,173 34,176 38,123 Opera
Slide 14: Driving growth across verticals
Classification | PUBLIC Driving growth across verticals
Slide 15: Total Business
(Rs. crore) Classification | PUBLIC Total Business Parameter Mar 23 Mar 22 YoY % Dec 22 QoQ % Deposits 76,638 68,486 12 75,932 1 Gross Advances 64,168 56,876 13 62,081 3 Advances (before write off) 66,031 56,876 16 64,507 2 Total Business 1,40,806 1,25,362 12 1,38,013 2 Deposits Portfolio Parameter
Slide 16: Growing our books responsibly
Classification | PUBLIC (Rs. crore) Growing our books responsibly Particulars Mar 23* Mar 22 YoY % Mar 23* Dec 22* QoQ % Commercial 21,445 18,656 15 21,193 20,434 4 Retail (Personal Banking) 15,054 12,957 16 15,023 14,148 6 Agriculture 14,969 12,730 18 14,857 14,111 5 Corporate 14,563 12,543 16 13,3
Slide 17: Retail Portfolio
(Rs. crore) Classification | PUBLIC Retail Portfolio Particulars Mar 23 Mar 22 YoY % Dec 22 Housing loan 6,494 5,796 12 6,307 Jewel loans 2,101 1,843 14 1,729 Mortgage (LAP) loans 2,351 1,822 29 2,181 Vehicle loans 1,106 1,079 2 1,118 Personal loans 337 406 (17) 330 Educational loans 144 159 (9) 147
Slide 18: Driving growth across verticals: Gold Loan portfolio
Classification | PUBLIC (Rs. crore) Driving growth across verticals Gold Loan portfolio Ticket size of Commercial Book 50 18000 45 16000 40 14000 17% 35 14% 12000 30 24 25 25 25 25 25 10000 69% 20 8000 15 6000 10 5 4000 < 5 crore >= 5 crore < 10 crore >= 10 crore 13779 14462 15030 15333 16107 0 2000
Slide 19: ECLGS Portfolio
Classification | PUBLIC (Rs. crore) ECLGS (Emergency Credit Line Guarantee Scheme) Portfolio Vertical wise Vertical Mar 23 Mar 22 Dec 22 Commercial 1,103 1,480 1,208 Agriculture 3 4 3 Corporate 764 955 836 TOTAL 1,870 2,439 2,047 Scheme wise Mar 23 Dec 22 Particulars Outstanding NPA Outstanding NPA
Slide 20: Corporate Loan Book
(Rs. crore) Classification | PUBLIC Corporate Loan Book Standard Corporate advances > 125 crore 3,000 Improving Risk Profile 7.0 7% 7% 7% 6% 5% 28% 24% 24% 23% 34% 25 5.0 2,000 25 25 31% 29% 33% 24 25 29% 27% 2,247 2,180 3.0 1,796 1,744 1,852 32% 36% 38% 41% 39% 1,000 1.0 Mar-22 Jun-22 Sep-22 Dec-22
Slide 21: Sectoral composition
Classification | PUBLIC Sectoral composition Rs. 64,168 Crore Break of Manufacturing Sector (Rs. 16,036 Crore) OTHER OTHERS EXPOSURES 6% 8% GEMS & JEWELLERY Agri NBFC 5% 2% BILLS INFRASTRUCTURE 4% MINING AND 2% 18% QUARRYING 4% MANUFACTURING CEMENT CONSTRUCTION CRE SECTOR 1% 4% 6% 25% ALL ENGINEERIN
Slide 22: Liability Franchise: Predominantly Retail
Classification | PUBLIC Liability Franchise : Predominantly Retail Low dependence on wholesale deposits 10% 23% 13% Term Deposits 10% 67% 56% Demand Deposits 21% Savings Deposits < 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 depo
Slide 23: Investment Portfolio
Classification | PUBLIC Investment Portfolio Gross Investments (Rs. crore) Investment Category 19411 17755 17% 16465 HTM AFS 83% Mar 21 Mar'22 Mar'23 Investment Composition 2..38% 10.49 Duration SLR 0.91% AFS HFT HTM Total Shares 0.99 0.00 3.19 2.86 Yield on Investments SR 5.80% 5.30% 5.41% 86.22% D
Slide 24: Disciplined approach to reduce stressed assets
Classification | PUBLIC Disciplined approach to reduce stressed assets
Slide 25: Movement of NPA for the quarter
(Rs. crore) Classification | PUBLIC Movement of NPA for the quarter Particulars Jan 23 – Mar 23 Jan 22 – Mar 22 Gross NPAs Opening Balance 1,674 3,888 Additions during the period 222 300 Reductions during the period 438 757 -Of which Recoveries/Upgradation 181 269 Tech Write offs 257 488 Closing Bal
Slide 26: Movement of NPA
(Rs. crore) Classification | PUBLIC Movement of NPA Particulars Apr 22– Mar 23 Apr 21– Mar 22 Gross NPAs Opening Balance 3,431 4,143 Additions during the period 479 843 Reductions during the period 2,452 1,555 -Of which Recoveries/Upgradation 560 676 Tech Write offs 1,892 879 Closing Balance 1,458 3
Slide 27: Vertical wise NPA
(Rs. crore) Classification | PUBLIC Vertical wise NPA Advances O/s. NPA as on NPA Additions NPA Reduction Q4 NPA as on Provisions VERTICAL Recoveries / Mar 23 Dec 22 Q4 Tech W/off Mar 23 Mar 23 upgradation Commercial 20,980 1,084 94 111 219 848 511 Retail (Personal Banking) 15,012 367 40 46 11 350 2
Slide 28: Improving Asset Quality
(Rs. crore) Classification | PUBLIC Improving Asset Quality 8.87 8.78 4450 7.94 4213 4143 3431 6.03 2420 2351 2366 1961 2132 1809 1719 5.03 1458 2.27 1261 3.96 957 3.45 468 2.3 0.74 Mar 19 Mar 20 Mar 21 Mar 22 Mar 23 Mar 19 `Mar 20 Mar 21 Mar 22 Mar 23 Gross NPA Net NPA NPA Provision Net NPA% Gross
Slide 29: Provisions Coverage
Classification | PUBLIC Provisions Coverage 92.14% 4.00% 92.14 80.27% 0.8 80.27 72.70% 68.90% 72.70 68.90 56.86% 2.93% 56.86 65.62 2.56% 63.25 2.00% 55.80 57.11 0.4 44.07 1.47% 1.45% 1.26% 0 0.00% Mar 19 Mar 20 Mar 21 Mar 22 Mar 23 PCR Credit costs Mar 19 `Mar 20 Mar 21 Mar 22 Mar 23 Provision Cover
Slide 30: Provisions and Contingencies
(Rs. crore) Classification | PUBLIC Provisions and Contingencies Quarter 12 Months Provision for Mar 23 Mar 22 Mar 23 Mar 22 NPA 120 143 717 635 Standard Assets 7 6 35 17 Restructured Advances 110 (7) 95 67 Other credit related items 50 (6) 87 - Sub-total – Credit Provisions 287 136 934 719 Others 6
Slide 31: Restructured Accounts
(Rs. crore) Classification | PUBLIC Restructured Accounts Mar 23 Mar 22 Dec 22 Particulars Standard NPA Standard NPA Standard NPA Resolution Framework - 2.0 579 85 769 35 632 66 COVID 19 - Resolution Framework 256 125 425 39 356 46 MSME 140 130 243 194 167 147 CDR - - 3 - - Others* 1 26 195 49 - 37
Slide 32: Movement of Standard Restructured Advances for the quarter
(Rs. crore) Classification | PUBLIC Movement of Standard Restructured Advances for the quarter Jan 23 to Mar 23 Jan 22 to Mar 22 Particulars A/c’s Amt. A/c’s Amt. A. Position at the beginning of the period 2631 1,160 3,329 1,616 B. Addition during the period - - 1 134 C. Additions in existing A/c’s
Slide 33: Sector-wise Standard Restructured Advances
(Rs. crore) Classification | PUBLIC Sector-wise Standard Restructured Advances S. Amount Stressed Book Analysis SECTOR 5.00 N. Mar 23 Dec 22 3500 3042 1 Housing 258 271 2 Real Estate 149 163 3000 149 2746 3 Trade 87 92 3.80 130 4 Textile 58 73 2500 2163 3.28 5 Personal 45 49 1261 1098 119 1705 6 Inf
Slide 34: Governance Structure: Board of Directors & Management Team
Classification | PUBLIC Governance Structure Board of Directors & Management Team
Slide 35: Board of Directors
Classification | PUBLIC Board of Directors Dr Meena Hemchandra Shri B Ramesh Babu Shri M V Srinivasamoorthi Non-executive Independent Managing Director and Chief Executive Non-Executive Non-Independent Director ( Part-time) Chairperson Officer B.Sc., (Chemistry). M.A., (Economics), Ph.D.,(Economics)
Slide 36: Management Team (Business)
Classification | PUBLIC Management Team (Business) Year of Name Designation Experience Mr B Ramesh Babu 40+ Managing Director & CEO Mr J Natarajan 40+ President & chief Operating Officer Mr V Anburaj 37+ Head-Commercial Banking Mr R N Chandrasekaran 30+ Head- Corporate & Institutional Group Mr Dolph
Slide 37: Management Team (Control & support)
Classification | PUBLIC Management Team (Control & support) Year of Name Designation Experience Mr V Srinivasan 34+ Head-Credit Monitoring, Legal & Recovery Mr S Sekar 38+ Chief Information Officer Mr K V S M Sudhakar 36+ Chief Compliance Officer Mr Immanuel Gnanaraj Daniel 27+ Head- Human Resources
Slide 38: Building a strong digital ecosystem
Classification | PUBLIC Building a strong digital ecosystem
Slide 39: DLite Digital Banking
Classification | PUBLIC Digital Banking End to end Digital Onboarding through AOS for Both NTB & ETB 150+ Services Offered Integrated with IRCTC for through DLite App ticket booking 01 Current Account All the Current Accounts 03 opened digitally through Saving Account Term Deposits DLite assisted mo
Slide 40: Digital Banking
Classification | PUBLIC Digital Banking Pre Approved Digital Loan Offers Strong & Secure API Stack Pre- Strong 1300+ APIs with scalable and reliable architecture AMAZON Pre- Approved supports digital journeys across verticals BNPL Approved PL Credit Cards Offering Buy Now 2 Minutes PL Customers are
Slide 41: Digital Loan Origination System
Classification | PUBLIC Digital Loan Origination System Caters to Retail, Commercial and MSME Segment First Bank to Retail, Commercial, Highly Scalable implement End-End Corporate, Agri Architecture Digital Lending Co-Origination & Co-lending 01 03 05 02 04 Faster Sanction with Seamless integration
Slide 42: Digital Partnerships
Classification | PUBLIC Digital Partnerships ASSETS LIABILITIES NOCPL www.kvb.co.in
Slide 43: Environmental Social Governance
Classification | PUBLIC Environmental Social Governance
Slide 44: Journey of ESG
Classification | PUBLIC Journey of ESG Initiation of CSR Published first Business Responsibility Publication of activities Report Business Best Private Sector Bank for Priority responsibility and 2013-14 Sector Lending on promoting marginalized stakeholders and Rural sustainable reporting Developmen
Slide 45: ESG
Classification | PUBLIC ESG HIGHLIGHTS ESG ALIGNMENT GOALS MAPPED TO SDG Framed comprehensive ESG policy aligning with 1 Aligned with global practices of UN SDGs for measuring, monitoring and reporting. 2 ENVIRONMENT & SOCIAL DUE DILIGENCE guided by broader UN SDG goals and developed with reference
Slide 46: ESG Alignment
Classification | PUBLIC ESG Alignment • The bank has strengthened its • One of the leaders in exhibiting strong • Board of Directors approved ESG GOVERNANCE ENVIRONMENTAL lending decisions by adopting a diversity with 21.8% women Policy. SOCIAL strategic roadmap for ESG workforce • Exclusive committ
Slide 47: ESG Initiatives taken this year
Classification | PUBLIC ESG Initiatives taken this year Green & climate resilient village in Manavadi village Panchayat, Karur Solid Waste Management Program and Provision of Garbage vehicle Empowered Rural Women from economically weaker sections Water on wheels Rural drinking water mobility & stora
Slide 48: Awards and Accolades for the Quarter
Classification | PUBLIC Awards and Accolades for the Quarter MSME MSME 9th MSME 9th MSME Banking Banking EAST CAPITAL Excellence Excellence Excellence Excellence Awards by Awards by Award 2022 Award 2022 by ASSOCHAM ASSOCHAM by CIMSME CIMSME WINNER WINNER RUNNER WINNER RUNNER DISCOVERY OF THE YEAR F
Slide 49: Shareholding pattern External Ratings
Classification | PUBLIC Shareholding pattern External Ratings Rating Agency Instrument Ratings Promoter, 2.24 Resident Mutual Fund, Individual, 43.73 26.49 Certificate of A1+ Deposits Insurance Companies, 2.91 Tier II Bonds A+ (stable) Tier II Bonds A+ Foreign Portfolio Investors others, 6.70 Catego
Slide 50: Dynamic workforce
Classification | PUBLIC Dynamic workforce Leading to improved Efficiency 14.25 18 9.2 17 14 15 14 4.6 2.8 3.0 FY 19 FY 20 FY 21 FY 22 FY 23 FY 19 FY 20 FY 21 FY 22 FY 23 Business per employee Profit per employee (Rs. Lakhs) 176 160 142 149 138 FY 19 FY 20 FY 21 FY 22 FY 23 Business per branch (Rs. C
Slide 51: Decade of Sustained Growth
(Rs. crore) Classification | PUBLIC 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 2022-23 Paid up Capital 107 107 122 122 122 145 160 160 160 160 160 Reserves 2,978 3,219 4,124 4,451 4,723 6,066 6,205 6,440 6,760 7,436^ 8,424 Owned fu
Slide 52: Thank You
Classification | PUBLIC Thank You