Kotak Mahindra Bank Limited · NSE:KOTAKBANK
Kotak Mahindra Bank — Q3 FY2020 Earnings Presentation
38 slides from Kotak Mahindra Bank's earnings presentation, Jan 21, 2020
Slide 1: Kotak Mahindra Bank covering letter to exchanges
ekotak Kotak Mahindra Bank 21" January 2020 The Manager The Manager Corporate Relationship, National Stock Exchange of India Ltd. BSE Limited, Exchange Plaza, 1" Floor, New Trading Ring, 5th Floor, Rotunda Building, Plot No.C/1, G Block, Phiroze J eejeebhoy Towers, Bandra-Kurla Complex, Dalal Street
Slide 2: Investor Presentation Q3FY20
INVESTOR PRESENTATION Q3FY20
Slide 3: Standalone Highlights Q3FY20
Standalone Highlights Q3FY20 PAT NIM* LOANS NET NPA ` 1,596 cr 4.69% ` 216,774 cr 0.89% [` 1,291 cr] [4.31%] [` 196,432 cr] [0.71%] ROA^ CAR BRANCHES CASA 18.2% [18.1%] Tier I 1,539 1.99% 17.7% [1,453] 53.7% [1.65%] [50.7%] [17.6%] Figures in [brackets] are Q3FY19 numbers * Doesn’t include dividend
Slide 4: Profit and Loss Account
Profit and Loss Account ` cr Q3FY20 Q3FY19 Q2FY20 FY19 Net Interest Income 3,430 2,926 3,350 11,206 Other Income 1,341 977 1,224 4,657 Fee and Services 1,136 1,051 1,162 4,287 Others 205 (74) 62 370 Net Total Income 4,771 3,903 4,574 15,863 Employee Cost 1,092* 837 915 3,159 Other Operating Expenses
Slide 5: Fees & Services
Fees & Services ` cr Q3FY20 Q3FY19 Q2FY20 FY19 Distribution & Syndication Income 128 138 115 689 General Banking Fees 978 890 1,017 3,508 Others 30 23 30 90 Fees and Serv ices 1,136 1,051 1,162 4,287 4
Slide 6: Deposits
Deposits CASA (` cr) Highlights CASA 53.7% 50.7% 53.6% 52.5% % CASA and TDs below ` 5 cr constitute 87% (PY: 80%) of total deposits TDs below ` 1 cr were ` 64,294 cr (PY: ` 53,620 cr) TD Sweep: 7.4% (PY: 6.7%) of total deposits Cost of SA for Q3FY20: 5.27% (Q3FY19: 5.67%) 1,539 branches as
Slide 7: Advances
Advances 31-Dec-19 (` 216,774 cr) Advances 31-Dec- 31-Dec- 30-Sep- ` cr 19 18 19 Corp & Business Bkg 83,423 80,984 82,374 CV/CE 18,993 17,999 19,688 Agriculture Division 27,736 23,742 27,068 Home Loans & LAP 46,031 38,305 44,371 Small Business, PL & CC 35,636 31,085 34,852 Others 4,955 4,317 4,946 T
Slide 8: Asset Quality
Asset Quality Asset Quality ` cr 31-Dec-19 31-Dec-18 30-Sep-19 Credit Cost on advances GNPA 5,413 4,129 5,034 (incl. standard prov isions & NNPA 1,925 1,397 1,811 UFCE) 9MFY20: 67 bps GNPA (%) 2.46% 2.07% 2.32% (annualised) NNPA (%) 0.89% 0.71% 0.85% SMA2 outstanding - ` 274 cr, PCR (excl techni
Slide 9: Specific Sectors Exposure
Specific Sectors Exposure Specific Sectors as per Basel III Outstanding* (` cr) 31-Dec-19 % 31-Dec-18 % 30-Sep-19 % NBFCs 11,756 4.2% 11,782 4.5% 10,964 4.0% :Of which HFC 4,311 1.5% 3,278 1.3% 3,563 1.3% CRE (excl LRD) 5,844 2.1% 4,055 1.6% 5,609 2.0% LRD 4,521 1.6% 4,206 1.6% 4,296 1.6% Total 279,
Slide 10: Balance Sheet
Balance Sheet ` cr 31-Dec-19 31-Dec-18 30-Sep-19 Capital & Reserves and Surplus 47,606 41,426 45,912 Deposits 239,354 213,804 233,071 CA 36,788 31,745 38,200 SA 91,729 76,679 86,712 Term Deposits 110,837 105,380 108,159 Of which: TD Sweep 17,656 14,423 16,548 Borrowings 26,465 29,129 26,665 Other Li
Slide 11: Digital Platforms
Digital Platforms New Features Q3FY20 (volumes) • Recurring Deposit sourced • New Insurance section on Mobile 92% digitally Customers can now apply for insurance products • Fixed Deposit sourced 76% digitally • Apply for Payday loan on mobile Customers can avail a pre-approved payday loan up to 50%
Slide 12: Digital Payments, Lending, API Banking & Partnerships
Digital Payments, Lending, API Banking & Partnerships Key Highlights Key Trends 1.82X growth of volumes over Open Banking has enabled Q3FY19 60 API relationships ~34X growth of registered UPI merchant base in Q3FY20 v/s Consumer UPI P2M (Person to Q3FY19 Merchant) Checkouts have grown 4.2X in 10X gr
Slide 13: Digital Update – Subsidiaries
Digital Update – Subsidiaries Kotak Securities 126% 72% growth 27% growth growth YoY in YoY in Online YoY in Mobile Mobile Total Total ADV Cash ADV ADV Kotak Life Insurance Kotak General Insurance 95% Individual Policies sourced in Q3FY20 through Genie (Tablet based end to end sales solution) Digita
Slide 14: Consolidated Highlights Q3FY20
Consolidated Highlights Q3FY20 PAT CAR LOANS BOOK VALUE 19.4% PER EQ. [18.7%] SHARE ` 2,349 cr Tier I ` 250,172 cr ` 337.6 [` 1,844 cr] 19.0% [` 232,756 cr] [` 291.9] [18.3%] NIM* CAPITAL & NET NPA TOTAL RESERVES ASSETS 4.66% ` 65,018 cr 0.87% ` 407,816 cr [4.22%] [` 56,186 cr] [0.67%] [` 369,261 cr
Slide 15: Consolidated PAT
Consolidated PAT ` cr Q3FY20 Q3FY19 Q2FY20 FY19 Kotak Mahindra Bank 1,596 1,291 1,724 4,865 Kotak Mahindra Prime 187 139 172 599 Kotak Mahindra Investments 64 40 67 207 Kotak Securities 128 99 149 452 Kotak Mahindra Capital 40 3 1 63 Kotak Mahindra Life Insurance 166 125 144 507 Kotak AMC and TC 91
Slide 16: Entity wise Capital & Reserves and Surplus
Entity wise Capital & Reserves and Surplus ` cr 31-Dec-19 31-Dec-18 30-Sep-19 Kotak Mahindra Bank 47,606 41,426 45,912 Kotak Mahindra Prime 5,927 5,251 5,740 Kotak Mahindra Investments 1,783 1,516 1,719 Kotak Securities 4,366 3,867 4,238 Kotak Mahindra Capital 629 551 589 Kotak Mahindra Life Insuran
Slide 17: Consolidated Advances
Consolidated Advances 31-Dec-19 (` 250,172 cr) Consolidated Advances ` cr 31-Dec-19 31-Dec-18 30-Sep-19 Corp & Business Bkg 93,775 90,367 93,113 CV/CE 18,993 17,999 19,688 Agriculture Division 27,736 23,742 27,068 Auto loans 18,008 20,225 19,055 Home Loans & LAP 46,031 38,305 44,371 Small Business,
Slide 18: Kotak Mahindra Life Insurance
Kotak Mahindra Life Insurance Gross Written Premium (` cr) Highlights 2,645 1,836 2,190 8,168 Gross Written Premium growth 44.0% YoY Individual Premium growth 29.3% YoY Group Premium growth 89% YoY AUM (Policyholders’) as on Dec 31, 2019: ` 32,670 cr, growth of 29.0% YoY 13th Month persist
Slide 19: Kotak Mahindra Capital Company
Kotak Mahindra Capital Company Equity Advisory BAJAJ FINANCE LIMITED Buy side Advisory to ArcelorMittal for # Qualified Institutional Placements India’s Largest IBC Recovery of Essar ~` 42,000 cr Steel ` 8,500 cr UJJIVAN SMALL FINANCE BANK LIMITED Advised Aakash Education on a # Initial Public Offer
Slide 20: Capital Markets & Advisory
Capital Markets & Advisory Kotak Securities (` cr) Q3FY20 Q3FY19 Q2FY20 FY19 Total Income 409 363 407 1,582 Profit Before Tax 171 149 181 680 Profit After Tax 128 99 149 452 Market Share* (%) (YTD) 1.6 2.9 1.7 2.6 *excluding BSE Derivative segment Market Share in Cash Segment 9MFY20 – 9.2% (9MFY19 –
Slide 21: AUM & RV
AUM & RV Dec 31, 2019 Dec 31, 2018 29% AUM ` 263,006 cr AUM ` 203,222 cr Relationship Value of Wealth + Priority as on Dec 31, 2019 ~ ` 306,000 cr (PY: ~` 260,000 cr) 20
Slide 22: Kotak Mahindra AMC & Trustee Co.
Kotak Mahindra AMC & Trustee Co. Average Assets Under Management (` cr) - Overall Average Assets Under Management (` cr) - Equity ` cr Q3FY20 Q3FY19 Q2FY20 FY19 Highlights Overall Ranking on AAUM improved to 6th Profit Before Tax 122 115 104 388 in Q3FY20 (Q3FY19: 7 th) Profit After Tax 91 76 85 2
Slide 23: Kotak Mahindra Prime
Kotak Mahindra Prime Customer Assets* (` cr) & NNPA (%) ` cr Q3FY20 Q3FY19 Q2FY20 FY19 NII 312 274 305 1,104 Other Income 65 56 64 288 NII and Other Income 377 330 369 1,392 Profit Before Tax 250 213 234 905 Profit After Tax 187 139 172 599 CAR (%) (incl unaudited profits) 22.6 ROA (%) - annualised
Slide 24: Kotak Mahindra Investments
Kotak Mahindra Investments Customer Assets* (` cr) & NNPA (%) ` cr Q3FY20 Q3FY19 Q2FY20 FY19 NII 87 66 89 290 Other Income 22 12 23 97 NII and Other Income 109 78 112 387 Profit Before Tax 84 61 87 316 Profit After Tax 64 40 67 207 CAR (%) (incl unaudited profits) 25.1 ROA (%) - annualised 2.9 * Inc
Slide 25: Geographical Presence
Geographical Presence 2 Branches 1,539 [No./%] 11 North 89 470/31% 10 68 98 West East 64 82 1 473/31% 118/8% 5 22 1 South 1 147 46 9 40 478/31% 21 2 18 Branch Classification 317 87 7 108 163 No of ATMs 2,447 88 32 1st International Branch in DIFC, Dubai 24
Slide 26: Group Profile
GROUP PROFILE
Slide 27: The Journey So far…
The Journey So far… Acquired Acquired Bill Investment Mutual Alternate Scheme of BSS Discount Banking Fund Securities Assets Pinebridge MF Microfinance 1985 1991 1998 2001 2004 2014 2017 1990 1993 2000 2003 2008 2015 Auto IPO Life BANK ARC ING Vysya Finance Insurance Merger Kotak Mahindra General In
Slide 28: Kotak - Concentrated India; Diversified Financial Services
Kotak - Concentrated India; Diversified Financial Services KOTAK MAHINDRA BANK Commercial Bank & Holding Company Kotak Kotak Mahindra Kotak Investment Kotak Mahindra Mahindra Kotak Securities Investments Advisors Capital Company Prime ∞ Car Finance ∞ Investments ∞ Alternate Assets ∞ Investment ∞ Sto
Slide 29: Present Across the Entire Value Chain
Present Across the Entire Value Chain Platform with Wide Product Portfolio Corporate Banking Commercial Banking Consumer Banking Non-Banking ∞ Corporate Loans ∞ Agriculture Finance ∞ Auto Loans ∞ Mutual Funds ∞ Trade Finance ∞ Tractor Finance ∞ Home loans, LAP ∞ Alternate Assets ∞ Commercial Real Es
Slide 30: Kotak Uniqueness – Strengths
Kotak Uniqueness – Strengths An integrated Ability to Prudent risk Strong brand Strong and identify and management and governance diversified capitalise on capabilities leadership in culture with business opportunities various experienced model businesses management ∞ Balance sheet, ∞ Despite of bei
Slide 31: The Path of Leadership
The Path of Leadership Attract & Retain Talent - High degree of stability within Risks Management the management team, many Strong Capital Position have been with the Group for - Extensive on-the-ground over 15 years - Capital adequacy amongst the presence and superior highest in the Indian banking
Slide 32: Bank Awards & Recognition
Bank Awards & Recognition Banker’s Choice Awards - Best Cash Mgt Bank India Banking Summit & - Best Supplier Awards 2019 Relationship Mgt - Best product Innovator - Best E-commerce of the year for Initiative, Application Whatsapp Banking or Programme: “Kotak - Best Customer Service Magna Awards 2019
Slide 33: Awards and Recognition
Awards and Recognition Thomson Reuters Lipper India 2019 fund Awards – India Fund Award for Kotak Equity Arbitrage Fund Euromoney Private Banking and Regular Plan–Growth Option (5 yrs & 10 yrs) Wealth Management Survey, 2019 Ranked #1 Best Value Creater Fund Debt : Business - Best Private Banking Se
Slide 34: Talent: Professional Entrepreneurs at work
Talent: Professional Entrepreneurs at work DIPAK GUPTA Joined Kotak in 1992; First charge | Senior Manager, Kotak Mahindra Finance Current charge | Joint Managing Director, Kotak Mahindra Bank On being a professional entrepr eneur | I used to be an engineer and then a consultant. My first job
Slide 35: Talent: Professional Entrepreneurs at work
Talent: Professional Entrepreneurs at work GAURANG SHAH Joined Kotak in 1996; First charge | Chief Operating Officer, Kotak Mahindra Primus; Current charge | Whole-time Director, Kotak Mahindra Bank On being a professional entr epreneur Came from corporate finance background & joined Kotak’s C
Slide 36: Talent: Professional Entrepreneurs at work
Talent: Professional Entrepreneurs at work JAIMIN BHATT Joined Kotak in 1995; First charge | Proprietary Investments Current charge | President - Group CFO, Kotak Mahindra Bank On being a professional entrepren eur | My initial work at Kotak was in the area of Proprietary Investments, where I
Slide 37: Talent: Professional Entrepreneurs at work
Talent: Professional Entrepreneurs at work NILESH SHAH Joined Kotak in 2015; First charge | Managing Director – Kotak Mahindra Asset Management Co. Ltd. Current charge | Managing Director – Kotak Mahindra Asset Management Co. Ltd. On being a professional entr epreneur |We are in the business o
Slide 38: 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
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