Karur Vysya Bank Ltd. · NSE:KARURVYSYA
Karur Vysya Bank — Q3 FY2021-22 Earnings Presentation
37 slides from Karur Vysya Bank's earnings presentation, Jan 31, 2022
Slide 1: Intimation of Investor Presentation to Stock Exchanges
Smart 'way to bank IRC: F48: 13:33:2022 3 1.0 1.2022 The Manager, The Manager, National Stock Exchangeof 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 (East), Mumbai -
Slide 2: Business Performance 31.12.2021
31.12.2021 Business Performance
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: Highlights Q3 - FY 2021-22
Highlights Q3 - FY 2021-22
Slide 5: Strong presence in India's fast growing hinterland
Strong presence in India’s fast growing hinterland Category 31.12.21 31.03.21 31.03.20 Branches 781 780 779 ATM’s + Cash Recyclers 2,227 2,236 2,224 1 6 1 12 No. of Branches 6 Category BBU* CBU* Other offices^ Metro 201 10 9 8 1 6 1 Urban 156 4 - - 15 4 1 14 Semi Urban 297 2 - - 1 Rural 127 - - - 5
Slide 6: Key Highlights for the Quarter
Key Highlights for the Quarter • Total business crossed Rs.1,22,000 crore • Overall advances grew by 7% y-o-y and stood at Rs. 55,793 crore Granular Growth • Total deposits grew by 8%; stood at Rs. 66,871crore • CASA share at 36%; Saving deposit grew by 13% • Net profit stood at Rs. 185 crore - high
Slide 7: Key Performance Indicators – KPIs (quarter)
(Rs. crore) Key Performance Indicators – KPIs (quarter) Growth Particulars Dec 21 Dec 20 Sep 21 Jun 21 Mar 21 Particulars %/bps Net interest income 686 584 18 680 638 613 Operating profit1 401 269 49 375 412 202 Net profit 185 35 429 165 109 104 Advances (Gross) 55,793 52,113 7 53,850 52,315 52,820
Slide 8: Profit & Loss Statement
(Rs. crore) Profit & Loss Statement Quarter 9 months Particulars Growth % Growth % Dec 21 Dec 20 Dec 21 Dec 20 (YoY) (YoY) Net Interest Income 686 584 18 2,005 1,747 15 Other Income 196 263 (25) 564 750 (25) - Fee income 162 151 7 452 391 16 - Others1 34 112 (70) 112 359 (69) Total Income 882 847 4
Slide 9: Key Ratios
Key Ratios Quarter 9 months Particulars Dec 21 Dec 20 Dec 21 Dec 20 Cost of Deposits (%) 4.22 4.80 4.35 5.07 Yield on Advances (%) 8.42 8.66 8.53 9.07 Cost of Funds (%) 4.24 4.83 4.39 5.11 Yield on Funds (%) 7.26 7.42 7.36 7.75 Net Interest Margin (%) 3.68 3.29 3.66 3.37 Spread (%) 3.02 2.59 2.97 2.
Slide 10: Capital to Risk Weighted Assets Ratio – Basel III
(Rs. crore) Capital to Risk Weighted Assets Ratio – Basel III Particulars Dec 21 Dec 20 Sep 21 CRAR % 18.79 18.52 18.82 Total capital 7,531 7,211 7,488 Tier I capital 6,717 6,409 6,681 Tier II capital 814 802 807 RWA 40,074 38,946 39,782 Credit risk 32,064 31,603 31,914 Operational risk 6,071 6,006
Slide 11: Balance Sheet
(Rs. crore) Balance Sheet Particulars Dec 21 Dec 20 YoY (%) Capital & Liabilities Capital 160 160 - Reserves and Surplus 7,220 6,695 8 Deposits 66,871 62,089 8 Borrowings 1,296 1,390 (7) Other Liabilities and Provisions 2,065 2,264 (9) Total 77,612 72,598 7 Assets Cash and Balances with RBI 3,278 2,
Slide 12: Driving growth across verticals
Driving growth across verticals
Slide 13: Total Business
(Rs. crore) Total Business Parameter Dec 21 Dec 20 YoY % Sep 21 Total Deposits 66,871 62,089 8 65,410 Gross Advances 55,793 52,113 7 53,850 Total Business 1,22,664 1,14,202 7 1,19,260 Deposit break up Parameter Dec 21 Dec 20 YoY % Sep 21 Demand Deposit 7,404 6,742 10 6,970 Saving Deposit 16,723 14,7
Slide 14: Growing our books responsibly
(Rs. crore) Growing our books responsibly Particulars Dec 21 Dec 20 YoY % Sep 21 Agriculture 12,468 11,085 12 12,084 Retail (Personal Banking) 12,932 11,611 11 12,510 Commercial 18,039 16,755 8 17,231 Corporate 12,354 12,662 (2) 12,025 Gross Advances 55,793 52,113 7 53,850 17056 17500 16687 18039 16
Slide 15: Retail portfolio distribution
(Rs. crore) Retail portfolio distribution Particulars Dec 21 Dec 20 YoY % Sep 21 Housing loan 5,401 4,891 10 5,226 Jewel loans 1,714 1,574 9 1,778 Mortgage (LAP) loans 1,685 1,602 5 1,632 Vehicle loans 1,047 1,002 4 1,040 Personal loans 398 541 (26) 437 Educational loans 164 185 (11) 170 Others loan
Slide 16: Driving growth across verticals
(Rs. crore) Driving growth across verticals Ticket size of Commercial Book Gold Loan portfolio (Bank as a whole) 30 16000 25 25 25 14000 25 23 24 5% 10% 13473 13718 12852 13206 12000 20 12069 10000 85% 15 8000 10 6000 < 5 crore >= 5 crore < 10 crore >= 10 crore 5 4000 0 2000 Dec 20 Mar 21 Jun 21 Sep
Slide 17: Corporate Loan Book
(Rs. crore) Corporate Loan Book Standard Corporate advances > 100 crore 4200 8.0 5.5 5.5 5.5 4.6 4.7 2600 5.0 2887 2927 2884 2453 2,622 1000 2.0 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Amount > 100cr % on advance Consortium/MBA Sole Banking NBFC Govt/PSU 14% 30% 10% 18% 15% Consortium 28% • ~70% of corpo
Slide 18: ECLGS Portfolio
(Rs. crore) ECLGS (Emergency Credit Line Guarantee Scheme) Portfolio Vertical wise Vertical Dec 21 Sep 21 Mar 21 Agriculture 5 5 5 Commercial 1,477 1,382 1,431 Corporate 805 745 721 TOTAL 2,287 2,132 2,157 Scheme wise Particulars O/s as on 31.12.2021 NPA ECLGS 1.0 1,860 42 ECLGS 2.0 401 - ECLGS 3.0
Slide 19: Sectoral composition
Sectoral composition Rs.55,793 crore Breakup of Industrial exposure (Rs. 14,147 crore) OTHER EXPOSURES GEMS & JEWELLERY 9% 6% BILLS MINING AND OTHERS 2% NBFC QUARRYING 6% 3% 3% Agri INFRASTRUCTURE 2% MANUFACTURING CEMENT CONSTRUCTION 16% SECTOR CRE 3% 4% 25% 6% ALL ENGINEERING 4% WOOD AND ITS PRODUC
Slide 20: Secured Exposure
(Rs. crore) Secured Exposure Nature of security 31.12.2021 Exposure backed by - Letter of Credit 322 Govt. Guarantee (Emergency Credit Line Guarantee Scheme- ECLGS) 2,288 Liquid Assets ^ 14,556 Vehicles 2,529 Commodities 128 Total (1) 19,823 Exposure secured by Immovable Property ( Coverage) > 100 2
Slide 21: Portfolio performance
Portfolio performance Portfolio performance SMA 30+ - 1.32 % 117 100 107 110 Balance in INR , Base Mar.31,2017=100 94 SMA 30+ SMA 1 - 0.93% 75 76 SMA 2 - 0.39% 63 44 44 46 45 42 43 34 23 26 19 23 16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep
Slide 22: Liability Franchise : Predominantly Retail
Liability Franchise : Predominantly Retail 25% Term Deposits 11% 64% Demand Deposits • Term deposits are Savings Deposits primarily retail deposits • 95% of term deposits are < Rs.5 Cr Concentration of Top 20 depositors Low dependence on wholesale deposits 5% 12% 6% 6% 6% 6% 6% 21% 62% FY 18 FY 19 F
Slide 23: Investment Portfolio
Investment Portfolio Investments (Rs. crore) Investment Category 17654 16739 16465 16.72% Dec 20 Mar 21 Dec 21 83.28% HTM AFS Investment Composition Duration 3.18% AFS HFT HTM Total 9.51% SLR 0.86% 1.92 - 3.41 3.20 Shares Yield on Investments SR 5.30% 5.30% 5.40% 86.45% Debentures/CD/MF/CP Dec 20 Ma
Slide 24: Disciplined approach to reduce stressed assets
Disciplined approach to reduce stressed assets
Slide 25: Movement of NPA
(Rs. crore) Movement of NPA Particulars Oct 21 - Dec 21 Oct 20 - Dec 20 Gross NPAs Opening Balance 3,972 3,998 Additions during the period 224 5 Reductions during the period 308 161 Closing Balance 3,888 3,842 Net NPAs Opening Balance 1,538 1,428 Additions during the period (78) (83) Reductions 104
Slide 26: Vertical wise NPA and Collection efficiency
(Rs. crore) Vertical wise NPA Advances O/s. NPA as on NPA Additions NPA Reduction Total NPA Provisions VERTICAL Dec 21 Sep21 Q3 Q3 Dec 21 Dec 21 Agriculture 12,468 253 11 17 248 193 Retail (Personal Banking) 12,932 385 77 54 408 259 Commercial 18,039 1,423 83 112 1,394 751 Corporate 12,354 1,910 53
Slide 27: NPAs & Provisions
(Rs. crore) NPAs & Provisions 4450 8.79 8.68 7.85 4213 4143 3888 6.97 3016 6.56 2420 2351 2366 2467 1863 1961 1809 1719 4.98 1356 4.46 3.92 1091 3.41 2.55 Mar-18 Mar-19 `Mar 20 Mar-21 Dec-21 Gross NPA Net NPA NPA Provision Mar-18 Mar-19 `Mar 20 Mar 21 Dec 21 Net NPA% Gross NPA% 0.8 68.90% 72.70% 4.0
Slide 28: Provisions and Contingencies
(Rs. crore) Provisions and Contingencies Quarter 9 months Provision for Dec 21 Dec 20 Dec 21 Dec 20 NPA 99 13 492 342 Standard Assets 7 (3) 11 4 Restructured Advances 11 60 74 61 Other credit related items 18 - 6 - Covid-19 relief - 80 - 253 Total provision – credit related 135 150 583 660 Others 11
Slide 29: Restructured Accounts
(Rs. crore) Restructured Accounts Dec- 21 Sep - 21 June - 21 Particulars Standard NPA Standard NPA Standard NPA Resolution Framework - 2.0 817 19 723 13 90 3 COVID 19 - Resolution Framework 432 43 490 14 561 8 MSME 303 156 356 113 361 115 CDR - 3 - 3 - 3 Others* 64 120 10 215 16 191 Total 1,616 341
Slide 30: Movement of Standard Restructured Advances
(Rs. crore) Movement of Standard Restructured Advances Oct 21 to Dec 21 Oct 20 to Dec 20 Particulars A/c’s Amt. A/c’s Amt. A. Position at the beginning of the period 3,479 1,579 73 209 B. Addition during the period 85 155 1,477 475 C. Additions in existing A/c’s - 22 - 11 D. Addition through upgrada
Slide 31: Sector-wise Standard Restructured Advances
(Rs. crore) Sector-wise Standard Restructured Advances S. Amount SECTOR Stressed Book Analysis N. Dec 21 Sep 21 1 Housing Loan 356 381 2 Real Estate 262 220 2376 3039 3200 3364 3170 5.00 3 Trade 185 172 3500 4 Textile 107 110 4.31 4.43 4.07 247 198 5 Personal Loan 90 99 3000 327 4.08 6 Infrastructur
Slide 32: Building a strong digital ecosystem
Building a strong digital ecosystem
Slide 33: Building a strong digital ecosystem
Building a strong digital ecosystem DLite – KVB’s digital banking platform 11% 30.8+ lakh Growth in digital DLite application transactions in Q3 FY22 downloads over Q2FY22 2.7+ lakh 16.7+ lakh 93% Digital accounts Registered users of Share of digital opened Dlite transaction DLite – Digitally enable
Slide 34: Delivery Channels
Delivery Channels Mobile transactions volume (through Dlite) Cash Deposit Machines (Nos.) 575 583 254 565 243 222 533 534 146 FY 18-19 FY 19-20 FY 20-21 Dec 21 * Mar-18 `Mar- 19 `Mar- 20 `Mar- 21 Dec-21 Nos. in lakhs *Annualized Digital vs Branch Transaction (%) 89% 93% 11% 7% Qtr Dec-20 Qtr Dec-21
Slide 35: Dynamic workforce
Dynamic workforce Leading to Improved Productivity 8.3 17 14 15 4.6 14 4.4 13 2.8 3.0 FY 18 FY 19 FY 20 FY 21 Dec-21 FY 18 FY 19 FY 20 FY 21 Dec 21* Business per employee (Rs. Crore) Profit per employee (Rs. Lakhs) *Annualized 142 149 157 138 130 FY 18 FY 19 FY 20 FY 21 Dec-21 Business per branch (R
Slide 36: Sustained Decade of Growth
(Rs. crore) Sustained Decade of Growth Year 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Paid up Capital 107 107 107 122 122 122 145 160 160 160 Reserves 2,601 2,978 3,219 4,124 4,451 4,723 6,066 6,205 6,440 6,800^ Owned funds 2,708 3,085 3,326 4,246 4,573 4,845 6,
Slide 37: Thank You
Thank You
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