Karur Vysya Bank Ltd. · NSE:KARURVYSYA
Karur Vysya Bank — Q3 FY2020-21 Earnings Presentation
45 slides from Karur Vysya Bank's earnings presentation, Feb 11, 2021
Slide 1: Regulation 30 intimation letter to NSE
S m a r t wttray .ta bank The Manager, National Stock Exchange of India Ltd., Exchange Plaza, 5th Floor, Plot No. C/ 1, 'G' Block, Bandra - Kurla Complex, Bandra (East), Mumbai - 400 051 Dear Sir, Sub: Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 - Intima
Slide 2: Investor Presentation 31.12.2020
Investor Presentation 31.12.2020
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: Business – growing sequentially
(Rs. crore) Business – growing sequentially Financial Indicators YoY QoQ YTD Parameter 31.12.2020 31.12.2019 Growth 30.09.20 Growth 31.03.20 Growth % % % Total 62,089 62,262 - 61,122 2 59,075 5 Deposits Gross 52,113 49,613 5 50,408 3 48,516 7 Advances Advances 52,113 48,088 8 50,408 3 47,716 9 (ex-I
Slide 5: Quarterly Financials
(Rs. crore) Quarterly Financials Financial Indicators YoY Growth QoQ Growth Parameter 31.12.20 31.12.19 30.09.20 % % Net Interest Income 584* 577 1 601 (3) Total Income 835 837 - 873 (4) Operating Profit 257 385 (33) 449 (43) Operating Profit (Excl XI Bipartite 392 393 - 457 - Settlement provision)
Slide 6: CRAR & Asset Quality
(Rs. crore) CRAR & Asset Quality 31.12.20 31.12.19 31.03.20 30.09.20 Basel III Capital CRAR % 18.52 15.87 17.17 18.41 NPA Ratios Gross NPA 3,842 4,424 4,213 3,998 Net NPA 1,263 1,946 1,809 1,428 Gross NPA % 7.37 8.92 8.68 7.93 Net NPA % 2.55 4.13 3.92 2.99 PCR % 77.35 65.43 68.90 75.19 Provisions /
Slide 7: Gold Loan
(Rs. crore) Gold Loan Particulars Dec 20 Sep 20 June 20 Mar 20 Dec 19 Sep 19 Gold Loan Portfolio 12,069 11,149 9,948 9,227 8,580 8,130 % to Total Advances 23 22 20 19 17 16 12069 11149 9948 9227 8580 Dec 19 Mar 20 Jun 20 Sep 20 Dec 20 6
Slide 8: Business Profile (Averages)
(Rs. crore) Business Profile (Averages)* Y-o-Y YTD Particulars Dec 20 Dec 19 Growth Mar 20 Growth % % Avg. Deposits 60,218 61,189 (2) 61,103 (1) Avg. Demand Deposit 6,166 5,808 6 5,830 6 % to Total 10 9 10 Avg. Savings Deposit 13,843 12,157 14 12,308 12 % to Total 23 20 20 Avg. Time Deposit 40,209 4
Slide 9: Deposits
(Rs. crore) Deposits Particulars Dec 20 Dec 19 Y-o-Y Growth % Mar 20 YTD Growth % Total Deposits 62,089 62,262 - 59,075 5 Demand 6,742 6,260 8 5,504 22 Savings 14,758 12,803 15 13,003 13 CASA 21,500 19,063 13 18,507 16 CASA % 35 31 31 Term Deposits < 2 Crore 38,070 39,158 (3) 37,012 3 Term Deposits
Slide 10: Balance Sheet
(Rs. crore) Balance Sheet Particulars Dec 20 Dec 19 Y-o-Y (%) Capital & Liabilities Capital 160 160 - Reserves and Surplus 6,695 6,356 5 Deposits 62,089 62,262 - Borrowings 1,390 2,164 (36) Other Liabilities and Provisions 2,264 1,713 32 Total 72,598 72,655 - Assets Cash and Balances with RBI 2,652
Slide 11: Profit and Loss A/c
(Rs. crore) Profit and Loss A/c Quarter 9 months Particulars Dec 20 Dec 19 YoY (%) Dec 20 Dec 19 YoY (%) Net Interest Income 584 577 1 1,747 1,757 (1) Other Income 251 260 (3) 840 808 4 Total Income 835 837 - 2,587 2,565 1 Operating Expenses 578 452 28 1,407 1,304 8 Of above – Prov. for XI Bipartite
Slide 12: Fee & Other Income
(Rs. crore) Fee & Other Income Quarter 9 months Particulars Dec 20 Dec 19 YoY (%) Dec 20 Dec 19 YoY (%) TOTAL NON-INT. INCOME 251 260 (3) 840 808 4 1) Fee Income 151 178 (15) 391 499 (22) 2) Investment trading 54 45 20 352 203 73 profit 3) Forex Income 9 8 13 22 27 (19) 4) Others* 37 35 6 75 91 (18)
Slide 13: Fee based income
(Rs. crore) Fee based income Operating Profit vs Trading profit 510 136 178 120 45 • Non interest income accrues through 340 364 329 54 diverse sources - fee based, e- 240 296 transactions, third party products etc. 203 • ~30% share in total operating income -30 (Q3 FY 2020-21) Dec 19 Mar 20 June 20
Slide 14: Staff & Operating Expenses
(Rs. crore) Staff & Operating Expenses Quarter 9 months Particulars Dec 20 Dec 19 YoY (%) Dec 20 Dec 19 YoY (%) Staff Expenses 368 225 63 802 642 25 Of above – a) Prov. for employee 71 55 29 161 141 14 retirement benefits b) XI Bipartite Settlement provision* 135 8 - 152 25 - Other Operating Expense
Slide 15: Key Ratios (Qtr.)
Key Ratios (Qtr.) Dec 20 Particulars (without int. Dec 20 Dec 19 reversal) Cost of Deposits (%) 4.80 4.80 5.76 Yield on Advances (%) 9.08 8.66 9.51 Cost of Funds (%) 4.83 4.83 5.80 Yield on Funds (%) 7.71 7.42 8.35 NIM (%) 3.59 3.29 3.33 Spread (%) 2.88 2.59 2.55 Cost to Income Ratio (%) 65.10 69.23
Slide 16: Key Ratios (9 months)
Key Ratios (9 months) Dec 20 (without Particulars interest reversal) Dec 20 Dec 19 Cost of Deposits (%) 5.07 5.07 5.81 Yield on Advances (%) 9.21 9.07 9.66 Cost of Funds (%) 5.11 5.11 5.87 Yield on Funds (%) 7.85 7.75 8.51 NIM (%) 3.48 3.37 3.42 Spread (%) 2.74 2.64 2.64 Cost to Income Ratio (%) 53.
Slide 17: Advances Portfolio
(Rs. crore) Advances Portfolio Y-o-Y YTD Particulars Dec 20 Dec 19 Mar 20 Growth % Growth % Commercial 16,755 16,219 3 15,620 7 Retail (Personal Banking) 11,611 10,544 10 10,693 9 Agriculture 11,085 8,510 30 8,936 24 Corporate 12,662 12,815 (1) 12,467 2 Gross Advances (excl. 52,113 48,088 8 47,716 9
Slide 18: Advances – growth towards a granular portfolio
(Rs. crore) Advances – growth towards a granular portfolio 17056 16755 16219 15620 14169 13115 12767 12662 11278 11769 11193 11611 11085 8936 8510 8113 Mar 19 Dec 19 Mar 20 Dec 20 ABG CBG CIG PBG 34% 33% 32% 32% 28% 26% 26% 24% 23% 24% 22% 21% 22% 17% 18% 16% Mar 19 Dec 19 Mar 20 Dec 20 ABG CBG CIG
Slide 19: Retail Segment Growth
(Rs. crore) Retail Segment Growth 4,891 4,548 3,619 2,795 2,330 1,712 1,683 1,602 1,393 965 921 1,017 1,044 989 1,002 1,574 596 578 625 895 FY 17 FY 18 FY 19 FY 20 Dec 20 Housing Mortgage (LAP) Vehicle Jewel Loans Digital Retail Loan (excl. Jewel Loan) 465 555 172 388 445 126 Q1 Q2 Sanctioned Disbur
Slide 20: Retail Portfolio Distribution
(Rs. crore) Retail Portfolio Distribution Portfolio as at Segment Dec 20 Mar 20 Mar 19 Mar 18 Mar 17 Housing 4,891 4,548 3,619 2,795 2,330 Mortgage (LAP) 1,602 1,683 1,712 1,393 965 Vehicle 1,002 989 1,044 1,017 921 Jewel Loans 1,574 895 625 578 596 Personal Loans 541 561 424 296 316 Education Loans
Slide 21: Advances – Composition
(Rs. crore) Advances – Composition Particulars Amount % to Total Advance Y-o-Y Growth Dec 20 Dec 19 Dec 20 Dec 19 Amt % Manufacturing 11,848 11,777 23 24 71 1 Trading 7,230 7,134 14 14 96 1 Jewel loan 12,069 8,580 23 17 3,489 41 Personal segment@ 7,862 7,660 15 16 202 3 CRE 2,980 3,047 6 6 (67) (2)
Slide 22: Manufacturing Sector - Industry Wise
(Rs. crore) Manufacturing Sector - Industry Wise Amount % to Total Advance Y-o-Y Growth Industry Dec 20 Dec 19 Dec 20 Dec 19 Amount % Textile 3,901 3,814 7.5 7.7 87 2 Infrastructure 1,906 1,901 3.7 3.8 5 - Basic Metal & Metal Products 756 791 1.5 1.6 (35) (4) Food Processing 507 335 1.0 0.7 172 51 G
Slide 23: Infrastructure Credit Portfolio
(Rs. crore) Infrastructure Credit Portfolio Amount O/s % to Total Advance Y-o-Y Growth Infrastructure Dec 20 Dec 19 Dec 20 Dec 19 Amt % Power 674 609 1.3 1.2 65 11 Road 356 465 0.7 0.9 (109) (23) Infra Others 876 827 1.7 1.7 49 6 TOTAL 1,906 1,901 3.7 3.8 5 - Power Sector Exposure Ownership Dec 20 D
Slide 24: GECL Portfolio
(Rs. crore) GECL Portfolio Vertical Dec 20 Sep 20 Jun 20 Commercial 1,454 1,301 791 Agriculture 5 3 - Corporate 541 212 23 TOTAL 2,000 1,516 814 23
Slide 25: Corporate Book
(Rs. crore) Corporate Book Standard Corporate advances > 100 crore 4000 8.0 5.6 5.5 5.2 5.1 4.7 4.6 4.5 4.6 2500 5.0 3.8 2733 2887 2322 2540 2554 2244 2211 2304 1891 1000 2.0 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Amount > 100cr % on advance 7% 14% 16% 32% • Corporate exposur
Slide 26: Advances – Composition
Advances – Composition Well spread sub-sectoral exposures & diversified industrial exposures Rs.521 Bn Breakup of Industrial exposure (Rs.118 Bn) INFRASTRUCTURE NBFC 3% OTHER TEXTILES EXPOSURES 2% BILLS 7% 13% 16% BASIC METAL & ITS 1% MANUFACTU PRODUCTS Agri RING SECTOR 5% 2% FOOD PROCESSING 23% 4%
Slide 27: Portfolio Performance
Portfolio Performance SMA 30+ 2.52% SMA 30+ (Ex-Gold) 2.36 % Portfolio performance 117 Balance in INR , Base Mar.31,2017=100 100 107 110 94 SMA 30+ 75 76 63 44 46 45 42 43 34 23 16 100 114 Portfolio Performance 101 102 Portfolio Outstanding in % , Base Mar.31,2017=100 85 SMA 30+ 65 66 54 36 39 39 37
Slide 28: Security Coverage
(Rs. crore) Security Coverage Nature of security 31.12.20 Exposure backed by - Letter of Credit 243 Govt. Guarantee# 2,000 Liquid Assets ^ 12,712 Vehicles 2,564 Commodities 155 Total (1) 17,674 Exposure secured by Immovable Property (% Coverage) > 100% 24,483 90% to <100% 7,436 75% to <90% 1,091 50%
Slide 29: Sector-wise Standard Restructured Advances
(Rs. crore) Sector-wise Standard Restructured Advances S. Amount SECTOR N. Dec 20 Dec 19 Stressed Book Analysis 1 Housing Loan 157.08 1.18 3000 5 2673 2548 2325 2090 2376 2 Ceramic 69.18 - 3 Textile 66.96 59.32 524 546 4 Cement & Cement Products 52.53 26.57 543 433 5 Food & Food Processing 38.70 20.
Slide 30: Movement of Std. Restructured Advances
(Rs. crore) Movement of Std. Restructured Advances Apr 20 to Dec 20 Apr 19 to Dec 19 Particulars A/c’s Amt. A/c’s Amt. A. Position at the beginning of the 73 193.29 34 72.09 period B. Addition during the period * 1,480 485.70 48 177.76 C. Additions in existing A/c’s - 41.57 - 7.07 D. Addition throug
Slide 31: Restructured Credit – Additions (9M)
(Rs. crore) Restructured Credit – Additions (9M) Amount as on Vertical 31.12.20 Commercial 11 Retail 293 Corporate 69 Sub-total (COVID Package) 373 MSME Restructuring 113 TOTAL 486 30
Slide 32: Collection Efficiency (Q3)
Collection Efficiency (Q3) Oct 20 Nov 20 Dec 20 Nature Monthly Term loan 87.5 87.3 90.1 Working capital 94.7 91.1 94.0 Position as on 31.01.2021 Term loan 97.5 95.9 94.5 Working capital 98.0 97.5 96.4 31
Slide 33: NPAs & Provisions (excl. proforma slippages)
(Rs. crore) NPAs & Provisions (excl. proforma slippages*) 4424 4213 8.92 4056 3998 3842 8.68 8.34 7.93 2421 2521 2533 7.37 2351 1946 2427 1809 4.13 1585 1428 1263 3.92 3.44 2.99 2.55 Dec 19 Mar 20 June 20 Sep 20 Dec 20 Dec 19 Mar 20 June 20 Sep 20 Dec 20 Net NPA% Gross NPA% Gross NPA Net NPA NPA Pro
Slide 34: NPAs & Provisions (incl. proforma slippages)
(Rs. crore) NPAs & Provisions (incl. proforma slippages*) Proforma Slippages vertical wise As on 31.12.2020 Commercial 475 Retail (Personal Banking) 163 Agriculture 53 Corporate 194 Total 885 With proforma Without proforma slippage Particulars slippage* Dec 20 Sep 20 Dec 20 GNPA 3,842 3,998 4,728 NN
Slide 35: Movement of NPA
(Rs. crore) Movement of NPA Particulars Apr 20 - Dec 20 Apr 19 - Dec 19 Gross NPAs Opening Balance 4,213 4,450 Additions during the period 54 1,267 Reductions during the period 424 1,293 Closing Balance 3,842 4,424 Net NPAs Opening Balance 1,809 2,420 Additions during the period (406) 92 Reductions/
Slide 36: Provisions and Contingencies
(Rs. crore) Provisions and Contingencies Quarter 9 months Provision for Dec 20 Dec 19 Dec 20 Dec 19 NPA 13 350 342 1,002 Standard Assets (4) (2) 4 7 Restructured Advances* 61 1 61 6 Others (incl. NPI) 63 13 74 31 Investment Depreciation (12) 3 90 14 COVID -19 Relief Package ^ 80 - 253 - Total Provis
Slide 37: Digital Banking - DLite
Digital Banking - DLite Credit card Management Form 15 G/H ( Corporate credit Accounts Submission card) Registrations 13+ lakh users Opened 2 lakh Recent launches Avg Daily Txns Cheque Positive Pay ~78,000 Loan Repayment system 2.2 MILLION DLITE APP DOWNLOADS Launching soon Digital Gold, Certified b
Slide 38: Retail Liability Franchise : Granular & Sticky
Retail Liability Franchise : Granular & Sticky 24% Term Deposits Term deposits are 11% primarily retail 65% Demand Deposits deposits Savings Deposits 95% of term deposits are < Rs.5 Cr Low concentration of Deposits Low dependence on wholesale deposits 5% 9% 7% 6% 6% 6% 6% < Rs.15 Lakhs Rs.15 Lak
Slide 39: Investment Portfolio
Investment Portfolio Investments (Rs. crore) Portfolio wise Investment 18061 23.91% 16739 16073 HTM AFS 76.09% Dec 19 Mar 20 Dec 20 Duration Investment Portfolio 6.40% 0.78% AFS* HFT HTM* Total SLR 1.13 - 3.98 3.35 Debentures /CD/MF/CP Yield on Investment 92.82% Shares 6.71% 6.63% 5.30% Debentures/C
Slide 40: KVB – a unique franchise!
KVB – a unique franchise! Unmatched presence in India’s fast growing hinterland 1 6 1 12 Category No. of Branches 1 6 6 Metro 201 1 Urban 155 15 4 1 14 1 Semi Urban 297 5 25 Rural 127 59 Total 780 1 51 121 7 421 21 Category 31.12.20 31.03.20 31.03.19 16% Metro 26% Customer Branches 780 779 778 Urban
Slide 41: Leveraging Technology - Delivery Channels
Leveraging Technology - Delivery Channels Mobile transactions volume Cash Deposit Machines 222 232 Cash Deposit Machines (Nos.) 565 572 146 533 534 444 FY 19 FY 20 Dec-20 * Mar 17 Mar 18 Mar 19 Mar 20 Dec 20 Mobile Banking (Nos in lakh) *Annualized Digital vs Branch Transaction (%) 85 89 82 88 15 11
Slide 42: Human Resources
Human Resources Young workforce….. … number of employees… … lower attrition … 3.9% 3.8% 35 7956 7935 7663 7791 2.7% 34 34 7400 2.2% 33 33 1.2% FY 17 FY 18 FY 19 FY 20 Dec 20 FY 17 FY 18 FY 19 FY 20 Dec 20 FY 17 FY 18 FY 19 FY 20 Dec 20 … leading to improved productivity 8.2 14.42 14.66 134 142 138 1
Slide 43: Awards and Accolades
Awards and Accolades CII Digital Transformation DX Summit & Awards Award for best UI Path Automation practice in Digital Excellence Award, 2020 Transformation 2020 – Innovative Best Award for GEFU Process Practice in Service through RPA bot Excellence Kamikaze Payments & Cards Awards Best Digital Ba
Slide 44: A Decade of Progress
(Rs. crore) A Decade of Progress Year 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 Paid up Capital 94 107 107 107 122 122 122 145 160 160 Reserves 2,020 2,601 2,978 3,219 4,124 4,451 4,723 6,066 6,205 6,440 Owned funds 2,114 2,708 3,085 3,326 4,246 4,573 4,845 6,21
Slide 45: www.kvb.co.in aloe ol
www.kvb.co.in aloe ol
Karur Vysya Bank — Q3 FY2020-21 Earnings Presentation on 6ix