Karur Vysya Bank Ltd. · NSE:KARURVYSYA
Karur Vysya Bank — FY2019 Earnings Presentation
49 slides from Karur Vysya Bank's earnings presentation, May 15, 2019
Slide 1: Karur Vysya Bank - Regulation 30 Intimation of Investor Presentation
& KVB) Karur Vysya Bank Smart way t o bank IRC: F48:72:555:20 19 The Manager National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No.C/ 1 G Block, Bandra-Kurla Complex, Bandra (E),Mumbai 40005 1. Dear Sir, Sub: Regulation 30 of SEBI (Listing Obligations and Disclosure Requirement
Slide 2: Investor Presentation FY 2018-19 Business Performance
INVESTOR PRESENTATION FY 2018 -19 Business Performance 31.12.2018
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: The Bank of choice - trusted by all
The Bank of choice - trusted by all Over Over Over 7 million 450000 700000 individuals businesses agri customers
Slide 5: KVB – a unique franchise!
KVB – a unique franchise! Bank of Choice, trusted by : Over 7 million individuals Over 450000 businesses Over 700000 customers involved in agriculture 1 6 1 Unmatched presence in India’s fast growing hinterland 12 6 1 Category No. of Branches 6 1 Metro 201 4 1 15 14 Urban 155 1 5 Semi Urban 29
Slide 6: Blending Tradition with Modernity
Blending Tradition with Modernity • New Digital Systems live and fully embedded Capable of managing substantial volumes (Retail Digital Platform handled ~110,000 applications) • New Business Banking Unit established to originate and manage small business credit requirements Underwriting process
Slide 7: Blending Tradition with Modernity
Blending Tradition with Modernity • Risk based pricing fully implemented in Retail / Commercial products NIM improves by 28 bps during Q4 sequentially Weighted Average Yield on new loan (Retail / Commercial) up by 1.43% & 0.91% YoY • Co-origination of loans through API platform enabled • Talent
Slide 8: Digital Transformation of KVB
Digital Transformation of KVB Apr. 19 SME Term Jan. 19 Loan & SRTO - LIVE Aug. 18 Commercial July 18 Credit Card Working Capital Working Capital - LIVE (Enhancement, (Fresh) & Auto Mar. 18 Loan - LIVE Adhoc), Loan Against Working Capital Property, Personal (Renewals) & Loan & Digital Bank - Home Loa
Slide 9: KVB DLite App
KVB DLite App • Instant account opening • Fund transfer • Cheque Management • Locker Management • Demat Accounts • Savings Accounts • Bill Pay • Mobile recharge • FASTag • Bharat QR • UPI • E-ASBA • Insurance
Slide 10: KVB DLite App – Million downloads!!
KVB DLite App – Million downloads!! Downloads Registrations 9,38,008 5,84,957 Downloads Registrations 55,510 35,989
Slide 11: Key Upshots
Key Upshots ….. CRAR BUSINESS CRAR at 16.00% & Total business up by 7% Tier I at 14.28% to Rs. 1,10,484 crore 06 01 PROFIT CREDIT GROWTH Operating Profit Rs. Gross Advances grew by 1,711 crore; Net Profit Rs. 211 crore 05 02 10% and stands at Rs. 50,616 crore NIM CASA NIM 3.88% for Q4 (3.67% 04 03 C
Slide 12: Results Snapshot (EoP)
(Rs. crore) Results Snapshot (EoP)* Financial Indicators – 31.03.2019 Other Business Parameters YoY Growth Gross NPA 4,450 Parameter Amount % Net NPA 2,420 Total Gross NPA % 8.79 59,868 5 Deposits Net NPA % 4.98 Gross 50,616 10 PCR % 56.86 Advances Total 1,10,484 7 Basel III Capital 6,996 Business C
Slide 13: Business Profile (Averages)
(Rs. crore) Business Profile (Averages) Y-o-Y Growth Particulars Mar-19 Mar-18 Amount % Avg. Deposits 57,618 55,239 2,379 4 Avg. Demand Deposit 5,465 5,134 331 6 % to Total 9 9 Avg. Savings Deposit 11,274 10,086 1,188 12 % to Total 20 19 Avg. Time Deposit 40,880 40,019 861 2 % to Total 71 72 CASA 16
Slide 14: Business Profile (EoP)
(Rs. crore) Business Profile (EoP)* Y-o-Y Particulars Mar 19 Mar 18 % Total Deposits 59,868 56,890 5 Demand 5,814 5,576 4 Savings 12,101 11,001 10 CASA 17,915 16,577 8 Term Deposits 41,953 40,313 4 CASA % 30 29 Gross Advances 50,616 45,973 10 Net Advances 48,581 44,800 8 Total Business 1,10,484 1,02
Slide 15: Balance Sheet
Balance Sheet (Rs. crore) Particulars Mar 19 Mar 18 Y-o-Y (%) Capital & Liabilities Capital 160 145 10 Reserves and Surplus 6,263 6,119 2 Deposits 59,868 56,890 5 Borrowings 1,565 2,394 (35) Other Liabilities and Provisions 1,484 1,393 7 Total 69,340 66,941 4 Assets Cash and Balances with RBI 2,935
Slide 16: Income v/s Expenses
(Rs. crore) Income v/s Expenses Net Interest Income 2500 Non Interest Income 1000 2298* 2363 2074 963 900 1781 782 1250 1466 707 500 581 0 FY 15 FY 16 FY 17 FY 18 FY 19 0 FY 15 FY 16 FY 17 FY 18 FY 19 Total Operating Income Operating Expenses 3400 2000 3198 3326 2856 854 2488 782 705 677 1700 2047 1
Slide 17: Operating Profit
(Rs. crore) Operating Profit 2000 101 70 205 1676* 1641 94 71 1366 1000 1141 872 0 FY 15 FY 16 FY 17 FY 18 FY 19 Core Operating Profit Trading Profit 2000 3.0 2.7 2.6 2.5 2.2 1000 1.8 2.0 1777* 1711 1571 1235 943 0 1.0 FY 15 FY 16 FY 17 FY 18 FY 19 Operating Profit Operating Profit Margin% on Avg. A
Slide 18: Profit and Loss A/c (Qtr.)
(Rs. crore) Profit and Loss A/c (Qtr.) Q4 Q4 YoY Particulars FY 18-19 FY 17-18 (%) Net Interest Income 618 643 (4) Other Income 273 209 31 Total Income 891 852 5 Operating Expenses 427 372 15 Operating Profit 464 480 (3) Provisions 352 394 (11) Credit Related 292 360 (19) Others 60 34 76 Profit Befo
Slide 19: Profit and Loss A/c (Annual)
(Rs. crore) Profit and Loss A/c (Annual) YoY Particulars FY 18-19 FY 17-18 (%) Net Interest Income 2,363 2,298 3 Other Income 963 900 7 Total Income 3,326 3,198 4 Operating Expenses 1,615 1,421 14 Operating Profit 1,711 1,777 (4) Provisions 1,388 1,273 9 Credit Related 1,293 1,190 9 Others 95 83 14
Slide 20: Other Income Avenues
(Rs. crore) Other Income Avenues QUARTER YEAR ENDED Particulars YoY YoY Mar 19 Mar 18 (%) Mar 19 Mar 18 (%) TOTAL NON-INT. INCOME 273 209 31 963 900 7 1) Fee Income 163 153 7 656 617 6 2) Investment trading 57 8 - 70 101 - profit 3) Forex Income 12 14 (14) 43 44 (2) 4) Others* 41 34 21 194 138 41 *I
Slide 21: Other Income remains healthy
(Rs. crore) Other Income remains healthy….. Growth in Other Income 1000 20 • Steady growth in non interest income, through diverse sources (fee 14 14 based, e-transactions, third party 12 11 products etc.) 10 500 963 10 782* 900 • 14% share in total operating income 707 581 (FY 2018-19) 0 0 FY 15 FY
Slide 22: Operating Expenses
(Rs. crore) Operating Expenses QUARTER YEAR ENDED Particulars YoY YoY Mar 19 Mar 18 Mar 19 Mar 18 (%) (%) Staff Expenses 212 179 18 761 639 19 Of above – Prov. for employee 42 15 138 64 retirement benefits Other Operating 215 193 12 854 782 9 Expenses TOTAL OPG. EXPENSES 427 372 15 1,615 1,421 14 21
Slide 23: Key Ratios (Quarterly)
Key Ratios (Quarterly) NIM^ Cost to Income 4.50% 60.00% 4.13% 3.88% 52.12% 4.00% 3.65% 49.45% 3.57% 3.60% 50.00% 47.88% 45.18% 3.50% 43.73% 3.00% 40.00% Mar 18 June 18 Sep 18 Dec 18 Mar 19 Mar 18 June 18 Sep 18 Dec 18 Mar 19 ROA 1.00% ROE 10.00% 0.49% 5.28% 0.50% 5.00% 2.93% 3.74% 0.35% 3.23% 0.30%
Slide 24: Key Ratios (Annual)
Key Ratios (Annual) NIM^ Cost to Income 4.50% 60.00% 3.86% 4.00% 3.70% 3.67% 3.43% 47.63% 48.56% 3.50% 50.00% 44.99% 44.43% 3.00% Mar 16 Mar 17 Mar 18 Mar 19 40.00% Mar 16 Mar 17 Mar 18 Mar 19 ROA ROE 1.50% 15.00% 12.03% 12.41% 1.03% 1.00% 1.00% 10.00% 0.53% 5.52% 0.50% 0.31% 5.00% 3.28% 0.00% 0.00%
Slide 25: Key Ratios (Qtr.)
Key Ratios (Qtr.) Particulars Q3 FY 18-19 Q4 FY 18-19 Q4 FY 17-18 Cost of Deposits 5.80 5.80 5.78 Yield on Advances 9.59 9.81 9.89 Cost of Funds 5.82 5.82 5.70 Yield on Funds 8.62 8.90 9.14 NIM 3.60 3.88 4.13 Spread 2.80 3.08 3.44 4.30% 4.11% 4.06% 4.01% 3.94% 4.13% 3.79% 3.65% 3.88% 3.57% 3.44% 3.5
Slide 26: Key Ratios (Annual)
Key Ratios (Annual) Particulars FY 18-19 FY 17-18 Cost of Deposits 5.80 5.99 Yield on Advances 9.75 10.30 Cost of Funds 5.82 5.91 Yield on Funds 8.71 9.13 NIM 3.67 3.86 Spread 2.89 3.22 4.75 4.74 4.26 4.31 3.95 4.18 3.70 3.86 3.43 3.50 3.67 3.22 2.91 2.71 3.10 2.89 2.27 2.25 Mar 15 Mar 16 Mar 17 Mar
Slide 27: Retail Liability Franchise: Granular & Sticky
Retail Liability Franchise : Granular & Sticky CASA Mix 30% 29% 20% 30% 28% Term deposits are primarily 10% retail deposits 70% 25% 23% 22% 93% of term deposits are 20% below Rs. 5 FY 15 FY 16 FY 17 FY 18 FY 19 crore Term Deposits Demand Deposits Savings Deposits Low dependence on wholesale depo
Slide 28: Investment Portfolio
Investment Portfolio Investments (Rs. crore) Portfolio wise Investment 15992 0.81% 29.44% 15137 HTM AFS 69.75% HFT Mar 18 Mar 19 Duration Investment Portfolio AFS HFT HTM 0.98% 17.77% SLR 1.96 0.06 3.89 Debentures/CD/ MF/CP Yield on Investment Shares 81.25% 7.00% 7.04% Mar 18 Mar 19 Debentures/CD/MF
Slide 29: Advances – Business Verticals
(Rs. crore) Advances – Business Verticals Advances by value terms Advances - Portfolio wise 37% 35% 35% 16095 17,056 35% 34% 13402 14504 13763 14,169 32% 33% 28% 14397 32% 31% 13612 11,278 12763 11774 22% 7032 18% 17% 7861 17% 17% 6240 6979 8,113 7620 17% 16% 14% 15% 15% 6340 5918 5275 FY15 FY16 FY1
Slide 30: Advances Portfolio
(Rs. crore) Advances Portfolio Y-o-Y Particulars Mar 19 Mar 18 Growth % Gross Advances 50,616 45,973 10 Commercial 17,056 16,095 6 Corporate 14,169 14,397 (2) Retail (Personal Banking)* 11,278 7,620 48 Agriculture 8,113 7,861 3 Jewel Loans 7,780 7,092 10 (incl. in above) Segment wise advances Mar 19
Slide 31: Retail Portfolio
(Rs. crore) Retail Portfolio Advances outstanding as at Segment Mar-19 Mar-18 Mar-17 Mar-16 Mar-15 Housing 3,619 2,795 2,330 2,094 1,757 Mortgage (LAP) 1,712 1,393 965 787 568 Vehicle 1,044 1,017 921 831 782 Jewel Loans 625 578 596 703 793 Personal Loans 424 296 316 354 356 Education Loans 235 261 2
Slide 32: Security Coverage
(Rs. crore) Security Coverage Nature of security 31.03.19 Exposure backed by - Letter of Credit 543 Liquid Assets ^ 8,746 Vehicles 2,996 Commodities 700 Total (1) 12,985 Exposure secured by Immovable Property (% Coverage) > 100% 23,440 90% to <100% 7,341 75% to <90% 1,956 50% to <75% 3,169 <50% 3,10
Slide 33: Granular Loan Book
Granular Loan Book Commercial Loans : Exposures upto Rs. 250 Mn Commercial book Corporate Loans : Exposures above Rs. 250 Mn 1% • Average ticket size of Rs. 4 Mn 12% 7% • 80% of commercial loans are less than Rs. 50 Mn 80% Corporate book < 50 Mn >= 50 Mn < 100 Mn >= 100 Mn < 250 Mn >= 250 Mn 18%
Slide 34: Advances – Composition
Advances – Composition Well spread sub-sectorial exposures & diversified industrial exposures Rs.506 Bn Breakup of Industrial exposure (Rs. 132 Bn) OTHER EXPOSURES, INFRASTRUC 15% OTHERS, 6% TURE, 3% NBFC, 3% POWER, 1% MANUFACTURIN BILLS, 3% G SECTOR, 26% GEMS & JEWELLERY, 1% Agri, 3% TRANSPORT SECT
Slide 35: Advances – Sector Details
(Rs. crore) Advances – Sector Details Growth Particulars Amount % to Total Advance over Mar-18 Mar-19 Mar-18 Mar-19 Mar 18 Amt % Manufacturing 13,162 13,626 26 30 (464) (3) Trading 7,979 7,851 16 17 128 1 Jewel loan 7,781 7,092 15 15 689 10 Personal loans @ 6,942 5,990 14 13 952 16 CRE 2,832 2,761 6
Slide 36: Manufacturing Sector - Industry Wise
(Rs. crore) Manufacturing Sector - Industry Wise Amount % to Total Advance Y-o-Y Growth Industry Mar-19 Mar-18 Mar-19 Mar-18 Amount % TEXTILES 4,275 4,154 8.4 9.0 121 2.9 INFRASTRUCTURE 1,966 2,787 3.9 6.1 (821) (29.5) BASIC METAL & METAL 837 1,324 1.7 2.9 (487) PRODUCTS (36.8) FOOD PROCESSING 864 7
Slide 37: Infrastructure Advances
(Rs. crore) Infrastructure Advances Amount O/s % to Total Advance Y-o-Y Growth Infrastructure Mar 19 Mar 18 Mar 19 Mar 18 Amt % Power 645 517 1.3 1.1 128 25 Road 379 483 0.8 1.1 (104) (22) Infra Others 942 1,787 1.9 3.9 (845) (47) TOTAL 1,966 2,787 3.9 6.1 (823) (29) Power Sector Exposure Ownership
Slide 38: Sector-wise Restructured Advances
(Rs. crore) Sector-wise Restructured Advances AMOUNT % to Total Restructured Advances S. N. SECTOR Mar-19 Mar 19 Mar 18 1.44 Agri 1 INFRASTRUCTURE - 200.59 15.44 0.47 1.29 Textiles 0.14 Auto Loans 2 TEXTILES 11.13 42.59 7.53 Housing loan 73.69 Iron and steel 3 AGRICULTURE 1.04 7.07 Food Processing O
Slide 39: Portfolio performance
Portfolio performance Portfolio performance improving Portfolio performance improving Balance in INR, Base Mar. 31, 2017 = 100 steadily SMA-1 SMA-2 SMA30+ 200 184 161 168 150 117 120 107 110 106 100 100 98 84 94 88 82 82 81 75 76 63 Portfolio performance improving 50 60 65 45 51 Portfolio Outstandin
Slide 40: Stressed Book Analysis
Stressed Book Analysis (Rs. crore) 3000 2816 Movement of Restructured Advances 2673 2531 2539 2495 324 Apr-18 to Mar- Jan 19 to Mar- 372 4.10 406 399 19 19 397 4.06 Particulars 3.95 2000 3.78 3.72 3.67 A/c’s Amt. A/c’s Amt. 3.10 A. Position at the beginning 22 262.43 10 5.18 of the period 2420 2.10
Slide 41: NPAs & Provisions
(Rs. crore) NPAs & Provisions Advances Net NPA Total Accretion VERTICAL O/s. Addition NPA rate (%) 4450 4056 Mar. 19 Q4 Mar. 19 Q4 (annld.) 3563 3707 3016 2420 COMM. 17,056 112 1,074 2.63 2296 2088 2052 1961 1863 1409 1590 1692 CORP. 14,169 287 3,063 8.10 1091 AGRI. 8,113 6 145 0.30 Mar-18 Jun-18 Se
Slide 42: Movement of NPA
(Rs. crore) Movement of NPA Particulars Apr 18 - Mar19 Apr 17 - Mar 18 Gross NPAs Opening Balance 3,016 1,484 Additions during the period 2,343 2,092 Reductions during the period 909 560 Closing Balance 4,450 3,016 Net NPAs Opening Balance 1,863 1,033 Additions during the period 931 1,103 Reductions
Slide 43: Provisions and Contingencies
(Rs. crore) Provisions and Contingencies Year ended Quarter ended Provision for Mar 19 Mar 18 Mar 19 Mar 18 NPA 1,318 1,025 276 414 Standard Assets (3) (2) 5 (10) Restructured Advances (8) (11) 3 (8) Loss on sale to ARC - 185 - - SDR, S4A, 5/25 etc. (10) (2) - (26) NCLT (specific a/c’s) (12) 13 - 7
Slide 44: Capital Adequacy – Basel III
(Rs. crore) Capital Adequacy – Basel III Capital as at Nature Mar-19 Mar-18 Mar-17 Mar-16 Tier I 6,245 6,145 4,790 4,064 Tier II 752 226 278 330 Total 6,996 6,371 5,068 4,394 16.50% 16.00% 14.43% 12.17% 12.54% 12.50% 13.92% 14.28% 11.26% 11.85% Entire Tier I comprises 8.50% of CET1 capital, well abo
Slide 45: Leveraging Technology - Delivery Channels
Leveraging Technology - Delivery Channels Market share in RTGS transactions POS Terminals POS TERMINALS 1.14% 22068 22873 21959 1.07% 1.04% 0.99% 0.94% 9234 10157 FY15 FY16 FY17 FY18 FY19 Share of RTGS transactions (by volume) FY15 FY16 FY 17 FY 18 FY 19 Exponential growth in Mobile transactions Cas
Slide 46: Human Resources
Human Resources Young workforce….. … well qualified … … lower attrition … Others 34 11% 4.5% 3.9% 33 33 33 33 PG Graduat 54% 2.7% 2.7% e 2.2% 35% FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 … leading to improved productivity 142 14.42 7.9 8.2 12.4 12.85 12.92 6.5 11.2 134 134 130 4.4 129 2.8 F
Slide 47: Blending Tradition with Modernity
Blending Tradition with Modernity
Slide 48: A Decade of Progress
(Rs. crore) A Decade of Progress Year 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Paid up Capital 54 94 107 107 107 122 122 122 145 160 Reserves 1,566 2,020 2,601 2,978 3,219 4,124 4,451 4,723 6,066 6,236 Owned funds 1,620 2,114 2,708 3,085 3,326 4,246 4,573 4,845
Slide 49: Thank You
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