Karur Vysya Bank Ltd. · NSE:KARURVYSYA
Karur Vysya Bank — Q1 FY2022 Earnings Presentation
37 slides from Karur Vysya Bank's earnings presentation, Aug 4, 2021
Slide 1: Stock exchange intimation letter
Smclrt qoa) to bank IRC: F48:88:369:202 1 04.08.202 1 The Manager, The Manager, National Stock Exchangeof India Ltd, Bombay Stock Exchange limited, Exchange Plaza, 5th Floor, Phiroze Jeejeebhoy Towers, Plot No. C/ 1, 'G' Block, Dalai Street, Bandra- Kurla Complex, Mumbai - 400001 Bandra (Eastl, Mumb
Slide 2: Investor Presentation 30.06.2021
30.06.2021 Investor Presentation
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: Quarter in focus
Quarter in focus
Slide 5: Strong presence in India's fast growing hinterland
Strong presence in India’s fast growing hinterland Category 30.06.21 31.03.21 31.03.20 Branches 781 780 779 ATM’s + Cash Recyclers 2,251 2,236 2,224 1 6 1 12 No. of Branches 6 Category BBU* CBU* Other offices# Metro 201 10 9 7 1 6 1 Urban 156 4 15 4 1 14 Semi Urban 297 2 1 Rural 127 5 25 Total 781 1
Slide 6: Key financials Q1 FY2022
Key financials Q1 FY2022 Operating profit Net interest ₹ 429 crore income (NII) Total income ₹ 638 crore ₹ 858 crore Fee income Net interest margin Profit after tax ₹ 147 crore NIM ₹ 109 crore 3.55% 5 www.kvb.co.in
Slide 7: Key Performance Indicators – KPIs (quarter)
(Rs. crore) Key Performance Indicators – KPIs (quarter) Growth Particulars Particulars Jun 21 Jun 20 Mar 21 Dec 20 Sep 20 (YoY) Net interest income 638 562 14 613 584 601 Operating profit 429 474 (10) 249 257 449 Net profit 109 106 3 104 35 115 Advances (Gross) 52,315 48,617 8 52,820 52,113 49,613 D
Slide 8: Profit & Loss Statement (quarter)
(Rs. crore) Profit & Loss Statement (quarter) Particulars Jun 21 Jun 20 Growth (YoY) Mar 21 Net Interest Income 638 562 14 613 Other Income 220 317 (31) 216 - Fee income 147 121 21 157 - Others 73 196 (63) 59 Total Income 858 879 (2) 828 Operating Expenses 429 405 6 579 - Employee expense 227 214 6
Slide 9: Key Ratios (quarter)
Key Ratios (quarter) Particulars Jun 21 Jun 20 Mar 21 Cost of Deposits (%) 4.53 5.37 4.63 Yield on Advances (%) 8.55 9.32 8.52 Cost of Funds (%) 4.56 5.42 4.65 Yield on Funds (%) 7.41 8.01 7.42 Net Interest Margin (%) 3.55 3.36 3.46 Spread (%) 2.85 2.59 2.77 Cost to income (%) 50.04 46.09 69.87 Retu
Slide 10: Capital to Risk Weighted Assets Ratio – Basel III CRAR
(Rs. crore) Capital to Risk Weighted Assets Ratio – Basel III CRAR Particulars Jun 21 Jun 20 Mar 21 CRAR % 19.06 18.14 18.98 Total capital 7,524 7,210 7,515 Tier I capital 6,725 6,412 6,711 Tier II capital 799 798 803 RWA 39,471 39,748 39,598 Credit risk 31,599 32,075 32,003 Operational risk 6,071 6
Slide 11: Balance Sheet
(Rs. crore) Balance Sheet Particulars Jun 21 Jun 20 YoY (%) Capital & Liabilities Capital 160 160 - Reserves and Surplus 6,909 6,546 6 Deposits 64,398 60,065 7 Borrowings 987 1,041 (5) Other Liabilities and Provisions 1,806 1,568 15 Total 74,260 69,380 7 Assets Cash and Balances with RBI 3,259 2,630
Slide 12: Optimising cost of borrowings
Optimising cost of borrowings Effective allocation of capital sourced at low cost has enabled the bank to deliver decent returns. A resilient digital infrastructure and a rising digital presence has enabled the bank strengthen its profitability. Declining cost of deposits and cost of funds (quarter)
Slide 13: Driving growth across verticals
Driving growth across verticals
Slide 14: Total Business
(Rs. crore) Total Business Parameter Jun 21 Jun 20 YoY % Mar 21 Total Deposits 64,398 60,065 7 63,278 Gross Advances 52,315 48,617 8 52,820 Advances (ex-IBPC) 52,315 48,517 8 52,820 Total Business 1,16,713 1,08,682 7 1,16,098 1,16,098 1,16,713 1,08,682 63,278 64,398 60,065 48,617 52,820 52,315 `Jun
Slide 15: Growing our books responsibly
(Rs. crore) Growing our books responsibly A strong capital base, high levels of liquidity, and diversified credit portfolio provide a solid foundation for an attractive and sustainable return on capital to shareholders. Particulars Jun 21 Jun 20 YoY % Mar 21 Agriculture 11,800 9,609 23 11,531 Retail
Slide 16: Retail portfolio distribution
(Rs. crore) Retail portfolio distribution Particulars Jun 21 Jun 20 YoY % Mar 21 Housing loan 5,057 4,636 9 5,005 Jewel loans 1,806 1,014 78 1,762 Mortgage (LAP) loans 1,599 1,672 (4) 1,620 Vehicle loans 1,007 963 5 1,031 Personal loans 478 549 (13) 516 Educational loans 172 201 (14) 178 Others loan
Slide 17: Driving growth across verticals
(Rs. crore) Driving growth across verticals GECL (Guaranteed Emergency Credit Loan) Portfolio Scheme O/s as on 30.06.2021 NPA as on 30.06.2021 GECL 1.0 1779 48 GECL 2.0 378 - GECL 3.0 6 - TOTAL 2,163 48 Ticket size of Commercial Book 9% 5% • Average ticket size - Rs.37.5 lakh 86% • ~86% of commercia
Slide 18: Corporate Loan
(Rs. crore) Corporate Loan Standard Corporate advances > 100 crore 3000 8.0 2500 5.6 5.5 5.5 5.0 5.5 2000 5.1 2733 2554 2887 2927 2884 1500 2.0 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Amount > 100cr % on advance Consortium/MBA Sole Banking NBFC Govt/PSU 7% 19% 14% Consortium 13% < 25 cr • ~68% of corpora
Slide 19: Sectoral composition
Sectoral composition Rs. 52,315 crore Breakup of Industrial exposure (Rs. 13,530 crore) OTHERS INFRASTRUCTURE TRANSPORT SECTOR OTHER EXPOSURES 1% GEMS & JEWELLERY 7% 14% 14% 5% MANUFACTURING SECTOR 26% CONSTRUCTION NBFC 2% CEMENT 4% BILLS 2% 2% Agri 2% ALL ENGINEERING CRE 6% 4% WOOD AND ITS PRODUCTS
Slide 20: Secured Exposure
(Rs. crore) Secured Exposure Nature of security 30.06.2021 Exposure backed by - Letter of Credit 331 Govt. Guarantee (Emergency Credit Line Guarantee Scheme- ECLGS) 2,163 Liquid Assets ^ 13,776 Vehicles 2,537 Commodities 147 Total (1) 18,954 Exposure secured by Immovable Property ( Coverage) > 100 2
Slide 21: Collection efficiency
Collection efficiency Particulars April 21 May 21 June 21 July 21 Term Loan (%) 94.9 95.4 96.0 96.5 Working Capital (%) 94.3 91.5 95.6 95.6 Gold Loan Portfolio – steady growth 14000 Gold Loan – portfolio performance SMA 30+ SMA 30+ 7000 12852 13206 Amount LTV* 12069 30.06.2021 as on date 11149 9948
Slide 22: Portfolio performance
Portfolio performance Portfolio performance SMA 1 – 2.09% 100 117 110 Balance in INR , Base Mar.31,2017=100 SMA 2 – 1.07% 107 94 SMA 30+ SMA 30+ - 1.92% 75 76 (excl. gold) 63 44 44 46 45 42 43 34 23 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-
Slide 23: Liability Franchise : Predominantly Retail
Liability Franchise : Predominantly Retail 25% • Term deposits are Term Deposits primarily retail deposits Demand Deposits • 94% of term deposits 10% Savings Deposits are < Rs.5 Cr 65% Low dependence on wholesale deposits Low concentration of Deposits 5% 10% < Rs.15 Lakhs Rs.15 Lakhs-Rs.2 Cr 6% 6% 6
Slide 24: Investment Portfolio
Investment Portfolio Investments (Rs. crore) Investment Category 17357 16866 16465 15.82% HTM AFS Jun 20 Mar 21 Jun 21 84.18% Investment Composition Duration AFS HFT HTM Total 11.35% 0.84% SLR 2.15 - 3.63 3.43 Shares Yield on Investments Debentures/CD/MF/ 5.67% 5.30% 5.36% CP 87.81% Out of 11.35% Se
Slide 25: Disciplined approach to reduce the share of stressed assets
Disciplined approach to reduce the share of stressed assets
Slide 26: Movement of NPA
(Rs. crore) Movement of NPA Particulars Apr 21 - Jun 21 Apr 20 - Jun 20 Gross NPAs Opening Balance 4,143 4,213 Additions during the period 519 40 Reductions during the period 115 40 write off during the period 379 158 Closing Balance 4,167 4,056 Net NPAs Opening Balance 1,719 1,809 Additions during
Slide 27: NPA Break-up
(Rs. crore) NPA Break-up Advances O/s. Reduction/Write off Total NPA VERTICAL Opening balance Additions Q1 Jun 21 Q1 Jun 21 Agriculture 11,800 258 12 10 260 Retail (Personal Banking) 12,279 367 80 29 418 Commercial 16,504 1,405 215 76 1,543 Corporate 11,732 2,113 212 379 1,946 TOTAL 52,315 4,143 519
Slide 28: PCR & Provisions
(Rs. crore) PCR & Provisions 68.90 72.70 72.40 Provision for Jun 21 Jun 20 56.50 56.86 NPA 278 228 55.80 57.11 Standard Assets (4) 1 54.36 36.17 44.07 Restructured Advances 7 - Mar-18 Mar-19 `Mar 20 Mar 21 June 21 Other credit related items 3 - Provision Coverage Ratio % Others (37) 93 Market PCR (e
Slide 29: Movement of Standard Restructured Advances
(Rs. crore) Movement of Standard Restructured Advances Apr 21 to Jun 21 Apr 20 to Jun 20 Particulars A/c’s Amt. A/c’s Amt. A. Position at the beginning of the period 1,628 957 73 193 B. Addition during the period 375 96 2 10 C. Additions in existing A/c’s - 35 - 6 D. Addition through upgradation fro
Slide 30: Restructured Accounts
(Rs. crore) Restructured Accounts June - 21 Mar - 21 Mar - 20 Particulars Standard NPA Standard NPA Standard NPA Resolution Framework - 2.0 90 3 - - - - COVID 19 - Resolution Framework 561 8 554 3 - - MSME 361 115 387 93 192 68 CDR - 3 - 3 - 55 Others* 16 191 16 293 1 378 Total 1,028 320 957 392 193
Slide 31: Sector-wise Standard Restructured Advances
(Rs. crore) Sector-wise Standard Restructured Advances S. Amount SECTOR Stressed Book Analysis N. Jun 21 Jun 20 1 Housing Loan 202 1 3500 5.00 2 Real Estate 169 - 3200 2325 2090 3039 3 Textile 90 62 2376 327 4 Basic Metal & its products 74 - 3000 363 4.31 5 Hotels and restaurants 50 - 4.07 6 Cement
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 9% 26.5+ lakh Growth in digital DLite application transactions in Q1 FY22 downloads over Q4FY21 2.4+ lakh 15.0+ lakh 92% Digital accounts Registered users of Share of digital opened Dlite transaction DLite – Digitally enabled
Slide 34: Delivery Channels
Delivery Channels Mobile transactions volume (through Dlite) Cash Deposit Machines (Nos.) 243 241 222 565 575 584 146 533 534 FY 18-19 FY 19-20 FY 20-21 Jun-21 * Mar-18 `Mar- 19 `Mar- 20 `Mar- 21 `Jun- 21 Nos. in lakhs *Annualized Digital vs Branch Transaction (%) 88% 92% Digital Mode (All channels)
Slide 35: Dynamic workforce
Dynamic workforce Number of Employees Attrition Rate 7956 7935 7663 7746 7581 3.9% 3.8% 2.7% 1.5% 1.6% FY 18 FY 19 FY 20 FY 21 Jun-21 FY 18 FY 19 FY 20 FY 21 Jun-21 Leading to Improved Productivity 14 15 15 14 13 5.7 4.4 4.6 142 138 149 149 130 2.8 3.0 FY 18 FY 19 FY 20 FY 21 Jun-21 FY 18 FY 19 FY 2
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