Karur Vysya Bank Ltd. · NSE:KARURVYSYA
Karur Vysya Bank — Q4 FY2024 Earnings Presentation
51 slides from Karur Vysya Bank's earnings presentation, May 13, 2024
Slide 1: Regulation 30 intimation to stock exchanges
Classification | REGULATORS IRC:F48:100:228:2024 May 13, 2024 The Manager, The Manager, National Stock Exchange of India Ltd, BSE Limited, Exchange Plaza, 5th Floor, Phiroze Jeejeebhoy Towers, Plot No. C-1, ‘G’ Block, Dalal Street, Bandra- Kurla Complex, Mumbai – 400001. Bandra (East), Mumbai – 4000
Slide 2: Investor Presentation Q4 FY 2024
Classification | CONFIDENTIAL Investor Presentation Q4 FY 2024
Slide 3: Disclaimer
Classification | CONFIDENTIAL 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
Slide 4: Quarter In focus
Classification | CONFIDENTIAL Quarter In focus
Slide 5: Strong presence in India's fast growing hinterland
Classification | CONFIDENTIAL Strong presence in India’s fast growing hinterland Category 31.03.24 31.03.23 31.03.22 Branches 838 799 789 ATM’s + Cash Recyclers 2,262 2,240 2,223 1 5 1 12 No. of 6 Category BBU* CBU* DBU* Other offices^ Branches 1 6 Metro 208 10 9 1 15 1 Urban 163 3 - - - 15 4 1 14 S
Slide 6: Our Vision & Mission
Classification | CONFIDENTIAL Our Vision & Mission Vision Mission To provide superior banking To be the preferred choice of experience by using technology stakeholders and deliver value to deliver entire gamut of by blending technology with financial products under one tradition. roof, easily availa
Slide 7: Blending tradition with Modernity-Snap of KVB journey
Classification | CONFIDENTIAL Blending tradition with Modernity-Snap of KVB journey Bank launches New and Bank Crosses milestone Four Smaller Emerging Opportunities business of ₹ 1.5 T, B/S size First ATM of the Crossed Business (NEO) & Precious Metal crosses ₹ 1.0 T, Gets Best banks taken over bank
Slide 8: Key Highlights
Classification | CONFIDENTIAL (Rs. crore) Key Highlights Business Advances Deposits CASA 1,63,536 74,423 89,113 16% YoY 3% QoQ 16% YoY 2% QoQ 16% YoY 4% QoQ 6% YoY 0.3% QoQ NIM PPOP* (Crs) Net Profit (Crs) ROA 12M – 4.19 Q4 – 4.19 12M – 2,672 Q4 - 711 12M – 1,605 Q4 - 456 12M – 1.63 % Q4 – 1.76% 1 b
Slide 9: Key Ratios
Classification | CONFIDENTIAL Key Ratios Quarter 12 Months Particulars Mar 24 Mar 23 Mar 24 Mar 23 Cost of Deposits (%) 5.36 4.61 5.19 4.27 Yield on Advances (%) 10.08 9.55 9.93 8.93 Cost of Funds (%) 5.41 4.64 5.23 4.30 Yield on Funds (%) 8.83 8.32 8.67 7.81 Net Interest Margin (%) 4.19 4.37 4.19 4
Slide 10: Key Ratios (Quarter)
Classification | CONFIDENTIAL Key Ratios (Quarter) ROA ROE 1.76 1.65 18.17 1.50 1.53 1.57 17.20 16.5 16.04 16.05 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 NIM Cost to Income 4.37 50.27 51.62 47.29 49.14 4.32 42.86 4.19 4.19 4.07 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Mar-23 J
Slide 11: Profit & Loss Statement
Classification | CONFIDENTIAL (Rs. crore) Profit & Loss Statement Quarter 12 Months Particulars Mar 24 Mar 23 Growth % (YoY) Mar 24 Mar 23 Growth % (YoY) Net Interest Income 996 893 12 3,809 3,349 14 Other Income 629 401 57 1,659 1,159 43 - Fee income 241 202 19 868 747 16 - Others (refer note below
Slide 12: Balance Sheet
(Rs. crore) Classification | CONFIDENTIAL Balance Sheet Particulars Mar 24 Mar 23 YoY (%) Capital & Liabilities Capital 161 160 - Reserves and Surplus 9,879 8,424 17 Deposits 89,113 76,638 16 Borrowings 2,478 1,432 73 Other Liabilities and Provisions 3,954 3,525 12 Total 105,585 90,179 17 Cash and B
Slide 13: Capital to Risk Weighted Assets Ratio – Basel III
(Rs. crore) Classification | CONFIDENTIAL Capital to Risk Weighted Assets Ratio – Basel III Particulars Mar 24 Mar 23 Dec 23 CRAR % 16.67 18.56 15.39 Total capital 10,192 9,110 9,164 Tier I capital 9,449 8,242 8,257 Tier II capital 743 868 907 RWA 61,125 49,084 59,531 Credit risk 52,247 41,173 50,60
Slide 14: Driving growth across verticals
Classification | CONFIDENTIAL Driving growth across verticals
Slide 15: Total Business
(Rs. crore) Classification | CONFIDENTIAL Total Business Parameter Mar 24 Mar 23 YoY % Dec 23 QoQ % Deposits 89,113 76,638 16 85,665 4 Gross Advances 74,423 64,168 16 72,692 2 Total Business 1,63,536 1,40,806 16 1,58,357 3 Deposits Portfolio Parameter Mar 24 Mar 23 YoY % Dec 23 QoQ % Demand Deposit
Slide 16: Growing our books responsibly
Classification | CONFIDENTIAL (Rs. crore) Growing our books responsibly Particulars Mar 24 Mar 23 YoY % Dec 23 QoQ % Commercial 25,449 20,980 21 24,398 4 Retail (Personal Banking) 17,662 15,012 18 17,090 3 Agriculture 17,363 14,833 17 16,833 3 Sub Total 60,474 50,825 19 58,321 4 Corporate 13,949 13,
Slide 17: Retail Portfolio
(Rs. crore) Classification | CONFIDENTIAL Retail Portfolio Particulars Mar 24 Mar 23 YOY % Dec 23 QOQ % Housing loan 7,563 6,696 13 7,357 3 Jewel loans 2,147 2,107 2 2,096 2 Mortgage (LAP) loans 4,116 3,251 27 3,885 6 Vehicle loans 1,132 1,109 2 1,135 - Consumer Credit-BNPL 1,077 304 254 928 16 Pers
Slide 18: Commercial Banking
Classification | CONFIDENTIAL (Rs. crore) Commercial Banking Ticket size of Commercial Book Jewel Loan 50 18,000 45 16,000 40 21% 14,000 35 12,000 14% 30 25 25 25 25 25 65% 25 10,000 20 8,000 15 6,000 16,107 16,997 17,669 18,106 18,672 10 5 4,000 0 2,000 < 5 crore >= 5 crore < 10 crore >= 10 crore M
Slide 19: Corporate Banking
(Rs. crore) Classification | CONFIDENTIAL Corporate Banking Standard Corporate Advances > 150 crore Improving Risk Profile 5.0 5% 5% 5% 5% 4% 2,500 2.9 23% 22% 18% 19% 23% 3.1 3.3 2.9 2.6 3.0 33% 33% 37% 39% 37% 1,500 2,193 1,849 1,889 1,487 1,331 39% 40% 40% 37% 36% 500 1.0 Mar 20 Mar 21 Mar 22 Mar
Slide 20: Advances-Sectoral composition
Classification | CONFIDENTIAL Advances-Sectoral composition Rs. 74,423 Crore Break up for Manufacturing Sector (Rs. 17,223 Crore) GEMS & AGRI OTHERS BILLS NBFC MINING AND JEWELLERY COMMERCIAL REAL 2% 7% 2% 4% QUARRYING 10% ESTATE 4% 7% OTHER EXPOSURES 10% INFRASTRUCTURE ALL ENGINEERING 14% TRADING 9
Slide 21: Liability Franchise : Predominantly Retail
Classification | CONFIDENTIAL Liability Franchise : Predominantly Retail Low dependence on wholesale deposits Term Deposit-Amount wise 21% 1… < Rs.15 Lakhs 9% Term Deposits 9 Rs.15 Lakhs-Rs.1 Cr 70% 5… Demand Deposits 2… Rs.1 Cr-Rs.5 Cr Savings Deposits > Rs.5 Cr Term deposits are primarily Retail d
Slide 22: Investment Portfolio
Classification | CONFIDENTIAL Investment Portfolio Gross Investments (Rs. crore) Investment Category 22,840 21,413 21,473 19,411 2% 17,755 23% 75% Mar'22 Mar'23 Sep'23 Dec'23 Mar'24 Held To Maturity (HTM) Available For Sale (AFS) Held For Trading (HFT) Investment Composition Modified Duration 1.66%
Slide 23: Disciplined approach to reduce stressed assets
Classification | CONFIDENTIAL Disciplined approach to reduce stressed assets
Slide 24: Movement of NPA for the quarter
(Rs. crore) Classification | CONFIDENTIAL Movement of NPA for the quarter Particulars Jan 24 – Mar 24 Jan 23 – Mar 23 Gross NPAs Opening Balance 1,152 1,674 Additions during the period 201 222 Reductions during the period 311 438 -Of which Recoveries/Upgradation 110 181 Tech Write offs 201 257 Closi
Slide 25: Movement of NPA for the Year
(Rs. crore) Classification | CONFIDENTIAL Movement of NPA for the Year Particulars Apr 23– Mar 24 Apr 22– Mar 23 Gross NPAs Opening Balance 1,458 3,431 Additions during the period 499 479 Reductions during the period 915 2,452 -Of which Recoveries/Upgradation 261 560 Tech Write offs 654 1,892 Closin
Slide 26: Vertical wise NPA Collection efficiency
(Rs. crore) Classification | CONFIDENTIAL Vertical wise NPA NPA Reduction Q4 Advances O/s. NPA as on NPA Additions NPA as on Provisions VERTICAL Recoveries / Mar 24 Dec 23 Q4 Tech W/off Mar 24 Mar 24 upgradation Commercial 25,449 555 93 67 94 487 324 Retail (Personal Banking) 17,662 339 54 32 14 348
Slide 27: Bank Maintaining high Asset Quality with GNPA ~ 1.40% and NNPA ~0.40%
(Rs. crore) Classification | CONFIDENTIAL Bank Maintaining high Asset Quality with GNPA ~ 1.40% and NNPA ~0.40% 4213 4143 8.78 7.94 3431 Gross NPA% 6.03 2351 2366 Net NPA% 2132 1809 1719 3.96 1261 1458 3.45 957 1042 2.30 2.27 730 1.40 468 298 0.74 0.40 Mar 20 Mar 21 Mar 22 Mar 23 Mar 24 Mar 20 Mar 2
Slide 28: Provisions Coverage
Classification | CONFIDENTIAL Provisions Coverage 94.85 92.14 1 94.85% 5.00% 92.14% 0.9 80.27 80.27% 72.70 0.8 68.90 72.70% 68.90% 0.7 3.00% 70.12 0.6 63.25 65.62 2.93% 55.80 57.11 0.5 0.4 1.47% 1.45% 1.00% 0.3 1.26% 0.2 0.65% 0.1 0 -1.00% Mar 20 Mar 21 Mar 22 Mar 23 Mar 24 Mar 20 Mar 21 Mar 22 Mar
Slide 29: Provisions and Contingencies
(Rs. crore) Classification | CONFIDENTIAL Provisions and Contingencies Quarter 12 Months Provision for Mar 24 Mar 23 Mar 24 Mar 23 NPA 110 120 428 717 Standard Assets 2 7 53 35 Restructured Advances & Other credit related - 160 - 182 items Sub-total – Credit Provisions 112 287 481 934 Floating Provi
Slide 30: Restructured Accounts
(Rs. crore) Classification | CONFIDENTIAL Restructured Accounts Mar 24 Mar 23 Dec 23 Particulars Standard NPA Standard NPA Standard NPA Resolution Framework - 2.0 418 80 579 85 485 86 COVID 19 - Resolution Framework 205 33 256 125 215 119 MSME 92 10 140 130 95 24 CDR - - - - - Others* - 29 1 26 - 29
Slide 31: Movement of Standard Restructured Advances for the quarter
(Rs. crore) Classification | CONFIDENTIAL Movement of Standard Restructured Advances for the quarter Jan 24 to Mar 24 Jan 23 to Mar 23 Particulars A/c’s Amt. A/c’s Amt. A. Position at the beginning of the period 2083 795 2,631 1,160 B. Addition during the period - - - - C. Additions in existing A/c’
Slide 32: Sector-wise Standard Restructured Advances
(Rs. crore) Classification | CONFIDENTIAL Sector-wise Standard Restructured Advances S. Amount Stressed Book Analysis SECTOR 1600 1.80 N. Mar 24 Mar 23 1444 1 Housing 209 258 1400 1283 1.60 1.60 1171 2 Real Estate 124 149 1200 1100 1.40 1.20 1013 3 Wholesale and Retail Trade 41 87 468 1.36 1.07 1.20
Slide 33: Governance Structure Board of Directors & Management Team
Classification | CONFIDENTIAL Governance Structure Board of Directors & Management Team
Slide 34: Board of Directors
Classification | CONFIDENTIAL Board of Directors Dr Meena Hemchandra Sri B Ramesh Babu Dr K S Ravichandran Sri R Ramkumar Sri K G Mohan Non-executive Independent Managing Director and Chief Non-Executive Independent Non-Executive Independent ( Part-time) Chairperson Non-Executive Non- Executive Offi
Slide 35: Management Team
Classification | CONFIDENTIAL Management Team Mr B Ramesh Babu Mr Dolphy Jose Mr Chandrasekaran MS Mr J Natarajan Designation: CGM & Head- Designation: MD and CEO Designation: President Designation: CGM and COO Consumer Banking Years of Experience: 32+ Years of Experience: 40+ Years of Experience: 4
Slide 36: Building Strong Digital Eco-system
Classification | CONFIDENTIAL Building Strong Digital Eco-system D-Lite Mobile Banking App Bharath/UPI QR, Fund Fixed/Recurring/Green transfer through Deposits IMPS/UPI/NEFT/RTGS Trains/Bus/Flights/Cabs/ Online Gold loan/Pre Hotels approved loans E -ASBA/Demat Bill payments,DTH Services/Mutual /Mobi
Slide 37: Digital Banking
Classification | CONFIDENTIAL Digital Banking DLite App Green Deposit Scheme National Pension System Accounts Registrations Implementation Integration Opened 24.28 users 3.81L DLite Recent ₹ launches Avg Daily Txns VKYC Slot Booking UPI-Foreign Inward 73.12K Implementation Remittance-Consent Capturi
Slide 38: Digital Banking
Classification | CONFIDENTIAL Digital Banking Driving Customer Experience through Digital Onboarding Strong & Secure API Stack- End to end Digital Onboarding through AOS for Both NTB & ETB Strong 1300+ APIs with scalable and reliable architecture Current Account supports digital journeys across vert
Slide 39: Digital Partnerships
Classification | CONFIDENTIAL Digital Partnerships ASSETS LIABILITIES www.kvb.co.in
Slide 40: Environmental Social Governance
Classification | CONFIDENTIAL Environmental ESG Social Governance
Slide 41: ESG KPI Highlights- Environment
Classification | CONFIDENTIAL ESG KPI Highlights- Environment Launched ‘KVB Green Deposits’ Integration of ESG ➢ The Bank’s Credit policy includes a section on ESG aspects ( Subject to regulatory amendments by RBI from time to time ➢ During the sanction process, Credit proposals are analysed on the
Slide 42: ESG KPI Highlights- Environment and Social
Classification | CONFIDENTIAL ESG KPI Highlights- Environment and Social Work Under Progress Donated 2 Battery Operated Buggies to NIMS Hospital, Hyderabad for Patient's use Installation of a Donated Battery-Operated Garbage Sewage Treatment Water Metering Collecting Buggy to Eswaran Temple plant En
Slide 43: Social CSR Activities
Classification | CONFIDENTIAL Social CSR Activities Equipped Panchayat Union Primary School with Smart TV and Computers. Under “ MY Dream School ” project, Bank organized an eye camp and distributed eyeglasses to students in need at their school. At the regional Science center, a workshop on aero mo
Slide 44: Social CSR Activities
Classification | CONFIDENTIAL Social CSR Activities Aided Medical Equipment's to Ophthalmology and Surgical Department of Medical College Hospital worth Rs. 59 Lakhs Renovated Chippaipannai Anganwadi Centre at Turuchirapalli CSR Programs in FY2023-24 • Programs focused on education, healthcare, envi
Slide 45: ESG KPI Highlights- Governance
Classification | CONFIDENTIAL ESG KPI Highlights- Governance Board Diversity Policy Board Composition Dedicated attention to various areas 8 Directors in our Board comply The bank has established 10 The bank has established a Board with the Bank’s Diversity Policy Diversity policy governing Committe
Slide 46: Awards and Accolades in the Quarter
Classification | CONFIDENTIAL Awards and Accolades in the Quarter ‘BUSINESS TODAY’ Best Small Indian Bank for FY 2023 45 www.kvb.co.in
Slide 47: Awards and Accolades in the Quarter
Classification | CONFIDENTIAL Awards and Accolades in the Quarter IBA 19th Annual Technology MSME Cloud & BFSI banking Conference, Expo and Awards 2023 Data Centre leadership awards 2024 excellence Summit & Award-2023 Award 2024 Winner: Best Digital Engagement Runner Up: Best Digitization in Best Ba
Slide 48: Shareholding pattern External Ratings
Classification | CONFIDENTIAL Shareholding pattern External Ratings Promoter, 2.22 Rating Agency Instrument Ratings Resident Mutual Fund, Individual, 41.26 29.01 Certificate of A1+ Insurance Deposits Companies, 5.17 Foreign Portfolio Investors Certificate of others, 6.98 Category , 15.38 A1+ Deposit
Slide 49: Dynamic workforce
Classification | CONFIDENTIAL Dynamic workforce Leading to improved Efficiency 17.67 18 18 17 14.25 15 14 9.20 4.60 3.00 FY 20 FY 21 FY 22 FY 23 FY 24 FY 20 FY 21 FY 22 FY 23 FY 24 Business per employee (Rs. Crore) Profit per Employee (Rs. Lakhs) 195 176 160 149 138 FY 20 FY 21 FY 22 FY 23 FY 24 Bus
Slide 50: Decade of Sustained Growth
(Rs. crore) Classification | CONFIDENTIAL Decade of Sustained Growth Year 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Paid up Capital 107 122 122 122 145 160 160 160 160 160 161 Reserves 3,219 4,124 4,451 4,723 6,066 6,205 6,440 6,760 7,308 8,264 9,879^ Ow
Slide 51: Thank You
Classification | CONFIDENTIAL Thank You