investor presentation 31.03 - karur vysya bank · provisions 1,273 688 85.03 credit related 1,190...

Investor Presentation

31.03.2018

Blending Tradition with Modernity …….

Inception 1916 | Customer Base 6.88 million

102 years Consistently Profitable & Unbroken Dividend Pay Out

1st BANK RBI approves us as the first bank to issue BONUS SHARES

Banking technology pioneers 13 years | 100 % CBS 2005

Top Credit Rating (short term borrowings) by CRISIL & ICRA A1+

3

KVB – an unique franchise!

Bank of Choice, trusted by : Over 6.8 million individuals

Over 450000 businesses

Over 700000 customers involved in agriculture

Unmatched presence in India’s fast growing hinterland

CATEGORY No of Branches*

Metro 205

Urban 162

Semi Urban 300

Rural 47

Unbanked Rural 85

Total 799

Customer service excellence the differentiator

3

16

28

52

4

6

1

1

1

5

2

16

6

420

21

7

1

59

119

7

14

1

Metro 26%

Urban20%

Semi Urban

38%

Rural 16%

Category 31.03.18 31.03.17 31.03.16

Branches 790 711 667

ATM's + Cash

Recyclers 2328 2191 2008

* Includes extension counters & satellite branches

4

Performance Highlights FY 2017-18

§ Total Business crosses Rs.1,00,000 crore milestone to Rs. 1,02,863 crore,

registering a growth of 8%

§ Robust credit growth of 11% (Rs. 4,538 crore) - gross advances stands at

Rs. 45,973 crore

§ CASA balances continue to grow well - 11% growth Y-o-Y.

§ CA growth - 13% & SA growth - 10%. CASA mix up at 29%

§ Operating Profit improves by 13% to Rs. 1,777 crore

§ Net Interest Income up by Rs. 225 crore (11% rise)

§ NIM improves by 16 bps to 3.86%

§ Other Income increases by Rs. 118 crore (15% rise)

§ CRAR stands at 14.43%

5

Blending Tradition with Modernity

• Core banking platform upgradation underway – Upgrading to version 11.7 of Flexcube for improved security & functionality

– Based on service oriented architecture that enables open API banking

– Integration gateway enabled

• Digital transformation progressing well

– Home loan & working capital loan renewal live

– Fully paperless solution available in assisted & self service modes

• Dedicated Asset Sales Force created to facilitate retail asset growth

• Third Party Product Sales Force established – To facilitate sale of Insurance/Investment & other ancillary products

• Centralized Collection Infrastructure established – Live since January 2018

– Retail Credit products covered, Commercial products coverage to start in Q3

• Chief Risk Officer in Place

– Recruitment initiated to establish a Best in Class Risk Functions

• Analytics – Centre of Excellence

– Being established (Q3, 2018)

6

Digital Transformation

Working Capital

(Renewal)

Mar. 2018 Home Loans

Mar. 2018

Loan Against

Property Scheduled*

Jun. 2018 Personal Loan

Scheduled* Jun. 2018

Auto Loans Scheduled* Aug. 2018

Commercial

Credit Card Scheduled* Q3, FY18-19

Digital Bank Scheduled*

Jul. 18

Working Capital (Fresh)

Scheduled* Aug. 18

* Scheduled dates are provided on the basis of information available at this time, these are subject to change

7

The New Operational Paradigm – A Work in Progress

Hyper Local branches with

empowered Managers to

meet customer needs

immediately

8

BUSINESS

8%

ADVANCES

11%

OPERATING PROFIT

Rs. 1,777 cr. 13%

CASA

Rs. 16,577 cr. 11%

3.86% NIM*

16 bps

14.43% CRAR

Performance Highlights FY 2017-18

*Includes revenue of non recurring nature. Net of such revenue NIM stands at 3.74%

9

Net Profit

Rs. 51 crore

Operating Profit

Rs. 480 crore

ROA 0.30%

NIM* 4.13%

Net NPA

4.16 %

Q4 FY18 Results Snapshot

10

*Includes revenue of non recurring nature. Net of such revenue NIM stands at 3.70%

Particulars

FY 2017-18 FY 2016-17 Y-o-Y (%)

Capital & Liabilities

Capital 145 122 18.85

Reserves and Surplus 6,119 4,914 24.52

Deposits 56,890 53,700 5.94

Borrowings 2,382 1,696 40.45

Other Liabilities and Provisions 1,393 1,376 1.24

Total 66,929 61,808 8.29

Assets

Cash and Balances with RBI 2,960 2,790 6.09

Balances with Banks 1,337 1,555 (14.02)

Investments 15,803 14,857 6.37

Advances 44,800 40,908 9.51

Fixed Assets 528 419 26.01

Other Assets 1,501 1,279 17.36

Total 66,929 61,808 8.29

Business (Gross Advances + Deposits) 1,02,863 95,135 8.12

Balance Sheet

(Rs. in crore)

11

Income v/s Expenses

INR crore

1249

1466

1781

2074

2298

0

500

1000

1500

2000

2500

FY 14 FY 15 FY 16 FY 17 FY 18

Net Interest Income

1010 1103

1185 1285

1421

0

500

1000

1500

FY 14 FY 15 FY 16 FY 17 FY 18

Operating Expense

528 547 547 608

639

0

200

400

600

800

FY 14 FY 15 FY 16 FY 17 FY 18

Staff Cost

12

564 581

707 782

900

0

500

1000

FY 14 FY 15 FY 16 FY 17 FY 18

Non Interest Income

Profit and Loss A/c (Rs. in crore)

Particulars Mar-18 Mar-17 YoY (%)

Net Interest Income 2,298 2,074 10.80

Other Income 900 782 15.09

Total Income 3,198 2,856 11.97

Operating Expenses 1,421 1,285 10.58

Operating Profit 1,777 1,571 13.11

Provisions 1,273 688 85.03

Credit Related 1,190 648 83.64

Others 83 40 107.5

Profit Before Tax 504 883 (42.92)

Tax 158 277 -

Net Profit 346 606 (42.90)

13 Operating expenses includes additional expenditure of Rs.26 Cr towards increase in

gratuity ceiling from Rs.10 Lakhs to Rs.20 Lakhs.

Profit and Loss A/c (Quarter)

(Rs. in crore)

Particulars Q4

FY 17-18 Q4

FY 16-17 YoY (%)

Net Interest Income 643 580 10.86

Other Income 209 232 (9.91)

Total Income 852 812 4.93

Operating Expenses 372 305 21.97

Operating Profit 480 507 (5.33)

Provisions 394 217 81.57

Credit Related 360 198 81.82

Others 34 19 78.95

Profit Before Tax 86 290 (70.34)

Tax 35 72 -

Net Profit 51 218 (76.61)

14 Operating expenses includes additional expenditure of Rs.26 Cr towards increase in

gratuity ceiling from Rs.10 Lakhs to Rs.20 Lakhs.

Break Up of Other Income

(Rs. in crore)

Particulars FY 17-18 FY 16-17 YoY (%)

TOTAL NON INTEREST INCOME 900 782 15.09

1) Fee Income 799 577 38.47

• Commissions 617 480 28.54

• Forex 44 38 15.79

• Others* 138 59 133.90

2) Investments trading profit 101 205 (50.73)

*Includes recoveries from Written Off A/c’s - Rs. 44 crore (Rs. 5 crore in FY 2016-17)

15

Break Up of Other Income (Quarter)

(Rs. in crore)

Particulars Q4

FY 17-18 Q4

FY 16-17 YoY (%)

TOTAL NON INTEREST INCOME 209 233 (10.30)

1) Fee Income 201 155 29.67

• Commissions 153 127 20.47

• Forex 14 11 27.27

• Others* 34 17 100

2) Investment trading profit 8 78 (89.74)

*Includes recoveries from Written Off A/c’s - Rs. 7 crore (Q4 FY 17-18) & Rs. 4 crore (Q4 FY 16-17)

16

Healthy Other Income Profile

Growth in Other Income Fee income consistently contributes > 60% of other income

• Non interest income accrues from diverse sources – fee based, digital products, bancassurance etc. and has shown steady growth

• Share in Total Income 14% (FY 2017-18)

60% 69% 66% 61%

69%

18%

12% 13% 26% 11%

7% 7% 7%

5%

5%

16% 12% 14% 7%

15%

0%

20%

40%

60%

80%

100%

FY 14 FY 15 FY 16 FY 17 FY 18

Fee Income % Treasury % Forex Gain % Others %

564 581

707

782

900

10% 10%

11%

12%

14%

5

10

15

20

200

400

600

800

1000

FY 14 FY 15 FY 16 FY 17 FY 18

Other Income Other Income as % of Total Income

(Rs. in crore)

17

Key Ratios (Annual)

2.91%

3.43%

3.70% 3.86%

2.00%

2.50%

3.00%

3.50%

4.00%

Mar 15 Mar 16 Mar 17 Mar 18

NIM 53.91%

47.63%

44.99% 44.43%

40.00%

45.00%

50.00%

55.00%


Cost to Income %

0.88%

1.03% 1.00%

0.53%

0.00%

0.50%

1.00%

1.50%


ROA

10.93%

12.41% 12.03%

5.52%

0.00%

4.00%

8.00%

12.00%


ROE

18

Key Ratios (Quarterly)

4.04%

3.76% 3.81% 3.71%

4.13%

3.00%

3.50%

4.00%

4.50%

Mar 17 June 17 Sep 17 Dec 17 Mar 18

NIM

37.55%

42.00%

45.61% 46.45% 43.73%

25.00%

35.00%

45.00%

55.00%


Cost to Income %

1.39%

0.95%

0.48% 0.43% 0.30%

0.00%

0.50%

1.00%

1.50%


ROA 17.28%

11.71%

5.76%

4.60% 3.23%

0.00%

5.00%

10.00%

15.00%

20.00%


ROE

19

Key Ratios

Particulars FY 17-18 FY 16-17

Cost of Deposits 5.99% 6.60%

Yield on Advances 10.30% 11.34%

Cost of Funds 5.91% 6.52%

Yield on Funds 9.13% 9.62%

NIM 3.86% 3.70%

Spread 3.22% 3.10%

Cost Income Ratio 44.43% 44.99%

Business/Emp. (Rs. Crore) 12.92 12.85

Profit/Emp. (Rs. Lakh) 4.35 8.19

20

4.04 4.18 4.26

4.74

4.31

2.64 2.91

3.43 3.70

3.86

2.09 2.27

2.71

3.10 3.22

1.00

3.00

5.00

Mar 14 Mar 15 Mar 16 Mar 17 Mar 18

Spread(Deposits and Advances)% NIM% Spread on Funds%

Key Ratios (Quarterly) Particulars Q4 FY 17-18 Q4 FY 16-17

Cost of Deposits 5.78% 6.15%

Yield on Advances 9.89% 11.23%

Cost of Funds 5.70% 6.03%

Yield on Funds 9.14% 9.52%

NIM 4.13% 4.04%

Spread 3.44% 3.49%

Cost Income Ratio 43.73% 37.55%

Business/Emp. (Rs. Crore) 12.92 12.85

Profit/Emp. (Rs. Lakh) 2.56 11.73

21

4.25% 4.39%

4.61%

4.86% 5.08%

4.43% 4.43%

4.23% 4.11%

3.55% 3.52% 3.61%

3.68%

4.04%

3.76% 3.81% 3.71%

4.13%

2.99% 2.90%

3.01%

3.21%

3.39%

3.17% 3.19% 3.07%

3.44%

2.89%

3.99%

5.09%

Mar 16 June 16 Sep 16 Dec 16 Mar 17 June 17 Sep 17 Dec 17 Mar 18

Spread(Deposits and Advances) NIM Spread on Funds

Advances v/s Deposits

INR ‘000 crore

5 6 8

10 11

4 4

4

5 6

0

5

10

15

20

FY 14 FY 15 FY 16 FY 17 FY 18

CASA

Savings Demand

22%

23.30%

27.73%

29.14%

20%

25%

30%

FY 15 FY 16 FY 17 FY 18

CASA Mix %

34 36 39 41 45

66%

68%

66% 66%

67%

0

10

20

30

40

50

60%

62%

64%

66%

68%

70%

FY 14 FY 15 FY 16 FY 17 FY 18

Advances Advances as a % of Total Assets

Loans and Advances

44 45 50

54 57

0

20

40

60

80

FY 14 FY 15 FY 16 FY 17 FY 18

Customer Deposits

22

Retail Liability Franchise-Granular and Sticky

Low dependence on wholesale deposits Low concentration of Deposits

Break Up of Deposits (FY18)

Term deposits are primarily retail deposits. Only 8% of term deposits are > Rs.5 Cr 71%

10%

19%

Term Deposits Demand Deposits Savings Deposits

12%

9% 9%

7% 6%

0%

5%

10%

15%

FY 14 FY 15 FY 16 FY 17 FY 18

Concentration of Top 20 depositors %

63%

23%

6%

8%

< Rs.15 Lakhs

Rs.15 Lakhs-Rs.1 Cr

Rs.1 Cr-Rs.5 Cr

> Rs.5 Cr

23

Total Deposits & CASA

Particulars FY 17-18 FY 16-17 Y-o-Y Growth

Total Deposits 56,890 53,700 5.94%

Demand 5,576 4,921 13.31%

Savings 11,001 9,968 10.36%

Term Deposits 40,313 38,811 3.87%

CASA 16,577 14,889 11.34%

CASA % 29.14% 27.73%

(Rs. in crore)

24

Investment Portfolio

Investments (Rs. crore) Portfolio wise Investment

Investment Portfolio

Debentures/CD/MF/CP includes SRs of Rs.492.48 crore (3.08%)

Modified Duration

HTM AFS HFT Total

4.65 3.47 0.00 4.32

Yield on Investment

14955

15992

Mar 17 Mar 1870.42%

29.58%

0% HTM

AFS

HFT

87.71%

11.35%

0.94%

SLR Debentures/CD/MF/CP Shares

7.22% 7.00%

Mar 17 Mar 18

25

Advances Portfolio

(Rs. in crore)

Segment wise contribution to advances portfolio

31%

35%

17%

17%

FY 17-18

33%

35%

17%

15%

FY 16-17 Corporate

Commercial

Agri

Retail

Particulars FY 17-18 FY 16-17 Y-o-Y Growth %

Advances 45,973 41,435 10.95

Commercial 16,095 14,504 10.97

Corporate 14,397 13,612 5.77

Agriculture 7,861 6,979 12.64

Retail (Personal Banking) 7,620 6,340 20.19

Jewel Loans

(incl. in above) 7,092 6,159 15.15

26

Advances – Business Verticals

Advances by Value Advances (%)

ABG - Agri Banking , CBG – Commercial Banking, CIG – Corporate Banking, PBG – Personal Banking

6093 6240

7032 6979 7861

11188 11774

12763

14504

16095

12841 13402 13763

13612

14397

4304 5275

5918 6340

7620

0

4000

8000

12000

16000

20000

FY14 FY15 FY16 FY17 FY18

ABG CBG CIG PBG

18% 17% 18% 17% 17%

32% 32% 32%

35% 35% 37% 37%

35%

33% 31%

13% 14% 15% 15% 17%

0%

10%

20%

30%

40%


ABG CBG CIG PBG

27

Granular Loan Book

Commercial book

• Average ticket size of Rs 3.9 Mn • 80% of commercial loans are less than

Rs. 50 Mn

Corporate book

• Average ticket size of Rs 353 Mn • 69 % of corporate loans are less than

Rs.1 Bn

Commercial Loans : Exposures upto Rs. 250 Mn Corporate Loans : Exposures above Rs. 250 Mn

80%

11%

8%

1%

< 50 Mn

>= 50 Mn < 100 Mn

>= 100 Mn < 250 Mn

>= 250 Mn

16%

28%

25%

31%

< 250 Mn

>= 250 Mn < 500 Mn

>= 500 Mn < 1 Bn

>= 1 Bn

28

Advances - Composition Sub-sectoral exposures well spread out; diversified industrial exposures (FY 17-18)

Rs.460 Bn Breakup of Industrial exposure (Rs.136 Bn)

Working capital focus enables quicker repricing of loans Low concentration: Top 20 borrowers (% of overall loans)

MANUFACTURING SECTOR

30%

JEWEL LOAN 15%

PERSONAL LOAN 13%

TRADING 17%

BILLS 3%

NBFC 3%

OTHER EXPOSURES

19% INFRASTURCTURE 17%

POWER 4%

TEXTILES 30%

IRON AND STEEL 10%

FOOD PROCESSING

5%

CHEMICALS AND CHEMICAL

PRODUCTS 4%

ALL ENGINEERING

5%

CEMENT 2%

TRANSPORT SECTOR

3%

GEMS AND JEWELLERY 4%

OTHERS 16%

88% 83% 79% 79% 80%

12% 17% 21% 21% 20%


Working Capital Loans Term Loans

12% 11%

10% 10%

8%

FY14 FY15 FY16 FY17 FY1829

Advances – Sector Details

Particulars

Amount (Rs.in Crore) % to Total Advance Growth

Mar 18 Mar 17 Mar 18 Mar 17 Amt %

Manufacturing sector

13,626 12,686 29.64 30.62 940 7.41

Trading 7,851 6,889 17.08 16.63 962 13.96

Jewel loan 7,092 6,159 15.43 14.86 933 15.15

Personal loans @ 5,790 5,488 12.59 13.24 302 5.50

CRE 2,761 2,201 6.01 5.31 560 25.44

Bills 1,542 1,592 3.35 3.84 (50) (3.14)

NBFC 1,295 1,159 2.82 2.80 136 11.73

Capital market 71 111 0.15 0.27 (40) (36.04)

Others* 5,945 5,150 12.93 12.43 795 15.44

Total Advances 45,973 41,435 100.00 100.00 4,538 10.95

@ Vehicle, Housing, Deposit loans & Insta Loans *Exposure to other service sectors.

30

Manufacturing Sector - Industry Wise

Industry Amount (Rs.in Crore) % to Total Advance Growth over Mar 17

Mar 18 Mar 17 Mar 18 Mar 17 Amount %

TEXTILES 4,154 3,769 9.0 9.1 385 10.2

INFRASTRUCTURE 2,787 2,964 6.1 7.2 (177) (6.0)

BASIC METAL & METAL

PRODUCTS 1,324 1,194 2.9 2.9 130 10.9

FOOD PROCESSING 749 536 1.6 1.3 213 39.7

ALL ENGINEERING 625 513 1.4 1.2 111 21.6

CHEMICALS & CHEMICAL

PRODUCTS 513 522 1.1 1.3 (9) (1.7)

GEMS & JEWELLERY 501 444 1.1 1.1 57 12.8

CONSTRUCTION 471 371 1.0 0.9 100 27.0

TRANSPORT SECTOR 400 396 0.9 1.0 4 1.0

RUBBER & PLASTIC PRODUCTS 361 355 0.8 0.9 6 1.7

CEMENT & CEMENT

PRODUCTS 292 385 0.6 0.9 (93) (24.2)

WOOD & WOOD PRODUCTS 304 268 0.7 0.6 36 13.4

PAPER & PAPER PRODUCTS 251 195 0.5 0.5 56 28.7

MINING & QUARRYING 187 304 0.4 0.7 (117) (38.5)

BEVERAGES & TOBACCO 180 112 0.4 0.3 68 60.7

LEATHER & LEATHER

PRODUCTS 61 37 0.1 0.1 24 64.9

GLASS & GLASSWARE 58 40 0.1 0.1 18 45

PETROLEUM 30 34 0.1 0.1 (4) (11.8)

OTHER INDUSTRIES 379 247 0.8 0.6 132 53.4

TOTAL 13,626 12,686 29.6 30.6 940 7.4

31

Retail Portfolio

Segment Amount (Rs. in crore)

Mar-18 Mar-17 Mar-16 Mar-15 Mar-14

Housing 2,795 2,330 2,094 1,757 1,387

Mortgage (LAP) 1,393 965 787 568 381

Vehicle 1,017 921 831 782 735

Jewel Loans 578 596 703 793 802

Personal Loans 296 316 354 356 353

Education Loans 261 266 245 207 169

Others 1,045 946 904 779 464

Total 7,385 6,340 5,918 5,242 4,291

(Rs. in crore)

32

Security Coverage (Rs. in crore)

CATEGORY 31.03.18

Exposure backed by - Letter of Credit 895

Liquid Assets ^ 7,836

Vehicles 1,747

Commodities 1,131

Total (1) 11,609 Exposure secured by Immovable Property (% Coverage)

> 100% 23,485

90% to <100% 4,454

75% to <90% 2,091

50% to <75% 3,874

<50% 3,483

Total (2) 37,387 Exposure without Immovable property as security Corporate, Consortium, Government, IBPC etc. 2,679

Unsecured Exposure 416

Total (3) 3,095

Total Risk Assets outstanding – Fund and Non Funded (1+2+3)* 52,091

* Total risk assets excludes technical write off accounts ^Liquid Assets - Cash, Jewels, NSC/Insurance policies & other liquid assets Coverage defined as (Value of Security)/Loan Principal O/s; & is based on available valuation.

33

Stress Accounts (Rs. in crore)

Category 31.03.18 31.03.17

SDR Outstanding Nil 105

5/25 76 77

S4A Accounts 79 54

Sale to ARC during the year Nil Nil

34

Sector-wise Restructured Advances

S. N. SECTOR AMOUNT (Rs. In Crore) (%) to Total Rest. Adv

Mar-18 Mar-17 Mar-18 Mar-17

1 INFRASTRUCTURE 200.59 416.36 76.44 49.46

2 TEXTILES 42.59 119.88 16.23 14.24

3 AGRICULTURE 7.07 7.63 2.69 0.91

4 EDUCATIONAL LOANS 0.08 0.15 0.03 0.02

5 AUTO LOANS - 32.47 - 3.86

6 FOOD PROCESSING - 236.94 - 28.15

7 OTHERS 12.1 28.38 4.61 3.37

TOTAL 262.43 841.81 100 100

% to Total Standard Advance 0.57% 2.03%

35

2.69

76.44

16.23

0.03

4.61

% to Total Restructured Advances-Mar 18

0.91

49.46

14.24

3.86

0.02

28.15

3.37

% to Total Restructured Advances-Mar 17 Agri

Infra

Textiles

Auto Loans

Educational Loans

Food Process

Others

Movement of Restructured Advances

(Rs. in crore)

Particulars

Apr-17 to Mar-18 Jan-18 to Mar-18

No of

A/c’s Amount

No of

A/c’s Amount

Position at the beginning of the period - [A] 33 841.81 32 715.24

Addition during the period - [B] 3 0.05 - -

Addition of facilities in existing A/c’s - [C] - - - -

Addition through upgradation from NPA – [D] 2 0.04 - -

Accounts closed during the period - [E] 5 0.60 1 0.08

Accounts ceasing to attract higher provision

(upgradation)– [F] 3 9.97 3 10.21

Amount recovered during the period – [G] - 11.00 - 7.66

Accounts slipping to NPA during the period - [H] 8 557.90 6 434.86

Position at the end of the period

A+B+C+D-(E+F+G+H) 22 262.43 22 262.43

36

NPAs, Provisions & PCR

(Rs. in crore)

37

1484 1807

2136

2663

3016

1033 1189

1407 1699

1863

429 586 692

929 1091

Mar-17 Jun-17 Sep-17 Dec-17 Mar-18

Gross NPA

Net NPA

NPA Provision

2.53 2.85

3.24

3.88 4.16

3.58

4.27

4.83

5.94

6.56

Mar-17 Jun-17 Sep-17 Dec-17 Mar-18

Net NPA% Gross NPA%

57.83 57.01

54.09 54.07

56.50


Provision Coverage Ratio%

Movement of NPA (Rs. in crore)

Particulars Apr 17 - Mar 18 Apr 16 - Mar 17

Movement of Gross NPAs

Opening Balance 1,484 511 Additions during the period 2,092 1,331

Reductions during the period 560 358

Closing Balance 3,016 1,484 Movement of Net NPAs

Opening Balance 1,033 216 Additions during the period 1,103 941 Reductions/write off during the period 273 124

Closing Balance 1,863 1,033

NPA Provision movement

Opening Balance 429 285

Provn. made during the period 1,024 484

Write off/Write back of excess provn. 362 340

Closing Balance 1,091 429

38

Vertical-wise Advances vis-à-vis NPA

(Rs. in crore)

VERTICAL

Advances

O/s. as on

31.03.2018

NPA Addition

during Q4

NPA as on

31.03.2018

Total Net NPA

Addition during

FY 17-18

% NPA Addition

Q4 (annld.)

COMMERCIAL 16,095 63 538 191 1.56

CORPORATE 14,397 513 2,232 1,297 14.25

AGRICULTURE 7,861 11 105 16 0.56

RETAIL (PERSONAL BANKING)

7,620 2 141 28 0.10

TOTAL 45,973 589 3,016 1,532 5.12

39

105

538

2232

141

NPA – Vertical-wise

Agriculture Commercial Corporate Retail (Personal Banking)

Divergence Disclosure (Rs. in crore)

Particulars Amount

Divergence in NPA 651

of which -

Loans classified as NPA prior to RBI Inspection

(i.e. upto Q3 2017-18) 651

Loans classified as NPA consequent to RBI Inspection

(i.e. in Q4 2017-18) Nil

Incremental provision requirement post RBI

Inspection 98

40

Credit & other Provisions (excl. Tax)

(Rs. in crore)

Particulars FY 17-18 FY 16-17

Total Provisions 1,274 687

NPA 1,025 409

Standard Assets (18) (11)

A/c’s referred to NCLT (Std)

12 -

Restructured (Incl. SDR,S4A,5/25 etc..)

(13)

-

Investment 91 38

Others (including loss on sale of assets to ARCs)

177 251

41 Availed benefits under deferred provision for NCLT A/cs of Rs.70 Crs and amortisation of

MTM losses of Rs.24 Crs to be charged in the FY 18-19.

Credit & other Provisions (excl. Tax) - Qtly

(Rs. in crore)

Particulars Q4 FY 17-18 Q4 FY 16-17

Total Provisions 394 217

NPA 414 198

Standard Assets (27) (2)

A/c’s referred to NCLT (Std.)

7 -

Restructured (Incl. SDR,S4A,5/25 etc..)

(33) (4)

Investment 33 25

Others - -

42 Availed benefits under deferred provision for NCLT A/cs of Rs.70 Crs and amortisation of

MTM losses of Rs.24 Crs to be charged in the FY 18-19.

Capital Adequacy – Basel III

Entire Tier I comprises of CET1 capital, well

above the min. requirement of 7.375%

43

13.56%

11.26% 11.85%

13.92%

1.05%

0.91% 0.69%

0.51%

0.00%

4.00%

8.00%

12.00%

16.00%


Tier I Tier II

12.17% 12.54%

14.43% 14.61%

Exponential growth in Mobile transactions

Market share in RTGS transactions POS Terminals

Cash Deposit Machines

Leveraging Technology- Delivery Channels

0.91% 0.94% 0.99%

1.14% 1.07%

0.70%

0.90%

1.10%

1.30%

1.50%


Share of RTGS transactions (by volume)

143

338 353

444

533

0

200

400

600

Mar 14 Mar 15 Mar 16 Mar 17 Mar 18

Cash Deposit Machines (Nos.)

8434 9234 10157

22068 22873

0

10000

20000

FY14 FY15 FY16 FY 17 FY 18

POS TERMINALS

15 40

168

722 807

0

400

800

1200

FY14 FY15 FY16 FY17 Jan-18

Mobile Banking (Nos in '000)

Data not available for Mar,18 as per RBI website 44

Young workforce ( average 33 years)….. … and well qualified work force… …with lower attrition …

…leading to better productivity

Human Resources

32

33 33 33 33

30

31

32

33

34

35


PG 54%

GRADUATE

35%

Others 11% 6.2%

4.5%

2.7% 2.2%

3.9%

1.0%

3.0%

5.0%

7.0%


10.60 11.20

12.40 12.85 12.92

4.00

8.00

12.00

16.00


Business per employee (Rs. Crore)

136.34

129.38

134.27 133.80

130.12

124.00

128.00

132.00

136.00

140.00


Business per branch (Rs. Crore)

45

5.85 6.45

7.87 8.19

4.35

0.00

2.00

4.00

6.00

8.00

10.00


Profit per employee (Rs. Lakhs)

Awards & Accolades

IDRBT- Best Bank Award - for innovative use of technology among Small Banks - winner for 9 straight years

Business World-PwC award for Best Small Bank 2016 -Runner up Kamikaze Payments & Cards Summit - award for Most Disruptive Payments Technology of the year : FASTag NSDL award : 2nd position in Top Performer for Demat accounts opened by Banks

46

A Decade of Progress

Year 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Paid up Capital 53.95 54.44 94.49 107.18 107.18 107.18 121.63 121.86 121.86 145.33

Reserves 1296.21 1565.54 2020.05 2601.04 2978.01 3219.16 4124.4 4451.09 4723.16 6066.38

Owned funds 1350.16 1619.98 2114.54 2708.22 3085.19 3326.34 4246.03 4572.95 4845.02 6211.71

CRAR - Basel II 14.92% 14.49% 14.41% 14.33% 14.41% 12.77% 14.63% 12.26

Basel III 12.60% 14.62% 12.17 12.54 14.43

Deposits 15101 19272 24722 32112 38653 43758 44690 50079 53700 56,890

Advances 10563 13675 18052 24205 29706 34226 36691 39476 41435 45,973

Total Income 1711 2005 2482 3621 4695 5680 5977 6150 6405 6600

Operating Profit 418 463 600 726 849 838 943 1303 1571 1777

Net Profit 236 336 416 502 550 430 464 568 606 346

Dividend (%) 120 120 120 140 140 130 130 140 130 30

Branches (No.) 312 335 369 451 551 572 629 667 711 790

EPS (Rs.) 43.71 62.23 44.9 46.81 51.35 40.08 39.86 46.59 9.95* 4.98

Return on Assets 1.49% 1.76% 1.71% 1.56% 1.35% 0.86% 0.88% 1.03% 1.00% 0.53%

Book Value(Rs.) 250.25 297.6 193.04 252.68 287.85 308.91 348.42 375.25 79.51* 85.49

No of Employees 3941 4175 4574 5673 6730 7339 7197 7211 7400 7956 *During the Financial Year 2016-17, one Equity Share face value of Rs.10/- each was subdivided into five Equity Shares face value of Rs.2/- each

(Rs. in crore)

47

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 anyone else. All financial numbers are based on the Audited Financials or the Reviewed Financial results or based on Management estimates. Figures for the previous period(s) have been regrouped wherever necessary; totals in columns /

rows may not agree due to rounding off. The accuracy of this presentation is not guaranteed, it may be incomplete or condensed and it may not contain all material information concerning the Bank.

This presentation does not constitute an offer or invitation, directly or indirectly, to purchase or subscribe for any securities of the

Bank by any person / entity based in India or in any other country. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities.

This presentation may contain statements that constitute forward-looking statements. All forward looking statements are subject to

risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated. Factors that could cause actual results to differ materially include, inter-alia, changes or developments in the Bank’s business, political, economic,

legal and social conditions. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. Except as otherwise noted, all of the information contained herein is

indicative and is based on management information, current plans and estimates / projections. Any opinion, estimate or projection in the presentation constitutes a judgment as of the date of this presentation and there can be no assurance that future

results or events will be consistent with any such opinion, estimate or projection. The Bank disclaims any obligation to update these forward-looking statements to reflect future events or developments.

No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy,

completeness or correctness of the information or opinions contained in this presentation. Further, past performance is not necessarily indicative of future results. Anyone placing reliance on the information contained in this presentation or any other

communication by the Bank does so at his / her / their own risk. Neither the Bank nor anyone else shall be liable for any loss or damage caused pursuant to any act or omission based on or in reliance upon the information contained in the presentation.

The Bank may, at its sole discretion, alter, modify or otherwise change in any manner the contents of this presentation, without

obligation to notify anyone of such change/s. This presentation is not to be distributed, redistributed, copied or disseminated, in any manner, either directly or indirectly.

48

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