31.03.2018 2 Blending Tradition with Modernity . | 1916 6.88 million - - PowerPoint PPT Presentation

Investor Presentation 31.03.2018

2

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

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7 1 59 119 7 14 1 Metro 26%

Urban 20% 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%

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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

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The New Operational Paradigm – A Work in Progress

Hyper Local branches with empowered Managers to meet customer needs immediately

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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 500 1000 1500 2000 2500 FY 14 FY 15 FY 16 FY 17 FY 18

Net Interest Income

1010 1103 1185 1285 1421 500 1000 1500 FY 14 FY 15 FY 16 FY 17 FY 18

Operating Expense

528 547 547 608 639 200 400 600 800 FY 14 FY 15 FY 16 FY 17 FY 18

Staff Cost

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564 581 707 782 900 500 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)

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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)

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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)

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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% Mar 15 Mar 16 Mar 17 Mar 18

Cost to Income %

0.88% 1.03% 1.00% 0.53% 0.00% 0.50% 1.00% 1.50% Mar 15 Mar 16 Mar 17 Mar 18

ROA

10.93% 12.41% 12.03% 5.52% 0.00% 4.00% 8.00% 12.00% Mar 15 Mar 16 Mar 17 Mar 18

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% Mar 17 June 17 Sep 17 Dec 17 Mar 18

Cost to Income %

1.39% 0.95% 0.48% 0.43% 0.30% 0.00% 0.50% 1.00% 1.50% Mar 17 June 17 Sep 17 Dec 17 Mar 18

ROA

17.28% 11.71% 5.76% 4.60% 3.23% 0.00% 5.00% 10.00% 15.00% 20.00% Mar 17 June 17 Sep 17 Dec 17 Mar 18

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

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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

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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

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% 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 20 40 60 80 FY 14 FY 15 FY 16 FY 17 FY 18

Customer Deposits

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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)

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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 18 70.42% 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

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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

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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 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% FY14 FY15 FY16 FY17 FY18 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

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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)

MANUFACTURI NG SECTOR

30% JEWEL LOAN 15% PERSONAL LOAN 13% TRADING 17% BILLS 3% NBFC 3% OTHER EXPOSURES 19%

INFRASTURCTU RE 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% FY14 FY15 FY16 FY17 FY18 Working Capital Loans Term Loans 12%

11% 10% 10% 8%

FY14 FY15 FY16 FY17 FY18

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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.

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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

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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)

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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

Mar 17 June 17 Sep 17 Dec 17 Mar 18

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

• f 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%

Mar 15 Mar 16 Mar 17 Mar 18 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% FY14 FY15 FY16 FY17 FY18 Share of RTGS transactions (by volume) 143 338 353 444 533 200 400 600 Mar 14 Mar 15 Mar 16 Mar 17 Mar 18 Cash Deposit Machines (Nos.) 8434 9234 10157 22068 22873 10000 20000 FY14 FY15 FY16 FY 17 FY 18 POS TERMINALS 15 40 168 722 807 400 800 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 FY14 FY15 FY16 FY17 FY18 PG 54%

GRADUATE

35%

Others 11%

6.2% 4.5% 2.7% 2.2% 3.9% 1.0% 3.0% 5.0% 7.0% FY14 FY15 FY16 FY17 FY18 10.60 11.20 12.40 12.85 12.92 4.00 8.00 12.00 16.00 FY14 FY15 FY16 FY17 FY18 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 FY14 FY15 FY16 FY17 FY18 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 FY14 FY15 FY16 FY17 FY18 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

• bligation 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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