Business Performance 31.12.2018 1 DISCLAIMER This presentation has - - PowerPoint PPT Presentation

Business Performance

31.12.2018

INVESTOR PRESENTATION 30.09.2019

1

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

• f 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

• pinion, estimate or projection.

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 whatsoever, either directly or indirectly. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances

• r events that arise after the date the forward-looking statement was made.

2

The Bank of choice - trusted by all

Over 7 million individuals Over 450000 businesses Over 700000 agri customers

3

4

KVB – a unique franchise!

Bank of Choice, trusted by :

• Over 7 million individuals
• Over 450000 businesses
• Over 700000 customers involved in agriculture

Unmatched presence in India’s fast growing hinterland

Customer service excellence the differentiator

1

15 25

51

4 6

1 1

1 5 1 14 6

420

21

6 1

59 121

7

12

1

Category

• No. of Branches

Metro 200 Urban 155 Semi Urban 297 Rural 127 Total 779

Category 30.09.19 31.03.19 31.03.18 Branches 779 778 790 ATM's + Cash Recyclers 2183 2179 2328

Metro 26% Urban 20% Semi Urban 38% Rural 16%

5

Blending Tradition with Modernity

• Business model transformation progressing well
• Digital platform stable and scaling as expected

 Number of retail application processed in H1-FY’20 is equal to 105% of FY’19  Small Business Loans (digital) new loans disbursed grew 85% in value over Q1-FY’20.  Digital jewel loan roll-out continuing (1/3 of network covered)

• Significant Gold Loan growth during the period (INR 2.41 billion during the quarter)
• Co-origination platform using API Gateway live

 4 current relationships  Time to market for new relationships < 1month

• Portfolio performance continues to improve

 Newer vintages performing markedly better than prior periods.  Gross and Net NPA reduce to 8.89% and 4.50% respectively  Provision Coverage Ratio (Provision Held / GNPA) crosses 50%

• Portfolio transitioning towards lower risk asset classes

 Corporate continues to de-grow whilst retail continues to grow

• Bullion business launch expected Q4-FY’20

Our journey

​Branch — the sole distribution platform ​Operationally intensive — branch handling most operational tasks of the bank ​Decentralised decision making at branch ​All customer types managed at branch ​Substantial branch/divisional credit empowerment ​Limited

• versight
• n

branch/divisional office prior to loan booking ​Branch responsible for origination and maintenance of all liabilities and assets ​Limited centralisation ​Largely paper based processes

​KVB’s traditional business model ​Transformed business model

​Branch—one of the distribution platforms ​Responsible for liabilities (all types) and retail/small commercial loans ​Decentralised decisions with systemic controls ​Centralised pre-disbursal oversight on loan disbursal ​Centralised infrastructure for

• Collections
• Operations
• Expense management
• Analytics
• Credit acceptance
• Digital centre of excellence

​Corporate and larger ticket (i.e., > 2 crore) customers relationship managed by specialists (Non-Branch) ​Non-branch distribution established ​Fully digital processes for retail assets and commercial assets up-to INR 15 Crore Co-origination platform live with 4 live relationships 6

KVB DISTRIBUTION EVOLUTION

Pre - 2016 2016 - 2018 Now

Corporate Business Unit

Manages all Corporate & Large SME accounts

Business Banking Unit

Manages all Medium tier SME

accounts

NEO

Alternative distribution Network & Co-origination

Branch

Acquire & Manages Liability Businesses, Retail & Small Commercial Business , i.e < 200lacs

Only Distribution Channel

Corporate Clients Managed by Specialists

Branch

Branch Corporate Business Unit

All retail & SME customers

acquired & Managed by Branches

7

KVB NEO - “a Bank within a Bank“

KVB Neo - Specialist entity to engage the market through alternate distribution mechanisms viz.:  aggregation through third parties;  outbound sales force;  Fintech partnerships;  co-origination etc. Staffed with industry specialists (business, product, risk, sales, underwriting and analytics) and equipped with the most contemporary technology, KVB Neo is a strategic initiative to enable business growth. Currently live in 8 states (15 locations). Loans worth INR 1.45 billion booked in Q2 – FY’20. Current application inflow is approximately INR 2 billion / month. Leveraging API gateway to connect with co-

• rigination partners.

8

Improving Portfolio Performance

Ever 30+ % @ 6 & 12 Month On Book (MOB)

100 93 87 78 68 68 60 45 100 82 74 73 63 57 48

• 20

40 60 80 100 120

Portfolio

6 MOB 12 MOB 100 85 77 70 81 71 53 48 100 76 68 65 71 60 43

• 20

40 60 80 100 120

Commercial

6 MOB 12 MOB

• Month on Book – Performance of a cohort either over 6 or 12 months from booking of the

loan

• Ever 30+% = Original Principal of any loans that is SMA1 anytime during the period

Original principle of the Cohort in Consideration

• All numbers are normalized to values prevailing at September 2015 for the respective

vintage (i.e 6 or 12 MOB)

• Vintage of Sep 2015 represents the loans booked between April 2015 & Sep 2015 @ 6 & 12
• MOB. Similarly for other time period mentioned.

100 87 72 78 71 53 33 24 100 88 80 88 79 63 40

• 20

40 60 80 100 120

Retail

6 MOB 12 MOB

9

​HL (Incl. Top-up) ​Mortgage Loan ​Vehicle Loan (4W) ​Vehicle Loan (2W) ​Personal Loan ​Education Loan ​Total

​Digital

​To be digitized ​87.0% ​77.9%

​100.0%

​72.2%

​100.0% ​100.0% ​84.0% ​16.0%

3% 3%

Commercial Loans Retail Loans

​Digitized1 ​Non Digital – CBS* ​Non Digital – LAPS** ​Total

​100% ​94% ​13.0%

~90% of Loans^ approved digitally in FY20

​22.1%

Digitization across LOS, Iexceed and PeopleSoft

​Digital

​To be digitized

Excludes Staff Loans and Jewel Loans

^ Loans under Retail & Commercial Portfolio * Loans Booked directly in Core Banking System ** Loans Booked through earlier Loan Origination System, being sunset

10

Operation Centralization

Operation Centralization

• 170 tasks & 60 processes identified for

centralization

• Use of systems & automation tools to

enhance productivity

• Expected to provide substantial

release of staff post implementation

Operational Risk Management Cost & Resource

Management

Process Standardization

Increased Consistency & Repeatability

Enhanced Control

11

12

CREDIT CASA PROFIT – Q2 NIM – Q2 BUSINESS CRAR

Highlights

13

Total Business up by 5% @ Rs. 1,11,601 crore Gross Advances grew Y-o-Y by Rs. 1,248 crore to Rs. 49,388 crore CASA share @ 30 % Total Deposits up by 7% at

• Rs. 62,213 crore

CRAR at 15.99% & Tier I at 14.25% Operating Profit Rs. 431 crore Net Profit Rs. 63 crore

3.46%

14

Results Snapshot*

Financial Indicators – 30.09.2019 Parameter Amount YoY Growth % Total Deposits

62,213 7

Gross Advances

49,388 3

Total Business

1,11,601 5

Total Income

1,728 8

Operating Profit

876 7

Net Profit

136 5

Other Business Parameters Gross NPA

4,391

Net NPA

2,118

Gross NPA %

8.89

Net NPA %

4.50

PCR %

61.82

Basel III Capital CRAR

15.99

Tier I

14.25

Tier II

1.74

NIM % (HY)

3.47

RoA % (HY)

0.37

(Rs. crore) * End of Period – 30.09.19

15

(Rs. crore)

Particulars Sep 19 Sep 18

Y-o-Y Growth Amount %

• Avg. Deposits

60,952 57,134

3,818 7

• Avg. Demand Deposit

5,833 5,480

353 6

% to Total 9 10

• Avg. Savings Deposit

12,029 11,054

975 9

% to Total 20 19

• Avg. Time Deposit

43,089 40,600

2,489 6

% to Total 71 71 CASA 17,862 16,534

1,328 8

% to average deposit 29 29

• Avg. Advances

48,557 46,724

1,833 4

• Avg. CD Ratio (%)

79.66 81.78

Business Profile (Averages)

16

(Rs. crore)

Business Profile*

Particulars Sep 19 Sep 18 Y-o-Y % Total Deposits

62,213 58,262 7

Demand

6,142 5,790 6

Savings

12,380 11,411 8

CASA

18,522 17,201 8

Term Deposits

43,691 41,061 6

CASA %

30 30

Gross Advances

49,388 48,141 3

Net Advances

47,102 46,480 1

Total Business

1,11,601 1,06,403 5

* End of Period – 30.09.19

17

Particulars Sep 19 Sep 18 Y-o-Y (%) Capital & Liabilities Capital 160 160

• Reserves and Surplus

6,341 6,181 3 Deposits 62,213 58,262 7 Borrowings 3,052 1,903 60 Other Liabilities and Provisions 1,648 1,433 15 Total 73,414 67,939 8 Assets Cash and Balances with RBI 3,487 3,028 15 Balances with Banks 1,934 1,018 90 Investments (Net) 18,398 15,537 18 Advances (Net) 47,102 46,480 1 Fixed Assets 613 577 6 Other Assets 1,880 1,299 45 Total 73,414 67,939 8

Balance Sheet

(Rs. crore)

Capital Adequacy – Basel III

Entire Tier I comprises

• f CET1 capital, well

above the min. requirement of 7.375%

Nature Capital as at

Sep - 19 Mar-19 Mar-18 Mar-17 Mar-16 Tier I 6,223 6,245 6,145 4,790 4,064 Tier II 760 751 226 278 330 Total 6,983 6,996 6,371 5,068 4,394

18

(Rs. crore)

11.85% 13.92% 14.28% 14.25% 0.69% 0.51% 1.72% 1.74% 12.54% 14.43% 16.00% 15.99%

Mar 17 Mar 18 Mar 19 Sep-19 Tier I Tier II Total

19

Profit and Loss A/c (Qtr.)

Particulars- Q2 FY 19-20 Q2 FY 18-19 YoY (%) Q1 FY 19-20

Net Interest Income 596 579 3 584 Other Income 278 175 59 270 Total Income 874 754 16 854 Operating Expenses 443 393 13 409 Operating Profit 431 361 19 445 Provisions 365 213 71 330 Credit Related 347 191 82 319 Others 18 22 (18) 11 Profit Before Tax 66 148 (55) 115 Tax 3 64

• 42

Net Profit 63 84 (25) 73

(Rs. crore)

20

21

Profit and Loss A/c (Half-year)

Particulars H1 FY 19-20 H1 FY 18-19 YoY (%)

Net Interest Income 1,180 1,163 1 Other Income 548 430 27 Total Income 1,728 1,593 8 Operating Expenses 852 772 10 Operating Profit 876 821 7 Provisions 695 636 9 Credit Related 666 569 17 Others 29 67

• Profit Before Tax

181 185 (2) Tax 45 55 (18) Net Profit 136 130 5

(Rs. crore)

Operating Profit (Qtr)

(Rs. crore)

22

382 398 407 378 340

• 21

27 57 67 91

• 30

240 510

Sep 18 Dec 18 Mar 19 June 19 Sep 19 Core Operating Profit Investment Trading Profit

361 425 464 445 431 2.1 2.5 2.7 2.4 2.4

1.0 2.0 3.0 250 500 Sep 18 Dec 18 Mar 19 June 19 Sep 19 Operating Profit Operating Profit Margin% on Avg. Assets

Income v/s Expenses (Qtr)

(Rs. crore)

579 581 618 584 596

325 650 Sep 18 Dec 18 Mar 19 June 19 Sep 19

Net Interest Income

175 260 273 270 278

150 300 Sep 18 Dec 18 Mar 19 June 19 Sep 19

Non Interest Income

754 841 891 854 874

450 900 Sep 18 Dec 18 Mar 19 June 19 Sep 19

Total Operating Income

172 198 212 204 213 221 218 215 205 230

350 700 Sep 18 Dec 18 Mar 19 June 19 Sep 19

Operating Expenses

Staff Cost Other Op.Exp

23

Break Up of Other Income

Particulars Quarter Half year ended Sep 19 Sep 18 YoY (%) Jun19 Sep 19 Sep 18 YoY (%)

TOTAL NON-INT. INCOME 278 175 59 270 548 430

27

1) Fee Income 153 158 (3) 168 321 333 (4) 2) Investment trading profit 91 (21)

• 67

158 (14)

• 3) Forex Income

10 7 43 9 19 20 (5) 4) Others* 28 31 (10) 28 56 90

• 5) Profit/(loss) on sale of

land, building, other assets etc. (5)

• (2)

(7) 1

• *Includes recoveries from Written Off A/c’s –

Rs.2 crore (H1 FY 19-20) & Rs.24 crore (H1 FY 18-19) Rs.1crore (Q2 FY 19-20) & Rs 2. crore (Q2 FY 18-19)

(Rs. crore)

24

Healthy Other Income Profile (Qtr)

Growth in Other Income ~55 % of other income comes from fee income

• Non

interest income accrues through diverse sources - fee based, e-transactions, third party products etc.

• 32% share in total operating income

Q2 (FY 2019-20)

25

(Rs. crore)

101% 63% 60% 62% 55%

• 12%

10% 21% 25% 33% 4% 3% 4% 3% 4% 7% 24% 15% 10% 8%

• 20%

30% 80% 130%

Sep 18 Dec 18 Mar 19 June 19 Sep 19 Fee Income % Treasury % Forex Gain % Others % 175 260 273 270 278 23 31 31 32 32

20 40 150 300 Sep 18 Dec 18 Mar 19 June 19 Sep 19 Other Income Other Income as % of Total Operating Income

Break Up of Operating Expenses

Particulars Quarter Half year ended Sep 19 Sep 18 YoY (%) Jun 19 Sep 19 Sep 18 YoY (%)

Staff Expenses

213 172 24 204 417 351 19

Of above –

• Prov. for employee

retirement benefits

48 22

• 39

87 51

• Other Operating Expenses 230

221 4 205 435 421 3

TOTAL OPG. EXPENSES

443 393 13 409 852 772 10

(Rs. crore)

26

Key Ratios (Qtr)

27 ^ NIM for Mar 19 includes items of non-recurring nature 3.57% 3.60% 3.88% 3.49% 3.46%

Sep 18 Dec 18 Mar 19 June 19 Sep 19

NIM^

0.49% 0.12% 0.35% 0.40% 0.34%

Sep 18 Dec 18 Mar 19 June 19 Sep 19

ROA

5.28% 1.33% 3.74% 4.49% 3.87%

Sep 18 Dec 18 Mar 19 June 19 Sep 19

ROE

52.12% 49.45% 47.88% 47.87% 50.67% Sep 18 Dec 18 Mar 19 June 19 Sep 19

Cost to Income

Key Ratios (Qtr.)

Particulars Q2 FY 19-20 Q2 FY 18-19 Cost of Deposits 5.86 5.85 Yield on Advances 9.85 9.79 Cost of Funds 5.95 5.87 Yield on Funds 8.59 8.66 NIM 3.46 3.57 Spread 2.64 2.79 Cost to Income Ratio 50.67 52.12 Business/Emp. (Rs. Crore) 13.88 13.70 Profit/Emp. (Rs. Lakh) 3.15 4.31

3.94% 3.79% 4.01% 3.79% 3.99% 3.57% 3.60% 3.88% 3.49% 3.46% 2.79% 2.80% 3.08% 2.71% 2.64%

Sep 18 Dec 18 Mar 19 June 19 Sep 19 Spread(Deposits and Advances) NIM Spread on Funds

28

Key Ratios (Half year)

Particulars H1 FY 19-20 H1 FY 18-19 Cost of Deposits 5.84 5.82 Yield on Advances 9.73 9.82 Cost of Funds 5.90 5.83 Yield on Funds 8.59 8.67 NIM 3.47 3.61 Spread 2.69 2.84 Cost to Income Ratio 49.28 48.47 Business/Emp. (Rs. Crore) 13.88 13.70 Profit/Emp. (Rs. Lakh) 3.39 3.34

29 4.26% 4.74% 4.31% 3.95% 3.89% 3.43% 3.70% 3.86% 3.67% 3.47% 2.71% 3.10% 3.22% 2.89% 2.69%

Mar-16 Mar-17 Mar-18 `Mar- 19 Sep-19 Spread(Deposits and Advances) NIM Spread on Funds

Other Financial Ratios

Particulars Quarter Half year ended Sep 19 Sep 18 Sep 19 Sep 18 Cost to Income (%) 50.67 52.12 49.28 48.47 Operating Profit/ Total Income (%) 23.75 22.14 24.49 24.66 Net Profit/ Total Income (%) 3.49 5.13 3.80 3.89 Other Operating Expenses / Total Income (%) 12.66 13.52 12.15 12.64 Staff Cost / Total Income (%) 11.73 10.58 11.65 10.55 Staff Cost / Total Expenses (%) 15.39 13.58 15.43 14.00 Staff Cost / Operating Expenses (%) 48.10 43.90 48.94 45.48 Business per employee (Rs. crore) 13.88 13.70 13.88 13.70 Profit per employee (Rs. lakh) 3.15 4.31 3.39 3.34

• No. of employees

8,040 7,765 8,040 7,765

30

31

Advances Portfolio

Particulars Sep 19 Sep 18 Y-o-Y Growth % Gross Advances 49,388 48,140 3 Commercial 16,118 16,551 (3) Corporate 13,278 14,430 (8) Retail (Personal Banking)* 11,763 8,855 33 Agriculture 8,229 8,304 (1) Jewel Loans (incl. in above) 8,117 7,651 6

32

(Rs. crore) *Includes IBPC of Rs.1,325 Cr and Rs.700 Cr for Sep 19 and Sep 18 respectively. Growth excl. IBPC is 28%

Advances (Segment by value)

33

(Rs. crore)

Segments ABG – Agri CBG – Commercial (<= Rs. 25 crore) CIG – Corporate (> Rs. 25 crore) PBG – Personal

7861 8304 8113 8229 16095 16551 17056 16118 14397 14430 14169 13278 7620 8855 11278 11763 Mar 18 Sep 18 Mar 19 Sep 19 ABG CBG CIG PBG

34

Advances – Segment Share

Segments ABG – Agri CBG – Commercial (<= Rs. 25 crore) CIG – Corporate (> Rs. 25 crore) PBG – Personal

17% 17% 16% 17% 35% 34% 34% 33% 31% 31% 28% 27% 17% 18% 22% 24%

Mar 18 Sep 18 Mar 19 Sep 19

ABG CBG CIG PBG

Retail & Commercial Loans Portfolio components

35% 15% 9% 6% 4% 2% 28%

Retail Portfolio Composition

Housing Mortgage (LAP) Vehicle Jewel Loans Personal Loans Education Loans Others

84% 11% 5%

CBG portfolio by size

< 50 Mn >= 50 Mn < 100 Mn >= 100 Mn

• Average ticket size - Rs. 4 Mn
• 84% of commercial loans are

less than Rs. 50 Mn

35

Robust Growth in Retail Segment

36

(Rs. crore)

2,094 2,330 2,795 3,619 4,164 787 965 1,393 1,712 1,804 831 921 1,017 1,044 1,040 703 596 578 625 678

FY 16 FY 17 FY 18 FY 19 Sep-19

Jewel Loans Vehicle Mortgage (LAP) Housing

Retail Portfolio

Segment Advances outstanding as at

Sep -19 Mar-19 Mar-18 Mar-17 Mar-16 Housing 4,164 3,619 2,795 2,330 2,094 Mortgage (LAP) 1,804 1,712 1,393 965 787 Vehicle 1,040 1,044 1,017 921 831 Jewel Loans 678 625 578 596 703 Personal Loans 502 424 296 316 354 Education Loans 225 235 261 266 245 Others* 3,350 3,620 1,280 946 904 Total 11,763 11,278 7,620 6,340 5,918

*Includes IBPC of Rs.1,325 Cr, Rs.2,050 Cr and Rs.200 Cr for Sep 19 , Mar 19 and Mar 18 respectively. (Rs. crore)

37

Corporate Book *

• Average ticket size of Rs. 354 Mn
• 73% of corporate loans are less than Rs. 1 Bn
• SMA 1 & 2 in corporate credit is ~ 1.82% of the book

* Corporate Loans : Exposures above Rs. 250 Mn 38

15% 31% 26% 27%

< 250 Mn >= 250 Mn < 500 Mn >= 500 Mn < 1 Bn >= 1 Bn

4547 4996 4653 3854 4055 3624 3672

9.9 10.4 9.7 8.1 8.0 7.4 7.4

6.0 9.0 12.0 3000 4000 5000 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 > 100 crore % of Advances

(Rs. crore)

Corporate advances > 1 Bn amount to less than 7.5% of total advances

Advances – Composition

Well spread sub-sectorial exposures & diversified industrial exposures

Rs.494 Bn

Breakup of Industrial exposure (Rs.120 Bn)

39 MANUFACTU RING SECTOR 25% JEWEL LOAN 16% PERSONAL SEGMENT LOANS 15% TRADING 15% CRE 6% Agri 3% BILLS 2% NBFC 4% OTHER EXPOSURES 14% INFRASTRUCTUR E 3% POWER 1% TEXTILES 8% IRON & STEEL 2% FOOD PROCESSING 1% CHEMICALS AND CHEMICAL PRODUCTS 1% ALL ENGINEERING 1% CEMENT 1% TRANSPORT SECTOR 1% GEMS & JEWELLERY 1% OTHERS 6%

Advances – Composition

Short term credit (Working Capital) forms major part of credit portfolio Low concentration: Top 20 borrowers (% of overall loans)

40 79% 79% 80% 75% 76% 21% 21% 20% 25% 24% FY 16 FY 17 FY 18 FY 19 Sep 19 Working Capital Loans Term Loans 10% 10% 8% 7% 7% FY 16 FY 17 FY 18 FY 19 Sep 19

Security Coverage

Nature of security 30.09.19

Exposure backed by -

Letter of Credit

284

Liquid Assets ^

9,155

Vehicles

2,740

Commodities

431

Total (1)

12,610

Exposure secured by Immovable Property (% Coverage) > 100%

23,008

90% to <100%

7,353

75% to <90%

1,676

50% to <75%

3,689

<50%

3,351

Total (2)

39,077

Exposure without Immovable property as security Corporate, Consortium, Government, IBPC etc.

2,245

Unsecured Exposure

530

Total (3)

2,775

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

54,462

* Total risk assets including 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.

(Rs. crore)

41

Advances – Composition

Particulars Amount % to Total Advance Growth Over Sep 18 Sep 19 Sep 18 June 19 Sep 19 Sep 18 Amt % Manufacturing 12,006 13,257 12,412 24 28 (1,251) (9) Trading 7,052 8,079 7,560 14 17 (1027) (13) Jewel loan 8,130 7,651 7,890 16 16 479 6 Personal loans @ 7,918 6,466 7,374 16 13 1,452 22 CRE 2,838 2,934 2,754 6 6 (96) (3) Agri (other than Jewel Loan) 1,092 1,519 1,250 2 3 (427) (28) Bills 933 1,416 1,080 2 3 (483) (34) NBFC 1,921 1,760 1,802 4 4 161 9 Capital market 1 71 1

• (70)
• Others*

7,497 4,987 7,059 15 10 2,510

• Total Advances

49,388 48,140 49,182 100 100 1,248 3

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

(Rs. crore)

42

Manufacturing Sector - Industry Wise

Industry Amount % to Total Advance Y-o-Y Growth Sep 19 Sep 18 Sep 19 Sep 18 Amount % Textile 3,786 3,827 7.7 7.9 (41) (1) Infrastructure 2,024 2,604 4.1 5.4 (580) (22) Basic Metal & Metal Products 791 1,129 1.6 2.3 (338) (30) Food Processing 331 885 0.7 1.8 (554) (63) Gems & Jewelry 636 636 1.3 1.3

• All Engineering

475 563 1.0 1.2 (88) (16) Chemical & Chemical Products 460 483 0.9 1.0 (23) (5) Rubber and Plastic Products 574 426 1.2 0.9 148 35 Construction 365 426 0.7 0.9 (61) (14) Wood & Wood Products 471 392 1.0 0.8 79 20 Transport Sector 462 392 0.9 0.8 70 18 Paper & Paper Products 381 285 0.8 0.6 96 34 Cement & Cement products 249 301 0.5 0.6 (52) (17) Other Products 1,001 908 2.0 2.0 93 10 TOTAL 12,006 13,257 24.3 27.5 (1,251) (9)

(Rs. crore)

43 Other industries include : beverages & tobacco, mining & quarrying, petroleum, glass & glassware, leather& leather products, etc .

Infrastructure Advances

Infrastructure Amount O/s % to Total Advance Y-o-Y Growth

Sep 19 Sep 18 Sep 19 Sep 18

Amt % Power 607 653 1.2 1.3 (46) (1) Road 481 419 1.0 0.9 62 13 Infra Others 935 1,532 1.9 3.2 (597) (64) TOTAL 2,024 2,604 4.1 5.4 (580) (22)

Power Sector Exposure Ownership Sep 19 Sep 18 Government 344 391 Private 263 262 TOTAL 607 653

(Rs. crore)

44

Sector-wise Restructured Advances

• S. N.

SECTOR Amount Sep 19 Sep 18

1 Textile 32.04

• 2 Food & Food Processing

20.67

• 3 Wood & Wood Products

19.96

• 4 Transport sector

8.52

• 5 Rubber & Rubber Products

7.95

• 6 Chemical & Chemical Products

7.24

• 7 All Engineering

3.44 2.59 8 Agriculture 3.41 0.92 9 Infrastructure 2.17 40.77 10 Housing Loan 1.07

• 11 Others

57.92 1.43 TOTAL 164.40 45.71 % to Total Advances 0.33 0.09

(Rs. crore)

45 2.01 5.67 89.19 3.13

% to Total Restructured Advances Sep -18

Agri All engineering Infra Others 2.07 19.49 4.84 12.57 4.40 5.18 12.14 2.09 1.32 0.65 35.23

% to Total Restructured Advances Sep -19

Agri Textiles Rubber & its products Food Processing Chemical & its Products Transport sector Wood & its Products All Engineering Infrastructure Housing Loan Others

Stressed Book Analysis

(Rs. crore)

46

Movement of Restructured Advances

Particulars

Apr-19 to Sep - 19 Apr 18 to Sep- 18

A/c’s Amt. A/c’s Amt.

• A. Position at the beginning of

the period 34 72.09 22 262.43

• B. Addition during the period

44 124.86

• C. Additions in existing A/c’s
• 37.76
• D. Addition through

upgradation from NPA 1 0.12

• E. Accounts closed during the

period

• 1.71

5 13.49

• F. Accounts ceasing to attract

higher provision (upgradation)

• G. Recoveries during the

period

• 1.62
• 2.51
• H. Slippages during the period

8 33.11 4 200.72 Position at the end of the period A+B+C+D-(E+F+G+H) 71 164.40 13 45.71 46 5 72 136 164 2052 2296 2420 2322 2118 397 372 324 361 446 3.67 3.95 4.06 3.89 3.72

0.00 2.50 5.00 1000 2000 3000 Sep 18 Dec 18 Mar 19 June 19 Sep 19 Std Restructured Assets Net NPA Net SR % of Total Assets

2495 2673 2819 2728 2816

Portfolio performance

47

Portfolio performance Portfolio Outstanding in %, Base Mar.31, 2017 = 100

Portfolio performance Balance in INR, Base Mar. 31, 2017 = 100

100 84 81 82 82 60 51 65 43 40 37 100 184 161 168 120 106 88 98 45 59 63 100 117 107 110 94 75 63 76 44 46 45

20 40 60 80 100 120 140 160 180 200 31.03.17 30.06.17 30.09.17 31.12.17 31.03.18 30.06.18 30.09.18 31.12.18 31.03.19 30.06.19 30.09.19

SMA-1 SMA-2 SMA 30+

100 82 76 75 74 52 44 57 35 33 31 100 180 151 156 109 92 75 85 37 50 53 100 114 101 102 85 65 54 66 36 39 39

20 40 60 80 100 120 140 160 180 200 31.03.17 30.06.17 30.09.17 31.12.17 31.03.18 30.06.18 30.09.18 31.12.18 31.03.19 30.06.19 30.09.19

SMA-1 SMA-2 SMA 30+

Provision Coverage Ratio

48 54.09 54.07 56.50 56.50 58.50 56.09 56.86 59.05 61.82 32.40 34.89 36.17 39.55 42.89 41.72 44.07 47.02 50.62 Sep 17 Dec 17 Mar 18 June 18 Sep 18 Dec 18 Mar 19 June 19 Sep 19 Provision Coverage Ratio % NPA Provision on Gross NPA %

NPAs & Provisions

(Rs. crore)

49

VERTICAL Advances O/s. Sep 19 Slippages Q2 Upgradation / Deletions* Q2 Gross NPA Sep 19 Accretion rate* (%) Q2 (annld.)

COMMERCIAL 16,118 181 304 1,144 (3) CORPORATE 13,278 239 265 2,823 (1) AGRICULTURE 8,229 48 25 209 1 RETAIL

(Per. Banking)

11,763 32 26 215

• TOTAL

49,388 500 620 4,391 (1)

3707 4056 4450 4511 4391 2052 2296 2420 2322 2118 1590 1692 1961 2121 2223 Sep 18 Dec 18 Mar 19 June 19 Sep 19

Gross NPA Net NPA NPA Provision

4.41 4.99 4.98 4.94 4.50 7.70 8.49 8.79 9.17 8.89

Sep 18 Dec 18 Mar 19 June 19 Sep 19 Net NPA% Gross NPA%

* Inclusive of assets sold during the quarter

Movement of NPA

Particulars Apr 19 – Sep 19 Apr 18 - Sep 18

Gross NPAs Opening Balance

4,450 3,016

Additions during the period

891 975

Reductions during the period

949 284

Closing Balance

4,391 3,707

Net NPAs Opening Balance

2,420 1,863

Additions during the period

126 312

Reductions/write off during the period

428 123

Closing Balance

2118 2,052

Provisions Opening Balance

1,961 1,091

• Provn. made during the period

765 659

Write off/Write back of excess provn.

503 160

Closing Balance

2,223 1,590

(Rs. crore)

50

51

Business Growth

(Rs. thousand crore) 52 39 41 46 51 49 50 54 57 60 62 89 95 103 111 111

40 80 120 40 80 120 FY 16 FY 17 FY 18 FY 19 Sep 19 Advances Deposit Business

39 41 45 49 47 66% 66% 67% 71% 64%

25 50 0% 40% 80% FY 16 FY 17 FY 18 FY 19 Sep 19 Advances Advances as a % of Total Assets

Loans and Advances

12 15 17 18 18 23% 28% 29% 30% 30%

0% 5% 10% 15% 20% 25% 30% 35% 5 10 15 20

FY 16 FY 17 FY 18 FY 19 Sep 19 casa CASA mix 8 10 11 12 12 4 5 6 6 6 FY 16 FY 17 FY 18 FY 19 Sep 19 Savings Demand

Retail Liability Franchise : Granular & Sticky

Low concentration of Deposits  Term deposits are primarily retail deposits  93% of term deposits are < Rs.5 Cr Low dependence on wholesale deposits

53 9% 7% 6% 6% 6%

FY 16 FY 17 FY 18 FY 19 Sep 19

Concentration of Top 20 depositors % 63% 21% 9%

7%

< Rs.15 Lakhs Rs.15 Lakhs-Rs.1 Cr Rs.1 Cr-Rs.5 Cr > Rs.5 Cr 70% 10% 20% Term Deposits Demand Deposits Savings Deposits

Investment Portfolio

Investments (Rs. crore) Portfolio wise Investment Investment Portfolio

Debentures/CD/MF/CP includes SRs of Rs. 397.44 crore (2.13%)

Duration Yield on Investment

54 * AFS Duration Mar 19 was 1.96, Jun 19 was 1.23 ; HTM Duration Mar 19 was 3.89, Jun 19 was 4.05.

AFS* HFT HTM* 1.19 0.20 3.63

6.91% 7.04% 6.85% Sep 18 Mar-19 Sep 19 15780 15137 18670 Sep 18 Mar-19 Sep 19 63.95% 34.73% 1.32%

HTM AFS HFT

78.53% 20.75% 0.72% SLR Debentures/CD/MF/CP Shares

Provisions and Contingencies

Provision for Quarter Half year ended Sep 19 Sep 18 Sep 19 Sep 18 NPA

335

207 653 610 Standard Assets

11

(16) 9 (10) Restructured Advances

2

• 5

(9) SDR, S4A, 5/25 etc.

• (10)

NCLT (specific a/c’s)

• (12)

Others (incl. NPI)

4

11 17 50 Investment Depreciation

13

11 11 17 Total Provisions (excl. Tax) 365 213 695 636 Tax Expense

3

64 45 55 Total Provisions 368 277 740 691

(Rs. crore)

55

Exponential growth in Mobile transactions Market share in RTGS transactions POS Terminals Cash Deposit Machines

Leveraging Technology - Delivery Channels

56 * Annualized

0.99% 1.14% 1.07% 1.04% 1.16% Mar-16 Mar-17 Mar-18 `Mar- 19 Sep-19

Share of RTGS transactions (by volume)

10157 22068 22873 21959 21493

Mar-16 Mar-17 Mar-18 `Mar- 19 Sep-19

POS TERMINALS

108 146 216

FY 18 FY 19 Sep-19 * Mobile Banking (Nos in lakh)

353 444 533 534 542

Mar-16 Mar-17 Mar-18 `Mar- 19 Sep-19

Cash Deposit Machines (Nos.)

Young workforce….. … well qualified … … lower attrition … … leading to improved productivity

Human Resources

57

134 134 130 142 143

FY16 FY 17 FY 18 FY 19 Sep-19 Business per branch (Rs. Crore)

33 33 33 34 35

FY16 FY 17 FY 18 FY 19 Sep-19

PG 54% Graduat e 36% Others 10% 2.7% 2.2% 3.9% 2.7% 1.6%

FY16 FY 17 FY 18 FY 19 Sep-19

12.4 12.85 12.92 14.42 13.88

FY16 FY 17 FY 18 FY 19 Sep-19 Business per employee (Rs. Crore)

7.9 8.2 4.4 2.8 3.39

FY16 FY 17 FY 18 FY 19 Sep-19 Profit per employee (Rs. Lakhs)

58

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 6,205 Owned funds 1,620 2,114 2,708 3,085 3,326 4,246 4,573 4,845 6,211 6,365 CRAR - Basel II (%) 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 16.00 Deposits 19,272 24,722 32,112 38,653 43,758 44,690 50,079 53,700 56,890 59,868 Advances 13,675 18,052 24,205 29,706 34,226 36,691 39,476 41,435 45,973 50,616 Total Business 32,947 42,774 56,317 68,359 77,984 81,381 89,555 95,135 102,863 1,10,484 Total Income 2,005 2,482 3,621 4,695 5,680 5,977 6,150 6,405 6,600 6,779 Operating Profit 463 600 726 849 838 943 1,303 1,571 1,777 1,711 Net Profit 336 416 502 550 430 464 568 606 346 211 Dividend (%) 120 120 140 140 130 130 140 130 30 30 Branches (No.) 335 369 451 551 572 629 667 711 790 778 EPS (Rs.) 62.23 44.90 46.81 51.35 40.08 39.86 46.59 9.95* 4.78 2.64 Return on Assets (%) 1.76 1.71 1.56 1.35 0.86 0.88 1.03 1.00 0.53 0.31 Book Value(Rs.) 297.60 193.04 252.68 287.85 308.91 348.42 375.25 79.51* 85.49 79.56 No of Employees 4,175 4,574 5,673 6,730 7,339 7,197 7,211 7,400 7,956 7,663 * During the Financial Year 2016-17, one Equity Share face value of Rs.10/- each was subdivided into five Equity Shares of face value Rs.2/- each (Rs. crore)

Thank You

59