INVESTOR PRESENTATION FY 2018 -19 Business Performance 31.12.2018
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. 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 or events that arise after the date the forward-looking statement was made. 2
The Bank of choice - trusted by all Over Over Over 7 million 450000 700000 individuals businesses agri customers
KVB – a unique franchise! Bank of Choice, trusted by : Over 7 million individuals Over 450000 businesses Over 700000 customers involved in agriculture 1 6 1 Unmatched presence in India’s fast growing hinterland 12 6 1 Category No. of Branches 6 1 Metro 201 4 1 14 15 Urban 155 1 5 Semi Urban 296 27 59 Rural 126 51 1 Total 778 119 7 419 21 Category 31.03.19 31.12.18 31.03.18 Metro Rural Branches 778 782 790 26% 16% ATM's + Cash 2179 2183 2328 Recyclers Urban Semi 20% Urban 38% 4
Blending Tradition with Modernity • New Digital Systems live and fully embedded Capable of managing substantial volumes (Retail Digital Platform handled ~110,000 applications) • New Business Banking Unit established to originate and manage small business credit requirements Underwriting process centralized with specialist team • Non-branch distribution channel hiring substantially complete Operations and scaling to begin shortly • Risk framework continues to be strengthened ‘ Through the Door’ quality improvements leading to better performance of newer cohorts • Dlite Banking Application set to cross 1 million downloads 23% increase in registered users in the quarter (621,000 registered users) • Commercial cards issued to ~1000 Commercial Establishments Usage, activation and payment patterns encouraging 5
Blending Tradition with Modernity • Risk based pricing fully implemented in Retail / Commercial products NIM improves by 28 bps during Q4 sequentially Weighted Average Yield on new loan (Retail / Commercial) up by 1.43% & 0.91% YoY • Co-origination of loans through API platform enabled • Talent acquisition continuing Lateral hiring across various domains picking up speed • Branch Operational centralization progressing well • Collection processes stabilized leading to improved portfolio statistics Additional collections infrastructure being created in Chennai • Third Party Products Continue to Grow well Life Insurance Premium YTD growth - 34% over FY 17 18 Mutual Fund revenue YTD growth - 159% over FY 17 18 6
Digital Transformation of KVB Apr. 19 SME Term Loan & Jan. 19 SRTO - LIVE Aug. 18 Commercial July 18 Credit Card Working Capital Working Capital - LIVE (Fresh) & Auto (Enhancement, Mar. 18 Loan - LIVE Adhoc), Loan Against Working Capital Property, Personal (Renewals) & Loan & Digital Bank - Home Loans - LIVE LIVE Aug 18 July18 Mar 18
KVB DLite App • Instant account opening • Fund transfer • Cheque Management • Locker Management • Demat Accounts • Savings Accounts • Bill Pay • Mobile recharge • FASTag • Bharat QR • UPI • E-ASBA • Insurance
KVB DLite App – Million downloads!! Downloads Registrations 9,38,008 5,84,957 Downloads Registrations 55,510 35,989
Key Upshots ….. CRAR BUSINESS CRAR at 16.00% & Total business up by 7% Tier I at 14.28% to Rs. 1,10,484 crore 06 01 PROFIT CREDIT GROWTH Operating Profit Rs. Gross Advances grew by 05 02 1,711 crore; Net Profit 10% and stands at Rs. Rs. 211 crore 50,616 crore NIM CASA 04 03 NIM 3.88% for Q4 (3.67% CASA share up at 30% - for the year ) Rs. 17,915 crore out of Total Deposits of Rs. 59,868 crore 2018-19 - year of introduction of new processes to fuel growth by leveraging IT infrastructure and improved business processes 10
(Rs. crore) Results Snapshot (EoP)* Financial Indicators – 31.03.2019 Other Business Parameters YoY Growth Gross NPA 4,450 Parameter Amount % Net NPA 2,420 Total Gross NPA % 8.79 59,868 5 Deposits Net NPA % 4.98 Gross PCR % 56.86 50,616 10 Advances Total 1,10,484 7 Basel III Capital 6,996 Business CRAR 16.00 Tier I 14.28 Total Income 3,326 4 Tier II 1.72 Operating 1,711 (4) Profit NIM % 3.67 Net Profit 211 (39) RoA % 0.31 *End of Period 11 11
Business Profile (Averages) (Rs. crore) Y-o-Y Growth Particulars Mar-19 Mar-18 Amount % Avg. Deposits 57,618 55,239 2,379 4 Avg. Demand Deposit 5,465 5,134 331 6 % to Total 9 9 Avg. Savings Deposit 11,274 10,086 1,188 12 % to Total 20 19 Avg. Time Deposit 40,880 40,019 861 2 % to Total 71 72 CASA 16,739 15,220 1,519 10 % to average deposit 29 28 Avg. Advances 47,161 42,982 4,179 10 Avg. CD Ratio (%) 81.85 77.81 12
Business Profile (EoP)* (Rs. crore) Y-o-Y Particulars Mar 19 Mar 18 % Total Deposits 59,868 56,890 5 Demand 5,814 5,576 4 Savings 12,101 11,001 10 CASA 17,915 16,577 8 Term Deposits 41,953 40,313 4 CASA % 30 29 Gross Advances 50,616 45,973 10 Net Advances 48,581 44,800 8 Total Business 1,10,484 1,02,863 7 *End of Period 13
Balance Sheet (Rs. crore) Particulars Mar 19 Mar 18 Y-o-Y (%) Capital & Liabilities 10 Capital 160 145 2 Reserves and Surplus 6,263 6,119 5 Deposits 59,868 56,890 Borrowings 1,565 2,394 (35) Other Liabilities and Provisions 1,484 1,393 7 Total 69,340 66,941 4 Assets Cash and Balances with RBI 2,935 2,960 (1) (44) Balances with Banks 762 1,349 (6) Investments 14,882 15,803 Advances 48,581 44,800 8 Fixed Assets 583 528 10 Other Assets 1,598 1,501 6 4 Total 69,340 66,941 14
(Rs. crore) Income v/s Expenses Net Interest Income Non Interest Income 2500 1000 2363 2298* 963 2074 900 1781 782 707 1250 1466 500 581 0 0 FY 15 FY 16 FY 17 FY 18 FY 19 FY 15 FY 16 FY 17 FY 18 FY 19 Total Operating Income Operating Expenses 3400 2000 3326 3198 2856 854 2488 782 677 705 2047 1000 1700 556 761 639 608 547 547 0 0 FY 15 FY 16 FY 17 FY 18 FY 19 FY 15 FY 16 FY 17 FY 18 FY 19 Staff Cost Other Op.Exp *Includes revenue of non recurring nature 15
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