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

Business Performance

31.12.2018

INVESTOR PRESENTATION FY 2018 -19

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

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

1

15 27

51

4 6

1 1

1 5 1 14 6

419

21

6 1

59 119

7

12

1

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

Category

• No. of Branches

Metro 201 Urban 155 Semi Urban 296 Rural 126 Total 778

Category 31.03.19 31.12.18 31.03.18 Branches 778 782 790 ATM's + Cash Recyclers 2179 2183 2328

5

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

6

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

Digital Transformation of KVB

Working Capital (Renewals) & Home Loans - LIVE Working Capital (Enhancement, Adhoc), Loan Against Property, Personal Loan & Digital Bank - LIVE Working Capital (Fresh) & Auto Loan - LIVE Commercial Credit Card

• LIVE

Mar 18 July18 Aug 18

• Mar. 18

July 18

• Aug. 18
• Jan. 19

SME Term Loan & SRTO - LIVE

• Apr. 19

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

Downloads 9,38,008 Registrations 5,84,957 Downloads 55,510 Registrations 35,989

KVB DLite App – Million downloads!!

06 01 02 03 04 05

CREDIT GROWTH

Gross Advances grew by 10% and stands at Rs. 50,616 crore

CASA

CASA share up at 30% -

• Rs. 17,915 crore out of

Total Deposits

• f

Rs. 59,868 crore

PROFIT

Operating Profit Rs. 1,711 crore; Net Profit

• Rs. 211 crore

NIM

NIM 3.88% for Q4 (3.67% for the year)

BUSINESS

Total business up by 7% to Rs. 1,10,484 crore

CRAR

CRAR at 16.00% & Tier I at 14.28%

Key Upshots …..

2018-19 - year of introduction of new processes to fuel growth by leveraging IT infrastructure and improved business processes

10

11 11

Results Snapshot (EoP)*

Financial Indicators – 31.03.2019 Parameter Amount YoY Growth % Total Deposits 59,868 5 Gross Advances 50,616 10 Total Business 1,10,484 7 Total Income 3,326 4 Operating Profit 1,711 (4) Net Profit 211 (39) Other Business Parameters Gross NPA 4,450 Net NPA 2,420 Gross NPA % 8.79 Net NPA % 4.98 PCR % 56.86 Basel III Capital 6,996 CRAR 16.00 Tier I 14.28 Tier II 1.72 NIM % 3.67 RoA % 0.31

(Rs. crore)

*End of Period

12

(Rs. crore)

Particulars Mar-19 Mar-18

Y-o-Y Growth 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

Business Profile (Averages)

13

(Rs. crore)

Business Profile (EoP)*

Particulars Mar 19 Mar 18 Y-o-Y % 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

14

Particulars Mar 19 Mar 18 Y-o-Y (%) Capital & Liabilities Capital 160 145 10 Reserves and Surplus 6,263 6,119 2 Deposits 59,868 56,890 5 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) Balances with Banks 762 1,349 (44) Investments 14,882 15,803 (6) Advances 48,581 44,800 8 Fixed Assets 583 528 10 Other Assets 1,598 1,501 6 Total 69,340 66,941 4

Balance Sheet

(Rs. crore)

Income v/s Expenses

15

*Includes revenue of non recurring nature

(Rs. crore)

1466 1781 2074 2298* 2363

1250 2500 FY 15 FY 16 FY 17 FY 18 FY 19

Net Interest Income

581 707 782 900 963

500 1000 FY 15 FY 16 FY 17 FY 18 FY 19

Non Interest Income

547 547 608 639 761 556 705 677 782 854

1000 2000 FY 15 FY 16 FY 17 FY 18 FY 19

Operating Expenses

Staff Cost Other Op.Exp

2047 2488 2856 3198 3326

1700 3400 FY 15 FY 16 FY 17 FY 18 FY 19

Total Operating Income

Operating Profit

*Includes revenue of non recurring nature

(Rs. crore)

16

872 1141 1366 1676* 1641 71 94 205 101 70 1000 2000 FY 15 FY 16 FY 17 FY 18 FY 19 Core Operating Profit Trading Profit 943 1235 1571 1777* 1711 1.8 2.2 2.6 2.7 2.5 1.0 2.0 3.0 1000 2000 FY 15 FY 16 FY 17 FY 18 FY 19 Operating Profit Operating Profit Margin% on Avg. Assets

Profit and Loss A/c (Qtr.)

Particulars Q4 FY 18-19 Q4 FY 17-18 YoY (%)

Net Interest Income 618 643 (4) Other Income 273 209 31 Total Income 891 852 5 Operating Expenses 427 372 15 Operating Profit 464 480 (3) Provisions 352 394 (11) Credit Related 292 360 (19) Others 60 34 76 Profit Before Tax 112 86 30 Tax 52 35 49 Net Profit 60 51 18

(Rs. crore)

17

Profit and Loss A/c (Annual)

(Rs. crore)

18

Particulars

FY 18-19 FY 17-18 YoY (%)

Net Interest Income 2,363 2,298 3 Other Income 963 900 7 Total Income 3,326 3,198 4 Operating Expenses 1,615 1,421 14 Operating Profit 1,711 1,777 (4) Provisions 1,388 1,273 9 Credit Related 1,293 1,190 9 Others 95 83 14 Profit Before Tax 322 504 (36) Tax 111 158 (30) Net Profit 211 346 (39)

Other Income Avenues

Particulars QUARTER YEAR ENDED Mar 19 Mar 18

YoY (%)

Mar 19 Mar 18

YoY (%) TOTAL NON-INT. INCOME 273 209 31 963 900 7 1) Fee Income 163 153 7 656 617 6 2) Investment trading profit 57 8

• 70

101

• 3) Forex Income

12 14 (14) 43 44 (2) 4) Others* 41 34 21 194 138 41

*Includes recoveries from Written Off A/c’s – Rs.10 crore (Q4 FY 18-19) & Rs. 7 crore (Q4 FY 17-18) & Rs.70 crore (FY 18-19) & Rs. 44 crore (FY 17-18)

(Rs. crore)

19

Other Income remains healthy…..

Growth in Other Income ~68% of other income comes from fee income

• Steady growth in

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

• 14% share in total operating income

(FY 2018-19)

20

(Rs. crore)

581 707 782* 900 963 10 11 12 14 14 10 20 500 1000 FY 15 FY 16 FY 17 FY 18 FY 19 Other Income Other Income as % of Total Operating Income 69% 66% 62% 69% 68%

12% 13% 26% 11% 7%

7% 7% 5% 5% 4% 12% 14% 7% 15% 20% 0% 50% 100% FY 15 FY 16 FY 17 FY 18 FY 19 Fee Income % Treasury % Forex Gain % Others %

Operating Expenses

Particulars QUARTER YEAR ENDED Mar 19 Mar 18 YoY (%) Mar 19 Mar 18 YoY (%)

Staff Expenses 212 179 18 761 639 19 Of above –

• Prov. for employee

retirement benefits 42 15 138 64 Other Operating Expenses 215 193 12 854 782 9 TOTAL OPG. EXPENSES 427 372 15 1,615 1,421 14

(Rs. crore)

21

Key Ratios (Quarterly)

^ NIM for March 2018 includes revenue of non recurring nature

22

4.13% 3.65% 3.57% 3.60% 3.88% 3.00% 3.50% 4.00% 4.50% Mar 18 June 18 Sep 18 Dec 18 Mar 19

NIM^

43.73% 45.18% 52.12% 49.45% 47.88% 40.00% 50.00% 60.00% Mar 18 June 18 Sep 18 Dec 18 Mar 19

Cost to Income

0.30% 0.27% 0.49% 0.12% 0.35% 0.00% 0.50% 1.00% Mar 18 June 18 Sep 18 Dec 18 Mar 19

ROA

3.23% 2.93% 5.28% 1.33% 3.74% 0.00% 5.00% 10.00% Mar 18 June 18 Sep 18 Dec 18 Mar 19

ROE

Key Ratios (Annual)

23

^ NIM for March 2018 includes revenue of non recurring nature 3.43% 3.70% 3.86% 3.67% 3.00% 3.50% 4.00% 4.50% Mar 16 Mar 17 Mar 18 Mar 19

NIM^

47.63% 44.99% 44.43% 48.56% 40.00% 50.00% 60.00% Mar 16 Mar 17 Mar 18 Mar 19

Cost to Income

1.03% 1.00% 0.53% 0.31% 0.00% 0.50% 1.00% 1.50% Mar 16 Mar 17 Mar 18 Mar 19

ROA

12.41% 12.03% 5.52% 3.28% 0.00% 5.00% 10.00% 15.00% Mar 16 Mar 17 Mar 18 Mar 19

ROE

Key Ratios (Qtr.)

Particulars Q3 FY 18-19 Q4 FY 18-19 Q4 FY 17-18 Cost of Deposits 5.80 5.80 5.78 Yield on Advances 9.59 9.81 9.89 Cost of Funds 5.82 5.82 5.70 Yield on Funds 8.62 8.90 9.14 NIM 3.60 3.88 4.13 Spread 2.80 3.08 3.44

24

4.11% 4.06% 3.94% 3.79% 4.01% 4.13% 3.65% 3.57% 3.60% 3.88% 3.44% 2.90% 2.79% 2.80% 3.08% 2.70% 3.50% 4.30% Mar 18 Jun-18 Sep 18 Dec 18 Mar 19 Spread(Deposits and Advances) NIM Spread on Funds

Key Ratios (Annual)

Particulars FY 18-19 FY 17-18 Cost of Deposits 5.80 5.99 Yield on Advances 9.75 10.30 Cost of Funds 5.82 5.91 Yield on Funds 8.71 9.13 NIM 3.67 3.86 Spread 2.89 3.22

25

4.18 4.26 4.74 4.31 3.95 2.91 3.43 3.70 3.86 3.67 2.27 2.71 3.10 3.22 2.89 2.25 3.50 4.75 Mar 15 Mar 16 Mar 17 Mar 18 Mar 19 Spread(Deposits and Advances)% NIM% Spread on Funds%

Retail Liability Franchise : Granular & Sticky

Low concentration of Deposits

 Term deposits are primarily retail deposits  93% of term deposits are below Rs. 5 crore

Low dependence on wholesale deposits

26

70% 10% 20% Term Deposits Demand Deposits Savings Deposits

9% 9% 7% 6% 6%

0% 5% 10% 15% FY 15 FY 16 FY 17 FY 18 FY 19

Concentration of Top 20 depositors %

64% 21% 8% 7% < Rs.15 Lakhs Rs.15 Lakhs-Rs.1 Cr Rs.1 Cr-Rs.5 Cr > Rs.5 Cr 22% 23% 28% 29% 30% 20% 25% 30% FY 15 FY 16 FY 17 FY 18 FY 19

CASA Mix

Investment Portfolio

Investments (Rs. crore) Portfolio wise Investment Investment Portfolio

Debentures/CD/MF/CP includes SRs of Rs.422.72 crore (2.79%)

Duration Yield on Investment

27 AFS HFT HTM 1.96 0.06 3.89

15992 15137 Mar 18 Mar 19 81.25% 17.77% 0.98% SLR Debentures/CD/ MF/CP Shares 7.00% 7.04% Mar 18 Mar 19 69.75% 29.44% 0.81% HTM AFS HFT

* AFS Duration Dec 18 was 1.82, Sep 18 was 2.63 ; HTM Duration Dec 18 was 4.05, Sep 18 was 4.27

Advances – Business Verticals

Advances by value terms Advances - Portfolio wise Banking Groups ABG – Agri CBG – Commercial CIG – Corporate PBG – Personal

28

(Rs. crore)

17% 18% 17% 17% 16% 32% 32% 35% 35% 34% 37% 35% 33% 31% 28% 14% 15% 15% 17% 22% FY15 FY16 FY17 FY18 FY19 ABG CBG CIG PBG 6240 7032 6979 7861 8,113 11774 12763 14504 16095 17,056 13402 13763 13612 14397 14,169 5275 5918 6340 7620 11,278 FY15 FY16 FY17 FY18 FY19 ABG CBG CIG PBG

Advances Portfolio

Particulars Mar 19 Mar 18 Y-o-Y Growth % Gross Advances 50,616 45,973 10 Commercial 17,056 16,095 6 Corporate 14,169 14,397 (2) Retail (Personal Banking)* 11,278 7,620 48 Agriculture 8,113 7,861 3 Jewel Loans

(incl. in above)

7,780 7,092 10

Segment wise advances

29

(Rs. crore)

35% 31% 17% 17%

Mar 18

Commercial Corporate Retail Agriculture 34% 28% 22% 16%

Mar 19

*Includes IBPC of Rs.2,050 Cr and Rs.200 Cr for Mar. 19 and Mar. 18 respectively. Growth excl IBPC is 24%

Retail Portfolio

Segment Advances outstanding as at

Mar-19 Mar-18 Mar-17 Mar-16 Mar-15 Housing 3,619 2,795 2,330 2,094 1,757 Mortgage (LAP) 1,712 1,393 965 787 568 Vehicle 1,044 1,017 921 831 782 Jewel Loans 625 578 596 703 793 Personal Loans 424 296 316 354 356 Education Loans 235 261 266 245 207 Others* 3,620 1,280 946 904 779 Total 11,278 7,620 6,340 5,918 5,242

*Includes IBPC of Rs.2050 Cr and Rs.200 Cr for Mar 19 and Mar,18 respectively. (Rs. crore)

30

Security Coverage

Nature of security 31.03.19

Exposure backed by -

Letter of Credit

543

Liquid Assets ^

8,746

Vehicles

2,996

Commodities

700

Total (1)

12,985

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

23,440

90% to <100%

7,341

75% to <90%

1,956

50% to <75%

3,169

<50%

3,100

Total (2)

39,006

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

2,205

Unsecured Exposure

508

Total (3)

2,713

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

54,704

* 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. (Rs. crore)

31

Granular Loan Book

Commercial book

• Average ticket size of Rs. 4 Mn
• 80% of commercial loans are less than Rs.

50 Mn

Corporate book

• Average ticket size of Rs. 347 Mn
• 72 % of corporate loans are less than Rs.1 Bn
• SMA 1 & 2 in corporate credit is ~0.61% of the book
• Commercial Loans : Exposures upto Rs. 250 Mn
• Corporate Loans : Exposures above Rs. 250 Mn

32

80% 12% 7% 1% < 50 Mn >= 50 Mn < 100 Mn >= 100 Mn < 250 Mn >= 250 Mn

18% 27% 27% 28% < 250 Mn >= 250 Mn < 500 Mn >= 500 Mn < 1 Bn >= 1 Bn

Advances – Composition

Well spread sub-sectorial exposures & diversified industrial exposures

Rs.506 Bn

Breakup of Industrial exposure (Rs. 132 Bn)

Working capital focus enables quicker repricing of loans Low concentration: Top 20 borrowers (% of overall loans) 33

MANUFACTURIN G SECTOR, 26% JEWEL LOAN, 15% PERSONAL SEGMENT LOANS, 14% TRADING, 16% CRE, 6% Agri, 3% BILLS, 3% NBFC, 3% OTHER EXPOSURES, 15% INFRASTRUC TURE, 3% POWER, 1% TEXTILES, 8% IRON & STEEL, 2% FOOD PROCESSING , 2% CHEMICALS AND CHEMICAL PRODUCTS, 1% ALL ENGINEERIN G, 1% TRANSPORT SECTOR, 1% GEMS & JEWELLERY, 1% OTHERS, 6% 83% 79% 79% 80% 75% 17% 21% 21% 20% 25% 0% 50% 100% FY15 FY16 FY17 FY18 FY 19 Working Capital Loans Term Loans

11% 10% 10% 8% 7%

FY15 FY16 FY17 FY18 FY 19

Advances – Sector Details

Particulars Amount % to Total Advance Growth

• ver Mar-18

Mar-19 Mar-18 Mar-19 Mar 18 Amt % Manufacturing 13,162 13,626 26 30 (464) (3) Trading 7,979 7,851 16 17 128 1 Jewel loan 7,781 7,092 15 15 689 10 Personal loans @ 6,942 5,990 14 13 952 16 CRE 2,832 2,761 6 6 71 3 Agri (other than Jewel Loan) 1,293 1,613 3 4 (320) (20) Bills 1,427 1,542 3 3 (115) (7) NBFC 1,669 1,295 3 3 374 28 Capital market 1 71

• (70)
• Others*

7,530 4,132 15 9 3,398 82 Total Advances 50,616 45,973 100 100 4,643 10

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

(Rs. crore)

34

Manufacturing Sector - Industry Wise

Industry Amount % to Total Advance Y-o-Y Growth Mar-19 Mar-18 Mar-19 Mar-18 Amount % TEXTILES 4,275 4,154 8.4 9.0 121 2.9 INFRASTRUCTURE 1,966 2,787 3.9 6.1 (821) (29.5) BASIC METAL & METAL PRODUCTS 837 1,324 1.7 2.9 (487) (36.8) FOOD PROCESSING 864 749 1.7 1.6 115 15.4 GEMS & JEWELLERY 629 501 1.2 1.1 128 25.5 ALL ENGINEERING 520 625 1.0 1.4 (105) (16.8) CHEMICALS & CHEMICAL PRODUCTS 506 513 1.0 1.1 (7) (1.4) RUBBER & PLASTIC PRODUCTS 571 361 1.1 0.8 210 58.2 CONSTRUCTION 459 471 0.9 1.0 (12) (2.5) WOOD & WOOD PRODUCTS 477 304 0.9 0.7 173 56.9 TRANSPORT SECTOR 438 400 0.9 0.9 38 9.5 PAPER & PAPER PRODUCTS 351 251 0.7 0.5 100 39.8 CEMENT & CEMENT PRODUCTS 246 292 0.5 0.6 (46) (15.8) BEVERAGES & TOBACCO 191 180 0.4 0.4 11 6.1 MINING & QUARRYING 269 187 0.5 0.4 82 43.9 PETROLEUM 46 30 0.1 0.1 16 53.3 GLASS & GLASSWARE 36 58 0.1 0.1 (22) (37.9) LEATHER & LEATHER PRODUCTS 45 61 0.1 0.1 (16) (26.2) OTHER INDUSTRIES 436 379 0.9 0.8 57 15.0 TOTAL 13,162 13,626 26.1 29.6 (464)

(3.4)

(Rs. crore)

35

Infrastructure Advances

Infrastructure Amount O/s % to Total Advance Y-o-Y Growth Mar 19 Mar 18 Mar 19 Mar 18 Amt % Power 645 517 1.3 1.1 128 25 Road 379 483 0.8 1.1 (104) (22) Infra Others 942 1,787 1.9 3.9 (845) (47) TOTAL 1,966 2,787 3.9 6.1 (823) (29)

Power Sector Exposure Ownership Mar 19 Mar 18 Government 365 227 Private 280 290 TOTAL 645 517

(Rs. crore)

36

Sector-wise Restructured Advances

• S. N.

SECTOR AMOUNT Mar 19 Mar 18

1 INFRASTRUCTURE

• 200.59

2 TEXTILES 11.13 42.59 3 AGRICULTURE 1.04 7.07 4 EDUCATIONAL LOANS

• 0.08

5 AUTO LOANS 0.10

• 6

FOOD PROCESSING 5.43

• 7

HOUSING LOAN 0.34

• 8

IRON & STEEL 0.94

• 9

OTHERS 53.12 12.10 TOTAL 72.09 262.43 % to Total Advances 0.14 0.57

(Rs. crore)

37

2.69 76.44 16.23 0.03 4.61

% to Total Restructured Advances Mar-18

Agri Infra Textiles Educational Loans Others 1.44 15.44 0.14 0.47 1.29 7.53 73.69

% to Total Restructured Advances Mar-19

Agri Textiles Auto Loans Housing loan Iron and steel Food Processing Others

Portfolio performance

38

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

100 84 81 82 82 60 51 65 43 100 184 161 168 120 106 88 98 45 100 117 107 110 94 75 63 76 44 50 100 150 200 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 SMA-1 SMA-2 SMA30+ 100 82 76 75 74 52 44 57 35 100 180 151 156 109 92 75 85 37 100 114 101 102 85 65 54 66 36 50 100 150 200 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 SMA1 SMA2 SMA 30+

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

Portfolio performance improving steadily

Stressed Book Analysis

(Rs. crore)

39

Category 31.03.19 31.03.18 5/25 75 76 S4A Accounts

• 79

Position under various dispensation packages Movement of Restructured Advances

262 52 46 5 72 1863 2088 2052 2296 2420 406 399 397 372 324 3.78 3.72 3.67 3.95 4.06 0.10 1.10 2.10 3.10 4.10 1000 2000 3000 Mar 18 June 18 Sep 18 Dec 18 Mar 19 Std Restructured Assets Net NPA Net SR % of Total Assets

2531 2539 2495 2673 2816

Particulars

Apr-18 to Mar- 19 Jan 19 to Mar- 19

A/c’s Amt. A/c’s Amt.

• A. Position at the beginning
• f the period

22 262.43 10 5.18

• B. Addition during the period

29 68.03 29 68.03

• C. Additions in existing A/c’s
• 0.61
• 0.52
• D. Addition through

upgradation from NPA

• E. Accounts closed during the

period 8 56.63

• F. Accounts ceasing to attract

higher provision (upgradation) 5 1.74 5 1.64

• G. Recoveries during the

period

• H. Slippages during the

period 4 200.60

• Position at the end of the

period A+B+C+D-(E+F+G+H) 34 72.09 34 72.09

NPAs & Provisions

(Rs. crore)

40 3016 3563 3707 4056 4450 1863 2088 2052 2296 2420 1091 1409 1590 1692 1961 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19

Gross NPA Net NPA NPA Provision

56.50 56.50 58.50 56.09 56.86 36.17 39.55 42.89 41.72 44.07 Mar 18 June 18 Sep 18 Dec-18 Mar 19 Provision Coverage Ratio % NPA Provision on Gross NPA %

VERTICAL Advances O/s.

• Mar. 19

Net NPA Addition Q4 Total NPA

• Mar. 19

Accretion rate (%) Q4 (annld.)

COMM. 17,056 112 1,074 2.63 CORP. 14,169 287 3,063 8.10 AGRI. 8,113 6 145 0.30 RETAIL

(Per. Banking) 11,278

(11) 168 (0.39) TOTAL 50,616 394 4,450 3.11

4.16 4.5 4.41 4.99 4.98 6.56 7.44 7.7 8.49 8.79 Mar-18 Jun-18 Sep-18 Dec-18 Mar 19 Net NPA% Gross NPA%

Movement of NPA

Particulars Apr 18 - Mar19 Apr 17 - Mar 18

Gross NPAs Opening Balance 3,016 1,484 Additions during the period 2,343 2,092 Reductions during the period 909 560 Closing Balance 4,450 3,016 Net NPAs Opening Balance 1,863 1,033 Additions during the period 931 1,103 Reductions/write off during the period 372 273 Closing Balance 2,420 1,863 Provisions Opening Balance 1,091 429

• Provn. made during the period

1,406 1,024 Write off/Write back of excess provn. 536 362 Closing Balance 1,961 1,091

(Rs. crore)

41

Provisions and Contingencies

Provision for Year ended Quarter ended Mar 19 Mar 18 Mar 19 Mar 18

NPA 1,318 1,025 276 414 Standard Assets (3) (2) 5 (10) Restructured Advances (8) (11) 3 (8) Loss on sale to ARC

• 185
• SDR, S4A, 5/25 etc.

(10) (2)

• (26)

NCLT (specific a/c’s) (12) 13

• 7

Others (incl. NPI) 86 3 25 (3) Investment Depreciation 17 63 42 20 Total Provisions (excl. Tax) 1,388 1,274 352 394 Tax Expense 111 158 52 35 Total Provisions 1,499 1,432 404 429

(Rs. crore)

42

Capital Adequacy – Basel III

Entire Tier I comprises

• f CET1 capital, well

above the min. requirement of 7.375%

Nature Capital as at

Mar-19 Mar-18 Mar-17 Mar-16 Tier I 6,245 6,145 4,790 4,064 Tier II 752 226 278 330 Total 6,996 6,371 5,068 4,394

43

(Rs. crore)

11.26% 11.85% 13.92% 14.28% 0.91% 0.69% 0.51% 1.72% 12.17% 12.54% 14.43% 16.00% 0.50% 4.50% 8.50% 12.50% 16.50% Mar 16 Mar 17 Mar 18 Mar 19 Tier I Tier II Total

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

Leveraging Technology - Delivery Channels

44

0.94% 0.99% 1.14% 1.07% 1.04%

FY15 FY16 FY17 FY18 FY19

Share of RTGS transactions (by volume) 9234 10157 22068 22873 21959 FY15 FY16 FY 17 FY 18 FY 19

POS TERMINALS

40 168 722 938 1738 FY15 FY16 FY17 FY 18 FY 19

Mobile Banking (Nos in '000)

338 353 444 533 534 FY15 FY16 FY 17 FY 18 FY 19

Cash Deposit Machines (Nos.)

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

Human Resources

45

33 33 33 33 34 FY15 FY16 FY17 FY18 FY19 PG 54% Graduat e 35% Others 11%

4.5% 2.7% 2.2% 3.9% 2.7%

FY15 FY16 FY17 FY18 FY19 129 134 134 130 142 FY15 FY16 FY17 FY18 FY19 Business per branch (Rs. Crore) 11.2 12.4 12.85 12.92 14.42 FY15 FY16 FY17 FY18 FY19 Business per employee (Rs. Crore) 6.5 7.9 8.2 4.4 2.8 FY15 FY16 FY17 FY18 FY19 Profit per employee (Rs. Lakhs)

Blending Tradition with Modernity

47

A Decade of Progress

47

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 6,236 Owned funds 1,620 2,114 2,708 3,085 3,326 4,246 4,573 4,845 6,211 6,423 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 44.9 46.81 51.35 40.08 39.86 46.59 9.95* 4.98 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.) 297.6 193.04 252.68 287.85 308.91 348.42 375.25 79.51* 85.49 80.29 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)

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