Investor Presentation 30.06.2018 DISCLAIMER This presentation has - - PowerPoint PPT Presentation

Investor Presentation 30.06.2018

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. 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.

2

3

Performance Highlights Q1 FY 2018-19

OPERATING PROFIT

• Rs. 460 cr.

CASA

• Rs. 17,244 cr.

8% ADVANCES Rs.47,886 cr. 13%

BUSINESS

Rs.1,05,440 cr. 9% NIM 3.65% CRAR 14.08%

KVB – an 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

CATEGORY No of Branches Metro 205 Urban 161 Semi Urban 298 Rural 126 Total 790 Customer service excellence the differentiator

3

16 28

52

4 6

1 1

1 5 2

16

6

420

21

7 1

59 119

7

14

1

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

Category 30.06.18 31.03.18 31.03.17 Branches 790 790 711 ATM's + Cash Recyclers 2337 2328 2191 4

Performance Highlights Q1 FY 18-19 (Y-o-Y)

§ Total Business stands at Rs.1,05,440 crore (up from Rs. 97,069 crore as on 30.06.2017) registering a growth of 9% § Robust credit growth of 13% (Rs. 5,485 crore); Gross Advances as on 30.06.2018 : Rs. 47,886 crore § CASA share up at 30% with 8% Y-o-Y growth § Savings deposits growth at 13% § Total deposits grow by 5% Y-o-Y § Operating Profit stands at Rs. 460 crore § Net Interest Income up by Rs. 45 crore (8% rise) § NIM stands at 3.65% § Other Income increases by Rs. 19 crore (8% rise) § CRAR stands at 14.08%

5

Blending Tradition with Modernity

• Progress being made as per plan

– Digital System rollout as envisioned , no significant delay in new technology rollout.

• Digital transformation milestones achieved and progressing well

– Home loan, working capital loan renewal, Mortgage (LAP) & Unsecured Personal loan live – Fully paperless solution available in assisted & self service modes

• Good adoption of new digital tools

– >300 applications daily. – Aim to raise this to 2 application / branch / day

• 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 – Expected to go live in Jan 2019.

• Dedicated Asset Sales Force created to facilitate retail asset growth

– Driving branch adoption of new technologies / products

• Third Party Product Sales Force established

– To facilitate sale of Insurance/Investment & other ancillary products – Business Growth  Life Insurance Premium Growth

• 116% over Q1, FY17-18

 Non Life Insurance Premium Growth

• 41% over Q1, FY17-18

 Mutual Fund Revenue Growth

• 125% over Q1, FY17-18

– Health insurance distribution agreements signed with Aditya Birla Health Insurance Ltd & Max Bupa Health Insurance Ltd.

6

Blending Tradition with Modernity

• Branch Productivity measurement system live

– Enables target setting & monitoring of all branch staff – Product agnostic branch sales target set

• New Branch / individual sales incentive scheme live.
• Centralized Collection Infrastructure established

– Live since January 2018 – Retail Credit products covered, Commercial products coverage to start in Q3

• New Commercial Collection System live

– Wide spread adoption at branch level – Enables systematic collections while maintaining Branch Relationship.

• New Recovery Management system scheduled to go live by end July 2018.
• Analytics – Centre of Excellence

– Being established (Q3, 2018)

7

Digital Transformation

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

Working Capital (Renewal)

• Mar. 2018

Home Loans

• Mar. 2018

Loan Against Property

• Jul. 2018

Personal Loan

• Jul. 2018

Auto Loans

Originally Schedule Aug.2018

Re-Scheduled* to Sep. 18

Commercial Credit Card

Scheduled* Q3, FY18-19

Digital Bank

• Jul. 18

Working Capital (Fresh)

Scheduled*

• Aug. 18

Term Loans Scheduled*

• Dec. 2018

Working Capital - Enhancement / Adhoc Jul . 18

8

The New Operational Paradigm – A Work in Progress

Hyper Local branches with empowered Managers to meet customer needs immediately

9

Particulars June 18 June 17 Y-o-Y (%) Capital & Liabilities Capital 145 122 19 Reserves and Surplus 6,165 5,125 20 Deposits 57,554 54,668 5 Borrowings 3,075 1,180 161 Other Liabilities and Provisions 1,337 1,433 (7) Total 68,276 62,528 9 Assets Cash and Balances with RBI 3,002 3,107 (3) Balances with Banks 838 734 14 Investments 16,108 15,191 6 Advances 46,406 41,698 11 Fixed Assets 550 426 29 Other Assets 1,372 1,372 Total 68,276 62,528 9 Business (Gross Advances + Deposits) 1,05,440 97,069 9

Balance Sheet

(Rs. in crore)

10

Income v/s Expenses

11

8% YOY

(Rs. in crore)

236 230 225 209 255

50 100 150 200 250 300

June 17 Sep 17 Dec 17 Mar 18 June 18

Non Interest Income

8% YOY 539 555 562 643* 584

100 200 300 400 500 600 700

June 17 Sep 17 Dec 17 Mar 18 June 18

Net Interest Income

775 785 787 852* 839

200 400 600 800 1000

June 17 Sep 17 Dec 17 Mar 18 June 18

Total Operating Income

8% YOY 151 155 153 179 179 175 203 212 193 200

100 200 300 400

June 17 Sep 17 Dec 17 Mar 18 June 18

Operating Expenses

Staff Cost Other Op.Exp

* Includes revenue of non recurring nature

Operating Profit

(Rs. in crore)

12

402 408 395 472* 453 47 20 26 8 7

250 375 500

June 17 Sep 17 Dec 17 Mar 18 June 18 Core Operating Profit Trading Profit * Includes revenue of non recurring nature 449 428 421 480* 460 2.9 2.7 2.6 2.9 2.7

1.00 1.50 2.00 2.50 3.00 200 250 300 350 400 450 500

June 17 Sep 17 Dec 17 Mar 18 June 18 Operating Profit Operating Profit Margin% on Avg. Assets (Annualized)

Profit and Loss A/c

(Rs. in crore)

Particulars Q1 FY 18-19 Q1 FY 17-18 YoY (%)

Net Interest Income 584 539 8 Other Income 255 236 8 Total Income 839 775 8 Operating Expenses 379 326 16 Operating Profit 460 449 2 Provisions 423 233 81 Credit Related 378 229 65 Others 45 4

• Profit Before Tax

37 216 (83) Tax (9) 68

• Net Profit

46 148 (69)

13

Break Up of Other Income

(Rs. in crore)

Particulars Q1 FY 18-19 Q1 FY 17-18 YoY (%)

TOTAL NON INTEREST INCOME 255 236 8

1) Fee Income

191 170 13

2) Investment trading profit

7 47 (85)

3)Forex Income

13 11 21

4)Others*

44 8

*Includes recoveries from Written Off A/c’s - Rs. 22 crore (Q1 FY 18-19) & Rs. 4 crore (Q1 FY 17-18)

14

Healthy Other Income Profile

Growth in Other Income Fee income consistently contributes > 65% of other income

• Non interest income accrues from diverse sources – fee based, digital

products, bancassurance etc. and has shown steady growth

• 30% share in total operating income (Q1 2018-19)

(Rs. in crore)

15

68% 65% 68% 73% 69% 20% 9% 12% 4% 3% 5% 5% 4% 7% 5% 7% 21% 16% 16% 23% 0% 20% 40% 60% 80% 100%

June 17 Sep 17 Dec 17 Mar 18 June 18

Fee Income % Treasury % Forex Gain % Others %

236 230 225 209 255 30 29 29 25 30

10 15 20 25 30 35 50 100 150 200 250 300

June 17 Sep 17 Dec 17 Mar 18 June 18

Other Income Other Income as % of Total Operating Income

Key Ratios

16

42.00% 45.61% 46.45% 43.73% 45.18% 25.00% 35.00% 45.00% 55.00% June 17 Sep 17 Dec 17 Mar 18 June 18

Cost to Income %

3.76% 3.81% 3.71% 4.13% 3.65% 3.00% 3.50% 4.00% 4.50% June 17 Sep 17 Dec 17 Mar 18 June 18

NIM

^

0.95% 0.48% 0.43% 0.30% 0.27% 0.00% 0.50% 1.00% June 17 Sep 17 Dec 17 Mar 18 June 18

ROA

11.71% 5.76% 4.60% 3.23% 2.93% 1.00% 9.00% 17.00% June 17 Sep 17 Dec 17 Mar 18 June 18

ROE

^ NIM for March 2018 includes revenue of non recurring nature

Key Ratios

Particulars

Q1 FY 18-19 Q1 FY 17-18

Cost of Deposits 5.79% 6.15% Yield on Advances 9.85% 10.58% Cost of Funds 5.80% 6.06% Yield on Funds 8.70% 9.22% NIM 3.65% 3.76% Spread 2.90% 3.16% Cost to Income Ratio 45.18% 42.00% Business/Emp. (Rs. Crore) 13.46 12.61 Profit/Emp. (Rs. Lakh) 2.34 7.69

17

4.43% 4.43% 4.23% 4.11% 4.06% 3.76% 3.81% 3.71% 4.13% 3.65% 3.16% 3.19% 3.07% 3.44% 2.90% 2.70% 3.70% 4.70% June 17 Sep 17 Dec 17 Mar 18 Jun-18 Spread(Deposits and Advances) NIM Spread on Funds

Advances v/s Deposits

18

45 50 54 57 58

20 40 60 FY 15 FY 16 FY 17 FY 18 Jun-18

Customer Deposits

6 8 10 11 11 4 4 5 6 6

5 10 15 20 FY 15 FY 16 FY 17 FY 18 Jun-18

CASA

Savings Demand

(Rs. in Thousand Cr)

36 39 41 45 46 68% 66% 66% 67% 68%

10 20 30 40 50 60% 62% 64% 66% 68% 70% FY 15 FY 16 FY 17 FY 18 Jun-18

Advances Advances as a % of Total Assets

Loans and Advances

22% 23% 28% 29% 30%

20% 25% 30%

FY 15 FY 16 FY 17 FY 18 Jun-18

CASA Mix %

Retail Liability Franchise-Granular and Sticky

Low dependence on wholesale deposits Low concentration of Deposits Break Up of Deposits – June 18 Term deposits are primarily retail deposits. 93% of term deposits are < Rs.5 Cr

19

9% 9% 7% 6% 6%

0% 5% 10% 15% FY 15 FY 16 FY 17 FY 18 Jun-18

Concentration of Top 20 depositors %

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

63% 23% 7% 7% < Rs.15 Lakhs Rs.15 Lakhs-Rs.1 Cr Rs.1 Cr-Rs.5 Cr > Rs.5 Cr

Total Deposits & CASA

Particulars June 18 June 17 Y-o-Y Growth % Mar 18 YTD Growth % Total Deposits 57,554 54,668 5 56,890 1 Demand 5,874 5,871

• 5,576

5 Savings 11,370 10,074 13 11,001 3 Term Deposits 40,310 38,723 4 40,313

• CASA

17,244 15,945 8 16,577 4 CASA % 30% 29% 29%

(Rs. in crore)

20

Investment Portfolio

Investments (Rs. crore) Portfolio wise Investment Investment Portfolio

Debentures/CD/MF/CP includes SRs of Rs.484.71 crore (2.97%)

Duration

HTM AFS HFT Total 4.45 3.09 0.00 4.04

Yield on Investment

21

15293 15992 16341

14000 14500 15000 15500 16000 16500

June 17 Mar 18 June 18 68.91% 31.09% 0% HTM AFS

HFT

85.43% 13.54% 1.03%

SLR Debentures/CD/MF/CP Shares

7.07% 7.00% 6.93% June 17 Mar 18 June 18

Advances Portfolio

(Rs. in crore)

Particulars June 18 June 17 Y-o-Y Growth % Mar 18 YTD Growth % Gross Advances 47,886 42,401 13 45,973 4 Commercial 16,510 14,411 15 16,095 3 Corporate 14,893 13,763 8 14,397 3 Agriculture 8,251 7,635 8 7,861 5 Retail (Personal

Banking)

8,232* 6,592 25 7,620* 8 Jewel Loans

(incl. in above)

7,388 6,431 15 7,092 4

22

32% 34% 18% 16%

June 17

Corporate Commercial Agri Retail 31% 35% 17% 17%

June 18

*Includes IBPC of Rs.500 Cr and Rs.200 Cr for June,18 and Mar,18 respectively.

Segment wise contribution to advances portfolio

Advances – Business Verticals

Advances by Value Advances (%) ABG - Agri Banking , CBG – Commercial Banking, CIG – Corporate Banking, PBG – Personal Banking

23

6240 7032 6979 7861 8251 11774 12763 14504 16095 16510 13402 13763 13612 14397 14893 5275 5918 6340 7620 8232 4000 8000 12000 16000 20000 FY15 FY16 FY17 FY18 June 18 ABG CBG CIG PBG 17% 18% 17% 17% 17% 32% 32% 35% 35% 35% 37% 35% 33% 31% 31% 14% 15% 15% 17% 17% 0% 10% 20% 30% 40% FY15 FY16 FY17 FY18 June 18 ABG CBG CIG PBG

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. 360 Mn
• 67 % of corporate loans are less than Rs.1 Bn
• SMA 1 & 2 in corporate credit is ~1.7% of the book
• 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

24

17% 26% 24% 33% < 250 Mn >= 250 Mn < 500 Mn >= 500 Mn < 1 Bn >= 1 Bn

Advances - Composition

Sub-sectoral exposures well spread out; diversified industrial exposures (June 18)

Rs.479 Bn

Breakup of Industrial exposure (Rs.135 Bn) Working capital focus enables quicker repricing of loans Low concentration: Top 20 borrowers (% of overall loans)

MANUFACTURI NG SECTOR

28% JEWEL LOAN 15% PERSONAL LOAN 12% TRADING 17% BILLS 3% NBFC 3% OTHER EXPOSURES 22%

INFRASTURCTU RE 16% POWER 3% TEXTILES 30% IRON AND STEEL 9% FOOD PROCESSING 7% CHEMICALS AND CHEMICAL PRODUCTS 4% ALL ENGINEERING 4% CEMENT 2% TRANSPORT SECTOR 3% GEMS AND JEWELLERY 5% OTHERS 17%

25

83% 79% 79% 80% 81% 17% 21% 21% 20% 19% FY15 FY16 FY17 FY18 June 18 Working Capital Loans Term Loans

11% 10% 10% 8% 9%

FY15 FY16 FY17 FY18 June 18

Advances – Sector Details

Particulars

Amount % to Total Advance Growth

• ver Jun-17

Jun- 18 Jun-17 Mar -18 Jun-18 Jun-17 Mar 18 Amt %

Manufacturing sector 13,484 12,827 13,626 28 30 30 657 5 Trading 8,195 6,939 7,851 17 16 17 1,256 18 Jewel loan 7,388 6,431 7,092 15 15 15 957 15 Personal loans @ 6,345 5,560 5,990 13 13 13 785 14 CRE 2,793 2,359 2,761 6 6 6 434 18 Agri (other than

jewel loan)

1,734 2,044 1,613 4 5 4 (310) (15) Bills 1,593 1,595 1,542 3 4 3 (2)

• NBFC

1,324 1,093 1,295 3 3 3 231 21 Capital market 78 111 71 (33) (30) Others* 4,952 3,442 4,132 11 8 9 1,510 44 Total Advances 47,886 42,401 45,973 100 100 100 5,485 13

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

26

(Rs. in crore)

Manufacturing Sector - Industry Wise

27

Industry Amount % to Total Advance Growth over June 17 Jun-18 Jun-17 Mar-18 Jun-18 Jun-17 Mar-18 Amount % TEXTILES

4,033 3,820 4,154 8.4 9.0 9.0 213 6

INFRASTRUCTURE

2,628 2,779 2,787 5.5 6.5 6.1 (151) (5)

BASIC METAL & METAL PRODUCTS

1,172 1,294 1,324 2.4 3.0 2.9 (122) (9)

FOOD PROCESSING

952 551 749 2.0 3.5 1.6 401 73

GEMS & JEWELLERY

636 499 501 1.3 1.1 1.1 137 27

ALL ENGINEERING

528 558 625 1.1 1.3 1.4 (30) (5)

CHEMICALS & CHEMICAL PRODUCTS

476 488 513 1.0 1.1 1.1 (12) (2)

RUBBER & PLASTIC PRODUCTS

417 357 361 0.9 0.8 0.8 60 17

CONSTRUCTION

402 390 471 0.8 0.9 1.0 12 3

WOOD & WOOD PRODUCTS

395 273 304 0.8 0.6 0.7 122 45

TRANSPORT SECTOR

391 407 400 0.8 0.9 0.9 (16) (4)

PAPER & PAPER PRODUCTS

301 206 251 0.6 0.4 0.5 95 46

CEMENT & CEMENT PRODUCTS

297 388 292 0.6 0.9 0.6 (91) (23)

BEVERAGES & TOBACCO

177 122 180 0.4 0.2 0.4 55 45

MINING & QUARRYING

157 315 187 0.3 0.7 0.4 (158) (50)

PETROLEUM

48 18 30 0.1 0.1 0.1 30 167

GLASS & GLASSWARE

47 42 58 0.1 0.1 0.1 5 12

LEATHER & LEATHER PRODUCTS

41 37 61 0.1 0.1 0.1 4 11

OTHER INDUSTRIES

386 283 379 0.8 0.6 0.8 103 36

TOTAL

13,484 12,827 13,626 28.2 30.3 29.6 657 5

(Rs. in crore)

Retail Portfolio

Segment

Amount June-18 Mar-18 Mar-17 Mar-16 Mar-15 Housing 2,977 2,795 2,330 2,094 1,757 Mortgage (LAP) 1,470 1,393 965 787 568 Vehicle 1,051 1,017 921 831 782 Jewel Loans 596 578 596 703 793 Personal Loans 294 296 316 354 356 Education Loans 252 261 266 245 207 Others* 1,592 1,280 946 904 779 Total 8,232 7,620 6,340 5,918 5,242

(Rs. in crore)

28

*Includes IBPC of Rs.500 Cr and Rs.200 Cr for June,18 and Mar,18 respectively.

Stress Accounts

(Rs. in crore)

Category 30.06.18 31.03.18 30.06.17

SDR Outstanding Nil

Nil 93

5/25

76 76 76

S4A Accounts Nil

79 208

29

Security Coverage

(Rs. in crore)

CATEGORY 30.06.18

Exposure backed by -

Letter of Credit

989

Liquid Assets ^

8,207

Vehicles

1,774

Commodities

1,290

Total (1)

12,260

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

23,702

90% to <100%

4,909

75% to <90%

2,055

50% to <75%

4,118

<50%

3,215

Total (2)

37,999

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

2,785

Unsecured Exposure

428

Total (3)

3,213

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

53,472

* 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.

30

Sector-wise Restructured Advances

• S. N.

SECTOR AMOUNT June-18 June-17 1 INFRASTRUCTURE 41.55 388.09 2 TEXTILES

• 107.71

3 AGRICULTURE 0.95 7.68 4 EDUCATIONAL LOANS 0.07 0.14 5 AUTO LOANS

• 32.42

6 FOOD PROCESSING

• 244.37

7 OTHERS 9.76 27.44 TOTAL 52.33 807.85 % to Total Advance 0.11% 1.91%

31

(Rs. in crore)

1.82 79.4 0.13 18.65 % to Total Restructured Advances-June 18 0.95 48.04 13.33 4.01 0.02 30.25 3.40 % to Total Restructured Advances-June 17 Agri Infra Textiles Auto Loans Educational Loans Food Process Others

Movement of Restructured Advances

(Rs. in crore) Particulars Apr-18 to Jun-18 Apr-17 to June-17 Apr-17 to Mar-18 No of A/c’s Amt No of A/c’s Amt No of A/c’s Amt Position at the beginning of the period - [A] 22 262.43 33 841.81 33 841.81 Addition during the period - [B]

• 5

0.12 3 0.05 Addition of facilities in existing A/c’s - [C]

• 15.42
• Addition through upgradation

from NPA – [D]

• 2

0.04 Accounts closed during the period - [E] 4 7.79 1 11.00 5 0.60 Accounts ceasing to attract higher provision (upgradation)– [F]

• 3

9.97 Amount recovered during the period – [G]

• 1.59
• 11.00

Accounts slipping to NPA during the period - [H] 4 200.72 1 38.50 8 557.90 Position at the end of the period A+B+C+D-(E+F+G+H) 14 52.33 36 807.85 22 262.43

32

NPAs, Provisions & PCR

(Rs. in crore)

33

1807 2136 2663 3016 3563 1189 1407 1699 1863 2088 586 692 929 1091 1409 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18

Gross NPA Net NPA NPA Provision

2.85 3.24 3.88 4.16 4.50 4.27 4.83 5.94 6.56 7.44 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Net NPA% Gross NPA% 57.01 54.09 54.07 56.50 56.50 32.43 32.40 34.89 36.17 39.55 June 17 Sep 17 Dec 17 Mar 18 June 18 Provision Coverage Ratio % NPA Provision on Gross NPA %

Movement of NPA

(Rs. in crore)

Particulars Apr 18- Jun 18 Apr 17 - Jun 17 Apr 17 - Mar 18

Movement of Gross NPAs Opening Balance

3,016 1,484 1,484

Additions during the period

785 389 2,092

Reductions during the period

238 66 560

Closing Balance

3,563 1,807 3,016

Movement of Net NPAs Opening Balance

1,863 1,033 1,033

Additions during the period

362 212 1,103

Reductions/write off during the period

137 56 273

Closing Balance

2,088 1,189 1,863

NPA Provision movement Opening Balance

1,091 429 429

• Provn. made during the

period

419 157 1,024

Write off/Write back of excess provn.

101 362

Closing Balance

1,409 586 1,091

34

Vertical-wise Advances vis-à-vis NPA

(Rs. in crore) VERTICAL Advances O/s. as on 30.06.2018 Net NPA Addition Q1 Total NPA 30.06.2018 NPA accretion rate (%) Q1 (annld.)

COMMERCIAL

16,510 241 778 5.8

CORPORATE

14,893 267 2,498 7.2

AGRICULTURE

8,251 19 125 0.9

RETAIL (PERSONAL BANKING)

8,232 21 162 1.0

TOTAL

47,886 548 3,563 4.6

35

125 778 2498 162

NPA – Vertical-wise

Agriculture Commercial Corporate Retail (Personal Banking)

Stressed Book Analysis

(Rs. in crore)

36

808 704 715 262 52 1189 1407 1699 1863 2088 448 420 416 406 399 3.91

3.96 4.25 3.78 3.72

1 2 3 4 500 1000 1500 2000 2500 3000 3500 4000

June 17 Sep 17 Dec 17 Mar 18 June 18

Std Restructured Assets Net NPA Net SR % of Total Assets

2445 2531 2830 2531 2539

Credit & other Provisions (excl. Tax)

(Rs. in crore)

Particulars Q1 FY 18-19 Q1 FY 17-18

Total Provisions

423 233

NPA

403 157

Standard Assets-Others

6 1

Standard Assets-NCLT

(12)

• Restructured

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

(18) 8

Investment (Incl NPI)

44 4

Others

• 63*

37

Investment depreciation (MTM loss) is inclusive of proportionate deferred amount of Rs. 9 crore of previous year and Rs. 21 crore provided during current quarter; deferred provision during Q1 is Rs. 76 crore. *Loss on sale to ARC

Capital Adequacy – Basel III

Entire Tier I comprises of CET1 capital, well above the min. requirement of 7.375%

38 13.56% 11.26% 11.85% 13.92% 13.57% 1.05% 0.91% 0.69% 0.51% 0.51%

0.00% 4.00% 8.00% 12.00% 16.00%

Mar 15 Mar 16 Mar 17 Mar 18 June 18 Tier I Tier II

12.17% 12.54% 14.43% 14.08% 14.61%

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

Leveraging Technology- Delivery Channels

39

0.94% 0.99% 1.14% 1.07% 1.06% 0.70% 0.90% 1.10% 1.30% 1.50%

FY15 FY16 FY17 FY18 May 18

Share of RTGS transactions (by volume) Data not available for June,18 as per RBI website 9234 10157 22068 22873 21841 10000 20000

FY15 FY16 FY 17 FY 18 June 18

POS TERMINALS 40 168 722 938 1020 550 1100

FY15 FY16 FY17 FY 18 June 18

Mobile Banking (Nos in '000) 338 353 444 533 537 300 425 550

FY15 FY16 FY 17 FY 18 June 18

Cash Deposit Machines (Nos.)

Young workforce….. … and well qualified work force… …with lower attrition … …leading to better productivity

Human Resources

PG 54%

GRADUATE

35%

Others 11%

40

4.5% 2.7% 2.2% 3.9% 1.0%

0.5% 2.5% 4.5% 6.5% FY15 FY16 FY17 FY18 June 18 11.2 12.4 12.9 12.9 13.5 5 10 15 FY15 FY16 FY17 FY18 June 18 Business per employee (Rs. Crore) 129.4 134.3 133.8 130.1 133.5 124 128 132 136 FY15 FY16 FY17 FY18 June 18 Business per branch (Rs. Crore) 6.5 7.9 8.2 4.4 2.3 2 4 6 8 FY15 FY16 FY17 FY18 June 18 Profit per employee (Rs. Lakhs) 33 33 33 33 34 29 31 33 35 FY15 FY16 FY17 FY18 June 18

Blending Tradition with Modernity …….

Inception

1916

| Customer Base 7 million

102 years Consistently Profitable & Unbroken Dividend Pay Out 1st BANK

RBI approves us as the first bank to issue BONUS SHARES Top Credit Rating (short term borrowings) by CRISIL & ICRA

A1+ A BANKING PIONEER

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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

1,296.21 1,565.54 2,020.05 2,601.04 2,978.01 3,219.16 4,124.40 4,451.09 4,723.16 6,066.38

Owned funds

1,350.16 1,619.98 2,114.54 2,708.22 3,085.19 3,326.34 4,246.03 4,572.95 4,845.02 6,211.71

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

15,101 19,272 24,722 32,112 38,653 43,758 44,690 50,079 53,700 56,890

Advances

10,563 13,675 18,052 24,205 29,706 34,226 36,691 39,476 41,435 45,973

Total Income

1,711 2,005 2,482 3,621 4,695 5,680 5,977 6,150 6,405 6,600

Operating Profit

418 463 600 726 849 838 943 1,303 1,571 1,777

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) 42

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