Karur Vysya Bank Ltd. · NSE:KARURVYSYA
Karur Vysya Bank — Q3 FY2017-18 Earnings Presentation
43 slides from Karur Vysya Bank's earnings presentation, Dec 31, 2017
Slide 1: Investor Presentation
Investor Presentation 31.12.2017
Slide 2: Smart way to bank
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Slide 3: About Us
About Us Banking tradition of 101 years Consistently earning profits since inception Uninterrupted dividend payment record 100% and above dividend for 14 consecutive years from 2004 (120% or higher for eleven years) First bank to get permission from RBI to issue bonus shares 773 branches
Slide 4: Performance Highlights Q3 – FY 2017-18
Performance Highlights Q3 – FY 2017-18 Total Business grew by Rs. 8,430 crore (9%) to Rs. 1,01,955 crore 17% Credit Growth – Rs. 6,376 crore to Rs. 44,836 crore Deposits increase by Rs. 2,053 crore (4%) to Rs. 57,119 crore 26% growth in Operating Profit Net Interest Income increases by Rs.
Slide 5: Towards the future
Towards the future ….. Towards a granular book • Our liabilities are granular providing opportunities for growth in retail / commercial assets Towards digital environment New digital environment initiative - enabling real time credit underwriting in a paperless ecosystem First set of asset p
Slide 6: 9MFY18 Results Snapshot
9MFY18 Results Snapshot Operating Profit Net Profit Advances Deposits Rs. 1297 Rs. 44,836 crore Rs. 57,119 crore Rs.295 crore crore (↓ 24%) (↑17% ) (↑4%) (↑ 22%) ROA NIM 3.76% CRAR Net NPA 0.62% 13.92 % 3.88 % (↑ 14 bps) 6
Slide 7: Profit & Loss Account (Q3 FY 18)
Profit & Loss Account (Q3 FY 18) Units: Rs crore Q3FY Q3FY Particulars YoY% 2017-18 2016-17 Net Interest Income 561 518 8% Other Income 225 170 32% Total Income 786 688 14% Operating Expenses 365 353 3% Operating Profit 421 335 26% Provisions 325 158 106% Credit Related 306 143 114% Others 19 15 27%
Slide 8: Profit & Loss Account (9M FY 18)
Profit & Loss Account (9M FY 18) Particulars 9M 17-18 9M 16-17 YoY% Net Interest Income 1655 1494 11% Other Income 691 550 26% Total Income 2346 2044 15% Operating Expenses 1048 980 7% Operating Profit 1298 1064 22% Provisions 880 470 87% Credit Related 832 437 90% Others 48 33 45% Profit Before Tax
Slide 9: Breakup of Other Income (Quarter)
Breakup of Other Income (Quarter) Units: Rs crore Particulars Q3 FY 17-18 Q3 FY 16-17 YoY % Total 225 170 32% Fee Income 199 138 44% Forex 8 10 (20%) Commissions 153 112 37% Other 38 16 138% Profit on Sale 26 32 (19%) of Investments 9
Slide 10: Breakup of Other Income (9 months)
Breakup of Other Income (9 months) Units: Rs crore Particulars 9M FY 17-18 9M FY 16-17 YoY % Total 691 550 26% Fee Income 598 423 41% Forex 30 28 7% Commissions 463 353 31% Other 105 42 150% Profit on Sale of 93 127 (27%) Investments 10
Slide 11: Healthy Other Income Profile
Healthy Other Income Profile Growth in other income Fee income consistently contributes ~ 67% of other income 9 100% 12% 7% 7% 13% 16% 14% 14% 15% 8 90% 5% 5% 0.6 4% 7% 7% 5% 4% 7 0.4 80% 7% 20% 1 12% 26% 14% 13% 1.0 70% 20% 13% 6 2.1 18% 0.5 0.3 0.9 0.7 60% 5 0.4 0.9 0.9 0.4 0.6 0.7 0.7 50% 4 0.2 1
Slide 12: Key Ratios (Q3 2017-18)
Key Ratios (Q3 2017-18) Net Interest Margin Cost to Income % 4.50% 55% 51.29% 50% 46.45% 4.04% 45.61% 42.00% 4.00% 3.81% 45% 3.68% 3.76% 3.71% 40% 37.55% 3.50% 35% 30% 3.00% 25% Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Return on Assets Return on Equity 1.39% 19% 17.28% 1
Slide 13: Key Ratios (Quarter)
Key Ratios (Quarter) Particulars Q3 FY 17-18 Q3 FY 16-17 Cost of Deposits 5.97% 6.44% Yield on Advances 10.19% 11.30% Cost of Funds 5.88% 6.34% Yield on Funds 8.95% 9.55% Cost Income Ratio 46.45% 51.29% Spread 3.07% 3.21% NIM 3.71% 3.68% Business/Emp. (Rs crore) 12.64 12.96 Profit/Emp. (Rs lakh) 3.5
Slide 14: Key Ratios (9M 2018)
Key Ratios (9M 2018) Particulars 9M FY 17-18 9M FY 16-17 Cost of Deposits 6.06% 6.76% Yield on Advances 10.42% 11.38% Cost of Funds 5.98% 6.67% Yield on Funds 9.12% 9.75% Cost Income Ratio 44.70% 47.95% Spread 3.14% 3.08% NIM 3.76% 3.62% Business/Emp. (Rs crore) 12.64 12.96 Profit/Emp. (Rs lakh) 4.8
Slide 15: Profitability Metrics (Quarterly)
Profitability Metrics (Quarterly) 5.50% 5.08% 4.86% 5.00% 4.61% 4.25% 4.39% 4.43% 4.43% 4.50% 4.25% 4.23% 4.04% 4.00% 3.61% 3.68% 3.76% 3.81% 3.47% 3.55% 3.52% 3.71% 3.50% 3.00% 3.39% 3.21% 3.17% 3.19% 2.99% 3.01% 3.07% 2.50% 2.90% 2.76% 2.00% 1.50% 1.00% Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Ju
Slide 16: Deposits
Deposits Units: Rs crore Particulars 31.12.2017 31.12.2016 YoY % Total Deposits 57,119 55,066 4% CASA 16,024 16,973 (6%) CASA Mix % 28.05% 30.82% Demand 5,549 5,816 (5%) Savings 10,474 11,157 (6%) Term Deposits 41,096 38,093 8% 16
Slide 17: Retail Liability Franchise – Granular and Sticky
Retail Liability Franchise – Granular and Sticky Low dependence on wholesale deposits (FY 2017-18) Term deposits are primarily retail deposits. Only 10% of term deposits are > Rs.50 Mn Rs. 1.5 Mn - Rs. < Rs. 1.5 Mn, 10 Mn., 23% 61% Rs. 10 Mn - Rs. 50 Mn, 6% > Rs. 50 Mn, 10% Low concentration of depo
Slide 18: Deposit Mix
Deposit Mix Break-up of deposit base (in %) 100% 80% 60% 79% 78% 77% 72% 71% 72% 72% 81% 40% 20% 8% 9% 11% 10% 10% 8% 8% 8% 11% 13% 14% 15% 19% 18% 18% 18% 0% FY13 FY14 FY15 FY16 FY17 Jun-17 Sep-17 Dec-17 Savings Deposits Demand Deposits Time Deposits Growth in demand deposits Consistent growth in S
Slide 19: Advances
Advances Units: Rs crore Particulars 31.12.2017 31.12.2016 YoY % Advances 44,836 38,459 17% Corporate 14,341 12,890 11% Commercial 15,429 13,035 18% Agriculture 7,700 6,442 20% Retail (Personal Banking) 7,366 6,093 21% Jewel Loan 6,912 6,094 13% (included in other segments) 19
Slide 20: Granular Loan Portfolio
Granular Loan Portfolio Loan book break up in FY17-18 Retail, 17% Agriculture, 17% Corporate, 32% Commercial, 34% Rs.298 Bn Commercial book Corporate book break-up* break-up* > Rs. 1000 < Rs. 250 < 50 mn, mn, 31% mn, 17% > =250 mn, 76% 2% >= 100 mn < 250 mn, 11% Rs. 500 mn Rs.250mn - >= 50 mn < - 10
Slide 21: Breakup of Advances
Breakup of Advances Sub-sectoral exposures well spread out; diversified industrial exposures (FY17-18) Rs. 448 Bn Breakup of industry exposure (Rs. 134 Bn) GEMS & OTHERS 16% OTHER JEWELLERY 4% INFRASTRUCTU EXPOSURES* TRANSPORT RE 15% NBFC 3% 19% MANUFACTUR EQUIPMENTS ING SECTOR POWER 4% BILLS 3% 3%
Slide 22: Advances – Category wise
Advances – Category wise Growth over Dec - Amount (Rs. in crore) % to Total Advance Particulars 16 Dec-17 Dec-16 Mar-17 Dec-17 Dec-16 Mar-17 Amount % MANUFACTURING SECTOR 13,402 11,903 12,688 29.9 30.9 30.6 1499 12.6 JEWEL LOAN 6,911 6,094 6,159 15.4 15.8 14.9 817 13.4 Personal Segment Loans @ 5,696
Slide 23: Security Coverage
Security Coverage (Rs. in crore) CATEGORY 31.12.17 Total Funded & Non Funded advances (1 + 2)* 51,5 97 a. Exposure backed by Letter of Credit 917 b. Exposure backed by Liquid Assets ^ 8,653 c. Exposure backed by Vehicles 1,290 d. Exposure backed by Commodities 1,015 1. Total (a+b+c+d) 11,875 2. Othe
Slide 24: Manufacturing Sector - Breakup
Manufacturing Sector - Breakup Amount (Rs. in crore) % to Total Advance Growth Over Dec - 16 INDUSTRY Dec-17 Dec-16 Mar-17 Dec-17 Dec-16 Mar-17 Amount % INFRASTRUCTURE 2,798 2,751 2,964 6.2 7.2 7.2 47 1.71 TEXTILES 4,014 3,423 3,769 9.0 8.9 9.1 591 17.27 BASIC METAL & METAL 1,364 1,247 1,194 3.0 3.2
Slide 25: Retail Advances
Retail Advances Amount (Rs. in crore) Segment Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Jun-17 Sep-17 Dec-17 Housing Loan 611 971 1,387 1,757 2,094 2,330 2,425 2,553 2,658 Mortgage Loan (LAP) - - 381 568 787 965 1,045 1,178 1,313 Vehicle Loan 492 677 735 782 831 921 962 1,003 1,007 Jewel Loan 584 83
Slide 26: Advances Mix
Advances Mix Advances in Value (Rs.in crore) Advances Mix (in %) 18000 40% 38% 37% 37% 35% 34% 34% 16000 35% 34% 32% 14000 33% 33% 34% 30% 33% 32% 32% 32% 32% 12000 ABG 25% 10000 ABG CBG 20% 18% 18% 18% 18% CBG 8000 17% 18% 17% CIG 16% CIG 6000 PBG 15% 17% 16% PBG 14% 15% 15% 16% 4000 10% 12% 13% 20
Slide 27: Investment Portfolio
Investment Portfolio Investments Outstanding (Rs. In crore) Portfolio wise Investment 20000 18975 16753 HFT, 0.03% 15000 14955 AFS, 30.94% 10000 HTM, 69.03% 5000 0 Dec' 16 Mar' 17 Dec' 17 Modified Duration Investment Portfolio AFS HFT HTM Total SLR Shares Debentures/CD/MF/CP 3.22 8.53 4.67 4.25 Yiel
Slide 28: Stress Accounts
Stress Accounts Category (Rs. crore) 30.09.17 31.12.17 SDR Outstanding 96.09 65.55 5/25 78.80 79.67 S4A Accounts 235.09 182.14 Sale to ARC during quarter Nil Nil 28
Slide 29: Sector Wise Restructured Advances
Sector Wise Restructured Advances AMOUNT (%) to Total Rest. S.NO SECTOR Adv (Rs. in crore) Dec-17 Dec-16 Dec-17 Dec-16 1 AGRICULTURE 7.42 7.93 1.04 0.62 2 INFRASTRUCTURE 366.43 752.14 51.23 58.80 3 TEXTILES 43.28 195.67 6.05 15.30 4 AUTO LOANS 31.98 0.54 4.47 0.04 5 EDUCATIONAL LOANS 0.14 0.63 0.02
Slide 30: Movement of Restructured Assets
Movement of Restructured Assets Units: Rs crore Apr-17 to Sep-17 Oct-17 to Dec-17 Particulars Amount ( Rs. in Amount ( Rs. No. of A/c No. of A/c Cr) in Cr) Restructured accounts at the beginning of the 33 841.81 33 703.62 period - [A] Addition during the period - [B] 5 0.12 0 0 Additions in existing
Slide 31: NPA Position
NPA Position Units: Rs crore 5.94 4.83 4.27 3.58 2.66 3.88 Gross NPA % 3.24 2.85 Net NPA % 2.53 1.68 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Provision Coverage 67.06% 57.83 % 57.01% 54.09 % 54.07% Ratio 31
Slide 32: Movement of NPA
Movement of NPA (Rs. in crore) Jul 17 – Oct 17 – Apr 17 – Apr 16 – Particulars Sep 17 Dec 17 Dec 17 Dec 16 Movement of Gross NPAs Opening Balance 1807.01 2,136.19 1,483.81 511.18 Additions during the period 426.84 713.26 1,504.73 771.01 Reductions during the period 97.66 75.28 214.37 259.95 Prudenti
Slide 33: Comparative Advances vs. NPA
COMPARATIVE ADVANCES vs. NPA (Rs. in crore) Net Addition Total NPA % of O/s. bal. VERTICAL to NPA during O/s. as on Addition 31.12.2017 Q3 31.12.2017 (annld.) AGRICULTURE 7700 1 96 0.03 COMMERCIAL 15429 59 537 1.53 CORPORATE 14341 581 1887 16.21 RETAIL (PERSONAL BANKING) 7366 -2 144 -0.13 TOTAL 4483
Slide 34: Breakup of Provisions (Other than Tax)
Breakup of Provisions (Other than Tax) Units: Rs crore Particulars Q3 FY 17-18 Q3 FY 16-17 Total Provisions 325 158 NPA 348 88 Standard Assets 3 (4) A/c’s referred to NCLT (Std. Assets) (48) -- Restructured (SDR, S4A, 5/25 etc.) 2 0.17 Investment 19 0.25 Others (including amortisation 73.58 of loss
Slide 35: Breakup of Provisions (Other than Tax)
Breakup of Provisions (Other than Tax) Units: Rs crore Particulars 9M FY 17-18 9M FY 16-17 Total Provisions 879 470 NPA 611 278 Standard Assets 8 (9) A/c’s referred to NCLT (Std. Assets) 5 -- Restructured (incl. SDR, S4A, 5/25 etc.) 20 -- Investment 58 11 Others (including amortisation 177 190 of lo
Slide 36: Branch and ATM / Cash Recyclers Network
Branch and ATM / Cash Recyclers Network 2500 1200 2251 2295 2191 1983 1983 2008 2000 1759 900 1500 773 1276 752 711 719 667 1000 629 572 551 600 500 0 300 FY13 FY14 FY15 FY16 FY17 Jun-17 Sep-17 Dec-17 ATM + Cash Recyclers Branches 36
Slide 37: Branch Network - Diversified Across the Country
Branch Network - Diversified Across the Country Geographical spread of branches (FY 2017-18) State /UT Dec-17 - Branches (Nos) TAMILNADU 412 Region, Number of branches 18 Divisional Offices spread across the country ANDHRA PRADESH 116 TELANGANA 57 South 664 North 42 KARNATAKA 52 MAHARASHTRA 27 East
Slide 38: Leveraging Technology – Alternate Banking Channels
Leveraging Technology – Alternate Banking Channels Volume of RTGS transactions POS Terminals 30000 23929 23945 23372 25000 22068 1.90% 20000 1.70% 15000 9234 10157 1.50% 8434 10000 5844 1.30% 1.14% 1.18% 1.17% 1.12% 0.99% 5000 1.10% 0.91% 0.94% 0.84% 0 0.90% FY13 FY14 FY15 FY16 FY 17 Jun-17 Sep-17 D
Slide 39: Capital Adequacy
Capital Adequacy Capital Adequacy Ratio (Basel III) 15.00 14.61 13.92 1.05 0.56 12.54 12.17 12.22 0.69 11.71 0.91 0.82 0.67 10.00 13.56 13.36 11.85 11.26 11.04 11.40 5.00 Mar-15 Mar-16 Mar-17 June-17 Sept-17 Dec-17 Tier 1 Tier 2 39
Slide 40: Human Resources
Human Resources Young workforce ( average 33 years)….. … and well qualified work force… …with lower attrition … 47% below 30 yrs of age out of 8,060 employees 8.4% Others 11% 35 6.2% 34 34 5.4% 34 Graduate 4.4% 4.5% 33 33 33 33 33 35% PG 33 54% 2.9% 2.7% 3.1% 32 32 32 2.2% 32 31 30 FY10 FY11 FY12 FY
Slide 41: A Decade of Progress
A Decade of Progress Units: Rs crore Year 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Paid up Capital 53.94 53.95 54.44 94.49 107.18 107.18 107.18 121.63 121.86 121.86 Reserves 1136.06 1296.21 1565.54 2020.05 2601.04 2978.01 3219.16 4124.4 4451.09 4723.16 Owned fu
Slide 42: Strategies & Initiatives
STRATEGIES & INITIATIVES Digital Initiative e-Channels – paperless D E • Automation of credit processes banking & Digital Payment Products Fast Tag • Digital Outreach - Kathirampatti BHIM (T.N.) & Bandarupalli (A.P.) BBPS Fundamentals & Financials Growth through goodwill F G Leverage our est
Slide 43: Smart
Smart
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