Karur Vysya Bank Ltd. · NSE:KARURVYSYA
Karur Vysya Bank — Investor Presentation (June 2017)
37 slides from Karur Vysya Bank's investor presentation, Jun 30, 2017
Slide 1: Investor Presentation
Investor Presentation 30.06.2017
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 719 branches
Slide 4: Q1FY18 Results Snapshot
Q1FY18 Results Snapshot Operating Net Profit Profit Rs.148 crore Rs. 449 crore (↑ 1.1%) (↑ 30%) ROA NIM 0.95% 3.76% Net NPA (↑ 24 bps) 2.85 % 4
Slide 5: Q1FY18 Results Snapshot
Q1FY 18 Results Snapshot Deposits Advances Rs. 54,668 crore Rs. 42,401 crore (↑7.8 %) (↑ 7.7 %) CASA NII Rs. 15,945 crore (↑ 29.4 %) CRAR Rs. 538 crore (Rs. 481 crore) 11.71% CASA Share 29.2% 5
Slide 6: Profit & Loss Account (Q1 FY)
Profit & Loss Account (Q1 FY) Units: Rs crore Particulars Q1FY 2017-18 Q1FY 2016-17 YoY Growth Net Interest Income 539 481 12% Other Income 236 162 46% Total Income 775 643 20% Operating Expenses 326 297 9% Operating Profit 449 346 30% Provisions 233 130 79% Credit Related 229 138 66% Others 4 -8 Pr
Slide 7: Breakup of Other Income (Quarter)
Breakup of Other Income (Quarter) Units: Rs crore Particulars Q1 FY 17-18 Q1 FY 16-17 YoY % Total 236 162 45.63% Fee Income 189 147 28.57% Forex 11 10 10.00% Commissions 161 124 29.84% Other 17 13 38.46% Profit on Sale 47 15 213.33% of Investments 7
Slide 8: Healthy Other Income Profile
Healthy Other Income Profile Growth in other income Fee income consistently contributes ~ 68% of other income 9 100% 12% 13% 12% 7% 7% 17% 16% 14% 5% 5% 0.6 4% 4% 7% 7% 7% 0.4 75% 15% 11% 12% 20% 1 20% 13% 26% 6 8% 18% 0.5 2.1 0.9 0.7 0.4 0.9 0.4 0.7 50% 0.6 1 0.2 3 0.6 0.9 69% 69% 68% 0.4 64% 62% 6
Slide 9: Key Ratios (Q1 2017-18)
Key Ratios (Q1 2017-18) Net Interest Margin Cost to Income % 4.50% 51.29% 55% 4.04% 50% 46.19% 46.31% 4.00% 42.00% 3.76% 45% 3.68% 3.61% 37.55% 3.52% 40% 3.50% 35% 30% 3.00% Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 25% Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Return on Assets Return on Equity 1.60% 20% 17.28% 1
Slide 10: Key Ratios (Comparative)
Key Ratios (Comparative) Net Interest Margin Cost to income (%) 4.00 3.70 60 54.67 53.91 3.43 47.31 47.63 3.50 3.76 50 44.99 42.73 42.00 3.08 3.03 3.00 2.91 40 2.64 30 2.50 20 2.00 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Jun-17 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Jun-17 Cost to income (%) Ne
Slide 11: Key Ratios (Quarter)
Key Ratios (Quarter) Particulars Q1 FY 17-18 Q1 FY 16-17 Cost of Deposits 6.15% 6.97% Yield on Advances 10.58% 11.36% Cost of Funds 6.06% 6.93% Yield on Funds 9.22% 9.86% Cost Income Ratio 42.00% 46.19% Spread 3.16% 2.93% NIM 3.76% 3.52% Business/Emp. (Rs crore) 12.61 12.47 Profit/Emp. (Rs lakh) 7.6
Slide 12: Profitability Metrics (Quarterly)
Profitability Metrics (Quarterly) 5.50% 5.08% 4.86% 5.00% 4.61% 4.24% 4.39% 4.43% 4.50% 4.31% 4.25% 4.25% 4.04% 4.00% 3.68% 3.76% 3.55% 3.52% 3.61% 3.30% 3.39% 3.47% 3.50% 3.49% 3.00% 3.17% 3.16% 2.99% 3.01% 2.90% 2.50% 2.76% 2.65% 2.57% 2.00% 1.50% 1.00% Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 De
Slide 13: Profitability Metrics (Comparative)
Profitability Metrics (Comparative) 12.00 4.74 4.43 4.08 3.99 4.05 4.55 4.26 4.30 4.60 4.47 10.00 4.11 4.18 4.11 4.04 8.00 3.62 3.70 3.76 6.00 3.48 3.45 3.39 3.43 3.23 3.08 3.03 3.06 2.91 2.95 4.00 2.64 3.32 3.24 3.16 3.04 3.10 2.00 2.74 2.71 2.42 2.33 2.41 2.27 2.17 2.02 2.09 0.00 Mar-05 Mar-06 Mar
Slide 14: Deposits
Deposits Units: Rs crore Particulars FY 17 -18 FY 16-17 YoY % 5466 Total Deposits 54,668 50,715 7.79% CASA 15,945 12,318 29.44% CASA Mix % 29.17% 24.29% Demand 5,871 4,249 38.17% Savings 10,074 8,069 24.85% Term Deposits 38,723 38,397 0.85% 14
Slide 15: 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 9% of term deposits are > Rs.50 Mn Rs. 1.5 Mn - Rs. 10 Mn., 24% < Rs. 1.5 Mn, 62% Rs. 10 Mn - Rs. 50 Mn, 6% > Rs. 50 Mn, 9% Low concentration of deposi
Slide 16: Deposit Mix
Deposit Mix Break-up of deposit base (in %) 100% 80% 60% 76% 77% 79% 78% 77% 72% 71% 81% 81% 40% 20% 9% 11% 11% 10% 8% 8% 8% 14% 8% 13% 13% 11% 11% 13% 14% 15% 19% 18% 0% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Jun-17 Savings Deposits Demand Deposits Time Deposits Growth in demand deposits since 201
Slide 17: Advances
Advances Units: Rs crore Particulars FY 17-18 FY 16-17 YoY % Advances 42,401 39,381 7.67% Corporate 13,763 13,202 4.25% Commercial 14,411 12,905 11.67% Agriculture 7,635 7,265 5.09% Retail (Personal Banking) 6,592 6,009 9.70% Jewel Loan 6,431 6,363 1.07% (included in other segments) 17
Slide 18: Granular Loan Portfolio
Granular Loan Portfolio Loan book break up in FY17-18 Retail, 16% Corporate, 32% Agriculture, 18% Commercial, 34% Rs.282 Bn Commercial book Corporate book break-up* break-up* > Rs. 1000 < Rs. 250 > 250 mn, < 50 mn, mn, 32% mn, 17% 1% 79% >= 100 mn < 250 mn, 9% >= 50 mn < Rs.250mn Rs. 500 100 mn, - 5
Slide 19: Breakup of Advances
Breakup of Advances Sub-sectoral exposures well spread out; diversified industrial exposures (FY17-18) Rs. 424 Bn Breakup of industry exposure (Rs. 128 Bn) INFRASTRUCTURE OTHER OTHERS 16% 15% EXPOSURES* GEMS & JEWELLERY 19% 4% NBFC 3% TRANSPORT POWER 6% MANUFACTURI EQUIPMENTS 3% NG SECTOR BILLS 4% 3
Slide 20: Advances – Category wise
Advances – Category wise Growth Over Amount (Rs. in crore) % to Total Advance Particulars Jun-16 Quant Jun-17 Jun-16 Mar-17 Jun-17 Jun-16 Mar-17 um % MANUFACTURING 541 4.00% 12,827 12,286 12,688 31.20 SECTOR 30.25 30.62 6,431 6,363 6,159 16.16 68 1.00% JEWEL LOAN 15.17 14.86 207 2.00% 5,560 5,353 4,
Slide 21: Manufacturing Sector - Breakup
Manufacturing Sector - Breakup INDUSTRY Amount (Rs. in crore) % to Total Advance Growth Over Jun 16 Jun-17 Jun-16 Mar-17 Jun-17 Jun-16 Mar-17 Quantum % INFRASTRUCTURE 2,779 3,141 2,964 6.55 7.98 7.15 -362 -11.52% TEXTILES 3,820 3,535 3,769 9.01 8.98 9.1 285 8.06% BASIC METAL & METAL PRODUCTS 1,294 1
Slide 22: Retail Advances
Retail Advances Amount (Rs. in crore) Segment Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Jun-17 Housing Loan 436 611 971 1,387 1,757 2,094 2,330 2,425 Mortgage Loan (LAP) - - - 381 568 787 965 1,045 Vehicle Loan 387 492 677 735 782 831 921 962 Jewel Loan 481 584 832 802 793 703 596 601 Persona
Slide 23: Advances Mix
Advances Mix Advances in Value (Rs.in crore) Advances Mix (in %) 16000 50% 14000 43% 40% 38% 37% 12000 37% 34% 33% 35% 34% 10000 32% ABG 30% 32% 33% 32% 33% ABG 31% 8000 CBG CBG CIG 20% 18% 18% 18% CIG 6000 17% 16% 16% 18% PBG 16% PBG 4000 14% 15% 15% 10% 12% 13% 10% 2000 0 0% Mar-12 Mar-13 Mar-14 M
Slide 24: Investment Portfolio
Investment Portfolio Investments Outstanding (Rs. In crore) Portfolio wise Investment HFT, 0.07% 15400 15293 15200 AFS, 30.69% 14955 15000 HTM, 14621 69.24% 14800 14600 14400 14200 Jun' 16 Mar' 17 Jun' 17 Modified Duration Investment Portfolio HTM AFS HFT Total 4.47 2.20 8.19 3.86 SLR Shares Debentu
Slide 25: Stress Accounts
Stress Accounts Rs. in Crore SDR Outstanding (2 accounts) 93.05 5/25 (1 account ) 75.65 S4A Accounts (3 Account) 208.40 Sale to ARC in Q1 of FY 17-18 Nil 25
Slide 26: Sector Wise Restructured Advances
Sector Wise Restructured Advances AMOUNT (%) to total Rest. Adv S.NO SECTOR (Rs. in crore) Jun-17 Jun-16 Jun-17 Jun-16 1 AGRICULTURE 7.68 15.30 0.95 1.19 2 INFRASTRUCTURE 388.09 724.61 48.04 56.59 3 TEXTILES 107.71 192.74 13.33 15.05 4 AUTO LOANS 32.42 0.07 4.01 0.01 5 EDUCATIONAL LOANS 0.14 0.77 0.
Slide 27: Movement of Restructured Assets
Movement of Restructured Assets Units: Rs crore Apr-17 to Jun-17 Apr-16 to Mar-17 Particulars No. Amount No. Amount of (Rs. in of (Rs. in A/cs crore) A/cs crore) Restructured accounts at the beginning of the period - [A] 33 841.81 117 1354.90 Fresh Restructuring - [B] 5 0.12 2 1.75 Addition of facil
Slide 28: NPA Position
NPA Position Units: Rs crore 1,807 1,484 Gross NPA 1,022 903 Net NPA 702 306 565 638 1,033 1,189 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 2.85 2.53 1.68 4.27 1.44 3.58 0.79 2.66 Net NPA % 2.29 1.79 Gross NPA % Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Provision Coverage 78.49% 68.26 % 67.06 % 57.83% 57.01% Ratio
Slide 29: Movement of NPA
Movement of NPA (Rs. in crore) Particulars Apr 17 - Jun 17 Apr 16 - Jun 16 Apr 16 - Mar 17 Movement of Gross NPAs Opening Balance 1,483.81 511.18 511.18 Additions during the period 389.24 238.86 1,330.83 Reductions during the period 66.04 47.69 358.20 Closing Balance 1,807.01 702.35 1,483.81 Movemen
Slide 30: Breakup of Provisions (Other than Tax)
Breakup of Provisions (Other than Tax) Units: Rs crore Particulars Q1 FY 17-18 Q1 FY 16-17 Total Provisions 233 130 NPA 157 94 Standard Assets 1 (-) 4 Restructured (including SDR& S4A) 8 (-) 5 Investment -- (-) 7 Others (including ARC sale 52 loss 2015-16 amortisation) 67 30
Slide 31: Branch and ATM / Cash Recyclers Network
Branch and ATM / Cash Recyclers Network 2500 1200 2191 2207 629 2008 2000 1759 900 1500 1276 711 719 667 1000 629 825 572 551 600 488 451 500 375 369 335 0 300 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Jun-17 ATM + Cash Recyclers Branches 31
Slide 32: Branch Network - Diversified Across the Country
Branch Network - Diversified Across the Country Geographical spread of branches (FY 2017-18) State /UT Jun-17 - Branches (Nos) TAMILNADU 383 Region, Number of branches 18 Divisional Offices spread across the country ANDHRA PRADESH 105 TELANGANA 52 South 613 North 40 KARNATAKA 49 MAHARASHTRA 27 East
Slide 33: Leveraging Technology – Alternate Banking Channels
Leveraging Technology – Alternate Banking Channels Rising volume of RTGS transactions POS Terminals 30000 1.90% 23929 25000 22068 1.70% 20000 1.50% 13937 15000 10157 10428 10797 1.30% 1.14% 1.18% 8434 9234 10000 5844 1.10% 0.99% 5000 3399 0.91% 0.94% 0.79% 0.84% 0.90% 0 0.70% FY12 FY13 FY14 FY15 FY1
Slide 34: Capital Adequacy
Capital Adequacy Capital Adequacy Ratio (FY 12 to FY 14 Basel II and FY 15 onwards Basel III) 16% 14.33% 14.41% 14.61% 14% 1.21% 1.31% 1.05% 12.77% 12.54% 12.17% 12% 1.15% 0.69% 11.71% 0.91% 0.67% 10% 8% 13.12% 13.10% 13.56% 6% 11.62% 11.85% 11.26% 11.04% 4% 2% 0% Mar-12 Mar-13 Mar-14 Mar-15 Mar-16
Slide 35: Human Resources
Human Resources Young workforce ( average 33 years)….. … and well qualified work force… …with lower attrition … 40% below 30 yrs of age out of 7,694 employees Others 8.4% 12% 35 6.2% 34 34 5.4% 34 4.4% 4.5% 33 33 33 33 Graduate 33 2.9% 2.7% 32 32 32 37% 2.2% PG 32 1.2% 51% 31 30 FY10 FY11 FY12 FY13
Slide 36: 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 37: Smart
Smart