Karur Vysya Bank Ltd. · NSE:KARURVYSYA
Karur Vysya Bank — FY2017 Earnings Presentation
42 slides from Karur Vysya Bank's earnings presentation, Mar 31, 2017
Slide 1: Investor Presentation
Investor Presentation 31.03.2017
Slide 2: Smart way to bank
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Slide 3: Awards and Accolades
Awards and Accolades IDRBT Award for the Best Bank Among Small Banks for Digital Banking , 2015-16 on 18.07.2016 IDRBT Award for the Best Bank Among Small Banks for Managing IT Ecosystem, 2015-16 on 18.07.2016 Dun & Bradstreet Banking Awards 2016, Karur Vysya Bank has been awarded the Best Pri
Slide 4: About Us
About Us Banking tradition of 100 years Consistently earning profits since inception Uninterrupted dividend payment record 100% and above dividend for 13 years consecutively from 2004, out of which 120% or above for ten years First bank to get permission from RBI to issue bonus shares 711 bra
Slide 5: Q4FY17 Results Snapshot
Q4FY17 Results Snapshot Operating Profit Net Profit Rs.507 crore Rs.218 crore (↑ 58%) (↑ 57%) NIM ROA 4.04% Net NPA 1.39% (Q4FY16 – 0.97%) (Q4FY16 – 2.53 % 3.55%) 5
Slide 6: FY17 Results Snapshot
FY17 Results Snapshot CASA Deposits Advances Rs. 14,889 Operating crore Profit Net Profit Rs. 53,700 Rs. 41,435 Rs. 606 crore (↑ 27.53 %) Rs. 1,571 crore crore crore (↑ 7.23 %) (↑ 4.96 %) (↑ 21%) (↑ 7 % ) CASA Share 27.73% NII NIM CRAR ROA ROE Rs.2073 crore 3.70% 1.00% 12.03 % (Rs.1781 crore) (FY16
Slide 7: Profit & Loss Account (Quarter)
Profit & Loss Account (Quarter) Units: Rs crore Particulars Q4FY 2016-17 Q4FY 2015-16 YoY% Net Interest Income 580 473 23% Other Income 232 166 40% Total Income 812 639 27% Operating Expenses 305 317 -4% Operating Profit 507 322 57% Provisions 217 50 334% Credit Related 198 89 122% Others 19 -39 -14
Slide 8: Profit & Loss Account (FY)
Profit & Loss Account (FY) Units: Rs crore Particulars Mar-17 Mar-16 YoY% Net Interest Income 2074 1781 16% Other Income 782 707 11% Total Income 2856 2488 15% Operating Expenses 1285 1184 9% Operating Profit 1571 1304 20% Provisions 688 392 76% Credit Related 648 387 67% Others 40 5 - Profit Before
Slide 9: Breakup of Other Income (Quarter)
Breakup of Other Income (Quarter) Units: Rs crore Particulars Q4 FY 16-17 Q4 FY 15-16 YoY % Total 233 166 40.36% Fee Income 155 155 -- Forex 11 9 22.22% Commissions 127 107 18.69% Other 17 39 (-)56.41% Profit on Sale 78 11 609.09% of Investments 9
Slide 10: Breakup of Other Income (FY)
Breakup of Other Income (FY) Units: Rs crore Particulars FY 16-17 FY 15-16 YoY % Total 782 707 10.61% Fee Income 577 613 (-)5.87% Forex 38 55 (-)30.91% Commissions 480 460 4.34% Other 59 98 (-)39.80% Profit on Sale of 205 94 118.09% Investments 10
Slide 11: Healthy Other Income Profile
Healthy Other Income Profile Growth in other income Fee income consistently contributes ~ 74% of other income 9 100% 12% 13% 12% 14% 7% 8 90% 17% 16% 5% 0.6 4% 4% 7% 7 0.4 80% 7% 7% 15% 11% 12% 26% 1 70% 20% 13% 6 0.5 2.1 8% 18% 0.9 0.7 60% 5 0.4 0.9 0.4 0.7 50% 4 0.6 1 0.2 3 0.6 0.9 40% 0.4 69% 64%
Slide 12: Key Ratios (Q4 2016-17)
Key Ratios (Q4 2016-17) Net Interest Margin Cost to Income % 4.50% 55% 51.29% 49.58% 46.31% 4.04% 50% 46.19% 4.00% 45% 3.68% 37.55% 3.55% 3.61% 3.52% 40% 3.50% 35% 30% 3.00% Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 25% Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Return on Assets Return on Equity 1.60% 20% 1.39% 17
Slide 13: Key Ratios (FY 2016-17)
Key Ratios (FY 2016-17) Net Interest Margin Cost to Income % 4.00% 60% 3.80% 3.68% 3.70% 3.60% 3.52% 51.29% 3.60% 3.43% 46.31% 3.40% 50% 47.63% 46.19% 44.99% 3.20% 3.00% 40% 2.80% 2.60% 2.40% 30% Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Return on Assets Return on Equity
Slide 14: Key Ratios (Quarter)
Key Ratios (Quarter) Particulars Q4 FY 16-17 Q4 FY 15-16 Cost of Deposits 6.15% 7.06% Yield on Advances 11.23% 11.31% Cost of Funds 6.03% 6.88% Yield on Funds 9.52% 9.87% Cost Income Ratio 37.55% 49.58% Spread 3.49% 2.99% NIM 4.04% 3.55% Business/Emp. (Rs crore) 12.85 12.41 Profit/Emp. (Rs lakh) 11.
Slide 15: Key Ratios (FY)
Key Ratios (FY) Particulars FY 16-17 FY 15-16 Cost of Deposits 6.60% 7.40% Yield on Advances 11.34% 11.67% Cost of Funds 6.52% 7.38% Yield on Funds 9.62% 10.09% Cost Income Ratio 44.99% 47.63% Spread 3.10% 2.71% NIM 3.70% 3.43% Business/Emp. (Rs crore) 12.85 12.41 Profit/Emp. (Rs lakh) 8.19 7.87 No.
Slide 16: Profitability Metrics
Profitability Metrics Consistency in spreads (Quarterly) 5.50% 5.08% 4.86% 5.00% 4.61% 4.29% 4.31% 4.39% 4.50% 4.23% 4.24% 4.25% 4.25% 3.93% 4.11% 4.08% 4.04% 4.00% 3.68% 3.55% 3.52% 3.61% 3.39% 3.47% 3.50% 3.30% 3.08% 3.15% 3.49% 3.00% 2.67% 2.73% 2.67% 3.17% 2.99% 2.90% 3.01% 2.50% 2.76% 2.57% 2.6
Slide 17: Profitability Metrics
Profitability Metrics Net Interest Margin (%) over the years 5.50% 5.00% 4.74% 4.55% 4.60% 4.47% 4.50% 4.08% 4.30% 4.26% 4.11% 4.11% 4.18% 3.99% 4.05% 4.04% 4.00% 3.62% 3.70% 3.48% 3.45% 3.39% 3.43% 3.50% 3.23% 3.06% 3.08% 3.03% 2.95% 2.91% 3.00% 3.32% 3.24% 2.64% 3.10% 3.04% 2.50% 2.74% 2.71% 2.42%
Slide 18: Deposits
Deposits Units: Rs crore Particulars FY 16 -17 FY 15-16 YoY % Total Deposits 53,700 50,079 7.23% CASA 14,889 11,675 27.53% CASA Mix % 27.73% 23.30% Demand 4,921 4,027 22.20% Savings 9,968 7,648 30.33% Term Deposits 38,811 38,404 1.06% 18
Slide 19: Retail Liability Franchise – Granular and Sticky
Retail Liability Franchise – Granular and Sticky Low dependence on wholesale deposits (FY 2016-17) Term deposits are primarily retail deposits. Only 9% of term deposits are > Rs.50 Mn Rs. 1.5 Mn - Rs. 10 Mn., 23% < Rs. 1.5 Mn, 62% Rs. 10 Mn - Rs. 50 Mn, 6% > Rs. 50 Mn, 9% Low concentration of deposi
Slide 20: Deposit Mix
Deposit Mix Break-up of deposit base (in %) 100% 80% 60% 76% 77% 81% 81% 79% 78% 77% 72% 40% 20% 8% 9% 11% 10% 8% 8% 8% 14% 13% 13% 11% 11% 13% 14% 15% 19% 0% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Savings Deposits Demand Deposits Time Deposits Growth in demand deposits since 2010 Consistent growth
Slide 21: Advances
Advances Units: Rs crore Particulars FY 16-17 FY 15-16 YoY % Advances 41,435 39,476 4.96% Corporate 13,612 13,763 (-)1.09% Commercial 14,504 12,763 13.64% Agriculture 6,979 7,032 (-)0.75% Retail (Personal Banking) 6,340 5,918 7.13% Jewel Loan 6,159 6,359 (-)3.14% (included in other segments) 21
Slide 22: Granular Loan Portfolio
Granular Loan Portfolio Loan book break up in FY16-17 Retail, 15% Corporate, Agriculture, 33% 17% Commercial, 35% Rs.281 Bn Commercial book Corporate book break-up* break-up* > Rs. 1000 < Rs. 250 > 250 mn, < 50 mn, mn, 32% mn, 17% 1% 78% >= 100 mn < 250 mn, 10% Rs.250mn Rs. 500 - 500 mn, >= 50 mn <
Slide 23: Breakup of Advances
Breakup of Advances Sub-sectoral exposures well spread out; diversified industrial exposures (FY16-17) Rs. 414 Bn Breakup of industry exposure (Rs. 127 Bn) OTHER GEMS & INFRASTRUCTUR EXPOSURES* JEWELLERY 4% E 25% 20% TRANSPORT OTHERS 15% NBFC 2% EQUIPMENTS 3% MANUFACT POWER 6% URING CEMENT 3% BILLS
Slide 24: Advances – Category wise
Advances – Category wise % to Total Amount (Rs. in crore) Growth Particulars Advance Mar-17 Mar-16 Mar-17 Mar-16 Amount % MANUFACTURING SECTOR 12,688 12,707 30.6 32.2 (19) (0.1) JEWEL LOAN 6,159 6,359 14.9 16.1 (200) (3.1) Personal Segment Loans @ 4,847 5,310 11.7 13.5 (463) (8.7) TRADING 6,889 5,77
Slide 25: Manufacturing Sector - Breakup
Manufacturing Sector - Breakup Amount (Rs. in crore) % to Total Advance Growth INDUSTRY Mar-17 Mar-16 Mar-17 Mar-16 Amount % INFRASTRUCTURE 2,964 3,354 7.2 8.5 (390) (11.63) TEXTILES 3,769 3,515 9.1 8.9 254 7.23 BASIC METAL & METAL PRODUCTS 1,194 1,225 2.9 3.1 (31) (2.53) FOOD PROCESSING 536 356 1.3
Slide 26: Retail Advances
Retail Advances Amount (Rs. in crore) Segment Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Housing Loan 436 611 971 1,387 1,757 2,094 2,330 Mortgage Loan (LAP) - - - 381 568 787 965 Vehicle Loan 387 492 677 735 782 831 921 Jewel Loan 481 584 832 802 793 703 596 Personal Loan 257 319 341 353 356
Slide 27: Advances Mix
Advances Mix Advances in Value (Rs.in crore) Advances Mix (in %) 16000 45% 43% 14000 40% 38% 37% 37% 34% 33% 12000 35% 35% 30% 32% 33% 32% 33% 10000 ABG 31% ABG CBG 25% 8000 CBG CIG 20% 18% 18% 18% 6000 17% 16% CIG 16% PBG 15% PBG 4000 14% 15% 16% 10% 12% 13% 10% 2000 5% 0 0% Mar-12 Mar-13 Mar-14 Ma
Slide 28: Investment Portfolio
Investment Portfolio Investments Outstanding (Rs. In crore) Portfolio wise Investment 15000 HFT 0.00% AFS 30.17% 14500 14955 HTM 69.83% 14502 14000 Mar'16 Mar'17 Modified Duration Investment Portfolio HTM AFS HFT Total 4.53 2.20 0.00 3.86 SLR Shares Debentures/CD/MF/CP Yield on Investment 0.83% 12.9
Slide 29: Stress Accounts
Stress Accounts Rs. in Crore SDR Outstanding (3 accounts) 104.64 5/25 ( 1 Account ) 76.78 S4A Accounts (1 Account) 54.10 Sale to ARC in FY 16-17 Nil 29
Slide 30: Sector Wise Restructured Advances
Sector Wise Restructured Advances AMOUNT (%) to Total S.NO SECTOR (Rs. in crore) Restructured Advances Mar-17 Mar-16 Mar-17 Mar-16 1 AGRICULTURE 7.63 15.82 0.91 1.17 2 INFRASTRUCTURE 416.36 807.02 49.46 59.56 3 TEXTILES 119.88 205.01 14.24 15.13 4 AUTO LOANS 32.47 0.73 3.86 0.06 EDUCATIONAL 5 0.97 0
Slide 31: Movement of Restructured Assets
Movement of Restructured Assets Units: Rs crore Apr-16 to Mar-17 Jan-17 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] 117 1354.90 76 1279.10 Fresh Restructuring - [B] 2 1.75 0 0.00 Addition of faci
Slide 32: NPA Position
NPA Position Units: Rs crore 1,484 1,022 903 Gross NPA 702 Net NPA 511 216 306 565 638 1,033 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 2.53 1.68 1.44 0.79 3.58 Net NPA % 0.55 2.66 Gross NPA % 2.29 1.79 1.30 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Provision Coverage 82.46% 78.49% 68.26% 67.06 % 57.83 % Ratio 32
Slide 33: Movement of NPA
Movement of NPA (Rs. in crore) Apr 16 –Mar 17 Apr 15 –Mar 16 Particulars Movement of Gross NPAs Opening Balance 511.18 677.78 Additions during the period 1,330.83 1,133.41 Reductions during the period 358.20 1,300.01 Closing Balance 1,483.81 511.18 Movement of Net NPAs Opening Balance 216.17 280.97
Slide 34: Breakup of Provisions (Other than Tax)
Breakup of Provisions (Other than Tax) Units: Rs crore Particulars Q4 FY 16-17 Q4 FY 15-16 Total Provisions 217 50 NPA 204 116 Standard Assets (-)2 5 Restructured (-)4 (-)32 Investment 19 (-)20 Others -- (-)19 34
Slide 35: Breakup of Provisions (Other than Tax)
Breakup of Provisions (Other than Tax) Units: Rs crore Particulars 12M FY 16-17 12M FY 15-16 Total Provisions 688 392 NPA 671 418 Standard Assets (-)11 30 Restructured (-)12 (-)61 Investment 30 (-)1 Others 10 6 35
Slide 36: Growth in Branch & ATM Network
Growth in Branch & ATM Network Branch network & ATM network 800 2200 700 1747 1616 1645 1655 1700 600 1276 500 1200 400 825 700 300 488 375 200 200 100 335 369 451 551 572 629 667 711 0 -300 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Branch ATM 36
Slide 37: Branch Network - Diversified Across the Country
Branch Network - Diversified Across the Country Geographical spread of branches (FY 2016-17) State /UT Mar -17 - Branches (Nos) TAMILNADU 377 Region, Number of branches 18 Divisional Offices spread across the country ANDHRA PRADESH 105 TELANGANA 51 South 606 North 39 KARNATAKA 49 MAHARASHTRA 27 East
Slide 38: Leveraging Technology – Alternate Banking Channels
Leveraging Technology – Alternate Banking Channels Rising market share in RTGS transactions POS Terminals 22068 21000 1.20% 1.14% 16000 13937 1.10% 0.99% 10428 10797 0.94% 11000 8434 9234 10157 1.00% 0.91% 0.84% 5844 0.90% 6000 3399 0.79% 0.80% 1000 0.70% 0.60% FY12 FY13 FY14 FY15 FY16 FY17 Series1
Slide 39: 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% 0.91% 10% 8% 13.12% 13.10% 13.56% 6% 11.62% 11.85% 11.26% 4% 2% 0% Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Tier 1 Tier 2
Slide 40: Human Resources
Human Resources Young workforce ( average 33 years)….. … and well qualified work force… …with lower attrition … 37% below 30 yrs of age out of 7,400 employees Others 12% 8.4% 35 34 34 34 6.2% 33 33 33 5.4% 33 4.4% 4.5% 32 32 32 Graduat 32 e 38% PG 2.9% 2.7% 2.2% 31 50% 30 FY10 FY11 FY12 FY13 FY14 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: Smart
Smart