Investor Presentation 31.03.2017 Awards and Accolades IDRBT Award - PowerPoint PPT Presentation

Investor Presentation 31.03.2017

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 Private Sector Bank – Priority Sector Lending on 31.08.2016  FE India’s Best Banks Award, KVB is the winner in Credit Quality category for the year 2013-14 received on 01.09.2016  Karur Vysya Bank has been selected as The Best Bank at National Level under Private Sector category for the year 2015- 2016 in the State Forum of Bankers’ Clubs Kerala (SFBCK) Banking Excellence Award 2016 on 11.12.2016  Karur Vysya Bank has received NSDL star performer award for the top performer in new accounts opened under Bank Category - 2 nd position on 24.12.2016  Award for Solar irrigation pump scheme – Ministry of New & Renewable Energy, Government of India has selected Karur Vysya Bank for 1 st prize for having achieved highest disbursement under the category Solar irrigation pumps – Off grid & decentralized solar applications programe for the FY 2015-16 on 24.01.2017.  Business Today KPMG Award – Best Small Bank for FY 2015-16 3

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 branches and 1747 ATMs as on 31 st March 2017  6 million+ Customer Base  100% CBS since 2005 and all latest technology products are available  Top Rating from CRISIL (A1+) and ICRA (A1+) for Short Term Borrowings 4

Q4FY17 Results Snapshot Operating Net Profit Profit Rs.218 crore Rs.507 crore (↑ 58%) ( ↑ 57%) NIM ROA 4.04% Net NPA 1.39% (Q4FY16 – 2.53 % (Q4FY16 – 0.97% ) 3.55% ) 5

FY17 Results Snapshot CASA Operating Rs. 14,889 Deposits Advances Net Profit crore Profit Rs. 53,700 Rs. 41,435 Rs. 606 crore ( ↑ 27.53 %) Rs. 1,571 crore crore crore (↑ 7 % ) (↑ 7.23 %) ( ↑ 4.96 % ) ( ↑ 21 %) CASA Share 27.73% NIM ROE NII ROA CRAR 3.70% 12.03 % Rs.2073 crore 1.00% 12.54% (FY16 – 12.41 %) (Rs.1781 crore ) (FY16 – 3.43% ) (FY16 – 1.03% ) 6

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 -149% Profit Before Tax 290 272 7% Tax 72 134 -46% Net Profit 218 138 58% 7

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 Tax 883 912 -3% Tax 277 344 -19% Net Profit 606 568 7% 8

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 9 22.22% 11 Commissions 107 18.69% 127 Other 39 (-)56.41% 17 Profit on Sale 78 11 609.09% of Investments 9

Breakup of Other Income (FY) Units: Rs crore Particulars FY 16-17 FY 15-16 YoY % Total 10.61% 782 707 Fee Income 577 (-)5.87% 613 Forex (-)30.91% 55 38 Commissions 4.34% 460 480 Other (-)39.80% 98 59 Profit on Sale of 205 94 118.09% Investments 10

Healthy Other Income Profile Growth in other income Fee income consistently contributes ~ 74% of other income 9 100% 7% 12% 12% 13% 14% 16% 17% 90% 5% 8 4% 0.6 4% 7% 7% 7% 80% 7 0.4 11% 15% 12% 26% 1 20% 13% 70% 6 18% 8% 2.1 0.5 0.7 0.9 60% 5 0.9 0.4 0.4 0.7 50% 0.6 4 1 0.2 40% 0.6 0.9 3 0.4 69% 69% 66% 64% 0.3 0.3 4.8 62% 61% 30% 60% 0.1 4.6 2 0.4 4 3.4 2.8 20% 2.3 1 1.8 10% 0 0% FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Fee Income (Rs. bn) Treasury (Rs. bn) Forex Gain (Rs. bn) Others (Rs. bn) Fee Income % Treasury % Forex Gain % Others %  Diverse sources of non – interest income KVB’s Fee income streams :  Banking charges (Corporate, Commercial & Retail)  Non – interest income contributed 13.91% to total income  Bancassurance for FY 2016-17  Third party product sales  Trade Finance  Retail Asset fees  Card fees ― Credit Card ― Debit Card ― Travel Card ― Gift Card 11

Key Ratios (Q4 2016-17) Cost to Income % Net Interest Margin 4.50% 55% 51.29% 49.58% 46.31% 50% 4.04% 46.19% 4.00% 45% 3.68% 37.55% 3.61% 3.55% 40% 3.52% 3.50% 35% 30% 3.00% 25% 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 1.60% 20% 1.39% 17.28% 1.30% 15% 12.34% 12.07% 10.34% 1.00% 0.97% 9.47% 1.00% 10% 0.86% 0.74% 5% 0.70% Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 12

Key Ratios (FY 2016-17) Cost to Income % Net Interest Margin 4.00% 60% 3.70% 3.68% 3.80% 3.60% 3.52% 51.29% 3.43% 3.60% 46.31% 47.63% 50% 3.40% 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 1.40% 20% 1.20% 1.03% 15% 1.00% 1.00% 12.34% 12.03% 12.03% 1.00% 0.93% 11.16% 10.35% 0.87% 10% 0.80% 5% 0.60% Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 13

Key Ratios (Quarter) Q4 FY 15-16 Q4 FY 16-17 Particulars Cost of Deposits 7.06% 6.15% 11.31% Yield on Advances 11.23% 6.88% Cost of Funds 6.03% 9.52% 9.87% Yield on Funds 37.55% Cost Income Ratio 49.58% 3.49% Spread 2.99% 4.04% NIM 3.55% 12.85 Business/Emp. (Rs crore) 12.41 Profit/Emp. (Rs lakh) 11.73 7.65 7,400 7,211 No. of Employees 14

Key Ratios (FY) Particulars FY 16-17 FY 15-16 6.60% Cost of Deposits 7.40% 11.34% 11.67% Yield on Advances 6.52% 7.38% Cost of Funds 9.62% Yield on Funds 10.09% 44.99% 47.63% Cost Income Ratio 3.10% 2.71% Spread NIM 3.70% 3.43% Business/Emp. (Rs crore) 12.85 12.41 Profit/Emp. (Rs lakh) 8.19 7.87 No. of Employees 7,211 7,400 15

Profitability Metrics Consistency in spreads (Quarterly) 5.50% 5.08% 4.86% 5.00% 4.61% 4.39% 4.31% 4.29% 4.24% 4.25% 4.25% 4.50% 3.93% 4.23% 4.11% 4.08% 4.04% 4.00% 3.68% 3.61% 3.55% 3.52% 3.47% 3.39% 3.30% 3.50% 3.15% 3.08% 3.49% 2.67% 2.73% 3.00% 2.67% 3.17% 3.01% 2.99% 2.90% 2.50% 2.76% 2.65% 2.57% 2.43% 2.40% 2.00% 2.18% 2.09% 1.97% 1.50% 1.00% Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Spread (Deposits and Advances) Net Interest Margin Spread on Funds 16

Profitability Metrics Net Interest Margin (%) over the years 5.50% 5.00% 4.74% 4.60% 4.55% 4.47% 4.30% 4.50% 4.26% 4.08% 4.18% 4.11% 4.11% 4.05% 4.04% 3.99% 4.00% 3.62% 3.70% 3.48% 3.45% 3.43% 3.39% 3.50% 3.23% 3.08% 3.06% 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% 2.41% 2.33% 2.00% 2.27% 2.17% 2.09% 2.02% 1.50% 1.00% Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Spread (Deposits and Advances) Net Interest Margin Spread on Funds 17

Deposits Units: Rs crore Particulars YoY % FY 15-16 FY 16 -17 Total Deposits 50,079 7.23% 53,700 CASA 11,675 27.53% 14,889 CASA Mix % 23.30% 27.73% Demand 4,027 22.20% 4,921 Savings 7,648 30.33% 9,968 Term Deposits 38,811 38,404 1.06% 18

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 deposits Breakup of deposits (FY17) Savings 13% 13% Deposits, 12% 12% 11% 19% 9% 9% 7% Demand Term Deposits, 9% Deposits, 72% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY 17 Concentration of top 20 depositors % 19

Deposit Mix Break-up of deposit base (in %) 100% 80% 72% 76% 77% 77% 60% 79% 78% 81% 81% 40% 9% 20% 11% 8% 10% 14% 8% 8% 8% 19% 15% 13% 13% 13% 14% 11% 11% 0% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Savings Deposits Demand Deposits Time Deposits Growth in demand deposits since 2010 Consistent growth in Savings Deposits since FY10 60 120 100 49 50 100 40 76 36 35 40 80 63 31 54 25 25 30 60 44 21 38 33 20 40 25 10 20 0 0 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Demand Deposits Balance (Rs. bn) Savings Deposits Balance (Rs. bn) 20

Advances Units: Rs crore Particulars YoY % FY 15-16 FY 16-17 Advances 39,476 41,435 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 6,359 6,159 (-)3.14% (included in other segments) 21