Investor Presentation 30.06.2017
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 and 1750 ATMs as on 30 th June 2017 6 million+ Customer Base 100% CBS since 2005 Full bouquet of e-banking & technology products Top Rating from CRISIL (A1+) and ICRA (A1+) for Short Term Borrowings 3
Q1FY18 Results Snapshot Operating Net Profit Profit Rs.148 crore Rs. 449 crore (↑ 1.1%) ( ↑ 30%) NIM ROA Net NPA 3.76% 0.95% 2.85 % (↑ 24 bps ) 4
Q1FY 18 Results Snapshot Deposits Advances Rs. 54,668 crore Rs. 42,401 crore (↑ 7.8 %) ( ↑ 7.7 % ) CASA Rs. 15,945 crore NII CRAR ( ↑ 29.4 %) Rs. 538 crore 11.71% (Rs. 481 crore) CASA Share 29.2% 5
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 Profit Before Tax 216 216 - Tax 68 70 Net Profit 148 146 1% 6
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 147 28.57% 189 Forex 11 10 10.00% Commissions 161 124 29.84% Other 13 17 38.46% Profit on Sale 47 15 213.33% of Investments 7
Healthy Other Income Profile Growth in other income Fee income consistently contributes ~ 68% of other income 9 100% 7% 7% 12% 12% 13% 14% 16% 17% 5% 5% 4% 4% 7% 0.6 7% 7% 0.4 20% 15% 11% 75% 12% 26% 1 20% 13% 18% 8% 6 2.1 0.5 0.7 0.9 0.9 0.4 0.4 50% 0.7 0.6 1 0.2 0.6 0.9 69% 69% 68% 3 66% 64% 0.4 62% 61% 60% 0.3 0.3 4.8 4.6 0.2 25% 0.1 0.1 0.4 4 0.5 3.4 2.8 2.3 1.8 1.61 0 0% FY11 FY12 FY13 FY14 FY15 FY16 FY17 Jun-17 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Jun-17 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 14.57% to total income Bancassurance for 3 months of FY 2017-18 Third party product sales Trade Finance Retail Asset fees Card fees ― Credit Card ― Debit Card ― Travel Card ― Gift Card 8
Key Ratios (Q1 2017-18) Cost to Income % Net Interest Margin 51.29% 4.50% 55% 4.04% 50% 46.31% 46.19% 42.00% 4.00% 45% 3.76% 3.68% 3.61% 37.55% 3.52% 40% 3.50% 35% 30% 3.00% 25% Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Return on Assets Return on Equity 1.60% 20% 17.28% 1.39% 1.30% 15% 12.34% 11.71% 10.34% 1.00% 9.47% 0.95% 1.00% 10% 0.86% 0.74% 5% 0.70% Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 9
Key Ratios (Comparative) Net Interest Margin Cost to income (%) 4.00 3.70 54.67 60 53.91 3.43 47.63 47.31 3.76 3.50 44.99 50 42.73 42.00 3.08 3.03 2.91 40 3.00 2.64 30 2.50 20 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Jun-17 2.00 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Jun-17 Cost to income (%) Net Interest Margin Return on Equity Return on Assets 18.53 20 17.84 2 1.56 12.92 1.35 12.41 12.03 11.71 10.93 1.03 1.00 0.95 0.88 0.86 10 1 0 0 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 Return on Assets Return on Equity 10
Key Ratios (Quarter) Q1 FY 16-17 Q1 FY 17-18 Particulars Cost of Deposits 6.97% 6.15% 11.36% Yield on Advances 10.58% 6.93% Cost of Funds 6.06% 9.22% 9.86% Yield on Funds 42.00% Cost Income Ratio 46.19% 3.16% Spread 2.93% 3.76% NIM 3.52% 12.61 Business/Emp. (Rs crore) 12.47 Profit/Emp. (Rs lakh) 7.69 8.11 7694 7220 No. of Employees 11
Profitability Metrics (Quarterly) 5.50% 5.08% 4.86% 5.00% 4.61% 4.43% 4.24% 4.39% 4.31% 4.50% 4.25% 4.25% 4.04% 3.76% 4.00% 3.68% 3.61% 3.55% 3.52% 3.47% 3.39% 3.30% 3.50% 3.49% 3.00% 3.17% 3.16% 3.01% 2.99% 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 Dec-16 Mar-17 Jun-17 Spread (Deposits and Advances) Net Interest Margin Spread on Funds 12
Profitability Metrics (Comparative) 4.74 12.00 4.43 4.08 3.99 4.55 4.05 4.26 4.60 4.30 4.47 10.00 4.11 4.18 4.11 4.04 8.00 3.62 3.76 3.70 3.48 6.00 3.45 3.39 3.43 3.23 3.03 3.08 3.06 2.91 2.95 2.64 4.00 3.32 3.24 3.16 3.10 3.04 2.74 2.71 2.00 2.42 2.41 2.33 2.27 2.17 2.09 2.02 0.00 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 Jun-17 Spread on Funds Net Interest Margin Spread (Deposit & Advances) 13
Deposits Units: Rs crore Particulars YoY % FY 16-17 FY 17 -18 5466 Total Deposits 50,715 7.79% 54,668 CASA 12,318 29.44% 15,945 CASA Mix % 24.29% 29.17% Demand 4,249 38.17% 5,871 Savings 8,069 24.85% 10,074 Term Deposits 38,723 38,397 0.85% 14
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 deposits Breakup of deposits (FY18) Savings 13% 13% Deposits, 12% 12% 11% 18% 9% 9% 7% 6% Demand Deposits, Term 11% Deposits, 71% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY 17 Jun-17 Concentration of top 20 depositors % 15
Deposit Mix Break-up of deposit base (in %) 100% 80% 72% 71% 76% 77% 77% 60% 79% 78% 81% 81% 40% 9% 11% 20% 11% 8% 10% 14% 8% 8% 8% 19% 18% 14% 15% 13% 13% 13% 11% 11% 0% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Jun-17 Savings Deposits Demand Deposits Time Deposits Growth in demand deposits since 2010 Consistent growth in Savings Deposits since FY10 70 120 59 101 100 60 100 49 76 50 40 80 63 36 35 40 31 54 60 44 25 25 30 38 21 33 40 25 20 20 10 0 0 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Jun-17 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Jun-17 Demand Deposits Balance (Rs. bn) Savings Deposits Balance (Rs. bn) 16
Advances Units: Rs crore Particulars YoY % FY 16-17 FY 17-18 Advances 39,381 42,401 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 6,363 6,431 1.07% (included in other segments) 17
Granular Loan Portfolio Loan book break up in FY17-18 Retail, 16% Agriculture, 18% Corporate, 32% Commercial, 34% Rs.282 Bn Commercial book Corporate book break-up* break-up* > Rs. 1000 < Rs. 250 < 50 mn, > 250 mn, mn, 32% mn, 17% 79% 1% >= 100 mn < 250 mn, 9% >= 50 mn < Rs.250mn Rs. 500 100 mn, - 500 mn, mn - 1000 11% 28% mn, 23% • • Average ticket size of Rs. 349.43 Mn Average ticket size of Rs 4.67 Mn • • 68% of corporate exposure less than 78% of commercial loans are less than Rs. 1 Bn Rs. 50 Mn 18 Commercial Loans : Exposures upto Rs. 250 Mn Corporate Loans : Exposures above Rs. 250 Mn
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% 30% CEMENT 3% ALL ENGINEERING 5% TRADING 16% TEXTILES 30% CHEMICALS AND CHEMICALS PRODUCTS 4% FOOD PROCESSING Personal 4% JEWEL LOAN Segment Loans IRON & STEEL 10% 15% 13% Working capital focus enables quicker repricing of loans Low concentration: Top 20 borrowers (% of overall loans) 30% 26% 100% 17% 21% 21% 20% 32% 25% 80% 20% 60% 20% 17% 40% 80% 79% 79% 83% 68% 15% 12% 12% 11% 10% 10% 20% 10% 0% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Jun-17 5% Working Capital Loans Term Loans 0% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 19
Advances – Category wise Growth Over Amount (Rs. in crore) % to Total Advance Jun-16 Particulars 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 30.25 SECTOR 30.62 68 1.00% 6,431 6,363 6,159 16.16 15.17 JEWEL LOAN 14.86 207 2.00% 5,560 5,353 4,847 13.59 13.11 PERSONAL LOANS @ 11.70 16.63 1,275 10.00% 6,939 5,664 6,889 14.38 16.37 TRADING 231 2.00% 1,595 1,364 1,592 3.46 3.76 BILLS 3.84 -108 -1.00% 1,093 1,201 1,159 3.05 2.58 NBFC 2.80 806 7.00% 7,956 7,150 8,101 18.16 18.76 OTHER EXPOSURES** 19.55 100.00 3,020 25.00% 42,401 39,381 41,435 100.00 100.00 TOTAL ADVANCES @ Vehicle, Housing, Deposit loans * includes Commercial Real estate, Capital Market and exposure to other service sectors, etc. 20
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