Investor Presentation 30.06.2020 DISCLAIMER This presentation has - - PowerPoint PPT Presentation

Investor Presentation 30.06.2020

DISCLAIMER This presentation has been prepared by Karur Vysya Bank Limited (“the Bank”) solely by the Bank for information purposes only. This presentation is not a complete description of the Bank and the information contained herein is only current as of its date and has not been verified by anyone else. All financial numbers are based on the Audited Financials or the Reviewed Financial results or based on Management estimates. Figures for the previous period(s) have been regrouped wherever necessary; totals in columns / rows may not agree due to rounding off. The accuracy of this presentation is not guaranteed, it may be incomplete or condensed and it may not contain all material information concerning the Bank. This presentation does not constitute an offer or invitation, directly or indirectly, to purchase or subscribe for any securities of the Bank by any person / entity based in India or in any

• ther country. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any

securities. This presentation may contain statements that constitute forward-looking statements. All forward looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated. Factors that could cause actual results to differ materially include, inter-alia, changes or developments in the Bank’s business, political, economic, legal and social conditions. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. Except as otherwise noted, all of the information contained herein is indicative and is based on management information, current plans and estimates / projections. Any opinion, estimate or projection in the presentation constitutes a judgment as of the date of this presentation and there can be no assurance that future results or events will be consistent with any such opinion, estimate or projection. No representation or warranty, express or implied, is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information or

• pinions contained in this presentation. Further, past performance is not necessarily indicative of future results. Anyone placing reliance on the information contained in this

presentation or any other communication by the Bank does so at his / her / their own risk. Neither the Bank nor anyone else shall be liable for any loss or damage caused pursuant to any act or omission based on or in reliance upon the information contained in the presentation. The Bank may, at its sole discretion, alter, modify or otherwise change in any manner the contents of this presentation, without obligation to notify anyone of such change(s). This presentation is not to be distributed, redistributed, copied or disseminated in any manner whatsoever, either directly or indirectly. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.

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KVB – a unique franchise!

Unmatched presence in India’s fast growing hinterland

Customer service excellence the differentiator

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15 25

51

4 6

1 1

1 5 1 14 6

420

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59 121

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Category

• No. of Branches

Metro 200 Urban 155 Semi Urban 297 Rural 127 Total 779

Category 30.06.20 31.03.20 31.03.19 Branches 779 779 778 ATM's + Cash Recyclers 2,226 2,224 2,179

26% 20% 38% 16% Metro Urban Semi Urban Rural

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Contents

Q1 Performance Highlights

Portfolio Performance New Initiatives Other Parameters

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Results Snapshot

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Financial Indicators – 30.06.2020

Parameter Amount YoY Growth % Total Deposits 60,065 (3) Gross Advances 48,617 (1) Total Business 1,08,682 (2) Total Income 879 3 Operating Profit 474 7 Net Profit 106 44

Other Business Parameters

Gross NPA 4,056 Net NPA 1,585 Gross NPA % 8.34 Net NPA % 3.44 PCR % 72.74 Basel III Capital 7,210 CRAR % 18.14 Tier I % 16.13 Tier II % 2.01 NIM % 3.36 RoA % (annualised) 0.59

(Rs. crore)

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Particulars Jun 20 Jun 19 Y-o-Y (%) Capital & Liabilities Capital 160 160

• Reserves and Surplus

6,546 6,336 3 Deposits 60,065 61,711 (3) Borrowings 1,041 2,705 (61) Other Liabilities and Provisions 1,568 1,503 4 Total 69,380 72,415 (4) Assets Cash and Balances with RBI 2,630 3,278 (20) Balances with Banks 1,546 2,865 (46) Investments (Net) 17,033 16,983

• Advances (Net)

46,131 46,982 (2) Fixed Assets 560 571 (2) Other Assets 1,480 1,736 (15) Total 69,380 72,415 (4)

Balance Sheet

(Rs. crore)

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(Rs. crore)

Business Profile

Particulars Jun 20 Jun 19 Y-o-Y % Total Deposits 60,065 61,711 (3) Demand 6,179 6,241 (1) Savings 13,734 12,099 14 CASA 19,913 18,340 9 Term Deposits 40,152 43,371 (7) CASA % 33 30 Gross Advances 48,617 49,182 (1) Net Advances 46,131 46,982 (2) Total Business 1,08,682 1,10,893 (2)

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Investment Portfolio

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Investments (Rs. crore) Portfolio wise Investment Investment Portfolio

Debentures/CD/MF/CP includes SRs of Rs. 620.05 crore (3.57%)

Duration Yield on Investment

* AFS Duration Dec 19 was 1.30, Mar 20 was 1.52 ; HTM Duration Dec 19 was 3.46, Mar 20 was 3.74 .

AFS* HFT HTM* 1.01

• 4.24

17227 16073 17357

June 19 Mar 20 June 20

68.61% 31.39%

HTM AFS

90.31% 8.93% 0.76%

SLR Debentures/CD/MF/CP Shares

6.97% 6.63% 5.67%

June 19 Mar 20 June 20

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Advances (by value & share)

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(Rs. crore)

Segments ABG – Agri CBG – Commercial (<= Rs. 25 crore) CIG – Corporate (> Rs. 25 crore) PBG* – Personal

* Portfolio inclusive of IBPC

8113 8161 8936 9609 17056 16539 15620 16074 14169 13589 12767 11978 11278 10893 11193 10956 Mar 19 June 19 Mar 20 June 20 ABG CBG CIG PBG

16% 17% 18% 20% 34% 34% 32% 33% 28% 28% 26% 25% 22% 22% 23% 23%

Mar 19 June 19 Mar 20 June 20

ABG CBG CIG PBG

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Capital Adequacy – Basel III

Entire Tier I comprises of CET1 capital, well above the min. requirement of 7.375%

Capital

As at Jun 20 Mar 20 Mar 19 Mar 18 Mar 17 RWA 39,748 41,948 43,714 44,140 40,417 Tier I 6,412 6,404 6,245 6,145 4,790 Tier II 798 798 751 226 278 Total 7,210 7,202 6,996 6,371 5,068

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(Rs. crore)

11.85% 13.92% 14.28% 15.27% 16.13% 0.69% 0.51% 1.72% 1.90% 2.01% 12.54% 14.43% 16.00% 17.17% 18.14%

0.00% 9.50% 19.00%

Mar 17 Mar 18 Mar 19 Mar 20 June 20 Tier I Tier II Total

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Profit and Loss A/c

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Particulars Jun 20 Jun 19 YoY (%) Net Interest Income 562 584 (4) Other Income 317 270 17 Total Income 879 854 3 Operating Expenses 405 409 (1) Operating Profit 474 445 7 Provisions 337 330 2 Credit Related 302 319 (5) Others 35 11

• Profit Before Tax

137 115 18 Tax 31 42 26 Net Profit 106 73 45

(Rs. crore)

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Break Up of Other Income

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Particulars Jun 20 Jun 19 YoY (%) TOTAL NON-INT. INCOME 317 270 17 1) Fee Income 121 168 (28) 2) Investment trading profit 178 67

• 3) Forex Income

5 9

• 4) Others*

13 28

• 5) Profit/(loss) on sale of

land, building, other assets etc.

• (2)
• *Includes recoveries from Written Off A/c’s –

Rs 1 crore (Q1 FY 20-21) & Rs. 1 crore (Q1 FY 19-20)

(Rs. crore)

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Break Up of Operating Expenses

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Particulars Jun 20 Jun 19 YoY (%) Staff Expenses

214 204 5

Of above –

• Prov. for employee retirement benefits

45 40 13

Other Operating Expenses

191 205 (7)

TOTAL OPG. EXPENSES

405 409 (1)

(Rs. crore)

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Key Ratios

14 ^ NIM for Dec 19 includes items of non-recurring nature 3.49% 3.46% 3.33% 3.46% 3.36%

June 19 Sep 19 Dec 19 Mar 20 June 20

NIM^

47.87% 50.67% 54.05% 46.68% 46.09%

June 19 Sep 19 Dec 19 Mar 20 June 20

Cost to Income

0.40% 0.34% 0.08% 0.46% 0.59%

June 19 Sep 19 Dec 19 Mar 20 June 20

ROA

4.49% 3.87% 0.92% 5.07% 6.29%

June 19 Sep 19 Dec 19 Mar 20 June 20

ROE

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Provisions and Contingencies

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Provision for Jun 20 Jun 19 NPA 228 318 Standard Assets 1 (1) Restructured Advances

• 2

Others (incl. NPI) 20 12 COVID-19 Relief Package 73

• Investment Depreciation

15 (1) Total Provisions (excl. Tax) 337 330 Tax Expense 31 42 Total Provisions 368 372

(Rs. crore)

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Vertical Advances Book as on 30.06.2020

Benefited availed book – O/s as on 31.03.2020* Benefit availed book – O/s. as on 24.07.2020 Benefit availed book (Ex Gold Loan) – O/s. as on 24.07.2020

ABG

9,609 2,807 31% 1,826 19% 388 4%

CBG

16,074 12,410 79% 8,868 55% 8,801 55%

CIG

11,978 5,074 40% 5,255 44% 5,255 44%

PBG

10,956 4,840 43% 3,864 35% 3,675 34% Total 48,617 25,130 52% 19,813 41% 18,118 37%

COVID Relief Package – Benefits availed book

(Rs. crore)

*Percentage is based on loan book as on 31.03.2020

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SMA-1 SMA-2 SMA 30+ Moratorium Non Moratorium 0.66% 0.37% 0.22% 0.08% 0.87% 0.45%

Moratorium status as of 24.07.2020

SMA Book (Excluding Gold Loans)

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NPAs & Provisions

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(Rs. crore)

4511 4391 4424 4213 4056 2322 2118 1946 1809 1585 2121 2223 2427 2351 2421 June 19 Sep 19 Dec 19 Mar 20 June 20

Gross NPA Net NPA NPA Provision

4.94 4.50 4.13 3.92 3.44 9.17 8.89 8.92 8.68 8.34

June 19 Sep 19 Dec 19 Mar 20 June 20 Net NPA% Gross NPA%

56.86 59.05 61.82 65.43 68.90 72.74 44.07 47.02 50.62 54.86 55.80 59.69

Mar 19 June 19 Sep 19 Dec 19 Mar 20 June 20 Provision Coverage Ratio % NPA Provision on Gross NPA %

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Movement of NPA

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Particulars Apr 20 - Jun 20 Apr 19 - Jun 19 Gross NPAs Opening Balance 4,213 4,450 Additions during the period 40 474 Reductions during the period 198 413 Closing Balance 4,056 4,511 Net NPAs Opening Balance 1,809 2,420 Additions during the period (200) 132 Reductions/write off during the period 24 230 Closing Balance 1,585 2,322 Provisions Opening Balance 2,351 1,961 Provision made during the period 240 361 Write off/Write back of excess provision 170 201 Closing Balance 2,421 2,121

(Rs. crore)

VERTICAL Advances O/s. Jun 20 NPA Additions Q1 NPA Deletions Q1 Total NPA Jun 20 Accretion rate (%) Q1 (annualized) COMMERCIAL 16,074 11 18 1,102 (0.2) RETAIL (Per. Bankg.) 10,956 25 8 234 0.6 AGRICULTURE 9,609 4 3 229

• CORPORATE

11,978

• 169

2,491 (5.6) TOTAL 48,617 40 198 4,056 (1.3)

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Contents

Q1 Performance Highlights

Portfolio Performance

New Initiatives Other Parameters

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Commercial Agriculture Corporate Retail

23% on Total Portfolio 33% on Total Portfolio 25% on Total Portfolio 20% on Total Portfolio

• Business

Partnerships established

• High Yield contracts
• Controlled Delinquencies
• Dedicated Business Owners
• Risk Rate Progressing
• Improved Asset Quality
• Collection mechanisms
• Limited Exposure
• Concentrated on Rated A/Cs
• Seamless Recovery measures
• Spared Priority lending
• Dedicated Touch Points
• Business Partnership established
• Rs. 10,956
• Rs. 16,074
• Rs. 11,978
• Rs. 9,609

Portfolio Mix

(Rs. crore)

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Advances Portfolio

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Particulars Jun 20 Jun 19 Y-o-Y Growth % Commercial 16,074 16,539 (3) Retail (Personal Banking)* 10,956 10,893 1 Agriculture 9,609 8,161 18 Corporate 11,978 13,589 (12) Gross Advances 48,617 49,182 (1) Jewel Loans (included above) 9,948 7,890 26 * Retail (ex. IBPC) 10,857 9,793 11

(Rs. crore)

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100 84 81 82 82 60 51 65 43 40 37 36 44 28 100 184 161 168 120 106 88 98 45 59 63 56 43 14 100 117 107 110 94 75 63 76 44 46 45 42 43 23

SMA-1 SMA-2 SMA 30+

100 82 76 75 74 52 44 57 35 33 31 30 37 24 100 180 151 156 109 92 75 85 37 50 53 47 36 12 100 114 101 102 85 65 54 66 36 39 39 35 37 20

SMA-1 SMA-2 SMA 30+

Portfolio Performance Portfolio Outstanding in % , Base Mar.31,2017=100

Portfolio performance Balance in INR , Base Mar.31,2017=100 SMA 1 1.47 % SMA 2 0.35 % SMA 1 (Ex-Gold) 1.02 % SMA 2 (Ex-Gold) 0.30 %

Portfolio performance

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Robust Growth in Retail Segment

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(Rs. crore)

2,330 2,795 3,619 4,548 4,636 965 1,393 1,712 1,683 1,672 921 1,017 1,044 989 963 596 578 625 895 1,014

FY 17 FY 18 FY 19 FY 20 June 20

Housing Mortgage (LAP) Vehicle Jewel Loans

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Retail Portfolio Distribution

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Segment Advances outstanding as at Jun 20 Mar 20 Mar 19 Mar 18 Mar 17 Housing 4,636 4,548 3,619 2,795 2,330 Mortgage (LAP) 1,672 1,683 1,712 1,393 965 Vehicle 963 989 1,044 1,017 921 Jewel Loans 1,014 895 625 578 596 Personal Loans 549 561 424 296 316 Education Loans 201 206 235 261 266 Others* 1,921 2,311 3,620 1,280 946 Total 10,956 11,193 11,278 7,620 6,340 Total Ex IBPC 10,856 10,693 9,228 7,420 6,340

*Includes IBPC of Rs.100 Cr Rs.500 Cr, Rs.2,050 Cr and Rs.200 Cr for Jun 20, Mar 20 , Mar 19 and Mar 18 respectively. (Rs. crore)

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Digital Retail – Origination Volumes

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Average Ticket Size

Jun'19 Sep'19 Dec'19 Mar'20 Jun'20 4266 5821 5739 4955 1174 4320 5570 4370 4060 1256 Disbursed Applications Disbursed Amount (in Million)

1 Mn 1 Mn 0.8 Mn 0.8 Mn 1 .1 Mn

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• Portfolio

~Rs. 10,000 crore

• Standalone Jewel Loan
• utlets initiated
• Digital

Jewel Loan process implemented

Golden Journey

• Jewel Loan Book

at less than Rs. One Crore

• Mar. 2003

June 2020

• Mar. 2010
• Portfolio

stands at Rs. 1,777 crore – a new high

• Towards

New Pinnacle 27

Gold Loans Outstanding As At June 20 Mar 20 Dec 19 Sep 19 June 19 Mar 19 9,948 9,227 8,580 8,130 7,890 7,781

6431 7388 7890 9948

2000 6000 10000 June 17 June 18 June 19 June 20

(Rs. crore)

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Credit Portfolio – other metrics

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• Average ticket

size - Rs. 38 lakh

• ~85% of

commercial loans are less than Rs. 5 crore Short term credit (Working Capital) forms major part of credit portfolio Low concentration : Top 20 borrowers (% of overall loans) Ticket size of Commercial Book

85% 11% 4% < 5 crore >= 5 crore < 10 crore >= 10 crore

10% 8% 7% 7% 7%

FY 17 FY 18 FY 19 FY 20 June 20

79% 80% 75% 76% 77% 21% 20% 25% 24% 23%

FY 17 FY 18 FY 19 FY 20 June 20 Working Capital Loans Term Loans

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100 200 300 400 500 600 700 800 900 1000 JUN 2019 SEP 2019 DEC 2019 MAR 2020 JUN 2020 284 453 768 789 964 169 311 418 373 527 Amount in Crs Submission Disbursement

Digital SME Platform – Origination Volumes

25 Lakhs 26 Lakhs 28 Lakhs 27 Lakhs 10 Lakhs

Average Ticket Size

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Corporate Book (exposure > Rs. 25 crore)

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• Average ticket size Rs. 38 crore
• ~67% of corporate loans are

less than Rs. 100 crore

(Rs. crore)

Standard Corporate advances > 1 Bn

14% 28% 25% 33%

< 25 cr >= 25 cr < 50 cr >= 50 cr < 100 cr >= 100 cr

2992 2244 2322 1891 2211 2304 2540 2733 6.2 4.7 4.6 3.8 4.5 4.6 5.2 5.6

2.0 5.0 8.0 1000 2500 4000 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Amount > 100cr % on advance

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Advances – Composition

Well spread sub-sectorial exposures & diversified industrial exposures

Rs.486 Bn

Breakup of Industrial exposure (Rs.114 Bn)

31 10% 6% 33% 6% 3% 4% 4% 3% 4% 5% 3% 4% 5% 10%

INFRASTRUCTURE POWER TEXTILES IRON & STEEL FOOD PROCESSING CHEMICALS AND CHEMICAL PRODUCTS WOOD & ITS PRODUCT PAPER & ITS PRODUCTS ALL ENGINEERING RUBBER & ITS PRODUCTS CONSTRUCTION TRANSPORT SECTOR GEMS & JEWELLERY OTHERS

MANUFACTURI NG SECTOR 24% JEWEL LOAN 21% PERSONAL SEGMENT LOANS 16% TRADING 14% CRE 6% Agri 2% BILLS 1% NBFC 3% OTHER EXPOSURES 14%

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Advances – Composition

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Particulars Amount % to Total Advance Y-o-Y Growth Jun 20 Jun 19 Jun 20 Jun 19 Amt % Manufacturing 11,354 12,412 23 25 (1,058) (9) Trading 6,822 7,560 14 15 (738) (10) Jewel loan 9,948 7,890 20 16 2,058 26 Personal loans @ 7,660 7,374 16 15 286 4 CRE 3,013 2,754 6 6 259 9 Agri (other than Jewel Loan) 877 1,250 2 3 (373) (30) Bills 634 1,080 1 2 (446) (41) NBFC 1,539 1,802 3 4 (263) (15) Capital market

• 1
• (1)
• Others*

6,770 7,059 14 14 (289) (4) Total Advances 48,617 49,182 100 100 (565) (1)

@ Vehicle, Housing, Deposit loans & Insta Loans *Exposure to other service sectors.

(Rs. crore)

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Manufacturing Sector - Industry Wise

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Industry Amount % to Total Advance Y-o-Y Growth Jun 20 Jun 19 Jun 20 Jun 19 Amount % Textile 3,750 3,876 7.7 7.9 (126) (3) Infrastructure 1,835 2,056 3.8 4.2 (221) (11) Basic Metal & Metal Products 708 875 1.5 1.8 (167) (19) Food Processing 355 587 0.7 1.2 (232) (40) Gems & Jewelry 590 672 1.2 1.4 (82) (12) All Engineering 411 463 0.8 0.9 (52) (11) Chemical & Chemical Products 441 475 0.9 1.0 (34) (7) Rubber and Plastic Products 561 574 1.2 1.2 (13) (2) Construction 346 426 0.7 0.9 (80) (19) Wood & Wood Products 411 473 0.8 1.0 (62) (13) Transport Sector 447 444 0.9 0.9 3 1 Paper & Paper Products 387 328 0.8 0.7 59 18 Cement & Cement products 244 247 0.5 0.5 (3) (1) Other Products 868 917 1.8 1.8 (49) (5) TOTAL 11,354 12,412 23.3 25.2 (1,058) (9)

(Rs. crore)

Other industries include : beverages & tobacco, mining & quarrying, petroleum, glass & glassware, leather& leather products, etc .

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Infrastructure Advances

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Infrastructure Amount O/s % to Total Advance Y-o-Y Growth Jun 20 Jun 19 Jun 20 Jun 19 Amt % Power 644 653 1.3 1.3 (9) (1) Road 320 483 0.7 1.0 (163) (34) Infra Others 871 920 1.8 1.9 (49) (5) TOTAL 1,835 2,056 3.8 4.2 (221) (11)

Power Sector Exposure Ownership Jun 20 Jun 19 Government 333 353 Private 311 300 TOTAL 644 653

(Rs. crore)

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Sector-wise Restructured Advances

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• S. N.

SECTOR Amount Jun 20 Jun 19 1 Textile 62.06 13.08 2 Cement & Cement Products 26.05

• 3 Food & Food Processing

19.12 36.55 4 Wood & Wood Products 16.62 5.77 5 Agriculture 4.71 4.23 6 All Engineering 3.68 3.43 7 Chemical & chemical Products 1.10 7.06 8 Others 63.81 65.87 TOTAL 197.15 135.99 % to Total Advances 0.41 0.28

(Rs. crore)

3.11 9.62 5.19 26.88 4.24 2.52 48.44

% to Total Restructured Advances Jun-19

Agri Textiles Chemical & its products Food Processing Wood & its Products All Engineering Others 2.39 31.48 0.56 9.70 13.21 8.43 1.87 32.37

% to Total Restructured Advances Jun -20

Agri Textiles Chemical & its products Food Processing Cement & its products Wood & its Products All Engineering Others

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Stressed Book Analysis

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(Rs. crore)

Movement of Restructured Advances

Particulars Apr 20 to Jun 20 Apr 19 to Jun 19 A/c’s Amt. A/c’s Amt.

• A. Position at the beginning of

the period 73 193.29 34 72.09

• B. Addition during the period

2 9.98 29 66.80

• C. Additions in existing A/c’s
• 5.96
• 1.23
• D. Addition through

upgradation from NPA 1 0.70

• E. Accounts closed during the

period

• 0.49
• 0.86
• F. Accounts ceasing to attract

higher provision (upgradation)

• G. Recoveries during the

period

• 9.32
• 1.33
• H. Slippages during the period

2 2.98 2 1.94 Position at the end of the period A+B+C+D-(E+F+G+H) 74 197.15 61 135.99 136 164 203 193 197 2322 2118 1946 1809 1585 361 446 524 546 543 3.89 3.72 3.67 3.73 3.35

0.00 2.50 5.00 1000 2000 3000 June 19 Sep 19 Dec 19 Mar 20 June 20 Std Restructured Assets Net NPA Net SR % of Total Assets

2728 2548 2819 2673 2325

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Security Coverage

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Nature of security 30.06.20 Exposure backed by - Letter of Credit 123 Liquid Assets ^ 10,678 Vehicles 2,614 Commodities 202 Total (1) 13,617 Exposure secured by Immovable Property (% Coverage) > 100% 22,940 90% to <100% 8,326 75% to <90% 1,747 50% to <75% 3,681 <50% 2,482 Total (2) 39,176 Exposure without Immovable property as security Corporate, Consortium, Government, IBPC etc. 1,667 Unsecured Exposure 462 Total (3) 2,129 Total Risk Assets outstanding – Fund and Non Funded (1+2+3)* 54,922

* Total risk assets including technical write off accounts ^ Liquid Assets - Cash, Jewels, NSC/Insurance policies & other liquid assets Coverage defined as (Value of Security)/Loan Principal O/s; & is based on available valuation.

(Rs. crore)

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Retail Liability Franchise : Granular & Sticky

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Low concentration of Deposits  Term deposits are primarily retail deposits  95% of term deposits are < Rs.5 Cr Low dependence on wholesale deposits

66% 21% 8% 5% < Rs.15 Lakhs Rs.15 Lakhs-Rs.1 Cr Rs.1 Cr-Rs.5 Cr > Rs.5 Cr 7% 6% 6% 6% 6%

FY 17 FY 18 FY 19 FY 20 June 20

Concentration of Top 20 depositors % 67% 10% 23%

Term Deposits Demand Deposits Savings Deposits

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39

Contents

Q1 Performance Highlights Portfolio Performance

New Initiatives

Other Parameters

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Digital Banking - DLite

@ IMPS, RTGS, NEFT, UPI, Bharat QR, Recharges

Acquisition

• Saving Account
• Term Deposit
• non-life & Health Insurance

Loan Booking

• Jewel Loan

Customer Maintenance

• Manage Profile, Nominee,

Locker, Cheque book & Cards

Manage Payments

• Secured Fund

Transfers/Payments@

• Recharge DTH, Fastag & etc.,

Demat Services

• Manage Demat accounts
• e-ASBA

RD Module

Scheduled* Aug’20

V-KYC

Scheduled* Aug’20

Merchant Lobby

Scheduled* Q2, FY20-21

Retail Credit Card,

Scheduled* Q3, FY20-21

Loan Payment

Scheduled* Q3, FY20-21

Insurance

(Online

Integration) Scheduled* Q4, FY20-21

*Scheduled dates are provided based on information available at this time, these are subject to change

40

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Adoption of Video KYC

* V-CIP, Video based Customer Identification Process

41

• To

have expedient customer boarding as well regulatory assent, we are in verge of V-CIP*

• Facilitates for New-KYC as

well Re-KYC

• Will reduce both TAT &

Cost on acquisition.

• High technologies of AI /

Face Matching Tools are used to secure storage and Impenetrable security

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New Initiatives

Digital Savings A/c with e-Sign Q2, FY20-21

Q2, FY20-21 Q2, FY20-21 Q3, FY20-21

Digital Current A/c with e-Sign e-Mandates automation Currency Chest automation

Schedules ahead

42

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Customer

Digital Nervous System, providing the strong backbone to support aggressive growth initiatives

Digital initiatives enabling accelerated growth in customer acquisition and engagement

Expense Management & Re-engineering

• Demand Aggregation & Demand Management
• Vendor Consolidation, Risk & Performance Management
• Consumption Items & Rates - Standardisation & Cataloguing
• Total cost of ownership
• Activity Elimination, Activity Automation

Business Planning & Analytics : Focus at / on -

• Business Segment and Cost Center level
• Expense line level – Comprehensive vs Anecdotal
• Revenue to Expense line dependency
• Micro (constituent components) & Macro (Business) Level
• Variances: Budget vs Actual / Revenue vs Expense Drivers
• Business and Branch level Monthly, Quarterly Profitability

Expense Accounting & Financial Reporting :

• Policy Enabler, Compliance enforcement to Policy / Regulatory
• Independent accounting and payment with enhanced control

framework

• Visibility on “Off Contract” and “Off Budgetary” Spend
• Provisioning accuracy and timeliness
• Financial Reporting – Accuracy, Agility, Real-Time

Expense Management Center – A key enabler to our Digital journey

43

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44

Contents

Q1 Performance Highlights Portfolio Performance New Initiatives

Other Parameters

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Business Growth

45 (Rs. thousand crore) 41 46 51 49 49 54 57 60 59 60

95 103 111 108 109 40 80 120 40 80 120 FY 17 FY 18 FY 19 FY 20 June 20 Gross Advances Deposit Business

41 45 49 46 46

66% 67% 71% 68% 67%

10 20 30 40 50 50% 75% FY 17 FY 18 FY 19 FY 20 June 20 net Advances Advances as a % of Total Assets

Loans and Advances

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CASA Growth

46 (Rs. thousand crore) 10 11 12 13 14 5 6 6 6 6

5 10 15 20 FY 17 FY 18 FY 19 FY 20 June 20 Savings Demand

15 17 18 19 20 28% 29% 30% 31% 33%

25% 30% 35% 5 10 15 20 FY 17 FY 18 FY 19 FY 20 June 20 CASA CASA Mix

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Income – Expenses – Op. Profit

(Rs. crore)

47

• Opg. Profit Margin

584 596 577 591 562

325 650 June 19 Sep 19 Dec 19 Mar 20 June 20

Net Interest Income

270 278 260 347 317

200 400 June 19 Sep 19 Dec 19 Mar 20 June 20

Non Interest Income

204 213 225 215 214 205 230 227 223 191

250 500 June 19 Sep 19 Dec 19 Mar 20 June 20

Operating Expenses

Staff Cost Other Op.Exp

445 431 385 500 474 2.4 2.4 2.1 2.7 2.7

1.0 2.0 3.0 250 500 June 19 Sep 19 Dec 19 Mar 20 June 20 Operating Profit Operating Profit Margin% on Avg. Assets

www.kvb.co.in

Key Ratios

48

Particulars Jun 20 Jun 19 Cost of Deposits (%) 5.37 5.82 Yield on Advances (%) 9.32 9.61 Cost of Funds (%) 5.42 5.88 Yield on Funds (%) 8.01 8.60 NIM (%) 3.36 3.49 Spread (%) 2.59 2.71 Cost to Income Ratio (%) 46.09 47.87 Business/Emp. (Rs. Crore) 13.87 14.25 Profit/Emp. (Rs. Lakh) 5.39 3.75

3.79% 3.99% 3.75% 3.90% 3.95% 3.49% 3.46% 3.33% 3.46% 3.36% 2.71% 2.64% 2.55% 2.66% 2.59%

June 19 Sep 19 Dec 19 Mar 20 June 20 Spread(Deposits and Advances) NIM Spread on Funds

www.kvb.co.in Mobile transactions volume Market share in RTGS transactions POS Terminals Cash Deposit Machines

Leveraging Technology - Delivery Channels

49 1.14% 1.07% 1.04% 1.19% 1.14% Mar 17 Mar 18 Mar 19 Mar 20 June 20

Share of RTGS transactions (by volume)

22068 22873 21959 15534 15092

Mar 17 Mar 18 Mar 19 Mar 20 June 20

POS TERMINALS

146 222 174

FY 19 FY 20 June-20 * Mobile Banking (Nos in lakh)

*Annualized 444 533 534 565 566

Mar 17 Mar 18 Mar 19 Mar 20 June 20

Cash Deposit Machines (Nos.)

Cash Deposit Machines (Nos.)

www.kvb.co.in Young workforce….. … number of employees… … lower attrition … … leading to improved productivity

Human Resources

50

33 33 34 34 35 FY 17 FY 18 FY 19 FY 20 Jun-20

2.2% 3.9% 2.7% 3.8% 0.5%

FY 17 FY 18 FY 19 FY 20 Jun-20

7400 7956 7663 7935 7834

FY 17 FY 18 FY 19 FY 20 Jun-20

12.85 12.92 14.42 13.56 13.87

FY 17 FY 18 FY 19 FY 20 Jun-20 Business per employee (Rs. Crore)

134 130 142 138 140

FY 17 FY 18 FY 19 FY 20 Jun-20 Business per branch (Rs. Crore)

8.2 4.4 2.8 3.0 5.4

FY 17 FY 18 FY 19 FY 20 Jun-20 Profit per employee (Rs. Lakhs) *Profit per employee for June 20 is annualized

www.kvb.co.in

A Decade of Progress

51

Year

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 Paid up Capital 94 107 107 107 122 122 122 145 160 160 Reserves 2,020 2,601 2,978 3,219 4,124 4,451 4,723 6,066 6,205 6,440 Owned funds 2,114 2,708 3,085 3,326 4,246 4,573 4,845 6,211 6,365 6,600 CRAR - Basel II (%) 14.41 14.33 14.41 12.77 14.63 12.26 Basel III (%) 12.60 14.62 12.17 12.54 14.43 16.00 17.17 Deposits 24,722 32,112 38,653 43,758 44,690 50,079 53,700 56,890 59,868 59,075 Advances 18,052 24,205 29,706 34,226 36,691 39,476 41,435 45,973 50,616 48,516 Total Business 42,774 56,317 68,359 77,984 81,381 89,555 95,135 102,863 1,10,484 1,07,591 Total Income 2,482 3,621 4,695 5,680 5,977 6,150 6,405 6,600 6,779 7,145 Operating Profit 600 726 849 838 943 1,303 1,571 1,777 1,711 1,761 Net Profit 416 502 550 430 464 568 606 346 211 235 Dividend (%) 120 140 140 130 130 140 130 30 30

• Branches (No.)

369 451 551 572 629 667 711 790 778 779 EPS (Rs.) 44.90 46.81 51.35 40.08 39.86 46.59 9.95* 4.78 2.64 2.94 Return on Assets (%) 1.71 1.56 1.35 0.86 0.88 1.03 1.00 0.53 0.31 0.32 Book Value(Rs.) 193.04 252.68 287.85 308.91 348.42 375.25 79.51* 85.49 79.56 82.57 No of Employees 4,574 5,673 6,730 7,339 7,197 7,211 7,400 7,956 7,663 7,935 * During the Financial Year 2016-17, one Equity Share face value of Rs.10/- each was subdivided into five Equity Shares of face value Rs.2/- each (Rs. crore)