#1KVB KVB) Karur Vysya Bank Smart way to bank Investor Presentation June 2013 Karur Vysya Bank Smart way to bank#2Operating Profit & Net Profit - June 2013 202.68 318.70 145.95 120.30 Operating Profit • Operating Profit increased by 57.25% from 202.68 crore to 318.72 crore Net Profit Operating Net Profit Profit • Net Profit decreased by 17.57% from 145.95 crore to Jun-12 Jun-13 KVB 2 120.30 crore Karur Vysya Bank Smart way to bank#3Business Performance - June 2013 (in crore) Quarter ended Particulars Y-o-Y Growth Year Growth ended (%) Jun 13 Jun 12 2 (%) Mar 13 (*) Business 72,800 57,571 26.5 68,359 25.9 Gross Deposits 41,818 32,952 26.9 38,653 32.7 Gross Advances 30,982 24,619 25.8 29,706 17.2 Average Deposits 40,169 32,584 23.3 33,975 72.9 Average Advances 30,173 24,163 24.9 25,645 70.6 Total Assets 49,963 38,338 30.3 46,733 27.6 CD Ratio 74.09% 74.71% 76.85% KVB) (*)-Annualised 3 Karur Vysya Bank Smart way to bank#4Performance Highlights - June 2013 (in crore) Quarter ended Particulars Y-o-Y Growth Quarter Ended Year ended June 13 June 12 (%) Mar 13 Mar 13 Net Interest Income 331.88 253.94 30.7 310.32 1,158.47 Non Interest Income 206.93 104.27 98.5 157.80 452.56 Operating Revenue 538.81 358.21 50.4 468.12 1,611.03 Operating Profit 318.72 202.68 57.3 239.86 848.83 Net Profit 120.30 145.95 (17.6) 158.58 550.32 Net Interest Margin 2.77% 2.82% (5 bps) 3.06% 3.03% Return on Assets 1.00% 1.53% (53 bps) 1.44% 1.35% KVB 4 Karur Vysya Bank Smart way to bank#5Key Ratios - I Quarter Ended Particulars June-13 June-12 Mar-13 Year ended Mar-13 Cost of Deposits (%) 8.21 8.59 8.18 8.30 Yield on Advances (%) 12.21 12.84 12.68 12.77 Cost of Funds (%) 8.12 8.53 8.21 8.24 Yield on Funds (%) 10.28 10.68 10.69 10.65 Yield on Investments (%) 7.66 7.91 7.76 7.84 Spread (%) 2.16 2.15 2.48 2.41 NIM (%) 2.77 2.82 3.06 3.03 Return on Assets (%) 1.00 1.53 1.44 1.35 Return on Net worth (%) 14.98 20.45 20.56 17.84 5 Karur Vysya Bank Smart way to bank#6Key Ratios - I| Quarter Ended Particulars Year ended June-13 June-12 Mar-13 Mar-13 Cost to Income (%) 40.85 43.42 48.76 47.31 Cost to Income - excl Bad Debts w/o (%) 40.82 42.14 48.69 45.02 Business per employee (in crore) 10.84 9.92 10.14 10.14 Profit per employee ( in lakhs) 7.16 10.15 9.43 8.18 Operating Profit/ Total Income (%) 22.30 18.26 18.68 18.08 Net Profit/ Total Income (%) 8.42 13.15 12.35 11.72 Operating Expenses/ Total Income (%) 7.86 7.26 9.97 8.92 Staff Cost / Total Income (%) 7.54 6.75 7.80 7.32 Staff Cost/Total Expenses (%) 9.70 8.26 9.60 8.93 Staff Cost/Operating Expenses (%) KVB 48.95 48.17 43.90 45.08 6 Karur Vysya Bank Smart way to bank#7Spread & NIM (Quarterly) 5.0% 4.61% 4.57% 4.60% 4.50% 4.5% 4.25% 4.0% 4.00% 3.5% 3.20% 3.04% 3.06% 3.06% 3.0% 2.82% 2.77% 2.57% 2.43% 2.48% 2.5% 2.28% 2.15% 2.16% 2.0% 1.5% 1.0% Mar-12 Jun-12 Sep-12 Dec-12 -Spread on Funds Net Interest Margin KVB 7 Mar-13 Spread (Deposits and Advances) Jun-13 Karur Vysya Bank Smart way to bank#8Income & Expenses Analysis (in crore) Year ended Y-o-Y Quarter Seq. Year Particulars Growth Ended Growth ended Mar June 13 June 12 (%) Mar 13 (%) (*) 13 Interest earned 1,222.53 1,005.53 21.6 1,126.15 34.2% 4,242.43 Interest expended 890.65 751.59 18.5 815.82 36.7% 3,083.96 Net Interest Income 331.88 253.94 30.7 310.33 27.8% 1,158.47 Non Interest Income 103.73 90.39 14.8 105.68 (7.4%) 364.21 Profit on Investment 103.20 13.88 643.5 52.12 392.0% 88.35 Operating Revenue 538.81 358.21 50.4 468.12 60.4% 1,611.03 Operating expenses 220.09 Employee cost 107.77 Other expenses 112.32 Operating Profit 318.72 155.53 41.5 74.92 43.8 80.61 39.3 202.68 57.3 Provisions 163.16 (9.98) Profit Before Tax 155.56 212.66 (26.9) 151.10 228.27 100.20 30.2% 343.62 128.07 (49.2%) 418.58 239.86 131.5% 848.83 88.76 335.3% 123.39 11.8% 725.44 (14.3%) 762.20 Provision for Taxes 35.26 Net Profit 120.30 66.71 (47.1) 145.95 (17.6) (7.48) 175.12 158.58 (96.6%) 550.32 - (*) Annualised 8 Karur Vysya Bank Smart way to bank#9KVB Net Interest Income (YoY & QoQ) 253.94 331.88 ΥΟΥ 31% Jun-12 Jun-13 9 310.33 331.88 QOQ 27.8% (Annualised) Mar-13 Jun-13 (* in crore) Karur Vysya Bank Smart way to bank#10Non Interest Income (YoY & QoQ) (* in crore) YOY • Increased in June 2013 over June 12 - 98.5% QoQ • Increased in June 2013 over March 13 - 124.0% (annualised) 104 207 Jun-12 Jun-13 KVB 10 10 158 207 Mar-13 Jun-13 Karur Vysya Bank Smart way to bank#11Provisions & Contingencies (in crore) Annual Quarter Ended Particulars June-13 June-12 Mar-13 March 13 NPA 133.96 32.82 29.86 104.67 Standard Assets 7.09 0.46 16.64 36.64 Restructured Advances 8.09 (0.42) 21.70 23.32 Others (0.32) 0.14 (0.05) 0.05 Investments 14.34 (42.98) 20.61 (41.29) Provisions Before Tax 163.16 (9.98) 88.76 123.39 Provisions for Tax 35.26 66.71 (7.48) 175.12 Total Provisions 198.42 56.73 81.28 298.51 KVB 11 Karur Vysya Bank Smart way to bank#12Capital to Risk Weighted Assets Ratio (in crore) Particulars Jun-13 Jun-12 Mar-13 Tier I Capital 3,024 2677 3,017 Tier II Capital 310 245 303 Tier (I + II) 3,334 2923 3,320 Total Risk Weighted Assets 25,922 19854 23,035 Tier ICRAR 11.66% 13.48% 13.10% Tier IICRAR 1.20% 1.24% 1.31% CRAR (%) 12.86% 14.72% 14.41% KVB • CRAR (with profit) is at 13.32% • CRAR (Basel III) works out to - 12.52% (with profit - 12.98%) • "A+" Rating from ICRA for Long Term Bond Issuance Top Rating from CRISIL (A1+) and ICRA (A1+) for Short Term Borrowing 12 Karur Vysya Bank Smart way to bank#1332952 Deposits & Advances 41818 38653 24619 (* in crore) 30982 29706 June 12 Mar 13 Jun 13 June 12 Mar 13 Jun 13 KVB ■Deposits 13 Advances Karur Vysya Bank Smart way to bank#14KVB Deposit Mix Time 81.30% Time 79.90% Time 80.80% Demand 7.90% Demand 8.50% Demand 7.90% Savings 10.80% Savings 11.60% Savings 11.30% Jun-13 Jun-12 Mar-13 14 Karur Vysya Bank Smart way to bank#15June 13 Agri 18.80% KVB Retail 12.00% Mix of Advances Commercial 32.60% Agri 16.50% Corporate 36.60% 15 Retail 8.80% Corporate 39.20% June 12 Commercial 35.50% Karur Vysya Bank Smart way to bank#16Advances - Category wise Particulars Amount (Rs. in crore) Jun-13 Jun-12 Mar-13 Jun-13 Jun-12 Mar-13 Quantum % to Total Advance Growth Over Jun-12 % INDUSTRY EXPOSURE 10,283 9,443 10,260 33.2 34.7 34.3 1,737 20.3 JEWEL LOAN 8,211 5,850 7,798 26.5 23.8 26.3 2,361 40.4 Personal Segment Loans 3,789 3,066 3,745 12.2 12.4 12.6 723 23.6 @ TRADING 4,576 2,880 4,035 14.8 11.7 13.6 1,696 58.9 BILLS 1,567 1,041 1,558 5.1 4.2 5.2 526 50.5 NBFC 1,030 1,126 1,116 3.3 4.6 3.8 (96) (8.5) OTHER EXPOSURES* 1,527 1,213 1,194 4.9 8.6 4.2 (583) (27.7) TOTAL ADVANCES 30,982 24619 29,706 100.0 100.0 100.0 6,363 25.8 @Vehicle, Housing, Deposit loans *includes Commercial Real estate, Capital Market exposure and Loans given other than to industry, like short term loans, Cash credit & over draft etc term loans. 16 Karur Vysya Bank Smart way to bank#17Industry Exposure - Breakup Amount (Rs. in crore) % to Total Advance Growth Over Jun 12 INDUSTRY Jun-13 Jun-12 Mar-13 Jun-13 Jun-12 Mar-13 Quantum % INFRASTRUCTURE 3,057 2,994 2,948 9.9 12.2 9.9 63 2.1 TEXTILES 1,995 1,838 2,057 6.4 7.5 6.9 157 8.5 IRON AND STEELS 1,107 1,003 1,189 3.6 4.1 4.0 104 10.4 FOOD PROCESSING 994 792 1,010 3.2 3.2 3.4 202 25.5 CHEMICALS AND CHEM PRODUCTS 505 474 473 1.6 1.9 1.6 31 6.5 AUTO PARTS 202 247 214 0.7 1.0 0.7 -45 -18.2 GEMS & JEWELLERY 262 216 252 0.8 0.9 0.8 46 21.3 ALL ENGINEERING 414 231 386 1.3 0.9 1.3 183 79.2 RUBBER 196 208 209 0.6 0.8 0.7 -12 -5.8 METAL 207 152 193 0.7 0.6 0.6 55 36.2 BEVERAGE & TOBACCO 75 100 79 0.2 0.4 0.3 -25 -25.0 WOOD 166 136 154 0.5 0.6 0.5 30 22.1 CEMENT 105 95 92 0.3 0.4 0.3 10 10.5 PAPER 82 69 93 0.3 0.3 0.3 13 18.8 CONSTRUCTION 143 106 134 0.5 0.4 0.5 37 34.9 GLASS LEATHER PETROLEUM 9 8 9 0.0 0.0 0.0 1 12.5 10 3 9 0.0 0.0 0.0 7 233.3 25 25 25 0.1 0.1 0.1 0 0.0 OTHERS Total INDUSTRY EXPOSURE 10,283 9,443 10,260 729 746 734 2.4 3.0 2.3 -16.58 -2.2 33.2 38.4 34.3 840.42 8.9 17 Karur Vysya Bank Smart way to bank#18Infrastructure Advances Amount (Rs. in crore) % to Total Advance Growth Over Jun- 12 INFRASTRUCTURE Jun-13 Jun-12 Mar-13 Jun-13 Jun-12 Mar-13 Quantum % Power 1,560 1731 1,499 5.0 7.0 5.0 (171) (9.9) Road 315 340 313 1.0 1.4 1.1 (25) (7.4) Telecommunication 63 62 62 0.2 0.3 0.2 1 1.6 Infra Others 1,119 861 1,074 3.6 3.5 3.6 258 30.0 TOTAL 3,057 2994 2,948 9.9 12.2 9.9 63 2.1 KVB 18 - Power Sector wise Jun-13 Jun-12 Mar-13 GOVERNMENT 1,082 1,540 1,050 PRIVATE 478 191 449 TOTAL 1,560 1,731 1,499 Karur Vysya Bank Smart way to bank#19Advances - Other Details Particulars Amount (Rs. in crore) % to Total Advance Jun-13 Jun-12 Mar-13 Quantum over Jun-13 Jun-12 Mar-13 June 12 % COMMERCIAL 1,274.57 808.0 1,063.0 4.1 3.3 3.6 466.57 57.74 REAL ESTATE CAPITAL 184.45 38.0 150.0 0.6 0.2 0.5 146.45 385.39 MARKET HOUSING 1,465.07 1,014.0 1,355.0 4.7 4.1 4.6 451.07 44.48 LOANS AUTO LOANS 1,112.31 921.0 1,073.0 3.6 3.7 3.6 191.31 20.77 NBFCs 1,029.61 1,126.0 1,116.0 3.3 4.6 3.8 (96.39) (8.56) PERSONAL 363.99 330.0 340.0 1.2 1.3 1.1 33.99 10.30 LOANS KVB 21 21 Karur Vysya Bank Smart way to bank#20Gross NPA & Net NPA 466 (in crore) 321 377 353 323 286 LLL Mar-12 Gross NPA Net NPA 155 102 109 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 1.53 1.33 1.26 1.29 1.51 0.96 --Gross NPA % 0.38 0.38 0.37 Net NPA % 0.33 0.32 0.50 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 KVB 20 20 Karur Vysya Bank Smart way to bank#21100 90 90 Provision Coverage Ratio (%) 00 80 10 70 75.46 75.51 75.16 75.02 75.20 75.03 60 60 Karur Vysya Bank Smart way to bank 50 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 KVB 21 24#22Movement of NPA (in crore) Particulars Apr 13 - Jun 13 Apr 12-Jun 12 Apr 12 - Mar 13 Movement of Gross NPAS Opening Balance 285.86 320.99 320.99 Additions during the period 193.62 76.33 200.54 Reductions during the period 13.06 20.41 235.67 Closing Balance 466.42 376.90 285.86 Movement of Net NPAs Opening Balance 108.74 78.78 78.78 Additions during the period. 58.56 25.43 107.75 Reductions during the period 12.77 11.92 77.79 Closing Balance 154.53 92.29 108.74 Movement of Provision for NPA Opening Balance 151.50 201.51 201.51 Provisions made during the period 134.24 41.04 104.67 Write off/Write back of excess provision 8.23 154.68 K Closing Balance 285.74 234.32 151.50 22 Karur Vysya Bank Smart way to bank#23Sector wise Restructured Advances S.NO SECTOR AMOUNT (Rs. in crore) (%) to total Rest. Adv Jun 13 Mar 13 Jun 13 Mar 13 1 AGRICULTURE 3.67 13.93 0.3 1.3 2 IRON AND STEEL 12.21 14.02 1.0 1.3 3 INFRASTRUCTURE 705.32 606.03 57.9 55.7 4 TEXTILES 301.57 267.64 24.7 24.6 5 HOUSING LOANS 2.55 2.53 0.2 0.2 6 AUTO LOANS 0.62 0.14 0.1 0.0 7 EDUCATIONAL LOANS 1.34 1.05 0.2 0.1 8 REAL ESTATE 0.57 0.58 0.1 0.1 9 OTHERS 191.03 182.11 15.5 16.7 TOTAL 1,218.88 1,088.03 100 100.0 3.9% 3.7% KVB % to Total Advance 23 Karur Vysya Bank Smart way to bank#24Movement of Restructured Advances Apr-13 to Jun-13 Apr 12 to Mar 13 No. Amount No. Amount Particulars of (Rs. in of (Rs. in A/cs crore) A/cs crore) Restructured accounts at the beginning of the period - [A] 118 1,088 202 1,236 Addition during the period - [B] 16 290 58 682 Addition through upgradation from NPA - [C] - - 1 0 Accounts closed during the period - [D] 1 27 40 358 Accounts ceases to attract higher provision - [E] - I - 97 359 Amount recovered during the period - [F] I 119 32 Accounts slipped into NPA during the period - [G] 5 13 6 81 Restructured accounts as on 30.09.2012 KVB A+B+C-(D+E+F+G) 24 128 1,219 118 1,088 Karur Vysya Bank Smart way to bank#251,350 1,620 Owned Funds (in crore) 2,115 2,708 3,085 FY 2008-09 FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13 KVB 25 Karur Vysya Bank Smart way to bank#26Network and Human Resources Particulars Mar 09 Mar 10 Mar 11 Mar 12 Mar 13 June 13 No of Branches 312 335 369 451 551 554 No of ATMs 324 376 488 825 1,276 1,357 No of Employees 3,941 4,175 4,574 5,673 6,730 6,717 KVB 26 Karur Vysya Bank Smart way to bank#27Network of 554 Branches STATE Jun 12 (%) Jun 13 (%) TAMILNADU 228 50.2 280 50.5 ANDHRA 21.1 119 21.5 PRADESH 96 KARNATAKA 33 7.3 38 6.9 Rural Metro MAHARASHTRA 22 4.8 26 4.7 98 92 GUJARAT 14 3.1 15 2.7 WEST BENGAL 12 2.6 14 2.5 KERALA 11 2.4 14 2.5 DELHI 6 2.0 12 2.2 PUNJAB 5 1.1 7 1.3 UTTARPRADESH 5 1.1 6 1.1 ORISSA 4 5 HARYANA 4 -- 4 Semi Urban 220 PONDICHERY 2 -- 4 M.P. 32 3 RAJASTHAN 2 JHARKHAND 1 -- 2 CHANDIGARH 1 -- 1 CHATTISGARH HATTISGARH 1 ¡ 1 GOA 1 1 27 Total 454 554 22 Urban 144 Karur Vysya Bank Smart way to bank#28State wise Contribution - Total Business Others, 4.5% KERALA, 1.2% WEST-BENGAL, 2.6% GUJARAT, 3.4% DELHI, 5.2% KARNATAKA, 6.1% KVB MAHARASHTRA, 15.5% ANDHRA PRADESH, 17.4% TAMILNADU, 44.1% 28 Karur Vysya Bank Smart way to bank#29Business Per Employee Profit Per Employee 6.38 10.84 10.14 9.84 9.26 7.89 FY 09 FY 10 FY 11 FY 12 FY 13 Jun 13 KVB (Rs. in crore) 29 29 5.98 9.09 8.84 8.05 8.18 7.16 illi FY09 FY10 FY11 FY12 FY13 Jun 13 (Rs. in Lakhs) Karur Vysya Bank Smart way to bank#30A Decade of Progress (* in crore) Year 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Paid up Capital 17.98 17.98 17.98 49.49 53.94 53.95 54.44 94.49 107.18 107.18 Reserves 694.05 742.90 853.65 1013.67 1136.06 1296.21 1565.54 2020.05 2601.04 2978.01 Owned funds CRAR Basel I 712.03 17.11% 760.88 871.63 1063.16 1190.00 1350.16 1619.98 2114.54 2708.22 3085.19 16.07% 14.79% 14.51% 12.58% Basel II 13.08% 14.92% 14.49% 12.48% 12.16% 11.64% 12.02% 14.41% 14.33% 14.41% Deposits 5911 6672 7577 9340 12550 15101 19272 24722 32112 38653 Advances 4023 4620 5701 7194 9569 10563 13675 18052 24205 29706 Investments 2173 2219 2298 2874 3526 4716 6649 7776 10581 13869 Total Income 722 704 771 987 1289 1711 2005 2482 3621 4695 Net Profit 161 105 135 160 208 236 336 416 502 550 Dividend 100% 100% 120% 100% 120% 120% 120% 120% 140% 140% Branches 223 231 238 269 288 312 335 369 451 551 EPS (Rs.) 89.58 58.59 28.29 32.80 38.62 43.71 62.23 44.90 46.81 51.35 Return on Assets 2.43% 1.45% 1.65% 1.53% 1.63% 1.49% 1.76% 1.71% Book Value(Rs.) 396.05 423.22 484.80 197.09 220.61 250.25 297.60 1.56% 200.33 252.68 287.85 1.35% No of Employees 2849 2811 2908 3286 3580 3941 4175 4574 5673 6730 30 Karur Vysya Bank Smart way to bank#31Awards and Recognitions MasterCard Innovation Award for "POS Acquiring Business" category, 2012-13. ✓ Annual Banking Technology Award of IDRBT, Hyderabad - Best Bank award for Electronic Payment Systems Among Small Banks ✓ The Best Bank in Private Sector from IPE, Hyderabad - BFSI KVB 31 Karur Vysya Bank Smart way to bank#32KVB THANK YOU Karur Vysya Bank Smart way to bank