#1✡ Karnataka Bank Ltd. Regd. & Head Office P. B. No.599, Mahaveera Circle Kankanady Mangaluru-575 002 Your Family Bank, Across India Phone : 0824-2228222 E-Mail : [email protected] Website: www.karnatakabank.com CIN : L85110KA1924PLC001128 SECRETARIAL DEPARTMENT July 23, 2022 HO/SEC/94/2022-23 To: The Manager Listing Department National Stock Exchange of India Limited Exchange Plaza,C-1, Block G Bandra-Kurla Complex, Bandra (E) MUMBAI-400051 Scrip Code: KTKBANK Dear Sir/Madam, The General Manager BSE Limited Corporate Relationship Dept. Phiroze Jeejeebhoy Towers Dalal Street MUMBAI-400001 Scrip Code: 532652 Reg.: Presentation-'Analysis of Financial Results Q1FY23'. Pursuant to Regulation 30 read with Schedule III of SEBI (LODR) Regulations, 2015 and in continuation to the publication of unaudited results for the quarter ended June 30, 2022, we enclose herewith the 'Presentation on Analysis of Financial Results Q1FY23'. The above document has been hosted on our Bank's website also at www.karnatakabank.com under Investor Portal Section. Kindly take the above on record. Thank You, Yours faithfully, Prasanna Patil COMPANY SECRETARY 1#2✡ Karnataka Bank Ltd. Your Family Bank. Across India. Analysis of Financial Results June 2022 Marching towards Centenary year (2023-24) 99th Year#3Table of contents 01 Highlights Q1 FY23 Financial headline numbers and key ratios 02 Company Overview Evolution, Presence and Timeline 03 Financial Performance Q1 FY23 Financial Results, Business numbers, Productivity ratios, Asset Quality 04 Digital Presence Digital & Risk Management systems, Digital adoption and ADC 05 Business Strategy Corporate Goal and Roadmap ahead ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#4Table of contents 01 Highlights Q1 FY23 Financial headline numbers and key ratios 02 Company Overview 03 Evolution, Presence and Timeline Financial Performance Q1 FY23 Financial Results, Business numbers, Productivity ratios, Asset Quality 04 Digital Presence 955 Digital & Risk Management systems, Digital adoption and ADC 05 Business Strategy Corporate Goal and Roadmap ahead ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#5Major Highlights Q1 FY23 Operating Profit . • 2.18% YoY growth in operating profit to Rs. 412.78 crore ⚫NIM up by 35 bps YoY to 3.33% Cost to Income Ratio up by 15 bps to 49.68% • • Deposit Growth CASA deposits increased by 12.51% YOY CASA proportion at 32.80%, up by 198 bps YoY Total deposits increased by 5.72% YOY Loan Growth · Advances grew by 13.03% YoY . Asset Quality · Provision Coverage Ratio increased further to 76.77% NPA down by 81 bps YoY to 4.03% Capital • Capital Adequacy at 15.41%, up by 83 bps YoY ROE up by 5 bps YoY to 6.39% • ROA at 0.49% Balance Sheet Size Up by 9.22% YoY to Rs.94541 crore PAT • Net profit grew by 7.63% YoY to Rs. 114.18 crore Customers & Employees • ~12 million Customers •~8,500 Employees Loan Mix · Retail 46.32% Mid Corporate 32.81% Large Corporate 20.87% Branch Mix • Metro & Urban 54% • Semi-urban & Rural 46% Branches/Outlets/Cards ⚫879 Branches • 879 ATMs • 555 E-lobbies · 4 . Digital Adoption Digital adoption at 93.04% (Internet Banking, Mobile Banking, IMPS, UPI transactions) ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#6Highlights Q1 FY23 Deposits 30.06.2022 30.06.2021 80577 76215 5.72 % 13.03% Advances 30.06.2022 30.06.2021 58359 51631 in Cr Growth Investments Balance Sheet Size 30.06.2022 30.06.2021 -0.45% 23195 23301 ✡ 9.22% 30.06.2022 30.06.2021 94541 86561 Net Profit (Qtr) 30.06.2022 30.06.2021 114.18 106.08 7.63% LO 2.18 % Operating Profit (Qtr) 30.06.2022 412.78 30.06.2021 403.96 ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#7Highlights Q1 FY23 Key Ratios as on/ for the quarter 30.06.2022 (in brackets-30.06.2021/Sequential 31.03.2022) NIM CRAR 3.33 % (2.98%) 15.41 % ↑ (14.58%) ROE ROA 6.39 % ↑ 0.49 % (6.34%) (0.49%) CASA 32.80 % ↑ (30.82%) PCR 76.77%↑ (72.16%) 6 Gross Net NPA NPA 4.03% 2.16% (4.84%) (3.02%) Gross Net NPA Sequential NPA Sequential quarter quarter 4.03% 2.16% (3.90%) (2.42%) ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#8Headline numbers 3 Months 12 Months Particulars Q1 FY 23 Q4 FY 22 Q-0-Q variation Q1 FY 22 Y-o-Y variation in Cr FY 22 Turnover 138936 137170 1.29% 127846 8.67% 137170 Asset size 94541 92041 2.72% 86561 9.22% 92041 Operating profit 412.78 380.12 8.59% 403.96 2.18% 1634.00 Operating Profit (excl Trading Profit and 569.13 422.68 34.65% 388.88 46.35% 1684.11 depreciation on Invsts) Net profit 114.18 130.35 -12.40% 106.08 7.63% 508.62 Return on Asset (ROA) 0.49% 0.56% -7 bps 0.49% 0.57% Earning per Share(*) (*not annualized) 3.67* 4.19* -0.52 3.41* 0.26 16.36 Return on Equity (ROE) 6.39% 7.42% -103 bps 6.34% 5 bps 7.41% Net Interest Income (NII) 687.56 656.49 4.73% 574.79 19.62% 2491.03 Net Interest Margin (NIM) 3.33% 3.25% 8 bps 2.98% 35 bps Gross NPA - Amount 2,401.39 2,250.82 - % 4.03% 3.90% 6.69% 13 bps 2,549.06 -5.79% 3.18% 2250.82 4.84% -81 bps 3.90% Net NPA Amount 1,262.88 1,376.97 -8.29% 1,557.38 -18.91% 1376.97 - % 2.16% 2.42% -26 bps 3.02% -86 bps 2.42% Cost to Income PCR 49.68% 58.38% -870 bps 49.53% 15 bps 52.57% 76.77% 73.47% 330 bps 72.16% 461 bps 73.47% CRAR (Basel III) 15.41% 15.66% -25 bps 14.58% 83 bps 15.66% The above figures are based on Standalone financials of the Bank 7 Karnataka Bank Ltd. Your Family Bank. Across India.#9Table of contents 01 Highlights Q1 FY23 Financial headline numbers and key ratios 02 Company Overview Evolution, Presence and Timeline 03 Financial Performance Q1 FY23 Financial Results, Business numbers, Productivity ratios, Asset Quality 04 Digital Presence 955 Digital & Risk Management systems, Digital adoption and ADC 05 Business Strategy Corporate Goal and Roadmap ahead ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#10Company Overview Incorporated in the year 1924 12 million + Happy customers 879 branches 38 E-lobbies 517 mini E-lobbies 879 ATMs 572 Cash recyclers Business Turnover of Rs 1,38,936 crore as on June 2022 Our VISION is to be progressive, prosperous and well governed Bank VISION MISSION Our MISSION is to be a technology savvy, customer centric progressive bank with a national presence, driven by the highest standards of corporate governance and guided by sound ethical values. Marching towards Centenary Year (2023-24) 9 ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#11Pan India Footprint 16 4 2 8 10 21 21 7 5 8 62 52 25 41 7 558 50 3 20 20 1600 Area wise distribution of Branches ■Metro Urban Semi Urban Rural 1459 23% 28% 23% 26% Branches ATMs & Recyclers 1448 1451 1400 877 1200 858 1000 800 Presence in South India with 696 branches 600 400 200 Top 5 States: Karnataka (558), Maharashtra (52), Tamilnadu (50), Andhra Pradesh (41), Telangana (25) 0 June'21 Mar'22 10 879 June'22 Karnataka Bank Ltd. Your Family Bank. Across India.#12Timeline (First 50 years) ✡ 1924 Incorporation Incorporated on the 18th of February with an initial paid up capital of Rs 11,580/- and the first branch at Mangalore- Dongerkery was opened on 23-05-1924 1949 Silver Jubilee Year Turnover: Rs 94.98 lakhs Deposits :Rs 55.59 lakhs Advances Rs 39.39 lakhs Branches: 9 1960-66 Takeover ☐ Sringeri Sharada Bank in 1960 Chitaldurg Bank Ltd., (first ever registered Bank in Karnataka - 1870) in 1964 ☐ Bank of Karnataka Ltd., in 1966 1972 Own Head Office building Bank's own multistoried Head Office building at Kodialbail, Mangaluru, was built at a cost of Rs 20 lakhs (Super built-up Area 57,576 Sq Ft) Bank was upgraded from 'B' class to 'A' Class 1974 Golden Jubilee Year Turnover: Rs 55.23 Cr Deposits: Rs 33.14 Cr Advances: Rs 22.09 Cr Branches: 146 Employees: 1314 13 11 Karnataka Bank Ltd. Your Family Bank. Across India.#13Timeline (Next 48 years) Marching towards Centenary Year 2023-24 1984 Diamond Jubilee Year ☐ Turnover: Rs 333.56 Cr Deposits: Rs 211.34 Cr Advances: Rs 122.22Cr 1991-99 Growth Business Turnover crossed Rs 1000 Cr in 1991 Maiden rights cum Public issue of the Bank in 1996 oversubscribed nearly 2.5 times Financial Express- BRIS Survey awarded the top place to Bank among all private banks in 1997 and 1998 Deposits crossed Rs 4350 Cr; Top Bank among Indian private Banks in the CMIE-Economic Times Survey 2000-17 Technology adoption & branding Core Banking system Finacle ☐ unveiled (First few Banks to embrace CBS) Bank's ATM- 'MoneyPlant' launched and First Bancassurance tie-up with M/S Metlife India Insurance Co (P) Ltd Internet Banking facility launched ☐ MoneyClick New signage with unique colour and design adopted Bank's Head Office shifted to new Corporate Building, at Pumpwell, Mahaveera Circle, Mangalore Floated General Insurance Joint Venture -Universal Sompo Gl with 16% stake in shareholding Got ISO 27001:2013 Certificate for its IT Setup 2017-20 Transformation Transformation Project 'KBL - VIKAAS' launched partnering with M/s BCG Business turnover crossed Rs 1,00,000 crore Bank launched its official page on Facebook, Twitter, Instagram and YouTube ☐ Staff Training College gets ISO 9001:2015 Certification ☐ Customer base crossed the milestone of 10 million All time high Net profit posted Rs 477.24 Cr ☐ Digital Center of Excellence (DCOE) at Bengaluru 2020-22 KBL -NXT Operationalized wholly owned - non-financial subsidiary KBL Services Ltd. All time high Net profit posted Rs 482.57 Cr in 2021 Commenced - KBL-NXT journey KBL VIKAAS 2.0 Qualifies to act as 'Agency Bank' of RBI to facilitate Government business transactions Launches KBL FASTag RMD certified under ISO 9001:2015 Net Profit crossed Rs 500 Cr mark in 2022#14Table of contents 01 Highlights Q1 FY23 Financial headline numbers and key ratios 02 Company Overview Evolution, Presence and Timeline 03 Financial Performance Q1 FY23 Financial Results, Business numbers, Productivity ratios, Asset Quality 04 Digital Presence Digital & Risk Management systems, Digital adoption and ADC 05 05 Business Strategy Corporate Goal and Roadmap ahead ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#15PL Numbers in Cr 3 Months 12 Months Particulars Interest Income Interest Expense Net Interest Income Q1 FY 23 Q4 FY 22 Q-0-Q variation Q1 FY 22 Y-o-Y variation FY 22 1629.08 1578.78 3.19% 1523.50 6.93% 6221.66 941.52 922.29 2.09% 948.71 -0.76% 3730.63 687.56 656.49 4.73% 574.79 19.62% 2491.03 Non-Interest Income 132.79 256.90 -48.31% 225.65 -41.15% 953.88 Treasury Income 0.24 14.96 -98.40% 25.34 -99.05% 48.66 Depreciation on Investments -156.59 -57.52 172.24% -10.26 1426.22% -98.77 Fee Income 289.14 299.46 -3.45% 210.57 37.31% 1003.99 Total Income (Net of Interest Expense) 1761.87 1835.68 -4.02 1749.15 0.73% 7175.54 Operating Expenses 407.57 533.27 -23.57 396.48 2.80% 1810.91 Operating Profit 412.78 380.12 8.59% 403.96 2.18% 1634.00 Provisions & Contingencies Net Profit 298.60 249.77 19.55% 297.88 0.24% 1125.38 114.18 130.35 -12.40% 106.08 7.63% 508.62 14 ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#16PL Numbers in Cr Particulars Interest Income 3 Months 12 Months Q1 FY 23 Q4 FY 22 Q-0-Q variation Q1 FY 22 Y-o-Y variation FY 22 Interest Income 1629.08 1578.78 3.19% 1523.50 6.93% 6221.66 Interest on Advances 1246.74 1211.50 2.91% 1161.29 7.36% 4737.88 Interest on Investments 343.03 330.06 3.93% 316.68 8.32% 1310.12 Other interest 39.31 37.22 5.62% 45.53 -13.66% 173.66 Yield on Advances % 8.81 8.60 21 bps 8.93 -12 bps 8.84 Adjusted yield on Investments % 5.22 5.87 -65 bps 5.95 - 73 bps 5.47 Interest Expense Interest Expense Cost of Deposits % 941.52 922.29 2.09% 948.71 -0.76% 3730.63 4.47 4.47 4.82 -35 bps 4.66 Net Interest Income Net Interest Income 687.56 656.49 4.73% 574.79 19.62% 2491.03 Interest Spread in Lending % 4.34 4.13 21 bps 4.11 23 bps 4.18 Net Interest Margin % 3.33 3.25 8 bps 2.98 35 bps 3.18 15 Karnataka Bank Ltd. Your Family Bank. Across India.#17Financial Strength of the Bank Networth (crs) 7,095 6,748 8000 6000 7,209 Business Turnover (crs) 127,846 137,170 138,936 4000 6,437 6,784 6,898 120000 51,631 56,783 58,359 2000 311 100000 311 311 80000 0 June '21 ■Capital Mar '22 Reserves June' 22 60000 76,215 80,387 80,577 40000 16 20000 0 Jun '21 Mar'22 ■Deposits Jun'22 Advances ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#18Deposits Deposits (crs) 76,215 16% Growth rate (y-o-y) 14% 80,387 80,577 12% 10% 8% 69.17% 67.03% 67.20% 6% 14.06% 11.23% 12.52% 4% 2.89% 30.82% 32.97% 32.80% 3.98% 2.71% 2% 0% Jun '21 Mar '22 Jun'22 CASA deposits Retail term deposits Retail Term Deposits- Size-wise- June'22 2 Cr to 5 cr. 4% Above 5 cr 4% CASA deposit Jun '21 Retail term deposit ■Mar '22 ■Jun'22 Cost of Deposits 4.82% 5% 4% Below 2 cr 92% 3% 2% 1% 11 4.66% 4.47% 0% Jun '21 Mar '22 Jun'22 ■Below 2 cr 2 Cr to 5 cr Above 5 cr Deposit Concentration: Top 20 Depositors - 3.44% 17 14 6.07% 6.25% 5.72% Total deposit Karnataka Bank Ltd. Your Family Bank. Across India.#19Advances Advances [Net] (* crs) 51,631 14.30% 56,783 58,359 20.37% 20.87% 55.00% 33.48% 31.85% 32.81% 35.00% Growth Y-O-Y (%) 15.00% 52.22% 47.78% 4.55% 4.49% 46.32% -5.00% 68.77% 65.05% 9.57% 10.83% 5.72% 3.26% 0.31% Jun '21 -1.19% Mar '22 Jun'22 -4.46% Jun '21 Mar '22 Jun'22 -25.00% Corporate (> 100 crore) Mid Corporate (> 5 crore & upto 100 crore) Retail (upto 5 crore) -35.88% -45.00% Average Loan Ticket Size (*crs) Large Corporate 172.74 Mid Corporate 12.47 Retail 0.09 -65.00% 18 ■Retail advances Mid Corporate advances Corporate advances Total Advances ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#20Advances Credit Deposit ratio (%) 73% 72% 71% 70% 69% 68% 67.74% 67% 66% 65% Jun '21 72.43% 70.64% Mar '22 Jun'22 Yield on Advances & Interest Spread (%) Yield on advances Interest spread Infra 2.09% NBFC 14.81% Other Personal loans 6.81% 8.93% 8.84% 8.81% 10% 8% 6% 4.11% 4.18% 4.34% 4% 2% 0% Jun '21 Mar '22 Jun'22 19 Sectoral Loan exposures Others 10.68% Housing 17.61% Agriculture 12.57% GBC - Rs 59,591 Cr Large Ent. 8.38% MSME 27.05% ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#21Advances to Priority Sectors Priority Sector Advances (crs) Amount -% 32,077 Agriculture Advances* (*crs) Amount <=% 58% 33000 21% 31,502 56% 19% 32000 56.41% 17% 54% 55.18% 31000 15% 52% 15.23% 30000 13% 50% 11% 8,931 28,693 29000 48% 48.93% 9% 28000 46% 7% 5% 44% 27000 11000 10,473 10500 18.42% 9,849 10000 17.25% 9500 9000 8500 8000 Jun '21 Mar '22 Jun'22 Jun '21 Mar '22 Jun'22 *Including RIDF/PSLC Advances to Weaker Section (* crs) Amount -% 4020 4,007 8.00% 4000 7.00% 6.95% 7.02% 3980 6.69% 6.00% 3960 3,953 5.00% 3940 4.00% 3,922 3920 3.00% 3900 2.00% 3880 1.00% 3860 0.00% Jun '21 Mar '22 Jun'22 20 20 ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#22Geographical Credit concentration GBC NPA Restructured (crs) SMA-2# State State Balance Outstanding % to GBC Balance Outstanding % to GBC State Balance wise Outstanding % % to Balance % to State wise wise Performing GBC Outstanding % advances % to Perf advance Karnataka 26548.46 44.55 997.66 1.67 3.76 2411.69 4.05 9.08 704.02 1.18 2.65 Maharashtra 9105.44 15.29 214.05 0.36 2.35 240.89 0.40 2.65 27.85 0.05 0.31 Delhi 5881.52 9.87 381.98 0.64 6.49 452.29 0.76 7.69 32.44 0.05 0.55 Tamilnadu 4292.13 7.20 159.28 0.27 3.71 145.44 0.24 3.39 76.36 0.13 1.78 Telangana 3408.75 5.72 125.04 0.21 3.67 178.34 0.30 5.23 74.11 0.12 2.17 Andhra Pradesh 2607.97 4.38 85.29 0.14 3.27 132.60 0.22 5.08 105.42 0.18 4.04 All other States/ UTS 7746.75 12.99 438.09 0.73 5.65 740.43 1.24 9.56 120.67 0.20 1.56 Total 59591.02 100 2401.39 4.03 4301.68 7.21 1140.87 1.91 # This includes both 5 crore & above and below 5 crore as well as the main accounts & related accounts 21 ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#23Restructured Loans Restructured Portfolio -Details Standard Restructured Portfolio -Movement Q1 FY 23 Particulars Particulars FY 22 Standard NPA Total Opening balance Restructured Amount 3652.64 649.04 4301.68 4478.27 Fresh restructuring during the period (crs) Q1 FY 23 4115.18 26.99 Provision made thereon 487.43 449.57 937.00 735.11 Increase in balance in the existing restructured 102.12 accounts % Provision 13.34% 69.27% 21.78% 16.42% Upgrade of NPA to Standard category 15.66 Q1 FY 23 Total - A 4259.95 Type of Restructure Standard NPA Total Reductions / additions in opening balance 191.16 MSME OTR 483.73 174.09 657.82 Resolution Framework-1 360.67 350.85 711.52 Downgrades to NPA during the period Write-offs during the period 416.15* 0 Resolution Framework-2 2688.95 83.12 2772.07 Total - B 607.31 Others* 119.29 40.98 160.27 Total Standard Restructured Portfolio (A-B) 3652.64 Total 3652.64 649.04 4301.68 during July 2022 22 22 *inclusive of a Corporate Advance of Rs 308.01 Cr which got recovered ✡ Karnataka Karnataka Bank Ltd. Your Family Bank. Across India.#24SMA Accounts (SMA 2 and SMA 1) 4.00% 3.50% 3.41% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% SMA 2 (*crs) 2.34% 1.64% 2000 1800 2.50% 2.19% 1600 1400 2.00% 1200 1.50% 1000 1.75% 800 1.00% 600 0.89% 400 0.50% 200 SMA 1 (crs) 1.46% 1.78% 1.62% 1200 1000 800 600 400 1.05% 609 200 0.00% 0 June'21 Sep'21 0.00% Dec '21 Mar'22 Jun'22 0 June'21 Sep'21 Dec'21 Mar'22 Jun'22 Amount -% to Performing advances 23 Amount -% to Performing advances ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#25Asset Quality Gross NPAs (crs) 6% 4.84% 5% 4% 3% 2% 88 2,549 1% 0% Jun '21 4% Net NPAs (crs) 3.50% 3.02% 1800 3000 3.00% 2.42% 1600 3.90% 4.03% 2500 1400 2.50% 2.16% 2000 1200 2,251 2,401 2.00% 1500 1.50% 1000 1,557 1,377 1,263 1000 800 600 1.00% 400 500 0.50% 200 0 0.00% 0 Mar '22 Gross NPA Jun'22 Jun '21 Mar '22 Jun'22 Gross NPA % Net NPA -Net NPA % Slippage ratio 3.11% 1% 1% 1% 1% 0.45% 1.03% 0% 3% 3% 2% 2% 1% 0.83% 1% 0% Jun '21 Mar '22 Jun'22 24 0% do do do Credit cost 1.04% 0% Jun '21 Mar '22 0.69% Jun'22 ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#26NPA Break-up Loss Assets 16.89% Composition of NPA Sub Standard 25.24% Doubtful 57.88% Size wise NPA Above Rs 50 Cr 15.72% Rs 5 Cr to Rs 50 Cr 23.18% Credit portfolio wise NPA Corporate (> 100 crore) 13% Mid Corporate (> 5 crore & upto 100 crore) 26% 25 Retail (upto 5 crore) 61% Upto Rs 1 Cr 37.41% Rs 1 Cr to Rs 5 Cr 23.69% Karnataka Bank Ltd. Your Family Bank. Across India.#27NPA Analysis Movement in NPA during Q1 FY 23 ( crs) Particulars Amount NPA Sectoral exposures Opening GNPA 2250.82 Additions 569.37* Personal Loans Vehicle Loans 1% Others 4% 4% Sub Total (A) 2820.19 Large Enterprise 18% Reduction Up-gradation 150.59 Housing Recoveries (excluding upgraded accts) 127.33 11% Technical Write Offs 137.65 Other Write Offs 3.23 Sub Total (B) 418.80 Out of which sold to ARC Closing GNPA 2401.39 *Contains slippage of one Corporate restructured account amounting to Rs 308.01Cr which has been since recovered except for penal interest etc. The impact of which on the financials is as below- Particulars With said slippage (crs) Without said slippage Interest on loans & advances Yield on Advance % 1246.73 1286.73 8.81% 9.09% Gross NPA 2401.39 2093.38 Gross NPA % 4.03% 3.51% PCR % 76.77% 75.37% Credit Cost % 0.69 0.16 Slippage ratio % 1.03 0.47 26 MSME 41% Agriculture 21% GNPARs 2,401.39 Cr ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#28NPA Break-up NPA accounts of Rs 25 Crore and above and provisions held (crs) NPA Classification No. of Borrowers Net Balance Provision held Provision % SS DS 1 DS 2 - (4) - - (150.38) - (122.87) 1 (2) 69.42 (97.73) 28.16 (56.14) - (81.71) 40.56 (57.44) DS 3 LOSS 1 (-) 308.00 (-) Total 2 (7) 377.42 (355.03) 308.00 (-) 336.16 (218.42) 89.07 (61.52) 100 (-) [Figures in brackets - as of June '21] 22 27 ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#29Income & Profit (quarterly) Net Income (crs) Operating and Net Profit (crs) 1000 900 800 800 700 913 820 569 600 257 133 423 226 500 404 389 413 380 600 400 500 400 300 300 656 688 575 114 130 200 200 106 100 0 Jun '21 Net Interest Income 100 Mar '22 Jun'22 Other Income Total Income (net of int exp) 0 Jun '21 Mar '22 Jun'22 Operating profit Operating profit (excluding Trading Profit & depreciation on Invsts) ■Net profit 4.00% Net Interest Margins (%) 2.98% 3.00% 2.00% 1.00% Cost to Income Ratio (%) 60% 58.38% 3.25% 3.33% 49.53% 50% 49.68% 0.00% Jun '21 Mar '22 Jun 22 28 40% 30% Jun '21 Mar '22 Jun'22 ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#30Return and Capital adequacy ratios Return on Equity (%) (after tax) 9.00% 6.34% 6.00% Return on Assets (%) (after tax) 1.00% 7.41% 0.90% 0.80% 6.39% 0.70% 0.56% 0.60% 0.49% 0.49% 0.50% 0.40% 0.30% Jun'22 Jun '21 Mar '22 Jun'22 3.00% Jun '21 Mar '22 Capital Adequacy (%) - Basel III 18.00 Tier I Tier II Total CRAR 15.66 15.41 16.00 14.58 14.00 12.00 12.10 12.65 12.44 10.00 8.00 6.00 4.00 2.48 3.01 2.97 2.00 0.00 Jun '21 Mar '22 Jun'22 29 ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#31Capital Adequacy (crs) Risk Weighted Assets Particulars 30.06.2021 31.03.2022 30.06.2022 51,855 52,808 51,062 Risk Weighted Assets 51,061.91 51,855.44 52,807.73 11.30% Total Capital Fund (Basel III) 7,445.76 8118.55 8,137.49 6.89% 11.12% 5.51% 11.32% 5.42% Total Tier I Capital 6,178.00 6,558.19 6,567.94 81.81% 83.36% 83.25% Paid up Equity Capital Reserves under Tier I Cap. 310.88 311.17 3,11.23 5,867.12 6,247.02 6,256.71 Eligible Tier II Capital 1,267.76 1,560.35 1569.55 Mar '22 General Provisions & Reserves 522.76 540.35 549.55 Jun '21 RWA for Credit risk RWA for Market risk RWA for Operation risk Jun'22 Subordinated Debts 745.00 1020.00 1020.00 RWA to Total Assets CRAR under Basel III 14.58% 15.66% 15.41% 70% 58.99% CRAR Tier I Capital 12.10% 12.65% 12.44% 60% 56.34% 55.86% 50% CRAR Tier II Capital 2.48% 3.01% 2.97% 40% 30% 20% 10% 0% Jun '21 Mar '22 Jun'22 30 Karnataka Bank Ltd. Your Family Bank. Across India.#32Provisions Category NPA Standard advances Fair Value Tax Others Total Provision Provision Provision Coverage Ratio 100.00% during Q1 FY 23 during Q1 FY 22 90.00% 404.10 230.50 80.00% 76.77% 73.47% 72.16% -29.18 105.17 70.00% -11.37 21.18 60.00% -64.30 -59.95 50.00% -0.65 0.98 40.00% 298.60 297.88 Jun '21 Mar '22 Jun'22 31 Karnataka Bank Ltd. Your Family Bank. Across India.#33Provisions 100.00% 80.00% 60.00% 40.00% 20.00% 0.19% 100.00% Sector-wise PCR % 98.14% 100.00% 98.59% 98.92% 98.59% 96.46% 94.09% 89.64% 62.18% 81.69% 0.00% 0.00% NBFC Infra PCR %(incl TW) PCR % (excl TW) Secured % 100.00% 0.00% 0.00% Large Entp 93.80% 95.34% 72.68% 80.57% 37.81% 32.41% 30.19% 100.00% 100.00% CRE Agri MSME Housing 65.17% 35.47% 98.14% 68.33% 45.94% 89.64% Housing (CRE) 45.48% 59.03% 20.17% 28.72% 35.90% 20.17% 98.59% 98.92% 100.00% LRD Personal Vehicle Loans Loans Staff Housing Others Loan 55.21% 52.39% 40.11% 86.94% 76.77% 31.47% 28.62% 28.67% 50.16% 47.41% 96.46% 98.59% 94.09% 62.18% 81.69% Total PCR %(incl TW) PCR % (excl TW) Secured % 32 Karnataka Bank Ltd. Your Family Bank. Across India.#34Productivity Ratios Operating Profit per employee (* lakh) * 19.44 19.18 20 15 10 5 19.44 0 Jun '21 Mar '22 Jun'22 * annualized 20 20 15 Business per employee (* crs) 10 10 5 0 15.38 Operating Profit per branch (* lakh) * 200 150 100 50 188.32 0 Jun '21 Business per branch ( crs) 16.10 16.51 200 Jun '21 Mar '22 Jun'22 33 150 100 50 50 149.00 186.32 187.84 Mar '22 Jun'22 156.41 159.46 0 Jun '21 Mar '22 Jun'22 ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#35Investments Investments [excl. RIDF] (crs) 23,301 23,195 22,041 AFS 26.08% 25000 20000 HFT 0.04% 15000 HTM 73.88% 10000 5000 Duration 0 Jun '21 Mar '22 Jun'22 AFS HFT HTM TOTAL 3.19 0.00 5.31 4.78 6% Yield on Investments (%) 5.95% 5.47% 5.22% 5% Jun '21 Mar '22 Jun'22 34 Liquidity Coverage Ratio 272.78% 272.00% 400% 311.35% 300% 200% 100% 0% Jun '21 Mar '22 Jun'22 ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#36Borrowers under External Rating Of which, NPA Rating No of Borrowers Balance O/S % to GBC (in cr) No. of borrowers Bal o/s (cr) No. of borrowers [Figures in brackets - as of June'21] Restructured book Bal o/s SMA2 Bal o/s No. of (cr) borrowers (cr) % share to Std. Adv. @ AAA 18 (12) 5181 (3031) 8.69 (5.73) AA 49 (31) 4789 (2200) 8.04 (4.16) I A 66 (45) 2490 (1383) 4.18 (2.61) I BBB 89 (88) 2325 (2508) 3.90 (4.74) I - (1) - (5) - (1) - (94) - (3.75) Sub total 222 (176) 14785 (9122) 24.81 (17.24) - - (1) -(5) - (1) - (94) - (1.03) BB 21 (31) 580 (762) 0.97 (1.44) I - (1) - (17) 1(3) 20(55) 0.03(7.23) B 5 (8) 107 (39) 0.18 (0.07) 1(-) 50(-) C 1 (-) 154 (-) 0.26 (-) Ꭰ 9 (8) 541 (643) 0.91 (1.22) 5 (-) 332 (-) -(1) -(76) - (1) - (316) -(49.18) Sub total 36 (47) 1382 (1444) 2.32 (2.73) 5 (-) 332 (-) 1 (2) 50 (93) 1 (4) 20 (371) 0.03 (25.71) Grand Total 258 (223) 16167 (10566) 27.13 (19.97) 5 (-) 332 (-) 1 (3) 50 (98) 1 (5) 20 (468) 0.03 (4.43) Gross Bank Credit: 59,591 crore (PY June'21: 52,910 crore). @ Under respective rating category 35 56 ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#37Rating External Rating of Top 50 borrowers No of Borrowers Balance O/s (in cr) % to GBC Of which, NPA no. of borrowers Bal o/s (cr) no. of borrowers (cr) SMA2 Bal o/s Restructured book no. of borrowers Bal o/s % share to (cr) Std. Adv. * - AAA 13 (8) 4691 (2886) 7.87 (5.45) AA 16 (6) 3220 (1018) 5.40 (1.92) I A 7 (6) 778 (421) 1.31 (0.79) BBB 4 (13) 387 (1020) 0.65 (1.93) Sub total 40 (33) 9076 (5344) 86.81% (70.65%) 15.23 (10.10) BB - (1) - (116) - (0.22) B - (1) -(17) - (0.03) C 1 (-) 154 (-) 0.26 (-) Ꭰ 1 (2) 308 (469) 0.52 (0.89) 1 (-) 308 (-) - (1) - (316) - (67.39) 462 (602) Sub total 2 (4) 0.78 (1.14) 1 (-) 308 (-) - (1) -(316) - (52.55) 4.99%(10.73%) Without External rating # 8 (13) 917 (1620) 1.54 (3.06) Grand Total 50 (50) 10455 (7565) 17.55 (14.30) 1 (-) 308 (-) - (1) - (316) - (4.18) Gross Bank Credit: ₹ 59,591 crore (PY June’21: ₹ 52,910 crore). [Figures in brackets - as of June'21] * Under respective rating category Karnataka Bank Ltd. 36 Your Family Bank. Across India.#38External Rating of NBFC Portfolio SMA2 Bal o/s (cr) [ Figures in brackets – as of June ‘21] - Restructured book no. of borrowers Bal o/s % share to Std. Adv. * (cr) Rating No of Borrowers Balance O/s (in cr) % to GBC Of which, NPA no. of borrowers Bal o/s (cr) no. of borrowers AAA 16 (10) 4481 (2531) 7.52 (4.78) AA 31 (17) 3358 (1506) 5.63 (2.85) A 26 (16) 938 (458) 1.57 (0.87) BBB 3 (1) 39 (13) 0.07 (0.03) Sub total 76 (44) 8816 (4508) 14.79 (8.52) BB 1 (-) 12 (-) 0.02 (-) B C - D - (1) 12 (13) - (0.02) Sub total 1 (1) 12 (13) 0.02 (0.02) Without External 1 (3) 0.02 (40) - (0.08) rating Grand Total 78 (48) 8827 (4561) 14.81 (8.62) Gross Bank Credit: 59,591 crore (PY June'21: 52,910 crore). * Under respective rating category 37 - ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#39Shareholders value Share holding pattern Indian Public 78.32% Earning Per Share (*) 16.36 14.68 17 12673879 16 0.00% 15 13.64 14 13 Banks, FIs, MF, Insurance Cos 12 5.57% Jun '21 Mar '22 Jun'22 Book value ( in Cr) 217.08 228.01 231.64 250 200 Foreign Portfolio 150 Investors 100 16.11% 50 0 Jun '21 Mar '22 Jun'22 38 ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#40Consolidated Numbers 3 Months 12 Months Particulars Q1 FY 23 Q4 FY 22 Q-0-Q variation Q1 FY 22 Y-o-Y variation FY 22 Turnover (in Cr) 138936 137170 1.29% 127846 8.67% 137170 Asset size (in Cr) 94539 92040 2.72% 86561 9.22% 92040 Operating profit (* in Cr) 412.65 379.97 8.60% 403.78 2.19% 1633.37 Net profit (in Cr) 114.05 130.20 -12.40% 105.91 7.69% 507.99 Return on Asset (ROA%) 0.49% 0.56% -7 bps 0.49% 0.56% Earning per Share (*) (not annualized) 3.66* 4.19* -0.53 3.41* 0.25 16.36 CRAR (Basel III) 15.41% 15.66% -25 bps 14.58% 83 bps 15.66% The Consolidated Financial results of the Group comprise of the financial results of The Karnataka Bank Ltd and its wholly owned subsidiary KBL Services Ltd. The paid-up equity capital of KBL Services Limited is Rs.100.00 lakhs comprising of 10,00,000 equity shares of Rs.10 each fully paid up. KBL Services Ltd, a wholly owned non-financial subsidiary of the Bank was incorporated on June 21, 2020 and the certificate of commencement of business was filed on August 26, 2020. The company commenced its operations on March 30, 2021. ✡ Karnataka Bank Ltd. Your Family Bank. Across India. KBL SERVICES LIMITED A wholly owned subsidiary of Karnataka Bank 39#41Table of contents 01 Highlights Q1 FY23 Financial headline numbers and key ratios 02 Company Overview Evolution, Presence and Timeline 03 Financial Performance Q1 FY23 Financial Results, Business numbers, Productivity ratios, Asset Quality 04 Digital Presence Digital & Risk Management systems, Digital adoption and ADC 05 Business Strategy Corporate Goal and Roadmap ahead ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#42Robust technology and digital platforms Pioneer in implementing “Finacle" (CBS) amongst first generation private sector banks The Information Security Management System (ISMS) of the Bank has been accredited with "ISO 27001:2013" certificate encompassing at Bank's Data Centre/ IT Cell, Near line Site [NLS] and Information Technology Department including the DR site [IT & DR] Enabled Platform for Digital sanction Of Home loans, Personal loans, Car loans, 2-wheeler loans & MSME loans. Opening of SBs through Tab banking State-of-art IT set up which has enabled Anytime Anywhere Banking through alternate delivery channels such as ATMs, VISA International Debit Card, RUPAY Debit Card, Internet Banking, Mobile Banking, IMPS, e-lobby etc. Digital sales of insurance policies through Mobile Banking and Internet Banking platform and Sale of Mutual Fund products in a single platform 'FISDOM'. Online opening of Demat & Trading account through KBL-Smart Trade. Implemented 'KBL-Mobile Plus' (Mobile Banking) app, 'BHIM KBL UPI' App on Unified Payment Interface 41 ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#43KBL- Digital Center of Excellence (DCOE) Digital Leads Enabling reach digitally 2500+ Risk Reduction Improving Asset Quality (Cibil V3 >701 Score Portfolio) >76% Accelerating Digital Transformation Catalyst 42 • 30,000+ customer queries addressed as a Xpress Loan assistance. 24000+ customers benefiting through relevant need match to services offered Customer Dashboard 2-ABCD X-PAWS ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#44Strong foundation of digital capabilities and enablers Digital Channels Mobile Banking Internet Banking KBL BHIM UPI KBL- mPassBook MoneyClick KBL Mobile XXKBL UPI BHIM Xpress Home Loan Xpress Car Loan Xpress Cash Loan Xpress Mortgage Loan Xpress Journeys Xpress MSME Term Loan CV Loan Xpress SB M Customer Assistant & Analytics platforms DhIRA XeD ABCD X-PAWS DHIRA 43 X-ABCD 2-PAWS ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#45Digital adoption and underwriting 93.04 % of customer transactions are through Digital means 4.57 KBL Xpress Home Loans 4.56 Customer Rating 5 point Scale 74% KBL Xpress Car Loans 79% Customer Rating 5 point Scale Digital Adoption 72% KBL Xpress MSME Loans Customer Rating 5 point Scale 4.55 4.61 Customer Rating 5 point Scale KBL Xpress Cash (100% 44 43% KBL Xpress SB Accounts Customer Rating 5 point Scale 4.71 ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#464,968 55 55 Mobile Banking KBL MobilePlus 1,366,082 Jun-21 No. of transactions during the quarter No. of Transactions (in 000's) 5,593 61 6,002 - Avg. Transactions per day (in 000's) 66 5936 58 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 45 No. of Regd users (Actuals as at the end of the quarter) 20 67 Sep-21 Dec-21 Mar-22 Jun-22 Value of transactions during the quarter Value of Transactions (in Cr) Avg. value of Transactions per day (in Cr) 6057 7419 82 94 44 106 H 8612 9661 Jun-21 Sep-21 Dec-21 Mar-22 11508 125 Jun-22 12186 134 Karnataka Bank Ltd. Your Family Bank. Across India.#47Debit Cards Platinum Karnataka Bank 4321 1234 1234 1234 11/16 11/21 PRANAV RuPay Cards Usage Debit cards Penetration 99 56 69 69 125 Position during the quarter 88.42% 89.40% 50.34 Jun-21 51.55 87.21% 51.68 Total cards issued (Lakhs) Penetration (%) 86.51% 51.13 Sep-21 Dec-21 Mar-22 Total ATM transactions by our Debit Card holders 155 51.85 Jun-22 KBL ATM (lakhs) Shared Network (VISA/NFS) (lakhs) ■Total ATM transactions by our Debit Card holders (lakhs) 191 186 72 Jun-21 Sep-21 157 83 86 97 89 101 90 71 46 Dec-21 Mar-22 87.01% Jun-22 ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#48UPI Transactions KBL BHIM UPI XXKBL UPI BHIM BHIM KBL UPI Txn Value BHIM KBL UPI Txns count 263 23,896 Jun-21 1,331 121,076 1,610 Position during the quarter No. of Transactions (in 000's) Avg. Transactions per day (in 000's) 2,263 148,148 Jun-21 Sep-21 316 1,811 164850 208231 Dec-21 Mar-22 Jun-22 Value of Transactions (in Crore) -Avg. value of Transactions per day (in Crore) 29,048 Sep-21 47 339 31,171 Dec-21 Mar-22 430 39569 Jun-22 43583 479 ✡ Karnataka Bank Ltd. Your Family Bank. Across India. 232094 2,550#49ECOM Transactions 2,203 POS Transactions POS and ECOM Transactions 3,790 42 No. of Txn ('000s) 60 Avg per day ('000s) 61 5,500 Jun-21 Sep-21 Dec-21 24 No. of Txn ('000s) 24 2,165 5,538 Avg per day ('000s) 19 16 1,747 1,438 5,662 69 63 63 5,708 6.2 Value of Txn (Crore) 9.0 9.0 Position during the quarter -Avg per day (Crore) 8.0 815 845 849 762 563 Mar-22 Jun-22 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 1,277 2.9 Value of Txn (Crore) 3.0 Avg per day (Crore) 3.0 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 48 14 268 279 250 220 198 2.0 2.0 Karnataka Bank Ltd. Your Family Bank. Across India. 9.0#50Digital initiatives during Q1 FY23 Online Savings account opening 2 through Video KYC Restricted Access facility in Mobile Banking- Self registration without debit card 4 Introduction of 'Hindi' language 3 Introduction of Security tips in Mobile Banking in Mobile Banking Implementation of upgraded HRMS 5 6 Real Time Safe deposit Locker booking facility in Mobile Banking DHiRa, Chatbot for personal loan digital journey 7 8 eStamping facility through NeSL Listing of Branch locations in Google Maps 9 10 Local search results using Google 'My Business Tool' 47 ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#51Dedicated Market Intelligence Unit (MIU) for sourcing intelligence from external sources on borrowers with exposure *100 Crores and above Effective Risk Management Systems ISO 9001: 2015 Bank's Risk Management practices and processes have been accredited with the ISO 9001: 2015 standard on Quality Management Systems Periodical monitoring & reviewing of risk profile of the Bank. 02 Effective ALM/mid office to monitor Liquidity risk/ Market risk on a continuous basis. 03 Compliant with the extant 'Basel III' guidelines of RBI 04 RISKS 07 01 MANAGING 05 06 Enterprise level fraud risk management system (ELFRMS) to effectively control prevent online suspicious transactions done by customers & other digital channel transactions. 50 Internal Credit Rating for borrowers above 25 lakh and 'Pool based Approach' rating for borrowers below 25 lakh & all schematic advances including agriculture. 'KBL96' rating model developed for all sanctions under digital journey. Effective Operational risk management by: Building up a database of internal Loss data, near-miss cases and other Operational risk events, since Sept 2007. AML monitoring system to scrutinize the customer transactions to ensure compliance to the extant guidelines Karnataka Bank Ltd. Your Family Bank. Across India.#52Table of contents 01 Highlights Q1 FY23 Financial headline numbers and Key ratios 02 Company Overview 03 Evolution, Presence and Timeline Financial Performance Q1 FY23 Financial Results, Business numbers, Productivity ratios, Asset Quality 04 Digital Presence 550 Digital & Risk Management systems, Digital adoption and ADC 05 Business Strategy Corporate Goal and Roadmap ahead ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#53KBL @ 99 Focus areas for the FY 2022-23 Implementation of KBL-NXT (KBL- VIKAAS 2.0 and Cyber Fraud Management) Integrated Management of Asset Quality SMA, NPA, Restructured Portfolio, Technical written-off accounts etc O ✡ ෆ v Opening of DBUS (Digital Banking Units) as per RBI Guidelines Growth Management- Credit & CASA Including garnering Government business Re-aligning banking activities to ESG Protocols 52 ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#54Projects in pipeline for Impact NXT ● प्रतिभूति AA Jhm Account Aggregator* Comprehensive Financial Data @ One Place gary मांग परिस्थित्व का at ufiny NANG CU CERSAI 129 KYC Automation# Onboarding & Compliance @ One Place @ One Place MSME Banking NEO Platform BANK S.E.E.D Secure & Compliant Ease & Experience Efficient & Empowered Disrupt & Transform Comprehensive Financial services @ One Place Analytical Centre Of Excellence Data Collaboration: Business Insights & Data @ One Place * Under implementation along with Perfios as TSP,Anumathi, FinVU & N@DL as AA # Under Contract Finalization 53 ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#55Business Strategy- KBL @ 100- for FY 2023-24 and beyond... KBL VIKAAS 3.0 New transformation journey KAL 迎 Digital Bank of the Future End to end digital solutions under KBL-NXT 54 ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#56Board Of Directors Mr Pradeep Kumar Panja Part-Time Chairman (Independent Director) Mr Keshav Krishnarao Desai Independent Director Mrs Mythily Ramesh Independent Director Mr Mahabaleshwara M S Managing Director & CEO CA B R Ashok Non-Independent Director Justice AV Chandrashekar Independent Director Mrs Uma Shankar Independent Director Dr D S Ravindran Independent Director Mr Balakrishna Alse S Independent Director Mr Jeevandas Narayan Independent Director CA K Gururaj Acharya Independent Director 55#57Thank You WE EXPRESS OUR HEARTFELT GRATITUDE TO ALL OUR STAKE HOLDERS FOR THEIR TRUST & SUPPORT AND SOLICIT THEIR CONTINUED PATRONAGE, AS WE CONTINUE OUR JOURNEY WITH RENEWED DEDICATION & COMMITMENT TO MAKE KARNATAKA BANK "A DIGITAL BANK OF THE FUTURE". 56 ✡ Karnataka Bank Ltd. Your Family Bank. Across India.#58Disclaimer This presentation has been prepared by Karnataka Bank (the “Bank") solely for providing information about the Bank. This presentation is confidential and may not be copied or disseminated, in whole or part, in any manner. This presentation has been prepared by the Bank based on information and data which the Bank considers reliable, but the Bank makes no representation or warranty or undertaking, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness, correctness and reasonableness of the contents of this presentation. This presentation has not been approved and will not be reviewed or approved by any statutory or regulatory authority in India or by any Stock Exchange in India and may not comply with all the disclosure requirements prescribed thereof. This presentation may not be all inclusive and may not contain all of the information that you may consider material. 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. Any liability in respect of the contents of, or any omission from, this presentation is expressly excluded. 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 such information or opinions contained herein. Neither the Bank nor any of its respective affiliates, advisers or representatives, shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. The information contained in this presentation is only current as of its date. Certain statements made in this presentation may not be based on historical information or facts and may be "forward-looking statements", including those relating to the Bank's general business plans and strategy, its future financial condition and growth prospects, and future developments in its industry and its competitive and regulatory environment. Actual results may differ from these forward-looking statements due to a number of factors, including future changes or developments in the Bank's business, its competitive environment, information technology and political, economic, legal and social conditions in India and worldwide. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Bank disclaims no obligation to update forward looking statements to reflect events or circumstances after the date thereof. This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation and any information presented herein are not intended to be, offers to sell or solicitation of offers to buy the Bank's equity shares or any of its other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. The Bank may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person. 57 57 ✡ Karnataka Bank Ltd. Your Family Bank. Across India.