karnataka bank analysis sep 2014
TRANSCRIPT
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Analysis of Financial Results
September 2014
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2
Table of Contents
Business Strategy
Financial Performance
Annexure
Company Overview
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3
90 years of banking history1.
Pan-India footprint2.
Robust technology and risk management systems3.
Strong productivity, capital adequacy ratios4.
Experienced management team5.
Company Overview
Highest Standard of Corporate Governance6.
Business Process Reengineering [BPR]7.
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Incorporated in 1924, Karnataka Bank
is one of the oldest time tested private
sector Banks
Offers wide variety of corporate and
retail banking products and services
to over 8.4millioncustomers
Forayed into General Insurance
business as a JV partner in Universal
Sompo General Insurance Company
Limited
1,390service outlets with 10Regional
Offices, 618 branches, 4 Extension
Counters and 758 ATMs in 401
centres across India as on September
30, 2014
Business Turnover of 73,914 crore as
at 30.09.2014.
1995
1977
1966
1961
1960 Took over assets and liabilities of Sringeri Sharada Bank Ltd
Took over assets and liabilities of the Chitaldurg Bank
Took over assets and liabilities of Bank of Karnataka, Hubli and opened 14 new branches
Became an authorised dealer of foreign exchange
Public issue of 45 lakh equity shares in October 1995
2000 Implementation of Finacle CBS
2002 Bancassurance tie-up with MetLife Maiden bonus issue in the ratio of 1:1
2005 Completed 2:1 rights issue to raise`160 crs
2006
Floated general insurance JV along with Allahabad Bank, Indian Overseas Bank, DaburInvestments and Sompo Japan Insurance
Launched CDSL-DP services at select branches
1924 Incorporated on 18thFebruary 1924 at Mangalore by Late B R Vyasarayachar & other leading
members of the South Kanara Region
2003 Right issue in the ratio of 1:2
2007 Completion of 100% core banking
2009 Compliance with Basel-II norms
2010 Maiden QIP aggregate`160.83 crs.
2012
BPR implementation under the guidance of M/s KPMG Advisory Services Pvt Ltd. commenced
Business Turnover crossed the milestone of`50,000 crore No. of branches crossed 500 Average turnover per branch crossed`100 crore Launched ASBA facility
2011 Right issue of`457.03 crore in the ratio of 2:5. Launched Online Trading facility
History & Evolution
2013 Secured ISO 27001 : 2005 Certificate from NQA
No. of branches reached 600 & No. of ATMs reached 7002014
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Awards & AccoladesIN 2014
Bagged ASSOCHAM's [Associated Chambers of Commerce & Industry of India] Certificate of Excellence for Social
Banking, under private sector banks category.
Bagged ABP News BFSI [Banking, Financial Services & Insurance] Best Bank Award 2014 under the category of Private
Sector Banks.
Bagged FIEO [Federation of Indian Export Organization] Southern Region Export Excellence Award 2012-13 under the
category of Best Performing Financial Institution, Southern Region.
IN 2013 Bagged IBA Banking Technology Awards for 2012-13 under the following category of private sector banks:
(i) 2ndrunner up for Customer Management Initiative.
Bagged IDRBT Banking Technology Excellence Awards for 2012-13 among SmallBanksunder the following categories:
(i) Best Bank for Managing IT risks,
(ii) Best Bank for use of IT for business innovation.
Bagged Sunday Standard FINWIZ 2013 Best Bankers Awards under the following categories:
(i) Best Bank for Customer Friendliness under the category of MidsizedBanks,
(ii) Best Bank for Customer Orientation under the category of PrivateSector Banks.
(iii) Best Bank for HR under the category of PrivateSector Banks.
Bagged Runner-upof ASSOCHAM Social Banking Excellence Award 2013 under the private sector banks category.
5
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Pan-India footprintPan-India Presence Total 1,390 outlets 10 regional offices, 618 branches,
4 Extension Counters & 758 ATMs
Specialized branches for Forex, Industrial, Agriculture,
MSME, Corporate business & Financial Inclusion
63 Financial Inclusion branches, 41 Ultra Small branches
Expanding network in northern India also.
25
21
1
4
20
7
6
7
3
384
15
5
38
9
1
4
5
40
9
3
13
Has the strongest presence inSouth India with 482 branches
No of branches & ATMs
Area wise distribution of branches (Sept 14)
558 600 618
758700
568
Sept'13 Mar '14 Sept '14
Branches ATMs
Metro
26%
Urban
30%Semi
Urban
24%
Rural
20%
Top 5 States:Karnataka (384), Tamilnadu (40),
Maharashtra (38), Andhra Pradesh (25),Delhi (20)
17
17
25
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Robust technology platform and risk management systems
Integrated Risk Management Committee develops policies and strategies for integrated riskmanagement, monitors and reviews risk profile of the bank periodically
Internal Credit Rating of all the borrowers: Credit exposure above INR 25 lakh are rated borrower-wiseand credit facilities below INR 25 lakh & all schematic advances including agri-credit proposals are ratedunder Poolbased approach
Continuous offsite surveillance of borrower accounts Effective ALM/mid office set up to monitor Liquidity risk/ Market risk on a continuous basis For effective Operational risk management: Bank is building up a database of internal Loss data, near-
miss cases and other Operational risk events, since Sept 2007 Bank has taken all necessary steps for migration to BaselII advanced approachesunder Credit, Market
and Operational Risk and also implemented the presently applicable BaselIIIguidelines of RBI
Strong technology platform
Effective risk management system
Pioneer in implementing Finacle(CBS) amongst the old generation private sector banks 100% networking of branches using CBS State-of-art IT set up which has enabled Anytime Anywhere banking through alternate delivery channels
such as ATMs, International Debit Card, Internet Banking, Mobile Banking, and also other products suchas NG-RTGS, NEFT, NECS, CTS, Online Trading, ASBA facility, Gift Card, Travel Card, Biometric Smart
Card under Financial Inclusion, PoS Network, Online inward remittance facility to NRIs, etc. Bank has implemented Interactive Voice Response (IVR) System as part of its commitment to enhance
Customer Care Service Implemented Loan Account Processing System (LAPS) software for efficient life cycle management of
loan accounts and improved monitoring.
Secured ISO27001:2005certificate from NQA [National Quality Assurance] for its three I.T. set-ups,encompassing the Information Security Management System (ISMS) at Data Centre, Near line Site
[NS] at Bangalore and Information Technology Department including the DR site [IT & DR] at HeadOffice, Mangalore. Migration to the latest version - ISO 27001:2013 is under progress.
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Return and Capital Adequacy Ratios
13.31%
10.53%8.44%
0.0%
5.0%
10.0%
15.0%
20.0%
Sept '13 Mar '14 Sept '14
Return on Equity (%) (after tax) Return on Assets (%) (after tax)
0.58% 0.71%
0.87%
0.0%
0.5%
1.0%
1.5%
Sept '13 Mar '14 Sept '14
Capital Adequacy (%) Basel II
10.0910.8210.81
2.212.482.66
13.3013.4712.31
0
2
4
6
8
10
12
14
Sept '13 Mar '14 Sept '14
Tier I Tier II
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Productivity ratiosOperating Profit per employee (
lakh) * Operating Profit per branch (
lakh) *
129.7114.5
153.8
0
50
100
150
200
Sept '13 Mar '14 Sept '14
Business per employee ( crs)
10.39.69.5
0
2
4
6
810
12
Sept '13 Mar '14 Sept '14
Business per branch ( crs)
114.9115.6 119.6
0
20
40
60
80
100
120
Sept '13 Mar '14 Sept '14
11.19.6
12.7
0
3
6
9
12
15
18
Sept '13 Mar '14 Sept '14* annualised
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Financial Performance
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Income & ProfitNet Income ( crs)
687
429 401
210311
123
0
100
200
300
400
500
600
700
Sept '13 Mar '14 Sept '14
Operating profitNet profit
Operating and Net Profit (
crs)
Net Interest Margins (%)
576
1056
534
232
506
294
1562
828 808
0
250
500
750
1,000
1,250
1,500
Sept '13 Mar '14 Sept '14
Other IncomeNet Interest Income
2.37%2.40%
2.51%
0%
1%
2%
3%
Sept '13 Mar '14 Sept '14
Cost to Income Ratio (%)
50.40%56.07%48.19%
0%
25%
50%
75%
Sept '13 Mar '14 Sept '14
(6 months) (6 months)(12 months) (6 months) (6 months)(12 months)
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10,74710,3089,040
33,27429,915
28,258
176
360717
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
' ' '
CASA Retail Purchase liability
12
DepositsDeposits ( crs)
Current
Account6.2%
Purchas
e
liability
0.4%
Savings
Bank
18.1%
Retail
Term
Deposits
75.3%
Deposits break up (Sept 14)
38,01444,19640,583
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Advances ( crs)
28,34526,469
29,718
0
5,000
10,000
15,000
20,000
25,000
30,000
Sept '13 Mar '14 Sept '14
1,364
1,574 1,656
530357288
0
500
1,000
1,500
Sept '13 Mar '14 Sept '14
Restructured loans Related a/cs
Restructured loans & related accounts ( crs)
Advances
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Advances
Segmentation of Advances (Sept14)
Medium
Ent.
4.1%
Other
Personal
loans
12.3% Large Ent.
15.8%
Housing
11.1%
*
Agriculture
16.9% Small-
Micro Ent.
16.8%
Others
23.0%
* However, this works out to 16.59% of the ANBC of31.03.2014.
48.9%48.2% 48.0%
51.8% 52.0% 51.1%
0%
25%
50%
Sept '13 Mar '14 Sept '14
Retail Advances Corporate Advances
Retail & Corporate Advances (%)
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AdvancesPriority Sector Advances ( crs)
13,15812,996
10,1499,4827,711
6,389
42.95%46.91%39.93%43.57%43.31% 45.26%
0
4,000
8,000
12,000
Mar '11 Mar '12 Mar '13 Sept '13 Mar '14 Sept '14
0%
20%
40%
Amount %
*
Agriculture Advances (
crs)
5,083
2,002
3,903
2,804
4,1864,790
16.59%17.29%16.47%
18.63%
15.85%
13.57%
0
1,000
2,000
3,000
4,000
5,000
Mar '11 Mar '12 Mar '13 Sept '13 Mar '14 Sept '14
9.0%
12.0%
15.0%
18.0%
Amount %
*
Advances to Weaker Section ( crs)
2,7512,8202,683
1,461
2,528
5408.98%
10.18%10.56%
3.66%
8.26%
12.07%
0
1,000
2,000
3,000
Mar '11 Mar '12 Mar '13 Sep t '13 Mar '14 Sep t '14
1.0%
6.0%
11.0%
Amount %
*
* Base figure for the calculation of
% is ANBC as on March 31stofprevious year.
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69.6% 69.9% 67.2%
100.7%
69.3%
52.6%62.3%
70.6%
111.4%
0%
50%
100%
Sept '13 Mar '14 Sept '14
CD Ratio Incremental CD Ratio [Annual]
Incremental CD Ratio [Quarter]
Credit Deposit ratio (%)
CD Ratio & Yield on Advances
12.04%12.17%12.39%
4.16%4.27%4.44%
0%
5%
10%
15%
Sept '13 Mar '14 Sept '14
Yield on advances Interest spread
Yield on Advances & Interest Spread (%)
16
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NPAsGross NPAs ( crs)
1061
836962
2.92%3.59% 3.53%
0
250
500
750
1,000
Sept '13 Mar '14 Sept '14
0%
1%
2%
3%
4%
5%
6%
Gross NPA Gross NPA %
Net NPAs ( crs)
593 702
5382.37%
1.91%2.25%
0
150
300
450
600
750
Sept '13 Mar '14 Sept '14
0.0%0.5%1.0%1.5%2.0%2.5%3.0%
Net NPA Net NPA %
415
654
496
92
457
271
0
200
400
600
Sept '13 Mar '14 Sept '14
Fresh Accretions to NPA Stock
Recovery / Upgradation
Fresh accretions and recoveries (
crs)
(6 months) (6 months)(12 months)
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InvestmentsInvestments ( crs)
15,22714,960 16,933
0
5,000
10,000
15,000
20,000
Sept '13 Mar '14 Sept '14
Shares
0.7%
SLR
66.7%
RIDF
12.3%
Debentures,
Bonds, CD,
MF
20.3%
Yield on Investments (excl. RIDF & MF) (%)
7.69%7.48%7.42%
0%
2%
4%6%
8%
Sept '13 Mar '14 Sept '14
HFT
0.2%AFS
26.5%
HTM
73.3%
AFS HFT HTM TOTAL
2.36 1.83 4.28 3.76
Duration
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Business Strategy
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PROJECT TEJAS BPR project of KBL
21
The Bank is implementing prioritized initiatives under
Project Tejas, a Business Process Re-engineering
[BPR] project of the Bank, which aims at high growth
with superior quality across assets & liabilities
portfolio and products & services.
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Priorities Strategy Product support
Increasingthe shareof CASAdeposits
Introduction of new SB & Currentaccount schemes tailored to suit thevarious market segments andperiodical overhauling of the schemeswith necessary sophistication /upgradation.
Increasing the penetration level ofalternate delivery channels such asATMs, Internet banking and mobilebanking facilities, POS etc.
Pushing the use of electronic
payment facilities like Real TimeGross Settlement (RTGS) and NEFT.
Effective marketing through afocused marketing vertical.
Holding CASA campaigns to reachout to new clients.
Salaried PersonsKBL Salary Privilege
StudentsKBL TarunKBL Kishore
WomenKBL Vanitha
HNIsKBL SB Money SapphireKBL SB Money PlatinumKBL SB Money Ruby
Businessmen/CorporatesKBL Current AccountsGeneralMoney PearlMoney RubyMoney Diamond
Money PlatinumMoney Diamond Plus
Business Strategy
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Priorities Strategy Product support
Credit
inCentreStage
Augmenting the credit disbursal throughspecially identified Focused Attention
Branches (FAB).Thrust on Micro, Manufacturing andService sector under MSME lending andintroduction of new loan products forMSME.
Modification in organizational set up foreffective credit dispensation andmonitoring.
Thrust on maintaining quality of creditand effective credit monitoring throughcreation of Regular Asset Monitoring Cell(RAM Cell) and Stressed Asset Monitoring
Cell (SAM Cell). Tackling Non Performing Assets throughearly and effective recovery action.
More thrust for Financial Inclusionagenda.
Housing & Car loan campaign has startedto have focused attention.
Business Strategy
23
Agri Sector
KBL- Instant
Agri CreditKBL - Agri GoldKBL - Kissan
Credit Card
KBL- Krishik
SarathiKBL Krishik
GodhamKBL Kisan Mitra
MSME Sector
KBL- MSE(Traders, Professionals,
Transport Operators etc)
KBL MSESupport
Vyaapar Mithra
Housing
KBL- Apna GharKBL Home
ComfortKBL - Ghar
Niveshan
KBL-Apna GharElite
KBL - MortgageKBL - Lease N Cash
Consumption
KBL- Car LoanKBL- Salaried
Persons
KBL- Insta CashKBL - Easy RideKBL-New Vahana
Mitra
Students KBL- Vidyanidhi
Women KBL- Mahila Udyog
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Priorities Strategy Product supportAugmenting
Fee Income
Leveraging the Clientele base to enhance the
OtherIncomeby Cross Selling / upselling ofother products such as insurance & mutualfund products, lockers, gift cards, travel cards,etc.Effective utilisation of customersegmentation tool CLIVE tool & CAF toolprovided by KPMG.
Concentrating more on acquirer business inATM channel.Appropriate counselling on FinancialPlanning relevant for various stages of oneslife/life style.
Life Insurance products
General Insurance productsMutual Fund products
Demat Services
Online Trading
POS Network
Gift Card
Travel Card
ASBA facility
Online inward remittancefacility for NRIs
Customer
RelationshipManagement
Retention / Acquisition of customer
through constant improvement in theservices rendered.
Speedy redressal of customer complaints& grievances.
Special attention & support to senior
citizens and differently enabled customers.
ATM facilities
Internet Banking facilitiesMobile BankingMoneyplant Visa
International Debit CardsE - Commerce Online paymentthrough Debit CardMCommerce Payment thro MobileMissed Call Banking facility
A dedicated Customer Service &Grievance Redressal Cell at HO.
Business Strategy
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Financial Inclusion Initiative
25
Bank is providing banking services to rural unbanked areas through 104 outlets, including 41 Ultra
Small Branches [USBs].
Bank plans to open another 41 service outlets, including 25 USBs, by the end of March 2015. Bank has sponsored 3 Financial Literacy & Credit Counseling [FLCC] Centres & plans to open 2 more
FLCCs in the current Financial Year.
Bank is one of the Trustees of Karnataka FarmersResource Centre, which serves as a Resource Centre
for providing training, counseling & consultancy services to farmers.
Bank is participating in the Govt. of Karnataka EBT Pilot project for NREGA / SSP beneficiaries.
Bank is participating in DBT programme of Govt. of India.
Bank has tied up with M/s BASIX Sub-k iTransactions Ltd. for providing end-to-end Business
Correspondent Services in the 82 Gram Panchayats covering 357 villages in the states of Karnataka and
Chattisghar.
Bank has introduced Basic Savings Bank Deposit Account [BSBD] & SB-Small Account with simplified
KYC requirement for hassle free opening of account.
Bank has also introduced the revised General Credit Card scheme which enables customers in rural &
semi urban area to avail hassle free credit for entrepreneurs in rural areas.
Bank is conducting account opening camps at various centers under Pradhan Mantri Jan-Dhan Yojana
[PMJDY].
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MSME Initiative
26
Focused attention through 160 specialised MSME branches to ensure hassle free flow of
credit to the sector.
Holding MSME cluster meets at various centres in association with stakeholders like DIC,ASSOCHAM, DSIA, etc.
Simplified systems & procedures, attractive rates of interest & collateral free loans upto
10 lakh.
Bank is extending differential rate of interest to MSE loans covered under CGTMSE.
Bank is not charging Processing Charges for loans to MSEs, upto 5 lakh limit.
Bank has entered into a MOU with Reliance Capital Ltd. for financing of MSMEs through
co-financing arrangement.
Bank has entered into a MOU with Credit Analysis & Research Ltd (CARE), for providing
Credit Rating Services & Due Diligence Services to the MSME clients of the Bank. Bank has entered into a MOU with M/s Ashok Leyland, Tata Motors, BEML, TVS Motors
for purchase of vehicles by Micro & Small Entrepreneurs.
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Other initiatives / developments
27
Agrimeetsare being held at various agri centres, by involving NABARD & Lead Bank.
Bank has entered into a MOU with M/s V.S.T Tillers Tractors Ltd. for financing farmers for purchase of
Tractors, Tillers and Farm Machineries.
Bank has entered into a MOU with M/s STARAGRI, for extending storage facilities to farmers and
finance against the warehouse receipts [WHR].
Exportersmeets are being held at various potential centres, in association with FIEO.
Bank has tied up with Times of Money to offer an internet based online money transfer solution,
Remit2India,to NRIs.
Bank has partnered with M/s UAE Exchange & Financial Service Lt.d., to offer inward remittance
arrangement with Xpress Money Services as a sub agent, with which NRIs can transfer money from
more than 150 countries.
Bank has been assigned a score of 75.9 under BCSBI Code Compliance Rating, indicating Above
Averagelevel of compliance & ranked 20 among 48 member banks.
MissedCall Banking Solutionsince introduced for account balance enquiry & mini statement.
Bank has launched i-Hundi facility through Interactive Voice Response [IVR] channel, wherein
Bankscustomers can donate funds to adored deities/temples/trusts which are registered with the Bank.
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Annexure
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Deposits & Advances
29
crs Sept-13 Mar-14 Sept-14
Total Deposits 38,014 40,583 44,196
CASA Deposits 9,040 10,308 10,747
Retail Deposits 28,258 29,915 33,274Purchase liability, CD, IBD 717 360 176
Total Advances 26,469 28,345 29,718
Priority Sector Advances 10,149 12,996 13,158
Agri Advances 4,186 4,790 5,083
MSE Advances 4,250 4,835 5,046
Advances to Weaker Section 2,683 2,820 2,751
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Income & Expenditure
crs Mar-14[12 months]
Sept-13[6 months]
Sept-14[6 months]
Interest Income 4,189 2,062 2,300Interest Expense 3,133 1,528 1,724
Net Interest Income 1,056 534 576
Fee Income 404 211 198
Treasury Income 102 83 34
Non-Interest Income 506 294 232
Total Income(Net of Interest Expense)
1,562 828 808
Operating Expenses 875 399 407
Operating Profit 687 429 401
Provision for loan losses in Adv./ losses in Invts. / Taxes / other 376 306 191
Net Profit 311 123 21030
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31
crs Mar-14[12 months]
Sept-13[6 months]
Sept-14[6 months]
Interest Income
Interest Income 4,189 2,062 2,300
Interest on Advances 3,162 1,557 1,710
Interest on Investments 1,022 496 586
Other interest 5 9 4
Yield on Advances 12.17% 12.39% 12.04%Adjusted yield on Invts. 7.34% 7.80% 7.71%
Interest Expense
Interest Expense 3,133 1,528 1,724
Interest on Deposits 2,976 1,455 1,659
Other interest 157 73 65Cost of Deposits 7.90% 7.95% 7.88%
Net Interest Income
Net Interest Income 1,056 535 576
Interest Spread in Lending 4.27% 4.44% 4.16%Net Interest Margin on average assets 2.40% 2.51% 2.37%
Interest Income & Interest Expenditure
31
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32
Capital Adequacycrs Sept-13 Mar-14 Sept-14
Total Risk Weighted Assets Basel II 26,068 28,200 30,240
Total Risk Weighted Assets Basel III 26,117 28,247 30,289Total Capital Fund 3,511 3,752 3,722
Total Tier I Capital 2,819 3,052 3,052
Paid up Equity Capital 188 188 188
Reserves under Tier I Cap. 2,631 2,864 2,864
Total Tier II Capital 692 699 670
Surplus Provisions & Reserves 186 199 234
Subordinated Debt Fund 506 500 436
CRAR under Basel II 13.47% 13.30% 12.31%
CRAR Tier I Capital 10.81% 10.82% 10.09%CRAR Tier II Capital 2.66% 2.48% 2.21%
CRAR under Basel III 13.22% 13.20% 12.08%
CRAR Common Equity Tier I Capital 10.57% 10.73% 10.04%
CRAR Tier I Capital 10.57% 10.73% 10.04%
CRAR Tier II Capital 2.65% 2.47% 2.04%32
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Outlook for 2014 -15
33
Business Turnover of 83,000 crore.
75 new Branches to take the total no. of Branches to 675. 300 new ATMs to take total no. of ATMs to 1,000.
Introduction of technology based facilities: e-Lobby, Passbook Printer Kiosk,
Loyalty points for debit card operations, Online account opening, Mobile POS
(MPOS), Online customer grievance redressal mechanism.
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BANK HAS COMPLETED 9 DECADES OF
PURPOSEFUL BANKING ON FEBRUARY 18, 2014. WE
EXPRESS OUR HEARTFELT GRATITUDE TO ALL OUR
STAKE HOLDERS FOR THEIR TRUST & SUPPORTAND SOLICIT THEIR CONTINUED PATRONAGE, AS
WE CONTINUE OUR JOURNEY WITH RENEWED
DEDICATION & COMMITMENT.
34
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Board of Directors
T S VishwanathNew DelhiChartered AccountantFormer President,ICAI
D Harshendra Kumar
Shri KshethraDharmastala,Dakshina Kannada
Dr. H Rama MohanKundapuraMedical Practitioner
S V Manjunath
ChikmagalurPlanter
AnanthakrishnaNon Executive Chairman
P Jayarama BhatManaging Director & CEO
T R ChandrasekaranChennai CharteredAccountant
35
Ashok HaranahalliBangaloreAdvocate
Mrs Usha Ganesh, IASBangaloreFormer Member ofKarnatakaAdministrativeTribunal
Rammohan Rao BelleBangalore FormerMD & CEO, SBI Gen.Insu. Co. Ltd
B A PrabhakarBangaloreFormer Chairman & MD ofAndhra Bank
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Disclaimer
This presentation has been prepared by Karnataka Bank (the Bank)solely for providing information about the Bank. This presentation is confidential and may notbe 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 Bankconsiders 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 requirementsprescribed 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 inrespect 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 itsrespective 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 Banksgeneral business plans and strategy, its future financial condition and growth prospects, and future developments in its industry and its competitiveand regulatory environment. Actual results may differ from these forward-looking statements due to a number of factors, including future changes or developments
in the Banksbusiness, 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 toplace undue reliance on these forward-looking statements. The Bank disclaims no obligation to update forward looking statements to reflect events or circumstancesafter the date thereof. This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needsof 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 Banksequityshares 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. TheBanksequity shares have not been and will not be registered under the U.S. Securities Act 1993, as amended (the Securities Act)or any securities laws in the UnitedStates and, as such, may not be offered or sold in the United States or to, or for the benefit of, U.S. persons (as such term is defined in Regulation S under theSecurities Act) absent registration or an exemption from the registration requirements of the Securities Act and applicable laws. Any offering of the equity sharesmade, if any, in the United States (or to U.S. persons) was made by means of a prospectus and private placement memorandum which contained detailedinformation about the Bank and its management, as well as financial statements. The Bank may alter, modify or otherwise change in any manner the content of thispresentation, without obligation to notify any person.