Analysis of Financial Results June 2016

Analysis of Financial Results
June 2016
Table of Contents
Company Overview
Financial Performance
Business Strategy
Annexure
2
Company Overview
1.
Time tested Bank with 92 years of banking history
2.
Pan-India footprint
3.
Robust technology and risk management systems
4.
Strong productivity, capital adequacy ratios
5.
Experienced management team & Professional Board
6.
Highest Standard of Corporate Governance
7.
Business Process Reengineering under implementation
8.
Consistent track record of profit since inception
9.
Powered by KBL - VISION 2020
3
History & Evolution
• 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
2015
• Unveiled KBL – VISION 2020 & adopted Vision Statement
• No. of ATMs crossed 1,000
2014
• Business turnover crossed the milestone of ` 75,000 crore
2013
• Secured ISO 27001 : 2005 Certificate from NQA
• BPR implementation under the guidance of M/s KPMG Advisory Services Pvt Ltd. commenced
2012
services to over 7.5 million
• 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
2010
• Maiden QIP aggregate ` 160.83 crs.
2009
• Compliance with Basel-II norms
business as a JV partner in
2007
Universal
2006
• Completion of 100% core banking
• Floated general insurance JV along with Allahabad Bank, Indian Overseas Bank, Dabur
Investments and Sompo Japan Insurance
• Launched CDSL-DP services at select branches
customers
• Forayed into General Insurance
Sompo
General
Insurance Company Limited
• 2,033 service outlets with 733
2005
• Completed 2:1 rights issue to raise ` 160 crs
2003
• Right issue in the ratio of 1:2
2002
• Bancassurance tie-up with MetLife
• Maiden bonus issue in the ratio of 1:1
2000
• Implementation of “Finacle” CBS
1995
• Public issue of 45 lakh equity shares in October 1995
1977
• Became an authorised dealer of foreign exchange
1960
to
1966
• Took over assets and liabilities of Sringeri Sharada Bank Ltd, Chitaldurg Bank & Bank of
Karnataka, Hubli.
1924
• Incorporated on 18th February 1924 at Mangalore by Late B R Vyasarayachar & other leading
members of the South Kanara Region
4
branches, 3 Extension Counters
and 1,297 ATMs in 484 centres
across India as on June 30, 2016
• Business Turnover of ` 86,447
crore as at 30.06.2016.
Awards & Accolades
Awards & accolades received during the FY 2016-17 :
 Bank has bagged „Award of Excellence‟ for “Outstanding Performance in MSME funding”
instituted by Federation of Industry, Trade & Services [FITS]
 Bank has bagged STP Award in recognition of its improved payment formatting & StraightThrough Rate for the year 2015-16 by The Bank of New York Mellon.
 Bank has bagged „CFBP Jamnalal Bajaj Uchit Vyavahar Puraskar – 2015‟ “Certificate of
Merit” under the category „Service Enterprises – Large‟ for Fair Business Practices.
 Bank has bagged „Greentech Safety Award 2016‟ instituted by M/s Greentech Foundation,
New Delhi, under „Gold‟ category in Banking sector, for its safety & security measures at
Head Office.
 Bank has bagged "Certificate of Special Mention for use of Technology for Financial
Inclusion” among Small Banks, instituted by IDRBT.
5
Awards & Accolades – contd..
Shri P Jayarama Bhat, MD & CEO of the Bank
and Shri Raghavendra Bhat M, General
Manager, receiving the "Certificate of Special
Mention for use of Technology for Financial
Inclusion” among Small Banks, instituted by
IDRBT, from Dr. Raghuram G. Rajan,
Governor, Reserve Bank of India, in a function
held at Hyderabad on 18-07-2016.
Shri Mahabaleshwara M S, Chief General
Manager of the Bank, receiving the
Certificate of Merit under the category
“Service Enterprises – Large” in the 28th
CFBP Jamnalal Bajaj Awards 2015 for Fair
Business Practices, from Shri Ajay
Piramal, Chairman, Piramal Group, in a
function held at Mumbai on 14-06-2016 .
Pan-India footprint
Pan-India Presence
 Total 2,033 outlets –733 branches, 3 Extension Counters
& 1,297 ATMs
No of branches & ATMs
Branches
 Total 27 e-Lobbies & 25 mini e-Lobbies
ATM s
1,275
1,297
1,036
 Specialized branches for Forex, Industrial, Agriculture,
MSME, Corporate business & Financial Inclusion
733
725
682
 93 Financial Inclusion branches, 37 Ultra Small branches
 Expanding network in northern India also.
Jun'15
21
5
Area wise distribution of branches (Jun „16)
11
6
3
7
4
18
17
25
7
2
1
43
457
1
49
Metro
25%
18
8
Has the strongest presence in
South India with 574 branches
32
17
Jun '16
5
2
9
7
Mar'16
Top 5 States:
Karnataka (457), Tamilnadu (49),
Maharashtra (43), Andhra Pradesh (32),
Delhi (21)
7
Rural
22%
Semi
Urban
24%
Urban
29%
Robust technology platform and risk management systems
Strong technology platform
The existing “ISO 27001:2013” certificate encompassing the Information Security Management System
(ISMS) at the Bank‟s Data Centre, Near line Site [NLS] at Bengaluru and Information Technology
Department including the DR site [IT & DR] at Head Office, Mangaluru, has been renewed by AJA
Registrars, UK, for a further period of three years up to March 2019, reflecting the Bank‟s continued
commitment to technology adoption.
 Pioneer in implementing “Finacle” (CBS) amongst the old generation private sector banks
 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.
 Enabled Online Account Opening, implemented „M-Passbook‟ (Mobile Passbook), „KBL Apna
App‟ (SMS Banking) etc as additional facilities for the convenience of customers.
 Also offers other products such as NGRTGS, 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.
 Implemented Lending Automation Processing System (LAPS) software for efficient life cycle
management of loan accounts and improved monitoring.
 Implemented an Enterprise Level Fraud Risk Management System (ELFRMS) for effective cyber
fraud prevention across delivery channels.
8
Robust technology platform and risk management systems
Effective risk management system
 Integrated Risk Management Committee develops policies and strategies for integrated
risk management, 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-wise and credit facilities below INR 25 lakh & all schematic advances including
agri-credit proposals are rated under „Pool based 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:
o
Bank is building up a database of internal Loss data, near- miss cases and other
Operational risk events, since Sept 2007.
o
Bank has an effective AML monitoring system to scrutinize the customer transactions to
ensure compliance to the extant guidelines.
 Bank has taken all necessary steps for migration to „Basel II advanced approaches‟ under
Credit, Market and Operational Risk and also complied with the extant „Basel III‟
guidelines of RBI.
 Bank has implemented a scientific Fund Transfer Pricing (FTP) & Customer Profitability
Management System (CPMS) to assess the performance of branches / products /
portfolios / customers.
9
Return and Capital Adequacy Ratios
Return on Equity (%) (after tax)
Return on Assets (%) (after tax)
20.0%
15.0%
12.70%
1.5%
12.96%
11.73%
1.0%
10.0%
5.0%
0.5%
0.0%
0.0%
Jun'15
Mar '16
Jun '16
0.84%
Jun'15
Capital Adequacy (%) - Basel III
Tier I
Tier II
12.03
12.07
12
1.79
1.47
10.28
10.56
11.64
1.38
8
4
10.27
0
Jun'15
Mar '16
10
Jun '16
0.76%
Mar '16
0.85%
Jun '16
Productivity ratios
Operating Profit per employee (` lakh) *
15
12.5
12
Operating Profit per branch (` lakh) *
13.5
11.0
150
9
140.2
117.9
142.9
100
6
50
3
0
0
Jun '15
Mar '16
Jun '16
Jun'15
Mar '16
Jun '16
* annualised
Business per employee (` crs)
12
10.2
10.8
Business per branch (` crs)
11.1
120
114.5
116.4
Jun '15
Mar '16
117.9
100
8
80
60
4
40
20
0
0
Jun '15
Mar '16
Jun '16
11
Jun '16
Financial Performance
12
Income & Profit
Net Income (` crs)
Other Income
Net Interest Income
Operating and Net Profit (` crs)
1846
Operating profit
1,000
543
1,500
Net profit
855
750
1,000
500
450
1303
539
119
174
331
365
250
Jun '15
Mar '16
Jun '16
(3 months)
(12 months)
(3 months)
Net Interest Margins (%)
2.55%
2.40%
122
109
Jun '15
Mar '16
Jun '16
(3 months)
(12 months)
(3 months)
75%
2.55%
50%
1%
25%
0%
0%
Mar '16
262
Cost to Income Ratio (%)
2%
Jun '15
239
0
0
3%
415
500
Jun '16
13
46.94%
53.68%
51.41%
Jun '15
M ar '16
Jun '16
Deposits
Deposits (` crs)
CASA share to total Deposits
CASA
50,000
Retail
Purchase liability
51,501
50,488
46,767
30%
154
156
25.00%
26.26%
26.22%
Jun '15
Mar '16
Jun '16
20%
163
45,000
10%
40,000
35,000
34,911
30,000
37,073
37,841
0%
25,000
20,000
15,000
Deposits break up (Jun „16)
10,000
5,000
11,693
13,261
13,504
Savings
Bank
19.90%
0
Jun '15
Mar '16
Jun '16
Retail
Term
Deposits
73.48%
14
Current
Account
6.32%
Purchase
liability
0.30%
Deposits
NRI
Cost of Deposits
deposits
6.15%
8%
7.67%
7.51%
Domestic
6.95%
deposits
93.85%
6%
4%
Jun '15
Mar '16
NRI Deposits (` crs)
Jun '16
Amount
%
3,045
3,000
2,000
3,165
*
2,657
5.68%
10%
8%
6.03%
6.15%
6%
4%
1,000
2%
0
0%
Jun '15
15
Mar '16
Jun '16
Advances
External rating wise Credit Portfolio as of June „16
Advances (` crs)
35,000
31,352
33,902
34,946
30,000
25,000
20,000
15,000
10,000
5,000
0
Jun '15
Mar '16
Jun '16
Rating
No of
Borrowers
AAA
7
1,042.35
2.94%
AA
17
1,238.93
3.50%
A
16
893.23
2.52%
BBB
13
621.01
1.75%
BB
14
536.08
1.51%
B
7
313.06
0.88%
C
-
-
-
D
8
828.15
2.34%
Total
82
Gross Bank Credit
16
Balance O/s
(in crs)
% to
GBC
5,472.81 15.45%
35,411.86
Advances
Retail & Corporate Advances (%)
Segmentation of Advances (Jun „16)
Retail Advances
50%
Corporate Advances
50.7%49.3%
52.8%
47.2%
52.1%
47.9%
Jun '15
Mar '16
Jun '16
Others
27.36%
Agricultur
e*
12.90%
MicroSmall Ent.
22.96%
25%
0%
Other
Personal
loans
5.80%
Housing
12.50%
Medium
Large Ent.
Ent.
14.58%
3.90%
* However, this works out to 16.85% of the ANBC of
30.06.2015.
17
Advances
Priority Sector Advances (` crs)
Amount
%
46.91% 46.82%
16,000
12,996
14,345
46.16% 47.57% 47.89% *
16,150 16,028
14,284
Agriculture Advances (` crs)
40%
12,000
Amount
8,000
20%
5,000
4,000
0
0%
Mar '14
Mar '15
Jun '15
Mar '16
5 ,5 6 0
6,000
4,000
%
5 ,8 3 7
5 ,6 4 0
18.0%
4 ,7 9 0 5 ,14 6
17.29%
17.97%
*
16.79%
17.19% 16.85%
15.0%
3,000
Jun '16
2,000
12.0%
1,000
Advances to Weaker Section (` crs)
0
9.0%
M ar '14
A mo unt
3,000
2,000
2,820
M ar '15
Jun '15
M ar '16
Jun '16
%
2,585
2,564
2,603
2,567
11.0%
10.18%
8.44%
8.29%
1,000
7.67%
7.67%
0
*
6.0%
1.0%
M ar '14
M ar '15
Jun '15
M ar '16
Jun '16
18
* Base figure for the calculation of
% is ANBC as on March 31st of
previous year.
CD Ratio & Yield on Advances
Credit Deposit ratio (%)
CD Ratio
Incremental CD Ratio [Annual]
Incremental CD Ratio [Quarter]
118.2%
100%
103.0%
67.2%
67.0%63.1%
67.9%
75.9%
49.6%
50%
0%
Jun '15
-50%
Mar '16
Jun '16
-43.3%
Yield on Advances & Interest Spread (%)
Yield on advances
15%
11.98%
Interest spread
11.55%
10.98%
10%
4.31%
5%
4.04%
4.03%
0%
Jun '15
19
Mar '16
Jun '16
NPAs
Gross NPAs (` crs)
Net NPAs (` crs)
Gro s s NP A
1,200
800
Gro s s NP A %
1389
1180
1034
3.26%
3.92%
3.44%
Ne t NP A
6%
5%
900
639
600
2 .0 5 %
2%
1%
0
9 11
3 .0 %
2 .5%
2 .6 1%
2 .0 %
1.5%
795
4%
3%
400
Ne t NP A %
2 .3 5 %
300
1.0 %
0 .5%
0
0 .0 %
0%
Jun '15
Mar '16
Jun '16
Jun '15
M ar '16
Fresh accretions and recoveries (` crs)
Fresh Accretions to NPA Stock
Recovery / Upgradation
1125
889
1000
750
500
250
265
337
175
128
0
Jun '15
(3 months)
Mar '16
Jun '16
(12 months)
20
(3 months)
Jun '16
Restructured Advances
(` crs)
Restructured loans & related accounts
Restructured loans
Related a/cs
Of which, NPA
Sectorwise Restructured Adv. as of Jun‟16:
2,203
2,000
342
1,759
625
1,500
1,000
1,808
628
1,861
1,183
500
182
1,131
261
Mar '16
Large Industry
797.33
135.60
Infrastructure
627.49
62.99
MSME [excl. Infrastructure]
115.25
17.57
89.99
1.49
Others
76.55
32.69
Agriculture
43.66
11.14
6.81
0.05
2.16
0.00
1,759.24
261.54
Real Estate [including
262
0
Jun '15
Restructured Of which,
Adv.
NPA
Sector
Jun '16
CRE]
Education
[Individual+Institution]
Wholesale/Retail Trade
[excl. services]
Grand Total
21
Investments
AFS
35.49%
Investments [excl. RIDF] (` crs)
20,000
15,257
HFT
0.60%
16,445
16,257
15,000
10,000
5,000
0
HTM
63.90%
Duration
Jun '15
Mar '16
Jun '16
AFS
HFT
HTM
TOTAL
2.32
0.07
5.25
4.20
Debentures,
Bonds, CD,
MF
30.05%
Yield on Investments (excl. RIDF & MF) (%)
SLR
69.38%
8%
6%
4%
2%
0%
Shares
0.57%
22
7.61%
7.59%
7.55%
J un '15
M a r '16
J un'16
Share holders‟ value
Share holding pattern (Jun 2016)
Banks, FIs,
MF,
Insurance
Cos
9.82%
Earning Per Share (`)
Foreign
Portfolio
Investors
19.62%
Others
10.35%
25
20
15
10
5
0
23.20
Jun '15 *
Indian
Public
60.21%
22.04
Mar '16
25.80
Jun '16 *
* annualised
Book value (`)
Dividend (%)
60%
50%
40%
50%
50%
175
162.00
179.84
195.83
40%
30%
125
20%
10%
0%
75
Mar '14
Mar '15
Mar '16
M ar '14
23
M ar '15
M ar '16
Leveraging on Technology
Migration to Digital Channel
[share of ADC transactions to total CBS transactions]
60%
50.41%
42.26%
51.60%
44.49%
40%
20%
Mar '14
Mar '15
Mar '16
Jun '16
Business Strategy
25
KBL – VISION 2020
 KBL – VISION 2020 document is unveiled and Bank has adopted a Vision
Statement, “To be a Progressive, Prosperous and well Governed Bank”.
 Bank‟s total business turnover is projected to increase in a progressive manner to
touch ` 1,80,000 crore by March 2020, with deposits of ` 1,00,000 crore & advances
of ` 80,000 crore.
 CASA is projected to constitute 27.40% of total deposits by March 2020.
 Service outlets are projected to touch 3,500 [1,000 Branches + 2,500 ATMs] by
March 2020. E-lobbies / Mini e-lobbies to touch 250.
 Digital Banking initiative to be taken forward by increasing the digital touch
points.
 Bank aims to become a Preferred Banker to atleast 1% of India‟s population by
March 2020.
 Credit quality initiatives, Risk management practices, Compliance culture &
Marketing initiatives to be further strengthened.
26
Business Strategy
Product support
Priorities
Strategy
Increasing
the share
of CASA
deposits
• Introduction of new SB & Current
account schemes tailored to suit the
various market segments and periodical
overhauling of the schemes with necessary
sophistication / upgradation.
•Introduced Group Personal Accident
insurance scheme to SB a/c holders.
• Increasing the penetration level of
alternate delivery channels such as ATMs,
Internet banking and mobile banking
facilities, POS etc.
• Pushing the use of electronic payment
facilities like Real Time Gross Settlement
(RTGS) and NEFT.
• Effective marketing through a focused
marketing vertical.
• Holding CASA campaigns to reach out
to new clients.
27
Salaried Persons
 KBL - Salary Privilege
Students
 KBL – Tarun
 KBL – Kishore
Women
 KBL –Vanitha
HNIs
 KBL – SB Money Sapphire
 KBL – SB Money Platinum
 KBL – SB Money Ruby
SB – Suraksha for all SB a/c
holders

Businessmen/Corporates
KBL Current Accounts
 General
 Money Pearl
 Money Ruby
 Money Diamond
 Money Platinum
 Money Diamond Plus
Business Strategy
Priorities
Strategy
Product support
Credit
in
Centre
Stage
 Augmenting the credit disbursal through
Agri Sector
specially identified
Branches (FAB).
Focused
Attention
 Thrust on Micro, Manufacturing and
Service sector under MSME lending and
introduction of new loan products for
MSME.
 Modification in organizational set up for
effective
credit
dispensation
and
monitoring.
Formed
CrMD
[Credit
Monitoring Dept.] for exclusive monitoring
of loans.
 Thrust on maintaining quality of credit
and effective credit monitoring through
creation of Regular Asset Monitoring Cell
(RAM Cell) and Stressed Asset Monitoring
Cell (SAM Cell).
 Tackling Non Performing Assets through
early and effective recovery action.
 More
agenda.
thrust
for
Financial
Inclusion
 Housing & Car loan campaign has started
to have focused attention.
28
KBL- Instant
Agri Credit
 KBL - Agri Gold
 KBL - Kissan
Credit Card

KBL - Krishik
Sarathi
 KBL – Krishik
Godham
 KBL – Kisan Mitra

MSME Sector

KBL- MSME
KBL – MSE
Support
 Vyaapar Mithra

(Traders, Professionals,
Transport Operators etc)
Housing
KBL- Apna Ghar
 KBL – Home
Comfort
KBL - Ghar
Niveshan

KBL-Apna Ghar
Elite
KBL - Mortgage
 KBL - Lease N Cash
 KBL – Home TopUp

Consumption

KBL- Car Loan
 KBL- Salaried
Persons

KBL- Insta Cash
 KBL - Easy Ride
KBL-New Vahana
Mitra
Students

KBL- Vidyanidhi
Women

KBL- Mahila Udyog
Business Strategy
Product support
Priorities
Strategy
Augmenting
Fee Income
 Leveraging the Clientele base to enhance the
“Other Income” by Cross Selling / upselling of
other products such as insurance & mutual fund
products, lockers, gift cards, travel cards, etc.
 Effective
utilisation
of
„customer
segmentation‟ tool – CLIVE tool & CAFÉ tool
provided by KPMG.
 Concentrating more on acquirer business in
ATM channel.
 Appropriate counselling on “Financial
Planning” relevant for various stages of one‟s
life/life style.

Customer
Relationship
Management
 Retention / Acquisition of customer
through constant improvement in the
services rendered.
 Speedy
redressal
of
customer
complaints & grievances.

 Special attention & support to senior
citizens
and
differently
enabled
customers.
29
Life Insurance products
 General Insurance products
 Health Insurance
 Mutual Fund products
 Demat Services
 Online Trading
 POS Network
 Gift Card
 Travel Card
 ASBA facility
ATM facilities
 Internet Banking facilities
 Mobile Banking
 e-Lobby facility
 Moneyplant Visa Intl. Debit Cards
 E - Commerce Online payment through
Debit Card
 M–Commerce Payment thro Mobile
 Missed Call Banking facility
 Mobile Apps
 IVR facility to support customers
 Online account opening
 A dedicated Customer Service &
Grievance Redressal Cell at HO
 Online Grievance Redressal Mechanism
Financial Inclusion Initiative

Bank is providing banking services to rural unbanked areas through 214 Gram Panchayats, consisting of 1,039
villages, of which, 102 are being covered by branches and rest are being covered by Business Correspondents.

Bank has a total of 37 USBs as at June 2016.

Bank has sponsored 5 Financial Literacy & Credit Counseling [FLCC] Centers.

Bank is one of the Trustees of Karnataka Farmers‟ Resource 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 is also participating in Modified DBTL for both Aadhaar based as well as Non-Aadhaar based (LPG ID)
across the country.

Bank has tied up with M/s BASIX Sub-k iTransactions Ltd. and M/s Integra Micro Systems (P) Ltd. for providing
end-to-end Business Correspondent Services in the 121 Gram Panchayat covering 561 villages in the states of
Karnataka and Chattisgarh.

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 has implemented Pradhan Mantri Jan-Dhan Yojana [PMJDY] and has opened 17,38,746 accounts during the
period from 15.08.2014 to 30.06.2016.

All Branches of the Bank are registered as service provider for Atal Pension Yojana and branches are opening
accounts of all eligible customers since August 2015.
30
MSME Initiative
 Additional 50 branches identified as MSME branches and focused attention through all 210
specialized 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.
 Bank has launched Online Loan Application Submission for MSME customers on Bank‟s
website under the MSME portal.
 Bank is augmenting credit under Prime Ministers Mudra Yojana and Stand Up India schemes.
31
Other recent initiatives / developments
 “Missed Call Banking Solution” since introduced for account balance enquiry & mini
statement.
 “KBL-ApnaApp” & “KBL-mPassBook” – 2 new mobile applications launched, thereby
enabling customers to carry on a host of banking activities through their mobile phone.
 Launched Sovereign Gold Bond scheme.
 Introduced online account opening.
 Launched KBL-Suraksha Insurance scheme for SB a/c holders.
 HRMS project is under implementation.
32
Annexure
33
Deposits & Advances
` crs
Jun-15
Total Deposits
Mar-16
Jun-16
46,767
50,488
51,501
CASA Deposits
11,693
13,261
13,504
Retail Deposits
34,911
37,073
37,841
163
154
156
31,352
33,902
34,946
14,284
16,150
16,028
Agri Advances
5,560
5,837
5,640
MSE Advances
6,588
8,037
8,131
2,564
2,603
2,567
Purchase liability, CD, IBD
Total Advances
Priority Sector Advances
Advances to Weaker Section
34
Income & Expenditure
Mar-16
Jun-15
Jun-16
[12 months]
[3 months]
[3 months]
Interest Income
4,992
1,229
1,261
Interest Expense
3,689
898
896
Net Interest Income
1,303
331
365
480
109
132
62
10
42
543
119
174
1,846
450
539
Operating Expenses
991
211
277
Operating Profit
855
239
262
Provision for loan losses in Adv. / losses in
Invts. / Taxes / other
440
130
140
Net Profit
415
109
122
` crs
Fee Income
Treasury Income
Non-Interest Income
Total Income (Net of Interest Expense)
35
Interest Income & Interest Expenditure
` crs
Mar-16
Jun-15
Jun-16
[12 months]
[3 months]
[3 months]
Interest Income
Interest Income
4,992
1,229
1,261
Interest on Advances
3,700
928
928
Interest on Investments
1,190
278
313
Other interest
102
2
20
11.55%
11.98%
10.98%
7.76
7.38%
8.41%
3,689
898
896
Interest on Deposits
3,588
872
874
Other interest
101
26
22
7.51%
7.67%
6.95%
1,303
331
365
4.04%
4.31%
4.03%
2.40%
2.55%
2.55%
Yield on Advances
Adjusted yield on Invts.
Interest Expense
Interest Expense
Cost of Deposits
Net Interest Income
Net Interest Income
Interest Spread in Lending
Net Interest Margin on average assets
36
Capital Adequacy under BASEL III
Jun-15
` crs
Mar-16
Jun-16
32,786
34,787
35,797
Total Capital Fund
3,958
4,185
4,168
Total Tier I Capital
3,369
3,675
3,675
Paid up Equity Capital
188
188
188
Reserves under Tier I Cap.
3,181
3,487
3,487
588
510
493
Surplus Provisions & Reserves
258
250
257
Subordinated Debt Fund
331
260
236
12.07%
12.03%
11.64%
CRAR Common Equity Tier I Capital
10.28%
10.56%
10.27%
CRAR Tier I Capital
10.28%
10.56%
10.27%
1.79%
1.47%
1.38%
Total Risk Weighted Assets
Total Tier II Capital
Total CRAR
CRAR Tier II Capital
37
Corporate Social Responsibility
Donation of school bus to Poornaprajna
Kannada Medium Higher Primary
School, Admar.
Sponsorship of solar light system to a
household in Udupi, under a project
titled “Student Solar Light Scholarship”.
Outlook for 2016 -17
 Business Turnover of ` 96,000 crore.
 Opening of 40 new Branches to take the total no. of Branches to 765.
 Introduction of 225 new ATMs to take total no. of ATMs to 1,500 and e-Lobbies / mini
e-Lobbies to 100.
 Launching of Platinum debit card, Co-branded Credit card, Student combo card, Near
Field Communication Card & Mobile Virtual Card, etc.
 Replacing GPRS mobile banking technology with App based solution suited for
smart phones.
 Mobile wallet.
 IMPS through various delivery channels like Branch, ATM and Internet Banking.
 Financial Inclusion Gateway, which would facilitate bouquet of services.
 NPCI's Unified Payment Interface (UPI), facilitating Interoperability, Push - Pull
Payments and fund transfer through virtual address.
39
WE EXPRESS OUR HEARTFELT GRATITUDE TO ALL
OUR
STAKE
SUPPORT
HOLDERS
AND
FOR
SOLICIT
THEIR
THEIR
TRUST
&
CONTINUED
PATRONAGE, AS WE CONTINUE OUR JOURNEY
WITH RENEWED DEDICATION & COMMITMENT.
40
Board of Directors
Ananthakrishna
P Jayarama Bhat
Non Executive Chairman
Managing Director & CEO
S V Manjunath
Chikmagalur
Planter
Ashok Haranahalli
Bengaluru
Advocate
B A Prabhakar
Bengaluru
Former Chairman & MD of
Andhra Bank
D Harshendra Kumar
Shri Kshethra
Dharmastala,
Dakshina Kannada
Mrs Usha Ganesh, IAS
Bengaluru
Former Member of
Karnataka Administrative
Tribunal
U R Bhat
Mumbai
Investment Adviser &
Columnist
41
Dr. H Rama Mohan
Kundapura
Medical Practitioner
Rammohan Rao Belle
Bengaluru
Former MD & CEO,
SBI Gen. Insu. Co. Ltd
Keshav Krishnarao Desai
Hubballi
Businessman
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42