44
Analysis of Financial Results June 2018
Analysis of Financial Results
June 2018
2
Table of Contents
Annexure
Financial Performance
Business Strategy
Company Overview
3
Time tested Bank with over 94 years of banking history 1.
Pan-India footprint2.
Robust technology and risk management systems3.
Strong productivity, capital adequacy ratios4.
Experienced management team & Professional Board5.
Company Overview
Highest Standards of Corporate Governance6.
7. Consistent track record of profit since inception
8. Powered by KBL – VIKAAS for Total Transformation
4
• Business Turnover of ` 1,10,456
crore as on 30.06.2018.
• Networth of ` 5,574 crore as on
30.06.2018.
• Market capitalization of ` 3,100
crore as on 30.06.2018.
• 2,163 service outlets with 807
branches, 2 Extension Counters
and 1,354 ATMs in 539 centres
across India as on Jun 30, 2018.
• Offers wide variety of corporate
and retail banking products and
services to over 9.8 million
customers.
• Incorporated in 1924, Karnataka
Bank is one of the oldest time
tested private sector Banks.
1995
1977
1960-66 • Took over Sringeri Sharada Bank Ltd, Chitaldurg Bank & Bank of Karnataka, Hubli.
• 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 18th February 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
• 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
• Business turnover crossed the milestone of ` 75,000 crore2014
• Unveiled KBL – VISION 2020 & adopted Vision Statement• No. of ATMs crossed 1,000
2015
• Completed 1:2 rights issue to raise ` 658.96 crs2016
• Business turnover crossed the historic milestone of ` 1,00,000 crore• Formed Investor Relation Cell• Networth of the Bank crossed ` 5,000 crs
2017
Awards & accolades received during the FY 2018-19:
“Best Performing Bank – Private Bank” category for the performance under
Atal Pension Yojana [APY] during 2017-18.
5
Awards & Accolades
Shri H P R Hande, DGM, Corporate
Planning Department receiving the
award from Shri Shiv Pratap
Shukla, Hon‟ble Minister of State for
Finance, Govt. of India, and Shri
Supratim Bandyopadhyay, WTM
[Finance], PFRDA, in the award
function held at Delhi on 12.06.2018.
6
Pan-India footprintPan-India Presence
Total 2,163 service outlets – 807 branches, 2 Extension Counters &
1,354 ATMs.
Total 33 e-Lobbies & 143 mini e-Lobbies, of which, 152 Recyclers.
Specialized branches for Forex, Industrial, Agriculture, MSME,
Corporate business & Financial Inclusion.
112 Financial Inclusion branches, 35 Ultra Small branches
Expanding network in northern India also.
25
21
2
4
24
7
10
9
3
498
21
7
51
8
1
7
7
52
11
5
20
Has the strongest presence in South India with 629 branches
No of branches & ATMs
Area wise distribution of branches (Jun „18)
769 800 807
1,398 1,374 1,354
Jun '17 Mar '18 Jun '18
Branches ATMs
Metro
28%
Urban
27%Semi
Urban23%
Rural
22%
Top 5 States:Karnataka (498), Tamilnadu(52), Maharashtra (51), Andhra Pradesh (37), Delhi (24)
1720
37
1
7
Robust technology platform and risk management systems
Strong technology platform
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.
Launched Mobile Banking App on Unified Payment Interface (UPI) Platform branded
“KBL SMARTz”, which is recently renamed as “BHIM KBL UPI”.
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.
8
Robust technology platform and risk management systems
Effective risk management system
Periodical monitoring & reviewing of risk profile of the bank.
Internal Credit Rating of all the borrowers: Credit exposure above INR 25 lakh are ratedborrower-wise and credit facilities below INR 25 lakh & all schematic advances includingagri-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 continuousbasis.
To effectively control possible frauds in “online transactions” done by customers, enterpriselevel fraud risk management solution is implemented.
For effective Operational risk management:
o Bank is building up a database of internal Loss data, near- miss cases and otherOperational risk events, since Sept 2007.
o Bank has an effective AML monitoring system to scrutinize the customer transactions toensure compliance to the extant guidelines.
Bank has taken all necessary steps for migration to „Basel II advanced approaches‟ underCredit, Market and Operational Risk and also complied with the extant „Basel III‟ guidelinesof RBI.
Bank has implemented a scientific Fund Transfer Pricing (FTP) & Customer ProfitabilityManagement System (CPMS) to assess the performance of branches / products / portfolios /customers.
9
Financial strength of the Bank
Market capitalization (` crs)
4,6073,247 3,100
0
2,000
4,000
Jun '17 Mar '18 Jun '18
Networth (` crs)
283283283
5,2915,1285,025
5,4115,308
5,574
0
2,000
4,000
Jun '17 Mar '18 Jun '18
Capital Reserves
5,308
Highlights – Q1 FY 19
10
KPAs3 Months
Q1 FY 19 Q1 FY 18
Net profit 163.24 133.85
Operating profit 368.88 309.70
Turnover 1,10,456 94,633
Return on Asset 0.91% 0.83%
Earning per Share * 5.78 4.74
Return on Equity 11.89% 10.25%
Net Interest Margin 3.00% 2.97%
Gross NPA 4.72% 4.34%
Net NPA 2.92% 3.20%
Cost to Income 45.54% 51.75%
CRAR (Basel III) 11.60% 13.02%
(` crs)
* Not annualized
11
Return and Capital Adequacy Ratios
10.25%6.17%
11.89%
0%
5%
10%
15%
20%
Jun '17 Mar '18 Jun '18
Return on Equity (%) (after tax) Return on Assets (%) (after tax)
0.83%0.49%
0.91%
0.0%
0.5%
1.0%
1.5%
Jun '17 Mar '18 Jun '18
Capital Adequacy (%) - Basel III
10.8411.2911.94
0.760.751.08 12.04
13.02
11.60
0
4
8
12
Jun '17 Mar '18 Jun '18
Tier I Tier II
12
Productivity ratios
Operating Profit per employee (` lakh) * Operating Profit per branch (` lakh) *
161.1 184.2 182.8
0
50
100
150
200
Jun '17 Mar '18 Jun '18
Business per employee (` crs) Business per branch (` crs)
123.1137.7 136.9
0
40
80
120
Jun '17 Mar '18 Jun '18
15.518.0 18.1
0
4
8
12
16
20
Jun '17 Mar '18 Jun '18
11.8 13.5 13.5
0
3
6
9
12
Jun '17 Mar '18 Jun '18
* annualised
13
Financial Performance
14
Income & Profit
Net Income (` crs)
310
1,473
369 134
326 163
0
500
1,000
1,500
Jun '17 Mar '18 Jun '18
Operating profit Net profit
Operating and Net Profit (` crs)
Net Interest Margins (%)
2.97%3.18%
3.00%
2.0%
2.5%
3.0%
3.5%
4.0%
Jun '17 Mar '18 Jun '18
Cost to Income Ratio (%)
51.75%
47.61% 45.54%
40%
50%
60%
Jun '17 Mar '18 Jun '18
(3 months) (3 months)(12 months) (3 months) (3 months)(12 months)
424
1,858
469
217
954
209
678641
2,812
0
500
1,000
1,500
2,000
2,500
3,000
Jun '17 Mar '18 Jun '18
Net Interest Income Other Income
17,15817,59416,271
43,31242,19639,782
2,2553,081
174
0
10,000
20,000
30,000
40,000
50,000
60,000
Jun '17 Mar '18 Jun '18
CASA Retail Wholesale deposits
15
Deposits
Deposits (` crs)
Savings Bank
21.96% Current Account
5.39%
Wholesale
deposits
3.59%
Retail Term
Deposits69.05%
Deposits break up (Jun„18)
56,227
62,72562,871
28.94% 27.99% 27.35%
0%
10%
20%
30%
Jun '17 Mar '18 Jun '18
CASA share to total Deposits
16
Deposits
NRI Deposits (` crs)
Domestic
deposits
93.95%
NRI deposits
6.05%
3,508 3,679 3,796
6.24% 5.85% 6.05%
0%
2%
4%
6%
8%
10%
0
1,000
2,000
3,000
Jun '17 Mar '18 Jun '18
Amount %
6.33%6.06% 5.88%
4%
6%
8%
Jun '17 Mar '18 Jun '18
Cost of Deposits
17
Advances [Net] (` crs)
38,405
47,252 47,731
0
10,000
20,000
30,000
40,000
Jun '17 Mar '18 Jun '18
Advances
RatingNo of
BorrowersBalance O/s
(in crs)
% to GBC
AAA 18 5,987.64 12.31%
AA 36 4,789.58 9.85%
A 26 1,479.96 3.04%
BBB 38 2,126.92 4.37%
BB 36 1,786.86 3.67%
B 14 580.38 1.19%
C - - -
D 7 476.99 0.98%
Total 175 17,228.33 35.41%
Gross Bank Credit 48,647.68
External rating wise Credit Portfolio as of Jun „18 [corporate borrowers]
18
Advances
Segmentation of Advances (Jun „18)
CRE
6.27%
Others
6.01%
NBFC
14.56%Medium
Ent.
3.16%Other
Personal
loans
5.49%
Large Ent.
12.37%
Housing
12.10%
Agriculture
*
12.12%
Micro-
Small Ent.
20.01%
Infra
7.90%
* However, this works out to 16.89% of the ANBC of 30.06.2018.
51.6%45.1% 45.0%
48.4%54.9% 55.0%
0%
25%
50%
Jun '17 Mar '18 Jun '18
Retail Advances Corporate Advances
Retail & Corporate Advances (%)
19
Advances
Priority Sector Advances (` crs) 1
4,3
45
16
,15
0
17
,23
9
17
,21
0 20
,59
4
20
,66
6
46.82% 47.57% 48.13% 46.84%
52.83% 51.37%
0%
20%
40%
60%
10,000
12,500
15,000
17,500
20,000
Mar '15 Mar '16 Mar '17 Jun '17 Mar ' 18 Jun '18
Amount %
*
Agriculture Advances (` crs)
5,1465,837 6,583 6,564 6,878 6,793
16.79%
17.19%18.38%17.86%
17.64% 16.89%
9%
12%
15%
18%
0
2000
4000
6000
Mar '15Mar '16Mar '17 Jun '17 Mar '18 Jun '18
Amount %
Advances to Weaker Section (` crs)
* Base figure for the calculation of % is ANBC as on March 31st of previous year.
2,5852,603 2,544 2,537 2,532 2,565
8.44% 7.67% 7.10% 6.90% 6.50% 6.38%
1%
6%
11%
0
1,000
2,000
3,000
Mar '15 Mar '16 Mar '17 Jun '17 Mar '18 Jun '18
Amount %
*
Credit Deposit ratio (%)
CD Ratio & Yield on Advances
10.22% 9.84% 9.29%
3.89% 3.78% 3.41%
0%
5%
10%
Jun '17 Mar '18 Jun '18
Yield on advances Interest spread
Yield on Advances & Interest Spread (%)
20
68.3% 75.2% 76.1%73.2%
168.4%143.5%
294.6%
55.7%
327.1%
0%
100%
200%
300%
Jun '17 Mar '18 Jun '18
CD Ratio Incremental CD Ratio [Annual] Incremental CD Ratio [Quarter]
21
NPAs
Gross NPAs (` crs)
1,6912,376 2,297
4.34%4.92% 4.72%
0%
2%
4%
6%
0
500 1,000 1,500
2,000 2,500
Jun '17 Mar '18 Jun '18
Gross NPA Gross NPA %
Net NPAs (` crs)
1,230 1,401 1,396
3.20% 2.96% 2.92%
0%
1%
2%
3%
0
300
600
900
1200
1500
Jun '17 Mar '18 Jun '18
Net NPA Net NPA %
22
NPAs
498
2,120
270389
1,325
349
0
500
1000
1500
2000
Jun '17 Mar '18 Jun '18
Fresh Accretions to NPA Stock Recovery / Upgradation
Fresh accretions and recoveries (` crs)
(3 months) (12 months) (3 months)
Slippages (` crs)
498
1,037
2701.38%
2.88%
0.59% 0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
0
250
500
750
1000
Q1FY18 Q4FY18 Q1FY19
During the quarter Ratio [qtrly]
Restructured Advances(` crs)
SectorRestructured
Adv.Of which,
NPA
Large Industry 462.23 393.19
Infrastructure 449.25 318.16
Real Estate [including CRE, excluding Services]
42.23 40.89
MSME [excl. Infrastructure] 38.03 6.30
Others 27.16 0.98
Agriculture 19.40 12.88
Education [Individual + Institution]
5.92 0.03
Wholesale/Retail Trade [excl. services]
1.49 -
Grand Total 1,045.71 772.43
Sector wise Restructured Adv. as Jun „18:
Restructured loans & related accounts
23
172
763 772
Of which, NPA
806
562
557
333
485489
0
500
1,000
Jun '17 Mar '18 Jun '18
Restructured loans Related a/cs
1,1401,0461,046
24
Investments
Investments [excl. RIDF] (` crs)
18,42115,444 15,861
0
5,000
10,000
15,000
20,000
Jun '17 Mar '18 Jun '18
Shares
0.81%
SLR
84.72%
Debentures,
Bonds, CD,
MF
14.46%
Yield on Investments (%)
6.84% 6.73% 6.62%
4%
6%
8%
Jun '17 Mar '18 Jun '18
HFT
0.19%AFS
21.17%
HTM
78.64%
AFS HFT HTM TOTAL
2.37 1.07 5.49 4.77
Duration
25
Share holders‟ value
Dividend (%)
195.83181.97 191.44
75
125
175
225
Mar '16 Mar '17 Mar '18
Earning Per Share (`)
18.96
11.52
23.12
0
5
10
15
20
Jun '17 * Mar '18 Jun '18 *
Book value (`)
50%40%
30%
0%
10%
20%
30%
40%
50%
60%
Mar '16 Mar '17 Mar '18 *
Banks, FIs, MF, Insurance
Cos
14.68%
Foreign Portfolio Investors12.29%
Indian Public64.00%
Others9.03%
Share holding pattern (Jun „18)
* proposed
* annualised
Leveraging on Technology
44.49%50.41%
53.06%
65.34% 67.50%
20%
40%
60%
Mar '15 Mar '16 Mar '17 Mar '18 Jun '18
Migration to Digital Channel
[share of ADC transactions to total CBS transactions]
Mobile Banking
767884
9941120
1198
As on 30.06.2017 As on 30.09.2017 As on 31.12.2017 As on 31.03.2018 As on 30.06.2018
No.of Regd users (Thousands)
28443287
40734609
530732
37
4450
58
Q1 (FY17-18) Q2(FY17-18) Q3(FY17-18) Q4(FY17-18) Q1(FY18-19)
No. of Transactions (in 000‟s)Avg. Transactions per day (in 000‟s)
25723056
3708
51216045
29
3440
56
66
Q1 (FY17-18)Q2(FY17-18) Q3(FY17-18) Q4(FY17-18) Q1(FY18-19)
Value of Transactions (in Crore)
Avg. value of Transactions per day (in Crore)
Deb
it c
ard
s P
en
etr
ati
on
Card
s U
sag
e
Debit Cards
58.76 76.5 81.93 75.43 79.84
90.5890.98 97.25 107.06 106.26
149.34167.47
179.18 182.49 186.1
Q1 (FY2017-18) Q2(FY2017-18) Q3(FY2017-18) Q4(FY2017-18) Q1(FY2018-19)
Total ATM transactions by our Debit Card holders(lakhs) Shared Network (VISA/NFS) (lakhs) KBL ATM (lakhs)
36.8638.03
39.7241.26
42.9579.01
79.6
80.3980.7
81.83
As on 30.06.2017 As on 30.09.2017 As on 31.12.2017 As on 31.03.2018 As on 30.06.2018
Total cards issued (Lakhs) Penetration (%)
PO
S T
ran
sact
ion
Valu
eP
OS
In
stall
ati
on
Rep
ort
Point of Sale (POS) Business
11915 14072 13315 13225 13083
1601
2157
1134
1918
850
As on 30.06.2017 As on 30.09.2017 As on 31.12.2017 As on 31.03.2018 As on 30.06.2018
No. of Machines Installed New Machines Added
36286 3581442817 44026
54000
Q1(FY17-18) Q2(FY17-18) Q3(FY17-18) Q4(FY17-18) Q1(FY18-19)
Value of Transactions (Lakhs)
PO
S T
ran
sact
ion
sE
CO
M
Tra
nsa
ctio
ns
POS & ECOM transactions
3178 29463263
35824097
3532
3539
45
Q1 (FY2017-18) Q2(FY2017-18) Q3(FY2017-18) Q4(FY2017-18) Q1(FY2018-19)
Txn (Thousand) per day (Thousand)
508429 479 511
606
6
5 55.5
6.6
Q1(FY2017-18)Q2(FY2017-18)Q3(FY2017-18)Q4(FY2017-18)Q1(FY2018-19)
Amt (Crore) per day (Crore)
161 164182
208 223
1.75 1.781.98
2.22.45
Q1(FY17-18) Q2(FY17-18) Q3(FY17-18) Q4(FY17-18) Q1(FY18-19)
Amt (Lakhs) Per day (Lakhs)
1981 1951 21132369 2454
22 2223 26 27
Q1(FY17-18) Q2(FY17-18) Q3(FY17-18) Q4(FY17-18) Q1(FY18-19)
Txn (Thousand) Per day (Thousand)
31
Annexure
32
Deposits & Advances
` crs Jun-17 Mar-18 Jun-18
Total Deposits 56,227 62,871 62,725
CASA Deposits 16,271 17,594 17,158
Retail Deposits 39,782 42,196 43,312
Wholesale Deposits 174 3,081 2,255
Total Advances 38,405 47,252 47,731
Priority Sector Advances 17,210 20,594 20,666
Agri Advances 6,564 6,878 6,793
MSE Advances 8,626 9,683 9,736
Advances to Weaker Section 2,537 2,532 2,565
33
Income & Expenditure
` crs Mar-18[12 months]
Jun-17[3 months]
Jun-18[3 months]
Interest Income 5,424 1,331 1,408
Interest Expense 3,566 906 939
Net Interest Income 1,858 425 469
Fee Income 757 142 203
Treasury Income 197 75 6
Non-Interest Income 954 217 209
Total Income (Net of Interest Expense) 2,812 642 678
Operating Expenses 1,339 332 309
Operating Profit 1,473 310 369
Provision for loan losses in Adv. / losses in Invts. / Taxes / other
1,147 176 206
Net Profit 326 134 163
34
` crs Mar-18[12 months]
Jun-17[3 months]
Jun-18[3 months]
Interest Income
Interest Income 5,424 1,331 1,408
Interest on Advances 4,082 950 1,106
Interest on Investments 1,162 333 271
Other interest 180 48 31
Yield on Advances 9.84% 10.22% 9.29%
Adjusted yield on Invts. 7.31% 8.34% 6.69%
Interest Expense
Interest Expense 3,566 906 939
Interest on Deposits 3,473 885 918
Other interest 93 21 21
Cost of Deposits 6.06% 6.33% 5.88%
Net Interest Income
Net Interest Income 1,858 425 469
Interest Spread in Lending 3.78% 3.89% 3.41%
Net Interest Margin on average earning assets 3.18% 2.97% 3.00%
Interest Income & Interest Expenditure
35
Capital Adequacy under BASEL III
` crs Jun-17 Mar-18 Jun-18
Total Risk Weighted Assets 40,032 44,981 46,030
Total Capital Fund 5,211 5,414 5,339
Total Tier I Capital 4,781 5,079 4,991
Paid up Equity Capital 283 283 283
Reserves under Tier I Cap. 4,498 4,796 4,708
Total Tier II Capital 430 335 348
Surplus Provisions & Reserves 265 235 248
Subordinated Debt Fund 165 100 100
Total CRAR 13.02% 12.04% 11.60%
CRAR Common Equity Tier I Capital 11.94% 11.29% 10.84%
CRAR Tier I Capital 11.94% 11.29% 10.84%
CRAR Tier II Capital 1.08% 0.75% 0.76%
Other initiatives / developments
36
Launched Deposit Only Card.
Opened Currency Chest at Mangaluru.
Launched Centralized Account Opening process.
Launched Cash@PoS facility.
With a view to focus on home loan segment & other retail products, a new process has
already been implemented in 10 Regions and the same will be extended to the remaining 2
Regions shortly.
MSME loan processing is being fine tuned & a new process for sourcing, processing &
sanctioning of MSME loan will be implemented shortly.
Corporate Social Responsibility
Donation of haemodialysis machine toKaruna Hospital, Borivli (West), Mumbai.
Donation of solar power generating system toGayathri Samskrithika Bhavana, Koppa.
Donation of drinking water purifier toKrishna Mandira Temple, Mangaluru.
38
Business Strategy
39
Transformation journey…
The transformation Project
by partnering BCG is under progress
to change from Good to Great…
Corporate Goal for 2018 -19
40
Business Turnover of ` 1,30,000 crore.
Opening of 35 new Branches to take the total no. of Branches to 835.
To introduce following products & services:
• Robotic Process Automation (RPA),
• Customer Relationship Management (CRM),
• Digi Branches,
• Artificial intelligence powered Chatbot,
• Online Mutual Fund Platform,
• TReDS (Trade Receivables Electronic Discounting System),
• Corporate Mobile Banking,
• Grievance Redressal through CRM Software.
Business Strategy
41
Minimum space maximum business.
Credit augmentation
Focus on MSME sector
Focus on mid-corporate & retail sectors.
NPA & Stressed Assets management
Minimising slippages and improving recovery management.
A comprehensive collection mechanism.
CASA deposits
Focusing on customer onboarding to increase CASA as well as cross selliing.
Digital Banking initiatives
Focus on digital marketing of Bank‟s products & services
Value addition to Bank‟s existing Mobile Banking channel
Installation of self service kiosks
Parabanking activities.
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 OUR BELOVED
KARNATAKA BANK A FINANCIAL POWER
HOUSE.
42
Board of Directors
P Jayarama Bhat
Non Executive Chairman
43
Ashok Haranahalli Bengaluru Advocate
Rammohan Rao Belle Bengaluru Former MD & CEO, SBI Gen. Insu. Co. Ltd
B A PrabhakarBengaluru Former Chairman & MD of Andhra Bank
U R Bhat Mumbai Investment Adviser & Columnist
Keshav Krishnarao Desai Hubballi Businessman
D. Surendra Kumar, Shri Kshethra Dharmastala, Dakshina Kannada
Educationist
Mahabaleshwara M S
Managing Director & CEO
Mrs Mythily Ramesh, Bengaluru
IT Professional and Co-Founder &CEO of NextWealth
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 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 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 Bank‟s general 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 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 circumstancesafter 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 equityshares 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‟s equity 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 the
Securities 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 detailed
information 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.
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