Rohit Jethani PG14081Pratik Patil PG14084Karishma Shaikh PG14088Deepak Nadar PG14094Frahvak Dumasia PG14095Ankush Gala PG14100

Indian Banking Sector Overview

• The Indian banking system consists of 26 public sector banks, 25 private sector banks, 43 foreign banks, 56 regional rural banks, 1,589 urban cooperative banks and 93,550 rural cooperative banks• 192.1 million accounts had been opened under Pradhan Mantri Jan Dhan Yojna

(PMJDY) and 165.1 million RuPay debit cards were issued. These new accounts have mustered deposits worth Rs 26,819 crore (US$ 4 billion).• Standard & Poor’s estimates that credit growth in India’s banking sector would

improve to 12-13 per cent in FY16 from less than 10 per cent in the second half of CY14.

Indian Banking Sector Overview• Credit off-take has been surging ahead over the past decade, aided by strong

economic growth, rising disposable incomes, increasing consumerism and easier access to credit

• Total credit extended went up to US$ 1,089 billion by FY15• Credit to non-food industries increased 9.75 per cent to US$ 1,073.4 billion in FY15, from the previous financial year• Demand has grown for both corporate and retail loans

Karur Vysya Bank

• One of the largest old generation private sector bank established in 1916 headquartered in Karur, Tamil Nadu• Mr. M.A Venkatarama Chettiar and Mr. Athi Krishna Chettiar• As on December, 2015: Braches : 659 ATM’s : 1653• As of 2015, total employees – 7197• Total deposits – Rs. 44,690 crores• Total presence

Rural16%

Metro20%

Urban27%

Semi-Urban37%

Shareholding Pattern2.16%

97.84%Promoter & Promoter Group Public

Customer Assets Trends

2011 2012 2013 2014 20150.00

5000.00

10000.00

15000.00

20000.00

25000.00

30000.00

35000.00

40000.00

45000.00

50000.00

Deposits

2011 2012 2013 2014 20150

5000

10000

15000

20000

25000

30000

35000

40000

Advances

Karur Vysya Bank PRODUCTS

Personal Banking

Corporate Banking

NRI Banking

AGRICULTURE MSME Banking

1. Freedom savings Account

2. FD3. MFs4. Insurance5. Home &

personal loan

1. Current Account

2. General Insurance

1. Bank Accounts

2. Loans & Deposits

3. Remittances

4. Cards

1. Vehicle loans

2. Green card

3. Schemes

Smart Ways To Banking With Karur Vysya Bank

Internet Banking Mobile Banking ATMs Point of sale Ypaycash mobile wallet IVRS RTGS KVB e – Book E - Commerce

Distribution Of Branches Across The Country

Geographical Distribution of Credit (Rs. In crores)

Industry Wise Distribution Of Exposures As On 31/12/2015 (Rs. In Crores)

Competition

Why Karur Vysya Bank?• Increase in CASA• Deposits increasing at average Y-O-Y of 22.16%• Advances increasing at average Y-O-Y of 23.37%• Ratings – ICRA A+, CRISIL A1+• Implemented financial inclusion strategy - KVB Grama Jyothi - Bio Metric Smart Cards - Key Features

Net Interest Margin

2011 2012 2013 2014 20150.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

SWOT Analysis

Strengths1. Innovative financial products with use of technology2. Tie-ups with different financial institutions for various products3. Stable performance in economic slowdown4. All the branches are powered with CBS —Core Banking Solution

1. Regional concentric i.e. in South India only2. Low publicity and brand visibility

1. Industry banking in the region2. Extensive penetration in rural banking

1. Economic slowdown and recessions2. Highly competitive environment3. Stringent Banking Norms4. Local money lenders in the rural areas

SWOTOpportunities

Weakness

Threats

FINANCIALS

2011 2012 2013 2014 20150.00%

5.00%

10.00%

15.00%

20.00%

25.00%

CASA Ratio

2011 2012 2013 2014 201566.00%

68.00%

70.00%

72.00%

74.00%

76.00%

78.00%

80.00%

82.00%

Advances to Deposits Ratio (%)

2011 2012 2013 2014 20150

100

200

300

400

500

600

Net Profit

2011 2012 2013 2014 20150

1000

2000

3000

4000

5000

6000

7000

Total Income (Rs. In Crores)

2011 2012 2013 2014 201511.50%12.00%12.50%13.00%13.50%14.00%14.50%15.00%

Capital Adequacy Ratio (%)

2011 2012 2013 2014 20150

50100150200250300350400

Book Value (Rs.)

2011 2012 2013 2014 20150.00

20.0040.0060.0080.00

100.00120.00140.00160.00180.00

Dividend Paid (Rs. in Crores)

Comparison of P/E Between Banks (Times)

Federal Bank City union Bank Karur Vysya Bank Jammu & Kashmir Bank South Indian Bank0

2

4

6

8

10

12

14

Comparison of P/E over the Years (Times)

2011 2012 2013 2014 20150.00

2.00

4.00

6.00

8.00

10.00

12.00

Future Strategies• To expand Karur Vysya’s reach in Tier 2 and Tier 3 cities of certain states:• Maharashtra• Gujrat• Orissa• Assam• Jharkhand

• To make available basic Bank branches and ATM’s of Karur Vysya Bank - To enhance basic agriculture finance - To enhance SME businesses in the small cities• To increase the awareness about KVB Bank has the emerging bank amongst the

private sector banks• To position KVB as the preferred banking partner for rural sectors

Exit Strategy • Secondary Sale• Selling it to a foreign bank entering India • Selling stake to FII’s