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Overview Karur Vysya Bank is a prominent financial institution dedicated to offering a diverse array of banking and financial services, encompassing commercial banking and treasury operations. Key Metrics Capital Adequacy Ratio: 19% Net Interest Margin: Approximately 4% Gross Non-Performing Assets (NPA): 7% Net Non-Performing Assets (NPA): Approximately 2% CASA Ratio: 36% Branch Network As of March 2022, the bank boasts a substantial presence with around 790 branches and 2,230 ATMs and cash recyclers strategically located across India. The majority of these branches are concentrated in South India, with Tamil Nadu alone hosting 425 branches. Customer Base The bank’s customer base has steadily grown from 56 lakhs in FY16 to an impressive 78 lakhs in FY22. Deposits Breakdown The top 20 depositors collectively account for 5% of total deposits. An astounding 92% of term deposits are below ₹5 Crore. Loan Portfolio As of March 2022, the bank’s loan portfolio is diversified as follows: Commercial advances: 31% Corporate loans: Approximately 23% Agriculture loans: Approximately 23% Retail loans: Approximately 23% Corporate advances have reduced from 35% in FY16 to approximately 23% in FY22, while retail loans have increased from 15% to 23%. Exposure by Category The bank’s loan book displays the following sector-wise exposure: Manufacturing sector and jewelry/gold loans sector: 25% each Personal loans: 14% Trading: 13% Commercial Real Estate (CRE): 6% Non-Banking Financial Companies (NBFCs): 4% Agriculture: 2% Bills: 2% Others: 9% Non-Performing Assets (NPAs) The bank has made significant strides in reducing NPAs over the years: Gross NPAs (GNPA) decreased from approximately 9% in FY19 to 5% in FY22. Net NPAs (NNPA) decreased from approximately 5% in FY19 to approximately 2% in FY22. The majority of NPAs are attributed to corporate defaults. Debt Instrument In March 2019, the bank issued Basel III Compliant Non-Convertible Tier II Bonds worth 487 Crore, featuring a coupon rate of 11.95% p.a. These bonds mature on June 12, 2029, through a private placement. Strategic Focus The bank’s strategic focus is centered on sustainable growth, particularly in the Retail and Micro, Small, and Medium Enterprises (MSME) segments. Their objectives include reducing the cost-to-income ratio to approximately 50%, increasing CASA, and further reducing GNPA to below 5% and NNPA to less than 2%.