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Analysis of Financial Results
June 2017
2
Table of Contents
Annexure
Financial Performance
Business Strategy
Company Overview
3
Time tested Bank with over 93 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.
Business Process Reengineering under implementation7.
Consistent track record of profit since inception8.
Powered by KBL - VISION 20209.
4
• 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 8.9 million
customers.
• Forayed into General Insurance
business as a JV partner in
Universal Sompo General
Insurance Company Limited.
• 2,170 service outlets with 769
branches, 3 Extension Counters
and 1,398 ATMs in 506 centres
across India as on June 30, 2017.
• Business Turnover of ` 94,711
crore as at 30.06.2017.
1995
1977
1960 to
1966
• Took over assets and liabilities of 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
• 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
• 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
• Networth of the Bank crossed ` 5,000 crs2017
Awards & accolades received during the FY 2017-18:
STP Award 2016 in recognition of its outstanding payment formatting & Straight- Through
Rate instituted by The Bank of New York Mellon.
MSME Banking Excellence Award - 2016, instituted by CIMSME:
Runner Up - CSR Initiatives & Business Responsibility [Emerging category].
APY Awards, instituted by PFRDA:
Winner – Indian Pension League,
Best Performing Branch [Guwahati] under Customer First Campaign, under the
category of Small Private Sector Bank.
5
Awards & Accolades
6
Pan-India footprintPan-India Presence
Total 2,170 outlets –769 branches, 3 Extension Counters &
1,398 ATMs
Total 30 e-Lobbies & 80 mini e-Lobbies
Specialized branches for Forex, Industrial, Agriculture,
MSME, Corporate business & Financial Inclusion
102 Financial Inclusion branches, 37 Ultra Small branches
Expanding network in northern India also.
25
21
2
4
23
7
10
9
3
473
20
7
48
8
1
6
6
51
11
5
19
Has the strongest presence in South India with 597 branches
No of branches & ATMs
Area wise distribution of branches (Jun „17) *
733 765 769
1,297 1,380 1,398
Jun '16 Mar '17 Jun '17
Branches ATMs
Metro28%
Urban27%
Semi Urban24%
Rural21%
Top 5 States:Karnataka (473), Tamilnadu (51), Maharashtra (48), Andhra Pradesh (34), Delhi (23)
1718
34
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”.
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.
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.
For continuous monitoring of customer induced transactions under various AlternateDelivery Channels (ADC) and Core Banking Solution (CBS), Bank has implementedEnterprise Level Fraud Risk Management System (ELFRMS) - An automated transactionmonitoring system for detection of frauds.
9
Financial strength of the Bank
283283188
4,8914,860
3,502
5,143
3,690
5,174
0
2,000
4,000
Jun '16 Mar '17 Jun '17
Capital Reserves
Market capitalisation (` crs)
2,653
3,9754,607
0
2,000
4,000
Jun '16 Mar '17 Jun '17
Networth (` crs)
Highlights – Q1 FY 18
10
KPAs Q1 FY 18 Q1 FY 17
Net profit 133.85 121.54
Operating profit 309.70 261.92
Turnover 94,711.38 86,447.44
Return on Asset 0.83% 0.85%
Earning per Share * 4.74 5.76
Return on Equity 10.25% 12.96%
Net Interest Margin 2.64% 2.55%
Gross NPA 4.34% 3.92%
Net NPA 3.20% 2.61%
Cost to Income 51.75% 51.41%
CRAR (Basel III) 13.02% 11.64%
(` crs)
* Not annualized
11
Return and Capital Adequacy Ratios
12.96%10.24% 10.25%
0%
5%
10%
15%
20%
Jun '16 Mar '17 Jun '17
Return on Equity (%) (after tax) Return on Assets (%) (after tax)
0.85%0.74%
0.83%
0.0%
0.5%
1.0%
1.5%
Jun '16 Mar '17 Jun '17
Capital Adequacy (%) - Basel III
11.9412.2110.27
1.081.09
1.38
13.30
11.64
13.02
0
4
8
12
Jun '16 Mar '17 Jun '17
Tier I Tier II
12
Productivity ratios
Operating Profit per employee (` lakh) * Operating Profit per branch (` lakh) *
142.9 130.2 161.1
0
50
100
Jun '16 Mar '17 Jun '17
Business per employee (` crs) Business per branch (` crs)
117.9 122.5 123.2
0
40
80
120
Jun '16 Mar '17 Jun '17
13.5 12.5
15.5
0
3
6
9
12
15
Jun '16 Mar '17 Jun '17
11.1 11.7 11.8
0
3
6
9
12
Jun '16 Mar '17 Jun '17
* annualised
13
Financial Performance
14
Income & Profit
Net Income (` crs)
262
996
310 122
452
134
0
250
500
750
1,000
Jun '16 Mar '17 Jun '17
Operating profit Net profit
Operating and Net Profit (` crs)
Net Interest Margins (%)
2.55%2.44%
2.64%
2.0%
2.5%
3.0%
Jun '16 Mar '17 Jun '17
Cost to Income Ratio (%)
51.41%
56.70%
51.75%
40%
50%
60%
Jun '16 Mar '17 Jun '17
424
1,491
365
217
809
174
2,300
539642
0
500
1,000
1,500
2,000
2,500
Jun '16 Mar '17 Jun '17
Net Interest Income Other Income
(3 months) (3 months)(12 months) (3 months) (3 months)(12 months)
16,27116,47313,504
39,78240,08937,841
174171
156
0
10,000
20,000
30,000
40,000
50,000
60,000
Jun '16 Mar '17 Jun '17
CASA Retail Wholesale deposits
15
Deposits
Deposits (` crs)
Savings Bank
22.37% Current Account
6.57%
Wholesale deposits
0.31%
Retail Term
Deposits
70.75%
Deposits break up (Jun „17)
51,50156,227
56,73326.22%
29.04% 28.94%
0%
10%
20%
30%
Jun '16 Mar '17 Jun '17
CASA share to total Deposits
16
Deposits
NRI Deposits (` crs)
Domestic deposits93.76%
NRI deposits
6.24%
3,1653,502 3,508
6.14% 6.17% 6.24%
0%
2%
4%
6%
8%
10%
0
1,000
2,000
3,000
Jun '16 Mar '17 Jun '17
Amount %
6.95%6.73%
6.33%
4%
6%
Jun '16 Mar '17 Jun '17
Cost of Deposits
17
Advances (` crs)
34,946 37,004 38,484
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
Jun '16 Mar '17 Jun '17
Advances
RatingNo of
BorrowersBalance O/s
(in crs)
% to GBC
AAA 10 1,923.79 4.94%
AA 24 2,285.19 5.87%
A 30 1,400.99 3.60%
BBB 31 1,284.41 3.30%
BB 27 1,180.36 3.03%
B 16 530.83 1.36%
C 1 37.37 0.10%
D 6 642.72 1.65%
Total 145 9,285.66 23.86%
Gross Bank Credit 38,922.40
External rating wise Credit Portfolio as of Jun„17 [corporate borrowers]
18
Advances
Segmentation of Advances (Jun „17)
Medium
Ent.
3.09%
Other
Personal
loans
6.04%
Large Ent.
11.75%
Housing
13.17%
Agricultur
e *
14.15%Micro-
Small Ent.
22.16%
Others
29.65%
* However, this works out to 17.86% of the ANBC of 30.06.2016.
52.1% 52.6% 51.6%47.9% 47.4% 48.4%
0%
25%
50%
Jun '16 Mar '17 Jun '17
Retail Advances Corporate Advances
Retail & Corporate Advances (%)
19
Advances
Priority Sector Advances (` crs)
14,345
16,150 16,02817,239 17,210
46.82% 47.57% 47.89% 48.13% 46.84%
0%
20%
40%
60%
10,000
12,500
15,000
17,500
20,000
Mar '15 Mar '16 Jun '16 Mar '17 Jun '17
Amount %
* Agriculture Advances (` crs)
5,1465,837 5,640
6,583 6,564
16.79% 17.19% 16.85%18.38%
17.86%
9.0%
12.0%
15.0%
18.0%
0
2,000
4,000
6,000
Mar '15 Mar '16 Jun '16 Mar '17 Jun '17
Amount %
*
Advances to Weaker Section (` crs)
* Base figure for the calculation of % is ANBC as on March 31st of previous year.
2,585 2,603 2,567 2,544 2,537
8.44%7.67% 7.67% 7.10% 6.90%
1.0%
6.0%
11.0%
0
1,000
2,000
3,000
Mar '15 Mar '16 Jun '16 Mar '17 Jun '17
Amount %
*
67.9% 65.2%
68.4%75.9%
49.7%
74.9%103.0%
173.4%
292.7%
0%
50%
100%
150%
200%
250%
300%
Jun '16 Mar '17 Jun '17
CD Ratio Incremental CD Ratio [Annual] Incremental CD Ratio [Quarter]
Credit Deposit ratio (%)
CD Ratio & Yield on Advances
10.98% 10.81% 10.22%
4.03% 4.08% 3.89%
0%
5%
10%
15%
Jun '16 Mar '17 Jun '17
Yield on advances Interest spread
Yield on Advances & Interest Spread (%)
20
21
NPAs
Gross NPAs (` crs)
1,3891,582
1,691
3.92% 4.21% 4.34%
0%
1%
2%
3%
4%
5%
6%
0
400
800
1,200
1,600
Jun '16 Mar '17 Jun '17
Gross NPA Gross NPA %
Net NPAs (` crs)
911 9751,230
2.61% 2.64%
3.20%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
0
300
600
900
1200
Jun '16 Mar '17 Jun '17
Net NPA Net NPA %
337
1,348
498
128
947
389
0
500
1000
1500
Jun '16 Mar '17 Jun '17
Fresh Accretions to NPA Stock Recovery / Upgradation
Fresh accretions and recoveries (` crs)
(3 months) (12 months) (3 months)
Restructured Advances(` crs)
SectorRestructured
Adv.Of which,
NPA
Infrastructure 589.40 62.99
Large Industry 359.94 47.36
MSME [excl. Infrastructure] 59.24 12.45
Others 51.36 33.34
Real Estate [including CRE, excluding Services]
45.20 -
Agriculture 30.89 16.07
Wholesale/Retail Trade [excl. services]
1.81 -
Education [Individual + Institution]
1.74 -
Grand Total 1,139.57 172.20
Sector wise Restructured Adv. as Jun „17:
Restructured loans & related accounts
22
262328
172
Of which, NPA
8069321,131
333
434
628
0
500
1,000
1,500
2,000
Jun '16 Mar '17 Jun '17
Restructured loans Related a/cs
1,759
1,140
1,365
23
Investments
Investments [excl. RIDF] (` crs)
16,445
20,22018,421
0
5,000
10,000
15,000
20,000
Jun '16 Mar '17 Jun '17
Shares
0.63%
SLR
72.09%
Debentures,
Bonds, CD,
MF
27.28%Yield on Investments (%)
7.39% 7.08% 6.84%
4%
6%
8%
Jun '16 Mar '17 Jun '17
HFT
0.14%
AFS
41.92%
HTM
57.95%
AFS HFT HTM TOTAL
1.66 0.03 5.70 4.01
Duration
24
Share holders‟ value
Dividend (%)
179.84 195.83 181.97
75
125
175
225
Mar '15 Mar '16 Mar '17
Earning Per Share (`)
23.0419.38 18.96
0 5
10 15 20 25
Jun '16 * Mar '17 Jun '17 *
Book value (`)
50% 50%40%
0%
10%
20%
30%
40%
50%
60%
Mar '15 Mar '16 Mar '17
Banks, FIs, MF, Insuranc
e Cos9.83%
Foreign Portfolio Investors21.89%
Indian Public58.33%
Others9.95%
Share holding pattern (Jun 2017)
* Proposed
*
* annualised
Leveraging on Technology
44.49%
50.41%53.06%
57.01%
20%
40%
60%
Mar '15 Mar '16 Mar '17 Jun '17
Migration to Digital Channel
[share of ADC transactions to total CBS transactions]
372.34
446.15489.26
684.37
767.17
Q1(FY 16-17) Q2(FY 16-17) Q3(FY 16-17) Q4(FY 16-17) Q1(FY 17-18)
Registered Users
In thousands
14596 20227
122849 126941
257169
162 225
13651410
2857
Q1 (FY16-17) Q2 (FY 16-17) Q3(FY16-17) Q4(FY16-17 Q1 (FY17-18)
Value of Transactions
In Lakhs
Mobile Banking
203 249
1455 1324
2844
2 3
1615
32
Q1 (FY16-17)Q2 (FY 16-17) Q3(FY16-17) Q4(FY16-17 Q1 (FY17-18)
In Thousand
No of Transactions
No of Transactions Avg Transactions per day
781 869
3659 39443178
9 10
41 44
35
Q1(FY16-17) Q2(FY16-17) Q3(FY16-17) Q4(FY16-17) Q1(FY17-18)
Txn (Thousand) Txn per day(Thousand)
8481126
15721952 1981
9
13
17
2222
Q1(FY16-17)Q2(FY16-17)Q3(FY16-17)Q4(FY16-17)Q1(FY17-18)
Txn(Thousand) Txn per day(Thousand)
48.8664.02
131.01156.57 160.72
0.540.71
1.46
1.74 1.79
Q1(FY16-17) Q2(FY16-17) Q3(FY16-17) Q4(FY16-17) Q1(FY17-18)
Amt(Crore) Amount per day
PO
S T
ran
sact
ion
sE
CO
M
Tra
nsa
ctio
ns
Debit card transactions at POS & eCommerce (Online txns)
3262 3694
5685
10314
11915
432
1991
4629
1601
Q1(FY16-17) Q2(FY16-17) Q3(FY16-17) Q4(FY16-17) Q1(FY17-18)
No.of machines installed New machines addedP
OS
Mach
ines
13126.54 13630
33435.6535990.27 36286.01
Q1(FY16-17) Q2(FY16-17) Q3(FY16-17) Q4(FY16-17) Q1(FY17-18)
Value of transactions (Lakhs)
PO
S T
ran
sact
ion
Valu
ePoint of Sale (POS) Business
29
Annexure
30
Deposits & Advances
` crs Jun-16 Mar-17 Jun-17
Total Deposits 51,501 56,733 56,227
CASA Deposits 13,504 16,473 16,271
Retail Deposits 37,841 40,089 39,782
Wholesale Deposits 156 171 174
Total Advances 34,946 37,004 38,484
Priority Sector Advances 16,028 17,239 17,210
Agri Advances 5,640 6,583 6,564
MSE Advances 8,131 8,496 8,626
Advances to Weaker Section 2,567 2,544 2,537
31
Income & Expenditure
` crs Mar-17[12 months]
Jun-16[3 months]
Jun-17[3 months]
Interest Income 5,185 1,261 1,331
Interest Expense 3,694 896 906
Net Interest Income 1,491 365 425
Fee Income 505 132 142
Treasury Income 304 42 75
Non-Interest Income 809 174 217
Total Income (Net of Interest Expense) 2,300 539 642
Operating Expenses 1,304 277 332
Operating Profit 996 262 310
Provision for loan losses in Adv. / losses in Invts. / Taxes / other
544 140 176
Net Profit 452 122 134
32
` crs Mar-17[12 months]
Jun-16[3 months]
Jun-17[3 months]
Interest Income
Interest Income 5,185 1,261 1,331
Interest on Advances 3,794 928 950
Interest on Investments 1,271 312 333
Other interest 120 21 48
Yield on Advances 10.81% 10.98% 10.22%
Adjusted yield on Invts. 8.88% 8.38% 8.34%
Interest Expense
Interest Expense 3,694 896 906
Interest on Deposits 3,601 874 885
Other interest 93 22 21
Cost of Deposits 6.73% 6.95% 6.33%
Net Interest Income
Net Interest Income 1,491 365 425
Interest Spread in Lending 4.08% 4.03% 3.89%
Net Interest Margin on average assets 2.44% 2.55% 2.64%
Interest Income & Interest Expenditure
33
Capital Adequacy under BASEL III
` crs Jun-16 Mar-17 Jun-17
Total Risk Weighted Assets 35,797 38,902 40,032
Total Capital Fund 4,168 5,172 5,211
Total Tier I Capital 3,675 4,749 4,781
Paid up Equity Capital 188 283 283
Reserves under Tier I Cap. 3,487 4,467 4,498
Total Tier II Capital 493 423 430
Surplus Provisions & Reserves 257 258 265
Subordinated Debt Fund 236 165 165
Total CRAR 11.64% 13.30% 13.02%
CRAR Common Equity Tier I Capital 10.27% 12.21% 11.94%
CRAR Tier I Capital 10.27% 12.21% 11.94%
CRAR Tier II Capital 1.38% 1.09% 1.08%
Other initiatives / developments
34
Tied up with Life Insurance Corporation of India for distribution of life insurance
products.
Tied up with HDFC MF Asset Management Co. for distribution of their Mutual Fund
products.
Launched KBL-Image Debit Card.
Enabled Cash Recyclers on pilot basis at different locations.
Enabled Talking ATM facility at some of our ATMs.
Bank‟s Staff Training College received ISO 9001:2015 certificate for its training
standards.
Corporate Social Responsibility
Donation of school bus toVidhyavardhaka Aided HigherPrimary School, Meeyapadavu, arural village in Kerala.
Joining hands with Red FM Radio forthe Anti Tobacco campaign on “WorldTobacco Free Day”.
36
Business Strategy
Highlights of KBL – VISION 2020 Document
37
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.
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.
Rationalization of ATMs & Branches.
Corporate Goal for 2017 -18
38
Business Turnover of ` 1,10,000 crore.
Opening of 35 new Branches to take the total no. of Branches to 800.
To introduce following products and services:
• Cash Recyclers,
• Corporate Mobile Banking,
• KBL Locator and e-Address book app.
• Centralized account opening.
Business Strategy
39
Minimum space maximum business.
20:30:40 formula for business augmentation during the next 3 years.
Credit augmentation
Focus on MSME sector
Focus on mid-corporate & retail sectors.
NPA & Stressed Assets management
Minimising slippages and tightening the recovery mechanism.
CASA deposits
Maintaining CASA share of atleast 30%
Focusing on further customer onboarding.
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
Enabling Cash Recyclers
Extension of Cash@POS facility
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.
40
Board of Directors
P Jayarama Bhat
Non Executive Chairman
41
Ashok Haranahalli Bengaluru Advocate
Mrs Usha Ganesh, IAS
Bengaluru Former Member of Karnataka Administrative Tribunal
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
Edicationist
Mahabaleshwara M S
Managing Director & CEO
Disclaimer
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accuracy, completeness, fairness, correctness and reasonableness of the contents of this presentation. This presentation has not been approved and will not bereviewed 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 requirements
prescribed 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 its
respective 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 competitive
and regulatory environment. Actual results may differ from these forward-looking statements due to a number of factors, including future changes or developmentsin 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 equity
shares 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 shares
made, 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 this
presentation, without obligation to notify any person.
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