We as a private equity firm have invested in this bank. This includes entry and exit strategy of a private equity firm.

1. Rohit Jethani PG14081
Pratik Patil PG14084
Karishma Shaikh PG14088
Deepak Nadar PG14094
Frahvak Dumasia PG14095
Ankush Gala PG14100

2. 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.

3. 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

5. 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
Rural
16%
Metro
20%
Urban
27%
Semi-Urban
37%

6. Shareholding Pattern
2.16%
97.84%
Promoter & Promoter Group Public

7. Customer Assets Trends
2011 2012 2013 2014 2015
Series1 24721.85 32111.59 38652.98 43757.68 44690.27
0.00
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 2015
Series1 18052.41 24205.11 29705.89 34225.98 36690.77
0
5000
10000
15000
20000
25000
30000
35000
40000
Advances

8. Karur Vysya Bank PRODUCTS
Personal
Banking
Corporate
Banking
NRI
Banking
AGRICULTURE
MSME
Banking
1. Freedom
savings
Account
2. FD
3. MFs
4. Insurance
5. Home &
personal
loan
1. Current
Account
2. General
Insurance
1. Bank
Accounts
2. Loans &
Deposits
3. Remittanc
es
4. Cards
1. Vehicle
loans
2. Green
card
3. Schemes

9. 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

10. Distribution Of Branches Across The Country

11. Geographical Distribution of Credit (Rs. In crores)

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

13. Competition

14. 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

15. Net Interest Margin
2011 2012 2013 2014 2015
Series1 3.39% 3.08% 3.03% 2.64% 2.91%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%

16. SWOT Analysis
Strengths
1. Innovative financial products with use of technology
2. Tie-ups with different financial institutions for various
products
3. Stable performance in economic slowdown
4. All the branches are powered with CBS —Core Banking Solution
1. Regional concentric i.e. in South India only
2. Low publicity and brand visibility
1. Industry banking in the region
2. Extensive penetration in rural banking
1. Economic slowdown and recessions
2. Highly competitive environment
3. Stringent Banking Norms
4. Local money lenders in the rural areas
SWOT
Opportunities
Weakness
Threats

17. FINANCIALS

18. 2011 2012 2013 2014 2015
Series1 23.28% 19.16% 19.25% 20.54% 22.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
CASA Ratio
2011 2012 2013 2014 2015
Series1 72.06% 74.58% 76.27% 77.68% 80.80%
66.00%
68.00%
70.00%
72.00%
74.00%
76.00%
78.00%
80.00%
82.00%
Advances to Deposits Ratio (%)

19. 2011 2012 2013 2014 2015
Series1 415.59 501.72 550.32 429.60 464.28
0
100
200
300
400
500
600
Net Profit

20. 2011 2012 2013 2014 2015
Series1 2482.03 3620.52 4694.99 5680.41 5976.71
0
1000
2000
3000
4000
5000
6000
7000
Total Income (Rs. In Crores)

21. 2011 2012 2013 2014 2015
Series1 14.41% 14.33% 14.41% 12.77% 14.63%
11.50%
12.00%
12.50%
13.00%
13.50%
14.00%
14.50%
15.00%
Capital Adequacy Ratio (%)
2011 2012 2013 2014 2015
Series1 193.04 252.68 287.85 308.91 348.42
0
100
200
300
400
Book Value (Rs.)
2011 2012 2013 2014 2015
Series1 128.63 150.05 150.05 139.99 157.99
0.00
50.00
100.00
150.00
200.00
Dividend Paid (Rs. in Crores)

22. Comparison of P/E Between Banks (Times)
Federal Bank City union Bank Karur Vysya Bank
Jammu & Kashmir
Bank
South Indian Bank
Series1 10.62 11.7 10.09 5.44 8.15
0
2
4
6
8
10
12
14

23. Comparison of P/E over the Years (Times)
2011 2012 2013 2014 2015
Series1 8.96 8.59 7.83 10.04 10.09
0.00
2.00
4.00
6.00
8.00
10.00
12.00

24. 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

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