$ Karnataka Bank Ltd.

Your Family Bank, Across India

Regd. & Head Office Phone : 0824-2228222

P. B. No.599, Mahaveera Circle E-Mail : [email protected]
Kankanady Website : www.karnatakabank.com
Mangaluru - 575 002 CIN : L8511OKA1924PLC001128
SECRETARIAL DEPARTMENT
January 29, 2022
HO/ SEC/..?If/ 2021-22

To:
The Manager The General Manager
Listing Department BSE Limited
National Stock Exchange of India Limited Corporate Relationship Dept.
Exchange Plaza,C-1, Block G Phiroze Jeejeebhoy Towers
Bandra-Kurla Complex, Bandra (E) Dalal Street
MUMBAI-400051 MUMBAI-400001

Scrip Code: KTKBANK Scrip Code: 532652

Dear Sir/ Madam,

Reg.: Presentation-' Analysis of Financial Results Q3FY22'.

Pursuant to Regulation 30 read with Schedule III of SEBI (LODR) Regulations, 2015 and in
continuation to the publication of unaudited results for the quarter ended December 31, 2021,
we enclose herewith the 'Presentation on Analysis of Financial Results Q3FY22'

The above document has been hosted on our Bank's website also at www.karnatakabank.com
under Investor Portal Section.

Kindly take the above on record.

Thank You,
Yo s faithfully,

ECRETARY
Analysis of Financial Results
December 2021
Table of contents
1
01 Highlights Q3 FY22
Financial headline numbers, Key ratios with previous period
comparisons, Impact of KBL-VIKAAS

02 Company Overview
Evolution, Presence , Digital and Risk Management systems

03 Financial Performance Q3 FY22

Financial Results, Business numbers, Productivity ratios , Asset
Quality

04 Business Strategy
Corporate Goal and Roadmap ahead
01 Highlights
Financial headline numbers, Key ratios with previous period comparisons

3
 Highlights ₹ crs

Deposit Advances
6.23 % 31.12.2021 31.12.2020 31.12.2021 31.12.2020 4.33 %
78429 73826 55489 53187
Investments Balance Sheet Size
6.44 % 31.12.2021 31.12.2020 31.12.2021 31.12.2020 8.22 %
12.26%
21991 20659 90958 84050
Net Profit (3 Months) Operating Profit (3 Months)
8.27 % 31.12.2021 31.12.2020 31.12.2021 31.12.2020 20.48 %
146.57 135.38 356.32 448.09
Key Ratios as on/for the quarter 31.12.2021 (31.12.2020) Sequential Highlights as on 31.12.2021 (30.09.2021)

Gross NPA Net NPA PCR

ROA ROE CASA CRAR
4.11% 2.45% 73.74%
0.65% 8.51% 31.30% 14.15 % ( 2.84%) (71.75%)
(4.50%)
(0.64%) (8.28%) (30.07%) (13.83%)
Headline numbers 3 Months 9 Months (₹ crs)

Q3 FY 22 Q3 FY 21 Q2 FY 22
Particulars Y-o-Y 31.12.2021 31.12.2020 Y-o-Y
(31.12.2021) (31.12.2020) (30-09-2021)

Turnover 133918 127014 5.44% 131390 133918 127014 5.44%

Asset size 90958 84050 8.22% 89216 90958 84050 8.22%
Operating profit 356.32 448.09 -20.48% 493.60 1253.88 1579.57 -20.62%
Operating Profit (excl Trading Profit) 354.46 358.28 -1.07% 487.10 1220.18 979.21 24.61%
Net profit 146.57 135.38 8.27% 125.61 378.27 451.20 -16.16%
Return on Asset (ROA%) 0.65% 0.64% +1 bps 0.57% 0.57% 0.71% -14 bps
Earning per Share (₹)(not annualized) 4.71 4.35 0.36₹ 4.04 12.17 14.51 -2.34₹
Return on Equity (ROE%) 8.51% 8.28% -23 bps 7.41% 7.41% 9.56% -215 bps
Net Interest Income (NII) 622.65 614.06 1.40% 637.10 1834.54 1724.04 6.41%
Net Interest Margin (NIM%) 3.18% 3.26% -8 bps 3.31% 3.16% 3.07% 9 bps
Gross NPA - Amount 2,330.52 1,706.57* 36.56% 2501.22 2,330.52 1,706.57* 36.56%
- % 4.11% 3.16% 95 bps 4.50% 4.11% 3.16% 95 bps
Net NPA - Amount 1,359.89 923.98 47.18% 1,546.11 1,359.89 923.98 47.18%
-% 2.45% 1.74% 71 bps 2.84% 2.45% 1.74% 71 bps
Cost to Income % 56.50% 50.06% 12.86% 45.88% 50.47% 43.79% 15.26%
PCR % 73.74% 80.51% -677 bps 71.75% 73.74% 80.51% -677 bps
CRAR (Basel III) 14.15% 13.83% 32 bps 14.48% 14.15% 13.83% 32 bps
* With standstill clause for NPA recognition
The above figures are based on Standalone financials of the Bank 5
KBL – VIKAAS: Impact on Key Parameters …. (1)

Particulars Dec ‘21 Sep ‘21 March ‘21 March ‘20 March ‘19 March ‘18
PCR % 73.74% 71.75% 70.05% 64.70% 58.45% 54.56%

PCR for NPAs of Rs 25 cr & above 97.91% 95.88% 93.78% 75.25% 70.30% 60.57%

CRAR % @14.15% @14.48% 14.85% 12.88% 13.54% 12.04%

Operating Profit (in crore) (cumulative) 1253.88 897.56 1908.28 1,656.77 1,449.81 1,473.17
Turnover per Branch (in crore) 155.90 153.31 148.42 151.83 147.46 137.65
Turnover per Employee (in crore) 15.71 15.52 15.12 15.14 14.90 13.46
Operating Profit per Employee (in lakh)
* 14.71 * 10.60 22.66 19.48 17.52 18.00
* Not annualized
GNPA – Amount (in crore) 2330.52 2501.12 2,588.41 2,799.93 2,456.38 2,376.07
-% 4.11% 4.50% 4.91% 4.82% 4.41% 4.92%
NNPA – Amount (in crore) 1359.89 1546.11 1,642.10 1,755.01 1,616.71 1,400.51
-% 2.45% 2.84% 3.18% 3.08% 2.95% 2.96%
NIM 3.16% 3.15% 2.91% 2.84% 2.93% 3.18%
ROA * Quarterly * 0.65% * 0.57% 0.57% 0.53% 0.64% 0.49%
*
ROE Quarterly # Not annualized #* 8.51% #* 7.41% 7.65% 7.35% 8.53% 6.17%
The above figures are based on Standalone financials of the Bank
@Excluding profit; CRAR including profit is 14.87% (Dec’21) and 14.94% (Sep’21) respectively
6
KBL – VIKAAS: Impact on Key Parameters ….(2)
Particulars Dec ‘21 Sep ‘21 March ‘21 March ‘20 March ‘19 March ‘18

CASA % 31.30% 30.88% 31.49% 28.91% 28.06% 27.98%

Digital transactions % 92.64% 91.86% 91.07% 83.50% 77.86% 65.34%

Retail: Mid Corporate: Large
49: 32 : 19 50: 33 : 17 53 : 34 : 13 45 : 29 : 26 43 : 27 : 30 45 : 28 : 27
Corporate (%)
Digital underwriting: %

Home loans 68% 57% 71% 32% - -

Car loans 78% 53% 71% - - -

MSME loans (OD+Term Loan) 63% 30% 26% - - -

MSME loans (Micromitra+Business
70% 63% 73% - - -
Quick Loan)

Salary loans 100% 100% 100% - - -

Book value of shares (₹) 223.95 219.32 213.67 192.06 204.71 191.44

Networth (₹ in Cr) 6965.27 6818.10 6,642.36 5,970.45 5,785.18 5,410.15

The above figures are based on Standalone financials of the Bank 7
 02 Company Overview
Evolution, presence, Digital and Risk Management systems

Mission Statement
Vision Statement
"Our mission is to be a technology savvy, customer centric
progressive bank with a national presence, driven by the
“To be progressive, prosperous and well governed Bank”
highest standards of corporate governance and guided by
sound ethical values."

8
Evolution
• Business Turnover of ₹ 1,33,918 crore
for the quarter ended 31.12.2021.
₹ 1,33,918 Cr
business • 2,291 service outlets with 859 branches,
turnover one Extension Counter, 915 ATMs and
517 recyclers across India as on
31.12.2021. All 36 e-Lobbies & 465 mini
2,291 e-Lobbies empowered through
Outlets all Recyclers.
over India
• Digital loan underwriting for Retail &
Offers wide
Digital loan MSME loans.
initiatives &
variety of Tab Banking • Offers wide variety of corporate and
Banking for SB a/c
products opening
retail banking products and services to
First launched over 12 million customers.
generation
private • Incorporated in 1924, one of the first
sector
Bank generation private sector Banks.

Marching towards Centenary Year (2023-24)

9
Pan-India footprint
Area wise distribution of Branches
Metro Urban Semi Urban Rural

21
7
2 4 23%
28%
8 1

9 10
1 2

3
16 7 20
23%
5
8 26%
50
25
17
25
Branches ATMs Recyclers
7 41
540
1
1200
1014 1001
50 857 915
21 858 859
1000

800
473 517
477
600
Has presence in South India with 678 branches 400

200
Top 5 States: 0
Karnataka (540), Maharashtra (50), Tamilnadu (50), Dec'20 Mar '21 Dec'21
Andhra Pradesh (41), Telangana (25)
10
Robust technology and digital platforms
The existing “ISO 27001:2013” certificate encompassing
the Information Security Management System (ISMS) at
Launch of KBL Fastag
the Bank’s Data Centre/ IT Cell, Near line Site [NLS] and
Information Technology Department including the DR Digital sanction of Home
site [IT & DR], has been renewed by AJA Registrars, UK, loans, Personal loans, Car
for a further period of three years up to March 2022, loans, 2-wheeler loans &
Implemented Lending
reflecting the Bank’s continued commitment to MSME loans.
Automation Processing System
technology adoption. (LAPS) software for efficient Opening of Savings
life cycle management of loan accounts with pre-activated
accounts and improved debit card, through Tab
monitoring. provided to branches.
Implemented ‘KBL-
Established Centralized Opening of SB a/cs through
Mobile Plus’ (Mobile Web banking enabled.
Account Opening Cell for
Banking) app, ‘BHIM opening of CASA. Digital sales of insurance
KBL UPI’ app on Unified policies through Mobile
State-of-art IT set up Implemented an Enterprise
which has enabled
Payment Interface, Banking and Internet
Level Fraud Risk Management
Anytime Anywhere Cardless cash withdrawal, Banking platform.
System (ELFRMS) for effective,
Banking through alternate switch on/off debit card cyber fraud prevention across Sales of Mutual Fund
delivery channels such as usage, enable/disable delivery channels. products of all the AMCs in
Pioneer in implementing ATMs, VISA International a single platform
international transactions, Established DCOE for
“Finacle” (CBS) amongst Debit Card, RUPAY Debit ‘FISDOM’.
Card, Internet Banking, etc. as additional facilities developing Digital
the first generation underwriting capabilities & for Online opening of Demat &
Mobile Banking, IMPS, for the convenience of Trading account through
private sector banks better risk management in
e-lobby etc. customers KBL-Smart Trade.
credit portfolio.

11
KBL- Digital Centre of Excellence

DCoE : Accelerating Digital

Transformation Catalyst

C : Cost Optimization

A: Adoption

R : Risk Profile

E : Experience

12
Effective Risk management systems
1 Periodical monitoring & reviewing of risk profile of the Bank.

Internal Credit Rating of all the borrowers: Credit exposure above ₹ 25 lakh are rated borrower-wise and
2 credit facilities below ₹ 25 lakh & all schematic advances including agri-credit proposals are rated under
‘Pool based approach’. Also, ‘KBL96’ rating model is developed for all sanctions under digital journey.

3 Continuous offsite surveillance of Borrower accounts.

4 Effective ALM/mid office set up to monitor Liquidity risk/ Market risk on a continuous basis.

Enterprise level fraud risk management system (ELFRMS) to effectively control / prevent online suspicious
5
transactions done by customers & other digital channel transactions.

6 Effective Operational risk management by:

o Building up a database of internal Loss data, near- miss cases and other Operational risk events,
since Sept 2007.
o AML monitoring system to scrutinize the customer transactions to ensure compliance to the extant guidelines.
7 Complied with the extant ‘Basel III’ guidelines of RBI.

Implemented a scientific Fund Transfer Pricing (FTP) & Customer Profitability Management System (CPMS)
8
to assess the performance of branches / products / portfolios / customers.

Setup a dedicated Market Intelligence Unit (MIU) for sourcing intelligence from Monitoring departments, audit
9
reports and external sources on borrowers with exposure ₹100 Crores and above
Centralized Payments and Reconciliation Cell (CPRC) to handle Reconciliation, Settlement and Disputes
10
of all Digital Channels transactions. 13
03 Financial Performance
Financial Results, Business numbers, Productivity ,
Capital Adequacy ratios and Asset Quality

14
PL numbers 3 Months 9 Months

Q3 FY 22 Q3 FY 21 Q2 FY 22
₹ crs (31.12.2021) (31.12.2020)
Y-o-Y
(30-09-2021)
31.12.2021 31.12.2020 Y-o-Y

Interest Income 1565.10 1595.51 -1.91 1554.28 4642.88 4814.92 -3.57

Interest Expense 942.45 981.45 -3.97 917.18 2808.34 3090.88 -9.14

Net Interest Income 622.65 614.06 1.40 637.10 1834.54 1724.04 6.41

Fee Income 194.59 193.42 0.60 268.38 663.28 485.62 36.58

Treasury Income 1.86 89.81 -97.93 6.50 33.70 600.36 -94.39

Non-Interest Income 196.45 283.23 -30.64 274.88 696.98 1085.98 -35.82

Total Income (Net of Interest Expense) 819.10 897.29 -8.71 911.98 2531.52 2810.02 -9.91

Operating Expenses 462.78 449.20 3.02 418.38 1277.64 1230.45 3.84

Operating Profit 356.32 448.09 -20.48 493.60 1253.88 1579.57 -20.62

Provision for loan losses in Adv. / losses in Invts. /

209.75 312.71 -32.93 367.99 875.61 1128.37 -22.40
Taxes / other

Net Profit 146.57 135.38 8.27 125.61 378.27 451.20 -16.16

15
PL numbers 3 Months 9 Months

Q3 FY 22 Q3 FY 21 Q2 FY 22
₹ crs Y-o-Y 31.12.2021 31.12.2020 Y-o-Y
(31.12.2021) (31.12.2020) (30-09-2021)

Interest Income
Interest Income 1565.10 1595.51 -1.91 1554.28 4642.88 4814.92 -3.57
Interest on Advances 1195.32 1271.50 -5.99 1169.77 3526.38 3864.16 -8.97
Interest on Investments 329.23 288.34 14.18 334.15 980.06 839.49 16.74
Other interest 40.55 35.66 13.71 50.36 136.44 111.27 22.62
Yield on Advances % 8.81 9.39 -6.14 8.91 8.89 9.38 -5.20

Adjusted yield on Investments % 5.74 7.51 -23.57 5.75 5.70 9.70 -41.24
Interest Expense
Interest Expense 942.45 981.45 -3.97 917.18 2808.34 3090.88 -9.14
Interest on Deposits 907.43 939.99 -3.46 882.93 2702.94 2933.06 -7.85
Other interest 35.02 41.46 -15.53 34.25 105.40 157.82 -33.22

Cost of Deposits % 4.68 5.14 -8.90 4.64 4.71 5.40 -12.79

Net Interest Income
Net Interest Income 622.65 614.06 1.40 637.10 1834.54 1724.04 6.41

Interest Spread in Lending % 4.13 4.25 -2.82 4.27 4.18 3.98 5.12

Net Interest Margin % 3.18 3.26 -2.54 3.31 3.16 3.07 2.96

16
Financial strength of the Bank
Networth (₹ crs)

6,642 6,965
6,611
8000

6000

6,654
4000 6,300 6,331

2000

311 311 311

0
Dec '20 Mar '21 Dec '21

Capital Reserves

17
Business size

Business Turnover (₹ crs)

1,27,013 1,27,349 1,33,918

120000
51,694 55,489
53,187
100000

80000

60000
75,655 78,429
73,826
40000

20000

0
Dec '20 Mar '21 Dec '21

Deposits Advances

18
Deposits
Deposits (₹ crs) 16% Growth rate (y-o-y)
14%

12%
75,655 78,429
73,826 10%

13.57%
0.03% 0.01% 0.01% 8%

14.80%

4.41%
10.59%
6%
69.90% 68.50% 68.69%

6.23%
4%

5.39%
1.65%
2%

3.46%
30.07% 31.49% 31.30% 0%
CASA deposit Retail term deposit Total deposit

-0.24%
-2%

Dec '20 Mar '21 Dec '21

CASA deposits Retail term deposits Wholesale deposits * Dec '20 Mar '21 Dec '21
* Wholesale deposits = Purchase liability + Certificates of deposit + Interbank
deposits Cost of Deposits

5.40% 5.29%
6%
4.71%
5%

4%

3%

2%

1%

0%
Dec '20 Mar '21 Dec '21

19
Deposits
NRI Deposits (₹ crs)

5000 7%
NRI 4,436 4,418
4500 4,379
deposits 6%
4000
5.58%
3500
6.01% 5.84% 5%
5.58%
3000
4%
2500
3%
2000
1500 2%
1000
Domestic 500
1%
deposits
0 0%
94.42%
Dec '20 Mar '21 Dec '21

Amount % to total deposits

20
Advances
Advances [Net] (₹ crs)

53,187 55,489
51,694

15.47% 13.22% 18.78%

33.10% 33.79%
32.44%

51.43% 52.98% 48.78%

Dec '20 Mar '21 Dec '21

Corporate (> 100 crore)

Mid Corporate (> 5 crore & upto 100 crore)
Retail (upto 5 crore)

21
Advances to Priority sectors
Priority Sector Advances (₹ crs) Agriculture Advances* (₹ crs)
60% 53.15% 35000
29,584 30,720 17% 9500
28,617 28,693 30000 9,319 9,317
50% 50.47% 17%
25,094 16.12%
48.93% 25000 9,071 15.90%
40% 46.58% 16%
43.89% 8,931 9000
20000 16%
30% 8,568 15.23%
15000 15%
20% 14.99%
10000
15% 14.76% 8500
14%
10% 5000
14%
0% 0 13% 8000
Mar '20 Mar'21 Jun'21 Sep'21 Dec'21 Mar '20 Mar'21 Jun'21 Sep'21 Dec'21
Amount %
Amount % *Including RIDF

Advances to Weaker Section (₹ crs)

4500 8.00%
3,922 3,993 4,024
4000 3,758
6.96%
3500 6.69% 6.81% 7.00%
6.12%
3000
2,490 6.00%
2500
2000
5.00%
1500 4.35%
1000 4.00%
500
0 3.00%
Mar '20 Mar'21 Jun'21 Sep'21 Dec'21

Amount %
22
 Geographical Credit concentration (₹ crs)

GBC NPA Restructured SMA-2#

State
State Balance % to State State % to wise
Balance % to Balance % to Balance
Outstanding GBC Outstanding wise wise Performing
GBC Outstanding GBC Outstanding advances % to
% % Performi
ng
advance

Karnataka 25748.11 45.45 1011.26 1.79 3.93 2528.94 4.46 9.82 681.81 1.26 2.65

Maharashtra 9102.73 16.07 218.64 0.39 2.40 356.96 0.63 3.92 63.91 0.12 0.70

Delhi 5295.26 9.35 97.94 0.17 1.85 465.77 0.82 8.80 21.89 0.04 0.41

Tamilnadu 3311.57 5.85 195.73 0.35 5.91 168.70 0.30 5.09 16.98 0.03 0.51

Telangana 3203.63 5.65 111.98 0.20 3.50 189.62 0.33 5.92 71.59 0.13 2.23
Andhra
2483.99 4.38 118.34 0.21 4.76 148.17 0.26 5.96 63.77 0.12 2.57
Pradesh
All other
7506.38 13.25 576.623 1.02 7.68 832.14 1.47 11.09 235.05 0.43 2.12
States/ UTs
Total 56651.67 100.00 2330.52 4.11 4690.30 8.28 1155 2.13

# This includes both ₹ 5 crore & above and below ₹5 crore as well as the main accounts & related accounts
23
Top Credit Sectors (₹ crs)

Position as on 31.12.2021
NPA SMA 2 #
Particulars
Balance % to GBC % Total
Amount %
to sector Amount

MSME 15945.03 28.15 1090.70 6.84 464.83 2.92

Agriculture 9317.35 16.45 548.12 5.88 80.10 0.86

Housing Loans
8621.14 15.22 237.91 2.76 163.28 1.89
(Residential Mortgage)

NBFC 7613.40 13.44 12.03 0.16 0.00 0.00

Lease Rental
2865.31 5.06 44.39 1.55 29.05 1.01
Discounting
Gold Loans 2850.40 5.03 6.59 0.23 15.32 0.54
Banking Arrangement
Consortium 1726.24 3.05 12.03 0.70 0.00 0.00
Multiple banking 10591.45 18.70 64.78 0.61 18.75 0.18

# This includes both ₹ 5 crore & above and below ₹5 crore as well as the main accounts & related accounts

24
Restructured loans & related accounts
4,690
Stress & NPA position under Restructured loans (₹ crs)
Of which, NPA

964
Related a/cs
SMA-2 NPA
Restructured loans

Particulars
No of Amount No of Amount
Accounts Accounts

RF-1 345 137.44 204 78.56

1,739
RF-2 407 118.4 156 38.48
3,726

Others** 169 122.97 252 202.86

407

690 Grand Total 921 378.81 612 319.90

1,332
537 153

RF- Resolution Framework

**including MSME OTR/Natural Calamities/SME DRS etc.
320
249
80

Mar '21

Dec'21
Dec '20

25
SMA accounts (SMA 2 and SMA 1)

SMA 2 (₹ crs) SMA 1 (₹ crs)

6.00% 5.32% 3000

6.60%
7.00%
* 4000

2,785
6.00% 3500 5.00% 2500
4.35%
**
3,453

3000
5.00%
4.00% 2000
2500
4.00% 2.74%
2000 3.00% 1500
2.78% 2.13%

2,181
3.00%
1500
2.00% 1000
2.00%
1000
1,393

1,487
1.00% 1,155 1.00% 500
500

0.00% 0 0.00% 0
Dec '20 Mar '21 Dec '21 Dec '20 Mar '21 Dec '21
Amount % to Performing advances
Amount % to Performing advances

26
Income & Profit - Quarterly
Net Income (₹ crs) Operating and Net Profit (₹ crs)
1000 897 448
900 832 819
450 358 384 359
800
283 356 354
700 196 400

600
373 350
300
500
250 146.57
400
300 614 623 200 135.28

200 459 150

100 31.37
100
0 50
Dec '20 Mar '21 Dec '21 0
Dec '20 Mar '21 Dec '21

Net Interest Income Other Income Total Income Operating profit Operating profit (excluding Trading Profit) Net profit

Net Interest Margins (%) Cost to Income Ratio (%)

4.00% 60%
56.50%
3.26% 3.18% 53.90%
3.00% 50.06%
2.41% 50%

2.00%
40%
1.00%

30%
0.00%
Dec '20 Mar '21 Dec '21
Dec '20 Mar '21 Dec '21

27
Return and Capital Adequacy Ratios
Return on Equity (%) (after tax) Return on Assets (%) (after tax)
0.70%
8.51%*
9.00%

8.28% * *
0.64%*
0.65%
0.65%
7.65%
0.60%
0.57%
0.55%
6.00%
Dec '20 Mar '21 Dec '21
0.50%
*quarterly and not annualised Dec '20 Mar '21 Dec '21

Capital Adequacy (%) - Basel III *quarterly

Tier I Tier II Total CRAR

16 14.85 14.15
13.83
14
12
11.35 12.34 11.74
10
8
6
4 2.48 2.51 2.41
2

* Tier II recomputed by including 0

full eligible amount Dec '20 Mar '21 Dec '21
28
Productivity ratios
Operating Profit per employee (₹ lakh) * Operating Profit per branch (₹ lakh) *
245.75
25.08 222.41
30 22.66 250 194.62
25
19.61
200
20

15 150

10
100
5
50
0
Dec '20 Mar '21 Dec '21
0
* annualized
Dec '20 Mar '21 Dec '21

Business per employee (₹ crs) Business per branch (₹ crs)

15.71 200
148.21 148.42 155.90
20 15.12 15.12
150
15

100
10

50
5

0
0 Dec '20 Mar '21 Dec '21
Dec '20 Mar '21 Dec '21

29
Provisions
Provisions & Contingencies during the quarter
Provision Coverage Ratio
Category Provision (in crore) % to total
100%

90%
NPA 111.75 53.28% 80.51%
80%
Standard advances 34.80 16.59% 70.05% 73.74%
70%
Fair Value -7.81 -3.72%
60%
Tax 71.25 33.97%
50%
Others -0.24 -0.11%
40%
Total 209.75 Dec '20 Mar '21 Dec '21

100%
90%
80%
70% Segment wise PCR (Dec’21)
60% As on 31.12.2021 No. of Amount Provision % provision
100.00%

95.28%

91.99%

50% cases (in crore) held (in crore) held

83.49%
66.47%

40%
63.96%

60.73%

NCLT Referred 35 1273.91 1226.65 96.29%

52.23%

49.01%

30%
39.90%

cases
30.70%

26.96%

20%
10%
Security receipts - 388.63 194.52 50.05%
0%

30
CD Ratio & Yield on Advances
Credit Deposit ratio (%)
73%
72.04%
72%

71% 70.75%

70%

69%
68.33%
68%

67%

66% Yield on Advances & Interest Spread (%)

Dec '20 Mar '21 Dec '21
Yield on advances Interest spread
9.38% 9.05% 8.89%
10%

8%
3.98% 3.76% 4.18%
6%

4%

2%

0%
Dec '20 Mar '21 Dec '21

31
Asset Quality
Gross NPAs (₹ crs) Net NPAs (₹ crs)
4.91%
6% 3000 3.50% 3.18% 1800

5% 4.11% 2500 3.00% 1600

2.45% 1400
2.50%
4% 3.16% 2000

2,588
1200
1.74%

2,331

1,360
2.00% 1000
3% 1500

1,642
1.50% 800
2% 1000 600
1,707

1.00%
1% 500 400

924
0.50% 200
0% 0 0.00% 0
Dec '20 Mar '21 Dec '21 Dec '20 Mar '21 Dec '21

Gross NPA Gross NPA % Net NPA Net NPA %

* With standstill clause for NPA recognition

Slippage ratio Credit cost

3% 3% 2.37%
3%
2.44% 2.31% 2% 1.66%
2%
2%
2%
1%
0.85%
1%
1%
1% 0.31%
0%
0%
Dec '20 Mar '21 Dec '21
Dec '20 Mar '21 Dec '21

32
Asset Quality
Composition of NPA Size wise NPA
Above Rs 50 Cr
Loss 2.98%
Assets Sub
3.40% Standard
31.45% Upto Rs 1 Cr
Rs 5 Cr to Rs 50 42.20%
Cr
30.16%
Doubtful
65.15%
Rs 1 Cr to Rs 5 Cr
24.67%

Credit portfolio wise NPA

Mid Corporate (> 5 crore & Corporate (> 100 crore)

upto 100 crore) 0%
33%

Retail (upto 5 crore)

67%

33
Asset Quality
NPA accounts of Rs 25 Crore and above and provisions held -Dec’21 (₹ crs)

NPA Classification No. of Borrowers Net Balance Provision held Provision %

SS - (1) - (101.20) - (35.49) - (35.07%)

DS 1 1 (3) 25.13 (127.81) 25.13 (55.79) 100% (43.65%)

DS 2 3 (3) 142.12 (125.77) 100.74 (63.85) 70.88% (50.77%)

DS 3 - (1) - (29.49) - (29.49) - (100)

LOSS - (1) - (120.43) - (120.43) - (100)

Total 4 (25) 167.25 (738.40) 125.87 (389.05) 75.26% (52.69)

Total Gross NPA Amount 2330.52 ( 1706.57*) Gross NPA % 4.11 ( 3.16*)

[ Figures in brackets – as of Dec ‘20] * With standstill clause for NPA recognition

34
Asset Quality
(₹ crs) Q3FY20 Q4FY20 FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 FY21 Q1FY22 Q2 FY22 Q3 FY22
Opening GNPA 2594.27 2777.46 2456.38 2799.93 2557.64 2188.80 1706.57 2799.93 2588.41 2549.06 2501.13
Addition 637.54 304.07 1998.58 166.84 2.21 1.40 1175.92 1346.37 414.24 445.36 297.67
Fresh slippages 606.55 304.07 1931.40 155.65 1.49 0.27 1174.29 1331.70 409.67 442.00 273.03
Slippages from existing NPA a/cs 30.99 0.00 67.18 11.19 0.72 1.13 1.63 14.67 4.57 3.36 24.64
Reduction 454.35 281.60 1655.03 409.13 371.05 483.63 294.08 1557.89 453.59 493.30 468.28
Recoveries 70.74 74.77 322.87 33.89 137.46 85.14 94.29 350.78 182.07 106.19 117.31
Upgradation 56.29 62.37 241.32 12.40 18.57 5.76 16.98 53.71 88.32 208.34 273.57
Write off 327.32 144.46 1090.84 362.84 215.02 392.73 182.81 1153.40 183.20 178.77 77.40
Closing GNPA 2777.46 2799.93 2799.93 2557.64 2188.80 1706.57 2588.41 2588.41 2549.06 2501.12 2330.52
Technical write off (cumulative) 2284.07 2172.34 2172.34 2526.83 2674.46 3033.87 2893.76 2893.76 3044.35 2972.17 2847.89
Total GNPA (incl Technical write off) 5061.53 4972.27 4972.27 5084.47 4863.26 4740.44 5482.17 5482.17 5593.41 5473.29 5178.41
NPA Provision (cumulative) 687.62 1017.31 1017.31 896.39 960.51 740.10 901.95 901.95 949.24 895.62 905.45
Total Provisions (incl Technical write off) 2971.69 3189.65 3189.65 3423.22 3634.97 3773.97 3795.71 3795.71 3993.57 3867.79 3753.34
Closing NNPA 2058.04 1755.01 1755.01 1630.65 1194.60 923.98 1642.10 1642.10 1552.95 1546.11 1359.90

PCR (%) incl Technical write off 59.34% 64.70% 64.70% 67.93% 75.44% * 75.09% 70.05% 70.05% 72.24% 71.75% 73.74%
PCR (%) excl Technical write off 25.90% 37.32% 37.32% 36.24% 45.42% 45.86% 36.56% 36.56% 39.08% 38.18% 41.65%

GNPA % 4.99% 4.82% 4.82% 4.64% 3.97% 3.16% 4.91% 4.91% 4.82% 4.50% 4.11%
NNPA % 3.75% 3.08% 3.08% 3.01% 2.21% 1.74% 3.18% 3.18% 3.00% 2.84% 2.45%
35
External rating wise Advances
[ Figures in brackets – as of Dec’20]
Of which, NPA SMA2 Restructured book
No of Balance O/s
Rating Borrowers
% to GBC No. of No. of Bal o/s No. of Bal o/s % share to
(in cr) Bal o/s (cr) borrowers
borrowers (cr) borrowers (cr) Std. Adv. @
AAA 15 (14) 4,208 (3,061) 7.43 (5.67) - - - - - - -

AA 44 (30) 3,838 (2,984) 6.77 (5.52) - - - - - - -

A 57 (39) 2,111 (1,277) 3.73 (2.36) - - - - - - -

BBB 86 (88) 2,059 (2,456) 3.63 (4.55) - - 2 5.73 1 84 0.15

Sub total 202 (171) 12,216 (9,779) 21.56 (18.10) - - 2 5.73 1 84 0.15

BB 28 (40) 837 (943) 1.48 (1.74) - - 2 42 0.08

B 8 (12) 94 (404) 0.17 (0.75) - - - - - - -

C 1 (1) 157 (6) 0.28 (0.01) - - - - - - -

D 8 (6) 572 (370) 1.01 (0.68) 2 (1) 30 (101) - - 2 332 0.61

Sub total 45 (59) 1,660 (1,722) 2.93 (3.19) 2 (1) 30 (101) - - 4 374 0.69

Grand
247 (230) 13,876 (11,501) 24.49 (21.29) 2 (1) 30 (101) 2 5.73 5 458 0.84
Total
Gross Bank Credit: ₹ 56,651 crore (PY Dec’20: ₹ 54,026 crore). @ Under respective rating category

36
NBFC portfolio
[ Figures in brackets – as of Sep ‘20]
Of which, NPA SMA2 Restructured book
No of Balance O/s
Rating % to GBC no. of no. of Bal o/s no. of Bal o/s % share to
Borrowers (in cr) Bal o/s (cr)
borrowers borrowers (cr) borrowers (cr) Std. Adv. *
AAA 14 (12) 4,208 (2,696) 7.43 (4.99) - - - - - - -

AA 26 (19) 2,592 (2,277) 4.58 (4.21) - - - - - - -

A 24 (14) 814 (328) 1.48 (0.61) - - - - - - -

BBB 3 (1) 17 (12) 0.03 (0.02) - - - - - - -

Sub total 67 (46) 7,631 (5,313) 13.47(9.83) - - - - - - -

BB 1 (2) 3 (47) 0.01 (0.09) - - - - - - -

B - - - - - - - - - -

C - - - - - - - - - -

D 1 (-) 12 (-) 0.02 (-) 1 (-) 12 (-) - - - - -

Sub total 2 (2) 15 (47) 0.03 (0.09) 1 (-) 12 (-) - - - - -

Without External
- (4) - (59) - (0.11) - - - - - - -
rating

Grand Total 69 (52) 7,646 (5,419) 13.50 (10.03) 1 (-) 12 (-) - - - - -

Gross Bank Credit: ₹ 56,651 crore (PY Dec’20: ₹ 54,026 crore). * Under respective rating category
37
Top 50 borrowers [ Figures in brackets – as of Dec‘20]

Of which, NPA SMA2 Restructured book

No of Balance O/s
Rating % to GBC no. of no. of Bal o/s no. of Bal o/s % share to
Borrowers (in cr) Bal o/s (cr)
borrowers borrowers (cr) borrowers (cr) Std. Adv. *
AAA 11 (10) 3,988 (2,821) 7.04 (5.22) - - - - - - -

AA 14 (9) 2,605 (1,952) 4.60 (3.61) - - - - - - -

A 6 (5) 678 (391) 1.20 (0.72) - - - - - - -

BBB 5 (9) 237 (805) 0.42 (1.49) - - - - - - -

Sub total 36 (33) 7,508 (5,969) 13.25 (11.04) - - - - - - -

BB 2 (3) 276 (294) 0.49 (0.54) - - - - - - -

B - (2) - (316) - (0.58) - - - - - - -

C 1 (-) 157 (-) 0.28 (-) - - - - - - -

D 1 (1) 329 (152) 0.58 (0.28) - - - - 1 (-) 329 0.61

Sub total 4 (6) 762 (762) 1.35 (1.40) - - - - 1 (-) 329 0.61

Without External
10 (11) 1491 (1,120) 2.63 (2.07) - (1) - (120) - - - - -
rating #

Grand Total 50 (50) 9,761 (7,850) 17.23 (14.51) - (1) - (120) - - 1 (-) 329 0.61

# of which 2-KB1, 1- KB2, 1- KB3, 2-KB4, 3-KB5, 1-KB6 as per Internal rating of the Bank
ALL THE TOP 50 BORROWERS ARE IN STANDARD CATEGORY AS OF DEC’21. * Under respective rating category
Gross Bank Credit: ₹ 55,601 crore (PY Dec’20: ₹ 55,142 crore).
38
Consolidated numbers 3 Months 9 Months

Q3 FY 22 Q3 FY 21 Q2 FY 22
Particulars Y-o-Y 31.12.2021 31.12.2020 Y-o-Y
(31.12.2021) (31.12.2020) (30-09-2021)

Turnover 133918 127014 5.44% 131390 133918 127014 5.44%

Asset size 90958 84050 8.22% 89216 90958 84050 8.22%
Operating profit 356.17 448.08 -20.51% 493.45 1253.40 1579.47 -20.64%
Net profit 146.42 135.37 8.52% 125.45 377.79 451.10 -16.25%
Return on Asset (ROA%) 0.65% 0.64% +1 bps 0.57% 0.57% 0.71% -14 bps
Earning per Share (₹)(not annualized) 4.71 4.35 0.36₹ 4.04 12.15 14.51 -2.36₹
CRAR (Basel III) 14.15% 13.83% 32 bps 14.48% 14.15% 13.83% 32 bps

The Consolidated Financial results of the Group comprise of the financial results of The Karnataka Bank Ltd and its wholly owned subsidiary KBL Services Ltd.

The paid-up equity capital of KBL Services Limited is Rs.100.00 lakhs comprising of 10,00,000 equity shares of Rs.10 each fully paid up. KBL Services Ltd, a wholly
owned non-financial subsidiary of the Bank was incorporated on June 21, 2020 and the certificate of commencement of business was filed on August 26, 2020. The
company commenced its operations on March 30, 2021.

39
Investments
AFS
Investments [excl. RIDF] (₹ crs) 22.23%
HFT
21,635 21,991 0.00%
20,660
25000

20000

15000 HTM
77.77%
10000

5000
Duration
0
Dec '20 Mar '21 Dec '21 AFS HFT HTM TOTAL
4.26 0.00 5.60 5.32
Yield on Investments (%)
7%
Liquidity Coverage Ratio
350% 317.92%
300% 278.93%
6.12% 6.02% 245.59%
250%
6% 5.86%
200%
150%
100%
50%
5%
0%
Dec '20 Mar '21 Dec '21 Dec '20 Mar '21 Dec '21

40
Capital Adequacy
(₹ crs) Risk Weighted Assets

Particulars 31.12.2020 31.03.2021 31.12.2021 50,863 49,760 52,128

Risk Weighted Assets 50863.16 49,759.61 52128.30
10.65% 10.89% 11.07%
Total Capital Fund (Basel III) 7036.02 7,387.05 7375.40 6.35% 6.34% 6.62%

Total Tier I Capital 5770.82 6,140.39 6119.02

83.00% 82.78% 82.32%
Paid up Equity Capital 310.88 310.88 311.02
Reserves under Tier I Cap. 5459.94 5,829.51 5808.00
Eligible Tier II Capital 1265.20 1,246.65 1256.38 Dec '20 Mar '21 Dec '21

General Provisions & Reserves 495.20 501.65 536.38 RWA for Credit risk RWA for Market risk RWA for Operation risk

Subordinated Debts 770.00 745.00 720.00

RWA to Total Assets
CRAR under Basel III 13.83 % 14.85% 14.15%
62%
CRAR Tier I Capital 11.35 % 12.34% 11.74% 60.52%
60%
58.14%
CRAR Tier II Capital 2.48% 2.51% 2.41% 58% 57.31%
56%
CRAR with current year’s profit 14.72% 14.87%
54%
CRAR with profit and without 52%
restriction of 1.25% of RWA for general 15.47% 50%
provisions
Dec '20 Mar '21 Dec '21

41
Share holders’ value
Share holding pattern Earning Per Share (₹)
14.51 * 15.52

16
12.17 *
Others
4.27% 14
Indian Public
12
78.94%
10
8
6
4
2
Banks, FIs, MF,
0
Insurance Cos
Dec '20 Mar '21 Dec '21
5.64%
* Not annualized

Book value (₹ in Cr)

212.66 213.67 223.95

250

Foreign Portfolio 200

Investors 150
11.16%
100

50

0
Dec '20 Mar '21 Dec '21

42
Digital capabilities

Migration to Digital Channel

[share of ADC transactions to total CBS transactions]

94%
92.64%
91.63% 91.86%
90.66%
92%

90%

88%

86%
83.50%
84%

82%

80%

78%
Mar '20 Mar '21 Jun'21 Sep'21 Dec'21

43
Mobile Banking

No. of Regd users (Actuals as at the end of the quarter)

19,62,138
16,11,054
13,66,082
12,60,932
11,36,380
Dec-20 Mar-21 Jun-21 Sep-21 Dec-21

Value of transactions during the quarter

No. of transactions during the quarter
106.0
64 66 95.8
58 61 84.0 94.0
55 81.5

6,002
5,748

5,593

9,661
5,336

4,968

8,626

8,612
7,772

7,419
Dec-20 Mar-21 Jun-21 Sep-21 Dec-21
Dec-20 Mar-21 Jun-21 Sep-21 Dec-21
No. of Transactions (in 000’s) Avg. Transactions per day (in 000’s) Value of Transactions (in Cr) Avg. value of Transactions per day (in Cr)

44
Debit Cards
Position during the quarter

Debit cards Penetration

89.40%
88.42%

86.88% 87.21%

51.68
51.55
86.20%

50.34
50.09

49.90
Dec-20 Mar-21 Jun-21 Sep-21 Dec-21
Total cards issued (Lakhs) Penetration (%)

Total ATM transactions by our Debit Card holders

Cards Usage

187
163 155 157
125
102
85 76 87 72 83 71
86
56 69

Dec-20 Mar-21 Jun-21 Sep-21 Dec-21

KBL ATM (lakhs)
Shared Network (VISA/NFS) (lakhs)
Total ATM transactions by our
45 Debit Card holders(lakhs)
UPI transactions
Position during the quarter

BHIM KBL UPI Txns count

1,811
1,610
1,374 1,331
1,225

164850
1,48,148
1,23,647

1,21,076
1,12,709
KBL BHIM UPI
Dec-20 Mar-21 Jun-21 Sep-21 Dec-21
No. of Transactions (in 000's) Avg. Transactions per day (in 000's)
BHIM KBL UPI Txn Value

339
316
261 263
230

31,171
29,048
23,896
23,501
21,175

Dec-20 Mar-21 Jun-21 Sep-21 Dec-21

Value of Transactions (in Crore) Avg. value of Transactions per day (in Crore)

46
POS & ECOM transactions
Position during the quarter
70 9.4
66 9.0 9.0 9.0
61 60 61 60
POS Transactions

50
42
6.2
40

5,895
5,607

5,538
5,500
30 810 847 815 845

3,790
20 563
10
0
Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21

No. of Txn ('000s) Avg per day ('000s) Value of Txn (Crore) Avg per day (Crore)

32 4.0
26 3.4
ECOM Transactions

24 24 3.0 3.0
2.9
19
2,960

386
2,382

2,203

2,165

305

1,747
268 279 250

Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21

No. of Txn ('000s) Avg per day ('000s) Value of Txn (Crore) Avg per day (Crore)

47
Digital Lending
Banking on Digital First Approach….
Digital Adoption Customer Rating
5 point Scale
Best TAT
In Mins

KBL Xpress Home Loans 68% 4.52 7 Digital Leads

Enabling reach digitally

2100+
KBL Xpress Car Loans 78% 4.44 15

Risk Reduction
KBL Xpress Cash Improving Asset Quality
100% 4.49 8 ( Cibil V3 >701 Score Portfolio)

>75%
KBL Xpress MSME Loans 70% 3.96 13
(Micromitra+BQL)

KBL Xpress Accounts 57% 4.5 5

(Tab+Web)
48
Strong foundation of digital capabilities and enablers

Mobile Banking Internet Banking KBL BHIM UPI KBL- mPassBook

Digital Channels

Xpress Home Loan Xpress Car Loan Xpress Cash Loan Xpress Mortgage Loan

Xpress lending Journeys

Xpress MSME Term Loan CV Loan Xpress SB

49
Sustainability driven by Digital Tools

Digital calling tool

Collection activities E-Connect Lead calling status

Loan Payment tracking
Portal

50
 Xpress Analytics
Annual Branch Customer Dashboard Xpress Profile for Wallet Share
(ABCD) X-PAWS
(XPAWS)

Information on branch finger tips Accelerating Quality Growth

• Customer Profile & Segment
• ADC Adoption & Usage
• Products & Services Usage
• Re-KYC and Contactability
• ADC Adoption • CASA Share
• Repayments • Product Recommendation
• Quality of Business
• Profitability
• Customer Satisfaction
• Branch Productivity

Analyzing Customer Relationship Driving Quality & Wallet Share

51
04 Business Strategy
Corporate Goal and Roadmap ahead

52
Corporate Goal for 2021-22
Risk Management Dept
to be covered under 10 Further
‘QMSS-ISO 9001:2015’ 09 strengthening of
Digital sales verticals
Transformation-
Construction of an KBL NxT journey 08
iconic building ‘KBL 07
Centenary Tower’

Setting up of ACoE
06 (Analytical Centre of
Excellence)
05 Implementation
of Data
Analytics
Digital Customer
opening of onboarding
through V-CIP
04 Enhancement of
Digital journey CASA accounts existing Mobile
for many more in Web Portal 03 Banking & Internet
retail loan Banking features
products 02

01

53
Roadmap – Upcoming Lanes 54

• Digital Insurance platform.

Xpress • Valuation & BIR Automation in digital lending.

Journey • DSA / BSA channel platform.

• KBL Xpress Accounts : SB Quick, VCIP, Digital Re-KYC

Digital • Marketing & Campaign Automation.

Marketing • In-house Survey Tool for market research and NPS management.
• Website & MB Modernization with Analytics

• ACoE (Analytics Centre of Excellence) incubation – Platform, Skills & Use cases
• Fintech Onboarding – Agri Tech, Co-lending, Whatsapp Banking, Trade Automation
Incubating
• Co-lending partnerships for better leverage and asset penetration
Future Tech • NLP Bot : DhIRA (Digi Human Interactive Relationship Assistant) on Xpress Journey
• MSME Neo Bank enabled through Partnerships

54
Business Strategy
CASA deposits Digital Banking initiatives

 Focusing on customer onboarding to  Focusing on digital marketing of Bank’s

increase CASA as well as cross selling products & services
 RSE approach to CASA marketing.  Digital loan sanctions for HL, PL, Auto
 SB account opening through TAB loans and other retail & MSME loans
banking, Web portal.  Value addition to Bank’s existing Mobile
Banking & Internet Banking channels
Minimum space maximum business.  Installation of self service kiosks
 Comprehensive IT and Digital Strategy –
Making available critical applications and
Credit augmentation IT infrastructure
 Focusing on ABCD, a 3600 review of
 Focusing on MSME sector customer data.
 Focusing on mid-corporate & retail
sectors
 Flow based lending and an exclusive
personal loan product. Para banking activities
encompassing Insurance &
Mutual Funds.
NPA & Stressed Assets management
Partnered with efficient contact
 Minimizing slippages and
center for handling both in-bound &
improving recovery management.
outbound calls.
 A comprehensive collection
mechanism.
55
Board of Directors

Pradeep Kumar Panja Mahabaleshwara M S

Part Time Chairman Managing Director & CEO

Mrs Mythily Ramesh

Keshav Krishnarao Desai B R Ashok
Bengaluru
Hubballi Chartered Accountant
Businessman IT Professional and Co-Founder &
CEO of NextWealth Partner in M/s. MSKC & Associates,
Chartered Accountants, Chennai

Justice A V Chandrashekar
Mrs Uma Shankar Mr D S Ravindran
Bengaluru
Bengaluru Bengaluru
Former Judge, High Court of Karnataka
and former Judicial Member, Karnataka Former ED, RBI Former Principal Secretary to the
State Administrative Tribunal Government Khajane-2, Finance Dept,
Govt of Karnataka.

Mr Balakrishna Alse
Mangaluru
Former ED, OBC

56
 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 &

Thank You COMMITMENT TO MAKE

OUR BELOVED
KARNATAKA BANK
“A DIGITAL BANK OF THE
FUTURE”.

57
Disclaimer

This presentation has been prepared by Karnataka Bank (the “Bank”) solely for providing information about the Bank. This presentation is confidential and may not
be 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 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 in
respect 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 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 circumstances after
the date thereof. This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of
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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 United
States 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 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 this presentation,
without obligation to notify any person.

58