KARUR VYSA BANK

IPO JULY 5 2002 Rs.299.35

About Company:
Karur Vysya Bank, incorporated 1916, is popularly known as KVB. The bank was set up with a seed
capital of Rs 1 lakh. Today it has grown to 300 branches and an ATM network of 301.The bank has
access to over 13000 domestic ATMs under the VISA / NFS / MITR /Axis bank cluster and over 1 million
VISA ATMs worldwide. Karur Vysya Bank is among 6 old generation private sector banks that has been
identified by the Reserve Bank of India (RBI) to implement Speed Clearing at Mumbai

Equity dividend:

YEAR MAR’17 MAR’16 MAR’15 MAR’14 MAR’13

130.00 140.00 130.00 130.00 140.00

Products:
Consumer banking
Investment banking
Wealth management
Corporate banking
Mortgage loans
Credit Cards
Finance and Insurance
Private banking

Customer:
Management:

Name Designation
B. Swaminathan Non-Executive Independent (Part-time)
Chairman
Shri B. Swaminathan, holds a Master degree in Science
and is a graduate in Law. He is a Certified Associate of the
Indian Institute of Bankers, Mumbai. He has vast
experience in Banking. He was appointed as an Executive
Director of Canara Bank by the Government of India and
was with Canara Bank from January 2005 till January 2007
Shri P R Seshadri Managing Director and Chief Executive Officer
Shri P R Seshadri, is a senior banker with Commercial and
Retail Banking experience of over 25 years spanning
multiple geographies. He is an alumnus of the Indian
Institute of Management, Bangalore (Post Graduate
Diploma in Management) and Delhi College of Engineering
(Bachelor of Engineering)

Q4 Result:

Shareholding Pattern:
%
No of Share
Holder's Name Shares Holding

Promoters 15133943 2.08%

General Public 362122747 49.84%

Foreign Institutions 142961654 19.67%

NBanksMutualFunds 108328161 14.91%

Others 58013070 7.98%
Financial
Institutions 40080296 5.52%

Latest News:
 Net profit of Karur Vysya Bank declined 68.97% to Rs 45.91 crore in
the quarter ended June 2018 as against Rs 147.97 crore during the
previous quarter ended June 2017. Total Operating Income rose 4.22%
to Rs 1442.53 crore in the quarter ended June 2018 as against Rs
1384.08 crore during the previous quarter ended June 2017.
  Memorandum of Understanding (MOU) was signed between StarAgri Finance
and KVB to provide co-lending services in the four states of Tamil Nadu,
Karnataka, Andhra Pradesh and Maharashtra. This partnership will help make
institutional finance accessible to local commodity traders and farmers. All loans
will be provided against their agri-commodities stored in StarAgri's scientifically
planned and centrally managed warehouses.
Profit Breakup:

INCOME 18-Mar 17-Mar

Interest / Discount on
Advances / Bills 4,420.81 4,401.69

Income from Investments 1,122.93 1,106.04

Interest on Balance with

RBI and Other Inter-Bank
funds 77.21 87.77

Others 78.7 26.86

Total Interest Earned 5,699.65 5,622.35

Other Income 899.93 782.22

Total Income 6,599.59 6,404.57

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
5. Ranked as Best Small sized Bank, 2010 by Business World

Weaknesses

1. Regional concentric i.e. in South India only

2. Low publicity and brand visibility

Opportunities

1. Industry banking in the region

2. Extensive penetration in rural banking

Threats

1. Economic slowdown and recessions

2. Highly competitive environment
3. Stringent Banking Norms
4. Local money lenders in the rural areas

KARUR VYSYA BANK Ltd vs PEERS STOCK PERFORMANCE

KARUR VYSYA BANK Ltd vs PEERS STOCK PERFORMANCE

Tie-ups

KVB has a tie up with Birla Sun Life Insurance Company and Bajaj Allianz General
Insurance Company to offer all types of insurance products.

The bank is also engaged in distribution of mutual funds products namely SBI MF,
Reliance MF, Sundaram BNP Parbas MF, Birla Sunlife MF, Franklin Templeton MF
and LIC MF.

Karur Vysya Bank has a tie up with Religare Securities for off-line trading facility to
its demat customers.

Products and Services

Personal Banking- Under this, KVB offers various products and services such as
saving accounts, loans, deposits, ATM facility, RTGS/NEFT facility, internet
banking, demat services, etc.
NRI Banking- Besides various personal banking products, it also offers remittance
and consultancy services to its NRI clients.

Corporates- To corporates it offers various products and services such as

corporate accounts, term finance, working capital loans, RTGS, NEFT and CMS,

Awards

Karur Vysya Bank was ranked as the Most Efficient Small Bank by Business Today
– KPMG.

The bank was recognised as No 1 Old Private Sector Bank by Financial Express –
Ernst & Young.

The bank was awarded the CFBP Jamnalal Bajaj Fair Business Practices Award in
the financial sector by the Council for Fair Business Practices, Mumbai.

Initiatives

The bank will soon launch online utility payment facility through Billdesk.com for
effecting payments for electricity, telephone and water tax bills and for insurance
and mutual fund payments.

The bank has a tie up with enStage.com to launch a prepaid travel card.

KVB will also introduce facilities like institutional fees payment and inter
account/card funds transfer.
Bandhan bank

IPO March 28 Rs.469.05

About Company:
Bandhan Bank Ltd. is an Indian banking and financial services company headquartered in Kolkata, West
Bengal.[2] Bandhan, which started as a micro-finance company in 2001, received banking licence
by Reserve Bank of India in 2014.[3][3][4] Bandhan Bank became the 8th largest bank (27 March 2018) in
India by market capital (₹ 56920 Cr). As on December 31, 2017, it had 2,633 doorstep service centers
(DSCs) and 9.86 million micro loan customers. Whereas its general banking business had 887 bank
branches, 430 ATMs catering to 2.13 million customers as on December 31,2017

Equity dividend:

Announcement EX DATE AMOUNT INTERIM/FINAL

Date
27-APRIL-2018 12-JUL-2018 1 FINAL

Products:
Consumer banking
Loans
Microfinance
Private banking
Mortgage loans,
Management:

Name Designation
Chandra Shekhar Ghosh MD & CEO
Ghosh was born in a low income refugee family , He
completed his Master's in statistics from Dhaka
University in 1984. After completing his education he
joined BRAC an NGO (non government organisation)
in Bangladesh. Ghosh returned to India in 1997 and
joined his family business later worked with several
NGOs. Ghosh quit his last job at Village welfare
society in 2000. Ghosh started his first venture
named Bandhan Konnagar an NGO in November 2001
with a capital of INR 200000 ($3200) and three
employees at Kolkata, West Bengal.
H R KHAN Chairman
He has been the Deputy Governor of the
Reserve Bank of India in July 2016.HE
is the founder cum managing director
and chief executive officer.[6]

Q4 Result:

Shareholding Pattern:
%
Share
Holder's Name No of Shares Holding
Promoters 981,483,277 82.28

Financial
Institutions 90,885,819 7.62

Foreign
Institutions 62,548,849 5.24

NBFC and
Mutual Funds 37,840,613 3.17

General
Public 12,292,380 1.03

Others 7,754,006 0.65

Latest News:
 Reported strong Q1 FY19 earnings, with net profit increasing 47 percent
year-on-year (YoY) on the back of solid loan book growth.
 Gross bad loans as a percentage of total loans stood at 1.26 per cent at
end-June, compared with 1.25 per cent in the previous quarter and 0.93
per cent a year earlier

Profit Breakup:

INCOME 18-Mar 17-Mar

Interest / Discount on
3,823.60 3,121.42
Advances / Bills
490.02 428.05
Income from Investments

Interest on Balance with 141.61 79.03

RBI and Other Inter-Bank
funds
347.06 280.21
Others
4,802.30 3,908.71
Total Interest Earned
706.18 411.41
Other Income
5,508.48 4,320.12
Total Income

Strengths
Able management
They have an ability to grow which is reflected in their track record of growing from a small NGO to an
NBFC to further expanding into a bank and managing large scale operations. Till now, they are able to
manage their operations efficiently and are likely to continue to do so in the future. The founder
Chandra Shekhar Ghosh takes an active part in running the bank. As MD and CEO of Bandhan, he leads
from the front. According to the information provided in the red herring prospectus, he also holds
interest in the holding company which will keep his interests aligned to the bank.

Brand name
Before converting into a bank it was the largest microfinance company in India. It has a large base of
borrowers and is also a very trusted brand in West Bengal. It has transformed the lives of economically
backward section by providing microfinance loans to them in rural West Bengal. It is known for its
trustworthiness and ethics. Its expertise in the microfinance sector is its makes it a formidable player in
this segment.

CASA Ratio (Current Account to Savings Account)

A high CASA ratio denotes a large reserve of cheap funds. Its CASA ratio has also shown considerable
improvement from 21.5 per cent as on March 31,2016 to 33.2 per cent as of December 31, 2017.

Well capitalized
Against required capital adequacy ratio(CAR) of 12 per cent its CAR stands at 24.85 per cent. It may fall
as the bank continues to expand its loan book.

Weaknesses

Small size and competition

There is immense competition in the banking space with most of the market ruled by large banks. These
banks have an advantage of lower cost of borrowings whereas new banks like Bandhan have to raise
capital from the market at higher cost. Higher cost of borrowings makes it very difficult for new banks to
survive and leave them vulnerable to external shocks and financial crises.

New bank
They have very limited exposure to full fledged banking operations which is absolutely different from
their core microfinance business. They may or may not be able to grow as quickly as in the past due to
the completely different nature of the business.

Concentration
Their operations are highly concentrated towards East and Northeast India with most of its branches,
DSCs, advances and deposits in the states of West Bengal, Assam and Bihar. Any major event in these
states can significantly impact their operations. West Bengal, Assam and Bihar collectively accounts for
56.3 per cent of its branches and DSCs as on December 31, 2017.

Priority sector lending

Till date most of its loan book is tilted towards priority sector lending (PSL). There are certain sectors
identified by RBI which face difficulty in raising credit due to their weak repayment ability. These sectors
are identified strategically to promote growth and social welfare in the country. As on December 31,
2017, about 96.5 per cent of its gross advances were in priority sector lending. As a safety measure, it
sells most of it priority sector loans as PSL certificates thereby cutting down its net exposure towards
priority sector to 31.6 per cent of total advances.

Valuation
It appears to be high on valuations with its price to book at 4.9 times, based on fully diluted book value
on December 31, 2017 compared to industry median of 1.7 times.

Based on PE it also looks very expensive at 34.8 times based on annualized earnings per share as on
December 31,2017 in comparison to 21.5 times of industry.

Concerns
recently, in February 2018 a customer of the bank has filed a complaint against CEO and MD (Chandra
Shekhar Ghosh) for breach of trust and cheating related to withdrawal of money. Arrest warrants were
issued against him in relation to this case. The matter is currently sub judice.

Risks & Concerns

Here are some risks and concerns highlighted by several brokerage houses:

> High competition in the core banking segment;

> Limited historical track record and relatively very less experience in banking business;

> A substantial portion of operations are located in East and Northeast India (81 percent of total
advances), making it vulnerable to risks associated with having geo-graphically concentrated operations;

> Bank's business is vulnerable to interest rate and investment related risks;

> Any unfavorable change in Government policies can largely affect its scale of operations;

> Microcredit lending has its own unique risks and, as a result, Bandhan may experience increased levels
of non-performing loans and related provisions and write-offs that negatively impact the results of
operations;

> The micro finance loan portfolio is not supported by any collateral that could help ensure repayment
of the loan, and in the event of non-payment by a borrower of one of these loans, Bandhan may be
unable to collect the unpaid balance;

> The bank believes that any damage to its brand 'Bandhan' or its reputation could substantially impair
its ability to maintain or grow its business, or have a material adverse effect on its overall business,
financial condition, results of operations and cash flows.
Investors
The major investors in the parent company of Bandhan Bank are International Finance
Corporation (IFC), Singapore Sovereign Wealth Fund GIC,[8] Financial Inclusion Trust, North Eastern
Financial Inclusion Trust, Bandhan Employees Welfare Trust and Small Industries Development Bank of
India(SIDBI)

COMPETITORS COMPARISON STOCK PERFORMANCE

BANDHAN BANK Vs PEERS FINANCIAL PERFORMACE

BANDHAN BANK LTD FINANCIAL COMPARISON WITH PEERS

INDIAN bank

IPO

About Company: Indian Bank[2][3][4] is an Indian state-owned financial services company established in 1907
and headquartered in Chennai, India. Total business of the bank has touched Rs.3.64 lakh Crores as on
31.03.2018.Bank's Information Systems & Security processes certified with ISO27001:2013 standard and is among
very few Banks certified worldwide. It has overseas branches in Colombo and Singapore including a Foreign
Currency Banking Unit at Colombo and Jaffna. It has 227 Overseas Correspondent banks in 75 countries.The bank
has two subsidiary companies-"Indbank Merchant Banking Services Ltd" and "IndBank Housing Ltd.".Since 1969
the Government of India has owned the bank.
Equity dividend:

Announcement EX DATE AMOUNT INTERIM/FINAL

Date

Products:
Consumer banking
Loans
Microfinance
Private banking
Mortgage loans,
Management:

Name Designation
kishore karat  He worked as a CEO/Managing Director of
Idbi Bank Ltd from 8/2015-3/2017, aas
executive Director of Union Bank of India,
3/2015-8/2015,General Manager of Bank of
Baroda, till 3/2015

Shri A S Rajeev Executive Director of Indian Bank

Prior to joining Indian Bank he was General
Manager and CFO of Vijaya Bank. He is a Fellow
Member of the Institute of Chartered Accountants
of India and holds Diploma in Information System
Audit from ICAI, Masters Degree in Business
Administration and CAIIB.
He has handled Finance, Accounts and Taxation,
Planning and Development, International Banking /
Treasury, Vigilance and Credit Monitoring and
Supervision of the Bank. He also headed Chennai
and Bangalore North Regions of Vijaya Bank


Q4 Result:

Shareholding Pattern:
%
Share
Holder's Name No of Shares Holding
Promoters 981,483,277 82.28

Financial
Institutions 90,885,819 7.62

Foreign
Institutions 62,548,849 5.24

NBFC and
Mutual Funds 37,840,613 3.17

General
Public 12,292,380 1.03
Others 7,754,006 0.65

Latest News:
 Reported strong Q1 FY19 earnings, with net profit increasing 47 percent
year-on-year (YoY) on the back of solid loan book growth.
 Gross bad loans as a percentage of total loans stood at 1.26 per cent at
end-June, compared with 1.25 per cent in the previous quarter and 0.93
per cent a year earlier

Profit Breakup:

INCOME 18-Mar 17-Mar

Interest / Discount on
3,823.60 3,121.42
Advances / Bills
490.02 428.05
Income from Investments

Interest on Balance with 141.61 79.03

RBI and Other Inter-Bank
funds
347.06 280.21
Others
4,802.30 3,908.71
Total Interest Earned
706.18 411.41
Other Income
5,508.48 4,320.12
Total Income

Strengths
Able management
They have an ability to grow which is reflected in their track record of growing from a small NGO to an
NBFC to further expanding into a bank and managing large scale operations. Till now, they are able to
manage their operations efficiently and are likely to continue to do so in the future. The founder
Chandra Shekhar Ghosh takes an active part in running the bank. As MD and CEO of Bandhan, he leads
from the front. According to the information provided in the red herring prospectus, he also holds
interest in the holding company which will keep his interests aligned to the bank.

Brand name
Before converting into a bank it was the largest microfinance company in India. It has a large base of
borrowers and is also a very trusted brand in West Bengal. It has transformed the lives of economically
backward section by providing microfinance loans to them in rural West Bengal. It is known for its
trustworthiness and ethics. Its expertise in the microfinance sector is its makes it a formidable player in
this segment.

CASA Ratio (Current Account to Savings Account)

A high CASA ratio denotes a large reserve of cheap funds. Its CASA ratio has also shown considerable
improvement from 21.5 per cent as on March 31,2016 to 33.2 per cent as of December 31, 2017.

Well capitalized
Against required capital adequacy ratio(CAR) of 12 per cent its CAR stands at 24.85 per cent. It may fall
as the bank continues to expand its loan book.

Weaknesses

Small size and competition

There is immense competition in the banking space with most of the market ruled by large banks. These
banks have an advantage of lower cost of borrowings whereas new banks like Bandhan have to raise
capital from the market at higher cost. Higher cost of borrowings makes it very difficult for new banks to
survive and leave them vulnerable to external shocks and financial crises.

New bank
They have very limited exposure to full fledged banking operations which is absolutely different from
their core microfinance business. They may or may not be able to grow as quickly as in the past due to
the completely different nature of the business.

Concentration
Their operations are highly concentrated towards East and Northeast India with most of its branches,
DSCs, advances and deposits in the states of West Bengal, Assam and Bihar. Any major event in these
states can significantly impact their operations. West Bengal, Assam and Bihar collectively accounts for
56.3 per cent of its branches and DSCs as on December 31, 2017.

Priority sector lending

Till date most of its loan book is tilted towards priority sector lending (PSL). There are certain sectors
identified by RBI which face difficulty in raising credit due to their weak repayment ability. These sectors
are identified strategically to promote growth and social welfare in the country. As on December 31,
2017, about 96.5 per cent of its gross advances were in priority sector lending. As a safety measure, it
sells most of it priority sector loans as PSL certificates thereby cutting down its net exposure towards
priority sector to 31.6 per cent of total advances.

Valuation
It appears to be high on valuations with its price to book at 4.9 times, based on fully diluted book value
on December 31, 2017 compared to industry median of 1.7 times.

Based on PE it also looks very expensive at 34.8 times based on annualized earnings per share as on
December 31,2017 in comparison to 21.5 times of industry.

Concerns
recently, in February 2018 a customer of the bank has filed a complaint against CEO and MD (Chandra
Shekhar Ghosh) for breach of trust and cheating related to withdrawal of money. Arrest warrants were
issued against him in relation to this case. The matter is currently sub judice.

Risks & Concerns

Here are some risks and concerns highlighted by several brokerage houses:

> High competition in the core banking segment;

> Limited historical track record and relatively very less experience in banking business;

> A substantial portion of operations are located in East and Northeast India (81 percent of total
advances), making it vulnerable to risks associated with having geo-graphically concentrated operations;

> Bank's business is vulnerable to interest rate and investment related risks;

> Any unfavorable change in Government policies can largely affect its scale of operations;

> Microcredit lending has its own unique risks and, as a result, Bandhan may experience increased levels
of non-performing loans and related provisions and write-offs that negatively impact the results of
operations;

> The micro finance loan portfolio is not supported by any collateral that could help ensure repayment
of the loan, and in the event of non-payment by a borrower of one of these loans, Bandhan may be
unable to collect the unpaid balance;

> The bank believes that any damage to its brand 'Bandhan' or its reputation could substantially impair
its ability to maintain or grow its business, or have a material adverse effect on its overall business,
financial condition, results of operations and cash flows.
Investors
The major investors in the parent company of Bandhan Bank are International Finance
Corporation (IFC), Singapore Sovereign Wealth Fund GIC,[8] Financial Inclusion Trust, North Eastern
Financial Inclusion Trust, Bandhan Employees Welfare Trust and Small Industries Development Bank of
India(SIDBI)

COMPETITORS COMPARISON STOCK PERFORMANCE

BANDHAN BANK Vs PEERS FINANCIAL PERFORMACE

BANDHAN BANK LTD FINANCIAL COMPARISON WITH PEERS