The Karnataka Bank Limited

5%

nsformational journey of the Bank 3 …Guided by an Independent Board With no shareholder holding >5% share capital in the Bank P Pradeep Kumar Keshav Krishnarao Desai Balakrishna Alse S Part Time

INR 800

re Key Milestones Capital for Growth 1500 Cr. Tier-1 Capital Approved by the Board Tranche 1 – INR 800 Cr. ▪ Allotment completed post receipt of shareholder approval ▪ Backed by marquee institutional i

INR 700

eted post receipt of shareholder approval ▪ Backed by marquee institutional investors Tranche 2 – INR 700 Cr. ▪ Raising of INR 700 Cr. funds by issue of equity shares by way of QIP / Preferential Issue /

rs 1

sis on our Strength Areas Our Legacy Building on Our Legacy 100 Year Legacy 13 Mn Happy customers 1 in 401 Indians bank with us ▪ Tradition with Innovation ▪ Outbound Sales Culture ▪ Startup-like Ag

36.6%

s ▪ Tradition with Innovation ▪ Outbound Sales Culture ▪ Startup-like Agility MSME & Rural Focus 36.6%2 46.2% Share of MSME & Agri-Loans Branches in Rural & Semi-Urban Areas ▪ Capitalise on commun

46.2%

dition with Innovation ▪ Outbound Sales Culture ▪ Startup-like Agility MSME & Rural Focus 36.6%2 46.2% Share of MSME & Agri-Loans Branches in Rural & Semi-Urban Areas ▪ Capitalise on community netw

45.5%

ral to be key growth drivers Retail Focus Increase in % of Retail Advances from FY20 to Q2FY23 45.5% 48.9%2 ▪ Enhanced RoA and RoE ▪ Focus on Retail - Home, Gold Loans Karnataka Stronghold 4.2%3

48.9%

be key growth drivers Retail Focus Increase in % of Retail Advances from FY20 to Q2FY23 45.5% 48.9%2 ▪ Enhanced RoA and RoE ▪ Focus on Retail - Home, Gold Loans Karnataka Stronghold 4.2%3 Market

4.2%

45.5% 48.9%2 ▪ Enhanced RoA and RoE ▪ Focus on Retail - Home, Gold Loans Karnataka Stronghold 4.2%3 Market share in Karnataka 22 States Pan-India presence ▪ Wider Geographical Presence ▪ Digi

47.0%

on to Drive Profitability C. Targeted Performance Improvement to Boost Returns Cost to Income %: 47.0% - 49.0% Manage Operating Expenses NNPA: 1.0% - 1.5% Enhance Asset Quality CASA %: 33.0% - 35.0% S

49.0%

ive Profitability C. Targeted Performance Improvement to Boost Returns Cost to Income %: 47.0% - 49.0% Manage Operating Expenses NNPA: 1.0% - 1.5% Enhance Asset Quality CASA %: 33.0% - 35.0% Stable So

1.0%

ance Improvement to Boost Returns Cost to Income %: 47.0% - 49.0% Manage Operating Expenses NNPA: 1.0% - 1.5% Enhance Asset Quality CASA %: 33.0% - 35.0% Stable Source of Funding ROA %: 1.2% - 1.4% Ef

NNPA

1

Cost of Funds

1

NNPA

1.0% - 1.5% Enhance Asset Quality CASA %: 33.0% - 35.0% Stable Source of Funding ROA %: 1.2% - 1.4% Effective Capital Allocation NIM %: 3.5% - 3.7% Consistent Interest Margins

Cost of Funds

4.7% - 5.1% Optimize Funding Costs Consolidation of financial position to build stakeholder value and enhanced return on equity 17 Digitalisation Propelling Robust Book Growth Foundation in place to Drive Next Leg of Digital Innovation D. State-of-the-art ‘Technology & Digital Hub’ at Bengaluru ▪ 40,000 sq. ft. super built-up area ▪ 370+ work-stations Text ▪ Consolidate all technology and digital operations under One Roof Text KB L ▪ Partnerships with Fintechs ▪ Co-lending Tech Integration 18 ▪ ‘Project KBL-VIKAAS’ to drive transformation initiatives advised by Boston Consulting Group ▪ Digital Centre of Excellence (DCoE) Text ▪ Analytical Centre of Excellence (ACoE) ▪ Pioneer in “Finacle CBS” amongst 1st Generation Private Banks ▪ ISO 27001:2013 Certified Information Security Management System Digitalisation Propelling Robust Book Growth D. Moving Towards a Digital-First Bank Embedding data & analytics in business processes to drive data-driven decision making… Predictive, business/st