Canara Bank · NSE:CANBK
Canara Bank — Q2 FY2023-24 Earnings Presentation
48 slides from Canara Bank's earnings presentation, Oct 26, 2023
Slide 1: Exchange filing cover letter
Ref:: SD:361/362/11/12::2023-24 26.10.2023 The Vice President The Vice President BSE Ltd. Listing Department Phiroze Jeejeebhoy Towers National Stock Exchange of India Ltd Dalal Street EXCHANGE PLAZA MUMBAI - 400 001 Bandra-Kurla Complex, Bandra [E] MUMBAI - 400 051 Scrip Code: 532483 Scrip Code: CA
Slide 2: Financial Results: Q2 (FY 2023-24)
Inspired by Customers driven by Digital Financial Results: Q2 (FY 2023-24) Page 1
Slide 3: Performance Highlights
Performance Highlights ₹ in Crore Operating Profit Net Profit Global Business Gross Advances 10.30% 42.81% 10.12% 12.11% y-o-y y-o-y y-o-y y-o-y 7,616 3,606 21,56,181 9,23,966 Net Interest PCR RAM Credit Income 88.73% 13.63% 19.76% y-o-y y-o-y y-o-y 337 bps 5,16,949 8,903 Gross NPA Net NPA 4.76% 1.4
Slide 4: Key Highlights
Key Highlights ₹ in Crore 10.56% 12.32% 14.68% 9.29% y-o-y y-o-y y-o-y y-o-y Retail Credit Housing Loan Education Loan Vehicle Loan 1,48,209 88,564 15,923 16,112 514 bps 44 bps 30 bps y-o-y y-o-y y-o-y Return on Equity CET-1 Return on Assets 22.51% 11.58% 1.01% 53 bps 19 bps y-o-y y-o-y Cost to Inco
Slide 5: Contents
Contents 06-13 Business Performance 15-22 Financial Performance 24-25 Investment 27-32 Asset Quality 34-35 Capital & Share Holding 37-38 Environmental, Social & Governance 40-43 Distribution Network & Digital Footprint 44-44 Subsidiaries & Associates 45-45 Goals for March 2024 vs Actuals for Septemb
Slide 6: Business Performance
Inspired by Customers driven by Digital Business Performance Page 5
Slide 7: Business Performance
Business Performance ₹ in Crore Growth (%) Parameters Sep’22 Mar'23 Jun'23 Sep’23 Q-o-Q Y-o-Y Global Gross Business 1958111 2042001 2080141 2156181 3.66 10.12 Domestic Gross Business 1836568 1912508 1947569 2021650 3.80 10.08 Overseas Gross Business 121543 129493 132572 134531 1.48 10.69 Global Gros
Slide 8: Domestic Deposit Mix
Domestic Deposit Mix ₹ in Crore Growth (%) Parameters Sep’22 Mar'23 Jun'23 Sep’23 Q-o-Q Y-o-Y Saving Deposits 311295 318818 320628 323021 0.75 3.77 CASA Deposits 359460 366472 364464 367614 0.86 2.27 Term Deposit 697059 728274 740042 775780 4.83 11.29 Retail Term Deposit 446915 461737 466162 480396
Slide 9: Advances Mix
Advances Mix ₹ in Crore RAM: 56% Sep’23 Retail 16% Growth (%) Parameters Sep'22 Jun'23 Sep’23 Corporate & Others Agriculture & Allied Q-o-Q Y-o-Y 44% 26% MSME RAM Credit 454922 491475 516949 5.18 13.63 14% Retail 134051 142297 148209 4.15 10.56 Agriculture & Allied 196576 222757 236953 6.37 20.54 RA
Slide 10: Exceeded the Mandated Targets under Priority Sector
Exceeded the Mandated Targets under Priority Sector Exceeded the mandated norms in respect of: Total Priority (45.51% to ANBC against 40% norm) Agriculture (21.39% to ANBC against 18% norm) Mandated Norms under Small and Marginal Farmers (15.13% to ANBC against 10.00% norm) Priority Sector N
Slide 11: RAM & Retail Credit
RAM & Retail Credit RAM ₹ in Crore 516949 13.63% 454922 Sep'22 Sep'23 Retail Loans Housing Loans 148209 88564 12.32% 10.56% 78852 134051 Sep'22 Sep'23 Sep'22 Sep'23 Page 10
Slide 12: Industry Credit
Industry Credit ₹ in Crore Growth (in %) Sector/Scheme Sep'22 Jun'23 Sep’23 Q-o-Q Y-o-Y Infrastructure 108081 115220 115304 0.07 6.68 NBFC 130653 144804 143154 (1.14) 9.57 Textile 18478 17823 18454 3.54 (0.13) Iron & Steel 16307 15564 15653 0.57 (4.01) Commercial Real Estate 16499 19970 19497 (2.37)
Slide 13: Rating Profile
Rating Profile ₹ in Crore External Rating - Wise Distribution of Domestic Advances above ₹ 25 crore (% of Total rated loan book above ₹ 25 crore) Sep'22 Jun'23 Sep'23 External Rating Outstanding % Share Outstanding % Share Outstanding % Share A and above 203149 77 220189 81 220726 80 BBB 31985 12 27
Slide 14: Rating Profile
Rating Profile ₹ in Crore Rating Profile of Standard NBFC Domestic Exposure Sep'22 Jun'23 Sep'23 External Rating Exposure % Share Exposure % Share Exposure % Share A and above 125352 99 135871 99 138477 99 BBB 576 366 198 1 1 1 BB and below 129 26 12 Total 126057 100 136263 100 138687 100 Page 13
Slide 15: Financial Performance
Inspired by Customers driven by Digital Financial Performance Page 14
Slide 16: Total Income
Total Income ₹ in Crore Quarterly Parameters Growth Sep'22 Mar'23 Jun'23 Sep'23 Q-o-Q(%) Y-o-Y(%) Interest Income 20107 23910 25004 26838 7.33 33.48 Interest on Advances 14660 17538 18064 19367 7.21 32.11 Interest on Investments 4841 5263 5349 5647 5.57 16.65 Other Interest Income 606 1109 1591 1824
Slide 17: Non-Interest Income
Non-Interest Income ₹ in Crore Quarterly Parameters Growth Sep'22 Mar'23 Jun'23 Sep'23 Q-o-Q(%) Y-o-Y(%) Fee Based Income 1726 1905 1636 2070 26.53 19.93 Commission Exchange & Brokerage 308 387 263 329 25.10 6.82 Service Charges 899 926 812 900 10.84 0.11 Miscellaneous 519 592 561 841 49.91 62.04 Tr
Slide 18: Total Expenses
Total Expenses ₹ in Crore Quarterly Parameters Growth Sep'22 Mar'23 Jun'23 Sep'23 Q-o-Q(%) Y-o-Y(%) Interest Expenses 12673 15293 16338 17935 9.77 41.52 Interest Paid on Deposits 11568 14097 15043 16433 9.24 42.06 Other Interests 1105 1196 1295 1502 15.98 35.93 Operating Expenses 5354 6141 5881 5922
Slide 19: Financials at a Glance
Financials at a Glance ₹ in Crore Quarterly Parameters Growth Sep'22 Mar'23 Jun'23 Sep'23 Q-o-Q(%) Y-o-Y(%) Net Interest Income 7434 8617 8666 8903 2.73 19.76 Total Interest Income 20107 23910 25004 26838 7.33 33.48 Total Interest Expenses 12673 15293 16338 17935 9.77 41.52 Total Income 24932 28686
Slide 20: Continuous & Consistent Growth
Continuous & Consistent Growth 88.73 7604 7616 88.04 87.31 7252 86.32 6952 85.36 6905 3535 3606 3175 Sep'22 Dec'22 Mar'23 Jun'23 Sep'23 Sep'22 Dec'22 Mar'23 Jun'23 Sep'23 2882 2525 Operating Profit (₹ in Cr) PCR (%) 6.37 2.19 5.89 5.35 1.96 5.15 1.73 4.76 1.57 Sep'22 Dec'22 Mar'23 Jun'23 Sep'23 1.41
Slide 21: Provisions
Provisions ₹ in Crore Quarterly Parameters Growth Sep'22 Mar'23 Jun'23 Sep'23 Q-o-Q(%) Y-o-Y(%) Total Provision 4380 4077 4069 4010 (1.45) (8.45) NPAs 2745 2399 2417 2202 (8.90) (19.78) Standard Asset 119 (71) 3 81 -- (31.93) Non Performing Investment 526 47 332 103 (68.98) (80.42) Income Tax 743 98
Slide 22: Key Ratios
Key Ratios (%) Sep'22 Mar’23 Jun’23 Sep'23 Ratios Quarterly Cumulative Quarterly Cumulative Quarterly Cumulative Quarterly Cumulative Return on Assets 0.79 0.71 0.95 0.81 0.99 0.99 1.02 1.01 Return on Net-worth 18.86 17.37 21.68 19.49 22.95 22.95 22.01 22.51 Cost to Income 43.68 44.21 45.85 44.79 43
Slide 23: Key Ratios
Key Ratios NIM(%) Cost Of Deposits (%) Yield on 3.05 5.22 5.35 Advances(%) 3.02 4.38 2.95 4.09 8.56 8.43 7.70 2.83 7.24 Sep'22 Mar'23 Jun'23 Sep'23 Sep'22 Mar'23 Jun'23 Sep'23 Sep'22 Mar'23 Jun'23 Sep'23 Cost Of Funds (%) Yield on Funds(%) Yield on Investments(%) 7.28 7.34 6.85 6.88 4.76 4.86 6.42 4
Slide 24: Investments
Inspired by Customers driven by Digital INVESTMENTS Page 23
Slide 25: Investment Portfolio
Investment Portfolio ₹ in Crore Sl. No Parameters Sep'22 Jun'23 Sep'23 1 Domestic Investments 311650 334955 346612 (a) SLR 272416 298393 310622 (b) Non SLR 39234 36562 35990 SLR as % to Dom. Investments 87.41 89.08 89.62 (i) Held To Maturity (HTM) 257226 275423 283405 (ii) Available For Sale (AFS) 5
Slide 26: Non SLR Portfolio
Non SLR Portfolio ₹ in Crore % Share Y-o-Y Variation Parameters Sep'22 Jun'23 Sep'23 (Sep'23) Amount % PSU Bonds 3928 3503 3372 9.37 (556) (14.15) Corporate and Other Bonds 7439 5793 5427 15.08 (2012) (27.05) Special Govt. Sec excl. Recap Bonds 2407 1793 1741 4.84 (666) (27.67) CG Recap. Bond 18238
Slide 27: Asset Quality
Inspired by Customers driven by Digital Asset Quality Page 26
Slide 28: Asset Quality Ratios
Asset Quality Ratios ₹ in Crore Parameters Sep'22 Mar'23 Jun'23 Sep'23 Gross NPA 52485 46160 45727 43956 Gross NPA (%) 6.37 5.35 5.15 4.76 Net NPA 17286 14349 13461 12554 Net NPA (%) 2.19 1.73 1.57 1.41 Provision Coverage Ratio (%) 85.36 87.31 88.04 88.73 Credit Cost (%) 1.31 1.17 1.10 1.02 Slippage
Slide 29: Movement of NPA
Movement of NPA ₹ in Crore Parameters Sep'22 Mar'23 Jun'23 Sep'23 NPA as at the beginning of the period 54734 50143 46160 45727 -Cash Recovery towards Book Liability(i) 1876 1904 1127 1198 -Up-gradation(ii) 1523 735 800 671 -Write Off(iii) 2798 4317 1934 2889 Total Reduction(i+ii+iii) 6197 6956 3861
Slide 30: NPA Classification: Sector Wise
NPA Classification: Sector Wise ₹ in Crore Advance O/s Parameters Sep'22 Mar'23 Jun'23 Sep'23 GNPA (%) (Sep'23) Domestic Gross NPA 47326 41387 41427 40235 878256 4.58 Global Gross NPA 52485 46160 45727 43956 923966 4.76 Retail 1843 2020 2082 2000 148209 1.35 Housing Loans 606 568 642 598 88564 0.68
Slide 31: NPA Classification: Industry wise
NPA Classification : Industry wise ₹ in Crore Sector/Scheme Sep'22 Mar'23 Jun'23 Sep'23 GNPA (%) Infrastructure 7339 6079 5466 5473 4.75 Iron & Steel 858 739 721 658 4.20 Textile 1361 1284 1299 1232 6.68 Food Processing 1303 1119 1124 1198 10.09 Engineering 972 955 969 912 6.94 Page 30
Slide 32: Special Mention Accounts (SMA)
Special Mention Accounts (SMA) ₹ in Crore SMA Position of the Bank (₹ 5 Cr and above) Sep’22 Jun'23 Sep’23 No of % to Gross No of % to Gross No of % to Gross Parameters Outstanding Outstanding Outstanding Accounts Advances Accounts Advances Accounts Advances SMA 2 254 2911 0.35 237 3367 0.38 221 441
Slide 33: Accounts referred to NCLT
Accounts referred to NCLT ₹ in Crore Sep'22 Sep'23 Parameters No of Book Provision No of Book Provision Provision Provision Accounts Liability Coverage Accounts Liability Coverage 1st List - RBI 6 2345 2345 100 4 1102 1102 100 2nd List – RBI 12 5440 5407 99 11 5290 5290 100 Total RBI 1 & 2 18 7785 7
Slide 34: Capital & Shareholding
Inspired by Customers driven by Digital Capital & Shareholding Page 33
Slide 35: Capital Funds (Basel III)
Capital Funds (Basel III) ₹ in Crore Parameters Sep'22 Jun'23 Sep'23 CRAR % Tier I 73725 80982 83679 16.51 16.24 16.20 Common Equity 61289 68561 71262 Additional Tier I 12436 12421 12417 3.11 2.66 2.60 Tier II 17073 15878 15971 2.26 2.08 2.02 Total (Tier I+II) 90798 96860 99650 Risk-weighted Assets
Slide 36: Shareholding Pattern as on September 30th, 2023
Shareholding Pattern as on September 30th,2023 Resident Individuals, 9.78 Staff, 0.67 Others, 2.56 FIIs/FPIs, 10.19 Mutual Funds, 4.83 Insurance Companies, 9.04 Government of India, 62.93 Page 35
Slide 37: Environmental, Social & Governance
Inspired by Customers driven by Digital Environmental, Social & Governance Page 36
Slide 38: Environmental, Social & Governance (ESG) Practices
Environmental, Social & Governance (ESG) Practices Environmental Social Governance As part of Green initiatives, Bank has Bank is impacting the Society by engaging in Towards the Bank’s journey towards undertaken: helping and uplifting the underserved Sustainability, Bank has in place: communi
Slide 39: Bank's initiatives towards Climate Risk Management
Bank’s initiatives towards Climate Risk Management Climate Risk Governance • The Board approved internal ESG policy of the Bank encompasses aspects of Climate Risk (including Physical Risks and Transition Risks), wherein well defined roles & responsibilities of the Board, RMCB and other Member Teams
Slide 40: Distribution Network
Distribution Network Inspired by Customers driven by Digital Page 39
Slide 41: Distribution Network
Distribution Network Parameters Sep'22 Jun'23 Sep'23 General Branches(a) 8898 8865 8757 Specialised Branches(b) 824 788 761 Total Domestic Branches(a+b) 9722 9653 9518 Overseas Branches 3 3 4 BC Points 8906 13427 13427 Total Banking Outlets 18631 23083 22949 ATM 10759 10683 10553 Recycler 1399 1431
Slide 42: Digital Footprint
Inspired by Customers driven by Digital Digital Footprint Page 41
Slide 43: Digital Footprint
Digital Footprint 858.56 5.42 2.62 302.81 598.95 188.65 4.85 2.28 SEP'22 SEP'23 SEP'22 SEP'23 SEP'22 SEP'23 SEP'22 SEP'23 MeitY Digital Transactions( Nos in Internet Banking Registrations (Nos in E-Transactions (Nos in Crores) Debit Card Outstanding (Nos in Crore) Crores) Crores) 0.66 27.17 2.48 0.5
Slide 44: New Digital Initiatives
New Digital Initiatives Apply Facility to apply for a Safe Deposit Locker through ai1 mobile banking application. User for has to visit the applied Branch within 15 days and to execute the locker agreement and Locker also to collect the allotted locker keys. User can purchase e-Gift Cards from wide
Slide 45: Subsidiaries & Associates
Subsidiaries & Associates ₹ in Crore Total Profit Our share Name of the Entity Holding(%) Sep’23 SUBSIDIARIES Canara Robeco Asset Management Company Ltd. 51 48.32 24.64 Canara HSBC Life Insurance Company Ltd. 51 40.57 20.69 Canbank Factors Ltd. 70 3.60 2.52 Canbank Computer Services Ltd. 69.14 7.86
Slide 46: Goals for March 2024 vs Actuals for September 2023
Goals for March 2024 vs Actuals for September 2023 Guidance Parameters Actuals as on 30.09.2023 (31.03.2024) Business Growth (Global) 10.00% 10.12% Advances Growth (Global) 10.50% 12.11% Deposits Growth (Global) 8.50% 8.66% CASA (Domestic CASA to Domestic Deposit) 35.00% 32.15% NIM (Global)(Annualiz
Slide 47: Disclaimer
Disclaimer This presentation has been prepared solely for information purposes only. It has no regard to any financial situations or informational needs of any particular reason. The forward looking statements involve a number of risk, uncertainties and other factors that could cause actual results
Slide 48: Thank You
Together We Can Thank You We express our heartfelt gratitude to all our stakeholders for their support & trust and solicit their continued patronage to make our beloved Bank grow exponentially in the coming years. Page 47