Canara Bank · NSE:CANBK
Canara Bank — Q2 FY2024-25 Earnings Presentation
47 slides from Canara Bank's earnings presentation, Oct 29, 2024
Slide 1: Exchange filing cover letter
Ref:: SD:417/418/11/12::2024-25 29.10.2024 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 2024-25)
Driving Customer Delight & Growth Digitally e₹ Financial Results: Q2 (FY 2024-25) Page 1
Slide 3: Performance Highlights
Performance Highlights ₹ in Crore Global Business Global Deposit Global Advances Net Profit 9.42% 9.34% 9.53 % 11.31 % y-o-y y-o-y y-o-y y-o-y 23,59,344 13,47,347 10,11,997 4014 CRAR PCR Gross NPA 16.57 % 90.89% 3.73 % y-o-y y-o-y y-o-y decline 37 bps 216 bps 103 bps Net NPA 0.99 % y-o-y decline 42
Slide 4: Key Highlights
Key Highlights ₹ in Crore 11.54% 31.27% 12.29% 15.49% y-o-y y-o-y y-o-y y-o-y RAM Credit Retail Credit Housing Loan Vehicle Loan 5,76,589 1,94,556 99,452 18,607 10.57% 17.68% 32 bps y-o-y y-o-y y-o-y EPS Fee Based Income Slippage Ratio 17.41 2,436 1.00% Page 3
Slide 5: Contents
Contents 06-13 Business Performance 15-22 Financial Performance 24-25 Investments 27-32 Asset Quality 34-35 Capital & Shareholding 37-37 Environmental, Social & Governance 39-42 Distribution Network & Digital Footprint 43-43 Subsidiaries & Associates 44-44 Guidance for March 2025 Vs Actuals for Sept
Slide 6: Business Performance
Driving Customer Delight & Growth Digitally Business Performance Page 5
Slide 7: Business Performance
Business Performance ₹ in Crore Growth (%) Parameters Sep’23 Mar’24 Jun’24 Sep’24 Q-o-Q Y-o-Y Global Gross Business 2156181 2272968 2310350 2359344 2.12 9.42 Domestic Gross Business 2021650 2123133 2151518 2192862 1.92 8.47 Overseas Gross Business 134531 149835 158832 166482 4.82 23.75 Global Gross
Slide 8: Domestic Deposit Mix
Domestic Deposit Mix ₹ in Crore Growth (%) Parameters Sep’23 Mar’24 Jun’24 Sep’24 Q-o-Q Y-o-Y Saving Deposits 323021 328378 332248 340705 2.55 5.47 CASA Deposits 367614 392327 381448 387327 1.54 5.36 Term Deposit 775780 822624 849736 851386 0.19 9.75 Retail Term Deposit 480396 501403 514572 513372 (
Slide 9: Advances Mix
Advances Mix ₹ in Crore RAM: 57% Sep’24 Growth (%) Parameters Sep’23 Jun’24 Sep’24 Retail 19% Q-o-Q Y-o-Y Corporate & Others RAM Credit 516949 551750 576589 4.50 11.54 43% Agriculture & Allied MSME 24% Retail 148209 175794 194556 10.67 31.27 14% Agriculture & Allied 236953 240894 242930 0.85 2.52 MS
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 (45.11% to ANBC against 40% norm) Agriculture (21.90% to ANBC against 18% norm) Mandated Norms under Small and Marginal Farmers (15.29% to ANBC against 10.00% norm) Priority Sector N
Slide 11: RAM & Retail Credit
RAM & Retail Credit RAM ₹ in Crore 576589 11.54% 516949 Sep'23 Sep'24 Retail Loans Housing Loans 194556 99452 31.27% 12.29% 88564 148209 Sep'23 Sep'24 Sep'23 Sep'24 Page 10
Slide 12: Industry Credit
Industry Credit ₹ in Crore Growth (%) Sector/Scheme Sep'23 Jun'24 Sep'24 Q-o-Q Y-o-Y Infrastructure 115304 132942 128931 (3.02) 11.82 NBFC 143154 118529 127976 7.97 (10.60) Textile 18454 18863 19074 1.12 3.36 Iron & Steel 15653 18767 17569 (6.38) 12.24 Commercial Real Estate 19497 22890 24019 4.93 2
Slide 13: Rating Profile
Rating Profile External Rating - Wise Distribution of Domestic Advances above ₹ 25 crore ₹ in Crore (% of Total rated loan book above ₹ 25 crore) Sep'23 Jun'24 Sep'24 External Rating Outstanding % Share Outstanding % Share Outstanding % Share A and above 220726 80 211925 78 218715 78 BBB 29916 11 34
Slide 14: Rating Profile
Rating Profile ₹ in Crore Rating Profile of Standard NBFC Domestic Exposure Sep'23 Jun'24 Sep'24 External Rating Exposure % Share Exposure % Share Exposure % Share A and above 138477 99 136866 99 126036 99 BBB 198 74 72 1 1 1 BB and below 12 46 39 Total 138687 100 136986 100 126147 100 Page 13
Slide 15: Financial Performance
Driving Customer Delight & Growth Digitally Financial Performance Page 14
Slide 16: Total Income
Total Income ₹ in Crore Quarterly Parameters Growth (%) Sep'23 Mar’24 Jun'24 Sep'24 Q-o-Q Y-o-Y Interest Income 26838 28807 28701 29740 3.62 10.81 Interest on Advances 19367 20863 20778 21758 4.72 12.35 Interest on Investments 5647 5902 6078 6059 (0.31) 7.30 Other Interest Income 1824 2042 1845 1923
Slide 17: Non-Interest Income
Non-Interest Income ₹ in Crore Quarterly Parameters Growth (%) Sep'23 Mar’24 Jun'24 Sep'24 Q-o-Q Y-o-Y Fee Based Income 2070 1941 1910 2436 27.54 17.68 Commission Exchange & Brokerage 329 437 353 382 8.22 16.11 Service Charges 900 886 798 880 10.28 (2.22) Miscellaneous 841 618 759 1174 54.68 39.60 T
Slide 18: Total Expenses
Total Expenses ₹ in Crore Quarterly Parameters Growth (%) Sep'23 Mar’24 Jun'24 Sep'24 Q-o-Q Y-o-Y Interest Expenses 17935 19227 19535 20425 4.56 13.88 Interest on Deposits 16433 17714 18352 18652 1.63 13.50 Other Interests 1502 1513 1183 1773 49.87 18.04 Operating Expenses 5922 7410 6869 6642 (3.30)
Slide 19: Financials at a Glance
Financials at a Glance ₹ in Crore Quarterly Parameters Growth (%) Sep'23 Mar’24 Jun’24 Sep’24 Q-o-Q Y-o-Y Net Interest Income 8903 9580 9166 9315 1.63 4.63 Total Interest Income 26838 28807 28701 29740 3.62 10.81 Total Interest Expenses 17935 19227 19535 20425 4.56 13.88 Total Income 31473 34024 340
Slide 20: Continuous & Consistent Performance
Continuous & Consistent Performance 4014 3905 90.89 3757 3656 89.10 89.22 3606 89.01 88.73 Sep'23 Dec'23 Mar'24 Jun'24 Sep'24 Sep'23 Dec'23 Mar'24 Jun'24 Sep-24 Net Profit (₹ in Cr) PCR (%) 4.76 4.39 4.23 1.41 4.14 1.32 3.73 1.27 1.24 0.99 Sep'23 Dec'23 Mar'24 Jun'24 Sep'24 Sep'23 Dec'23 Mar'24 Jun'
Slide 21: Provisions
Provisions ₹ in Crore Quarterly Parameters Growth (%) Sep'23 Mar’24 Jun’24 Sep’24 Q-o-Q Y-o-Y Total Provision 4010 3630 3711 3640 (1.91) (9.23) NPAs 2202 2280 2171 2587 19.16 17.48 Standard Asset 81 44 21 134 538.10 65.43 Non Performing Investment 103 295 (125) (72) ---- ---- Income Tax 1402 1149 14
Slide 22: Key Ratios
Key Ratios (%) Sep’23 Mar’24 Jun’24 Sep’24 Ratios Quarterly Cumulative Quarterly Cumulative Quarterly Cumulative Quarterly Cumulative Return on Assets 1.02 1.01 1.03 1.01 1.05 1.05 1.05 1.05 Return on Net-worth 22.01 22.51 21.18 22.06 20.88 20.88 19.78 20.44 Cost to Income 43.74 43.68 50.08 47.03 47
Slide 23: Key Ratios
Key Ratios NIM(%) Cost Of Deposits (%) Yield on 3.05 5.70 5.70 Advances(%) 3.02 8.77 5.50 8.71 8.66 2.90 2.88 5.35 8.56 Sep'23 Mar'24 Jun'24 Sep'24 Sep'23 Mar'24 Jun'24 Sep'24 Sep'23 Mar'24 Jun'24 Sep'24 Cost Of Funds (%) Yield on Funds(%) Yield on Investments(%) 6.95 7.72 6.94 5.25 5.26 7.70 7.54 6
Slide 24: Investments
Driving Customer Delight & Growth Digitally INVESTMENTS Page 23
Slide 25: Investment Portfolio
Investment Portfolio ₹ in Crore Sl. No Parameters Sep'23 Jun'24 Sep'24 1 Domestic Investments 346612 373591 375568 (a) SLR 310622 324203 326523 (b) Non SLR 35990 49388 49047 SLR as % to Dom. Investments 89.62 86.78 86.94 (i) Held To Maturity (HTM) 283405 298077 300563 (ii) Available For Sale (AFS) 6
Slide 26: Non SLR Portfolio
Non SLR Portfolio ₹ in Crore % Share Y-o-Y Variation Parameters Sep’23 Jun’24 Sep’24 (Sep'24) Amount % PSU Bonds 3372 4138 4173 8.51 801 23.75 Corporate and Other Bonds 5427 7434 8500 17.33 3073 56.62 Special Govt. Sec excl. Recap Bonds 1741 633 633 1.29 (1108) (63.64) CG Recap. Bond 18238 18238 182
Slide 27: Asset Quality
Driving Customer Delight & Growth Digitally Asset Quality Page 26
Slide 28: Asset Quality Ratios
Asset Quality Ratios ₹ in Crore Parameters Sep’23 Mar’24 Jun’24 Sep’24 Gross NPA 43956 40605 40356 37733 Gross NPA (%) 4.76 4.23 4.14 3.73 Net NPA 12554 11823 11702 9777 Net NPA (%) 1.41 1.27 1.24 0.99 Provision Coverage Ratio (%) 88.73 89.10 89.22 90.89 Credit Cost (%) 1.02 0.96 0.90 0.97 Slippage
Slide 29: Movement of NPA
Movement of NPA Parameters Sep’23 Mar’24 Jun’24 Sep’24 ₹ in Crore NPA as at the beginning of the period 45727 41722 40605 40356 Cash Recovery towards Book Liability(i) 1198 929 780 1188 Up-gradation (ii) 671 520 495 659 Write Off (iii) 2889 3068 2311 3121 Total Reduction(i+ii+iii) 4758 4517 3586 496
Slide 30: NPA Classification: Sector Wise
NPA Classification: Sector Wise ₹ in Crore Advance O/s Parameters Sep’23 Mar’24 Jun’24 Sep’24 GNPA (%) (Sep’24) Domestic Gross NPA 40235 37213 37235 34689 954149 3.64 Global Gross NPA 43956 40605 40356 37733 1011997 3.73 Retail 2000 2247 2249 2067 194556 1.06 Housing Loans 598 836 900 1156 99452 1.1
Slide 31: NPA Classification: Industry wise
NPA Classification : Industry wise ₹ in Crore Sector/Scheme Sep’23 Mar’24 Jun’24 Sep’24 GNPA (%) Infrastructure 5473 5637 5861 5619 4.36 Iron & Steel 658 568 561 508 2.89 Textile 1232 1431 1499 1251 6.56 Food Processing 1198 1121 1222 1087 8.91 Engineering 912 825 812 741 5.36 Page 30
Slide 32: Special Mention Accounts (SMA)
Special Mention Accounts (SMA) ₹ in Crore SMA Position of the Bank (₹ 5 Cr and above) Sep'23 Jun'24 Sep'24 No of % to Gross No of % to Gross No of % to Gross Parameters Outstanding Outstanding Outstanding Accounts Advances Accounts Advances Accounts Advances SMA 2 221 4413 0.48 167 4134 0.42 160 109
Slide 33: Accounts referred to NCLT
Accounts referred to NCLT ₹ in Crore Sep'23 Sep'24 Parameters No of Book Provision No of Book Provision Provision Provision Accounts Liability Coverage Accounts Liability Coverage 1st List - RBI 4 1102 1102 100% 4 1055 1055 100% 2nd List – RBI 11 5290 5290 100% 9 4666 4666 100% Total RBI 1 & 2 15 63
Slide 34: Capital & Shareholding
Driving Customer Delight & Growth Digitally Capital & Shareholding Page 33
Slide 35: Capital Funds (Basel III)
Capital Funds (Basel III) ₹ in Crore Parameters Sep’23 Jun’24 Sep’24 CRAR (%) Tier I 83679 98104 104313 16.57 16.20 16.38 Common Equity 71262 82265 85486 2.01 1.93 2.60 Additional Tier I 12417 15839 18827 2.32 2.64 Tier II 15971 13779 13741 2.02 Total (Tier I+II) 99650 111883 118054 Risk-weighted As
Slide 36: Shareholding Pattern as on September 30th, 2024
Shareholding Pattern as on September 30th,2024 Year ended FII/FPIs holding (%) Mar’22 8.48 Staff, 0.62 Others, 2.14 Resident Individuals, 12.04 Mar’23 8.95 Mar’24 10.57 FIIs/FPIs, 11.25 Mutual Funds, 4.34 Insurance Companies, 6.68 Government of India, 62.93 Page 35
Slide 37: Environmental, Social & Governance
Driving Customer Delight & Growth Digitally 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 undertaken: Bank is impacting the Society by engaging in For the Bank’s journey towards Sustainability, helping and uplifting the underserved Increased usage of LED light
Slide 39: Distribution Network
Driving Customer Delight & Growth Digitally New Design Distribution Network Page 38
Slide 40: Distribution Network
Distribution Network Parameters Sep'23 Jun'24 Sep'24 General Branches(a) 8757 8997 9032 Specialised Branches(b) 761 626 626 Total Domestic Branches(a+b) 9518 9623 9658 Overseas Branches 4 4 4 BC Points 13427 13167 13173 Total Banking Outlets 22949 22794 22835 ATM 10553 10014 9881 Recycler 1565 2242
Slide 41: Digital Footprint
Driving Customer Delight & Growth Digitally Digital Footprint Page 40
Slide 42: Digital Footprint
Digital Footprint 1100.49 5.85 858.56 2.69 430.34 302.81 5.42 2.62 SEP'23 SEP'24 SEP'23 SEP'24 SEP'23 SEP'24 SEP'23 SEP'24 MeitY Digital Transactions( Nos in Internet Banking Registrations (Nos in E-Transactions (Nos in Crores) Debit Card Outstanding (Nos in Crore) Crores) Crores) 0.75 6.61 3.10 9.5
Slide 43: New Digital Initiatives
New Digital Initiatives Integration of 300 APIs in gateway is completed to customers who do not have proper ERP solution through API partners such as Zohobooks, Marg Erp etc., to garner fresh CASA. Banking API Banking is integrated with Tally software which offers seamless connectivity services and
Slide 44: Subsidiaries & Associates
Subsidiaries & Associates ₹ in Crore Total Profit Our share Name of the Entity Holding(%) Sep’24 SUBSIDIARIES Canara Robeco Asset Management Company Ltd. 51 80.26 40.93 Canara HSBC Life Insurance Company Ltd. 51 55.57 28.34 Canbank Factors Ltd. 70 2.66 1.86 Canbank Computer Services Ltd. 69.14 7.66
Slide 45: Guidance for March 2025 Vs Actuals for September 2024
Guidance for March 2025 Vs Actuals for September 2024 Guidance Parameters Actuals as on 30.09.2024 (31.03.2025) Business Growth (Global) 10.00% 9.42% Advances Growth (Global) 10.00% 9.53% Deposits Growth (Global) 9.00% 9.34% CASA (Domestic CASA to Domestic Deposit) 33.00% 31.27% NIM (Global)(Annuali
Slide 46: 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 47: 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 46