Canara Bank · NSE:CANBK
Canara Bank — Q4 FY2022-23 Earnings Presentation
47 slides from Canara Bank's earnings presentation, May 8, 2023
Slide 1: Cover letter to stock exchanges
Ref :: SD:81/82/11/12::2023-24 08.05.2023 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: CAN
Slide 2: Financial Results: Q4 (FY 2022-23)
Inspired by Customers driven by Digital Financial Results: Q4 (FY 2022-23) Page 1
Slide 3: Performance Highlights
Performance Highlights ₹ in Crore Operating Profit Net Profit Global Business Gross Advances 16.94% 90.63% 11.72% 16.41% y-o-y y-o-y y-o-y y-o-y 7,252 3,175 20,41,764 8,62,782 5 digit Net Profit Net Interest Income for the first time RAM Credit 23.01% 13.23% ever during the y-o-y y-o-y 8,617 FY 23 a
Slide 4: Key Highlights
Key Highlights ₹ in Crore 14.27% 33.82% 10.91% y-o-y y-o-y y-o-y Housing Loan Gold Loan Retail Credit 84,364 1,23,185 1,40,051 667 bps Dividend @120% of 178 bps y-o-y Paid up Capital y-o-y Return on Equity CRAR 19.49% as against 65% 16.68% during FY 22 38 bps 137 bps 14 bps y-o-y y-o-y y-o-y Return
Slide 5: Contents
Contents Business Performance 6-13 Financial Performance 15-22 Investment 24-25 Asset Quality 27-32 Capital & Share Holding 34-35 Environmental, Social & Governance 37-37 Distribution Network 39-42 Subsidiaries, Associates & Joint Ventures 43-43 Goals vs Actuals for Mar 2023 and Goals for Mar 2024 4
Slide 6: Business Performance
Inspired by Customers driven by Digital Business Performance Page 5
Slide 7: Business Performance
Business Performance ₹ in Crore Growth (%) Parameters Mar’22 Jun’22 Sep’22 Dec’22 Mar'23 Q-o-Q Y-o-Y Global Gross Business 1827556 1901776 1958111 2014443 2041764 1.36 11.72 Domestic Gross Business 1738813 1801047 1836568 1880607 1912508 1.70 9.99 Overseas Gross Business 88743 100729 121543 133836 1
Slide 8: Domestic Deposit Mix
Domestic Deposit Mix ₹ in Crore Growth (%) Parameters Mar’22 Jun’22 Sep’22 Dec’22 Mar’23 Q-o-Q Y-o-Y CASA Deposits 368732 361125 359460 351490 366472 4.26 (0.61) Term Deposits 659035 691782 697059 728210 728274 0.01 10.51 Retail Term Deposits 441777 451083 446915 463083 461737 (0.29) 4.52 Total Dome
Slide 9: Advances Mix
Advances Mix ₹ in Crore RAM: 55% Mar’23 Retail Loans 16% Growth (%) Corporate & others Agriculture & Allied Parameters Mar’22 Dec’22 Mar’23 45% 25% Q-o-Q Y-o-Y MSME 14% RAM Credit 421258 463038 477005 3.02 13.23 Retail 126277 137007 140051 2.22 10.91 Agriculture & Allied 175955 203312 213327 4.93 21
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 (49.23% to ANBC against 40% norm) Agriculture (22.80% to ANBC against 18% norm) Mandated Norms under Small and Marginal Farmers (17.44% to ANBC against 9.50% norm) Priority Sector No
Slide 11: RAM & Retail Credit
RAM & Retail Credit RAM ₹ in Crore 477005 13.23% 421258 Mar'22 Mar'23 Retail Loans Housing Loans 140051 84364 10.91% 14.27% 126277 73828 Mar'22 Mar'23 Mar'22 Mar'23 Page 10
Slide 12: Industry Credit
Industry Credit ₹ in Crore Growth (in %) Sector/Scheme Mar'22 Dec’22 Mar'23 Q-o-Q Y-o-Y Infrastructure 94677 114682 115542 0.75 22.04 NBFC 106698 138757 138973 0.16 30.25 Textile 18991 18481 18055 (2.31) (4.93) Iron & Steel 13850 16347 15709 (3.90) 13.42 Commercial Real Estate 16516 19990 20460 2.35
Slide 13: Rating Profile
Rating Profile ₹ in Crore External Rating - Wise Distribution of Domestic Advances above Rs. 25 crore (% of Total rated loan book above Rs 25 crore) Mar'22 Dec’22 Mar'23 External Outstanding % Share Outstanding % Share Outstanding % Share Rating A and 175380 77 213484 78 209169 81 above BBB 22351 10
Slide 14: Rating Profile
Rating Profile ₹ in Crore Rating Profile of Standard NBFC Domestic Exposure Mar'22 Dec’22 Mar'23 External Rating Exposure % Share Exposure % Share Exposure % Share 104997 98 133462 98 129347 98 A and above 678 1 458 1 567 1 BBB 185 1 107 1 18 1 BB and below 105860 100 134027 100 129932 100 Total Pag
Slide 15: Financial Performance
Inspired by Customers driven by Digital Financial Performance Page 14
Slide 16: Total Income
Total Income ₹ in Crore Quarterly Cumulative Parameters Growth Growth Mar’22 Jun’22 Sep’22 Dec’22 Mar’23 Mar’22 Mar’23 Growth(%) Q-o-Q(%) Y-o-Y(%) Interest Income 17861 18177 20107 22231 23910 7.55 33.87 69410 84425 21.63 Interest on Advances 12757 12949 14660 16210 17538 8.19 37.48 49862 61357 23.0
Slide 17: Non-Interest Income
Non-Interest Income ₹ in Crore Quarterly Cumulative Parameters Growth Growth Growth Mar’22 Jun'22 Sep’22 Dec’22 Mar’23 Mar’22 Mar’23 Q-o-Q(%) Y-o-Y(%) (%) Fee Based Income 1892 1577 1726 1606 1905 18.62 0.69 6113 6814 11.47 Commission Exchange & Brokerage 395 256 308 333 387 16.22 (2.03) 1230 1284 4
Slide 18: Total Expenses
Total Expenses ₹ in Crore Quarterly Cumulative Parameters Growth Growth Mar’22 Jun’22 Sep’22 Dec’22 Mar’23 Mar’22 Mar’23 Growth(%) Q-o-Q(%) Y-o-Y(%) Interest Expenses 10856 11392 12673 13631 15293 12.19 40.87 43026 52989 23.16 Interest Paid on Deposits 10037 10583 11568 12542 14097 12.40 40.45 39743
Slide 19: Financials at a Glance
Financials at a Glance ₹ in Crore Quarterly Cumulative Parameters Growth Growth Mar’22 Jun’22 Sep’22 Dec’22 Mar’23 Mar’22 Mar’23 Growth(%) Q-o-Q(%) Y-o-Y(%) Net Interest Income 7005 6785 7434 8600 8617 0.20 23.01 26384 31436 19.15 Total Interest Income 17861 18177 20107 22231 23910 7.55 33.87 69410
Slide 20: Continuous & Consistent Growth
Continuous & Consistent Growth 3175 7252 2882 87.31 2525 86.32 6905 6952 2022 85.36 6606 1666 84.51 6202 84.17 Mar'22 Jun'22 Sep'22 Dec'22 Mar'23 Mar'22 Jun'22 Sep'22 Dec'22 Mar'23 Mar'22 Jun'22 Sep'22 Dec'22 Mar'23 Operating Profit (₹ in Cr) Net Profit (₹ in Cr) PCR (%) 7.51 6.98 16.72 16.68 6.37 2
Slide 21: Provisions
Provisions ₹ in Crore Quarterly Cumulative Parameters Growth Growth Mar’22 Jun’22 Sep’22 Dec’22 Mar’23 Mar’22 Mar’23 Growth(%) Q-o-Q(%) Y-o-Y(%) Total Provision 4536 4584 4380 4070 4077 0.17 (10.12) 16057 17111 6.56 NPAs 2130 2673 2745 1920 2399 24.95 12.63 9848 9737 (1.13) Standard Asset (223) 133
Slide 22: Key Ratios
Key Ratios (%) Mar’22 Sep’22 Dec’22 Mar’23 Ratios Quarterly Cumulative Quarterly Cumulative Quarterly Cumulative Quarterly Cumulative Return on Assets 0.57 0.48 0.79 0.71 0.88 0.76 0.95 0.81 Return on Net-worth 15.25 12.82 18.86 17.37 20.43 18.38 21.68 19.49 Cost to Income 45.92 46.16 43.68 44.21 44
Slide 23: Key Ratios
Key Ratios Cost Of Deposits (%) NIM(%) Yield on 2.95 Advances(%) 2.93 4.38 4.19 7.70 2.82 2.83 4.09 7.45 3.95 3.99 2.78 7.22 7.24 7.03 Mar'22 Jun'22 Sep'22 Dec'22 Mar'23 Mar'22 Jun'22 Sep'22 Dec'22 Mar'23 Mar'22 Jun'22 Sep'22 Dec'22 Mar'23 Cost Of Funds (%) Yield on Funds(%) Yield on Investments(%)
Slide 24: Investments
Inspired by Customers driven by Digital INVESTMENTS Page 23
Slide 25: Investment Portfolio
Investment Portfolio ₹ in Crore Sl. No Parameters Mar'22 Dec'22 Mar’23 1 Domestic Investments 283916 314535 321699 (a) SLR 243115 276000 283770 (b) Non SLR 40801 38535 37929 SLR as % to Dom. Investments 85.63 87.75 88.21 (i) Held To Maturity (HTM) 238549 266925 269303 (ii) Available For Sale (AFS) 4
Slide 26: Non SLR Portfolio
Non SLR Portfolio ₹ in Crore % Share Y-o-Y Variation Parameters Mar'22 Dec’22 Mar'23 (Mar'23) Amount % PSU Bonds 4060 3899 3538 9.33 (522) (12.86) Corporate and Other Bonds 7848 6929 6616 17.44 (1232) (15.70) Special Govt. Sec excl. Recap Bonds 2412 2388 1898 5.00 (514) (21.31) 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 Mar'22 Dec'22 Mar'23 Gross NPA 55652 50143 46160 Gross NPA (%) 7.51 5.89 5.35 Net NPA 18668 15982 14349 Net NPA (%) 2.65 1.96 1.73 Provision Coverage Ratio (%) 84.17 86.32 87.31 Credit Cost (%) 1.53 1.21 1.17 Slippage Ratio (%) 0.38 0.34 0.34 Page 27
Slide 29: Movement of NPA
Movement of NPA ₹ in Crore Parameters Mar'22 Dec'22 Mar’23 NPA as at the beginning of the period 56893 52485 50143 -Cash Recovery towards Book Liability(i) 2146 1776 1904 -Up-gradation(ii) 842 940 735 -Write Off(iii) 2989 2836 4317 Total Reduction(i+ii+iii) 5977 5552 6956 Fresh Addition 4736 3210 29
Slide 30: NPA Classification: Sector Wise
NPA Classification: Sector Wise ₹ in Crore Advance O/s Parameters Mar'22 Dec'22 Mar'23 GNPA (%) (Mar'23) Domestic Gross NPA 50794 45324 41387 817762 5.06 Global Gross NPA 55652 50143 46160 862782 5.35 Retail 1671 2070 2020 140051 1.44 Housing Loans 485 605 568 84364 0.67 Vehicle Loans 302 242 226 15
Slide 31: NPA Classification: Industry wise
NPA Classification : Industry wise ₹ in Crore Sector/Scheme Mar'22 Dec'22 Mar'23 GNPA (%) Infrastructure 8979 7141 6079 5.26 Iron & Steel 813 681 739 4.70 Textile 1229 1305 1284 7.11 Food Processing 1349 1203 1119 8.80 Engineering 960 1014 955 7.80 Page 30
Slide 32: Special Mention Accounts (SMA)
Special Mention Accounts (SMA) ₹ in Crore SMA Position of the Bank (Rs. 5 Cr and above) Mar’22 Mar’23 % to Gross No of % to Gross Parameters No of Accounts Outstanding Outstanding Advances Accounts Advances SMA 2 152 2300 0.27 151 1880 0.22 SMA 1 252 3737 0.43 155 1576 0.18 TOTAL SMA 1 & 2 404 6037
Slide 33: Accounts referred to NCLT
Accounts referred to NCLT ₹ in Crore Mar’22 Mar’23 Parameters No of Provision No of Provision Book Liability Provision Coverage(%) Book Liability Provision Coverage(%) Accounts Accounts 1st List - RBI 6 2345 2345 100% 4 1116 1116 100% 2nd List – RBI 13 5523 5482 99% 11 5289 5289 100% Total RBI 1 & 2
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 CRAR % Parameters Mar'22 Dec’22 Mar'23 16.72 16.68 Tier I 64133 76240 78236 14.90 3.04 2.90 Common Equity 55247 63813 65814 Additional Tier I 8886 12427 12422 2.99 2.23 2.19 Tier II 16083 16935 16466 1.65 Total (Tier I+II) 80216 93175 94702 Risk-weighted Assets 5
Slide 36: Shareholding Pattern as on March 31st, 2023
Shareholding Pattern as on March 31st,2023 ₹ in Crore Staff, 0.73 Resident Individuals, 9.60 Others, 2.65 FIIs/FPIs, 8.95 Mutual Funds, 4.53 Insurance Companies, 10.61 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 a part of Green initiatives, Bank proposes to increase usage of LED light, BEE rated AC Within communities, Bank engages in units and phasing our DG sets gradually. helping and uplifting the underserved The B
Slide 39: Distribution Network
Inspired by Customers driven by Digital Distribution Network Page 38
Slide 40: Distribution Network
Distribution Network Parameters Mar'22 Dec’22 Mar'23 General Branches(a) 8957 8897 8883 Specialised Branches(b) 777 823 823 Total Domestic Branches(a+b) 9734 9720 9706 Overseas Branches 3 3 3 BC Points 8906 9691 12918 Total Banking Outlets 18643 19414 22627 ATM 10817 10745 10726 Recycler 1391 1402 1
Slide 41: Digital Footprint
Inspired by Customers driven by Digital Digital Footprint Page 40
Slide 42: Digital Footprint
Digital Footprint 439.41 253.70 5.13 243.93 1328.21 919.76 4.64 212.39 MAR'22 MAR'23 MAR'22 MAR'23 MAR'22 MAR'23 Internet Banking Registrations (Nos in MeitY Digital Transactions( Nos in Crore) Debit Card Outstanding (Nos in Lakhs) Crores) E-Transactions( Nos in Crore) 2.07 0.62 24.03 166.87 0.50 12
Slide 43: New Digital Initiatives
Credit Card on UPI API Banking & CBDC Bank has launched an API Banking platform to provide Rupay Credit Cards are linked to seamless banking services to our corporate clients. The smart corporate suite will enable our corporate a UPI ID thus directly enabling customers to use and integrate seamlessl
Slide 44: Subsidiaries & Associates
Subsidiaries & Associates ₹ in Crore Total Profit Our share Name of the Entity Holding(%) Mar’23 SUBSIDIARIES Canara Robeco Asset Management Company Ltd. 51 78.85 40.21 Canara HSBC Life Insurance Company Ltd. 51 91.19 46.51 Canbank Factors Ltd. 70 5.02 3.51 Canbank Computer Services Ltd. 69.14 16.24
Slide 45: Goals vs Actuals for Mar 2023 and Goals for Mar 2024
Goals vs Actuals for Mar 2023 and Goals for Mar 2024 ₹ in Crore Guidance Guidance Parameters Actuals as on 31.03.2023 (31.03.2023) (31.03.2024) Business Growth (Global) 8.30% 11.72% 10.00% Advances Growth (Global) 8.00% 16.41% 10.50% Deposits Growth (Global) 8.50% 8.54% 8.50% CASA (Domestic CASA to
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