Canara Bank · NSE:CANBK
Canara Bank — Q3 FY2015 Earnings Presentation
53 slides from Canara Bank's earnings presentation, December 2014
Slide 1: Performance Highlights December 2014
PERFORMANCE HIGHLIGHTS DECEMBER 2014 www.canarabank.com Page 1
Slide 2: Highlights – Dec'2014
HIGHLIGHTS – DEC’2014 Net profit at `656 crore, up by 60.3%. Operating Profit up by 13% y-o-y to ` 1797 crore. Total Fee income up by 38.2% to ` 1176 crore from ` 851 crore last year. Total Business at ` 7.75 lakh crore, up by 11.2% y-o-y. Total Deposits at ` 4.62 lakh crore, up by 13.1% y-o-y. Adva
Slide 3: Highlights – Dec'2014
HIGHLIGHTS – DEC’2014 Gross NPA Ratio at 3.35% and net NPA Ratio at 2.42%. Record Cash Recovery during 9M FY15 at ` 4427 crore compared to ` 3135 crore last year. Recovery from prudentially written off accounts in 9MFY15 at `1203 crore (16.29% of outstanding amount). Upgradation during 9M was at ` 1
Slide 4: Performance Highlights - Business
PERFORMANCE HIGHLIGHTS- BUSINESS Amt. in ` Crore y.o.y DEC’13 MAR’14 JUNE’14 SEP’14 DEC’14 Growth(%) Parameters Deposits 408924 420723 428976 461193 462450 13.09% Advances 287700 301067 302964 310860 312269 8.54% (net) Business 696624 721790 731940 772053 774718 11.21% C-D Ratio 70.36 71.56 70.62 67
Slide 5: Performance Highlights - Overseas Business
PERFORMANCE HIGHLIGHTS- OVERSEAS BUSINESS Amt. in ` Crore y.o.y Parameters DEC’13 MAR’ 14 JUNE’14 SEPT’14 DEC’14 Growth Deposits 21294 21870 22875 24962 25743 20.89% Advances 18493 19224 18319 21348 20293 9.73% Gross Income 847 1092 319 652 917 8.26% Gross Expenditure 649 851 244 494 704 8.47% Gross
Slide 6: Performance Highlights - Profitability Q3FY15
PERFORMANCE HIGHLIGHTS- PROFITABILITY-Q3FY15 Amt. in ` Crore y.o.y Parameters Q3FY14 Q1FY15 Q2FY15 Q3FY15 Gr(%) Total Income 10935 11728 11915 12228 11.82 Total Expenses 9344 9933 10290 10431 11.62 Operating Profit 1591 1795 1626 1797 12.98 Net Profit 409 807 627 656 60.25 NIM (%) Domestic 2.35 2.42
Slide 7: Performance Highlights - Profitability 9M FY15
PERFORMANCE HIGHLIGHTS- PROFITABILITY-9M FY15 Amt. in ` Crore y.o.y Parameters 9MFY14 Mar’14 9MFY15 Growth(%) Total Income 31871 43480 35871 12.55 Total Expenses 26957 36684 30653 13.71 Operating Profit 4914 6796 5218 6.18 Net Profit 1827 2438 2090 14.35 www.canarabank.com Page 7
Slide 8: Performance Highlights - Expanding the Reach
PERFORMANCE HIGHLIGHTS- EXPANDING THE REACH Particulars Dec’13 Mar’14 Dec’14 Y-o-Y incr. Branch Network 4557 4755 5648 1091 ATM Strength 4543 6312 7599 3056 Debit Card (In Lakh) 133.21 151.29 226.92 93.71 E-Lounges 132 Population group No. of branches % to total Rural 1795 31.82 5641 domestic Semi-U
Slide 9: Business Segments
BUSINESS SEGMENTS www.canarabank.com Page 9
Slide 10: Segment Wise Deposits
SEGMENT WISE DEPOSITS Amt. in ` Crore y.o.y Parameters DEC’13 MAR’14 JUN’14 SEPT’14 DEC’14 Growth (%) Total Deposits 408924 420723 428976 461193 462450 13.09 Current 14793 17744 16749 17743 18696 26.39 Saving 79671 85536 81594 86287 86322 8.35 CASA 94465 103279 98343 104030 105019 11.17 CASA (%)Dom
Slide 11: Loans & Advances Segment
LOANS & ADVANCES SEGMENT Amt. in ` Crore y.o.y Parameters DEC’13 MAR’14 JUN’14 SEP’14 DEC’14 Growth (%) Advances (Net) 287700 301067 302964 310860 312269 8.54 Total Priority 93018 97762 103694 108748 112693 21.15 Agriculture 45703 48797 53956 54890 56474 23.57 41787 44268 45202 46705 47928 14.70 - D
Slide 12: Achievement Under Mandated Targets – Priority Sector
ACHIEVEMENT UNDER MANDATED TARGETS – PRIORITY SECTOR Achieved the mandated targets in respect of: Agriculture (19.53% against 18% norm) Mandated Direct agriculture (16.58% against 13.5% norm) Targets Credit to specified minority communities (18.73% against 15% norm) under Priority Weaker Section (12
Slide 13: Performance of Retail Advances
Performance of Retail Advances Amt. in ` Crore y.o.y Type of DEC’13 MAR’14 JUN’14 SEP’14 DEC’14 Growth Advances (%) Housing loans Direct 11688 12822 13541 14391 15225 30.26 Vehicle loans 2791 3099 3335 3490 3628 29.99 Education loans 4791 4901 5046 5336 5492 14.63 Other Personal Loans 5223 5845 7469
Slide 14: Exposure - Infrastructure
EXPOSURE - INFRASTRUCTURE Amt. in ` Crore y.o.y % Share Parameters DEC’13 MAR’14 JUN’14 SEP’14 DEC’14 Growth Total Adv (%) Roads 6529 6980 7242 7517 7851 2.51% 20.25 Ports 1112 1092 1093 831 827 0.26% -25.63 Airports 1380 1827 1788 1688 1657 0.53% 20.07 Power (Generation, Transmission 38414 38294 42
Slide 15: Exposure - Power Sector & Aviation
EXPOSURE - POWER SECTOR & AVIATION Amt. in ` Crore % Share y.o.y Parameters DEC’13 MAR’14 JUN’14 SEP’14 DEC’14 Total Growth Adv (%) -Power Generation 19334 20003 21985 22707 23824 7.63 23.22 -Power Transmission 2286 2215 2166 2205 2126 0.68 -7.00 -Power Distribution 16794 16076 18014 18627 19670 6.3
Slide 16: Exposure to Other Sectors
EXPOSURE TO OTHER SECTORS Amt. in ` Crore y.o.y DEC’13 MAR’14 JUN’14 SEP’14 DEC’14 Growth (%) EXPOSURE TO CAPITAL MARKET Outstanding 2312 2210 2365 2348 2458 6.31 EXPOSURE TO NBFCs Total 31293 26163 25474 24589 23523 -24.83 Out of above : HFCs 11433 8144 8367 7475 7212 -36.92 Private 14740 12163 116
Slide 17: Financials
FINANCIALS www.canarabank.com Page 17
Slide 18: Profitability - Q3 FY15
PROFITABILITY- Q3 FY15 Amt. in ` Crore y.o.y Parameters Q3 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Growth (%) Total Income 10935 11728 11915 12228 11.82% Total Expenses 9344 9933 10290 10431 11.62% Operating Profit 1591 1795 1626 1797 12.98% Provisions 1182 988 999 1141 -3.40% Net Profit 409 807 627 656 60.25%
Slide 19: Profitability – 9M FY15
PROFITABILITY – 9M FY15 Amt. in ` Crore y.o.y Parameters 9MFY14 Mar’14 9MFY15 Growth (%) Total Income 31871 43480 35871 12.55 Total Expenses 26957 36684 30653 13.71 Operating Profit 4914 6796 5218 6.18 Provisions 3087 4358 3128 1.34 Net Profit 1827 2438 2090 14.35 Net Int. Income 6409 8944 7178 11.9
Slide 20: Break-up: Income – Q3 FY15
BREAK-UP : INCOME – Q3 FY15 Amt. in ` Crore y.o.y Parameters Q3 FY14 Q1FY15 Q2 FY15 Q3 FY15 Growth (%) Interest on Advances 7360 7905 8005 8064 9.56 Interest on Investments 2575 2625 2681 2792 8.43 Other Interest Income 149 171 208 196 31.66 Total Interest Income 10084 10701 10894 11052 9.60 Non - I
Slide 21: Break-up: Income – 9M FY15
BREAK-UP : INCOME – 9M FY15 Amt. in ` Crore y.o.y Parameters 9M FY14 Mar’14 9M FY15 Growth (%) Interest on Advances 20774 28458 23973 15.40 Interest on Investments 7653 10251 8098 5.81 Other Interest Income 580 839 576 -0.84 Total Interest Income 29008 39548 32647 12.54 Non – Interest Income 2863 39
Slide 22: Break-up: Expenditure – Q3 FY15
BREAK-UP : EXPENDITURE – Q3 FY15 Amt. in ` Crore y.o.y Growth Parameters Q3 FY14 Q1 FY15 Q2 FY15 Q3 FY15 (%) Interest Expenses 7857 8272 8526 8671 10.36 Interest on Deposits 7311 7702 7964 8213 12.34 Staff Expenses 873 1038 1036 1038 18.82 Other Op Exp 614 623 728 722 17.49 Total Op Exp 1488 1661 17
Slide 23: Break-up: Expenditure – 9M FY15
BREAK-UP : EXPENDITURE – 9M FY15 Amt. in ` Crore y.o.y Parameters 9M FY14 Mar’14 9M FY15 Growth (%) Interest Expenses 22599 30603 25469 12.70 Interest on Deposits 21181 28658 23880 12.74 Staff Expenses 2693 3672 3112 15.54 Other Op Exp 1665 2409 2072 24.49 Total Op Exp 4358 6081 5184 18.96 Total Exp
Slide 24: Break-up: Non-Interest Income
BREAK-UP: NON-INTEREST INCOME Amt. in ` Crore Dec’13 Jun’14 Sep’14 Dec’14 y.o.y Parameters Q3FY14 Q1FY15 Q2FY15 Q3FY15 Growth(%) Com & Exchange 188 209 224 226 21 -Bancassurance 11 11 17 20 86 Profit from Exch. Transactions 148 263 206 251 70 Rent – Lockers 3 66 4 2 -18 Dividend Income 23 7 22 32 38
Slide 25: Break-up: Non-Interest Income
BREAK-UP: NON-INTEREST INCOME Amt. in ` Crore Parameters y.o.y 9MFY14 Mar’14 9MFY15 Growth (%) Com & Exchange 656 940 659 0.46 -Bancassurance 26 47 47 80.77 Profit from Exch. Transactions 444 670 720 62.16 Rent – Lockers 65 67 72 10.77 Dividend Income 51 70 60 17.65 Recovery in W/Off A/cs 314 425 30
Slide 26: Break-up: Provisions - Q3FY15
BREAK-UP : PROVISIONS- Q3FY15 Amt. in ` Crore Provisions for Q3 FY14 Q1 FY15 Q2 FY15 Q3 FY15 NPAs 543 1125 912 952 Standard Assets 93 - - 81 Provisions on 157 (416) (22) (236) Investments Tax 130 200 185 300 Restructured & Others 258 79 (76) 44 Total Provision 1182 988 999 1141 &Contingency www.cana
Slide 27: Break-up: Provisions – 9MFY15
BREAK-UP : PROVISIONS – 9MFY15 Amt. in ` Crore Provisions for 9M FY14 Mar’14 9MFY15 NPAs 1333 2135 2989 Standard Assets 366 478 81 Provisions on 330 692 (674) Investments Tax 445 625 685 Restructured & Others 612 428 47 Total Provision &Contingency 3087 4358 3128 www.canarabank.com Page 27
Slide 28: Earnings Profile
EARNINGS PROFILE (In %) Parameters Q3FY14 Q1FY15 Q2FY15 Q3FY15 NIM – Domestic 2.35 2.42 2.36 2.36 NIM – Global 2.21 2.30 2.24 2.24 ROAA 0.37 0.66 0.51 0.53 EPS (` ) (not Annualized) 9.24 17.49 13.59 14.22 Book Value (` ) 518.61 521.68 538.01 554.93 ROE (Annualized) 10.81 13.47 11.78 11.27 Cost-Incom
Slide 29: Trend in Cost and Yield (%)
TREND IN COST AND YIELD (%) (In %) Dec’13 Mar’14 Jun’14 Sep’14 Dec’14 Cost of Deposits 7.48 7.42 7.44 7.40 7.40 Cost of Funds 6.82 6.80 6.80 6.82 6.83 Yield on Advances 10.55 10.54 10.69 10.69 10.76 Yield on Funds 8.75 8.79 8.80 8.77 8.75 Yield on Investments 7.99 8.03 8.05 8.04 8.02 www.canarabank.
Slide 30: Investment Classification
Investment Classification Amt. in ` Crore % Share % Share % Share Parameters Dec’13 in Total Mar’14 in Total Dec’14 in Total Portfolio Portfolio Portfolio SLR 112003 86 108095 85.21 131895 86.35 Non SLR 18279 14 18758 14.79 20854 13.65 Total (Domestic) 130282 100 126853 100 152749 100 Held For Tradi
Slide 31: Asset Quality
ASSET QUALITY www.canarabank.com Page 31
Slide 32: Asset Quality
ASSET QUALITY Amt. in ` Crore PARTICULARS Dec’13 Mar’14 June’14 Sep’14 Dec’14 Gross NPA 8074 7570 8160 9164 10574 Gross NPA Ratio (%) 2.79 2.49 2.67 2.92 3.35 Net NPA 6870 5965 6150 7170 7556 Net NPA Ratio (%) 2.39 1.98 2.03 2.31 2.42 Cash Recovery (cumulative) 3135 5494 2019 3213 4427 Cash Recovery
Slide 33: Gross NPA Movement
GROSS NPA MOVEMENT (` in crore) PARTICULARS Dec’13 Mar’14 June’14 Sep’14 Dec’14 Opening Gross NPA (` Crore) 6260 6260 7570 7570 7570 Additions 6309 8443 2595 5773 8065 Sub Total 12569 14703 10165 13343 15635 Less: Reduction (a+b+c+d)) 4495 7134 2005 4179 5061 a) Write Off (Including Addn Prudential
Slide 34: NPA Composition
NPA COMPOSITION Amt. in ` Crore Parameters DEC’13 MAR’14 JUN’14 SEPT’14 DEC’14 Gross Advances 289833 303431 305723 313431 315856 Sub-Standard 5211 3436 4167 5416 6055 Doubtful 2863 4134 3993 3748 4518 Loss NIL NIL NIL NIL NIL Provision Coverage Ratio (%) 57.39 60.11 60.10 58.68 59.44 www.canarabank.
Slide 35: Sector-wise NPA Slippages
SECTOR-WISE NPA SLIPPAGES Amt. in ` Crore Q3 Q1 Q2 Q3 % to total SECTOR FY14 FY15 FY15 FY15 Slippages Micro & Small Ent. 288 631 970 627 27.36 Agriculture 243 390 373 316 13.79% Other Priority Sector 125 184 200 156 6.81% Total Priority Sector 656 1205 1543 1099 47.95% Medium Industries 91 174 391 1
Slide 36: Sector-wise NPA Outstanding
SECTOR- WISE NPA OUTSTANDING Amt. in ` Crore SECTOR Dec’13 Mar’14 Jun’14 Sep’14 Dec’14 Micro & Small Enterprises 1488 1727 1959 2401 2715 Agriculture 1016 979 1179 1189 1330 Other Priority Segments 341 250 358 402 435 Medium Enterprises 379 389 441 727 825 Large Industries 3420 3279 3067 3386 4087 O
Slide 37: Sectoral Contribution of NPA
SECTORAL CONTRIBUTION OF NPA Amt. in ` Crore Particulars Dec’13 Mar’14 Jun’14 Sep’14 Dec’14 Gross Advances 289833 303431 305723 313431 315856 Gross NPA 8074 7570 8160 9164 10574 Gross NPA % 2.79 2.49 2.67 2.92 3.35 Priority Sector Advances 93018 97762 103694 108748 112693 PS as % to Gross Advances 3
Slide 38: Restructured Assets
RESTRUCTURED ASSETS Amt. in ` Crore Total Restructured PARTICULARS Restructured PA Restructured NPA A/cs No of A/Cs Amount No of A/Cs Amount No of A/Cs Amount A/c Restructured in Q1 2013-14 125 1365 9 318 134 1683 A/c Restructured in Q2 2013-14 3416 973 59 26 3475 999 A/c Restructured in Q3 2013-14
Slide 39: Restructured Assets Under CDR
RESTRUCTURED ASSETS UNDER CDR Amt. in ` Crore POSITION AS ON A/C Amount DECEMBER-2013 94 12185 MARCH-2014 96 10446 JUNE- 2014 94 9224 SEPTEMBER-2014 85 9261 DECEMBER-2014 77 9956 www.canarabank.com Page 39
Slide 40: Sector Wise Restructured Accounts
SECTOR WISE RESTRUCTURED ACCOUNTS Name of the Sector As on 31st Dec 2014 Details of restructured Accounts No. of a/cs Amnt % to cumulative Outstanding Amt. INFRASTRUCTURE (a+b+c+d+e+f+g+h) 119 12764 50.25 Of Which Power POWER (a+b+c+d) 62 8932 35.17 State DISCOMS (a) 27 6606 State Transmission (b) -
Slide 41: Amount Restructured During Q3 FY15
AMOUNT RESTRUCTURED DURING Q3 FY15 Amt. in ` Crore No. of Accounts Amount 3280 65 Agriculture 3895 113 MSME 4509 134 Housing / Education loan 31 772 Large Advances 1430 11 Others 13145 1095 Total www.canarabank.com Page 41
Slide 42: Sector Wise Restructured Advances Outstanding as at Dec 2014
SECTOR WISE RESTRUCTURED ADVANCES OUTSTANDING AS AT DEC 2014 Amt. in ` Crore No. of Accounts Amount 12194 446 Agriculture 9900 1280 MSME 14100 456 Housing / Education loan 548 22839 Large Advances 2846 379 Others 39588 25400 Total www.canarabank.com Page 42
Slide 43: Capital Adequacy – New Basel III Norms
CAPITAL ADEQUACY – NEW BASEL III NORMS CRAR of 9.87% at DEC 2014 Vs. 9% norm CET ratio at 6.97% vs. 5.5% norm Tier I ratio at 7.23% vs. 7% norm Capital Adequacy Tier II ratio at 2.64% Ratio Govt. holding at 69% Paid-up Capital at ` 461.26 crore CRAR at 10.38% reckoning 9 months Profit. Sufficient he
Slide 44: Capital Adequacy – Basel III
CAPITAL ADEQUACY – BASEL III Amt. in ` Crore BASEL III Particulars DEC’13 Mar’14 JUN’14 SEPT’14 DEC’14 Risk- weighted 302155 312226 321819 322093 330813 Assets Tier I Capital 22609 23991 23803 23859 23932 CET: 7.13% CET: 7.41% CET: 7.12% CET: 7.13% CET: 6.97% Tier I Ratio% AT I: 0.35% AT I: 0.27% AT
Slide 45: Shareholding Pattern
SHAREHOLDING PATTERN As on DEC 31, 2014 4.9 0.7 3.1 Govt. 69.00 4.7 7.0 FIIs 10.68 10.7 Insurance 7.04 Companies 69.0 Mutual Funds 4.67 Govt of India FIIs Insurance Companies Residents M utual Funds Resident Individuals Banks 4.88 Individuals Others Banks 0.66 Others 3.07 www.canarabank.com Page 45
Slide 46: Pradhan Mantri Jan Dhan Yojana (PMJDY)
Pradhan Mantri Jan Dhan Yojana (PMJDY) • Opened 51.96 lakh a/cs under PMJDY and secured a CASA deposit of Rs.728.79 crore. • 46.65 lakh Personalized RuPay debit Cards have been issued so far to the PMJDY account holders. • All allotted 3962 SSAs & 3371 Wards covered by opening of 802 Brick & Mortar
Slide 47: Financial Inclusion (FI)
Financial Inclusion (FI) • The Bank has opened 802 branches, including 468 in >2000 population and 334 in <2000 population. 479 Ultra Small Branches are also functioning apart from 802 brick and mortar branches. In total, the Bank has provided banking facilities in 10049 villages. • Basic Savings Ba
Slide 48: Important Customer-Friendly Technology Initiatives
IMPORTANT CUSTOMER-FRIENDLY TECHNOLOGY INITIATIVES • In association with eFresh, the Bank has set up Agriculture Knowledge Dissemination Centre, a first of its kind initiative at HO, Bengaluru. • A mass farmer contact initiative, viz., Kisan Sampark Abhyan launched in all rural & Semi- urban branche
Slide 49: Important Customer-Friendly Technology Initiatives
IMPORTANT CUSTOMER-FRIENDLY TECHNOLOGY INITIATIVES • An exclusive windows app for customers using Windows 8 handsets developed and uploaded in Windows store. • Foreign Inward Remittance through IMPS enabled. • DBTL (Modified Direct Benefit Transfer of LPG Subsidy) – both Option I (Account Validation
Slide 50: Expanded Clientele Base
EXPANDED CLIENTELE BASE (In Lakhs) % Y-o-Y DEC’13 Mar’14 Dec’14 Y-o-Y Increase Growth 6.32 Clientele Base 539 555 632 93 17.23 Crore Strong No. of Deposit Clientele A/cs 476 489 561 85 17.87 Base No. of Borrowal A/cs 63 66 71 8 12.37 92.84 lakhs Clientele added Y-o-Y www.canarabank.com Page 50
Slide 51: Major Awards/Accolades in Q3FY15
MAJOR AWARDS/ACCOLADES IN Q3FY15 • "MSME Banking Excellence Awards-2014" organized by Chamber of Indian Micro, Small and Medium Enterprises (CIMSME) at New Delhi. The Bank has been adjudged as the "Best Bank Award-Winner" among other awards. • Awarded ‘Niryat Bandhu’ instituted by Federation of Indi
Slide 52: Goals – Mar'15
GOALS – MAR’15 • Aims to reach an aggregate business figure of 8 lakh crore. • The Bank has received approval from the banking regulators of Tanzania for establishing a Subsidiary at Dar-es-Salaam. The Bank has plans to open branches/offices in various other overseas centres in the coming years, inc
Slide 53: www.canarabank.com
hotel dH ZX canara Bank www.canarabank.com