Canara Bank · NSE:CANBK
Canara Bank — Q2 FY2022-23 Earnings Presentation
46 slides from Canara Bank's earnings presentation, Oct 20, 2022
Slide 1: Exchange filing cover letter
Ref :: SD:363/364/11/12::2022-23 20.10.2022 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: C
Slide 2: Financial Results: Q2 (FY 2022-23)
High-tech Banking Multi - dimensional excellence Financial Results: Q2 (FY 2022-23) Page 1
Slide 3: Performance Highlights
Performance Highlights Global Business Net Profit 13.89% 89.42% y-o-y y-o-y 19,58,111 2,525 Gross Advances 20.00% Operating y-o-y Profit 8,24,147 RAM Credit 23.22% y-o-y 16.40% Net Interest 6,905 y-o-y Income 4,54,922 18.51% y-o-y PCR 7,434 85.36 % y-o-y 292 bps Gross NPA Net NPA Non Interest 6.37 %
Slide 4: Key Highlights
Key Highlights 32.86% ₹ in Crore y-o-y 17.01% 12.52% Gold Loan y-o-y y-o-y 1,08,794 Housing Loan Retail Credit 78,852 1,34,051 664 bps 214 bps y-o-y y-o-y RoE 18.86% CRAR Bank has shifted to 16.51 % new tax regime. The reduction in 316 bps Deferred Tax is 17.98% y-o-y ₹ 2,451.60 Cr. y-o-y decline Co
Slide 5: Contents
Contents Business Asset 06-13 27-32 Performance Quality Capital & 15-22 Financial 34-35 Performance Share Holding Environmental, Investment 24-25 Social & 37-37 Governance Distribution 39-41 Network Subsidiaries, 42-42 Associates & Joint Ventures Goals for Mar 2023 43-43 vs Actuals for Sep 2022 Page
Slide 6: Business Performance
Business f A ,) “a Performance | = ==. =f
Slide 7: Business Performance
Business Performance ₹ in Crore Growth (%) Parameters Sep’21 Mar’22 Jun’22 Sep’22 Q-o-Q Y-o-Y Global Gross Business 1719349 1827556 1901776 1958111 2.96 13.89 Domestic Gross Business 1643328 1738813 1801047 1836568 1.97 11.76 Overseas Gross Business 76021 88743 100729 121543 20.66 59.88 Global Gross
Slide 8: Domestic Deposit Mix
Domestic Deposit Mix ₹ in Crore Growth (%) Parameters Sep’21 Mar’22 Jun’22 Sep’22 Q-o-Q Y-o-Y CASA Deposits 334463 368732 361125 359460 (0.46) 7.47 Term Deposits 645874 659035 691782 697059 0.76 7.92 Retail Term Deposits 429145 441777 451083 446915 (0.92) 4.14 Total Domestic Deposits 980337 1027767
Slide 9: Advances Mix
Advances Mix ₹ in Crore RAM: 55% Sep’22 Retail Loans Growth (%) 16% Parameters Sep’21 Jun’22 Sep’22 Corporate & others Agriculture & Allied 45% 24% Q-o-Q Y-o-Y MSME RAM Credit 390825 435346 454922 4.50 16.40 15% Retail 119138 128615 134051 4.23 12.52 RAM: 57% Agriculture & Allied 161632 185680 19657
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 (52.12% to ANBC against 40% norm) Agriculture (23.35% to ANBC against 18% norm) Mandated Norms under Small and Marginal Farmers (16.96% to ANBC against 9.50% norm) Priority Sector No
Slide 11: RAM & Retail Credit
RAM & Retail Credit RAM ₹ in Crore 454922 16.40% 390825 Sep'21 Sep'22 Retail Loans Housing Loans 78852 134051 12.52% 17.01% 67387 119138 Sep'21 Sep'22 Sep'21 Sep'22 Page 10
Slide 12: Industry Credit
Industry Credit ₹ in Crore Growth (in %) Sector/Scheme Sep’21 Jun’22 Sep’22 Q-o-Q Y-o-Y Infrastructure 91990 105194 108081 2.74 17.49 NBFCs 82142 122307 130653 6.82 59.06 Textile 17517 18705 18478 (1.21) 5.49 Iron & Steel 14802 16473 16307 (1.01) 10.17 Commercial Real Estate 15948 15414 16499 7.04 3
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) Sep’21 Jun’22 Sep’22 External Outstanding % Share Outstanding % Share Outstanding % Share Rating A and 143784 70 193935 78 203149 77 above BBB 27543 13
Slide 14: Rating Profile
Rating Profile ₹ in Crore Rating Profile of Standard NBFC Domestic Exposure Sep’21 Jun’22 Sep’22 External Rating Exposure % Share Exposure % Share Exposure % Share A and above 63398 98 121168 98 125352 98 BBB 674 1 722 1 576 1 BB and below 193 1 196 1 129 1 Total 64264 100 122086 100 126057 100 Page
Slide 15: Financial Performance
Financial Performance Page 14
Slide 16: Total Income
Total Income ₹ in Crore Quarterly Parameters Growth Growth Sep’21 Mar’22 Jun’22 Sep’22 Q-o-Q(%) Y-o-Y(%) Interest Income 17063 17861 18177 20107 10.62 17.84 Interest on Advances 12164 12757 12949 14660 13.21 20.52 Interest on Investments 4218 4569 4481 4841 8.03 14.77 Other Interest Income 681 535 7
Slide 17: Non-Interest Income
Non-Interest Income ₹ in Crore Quarterly Parameters Growth Growth Sep’21 Mar’22 Jun’22 Sep’22 Q-o-Q(%) Y-o-Y(%) Fee Based Income 1463 1892 1577 1726 9.45 17.98 Commission Exchange & Brokerage 263 395 256 308 20.31 17.11 Service Charges 804 897 809 899 11.12 11.82 Miscellaneous 396 600 512 519 1.37 3
Slide 18: Total Expense
Total Expense ₹ in Crore Quarterly Parameters Growth Growth Sep’21 Mar’22 Jun’22 Sep’22 Q-o-Q(%) Y-o-Y(%) Interest Expenses 10790 10856 11392 12673 11.24 17.45 Interest Paid on Deposits 9984 10037 10583 11568 9.31 15.87 Other Interests 806 819 809 1105 36.59 37.10 Operating Expenses 4937 5265 5354 5
Slide 19: Financials at a Glance
Financials at a Glance ₹ in Crore Quarterly Parameters Sep’21 Mar’22 Jun’22 Sep’22 Growth Growth Q-o-Q(%) Y-o-Y(%) Net Interest Income 6273 7005 6785 7434 9.57 18.51 Total Interest Income 17063 17861 18177 20107 10.62 17.84 Total Interest Expenses 10790 10856 11392 12673 11.24 17.45 Total Income 213
Slide 20: Continuous & Consistent Growth
Continuous & Consistent Growth 85.36 2525 6606 6905 84.51 6202 2022 84.17 5604 5803 1666 83.26 1502 1333 82.44 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Sep'21 Dec'21 Mar'22 Jun'22 Sep'22 Operating Profit (₹ in Cr) Net Profit (₹ in Cr) PCR (%) 3.21 2.86 8.42 2.65 16.51 7.
Slide 21: Provisions
Provisions ₹ in Crore Quarterly Parameters Growth Growth Sep’21 Mar’22 Jun’22 Sep’22 Q-o-Q(%) Y-o-Y (%) Total Provision 4271 4536 4584 4380 (4.45) 2.55 NPAs 2678 2130 2673 2745 2.69 2.50 Standard Asset (12) (223) 133 119 (10.53) -- Non Performing Investment 220 1035 1535 526 (65.73) 139.09 Income Ta
Slide 22: Key Ratios
Key Ratios (%) Sep’21 Mar’22 Jun’22 Sep’22 Ratios Quarterly Cumulative Quarterly Cumulative Quarterly Cumulative Quarterly Cumulative Return on Assets 0.46 0.43 0.57 0.48 0.65 0.65 0.79 0.71 Return on Net-worth 12.22 11.57 15.25 12.82 16.33 16.33 18.86 17.37 Cost to Income 46.84 46.85 45.92 46.16 44
Slide 23: Key Ratios
Key Ratios Cost Of Deposits (%) NIM(%) Yield on 2.82 2.83 4.09 Advances(%) 2.78 7.22 7.24 3.98 3.99 3.95 7.12 2.72 7.03 Sep'21 Mar'22 Jun'22 Sep'22 Sep'21 Mar'22 Jun'22 Sep'22 Sep'21 Mar'22 Jun'22 Sep'22 Cost Of Funds (%) Yield on Funds(%) Yield on 3.75 5.96 Investments(%) 3.67 6.52 3.64 6.43 3.60 5
Slide 24: Investments
Investments Page 23
Slide 25: Investment Portfolio
Investment Portfolio ₹ in Crore Sl. No Parameters Sep’21 Jun'22 Sep’22 1 Domestic Investments 286227 309482 311651 (a) SLR 243153 269616 272416 (b) Non SLR 43074 39866 39234 SLR as % to Dom. Investments 84.95 87.12 87.41 (i) Held To Maturity (HTM) 213465 249809 257226 (ii) Available For Sale (AFS) 7
Slide 26: Non SLR Portfolio
Non SLR Portfolio ₹ in Crore % Share Y-o-Y Variation Parameters Sep’21 Jun’22 Sep’22 (Sep’22) Amount % PSU Bonds 4425 4039 3928 10.01 (497) (11.23) Corporate and Other Bonds 9423 7548 7439 18.96 (1984) (21.05) Special Govt. Sec excl. Recap Bonds 2590 2407 2407 6.13 (183) (7.07) CG Recap. Bond 18238
Slide 27: Asset Quality
Asset Quality Page 26
Slide 28: Asset Quality Ratios
Asset Quality Ratios ₹ in Crore Parameters Sep’21 Mar’22 Jun’22 Sep’22 Gross NPA 57853 55652 54734 52485 Gross NPA (%) 8.42 7.51 6.98 6.37 Net NPA 20862 18668 18505 17286 Net NPA (%) 3.21 2.65 2.48 2.19 Provision Coverage Ratio (%) 82.44 84.17 84.51 85.36 Credit Cost (%) 1.98 1.53 1.38 1.31 Slippage
Slide 29: Movement of NPA
Movement of NPA ₹ in Crore Parameters Sep’21 Mar’22 Jun’22 Sep’22 NPA as at the beginning of the period 58215 56893 55652 54734 -Cash Recovery towards Book Liability(i) 3002 2146 1886 1876 -Up-gradation(ii) 2671 842 756 1523 -Write Off(iii) 1585 2989 2225 2798 Total Reduction(i+ii+iii) 7258 5977 486
Slide 30: NPA Classification: Sector Wise
NPA Classification: Sector Wise ₹ in Crore GNPA (%) Parameters Sep’21 Advance O/s Mar’22 Jun’22 Sep’22 (Sep’22) Sep’22 Domestic Gross NPA 52494 50794 49810 47326 780049 6.07 Global Gross NPA 57853 55652 54734 52485 824147 6.37 Retail 1605 1671 1844 1843 134051 1.37 Housing Loans 656 485 674 606 7885
Slide 31: NPA Classification: Industry wise
NPA Classification : Industry wise ₹ in Crore Sector/Scheme Sep’21 Mar’22 Jun’22 Sep’22 GNPA (%) Infrastructure 8960 8979 9027 7339 6.79 Iron & Steel 961 813 909 858 5.26 Textile 1282 1229 1429 1361 7.37 Food Processing 1154 1349 1337 1303 9.62 Engineering 828 960 988 972 7.66 Page 30
Slide 32: Special Mention Accounts (SMA)
Special Mention Accounts (SMA) ₹ in Crore SMA Position of the Bank (Rs. 5 Cr and above) Sep’21 Jun’22 Sep’22 No of % to Gross No of % to Gross No of % to Gross Parameters Outstanding Outstanding Outstanding Accounts Advances Accounts Advances Accounts Advances SMA 2 240 5519 0.70 288 3439 0.38 254 2
Slide 33: Accounts referred to NCLT
Accounts referred to NCLT ₹ in Crore Sep’21 Sep’22 Parameters No of Provision No of Provision Book Liability Provision Coverage(%) Book Liability Provision Coverage(%) Accounts Accounts 1st List - RBI 7 3053 3053 100 6 2345 2345 100 2nd List – RBI 14 5563 5519 99 12 5440 5407 99 Total RBI 1 & 2 21 8
Slide 34: Capital & Shareholding
Capital & Shareholding Page 33
Slide 35: Capital Funds (Basel III)
Capital Funds (Basel III) ₹ in Crore CRAR % Parameters Sep’22 Jun’22 Sep’21 16.51 Tier I 73725 65869 59729 14.91 Common Equity 61289 56983 52843 14.37 3.11 Additional Tier I 12436 8886 6886 2.78 15497 2.96 Tier II 17073 15138 2.26 Total (Tier I+II) 90798 81007 75226 1.65 1.32 Risk-weighted Assets 55
Slide 36: Shareholding Pattern as on September 30th, 2022
Shareholding Pattern as on September 30th,2022 ₹ in Crore Staff, 0.85 Resident Individuals, 10.35 Others, 3.39 FIIs/FPIs, 8.44 Mutual Funds, 3.75 Insurance Companies, 10.29 Government of India, 62.93 Page 35
Slide 37: Environmental, Social & Governance
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 obtain Indian Green Building Within communities, Bank engages in Bank has formed ESG Committee and Council Certification for 100 Branches helping and uplifting th
Slide 39: Distribution Network
Distribution Network Page 38
Slide 40: Distribution Network
Distribution Network Parameters Sep’21 Jun’22 Sep’22 General Branches (a) 9057 8927 8898 Specialised Branches (b) 743 805 824 Total Domestic Branches (a+b) 9800 9732 9722 Overseas Branches 4 3 3 BC Points 8938 8906 8906 Total Banking Outlets 18742 18641 18631 ATM 10988 10802 10759 Recycler 1372 1399
Slide 41: Digital Footprint
Digital Footprint 94.01 59.34 4.85 2.28 598.95 1.88 413.83 4.38 SEP 21 SEP 22 SEP 21 SEP 22 SEP 21 SEP 22 Internet Banking Registrations (Nos in Debit Card Outstanding (Nos in MeitY Digital Transactions( Nos in Crore) Lakhs) Crores) E-Transactions( Nos in Crore) 18.95 1.79 143.18 1.36 100.78 7.92 SE
Slide 42: Digital Initiatives
Digital Initiatives Sound Box for BHIM QR Revamped Mobile Banking App In order to compete with new Bank had launched facility of Generation Banks and to remain “Sound Box” for BHIM QR ahead of peers, Bank has launched Merchants. It provides a facility for the “ “Canara ai1” Mobile Banking customers/
Slide 43: Subsidiaries, Associates & Joint Ventures
Subsidiaries, Associates & Joint Ventures ₹ in Crore Total Profit Our share Name of the Entity Holding(%) Sep’22 SUBSIDIARIES Canara Robeco Asset Management Company Ltd. 51 32.17 16.41 Canara HSBC Life Insurance Company Ltd. 51 35.57 18.14 Canbank Factors Ltd. 70 6.05 4.24 Canbank Computer Services
Slide 44: Goals for Mar 2023 vs Actuals for Sep 2022
Goals for Mar 2023 vs Actuals for Sep 2022 ₹ in Crore Guidance Parameters Actuals as on 30.09.2022 (31.03.2023) Business Growth (Global) 8.30% 13.89% Advances Growth (Global) 8.00% 20.00% Deposits Growth (Global) 8.50% 9.82% CASA (Domestic CASA to Domestic Deposit) 38.00% 34.02% NIM (Global)(Annuali
Slide 45: 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 46: 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 45