Canara Bank · NSE:CANBK
Canara Bank — Q3 FY2022-23 Earnings Presentation
46 slides from Canara Bank's earnings presentation, Jan 23, 2023
Slide 1: Exchange filing cover letter
Ref :: SD:588/589/11/12::2022-23 23.01.2023 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: C
Slide 2: Financial Results: Q3 (FY 2022-23)
Enhancing Customer Experience through High-tech Banking Customer Connect key for Canara Success Financial Results: Q3 (FY 2022-23) Page 1
Slide 3: Performance Highlights
Performance Highlights ₹ in Crore Operating Profit Net Profit Global Business Gross Advances 19.80% 91.88% 13.63% 16.65% y-o-y y-o-y y-o-y y-o-y 6,952 2,882 20,14,443 8,50,973 PCR Net Interest Income Non-Interest Income RAM Credit 86.32 % 23.81% 10.35% 13.81% y-o-y y-o-y y-o-y y-o-y 306 bps 8,600 3,
Slide 4: Key Highlights
Key Highlights ₹ in Crore 15.81% 34.21% 11.30% 13.02% y-o-y y-o-y y-o-y y-o-y Housing Loan Gold Loan Retail Credit Fee Based Income 81,916 1,15,286 1,37,007 1,606 630 bps 192 bps y-o-y y-o-y RoE CRAR 18.38% 16.72% 184 bps y-o-y Cost to Income 44.40% Page 3
Slide 5: Contents
Contents Business Performance 06-13 Financial 15-22 Performance Environmental, Social & 37-37 Governance Investment 24-25 Distribution 39-41 Network Asset 27-32 Quality Subsidiaries & 42-42 Associates Capital & 34-35 Share Holding Goals for Mar 2023 43-43 vs Actuals for Sep 2022 Page 4
Slide 6: Business Performance
Customer Connect key for Canara Success Business Performance Page 5
Slide 7: Business Performance
Business Performance ₹ in Crore Growth (%) Parameters Dec’21 Mar’22 Sep’22 Dec’22 Q-o-Q Y-o-Y Global Gross Business 1772856 1827556 1958111 2014443 2.88 13.63 Domestic Gross Business 1690518 1738813 1836568 1880607 2.40 11.24 Overseas Gross Business 82338 88743 121543 133836 10.11 62.54 Global Gross
Slide 8: Domestic Deposit Mix
Domestic Deposit Mix ₹ in Crore Growth (%) Parameters Dec’21 Mar’22 Sep’22 Dec’22 Q-o-Q Y-o-Y CASA Deposits 342035 368732 359460 351490 (2.22) 2.76 Term Deposits 646624 659035 697059 728210 4.47 12.62 Retail Term Deposits 434077 441777 446915 463083 3.62 6.68 Total Domestic Deposits 988659 1027767 1
Slide 9: Advances Mix
Advances Mix Dec’22 ₹ in Crore RAM: 54% Retail Loans 16% Growth (%) Corporate & others Agriculture & Allied Parameters Dec’21 Sep’22 Dec’22 46% 24% Q-o-Q Y-o-Y MSME 14% RAM Credit 406847 454922 463038 1.78 13.81 Retail 123098 134051 137007 2.21 11.30 RAM: 56% Agriculture & Allied 168569 196576 20331
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 (47.47% to ANBC against 40% norm) Agriculture (21.33% to ANBC against 18% norm) Mandated Norms under Small and Marginal Farmers (15.34% to ANBC against 9.50% norm) Priority Sector No
Slide 11: RAM & Retail Credit
RAM & Retail Credit RAM ₹ in Crore 463038 13.81% 406847 Dec'21 Dec'22 Retail Loans Housing Loans 137007 81916 11.30% 15.81% 123098 70735 Dec'21 Dec'22 Dec'21 Dec'22 Page 10
Slide 12: Industry Credit
Industry Credit ₹ in Crore Growth (in %) Sector/Scheme Dec’21 Sep’22 Dec’22 Q-o-Q Y-o-Y Infrastructure 93316 108081 114682 6.11 22.90 NBFC 105464 130653 138757 6.20 31.57 Textile 17415 18478 18481 0.02 6.12 Iron & Steel 14154 16307 16347 0.25 15.49 Commercial Real Estate 18041 16500 19990 21.15 10.8
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) Dec’21 Sep’22 Dec’22 External Outstanding % Share Outstanding % Share Outstanding % Share Rating A and 174693 75 203149 77 213484 78 above BBB 22777 10
Slide 14: Rating Profile
Rating Profile ₹ in Crore Rating Profile of Standard NBFC Domestic Exposure Dec’21 Sep’22 Dec’22 External Rating Exposure % Share Exposure % Share Exposure % Share A and above 103583 98 125352 98 133462 98 BBB 1615 1 576 1 458 1 BB and below 525 1 129 1 107 1 Total 105723 100 126057 100 134027 100 P
Slide 15: Financial Performance
Financial Performance Page 14
Slide 16: Total Income
Total Income ₹ in Crore Quarterly Parameters Growth Growth Dec’21 Mar’22 Jun’22 Sep’22 Dec’22 Q-o-Q(%) Y-o-Y(%) Interest Income 17701 17861 18177 20107 22231 10.56 25.59 Interest on Advances 12915 12757 12949 14660 16210 10.57 25.51 Interest on Investments 4022 4569 4481 4841 4947 2.19 23.00 Other I
Slide 17: Non-Interest Income
Non-Interest Income ₹ in Crore Quarterly Parameters Growth Growth Dec’21 Mar’22 Jun'22 Sep’22 Dec’22 Q-o-Q(%) Y-o-Y(%) Fee Based Income (i+ii+iii) 1421 1892 1577 1726 1606 (6.95) 13.02 Commission Exchange & Brokerage(i) 311 395 256 308 333 8.12 7.07 Service Charges(ii) 784 897 809 899 905 0.67 15.43
Slide 18: Total Expenses
Total Expenses ₹ in Crore Quarterly Parameters Growth Growth Dec’21 Mar’22 Jun’22 Sep’22 Dec’22 Q-o-Q(%) Y-o-Y(%) Interest Expenses 10755 10856 11392 12673 13631 7.56 26.74 Interest Paid on Deposits 9840 10037 10583 11568 12542 8.42 27.46 Other Interests 915 819 809 1105 1089 (1.45) 19.02 Operating
Slide 19: Financials at a Glance
Financials at a Glance ₹ in Crore Quarterly Parameters Growth Growth Dec’21 Mar’22 Jun'22 Sep’22 Dec’22 Q-o-Q(%) Y-o-Y(%) Net Interest Income 6946 7005 6785 7434 8600 15.68 23.81 Total Interest Income 17701 17861 18177 20107 22231 10.56 25.59 Total Interest Expenses 10755 10856 11392 12673 13631 7.5
Slide 20: Continuous & Consistent Growth
Continuous & Consistent Growth 2882 86.32 6905 6952 2525 85.36 6606 2022 84.51 1666 84.17 6202 1502 83.26 5803 Dec'21 Mar'22 Jun'22 Sep'22 Dec'22 Dec'21 Mar'22 Jun'22 Sep'22 Dec'22 Dec'21 Mar'22 Jun'22 Sep'22 Dec'22 Operating Profit (₹ in Cr) Net Profit (₹ in Cr) PCR (%) 16.72 16.51 7.80 7.51 2.86 6
Slide 21: Provisions
Provisions ₹ in Crore Quarterly Parameters Growth Growth Dec’21 Mar’22 Jun’22 Sep’22 Dec’22 Q-o-Q(%) Y-o-Y (%) Total Provision 2946 4536 4584 4380 4070 (7.08) 38.15 NPAs 2705 2130 2673 2745 1920 (30.05) (29.02) Standard Asset 2 (223) 133 119 155 30.25 -- Non Performing Investment (56) 1035 1535 526
Slide 22: Key Ratios
Key Ratios (%) Dec’21 Mar’22 Sep’22 Dec’22 Ratios Quarterly Cumulative Quarterly Cumulative Quarterly Cumulative Quarterly Cumulative Return on Assets 0.52 0.45 0.57 0.48 0.79 0.71 0.88 0.76 Return on Net-worth 13.52 12.08 15.25 12.82 18.86 17.37 20.43 18.38 Cost to Income 45.04 46.24 45.92 46.16 43
Slide 23: Key Ratios
Key Ratios Cost Of Deposits (%) NIM(%) Yield on 2.93 Advances(%) 4.19 4.09 7.45 2.82 2.83 3.99 7.23 7.22 7.24 2.79 2.78 3.95 3.95 7.03 Dec'21 Mar'22 Jun'22 Sep'22 Dec'22 Dec'21 Mar'22 Jun'22 Sep'22 Dec'22 Dec'21 Mar'22 Jun'22 Sep'22 Dec'22 Cost Of Funds (%) Yield on Funds(%) Yield on Investments(%)
Slide 24: Investments
Customer Connect key for Canara Success Investments Page 23
Slide 25: Investment Portfolio
Investment Portfolio ₹ in Crore Sl. No Parameters Dec’21 Sep'22 Dec’22 1 Domestic Investments 277977 311651 314535 (a) SLR 233729 272416 276000 (b) Non SLR 44248 39234 38535 SLR as % to Dom. Investments 84.08 87.41 87.75 (i) Held To Maturity (HTM) 225888 257226 266925 (ii) Available For Sale (AFS) 5
Slide 26: Non SLR Portfolio
Non SLR Portfolio ₹ in Crore % Share Y-o-Y Variation Parameters Dec’21 Sep’22 Dec’22 (Dec’22) Amount % PSU Bonds 4666 3928 3899 10.12 (767) (16.44) Corporate and Other Bonds 10019 7439 6929 17.98 (3090) (30.84) Special Govt. Sec excl. Recap Bonds 2571 2407 2388 6.20 (183) (7.12) CG Recap. Bond 18238
Slide 27: Asset Quality
Financial Performance Asset Quality Page 26
Slide 28: Asset Quality Ratios
Asset Quality Ratios ₹ in Crore Parameters Dec’21 Sep’22 Dec’22 Gross NPA 56893 52485 50143 Gross NPA (%) 7.80 6.37 5.89 Net NPA 19819 17286 15982 Net NPA (%) 2.86 2.19 1.96 Provision Coverage Ratio (%) 83.26 85.36 86.32 Credit Cost (%) 1.75 1.31 1.21 Slippage Ratio (%) 0.43 0.35 0.34 Page 27
Slide 29: Movement of NPA
Movement of NPA ₹ in Crore Parameters Dec’21 Sep’22 Dec’22 NPA as at the beginning of the period 57853 54734 52485 -Cash Recovery towards Book Liability(i) 1925 1876 1776 -Up-gradation(ii) 1108 1523 940 -Write Off(iii) 1348 2798 2836 Total Reduction(i+ii+iii) 4381 6197 5552 Fresh Addition 3421 3948
Slide 30: NPA Classification: Sector Wise
NPA Classification: Sector Wise ₹ in Crore GNPA (%) Parameters Dec’21 Advance O/s Sep’22 Dec’22 (Dec’22) Dec’22 Domestic Gross NPA 52017 47326 45324 800907 5.66 Global Gross NPA 56893 52485 50143 850973 5.89 Retail 1613 1843 2070 137007 1.51 Housing Loans 636 606 605 81916 0.74 Vehicle Loans 261 240
Slide 31: NPA Classification: Industry wise
NPA Classification : Industry wise ₹ in Crore Sector/Scheme Dec’21 Sep’22 Dec’22 GNPA (%) Infrastructure 9452 7339 7141 6.23 Iron & Steel 1016 858 681 4.17 Textile 1456 1361 1305 7.06 Food Processing 1319 1303 1203 9.05 Engineering 830 972 1014 8.11 Page 30
Slide 32: Special Mention Accounts (SMA)
Special Mention Accounts (SMA) ₹ in Crore SMA Position of the Bank (Rs. 5 Cr and above) Dec’21 Dec’22 % to Gross No of % to Gross Parameters No of Accounts Outstanding Outstanding Advances Accounts Advances SMA 2 218 2422 0.28 244 2918 0.34 SMA 1 199 3377 0.39 111 1215 0.14 TOTAL SMA 1 & 2 417 5799
Slide 33: Accounts referred to NCLT
Accounts referred to NCLT ₹ in Crore Dec’21 Dec’22 Parameters No of Provision No of Provision Book Liability Provision Coverage(%) Book Liability Provision Coverage(%) Accounts Accounts 1st List - RBI 6 2355 2355 100% 5 1462 1462 100% 2nd List – RBI 14 5554 5519 99% 11 5313 5313 100% Total RBI 1 & 2
Slide 34: Capital & Shareholding
Capital & Shareholding Page 33
Slide 35: Capital Funds (Basel III)
Capital Funds (Basel III) ₹ in Crore CRAR % Parameters Dec’22 Sep’22 Dec’21 16.51 16.72 Tier I 76240 73725 62525 14.80 3.11 3.04 Common Equity 63813 61289 54639 Additional Tier I 12427 12436 7886 3.22 2.26 2.23 Tier II 16935 17073 17346 1.46 Total (Tier I+II) 93175 90798 79871 Risk-weighted Assets 5
Slide 36: Shareholding Pattern as on December 31st, 2022
Shareholding Pattern as on December 31st,2022 ₹ in Crore Resident Individuals, 9.30 Staff, 0.74 Others, 2.68 FIIs/FPIs, 8.74 Mutual Funds, 4.77 Insurance Companies, 10.84 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 Within communities, Bank engages in helping and uplifting the underserved Bank has formed ESG Committee and proposes to increase usage of LED light, communities through non p
Slide 39: Distribution Network
Distribution Network Customer Connect key for Canara Success Page 38
Slide 40: Distribution Network
Distribution Network Parameters Dec’21 Sep’22 Dec’22 General Branches (a) 9007 8898 8897 Specialised Branches (b) 766 824 823 Total Domestic Branches (a+b) 9773 9722 9720 Overseas Branches 4 3 3 BC Points 8906 8906 9691 Total Banking Outlets 18683 18631 19414 ATM 10832 10759 10745 Recycler 1389 1399
Slide 41: Digital Footprint
Digital Footprint 310.06 176 4.94 2.35 954.62 660.58 1.98 4.55 DEC'21 DEC'22 DEC'21 DEC'22 DEC'21 DEC'22 Internet Banking Registrations (Nos in MeitY Digital Transactions( Nos in Crore) Debit Card Outstanding (Nos in Lakhs) E-Transactions( Nos in Crore) Crores) 22.60 1.93 0.61 155.38 1.49 0.44 110.5
Slide 42: Digital Initiatives
Digital Initiatives Canara ai1 Merchant App UPI-Lite through BHIM App Bank had launched UPI-Lite payment Bank has recently launched the solution through BHIM App. UPI LITE is a new payment solution that leverages the Canara ai1 Merchant App trusted NPCI Common Library (CL) Application for the on-boa
Slide 43: Subsidiaries & Associates
Subsidiaries & Associates ₹ in Crore Total Profit Our share Name of the Entity Holding(%) Dec’22 SUBSIDIARIES Canara Robeco Asset Management Company Ltd. 51 53.76 27.42 Canara HSBC Life Insurance Company Ltd. 51 61.49 31.36 Canbank Factors Ltd. 70 9.06 6.34 Canbank Computer Services Ltd. 69.14 11.35
Slide 44: Goals for Mar 2023 vs Actuals for Dec 2022
Goals for Mar 2023 vs Actuals for Dec 2022 ₹ in Crore Guidance Parameters Actuals as on 31.12.2022 (31.03.2023) Business Growth (Global) 8.30% 13.63% Advances Growth (Global) 8.00% 16.65% Deposits Growth (Global) 8.50% 11.51% CASA (Domestic CASA to Domestic Deposit) 38.00% 32.55% NIM (Global)(Annual
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