Canara Bank · NSE:CANBK
Canara Bank — Q3 FY2020-21 Earnings Presentation
53 slides from Canara Bank's earnings presentation, Jan 27, 2021
Slide 1: Exchange filing cover letter: Investor Presentation Q3 2020-21
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Slide 2: Page 1
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Slide 3: Performance Highlights-Q3 2020-21 (Y-o-Y)
Performance Highlights-Q3 2020-21 (Y-o-Y) 13.83% SB 25.17% Fee Based Income y-o-y Rs 2,67,594 Cr y-o-y Rs 1,323 Cr 14.89% CASA 46.65% Operating Profit y-o-y Rs 3,10,156 Cr y-o-y Rs 5382 Cr 236 18.19% Retail Term Deposits Gross NPA bps y-o-y Rs 4,16,938 Cr 7.46% y-o-y 298 10.62% Bulk Deposit Net NPA
Slide 4: Key Highlights
Key Highlights Net Interest Income excludes Rs 413 Cr Net Interest Income Interest reversal of deemed NPA 6081 Cr y-o-y growth 14.58% Treasury CET 1 Income 44481 Cr 2016 Cr q-o-q growth y-o-y growth 56 bps Global 210.15% Business surpassed 1640000 Cr Cash Total Capital Recovery raised Rs 2893 Cr 481
Slide 5: Contents
Contents Business Performance 5-15 Financial Performance 16-23 Investment 24-26 Asset Quality 27-39 Capital & Share Holding 40-42 Expanding Reach – Offline & Online 44-46 Subsidiaries, Associates & Joint Ventures 47 Environmental, Social & Governance ( ESG) Practices 48-49 w.e.f 1st April, 2020 Synd
Slide 6: Business Performance
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Slide 7: Business Performance
Business Performance ₹ in Crore Growth % Parameters Dec’19 Mar’20 Sep’20 Dec’20 Q-o-Q Y-o-Y Global Gross Business 1533622 1557839 1597747 1640582 2.68 6.97 Domestic Gross Business 1447431 1488366 1538179 1573151 2.27 8.69 Overseas Gross Business 86191 69473 59568 67431 13.20 (21.77) Global Deposits
Slide 8: Domestic Deposit Mix
Domestic Deposit Mix ₹ in Crore Parameters Dec’19 Mar’20 Sep’20 Dec’20 Growth % Q-o-Q Y-o-Y Saving Deposits 235082 250041 258946 267594 3.34 13.83 Current Deposits 34883 40131 39583 42562 7.53 22.01 CASA Deposits 269965 290172 298529 310156 3.89 14.89 Domestic CASA % 31.80 33.36 32.77 33.41 -- -- Te
Slide 9: Domestic Deposit Mix
Domestic Deposit Mix Deposit Mix 450000 416938 405781 400000 361216 352755 Sustained growth in CASA and Retail Term Deposit 350000 310156 298529 290172 300000 269966 267594 CASA increased by Rs 40190 Cr y-o-y, improving the 258946 235082 250041 CASA Ratio by 161 bps 250000 200000 225132 218476 Retai
Slide 10: Advances Mix
Advances Mix RAM: 56.65% Dec'20 ₹ in Crore Corporate & Retail Loans Growth % others 17.05% Agriculture & Parameters Dec’19 Sep’20 Dec’20 43.35 Allied 22.57 Q-o-Q Y-o-Y MSME 17.03 Retail Loans 104121 110196 113835 3.30 9.33 Agriculture & 135788 141880 150652 6.18 10.95 Allied RAM: 54.98% MSME 107021
Slide 11: MSME credit
MSME credit Segment Mix Book by Loan size Upto 5 Cr 14% 7% 11% Micro 5 Cr-10 Cr 7% 50% Small 10 Cr-25 Cr 36% Medium 75% Above 25 Cr Geographical Mix 44% 34% 24% Short Term North Loan 15% 11% East Long Term 56% 66% South Loan 50% West Dec'19 Dec'20 Page 10
Slide 12: Achievement Under Mandated Targets – Priority Sector
Achievement Under Mandated Targets – Priority Sector Achieved the mandated norms in respect of: Mandated Norms Total Priority (47.36 % to ANBC against 40% norm, 54.95% prior to PSLC) under Priority Agriculture (19.54% to ANBC against 18% norm, 27.14% prior to PSLC) Sector Small and Marginal Farmers
Slide 13: Retail Credit
Retail Credit HOUSING LOAN Retail Loans 64000 62074 Vehicle Loans 113835 62000 13537 59940 60000 104121 58000 56765 12392 56000 54777 54000 52000 Dec'19 Dec'20 50000 Dec'19 Dec'20 DEC'19 MAR'20 SEP'20 DEC'20 ₹ in Crore Growth % Parameters Dec’19 Sep’20 Dec’20 Q-o-Q Y-o-Y Housing Loans (A) 54777 5994
Slide 14: Industry Credit
Industry Credit ₹ in Crore Growth % Sector/Scheme Dec’19 Mar’20 Jun’20 Sep’20 Dec’20 Q-o-Q Y-o-Y Infrastructure 77880 76193 79675 78203 77607 (0.76) (0.35) Basic Metal & Metal Product 26593 29031 25743 22640 24962 10.26 (6.13) Textiles 14880 14627 14703 14950 14660 (1.94) (1.48) Food Processing 1286
Slide 15: COVID-19 Credit Support
COVID-19- Credit Support Guaranteed Emergency Credit Line No. of Loans – 444616 Total Amount disbursed – Rs.9479.01 Cr PM SVANidhi No. of Loans – 96008 Total Amount disbursed – Rs.96 Cr Page 14
Slide 16: Rating Profile
Rating Profile External Rating - Wise Distribution of Domestic Advances External Rating - Wise above Rs. 10 crore Distribution of Domestic (% of total rated loan book above Rs 10 crore) Corporate Advances Dec’19 Dec’20 External Outstanding % Share Outstanding % Share 21.19% Rating A and 125397 64.83
Slide 17: Financial Performance
Financial Performance Page 16
Slide 18: Total Income
Total Income ₹ in Crore Quarterly 9 M Ended Parameters Growth Growth Dec-19 Jun-20 Sep-20 Dec-20 Dec-19 Dec-20 Q-o-Q(%) Y-o-Y(%) Interest Income 17698 18036 17682 17206 (2.69) 53243 52924 (0.60) Interest on Advances 13090 13118 13093 12447# (4.93) 39374 38658 (1.82) Interest on Investments 4173 4272
Slide 19: Non-Interest Income
Non-Interest Income ₹ in Crore Quarterly 9 Months Ended Parameters Growth Growth Dec-19 Jun-20 Sep-20 Dec-20 Dec-19 Dec-20 Q-o-Q(%) Y-o-Y(%) Fee Based Income (i+ii+iii) 1057 931 1219 1323 8.53 3029 3473 14.66 Comm Exchange & Brok (i) 255 243 306 275 (10.13) 638 824 29.15 Commission on LC/BG/DDs 168
Slide 20: Total Expense
Total Expense ₹ in Crore 9 Months Ended Quarterly Parameters Growth Growth Dec-19 Jun-20 Sep-20 Dec-20 Dec-19 Dec-20 Q-o-Q(%) Y-o-Y(%) Interest Expenses 12391 11940 11386 11125 (2.29) 38035 34451 (9.42) Interest Paid on Deposits 11465 11108 10586 10430 (1.47) 35006 32124 (8.23) Other Interests 926 8
Slide 21: Financials at a Glance
Financials at a Glance ₹ in Crore Quarterly 9 Months Ended Parameters Growth Growth Dec-19 Jun-20 Sep-20 Dec-20 Dec-19 Dec-20 Q-o-Q(%) Y-o-Y(%) Total Interest Income 17698 18036 17682 17206 (2.69) 53243 52924 (0.60) Total Interest Expenses 12391 11940 11386 11125 (2.29) 38035 34451 (9.42) Net Intere
Slide 22: Provisions
Provisions ₹ in Crore Quarterly 9 Months Ended Parameters Growth Growth Dec-19 Jun-20 Sep-20 Dec-20 Dec-19 Dec-20 Q-o-Q(%) Y-o-Y (%) Total Provision 2906 3879 4195 4686 11.70 9692 12760 31.65 2488 3550 3533 2657 (24.79) 9804 9740 (0.65) NPAs Standard 184 763 41 186 353.66 262 990 277.86 Asset Deprec
Slide 23: Key Ratios
Key Ratios (%) Ratios Dec’19 Mar’20 Sep’20 Dec’20 Quarterly Cumulative Quarterly Cumulative Quarterly Cumulative Quarterly Cumulative RoA 0.31 0.10 (2.60) (0.58) 0.16 0.16 0.24 0.19 Return on Net-worth 7.00 2.23 (69.71) (15.45) 4.82 4.64 7.30 5.43 Cost to Income 53.70 54.77 70.03 58.81 50.91 50.95 4
Slide 24: KEY RATIOS – 9M FY21
KEY RATIOS – 9M FY21 Cost Of Deposits (%) Cost Of Funds (%) Yield on Advances(%) 5.46 5.42 8.26 5.07 5.05 8.22 4.37 4.20 4.75 8.06 4.61 7.98 Dec'19 Mar'20 Sep'20 Dec'20 Dec'19 Mar'20 Sep'20 Dec'20 Dec'19 Mar'20 Sep'20 Dec'20 Yield on Investments(%) NIM(%) Yield on Funds(%) 7.52 2.82 7.09 7.08 7.40 2
Slide 25: Investments
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Slide 26: Investment Portfolio
Investment Portfolio ₹ in Crore Sl. Parameters Dec’19 Mar’20 Sep’20 Dec’20 (1) Domestic Investments 238092 251254 265337 271435 (a) SLR 193907 205613 219265 227534 (b) Non SLR 44185 45641 46072 43901 SLR as % to Dom. 82.64% 81.44% 81.83% 83.83% Investments (i) Held To Maturity 198694 160200 171156 2
Slide 27: Non SLR Portfolio
Non SLR Portfolio ₹ in Crore % Share Y-o-Y Variation Parameters Dec’19 Mar’20 Sep’20 Dec’20 (Dec’20) Amount % PSU Bonds 4853 4694 4617 4606 10.49% (247) (5.09) Corporate and Other Bonds 6214 5894 8963 8098 18.45% 1884 30.32 Special Govt. Sec excl. Recap Bonds 3973 3971 3867 3010 6.86% (963) (24.24)
Slide 28: Asset Quality
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Slide 29: Asset Quality Ratios
Asset Quality Ratios ₹ in Crore Parameters Dec’19 Mar’20 Sep’20 Dec’20 Gross NPA 61975 61127 53438 49789 Gross NPA (%) 9.82 9.39 8.23 7.46 Net NPA 33852 26756 21063 16774 Net NPA (%) 5.62 4.34 3.42 2.64 Provision Coverage Ratio (%) 70.37 76.95 81.48 84.89 Credit Cost (%) 2.10 2.83 2.43 2.14 Slippage
Slide 30: Movement of NPA
Movement of NPA ₹ in Crore Sl.No Parameters Dec’19 Mar’20 Sep’20 Dec’20 FY19-20 (a) NPA as at the beginning of period 64093 61975 57526 53438 63904 (i) -Cash Recovery towards Book Liability# 6129 2213 1504 2003 12105 (ii) -Up-gradation 420 352 657 774 2347 (iii) -Write Off 3624 3550 2342 1380 12432
Slide 31: NPA Classification: Sector Wise
NPA Classification: Sector Wise ₹ in Crore Advance O/s Dec’19 Mar’20 Sep’20 Dec’20 GNPA (%) (Dec’20) Global Gross NPA 61975 61127 53438 49789 667561 7.46 Overseas Gross NPA 5862 6580 5940 5471 22735 24.06 Domestic Gross NPA 56113 54547 47498 44318 644826 6.87 Retail 2642 2614 1855 1573 113835 1.38 A
Slide 32: NPA Sector wise comparison Y-o-Y and Q-o-Q
NPA Sector wise comparison Y-o-Y and Q-o-Q ₹ in Crore NPA Sector wise 36422 36117 32603 30974 12871 12433 10040 9963 10476 9353 8504 7889 2642 2614 1855 1573 Retail Agriculture & Allied MSME Corporate & others Dec-19 Mar-20 Sep'20 Dec'20 Page 31
Slide 33: Retail Sector NPA
Retail Sector NPA ₹ in Crore Advance Parameters Dec’19 Mar’20 Sep’20 Dec’20 O/s GNPA (%) (Dec’20) Total Retail NPA 2642 2614 1855 1573 113835 1.38 Housing Loans 1015 1005 784 748 62074 1.21 Vehicle Loans 354 343 269 238 13537 1.76 Education Loan 524 489 185 123 12957 0.95 Other Personal Loans 749 77
Slide 34: NPA Classification: Industry wise
NPA Classification : Industry wise ₹ in Crore Sector/Scheme Dec’19 Mar’20 Sep’20 Dec’20 % of Advances Infrastructure 9040 8021 7775 7623 9.82 Iron & Steel 2990 2702 1581 1245 6.41 Textile 1082 1147 1013 944 6.44 Food Processing 1553 1602 1605 1523 10.67 Engineering 139 243 318 126 0.97 Page 33
Slide 35: Proforma Slippages
Proforma Slippages ₹ in Crore Without Proforma Slippages With Proforma Slippages Amount % age Amount % age Particulars For the Period/ As on 31.12.2020 49789 7.46 59776 8.95 Gross NPA 30.09.2020 53438 8.23 63438 9.78 31.12.2019 61975 9.36 -- -- 31.12.2020 16774 2.64 24860 3.93 Net NPA 30.09.2020 210
Slide 36: Special Mention Accounts (SMA)
Special Mention Accounts (SMA) ₹ in Crore SMA Position of the Bank (Rs. 5 Cr and above) 31.12.2020 position as on Sep’20 Dec’20 18.01.2021 No of Outsta % TO GROSS No of Outstan % TO GROSS No of Outstand % TO GROSS Accounts nding ADVANCES* Accounts ding ADVANCES* Accounts ing ADVANCES* SMA 2 133 2881
Slide 37: Accounts referred to NCLT
Accounts referred to NCLT ₹ in Crore Provision Pending Provision No of Book Provision Book Provision coverage Accounts coverage Parameters Accounts Liability Made (31.12.2020) Liability made (31.12.2019) (31.12.2019) (31.12.2019) (31.12.2019) (31.12.2020) (31.12.2020) (31.12.2020) Ist List - RBI 8 8
Slide 38: Restructuring Application & implementation
Restructuring Application & implementation ₹ in Crore Implemented Estimated Further Estimated as on Implementation up Applications Implementation up to Sl. No. Restructuring Category to Expected upto 31-Mar-21 (Excl. 30-Jun-21 (Only for 30-Sep-20 31-Dec-20 31Mar-21 Corporates) Corporates) 1 MSME (Up
Slide 39: CFITL under COVID Moratorium
CFITL under COVID Moratorium ₹ in Crore O/S As on O/S As on O/S As on O/S As on Sectors 30.11.2020 31.12.2020 30.09.2020 31.10.2020 (CFITL AGAINST LIABILITY) CFITL CC/OD CFITL CC/OD CFITL CC/OD CFITL CC/OD AGRI 187.28 5948.33 179.93 5310.23 175.43 5207.55 171.38 5518.86 CORPORATE 723.71 10112.16 674
Slide 40: Provision for COVID-19
Provision for COVID-19 ₹ in Crore Particulars Amount Respective amounts in SMA/overdue categories, where the moratorium/deferment was extended( o/s as on 10383 30.06.2020) Respective amounts where asset classification benefit was extended (O/s as on 31.12.2020) 2221 Additional Provision made during
Slide 41: Capital & Shareholding
Capital & Shareholding Page 40
Slide 42: Capital Funds (Basel III)
Capital Funds (Basel III) ₹ in Crore Parameters Mar’20 Sep’20 Dec’20 Tier I 49071.65 49562.22 53047.50 Common Equity 43173.94 42631.12 44481.40 Additional Tier I 5897.71 6931.10 8566.10 Tier II 17353.00 16769.45 16427.15 Total (Tier I+II) 66424.65 66331.67 69474.65 Risk-weighted Assets 509972.93 519
Slide 43: Shareholding Pattern & Capital Raised
Shareholding Pattern & Capital Raised As on Dec 31, 2020 Capital Raised Staff Others 1.24 4.97 Resident Individuals 9.01 FII/FPIs 4.48 Mutual Funds QIP, Q3, FY-21 Tier II Q4 2.39 2000.00 Cr FY-20 3000.00 Cr Insurance Companies AT-1 Bond, 8.58 Government of India Q3, FY-21 69.33 AT-1 Bond, 1635.00 Cr
Slide 44: EASE 3.0
EASE 3.0 Bank ranking upgraded to 3rd (out of 13 Banks) as at June’20 & Sept’20, when compared to 7th in EASE 2.0 Bank has Secured 2nd position under two themes Governance & Outcome-centric HR and Deepening Financial Inclusion and Customer Protection Secured 3rd position under the theme Instit
Slide 45: Expanding Reach
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Slide 46: Expanding the reach
Expanding the reach Northern Region Parameters Dec’19 Mar’20 Sep’20 Dec’20 (18.38%) Business Domestic Distribution 10390 10391 10495 10491 Western Region across Regions Branches (18.61%) Overseas 6 6 5 5 Branches BC Points 7888 9145 9422 9242 Total Banking 18284 19542 19922 19738 Outlets ATM 13392 1
Slide 47: Financial Inclusion
Financial Inclusion Accounts opened under PMJDY Transactions through BC channel (in Lacs) 18000 5 4.54 137 137 16000 4.5 14000 4 3.14 3.5 12000 2.86 3 127 10000 2.5 8000 16108 2 6000 1.5 10577 4000 7585 1 Dec'19 Sep'20 Dec'20 2000 0.5 0 0 Deposits Mobilised under Dec'19 Sep'20 Dec'20 PMJDY ( Rs in C
Slide 48: Subsidiaries, Associates & Joint Ventures
Subsidiaries, Associates & Joint Ventures ₹ in Crore Profit after Tax Name of the Entity % Holding Y-o-Y Dec’19 Dec’20 Growth % Subsidiaries Canbank Financial Services Ltd. 100% (0.80) 0.05 -- Canbank Venture Capital Fund Ltd. 100% 3.21 2.63 (18.07) Canbank Factors Ltd. 70% 0.27 1.28 374.07 Canara R
Slide 49: Environmental, Social & Governance Practices
Environmental, Social & Governance Practices Page 48
Slide 50: Environmental, Social & Governance (ESG) Practices
Environmental, Social & Governance ( ESG) Practices Environmental Social Governance Solar Panel of 53 kwp installed in HO Bank has spent Rs 405 lakhs under CSR The Bank has in place a fair, transparent building. activities till Dec 2020 for various & accountable Corporate Governance Reduced paper us
Slide 51: Goals set for March 2021
Goals set for March 2021 Guidance Actuals Parameters (31.03.2021) (31.12.2020) Deposits Growth (Global) 8.00% 7.80% Advances Growth (Global) 6.00% 5.79% Business Growth (Global) 8.00% 6.97% NIM (Global) (Annualized) 2.75% 2.80% CASA (Domestic CASA to Domestic Deposit) 35% 33.41% Gross NPA (Global) 8
Slide 52: 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 53: Thank You
We express our heartfelt Thank You 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 52