Canara Bank · NSE:CANBK
Canara Bank — Q2 FY2015 Earnings Presentation
54 slides from Canara Bank's earnings presentation, September 2014
Slide 1: Performance Highlights September 2014
PERFORMANCE HIGHLIGHTS SEPTEMBER 2014 www.canarabank.com Page 1
Slide 2: Highlights – Sept'2014
HIGHLIGHTS – SEPT’2014 Total Business up by 14.8% y-o-y to ` 7.72 lakh crore. Total Deposits up by 17.8% y-o-y to ` 4.61 lakh crore. Advances (net) up by 10.6% y-o-y to ` 3.11 lakh crore. Continued robust growth in retail business - MSME (27%), MSE (30%), Retail Lending (28%), Housing Loans (10%), V
Slide 3: Performance Highlights - Business
PERFORMANCE HIGHLIGHTS- BUSINESS Amt. in ` Crore y.o.y SEQ Parameters SEP’13 Dec’13 MAR’14 JUNE’14 SEP’14 Growth (%) (%) Deposits 391613 408924 420723 428976 461193 7.51 17.77 Advances 281104 287700 301067 302964 310860 2.61 10.59 (net) Business 672717 696624 721790 731940 772053 5.48 14.77 C-D Rati
Slide 4: Performance Highlights - Overseas Business
PERFORMANCE HIGHLIGHTS- OVERSEAS BUSINESS SEPT’13 MAR’ 14 SEPT’14 y.o.y Growth Parameters USD Mn ` Crs USD Mn ` Crs USD Mn ` Crs (%) Deposits 337.89 20865 354.17 21870 404.24 24962 19.63 Advances 318.04 19639 311.32 19224 345.72 21348 8.70 Gross Income 8.02 495 17.68 1092 10.56 652 31.72 Gross Expen
Slide 5: Performance Highlights - Profitability Q2FY15
PERFORMANCE HIGHLIGHTS- PROFITABILITY-Q2FY15 Amt. in ` Crore y.o.y SEQ Parameters Q2FY14 Q4FY14 Q1FY15 Q2FY15 Growth (%) (%) Total Income 10427 11610 11728 11915 1.59 14.27 Total Expenses 9003 9728 9933 10290 3.07 14.30 Operating Profit 1425 1882 1795 1626 -9.46 14.08 Net Profit 626 611 807 627 -22.
Slide 6: Performance Highlights - Profitability H1 FY15
PERFORMANCE HIGHLIGHTS- PROFITABILITY-H1 FY15 Amt. in ` Crore y.o.y Parameters H1FY14 Mar’14 H1FY15 Growth (%) Total Income 20935 43480 23643 12.93 Total Expenses 17612 36684 20223 14.82 Operating Profit 3323 6796 3421 2.93 Net Profit 1418 2438 1434 1.11 www.canarabank.com Page 6
Slide 7: Performance Highlights - Expanding the Reach
PERFORMANCE HIGHLIGHTS- EXPANDING THE REACH Sept’13 Mar’14 Sept’14 Y-o-Y incr. Branch Network 4216 4755 5514 1298 ATM Strength 4005 6312 7095 3090 Debit Card (In Lakh) 116.03 151.29 184.70 59.18 E-Lounges 132 Population group No. of branches % to total 5507 domestic Rural 1762 32.00% Branches Semi-U
Slide 8: Business Segments
BUSINESS SEGMENTS www.canarabank.com Page 8
Slide 9: Segment Wise Deposits
SEGMENT WISE DEPOSITS Amt. in ` Crore y.o.y Parameters SEP’13 DEC’13 MAR’14 JUN’14 SEPT’14 Growth (%) Total Deposits 391613 408924 420723 428976 461193 17.77 Current 15208 14793 17744 16749 17743 16.67 Saving 80070 79671 85536 81594 86287 7.76 CASA 95278 94465 103279 98343 104030 9.19 CASA (%)Dom 25
Slide 10: Broad Based Credit Growth Y.o.Y
BROAD BASED CREDIT GROWTH Y.o.Y Credit Segments Mar’14 Jun’14 Sept’14 Y.o.Y Y.o.Y Y.o.Y Priority Sector 24% 25% 23% Agriculture 20% 25% 25% MSME 35% 33% 27% MSE 38% 33% 30% Retail 45% 43% 28% Housing (Direct) 48% 38% 37% Vehicle 62% 59% 49% Other Personal Loans 58% 73% 101% www.canarabank.com Page 1
Slide 11: Loans & Advances Segment
LOANS & ADVANCES SEGMENT Amt. in ` Crore y.o.y Parameters SEP’13 DEC’13 MAR’14 JUN’14 SEP’14 Growth (%) Advances (Net) 281104 287700 301067 302964 310860 10.59 Total Priority 88280 93018 97762 103694 108748 23.2 Agriculture 44042 45703 48797 53956 54890 24.6 39995 41787 44268 45202 46705 16.8 - Dire
Slide 12: Achievement Under Mandated Targets – Priority Sector
ACHIEVEMENT UNDER MANDATED TARGETS – PRIORITY SECTOR Achieved the mandated targets in respect of: Agriculture (18.98% against 18% norm) Direct agriculture (16.15% against 13.5% norm) Credit to specified minority communities (18.19% against 15% norm) Mandated Targets Weaker Section (11.45% against 10
Slide 13: Performance of Retail Advances
Performance of Retail Advances Amt. in ` Crore y.o.y Type of SEP’13 DEC’13 MAR’14 JUN’14 SEP’14 SEQ(%) Growth Advances (%) Housing loans 18392 20042 19684 20347 20273 -0.4 10.2 Vehicle loans 2343 2791 3099 3335 3490 4.6 49.0 Education loans 4671 4791 4901 5046 5336 5.7 14.2 Other Personal Loans 4868
Slide 14: Exposure - Infrastructure
EXPOSURE - INFRASTRUCTURE Amt. in ` Crore y.o.y % Share Parameters SEP’13 DEC’13 MAR’14 JUN’14 SEP’14 Growth Total Adv (%) Roads 5271 6529 6980 7242 7517 2.4 42.6 Ports 597 1112 1092 1093 831 0.27 39.2 Airports 1355 1380 1827 1788 1688 0.54 24.6 Power (Generation, Transmission 38707 38414 38294 4216
Slide 15: Exposure - Power Sector & Aviation
EXPOSURE - POWER SECTOR & AVIATION Amt. in ` Crore % Share y.o.y SEQ Parameters SEP’13 DEC’13 MAR’14 JUN’14 SEP’14 Total Growth (%) Adv (%) -Power Generation 18754 19334 20003 21985 22707 7.30 3.28 21.08 -Power Transmission 2171 2286 2215 2166 2205 0.71 1.80 1.57 -Power Distribution 17782 16794 1607
Slide 16: Exposure to Other Sectors
EXPOSURE TO OTHER SECTORS Amt. in ` Crore y.o.y SEP’13 DEC’13 MAR’14 JUN’14 SEP’14 SEQ(%) Growth (%) EXPOSURE TO CAPITAL MARKET Outstanding 2310 2312 2210 2365 2348 -0.7 2.26 EXPOSURE TO NBFCs Total 30692 31293 26163 25474 24589 -3.5 -19.8 Out of above : HFCs 10963 11433 8144 8367 7475 -10.66 -31.8
Slide 17: Financials
FINANCIALS www.canarabank.com Page 17
Slide 18: Profitability - Q2 FY15
PROFITABILITY- Q2 FY15 Amt. in ` Crore y.o.y SEQ Parameters Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Growth (%) (%) Total Income 10427 10935 11610 11728 11915 1.59 14.27 Total Expenses 9003 9344 9728 9933 10290 3.59 14.30 Operating Profit 1425 1591 1882 1795 1626 -9.46 14.08 Provisions 799 1182 1271
Slide 19: Profitability – H1 FY15
PROFITABILITY – H1 FY15 Amt. in ` Crore y.o.y Parameters H1FY14 Mar’14 H1FY15 Growth (%) Total Income 20935 43480 23643 12.93 Total Expenses 17612 36684 20223 14.82 Operating Profit 3323 6796 3421 2.93 Provisions 1905 4358 1987 4.28 Net Profit 1418 2438 1434 1.11 Net Int. Income 4182 8944 4797 14.70
Slide 20: Break-up: Income – Q2 FY15
BREAK-UP : INCOME – Q2 FY15 Amt. in ` Crore y.o.y Growth Parameters Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 SEQ (%) (%) Interest on Advances 6964 7360 7683 7905 8005 1.26 14.94 Interest on Investments 2597 2575 2598 2625 2681 2.14 3.24 Other Interest Income 93 149 259 171 208 21.55 123.29 Total Inte
Slide 21: Break-up: Income – H1 FY15
BREAK-UP : INCOME – H1 FY15 Amt. in ` Crore y.o.y Parameters H1 FY14 Mar’14 H1FY15 Growth (%) Interest on Advances 13414 28458 15910 18.60 Interest on Investments 5079 10251 5306 4.48 Other Interest Income 431 839 379 -12.09 Total Interest Income 18924 39548 21595 14.11 Non – Interest Income 2011 39
Slide 22: Break-up: Expenditure – Q2 FY15
BREAK-UP : EXPENDITURE – Q2 FY15 Amt. in ` Crore y.o.y Growth Parameters Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 SEQ (%) (%) Interest Expenses 7463 7857 8005 8272 8526 3.07 14.24 Interest on Deposits 6923 7311 7476 7702 7964 3.40 15.05 Staff Expenses 933 873 979 1038 1036 -0.22 11.06 Other Op Exp 60
Slide 23: Break-up: Expenditure – H1 FY15
BREAK-UP : EXPENDITURE – H1 FY15 Amt. in ` Crore y.o.y Parameters H1 FY14 Mar’14 H1FY15 Growth (%) Interest Expenses 14742 30603 16798 13.95 Interest on Deposits 13871 28658 15667 12.95 Staff Expenses 1820 3672 2074 13.97 Other Op Exp 1050 2409 1351 28.54 Total Op Exp 2870 6081 3425 19.32 Total Expe
Slide 24: Break-up: Non-Interest Income
BREAK-UP: NON-INTEREST INCOME Amt. in ` Crore Sep’13 Mar’ 14 Jun’14 Sep’14 y.o.y Parameters Q2FY14 Q4FY14 Q1FY15 Q2FY15 Growth(%) Com & Exchange 269 284 209 224 -16.45 -Bancassurance 4 21 11 17 282.18 Profit from Exch. Transactions 118 226 263 206 74.18 Rent – Lockers 4 2 66 4 -8.40 Dividend Income
Slide 25: Break-up: Non-Interest Income
BREAK-UP: NON-INTEREST INCOME Amt. in ` Crore Parameters y.o.y H1FY14 Mar’14 H1FY15 Growth (%) Com & Exchange 469 940 433 -7.62 -Bancassurance 15 47 47 202.27 Profit from Exch. Transactions 296 670 469 58.45 Rent – Lockers 62 67 70 12.58 Dividend Income 28 70 28 -2.06 Recovery in W/Off A/cs 165 425
Slide 26: Break-up: Provisions - Q2FY15
BREAK-UP : PROVISIONS- Q2FY15 Amt. in ` Crore Provisions for Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 NPAs 347 543 802 1125 912 Standard Assets 183 93 112 - - Provisions on 85 157 362 (416) (22) Investments Tax 125 130 180 200 185 Restructured & Others 59 259 (185) 79 (76) Total Provision 799 1182 12
Slide 27: Break-up: Provisions – H1FY15
BREAK-UP : PROVISIONS – H1FY15 Amt. in ` Crore Provisions for H1 FY14 Mar’14 H1FY15 NPAs 790 2135 2037 Standard Assets 273 478 - Provisions on 173 692 (438) Investments Tax 315 625 385 Restructured & Others 354 428 3 Total Provision &Contingency 1905 4358 1987 www.canarabank.com Page 27
Slide 28: Earnings Profile
EARNINGS PROFILE In % Parameters Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15 NIM – Domestic 2.33 2.35 2.40 2.42 2.36 NIM – Global 2.22 2.21 2.27 2.30 2.24 ROAA 0.58 0.37 0.54 0.66 0.51 EPS (` ) (not Annualized) 14.13 9.24 13.65 17.49 13.59 Book Value (` ) 524.94 518.61 522.76 521.68 538.01 ROE (Annualized) 1
Slide 29: Trend in Cost and Yield (%)
TREND IN COST AND YIELD (%) (In %) Sep’13 Dec’13 Mar’14 Jun’14 Sep’14 Cost of Deposits 7.50 7.48 7.42 7.44 7.40 Cost of Funds 6.86 6.82 6.80 6.80 6.82 Yield on Advances 10.63 10.55 10.54 10.69 10.69 Yield on Funds 8.81 8.75 8.79 8.80 8.77 Yield on Investments 7.99 7.99 8.03 8.05 8.04 www.canarabank.
Slide 30: Investment Classification
Investment Classification Amt. in ` Crore % Share % Share % Share Parameters Sep’13 in Total Mar’14 in Total Sep’14 in Total Portfolio Portfolio Portfolio SLR 101301 85.0 108095 85 123612 84 Non SLR 17929 15.0 18758 15 22377 15 Total (Domestic) 119229 100 126853 100 145989 100 Held For Trading 237 0
Slide 31: Asset Quality
ASSET QUALITY www.canarabank.com Page 31
Slide 32: Asset Quality
ASSET QUALITY Amt. in ` Crore Sep’13 Dec’13 Mar’14 June’14 Sep’14 Gross NPA 7475 8074 7570 8160 9164 Gross NPA Ratio (%) 2.64 2.79 2.49 2.67 2.92 Net NPA 6459 6870 5965 6150 7170 Net NPA Ratio (%) 2.30 2.39 1.98 2.03 2.31 Cash Recovery (cumulative) 1923 3135 5494 2019 3213 Cash Recovery of ` 1194 cr
Slide 33: Gross NPA Movement – Quarterly
GROSS NPA MOVEMENT – Quarterly (` in crore) PARTICULARS Sep’13 Mar’14 June’14 Sep’14 Opening Gross NPA (` Crore) 6260 6260 7570 7570 Additions 4209 8443 2595 5773 Sub Total 10469 14703 10165 13343 Less: Reduction (a+b+c+d)) 2994 7134 2005 4179 a) Write Off (Including Addn Prudential Write-off) 749 1
Slide 34: NPA Composition
NPA COMPOSITION Amt. in ` Crore Parameters SEPT’13 DEC’13 MAR’14 JUN’14 SEPT’14 Gross Advances 283024 289833 303431 305723 313431 Sub-Standard 4770 5211 3436 4167 5416 Doubtful 2705 2863 4134 3993 3748 Loss NIL NIL NIL NIL NIL Provision Coverage Ratio (%) 57.77 57.39 60.11 60.10 58.68 www.canarabank
Slide 35: Sector-wise NPA Slippages
SECTOR-WISE NPA SLIPPAGES Amt. in ` Crore Q2 Q3 Q4 Q1 Q2 % to total SECTOR FY14 FY14 FY14 FY15 FY15 Slippages Micro & Small Ent. 278 282 426 631 970 30.5 Agriculture 196 243 200 390 373 11.7 Other Priority Sector 116 125 107 184 200 6.3 Total Priority Sector 590 650 733 1205 1543 48.6 Medium Industr
Slide 36: Sector-wise NPA Outstanding
SECTOR- WISE NPA OUTSTANDING Amt. in ` Crore SECTOR Sep’13 Dec’13 Mar’14 Jun’14 Sep’14 Micro & Small Enterprises 1625 1488 1727 1959 2401 Agriculture 1018 1016 979 1179 1189 Other Priority Segments 368 341 250 358 402 Medium Enterprises 402 379 389 441 727 Large Industries 3146 3420 3279 3067 3386 O
Slide 37: Sectoral Contribution of NPA
SECTORAL CONTRIBUTION OF NPA Amt. in ` Crore Particulars Sep’13 Dec’13 Mar’14 Jun’14 Sep’14 Gross Advances 283024 289833 303431 305723 313431 Gross NPA 7475 8074 7570 8160 9164 Gross NPA % 2.64 2.79 2.49 2.67 2.92 Priority Sector Advances 88280 93018 97762 103694 108748 PS as % to Gross Advances 31.
Slide 38: Restructured Assets
RESTRUCTURED ASSETS Amt. in ` Crore Total Restructured 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 3032 3402 54
Slide 39: Restructured Assets under CDR
RESTRUCTURED ASSETS UNDER CDR Amt. in ` Crore POSITION AS ON A/C Amount JUNE- 2013 84 12314 SEPTEMBER-2013 91 12932 DECECEMBER-2013 94 12185 MARCH-2014 96 10446 JUNE- 2014 94 9224 SEPTEMBER-2014 85 9261 www.canarabank.com Page 39
Slide 40: Sector Wise Restructured Accounts
SECTOR WISE RESTRUCTURED ACCOUNTS Name of the Sector As on 30-09-2014 (` in Crore) Details of restructured Accounts No. of accounts Amount % to cumulatative Outstanding Amt. INFRASTRUCTURE 113 12462 50.75% Of Which Power POWER 61 8843 36.01% State DISCOMS 6533 26.60% State Transmission - - - State G
Slide 41: Amount Restructured During Q2 FY15
AMOUNT RESTRUCTURED DURING Q2 FY15 Amt. in ` Crore No. of Accounts Amount 2402 67 Agriculture 2261 89 MSME 3377 93 Housing / Education loan 15 656 Large Advances 845 25 Others 8900 930 Total www.canarabank.com Page 41
Slide 42: Sector Wise Restructured Advances Outstanding as at Sep 2014
SECTOR WISE RESTRUCTURED ADVANCES OUTSTANDING AS AT SEP 2014 Amt. in ` Crore No. of Accounts Amount Agriculture 10799 430 MSME 7047 1223 Housing / Education loan 10732 356 Large Advances 519 22173 Others 1713 375 Total 30810 24557 www.canarabank.com Page 42
Slide 43: Capital Adequacy – New Basel III Norms
CAPITAL ADEQUACY – NEW BASEL III NORMS CRAR of 10.19% at SEP 2014 Vs. 9% norm CET ratio at 7.13% vs. 5.5% norm Capital Tier I ratio at 7.41% vs. 7% norm Adequacy Ratio Tier II ratio at 2.78% Govt. holding at 69% Paid-up Capital at ` 461.26 crore Sufficient headroom available for raising further capi
Slide 44: Capital Adequacy – Basel III
CAPITAL ADEQUACY – BASEL III Amt. in ` Crore BASEL III Particulars SEPT’13 DEC-13 Mar'14 JUN’14 SEPT’14 Risk- weighted 273066 302155 312226 321819 322093 Assets Tier I Capital 23273 22609 23991 23803 23859 CET: 8.13% CET: 7.13% CET: 7.41% CET: 7.12% CET: 7.13% Tier I Ratio% AT I: 0.39% AT I: 0.35% A
Slide 45: Shareholding Pattern
SHAREHOLDING PATTERN As on SEPT 30, 2014 Govt. 69.00 5.4 0.7 2.7 4.7 6.7 FIIs 10.82 10.8 Insurance 6.67 Companies 69.0 Mutual Funds 4.73 Govt of India FIIs Insurance Companies Residents 5.37 M utual Funds Resident Individuals Banks Individuals Others Banks 0.72 Others 2.69 www.canarabank.com Page 45
Slide 46: Pradhan Mantri Jan Dhan Yojana (PMJDY)
Pradhan Mantri Jan Dhan Yojana (PMJDY) Under PMJDY, the Bank has opened 36.50 lakh accounts so far, with an outstanding balance of 725 crore. The Bank issued 27.18 lakh RuPay cards. The Scheme envisages an Over draft facility of 5000/- in respect of accounts that have satisfactory operation fo
Slide 47: Financial Inclusion (FI)
Financial Inclusion (FI) During the year, the Bank opened 254 branches in financial inclusion/ unbanked villages taking the total tally of FI branches to 790. The Bank has also 479 Ultra Small Branches and engaged 2459 Business Correspondent Agents for financial inclusion activities. Basic Sav
Slide 48: Important Customer-Friendly Technology Initiatives
IMPORTANT CUSTOMER-FRIENDLY TECHNOLOGY INITIATIVES Five MSME Consultancy Services Centres established for providing consultancy services to MSME clientele. Introduced a new credit scoring model for evaluating the eligibility of MSME entrepreneurs to avail finance from banks, first of its kind in
Slide 49: Important Customer-Friendly Technology Initiatives
IMPORTANT CUSTOMER-FRIENDLY TECHNOLOGY INITIATIVES Canara m-Wallet Mobile App released. Canara easyCash Product released for cash transfer to migrant population. Canara P-Serve (Touch Screen Kiosk Application) released. Mobile Banking through National Unified USSD Platform (NUUP) made available.
Slide 50: Expanded Clientele Base
EXPANDED CLIENTELE BASE (In Lakhs) % Y-o-Y Sep’13 Mar’14 Sep’14 Y-o-Y Increase Growth 6.02 Clientele Base 516 555 602 86 17 Crore Strong No. of Deposit Clientele A/cs 456 489 533 77 17 Base No. of Borrowal A/cs 60 66 69 9 15 86 lakhs Clientele added Y-o-Y www.canarabank.com Page 50
Slide 51: Major Awards/Accolades in Q2FY15
MAJOR AWARDS/ACCOLADES IN Q2FY15 The Bank conferred with the following awards during the quarter in recognition of the varied initiatives. Golden Peacock Award for Corporate Governance by the Institutes of Directors, India. Assocham Social Banking Excellence Award 2014 under Public Sector Banks ca
Slide 52: Golden Peacock Award for Corporate Governance
GOLDEN PEACOCK AWARD FOR CORPORATE GOVERNANCE The Award recieved by Shri V. S. Krishna Kumar, Executive Director, from Honourable Theresa May, M P , Secretary of State for the Home Department of U.K www.canarabank.com Page 52
Slide 53: Goals – Mar'15
GOALS – MAR’15 Aims to reach an aggregate business figure of over `8 lakh crore. Plans to take the number of branches to 6000+ and number of ATMs to 10000 by March 2015. Bank is opening 3 more branches in UK and one branch each in Frankfurt (Germany), DFC –Dubai (UAE), Jeddah (Saudi Arabia), w
Slide 54: www.canarabank.com
ete! dao L\ canara Bank www.canarabank.com