Canara Bank · NSE:CANBK
Canara Bank — Q2 FY2021-22 Earnings Presentation
47 slides from Canara Bank's earnings presentation, Oct 26, 2021
Slide 1: Exchange filing cover letter
<).> 0 1 ,�I <1.<t.> •111 'f •t• .. ,, .. I • ,,_., < :< l llcl ,,a l-\<111 k � A " , .. • , ho o , ._ t • .. Ref:: SD:353/354/11/12::2021 26.10.2021 The Vice President The Vice President BSE Ltd. Listing Department Phiroze Jeejeebhoy Towers National Stock Exchange of India Ltd Dalal Street EXCHANGE
Slide 2: High-tech Banking: Financial Results Q2 FY 2021-22
High-tech Banking Multi - dimensional excellence Financial Results: Q2(FY 2021-22) Page 1
Slide 3: Performance Highlights
200.22% y-o-y 12.17% 20.02% y-o-y Net Profit y-o-y Fee Based 1,333Cr SB Income 2,90,469 Cr 1,463 Cr 12.04% 37.54% y-o-y y-o-y Non interest CASA Income 3,34,463 Cr 4,268Cr Global Business Performance surpassed 17,15,000 160 bps Highlights 96 bps y-o-y Cr y-o-y CRAR PCR 14.37% 82.44% 21 bps 188 bps y-
Slide 4: Key Highlights
Key Highlights ₹ in Crore Gross NPA Treasury 8.42% Income q-o-q decline 1,754 8 bps y-o-y growth Domestic 95.10% Business Cash Retail Credit recorded a Recovery 1,19,138 growth of 3717 y-o-y growth 1,05,149 y-o-y growth 10.46% y-o-y 90.32% Housing Loan Current Deposit 67,386 43,994 y-o-y growth y-o-
Slide 5: Contents
Contents Business Performance 6-13 Financial Performance 17-23 Investment 25-26 Asset Quality 28-35 Capital & Share Holding 37-38 Expanding Reach – Offline & Online 40-42 Subsidiaries, Associates & Joint Ventures 43-43 Goals for March 2022 44-44 Page 4
Slide 6: Business Performance
Financial Business Performance Performance Page 5
Slide 7: Business Performance
Business Performance ₹ in Crore Growth (%) Parameters Sep’20 Mar’21 Jun’21 Sep’21 Q-o-Q Y-o-Y Global Gross Business 1597747 1686030 1706422 1719350 0.76 7.61 Domestic Gross Business 1538179 1615864 1631717 1643328 0.71 6.84 Overseas Gross Business 59568 70166 74705 76022 1.76 27.62 Global Deposits 9
Slide 8: Domestic Deposit Mix
Domestic Deposit Mix ₹ in Crore Growth (%) Parameters Sep’20 Mar’21 Jun’21 Sep’21 Q-o-Q Y-o-Y Saving Deposits 258946 281525 289933 290469 0.18 12.17 Current Deposits 39583 49131 42107 43994 4.48 11.14 CASA Deposits 298529 330656 332040 334463 0.73 12.04 Term Deposit 612455 632649 638441 645874 1.16
Slide 9: Domestic Deposit & Retail Credit Mix
Domestic Deposit & Retail Credit Mix ₹ in Crore Parameters Sep’20 Jun’21 Sep’21 CASA 298529 332040 334463 CASA increased by Rs 35,934 Cr y-o-y, improving the CASA Ratio by 135 bps Housing Loan 59000 65136 67386 Housing Loan increased by Rs 8386 Cr y-o-y Retail Loans 107861 115291 119138 Retail
Slide 10: Advances Mix
Advances Mix ₹ in Crore RAM: 56.90 Sep‘21 Retail Loans Growth (%) 17.35 Corporate & Parameters Sep’20 Jun’21 Sep’21 others Agriculture & 43.10 Allied Q-o-Q Y-o-Y 23.53 MSME 16.02 Retail 107861 115291 119138 3.34 10.46 Agriculture & Allied 141880 156801 161632 3.08 13.92 RAM: 55.39% MSME 109719 10695
Slide 11: Achievement Under Mandated Targets – Priority Sector
Achievement Under Mandated Targets – Priority Sector Achieved the mandated norms in respect of: Total Priority (46.27 % to ANBC against 40% norm, 53.01% prior to PSLC) Mandated Norms under Agriculture (20.49% to ANBC against 18% norm, 27.23% prior to PSLC) Priority Sector Small and Marginal Fa
Slide 12: Retail Credit
Retail Credit ₹ in Crore HOUSING LOAN Retail Loans 67386 Vehicle Loans 65136 119138 13697 59000 107861 12638 Sep'20 Sep'21 Sep'20 Jun'21 Sep'21 Sep'20 Sep'21 ₹ in Crore Growth (%) Parameters Sep’20 Jun’21 Sep’21 Q-o-Q Y-o-Y Housing Loans 59000 65136 67386 3.45 14.21 Vehicle Loans 12638 13433 13697 1
Slide 13: Industry Credit
Industry Credit ₹ in Crore Infrastructure 91990 (13.39%) Non-Banking Financial Companies (NBFC) 82142 (11.96%) Textiles 17517 (2.55%) Commercial Real Estate 15948 (2.32%) Iron and steel 14802 (2.16%) Food Processing 13051 (1.90%) Engineering 12105 (1.76%) Construction 8596 (1.25%) Petroleum,coal pro
Slide 14: COVID – 19 Credit Support
COVID – 19 Credit Support Guaranteed Emergency Credit Line No. of Loans – 454200 Total Amount disbursed – Rs 11044 Cr PM SVANidhi No. of Loans – 169912 Total Amount disbursed – Rs 169 Cr Health Care Sector No. of Loans Sanctioned – 87138 Total Amount Sanctioned – Rs 5348 Cr No of Loans Disbursed - 8
Slide 15: Rating Profile
Rating Profile External Rating - Wise Distribution of Domestic Advances above Rs. 25 crore External Rating - Wise (% of Total rated loan book above Rs 25 crore) Distribution of Domestic Sep’20 Jun’21 Sep’21 Corporate Advances External Outstanding % Share Outstanding % Share Outstanding % Share Ratin
Slide 16: Rating Profile of Standard NBFC Exposure
Rating Profile ₹ in Crore Rating Profile of Standard NBFC Exposure Parameters Sep’20 Jun’21 Sep’21 Rating Exposure % of share Exposure % of share Exposure % of share A & above 59215 94.54 60620 94.45 63398 98.65 BBB 3267 5.22 426 0.66 674 1.05 BB & Below 150 0.24 3137 4.89 193 0.30 Total 62632 100.0
Slide 17: Financial Performance
Financial Performance Page 16
Slide 18: Total Income
Total Income ₹ in Crore Quarterly Parameters Growth Growth Sep’20 Mar’21 Jun’21 Sep’21 Q-o-Q(%) Y-o-Y(%) Interest Income 17691 16316 16785 17063 1.66 (3.55) Interest on Advances 13094 11747 12026 12164 1.15 (7.10) Interest on Investments 4185 4061 4163 4218 1.32 0.79 Other Interest Income 412 508 59
Slide 19: Non-Interest Income
Non-Interest Income ₹ in Crore Quarterly Parameters Growth Growth Sep’20 Mar’21 Jun’21 Sep’21 Q-o-Q(%) Y-o-Y(%) Fee Based Income (i+ii+iii) 1219 1770 1337 1463 9.42 20.02 Commission Exchange & Brokerage (i) 306 322 263 263 -- (14.15) Service Charges (ii) 740 896 640 804 25.63 8.65 Miscellaneous (iii
Slide 20: Total Expense
Total Expense ₹ in Crore Quarterly Parameters Growth Growth Sep’20 Mar’21 Jun’21 Sep’21 Q-o-Q(%) Y-o-Y(%) Interest Expenses 11386 10727 10625 10790 1.55 (5.23) Interest Paid on Deposits 10586 9973 9882 9984 1.03 (5.69) Other Interests 800 754 743 806 8.48 0.75 Operating Expenses 4811 5094 4834 4937
Slide 21: Financials at a Glance
Financials at a Glance ₹ in Crore Quarterly Parameters Growth Growth Sep’20 Mar’21 Jun’21 Sep’21 Q-o-Q(%) Y-o-Y(%) Total Interest Income 17691 16316 16785 17063 1.66 (3.55) Total Interest Expenses 11386 10727 10625 10790 1.55 (5.23) Net Interest Income 6305 5589 6160 6273 1.83 (0.51) Total Income 20
Slide 22: Provisions
Provisions ₹ in Crore Quarterly Parameters Growth Sep’20 Mar’21 Jun’21 Sep’21 Growth Y-o-Y (%) Q-o-Q(%) Total Provision 4153 4210 4304 4271 (0.76) 2.85 NPAs 3533 4428 2335 2678 14.69 (24.20) Standard Asset 41 (989) 0 (12) -- -- Non Performing Investment 174 (244) (220) 220 -- 26.44 Income Tax 178 55
Slide 23: Key Ratios
Key Ratios (%) Sep’20 Mar’21 Jun’21 Sep’21 Ratios Quarterly Cumulative Quarterly Cumulative Quarterly Cumulative Quarterly Cumulative Return on Assets 0.16 0.16 0.36 0.23 0.41 0.41 0.47 0.43 Return on Net-worth 4.82 4.64 10.76 6.71 11.53 11.53 12.36 11.58 Cost to Income 51.14 50.19 49.39 49.55 46.86
Slide 24: Key Ratios – Q2 FY22
Key Ratios – Q2 FY22 Cost Of Deposits (%) Cost Of Funds (%) Yield on 4.75 4.37 Advances(%) 4.52 4.09 8.06 4.02 3.71 3.67 3.98 7.33 7.09 7.12 Sep'20 Mar'21 Jun'21 Sep'21 Sep'20 Mar'21 Jun'21 Sep'21 Sep'20 Mar'21 Jun'21 Sep'21 Yield on Funds(%) Yield on NIM(%) 6.69 Investments(%) 2.82 6.26 6.96 2.76 6
Slide 25: Investments
Investments Page 24
Slide 26: Investment Portfolio
Investment Portfolio ₹ in Crore Sl. Parameters Sep’20 Jun’21 Sep’21 (1) Domestic Investments 265337 274865 286227 (a) SLR 219265 232856 243153 (b) Non SLR 46072 42009 43074 SLR as % to Dom. Investments 82.64 84.72 84.95 (i) Held To Maturity (HTM) 198694 206051 213465 (ii) Available For Sale (AFS) 66
Slide 27: Non SLR Portfolio
Non SLR Portfolio ₹ in Crore % Share Y-o-Y Variation Parameters Sep’20 Jun’21 Sep’21 (Sep’21) Amount % PSU Bonds 4617 4450 4425 10.27 (192) (4.16) Corporate and Other Bonds 8962 7792 9423 21.88 461 5.14 Special Govt. Sec excl. Recap Bonds 3867 2589 2590 6.01 (1278) (33.05) CG Recap. Bond 18238 18238
Slide 28: Asset Quality
Asset Asset Quality Quality Page 27
Slide 29: Asset Quality Ratios
Asset Quality Ratios ₹ in Crore Parameters Sep’20 Jun’21 Sep’21 Gross NPA 53438 58215 57853 Gross NPA (%) 8.23 8.50 8.42 Net NPA 21063 22434 20862 Net NPA (%) 3.42 3.46 3.21 Provision Coverage Ratio (%) 81.48 81.18 82.44 Credit Cost (%) 2.43 2.04 1.98 Slippage Ratio (%) 0.07 0.69 1.04 Page 28
Slide 30: Movement of NPA
Movement of NPA ₹ in Crore Parameters Sep’20 Jun’21 Sep’21 FY 2020-21 NPA as at the beginning of the period 57526 60288 58215 61127 -Cash Recovery towards Book Liability(i) 1504 1598 3002 7185 -Up-gradation (ii) 657 2292 2671 2407 -Write Off (iii) 2342 2574 1585 9132 Total Reduction (i+ii+iii) 4503
Slide 31: NPA Classification: Sector Wise
NPA Classification: Sector Wise ₹ in Crore Parameters Sep’20 Jun’21 Sep’21 Advance O/s GNPA (%) (Sep’21) Domestic Gross NPA 47498 52703 52494 662991 7.92 Global Gross NPA 53438 58215 57853 686813 8.42 Retail 1855 1765 1605 119138 1.35 Agriculture & Allied 8504 9239 9236 161632 5.71 MSME 10476 15590
Slide 32: Retail Sector NPA
Retail Sector NPA ₹ in Crore Advance Parameters Sep’20 Jun’21 Sep’21 O/s GNPA (%) (Sep’21) Total Retail NPA 1855 1765 1605 119138 1.35 Housing Loans 784 745 656 67386 0.97 Vehicle Loans 269 288 265 13697 1.93 Education Loan 185 216 223 12719 1.75 Other Personal Loans 617 516 461 25336 1.82 Page 31
Slide 33: NPA Classification: Industry wise
NPA Classification : Industry wise ₹ in Crore Sector/Scheme Sep’20 Jun’21 Sep’21 GNPA (%) Infrastructure 7775 7761 8960 9.74 Iron & Steel 1581 1005 961 6.49 Textile 1013 1349 1282 7.32 Food Processing 1605 1294 1154 8.84 Engineering 318 757 828 6.84 Page 32
Slide 34: Resolution Framework for COVID-19
Resolution Framework for COVID-19 ₹ in Crore Sector No. of accounts Liability Total amount received Out of (C), total Recovery restructured under RBI (B) subsequent to prepaid amount, Percentage(%) Resolution Framework in restructure (C) i.e, paid before actuals (A) due date RESOLUTION FRAMEWORK COV
Slide 35: Special Mention Accounts (SMA)
Special Mention Accounts (SMA) ₹ in Crore SMA Position of the Bank (Rs. 5 Cr and above) Sep’20 Sep’21 No of % to Gross % to Gross Parameters Outstanding No of Accounts Outstanding Accounts Advances Advances SMA 2 133 2881 0.37 240 5519 0.70 SMA 1 117 2276 0.29 139 2197 0.28 TOTAL SMA 1 & 2 250 5157
Slide 36: Accounts referred to NCLT
Accounts referred to NCLT ₹ in Crore As on 30.09.2020 As on 30.09.2021 Parameters No of Provision No of Book Provision Book Liability Provision Coverage Provision Coverage Accounts Accounts Liability 1st List - RBI 7 7492 7492 100% 7 3053 3053 100% 2nd List – RBI 17 6227 6180 99% 14 5563 5519 99% To
Slide 37: Capital and Shareholding
Capital and Shareholding Page 36
Slide 38: Capital Funds (Basel III)
Capital Funds (Basel III) ₹ in Crore Parameters Sep’20 Jun’21 Sep’21 CRAR % Tier I 49562 54278 59729 14.37 Common Equity 42631 46465 52843 13.36 12.77 Additional Tier I 6931 7813 6886 2.96 Tier II 16769 15854 15497 3.02 3.23 Total (Tier I+II) 66331 70132 75226 1.32 Risk-weighted Assets 519585 1.49 5
Slide 39: Shareholding Pattern as on Sep 30, 2021 & Capital Raised
Shareholding Pattern as on Sep 30, 2021 & Capital Raised Staff Others 7.58 Resident Individuals1.05 10.65 FII/FPIs 5.05 Mutual Funds 3.70 Insurance Companies 9.04 Government of India 62.93 Equity Capital Raised during the Quarter QIP – Rs 2500 Cr Page 38
Slide 40: Expanding Reach
Expanding Expanding Reach Reach Page 39
Slide 41: Digital banking channels
8 CANDI Mobile Banking App * Secure your card (ON/OFF) * Cardless cash withdrawal vias S ae Credit Card ff Banking + Interest-free credit period ", Multi-dimensional * Earn reward points on spends y excellence... Debit Card * Faster payments at PoS * Shop & pay online Internet Banking Banking at you
Slide 42: Expanding the reach
Expanding the reach Parameters Sep’20 Jun’21 Sep’21 General Branches(a) 9875 9235 9057 Specialised Branches(b) 620 642 743 Total Domestic Branches(a+b) 10495 9877 9800 Overseas Branches 5 4 4 BC Points 9422 9053 8938 Total Banking Outlets 19922 18934 18742 ATM 12423 11819 10988 Recycler 600 1305 137
Slide 43: Financial Inclusion
Financial Inclusion ACCOUNTS OPENED UNDER PMJDY TRANSACTIONS THROUGH BC CHANNEL (IN LACS) 11881 139 10577 137 SEP'20 SEP'21 SEP'20 SEP'21 Amount of Transactions ( Rs in Cr) DEPOSITS MOBILISED UNDER PMJDY (RS IN CR) 6089 ENROLMENTS UNDER SOCIAL SECURITY SCHEMES Sep’20 (Q) Sep’21(Q) 5589 Pradhan Mantr
Slide 44: Subsidiaries, Associates & Joint Ventures
Subsidiaries, Associates & Joint Ventures ₹ in Crore Profit after Tax(Our Share) Name of the Entity Holding(%) Sep’20 Sep’21 SUBSIDIARIES Canara Robeco Asset Management Company Ltd. 51 6.83 12.16 Canara Bank Securities Ltd. 100 7.83 9.79 Canara Bank (Tanzania) Ltd. 100 2.73 4.45 Canbank Computer Ser
Slide 45: Goals for Mar 2022
Goals for Mar 2022 ₹ in Crore Guidance Parameters Actuals as on 30.09.2021 (31.03.2022) Deposits Growth (Global) 8.20% 8.83% Advances Growth (Global) 7.50% 5.83% Business Growth (Global) 7.90% 7.61% NIM (Global) (Annualized) 2.75% 2.72% CASA (Domestic CASA to Domestic Deposit) 36.50% 34.11% Gross NP
Slide 46: 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 47: 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 46