Canara Bank · NSE:CANBK
Canara Bank — Q3 FY2020 Earnings Presentation
37 slides from Canara Bank's earnings presentation, Jan 23, 2020
Slide 1: Cover letter to stock exchanges
&canara Bank Ref:: MD&CEO:SD:893/894/11/12::2020 23.01.2020 The Vice President The Vice President The Bombay Stock Exchange 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
Slide 2: Financial Results Q3 FY 2020 Analyst Presentation
Financial Results Q3 FY 2020 Analyst Presentation canarabank canarabankinsta CanaraBankOfficial canarabank Call Canara 1800 425 0018 www.canarabank.com Page 1
Slide 3: Performance Highlights – Q3 FY2020 (Y-o-Y)
Performance Highlights – Q3 FY2020 (Y-o-Y) Net Profit Total Business Gross Advances Total Deposits Improved from Rs. 1063450 cr Rs. 438210 cr Rs. 625240 cr Rs.318 Cr to Rs.330 Cr 5.19 0.64 8.64 3.8 % % % % Key Ratios RoA at RoNW at CoD at YoA at NIM at 0.19% 4.44% 5.63% 8.23% 2.26% Capital Adequacy
Slide 4: Global Business
Global Business Amt. in Rs. Crore Growth % Growth % Parameters Mar’18 Dec’18 Mar’19 Jun’19 Sep’19 Dec’19 Q-o-Q Y-o-Y Global Deposits 524772 575525 599033 610674 609436 625240 2.59 8.64 Global Advances 400843 435423 444216 449290 446217 438210 (1.79) 0.64 (Gross) Global Business 925615 1010948 104324
Slide 5: Domestic & Overseas Business
Domestic & Overseas Business Amt. in Rs. Crore Domestic Business Gr. % Gr. % Parameters Mar’18 Dec’18 Mar’19 Jun’19 Sep’19 Dec’19 Q-o-Q Y-o-Y Domestic Deposits 485994 540213 565917 577439 574110 589925 2.75 9.20 Domestic Advances 371205 412115 419005 423548 418555 413473 (1.21) 0.33 (Gross) Domestic
Slide 6: Business Mix
Business Mix (Rs. in Crore) Growth % Growth % Parameters Mar’18 Dec’18 Mar’19 Jun’19 Sep’19 Dec’19 Q-o-Q Y-o-Y Global Deposits 524772 575525 599033 610674 609436 625240 2.59 8.64 Global Advances (Gross) 400843 435423 444216 449290 446217 438210 (1.79) 0.64 Global Business 925615 1010948 1043249 1059
Slide 7: Credit Portfolio
Credit Portfolio (Rs. in Crore) Growth % Growth % Parameters (Amount O/s) Mar’18 Dec’18 Mar’19 Jun’19 Sep’19 Dec’19 Q-o-Q Y-o-Y I. Priority Sector Credit 1. Agriculture Credit (a) Retail – Agri. Credit 77120 83497 84288 86462 89456 91954 2.79 10.13 (b) Non-Retail - Agri. Credit 5336 6395 6255 6227 6
Slide 8: Credit Portfolio (Contd.)
Credit Portfolio (Contd.) (Rs. in Crore) Gr % Gr % Parameters Mar’18 Dec’18 Mar’19 Jun’19 Sep’19 Dec’19 Q-o-Q Y-o-Y a. Total Priority and Retail Credit 222216 252981 250076 259240 264304 279015 5.57 10.29 b. Staff Loans 4773 5490 6036 6218 6394 6582 2.94 19.89 c. Total Corporate Credit 173854 176952
Slide 9: Priority Sector Credit for ANBC
Priority Sector Credit for ANBC (Rs. in Crore) Growth % Growth % Parameters Mar’18 Dec’18 Mar’19 Jun’19 Sep’19 Dec’19 QoQ YoY Priority Sector Advances- ANBC Priority Sector Advance O/s 183313 200421 195126 207370 209124 216353 3.46 7.95 (Add) RIDF & Others 2313 1915 1886 1844 1745 1579 (9.51) (17.55
Slide 10: Priority Sector Credit Outstanding
Priority Sector Credit Outstanding (Rs. in Crore) Growth Growth Regulatory Parameters Mar’18 Dec’18 Mar’19 Jun’19 Sep’19 Dec’19 % Q o Q % Y o Y Requirement ANBC 321749 341366 366197 374884 390894 394100 0.82 15.45 -- Priority Sector 171906 185836 176338 197190 192341 196404 2.11 5.69 -- Advances for
Slide 11: Retail Credit Outstanding
Retail Credit Outstanding (Rs. in Crore) Growth % Growth % Parameters Mar’18 Dec’18 Mar’19 Jun’19 Sep’19 Dec’19 Q-o-Q Y-o-Y (a) Housing Loans 27572 32335 33581 34888 36611 39078 6.74 20.85 (b) Vehicle Loans 6739 8501 9446 9787 10077 10494 4.14 23.44 (c) Education Loan 8438 8913 8859 9036 9326 9416 0
Slide 12: Infrastructure Credit – Sector Wise
Infrastructure Credit – Sector Wise (Rs. in Crore) Outstanding balance % to Total Growth % Growth % Parameters Advances Mar’18 Dec’18 Mar’19 Jun’19 Sep’19 Dec’19 Dec’19 Q-o-Q Y-o-Y (A) Total Exposure to Power 31115 28912 30389 30172 32915 30102 7.4 (8.5) 4.1 (i) Central Govt. Undertakings 2377 3442
Slide 13: Infrastructure Credit - Power
Infrastructure Credit - Power (Rs. in Crore) Outstanding balance Parameters Mar'18 Dec'18 Mar'19 Jun'19 Sep’19 Dec’19 To To To To To To To To To To To To Central/ Central/ Central/ Central/ Central/ Central/ Other Other Other Other Other Other State State State State State State Sectors Sectors Sect
Slide 14: Rating profile of overall loan book
Rating profile of overall loan book External Rating Distribution of Domestic Advances above Rs. 5 crore (% of total Advances above Rs 5 crore) Sep-19 Dec-19 A- and above 49 47 BBB+, BBB, BBB- 11 14 BB and below 17 16 Unrated 23 23 Of which outstanding in Govt accounts 17 20 Total 100 100 canarabank
Slide 15: Investments
Investments (Rs. in Crore) HTM 64.17% Category Mar’18 Dec’18 Mar’19 Jun’19 Sep’19 Dec’19 HTM 100086 93316 88627 87286 101555 104619 AFS 35.73% AFS 42463 57095 61611 64332 57433 58252 HFT 204 247 222 123 148 173 TOTAL 142753 150658 150460 151741 159136 163044 HFT 0.11% (Domestic) Modified Duration (D
Slide 16: Income & Expenditure
Income & Expenditure (Rs. in Crore) Quarterly FY2018 FY2019 Growth Q4 Q3 Q4 Q1 Q2 Q3 Growth Growth (Annual) (Annual) % y.o.y FY2018 FY2019 FY2019 FY2020 FY2020 FY2020 % q.o.q % y.o.y Total Interest Income 10223 12189 12138 12201 12392 12295 (0.8) 0.9 41252 46810 13.5 Total interest Expenses 7236 837
Slide 17: Interest & Non-Interest Income
Interest & Non-Interest Income (Rs. in Crore) Quarterly FY2018 FY2019 Growth Parameters Q4 Q3 Q4 Q1 Q2 Q3 Growth %Growth % (Annual) (Annual) % y.o.y FY2018 FY2019 FY2019 FY2020 FY2020 FY2020 q.o.q y.o.y Interest Income Interest on Advances 7252 9162 8630 9099 9185 9069 (1.3) (1.0) 29096 34319 18.0 I
Slide 18: Expenses
Expenses (Rs. in Crore) Quarterly FY2018 FY2019 Growth Parameters Q4 Q3 Q4 Q1 Q2 Q3 Growth Growth (Annual) (Annual) % y.o.y FY2018 FY2019 FY2019 FY2020 FY2020 FY2020 % q.o.q % y.o.y Interest Expenses (i) Interest Paid on 6716 7694 8075 8406 8604 8303 (3.5) 7.9 27136 30099 10.9 Deposits (ii) Other In
Slide 19: Key Ratios
Key Ratios (%) Mar’18 Dec’18 Mar’19 Jun’19 Sep’19 Dec’19 Ratios Quarterly Cumulative Quarterly Cumulative Quarterly Cumulative Quarterly Cumulative Quarterly Cumulative Quarterly Cumulative Cost of Funds 5.11 5.17 5.50 5.21 5.60 5.24 5.28 5.28 5.25 5.25 5.14 5.16 Cost of Deposits 5.42 5.60 5.77 5.60
Slide 20: Asset Quality
Asset Quality (Rs. in Crore) Parameters Mar’18 Dec’18 Mar’19 Jun’19 Sep’19 Dec’19 Gross NPA 47468 44621 39224 39399 38711 36645 Gross NPA (%) 11.84 10.25 8.83 8.77 8.68 8.36 Net NPA 28542 26591 22955 23150 22090 21338 Net NPA (%) 7.48 6.37 5.37 5.35 5.15 5.05 Provision Coverage Ratio (%) 58.06 62.54
Slide 21: NPA Movement
NPA Movement (Rs. in Crore) 2018-19 FY 2019-20 Particulars Q1 Q2 Q3 Q4 2018-19 Q1 Q2 Q3 Opening Balance 47468 44660 45233 44621 47468 39224 39399 38711 Additions 4205 3697 5109 2469 15480 3676 2602 4816 Reductions 7013 3124 5721 7866 23724 3501 3290 6882 Cash Recovery-Ledger 2535 938 1944 966 6383 1
Slide 22: Sector Wise Classification of NPAs
Sector Wise Classification of NPAs (Rs. in Crore) Dec’19 Sectors Mar’18 Dec’18 Mar’19 Jun’19 Sep’19 Dec’19 Gross % to Gross Advance Adv I. NPA under Priority Sector 1. Agriculture (a) Retail Agri. Credit 3457 4039 4516 4818 5015 5043 91954 5.48 (b) Non-Retail - Agri. Credit 394 503 432 443 491 475 7
Slide 23: NPAs under Corporate Sector- Industry Wise Classification
NPAs under Corporate Sector- Industry Wise Classification (Rs. in Crore) Advance O/s Sector/Scheme Mar’18 Dec’18 Mar’19 Jun’19 Sep’19 Dec’19 (Dec-19) Iron & Steel 11397 8439 5698 5132 5143 1381 16152 Engineering 1149 25 22 65 57 29 10127 Textile 1972 1474 873 907 916 868 13730 Infra -Energy 5698 470
Slide 24: NBFC Exposure & NPA
NBFC Exposure & NPA (Rs. in Crore) Mar’18 Dec’18 Mar’19 Jun’19 Sep’19 Dec’19 Total Fund Based exposure Total NBFC (Fund Based) 37676 49106 52943 53320 51830 42842 Out of which : HFCs 13508 20538 21635 20211 20510 14111 Private 19122 21543 21189 21851 20159 18179 Public 5046 7025 10119 11258 11161 10
Slide 25: Special Mention Accounts (SMA)
Special Mention Accounts (SMA) (Rs. in Crore) SMA Position of the Bank (Rs. 5 Cr and above) Sep-19 Dec-19 Outstanding Outstanding % of total % of total (Rs 5 crore (Rs 5 crore Advances Advances and above) and above) SMA 2 7962 1.56 5228 1.04 SMA 1 3564 0.70 2705 0.54 SMA 0 13849 2.71 10692 2.13 TOTA
Slide 26: Accounts referred to NCLT / NCLT Resolution Status
Accounts referred to NCLT No. of Book Liab. Provisions made Provision Accounts (Amt in Cr) (Amt in Cr) coverage (for NCLT A/cs) 1st List of RBI 12 5397 5327 99% 2nd List of RBI 16 4823 4060 84% Others 236 23843 17712 74% Total 264 34063 27099 80% NCLT Resolution Status Recovery so far as at 31.12.20
Slide 27: Capital Funds (Basel III)
Capital Funds (Basel III) (Rs. in Crore) Min. Regulatory Particulars Mar’18 Dec’18 Mar’19 Jun’19 Sep’19 Dec’19 Requirement Common Equity Tier-1 (CET-I) 33455 33515 29300 29759 36523 36910 Additional Tier - 1 2769 2786 2551 2601 2716 2719 Tier – II 10280 10165 10082 10102 10093 10091 Capital 46504 46
Slide 28: Shareholding Pattern
Shareholding Pattern As on Dec 31st, 2019 Resident Staff Others Individuals 2.1% 1.6% FIIs/FPIs 2.7% 3.0% Mutual Funds 5.3% Insurance Companies 6.8% Government 78.5% canarabank canarabankinsta CanaraBankOfficial canarabank Call Canara 1800 425 0018 www.canarabank.com Page 27
Slide 29: Enhancing Digital Footprints
Enhancing Digital Footprints Credit Card Debit Card 427 6.64 5.75 386 4.98 5.31 4.78 352 351 317 3.38 3.69 3.97 4.48 5.10 427 281 190 209 226 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 No. of Credit cards (Lakhs) Card Spend (Rs Billion) No. of Debit Cards (Lakh) Card Spend
Slide 30: Customer-friendly Technology Initiatives in Q3FY2020
Customer-friendly Technology Initiatives in Q3FY2020 New Facilities added in Mobile Banking: Lifestyle services -Flight & Bus booking, Recharge (Prepaid, Postpaid & DTH) Card-less Cash Withdrawal in ATM Mobile Banking services for NRI customers introduced. Additional facilities introduced
Slide 31: Expanding the Reach
Expanding the Reach 6328 Domestic Banking Population group Dec’18 Mar’ 19 Dec’19 % to total (of Regular Banking Outlets) Outlets. Rural 1819 1821 1825 28.8 5 overseas branches at Semi-Urban 2000 2003 2007 31.7 Rural + Semi-urban 3819 3824 3832 60.6 Johannesburg New York Urban 1202 1204 1224 19.3 Lon
Slide 32: Expanded Clientele Base
Expanded Clientele Base (In Lakh) Y-o-Y Y-o-Y Dec’ 18 Mar’ 19 Dec’19 Increase Growth (%) Clientele 859 873 913 54 6.3 9.13 Crore Clientele No. of Deposit A/cs 768 780 815 47 6.1 Base No. of Borrowal A/cs 91 93 98 7 7.7 54 lakh Clientele accounts added y-o-y. canarabank canarabankinsta CanaraBankOffi
Slide 33: Profit after tax of Subsidiaries, Associates & JVs
Profit after tax of Subsidiaries, Associates & JVs (Rs. in Crore) Ownership Sl. Q3 Q4 Q1 Q2 Q3 Profit after tax (Quarterly) Interest as No FY2019 FY2019 FY2020 FY2020 FY2020 on Dec'19 Subsidiaries 1 Canbank Financial Services Ltd 100% (0.10) (0.31) (0.11) (0.40) (0.29) 2 Canbank Venture Capital Fund
Slide 34: Recent Developments
Recent Developments Post the infusion of Rs. 6571 Crores capital by Govt. of India under GOI Recapitalisation plan in September 2019, 27,69,88,576 fresh equity Capital shares were issued and allotted on preferential allotment basis to GoI infusion by at Rs.237.23 per equity share. GoI This has led t
Slide 35: Amalgamation of Syndicate Bank into Canara Bank
Amalgamation of Syndicate Bank into Canara Bank In-principle approval was accorded on 13.11.2019 by the Alternative Mechanism (AM) set up by Govt. Of India for the proposed amalgamation of Syndicate bank into Canara Bank with Canara Bank as the Transferee Bank and Syndicate Bank as Transferor Bank.
Slide 36: Focus Areas - FY 2019-20
Focus Areas - FY 2019-20 Thrust on business expansion and augmenting market share. Balanced growth in advances with proper mix of Retail & Corporate Credit. Improving retail business and shoring up CASA through specific strategies and enhanced customer service. Goals Focus on NPA management with str
Slide 37: Thank You
Thank You canarabank canarabankinsta CanaraBankOfficial canarabank Call Canara 1800 425 0018 www.canarabank.com Page 36