Canara Bank · NSE:CANBK
Canara Bank — Q1 FY2022-23 Earnings Presentation
48 slides from Canara Bank's earnings presentation, Jul 25, 2022
Slide 1: Cover letter to stock exchanges
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Slide 2: Financial Results: Q1 (FY 2022-23)
High-tech Banking Multi - dimensional excellence Financial Results: Q1 (FY 2022-23) Page 1
Slide 3: Performance Highlights
Performance Highlights Net Profit Operating 71.79% ₹ in Crore Profit y-o-y Non 20.53% 2022 Interest Global Income y-o-y Business 24.55% Net 6,606 Interest Gross 11.45% y-o-y y-o-y 5,175 Income Advances 10.15% 14.47% 19,01,776 y-o-y PCR y-o-y RAM Credit 6,785 84.51% 7,83,654 14.85% y-o-y y-o-y 333 bp
Slide 4: Key Highlights
Key Highlights ₹ in Crore 26.20% y-o-y 16.03% Gold Loan 11.56% y-o-y 1,00,332 y-o-y 17.95% 480 bps Housing Retail Credit Loan y-o-y y-o-y 1,28,615 Fee Based 210 bps 75,578 155 bps RoE Income y-o-y y-o-y 16.33% 1,577 CRAR decline 14.91% Cost to Income 44.76% Page 3
Slide 5: Contents
Contents Business Performance 6-14 Financial Performance 16-23 Investment 25-26 Asset Quality 28-33 Capital & Share Holding 35-36 Environmental, Social & Governance 38-38 Distribution Network 40-43 Subsidiaries, Associates & Joint Ventures 44-44 Goals for Mar 2023 vs Actuals for Jun 2022 45-45 Page
Slide 6: Business Performance
Business Performance Page 5
Slide 7: Business Performance
Business Performance ₹ in Crore Growth (%) Parameters Jun’21 Mar’22 Jun’22 Q-o-Q Y-o-Y Global Gross Business 1706422 1827556 1901776 4.06 11.45 Domestic Gross Business 1631717 1738813 1801047 3.58 10.38 Overseas Gross Business 74705 88743 100729 13.51 34.84 Global Gross Advances 684585 741147 783654
Slide 8: Domestic Deposit Mix
Domestic Deposit Mix ₹ in Crore Growth (%) Parameters Jun’21 Mar’22 Jun’22 Q-o-Q Y-o-Y CASA Deposits 332040 368732 361125 (2.06) 8.76 Term Deposits 638441 659035 691782 4.97 8.35 Retail Term Deposits 424946 441777 451083 2.11 6.15 Total Domestic Deposits 970481 1027767 1052907 2.45 8.49 Global Depos
Slide 9: Advances Mix
Advances Mix ₹ in Crore RAM: 56% Jun’22 Retail Loans Growth (%) 16% Parameters Jun’21 Mar’22 Jun’22 Corporate & others Agriculture & Allied 44% 24% Q-o-Q Y-o-Y MSME RAM Credit 379050 421258 435346 3.34 14.85 16% Retail 115291 126277 128615 1.85 11.56 RAM: 55% Agriculture & Allied 156801 175955 18568
Slide 10: Exceeded the Mandated Targets under Priority Sector
Exceeded the Mandated Targets under Priority Sector Achieved the mandated norms in respect of: Total Priority (51.32% to ANBC against 40% norm) Agriculture (24.22% to ANBC against 18% norm) Mandated Norms under Small and Marginal Farmers (18.20% to ANBC against 9.50% norm) Priority Sector No
Slide 11: Retail Credit
Retail Credit ₹ in Crore Retail Loans Housing Loans 128615 75578 11.56% 16.03% 115291 65136 Jun'21 Jun'22 Jun'21 Jun'22 Page 10
Slide 12: Gold Loan Portfolio
Gold Loan Portfolio ₹ in Crore Gold Loan crossed 1,00,000 Cr milestone 100332 92054 Recorded Y-o-Y 85898 growth of 26.20% 81887 79499 Recorded Q-o-Q Jun’21 Sep’21 Dec’21 Mar’22 Jun’22 growth of 8.99% Outstanding Amount Page 11
Slide 13: Industry Credit
Industry Credit ₹ in Crore Growth (in %) Sector/Scheme Jun’21 Mar’22 Jun’22 Q-o-Q Y-o-Y Infrastructure 88384 94677 105194 11.11 19.02 NBFCs 88647 106698 122307 14.63 37.97 Textile 17472 18991 18705 (1.51) 7.06 Iron & Steel 16807 13850 16473 18.94 (1.99) Commercial Real Estate 14081 16516 15414 (6.67
Slide 14: Rating Profile
Rating Profile ₹ in Crore External Rating - Wise Distribution of Domestic Advances above Rs. 25 crore A & above BBB BB & below (% of Total rated loan book above Rs 25 crore) Jun’21 Mar’22 Jun’22 11% External Outstanding % Share Outstanding % Share Outstanding % Share Rating 11% A and 146722 69 17538
Slide 15: Rating Profile
Rating Profile Rating Profile of Standard NBFC Domestic Exposure Jun’21 Mar’22 Jun’22 External Rating Exposure % Share Exposure % Share Exposure % Share A and above 60620 94 104997 98 98 121168 BBB 426 1 678 1 1 722 BB and below 3137 5 185 1 1 196 Total 64183 100 105860 100 122086 100 Page 14
Slide 16: Financial Performance
Financial Performance Page 15
Slide 17: Total Income
Total Income ₹ in Crore Quarterly Parameters Growth Growth Jun’21 Mar’22 Jun’22 Q-o-Q(%) Y-o-Y(%) Interest Income 16785 17861 18177 1.77 8.29 Interest on Advances 12026 12757 12949 1.51 7.68 Interest on Investments 4163 4569 4481 (1.93) 7.64 Other Interest Income 596 535 747 39.63 25.34 Non-Interest
Slide 18: Non-Interest Income
Non-Interest Income ₹ in Crore Quarterly Parameters Growth Growth Jun’21 Mar’22 Jun’22 Q-o-Q(%) Y-o-Y(%) Fee Based Income 1337 1892 1577 (16.65) 17.95 Commission Exchange & Brokerage 266 395 256 (35.19) (3.76) Service Charges 640 897 809 (9.81) 26.41 Miscellaneous 431 600 512 (14.67) 18.79 Treasury
Slide 19: Total Expense
Total Expense ₹ in Crore Quarterly Parameters Growth Growth Jun’21 Mar’22 Jun’22 Q-o-Q(%) Y-o-Y(%) Interest Expenses 10625 10856 11392 4.94 7.22 Interest Paid on Deposits 9882 10037 10583 5.44 7.09 Other Interests 743 819 809 (1.22) 8.88 Operating Expenses 4834 5265 5354 1.69 10.76 Staff Cost 3365 3
Slide 20: Financials at a Glance
Financials at a Glance ₹ in Crore Quarterly Parameters Jun’21 Mar’22 Jun’22 Growth Growth Q-o-Q(%) Y-o-Y(%) Net Interest Income 6160 7005 6785 (3.14) 10.15 Total Interest Income 16785 17861 18177 1.77 8.29 Total Interest Expenses 10625 10856 11392 4.94 7.22 Total Income 20940 22323 23352 4.61 11.52
Slide 21: Continuous & Consistent Growth
Continuous & Consistent Growth 84.51 84.17 6202 6606 2022 83.26 5481 5604 5803 82.44 5220 1666 1502 1333 81.18 1177 1010 79.68 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Mar'21 Jun'21 Sep'21 Dec'21 Mar'22 Jun'22 Operating Profit (₹ in Cr) Net Profit (₹ in Cr)
Slide 22: Provisions
Provisions ₹ in Crore Quarterly Parameters Growth Growth Jun’21 Mar’22 Jun’22 Q-o-Q(%) Y-o-Y (%) Total Provision 4304 4536 4584 1.06 6.51 NPAs 2335 2130 2673 25.49 14.48 Standard Asset 0 (223) 133 -- -- Non Performing Investment (220) 1035 1535 48.31 -- Income Tax 845 827 894 8.10 5.80 Others 1344 7
Slide 23: Key Ratios
Key Ratios (%) Jun’21 Mar’22 Jun’22 Ratios Quarterly Cumulative Quarterly Cumulative Quarterly Cumulative Return on Assets 0.41 0.41 0.57 0.48 0.65 0.65 Return on Net-worth 11.53 11.53 15.25 12.82 16.33 16.33 Cost to Income 46.86 46.86 45.92 46.16 44.76 44.76 CD Ratio 67.00 67.00 68.22 68.22 70.09 7
Slide 24: Key Ratios
Key Ratios Cost Of Deposits (%) NIM(%) Yield on 2.82 4.02 Advances(%) 2.78 3.99 7.22 3.95 2.71 7.09 7.03 Jun'21 Mar'22 Jun'22 Jun'21 Mar'22 Jun'22 Jun'21 Mar'22 Jun'22 Cost Of Funds (%) Yield on Funds(%) Yield on 3.71 5.85 Investments(%) 6.53 3.64 6.43 3.60 5.82 5.81 6.28 Jun'21 Mar'22 Jun'22 Jun'21
Slide 25: Investments
Investments Page 24
Slide 26: Investment Portfolio
Investment Portfolio ₹ in Crore Sl. No Parameters Jun’21 Mar’22 Jun’22 (1) Domestic Investments 274865 283916 309482 (a) SLR 232856 243115 269616 (b) Non SLR 42009 40801 39866 SLR as % to Dom. Investments 84.72 85.63 87.12 (i) Held To Maturity (HTM) 206051 238549 249809 (ii) Available For Sale (AFS)
Slide 27: Non SLR Portfolio
Non SLR Portfolio ₹ in Crore % Share Y-o-Y Variation Parameters Jun’21 Mar’22 Jun’22 (Jun’22) Amount % PSU Bonds 4450 4060 4039 10.13 (411) (9.24) Corporate and Other Bonds 8231 7848 7548 18.93 (683) (8.30) Special Govt. Sec excl. Recap Bonds 2590 2412 2407 6.04 (183) (7.07) CG Recap. Bond 18238 182
Slide 28: Asset Quality
Asset Quality Page 27
Slide 29: Asset Quality Ratios
Asset Quality Ratios ₹ in Crore Parameters Jun’21 Mar’22 Jun’22 Gross NPA 58215 55652 54734 Gross NPA (%) 8.50 7.51 6.98 Net NPA 22434 18668 18505 Net NPA (%) 3.46 2.65 2.48 Provision Coverage Ratio (%) 81.18 84.17 84.51 Credit Cost (%) 2.04 1.53 1.38 Slippage Ratio (%) 0.69 0.38 0.36 Page 28
Slide 30: Movement of NPA
Movement of NPA ₹ in Crore Parameters Jun’21 Mar’22 Jun’22 NPA as at the beginning of the period 60288 56893 55652 -Cash Recovery towards Book Liability(i) 1598 2146 1886 -Up-gradation(ii) 2292 842 756 -Write Off(iii) 2574 2989 2225 Total Reduction(i+ii+iii) 6464 5977 4867 Fresh Addition 4391 4736 3
Slide 31: NPA Classification: Sector Wise
NPA Classification: Sector Wise ₹ in Crore GNPA (%) Parameters Jun’21 Advance O/s Mar’22 Jun’22 (Jun’22) Jun’22 Domestic Gross NPA 52703 50794 49810 748140 6.66 Global Gross NPA 58215 55652 54734 783654 6.98 Retail 1765 1671 1844 128615 1.43 Housing Loans 745 485 674 75578 0.89 Vehicle Loans 288 302
Slide 32: NPA Classification: Industry wise
NPA Classification : Industry wise ₹ in Crore Sector/Scheme Jun’21 Mar’22 Jun’22 GNPA (%) Infrastructure 7761 8979 9027 8.58 Iron & Steel 1005 813 909 5.52 Textile 1349 1229 1429 7.64 Food Processing 1294 1349 1337 9.85 Engineering 757 960 988 7.65 Page 31
Slide 33: Special Mention Accounts (SMA)
Special Mention Accounts (SMA) ₹ in Crore SMA Position of the Bank (Rs. 5 Cr and above) Mar’22 Jun’22 No of Accounts % to Gross No of Accounts % to Gross Parameters Outstanding Outstanding Advances Advances SMA 2 152 2300 0.27 288 3439 0.38 SMA 1 252 3737 0.43 113 1734 0.19 TOTAL SMA 1 & 2 404 6037
Slide 34: Accounts referred to NCLT
Accounts referred to NCLT ₹ in Crore Jun’21 Jun’22 Parameters No of Provision No of Provision Book Liability Provision Coverage(%) Book Liability Provision Coverage(%) Accounts Accounts 1st List - RBI 7 3052 3052 100 6 2345 2345 100 2nd List – RBI 14 5568 5522 99 13 5614 5601 99 Total RBI 1 & 2 21 8
Slide 35: Capital & Shareholding
Capital & Shareholding Page 34
Slide 36: Capital Funds (Basel III)
Capital Funds (Basel III) ₹ in Crore CRAR % Parameters Jun’22 Mar’22 Jun’21 14.90 14.91 Tier I 65869 64133 54278 Common Equity 56983 55247 46465 13.36 2.78 2.99 Additional Tier I 8886 8886 7813 3.02 Tier II 15138 16083 15854 1.65 1.64 Total (Tier I+II) 81007 80216 70132 1.49 Risk-weighted Assets 543
Slide 37: Shareholding Pattern as on June 30th, 2022
Shareholding Pattern as on June 30th ,2022 ₹ in Crore Staff, 0.91 Others, 4.53 Resident Individuals, 11.18 FIIs/FPIs, 7.97 Mutual Funds, 3.44 Government of India, Insurance 62.93 Companies, 9.04 Page 36
Slide 38: Environmental, Social & Governance
Environmental, Social & Governance Page 37
Slide 39: Environmental, Social & Governance (ESG) Practices
Environmental, Social & Governance (ESG) Practices Environmental Social Governance As a part of Green initiatives, Bank Within our communities, we engage in Bank has formed ESG Committee and proposes to obtain IGBC Certification helping and uplifting the underserved Working Group to oversee th
Slide 40: Distribution Network
Distribution Network Page 39
Slide 41: Distribution Network
Distribution Network Parameters Jun’21 Mar’22 Jun’22 General Branches (a) 9235 8957 8927 Specialised Branches (b) 642 777 805 Total Domestic Branches (a+b) 9877 9734 9732 Overseas Branches 4 3 3 BC Points 9053 8906 8906 Total Banking Outlets 18934 18643 18641 ATM 11819 10817 10802 Recycler 1305 1391
Slide 42: Digital Footprint
Digital Footprint 86.36 45.45 4.61 2.16 280.04 1.78 188.21 4.19 JUNE 2021 JUNE 2022 JUNE 2021 JUNE 2022 JUNE 2021 JUNE 2022 Internet Banking Registrations (Nos in Debit Card Outstanding (Nos in MeitY Digital Transactions( Nos in Crore) Lakhs) Crores) E-Transactions( Nos in Crore) 14.26 132.96 1.66 9
Slide 43: Digital Initiatives
Digital Initiatives Digital Lending Revamped Mobile Banking App In tune with the latest market In order to compete with new trend, Bank is in the process of Generation Banks and remain introducing “End-to-End Digital ahead of peers, Bank has launched lending” platform to provide the “All in One” Mob
Slide 44: Evolution of Canara Mobile Banking App
Evolution of Canara Mobile Banking App Canara All-in-one 2022 Enhanced CanMobile 2019 Candi 2.0 2015 2011 CanMobile Canara Super App Features Pay & Debit / Lifestyle Deposits & Invest & Bill Govt Transfer UPI Credit Services Loans Insure Payments Schemes Funds Card Page 43
Slide 45: Subsidiaries, Associates & Joint Ventures
Subsidiaries, Associates & Joint Ventures ₹ in Crore Total Profit Our share Name of the Entity Holding(%) Jun’22 SUBSIDIARIES Canara Robeco Asset Management Company Ltd. 51 14.89 7.60 Canara HSBC Life Insurance Company Ltd. 51 8.01 4.08 Canbank Factors Ltd. 70 4.61 3.22 Canbank Computer Services Ltd
Slide 46: Goals for Mar 2023 vs Actuals for Jun 2022
Goals for Mar 2023 vs Actuals for Jun 2022 ₹ in Crore Guidance Parameters Actuals as on 30.06.2022 (31.03.2023) Business Growth (Global) 8.30% 11.45% Advances Growth (Global) 8.00% 14.47% Deposits Growth (Global) 8.50% 9.42% CASA (Domestic CASA to Domestic Deposit) 38.00% 34.30% NIM (Global)(Annuali
Slide 47: 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 48: 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 47