Canara Bank · NSE:CANBK
Canara Bank — Q2 FY2016 Earnings Presentation
53 slides from Canara Bank's earnings presentation, September 2015
Slide 1: Performance Highlights September 2015
PERFORMANCE HIGHLIGHTS SEPTEMBER 2015 www.canarabank.com Page 1
Slide 2: Highlights – September 2015
HIGHLIGHTS – SEPTEMBER 2015 Net profit for Q2FY16 at Rs.529 crore, up by 10.44% sequentially. Gross profit for Q2FY16 at Rs.1944 crore, up by 19.54% y.o.y Total provision for Q2FY16 was at Rs.1415 crore compared to Rs.999 crore last year. Total Business at Rs.8.08 lakh crore, up by 4.69% y.o.y.
Slide 3: Highlights – September 2015
HIGHLIGHTS – SEPTEMBER 2015 Total Expenditure increase was contained at 2.37% y.o.y. Interest expenses increase, including interest paid on deposits, moderated to 1.12% y.o.y. Non-Interest Income at Rs.1210 crore, up by 18.55% y.o.y. Net Interest Margin (NIM) (Domestic) improved to 2.38% against
Slide 4: Highlights – September 2015
HIGHLIGHTS – SEPTEMBER 2015 Gross NPA at Rs.14021crore vis-à-vis Rs.13081 crore at June 2015. Gross NPA Ratio stood at 4.27% compared to 3.98% at June 2015 and 2.92% last year. Major Net NPA ratio stood at 2.90% from 2.74% at June 2015 and 2.31% Highlights last year. Cash Recovery at Rs.2266 cro
Slide 5: Performance Highlights - Business
PERFORMANCE HIGHLIGHTS- BUSINESS Amt. in Rs. Crore y.o.y Parameters SEP’14 DEC’14 MAR’15 JUN’15 SEP’15 Growth (%) Deposits 461193 462450 473840 471877 485206 5.21 Advances 310860 312269 330036 324063 323077 3.93 (net) Business 772053 774718 803876 795940 808283 4.69 C-D Ratio 67.40 67.52 69.65 68.68
Slide 6: Performance Highlights - Overseas Business
PERFORMANCE HIGHLIGHTS- OVERSEAS BUSINESS Amt. in Rs. Crore y.o.y Parameters SEPT’14 MAR’15 SEPT’15 Growth % Deposits 24962 29138 31060 24.43 Advances 21348 22693 23324 9.26 Total Business 46310 51831 54384 17.43 Gross Profit 158 270 160 1.27 Overseas Business constitutes 6.73% of the Global Busines
Slide 7: Performance Highlights - Profitability Q2FY16
PERFORMANCE HIGHLIGHTS- PROFITABILITY-Q2FY16 Amt. in Rs. Crore y.o.y Parameters Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Growth (%) Total Income 11915 12228 12429 12253 12478 4.72 Total Expenses 10290 10431 10697 10249 10534 2.37 Operating Profit 1626 1797 1733 2004 1944 19.54 Net Profit 627 656 613 479 5
Slide 8: Performance Highlights - Expanding the Reach
PERFORMANCE HIGHLIGHTS- EXPANDING THE REACH Particulars SEP’14 MAR’15 SEP’15 Y-o-Y incr. Branch Network 5514 5682 5734 220 ATM Strength 7095 8533 9132 2037 Debit Card (In Lakh) 185 255 288 103 E-Lounges 147 Population group No. of branches % to total 5727 domestic Branches Rural 1814 31.67 Semi-Urba
Slide 9: Business Segments
BUSINESS SEGMENTS www.canarabank.com Page 9
Slide 10: Segment Wise Deposits
SEGMENT WISE DEPOSITS Amt. in Rs. Crore y.o.y Parameters SEP’14 DEC’14 MAR’15 JUN’15 SEP’15 Growth (%) Total Deposits 461193 462450 473840 471877 485206 5.21 Current 17743 18696 19846 17534 19257 8.53 Saving 86287 86322 93686 92149 96745 12.12 CASA 104030 105019 113532 109684 116002 11.51 CASA (%)Do
Slide 11: Loans & Advances Segment
LOANS & ADVANCES SEGMENT Amt. in Rs. Crore y.o.y Parameters SEP’14 DEC’14 MAR’15 JUN’15 SEP’15 Growth (%) Advances (Net) 310860 312269 330036 324063 323077 3.93 Total Priority 108747 112693 118234 121978 139021 27.84 Agriculture 54890 56474 58868 60924 63541 15.76 Other Priority 14317 14735 15116 15
Slide 12: Achievement Under Mandated Targets – Priority Sector
ACHIEVEMENT UNDER MANDATED TARGETS – PRIORITY SECTOR Achieved the mandated norms in respect of: Total Priority (48.45% to ANBC against 40% norm) Mandated Agriculture (22.15% to ANBC against 18% norm) Norms under Priority Weaker Section (14.66% to ANBC against 10% norm) Sector M&SE (19.78% y.o.y grow
Slide 13: Performance of Retail Advances
PERFORMANCE OF RETAIL ADVANCES Amt. in Rs. Crore y.o.y Type of Advances SEP’14 DEC’14 MAR’15 JUN’15 SEP’15 Growth (%) Housing loans Direct 14391 15225 16480 17261 18396 27.83 Vehicle loans 3490 3628 3770 3806 3901 11.78 Education loans 5336 5492 5636 5830 6363 19.25 Other Personal Loans 9785 10170 1
Slide 14: Exposure - Infrastructure
EXPOSURE - INFRASTRUCTURE Amt. in Rs. Crore y.o.y % Share Parameters SEP’14 DEC’14 MAR’15 JUN’15 SEP’15 Growth Total Adv % Roads 7517 7851 8195 8487 8451 2.62 12.43 Ports 831 827 835 372 393 0.12 -52.74 Airports 1688 1657 1364 1457 1411 0.44 -16.41 Power (Generation, 43539 45620 45154 45635 44861 13
Slide 15: Exposure - Power Sector & Aviation
EXPOSURE - POWER SECTOR & AVIATION Amt. in Rs. Crore % Share y.o.y MAR’1 Parameters SEP’14 DEC’14 JUN’15 SEP’15 Total Growth 5 Adv % -Power Generation 22707 23824 24459 23739 24055 7.45 5.94 -Power Transmission 2205 2126 1533 1566 1574 0.49 -28.63 -Power Distribution 18627 19670 19162 20330 19233 5.
Slide 16: Exposure to Other Sectors
EXPOSURE TO OTHER SECTORS Amt. in Rs. Crore y.o.y SEP’14 DEC’14 MAR’15 JUN’15 SEP’15 Growth (%) EXPOSURE TO CAPITAL MARKET Outstanding 2348 2458 2331 2247 2737 16.56 EXPOSURE TO NBFCs Total 24589 23523 24241 21564 18496 -24.78 Out of above : HFCs 7475 7212 7350 6039 5756 -22.99 Private 12151 11287 1
Slide 17: Financials
FINANCIALS www.canarabank.com Page 17
Slide 18: Profitability - Q2 FY16
PROFITABILITY- Q2 FY16 Amt. in Rs. Crore y.o.y Q2 Q3 Q4 Q1 Q2 Parameters Growth FY15 FY15 FY15 FY16 FY16 (%) Total Income 11915 12228 12429 12253 12478 4.72 Total Expenses 10290 10431 10697 10249 10534 2.37 Operating Profit 1626 1797 1733 2004 1944 19.54 Provisions 999 1141 1120 1525 1415 41.64 Net
Slide 19: Profitability – H1 FY16
PROFITABILITY – H1 FY16 Amt. in Rs. Crore y.o.y Parameters H1FY15 Mar’15 H1FY16 Growth (%) Total Income 23643 48300 24731 4.60 Total Expenses 20223 41350 20783 2.77 Operating Profit 3421 6950 3948 15.40 Provisions 1987 4248 2940 47.96 Net Profit 1434 2703 1008 -29.73 Net Int. Income 4797 9664 5163 7
Slide 20: Break-up: Income – Q2 FY16
BREAK-UP : INCOME – Q2 FY16 Amt. in Rs. Crore y.o.y Q2 Q3 Q4 Q1 Q2 Parameters Growth FY15 FY15 FY15 FY16 FY16 (%) Interest on Advances 8005 8064 8093 8101 8126 1.51 Interest on Investments 2681 2792 2826 2850 2943 9.77 Other Interest Income 208 196 185 189 198 -4.59 Total Interest Income 10894 11052
Slide 21: Break-up: Income – H1 FY16
BREAK-UP : INCOME – H1 FY16 Amt. in Rs. Crore y.o.y Growth Parameters H1FY15 Mar’15 H1FY16 (%) Interest on Advances 15910 32066 16227 1.99 Interest on Investments 5306 10924 5793 9.18 Other Interest Income 379 760 387 2.23 Total Interest Income 21595 43750 22407 3.76 Non – Interest Income 2048 4550
Slide 22: Break-up: Expenditure – Q2 FY16
BREAK-UP: EXPENDITURE – Q2 FY16 Amt. in Rs. Crore y.o.y Q2 Q3 Q1 Q2 Parameters Q4 FY15 Growth FY15 FY15 FY16 FY16 (%) Interest Expenses 8526 8671 8617 8623 8621 1.12 Interest on Deposits 7964 8213 8146 8180 8181 2.73 Staff Expenses 1036 1038 1163 1059 1108 6.91 Other Op Exp 728 722 917 567 805 10.60
Slide 23: Break-up: Expenditure – H1 FY16
BREAK-UP : EXPENDITURE – H1 FY16 Amt. in Rs. Crore y.o.y Growth Parameters H1FY15 Mar’15 H1FY16 (%) Interest Expenses 16798 34086 17244 2.66 Interest on Deposits 15667 32026 16361 4.43 Staff Expenses 2074 4274 2167 4.46 Other Op Exp 1351 2989 1372 1.57 Total Op Exp 3425 7264 3539 3.32 Total Expenses
Slide 24: Break-up: Non-Interest Income Q2FY16
BREAK-UP: NON-INTEREST INCOME Q2FY16 Amt. in Rs. Crore Q2 Q3 Q4 Q1 Q2 y.o.y Parameters FY15 FY15 FY15 FY16 FY16 Growth(%) Com & Exchange 224 226 269 214 222 -0.89 -Of which Bancassurance 17 20 11 11 17 -- Profit from Exch. Transactions 206 251 61 102 165 -19.90 Rent – Lockers 4 2 3 74 4 -- Dividend
Slide 25: Break-up: Non-Interest Income H1FY16
BREAK-UP: NON-INTEREST INCOME H1FY16 Amt. in Rs. Crore Parameters y.o.y H1FY15 Mar’15 H1FY16 Growth (%) Com & Exchange 433 929 436 0.69 -Bancassurance 28 58 28 -- Profit from Exch. Transactions 469 782 267 -43.16 Rent – Lockers 70 75 78 11.80 Dividend Income 28 81 30 6.18 Recovery in W/Off A/cs 209
Slide 26: Break-up: Provisions - Q2FY16
BREAK-UP : PROVISIONS- Q2FY16 Amt. in Rs. Crore Provisions for Q2 FY15 Q3 FY15 Q4 FY15 Q1FY16 Q2FY16 NPAs 912 952 782 1314 979 Standard Assets - 81 73 (61) (44) Provisions on (22) (236) 16 133 64 Investments Tax 185 300 110 165 203 Restructured & Others (76) 44 139 (26) 213 Total Provision 999 1141
Slide 27: Break-up: Provisions – H1FY16
BREAK-UP : PROVISIONS – H1FY16 Amt. in Rs. Crore Provisions for H1FY15 Mar’15 H1FY16 NPAs 2037 3771 2293 Standard Assets - 154 (104) Provisions on (438) (658) 197 Investments Tax 385 795 368 Restructured & Others 3 186 186 Total Provision &Contingency 1987 4248 2940 www.canarabank.com Page 27
Slide 28: Earnings Profile
EARNINGS PROFILE (In %) Parameters Q2FY15 Q3FY15 Q4Y15 Q1FY16 Q2FY16 NIM – Domestic 2.36 2.36 2.36 2.35 2.38 NIM – Global 2.24 2.24 2.25 2.21 2.24 ROAA 0.51 0.53 0.50 0.36 0.39 EPS (Rs.)(not Annualized) 13.59 14.22 13.29 9.63 10.26 ROE (Annualized) 11.78 11.27 11.06 7.01 7.14 Cost-Income Ratio (Cumu
Slide 29: Cost and Yield Trends
COST AND YIELD TRENDS (In %) SEP’14 DEC’14 MAR’15 JUN’15 SEP’15 Cost of Deposits 7.40 7.40 7.38 7.12 7.07 Cost of Funds 6.82 6.83 6.84 6.41 6.39 Yield on Advances 10.69 10.76 10.75 10.22 10.18 Yield on Funds 8.77 8.75 8.78 8.28 8.30 Yield on Investments 8.04 8.02 8.00 7.97 7.95 www.canarabank.com Pa
Slide 30: Investment Classification
INVESTMENT CLASSIFICATION Amt. in Rs. Crore % Share % Share % Share Parameters SEP’14 in Total MAR’15 in Total SEP’15 in Total Portfolio Portfolio Portfolio SLR 123612 84% 122508 85% 135978 89% Non SLR 22377 15% 22084 15% 16705 11% Total (Domestic) 145989 100% 144592 100% 152683 100% Held For Tradin
Slide 31: Asset Quality
ASSET QUALITY www.canarabank.com Page 31
Slide 32: Asset Quality
ASSET QUALITY Amt. in Rs. Crore PARTICULARS SEP’14 DEC’14 MAR’15 JUN’15 SEP’15 Gross NPA 9164 10574 13040 13081 14021 Gross NPA Ratio (%) 2.92 3.35 3.89 3.98 4.27 Net NPA 7170 7556 8740 8888 9383 Net NPA Ratio (%) 2.31 2.42 2.65 2.74 2.90 Cash Recovery (cumulative) 3213 4427 5993 1056 2266 Cash Reco
Slide 33: Gross NPA Movement
GROSS NPA MOVEMENT Amt. in Rs. Crore PARTICULARS SEP’14 DEC’14 MAR’15 JUN’15 SEP’15 Opening Gross NPA ( Rs. Crore) 7570 7570 7570 13040 13040 Additions 5773 8065 10870 2519 4720 Sub Total 13343 15635 18440 15559 17760 Less: Reduction (a+b+c+d)) 4179 5061 5400 2478 3739 a) Write Off (Including Addn P
Slide 34: NPA Composition
NPA COMPOSITION Amt. in Rs. Crore Parameters SEP’14 DEC’14 MAR’15 JUN’15 SEP’15 Gross Advances 313431 315856 334947 328938 328387 Sub-Standard 5416 6055 7076 5827 6551 Doubtful 3748 4518 5964 7254 7470 Loss NIL NIL NIL NIL NIL Provision Coverage Ratio(%) 58.68 59.44 57.29 59.02 59.81 www.canarabank.
Slide 35: Sector-wise NPA Slippages
SECTOR-WISE NPA SLIPPAGES Amt. in Rs. Crore Q2 Q3 Q4 Q1 Q2 % to total SECTOR FY15 FY15 FY15 FY16 FY16 Slippages Micro & Small Ent. 970 627 496 906 738 33.51 Agriculture 373 316 266 443 304 13.81 Other Priority Sector 200 156 89 204 165 7.49 Total Priority Sector 1543 1099 850 1553 1207 54.81 Medium
Slide 36: Sector-wise NPA Outstanding
SECTOR- WISE NPA OUTSTANDING Amt. in Rs. Crore SECTOR SEP’14 DEC’14 MAR’15 JUN’15 SEP’15 Micro & Small Enterprises 2401 2715 3048 3497 3913 Agriculture 1189 1330 1410 1618 1689 Other Priority Segments 402 435 380 486 539 Medium Enterprises 727 825 829 940 1151 Large Industries 3386 4087 5815 4801 47
Slide 37: Sectoral Contribution of NPA
SECTORAL CONTRIBUTION OF NPA Amt. in Rs.Crore Particulars SEP’14 DEC’14 MAR’15 JUN’15 SEP’15 Gross Advances 313431 315856 334947 328938 328387 Gross NPA 9164 10574 13040 13081 14021 Gross NPA % 2.92 3.35 3.89 3.98 4.27 Priority Sector Advances 108748 112693 118234 121978 139021 PS as % to Gross Adva
Slide 38: Restructured Assets
RESTRUCTURED ASSETS Amt. in Rs.Crore Restructured during the year (Standalone year wise) Particulars FY 2013-14 FY 2014-15 FY 2015-16(Q2) A/C Amount A/C Amount A/C Amount Total 10071 10752 37198 6821 8870 600 Restructured Of which 9904 10231 36565 6130 8558 501 Standard NPA 167 521 633 691 312 99 Ou
Slide 39: Restructured Assets
RESTRUCTURED ASSETS Amt. in Rs. Crore Particulars FY 2013-14 FY 2014-15 FY 2015-16(Q2) Advances 303431 334947 328387 Restructured Assets 23205 28371 29026 % of Std. Restructured Assets to total Adv 6.67 6.71 6.97 % of Total Restructured Assets to total Adv 7.65 8.47 8.83 CDR 10446 10490 10442 % of C
Slide 40: Sector Wise Cumulative Restructured Accounts
SECTOR WISE CUMULATIVE RESTRUCTURED ACCOUNTS Amt. in Rs. Crore FY 2013-14 FY 2014-15 FY 2015-16 (Q2) Sector A/cs Amt A/cs Amt A/Cs Amt Agriculture 10120 403 13316 470 12526 483 MSME 5663 617 11518 1509 11720 1718 Housing 8475 312 15995 525 16990 577 Loans Large 554 12865 605 25470 620 25775 Advance
Slide 41: Sector wise Restructured accounts for Q2 FY16
Sector wise Restructured accounts for Q2 FY16 Amt. in Rs. Crore Q2 FY16 Sector A/cs Amt. Agriculture 2102 47 MSME 2561 244 Housing Loans 3303 92 Large Advance 13 149 Others 891 68 8870 600 Total www.canarabank.com Page 41
Slide 42: Restructured Assets
RESTRUCTURED ASSETS Amt. in Rs. Crore FY 2013-14 FY 2014-15 FY 2015-16(Q2) Particulars As on 31.03.2014 As on 31.03.2015 As on 30.09.2015 CDR 10446 10490 10442 NON CDR 12759 17881 18584 TOTAL 23205 28371 29026 www.canarabank.com Page 42
Slide 43: Sector Wise Restructured Accounts
SECTOR WISE RESTRUCTURED ACCOUNTS Rs.in crore Name of the Sector As on 30th Sept 2015 Details of restructured Accounts No. of a/cs Amnt % to cumulative Outstanding Amt. INFRASTRUCTURE (a+b+c+d+e+f+g+h) 140 14433 49.72 POWER (a+b+c+d) 70 10165 35.02 POWER-State DISCOMS (a) 27 6476 22.31 POWER- Privat
Slide 44: Capital Adequacy – Basel III
CAPITAL ADEQUACY –BASEL III CRAR of 11.04% at September 2015 Vs. 9% norm Capital CET ratio at 7.98% vs. 5.5% norm Adequacy Ratio Tier I ratio at 8.63% vs. 7% norm Tier II ratio at 2.41% Sufficient headroom available for raising further capital www.canarabank.com Page 44
Slide 45: Capital Adequacy – Basel III
CAPITAL ADEQUACY – BASEL III Amt. in Rs. Crore BASEL III Particulars SEP’14 DEC’14 Mar’15 JUN’15 SEP’15 Risk-weighted 322093 330813 342248 349640 346722 Assets Tier I Capital 23859 23932 27459 28966 29906 CET: 7.13% CET: 6.97% CET: 7.37% CET: 7.65% CET: 7.98% Tier I Ratio% AT I: 0.28% AT I: 0.26% AT
Slide 46: Shareholding Pattern
SHAREHOLDING PATTERN Govt . of As on September 30, 2015 66.30 India 5.43 4.75 1.92 Insurance 14.10 7.50 14.10 FIIs & FPIs 7.50 66.30 Residents 5.43 Individuals Govt of India Insurance FIIs & FPIs Mutual 4.75 Resident Individuals Mutual Funds Others Funds Others 1.92 www.canarabank.com Page 46
Slide 47: Pradhan Mantri Jan-Dhan Yojana (PMJDY)
PRADHAN MANTRI JAN - DHAN YOJANA (PMJDY) Bank has opened 70.59 lakh PMJDY accounts till September 2015 and mobilized CASA deposits of Rs.1101 crore. Rupay Debit cards have been issued to all the accounts. Aadhaar seeding in PMJDY accounts has been completed in 36.25 lakh accounts(51.36%) Zero bal
Slide 48: Financial Inclusion (FI)
FINANCIAL INCLUSION (FI) Bank has provided banking facilities in all the allotted 10049 villages. Covered all 3962 allotted Sub Service Areas (SSAs) by opening of 808 Brick & Mortar branches and engaging 2459 BC agents. Besides FI branches, the Bank has opened 479 Ultra Small Branches. Financial
Slide 49: Customer-Friendly Technology Initiatives in Q2FY16
CUSTOMER-FRIENDLY TECHNOLOGY INITIATIVES IN Q2FY16 Enquiry portal for Social Security Schemes released. Subscription for Social Security Scheme – ‘Surakshabandhan’ enabled. Jeevan Praman (digital life certificate for pensioners) functionality has been implemented, making it easy for pensioners.
Slide 50: Expanded Clientele Base
EXPANDED CLIENTELE BASE (In Lakhs) Y-o-Y Y-o-Y SEP’14 MAR’15 SEP’15 Increase Growth (%) 6.96 Clientele Base 602 657 696 94 15.61 crore Strong No. of Deposit Clientele A/cs 533 585 619 86 16.14 Base No. of Borrowal A/cs 69 72 77 8 11.59 94lakh Clientele accounts added y-o-y. www.canarabank.com Page 5
Slide 51: Major Awards/Accolades in Q1FY16
MAJOR AWARDS/ACCOLADES IN Q1FY16 Global Visa Service Quality Performance Award, 2014, for consistent and superior operating performance. Dun & Bradstreet Banking Awards 2015 for Best Bank under Priority Sector Lending and Best Retail Growth performer amongst the PSBs. National Awards for Excellen
Slide 52: Goals – March 2016
GOALS – MARCH 2016 Thrust on Retail Business & Asset Quality- CASA Retail deposits Retail credit Goals Fee income Containing NPA Improving operational financial ratios- NIM, RoA, RoE and Cost-to-Income. www.canarabank.com Page 52
Slide 53: Thank You
ete! dao L\ canara Bank » THANK vou www.canarabank.com