Canara Bank · NSE:CANBK
Canara Bank — Q2 FY2020-21 Earnings Presentation
50 slides from Canara Bank's earnings presentation, Oct 29, 2020
Slide 1: Exchange filing cover letter
<).><>I �I ir<.t.> •fl'o1 ••••••·• .. , t•,1 ir,•• {:cl llfl ,,cl l3c:l 11 k � Al, • .,..,,, ,..,..,t ,•,.-..1,,1 •••--•I•• •■ Ref:: SD:1538/1539/11/12::2020 29.10.2020 The Vice President The Vice President BSE Ltd. Listing Department Phiroze Jeejeebhoy Towers National Stock Exchange of India Ltd Da
Slide 2: Canara Bank products and schemes
CANDI Mobile Banking App ‘Canara Fixed Deposit Term deposit A/c 03 Canara HOME LOAN Canara SB for higher returns, Ciiaa: Power Plus Galaxy Premier SB A/c for A uni Canara EDUCATION unique premier saving LOAN customers: Celebrate Festivats with SB A/c with VEHICLE multi-faceted benefits a ~ Canara Dh
Slide 3: Performance Highlights-Q2 2020-21 (Y-o-Y)
Performance Highlights-Q2 2020-21 (Y-o-Y) 13.38% SB 20.57% Fee Based Income y-o-y Rs 2,58,946 Cr y-o-y Rs 1,219 Cr 14.47% CASA 32.53% Operating Profit y-o-y Rs 2,98,529 Cr y-o-y Rs 4640 Cr 187 18.14% Retail Term Deposits Gross NPA bps y-o-y Rs 4,05,781 Cr y-o-y 8.23% 230 4.77% Domestic Credit Net NP
Slide 4: Contents
Contents Business Performance Financial Performance Investment Asset Quality Capital & Share Holding Digital Footprints and Initiatives Expanding Reach – Offline & Online COVID-19 Response w.e.f 1st April, 2020 Syndicate Bank has amalgamated with Canara Bank, Accordingly Financial as on September 20
Slide 5: Business Performance
I Business Performance Page 4
Slide 6: Business Performance
Business Performance Amt in Rs. Crore Growth % Parameters Sep’19 Mar’20 Jun’20 Sep’20 Q-o-Q Y-o-Y Global Gross Business 1503366 1557839 1560144 1597747 2.41 6.28 Domestic Gross Business 1412710 1488366 1493806 1538179 2.97 8.88 Overseas Gross Business 90656 69473 66337 59568 (10.20) (34.29) Global D
Slide 7: Domestic Deposit Mix
Domestic Deposit Mix Amt in Rs. Crore Growth % Parameters Sep’19 Mar’20 Jun’20 Sep’20 Q-o-Q Y-o-Y Saving Deposits 228390 250041 253492 258946 2.15 13.38 Current Deposits 32403 40131 40577 39583 (2.45) 22.16 CASA Deposits 260793 290172 294069 298529 1.52 14.47 Domestic CASA % 32.03 33.36 33.82 32.77
Slide 8: Advances Mix
Advances Mix SEP’20 Amt in Rs. Crore Agri & allied Corporate 21.86% Growth % & others 44.26% Msme Parameters Sep’19 Jun’20 Sep’20 16.91 Y-o-Y Q-o-Q Retail 16.97% Retail Loans 101445 107573 110196 8.63 2.44 Agriculture & 131888 133986 141880 7.57 5.89 RAM: 55.74% Allied SEP’19 MSME 112878 104930 1097
Slide 9: MSME credit
MSME credit Segment Mix Book by Loan size Upto 5 Cr 7% 11% 14% Micro 5 Cr-10 Cr Small 7% 50% 10 Cr-25 Cr Medium 75% 36% Above 25 Cr Geographical Mix 44% 34% 24% Short Term North Loan 15% 10% East Long Term 56% 66% South Loan 51% West Sep 2019 Sep 2020 Page 8
Slide 10: Achievement Under Mandated Targets – Priority Sector
Achievement Under Mandated Targets – Priority Sector Achieved the mandated norms in respect of: Total Priority (46.52 % to ANBC against 40% norm, 52.29% prior to PSLC) Mandated Agriculture (19.77% to ANBC against 18% norm, 25.54% prior to PSLC) Norms under Priority Sector Small and Marginal Farmers
Slide 11: Retail Credit
Retail Credit Retail Loans Housing Loans Vehicle Loans 59940 110196 12872 101445 12147 53121 Sep'19 Sep'20 Sep'19 Sep'20 Sep'19 Sep'20 Amt in Rs. Crore Growth % Parameters Sep’19 Jun’20 Sep’20 Y-o-Y Q-o-Q Housing Loans (A) 53121 58243 59940 12.84 2.91 Vehicle Loans (B) 12147 12508 12872 5.97 2.91 Ed
Slide 12: Industry Credit
Industry Credit Amt in Rs. Crore Growth % Sector/Scheme Sep’19 Mar’20 Jun’20 Sep’20 Q-o-Q Y-o-Y Infrastructure 79475 76193 79675 78203 (1.85) (1.60) Textile 14312 14627 14703 14950 1.68 4.46 Food Processing 12210 12722 13402 13774 2.78 12.81 Chemical & Chemical products 5793 5490 5563 5806 4.37 0.22
Slide 13: Rating profile and Concentration Risk
Rating profile and Concentration Risk External Rating - Wise Distribution of Domestic Advances External Rating - Wise above Rs. 10 crore Distribution of Domestic (% of total rated loan book above Rs 10 crore) Corporate Advances Sep’19 Sep’20 External Outstanding % Share Outstanding % Share 22.00% Ra
Slide 14: Advances Mix of the Lending Rate (%)
Advances Mix of the Lending Rate (%) 5.91 6.14 5.55 3.58 11.44 74.22 73.07 69.26 3.19 2.9 2.70 16.68 14.31 11.05 Sep'19 Mar'20 Sep'20 Base Rate BPLR MCLR RLLR Others Page 13
Slide 15: Financial Performance
Financial Performance Page 14
Slide 16: Total Income
Total Income Amt in Rs. Crore Quarterly Growth Parameters Sep-19 Mar-20 Jun-20 Sep-20 % Q-o-Q % Y-o-Y Interest Income 17799 17608 18036 17682 -1.96% -0.66% Interest on Advances 13192 12661 13118 13094 -0.18% -0.74% Interest on Investments 4116 4248 4272 4177 -2.22% 1.48% Other Interest Income 491 69
Slide 17: Non-Interest Income
Non-Interest Income Amt in Rs. Crore Quarterly Growth Sl. Parameters No Sep-19 Mar-20 Jun-20 Sep-20 % Q.o.Q % Y.o.Y (A) Fee Based Income (i+ii+iii) 1011 776 931 1219 30.93 20.57 i) Comm Exchange & Brok 135 280 243 306 25.93 126.66 (a) Commission on LC/BG/DDs 67 171 168 179 6.55 167.16 (b) Govt. Busi
Slide 18: Total Expense
Total Expense Amt in Rs. Crore Quarterly Growth Parameters Sep-19 Mar-20 Jun-20 Sep-20 % Q-o-Q % Y-o-Y Interest Expenses 12930 12521 11940 11386 -4.64% -11.94% Interest Paid on Deposits 11841 11615 11108 10586 -4.71% -10.60% Other Interests 1089 906 832 800 -3.85% -26.55% Operating Expenses 4183 570
Slide 19: Financials at a Glance
Financials at a Glance Amt in Rs. Crore Quarterly Quarterly Growth Parameters Sep-19 Mar-20 Jun-20 Sep-20 % Q-o-Q % Y-o-Y Total Interest Income 17682 17799 17608 18036 -1.96% -0.66% Total Interest Expenses 12930 12521 11940 11386 -4.65% -11.95% Net Interest Income 4869 5087 6096 6296 3.29% 29.31% To
Slide 20: Provisions
Provisions Amt in Rs. Crore Growth % Parameters Sep-19 Mar-20 Jun-20 Sep-20 Q-o-Q Y-o-Y Total Provision 2885 8979 3879 4195 8.16 45.42 NPAs 2949 7939 3550 3533 -0.48 19.81 Standard Asset 2 313 763 41 -94.64 2495.77 Depreciation on Investment -76 -5 -210 217 -- -- Income Tax 208 83 53 178 236.62 -14.
Slide 21: Key Ratios
Key Ratios (%) Ratios Sep’19 Mar’20 Sep’20 Quarterly Cumulative Quarterly Cumulative Quarterly Cumulative RoA 0.25 (0.01) (2.60) (0.58) 0.16 0.16 Return on Net-worth 6.23 (0.18) (69.64) (15.48) 4.82 4.64 Cost to Income 54.44 55.33 68.74 57.43 50.91 50.95 CD Ratio 73.02 73.02 71.83 71.83 68.40 68.40
Slide 22: KEY RATIOS – Q2FY21
KEY RATIOS – Q2FY21 Cost Of Deposits (%) Cost Of Funds (%) Yield on Advances(%) 8.28 5.55 5.14 5.42 5.05 8.22 4.95 4.56 4.75 4.37 8.09 8.06 Sep'19 Mar'20 Jun'20 Sep'20 Sep'19 Mar'20 Jun'20 Sep'20 Sep'19 Mar'20 June'20 Sep'20 Yield on Investments(%) NIM(%) Yield on Funds(%) 2.84 2.82 7.13 7.52 2.51 7
Slide 23: Investments
| dorel da Canara Bank A I Investments Page 22
Slide 24: Investment Portfolio
Investment Portfolio Amt in Rs. Crore Sl. Parameters Sep’19 Mar’20 Jun’20 Sep’20 (1) Domestic Investments 230607 251254 250598 265337 (a) SLR 186935 205613 204293 219265 (b) Non SLR 43672 45641 46305 46072 SLR as % to Dom. Investments 81.06% 81.83% 81.52% 82.64% (i) Held To Maturity (HTM) 153041 171
Slide 25: Non SLR Portfolio
Non SLR Portfolio Amt in Rs. Crore % Share Y-o-Y Variation Parameters Sep’19 Mar’20 Jun’20 Sep’20 (Sep’20) Amount % PSU Bonds 4655 4694 4653 4617 10.02 (38) (0.82) Corporate and Other Bonds 7174 5894 7935 8963 19.45 1789 24.94 Special Govt. Sec excl. Recap Bonds 4202 3971 3867 3867 8.39 (335) (7.97)
Slide 26: Asset Quality
| dare! a Canara Bank I) Asset Quality Page 25
Slide 27: Asset Quality Ratios
Asset Quality Ratios Amount in Rs. Crore Parameters Sep’19 Mar’20 Jun’20 Sep’20 Gross NPA 64093 61127 57526 53438 Gross NPA (%) 10.10 9.39 8.84 8.23 Net NPA 34571 26755 24355 21063 Net NPA (%) 5.72 4.34 3.95 3.42 Provision Coverage Ratio (%) 69.60 76.95 78.95 81.48 Credit Cost (%) 2.32 2.83 2.58 2.4
Slide 28: Movement of NPA
Movement of NPA Amount in Rs. Crore Sl.No Parameters Sep’19 Mar’20 Jun’20 Sep’20 FY19-20 (a) NPA as at the beginning of period 64802 61975 61127 57526 63904 (i) -Cash Recovery towards Book liability 1995 2213 1440 1504 12105 (ii) -Up-gradation in existing NPA upto 31st 1039 352 620 657 2347 (iii) -W
Slide 29: NPA Classification: Sector Wise
NPA Classification: Sector Wise Amount in Rs. Crore Advance O/s Sep’19 Mar’20 Jun’20 Sep’20 GNPA (%) (Sep’20) Global Gross NPA 64093 61127 57526 53438 648980 8.23 Overseas Gross NPA 5836 6580 6473 5940 21785 27.27 Domestic Gross NPA 58257 54547 51053 47498 627195 7.57 Retail 2637 2614 2392 1855 1101
Slide 30: NPA Sector wise comparison Y-o-Y and Q-o-Q
NPA Sector wise comparison Y-o-Y and Q-o-Q NPA Sector wise 38339 36117 34371 32603 12796 12433 11492 10321 9963 10476 9271 8504 2637 2614 2392 1855 Retail Agriculture & Allied MSME Corporate & others Sep-19 Mar-20 Jun-20 Sep-20 Page 29
Slide 31: Retail Sector NPA
Retail Sector NPA Amount in Rs. Crore Advance Parameters Sep’19 Mar’20 Jun’20 Sep’20 O/s GNPA (%) (Sep-20) Total Retail NPA 2637 2614 2392 1855 110196 1.68 Housing Loans 991 1005 871 784 59940 1.31 Vehicle Loans 361 343 305 269 12872 2.09 Education Loan 496 489 417 185 12933 1.43 Other Personal Loan
Slide 32: NPA Classification : Industry wise
NPA Classification : Industry wise Amount in Rs. Crore Sector/Scheme Sep’19 Mar’20 Jun’20 Sep’20 % of Advances Infrastructure 9277 8021 7853 7775 9.94 Iron & Steel 7557 2702 1551 1581 9.18 Textile 1157 1147 1084 1013 6.78 Food Processing 1771 1602 1664 1605 11.65 Engineering 206 243 268 318 2.42 Con
Slide 33: Special Mention Accounts (SMA)
Special Mention Accounts (SMA) Amt in Rs. Crore SMA Position of the Bank (Rs. 5 Cr and above) Jun’20 Sep’20 No of Accounts % TO GROSS No of Accounts % TO GROSS Outstanding Outstanding ADVANCES* ADVANCES* SMA 2 223 5828 0.74 133 2881 0.37 SMA 1 134 2834 0.36 117 2276 0.29 TOTAL SMA 1 &2 357 8662 1.11
Slide 34: Accounts referred to NCLT
Accounts referred to NCLT Amt in Rs. Crore Provision Provision No of Book Provision Pending Book Provision Parameters coverage coverage Accounts Liability Made Accounts Liability made (30.09.2019) (30.09.2019) (30.09.2019) Sep 20 (30.09.2019) (30.09.2020) (30.09.2020) (30.09.2020) Ist List - 9* 1235
Slide 35: Capital Funds (Basel III)
Capital Funds (Basel III) Amt in Rs. Crore Parameters Sep’19 Mar’20 Jun’20 Sep’20 Tier I 56998.86 49071.65 48086.38 49562.22 Common Equity 51048.16 43173.94 42188.74 42631.12 Additional Tier I 5950.70 5897.71 5897.64 6931.10 Tier II 14676.31 17353.00 18039.73 16769.45 Total (Tier I+II) 71675.17 6642
Slide 36: Shareholding Pattern
Shareholding Pattern As on Sep 30, 2020 Resident Individuals Staff Others 7.52% 1.43% 1.83% FIIs/FPIs Mutual Funds 2.29% 1.85% Insurance Companies 6.53% Government 78.55% Page 35
Slide 37: Digital footprint
I Digital footprint Page 36
Slide 38: Migration to Digital Channel
Migration to Digital Channel % OF E TRANSACTIONS TO TOTAL TRANSACTIONS 92.00% 91.29% 91.00% 90.00% 89.00% 88.00% 87.12% 87.00% 86.00% 85.00% April -June (Q1) July- September(Q2) Page 37
Slide 39: Digital Initiatives
Digital Initiatives Instant account opening through Canara DIYA channel. Online Demat account opening facilitated through mobile banking channel. “CANDI” Mobile Banking flavoured with Lifestyle services, cardless cash withdrawal and enhanced security for cards. Enhanced Digital reach by the customer
Slide 40: Expanding Reach
| dorel da Canara Bank I Expanding Reach
Slide 41: Expanding the reach
Expanding the reach Parameters Sep’19 Mar’20 Jun’20 Sep’20 SEP’20 Domestic 10366 10391 10451 10495 Urban 2073 Branches 20.03% Metro 2124 Overseas 20.38% 6 6 5 5 Branches Rural 3079 BC Points 6355 9145 9383 9422 29.31% Semi-Urban 3175 Total Banking 30.28% 16727 19542 19840 19922 Outlets ATM 13404 134
Slide 42: Financial Inclusion
Financial Inclusion Accounts opened under PMJDY Deposits Mobilised under PMJDY (in Lacs) (Amount in Cr) 5541 5588 137 133 4296 126 Sep'19 Jun'20 Sep'20 Sep'19 Jun'20 Sep'20 Page 41
Slide 43: Subsidiaries, Associates & Joint Ventures
Subsidiaries, Associates & Joint Ventures Amt in Rs. Crore Profit after Tax( Half Year) Name of the Entity % Holding Y-o-Y Sept 2019 Sept 2020 Growth % Subsidiaries Canbank Financial Services Ltd. 100% (0.51) 0.12 76.47 Canbank Venture Capital Fund Ltd. 100% 2.70 1.04 (61.48) Canbank Factors Ltd. 70
Slide 44: Focus Areas - FY 2020-21
Focus Areas - FY 2020-21 Shoring up CASA and reduction in high cost deposits. Balanced growth in Advances with proper mix of Retail, Agri, MSME & Corporate Credit. 100% Guaranteed MSME Lending. Focus on NPA management with strategic actions on strengthening credit monitoring, contain fresh slippages
Slide 45: COVID-19- Credit Support
COVID-19- Credit Support Guaranteed Emergency Credit Line No. of Loans Sanctioned – 422437 Total Amount Sanctioned – Rs. 8284Cr PM SVANidhi No. of Loans Sanctioned – 26146 Total Amount Sanctioned – Rs. 26 Cr Page 44
Slide 46: COVID-19- Moratorium Details
COVID-19- Moratorium Details COVID- Moratorium Amt in Rs. Crore % OF AVAILED TOTAL % OF AVAILED TOTAL NO OF SECTOR AVAILED ACS ACS TO TOTAL OUTSTANDING AVAILED AMT AMT TO TOTAL ACS ACS AMT AMT 9238306 1117315 12.09 131266.71 24455.89 18.63 AGRICULTURE 1836711 916799 49.92 100076.39 49017.43 48.98 RE
Slide 47: Goals set for March 2021
Goals set for March 2021 Guidance Parameters (31.03.2021) Deposits Growth (Global) 8.00% Advances Growth (Global) 6.00% Business Growth (Global) 8.00% NIM (Global) (Annualized) 2.75% CASA (Domestic CASA to Domestic Deposit) 35% Gross NPA (Global) 8.75% Net NPA (Global) 3.90% PCR (Global) 81% Slippag
Slide 48: Disclaimer
Disclaimer This presentation has been prepared for general information purposes in respect of Canara Bank (“Bank”) together with its subsidiaries, associates and joint ventures, as applicable (together, with the Bank, the “Group”) only, without regard to any specific objectives, suitability, financi
Slide 49: Page 48
Pursuant to the Gazette Notification no. CG-DL-E04032020-216535 dated March 4, 2020 issued by the Government of India, the scheme of amalgamation between Syndicate Bank and Canara Bank was approved and Syndicate Bank was amalgamated with Canara Bank with effect from April 1, 2020 (the “Amalgamation”
Slide 50: Thank You
We express our heartfelt Thank You 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 49