Canara Bank · NSE:CANBK
Canara Bank — Q1 FY2015 Earnings Presentation
50 slides from Canara Bank's earnings presentation, June 2014
Slide 1: Performance Highlights June 2014
PERFORMANCE HIGHLIGHTS JUNE 2014 www.canarabank.com Page 1
Slide 2: Highlights – June 2014
HIGHLIGHTS – JUNE’2014 Net profit for Q1FY15 improved to `807 crore vis-à-vis `611 crore for Q4FY14, with a sequential growth of 32.1%. Record Cash Recovery at 2019 crore in Q1 more than doubled compared to `888 crore last year. Gross NPA Ratio down to 2.67% from 2.91% as at June 2013. Net NPA ratio
Slide 3: Highlights – June 2014
HIGHLIGHTS – JUNE’2014 Advances (net) up by 21.2% y-o-y to `3.03 lakh crore. Continued robust growth in retail business - MSME (33%), MSE (33%), Retail Lending (43%), Housing Loans (41%) and other personal loans (69%), of which Vehicle Loans (59%). 255 branches and 197 ATMs added during the Q1FY15,
Slide 4: Performance Highlights - Business
PERFORMANCE HIGHLIGHTS- BUSINESS Amt. in ` Crore y.o.y SEQ Parameters JUNE’13 SEP’13 Dec’13 MAR’14 JUNE’14 Growth (%) (%) Deposits 381972 391613 408924 420723 428976 1.96 12.31 Advances 249891 281104 287700 301067 302964 0.63 21.24 (net) Business 631863 672717 696624 721790 731940 1.41 15.84 C-D Rat
Slide 5: Performance Highlights - Overseas Business
PERFORMANCE HIGHLIGHTS- OVERSEAS BUSINESS JUN’13 MAR’ 14 JUN’14 y.o.y Growth Parameters USD Mn ` Crs USD Mn ` Crs USD Mn ` Crs (%) Deposits 2892 17045 3645 21870 3792 22875 34.20 Advances 3152 18434 3241 19224 3082 18319 -0.62 Gross Income 48 267 181 1092 53 319 19.24 Gross Expenditure 33 183 141 85
Slide 6: Performance Highlights - Profitability Q1FY15
PERFORMANCE HIGHLIGHTS- PROFITABILITY-Q1FY15 Amt. in ` Crore y.o.y SEQ Parameters Q1FY14 Q4FY14 Q1FY15 Growth (%) (%) Total Income 10508 11610 11728 1.02 11.61 Total Expenses 8610 9728 9933 2.11 15.37 Operating Profit 1898 1882 1795 -4.62 -5.44 Net Profit 792 611 807 32.08 1.87 NIM (%) Domestic 2.33
Slide 7: Performance Highlights - Expanding the Reach
PERFORMANCE HIGHLIGHTS- EXPANDING THE REACH Jun’13 Mar’14 Jun’14 Y-o-Y incr. Branch Network 3770 4755 5010 1240 ATM Strength 3754 6312 6509 2755 Debit Card (In Lakh) 106.84 151.29 161.51 51.17 E-Lounges 115 Population group No.of 5003 domestic Branches % to total branch 7 overseas branches at Rural
Slide 8: Business Segments
BUSINESS SEGMENTS www.canarabank.com Page 8
Slide 9: Segment Wise Deposits
SEGMENT WISE DEPOSITS Amt. in ` Crore y.o.y Parameters JUN’13 SEP’13 DEC’13 MAR’14 JUN’14 Growth (%) Total Deposits 381972 391613 408924 420723 428976 12.31 Current 14374 15208 14793 17744 16749 16.52 Saving 73938 80070 79671 85536 81594 10.35 CASA 88312 95278 94465 103279 98343 11.36 CASA (%)Dom 24
Slide 10: Broad Based Credit Growth Y.o.Y
BROAD BASED CREDIT GROWTH Y.o.Y Credit Segments Jun’13 Mar’14 Jun’14 Y.o.Y Y.o.Y Y.o.Y Priority Sector 27% 24% 25% Agriculture 38% 20% 25% MSME 16% 35% 33% MSE 23% 38% 33% Retail 10% 45% 43% Housing 5% 50% 41% Other Personal Loans 28% 58% 69% - Of which Vehicle 29% 62% 59% www.canarabank.com Page 10
Slide 11: Loans & Advances Segment
LOANS & ADVANCES SEGMENT Amt. in ` Crore y.o.y Parameters JUN’13 SEP’13 DEC’13 MAR’14 JUN’14 Growth (%) Advances (Net) 249891 281104 287700 301067 302964 21.24 Total Priority 83085 88280 93018 97762 103694 24.80 Agriculture 43292 44042 45703 48797 53956 24.63 40195 39995 41787 44268 45202 12.46 - Di
Slide 12: Achievement Under Mandated Targets – Priority Sector
ACHIEVEMENT UNDER MANDATED TARGETS – PRIORITY SECTOR Achieved the mandated targets in respect of: Agriculture (18.7% against 18% norm) Direct agriculture (15.6% against 13.5% norm) Mandated Targets Credit to specified minority communities (17.5% against 15% norm) under Weaker Section (10.6% against
Slide 13: Performance of Retail Advances
Performance of Retail Advances Amt. in ` Crore y.o.y Type of JUN’13 SEP’13 DEC’13 MAR’14 JUN’14 SEQ(%) Growth Advances (%) Housing loans 14406 18392 20042 19684 20347 3.37% 41.24% Other Personal Loans 6409 7211 8014 8944 10804 20.79% 68.58% - Of which Vehicle loans 2091 2344 2791 3099 3335 7.62% 59.
Slide 14: Exposure - Infrastructure
EXPOSURE - INFRASTRUCTURE Amt. in ` Crore y.o.y % Share Parameters JUN’13 DEC’13 MAR’14 JUN’14 Growth Total Adv (%) Roads 5923 6529 6980 7242 2.37 22.27 Ports 613 1112 1092 1093 0.36 78.30 Airports 1474 1380 1827 1788 0.58 21.30 Power (Generation, 35804 38414 38294 42165 13.79 17.77 Transmission & D
Slide 15: Exposure - Power Sector & Aviation
EXPOSURE - POWER SECTOR & AVIATION Amt. in ` Crore % Share y.o.y Parameters JUN’13 DEC’13 MAR’14 JUN’14 Total SEQ(%) Growth Adv (%) -Power Generation 15796 19334 20003 21985 7.19 9.91 39.18 -Power Transmission 2072 2286 2215 2166 0.71 -2.21 4.54 -Power Distribution 17936 16794 16076 18014 5.89 12.06
Slide 16: Exposure to Other Sectors
EXPOSURE TO OTHER SECTORS Amt. in ` Crore y.o.y JUN’13 DEC’13 MAR’14 JUN’14 SEQ(%) Growth (%) EXPOSURE TO CAPITAL MARKET Outstanding 2355 2312 2210 2365 7.01 0.42 EXPOSURE TO NBFCs Total 20376 31293 26163 25474 -2.63 25.02 Out of above : HFCs 5701 11433 8144 8367 2.74 46.76 Private 9191 14740 12163
Slide 17: Financials
FINANCIALS www.canarabank.com Page 17
Slide 18: Profitability - Q1 FY15
PROFITABILITY- Q1 FY15 Amt. in ` Crore y.o.y SEQ Parameters Q1FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Growth (%) (%) Total Income 10508 10427 10935 11610 11728 1.02 11.61 Total Expenses 8610 9003 9344 9728 9933 2.11 15.37 Operating Profit 1898 1425 1591 1882 1795 -4.62 -5.44 Provisions 1106 799 1182 12
Slide 19: Break-up: Income – Q1 FY15
BREAK-UP : INCOME – Q1 FY15 Amt. in ` Crore y.o.y Growth Parameters Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 SEQ (%) (%) Interest on Advances 6450 6964 7360 7683 7905 2.89 22.56 Interest on Investments 2482 2597 2575 2598 2625 1.04 5.78 Other Interest Income 338 93 149 259 171 -33.98 -49.39 Total Int
Slide 20: Break-up: Expenditure – Q1 FY15
BREAK-UP : EXPENDITURE – Q1 FY15 Amt. in ` Crore y.o.y Growth Parameters Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 SEQ (%) (%) Interest Expenses 7278 7463 7857 8005 8272 3.34 13.65 Interest on Deposits 6948 6923 7311 7476 7702 3.02 10.86 Staff Expenses 887 933 873 979 1038 6.03 17.02 Other Op Exp 444
Slide 21: Break-up: Non-Interest Income
BREAK-UP: NON-INTEREST INCOME Amt. in ` Crore Parameters y.o.y Jun’13 Mar’ 14 Jun’14 Growth (Q1FY14) (Q4FY14) (Q1FY15) (%) Com & Exchange 200 284 209 4.50 -Bancassurance 11 21 11 0.54 Profit from Exch. Transactions 178 226 263 47.75 Rent – Lockers 58 2 66 14.32 Dividend Income 7 19 7 -- Recovery in
Slide 22: Break-up: Provisions - Q1FY15
BREAK-UP : PROVISIONS- Q1FY15 Amt. in ` Crore Provisions for Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 NPAs 443 347 543 802 1125 Restructured Assets 193 (55) 25 (169) 0.5 /Diminution in Fair value Standard Assets 90 183 93 112 - Provisions on 88 85 157 362 (416) Investments Tax 190 125 130 180 200 Oth
Slide 23: Earnings Profile
EARNINGS PROFILE In % Parameters Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15 NIM – Domestic 2.33 2.33 2.35 2.40 2.42 NIM – Global 2.21 2.22 2.21 2.27 2.30 ROAA 0.75 0.58 0.37 0.54 0.66 EPS (` ) (not Annualized) 17.88 14.13 9.24 13.65 17.49 Book Value (` ) 509.48 524.94 518.61 522.76 521.68 ROE (Annualized) 1
Slide 24: Trend in Cost and Yield (%)
TREND IN COST AND YIELD (%) (In %) Jun’13 Sep’13 Dec’13 Mar’14 Jun’14 Cost of Deposits 7.54 7.50 7.48 7.42 7.44 Cost of Funds 6.91 6.86 6.82 6.80 6.80 Yield on Advances 10.74 10.63 10.55 10.54 10.69 Yield on Funds 8.80 8.81 8.75 8.79 8.80 Yield on Investments 8.00 7.99 7.99 8.03 8.05 www.canarabank.
Slide 25: Investment Classification
Investment Classification Amt. in ` Crore % Share % Share % Share Parameters Jun’13 in Total Mar’14 in Total Jun’14 in Total Portfolio Portfolio Portfolio SLR 114565 84 108095 85 111401 86 Non SLR 21522 16 18758 15 18517 14 Total (Domestic) 136088 100 126853 100 129918 100 Held For Trading 484 0.4 1
Slide 26: Asset Quality
ASSET QUALITY www.canarabank.com Page 26
Slide 27: Asset Quality
ASSET QUALITY Amt. in ` Crore June’13 Sep’13 Dec’13 Mar’14 June’14 Gross NPA 7329 7475 8074 7570 8160 Gross NPA Ratio (%) 2.91 2.64 2.79 2.49 2.67 Net NPA 6209 6459 6870 5965 6150 Net NPA Ratio (%) 2.48 2.30 2.39 1.98 2.03 Cash Recovery (cumulative) 888 1923 3135 5494 2019 Cash Recovery of ` 2019 cr
Slide 28: Gross NPA Movement – Quarterly
GROSS NPA MOVEMENT – Quarterly (` in crore) PARTICULARS 30.06.2013 31.03.2014 30.06.2014 Opening Gross NPA 6260 6260 7570 Additions 2688 8443 2595 Sub Total 8948 14703 10165 Less: Reduction (a+b+c+d)) 1619 7133 2005 a) Write Off (Including Addn Prudential Write-off) 260 1591 800 b) Upgradation 1020
Slide 29: NPA Composition
NPA COMPOSITION Amt. in ` Crore Parameters JUN’13 SEPT’13 DEC’13 MAR’14 JUN’14 Gross Advances 251970 283024 289833 303431 305723 Sub-Standard 5178 4770 5211 3436 4167 Doubtful 2125 2705 2863 4134 3993 Loss 26 NIL NIL NIL NIL Provision Coverage Ratio (%) 58.18 57.77 57.39 60.11 60.10 www.canarabank.c
Slide 30: Sector-wise NPA Slippages
SECTOR-WISE NPA SLIPPAGES Amt. in ` Crore Q1 Q2 Q3 Q4 Q1 % to total SECTOR FY14 FY14 FY14 FY14 FY15 Slippages Micro & Small Ent. 278 278 282 38 631 24.31 Agriculture 265 196 243 719 390 15.05 Other Priority Sector 184 116 125 74 184 7.10 Total Priority Sector 727 590 650 831 1205 46.46 Medium Indust
Slide 31: Sector-wise NPA Outstanding
SECTOR- WISE NPA OUTSTANDING Amt. in ` Crore SECTOR Jun’13 Sep’13 Dec’13 Mar’14 Jun’14 Micro & Small Enterprises 1440 1625 1488 1727 1959 Agriculture 1000 1018 1016 979 1179 Other Priority Segments 460 368 341 250 358 Medium Enterprises 324 402 379 389 441 Large Industries 2141 3146 3420 3279 3067 O
Slide 32: Sectoral Contribution of NPA
SECTORAL CONTRIBUTION OF NPA Amt. in ` Crore Particulars Jun’13 Sep’13 Dec’13 Mar’14 Jun’14 Gross Advances 251970 283024 289833 303431 305723 Gross NPA 7329 7475 8074 7570 8160 Gross NPA % 2.91 2.64 2.79 2.49 2.67 Priority Sector Advances 83085 88280 93018 97762 103694 PS as % to Gross Advances 33.0
Slide 33: Restructured Assets
RESTRUCTURED ASSETS Amt. in ` Crore Total Restructured Restructured PA Restructured NPA A/cs No of A/Cs Amount No of A/Cs Amount No of A/Cs Amount A/c Restructured in Q1 2013-14 125 1365 9 318 134 1683 A/c Restructured in Q2 2013-14 3416 973 59 26 3475 999 A/c Restructured in Q3 2013-14 3032 3402 54
Slide 34: Restructured Assets Under CDR
RESTRUCTURED ASSETS UNDER CDR Amt. in ` Crore POSITION AS ON A/C Amount JUNE- 2013 84 12314 SEPTEMBER-2013 91 12932 DECECEMBER-2013 94 12185 MARCH-2014 96 10446 JUNE- 2014 94 9224 www.canarabank.com Page 34
Slide 35: Sector Wise Restructured Accounts
SECTOR WISE RESTRUCTURED ACCOUNTS Name of the Sector As on 30st Jun 2014 (Rs. In crore) Details of restructured Accounts No. of accounts Amount % to cumulatative Outstanding Amt. INFRASTRUCTURE 109 12062 50.26% Of Which Power - POWER 61 8871 36.96% State DISCOMS 6580 27.42% State Transmission - - -
Slide 36: Amount Restructured During Q1 FY15
AMOUNT RESTRUCTURED DURING Q1 FY15 Amt. in ` Crore No. of Accounts Amount 500 12 Agriculture 297 41 MSME 369 9 Housing / Education loan 45 986 Large Advances 188 310 Others 1399 1358 Total www.canarabank.com Page 36
Slide 37: Sector Wise Restructured Advances Outstanding as at June 2014
SECTOR WISE RESTRUCTURED ADVANCES OUTSTANDING AS AT JUNE 2014 Amt. in ` Crore No. of Accounts Amount Agriculture 9489 385 MSME 5614 643 Housing / Education loan 8598 308 Large Advances 551 13514 Others 1348 9150 Total 25600 24000 www.canarabank.com Page 37
Slide 38: Capital Adequacy – New Basel III Norms
CAPITAL ADEQUACY – NEW BASEL III NORMS CRAR of 10.23% at JUN 2014 Vs. 9% norm CET ratio at 7.12% vs. 5.5% norm Capital Tier I ratio at 7.39% vs. 7% norm Adequacy Ratio Tier II ratio at 2.84% Govt. holding at 69% Paid-up Capital at ` 461.26 crore Sufficient headroom available for raising further capi
Slide 39: Capital Adequacy – Basel III
CAPITAL ADEQUACY – BASEL III Amt. in ` Crore BASEL III Particulars JUN’13 SEPT’13 DEC-13 Mar'14 JUN’14 Risk-weighted 260699 273066 302533 312226 321819 Assets Tier I Capital 23260 23273 22609 23991 23802 CET: 8.51% CET: 8.13% CET: 7.13% CET: 7.41% CET: 7.12% Tier I Ratio% AT I: 0.41% AT I: 0.39% AT
Slide 40: Shareholding Pattern
SHAREHOLDING PATTERN As on JUNE 30, 2014 5.0 0.8 2.1 Govt. 69 5.6 6.0 FIIs 11.50 11.5 Insurance 6.04 Companies 69.0 Mutual 5.63 Funds Govt of India FIIs Residents Insurance Companies Mutual Funds 4.95 Individuals Resident Individuals Banks Others Banks 0.76 Others 2.12 www.canarabank.com Page 40
Slide 41: Financial Inclusion
FINANCIAL INCLUSION The Bank has been allotted 10122 villages and urban wards (1624 villages in more than 2000 population category, 8425 villages in less than 2000 population category and 73 urban wards). 610 Brick and Mortar Branches have been opened in FI villages, which have mobilized a busin
Slide 42: Financial Inclusion
FINANCIAL INCLUSION 1106 Farmers’ Clubs to disseminate the principles of development through credit among the rural masses. During the quarter, the Bank disbursed credit to the extent of `143 crore to 8796 SHGs. Holistic Provided life coverage to 18919 group members/ BSBD account holders Appro
Slide 43: New Products
NEW PRODUCTS 4 new MSME Schemes launched during the quarter: Canara MSME CAP- for financing against Property MSME VAHAN- to finance MSME Entrepreneurs for purchase of Passenger Vehicles Canara MSE SMART - for financing Professionals for business needs New Products MSE VIJETA – for financing of
Slide 44: Important Customer-Friendly Technology Initiatives
IMPORTANT CUSTOMER-FRIENDLY TECHNOLOGY INITIATIVES Canara e-info book extended to 8 regional languages (Hindi, English, Kannada, Tamil, Malayalam, Telugu, Marathi and Bengali) with added facilities, viz., facility for windows tablets, locker appointment booking and e-lounge locator. National Autom
Slide 45: Expanded Clientele Base
EXPANDED CLIENTELE BASE (In Lakhs) % Y-o-Y Jun’13 Mar’14 Jun’14 Y-o-Y Increase Growth 5.65 Clientele Base 499 555 565 66 13.2% Crore Strong No. of Deposit Clientele A/cs 435 489 498 63 14.5% Base No. of Borrowal A/cs 64 66 67 3 4.7% 66 lakhs Clientele added Y-o-Y www.canarabank.com Page 45
Slide 46: Major Events
MAJOR EVENTS Celebrating 19th July, 2014, the Banks’ Nationalization Day with 108 FI branches and 108 ATMs inaugurated by Shri Arun Jaitley, Hon’ble Union Minister for Finance, Corporate Affairs & Defence, Govt. of India. www.canarabank.com Page 46
Slide 47: Major Awards/Accolades in FY15
MAJOR AWARDS/ACCOLADES IN FY15 In recognition of the varied initiatives, the Bank was conferred with the following awards during the quarter: Conferred with “Asia HRD Award” under the category “Contribution to Organization” of the Asia HRD Congress Awards – 2014. Awarded by NABARD for its performa
Slide 48: Major Awards/Accolades in FY15
MAJOR AWARDS/ACCOLADES IN FY15 Conferred with “Gold Award” under the Corporate Category for “Innovation in Recruitment” and the Bank’s C&MD Shri R K Dubey was conferred with “Leading CEO of the Year - Platinum Award” under Individual Category instituted by prestigious M/s Greentech Foundation, New
Slide 49: Goals – Mar'15
GOALS – MAR’15 Aims to reach an aggregate business figure of over `8 lakh crore. Plans to take the number of branches to 6000+ and number of ATMs to 10000 by March 2015. Bank has received RBI’s approval for opening 3 more branches in UK. Further, the Bank plans to open branches in Dubai, Germa
Slide 50: www.canarabank.com
ete! dao AN Canara Bank www.canarabank.com