Canara Bank · NSE:CANBK
Canara Bank — Q1 FY2023-24 Earnings Presentation
47 slides from Canara Bank's earnings presentation, Jul 24, 2023
Slide 1: Exchange filing cover letter
Ref:: SD:218/219/11/12::2023-24 24.07.2023 The Vice President The Vice President BSE 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 - 400 051 Scrip Code: 532483 Scrip Code: CA
Slide 2: Financial Results: Q1 (FY 2023-24)
Inspired by Customers driven by Digital Financial Results: Q1 (FY 2023-24) Page 1
Slide 3: Performance Highlights
Performance Highlights ₹ in Crore Global Business Gross Advances Operating Profit Net Profit 9.38% 13.27% 15.11% 74.83% y-o-y y-o-y y-o-y y-o-y 20,80,141 8,87,671 7,604 3,535 Net Interest Income PCR RAM Credit 27.72% 88.04% 12.89% y-o-y y-o-y y-o-y 8,666 353 bps 4,91,475 Gross NPA Net NPA 5.15% 1.57
Slide 4: Key Highlights
Key Highlights ₹ in Crore 13.64% 29.37% 10.64% y-o-y y-o-y y-o-y Housing Loan Gold Loan Retail Credit 85,884 1,29,800 1,42,297 662 bps 34 bps 133 bps y-o-y y-o-y y-o-y Return on Equity Return on Assets CRAR 22.95% 0.99% 16.24% 115 bps 27 bps y-o-y y-o-y Cost to Income Net Interest Margin 43.61% 3.05
Slide 5: Contents
Contents Business Performance 6-13 Financial Performance 15-22 Investment 24-25 Asset Quality 27-32 Capital & Share Holding 34-35 Environmental, Social & Governance 37-37 Distribution Network & Digital Footprint 39-42 Subsidiaries, Associates & Joint Ventures 43-43 Goals for March 2024 vs Actuals fo
Slide 6: Business Performance
Inspired by Customers driven by Digital Business Performance Page 5
Slide 7: Business Performance
Business Performance ₹ in Crore Growth (%) Parameters Jun’22 Mar'23 Jun'23 Q-o-Q Y-o-Y Global Gross Business 1901776 2042001 2080141 1.87 9.38 Domestic Gross Business 1801047 1912508 1947569 1.83 8.14 Overseas Gross Business 100729 129493 132572 2.38 31.61 Global Gross Advances 783654 862782 887671
Slide 8: Domestic Deposit Mix
Domestic Deposit Mix ₹ in Crore Growth (%) Parameters Jun’22 Mar'23 Jun'23 Q-o-Q Y-o-Y CASA Deposits 361125 366472 364464 (0.55) 0.92 Term Deposit 691782 728274 740042 1.62 6.98 Retail Term Deposit 451083 461737 466162 0.96 3.34 Total Domestic Deposit 1052907 1094746 1104506 0.89 4.90 Global Deposit
Slide 9: Advances Mix
Advances Mix ₹ in Crore RAM: 55% Jun’23 Retail Loans 16% Growth (%) Corporate & others Agriculture & Allied Parameters Jun’22 Mar’23 Jun’23 45% 25% Q-o-Q Y-o-Y MSME 14% RAM Credit 435346 477005 491475 3.03 12.89 Retail 128615 140051 142297 1.60 10.64 RAM: 55% Agriculture & Allied 185680 213327 22275
Slide 10: Exceeded the Mandated Targets under Priority Sector
Exceeded the Mandated Targets under Priority Sector Exceeded the mandated norms in respect of: Total Priority (45.59% to ANBC against 40% norm) Agriculture (20.37% to ANBC against 18% norm) Mandated Norms under Small and Marginal Farmers (15.08% to ANBC against 10.00% norm) Priority Sector N
Slide 11: RAM & Retail Credit
RAM & Retail Credit RAM ₹ in Crore 491475 12.89% 435346 Jun'22 Jun'23 Retail Loans Housing Loans 142297 85884 10.64% 13.64% 128615 75578 Jun'22 Jun'23 Jun'22 Jun'23 Page 10
Slide 12: Industry Credit
Industry Credit ₹ in Crore Growth (in %) Sector/Scheme Jun’22 Mar’23 Jun’23 Q-o-Q Y-o-Y Infrastructure 105194 115542 115220 (0.28) 9.53 NBFC 122307 138973 144804 4.20 18.39 Textile 18705 18055 17823 (1.28) (4.72) Iron & Steel 16473 15709 15564 (0.92) (5.52) Commercial Real Estate 15414 20460 19970 (
Slide 13: Rating Profile
Rating Profile ₹ in Crore External Rating - Wise Distribution of Domestic Advances above Rs 25 crore (% of Total rated loan book above Rs 25 crore) Jun'22 Mar'23 Jun'23 External Outstanding % Share Outstanding % Share Outstanding % Share Rating A and 193935 78 209169 81 220189 81 above BBB 27732 11
Slide 14: Rating Profile
Rating Profile ₹ in Crore Rating Profile of Standard NBFC Domestic Exposure Jun'22 Mar'23 Jun'23 External Rating Exposure % Share Exposure % Share Exposure % Share A and above 121168 99 129347 99 135871 99 BBB 722 567 366 1 1 1 BB and below 196 18 26 Total 122086 100 129932 100 136263 100 Page 13
Slide 15: Financial Performance
Inspired by Customers driven by Digital Financial Performance Page 14
Slide 16: Total Income
Total Income ₹ in Crore Quarterly Parameters Growth Jun'22 Mar'23 Jun'23 Q-o-Q(%) Y-o-Y(%) Interest Income 18177 23910 25004 4.58 37.56 Interest on Advances 12949 17538 18064 3.00 39.50 Interest on Investments 4481 5263 5349 1.63 19.37 Other Interest Income 747 1109 1591 43.46 112.99 Non-Interest In
Slide 17: Non-Interest Income
Non-Interest Income ₹ in Crore Quarterly Parameters Growth Jun'22 Mar’23 Jun'23 Q-o-Q(%) Y-o-Y(%) Fee Based Income (i+ii+iii) 1577 1905 1636 (14.12) 3.74 Commission Exchange & Brokerage(i) 256 387 263 (32.04) 2.73 Service Charges(ii) 809 926 812 (12.31) 0.37 Miscellaneous(iii) 512 592 561 (5.24) 9.5
Slide 18: Total Expenses
Total Expenses ₹ in Crore Quarterly Parameters Growth Jun'22 Mar'23 Jun'23 Q-o-Q(%) Y-o-Y(%) Interest Expenses 11392 15293 16338 6.83 43.42 Interest Paid on Deposits 10583 14097 15043 6.71 42.14 Other Interests 809 1196 1295 8.28 60.07 Operating Expenses 5354 6141 5881 (4.23) 9.84 Staff Cost 3416 37
Slide 19: Financials at a Glance
Financials at a Glance ₹ in Crore Quarterly Parameters Growth Jun'22 Mar'23 Jun'23 Q-o-Q(%) Y-o-Y(%) Net Interest Income 6785 8617 8666 0.57 27.72 Total Interest Income 18177 23910 25004 4.58 37.56 Total Interest Expenses 11392 15293 16338 6.83 43.42 Total Income 23352 28686 29823 3.96 27.71 Total E
Slide 20: Continuous & Consistent Growth
Continuous & Consistent Growth 88.04 7604 87.31 7252 86.32 6905 6952 85.36 84.51 6606 3535 3175 Jun'22 Sep'22 Dec'22 Mar'23 Jun'23 Jun'22 Sep'22 Dec'22 Mar'23 Jun'23 2882 2525 Operating Profit (₹ in Cr) 2022 PCR (%) 6.98 2.48 6.37 5.89 2.19 5.35 5.15 1.96 Jun'22 Sep'22 Dec'22 Mar'23 Jun'23 1.73 1.57
Slide 21: Provisions
Provisions ₹ in Crore Quarterly Parameters Growth Jun'22 Mar'23 Jun'23 Q-o-Q(%) Y-o-Y(%) Total Provision 4584 4077 4069 (0.20) (11.23) NPAs 2673 2399 2417 0.75 (9.58) Standard Asset 133 (71) 3 -- (97.74) Non Performing Investment 1535 47 332 606.38 (78.37) Income Tax 894 982 1350 37.47 51.01 Others
Slide 22: Key Ratios
Key Ratios (%) Jun'22 Mar’23 Jun’23 Ratios Quarterly Cumulative Quarterly Cumulative Quarterly Cumulative Return on Assets 0.65 0.65 0.95 0.81 0.99 0.99 Return on Net-worth 16.33 16.33 21.68 19.49 22.95 22.95 Cost to Income 44.76 44.76 45.85 44.79 43.61 43.61 CD Ratio 70.09 70.09 73.17 73.17 74.44 7
Slide 23: Key Ratios
Key Ratios NIM(%) Cost Of Deposits (%) Yield on 3.05 5.22 Advances(%) 2.95 4.38 3.99 8.43 7.70 2.78 7.03 Jun'22 Mar'23 Jun'23 Jun'22 Mar'23 Jun'23 Jun'22 Mar'23 Jun'23 Cost Of Funds (%) Yield on Funds(%) Yield on Investments(%) 6.85 4.76 7.28 4.03 6.42 6.69 3.64 5.81 6.43 Jun'22 Mar'23 Jun'23 Jun'22
Slide 24: Investments
Inspired by Customers driven by Digital INVESTMENTS Page 23
Slide 25: Investment Portfolio
Investment Portfolio ₹ in Crore Sl. No Parameters Jun'22 Mar'23 Jun’23 1 Domestic Investments 309482 321699 334955 (a) SLR 269616 283770 298393 (b) Non SLR 39866 37929 36562 SLR as % to Dom. Investments 87.12 88.21 89.08 (i) Held To Maturity (HTM) 249809 269303 275423 (ii) Available For Sale (AFS) 5
Slide 26: Non SLR Portfolio
Non SLR Portfolio ₹ in Crore % Share Y-o-Y Variation Parameters Jun'22 Mar'23 Jun'23 (Jun'23) Amount % PSU Bonds 4039 3538 3503 9.58 (536) (13.27) Corporate and Other Bonds 7548 6616 5793 15.84 (1755) (23.25) Special Govt. Sec excl. Recap Bonds 2407 1898 1793 4.90 (614) (25.51) CG Recap. Bond 18238
Slide 27: Asset Quality
Inspired by Customers driven by Digital Asset Quality Page 26
Slide 28: Asset Quality Ratios
Asset Quality Ratios ₹ in Crore Parameters Jun'22 Mar'23 Jun'23 Gross NPA 54734 46160 45727 Gross NPA (%) 6.98 5.35 5.15 Net NPA 18505 14349 13461 Net NPA (%) 2.48 1.73 1.57 Provision Coverage Ratio (%) 84.51 87.31 88.04 Credit Cost (%) 1.38 1.17 1.10 Slippage Ratio (%) 0.36 0.34 0.36 Page 27
Slide 29: Movement of NPA
Movement of NPA ₹ in Crore Parameters Jun'22 Mar'23 Jun'23 NPA as at the beginning of the period 55652 50143 46160 -Cash Recovery towards Book Liability(i) 1886 1904 1127 -Up-gradation(ii) 756 735 800 -Write Off(iii) 2225 4317 1934 Total Reduction(i+ii+iii) 4867 6956 3861 Fresh Addition 3949 2973 34
Slide 30: NPA Classification: Sector Wise
NPA Classification: Sector Wise ₹ in Crore Advance O/s Parameters Jun'22 Mar'23 Jun'23 GNPA (%) (Jun'23) Domestic Gross NPA 49810 41387 41427 843063 4.91 Global Gross NPA 54734 46160 45727 887671 5.15 Retail 1844 2020 2082 142297 1.46 Housing Loans 674 568 642 85884 0.75 Vehicle Loans 256 226 242 15
Slide 31: NPA Classification: Industry wise
NPA Classification : Industry wise ₹ in Crore Sector/Scheme Jun'22 Mar'23 Jun'23 GNPA (%) Infrastructure 9027 6079 5466 4.74 Iron & Steel 909 739 721 4.63 Textile 1429 1284 1299 7.29 Food Processing 1337 1119 1124 9.29 Engineering 988 955 969 7.13 Page 30
Slide 32: Special Mention Accounts (SMA)
Special Mention Accounts (SMA) ₹ in Crore SMA Position of the Bank (₹ 5 Cr and above) Jun’22 Jun'23 No of % to Gross No of % to Gross Parameters Outstanding Outstanding Accounts Advances Accounts Advances SMA 2 288 3439 0.38 237 3367 0.38 SMA 1 113 1734 0.19 72 3482 0.39 TOTAL SMA 1 & 2 401 5173 0.5
Slide 33: Accounts referred to NCLT
Accounts referred to NCLT ₹ in Crore Jun’22 Jun’23 Parameters No of Provision No of Provision Book Liability Provision Coverage(%) Book Liability Provision Coverage(%) Accounts Accounts 1st List - RBI 6 2345 2345 100 4 1106 1106 100 2nd List – RBI 13 5614 5601 99 11 5289 5289 100 Total RBI 1 & 2 19
Slide 34: Capital & Shareholding
Inspired by Customers driven by Digital Capital & Shareholding Page 33
Slide 35: Capital Funds (Basel III)
Capital Funds (Basel III) ₹ in Crore CRAR % Parameters Jun'22 Mar'23 Jun'23 16.68 16.24 Tier I 65869 78236 80982 14.91 2.90 2.66 Common Equity 56983 65814 68561 Additional Tier I 8886 12422 12421 2.78 2.19 2.08 Tier II 15138 16466 15878 1.64 Total (Tier I+II) 81007 94702 96860 Risk-weighted Assets 5
Slide 36: Shareholding Pattern as on June 30th, 2023
Shareholding Pattern as on June 30th,2023 Staff, 0.71 Resident Individuals, 9.94 Others, 2.62 FIIs/FPIs, 8.92 Mutual Funds, 4.62 Insurance Companies, 10.26 Government of India, 62.93 Page 35
Slide 37: Environmental, Social & Governance
Inspired by Customers driven by Digital Environmental, Social & Governance Page 36
Slide 38: Environmental, Social & Governance (ESG) Practices
Environmental, Social & Governance (ESG) Practices Environmental Social Governance Within communities, Bank engages in helping The Bank has now in place its first ESG Policy As a part of Green initiatives, Bank proposes to and uplifting the underserved communities (Sustainability Framework), w
Slide 39: Distribution Network
Inspired by Customers driven by Digital Distribution Network Page 38
Slide 40: Distribution Network
Distribution Network Parameters Jun'22 Mar'23 Jun'23 General Branches(a) 8927 8883 8865 Specialised Branches(b) 805 823 788 Total Domestic Branches(a+b) 9732 9706 9653 Overseas Branches 3 3 3 BC Points 8906 12918 13427 Total Banking Outlets 18641 22627 23083 ATM 10802 10726 10683 Recycler 1399 1404
Slide 41: Digital Footprint
Inspired by Customers driven by Digital Digital Footprint Page 40
Slide 42: Digital Footprint
Digital Footprint 385.36 5.24 142.42 251.65 96.33 280.04 4.61 220.52 JUN'22 JUN'23 JUN'22 JUN'23 JUN'22 JUN'23 JUN'22 JUN'23 MeitY Digital Transactions( Nos in Internet Banking Registrations (Nos in E-Transactions (Nos in Crores) Debit Card Outstanding (Nos in Crore) Lakhs) Crores) 177.61 2.19 0.62
Slide 43: New Digital Initiatives
New Digital Initiatives First PSB to enable UPI payments through RuPay Credit Card in Mobile Among all Public and Private Banking App sector Banks in Digital Banking and Merchant Acquisition by Ministry of First Bank to enable SHG On Us and Ranked Electronics & Information Off Us Dual Authorisation
Slide 44: Subsidiaries & Associates
Subsidiaries & Associates ₹ in Crore Total Profit Our share Name of the Entity Holding(%) Jun’23 SUBSIDIARIES Canara Robeco Asset Management Company Ltd. 51 22.75 11.60 Canara HSBC Life Insurance Company Ltd. 51 6.38 3.25 Canbank Factors Ltd. 70 1.63 1.14 Canbank Computer Services Ltd. 69.14 3.64 2.
Slide 45: Goals for March 2024 vs Actuals for June 2023
Goals for March 2024 vs Actuals for June 2023 Guidance Parameters Actuals as on 30.06.2023 (31.03.2024) Business Growth (Global) 10.00% 9.38% Advances Growth (Global) 10.50% 13.27% Deposits Growth (Global) 8.50% 6.65% CASA (Domestic CASA to Domestic Deposit) 35.00% 33.00% NIM (Global)(Annualized) 3.
Slide 46: 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 47: 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 46