Canara Bank · NSE:CANBK
Canara Bank — Q1 FY2021-22 Earnings Presentation
48 slides from Canara Bank's earnings presentation, Jul 27, 2021
Slide 1: Cover letter to stock exchanges
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Slide 2: Financial Results: Q1 (FY 2021-22)
High-tech Banking Multi - dimensional excellence Financial Results: Q1(FY 2021-22) Page 1
Slide 3: Performance Highlights
189.90% y-o-y 14.38% 43.61% y-o-y Net Profit y-o-y Fee Based 1,177 Cr SB Income 2,89,933 Cr 1,337 Cr 12.91% 67.47% y-o-y y-o-y Non interest CASA Income 3,32,040 Cr 4,438Cr Global Business Performance surpassed 17,00,000 12.14% y-o-y Highlights 223bps y-o-y Cr Retail Term Deposits PCR 4,24,946 Cr 81.
Slide 4: Key Highlights
Key Highlights ₹ in Crore CET 1 Treasury 8.85% Income y-o-y growth 1,548 70bps y-o-y growth Domestic 54.18% Business Cash Retail Credit recorded a Recovery 1,15,291 growth of 2,458 y-o-y growth 1,37,911 y-o-y growth 9.57% y-o-y 44.67% Housing Loan RAM Credit 65,136 3,79,050 y-o-y growth y-o-y 13.15%
Slide 5: Contents
Contents Business Performance 6-13 Financial Performance 18-25 Investment 25-26 Asset Quality 29-36 Capital & Share Holding 38-39 Expanding Reach – Offline & Online 41-43 Subsidiaries, Associates & Joint Ventures 44-44 Goals for March 2022 45-45 Page 4
Slide 6: Business Performance
Financial Business Performance Performance Page 5
Slide 7: Business Performance
Business Performance ₹ in Crore Growth (%) Parameters Jun’20 Mar’21 Jun’21 Q-o-Q Y-o-Y Global Gross Business 1560144 1686030 1706422 1.21 9.38 Domestic Gross Business 1493806 1615864 1631717 0.98 9.23 Overseas Gross Business 66337 70166 74705 6.47 12.61 Global Deposits 909570 1010875 1021837 1.08 12
Slide 8: Domestic Deposit Mix
Domestic Deposit Mix ₹ in Crore Growth (%) Parameters Jun’20 Mar’21 Jun’21 Q-o-Q Y-o-Y Saving Deposits 253492 281525 289933 2.99 14.38 Current Deposits 40577 49131 42107 (14.30) 3.77 CASA Deposits 294069 330656 332040 0.42 12.91 Term Deposit 575566 632649 638441 0.92 10.92 Bulk Deposit 196632 212316
Slide 9: Domestic Deposit Mix
Domestic Deposit Mix 420333 424946 378934 Sustained growth in CASA and 330656 332040 Retail Term Deposit 294069 281525 289933 CASA increased by Rs 37,971 253492 Cr y-o-y, improving the CASA Ratio by 40 bps 196632 212316 213495 Retail Term Deposit Jun'20 Mar'21 Jun'21 witnessed a y-o-y (12.14%)
Slide 10: Advances Mix
Advances Mix ₹ in Crore RAM: 55.37 Jun‘21 Retail Loans Growth (%) 16.84 Parameters Jun’20 Mar’21 Jun’21 Corporate & Agriculture & others Allied Q-o-Q Y-o-Y 44.63 22.90 MSME 15.62 RAM Credit 344135 379704 379050 (0.17) 10.15 Retail 105218 115312 115291 (0.02) 9.57 RAM: 52.43% Agriculture & Allied 133
Slide 11: Achievement Under Mandated Targets – Priority Sector
Achievement Under Mandated Targets – Priority Sector Achieved the mandated norms in respect of: Total Priority (45.47 % to ANBC against 40% norm, 50.43% prior to PSLC) Mandated Norms under Agriculture (20.93% to ANBC against 18% norm, 25.89% prior to PSLC) Priority Sector Small and Marginal Fa
Slide 12: Retail Credit
Retail Credit ₹ in Crore HOUSING LOAN 65136 64326 Retail Loans Vehicle Loans 115291 57566 13433 105218 12299 Jun'20 Jun'21 Jun'20 Mar'21 Jun'21 Jun'20 Jun'21 ₹ in Crore Growth (%) Parameters Jun’20 Mar’21 Jun’21 Q-o-Q Y-o-Y Housing Loans 57566 64326 65136 1.26 13.15 Vehicle Loans 12299 13713 13433 (
Slide 13: Industry Credit
Industry Credit ₹ in Crore Non-Banking Financial Companies ( NBFC) 88647 (12.94%) Infrastructure 88384 (12.91%) Textiles 17472 (2.55%) Iron and Steel 16807 (2.45%) Commercial Real Estate 14081 (2.05%) Food Processing 13050 (1.90%) Engineering 12423 (1.81%) Petroleum, Coal Products and Nuclear Fuels
Slide 14: COVID-19 Credit Support
COVID – 19 Credit Support Guaranteed Emergency Credit Line No. of Loans – 453458 Total Amount disbursed – Rs10861 Cr PM SVANidhi No. of Loans – 156274 Total Amount disbursed – Rs156 Cr Health Care Sector No. of Loans Sanctioned – 62485 Total Amount Sanctioned – Rs 2473 Cr No of Loans Disbursed - 574
Slide 15: Rating Profile
Rating Profile External Rating - Wise Distribution of Domestic Advances above Rs. 25 crore External Rating - Wise (% of Total rated loan book above Rs 25 crore) Distribution of Domestic Jun’20 Mar’21 Jun’21 Corporate Advances External Outstanding % Share Outstanding % Share Outstanding % Share Ratin
Slide 16: Rating Profile
Rating Profile ₹ in Crore Rating Profile of Standard NBFC Exposure Parameters Jun’20 Mar’21 Jun’21 Rating Exposure % of share Exposure % of share Exposure % of share A & above 77265 97.48 58356 94.19 60620 94.45 BBB 1859 2.34 472 0.76 426 0.66 BB & Below 146 0.18 3129 5.05 3137 4.89 Total 79269 100
Slide 17: Financial Performance
Financial Performance Page 16
Slide 18: Total Income
Total Income ₹ in Crore Quarterly Parameters Growth Growth Jun’20 Mar’21 Jun’21 Q-o-Q(%) Y-o-Y(%) Interest Income 18036 16316 16772 2.79 (7.01) Interest on Advances 13118 11747 12026 2.38 (8.32) Interest on Investments 4272 4061 4150 2.19 (2.86) Other Interest Income 646 508 596 17.32 (7.74) Non-Int
Slide 19: Non-Interest Income
Non-Interest Income ₹ in Crore Quarterly Parameters Growth Growth Jun’20 Mar’21 Jun’21 Q-o-Q(%) Y-o-Y(%) Fee Based Income (i+ii+iii) 931 1770 1337 (24.46) 43.61 Commission Exchange & Brokerage (i) 243 322 263 (18.32) 8.23 Commission on LC/BG/DDs 168 165 156 (5.45) (7.14) Govt. Business 30 50 40 (20.
Slide 20: Total Expense
Total Expense ₹ in Crore Quarterly Parameters Growth Growth Jun’20 Mar’21 Jun’21 Q-o-Q(%) Y-o-Y(%) Interest Expenses 11940 10727 10625 (0.95) (11.01) Interest Paid on Deposits 11108 9973 9882 (0.91) (11.04) Other Interests 832 754 743 (1.46) (10.70) Operating Expenses 4460 5094 4834 (5.10) 8.39 Staf
Slide 21: Financials at a Glance
Financials at a Glance ₹ in Crore Quarterly Parameters Growth Growth Jun’20 Mar’21 Jun’21 Q-o-Q(%) Y-o-Y(%) Total Interest Income 18036 16316 16772 2.79 (7.01) Total Interest Expenses 11940 10727 10625 (0.95) (11.01) Net Interest Income 6096 5589 6147 9.98 0.84 Total Income 20686 21523 21210 (1.45)
Slide 22: Provisions
Provisions ₹ in Crore Quarterly Parameters Growth Growth Jun’20 Mar’21 Jun’21 Q-o-Q(%) Y-o-Y (%) Total Provision 3880 4692 4574 (2.51) 17.89 NPAs 3550 4428 2335 (47.27) (34.23) Standard Asset 763 (989) 0 -- -- Depreciation on Investment (210) 238 50 (78.99) -- Income Tax 53 558 845 51.43 1494.34 Oth
Slide 23: Other Provisions
Other Provisions ₹ in Crore Particulars Provision made during Mar’21 (Q) Provision made during Jun’21 (Q) Additional provision for Covid-19/ 500 842 Resolution Framework Delayed RP 586 22 Large Borrower Framework 60 (40) Others (689) 520 Total 457 1344 Page 22
Slide 24: Key Ratios
Key Ratios (%) Jun’20 Mar’21 Jun’21 Ratios Quarterly Cumulative Quarterly Cumulative Quarterly Cumulative Return on Assets 0.16 0.16 0.36 0.23 0.41 0.41 Return on Net-worth 4.51 4.51 10.76 6.71 11.53 11.53 Cost to Income 51.00 51.00 47.18 49.15 45.67 45.67 67.00 CD Ratio 71.53 71.53 66.79 66.79 67.0
Slide 25: Key Ratios – Q1 FY22
Key Ratios – Q1 FY22 Cost Of Deposits (%) Cost Of Funds (%) Yield on 4.56 4.95 3.82 3.71 Advances(%) 4.19 4.02 8.22 7.05 7.09 Jun'20 Mar'21 Jun'21 Jun'20 Mar'21 Jun'21 Jun'20 Mar'21 Jun'21 Yield on Funds(%) Yield on NIM(%) 6.89 Investments(%) 2.84 2.71 7.10 5.81 5.85 2.50 6.53 6.40 Jun'20 Mar'21 Jun
Slide 26: Investments
Investments Page 25
Slide 27: Investment Portfolio
Investment Portfolio Sl. Parameters Jun’20 Mar’21 Jun’21 ₹ in Crore (1) Domestic Investments 250598 263136 274865 Modified Duration (a) SLR 204293 219854 232856 (b) Non SLR 46305 43282 42009 5.79 5.73 5.71 SLR as % to Dom. 81.52 83.55% 84.72 Investments 4.76 4.89 4.81 (i) Held To Maturity (HTM) 1820
Slide 28: Non SLR Portfolio
Non SLR Portfolio ₹ in Crore % Share Y-o-Y Variation Parameters Jun’20 Mar’21 Jun’21 (Jun’21) Amount % PSU Bonds 4653 4603 4450 10.59 (203) (4.36) Corporate and Other Bonds 7935 8445 7792 18.54 (143) (1.80) Special Govt. Sec excl. Recap Bonds 3867 2719 2589 6.16 (1278) (33.04) CG Recap. Bond 18238 1
Slide 29: Asset Quality
Asset Asset Quality Quality Page 28
Slide 30: Asset Quality Ratios
Asset Quality Ratios ₹ in Crore Parameters Jun’20 Mar’21 Jun’21 Gross NPA 57526 60288 58215 Gross NPA (%) 8.84 8.93 8.50 Net NPA 24355 24442 22434 Net NPA (%) 3.95 3.82 3.46 Provision Coverage Ratio (%) 78.95 79.68 81.18 Credit Cost (%) 2.58 2.09 2.04 Slippage Ratio (%) 0.24 2.35 0.69 Page 29
Slide 31: Movement of NPA
Movement of NPA ₹ in Crore Parameters Jun’20 Mar’21 Jun’21 NPA as at the beginning of the period 61127 49789 60288 -Cash Recovery towards Book Liability(i)# 1440 2238 1598 -Up-gradation (ii) 620 356 2292 -Write Off (iii) 3216 2194 2574 Total Reduction (i+ii+iii) 5276 4788 6464 Fresh Addition 1675 15
Slide 32: NPA Classification: Sector Wise
NPA Classification: Sector Wise ₹ in Crore Parameters Jun’20 Mar’21 Jun’21 Advance O/s GNPA (%) (Jun’21) Domestic Gross NPA 51053 54635 52703 661236 7.97 Global Gross NPA 57526 60288 58215 684585 8.50 Retail 2392 1873 1765 115291 1.53 Agriculture 9271 9467 9239 156801 5.89 MSME 11492 14929 15590 106
Slide 33: Retail Sector NPA
Retail Sector NPA ₹ in Crore Advance Parameters Jun’20 Mar’21 Jun’21 O/s GNPA (%) (Jun’21) Total Retail NPA 2392 1873 1765 115291 1.53 Housing Loans 871 799 745 65136 1.14 Vehicle Loans 305 317 288 13433 2.14 Education Loan 417 240 216 12278 1.76 Other Personal Loans 799 517 516 24444 2.11 Page 32
Slide 34: NPA Classification: Industry wise
NPA Classification : Industry wise ₹ in Crore Sector/Scheme Jun’20 Mar’21 Jun’21 GNPA (%) Infrastructure 7853 7888 7761 8.78 Iron & Steel 1551 1169 1005 5.98 Textile 1084 1722 1349 7.72 Food Processing 1664 1553 1294 9.92 Engineering 268 757 757 6.10 Page 33
Slide 35: Resolution Framework for COVID-19
Resolution Framework for COVID-19 ₹ in Crore Sector No. of accounts restructured under Liability Total amount received Out of (C), total prepaid RBI Resolution Framework in (B) subsequent to amount, i.e, paid actuals (A) restructure (C) before due date RESOLUTION FRAMEWORK COVID-19 : 1.0 Personal Lo
Slide 36: Special Mention Accounts (SMA)
Special Mention Accounts (SMA) ₹ in Crore SMA Position of the Bank (Rs. 5 Cr and above) Mar’21 Jun’21 No of % to Gross % to Gross Parameters Outstanding No of Accounts Outstanding Accounts Advances Advances SMA 2 126 5023 0.70 234 8389 1.06 SMA 1 261 10359 1.47 164 4656 0.59 TOTAL SMA 1 & 2 387 1538
Slide 37: Accounts referred to NCLT
Accounts referred to NCLT ₹ in Crore As on 30.06.2020 As on 30.06.2021 Parameters No of Provision No of Book Provision Book Liability Provision Coverage Provision Coverage Accounts Accounts Liability 1st List - RBI 7 7853 7853 100% 7 3052 3052 100% 2nd List – RBI 18 6246 6198 99% 14 5568 5522 99% To
Slide 38: Capital and Shareholding
Capital and Shareholding Page 37
Slide 39: Capital Funds (Basel III)
Capital Funds (Basel III) ₹ in Crore CRAR % Parameters Jun’20 Mar’21 Jun’21 Tier I 48087 53437 54278 13.18 13.36 12.77 Common Equity 42189 45624 46465 3.10 3.02 Additional Tier I 5898 7813 7813 3.48 Tier II 18040 16406 15854 1.49 1.47 Total (Tier I+II) 66127 69843 70132 1.14 Risk-weighted Assets 517
Slide 40: Shareholding Pattern as on June 30, 2021
Shareholding Pattern as on June 30, 2021 Staff Others 4.07 Resident Individuals 1.20 10.04 FII/FPIs 3.92 Mutual Funds 3.10 Insurance Companies 8.34 Government of India 69.33 Page 39
Slide 41: Expanding Reach
Expanding Expanding Reach Reach Page 40
Slide 42: Digital banking products
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Slide 43: Expanding the reach
Expanding the reach Parameters Jun’20 Mar’21 Jun’21 General Branches(a) 9874 9798 9235 Specialised Branches(b) 577 618 642 Total Domestic Branches(a+b) 10451 10416 9877 Overseas Branches 5 4 4 BC Points 9383 9129 9053 Total Banking Outlets 19839 19549 18934 ATM 12830 12272 11819 Recycler 567 1180 13
Slide 44: Financial Inclusion
Financial Inclusion ACCOUNTS OPENED UNDER PMJDY TRANSACTIONS THROUGH BC CHANNEL (IN LACS) 5568 138 5211 133 JUN'20 JUN'21 JUN'20 JUN'21 Amount of Transactions ( Rs in Cr) DEPOSITS MOBILISED UNDER PMJDY (RS IN CR) 6103 ENROLMENTS UNDER SOCIAL SECURITY SCHEMES Jun’20 (Q) Jun’21(Q) 5541 Pradhan Mantri
Slide 45: Subsidiaries, Associates & Joint Ventures
Subsidiaries, Associates & Joint Ventures ₹ in Crore Profit after Tax(Our Share) Name of the Entity Holding(%) Jun’20 Jun’21 SUBSIDIARIES Canara Robeco Asset Management Company Ltd. 51 2.86 5.68 Canara Bank Securities Ltd. 100 4.79 4.44 Canara Bank (Tanzania) Ltd. 100 0.99 1.72 Canbank Computer Serv
Slide 46: Goals for Mar 2022
Goals for Mar 2022 Guidance Parameters (31.03.2022) Deposits Growth (Global) 8.20% Advances Growth (Global) 7.50% Business Growth (Global) 7.90% NIM (Global) (Annualized) 2.75% CASA (Domestic CASA to Domestic Deposit) 36.50 Gross NPA (Global) 7.90% Net NPA (Global) 2.80% PCR (Global) 83.95% Slippage
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