Canara Bank · NSE:CANBK

Canara Bank — Q1 FY13 Earnings Presentation

38 slides from Canara Bank's earnings presentation, June 2012

  1. Slide 1: Performance Highlights June 2012

    PERFORMANCE HIGHLIGHTS JUNE 2012 www.canarabank.com Page 1

  2. Slide 2: Highlights Q1 FY13

    HIGHLIGHTS Q1 FY13  Total Business at ` 560203 crore  Total Deposits at ` 334619 crore  Advances (net) at ` 225584 crore  Net Profit at ` 775 crore Major Highlights  NIM at 2.40%  Strong Capital Adequacy Ratio at 13.22%  Tier I Capital Ratio at 10.06%  Cash Recovery at `594 crore  332 New B

  3. Slide 3: Total Business

    TOTAL BUSINESS 3 Yr CAGR at 17% 600,000 560203 515165 500,000 412649 400,000 ` . Crore 300,000 200,000 100,000 Jun-10 Jun-11 Jun-12 www.canarabank.com Page 3

  4. Slide 4: Aggregate Deposits

    AGGREGATE DEPOSITS 3 Yr CAGR at 18% 350,000 334619 325,000 300150 300,000 275,000 250,000 238855 ` . Crore 225,000 200,000 175,000 150,000 125,000 100,000 Jun-10 Jun-11 Jun-12 www.canarabank.com Page 4

  5. Slide 5: Net Advances

    NET ADVANCES 3 Yr CAGR at 14% 250,000 225584 225,000 215015 200,000 173794 ` . Crore 175,000 150,000 125,000 100,000 75,000 50,000 Jun-10 Jun-11 Jun-12 www.canarabank.com Page 5

  6. Slide 6: Income, Expenditure and Profit

    INCOME, EXPENDITURE AND PROFIT Amt. in ` Crore Q1 Y-o-Y FY12 FY13 Incr (%) Interest Income 7157 8473 18.4 Interest Expenditure 5388 6629 23.1 Net Interest Income 1769 1844 4.2 Non-Interest Income 551 693 25.7 Total Income 7708 9165 18.9 Total Expenditure 6437 7772 20.7 Operating Expenses 1050 1142 8

  7. Slide 7: Provisions

    PROVISIONS Amt. in ` Crore Q1 FY12 FY13 Provisions for NPA 285 477 Standard Assets 50 65 Income Tax 200 200 Provision/Write-back of Depreciation of Investments 9 (205) Other Provisions 0 82 Total Provisions 544 619 www.canarabank.com Page 7

  8. Slide 8: Other Income

    OTHER INCOME Amt. in ` Crore Q1 FY12 FY13 Commission & Exchange 173.86 195.34 Profit from Exchange Transaction 96.00 129.88 Trading Profit -76.97 98.83 Dividend Income 62.47 6.71 Recovery in w/off A/cs 61.70 46.81 Other Misc. Income 233.96 215.04 Total Other Income 551.02 692.61 www.canarabank.com P

  9. Slide 9: Major Components of Income

    MAJOR COMPONENTS OF INCOME JUNE 2011 JUNE 2012 Other Income Other Income 6.5% Inter Bk Int 7.3% Inter Bk Int 2.2% 0.9% Investment Investment Income Income 20.6% 23.3% Int on Adv 68.0% Int on Adv 71.1% www.canarabank.com Page 9

  10. Slide 10: Earnings Profile

    EARNINGS PROFILE Q1 In Percent FY12 FY13 NIM 2.39 2.40 ROAA 0.88 0.83 EPS (`) 16.38 17.50 Book Value 378.08 452.75 ROE 15.87 15.84 Cost-Income Ratio 45.24 45.04 NIM at 2.40% www.canarabank.com Page 10

  11. Slide 11: Earnings

    EARNINGS (In `) 97.83 100 453 73.69 74.1 500 431 80 450 378 60 400 359 350 306 40 16.38 17.5 300 20 250 0 200 EPS (INR) BV (Rs) Mar-10 Mar-11 Mar-12 Jun-11 Jun-12 Mar-10 Mar-11 Mar-12 Jun-11 Jun-12 Increase in Book Value on Enlarged Capital www.canarabank.com Page 11

  12. Slide 12: Trend in Cost and Yield (%)

    TREND IN COST AND YIELD (%) In Percent Jun’11 Sep’11 Dec’11 Mar’12 Jun’12 Cost of Deposits 7.05 7.13 7.27 7.35 7.89 Cost of Funds 6.49 6.55 6.59 6.72 7.12 Yield on Advances 10.50 10.72 10.85 10.93 11.12 Yield on Funds 8.62 8.76 8.79 8.94 9.10 Yield on Investments 7.86 7.89 7.93 7.96 8.10 www.canarab

  13. Slide 13: Business Profile

    BUSINESS PROFILE Amt. in ` Crore Y-o-Y Jun’11 Jun’12 Growth (%) Global Business 515165 560203 9.0 Global Deposits 300150 334619 11.5 Global Advances (Net) 215015 225584 5.0 CD Ratio (%) 71.64 67.41 - www.canarabank.com Page 13

  14. Slide 14: Composition of Deposits

    COMPOSITION OF DEPOSITS Amt. in ` Crore Y-o-Y Jun’11 Jun’12 Growth (%) Savings Deposits 60912 66504 9.2 CASA Deposits 76105 77902 2.4 CASA Ratio 26.28 24.07 -- Term Deposits 224045 256717 14.6 www.canarabank.com Page 14

  15. Slide 15: Priority Credit Segments

    PRIORITY CREDIT SEGMENTS  Outstanding Priority Sector Credit reached `65249 crore in June 2012 covering 41.69 lakh borrowers  Agricultural credit reached ` 31367 crore consisting 33.92 lakh farmers  During the first quarter an amount of `6949 crore has been disbursed under agriculture Priority Se

  16. Slide 16: Retail and MSME Credit Segments

    RETAIL AND MSME CREDIT SEGMENTS  Educational loan outstanding stood at ` 4000 crore covering 2.07 lakh students  The Bank has formulated a new Education Loan Scheme for Vocational Education and Training Courses.  The Bank’s outstanding retail lending portfolio reached `22848 crore. Retail & MSME

  17. Slide 17: Financial Inclusion

    FINANCIAL INCLUSION  The Bank has covered 1618 allotted villages in 23 states, under Brick and Mortar Branch Model (206 villages) and Business Correspondent model (1412 villages)  Customer Service Providers (CSPs) appointed by Corporate BCs (M/s i25 Rural Mobile Commerce Services and M/s Holistic

  18. Slide 18: Financial Inclusion

    FINANCIAL INCLUSION  Formed 3.72 lakh Self Help Groups as at June 2012, with credit linking of 3.65 lakh SHGs  Credit outstanding under 86276 SHGs accounts amounted to `1330 crore.  Disbursed credit of `111.36 crore in 5580 SHGs during the first Holistic quarter Approach to  `1439 crore credit p

  19. Slide 19: Financial Inclusion

    FINANCIAL INCLUSION  Electronic Benefit Transfer (EBT) for payment of MGNREGA wages and Social Security Pension in Chitradurga in Karnataka (`8.38 crore has been released to 52000 social security pensioners)  In Tamil Nadu, 75000 beneficiaries have been covered out of 80000 beneficiaries allotted

  20. Slide 20: Returns for the Shareholders

    RETURNS FOR THE SHAREHOLDERS 140% 110% 110% 120% 100% 100% 80% 80% 70% 80% 60% 40% 20% 0% DIVIDEND FY07 FY08 FY09 FY10 FY11 FY12 www.canarabank.com Page 20

  21. Slide 21: Shareholding Pattern

    SHAREHOLDING PATTERN As on June 30, 2012 www.canarabank.com Page 21

  22. Slide 22: Capital Adequacy

    CAPITAL ADEQUACY  CRAR of 13.22% at June 2012 Strong  Tier I ratio at 10.06% Capital Adequacy  Tier II ratio at 3.16% Ratio  Govt. holding at 67.72%  Paid-up Capital at `443 crore Strong Capital Adequacy, with sufficient headroom for raising further capital www.canarabank.com Page 22

  23. Slide 23: Capital Adequacy – Basel II

    CAPITAL ADEQUACY – BASEL II 14 3.78 3.41 3.63 3.74 3.16 12 10 8 10.35 9.59 9.15 9.48 6 10.06 4 2 0 Jun.11 Sep.11 Dec.11 Mar.12 Jun.12 Total CRAR % 13.37% 12.78% 13.22% 13.76% 13.22% www.canarabank.com Page 23

  24. Slide 24: Productivity Ratios

    PRODUCTIVITY RATIOS June’ 11 June’12 Business Per Employee (` Crore) 12.53 14.00 Business Per Branch (` Crore) 157.21 155.22 Gross Profit Per Employee (` lakh) 12.39 14.17 Net Profit per Employee (` lakh) 7.08 7.88 www.canarabank.com Page 24

  25. Slide 25: Investments

    INVESTMENTS Amt. in ` Crore June’ 11 June’12 Net Investments (Domestic) 86020 111175 Held to Maturity 60054 74557 Available for Sale 25324 36027 Held for Trading 642 592 SLR Portfolio to NDTL (%) 24.79 31.24 www.canarabank.com Page 25

  26. Slide 26: Duration of Investment Portfolio

    DURATION OF INVESTMENT PORTFOLIO Jun’11 Jun’12 Duration of AFS Duration of AFS Book 2.80 yrs 3.18 yrs book and Total Duration of HTM Book 5.54 yrs 5.52 yrs Investment book Duration of Total Investment Book 4.87 yrs 4.81 yrs Jun’11 Jun’12 Duration of AFS Modified duration of AFS book and Total Book 2

  27. Slide 27: Asset Quality

    ASSET QUALITY Amt. in ` Crore June’11 Sep’11 Dec’11 Mar’12 June’12 Gross NPA (` Crore) 3642 3793 3999 4032 4497 Gross NPA Ratio (%) 1.69 1.73 1.81 1.73 1.98 Net NPA (` Crore) 2854 3117 3265 3386 3756 Net NPA Ratio (%) 1.33 1.43 1.49 1.46 1.66 Cash Recovery (` Crore) 750 1558 2346 3295 594 Cash Recov

  28. Slide 28: Movement of NPA

    MOVEMENT OF NPA Amt. in ` Crore June’11 June’12 Opening Balance 3137 4032 Fresh Slippages (+) 1373 1497 Upgradation (-) 224 325 Cash Recovery (-) 353 332 Write-off (-) 292 376 Closing Balance 3642 4497 www.canarabank.com Page 28

  29. Slide 29: Slippage – Sectorwise: Q1 Jun'12

    SLIPPAGE – SECTORWISE : Q1:JUN’12 Amt. in ` Crore 30.06.2011 30/06/2012 SECTOR (Q1 FY12) FY 2011-12 (Q1 FY13) % of Slippage Micro & Small Enterprises 383.70 1009.53 432.25 28.87 Agriculture 343.43 675.26 358.64 23.95 Other Priority Sector 292.53 284.29 272.09 18.17 Total Priority Sector 1019.66 1969

  30. Slide 30: Sectoral NPA

    SECTORAL NPA Amt. in ` Crore Jun’11 Jun’12 Micro & Small Enterprises 1149 1105 Agriculture 835 935 Other Priority Segments 498 432 Medium Enterprises 182 248 Large Industries 583 1090 Non-Priority Segments 395 687 Total 3642 4497 www.canarabank.com Page 30

  31. Slide 31: Composition Gross NPA

    COMPOSITION GROSS NPA Amt. in ` Crore Jun’11 Jun’12 2053 3038 Substandard Assets (56.3%) (67.56%) 1563 1407 Doubtful Assets (42.9%) (31.3%) 26 52 Loss Assets (0.8%) (1.14%) Total NPA 3642 4497 Figures in brackets denote percentage to total www.canarabank.com Page 31

  32. Slide 32: Amount Restructured During Q1 FY13

    AMOUNT RESTRUCTURED DURING Q1 FY13 Amt. in ` Crore No. of Accounts Amount Agriculture 76 10.50 MSME 26 9.50 Housing 34 1.59 Large Advances 19 1527.09 Others 62 4461.91 Total 217 6010.59 www.canarabank.com Page 32

  33. Slide 33: Outstanding Restructured Advances as at June 2012

    OUTSTANDING RESTRUCTURED ADVANCES AS AT JUNE 2012 Amt. in ` Crore No. of Accounts Amount Agriculture 11603 232.55 MSME 15209 351.78 Housing 7124 273.04 Large Advances 373 6150.41 Others 2818 7048.14 Total 37127 14055.92 www.canarabank.com Page 33

  34. Slide 34: Expanding the Reach

    EXPANDING THE REACH Jun’11 Jun’12 Y-o-Y Incr Branch Network 3277 3609 332 ATM Strength 2509 3107 598 Debit Card Base (In Lakh) 61.31 73.77 12.46 New Branches and ATMs Opened  Addition of 332 branches and 598 ATMs Y-o-Y During the Year www.canarabank.com Page 34

  35. Slide 35: Expanded Clientele Base

    EXPANDED CLIENTELE BASE (In Lakhs) Y-o-Y Jun’11 Jun’12 Increase 4.3 Crore Clientele Base 392.5 430.1 37.6 Strong Clientele Base No. of Deposit A/Cs 347.7 383.5 35.8 No. of Borrowal A/Cs 44.8 46.6 1.8 38 lakhs Clientele added during the year www.canarabank.com Page 35

  36. Slide 36: New Infotech Initiatives

    NEW INFOTECH INITIATIVES  Public Grievances Redressal System for online registration of grievances  Online Loan application and status tracking system for Retail, Education and MSME  400 Machines for generation of counterfoils for cash deposits transactions rolled out in 400 branches in 4 Metros

  37. Slide 37: Goals for FY13

    GOALS FOR FY13  Thrust on Retail Business, especially retail deposits and retail advances.  To open 325 branches and take ATM strength to 4000. FUTURE  Thrust on technology and business process PLANS reengineering to enhance business.  The Project on Enterprise-wide Data Warehousing and Business

  38. Slide 38: www.canarabank.com

    hotel dp Z\ canara Bank www.canarabank.com

Canara Bank — Q1 FY13 Earnings Presentation on 6ix