Canara Bank · NSE:CANBK
Canara Bank — Q3 FY2023-24 Earnings Presentation
48 slides from Canara Bank's earnings presentation, Jan 24, 2024
Slide 1: Exchange filing cover letter: Investor Presentation
Ref:: SD:577/578/11/12::2023-24 24.01.2024 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: Q3 (FY 2023-24)
Inspired by Customers driven by Digital e₹ Financial Results: Q3 (FY 2023-24) Restricted Page 1
Slide 3: Performance Highlights
Performance Highlights ₹ in Crore Net Interest Domestic Net Profit Global Business Income Advances 26.86% 9.87% 9.50% 12.56% y-o-y y-o-y y-o-y y-o-y 3,656 22,13,360 9,417 9,01,465 PCR 9 months Net Profit for 25 bps 89.01% y-o-y FY 23-24 of ₹10,797 y-o-y Return on Assets 269 bps surpassed Net Profit
Slide 4: Key Highlights
Key Highlights ₹ in Crore 12.07% 12.14% 19.26% 9.46% y-o-y y-o-y y-o-y y-o-y Housing Loan Retail Credit Agriculture & Allied MSME 91,800 1,53,640 2,42,470 1,34,334 13.22% RAM Credit 45.74% y-o-y 14.56% y-o-y Vehicle Loan y-o-y EPS 16,960 5,30,444 79.21 357 bps 9 bps y-o-y y-o-y Return on Equity Net
Slide 5: Contents
Contents Business Performance 06-13 Financial Performance 15-22 Investments 24-25 Asset Quality 27-32 Capital & Shareholding 34-35 Environmental, Social & Governance 37-38 Distribution Network & Digital Footprint 40-43 Subsidiaries & Associates 44-44 Goals for March 2024 vs Actuals for December 2023
Slide 6: Business Performance
Inspired by Customers driven by Digital Business Performance Restricted Page 5
Slide 7: Business Performance
Business Performance ₹ in Crore Growth (%) Parameters Dec’22 Mar'23 June’23 Sep’23 Dec’23 Q-o-Q Y-o-Y Global Gross Business 2014443 2042001 2080141 2156181 2213360 2.65 9.87 Domestic Gross Business 1880607 1912508 1947569 2021650 2068313 2.31 9.98 Overseas Gross Business 133836 129493 132572 134531
Slide 8: Domestic Deposit Mix
Domestic Deposit Mix ₹ in Crore Growth (%) Parameters Dec’22 Mar'23 Jun'23 Sep’23 Dec’23 Q-o-Q Y-o-Y Saving Deposits 310547 318818 320628 323021 324027 0.31 4.34 Current Deposits 40943 47654 43836 44593 45229 1.43 10.47 CASA Deposits 351490 366472 364464 367614 369256 0.45 5.05 Term Deposit 728210 7
Slide 9: Advances Mix
Advances Mix ₹ in Crore RAM: 56% Dec’23 Retail 16% Growth (%) Parameters Dec'22 Sep’23 Dec’23 Corporate & Others Agriculture & Allied Q-o-Q Y-o-Y 44% 26% MSME RAM Credit 463038 516949 530444 2.61 14.56 14% Retail 137007 148209 153640 3.66 12.14 Agriculture & Allied 203312 236953 242470 2.33 19.26 RA
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 (45.91% to ANBC against 40% norm) Agriculture (21.77% to ANBC against 18% norm) Mandated Norms under Small and Marginal Farmers (15.18% to ANBC against 10.00% norm) Priority Sector N
Slide 11: RAM & Retail Credit
RAM & Retail Credit RAM ₹ in Crore 530444 14.56% 463038 Dec'22 Dec'23 Retail Loans Housing Loans 153640 91800 12.14% 12.07% 137007 81916 Dec'22 Dec'23 Dec'22 Dec'23 Restricted Page 10
Slide 12: Industry Credit
Industry Credit ₹ in Crore Growth (in %) Sector/Scheme Dec'22 Sep’23 Dec’23 Q-o-Q Y-o-Y Infrastructure 114682 115304 126697 9.88 10.48 NBFC 138757 143154 135872 (5.09) (2.08) Textile 18481 18454 18805 1.90 1.75 Iron & Steel 16347 15653 17210 9.95 5.28 Commercial Real Estate 19990 19497 20643 5.88 3.
Slide 13: Rating Profile
Rating Profile External Rating - Wise Distribution of Domestic Advances above ₹ 25 crore ₹ in Crore (% of Total rated loan book above ₹ 25 crore) Dec'22 Sep'23 Dec'23 External Rating Outstanding % Share Outstanding % Share Outstanding % Share A and above 213484 78 220726 80 219850 80 BBB 33650 12 29
Slide 14: Rating Profile
Rating Profile ₹ in Crore Rating Profile of Standard NBFC Domestic Exposure Dec'22 Sep'23 Dec'23 External Rating Exposure % Share Exposure % Share Exposure % Share A and above 133462 99 138477 99 129970 99 BBB 458 198 155 1 1 1 BB and below 107 12 20 Total 134027 100 138687 100 130145 100 Restricted
Slide 15: Financial Performance
Inspired by Customers driven by Digital Financial Restricted Performance Page 14
Slide 16: Total Income
Total Income ₹ in Crore Quarterly Parameters Growth Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 Q-o-Q(%) Y-o-Y(%) Interest Income 22231 23910 25004 26838 28039 4.47 26.13 Interest on Advances 16210 17538 18064 19367 19894 2.72 22.73 Interest on Investments 4947 5263 5349 5647 5775 2.27 16.74 Other Interest I
Slide 17: Non-Interest Income
Non-Interest Income ₹ in Crore Quarterly Parameters Growth Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 Q-o-Q(%) Y-o-Y(%) Fee Based Income 1606 1905 1636 2070 1772 (14.40) 10.34 Commission Exchange & Brokerage 333 387 263 329 383 16.41 15.02 Service Charges 905 926 812 900 819 (9.00) (9.50) Miscellaneous 368
Slide 18: Total Expenses
Total Expenses ₹ in Crore Quarterly Parameters Growth Dec'22 Mar'23 Jun'23 Sep'23 Dec’23 Q-o-Q(%) Y-o-Y(%) Interest Expenses 13631 15293 16338 17935 18622 3.83 36.62 Interest Paid on Deposits 12542 14097 15043 16433 17092 4.01 36.28 Other Interests 1089 1196 1295 1502 1530 1.86 40.50 Operating Expen
Slide 19: Financials at a Glance
Financials at a Glance ₹ in Crore Quarterly Parameters Growth Dec'22 Mar'23 Jun'23 Sep'23 Dec’23 Q-o-Q(%) Y-o-Y(%) Net Interest Income 8600 8617 8666 8903 9417 5.77 9.50 Total Interest Income 22231 23910 25004 26838 28039 4.47 26.13 Total Interest Expenses 13631 15293 16338 17935 18622 3.83 36.62 To
Slide 20: Continuous & Consistent Growth
Continuous & Consistent Growth 3535 3606 3656 3175 89.01 2882 88.73 88.04 87.31 86.32 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 Net Profit (₹ in Cr) PCR (%) 5.89 5.35 5.15 4.76 1.96 4.39 1.73 1.57 1.41 1.32 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 Dec'22 Mar'23 Jun'23 Sep'23 De
Slide 21: Provisions
Provisions ₹ in Crore Quarterly Parameters Growth Dec'22 Mar'23 Jun'23 Sep'23 Dec’23 Q-o-Q(%) Y-o-Y(%) Total Provision 4070 4077 4069 4010 3150 (21.45) (22.60) NPAs 1920 2399 2417 2202 2106 (4.36) 9.69 Standard Asset 155 (71) 3 81 103 27.16 (33.55) Non Performing Investment 694 47 332 103 181 75.73
Slide 22: Key Ratios
Key Ratios (%) Dec'22 Mar’23 Sep'23 Dec'23 Ratios Quarterly Cumulative Quarterly Cumulative Quarterly Cumulative Quarterly Cumulative Return on Assets 0.88 0.76 0.95 0.81 1.02 1.01 1.01 1.01 Return on Net-worth 20.43 18.38 21.68 19.49 22.01 22.51 21.06 21.95 Cost to Income 44.77 44.40 45.85 44.79 43
Slide 23: Key Ratios
Key Ratios NIM(%) Cost Of Deposits (%) Yield on 5.22 5.35 5.42 Advances(%) 3.05 3.02 3.02 4.19 4.38 8.43 8.56 8.60 2.95 7.70 2.93 7.45 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 Cost Of Funds (%) Yield on Funds(%) Yield on Investments(%)
Slide 24: Investments
Inspired by Customers driven by Digital INVESTMENTS Restricted Page 23
Slide 25: Investment Portfolio
Investment Portfolio ₹ in Crore Sl. No Parameters Dec'22 Sep'23 Dec'23 1 Domestic Investments 314535 346612 346429 (a) SLR 276000 310622 310448 (b) Non SLR 38535 35990 35981 SLR as % to Dom. Investments 87.75 89.62 89.61 (i) Held To Maturity (HTM) 266925 283405 286385 (ii) Available For Sale (AFS) 4
Slide 26: Non SLR Portfolio
Non SLR Portfolio ₹ in Crore % Share Y-o-Y Variation Parameters Dec'22 Sep'23 Dec'23 (Dec'23) Amount % PSU Bonds 3899 3372 3392 9.43 (507) (13.00) Corporate and Other Bonds 6929 5427 5540 15.40 (1389) (20.05) Special Govt. Sec excl. Recap Bonds 2388 1741 1741 4.84 (647) (27.09) CG Recap. Bond 18238
Slide 27: Asset Quality
Inspired by Customers driven by Digital Restricted Asset Quality Page 26
Slide 28: Asset Quality Ratios
Asset Quality Ratios ₹ in Crore Parameters Dec'22 Mar’23 Sep'23 Dec’23 Gross NPA 50143 46160 43956 41722 Gross NPA (%) 5.89 5.35 4.76 4.39 Net NPA 15982 14349 12554 12176 Net NPA (%) 1.96 1.73 1.41 1.32 Provision Coverage Ratio (%) 86.32 87.31 88.73 89.01 Credit Cost (%) 1.21 1.17 1.02 0.97 Slippage
Slide 29: Movement of NPA
Movement of NPA ₹ in Crore Parameters Dec'22 Mar’23 Sep'23 Dec'23 NPA as at the beginning of the period 52485 50143 45727 43956 Cash Recovery towards Book Liability(i) 1776 1904 1198 958 Up-gradation (ii) 940 735 671 516 Write Off (iii) 2836 4317 2889 3936 Total Reduction(i+ii+iii) 5552 6956 4758 54
Slide 30: NPA Classification: Sector Wise
NPA Classification: Sector Wise ₹ in Crore Advance O/s Parameters Dec'22 Mar'23 Sep'23 Dec'23 GNPA (%) (Dec'23) Domestic Gross NPA 45324 41387 40235 38327 901465 4.25 Global Gross NPA 50143 46160 43956 41722 950430 4.39 Retail 2070 2020 2000 2298 153640 1.50 Housing Loans 605 568 598 796 91800 0.87
Slide 31: NPA Classification: Industry wise
NPA Classification : Industry wise ₹ in Crore Sector/Scheme Dec'22 Mar’23 Sep'23 Dec'23 GNPA (%) Infrastructure 7141 6079 5473 5491 4.33 Iron & Steel 681 739 658 591 3.43 Textile 1305 1284 1232 1415 7.52 Food Processing 1203 1119 1198 1282 10.51 Engineering 1014 955 912 844 6.16 Restricted Page 30
Slide 32: Special Mention Accounts (SMA)
Special Mention Accounts (SMA) ₹ in Crore SMA Position of the Bank (₹ 5 Cr and above) Jun’23 Sep’23 Dec’23 No of % to Gross No of % to Gross No of % to Gross Parameters Outstanding Outstanding Outstanding Accounts Advances Accounts Advances Accounts Advances SMA 2 237 3367 0.38 221 4413 0.48 204 451
Slide 33: Accounts referred to NCLT
Accounts referred to NCLT ₹ in Crore Dec'22 Dec'23 Parameters No of Book Provision No of Book Provision Provision Provision Accounts Liability Coverage Accounts Liability Coverage 1st List - RBI 5 1462 1462 100% 4 1096 1096 100% 2nd List – RBI 11 5313 5313 100% 11 5290 5290 100% Total RBI 1 & 2 16 6
Slide 34: Capital & Shareholding
Inspired by Customers driven by Digital Capital & Restricted Shareholding Page 33
Slide 35: Capital Funds (Basel III)
Capital Funds (Basel III) ₹ in Crore Parameters Dec'22 Sep'23 Dec'23 Tier I 76240 83679 87964 CRAR (%) Common Equity 63813 71262 74137 16.72 16.20 Additional Tier I 12427 12417 13827 15.78 Tier II 15971 15770 3.04 2.60 16935 2.40 Total (Tier I+II) 93175 99650 103734 2.23 2.02 2.10 Risk-weighted Asse
Slide 36: Shareholding Pattern as on December 31st, 2023
Shareholding Pattern as on December 31st,2023 Resident Individuals, 9.53 Staff, 0.65 Others, 2.53 FIIs/FPIs, 11.21 Mutual Funds, 5.21 Insurance Companies, 7.94 Government of India, 62.93 Restricted Page 35
Slide 37: Environmental, Social & Governance
Inspired by Customers driven by Digital Environmental, Social & Governance Restricted Page 36
Slide 38: Environmental, Social & Governance (ESG) Practices
Environmental, Social & Governance (ESG) Practices Environmental Social Governance As part of Green initiatives, Bank has undertaken: Bank is impacting the Society by engaging in Towards the Bank’s journey towards helping and uplifting the underserved Sustainability, Bank has in place: Incre
Slide 39: Bank's initiatives towards Climate Risk Management
Bank’s initiatives towards Climate Risk Management Climate Risk Governance • The Board approved internal ESG policy of the Bank encompasses aspects of Climate Risk (including Physical Risks and Transition Risks), wherein well defined roles & responsibilities of the Board, RMCB and other Member Teams
Slide 40: Distribution Network
Inspired by Customers driven by Digital Distribution Network Restricted Page 39
Slide 41: Distribution Network
Distribution Network Parameters Dec'22 Sep'23 Dec'23 General Branches(a) 8897 8757 8964 Specialised Branches(b) 823 761 621 Total Domestic Branches(a+b) 9720 9518 9585 Overseas Branches 3 3 3 BC Points 9691 13427 13427 Total Banking Outlets 19414 22948 23015 ATM 10745 10553 10463 Recycler 1402 1565
Slide 42: Digital Footprint
Inspired by Customers driven by Digital Digital Footprint Restricted Page 41
Slide 43: Digital Footprint
Digital Footprint 1321.95 5.71 954.62 2.65 482.89 315.95 4.94 2.35 DEC'22 DEC'23 DEC'22 DEC'23 DEC'22 DEC'23 DEC'22 DEC'23 MeitY Digital Transactions( Nos in Internet Banking Registrations (Nos in E-Transactions (Nos in Crores) Debit Card Outstanding (Nos in Crore) Crores) Crores) 0.70 4.41 8.72 2.6
Slide 44: New Digital Initiatives
New Digital Initiatives Data and Analytics Center, a state of the art facility for innovation & collaboration, one of its kind in DnA PSBs to facilitate Data driven Business & Analytics to supplement Top line growth. ai1 App for Facilities for Corporate Internet Banking users to transact through Mob
Slide 45: Subsidiaries & Associates
Subsidiaries & Associates ₹ in Crore Total Profit Our share Name of the Entity Holding(%) Dec’23 SUBSIDIARIES Canara Robeco Asset Management Company Ltd. 51 82.51 42.08 Canara HSBC Life Insurance Company Ltd. 51 77.09 39.32 Canbank Factors Ltd. 70 5.24 3.67 Canbank Computer Services Ltd. 69.14 11.77
Slide 46: Goals for March 2024 vs Actuals for December 2023
Goals for March 2024 vs Actuals for December 2023 Guidance Parameters Actuals as on 31.12.2023 (31.03.2024) Business Growth (Global) 10.00% 9.87% Advances Growth (Global) 10.50% 11.69% Deposits Growth (Global) 8.50% 8.55% CASA (Domestic CASA to Domestic Deposit) 35.00% 31.65% NIM (Global)(Annualized
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. Restricted Page 47