Canara Bank · NSE:CANBK
Canara Bank — Investor Presentation (November 2014)
36 slides from Canara Bank's investor presentation, November 2014
Slide 1: Investor Presentation November 2014
Investor Presentation November 2014
Slide 2: Disclaimer
Disclaimer This presentation is the sole responsibility of Canara Bank (the “Bank”) and has been prepared by the bank without regard to any specific objectives, financial situations or needs of any particular person. By accessing this presentation, you are agreeing to be bound by the trailing restri
Slide 3: Table of Content
Table of Content India Macroeconomic Overview Indian Banking Sector Overview Key Investment Highlights Strategy Going Forward Key Financials
Slide 4: India Macroeconomic Overview
India Macroeconomic Overview
Slide 5: India Macroeconomic Overview: Strong Demographic Profile
India Macroeconomic Overview Strong Demographic Profile Large and Growing Population Base1 Supported by Improving Demographic Mix 2 2009 – 2013 % of Total Population Population 0.5% 1.3% 0.3% 1.3% 0.0% 0.3% 0.9% 1.3% 0.8% 1.3% 0.5% CAGR (%) Working age population is 2013 Population (mn) now 63.4%, a
Slide 6: India's GDP Growth Has Been Resilient
India Macroeconomic Overview India’s GDP Growth Has Been Resilient Through Difficult Times And Is Expected To Revive High Historical Growth Rates Strong Momentum Real GDP growth Y-o-Y (%)1,2 Historical real GDP growth (%)1 India GDP Growth Global GDP Growth GDP Growth Period Average GDP Growth Trend
Slide 7: Improving Debt Profile, Strong FDI Inflows And Healthy Foreign Exchange Reserves
India Macroeconomic Overview Improving Debt Profile, Strong FDI Inflows And Healthy Foreign Exchange Reserves While fiscal deficit is currently high, India has shown an improving debt profile 1 Foreign exchange reserves remain at high levels Gross Fiscal Deficit/GDP (Central Govt.) Foreign exchange
Slide 8: Indian Banking Sector Overview
Indian Banking Sector Overview
Slide 9: Indian Banking Sector has Remained Strong
India Banking Sector Overview Indian Banking Sector has Remained Strong in the Global Macroeconomic Environment Strong Historical Bank Credit & Deposit Growth in India (%)1 Credit Growth (y-o-y) (%) Deposit Growth (y-o-y) (%) 28.1% 23.8% 22.4% 22.3% 19.9% 21.5% 17.5% 17.2% 17.0% 16.9% 15.9% 14.2% 14
Slide 10: Structural drivers in place
India Banking Sector Overview Structural drivers in place Low Domestic Credit1,3 …& Under-penetration1,3 … …Has Led to Lower Financial Participation1,3 Domestic Private Credit (% of GDP) Branches Per 100K Population % of age 15+ with account at a formal financial institution (2011) 46.1 96.4% 93.0%
Slide 11: Banking Sector Landscape
India Banking Sector Overview Banking Sector Landscape Number of Branches 1 Advances (INR bn) 1 Pvt. Sector Foreign Banks Foreign Banks Pvt. Sector Banks 4.9% 0.3% Banks 14.8% 19.8% Public Sector Banks Public Sector 84.9% Banks 75.4% Total:111,778 Total: 57,386 Deposits (INR bn) 1 Pvt. Sector Foreig
Slide 12: Key Investment Highlights
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Slide 13: Canara Bank - An Overview
Canara Bank - An Overview Summary Description Key Financial Highlights FY12 FY13 FY14 H1FY15 One of the leading public sector commercial banks in India, with Government Key Finacials (INR bn) of India shareholding of 69.0% and a market capitalization of approximately Total Assets 3,741.6 4,123.4 4,9
Slide 14: Canara Bank – Ownership and Management
Canara Bank – Ownership and Management Government Ownership Management with significant banking experience Shareholding Pattern (as of September 30, 2014) V.S. Krishna Kumar, Executive Director Bodies Others Corporate 6.0% Over 33 years of banking experience 1.5% Previously worked with Allahabad Ban
Slide 15: Significant Milestones
Canara Bank - An Overview Significant Milestones 2014 Total number of branches at 5,514. Total business (deposits and advances) amounted to INR 7,721 bn as of September 30, 2014 2010 Achieved 100% core banking solutions across our domestic operations 2008 Launching of a ‘New Brand Identity’ Foray in
Slide 16: Key Investment Highlights
Key Investment Highlights 1 2 Strong Growth in Business Strong Brand Recognition and and Consistent Operating Extensive Network Performance 6 3 Efficient ALM and Strong Better Asset Quality and Cash Liquidity Profile Recoveries 5 4 Technology Platform to Drive Diversified Sources of Income Productiv
Slide 17: Strong Brand Recognition and Extensive Network
Strong Brand Recognition and Extensive Network Extensive network enables the bank to provide banking services to a Distribution of Domestic Branch Network wide variety of customers across India March 2014 September 2014 Customer base of 60.2mm as of September 30, 2014 Metro Metro 894 984 Rural Rural
Slide 18: Focused on Financial Inclusion Initiatives
Strong Brand Recognition and Extensive Network Focused on Financial Inclusion Initiatives FI Channel Transactions Rural branches Unbanked Villages Covered (billion) 1,762 8,973 2.26 19.7% 2.16 84.4% 1,444 1,062 5,528 1,007 2,589 1,625 0.30 0.03 FY12 FY13 FY14 H1 FY15 FY12 FY13 FY14 H1 FY15 FY12 FY13
Slide 19: Strong Growth in Business and Consistent Operating Performance
Strong Growth in Business and Consistent Operating Performance Deposits (INR bn) Net Advances (INR bn) Total Assets (INR bn) 4,612 4,207 5,287 250 4,919 3,011 3,109 3,559 219 3,271 192 213 4,123 148 2,422 3,742 144 2,325 110 150 4,362 3,989 3,411 2,818 2,895 3,127 2,271 2,215 FY12 FY13 FY14 H1 FY15
Slide 20: Strong Growth in Business and Consistent Operating Performance
Strong Growth in Business and Consistent Operating Performance Net Interest Margin (%) Yield and Cost of Funds (%) 9.0% 9.1% 8.8% 8.8% 2.50% 2.40% 7.7% 7.4% 6.8% 6.8% 2.27% 2.24% FY12 FY13 FY14 H1 FY15 FY12 FY13 FY14 H1 FY15 Yield on Funds Cost of Funds Return on Average Assets (%) Return on Equity
Slide 21: Better Asset Quality and Cash Recoveries
Better Asset Quality and Cash Recoveries NPA % & Provision Coverage Ratio (PCR) NPA (INRmn) 91,643 2.9% 2.6% 75,702 2.5% 71,703 2.3% 62,602 2.2% 59,655 2.0% 1.7% 52,781 1.5% 40,318 33,863 FY12 FY13 FY14 H1 FY15 FY12 FY13 FY14 H1 FY15 67.6% 61.4% 60.1% 58.7% Gross NPA Net NPA PCR Ratio During FY14 th
Slide 22: Technology Platform to Drive Productivity and Reduce Costs
Technology Platform to Drive Productivity and Reduce Costs 100% of branches computerized under Core Banking Solutions Established alternative delivery channels such as internet and mobile banking Setup 132 E-lounges with hi-tech banking facilities Focused on developing green banking initiatives like
Slide 23: Diversified Sources of Income
Diversified Sources of Income Presence Across Business Verticals... Priority Sector and Retail Corporate Lending International Operations Other Businesses / Subsidiaries Lending Includes corporate and mid- Promotes the rural economy and The Bank has seven international Insurance: Life insurance JV (
Slide 24: Well Diversified Revenues and Loan Portfolio
Diversified Sources of Income …Coupled with Well Diversified Revenues and Loan Portfolio Revenue Split Across Business Segments Loan Portfolio Across Sectors Other Agriculture Operations 16.8% Treasury 0.7% Operations Others Retail Banking 38.3% Retail Credit 27.7% 25.4% 9.5% FY13 Wholesale MSME Ban
Slide 25: Efficient ALM and Strong Liquidity Profile
Efficient ALM and Strong Liquidity Profile Strong Funding and Liquidity Indicators Key Indicators FY12 FY13 FY14 H1 FY15 Comments Deposits as % of Total 93.1% 91.8% 91.0% 92.6% Low proportion of wholesale funding Liabilities Credit / Deposit Ratio 71.1% 68.1% 71.6% 67.4% Balanced credit growth on th
Slide 26: Strategy Going Forward
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Slide 27: Strategy Going Forward
Strategy Going Forward Strategy Description Leverage the Bank’s strong financial position to take advantage of increasing growth opportunities within India, by opening new branches and increasing the number of ATMs The Bank intends to increase its network to over 6,000 branches and 10,000 ATMs by Ma
Slide 28: Strategy Going Forward (Cont'd)
Strategy Going Forward (Cont’d) Strategy Description Has an established robust risk management architecture and sound risk management systems to ensure conformity with the Basel III Focus on Capital framework in relation to capital adequacy Efficiency and Profit Further aim to improve productivity b
Slide 29: Key Financials
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Slide 30: Canara Bank – Standalone Financials
Canara Bank – Standalone Financials Profit & Loss Summary and Key Operational Highlights (INR mn) FY12 FY13 FY14 H1 FY15 Income Statement Interest Earned 308,506 340,779 395,476 215,950 Interest Expended 231,613 261,989 306,032 167,979 Net Interest Income 76,893 78,790 89,444 47,971 Other Income 29,
Slide 31: Canara Bank – Standalone Financials
Canara Bank – Standalone Financials Balance Sheet Summary (INR mn) FY12 FY13 FY14 H1 FY15 Balance Sheet Cash and Balance with RBI 177,951 154,059 221,538 185,775 Balances with Banks & Money at Call & Short Notice 103,843 193,088 226,749 311,410 Investments 1,020,574 1,211,328 1,268,283 1,463,953 Adv
Slide 32: Canara Bank – Consolidated Financials
Canara Bank – Consolidated Financials Profit & Loss Summary (INR mn) FY12 FY13 FY14 Income Statement (Consolidated) Interest Earned 308,156 340,699 395,702 Interest Expended 231,595 261,977 306,055 Net Interest Income 76,562 78,721 89,646 Other Income 31,045 33,076 41,437 Operating Income 107,607 11
Slide 33: Canara Bank – Consolidated Financials
Canara Bank – Consolidated Financials Balance Sheet Summary (INR mn) FY12 FY13 FY14 Balance Sheet Cash and Balance with RBI 178,130 154,150 221,610 Balances with Banks and Money at Call and Short Notice 104,337 193,642 227,106 Investments 1,064,966 1,275,335 1,354,454 Advances 2,327,287 2,424,358 3,
Slide 34: Appendix
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Slide 35: Details of Restructured Assets
Details of Restructured Assets Amount in INR bn Standard NPA Total Restructured Accounts # INR bn # INR bn # INR bn Accounts Restructured in Q1 FY14 125 13.65 9 3.18 134 16.83 Accounts Restructured in Q2 FY14 3,416 9.73 59 0.26 3,475 9.99 Accounts Restructured in Q3 FY14 3,032 34.02 54 0.52 3,086 34
Slide 36: Sectoral Contribution of NPA
Sectoral Contribution of NPA Amount in INR bn Particulars Jun’13 Sep’13 Dec’13 Mar’14 Jun’14 Sep’14 Gross Advances 2,519.70 2,830.24 2,898.33 3,034.31 3,057.23 3,134.31 Gross NPA 73.29 74.75 80.74 75.70 81.60 91.64 Gross NPA % 2.9% 2.6% 2.8% 2.5% 2.7% 2.9% Priority Sector Advances 830.85 882.80 930.