Canara Bank · NSE:CANBK
Canara Bank — Q1 FY2021 Earnings Presentation
48 slides from Canara Bank's earnings presentation, Aug 5, 2020
Slide 1: Cover letter to BSE and NSE
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Slide 2: Financial Results Q1 - FY 2020-21
Financial Results Q1 - FY 2020-21 Page 1
Slide 3: Amalgamated Entity as on April 1, 2020
Amalgamated Entity as on April1,2020 ₹ in Crores March 31, 2020 April 1 ,2020 Canara Bank e-Syndicate Canara (Amalgamated Entity) Total Deposits 6,25,351 2,81,270 9,05,523 Total Gross Advances 4,51,223 1,99,995 6,51,218 Total Business 10,76,574 4,81,265 15,56,741 CASA Ratio-Domestic(%) 32.59 35.09 3
Slide 4: Amalgamated Entity as on April 1, 2020
Amalgamated Entity as on April 1,2020 March 31, 2020 April 1 ,2020 Canara Bank e-Syndicate Canara (Amalgamated Entity) Yield on Advances (Global) (%) 8.18 8.33 8.22 Cost of Deposits (Global) (%) 5.57 5.09 5.42 NIM (Global) (%) 2.29 3.06 2.51 Yield on Investments (Global) (%) 7.33 7.56 7.40 Yield on
Slide 5: Amalgamated Entity as on April 1, 2020
Amalgamated Entity as on April1,2020 March 31, 2020 April 1 ,2020 Canara Bank e-Syndicate Canara (Amalgamated Entity) Gross NPA (Rs. In Crores) 37,041 24,086 61,127 Gross NPA Ratio (%) 8.21 12.04 9.39 Net NPA (Rs. In Crores) 18,251 8,504 26,755 Net NPA Ratio(%) 4.22 4.61 4.34 PCR with TWO (%) 75.86
Slide 6: Performance Highlights-Q1 2020-21 (Y-o-Y)
Performance Highlights-Q1 2020-21 (Y-o-Y) 14.00% SB 31.82% Operating Profit y-o-y Rs 2,53,498 Cr y-o-y Rs 4,285 Cr 16.00% CASA Net Profit y-o-y Rs 2,94,326 Cr Increased Rs 406Cr 244 46 Domestic CASA share CRAR bps bps y-o-y 33.82 % 12.77 % y-o-y 13.00% Retail Term Deposits (144) Gross NPA y-o-y Rs 3
Slide 7: Contents
Contents Business Performance Financial Performance Investment Asset Quality Capital & Share Holding Expanding Reach – Offline & Online COVID-19 Response w.e.f. April 1, 2020 Syndicate Bank has amalgamated with Canara Bank, Accordingly financials as on June 2019 and March 20 are combined figures of
Slide 8: Business Performance
I Business Performance Page 7
Slide 9: Business Performance
Business Performance Amt in Rs. Crore Growth % Parameters Jun’19 Mar’20 Jun’20 Q-o-Q Y-o-Y Global Gross Business 1500006 1557839 1560144 0.15 4.01 Domestic Gross Business 1403823 1488366 1493806 0.37 6.41 Overseas Gross Business 96183 69473 66337 (4.50) (31.00) Global Deposits 869897 906621 909570 0
Slide 10: Deposit Mix
Deposit Mix Amt in Rs. Crore Growth % Parameters Jun’19 Mar’20 Jun’20 Q-o-Q Y-o-Y Saving Deposits 222363 250047 253498 1.38 14.00 Current Deposits 31361 40317 40828 1.26 30.18 CASA Deposits 253724 290364 294326 1.36 16.00 Domestic CASA % 31.38 33.36 33.82 -- -- Term Deposits 616173 616257 615244 (0.
Slide 11: Advances Mix
Advances Mix JUN’20 Amt in Rs. Crore Agri Corporate 20.62% Growth & Others % 46.67% MSME Parameters Jun’19 Mar’20 Jun’20 16.18% Y-o-Y Retail 16.53% Retail Loans 106476 113159 107573 1.03 Agriculture & Allied 127207 132884 134142 5.45 RAM: 53.33% JUN’19 MSME 105692 105263 (8.00) 114420 Agri 20.19% Co
Slide 12: MSME credit
MSME credit Segment Mix Book by Loan size Upto 5 Cr 13% 6% 11% 51% Micro 5 Cr-10 Cr Small 6% 10 Cr-25 Cr Medium 36% 77% Above 25 Cr Geographical Mix 45% 35% 24% Short Term North Loan 16% 10% East Long Term 55% 65% South Loan 50% West June 2019 June 2020 Page 11
Slide 13: Achievement Under Mandated Targets – Priority Sector
Achievement Under Mandated Targets – Priority Sector Achieved the mandated norms in respect of: Total Priority (45.86 % to ANBC against 40% norm,48.29% prior to PSLC) Mandated Norms under Agriculture (20.87% to ANBC against 18% norm, 23.30% prior to PSLC) Priority Sector Small and Marginal Farmers (
Slide 14: Retail Credit
Retail Credit Retail Loans Housing Loans Vehicle Loans 58243 112079 12508 108864 12456 52921 Jun'19 Jun'20 Jun'19 Jun'20 Jun'19 Jun'20 Amt in Rs. Crore Growth % Parameters Jun’19 Mar’20 Jun’20 Y-o-Y Q-o-Q Housing Loans (A) 52921 58992 58243 10.06 (1.27) Vehicle Loans (B) 12456 12945 12508 0.42 (3.38
Slide 15: Industry Credit
Industry Credit Amt in Rs. Crore Growth % Sector/Scheme Jun’19 Mar’20 Jun’20 Q-o-Q Y-o-Y Infrastructure 75709 76193 79675 4.57 5.24 Textile 14694 14627 14703 0.52 0.06 Food Processing 12929 12722 13402 5.35 3.66 Engineering 12130 11728 12105 3.21 (0.21) Construction 7564 7795 7930 1.73 4.84 Chemical
Slide 16: Credit to NBFC and CRE
Credit to NBFC and CRE Amt in Rs. Crore Growth (%) Parameters Jun’19 Mar’20 Jun’20 Q-o-Q Y-o-Y Total NBFC 81481 94567 93383 (1.25) 14.61 Out of which : HFCs 30723 36455 35568 (2.43) 15.77 Private 39501 44094 42356 (3.94) 7.23 Public 11257 14018 15459 10.27 37.32 Commercial Real 11464 14450 14471 0.1
Slide 17: Rating profile and Concentration Risk
Rating profile and Concentration Risk External Rating - Wise Distribution of Domestic Advances above Rs. 10 crore (% of total rated loan book above Rs 10 crore) Jun’19 Jun’20 External Rating Outstanding % Share Outstanding % Share A and above 130774 66 143634 65 BBB 30966 16 40224 18 BB and below 36
Slide 18: Advances Mix of the Lending Rate (%)
Advances Mix of the Lending Rate (%) 6.33 6.14 5.52 3.58 8.08 71.65 73.07 72.19 3.86 2.9 2.72 18.17 14.31 11.49 Jun'19 Mar'20 Jun'20 Base Rate BPLR MCLR RLLR Others Page 17
Slide 19: Financial Performance
Financial Performance Page 18
Slide 20: Total Income
Total Income Amt in Rs. Crore Quarterly Growth Parameters Jun-19 Mar-20 Jun-20 % Q.o.Q % Y.o.Y Interest Income 17746 17607 18036 2.44 1.63 Interest on Advances 13092 12661 13118 3.61 0.20 Interest on Investments 4195 4248 4272 0.56 1.83 Other Interest Income 459 698 646 (7.41) 40.80 Non-Interest Inc
Slide 21: Non-Interest Income
Non-Interest Income Amt in Rs. Crore Quarterly Growth Sl. Parameters No Jun-19 Mar-20 Jun-20 % Q.o.Q % Y.o.Y (A) Fee Based Income (i+ii+iii) 961 776 1039 33.83 8.07 i) Comm Exchange & Brok 248 280 243 (13.51) (2.35) (a) Commission on LC/BG/DDs 177 171 168 (1.97) (5.29) (b) Govt. Business 25 42 30 (2
Slide 22: Total Expense
Total Expense Amt in Rs. Crore Quarterly Growth Parameters Jun-19 Mar-20 Jun-20 % Q.o.Q % Y.o.Y Interest Expenses 12713 12521 11940 (4.64) (6.08) Interest Paid on Deposits 11700 11616 11108 (4.37) (5.06) Other Interests 1013 905 832 (8.07) (17.87) Operating Expenses 4180 5702 4460 (21.78) 6.70 Staff
Slide 23: Financials at a Glance
Financials at a Glance Amt in Rs. Crore Quarterly Qrtrly Growth Parameters Jun-19 Mar-20 Jun-20 % Q.o.Q % Y.o.Y Total Interest Income 17746 17607 18036 2.44 1.63 Total Interest Expenses 12713 12521 11940 (4.64) (6.08) Net Interest Income 5033 5086 6096 19.85 21.11 Total Income 20144 20634 20686 0.25
Slide 24: Provisions
Provisions Amt in Rs. Crore Growth % Parameters Jun-19 Mar-20 Jun-20 Q-o-Q Y-o-Y Total Provision 3901 8979 3879 (56.80) (0.56) NPAs 4368 7939 3550 (55.28) (18.7) Standard Asset 76 313 763 143.77 904 Depreciation on Investment -639 -5 (210) -- -- Income Tax 33 83 53 (36.14) 60.6 Others 63 649 (277) -
Slide 25: Key Ratios
Key Ratios (%) Ratios Jun’19 Mar’20 Jun’20 Quarterly Cumulative Quarterly Cumulative Quarterly Cumulative RoA (0.27) (0.27) (2.60) (0.58) 0.16 0.16 Return on Net-worth (6.72) (6.72) (69.64) (15.48) 4.51 4.51 Cost to Income 54.90 54.90 68.74 57.43 51.00 51.00 CD Ratio 72.43 72.43 71.83 71.83 71.53 71
Slide 26: Key Ratios – Q1FY21
Key Ratios – Q1FY21 Cost Of Deposits (%) Cost Of Funds (%) Yield on Advances(%) 5.19 8.22 5.56 4.95 4.56 8.09 Jun'19 Jun'20 Jun'19 Jun'20 Jun'19 Jun'20 Yield on Funds(%) Yield on Investments(%) NIM(%) 7.24 2.84 7.58 6.89 2.53 7.1 Jun'19 Jun'20 Jun'19 Jun'20 Jun'19 Jun'20 Page 25
Slide 27: Investments
| dorel da Canara Bank A I Investments Page 26
Slide 28: Investment Portfolio
Investment Portfolio Amt in Rs. Crore Sl. Parameters Jun’19 Mar’20 Jun’20 (1) Domestic Investments 223424 251254 250599 (a) SLR 185811 205613 204293 (b) Non SLR 37612 45641 46305 SLR as % to Dom. Investments 83.17% 81.83% 81.52% (i) Held To Maturity (HTM) 136387 171156 182062 (ii) Available For Sale
Slide 29: Non SLR Portfolio
Non SLR Portfolio Amt in Rs. Crore % Share Y-o-Y Variation Parameters Jun’19 Mar’20 Jun’20 (Jun’20) Amount % PSU Bonds 5103 4694 4653 10.05 (450) (8.81) Corporate and Other Bonds 7168 5894 7935 17.14 767 10.7 Special Govt. Sec excl. Recap Bonds 4202 3971 3867 8.35 (336) (7.99) CG Recap. Bond 11667 1
Slide 30: Asset Quality
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Slide 31: Asset Quality Ratios
Asset Quality Ratios Amount in Rs. Crore Parameters Jun’19 Mar’20 Jun’20 Gross NPA 64802 61127 57526 Gross NPA (%) 10.28 9.39 8.84 Net NPA 35236 26755 24355 Net NPA (%) 5.87 4.34 3.95 Provision Coverage Ratio (%) 68.75 76.95 78.95 Credit Cost (%) 2.86 2.83 2.58 Slippage Ratio (%) 1.06 4.28 0.24 Page
Slide 32: Movement of NPA
Movement of NPA Amount in Rs. Crore Sl.No Parameters Jun’19 Mar’20 Jun’20 FY20 (a) NPA as at the beginning of period 63904 61975 61127 63904 (i) -Cash Recovery towards Book liability 1587 2213 1440 12105 (ii) -Up-gradation in existing NPA upto 31st 560 352 620 2347 (iii) -Write Off 2975 3550 3216 12
Slide 33: NPA Classification: Sector Wise
NPA Classification: Sector Wise Amount in Rs. Crore Advance O/s Jun’19 Mar’20 Jun’20 GNPA (%) (Jun’20) Global Gross NPA 64802 61127 57526 650574 8.84 Overseas Gross NPA 5397 6580 6473 26402 24.52 Domestic Gross NPA 59405 54547 51053 624172 8.18 Retail 2768 2614 2392 107573 2.22 Agriculture & Allied
Slide 34: Retail Sector NPA
Retail Sector NPA Amount in Rs. Crore Advance Parameters Jun’19 Mar’20 Jun’20 O/s GNPA (%) (Jun-20) Total Retail NPA 2768 2614 2392 107573 2.22% Housing Loans 1006 1005 871 58243 1.50% Vehicle Loans 362 343 305 12508 2.44% Education Loan 514 489 417 12626 3.30% Other Personal Loans 887 777 799 24196
Slide 35: NPA Classification: Industry wise
NPA Classification : Industry wise Amount in Rs. Crore Sector/Scheme Jun’19 Mar’20 Jun’20 % of Advances Infrastructure 10876 8021 7853 9.86 Iron & Steel 7490 2702 1551 7.54 Textile 1157 1147 1084 7.37 Food Processing 1797 1602 1664 12.42 Engineering 216 243 268 2.21 Construction 946 1803 1707 21.52
Slide 36: Special Mention Accounts (SMA)
Special Mention Accounts (SMA) Amt in Rs. Crore SMA Position of the Bank (Rs. 5 Cr and above) Mar’20 Jun’20 No of Accounts % TO GROSS No of Accounts % TO GROSS Outstanding Outstanding ADVANCES* ADVANCES* SMA 2 169 3911 0.52 223 5828 0.74 SMA 1 305 7653 1.02 134 2834 0.36 TOTAL SMA 1 &2 474 11564 1.5
Slide 37: Accounts referred to NCLT; NCLT Resolution Status
Accounts referred to NCLT Provision Amt in Rs. Crore Provision No of Book Provision Pending Book Provision Parameters coverage coverage Accounts Liability Made Accounts Liability made (30.06.2019) (30.06.2019) (30.06.2019) June 20 (30.06.2019) (30.06.2020) (30.06.2020) (30.06.2020) Ist List - 12 124
Slide 38: Capital & Share Holding
Capital & Share Holding Page 37
Slide 39: Capital Funds (Basel III)
Capital Funds (Basel III) Amt in Rs. Crore Parameters Jun’19 Mar’20 Jun’20 Tier I 49868.63 49071.65 48086.38 Common Equity 44033.17 43173.94 41288.74 Additional Tier I 5835.46 5897.71 5897.64 Tier II 14694.94 17353.00 18039.73 Total (Tier I+II) 64563.57 66424.65 66126.12 Risk-weighted Assets 524354.
Slide 40: Shareholding Pattern
Shareholding Pattern As on June 30, 2020 Resident Individuals Staff Others 6.4% 1.4% 2.1% FIIs/FPIs Mutual Funds 2.6% 2.4% Insurance Companies 6.5% Government 78.6% Page 39
Slide 41: Expanding Reach
| dorel da Canara Bank I Expanding Reach Page 40
Slide 42: Expanding the reach
Expanding the reach JUN’20 Parameters Jun’19 Mar’20 Jun’20 Urban, Metro, Domestic Branches 10380 10391 10451 2073, 2124, 19.84% 20.32% Overseas Branches 7 6 5 Rural, 3079, BC Points 5585 9145 9383 29.46% Semi-Urban, 3175, Total Banking 30.38% 15971 19542 19840 Outlets ATM 13386 13423 13401 Populatio
Slide 43: Financial Inclusion
Financial Inclusion Accounts opened under PMJDY Deposits Mobilised under PMJDY (in Lacs) (Amount in Cr) 133 5541 4067 123 Jun'19 Jun'20 Jun'19 Jun'20 Page 42
Slide 44: Covid-19 Response
| dorer da Canara Bank A } —Covid-19 Response Page 43
Slide 45: COVID-19- Credit Support
COVID-19- Credit Support Amt in Rs. Crore Accounts in Actual Number 6095 1878 354804 77221 Emergency Credit Line GECL No of Accts Amount Page 44
Slide 46: COVID-19- Moratorium Details
COVID-19- Moratorium Details COVID- Moratorium % OF AVAILED TOTAL % OF AVAILED TOTAL NO OF SECTOR AVAILED ACS ACS TO TOTAL OUTSTANDING AVAILED AMT AMT TO TOTAL ACS ACS AMT AMT AGRICULTURE 9270877 1786695 19.27 119852 29046 24.24 RETAIL 1770400 609561 34.43 95053 28828 30.33 MSME 1333785 479827 35.97
Slide 47: COVID-19- Response
COVID-19- Response 97% 91% 37 cr 1.67cr Business Continuity Branches operational ATMs operational E Transactions BC Transactions Introduced Work Staggered Divyangjan exempted Sanitization of all Employee Safety from Home. working hours from attending office work units Rs 805 Cr Rs 1029 Cr Community
Slide 48: Thank You
ore! da Car Thank You Page 47