Canara Bank · NSE:CANBK
Canara Bank — FY2020 Earnings Presentation
57 slides from Canara Bank's earnings presentation, Jun 24, 2020
Slide 1: Canara Bank exchange filing cover letter
Canara Bank Ref:: SD: 1068/1069/11/12::2020 24.06.2020 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 400051 Dear Sir/Madam, Subject
Slide 2: Financial Results Q4 & FY 2020
Financial Results Q4 & FY 2020 Page 1
Slide 3: Performance Highlights-FY20
Performance Highlights-FY20 12.02% SB 18.83% Non Interest Income y-o-y Rs 1,69,749 Cr y-o-y Rs 7,813 Cr 12.24% CASA 12.69% Recovery in Written Off Accounts y-o-y Rs 1,96,207 Cr y-o-y Rs 1470 Cr 173 175 Domestic CASA share CRAR bps bps y-o-y 32.59 % 13.65 % y-o-y 11.37% Retail Term Deposits -62 Gross
Slide 4: Contents
Contents Business Performance Financial Performance Investment Asset Quality Capital & Share Holding Expanding Reach – Offline & Online Awards & Accolades Subsidiaries, Associates & JV Amalgamation- Stronger Together Way Forward Page 3
Slide 5: Business Performance
| corer dap AX canara Bank I Business Performance
Slide 6: Business Performance
Business Performance Amt in Rs. Crore Growth % Parameters Mar’19 Jun’19 Sep’19 Dec’19 Mar’20 Q-o-Q Y-o-Y Global Gross Business 1043249 1059964 1055653 1063450 1076574 1.23 3.19 Domestic Gross Business 984921 1000987 992665 1003398 1028348 2.49 4.41 Overseas Gross Business 58328 58977 62988 60052 482
Slide 7: Deposit Mix
Deposit Mix Amt in Rs. Crore Growth % Parameters Mar’19 Jun’19 Sep’19 Dec’19 Mar’20 Q-o-Q Y-o-Y Saving Deposits 151535 148529 153235 158754 169749 6.93 12.02 Current Deposits 23274 21790 32499 24109 26458 9.74 13.68 CASA Deposits 174809 170319 185734 182863 196207 7.30 12.24 Domestic CASA % 30.86 29
Slide 8: Advances Mix
Advances Mix MAR’20 Amt in Rs. Crore Agri Corporate 21.29% Growth % & Others 43.57% MSME Parameters Mar’19 Mar’20 17.46% Y-o-Y Retail 17.69% Retail Loans 71185 79800 12.10 Agriculture & Allied 90543 96043 6.07 RAM: 56.4% MAR’19 MSME 78773 (7.51) 85168 Agri 20.38% Corporate RAM Credit 246896 254616 3
Slide 9: Achievement Under Mandated Targets – Priority Sector
Achievement Under Mandated Targets – Priority Sector Achieved the mandated norms in respect of: Total Priority (44.66 % to ANBC against 40% norm,49.95% prior to PSLC) Mandated Norms under Agriculture (18.58% to ANBC against 18% norm, 23.88% prior to PSLC) Priority Sector Small and Marginal Farmers (
Slide 10: MSME credit
MSME credit Segment Mix Book by Loan size Upto 5 Cr 19% 7% 12% 43% Micro 5 Cr-10 Cr Small 7% 10 Cr-25 Cr Medium 38% 74% Above 25 Cr Geographical Mix 35% 32% 23% Short Term North Loan 15% 11% East 68% Long Term 65% South Loan 51% West MARCH 2019 MARCH 2020 Page 9
Slide 11: Retail Credit
Retail Credit Core Retail loans Housing Loans Vehicle Loans 79800 39611 12.1% 18.0% 10446 10.6% 71185 9446 33581 Mar’19 Mar’20 Mar’19 Mar’20 Mar’19 Mar’20 Amt in Rs. Crore Growth % Parameters Mar’19 Mar’20 Y-o-Y Housing Loans 33581 39611 17.96 Vehicle Loans 9446 10446 10.59 Education Loan 8859 9423
Slide 12: Industry Credit
Industry Credit Amt in Rs. Crore Growth % Sector/Scheme Mar’19 Mar’20 Y-o-Y Infrastructure 56798 55993 (1.40) Iron & Steel 20146 18026 (10.52) Textile 13621 13447 (1.28) Food Processing 10562 10347 (2.04) Engineering 9867 10068 2.04 Construction 5514 5667 2.77 Chemical & Chemical products 3978 3923
Slide 13: Credit to NBFC, Capital Market and CRE
Credit to NBFC, Capital Market and CRE Amt in Rs. Crore Parameters Mar’19 Mar’20 Y-o-Y Total NBFC 52943 53879 1.77 Out of which : HFCs 21635 20088 (7.15) Private 21189 21773 2.76 Public 10119 12018 18.77 Capital Market 4164 4032 (3.17) Commercial Real Estate 6082 9170 50.77 Page 12
Slide 14: Rating profile and Concentration Risk
Rating profile and Concentration Risk External Rating - Wise Distribution of Domestic Advances above Rs. 5 crore (% of total rated loan book above Rs 5 crore) Mar’19 Mar’20 External Rating Outstanding % Share Outstanding % Share A and above 94372 65.84 95457 63.60 BBB 22427 15.65 25490 16.98 BB and
Slide 15: Advances Mix of the Lending Rate (%)
Advances Mix of the Lending Rate (%) Advances Mix of Benchmark Rates (%) 4% 5% 3% 4% 5% 1% 3% 74% 74% 77% 76% 74% 3% 3% 3% 3% 3% 19% 18% 17% 16% 15% Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Base Rate BPLR MCLR RLLR Fixed & Others Page 14
Slide 16: Financial Performance
Financial Performance Page 15
Slide 17: Total Income
Total Income Amt in Rs. Crore Growth Quarterly Annual % Parameters Q4 Q1 Q2 Q3 Q4 FY2019 FY2020 Y-o-Y FY2019 FY2020 FY2020 FY2020 FY2020 Interest Income 12138 12201 12392 12295 12047 46810 48935 4.54 Interest on Advances 8630 9099 9185 9069 8723 34319 36076 5.12 Interest on Investments 2819 2793 278
Slide 18: Non-Interest Income
Non-Interest Income Amt in Rs. Crore Quarterly Annual Growth % Sl. Parameters Q4 Q1 Q2 Q3 Q4 No FY2019 FY2020 Y-o-Y FY2019 FY2020 FY2020 FY2020 FY2020 (A) Fee Based Income (i+ii+iii) 657 815 694 602 574 2442 2685 9.94 i) Comm Exchange & Brok 253 198 191 203 231 885 824 (6.91) (a) Commission on LC/BG
Slide 19: Total Expense
Total Expense Amt in Rs. Crore Quarterly Annual Growth % Parameters Q4 Q1 Q2 Q3 Q4 FY2019 FY2020 Y-o-Y FY2019 FY2020 FY2020 FY2020 FY2020 Interest Expenses 8638 8960 9262 8860 8729 32332 35811 10.76 Interest Paid on Deposits 8075 8406 8604 8303 8209 30098 33521 11.37 Other Interests 563 554 659 557
Slide 20: Financials at a Glance
Financials at a Glance Amt in Rs. Crore Quarterly Annual Growth % Parameters Q4 Q1 Q2 Q3 Q4 FY2019 FY2020 Y-o-Y FY2019 FY2020 FY2020 FY2020 FY2020 Total Interest Income 12138 12201 12392 12295 12047 46810 48935 4.54 Total Interest Expenses 8638 8960 9262 8860 8729 32332 35811 10.73 Net Interest Inco
Slide 21: Provisions
Provisions Amt in Rs. Crore Parameters Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 FY19 FY20 Total Provision 3525 2111 2180 2005 5300 10244 11596 NPAs 5121 2283 2300 1200 4875 12723 10655 Standard Asset 310 71 (6) 193 121 406 379 Depreciation on Investment 420 (499) (109) 465 (135) 370 (278) Income Tax (1999
Slide 22: Key Ratios
Key Ratios (%) Ratios Mar’19 Jun’19 Sep’19 Dec’19 Mar’20 Quarterly Cumulative Quarterly Cumulative Quarterly Cumulative Quarterly Cumulative Quarterly Cumulative RoA (0.36) 0.06 0.19 0.19 0.21 0.20 0.19 0.19 (1.85) (0.32) Return on Net-worth (8.88) 1.40 4.94 4.94 5.36 5.13 4.27 4.44 (47.07) (8.05) C
Slide 23: Key Ratios - Q4FY20
Key Ratios - Q4FY20 Cost of Deposits (%) Cost of Funds (%) Yield on Advances (%) 6.07 5.60 8.44 5.38 7.97 4.95 Q4FY19 Q4FY20 Q4FY19 Q4FY20 Q4FY19 Q4FY20 Yield on Funds (%) NIM (%) 7.87 2.76 2.28 6.84 Q4FY19 Q4FY20 Q4FY19 Q4FY20 Page 22
Slide 24: Key Ratios - FY20
Key Ratios - FY20 Cost of Deposits (%) Cost of Funds (%) Yield on Advances (%) 5.66 8.39 5.57 5.24 8.18 5.12 FY19 FY20 FY19 FY20 FY19 FY20 Yield on Investments (%) Yield on Funds (%) NIM (%) 7.59 7.62 2.63 2.29 7.33 6.99 FY19 FY20 FY19 FY20 FY19 FY20 Page 23
Slide 25: Investments
Investments Page 24
Slide 26: Investment Portfolio
Investment Portfolio Amt in Rs. Crore Sl. Parameters Mar’19 Jun’19 Sep’19 Dec’19 Mar’20 (1) Domestic Investments 153301 154098 161199 165649 176476 (a) SLR 127291 128646 130354 134981 145885 (b) Non SLR 26010 25451 30846 30668 30591 SLR as % to Dom. Investments 83.03% 83.48% 80.87% 81.49% 82.67% (i)
Slide 27: Non SLR Portfolio
Non SLR Portfolio Amt in Rs. Crore % Share Y-o-Y Variation Parameters Mar’19 Jun’19 Sep’19 Dec’19 Mar’20 (Mar’20) Amount % PSU Bonds 4571 4377 4151 4114 3975 12.99% (596) (13.1) Corporate and Other Bonds 5093 4868 4388 3914 3664 11.98% (1429) (28.1) Special Govt. Sec excl. Recap 3994 3863 3863 3653
Slide 28: Asset Quality
Asset Quality Page 27
Slide 29: Asset Quality Ratios
Asset Quality Ratios Amount in Rs. Crore Parameters Mar’19 Jun’19 Sep’19 Dec’19 Mar’20 Gross NPA 39224 39399 38711 36645 37041 Gross NPA (%) 8.83 8.77 8.68 8.36 8.21 Net NPA 22955 23150 22090 21338 18251 Net NPA (%) 5.37 5.35 5.15 5.05 4.22 Provision Coverage Ratio (%) 68.13 68.62 70.11 70.97 75.86
Slide 30: Movement of NPA
Movement of NPA Amount in Rs. Crore Sl.N Parameters Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 FY19 FY20 o (a) NPA as at the beginning of period 44621 39224 39399 38711 36645 47468 39224 (i) -Cash Recovery towards Book 966 1228 1297 4584 1412 6383 8521 liability (ii) -Up-gradation in existing NPA upto -18 3
Slide 31: NPA Classification: Sector Wise
NPA Classification: Sector Wise Amount in Rs. Crore Advance O/s Mar’19 Jun’19 Sep’19 Dec’19 Mar’20 GNPA (%) (Mar’20) Global Gross NPA 39224 39399 38711 36645 37041 451223 8.21 Overseas Gross NPA 3059 3089 3461 3473 4085 24539 16.65 Domestic Gross NPA 36165 36310 35250 33172 32956 426684 7.72 Retail
Slide 32: Retail Sector NPA
Retail Sector NPA Amount in Rs. Crore Advance Parameters Mar’19 Jun’19 Sep’19 Dec’19 Mar’20 O/s GNPA (%) (Mar-20) Total Retail NPA 1287 1307 1280 1311 1337 79800 1.68 Housing Loans 439 472 477 479 497 39611 1.25 Vehicle Loans 175 198 191 197 197 10446 1.88 Education Loan 296 206 192 237 235 9423 2.4
Slide 33: NPA Classification : Industry wise
NPA Classification : Industry wise Amount in Rs. Crore Sector/Scheme Mar’19 Jun’19 Sep’19 Dec’19 Mar’20 % of Advances Infrastructure 7858 8801 7251 7051 5959 10.64 Iron & Steel 5698 5132 5143 1381 1265 7.02 Textile 873 907 916 868 871 6.48 Food Processing 1647 1463 1492 1316 1359 13.13 Engineering 2
Slide 34: Special Mention Accounts (SMA)
Special Mention Accounts (SMA) Amt in Rs. Crore SMA Position of the Bank (Rs. 5 Cr and above) Mar’19 Dec’19 Mar’20 % of total % of total % of total Outstanding Outstanding Outstanding Advances Advances Advances SMA 2 2323 0.46 5228 1.04 2764 0.52 SMA 1 4138 0.82 2705 0.54 5358 1.02 SMA 0 18982 3.77
Slide 35: Accounts referred to NCLT
Accounts referred to NCLT Amt in Rs. Crore No. of Book Liability Provisions made Provision Parameters Pending coverage (31.03.2020) (31.03.2020) (for NCLT A/cs) Accounts 1st List of RBI 7 5186 5186 100% 2nd List of RBI 15 4791 4544 95% Others 244 24199 18469 76% Total 266 34176 28199 83% RBI 1st lis
Slide 36: Capital & Share Holding
Capital & Share Holding Page 35
Slide 37: Capital Funds (Basel III)
Capital Funds (Basel III) Amt in Rs. Crore Parameters Mar’18 Mar’19 Mar’20 Tier I 36224 31851 36529 Common Equity 33455 29300 33881 Additional Tier I 2769 2551 2648 Tier II 10280 10082 12727 Total (Tier I+II) 46504 41933 49256 Risk-weighted Assets 351698 352456 360906 Gross Advances 400843 444216 45
Slide 38: Shareholding Pattern
Shareholding Pattern As on March 31st, 2020 Page 37
Slide 39: Expanding Reach
Expanding Reach Page 38
Slide 40: Expanding the reach
Expanding the reach MAR’20 Parameters Mar’19 Dec’19 Mar’20 Urban Metro Domestic Branches 6310 6328 6329 1226 1273 19.37% 20.11% Overseas Branches 6 5 5 Rural 1826 BC Points 2652 5240 6441 28.85% Semi-Urban 2004 Total Banking Outlets 8968 11573 12775 31.66% ATM 8851 8873 8850 Population group Mar’19
Slide 41: Financial Inclusion
Financial Inclusion Accounts in Lakh, Amount in Rs Cr Accounts opened under PMJDY Deposits Mobilised under PMJDY 2874 76.38 72.8 2450 Mar’19 Mar’20 Mar’19 Mar’20 Accounts opened under Pradhan Mantri Accounts opened under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) Suraksha Bima Yojana (PMSBY) 3
Slide 42: Expanding Digital Reach
Expanding Digital Reach UPI Transactions Internet Banking 123 Crore No. of Users: 109.35 Lakh YoY growth: 251.53% YoY growth: 76.76% Mobile Banking E-Transaction: No. of Users: 42.24 Lakh 73.92% YoY growth: 93.21% Page 41
Slide 43: Awards & Accolades
Awards & Accolades Page 42
Slide 44: Awards & Accolades – FY20
Awards & Accolades – FY20 Best innovation in Banking technology award for CANDI Branch received in IDRBT banking technology innovation contest. Canara DiYA won Silver in SKOCH Awards 2019 IBA's 15th Annual Banking Technology Award 2020 received for Most Customer- Centric Bank using Technology
Slide 45: Subsidiaries, Associates & JV
Subsidiaries, Associates & JV Page 44
Slide 46: Associates & Subsidiaries
Associates & Subsidiaries Amt in Rs. Crore Profit after Tax Name of the Entity % Holding Y-o-Y FY 2019 FY 2020 Growth % Subsidiaries Canbank Financial Services Ltd. 100 2.10 62.21 2862.38 Canara Bank Securities Ltd. 100 9.71 22.71 133.88 Canbank Factors Ltd. 70 2.72 4.44 63.24 Canbank Computer Servi
Slide 47: Amalgamation- Stronger Together
Amalgamation- Stronger Together Page 46
Slide 48: Benefit to all stakeholders
Benefit to all stakeholders • Wider suite of products and offerings with better pricing • Greater accessibility due to wide network coverage • Improved customer service due to more allocation of staff to front end customer facing roles. • Customer transactions through RTGS/NEFT and cash withdrawal t
Slide 49: Interoperable services
Interoperable services From 1st April 2020, Customers can walk-in to any branch of the …to avail 12 key services amalgamated bank B. Non Financial services A. Financial services 5) Opening of SB Account 1) Cash Withdrawal 6) Cheque Book request 2) Cash Deposit 7) Stop payment of Cheque 3) Funds Tran
Slide 50: Pan India Presence: Canara Bank
1/1 38/30 72/62 294/233 24/34 146/150 352/356 10/10 Pan India Presence: Canara Bank 324/507 12/11 No of Branches : 10403 / No of ATMs: 13406 1200/1302 270/260 113/98 4/3 15/16 318/407 6/5 19/15 191/208 7/6 341/313 425/477 ATMs - 13406 265/243 117/93 293/296 6/5 634/843 385/503 BCs - 9225 81/107 703/
Slide 51: Favorable Staff Profile
Favorable Staff Profile 57918 Canara eSyndicate Total % Share 32223 Officers Officers 32223 17028 49251 54.72 32084 SWO/Clerk SWO/Clerk 17028 Sub-Staff 18236 8994 27230 30.25 18236 8994 Sub-Staff 7459 6062 13521 15.03 7459 6062 Canara Bank eSyndicate Total Staff 57918 32084 90002 100.00 *eSB - erstw
Slide 52: Covid-19 Response
Covid-19 Response Page 51
Slide 53: COVID-19- Response
COVID-19- Response 97% 92% 24 cr 1.2 cr 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. 4.35 Crore for COVID-19 rel
Slide 54: Credit and Financial Support
Credit and Financial Support Introduced CANARA CREDIT SUPPORT as part of Emergency Credit Line Facilities to Covid-19 affected customers. Loans worth Rs.1571 cr has been disbursed to over 73031 accounts under MSME so far. Credit Support Introduction of Guaranteed Emergency Credit Line (GECL) for eli
Slide 55: Way Forward
| dorel da Canara Bank AN I Way Forward
Slide 56: Focus Areas - FY 2020-21
Focus Areas - FY 2020-21 Shoring up CASA and reduction in high cost deposits. Balanced growth in advances with proper mix of Retail, Agri, MSME & Corporate Credit. 100% Guaranteed MSME Lending. Focus on NPA management with strategic actions on strengthening credit monitoring, contain fresh slippages
Slide 57: Thank You
dorel da Canara Bank AN Thank You Page 56