Canara Bank · NSE:CANBK
Canara Bank — Q2 FY2020 Earnings Presentation
35 slides from Canara Bank's earnings presentation, Nov 6, 2019
Slide 1: Exchange filing cover letter for investor presentation
dori da LA canara Bank Ref:: MD&CEO:SD:777/778/11/12::2019 06.11.2019 The Vice President The Vice President The Bombay Stock Exchange Ltd. Listing Department Phiroze Jeejeebhoy Towers National Stock Exchange of India Ltd Dalal Street, EXCHANGE PLAZA MUMBAI - 400 001 Bandra-Kurla Complex, Bandra [E]
Slide 2: Financial Results Q2 FY 2020 Analyst Presentation
Financial Results Q2 FY 2020 Business Canara Debit Card Diya Cebit Card Canara Bhim QR Internet Banking Canara mServe Corporate Analyst Canara Saathi Internet Banking Presentation Canara Mobile e-infoBook Banking BHIM Candi Canara eMpower NSE: CANBK BSE: 532483 1
Slide 3: Performance Highlights – Q2 FY2020 (Y-o-Y)
Performance Highlights – Q2 FY2020 (Y-o-Y) Total Business Gross Advances Total Deposits Operating Profit Net Profit Rs. 1055653 cr Rs. 446217 cr Rs. 609436 cr Improved from Improved from Rs.2327 Cr to Rs.2545 Cr Rs.300 Cr to Rs.365 Cr 7.71 4.22 10.42 9.37 % % % 21.89 % % 68.4 Key Ratios % RoA up fro
Slide 4: Global Business
Global Business Amt. in Rs. Crore Growth % Growth % Parameters Mar’18 Sep’18 Mar’19 Jun’19 Sep’19 Q-o-Q Y-o-Y Global Deposits 524772 551926 599033 610674 609436 (0.20) 10.42 Global Advances 400843 428158 444216 449290 446217 (0.68) 4.22 (Gross) Global Business 925615 980084 1043249 1059964 1055653 (
Slide 5: Domestic & Overseas Business
Domestic & Overseas Business Amt. in Rs. Crore Domestic Business Parameters Mar’18 Sep’ 18 Mar’19 Jun’19 Sep’19 Gr. % Q-o-Q Gr. % Y-o-Y Domestic Deposits 485994 523947 565917 577439 574110 (0.58) 9.57 Domestic Advances 371205 405958 419005 423548 418555 (1.18) 3.10 (Gross) Domestic Business 857199 9
Slide 6: Business Mix
Business Mix (Rs. in Crores) Growth % Growth % Parameters Mar-18 Sep-18 Mar-19 Jun-19 Sep-19 Q-o-Q Y-o-Y Global Deposits 524772 551926 599033 610674 609436 (0.20) 10.42 Global Advances (Gross) 400843 428158 444216 449290 446217 (0.68) 4.22 Global Business 925615 980084 1043249 1059964 1055653 (0.41)
Slide 7: Credit Portfolio
Credit Portfolio (Rs. in Crores) Growth % Growth % Parameters (Amount O/s) Mar-18 Sep-18 Mar-19 Jun-19 Sep-19 Q-o-Q Y-o-Y I. Priority Sector Credit 1. Agriculture Credit (a) Retail – Agri. Credit 77120 80699 84288 86462 89456 3.46 10.85 (b) Non-Retail - Agri. Credit 5336 5808 6255 6227 6378 2.42 9.8
Slide 8: Credit Portfolio (Contd.)
Credit Portfolio (Contd.) (Rs. in Crores) Growth Growth Parameters Mar-18 Sep-18 Mar-19 Jun-19 Sep-19 % % Q-o-Q Y-o-Y a. Total Priority and Retail Credit 222216 241021 250076 259240 264304 1.95 9.66 b. Staff Loans 4773 5183 6036 6218 6394 2.84 23.36 c. Total Corporate Credit 173854 181954 188104 183
Slide 9: Priority Sector Credit for ANBC
Priority Sector Credit for ANBC (Rs. in Crores) Growth % Growth % Parameters Mar-18 Sep-18 Mar-19 Jun-19 Sep-19 QoQ YoY Priority Sector Advances- ANBC Priority Sector Advance O/s 183313 193537 195126 207370 209124 0.8 8.1 (Add) RIDF & Others 2313 2122 1886 1844 1745 (5.4) (17.8) (Less) PSLC Sold 137
Slide 10: Priority Sector Credit Outstanding
Priority Sector Credit Outstanding (Rs. in Crores) Growth Growth Regulatory Parameters Mar-18 Sep-18 Mar-19 Jun-19 Sep-19 %QoQ %YoY Requirement ANBC 321749 342838 366197 374884 390894 4.3 14.0 -- Priority Sector 171906 180159 176338 197190 192341 (2.5) 6.8 -- Advances for ANBC % of Priority Sector 5
Slide 11: Retail Credit Outstanding
Retail Credit Outstanding (Rs. in Crores) Growth % Growth % Parameters Mar-18 Sep-18 Mar-19 Jun-19 Sep-19 Q-o-Q Y-o-Y (a) Housing Loans 27572 30551 33581 34888 36611 4.94 19.84 (b) Vehicle Loans 6739 7637 9446 9787 10077 2.96 31.95 (c) Education Loan 8438 8855 8859 9036 9326 3.21 5.32 (d) Other Pers
Slide 12: Infrastructure Credit – Sector Wise
Infrastructure Credit – Sector Wise (Rs. in Crores) Outstanding balance % to Total Growth % Growth % Parameters Advances Mar-18 Sep-18 Mar-19 Jun-19 Sep-19 Sep’19 Q-o-Q Y-o-Y (A) Total Exposure to Power 31115 29692 30389 30172 32915 7.4 9.1 10.9 (i) Central Govt. Undertakings 2377 3463 3433 3228 424
Slide 13: Infrastructure Credit - Power
Infrastructure Credit - Power (Rs. in Crores) Outstanding balance Parameters Mar'18 Sep'18 Mar'19 Jun'19 Sep’19 To To To To To Central/ To Other Central/ To Other Central/ To Other Central/ To Other Central/ To Other State Sectors State Sectors State Sectors State Sectors State Sectors sector sector
Slide 14: Investments
Investments (Rs. in Crores) HTM 63.82% Category Mar-18 Sep-18 Mar-19 Jun-19 Sep-19 HTM 100086 95301 88627 87286 101555 AFS 42463 54448 61611 64332 57433 HFT 204 123 222 123 148 TOTAL AFS 142753 149872 150460 151741 159136 HFT 36.09% (Domestic) 0.09% Modified Duration (Sep-19) AFS 2.31 Entire Portfol
Slide 15: Income & Expenditure
Income & Expenditure (Rs. in Crores) Outstanding balance - Quarterly Qrtrly Growth Half Yearly Q4 Q2 Q4 Q1 Q2 H1 H1 Growth % q.o.q % y.o.y FY2018 FY2019 FY2019 FY2020 FY2020 FY2019 FY2020 % y.o.y Total Interest Income 10223 11124 12138 12201 12392 1.57 11.40 22483 24593 9.4 Total interest 7236 7842
Slide 16: Interest & Non-Interest Income
Interest & Non-Interest Income (Rs. in Crores) Quarterly Half year Parameters Q4 Q2 Q4 Q1 Q2 Growth Growth H1 H1 Growth FY2018 FY2019 FY2019 FY2020 FY2020 % q.o.q % y.o.y FY2019 FY2020 % y.o.y Interest Income Interest on Advances 7252 8201 8630 9099 9185 0.95 12.00 16527 18284 10.63 Interest on Inve
Slide 17: Expenses
Expenses (Rs. in Crores) Quarterly Half Year Parameters Q4 Q2 Q4 Q1 Q2 Growth % Growth % H1 H1 Growth % FY2018 FY2019 FY2019 FY2020 FY2020 q.o.q y.o.y FY2019 FY2020 y.o.y Interest Expenses (i) Interest Paid on 6716 7348 8075 8406 8604 2.36 17.09 14329 17009 18.7 Deposits (ii) Other Interests 520 494
Slide 18: Key Ratios
Key Ratios (%) Mar-18 Sep-18 Mar-19 Jun-19 Sep-19 Ratios Quarterly Cumulative Quarterly Cumulative Quarterly Cumulative Quarterly Cumulative Quarterly Cumulative Cost of Funds 5.11 5.17 5.22 5.13 5.60 5.24 5.28 5.28 5.25 5.25 Cost of Deposits 5.42 5.60 5.54 5.52 6.07 5.66 5.75 5.75 5.69 5.72 Yield o
Slide 19: Asset Quality
Asset Quality (Rs. in Crores) Parameters Mar-18 Sep-18 Mar-19 Jun-19 Sep-19 Gross NPA 47468 45233 39224 39399 38711 Gross NPA (%) 11.84 10.56 8.83 8.77 8.68 Net NPA 28542 26778 22955 23150 22090 Net NPA (%) 7.48 6.54 5.37 5.35 5.15 Provision Coverage 58.06 61.39 68.13 68.62 70.11 Ratio (%) Credit Co
Slide 20: NPA Movement
NPA Movement (Rs. in Crores) 2018-19 FY 2018- 2019-20 Particulars Q1 Q2 Q3 Q4 19 Q1 Q2 Opening Balance 47468 44660 45233 44621 47468 39224 39399 Additions 4205 3697 5109 2469 15480 3676 2602 Reductions 7013 3124 5721 7866 23724 3501 3290 Cash Recovery- 2535 938 1944 966 6383 1228 1297 Ledger Balance
Slide 21: Sector Wise Classification of NPAs
Sector Wise Classification of NPAs (Rs. in Crores) Sep-19 Sectors Mar-18 Sep-18 Mar-19 Jun-19 Sep-19 Gross % to Gross Advance Adv NPA under Priority Sector (A) Retail Agri. Credit 3457 3784 4516 4818 5015 89456 5.61 (B) Non-Retail Agri. Credit 394 449 432 443 491 6378 7.70 (C)Total Agriculture Credi
Slide 22: NPAs under Corporate Sector- Industry Wise Classification
NPAs under Corporate Sector- Industry Wise Classification (Rs. in Crores) Advance O/s Sector/Scheme Mar-18 Sep-18 Mar-19 Jun-19 Sep-19 (Sep-19) Iron & Steel 11397 8936 5698 5132 5143 13963 Engineering 1149 23 22 65 57 8966 Textile 1972 1404 873 907 916 10614 Infra -Energy 5698 4399 3667 3689 3853 32
Slide 23: NBFC Exposure & NPA
NBFC Exposure & NPA (Rs. in Crores) Mar’18 Sep’18 Mar’19 Jun’19 Sep’19 Total Fund Based exposure Total NBFC (Fund Based) 37676 46302 52943 53320 51830 Out of which : HFCs 13508 18553 21635 20211 20510 Private 19122 21235 21189 21851 20159 Public 5046 6514 10119 11258 11161 Gross NPA Total NBFC NPA 1
Slide 24: Accounts referred to NCLT and Resolution Status
Accounts referred to NCLT No. of Book Liab. Provisions made Provision Parameters coverage Accounts (Amt in Cr) (Amt in Cr) (for NCLT A/cs) 1st List of RBI 12 8847 6954 78.6% 2nd List of RBI 16 4794 3906 81.5% Others 234 22052 17136 77.7% Total 262 35693 27996 78.4% NCLT Resolution Status Recovery so
Slide 25: Capital Funds (Basel III)
Capital Funds (Basel III) (Rs. in Crores) Particulars Mar-18 Sep-18 Mar-19 Jun-19 Sep-19 Common Equity Tier-1 (CET-I) 33455 33608 29300 29759 36523 Additional Tier - 1 2769 2776 2551 2601 2716 Tier – II 10280 10188 10082 10102 10093 Capital 46504 46572 41933 42463 49332 Total Risk Weighted Assets 35
Slide 26: Shareholding Pattern
Shareholding Pattern As on Sep 30th, 2019* Before Infusion of Capital by GoI After Infusion of Capital by GoI Others Others 8.68% FIIs/FPIs 6.34% FIIs/FPIs 3.29% 4.50% Insurance & Mutual Funds Insurance & 11.85% Mutual Funds 16.20% Government 70.62% Government 78.52% * Govt. of India (GoI) has infus
Slide 27: Enhancing Digital Footprints
Enhancing Digital Footprints No. of Credit cards (Lakhs) Card Spend (Rs crore) No. of Debit cards (Crore) Card Spend (Rs Billion) 4.48 4.52 4.58 4.27 3.97 386 3.69 352 351 3.38 319 332 317 2.98 575 531 2.81 2.24 498 2.09 478 1.90 399 356 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Jun-18 Sep-18 Dec-18
Slide 28: Customer-friendly Technology Initiatives in Q2FY2020
Customer-friendly Technology Initiatives in Q2FY2020 Internet Banking OMNI Channel WEB version released for customers. OMNI Channel Version Mobile Banking Application released for iOS Customers. Additional facilities introduced in Mobile Banking during the quarter ASBA issuer module integrat
Slide 29: Expanding the Reach
Expanding the Reach 6305 Domestic Banking Population group Sep’18 Mar’ 19 Sep’19 % to total (of Regular Banking Outlets) Outlets. Rural 1780 1821 1824 28.93 5 overseas branches at Semi-Urban 1953 2003 2002 31.75 Rural + Semi-urban 3733 3824 3826 60.68 Johannesburg, New York, London, Hong Urban 1144
Slide 30: Expanded Clientele Base
Expanded Clientele Base (In Lakhs) Y-o-Y Y-o-Y Sep’ 18 Mar’ 19 Sep’19 Increase Growth (%) Clientele 848 873 899 51 6.01 8.99 Crore Clientele No. of Deposit A/cs 758 780 802 44 5.80 Base No. of Borrowal A/cs 90 93 97 7 7.78 51 lakh Clientele accounts added y-o-y. Page 29
Slide 31: Profit after tax of Subsidiaries, Associates & JVs
Profit after tax of Subsidiaries, Associates & JVs (Rs. in Crores) Ownership Q2 Q4 Q1 Q2 Sl. No Profit after tax (Quarterly) Interest as on FY2019 FY2019 FY2020 FY2020 Sept'19 Subsidiaries 1 Canbank Financial Services Ltd 100% -0.10 -0.31 -0.11 -0.40 2 Canbank Venture Capital Fund Ltd 100% 1.48 1.79
Slide 32: Recent Developments
Recent Developments Govt. of India has infused capital of Rs. 6571 Crores under GOI Recapitalisation plan in two tranches on 27/09/2019 (Rs. 1806 cr) & on Capital 30/09/2019 (Rs. 4765 cr) thereby increasing the GoI shareholding from infusion by 70.62% to 78.52%. GoI 27,69,88,576 fresh equity shares
Slide 33: Amalgamation of Syndicate Bank into Canara Bank
Amalgamation of Syndicate Bank into Canara Bank Alternative Mechanism (AM) set up by Govt. Of India has conveyed its decision on 30th Aug. 2019 to amalgamate Syndicate Bank into Canara Bank Board of Directors of the Bank in its meeting dated 13th Sept’ 2019 Considered the decision of the AM regard
Slide 34: Focus Areas - FY 2019-20
Focus Areas - FY 2019-20 Augmenting core operating profits from operations Accelerated NPA resolution Improving the Provision Coverage Ratio Balanced growth in advances with proper mix of Retail & Corporate Credit Thrust on Retail Business, Asset Quality & Efficiency Goals Improving the CASA & Ret
Slide 35: Thank You
wore! Canara Bank Thank You Tube, 0 425 00