Canara Bank · NSE:CANBK
Canara Bank — Q4 FY2021-22 Earnings Presentation
48 slides from Canara Bank's earnings presentation, May 6, 2022
Slide 1: Exchange filing cover letter
.... ·• ...... . .. ' . �...... <):><> I t�I <l-<I-> < ;c111c.1 re� llcl 11 k � ... ........ -.- �. .. . ,_,... . . ..., - J � Ref:: SD:61/62/11/12::2022-23 06.05.2022 The Vice President The Vice President BSE Ltd. Listing Department Phiroze Jeejeebhoy Towers National Stock Exchange of India Ltd Dal
Slide 2: Financial Results: Q4 (FY 2021-22)
High-tech Banking Multi - dimensional excellence Financial Results: Q4(FY 2021-22) Page 1
Slide 3: Performance Highlights
Performance Highlights Net Interest Operating Profit Net Profit Income Gross Advances RAM Credit 9.77% 10.94% 18.80% 64.90% 24.84% y-o-y y-o-y y-o-y y-o-y y-o-y growth growth 6,202 Cr 1,666 Cr 7,005 Cr 7,41,147 4,21,258 CASA Net NPA Gross NPA PCR CRAR 11.52% 2.65% 7.51% 84.17% 14.90% y-o-y y-o-y dec
Slide 4: Key Highlights
Key Highlights ₹ in Crore 10.26% 14.77% y-o-y y-o-y CET 1 Housing 165 bps Loan 73,828 9.51% Global Dividend y-o-y Business @ growth 18,27,556 65% of paid Retail Credit up capital 1,26,277 16.59% 12.22% y-o-y y-o-y Fee Based Savings Bank Income 3,15,916 6,113 Page 3
Slide 5: Year of Continuous & Consistent Growth
Year of Continuous & Consistent Growth Capital Asset Quality Y-o-Y Y-o-Y FY 21 FY 22 (bps) FY 21 FY 22 (bps) CRAR(%) 13.18 14.90 172 GNPA 8.93 7.51 (142) CET(%) 8.61 10.26 165 NNPA 3.82 2.65 (117) AT I(%) 1.47 1.65 18 PCR 79.68 84.17 449 Growth RWA(%) 78.50 72.63 (587) Credit Cost 2.09 1.53 (56) FY
Slide 6: Contents
Contents Business Performance 7-16 Financial Performance 18-24 Investment 26-27 Asset Quality 29-35 Capital & Share Holding 37-38 Environmental, Social & Governance 40-40 Distribution Network 42-43 Subsidiaries, Associates & Joint Ventures 44-44 Goals vs Actual for Mar 2022 & Mar 2023 45-45 Page 5
Slide 7: Business Performance
Business Performance Page 6
Slide 8: Business Performance
Business Performance ₹ in Crore Growth (%) Parameters Mar’21 Jun’21 Sep’21 Dec’21 Mar’22 Q-o-Q Y-o-Y Global Gross Business 1686030 1706422 1719349 1772856 1827556 3.09 8.39 Domestic Gross Business 1615864 1631717 1643328 1690518 1738813 2.86 7.61 Overseas Gross Business 70166 74705 76021 82338 88743
Slide 9: Domestic Deposit Mix
Domestic Deposit Mix ₹ in Crore Growth (%) Parameters Mar’21 Jun’21 Sep’21 Dec’21 Mar’22 Q-o-Q Y-o-Y Saving Deposits 281525 289933 290469 292506 315916 8.00 12.22 Current Deposits 49131 42107 43994 49529 52816 6.64 7.50 CASA Deposits 330656 332040 334463 342035 368732 7.81 11.52 Term Deposits 632649
Slide 10: Domestic Deposit & Retail Credit Mix
Domestic Deposit & Retail Credit Mix ₹ in Crore Parameters Mar’21 Dec’21 Mar’22 CASA 330656 342035 368732 CASA increased by 11.52% y-o-y, improving the CASA CASA(%) 34.33 34.60 35.88 Ratio by 155 bps Housing Loan 64326 70735 73828 Housing Loan increased by 14.77% y-o-y Retail Loans 115312 123098
Slide 11: Advances Mix
Advances Mix RAM: 57% Mar’22 ₹ in Crore Retail Loans Growth (%) 17% Corporate & others Parameters Mar’21 Dec’21 Mar’22 43% Agriculture & Allied Q-o-Q Y-o-Y 24% MSME RAM Credit 379704 406937 421258 3.52 10.94 16% Retail 115312 123098 126277 2.58 9.51 RAM: 56% Agriculture & Allied 156058 168659 175955
Slide 12: Exceeded the Mandated Targets under Priority Sector
Exceeded the Mandated Targets under Priority Sector Achieved the mandated norms in respect of: Total Priority (49.68 % to ANBC against 40% norm, 56.33% prior to PSLC) Mandated Agriculture (22.47% to ANBC against 18% norm, 29.11% prior to PSLC) Norms under Priority Sector Small and Marginal Far
Slide 13: Retail Credit
Retail Credit ₹ in Crore Retail Loans Housing Loans 126277 73828 9.51% 14.77% 115312 64326 Mar'21 Mar'22 Mar'21 Mar'22 Page 12
Slide 14: Industry Credit
Industry Credit ₹ in Crore Growth (%) Sector/Scheme Mar’21 Dec’21 Mar’22 Q-o-Q Y-o-Y Infrastructure 72013 93316 94677 1.46 31.47 NBFCs 85108 105464 106698 1.17 25.37 Textile 17453 17415 18991 9.05 8.81 Iron & Steel 19857 14154 13850 (2.15) (30.25) Commercial Real Estate 14308 18041 16516 (8.45) 15.4
Slide 15: COVID-19 Credit Support
COVID – 19 Credit Support Guaranteed Emergency Credit Line No. of Loans – 585457 Total Amount disbursed – Rs 17971 Cr PM SVANidhi No. of Loans – 208339 Total Amount disbursed – Rs 222 Cr Health Care Sector No. of Loans Sanctioned – 79268 Total Amount Sanctioned – Rs 3342 Cr No of Loans Disbursed - 7
Slide 16: Rating Profile
Rating Profile External Rating - Wise Distribution of Domestic Advances above Rs. 25 crore A & above BBB BB & below (% of Total rated loan book above Rs 25 crore) Mar’21 Dec’21 Mar’22 13% External Outstanding % Share Outstanding % Share Outstanding % Share Rating 10% A and 128300 65 174693 75 175380
Slide 17: Rating Profile of Standard NBFC Domestic Exposure
Rating Profile ₹ in Crore Rating Profile of Standard NBFC Domestic Exposure March 2021 December 2021 March 2022 External Rating Exposure % Share Exposure % Share Exposure % Share A and above 75705 92 103583 98 104997 98 BBB 2185 3 1615 1 678 1 BB and below 4253 5 525 1 185 1 Total 82143 100 105723 1
Slide 18: Financial Performance
Financial Performance Page 17
Slide 19: Total Income
Total Income ₹ in Crore Quarterly Cumulative Parameters Growth Growth Mar’21 Jun’21 Sep’21 Dec’21 Mar’22 Mar’21 Mar’22 Growth(%) Q-o-Q(%) Y-o-Y(%) Interest Income 16338 16785 17063 17701 17861 0.90 9.32 69280 69410 0.19 Interest on Advances 11747 12026 12164 12915 12757 (1.22) 8.60 50405 49862 (1.08
Slide 20: Non-Interest Income
Non-Interest Income ₹ in Crore Quarterly Cumulative Parameters Growth Growth Mar’21 Jun’21 Sep’21 Dec’21 Mar’22 Mar’21 Mar’22 Growth(%) Q-o-Q(%) Y-o-Y(%) Fee Based Income (i+ii+iii) 1770 1337 1463 1421 1892 33.15 6.89 5243 6113 16.59 Commission Exchange & Brokerage(i) 322 263 263 311 393 26.37 22.05
Slide 21: Total Expense
Total Expense ₹ in Crore Quarterly Cumulative Parameters Growth Growth Mar’21 Jun’21 Sep’21 Dec’21 Mar’22 Mar’21 Mar’22 Growth(%) Q-o-Q(%) Y-o-Y(%) Interest Expenses 10727 10625 10790 10755 10856 0.94 1.20 45177 43026 (4.76) Interest Paid on Deposits 9973 9882 9984 9840 10037 2.00 0.64 42097 39743 (
Slide 22: Financials at a Glance
Financials at a Glance ₹ in Crore Quarterly Cumulative Parameters Mar’21 Jun’21 Sep’21 Dec’21 Mar’22 Growth Growth Mar’21 Mar’22 Growth(%) Q-o-Q(%) Y-o-Y(%) Net Interest Income 5611 6160 6273 6946 7005 0.85 24.84 24103 26384 9.46 Total Interest Income 16338 16785 17063 17701 17861 0.90 9.32 69280 69
Slide 23: Provisions
Provisions ₹ in Crore Quarterly Cumulative Parameters Growth Growth Mar’21 Jun’21 Sep’21 Dec’21 Mar’22 Mar’21 Mar’22 Growth(%) Q-o-Q(%) Y-o-Y (%) Total Provision 4210 4304 4271 2946 4536 54 8 17131 16057 (6) NPAs 4428 2335 2678 2705 2130 (21) (52) 14168 9848 (30) Standard Asset (989) 0 (12) 2 (223)
Slide 24: Key Ratios
Key Ratios (%) Mar’21 Sep’21 Dec’21 Mar’22 Ratios Quarterly Cumulative Quarterly Cumulative Quarterly Cumulative Quarterly Cumulative Return on Assets 0.36 0.23 0.46 0.43 0.52 0.45 0.57 0.48 Return on Net-worth 10.76 6.71 12.22 11.57 13.52 12.08 15.25 12.82 Cost to Income 49.39 49.55 46.84 46.85 45.
Slide 25: Key Ratios – 12M FY22
Key Ratios – 12 M FY22 Cost Of Deposits (%) Cost Of Funds (%) Yield on 4.52 4.09 Advances(%) 7.73 3.67 3.98 3.95 3.95 3.60 3.60 7.23 7.22 7.12 Mar'21 Sep'21 Dec'21 Mar'22 Mar'21 Sep'21 Dec'21 Mar'22 Mar'21 Sep'21 Dec'21 Mar'22 Yield on Funds(%) Yield on NIM(%) 6.26 Investments(%) 2.82 6.74 2.79 2.76
Slide 26: Investments
Investments Page 25
Slide 27: Investment Portfolio
Investment Portfolio ₹ in Crore Sl. Parameters Mar’21 Dec’21 Mar’22 (1) Domestic Investments 263136 277977 283916 (a) SLR 219854 233729 243115 (b) Non SLR 43282 44248 40801 SLR as % to Dom. Investments 83.55 84.08 85.63 (i) Held To Maturity (HTM) 206988 225888 238549 (ii) Available For Sale (AFS) 55
Slide 28: Non SLR Portfolio
Non SLR Portfolio ₹ in Crore % Share Y-o-Y Variation Parameters Mar’21 Dec’21 Mar’22 (Mar’22) Amount % PSU Bonds 4603 4666 4060 9.95 (543) (11.80) Corporate and Other Bonds 8445 10019 7848 19.23 (597) (7.07) Special Govt. Sec excl. Recap Bonds 2719 2571 2412 5.91 (307) (11.29) CG Recap. Bond 18238 1
Slide 29: Asset Quality
Asset Quality Page 28
Slide 30: Asset Quality Ratios
Asset Quality Ratios ₹ in Crore Parameters Mar’21 Dec’21 Mar’22 Gross NPA 60288 56893 55652 Gross NPA (%) 8.93 7.80 7.51 Net NPA 24442 19819 18668 Net NPA (%) 3.82 2.86 2.65 Provision Coverage Ratio (%) 79.68 83.26 84.17 Credit Cost (%) 2.09 1.75 1.53 Slippage Ratio (%) 2.35 0.43 0.38 Page 29
Slide 31: Movement of NPA
Movement of NPA ₹ in Crore Parameters Mar’21 Dec’21 Mar’22 NPA as at the beginning of the period 49789 57853 56893 -Cash Recovery towards Book Liability(i) 2238 1925 2146 -Up-gradation(ii) 356 1108 842 -Write Off(iii) 2194 1348 2989 Total Reduction(i+ii+iii) 4788 4381 5977 Fresh Addition 15287 3421
Slide 32: NPA Classification: Sector Wise
NPA Classification: Sector Wise ₹ in Crore GNPA (%) GNPA (%) Parameters Mar’21 Dec’21 Advance O/s Mar’22 (Mar’22) Mar’21 Mar’22 Domestic Gross NPA 54635 52017 50794 711046 8.37 7.14 Global Gross NPA 60288 56893 55652 741147 8.93 7.51 Retail 1873 1613 1671 126277 1.62 1.32 Housing Loans 799 636 485 7
Slide 33: NPA Classification: Industry Wise
NPA Classification : Industry wise ₹ in Crore Sector/Scheme Mar’21 Dec’21 Mar’22 GNPA (%) Infrastructure 7888 9452 8979 9.51 Iron & Steel 1169 1016 813 5.87 Textile 1722 1456 1229 6.47 Food Processing 1553 1319 1349 9.87 Engineering 757 830 960 7.96 Page 32
Slide 34: Resolution Framework for COVID-19
Resolution Framework for COVID-19 ₹ in Crore Sector No. of accounts Liability Total amount received Out of (C), total Recovery restructured under RBI (B) subsequent to prepaid amount, Percentage(%) Resolution Framework in restructure (C) i.e, paid before actuals (A) due date RESOLUTION FRAMEWORK COV
Slide 35: Special Mention Accounts (SMA)
Special Mention Accounts (SMA) ₹ in Crore SMA Position of the Bank (Rs. 5 Cr and above) Mar’21 Mar’22 No of Accoun % to Gross No of Accounts % to Gross Parameters Outstanding Outstanding ts Advances Advances SMA 2 126 5023 0.70 152 2300 0.27 SMA 1 261 10359 1.47 252 3737 0.43 TOTAL SMA 1 & 2 387 153
Slide 36: Accounts referred to NCLT
Accounts referred to NCLT ₹ in Crore As on 31.03.2021 As on 31.03.2022 Parameters No of Provision No of Book Provision Book Liability Provision Coverage(%) Provision Coverage(%) Accounts Accounts Liability 1st List - RBI 7 3051 3051 100% 6 2345 2345 100% 2nd List – RBI 14 5569 5529 99% 13 5523 5482
Slide 37: Capital & Shareholding
Capital & Shareholding Page 36
Slide 38: Capital Funds (Basel III)
Capital Funds (Basel III) ₹ in Crore CRAR % Parameters Mar’22 Dec’21 Mar’21 14.80 14.90 Tier I 64133 62525 53437 Common Equity 55247 54639 45624 13.18 3.22 2.99 Additional Tier I 8886 7886 7813 3.10 Tier II 16083 17346 16407 1.46 1.65 Total (Tier I+II) 80216 79871 69844 1.47 Risk-weighted Assets 538
Slide 39: Shareholding Pattern & Capital Raised
Shareholding Pattern as on March 31st,2022 & Capital Raised Staff, 0.90 Others, 5.71 Resident Individuals, 9.72 FIIs/FPIs, 8.48 Mutual Funds, 3.22 Government of India, Insurance 62.93 Companies, 9.04 Capital Raised during the Quarter and FY Raised Particulars Board Approved Q4 FY EQUITY(QIP) 2500 --
Slide 40: Environmental, Social & Governance
Environmental, Social & Governance Page 39
Slide 41: Environmental, Social & Governance (ESG) Practices
Environmental, Social & Governance ( ESG) Practices Environmental Social Governance Credit flow to the companies Bank has set up Trusts and Institutions engaged in Environment Friendly - Canara Centenary Rural The Bank has in place a fair, Sectors to the tune of Rs 30400 Cr Development Trust,
Slide 42: Distribution Network
Distribution Network Page 41
Slide 43: Distribution Network
Distribution Network Parameters Mar’21 Dec’21 Mar’22 General Branches(a) 9798 9007 8957 Specialised Branches(b) 618 766 777 Total Domestic Branches(a+b) 10416 9773 9734 Overseas Branches 4 4 3 BC Points 9129 8906 8906 Total Banking Outlets 19549 18686 18643 ATM 12272 10832 10817 Recycler 1180 1389 1
Slide 44: Digital Footprint
Digital Footprint 245.16 156.82 4.64 920 625 4.08 FY 2020-21 FY 2021-22 FY 2020-21 FY 2021-22 MeitY Digital Transactions( Nos in Crore) Debit Card Outstanding (Nos in Crores) E-Transactions( Nos in Crore) 12.64 121.05 1.56 2.12 1.61 81.25 1.09 7.01 FY 2020-21 FY 2021-22 FY 2020-21 FY 2021-22 FY 2020
Slide 45: Subsidiaries, Associates & Joint Ventures
Subsidiaries, Associates & Joint Ventures ₹ in Crore Profit after Tax(Our Share) Name of the Entity Holding(%) Mar’21 (Yly) Mar’22 (Yly) SUBSIDIARIES Canara Robeco Asset Management Company Ltd. 51 18.51 30.36 Canara Bank Securities Ltd. 100 14.91 18.03 Canara Bank (Tanzania) Ltd. 100 5.60 8.28 Canba
Slide 46: Goals vs Actual for Mar 2022 & Mar 2023
Goals vs Actual for Mar 2022 & Mar 2023 ₹ in Crore Guidance Guidance Parameters Actuals as on 31.03.2022 (31.03.2022) (31.03.2023) Business Growth (Global) 7.90% 8.39% 8.30% Advances Growth (Global) 7.50% 9.77% 8.00% Deposits Growth (Global) 8.20% 7.47% 8.50% CASA (Domestic CASA to Domestic Deposit)
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. Page 47