Canara Bank · NSE:CANBK
Canara Bank — Q1 FY14 Earnings Presentation
51 slides from Canara Bank's earnings presentation, June 2013
Slide 1: Performance Highlights June 2013
PERFORMANCE HIGHLIGHTS JUNE 2013 www.canarabank.com Page 1
Slide 2: Highlights – Q1 FY14
HIGHLIGHTS – Q1 FY14 Global Business- ` 631863 crore, up by 13% y.o.y Global Deposits - ` 381972 crore, up by 14% y.o.y Advances (Net) - ` 249891 crore, up by 11% y.o.y Capital Adequacy Ratio -11.35% (9% norm). Tier I Ratio Major Highlights -9.03% (6.5% norm) under new Basel III. CASA Ratio at 24.2%
Slide 3: Highlights – Q1 FY14
HIGHLIGHTS – Q1 FY14 Operating Profit - ` 1898 Crore, up by 36.20% y.o.y Net Profit - ` 792 Crore, sequentially up by 9.2% & y.o.y up by 2.2% Net Interest Margin (NIM) – 2.21% Major Return on Assets (RoA) – 0.75% Highlights Cost – Income Ratio – 41.22% Gross NPA Ratio - 2.91% Net NPA Ratio - 2.48% R
Slide 4: Performance Highlights - Business
PERFORMANCE HIGHLIGHTS- BUSINESS Amt. in ` Crore y.o.y SEQ Parameters JUN’12 SEP’12 DEC’12 MAR’13 JUNE’13 Growth (%) (%) Deposits 334619 336762 323963 355856 381972 7.3 14.2 Of which High 119348 93156 75184 53322 36254 Cost Deposits -32.0 69.6 (35.7) (27.7) (23.2) (15.0) (9.5%) (% to Total Dep) Adva
Slide 5: Performance Highlights - Overseas Business
PERFORMANCE HIGHLIGHTS- OVERSEAS BUSINESS y.o.y JUN’12 MAR’ 13 JUN’ 13 Growth(%) Parameters USD Mn ` Crs USD Mn ` Crs USD Mn ` Crs Deposits 1984.07 11783.39 2528.78 15018.42 2861.78 16996.11 44.24 Advances 2360.54 14019.25 2803.14 16647.85 3130.17 18590.08 32.60 Gross Income 30.56 181.50 113.59 674.
Slide 6: Performance Highlights - Profitability Q1 FY14
PERFORMANCE HIGHLIGHTS- PROFITABILITY-Q1 FY14 Amt. in ` Crore SEQ y.o.y Parameters Q1 FY13 Q4 FY13 Q1 FY14 (%) Growth(%) Total Income 9165 9472 10508 10.94 14.65 Total Expenses 7772 7774 8610 10.75 10.78 Operating Profit 1394 1698 1898 11.81 36.20 Net Profit 775 725 792 9.20 2.17 NIM (%) 2.26 2.40 2
Slide 7: Performance Highlights - Productivity Ratios
PERFORMANCE HIGHLIGHTS- PRODUCTIVITY RATIOS Parameters Jun’12 Mar’13 Jun’13 Business Per Employee (` Crore) 14.00 14.20 13.89 Business Per Branch (` Crore) 155 160 168 Gross Profit Per Employee (` Lakh) 14.17 14.28 17.08 Net Profit per Employee (` Lakh) 7.88 6.96 7.13 www.canarabank.com Page 7
Slide 8: Performance Highlights - Expanding the Reach
PERFORMANCE HIGHLIGHTS- EXPANDING THE REACH Jun’12 Mar’13 Jun’13 Y-o-Y incr Branch Network 3609 3728 3770 161 ATM Strength 3107 3526 3754 647 Debit Card (In Lakh) 73.77 95.53 106.84 33.07 3765 domestic Branches Rural 1075 29% Semi-Urban 1071 28% 5 overseas branches at London, Leicester, Urban 799 21
Slide 9: Business Segments
BUSINESS SEGMENTS www.canarabank.com Page 9
Slide 10: Segment Wise Deposits
SEGMENT WISE DEPOSITS Amt. in ` Crore y.o.y SEQ Parameters JUN’12 SEP’12 DEC’12 MAR’13 JUN’13 Growth (%) (%) Total Deposits 334619 336762 323963 355856 381972 7.3 14.2 Current 11398 13062 12473 14893 14374 -- 26.1 Saving 66504 70494 68689 71168 73938 3.9 11.2 CASA 77902 83556 81161 86061 88312 2.6 1
Slide 11: High Cost Deposits
HIGH COST DEPOSITS CERTIFICATE OF DEPOSIT BULK DEPOSITS 119348 93156 75184 53322 34295 33597 36254 19988 18502 14999 JUN'12 SEPT'12 DEC'12 MAR'13 JUN'13 % share in 46% 38% 29% 20% 13% total Deposit www.canarabank.com Page 11
Slide 12: Loans & Advances Segment
LOANS & ADVANCES SEGMENT Amt. in ` Crore y.o.y SEQ( Parameters JUN’12 SEP’12 DEC’12 MAR’13 JUN’13 Growth %) (%) Advances (Net) 225584 215751 218242 242177 249891 3.2 10.8 Total Priority 65249 68157 69700 78998 83085 5.2 27.3 Agriculture 31367 33267 35365 40786 43292 6.1 38.0 - Direct 5.8 41.4 Agricu
Slide 13: Achievement Under Mandated Targets – Priority Sector
ACHIEVEMENT UNDER MANDATED TARGETS – PRIORITY SECTOR Achieved the mandated targets in respect of Agriculture (18.83% against 18% norm) Direct agriculture (17.48% against 13.5% norm) Mandated Credit to specified minority communities Targets under (18.40% against 15% norm) Priority Weaker Section (12.
Slide 14: Performance of Retail Advances
Performance of Retail Advances Amt. in ` Crore y.o.y Type of JUN’12 SEP’12 DEC’12 MAR’13 JUN’13 SEQ(%) Growth Advance (%) Housing loan 13747 12957 11701 13134 14406 9.7 4.8 Vehicle loan 1626 1663 1769 1913 2092 9.4 28.7 Other Pers Loan 3396 3300 3482 3694 4317 16.9 27.1 Education loan 4079 4284 4307
Slide 15: Exposure - Infrastructure
EXPOSURE - INFRASTRUCTURE Amt. in ` Crore % Share y.o.y SEQ(% Parameters JUN’12 MAR’13 JUN’13 Total Growth ) Advances (%) Roads 6142 5726 5923 2.3 3.4 -3.6 Ports 1354 619 613 0.2 -1.0 -54.7 Airports 1485 1507 1474 0.6 -2.2 -0.7 Power (Generation, Transmission & 23543 30203 32513 12.8 7.6 38.1 Distri
Slide 16: Exposure - Power Sector & Aviation
EXPOSURE - POWER SECTOR & AVIATION Amt. in ` Crore % Share y.o.y Parameters JUN’12 MAR’13 JUN’13 Total SEQ(%) Growth Advances (%) -Power Generation 3866 5017 14114 5.6 181.3 265.1 -Power Transmission 1610 9193 2072 0.8 -77.5 28.7 -Power Distribution 18067 15993 16327 6.4 2.1 -9.6 Total Power 23543 3
Slide 17: Exposure to Sensitive Sectors
EXPOSURE TO SENSITIVE SECTORS Amt. in ` Crore EXPOSURE TO CAPITAL MARKET y.o.y SEQ(% Parameters Jun’12 Sep’12 Dec’12 MAR’13 JUN’13 Growth ) (%) Outstanding 1338 2673 2592 2330 2355 1.07 76.0 EXPOSURE TO NBFCs HFCs 5708 7104 4727 6925 5701 -17.69 -0.12 Private 7925 7215 7725 11102 9191 -24.11 15.97 P
Slide 18: Financials
FINANCIALS www.canarabank.com Page 18
Slide 19: Profitability
PROFITABILITY Amt. in ` Crore y.o.y Parameters Q1 FY13 Q4 FY13 Q1 FY14 SEQ (%) Growth (%) Total Income 9165 9472 10508 10.94 14.65 Total Expenses 7772 7774 8610 10.75 10.78 Operating Profit 1394 1698 1898 11.81 36.20 Net Profit 775 725 792 9.20 2.17 NIM (%) 2.26 2.40 2.21 -- -- Net Int. Income 1844
Slide 20: Profit
PROFIT Amt. in ` Crore y.o.y Growth Parameters Q1 FY13 Q4 FY13 Q1 FY14 SEQ (%) (%) Interest Income 8473 8465 9270 9.50 9.40 Interest Expenses 6629 6374 7278 14.18 9.79 Non Interest Income 693 1007 1238 23.03 78.79 Operating Expenses 1142 1399 1331 -4.88 16.52 Operating Profit 1394 1698 1898 11.81 36
Slide 21: Break-up: Income
BREAK-UP : INCOME Amt. in ` Crore y.o.y Growth Parameters Q1 FY13 Q4 FY13 Q1 FY14 SEQ (%) (%) Interest on Advances 6229 6073 6450 6.21 3.54 Interest on Investments 2040 2307 2482 7.57 21.64 Other Interest Income 204 85 338 297.04 65.79 Total Interest Income 8473 8465 9270 9.50 9.40 www.canarabank.co
Slide 22: Break-up: Non-Interest Income
BREAK-UP: NON-INTEREST INCOME Amt. in ` Crore Parameters y.o.y Q1 Q4 Q1 SEQ (%) Growth FY13 FY13 FY14 (%) Non Int. Income 693 1007 1238 22.9 78.6 Of which Com & Exchange 195 232 200 -13.8 2.6 -Govt. Business 18 16 16 0.0 -11.1 -Bancassurance 10 15 11 -26.7 10.0 Profit from Exch. Transactions 130 135
Slide 23: Provisions
PROVISIONS Amt. in ` Crore Provisions for Q1 FY13 Q4 FY13 Q1 FY14 NPAs 477 346 417 Restructured Assets 80 156 193 Standard Assets 65 91 90 Provisions on Investments -205 84 88 Tax 200 220 190 Others 2 76 128 Total Provision &Contingency 619 972 1106 www.canarabank.com Page 23
Slide 24: Earnings Profile
EARNINGS PROFILE In % Parameters Q1FY13 Q4FY13 Q1FY14 NIM 2.26 2.40 2.21 ROAA 0.77 0.83 0.75 EPS (`) (not Annualized) 16.37 17.5 17.88 Book Value (`) 490.56 452.75 509.48 ROE (Annualized) 14.03 15.84 14.21 Cost-Income Ratio 45.18 45.0 41.22 www.canarabank.com Page 24
Slide 25: Trend in Cost and Yield (%)
TREND IN COST AND YIELD (%) In % Jun’12 Sep’12 Dec’12 Mar’13 Jun’13 Cost of Deposits 7.89 7.83 7.81 7.72 7.54 Cost of Funds 7.12 7.13 7.03 6.96 6.91 Yield on Advances 11.12 11.20 11.12 11.13 10.74 Yield on Funds 9.10 9.17 9.09 9.08 8.80 Yield on Investments 8.10 8.13 8.13 8.13 8.00 www.canarabank.co
Slide 26: Investment Classification
Investment classification Amt. in ` Crore % Share in % Share in Total Parameters JUN’12 Total MAR’13 JUN’13 Portfolio Portfolio SLR 93992 84.29 102003 114164 84.13 Non SLR 17518 15.70 18700 21522 15.86 Total (Domestic) 111510 100 120703 135686 100 Held For Trading 592 0.5 741 484 0.36 Available For
Slide 27: Asset Quality
ASSET QUALITY www.canarabank.com Page 27
Slide 28: Asset Quality
ASSET QUALITY Amt. in ` Crore June’12 Sep’12 Dec’12 Mar’13 June’13 Gross NPA 4497 5610 6090 6260 7329 Gross NPA Ratio (%) 1.98 2.58 2.77 2.57 2.91 Net NPA 3756 4569 5134 5278 6209 Net NPA Ratio (%) 1.66 2.12 2.35 2.18 2.48 Cash Recovery (cumulative) 594 1479 2477 4006 888 Cash Recovery of ` 888 cror
Slide 29: Gross NPA Movement - Quarterly
GROSS NPA MOVEMENT- Quarterly Amt. in ` Crore Parameters Jun’12 Sep’12 Dec’12 MAR’13 JUN’13 Gross NPAs: Opening Balance 4032 4497 5610 6090 6260 Additions: Fresh Slippages 1497 1922 1314 1086 2688 Sub Total 5529 6418 6924 7176 8948 Less: Reduction (a+b+c+d) 1033 809 834 916 1620 a. Recovery for Move
Slide 30: NPA Composition
NPA COMPOSITION Amt. in ` Crore Parameters Jun’12 Sep’12 Dec’12 MAR’13 JUN’13 Gross Advances 226876 217420 219820 243936 251970 Sub-Standard 3038 3553 4189 4279 5178 Doubtful 1407 2009 1850 1932 2125 Loss 52 48 51 50 26 Provisions for NPA 477 444 594 933 417 Provision Coverage Ratio (%) 66.53 63.02
Slide 31: Sector-wise NPA Slippages
SECTOR-WISE NPA SLIPPAGES Amt. in ` Crore Q1 Q2 Q3 Q4 Q1 % of SECTOR FY 13 FY13 FY13 FY13 FY13 FY14 Slippage Micro & Small Ent. 432 284 405 89 1210 278 10.33 Agriculture 359 227 (33) 45 598 265 9.87 Other Priority Sector 272 171 (52) 49 440 184 6.83 Total Priority 1063 682 320 183 2248 727 27.03 Sec
Slide 32: Sector-wise NPA Outstanding
SECTOR- WISE NPA OUTSTANDING Amt. in ` Crore SECTOR Jun’12 Sep’12 Dec’12 Mar’13 Jun’13 Micro & Small Enterprises 1105 1276 1592 1532 1440 Agriculture 935 883 976 885 1000 Other Priority Segments 432 433 503 371 460 Medium Enterprises 248 203 340 345 324 Large Industries 1090 1462 1611 1521 2141 Non-
Slide 33: Sectoral Contribution of NPA
SECTORAL CONTRIBUTION OF NPA Amt. in ` Crore Particulars Jun’12 Sep’12 Dec’12 Mar’13 Jun’13 Gross Advances 226876 217420 219820 243936 251970 Gross NPA 4497 5610 6090 6260 7329 Gross NPA % 1.98% 2.58% 2.77% 2.57 2.91 Priority Sector Advances 65249 68157 69700 78998 83085 PS as % to Gross Advances 28
Slide 34: Restructured Assets
RESTRUCTURED ASSETS Amt. in ` Crore Total Of Which NPAs Standard Restructured Restructured Standard A/C Amt A/C Amt A/C Amt A/C Restructured in FY09 13621 1302 7940 1036 5681 266 A/C Restructured in FY10 1815 1312 1127 827 688 485 A/C Restructured in FY11 120 416 66 364 54 52 A/C Restructured in FY1
Slide 35: Restructured Assets
RESTRUCTURED ASSETS Amt. in ` Crore 1 Cr. & Above SR. DETAILS OF RESTRUCTURED No. of Amount NO ACCOUNTS A/Cs No. of Amount Accounts Total Restructured Assets as on 1 30.06.2013 22960 19884 655 17826 Out of Which increase in Q1 2 FY14 130 1683 14 1669 % of Restructured Advances/Portfolio to Total Loa
Slide 36: Restructured Assets Under CDR
RESTRUCTURED ASSETS UNDER CDR Amt. in ` Crore POSITION AS ON A/C Amount JUNE-2012 59 6130 MARCH-2013 78 7237 JUNE-2013 84 12314 www.canarabank.com Page 36
Slide 37: Sector – Wise Restructured Accounts
SECTOR – WISE RESTRUCTURED ACCOUNTS Amt. in ` Crore SECTOR No. of Accounts Amount Power 43 7832.66 Roads 18 639.0 Ports 2 87.31 Mining 25 21.64 Aviation 3 1044.08 Telecommunication 16 323.98 Infrastructure others 128 455.43 Other services 1224 244.53 Iron & steel 136 2126.81 Other industries 4728 13
Slide 38: Sector – Wise Restructured Accounts
SECTOR – WISE RESTRUCTURED ACCOUNTS Amt. in ` Crore SECTOR No. of Accounts Amount Engineering 344 624.11 Comm. Real Estate 49 703.17 Pharmaceuticals 21 113.82 Cement 99 66.87 Hardware 80 54.45 Shipping 12 42.18 Edible Oil 6 5.01 Agriculture 7915 377.06 Education 1215 28.78 Housing 4259 213.75 Chemic
Slide 39: Amount Restructured During Q1 FY14
AMOUNT RESTRUCTURED DURING Q1 FY14 Amt. in ` Crore No. of Accounts Amount Agriculture 19 3 MSME 23 4 Housing 13 1 Large Advances 34 1561 Others 41 114 Total 130 1683 www.canarabank.com Page 39
Slide 40: Sector Wise Restructured Advances Outstanding as at June 2013
SECTOR WISE RESTRUCTURED ADVANCES OUTSTANDING AS AT JUNE 2013 Amt. in ` Crore No. of Accounts Amount Agriculture 7915 373 MSME 8379 506 Housing 4259 214 Large Advances 529 10854 Others 1878 7937 Total 22960 19884 www.canarabank.com Page 40
Slide 41: Capital Adequacy – New Basel III Norms
CAPITAL ADEQUACY – NEW BASEL III NORMS CRAR of 11.35% at June 2013 Vs. 9% norm Tier I ratio at 9.03% Vs . 6.5% norm Capital Adequacy Tier II ratio at 2.32% Ratio Govt. holding at 67.7% Paid-up Capital at `443 crore Comfortable CRAR, Sufficient headroom for raising further capital www.canarabank.com
Slide 42: Capital Adequacy – Basel III
CAPITAL ADEQUACY – BASEL III BASEL II BASEL III Particulars Jun'12 Mar'13 Jun’13 Risk-weighted Assets 216532 243348 260699 Tier I Capital 21791 23779 23548 CET: 8.52% Tier I Ratio% 10.06% 9.77% AT I: 0.51% Tier I: 9.03% Tier II Capital 6839 6385 6035 Tier II Ratio% 3.16% 2.63% 2.32 Total Capital 286
Slide 43: Shareholding Pattern
SHAREHOLDING PATTERN As on JUNE 30, 2013 Govt. 67.7 6.9 4.5 1.0 7.2 FIIs 12.7 12.7 Insurance 7.2 Companies 67.7 Residents 4.5 Govt of India FIIs Individuals Banks 1.0 Insurance Companies Resident Individuals Banks Others Others 6.9 www.canarabank.com Page 43
Slide 44: Financial Inclusion
FINANCIAL INCLUSION Covered all the 1624 allotted villages in 24 States (>2000 population category), under Brick and Mortar Branch Model (264 villages) and Business Correspondent Model (1360 villages). Covered 1268 villages (<2000 population category) out of the 8425 villages allotted under Brick
Slide 45: Financial Inclusion
FINANCIAL INCLUSION 64 Brick and mortar branches opened during FY13 have garnered a business of ` 233.43 crore as against ` 147 crore as on 31.03.2013. With focus on activation of customer service providers at villages, 1.67 lakh transactions amounting to ` 38.83 crore was done through 3.62 lakh s
Slide 46: Financial Inclusion
FINANCIAL INCLUSION Credit linked 4256 SHGs by disbursing ` 100 crore during the quarter. Exposure under SHG is ` 1348 crore under 85630 SHG accounts. Issued 41816 GCCs amounting to ` 92.68 crore during the quarter. Holistic Exposure under GCC is ` 645 crore under 3.06 lakh accounts. Approac Disb
Slide 47: Expanded Clientele Base
EXPANDED CLIENTELE BASE (In Lakhs) Y-o-Y Jun’12 Mar’13 Jun’13 Increase 5 Crore Clientele Base 430 470 499 69 Strong Clientele Base No. of Deposit A/Cs 384 417 435 51 No. of Borrowal A/Cs 46 53 64 18 70 lakhs Clientele added Y-o-Y www.canarabank.com Page 47
Slide 48: Awards
AWARDS “Best Bank of the Year Award”, instituted by The Bangalore Management Association (BMA). “Best Financial Institution”, Category-Gold in the Export Excellence Awards 2013 by the Federation of Karnataka Chamber of Commerce, Bangalore. Awarded Institute of Directors’ Fellowship on the eve
Slide 49: Goals for FY14
GOALS FOR FY14 The Bank aims to reach an aggregate business figure of more than `7 lakh crore, with deposit growth of 15-17% and advances growth of 16-18%. Plans to take the number of branches from 3770 to 5000 PLAN and number of ATMs from 3754 to 10,000 by Mar’2015. S Plans to open branches at 14 o
Slide 50: Goals for FY14
GOALS FOR FY14 Thrust on Retail Business- CASA, retail deposits, retail credit, recovery, fee income and asset quality. PLAN Technology and business process reengineering. S Thrust on improving operational financial ratios, such as, NIM, ROA, ROE and Cost-to-Income www.canarabank.com Page 50
Slide 51: Canara Bank
ete! dao AN Canara Bank www.canarabank.com