Page 1 Members of the Media Extends a Hearty Welcome to.

40
Page 1 www.canarabank.com Members of the Media Extends a Hearty Welcome to

Transcript of Page 1 Members of the Media Extends a Hearty Welcome to.

Page 1www.canarabank.com

Members of the Media

Extends a Hearty Welcome to

Page 2www.canarabank.com

Canara .. at a GlanceCanara .. at a Glance

A Premier Nationalised Bank in India Well spread network of 3066 branches

Over 2000 ATMs spread across the country

Over 37 million strong cross-section clientele base

Consistent track record of profit making .. Since

inception

Financial Supermarket - 9 subsidiaries/sponsored

institutions/JVs

Foray into High Growth Areas, viz., Insurance and Asset

Management with Global MajorsPan India Presence

Page 3www.canarabank.com

September 2010

Page 4www.canarabank.com

Major Highlights- Q2 (FY11)Major Highlights- Q2 (FY11)

Total business crossed `4.25 lakh crore, up by 21%

Net Profit at `1008 crore, up by 10.7%

Over `1000 crore Net Profit for Two Consecutive Quarters

Robust Net Interest Income Growth at 52.5%

Further improvement in NIM to 3.16%

Page 5www.canarabank.com

Major Highlights- Q2 (FY11)Major Highlights- Q2 (FY11)

Return on Assets at 1.52%

Capital Adequacy Ratio at 13.88%, Tier I ratio at 8.82%

Gross NPA ratio at 1.49% and Net NPA ratio at 1.06%, both down y.o.y

100% Coverage of Branches under CBS

Page 6www.canarabank.com

TOTAL BUSINESSTOTAL BUSINESS

Total Business added ` 73600 Crore Y.o.Y Growth at 21%

290824

351618

425258

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Sep-08 Sep-09 Sep-10

.̀ Crore

CAGR at 21%

Page 7www.canarabank.com

171510

205162

249187

50,000

75,000

100,000

125,000

150,000

175,000

200,000

225,000

250,000

Sep-08 Sep-09 Sep-10

.̀ Cro

re

TOTAL DEPOSITSTOTAL DEPOSITS

CAGR at 20.5%

Y.o.Y Growth at 22%Over 1.6 million clientele Added

Page 8www.canarabank.com

119314

146456

176071

25,000

50,000

75,000

100,000

125,000

150,000

175,000

Sep-08 Sep-09 Sep-10

`. Cro

re

NET ADVANCESNET ADVANCES

CAGR at 21.5%

Sustained Growth in Advances 20% Y.o.Y Growth

Page 9www.canarabank.com

PROFIT GROWTH- Q2 PROFIT GROWTH- Q2

NET PROFIT

529

9111008

0

100

200

300

400

500

600

700

800

900

1,000

1,100

'Sep 2008 'Sep 2009 'Sep 2010

`. C

rore

CAGR at 38%

Stronger Bottomline

Page 10www.canarabank.com

PROFIT GROWTH- Q1 & Q2 of FY11 PROFIT GROWTH- Q1 & Q2 of FY11

NET PROFIT1013 1008

0

100

200

300

400

500

600

700

800

900

1,000

1,100

'Jun 2010 'Sep 2010

.̀ Cro

re

Over ` 1000 Cr Net Profit in Consecutive Two Quarters

First Time in the History of the Bank

Page 11www.canarabank.com

PROFIT GROWTH : Q2 FY11PROFIT GROWTH : Q2 FY11

Q2 FY11 Q2 FY10

Operating Profit 1416 1329

Provisions 408 419

incl Prov for Taxation 250 200

Net Profit 1008 911

Amt. in ` Crore

Page 12www.canarabank.com

RETURNS: Q2 FY11RETURNS: Q2 FY11

Q2 FY11 Q2 FY10

RoAA (%) 1.52 1.63

EPS (`) (Not Annualized) 24.58 22.21

Book Value 355.25 280.38

Return on Assets above 1.50%

Page 13www.canarabank.com

PROFIT GROWTH : H1 FY11PROFIT GROWTH : H1 FY11Amt. in ` Crore

H1FY11 H1FY10

Operating Profit 2899 2250

Growth 28.8% 52.3%

Provisions 878 784

incl Prov for Taxation 500 350

Net Profit 2021 1466

Growth 37.9%

38% Growth in H1 Net Profit

Page 14www.canarabank.com

RETURNS: H1 FY11RETURNS: H1 FY11

H1FY11 H1FY10

RoAA (%) 1.53 1.32

EPS (`) (Not Annualized) 49.30 35.75

Book Value 355.25 280.38

Improved Shareholder Value

Page 15www.canarabank.com

A Dividend ofA Dividend of ` `300 Cr Paid to Govt. of India300 Cr Paid to Govt. of India

Page 16www.canarabank.com

INCOME INCOME

H1FY11% Growth

Y.o.Y Q2 FY11

% Growth Y.o.Y

Int. Income 10738 15.7 5577 18.4

Int. Loans/Adv 7903 14.0 4110 17.3

Non-Int. Income* 1234 -- 500 --

Amt. in ` Crore

Sustained Income Levels

Page 17www.canarabank.com

EXPENDITURE EXPENDITURE

H1FY11% Growth

Y.o.Y Q2 FY11% Growth

Y.o.Y

Total Exp. 9073 8.2 4661 9.1

Int. Exp. 7007 5.2 3574 5.3

Op. Expense* 2066 20.0 1087 23.9

Staff Expense* 1389 22.9 727 31.7

Amt. in ` Crore

Moderate Growth in Interest Expenses

* Increase in Staff Expenses due to salary revision

Page 18www.canarabank.com

EARNINGS PROFILEEARNINGS PROFILE

H1FY11 H1FY10Q2

FY11Q2

FY10

Net Int. Income 3731 2605 2003 1314

Y-o-Y Growth 43.2% 20.2% 52.5% 14.3%

Net Int. Margin (NIM) (%) 3.16 2.66 -- --

Robust Growth in Net Int. Income (NII)Over ` 2000 Crore NII in any Single

Quarter NIM up by 50 bps

Amt. in ` Crore

Page 19www.canarabank.com

Interest Income continues to drive growth in income …over 2/3rd of earnings from interest on advances/loans

MAJOR COMPONENTS OF INCOME

H1 FY11(Sep’10)H1 FY11(Sep’10) H1 FY 10 (Sep’09)H1 FY 10 (Sep’09)

Investment Income20.9% Int on Adv

65.2%

Others13.9%

Investment Income22.9%

Int on Adv66.0%

Others11.1%

Page 20www.canarabank.com

BREAK-UP OF OTHER INCOMEBREAK-UP OF OTHER INCOME

FY 11 FY 10H1 Q2 H1 Q2

Total Other Income 1234 500 1367 893 Commission & Exchange 338 174 328 156

Profit from Exchange Trans 146 71 110 59

Trading Profit 226 1.58 464 436

Dividend Income 76 40 44 31

Recovery in w/off A/cs 153 65 151 72

Other Misc. Income 295 148 269 140

of the above ..

Fee Income 698 352 667 334

Rs. in Crore

Page 21www.canarabank.com

MEASURES TO AUGMENTMEASURES TO AUGMENT NON INTEREST INCOMENON INTEREST INCOME

Increased thrust on Fee Income

Broadbasing of Fee Income sources

Cross Selling of Insurance

Mutual Fund Products

On-line Trading Services

Other Traditional Services- LCs, Guarantees, DDs and others.

Page 22www.canarabank.com

BREAK-UP OF PROVISIONSBREAK-UP OF PROVISIONS

FY 10 FY 10

H1 Q2 H1 Q2

Total Provision & Contingencies 877.86 407.89 784.60 418.60

Of Which:

Non Performing Advances 337.70 198.95 459.00 243.00

Provision for Investments 10.09 -43.36 -32.40 -32.40

Taxation 500.00 250.00 350.00 200.00

In Rs Crore

Page 23www.canarabank.com

SHARE HOLDING PATTERN

As on Sept. 30, 2010

11.4%

6.9%4.6% 2.7%1.3%

73.2%

Govt of India FIIs Insurance Companies Resident Individuals MFs Others

Page 24www.canarabank.com

BUSINESS PROFILEBUSINESS PROFILE

Sep’10 Sep’09 Y-o-Y Gr

Global Business 425258 351618 20.9%

Total Deposits 249187 205162 21.5%

Net Advances 176071 146456 20.2%

CD Ratio (%) 70.66 71.39 --Robust Business Growth Of over `73600 Cr

Domestic Business Constituted 96%

Amt. in ` Crore

Page 25www.canarabank.com

CORE DEPOSITS GROWTHCORE DEPOSITS GROWTH

Highest Per Branch CASA Deposit among Peers

CASA Ratio (Domestic) at 30.10%

Sep’10 Sep’09Y-o-Y

Gr

Savings Deposits 54339 44309 22.6%

CASA Deposits 72001 58602 22.9%

Term Deposits 177185 146560 20.9%

CASA per branch23.48 20.88 --

Deposits Clientele (Mn) 33.33 31.68 +1.65

Amt. in ` Crore

Page 26www.canarabank.com

CREDIT FOCUSCREDIT FOCUS

Sep’10 Sep’09Y-o-Y

Gr

Priority Sector Credit 60658 53026 14.4%

Agriculture Credit 23882* 22583 5.8%*

MSME Advances 32801 27030 21.4%

Retail Lending 26029 20608 26.3%

Housing 11669 8230 41.8%

Infrastructure Advances 39507 24173 63.4%

Adv Clientele (Mn) 4.13 4.15Well Diversified Credit Portfolio* Lower Growth on account of Reclassification of indirect

agriculture advances

Amt. in ` Crore

Page 27www.canarabank.com

PIONEERING EDUCATION LOANPIONEERING EDUCATION LOAN

Education Loans grew by 22.9% y.o.y

Outstanding Education Loans at `3259 crore

The portfolio covers over 1.77 lakh students

On-line Education Loan application in web portal

Number ONE amongst Nationalized Banks

In Outstanding Education Loans

Page 28www.canarabank.com

‘‘CANARA NAYEE DISHA’ CANARA NAYEE DISHA’ … DRIVING 100% FINANCIAL INCLUSION… DRIVING 100% FINANCIAL INCLUSION

Mobilised over 1.8 lakhs No-frill Accounts during H1 Cumulative No-frill Accounts 23.59 lakhs (`402 Cr)

Achieved Total Financial Inclusion…in all the 26 Lead Districts

Sanctioned over 2.12 lakhs General Credit Cards since inception

500 Customer Service Providers in 500 villages

9 Exclusive Micro-Finance Branches across India to help Urban Poor

Cumulative SHG Tally up at 3.34 Lakhs .. Credit Linked 2.85 Lakhs

Page 29www.canarabank.com

PROFITABILITY RATIOS (%)PROFITABILITY RATIOS (%)

Sep’10 Sep’09

Cost of Deposits 5.69 6.47

Yield on Advances 9.61 10.02

Yield on Investments 7.61 7.68

78 bps fall in Cost of Deposits

Page 30www.canarabank.com

PRODUCTIVITY RATIOSPRODUCTIVITY RATIOS

Sep’10 Sep’09

Business per Employee (` Crore) 10.60 8.46

Business per Branch (` Crore) 138.70 125.00

Gross Profit per Employee (` Lakh) 14.46 11.87

Net Profit per Employee (` Lakh) 10.08 7.07

Per Branch Business at a High of `139 Cr Business per Employee over `10 Cr

Page 31www.canarabank.com

Figures in the brackets are percentage shares in total

INVESTMENT PORTFOLIO INVESTMENT PORTFOLIO

Sep’10 Sep’09

Net Investments (Domestic) 76658 64403

Held to Maturity

61136

(79.8%)

50671

(78.7%)

Available for Sale

15167

(19.8%)

13416

(20.8%)

Held for Trading

355

(0.4%)

316

(0.5%)

Amt. in ` Crore

Page 32www.canarabank.com

ASSET QUALITYASSET QUALITY

Sep’10 Sep’09

Gross NPA (` Crore) 2636 2348

Gross NPA Ratio (%) 1.49 1.60

Net NPA (` Crore) 1860 1694

Net NPA Ratio (%) 1.06 1.16

Provision Coverage Ratio at 77.06%

Both Gross NPA and Net NPA Ratios Improve

Page 33www.canarabank.com

COMFORTABLE CAPITAL POSITION COMFORTABLE CAPITAL POSITION

Adequate Headroom for Capital Augmentation

CRAR of 13.88% at Sep’10

…well above the regulatory minimum of 9%

…Tier I ratio at 8.82%

…Tier II ratio at 5.06%

Raised `750 Cr under IPDI and `1000 Cr under Upper Tier II Bonds in Q2 (FY11)

Medium Term Objective .. CRAR of above 12%

…still undiluted 73.17% GoI Holding in the Bank

Page 34www.canarabank.com

8.82%8.54%8.01%7.01%

5.06%4.89%6.09%

6.24%

-1%

1%

3%

5%

7%

9%

11%

13%

15%

Mar.08 Mar.09 Mar.10 Sep.10

Tier I capital Tier 2 capital

9.0% Minimum Total CRAR

6.0% Minimum Tier I CRAR

Total CRAR

%

CAPITAL ADEQUACY – Basel IICAPITAL ADEQUACY – Basel II

13.25% 14.10%

As per Basel II

13.43% 13.88%

Page 35www.canarabank.com

EXPANDING THE REACHEXPANDING THE REACH

Sep’10 Sep’09Y-o-Y

Incr

Branch Network 3066 2806 260

ATM Strength 2017 2017

Card Base (In Lakh) 69.81 44.13 25.68Strategic Initiatives

Focus on Expanding Domestic Branch Network

Addition of 260 branches over September 2009

Thrust on Savings deposits: Ongoing Mega ‘Savings Mahotsav’ Campaign

Significant rise in number of Savings Bank accounts

Page 36www.canarabank.com

EXPANDED CLIENTELE BASEEXPANDED CLIENTELE BASE

Sep’10 Sep’09Y-o-Y

Incr

Clientele Base in Mn 37.46 35.83 +1.63

- No of Deposit a/cs (Mn) 33.33 31.68 +1.65

- No of Borrowal a/cs (Mn) 4.13 4.15

Over 37 million strong clientele base

Over 37 million strong clientele base

Page 37www.canarabank.com

INFOTECH PROGRESSINFOTECH PROGRESS

Sep’10 Sep’09

Core Banking BranchesAll

Branches 1591

Anywhere Banking Branches All

Branches 2084

Internet & Mobile Banking Branches

All Branches 1591

NEFT and RTGS All Branches 100% Business under Core Banking Branches100% Business under Core Banking Branches

Page 38www.canarabank.com

Page 39www.canarabank.com

FUTURE PLANS FUTURE PLANS

Aiming at a Total Business of ` 5,00,000 crore

by Mar’11

… ` 2,85,000 crore under Deposits

… ` 2,15,000 crore under Advances

Over 200 new branches to be opened during the year

Continued focus on Core Business Growth

Plans to Open Branches at Manama and QFC-Qatar

Page 40www.canarabank.com