page 1 members of the media extends a hearty welcome to
TRANSCRIPT
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 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 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