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PERFORMANCE HIGHLIGHTS March 2009. Canara .. at a Glance. FINANCIAL HIGHLIGHTS. ROBUST PROFIT GROWTH Q4 FY09. ROBUST PROFIT GROWTH FY09. PROFIT GROWTH LAST FIVE YEARS. BUSINESS PROFILE. Amt. in Rs. Crore. Total Business Crossed Rs. 3.25 lakh crore Growth over 24%. TOPLINE GROWTH. - PowerPoint PPT Presentation
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Page 1www.canarabank.com Mar’09 Results
PERFORMANCE HIGHLIGHTS
March 2009
Page 2www.canarabank.com Mar’09 Results
Canara .. at a GlanceCanara .. at a Glance
A Premier Nationalised Bank in India Well spread network of 2733 branches
Over 2000 ATMs spread across the country
Nearly 35 million strong cross-section clientele base
Consistent track record of profit making .. Since
inception
Financial Supermarket - 9 subsidiaries/sponsored
institutions/JVs
Business Superbrand Status
Page 3www.canarabank.com Mar’09 Results
FINANCIAL HIGHLIGHTS
Page 4www.canarabank.com Mar’09 Results
ROBUST ROBUST PROFITPROFIT GROWTH Q4 FY09 GROWTH Q4 FY09
Q4 FY08 Q4 FY09
719
464
100
200
300
400
500
600
700
800
Net Profit(Rs. in Crore)
Incr
ease
of 55
%
Page 5www.canarabank.com Mar’09 Results
ROBUST ROBUST PROFITPROFIT GROWTH FY09 GROWTH FY09
FY08 FY09
2072
1565
500
700
900
1100
1300
1500
1700
1900
2100
Net Profit(Rs. in Crore)
Incr
ease
of 32
%
Page 6www.canarabank.com Mar’09 Results
PROFIT GROWTH LAST FIVE YEARSPROFIT GROWTH LAST FIVE YEARS
2,072
1,5651,4211,343
1,110
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
FY05 FY06 FY07 FY08 FY09
Rs. C
rore
Page 7www.canarabank.com Mar’09 Results
BUSINESS PROFILEBUSINESS PROFILE
Mar’09 Mar’08 Y-o-Y Gr
Total Business 32511226131
0 24%
Total Deposits 18689315407
2 21%
Net Advances 13821910723
8 29%
C-D Ratio (%) 73.96 69.60 436bps
Amt. in Rs. Crore
Total Business Crossed Rs. 3.25 lakh croreGrowth over 24%
Page 8www.canarabank.com Mar’09 Results
96,796
116,803107,238
154,072142,381
186,893
79,426
98,506
60,421
138,219
-13,000
7,000
27,000
47,000
67,000
87,000
107,000
127,000
147,000
167,000
187,000
2005 2006 2007 2008 2009
Rs.
Cro
re
Deposits Advances
TOPLINE GROWTHTOPLINE GROWTH
Total Business added during the year : Rs.63800 Crore
Page 9www.canarabank.com Mar’09 Results
219,646
180,529165,961
132,822
110,305
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
2005 2006 2007 2008 2009
Rs. C
rore
TOTAL ASSETSTOTAL ASSETS
Total Asset size has crossed the Rs.200,000 crore mark
Page 10www.canarabank.com Mar’09 Results
INCOME INCOME
Amt. in Rs. Crore
Mar’09 Mar’08 Growth Q4
FY09Q4
FY08 Growth
Total Income 19430 16414 18.38% 5500 4502 22.17%
Int. Income 17119 14201 20.55% 4654 3788 22.86%
Int. Loans/Adv 12813 9875 29.75% 3575 2621 36.37%
Non-Int. Inc 2311 2213* 4.44% 846 714* 18.51%*If the one time income of Rs.498 Cr for FY08 and Rs.278 Cr for Q4 of FY08 are reckoned, the growth works out to 35% for FY09
and 94% for Q4 of FY09
Page 11www.canarabank.com Mar’09 Results
EXPENDITURE EXPENDITURE Amt. in Rs. Crore
Mar’09
Mar’08 Growth
Q4 FY09
Q4 FY08 Growth
Total Exp. 15467 1345414.96
% 4228 356318.65
%
Int. Exp. 12401 1066316.30
% 3349 286616.86
%
Op. Expense 3065 2791 9.82% 879 698
26.04%
Staff Expense 1877* 1661
12.99% 530 357
48.60%
Cost-Income Ratio (%) 43.61 48.54
-493bp
s 40.8642.6
2
-176bp
s
*Includes Rs.150 Cr provided for likely wage revision
Enterprise-wide ‘Cost Saving and Cost Control’ awareness
Page 12www.canarabank.com Mar’09 Results
PROFIT GROWTHPROFIT GROWTHAmt. in Rs. Crore
Mar’09 Mar’08 Q4 FY09 Q4 FY08
Operating Profit 3964 2959 1273 939
Growth (%) 33.94 1.61 35.50 -10.74
Provisionsincl Prov for Taxation 1891 1394 554 475
Net Profit 2072 1565 719 464Growth (%) 32.42 10.15 54.90 -8.12
RoAA (%) 1.06 0.92 1.47 1.09EPS ( For Q4 Not Annualized) 50.55 38.17 17.53 11.32
Page 13www.canarabank.com Mar’09 Results
EARNINGS PROFILEEARNINGS PROFILE
Mar’09 Mar’08 Q4 FY09 Q4 FY08
Net Int. Income 4718 3538 1305 922
Y-o-Y Growth (%) 33.36 -12.14 41.50 -12.92
Net Int. Margin (NIM) 2.78 2.42 2.78 2.42
Amt. in Rs. Crore
NIM Improved by 36 bps Over Mar’08
Page 14www.canarabank.com Mar’09 Results
Interest Income continues to drive growth in income .. over 60% of earnings from int on advances
Contribution from fee-based business on a rise .. Fee Income up by 18% over March 2008
MAJOR COMPONENTS OF MAJOR COMPONENTS OF INCOMEINCOME
Investment Income26.7%
Int on Adv60.2%
Others3.0%
Fee Incm7.0%
Inter Bk Int3.1%
March 2008March 2008
Investment Income24.2%
Int on Adv65.9%
Others1.8%Fee Incm
7.0%
Inter Bk Int1.1%
March 2009March 2009
Page 15www.canarabank.com Mar’09 Results
EARNING ANALYSIS : FY 09EARNING ANALYSIS : FY 09
Mar 2008 Mar 2009
Interest Income as a % of Total Income 86.52% 88.11%
Interest on Advances as a % of Total Income 60.17% 65.94%
Fee Income as a % of Total Income 7.05% 7.00%
Treasury Income* as a % of Total Income 26.68% 24.18%
* Int on Inv. + Trading Profit + Profit on Revaluation + Dividend Incm
Page 16www.canarabank.com Mar’09 Results
BREAK-UP OF OTHER INCOMEBREAK-UP OF OTHER INCOME
Mar’09 Mar’08
FY09 Q4 FY09 FY08 Q4 FY08
Total Other Income 2311 846 2213 714 Commission & Exchange 639 198 569 164
Profit from Exchange Trans 174 14 154 38
Trading Profit 675 349 435 101
Dividend Income 38 11 223 114
Recovery in w/off A/cs 319 99 316 115
Other Misc. Income 466 175 516 182
of the above ..
Fee Income 1361 383 1157 360
Rs. in Crore
Fee-based income grew by 18% over Mar’08
Page 17www.canarabank.com Mar’09 Results
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
Retail sale of Bullion
Page 18www.canarabank.com Mar’09 Results
BREAK-UP OF PROVISIONSBREAK-UP OF PROVISIONS
Mar’09 Mar’08
FY09 Q4 FY09 FY08 Q4 FY08
Total Provision & Contingencies 1891 554 1394 475
Of Which:
Non Performing Advances 900 250 875 313
Provision for Investments 407 20 149 28
Taxation 500 200 340 100
In Rs Crore
Page 19www.canarabank.com Mar’09 Results
PROFITABILITY RATIOSPROFITABILITY RATIOS
Mar’08(FY08)
Jun’08(Q1 FY09)
Sep’08(H1 FY09)
Dec’08(9M FY09)
Mar’09(FY09)
Cost of Deposits 6.80 6.36 6.60 6.81 6.87
Yield on Advances 10.22 10.06 10.50 10.69 10.79
Cost of Funds 6.24 5.90 6.07 6.23 6.32
Yield on Funds 8.31 8.12 8.39 8.57 8.73
Spread 2.07 2.22 2.32 2.34 2.41
Net Interest Margin 2.42 2.57 2.70 2.75 2.78
(In %)
Consistent Improvement in Spread and NIM
Page 20www.canarabank.com Mar’09 Results
PRODUCTIVITY RATIOSPRODUCTIVITY RATIOS
Mar’09 Mar’08
Business per Employee (Rs. Crore) 7.80 6.10
Business per Branch (Rs. Crore) 118.96 97.58
Gross Profit per Employee (Rs. Lakh) 9.51 6.91
Net Profit per Employee (Rs. Lakh) 4.97 3.65
Highest Per Branch Business amongst Peers
Page 21www.canarabank.com Mar’09 Results
Amt. in Rs. Crore
Figures in the brackets are percentage share in Net Investments (Domestic)
INVESTMENT PORTFOLIO INVESTMENT PORTFOLIO
Mar’09 Mar’08
Net Investments (Domestic) 57146 49053
Held to Maturity
41007
(71.8%)
28721
(58.6%)
Available for Sale
15728
(27.5%)
20128
(41.0%)
Held for Trading
412
(0.72%)
204
(0.40%)
Page 22www.canarabank.com Mar’09 Results
ASSET QUALITYASSET QUALITY
Mar’09 Mar’08
Gross NPA (Rs. Crore) 2168 1273 Gross NPA Ratio (%) 1.56 1.18
Net NPA (Rs. Crore) 1507 899
Net NPA Ratio (%) 1.09 0.84
Cash Recovery (Rs. Crore) 1289 1030
Restructured a total of 72184 A/Cs, aggregating to Rs.2066 Cr in FY09 under the Special Regulatory Treatment
Intensive thrust on credit monitoring and containing slippages
Page 23www.canarabank.com Mar’09 Results
BASEL II AND CAPITAL STRATEGYBASEL II AND CAPITAL STRATEGY
Comfortable Capital Adequacy Ratio
CRAR of 14.10% at Mar’09.. well above the
regulatory minimum
Medium Term Objective .. CRAR of above 12%
One of the best Capital Position amongst its Peers
……. Still undiluted 73.17% GoI Holding in the Bank
Page 24www.canarabank.com Mar’09 Results
5.49%
8.01%7.01%7.17%7.81%7.29%
6.09%6.24%6.33%3.41%
0%
2%
4%
6%
8%
10%
12%
14%
Mar.05 Mar.06 Mar.07 Mar.08 Mar.09
Tier I capital Tier 2 capital
9.0% Minimum Total CRAR
6.0% Minimum Tier I CRAR
12.78% 11.22%Total CRAR
%
CAPITAL ADEQUACY – Basel IICAPITAL ADEQUACY – Basel II
13.50% 13.25%* 14.10*
(6738)
(7850)
(6925)
(8148)
(7250)
(2940)
(3372)
(4483)
(Figures in the brackets are amt. in Rs. Crore)
(7623)
(10023)
* Mar’08 and Mar’09 as per Basel II
Page 25www.canarabank.com Mar’09 Results
EARNINGS PROFILEEARNINGS PROFILE
27.06
32.7634.65
38.17
50.55
0
10
20
30
40
50
60
EPS (INR)
Mar-05 Mar-06 Mar-07 Mar-08 Mar-09
146.15
171.19
197.83202.33
244.87
0
50
100
150
200
BV (Rs)
Mar-05 Mar-06 Mar-07 Mar-08 Mar-09
The Bank continued to sustain high levels of earnings. Book Value and Earnings Per Share show consistent rise, year on year
The Bank continued to sustain high levels of earnings. Book Value and Earnings Per Share show consistent rise, year on year
Page 26www.canarabank.com Mar’09 Results
VALUE FOR STAKEHOLDERSVALUE FOR STAKEHOLDERS
55%
66%70%
80% 80%
0%
10%
20%
30%
40%
50%
60%
70%
80%
DIVIDEND
FY05 FY06 FY07 FY08 FY09
Dividend ... Progressive Return for the
Shareholders
Page 27www.canarabank.com Mar’09 Results
SHARE HOLDING PATTERNSHARE HOLDING PATTERN
11.2%
5.6%1.8% 6.7% 1.6%
73.2%
Govt of India FIIs Resident Individuals MFs IFIs Others
As on Mar 31, 2009
Page 28www.canarabank.com Mar’09 Results
BUSINESS FOCUS
Page 29www.canarabank.com Mar’09 Results
CORE DEPOSITS GROWTHCORE DEPOSITS GROWTH
Amt. in Rs. Crore
Mar’09 Mar’08 Y-o-Y Gr
Core Deposits 15012710893
6 38%
Savings Deposits 41811 35267 19%
CASA per Branch 20.55 18.12 13%
Deposits Clientele (Mn) 30.50 28.30 2.2Mn
Highest Per Branch CASA Deposit among Peers
Page 30www.canarabank.com Mar’09 Results
CREDIT FOCUSCREDIT FOCUS
Amt. in Rs. Crore
Mar’09 Mar’08 Y-o-Y Gr
Net Advances13821
9 107238 29%
Agriculture Credit 20144 17996 12%
MSME Advances 23823 18600 28%
Retail Lending 19798 17665 12%
Housing (Direct) 7896 6658 19%
Industrial Advances 52142 41435 26%
Infrastructure Advances 17313 13794 26%
Well Diversified Credit PortfolioFocus on Productive Sectors
Page 31www.canarabank.com Mar’09 Results
PRIORITY SECTORPRIORITY SECTOR
Mar’09 Mar’08 Y-o-Y Gr
Priority Credit O/s 48763 43203 13%
% to ANBC 46.02 44.15
Agriculture Adv O/s 20144 17996 12%
% to ANBC 19.01 17.70
MSME Advances O/s 23823 18600 28%
(Amt. in Rs. Crore)
Surpassed 18% Adjusted Net Bank Credit (ANBC) Norm in Agriculture
Page 32www.canarabank.com Mar’09 Results
Beyond Numbers
Page 33www.canarabank.com Mar’09 Results
EXPANDING THE REACHEXPANDING THE REACH
Mar’09 Mar’08 Y-o-Y Incr
Branch Network 2733 2678 55
ATM Strength 2019 2006
55 Branches added during the year
Commissioned a Branch at SHANGHAI, CHINA
ATM Tally of over 2000.. Highest amongst Nationalized Banks (includes 609 Off-Site ATMs + 187 ATMs at important Railway Stations)
150 e-kiosks for Railway Ticket Booking
Page 34www.canarabank.com Mar’09 Results
EXPANDED CLIENTELE BASEEXPANDED CLIENTELE BASE
Mar’09 Mar’08Y-o-Y
Incr
Clientele Base in Mn 34.80 32.35 2.45
- No of Deposit a/cs (Mn) 30.50 28.30 2.20
- No of Borrowal a/cs (Mn) 4.30 4.05 0.25
Nearly 35 million strong clientele base
2.5 million clientele added during the year
Nearly 35 million strong clientele base
2.5 million clientele added during the year
Page 35www.canarabank.com Mar’09 Results
INFOTECH PROGRESSINFOTECH PROGRESS
Mar’09 Mar’08
Core Banking Branches 1053 569
ATMs 2019 2006
AWB Branches 2062 1911
IMB Branches 1362 1200
NEFT and RTGS All Branches 2675
Debit Card Base (Lakh) 57.51 32.87
77% Business under Core Banking Solution
Largest ATM Network amongst Nationalized Banks
77% Business under Core Banking Solution
Largest ATM Network amongst Nationalized Banks
Page 36www.canarabank.com Mar’09 Results
AWARDS/ACCOLADES AWARDS/ACCOLADES
Golden Peacock National Training Award 2008 for excellence in training.
Global HR Excellence in Training, an award conferred by the Asia Pacific HR Congress,
Best Corporate Social Responsibility Practice Award, instituted by BSE, NASSCOM and Times Foundation.
Two Silver Corporate Collateral Awards for Best Corporate Ad in the Print Media and Best Corporate Film on Corporate Social Responsibility at the Public Relations Council of India Awards 2009.
Page 37www.canarabank.com Mar’09 Results
PLANS FOR FY10PLANS FOR FY10
Aiming at a Total Business of Rs.4,00,000 crore by Mar’10
… Rs.2,25,000 crore under Deposits
… Rs.1,75,000 crore under Advances
Over 200 new branches to be opened during the year
Continued focus on Core Business Growth
Leveraging the new brand identity to improve standard of customer service and attract younger clientele
All branches are slated for full coverage under CBS by March 2009
Increasing technological automation will be leveraged fully to provide a wide range of value-added services to our vast cross-section clientele and sustain business growth.
Strengthening overseas presence
RBI approval for 10 overseas Branches/offices obtained… Johannesburg, Frankfurt, Muscat, Manama, QFC-Qatar, Leicester, New York, Sao Paulo, Dar-er-Salam and Tokyo
Page 38www.canarabank.com Mar’09 Results
To Expand Credit in FY10
Page 39www.canarabank.com Mar’09 Results
INITIATIVES… To Expand Credit INITIATIVES… To Expand Credit
Meeting emergent needs of corporates, MSME, housing, auto, infrastructure and other sectors, hit by economic downturn
Resorting to effective utilization of resources- deposits, refinance, market borrowings.
Continuing thrust on increasing exposure to all productive sectors- Agriculture, MSME, manufacturing and services
Special incentives for MSME, Housing and Auto sectors
Extensive support to NBFCs and Mutual Funds
Page 40www.canarabank.com Mar’09 Results
INITIATIVES… To Expand CreditINITIATIVES… To Expand Credit
RETAIL LENDING PUSH
Intensive focus on housing loans
Attractive offerings for housing loans upto Rs.30 lakhs… RoI fixed at 8.25% for 12 months and 9.25% for
next 48 months
Focus on Retail Asset Hubs-Central Processing Units …. for reducing turnaround time
Tie-ups with Auto Majors- M/s Hyundai Motor India Ltd, M/s. Swaraj Mazda Ltd, M/s. Maruti Suzuki Ltd and M/s. Tata Motors to push auto loans
Page 41www.canarabank.com Mar’09 Results
SPREAD MANAGEMENT SPREAD MANAGEMENT
Spread Management Challenges on Sustaining Net Interest Margin
… southward movement in interest rates
Reduction in BPLR - from 14% to 13.25 (w.e.f 10th Nov’08)
from 13.25% to 12.50% (w.e.f 1st Jan’09)
from 12.50% to 12.00% (w.e.f 1st April 2009 )
Reduction in deposit rate from the peak of 10.5% to 7.5% at present
Measures Intensive mobilization of Core Deposits, including CASA
Substitution of high cost preferential rate deposits with low cost term deposits
Deployment of resources in better yielding productive assets
Focus on Corporates
Intensive thrust on credit monitoring and containing slippages
Page 42www.canarabank.com Mar’09 Results
COST MANAGEMENT COST MANAGEMENT
Cost Management
Effective Cost Management to protect ‘Operating
Margin’
Exercising Restraint/Control on ‘Other Operating
Expenses’
Economizing cost and rental for branches/offices/ATMs
Optimizing the utilization of ATMs• Making ATMs profit centres
•Rationalization/Relocation of ATMs
•Increasing number of Debit Cards and hits per ATM
•Encouraging Customers to use ATMs and other e-banking channels
Reducing burden, improving pool of non-interest
income by Mar’09
Enterprise-wide ‘Cost Saving and Cost Control’
awareness
Page 43www.canarabank.com Mar’09 Results