7/30/2019 Canara Bank 4Q FY 2013
1/11
Please refer to important disclosures at the end of this report 1
Particulars ( ` cr) 4QFY13 3QFY13 % chg (qoq) 4QFY12 % chg (yoy)NII 2,091 1,988 5.2 2,040 2.5Pre-prov. profit 1,698 1,516 12.0 1,491 13.9PAT 725 710 2.1 829 (12.5)
Source: Company, Angel Research
Canara Bank reported a weak set of numbers for 4QFY2013, as net profitdeclined by 12.5% yoy. NII grew at a muted pace of around 2.5% yoy, whilenon-interest income grew by 30.8% yoy (aided by higher treasury gains), leadingto a moderate 13.9% yoy growth in operating profit. The key takeaways from theresults were sequential improvement in reported NIM (3bp qoq to 2.4%) andstability on the asset quality front (as lower slippages help contain the sequentialincrease in Gross and Net NPA levels to 2.8%, each). However, the restructuringduring the quarter was substantially high at ` 2,877cr.
Strong business growth qoq; Asset quality stable sequentially: During 4QFY2013,the banks advance book increased substantially by 11.0% on a qoq basis, whiledeposits also grew strongly at 9.8% qoq. Current deposits remained flat yoy,while saving deposits grew by 9.8% yoy. Consequently, the overall CASA depositsgrew by 8.1% yoy (6.0% qoq). The calculated CASA ratio for the bank declined by 87bp sequentially to 24.2%. The banks yield on advances came in flatsequentially at 11.1%, however, a 5bp sequential decline in cost of funds to 6.9%,resulted in a marginal improvement in reported NIM by 3bp to 2.4%.
Non-interest income (excluding treasury) witnessed an increase of 11.9% yoy, onback of higher recoveries from written off accounts and modest growth of 7.9%yoy in fee income. On the asset quality front, while slippages, on an absolutebasis, remained elevated at ` 1,086cr, however, were lower sequentially considering slippages of ` 1,314cr in 3QFY2013 and ` 1,922cr in 2QFY2013.Recoveries/upgrades came in at ` 520cr, much higher compared to ` 217crin 3QFY2013. Aided by sequentially lower slippages and higherrecoveries/upgrades, the bank was able to contain the sequential increase inabsolute Gross and Net NPA levels at 2.8% each. Gross and Net NPA ratios werelower by 20bp and 17bp, respectively to 2.6% and 2.2%. The PCR for the bankwas stable sequentially at 61.4%. Additionally, the bank restructured advancesworth ` 2,877cr (primarily from the infrastructure sector) during the quarter.
Outlook and valuation: At the current market price, the stock trades at a cyclically moderate valuation of 0.7x FY2015E ABV vs an eight-year average of 1.1x andrange of 0.7-1.4x. We value the bank at 0.8x FY2015E ABV and recommend anBuy rating on the stock with a target price of ` 461 .
Key financials (Standalone)Y/E March ( ` cr) FY2012 FY2013 FY2014E FY2015ENII 7,689 7,879 8,838 9,979% chg (0.1) 2.5 12.2 12.9Net profit 3,283 2,872 3,313 3,808% chg (18.5) (12.5) 15.4 14.9NIM (%) 2.2 2.1 2.1 2.2
EPS ( ) 74.1 64.8 74.8 86.0P/E (x) 5.3 6.1 5.3 4.6P/ABV (x) 0.9 0.8 0.7 0.7RoA (%) 0.9 0.7 0.8 0.8RoE (%) 17.0 13.2 13.7 14.2
Source: Company, Angel Research
BUYCMP ` 395Target Price ` 461Investment Period 12 months
Stock Info
Sector
Bloomberg Code
Shareholding Pattern (%)
Promoters 67.7
MF / Banks / Indian Fls 13.4
FII / NRIs / OCBs 12.3
Indian Public / Others 6.7
Abs. (%) 3m 1yr 3yr
Sensex (1.0) 14.1 12.6
CBK (16.4) (8.1) (7.8)
Banking
Market Cap ( ` cr) 17,485
Beta 1.1
52 Week High / Low 550/306
Avg. Daily Volume 89,857
Face Value ( ` ) 10
BSE Sensex 19,576
Nifty 5,944
Reuters Code CNBK.BO
CBK@IN
Vaibhav Agrawal022 3935 7800 Ext: [email protected]
Sourabh Taparia022 3935 7800 Ext: [email protected]
Akshay Narang022 3935 7800 Ext: 6829
Harshal Patkar022 3935 7800 Ext: [email protected]
Canara Bank
Performance Highlights
4QFY2013 Result Update | Banking
May 3, 2013
7/30/2019 Canara Bank 4Q FY 2013
2/11
Canara Bank | 4QFY2013 Result Update
May 3, 2013 2
Exhibit 1: 4QFY2013 performance (Standalone)Particulars ( ` cr) 4QFY13 3QFY13 % chg (qoq) 4QFY12 % chg (yoy) FY2013 FY2012 % chg (yoy)
Interest earned 8,465 8,544 (0.9) 8,267 2.4 34,078 30,851 10.5
- on Advances / Bills 6,073 5,958 1.9 6,189 (1.9) 24,380 23,443 4.0- on investments 2,307 2,460 (6.2) 1,908 20.9 9,112 7,053 29.2
- on balance with RBI & others 85 127 (33.1) 170 (49.9) 585 353 65.6
Interest Expended 6,374 6,556 (2.8) 6,227 2.4 26,199 23,161 13.1
Net Interest Income 2,091 1,988 5.2 2,040 2.5 7,879 7,689 2.5
Other income 1,007 846 19.0 769 30.8 3,153 2,928 7.7
Other income excl. treasury 755 595 26.9 674 11.9 2,477 2,604 (4.9)
- Fee Income 232 199 16.6 215 7.9 797 798 (0.1)
- Treasury Income 252 251 0.4 95 165.3 676 324 108.6
- Recov. from written off a/cs 133 59 125.4 98 35.7 303 363 (16.5)
- Others 390 337 15.6 361 7.8 1,377 1,443 (4.6)
Operating income 3,097 2,834 9.3 2,809 10.2 11,032 10,617 3.9
Operating expenses 1,399 1,317 6.2 1,319 6.1 5,142 4,674 10.0
- Employee expenses 888 831 6.9 826 7.6 3,254 2,973 9.4
- Other Opex 511 486 5.1 493 3.7 1,888 1,701 11.0
Pre-provision Profit 1,698 1,516 12.0 1,491 13.9 5,890 5,943 (0.9)
Provisions & Contingencies 752 626 20.2 462 63.0 2,218 1,860 19.2
- Provisions for NPAs 346 594 (41.8) 390 (11.3) 1,861 1,294 43.9
- Provisions for Investments 84 (129) (165.1) (107) (178.5) (370) 154 (340.6)
- Other Provisions 322 161 100.3 179 80.5 727 413 76.1
PBT 945 890 6.2 1,029 (8.1) 3,672 4,083 (10.1)
Provision for Tax 220 180 22.2 200 10.0 800 800 -PAT 725 710 2.1 829 (12.5) 2,872 3,283 (12.5)
Effective Tax Rate (%) 23.3 20.2 306bp 19.4 384bp 21.8 19.6 219bp
Source: Company, Angel Research
Exhibit 2: 4QFY2013 Actual vs EstimatesParticulars ( ` cr) Actual Estimates Var (%)
NII 2,091 2,027 3.2
Non-interest income 1007 781 28.9
Operating income 3,097 2,807 10.3
Operating expenses 1,399 1,367 2.4Pre-prov. profit 1,698 1,441 17.8
Provisions & cont. 752 466 61.6
PBT 945 975 (3.1)
Prov. for taxes 220 197 11.5
PAT 725 778 (6.7)
Source: Company, Angel Research
7/30/2019 Canara Bank 4Q FY 2013
3/11
Canara Bank | 4QFY2013 Result Update
May 3, 2013 3
Exhibit 3: 4QFY2013 performance analysis (Standalone)Particulars 4QFY13 3QFY13 %chg (qoq) 4QFY12 %chg (yoy)
Balance sheet
Advances ( ` cr) 242,177 218,242 11.0 232,490 4.2Deposits ( ` cr) 355,856 323,963 9.8 327,054 8.8
Credit-to-Deposit Ratio (%) 68.1 67.4 69bp 71.1 (303)bp
Current deposits ( ` cr) 14,893 12,473 19.4 14,819 0.5
Saving deposits ( ` cr) 71,168 68,689 3.6 64,792 9.8
CASA deposits ( ` cr) 86,061 81,162 6.0 79,611 8.1
Calculated CASA ratio (%) 24.2 25.1 (87)bp 24.3 (16)bp
CAR (%) 12.4 12.6 (24)bp 13.8 (136)bp
Tier 1 CAR (%) 9.8 9.8 1bp 10.4 (58)bp
Profitability Ratios (%)
Cost of deposits 7.7 7.8 (9)bp 7.4 37bp
Yield on advances 11.1 11.1 1bp 10.9 20bp
Yield on investments 8.1 8.1 0bp 8.0 17bp
Yield on funds 9.1 9.1 (1)bp 9.0 13bp
Cost of funds 7.0 7.0 (5)bp 6.7 26bp
Reported NIMs 2.4 2.4 3bp 2.5 (11)bp
Cost-to-income ratio 45.2 46.5 (131)bp 46.9 (176)bp
Asset quality
Gross NPAs ( ` cr) 6,260 6,090 2.8 4,032 55.3
Gross NPAs (%) 2.6 2.8 (20)bp 1.7 84bp
Net NPAs ( ` cr) 5,278 5,134 2.8 3,386 55.9
Net NPAs (%) 2.2 2.4 (17)bp 1.5 72bp
PCR incl. tech. w/offs (%) 61.4 61.5 (15)bp 67.6 (624)bp
Slippage ratio (%) 1.9 2.3 (39)bp 2.1 (24)bp
NPA to avg. assets (%) 0.3 0.6 (27)bp 0.4 (7)bp
Source: Company, Angel Research
Strong business growth qoq; NIM improves marginally qoq
During 4QFY2013, the banks advance book increased substantially by 11.0% ona qoq basis, while deposits also grew strongly at 9.8% qoq. Strong sequentialgrowth in advances was driven by 15.3% qoq growth in Agri loan book and 13.5%qoq growth in SME advances. Retail loans were higher by around 8.6% qoq aidedby 12.2% qoq growth in home loans. Overall, the CD ratio for the bank washigher by 69bp qoq to 68.1%.
Current deposits remained flat yoy (however, higher by 19.4% qoq), while thesaving deposits grew by 9.8% yoy (3.6% qoq). Consequently, the overall CASA deposits grew by 8.1% yoy (6.0% qoq). Calculated CASA ratio for the bankdeclined by 16bp yoy (87bp qoq) to 24.2%.
The banks yield on advances came in flat sequentially at 11.1%, however, a 5bpsequential decline in cost of funds to 6.9%, resulted in a marginal improvement in
reported NIM by 3bp to 2.4%. The banks cost of deposits declined sequentially by 10bp to 7.7%.
7/30/2019 Canara Bank 4Q FY 2013
4/11
Canara Bank | 4QFY2013 Result Update
May 3, 2013 4
Exhibit 4: Advances increase marginally on a yoy basis
Source: Company, Angel Research
Exhibit 5: Calculated CASA ratio declines sequentially
Source: Company, Angel Research
Exhibit 6: NIM improves by 3bp qoq, due to...
Source: Company, Angel Research
Exhibit 7: ...5bp fall in CoF, partly on lower CoD
Source: Company, Angel Research
Moderate growth in Non-interest income (excl. treasury) on back of higher recoveries and modest growth in fee income
During 4QFY2013, Non-interest income (excluding treasury) witnessed an increaseof 11.9% yoy to ` 755cr, on back of higher recoveries from written off accountsand subdued growth in fee income.
While the fee income for the bank witnessed a growth of 7.9% yoy to ` 232cr,recoveries from written-off accounts increased by a strong 35.7% yoy to ` 133cr.The bank reported treasury income of ` 252cr during the quarter compared to ` 95cr in 4QFY2012. Aided by substantially higher treasury income and recoveries,the overall non-interest income for the bank witnessed a strong growth of 30.8%yoy to ` 1,007cr.
9 . 4
4 . 9
( 1 . 0
)
( 0 . 5
)
4 . 2 1
1 . 3
1 1
. 5
7 . 7
2 . 7
8 . 8
71.1
67.4
64.1
67.468.1
60.0
62.0
64.0
66.0
68.0
70.0
72.0
(7.0)
-
7.0
14.0
4QFY12 1QFY13 2QFY13 3QFY13 4QFY13
Adv. yoy chg (%) Dep. yoy chg (%) CDR (%, RHS)
2 4
. 3
2 3
. 3
2 4
. 8
2 5
. 1
2 4
. 2(4.2)
2.4 3.47.6
8.1
(10.0)
-
10.0
20.0
30.0
20.0
22.5
25.0
27.5
30.0
4QFY12 1QFY13 2QFY13 3QFY13 4QFY13
Calculated CASA rat io CASA yoy growth (%, RHS)
2.502.40
2.532.36 2.39
1.00
1.50
2.00
2.50
3.00
4QFY12 1QFY13 2QFY13 3QFY13 4QFY13
(%)
6 . 7
2
7 . 1
2
7 . 1
3
7 . 0
3
6 . 9
8 7
. 3 5
7 . 8
9
7 . 8
3
7 . 8
1
7 . 7
2
6.00
6.50
7.00
7.50
8.00
4QFY12 1QFY13 2QFY13 3QFY13 4QFY13
Cost of funds Cost of deposits
7/30/2019 Canara Bank 4Q FY 2013
5/11
Canara Bank | 4QFY2013 Result Update
May 3, 2013 5
Exhibit 8: Non-interest income increases on higher treasury gains Particulars ( ` cr) 4QFY13 3QFY13 % chg (qoq) 4QFY12 % chg (yoy)
Fee Income 232 199 16.6 215 7.9
Treasury 252 251 0.4 95 165.3Recoveries 133 59 125.4 98 35.7
Others 390 337 15.6 361 7.8
Other income 1,007 846 19.0 769 30.8
Other income excl. treasury 755 595 26.9 674 11.9
Source: Company, Angel Research
Asset quality stable sequentially
On the asset quality front, while slippages, on an absolute basis, remainedelevated at ` 1,086cr (primarily came from the infrastructure sector), however, werelower sequentially considering slippages of ` 1,314cr in 3QFY2013 and ` 1,922crin 2QFY2013. Recoveries/upgrades came in at ` 520cr, much higher compared to ` 217cr in 3QFY2013. Aided by sequentially lower slippages and higherrecoveries/upgrades, the bank was able to contain the sequential increase inabsolute Gross and Net NPA levels at 2.8% each. Gross and Net NPA ratios werelower by 20bp and 17bp, respectively to 2.6% and 2.2%, also due to highsequential loan book growth. PCR for the bank was stable sequentially at 61.4%.
Additionally, the bank restructured advances worth ` 2,877cr (primarily from theinfrastructure sector) during the quarter, much higher than ` 857cr restructured in3QFY2013, thereby taking its outstanding restructured book to ` 18,113cr. As per
the Management, an account restructured during the quarter was not accepted by the auditors, which led to the same account being reported twice in restructuringbook as well as the NPA book.
Exhibit 9: Slippages remain at elevated levels
Source: Company, Angel Research
Exhibit 10: NPA levels lower sequentially
Source: Company, Angel Research; Note: PCR including tech. write-offs
2 . 1
2 . 6
3 . 3
2 . 3
1 . 9
0.40.5
0.5
0.6
0.3
-
0.2
0.4
0.6
0.8
-
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4QFY12 1QFY13 2QFY13 3QFY13 4QFY13
Slippages (%) Credit cost (%, RHS)
1 . 7
2 . 0
2 . 6
2 . 8
2 . 6
1 . 5
1 . 7
2 . 1
2 . 4
2 . 2
67.6 66.5
63.061.5
61.4
50.0
56.0
62.0
68.0
74.0
80.0
-
0.5
1.01.5
2.0
2.5
3.0
4QFY12 1QFY13 2QFY13 3QFY13 4QFY13
Gross NPAs (%) Net NPAs (%) PCR (%, RHS)
7/30/2019 Canara Bank 4Q FY 2013
6/11
Canara Bank | 4QFY2013 Result Update
May 3, 2013 6
Exhibit 11: Branch expansion trends
Source: Company, Angel Research
Exhibit 12: Opex.-to-avg. assets ratio higher qoq
Source: Company, Angel Research
Investment concerns
Weak liability franchise likely to keep NIM under pressure
The bank has a relatively weak liability profile with a calculated CASA base at24.2% as of 4QFY2013. The bank has relatively high proportion of more costly bulk deposits, which increases the banks exposure to interest rate movements.Due to low credit-deposit ratio of 68.1% in 4QFY2013 and elevated slippages,margins continued to remain under check at under 2.4%. However going ahead,the bank is expected to significantly shed down its high-costs bulk depositsportfolio. Also, the bank has embarked on a relatively aggressive networkexpansion plan. Over the past two years, the bank has added ~470 branches andmore than 1300 ATMs. Such a pace of network expansion should augur well, inour view, for strengthening the banks relatively weak liability franchise. Also, thebank plans to take the number of branches from 3,728 to 5,000 by March 2015which should give a thrust to its low cost deposits.
Outlook and valuation
At the current market price, the stock trades at a cyclically moderate valuation of0.7x FY2015E ABV vs eight-year average of 1.1x and range of 0.7-1.4x. We valuethe bank at 0.8x FY2015E ABV and recommend a Buy rating on the stock with a
target price of ` 461.
3,600 3,6093,655 3,681
3728
2,900
3,050
3,200
3,350
3,500
3,650
3,800
4QFY12 1QFY13 2QFY13 3QFY13 4QFY13
4 6
. 9
4 5
. 0
5 0
. 0
4 6
. 5
4 5
. 1 9
1.4
1.21.3 1.4 1.4
-
0.2
0.4
0.6
0.8
1.0
1.21.4
1.6
20.0
25.0
30.0
35.0
40.0
45.0
50.0
4QFY12 1QFY13 2QFY13 3QFY13 4QFY13
Cost-to-income ratio (%) Opex to average assets (%, RHS)
7/30/2019 Canara Bank 4Q FY 2013
7/11
Canara Bank | 4QFY2013 Result Update
May 3, 2013 7
Exhibit 13: Key assumptions
Particulars (%)Earlier estimates Revised estimates
FY2014E FY2015E FY2014E FY2015E
Credit growth 14.0 16.0 18.0 18.0Deposit growth 10.0 14.0 8.0 12.0
CASA ratio 27.4 27.7 25.4 26.1
NIMs 2.2 2.3 2.1 2.2
Other income growth 0.0 13.8 (2.0) 12.9
Growth in staff expenses 7.5 7.5 7.5 7.5
Growth in other expenses 7.5 7.5 7.5 7.5
Slippages 2.0 1.6 2.0 1.7
Coverage 65.0 67.5 63.5 65.0
Source: Angel Research
Exhibit 14: Change in estimates
Particulars ( ` cr)FY2014E FY2015E
Earlierestimates
Revisedestimates Var. (%)
Earlierestimates
Revisedestimates Var. (%)
NII 8,745 8,838 1.1 9,878 9,979 1.0
Non-interest income 2,928 3,090 5.5 3,330 3,487 4.7
Operating income 11,673 11,928 2.2 13,208 13,467 2.0
Operating expenses 5,493 5,528 0.6 5,904 5,942 0.6
Pre-prov. profit 6,180 6,400 3.6 7,304 7,525 3.0
Provisions & cont. 1,700 1,923 13.1 1,543 1,756 13.8
PBT 4,480 4,478 (0.1) 5,760 5,769 0.1
Prov. for taxes 1,165 1,164 (0.1) 1,958 1,961 0.1
PAT 3,316 3,313 (0.1) 3,802 3,808 0.1
Source: Angel Research
Exhibit 15: P/ABV band
Source: Company, Angel Research
0
200
400
600
800
1000
1200
A p r -
0 6
S e p - 0
6
F e
b - 0
7
J u l - 0 7
D e c -
0 7
M a y -
0 8
O c t - 0
8
M a r -
0 9
A u g - 0
9
J a n - 1
0
J u n - 1
0
N o v -
1 0
A p r -
1 1
S e p - 1
1
F e
b - 1
2
J u l - 1 2
D e c -
1 2
M a y -
1 3
O c t - 1
3
M a r -
1 4
Price (`) 0.75x 1x 1.25x 1.5x 1.75x
7/30/2019 Canara Bank 4Q FY 2013
8/11
Canara Bank | 4QFY2013 Result Update
May 3, 2013 8
Exhibit 16: Recommendation summary
Company Reco. CMP(` )Tgt. price
(` )Upside
(%)FY2014EP/ABV (x)
FY2014ETgt. P/ABV (x)
FY2014EP/E (x)
FY2012-14EEPS CAGR (%)
FY2014ERoA (%)
FY2014ERoE (%)
AxisBk Buy 1,474 1,737 17.9 1.6 1.9 9.7 17.3 1.6 17.6
FedBk Neutral 447 - - 1.0 - 7.5 10.0 1.2 13.7
HDFCBk Neutral 681 - - 3.2 - 16.0 22.8 1.8 21.8
ICICIBk* Buy 1,130 1,352 19.7 1.6 1.9 11.7 15.5 1.5 15.6
SIB Neutral 24 - - 0.9 - 5.3 11.4 1.0 17.1YesBk Neutral 498 - - 2.1 - 10.4 14.9 1.3 22.1
AllBk Buy 132 155 17.6 0.5 0.6 3.7 12.6 0.8 14.2
AndhBk Neutral 92 - - 0.6 - 3.9 4.2 0.8 13.4
BOB Buy 699 815 16.6 0.7 0.9 4.8 17.0 1.0 16.0
BOI Accumulate 327 360 10.1 0.7 0.8 4.8 21.8 0.8 15.1
BOM Neutral 57 - - 0.6 - 4.3 14.8 0.6 15.6
CanBk Buy 395 461 16.7 0.6 0.8 4.6 14.0 0.8 14.1CentBk Neutral 70 - - 0.6 - 3.9 42.8 0.6 13.3
CorpBk Buy 376 453 20.4 0.5 0.6 3.6 8.3 0.8 14.4
DenaBk Accumulate 91 101 11.4 0.5 0.6 3.4 4.3 0.8 15.3
IDBI# Neutral 89 - - 0.5 - 4.8 15.2 0.7 11.3
IndBk Buy 163 193 18.2 0.5 0.7 3.9 6.5 1.0 14.9
IOB Accumulate 62 70 12.3 0.4 0.5 3.1 53.3 0.7 13.1
J&KBk Neutral 1,327 - - 1.0 - 6.6 (5.2) 1.2 16.0
OBC Accumulate 256 282 10.4 0.5 0.6 4.0 17.5 0.8 13.1
PNB Buy 746 889 19.2 0.7 0.8 4.2 12.4 1.0 16.3
SBI* Buy 2,217 2,567 15.8 1.2 1.4 7.9 16.4 1.0 17.0
SynBk Neutral 129 - - 0.6 - 4.5 (3.5) 0.7 15.2
UcoBk Reduce 72 68 (5.7) 0.7 0.7 5.0 36.9 0.6 12.6
UnionBk Accumulate 240 264 10.1 0.7 0.8 5.0 21.2 0.8 15.3
UtdBk Accumulate 60 68 13.2 0.4 0.5 2.9 40.4 0.7 14.7
VijBk Accumulate 52 55 5.9 0.6 0.6 4.7 21.2 0.5 11.7
Source: Company, Angel Research; Note:*Target multiples=SOTP Target Price/ABV (including subsidiaries), # Without adjusting for SASF
Company Background
Canara Bank is the largest south India -based PSU bank (overall fifth largest bankin India), with a balance sheet size of around `4.1 lakh cr. The bank has areasonably large pan-India presence; with about 45% of its 3,700+ branchesoutside South India (the bank also has 3,500+ ATMs).
7/30/2019 Canara Bank 4Q FY 2013
9/11
Canara Bank | 4QFY2013 Result Update
May 3, 2013 9
Income statement (Standalone)Y/E March ( ` cr) FY10 FY11 FY12E FY13E FY14E FY15E
Net Interest Income 5,681 7,699 7,689 7,879 8,838 9,979
- YoY Growth (%) 20.4 35.5 (0.1) 2.5 12.2 12.9Other Income 2,858 2,811 2,928 3,153 3,090 3,487
- YoY Growth (%) 17.7 (1.6) 4.1 7.7 (2.0) 12.9
Operating Income 8,538 10,511 10,617 11,032 11,928 13,467
- YoY Growth (%) 19.5 23.1 1.0 3.9 8.1 12.9
Operating Expenses 3,478 4,419 4,674 5,142 5,528 5,942
- YoY Growth (%) 13.5 27.1 5.8 10.0 7.5 7.5
Pre - Provision Profit 5,061 6,091 5,943 5,890 6,400 7,525
- YoY Growth (%) 24.1 20.4 (2.4) (0.9) 8.7 17.6
Prov. & Cont. 1,239 1,066 1,860 2,218 1,923 1,756
- YoY Growth (%) (17.8) (14.0) 74.6 19.2 (13.3) (8.7)
Profit Before Tax 3,821 5,026 4,083 3,672 4,478 5,769
- YoY Growth (%) 48.6 31.5 (18.8) (10.1) 21.9 28.8
Prov. for Taxation 800 1,000 800 800 1,164 1,961
- as a % of PBT 20.9 19.9 19.6 21.8 26.0 34.0
PAT 3,021 4,026 3,283 2,872 3,313 3,808
- YoY Growth (%) 45.8 33.2 (18.5) (12.5) 15.4 14.9
Balance sheet (Standalone) Y/E March ( ` cr) FY10 FY11 FY12E FY13E FY14E FY15E
Share Capital 410 443 443 443 443 443Reserve & Surplus 14,262 19,597 22,247 24,435 27,027 30,012
Deposits 234,651 293,437 327,054 355,856 384,324 430,443
- Growth (%) 25.6 25.1 11.5 8.8 8.0 12.0
Borrowings 1,041 5,198 6,558 11,540 12,449 13,895
Tier 2 Capital 7,399 9,063 8,967 8,743 8,524 8,311
Other Liab. & Prov. 6,977 8,207 8,891 11,325 12,051 13,370
Total Liabilities 264,741 335,945 374,160 412,343 444,820 496,475
Cash Balances 15,719 22,015 17,795 15,406 17,295 19,370
Bank Balances 3,934 8,693 10,384 19,309 14,157 13,319
Investments 69,677 83,636 102,057 121,133 112,246 109,543
Advances 169,335 211,268 232,490 242,177 285,768 337,207
- Growth (%) 22.5 24.8 10.0 4.2 18.0 18.0
Fixed Assets 2,859 2,844 2,858 2,863 2,996 3,243
Other Assets 3,217 7,488 8,576 11,456 12,358 13,793
Total Assets 264,741 335,945 374,160 412,343 444,820 496,475
- Growth (%) 20.6 26.9 11.4 10.2 7.9 11.6
7/30/2019 Canara Bank 4Q FY 2013
10/11
Canara Bank | 4QFY2013 Result Update
May 3, 2013 10
Ratio analysis (Standalone)Y/E March FY10 FY11 FY12E FY13E FY14E FY15E
Profitability ratios (%)
NIMs 2.4 2.6 2.2 2.1 2.1 2.2Cost to Income Ratio 40.7 42.0 44.0 46.6 46.3 44.1
RoA 1.2 1.3 0.9 0.7 0.8 0.8
RoE 26.8 26.4 17.0 13.2 13.7 14.2
B/S ratios (%)
CASA Ratio 29.1 28.3 24.3 24.2 25.4 26.1
Credit/Deposit Ratio 72.2 72.0 71.1 68.1 74.4 78.3
CAR 13.4 15.4 13.8 13.4 13.5 13.2
- Tier I 8.5 10.9 10.4 10.3 10.6 10.6
Asset Quality (%)
Gross NPAs 1.5 1.5 1.7 2.6 3.0 3.1
Net NPAs 1.1 1.1 1.5 2.2 2.0 1.8
Slippages 2.4 2.1 2.2 2.5 2.0 1.7
Loan Loss Prov. /Avg. Assets 0.6 0.3 0.4 0.5 0.4 0.3
Provision Coverage 77.7 73.0 67.6 61.4 63.5 65.0
Per Share Data ( ` )
EPS 73.7 90.9 74.1 64.8 74.8 86.0
ABVPS (75% cover.) 305.8 401.1 448.1 472.9 532.9 601.6
DPS 10.0 11.0 11.0 13.0 14.0 16.0
Valuation Ratios
PER (x) 5.4 4.3 5.3 6.1 5.3 4.6
P/ABVPS (x) 1.3 1.0 0.9 0.8 0.7 0.7Dividend Yield 2.5 2.8 2.8 3.3 3.5 4.1
DuPont Analysis
NII 2.3 2.6 2.2 2.0 2.1 2.1
(-) Prov. Exp. 0.5 0.4 0.5 0.6 0.4 0.4
Adj. NII 1.8 2.2 1.6 1.4 1.6 1.7
Treasury 0.4 0.1 0.1 0.2 0.1 0.0
Int. Sens. Inc. 2.2 2.3 1.7 1.6 1.7 1.8
Other Inc. 0.8 0.9 0.7 0.6 0.7 0.7
Op. Inc. 3.0 3.1 2.5 2.2 2.3 2.5
Opex 1.4 1.5 1.3 1.3 1.3 1.3PBT 1.6 1.7 1.1 0.9 1.0 1.2
Taxes 0.3 0.3 0.2 0.2 0.3 0.4
RoA 1.2 1.3 0.9 0.7 0.8 0.8
Leverage 21.5 19.7 18.4 18.1 17.8 17.5
RoE 26.8 26.4 17.0 13.2 13.7 14.2
7/30/2019 Canara Bank 4Q FY 2013
11/11
Canara Bank | 4QFY2013 Result Update
May 3, 2013 11
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investmentdecision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should makesuch investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companiesreferred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits andrisks of such an investment.
Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, makeinvestment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in thisdocument are those of the analyst, and the company may or may not subscribe to all the views expressed within.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions andtrading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company'sfundamentals.
The information in this document has been printed on the basis of publicly available information, internal data and other reliablesources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as thisdocument is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report .
Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify,nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While
Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory,compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,redistributed or passed on, directly or indirectly.
Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking orother advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or inthe past.
Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or inconnection with the use of this information.
Note: Please refer to the important ` Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to thelatest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may haveinvestment positions in the stocks recommended in this report.
Disclosure of Interest Statement Canara Bank
1. Analyst ownership of the stock No
2. Angel and its Group companies ownership of the stock No
3. Angel and its Group companies' Directors ownership of the stock No
4. Broking relationship with company covered No
Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)Reduce (-5% to -15%) Sell (< -15%)
Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors
Recommended