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| Shri S Raman, CMD Canara Bank flanked by Smt.Archana S Bhargava, ED Canara Bank addressing the media |
Major Highlights –Q1FY12
Sustained Performance..Steady Growth
Total business touched `515165 Crore, up by 25%
Deposits reached `300150 Crore, up 25.7%
Domestic deposits grew by 25% compared to SCBs’ growth at 17.7%.
Advances (net) reached `215015 crore, up by 23.7%
Domestic advances grew at a higher rate by 27.6% compared to SCBs’ growth at 19.6%
Return on Assets at 0.88%
Capital Adequacy Ratio at 13.37%
Tier I Capital Ratio at 9.59%
Record Cash Recovery of `750 crore
Introduced Mobile Banking on 6th June 2011
20 New Branches and 293 ATMs added during Q1
System Driven NPA above `2 lakh implemented
Sustained Performance and Steady Growth
• Total business of the Bank rose to a level of `515165 crore as at June 2011, recording a y-o-y growth of 25%.
• Total deposits grew by 25.7% to reach `300150 crore. Bank’s domestic deposits grew higher at 25% compared to SCBs’ growth at 17.7%.
• Advances (net) recorded an equally good growth of 23.7% to reach `215015 crore. Credit to deposit ratio stood at 71.6%. Bank’s domestic advances grew at a higher rate at 27.6% compared to SCBs’ growth at 19.6%.
• The Bank’s overseas business constituted 4.41% of the total business, with `10855 crore under deposits and `11849 crore under advances.
• General uptrend in interest rate scenario has impacted the growth in CASA deposits. CASA deposits reached a level of `76105 crore as at June 2011. CASA deposits to domestic deposits constituted 26.31%.
• Savings deposits rose by 14% y.o.y to `60912 crore.
• The Bank added over 4.4 lakhs SB clientele during Q1FY12.
• Robust growth in business has improved the Business per Employee to `12.56 crore and Business per Branch increased to `157.21 crore as at June 2011.
• Net Profit for Q1 FY12 stood at `726 crore. Lower net profit for the Quarter is on account of
Increase in provision on NPA to the extent of `285 crore as per RBI guidelines issued during May 2011
Reversal of interest to the tune of `210 crore due to slippages under system driven NPA.
Decline in Trading Profit ( `300 crore) due to rising G-Sec Yield
• Without additional provisions on NPA, reversal of interest on account of system driven NPA and trading profit, comparable net profit works to `1521 crore, with a y.o.y growth of 50.2%
• Operating Profit stood at `1270 crore.
• Return on Average Assets (RoAA) for Q1FY12 stood at 0.88%.
• While Earnings Per Share (EPS) for the quarter was at `16.38, Book Value rose to `420.97 compared to `288.65 as at June 2010.
Income and Expenses
• Non-interest income of the Bank stood at `527 crore.
• Increase in operating expenses contained at 7.3%.
• With a Net interest income of `1793 crore, Net Interest Margin (NIM) for Q1FY12 was 2.42% as at June 2011.
Capital Adequacy
• Capital Adequacy Ratio at 13.37% compared to 12.44% as at June 2010. Tier I capital ratio rose to 9.59% as against 8.10% as at June 2010.
• The Bank has adequate headroom available under both Tier-I and Tier-II options to raise capital to support business growth momentum.
• The Bank’s gross NPA ratio increased to 1.67% (`3606 crore) compared to the gross NPA ratio of 1.46% (`2549 crore) as at June 2010.
• The increase in NPAs was due to migration to system based NPA recognition of above `2 lakh.
• Net NPA ratio stood at 1.34% (`2871 crore) as at June 2011.
• Cash recovery during the first quarter of FY12 aggregated to `750 crore, higher than `401 crore in the same period a year ago.
• The Bank has restructured 2562 accounts worth `419.5 crore during Q1 FY12.
Diversified Credit Portfolio
• The Bank’s credit growth at 24% during the period was higher than the industry’s growth and was broadbased across major segments, such as, Retail, Priority, MSMEs, industrial and infrastructure.
• The Bank’s retail lending portfolio recorded a 30.7% growth to reach `24042 crore.
• Outstanding housing loan portfolio grew by 50.9% to `15241 crore, constituting 63.4% of the total retail lending portfolio.
• The Bank’s credit to Micro, Small and Medium Enterprises (MSME) recorded a y.o.y growth of 17.1% to reach `37000 crore compared to a level of ` 31598 crore as at June 2010.
• Outstanding advances to the priority segments grew by 23.2% to reach `70973 crore.
• Credit to agriculture touched `30463 crore, signifying over 31.5% growth.
• Agriculture portfolio covers 31.36 lakh farmers.
• Continuing its lead among nationalized banks, the Bank’s education loan portfolio rose by 21% to `3590 crore, with a coverage of 1.93 lakh students.
Financial Inclusion
• Continuing with its commitment to higher coverage under financial inclusion, the Bank has so far mobilized 28.93 lakhs no-frill accounts since inception.
• During the quarter, the Bank has opened 12 rural branches to implement financial inclusion plan. 100 rural branches are planned for opening during the year.
• 19 Micro-Finance Branches have been opened to help urban poor. To spread financial literacy, 10 Financial Literacy and Credit Counselling Centres (FLCCs) are functioning in 4 States- Karnataka, Kerala, Tamil Nadu and Bihar.
• The Bank formed 3.51 lakhs Self Help Groups as at June 2011, with credit linking of 3.27 lakhs SHGs. The total outstanding under SHG finance amounted to ` 1060 crore.
• Extending credit under financial inclusion, the Bank has issued 3.24 lakh General Credit Cards, with a credit disbursement of `514 crore.
Enhanced Delivery Channels
During the first quarter, the Bank added 20 domestic branches, to take the total number branches to 3277 branches, including 4 overseas branches one each at London, Leicester, Hong Kong and Shanghai. With addition of 293 ATMs during the quarter, number of ATMs further increased to 2509 as at June 2011. Debit Card base rose to 61.33 lakhs as at June 2011.
Expanded Basket of New Tech Products
The Bank added another important tech-product CanMobile, for the convenience of the customers to do banking transactions through their mobile handsets. Mobile Banking product was inaugurated by Smt. Shyamala Gopinath, then Deputy Governor of RBI, on 6th June 2011 at Bangalore.
Goals for FY12
• Aiming at a Total Business Growth of over 20% y.o.y by March 2012.
• Over 250 new branches to be opened during FY12
Out of which 100 rural branches will be opened to implement Financial Inclusion Plan.
• Significantly increase ATM strength.
• Steps for commencing Data Warehousing initiated.
• Thrust on growing Retail Business- Retail Deposits and Retail Advances.
• Plans to open Branches at Manama, Bahrain, QFC-Qatar, South Africa, Germany, the USA, Brazil, Tanzania and Representative Office in Tokyo, Japan.
