Bangalore-based PSU entity Canara Bank has reported a mere 1.9% growth in net profit at Rs 807 crore for the first quarter ended June 30, 2014 compared to Rs 792 crore in the corresponding quarter last year.The Bank has recorded net profit in excess of Rs 800 crore after eight quarters mainly due to higher provisioning."Our provision coverage ratio is now 60% from 58% a year ago," said R K Dubey, Chairman and Managing Director of Canara Bank.
Other major result highlights are:-
Cash Recovery at 2019 crore in Q1 more than doubled compared to 888 crore last year.
Gross NPA Ratio down to 2.67% from 2.91% as at June 2013.
Net NPA ratio down to 2.03% from 2.48% as at June 2013.
Recovery from technically written off accounts at Rs.867 crore (11.7% of outstanding amount). Upgradation during the quarter was at Rs.535 crore.
Provision Coverage ratio increased to 60.10% from 58.18% last year.
Core Fee income (excluding Treasury Profit) up by 18% to 936 crore from 795 crore last year.
Total Business up by over Rs.1.00 lakh crore (15.8% y-o-y) to Rs.7.32 lakh crore.
Total Deposits up by 12.3% y-o-y to 4.29 lakh crore.
CASA ratio (domestic) at 24.15%, same level as last year.
Advances (net) up by 21.2% y-o-y to 3.03 lakh crore.
Continued robust growth in retail business- MSME (33%), MSE (33%), Retail Lending (43%), Housing Loans (41%) and other personal loans (69%), of which Vehicle Loans (59%).
255 branches and 197 ATMs added during the Q1FY15, taking the total to 5010 branches and 6509 ATMs.
Enhanced E-transactions to 44.34% from 33.94% last year.
Income from loans/advances for Q1 FY15 rose by 22.6% to 7905 crore.
Net Interest Income for Q1 FY15 at 2429 crore, increased by 22% y-o-y.
Net Interest Margin (NIM) (Domestic) improved to 2.42% from 2.33% in Q1FY14 and 2.40% in Q4FY14. NIM (Global) improved to 2.30% from 2.21% in Q1 FY14 and 2.27% in Q4FY14.
With a total provision of Rs.988 crore in Q1 FY15, Net profit for the quarter increased to 807 crore.
Income and Expenses- Q1 FY15
• Total income for Q1FY15 increased to Rs. 11728 crore, with a y-o-y growth of 11.6%.
• Income from loans/advances increased to Rs.7905 crore from 6450 crore for Q1FY14.
• While non-interest income for the quarter stood at Rs.1027 crore, core fee income (excl Treasury Profit) increased by 18% to 936 crore.
• Total expenses for the quarter increased by 15.4% to 9933 crore.
• Net interest income for the quarter recorded a healthy growth of 22% y-o-y to 2429 crore.
• Net Interest Margin (NIM) (Domestic) improved to 2.42% from 2.33% in Q1FY14 and 2.40% in Q4FY14. NIM (Global) improved to 2.30% from 2.21% in Q1 FY14 and 2.27% in Q4FY14.
The Chairman said the Bank would be raising Rs 3,000 crore via Qualified Institutional Placement (QIP) issue during the second quarter to shore up its Tier-I Capital.
Profits and Profitability – Q1 FY15
• Total provision for the quarter was at Rs.988 crore compared to Rs.1106 crore for Q1FY14 and 1271 crore for Q4FY14. The provision for NPAs during the quarter was Rs.1125 crore.
• With an operating profit of Rs 1795 crore, Net profit for Q1FY15 increased by 32.1% to 807 crore sequentially over Q4FY14.
• While Earnings per Share (EPS) for the quarter was at 18.21, Book Value rose to 521.68 compared to 509.48 as at June 2013.
Business Performance
• Global Business of the Bank rose to Rs.731940 crore compared to Rs.631863 crore as at June 2013, with a y-o-y growth of 15.8%.
• Global Deposits of the Bank increased to Rs.428976 crore compared to Rs.381972 crore as at June 2013, with a growth of 12.3%.
• Global Advances (Net) reached a level of Rs.302964 crore compared to Rs.249891 crore as at June 2013, with a growth of 21.2%.
• The Bank’s domestic business constituted over 94% of the total business. Total business of the foreign branches increased to Rs.41194 crore from Rs.35480 crore y-o-y.
• The Bank’s CASA deposits to domestic deposits was maintained at 24.15%, same level as last year. The Bank’s savings deposits reached 81594 crore as at June 2014 compared to 73938 crore as at June 2013.
• The Bank’s clientele base increased to 5.65 crore, comprising 4.98 crore under deposit and 67 lakh under borrowal accounts. Over 66 lakh clientele added during the year.
• While Business per Employee increased to 14.42 crore from 13.89 crore last year, Business per Branch stood at 146.1 crore.
Capital Adequacy under New Basel III norms
• Capital Adequacy Ratio as per Basel III norms stood at 10.23% (as against mandatory requirement of 9%). CET ratio at 7.12% (against mandatory requirement of 5.5%) and Tier I ratio of 7.39% (as against mandatory requirement of 7%).
• Adequate headroom available to raise capital to support business growth momentum. Government shareholding is at 69%.
Asset Quality
• The Bank performed better under asset quality. The Bank’s gross NPA stood at 8160 crore, with a gross NPA ratio of 2.67% lower compared to 2.91% last year.
• Net NPA stood at 6150 crore, with a net NPA ratio of 2.03% lower compared to 2.48% last year.
• Cash Recovery during Q1FY15 aggregated to a record 2019 crore compared to 888 crore for the same quarter a year ago.
• The Bank’s outstanding restructured portfolio at 24000 crore constituted 7.8% for the gross advances.
Diversified Credit Portfolio
• Outstanding advances to various Priority Segments rose to 103694 crore compared to 83085 crore as at June 2013, registering a growth of 24.8% y-o-y.
• Advances under Agriculture portfolio increased by 24.6% to reach 53956 crore, achieving 18.66% to ANBC as against mandated target of 18%.
• Credit to Micro, Small and Medium Enterprises (MSMEs) reached 49316 crore, with a y-o-y growth of 32.7%.
• Credit to M&SE reached 37186 crore, with a y-o-y growth of 33.4% (against mandated norm of 20%). The number of micro enterprises accounts recorded a growth of 63.3% against mandated norm of 10%.
• Credit to women beneficiaries increased to 37173 crore (15.95% against 5% norm).
• Retail lending portfolio increased to 36197 crore, with a y-o-y growth of 43.5%. The share of retail credit in net credit increased to 12.62% compared to 10.71% last year.
• Outstanding housing loan portfolio increased to 20347 crore, constituting over 56% of the total retail lending portfolio.
• Other Personal Loans grew by 69% to 10804 crore, of which, Vehicle loans registered a growth of 59.5% to reach 3335 crore.
Other major result highlights are:-
Cash Recovery at 2019 crore in Q1 more than doubled compared to 888 crore last year.
Gross NPA Ratio down to 2.67% from 2.91% as at June 2013.
Net NPA ratio down to 2.03% from 2.48% as at June 2013.
Recovery from technically written off accounts at Rs.867 crore (11.7% of outstanding amount). Upgradation during the quarter was at Rs.535 crore.
Provision Coverage ratio increased to 60.10% from 58.18% last year.
Core Fee income (excluding Treasury Profit) up by 18% to 936 crore from 795 crore last year.
Total Business up by over Rs.1.00 lakh crore (15.8% y-o-y) to Rs.7.32 lakh crore.
Total Deposits up by 12.3% y-o-y to 4.29 lakh crore.
CASA ratio (domestic) at 24.15%, same level as last year.
Advances (net) up by 21.2% y-o-y to 3.03 lakh crore.
Continued robust growth in retail business- MSME (33%), MSE (33%), Retail Lending (43%), Housing Loans (41%) and other personal loans (69%), of which Vehicle Loans (59%).
255 branches and 197 ATMs added during the Q1FY15, taking the total to 5010 branches and 6509 ATMs.
Enhanced E-transactions to 44.34% from 33.94% last year.
Income from loans/advances for Q1 FY15 rose by 22.6% to 7905 crore.
Net Interest Income for Q1 FY15 at 2429 crore, increased by 22% y-o-y.
Net Interest Margin (NIM) (Domestic) improved to 2.42% from 2.33% in Q1FY14 and 2.40% in Q4FY14. NIM (Global) improved to 2.30% from 2.21% in Q1 FY14 and 2.27% in Q4FY14.
With a total provision of Rs.988 crore in Q1 FY15, Net profit for the quarter increased to 807 crore.
Income and Expenses- Q1 FY15
• Total income for Q1FY15 increased to Rs. 11728 crore, with a y-o-y growth of 11.6%.
• Income from loans/advances increased to Rs.7905 crore from 6450 crore for Q1FY14.
• While non-interest income for the quarter stood at Rs.1027 crore, core fee income (excl Treasury Profit) increased by 18% to 936 crore.
• Total expenses for the quarter increased by 15.4% to 9933 crore.
• Net interest income for the quarter recorded a healthy growth of 22% y-o-y to 2429 crore.
• Net Interest Margin (NIM) (Domestic) improved to 2.42% from 2.33% in Q1FY14 and 2.40% in Q4FY14. NIM (Global) improved to 2.30% from 2.21% in Q1 FY14 and 2.27% in Q4FY14.
The Chairman said the Bank would be raising Rs 3,000 crore via Qualified Institutional Placement (QIP) issue during the second quarter to shore up its Tier-I Capital.
Profits and Profitability – Q1 FY15
• Total provision for the quarter was at Rs.988 crore compared to Rs.1106 crore for Q1FY14 and 1271 crore for Q4FY14. The provision for NPAs during the quarter was Rs.1125 crore.
• With an operating profit of Rs 1795 crore, Net profit for Q1FY15 increased by 32.1% to 807 crore sequentially over Q4FY14.
• While Earnings per Share (EPS) for the quarter was at 18.21, Book Value rose to 521.68 compared to 509.48 as at June 2013.
Business Performance
• Global Business of the Bank rose to Rs.731940 crore compared to Rs.631863 crore as at June 2013, with a y-o-y growth of 15.8%.
• Global Deposits of the Bank increased to Rs.428976 crore compared to Rs.381972 crore as at June 2013, with a growth of 12.3%.
• Global Advances (Net) reached a level of Rs.302964 crore compared to Rs.249891 crore as at June 2013, with a growth of 21.2%.
• The Bank’s domestic business constituted over 94% of the total business. Total business of the foreign branches increased to Rs.41194 crore from Rs.35480 crore y-o-y.
• The Bank’s CASA deposits to domestic deposits was maintained at 24.15%, same level as last year. The Bank’s savings deposits reached 81594 crore as at June 2014 compared to 73938 crore as at June 2013.
• The Bank’s clientele base increased to 5.65 crore, comprising 4.98 crore under deposit and 67 lakh under borrowal accounts. Over 66 lakh clientele added during the year.
• While Business per Employee increased to 14.42 crore from 13.89 crore last year, Business per Branch stood at 146.1 crore.
Canara Bank celebrates Bank Nationalization Day, 19th July, 2014 by open-ing 108 Financial Inclusion Branches. pic.twitter.com/WLuBShDmUg
— Canara Bank (@canarabanktweet) July 21, 2014
Capital Adequacy under New Basel III norms
• Capital Adequacy Ratio as per Basel III norms stood at 10.23% (as against mandatory requirement of 9%). CET ratio at 7.12% (against mandatory requirement of 5.5%) and Tier I ratio of 7.39% (as against mandatory requirement of 7%).
• Adequate headroom available to raise capital to support business growth momentum. Government shareholding is at 69%.
Asset Quality
• The Bank performed better under asset quality. The Bank’s gross NPA stood at 8160 crore, with a gross NPA ratio of 2.67% lower compared to 2.91% last year.
• Net NPA stood at 6150 crore, with a net NPA ratio of 2.03% lower compared to 2.48% last year.
• Cash Recovery during Q1FY15 aggregated to a record 2019 crore compared to 888 crore for the same quarter a year ago.
• The Bank’s outstanding restructured portfolio at 24000 crore constituted 7.8% for the gross advances.
Diversified Credit Portfolio
• Outstanding advances to various Priority Segments rose to 103694 crore compared to 83085 crore as at June 2013, registering a growth of 24.8% y-o-y.
• Advances under Agriculture portfolio increased by 24.6% to reach 53956 crore, achieving 18.66% to ANBC as against mandated target of 18%.
• Credit to Micro, Small and Medium Enterprises (MSMEs) reached 49316 crore, with a y-o-y growth of 32.7%.
• Credit to M&SE reached 37186 crore, with a y-o-y growth of 33.4% (against mandated norm of 20%). The number of micro enterprises accounts recorded a growth of 63.3% against mandated norm of 10%.
• Credit to women beneficiaries increased to 37173 crore (15.95% against 5% norm).
• Retail lending portfolio increased to 36197 crore, with a y-o-y growth of 43.5%. The share of retail credit in net credit increased to 12.62% compared to 10.71% last year.
• Outstanding housing loan portfolio increased to 20347 crore, constituting over 56% of the total retail lending portfolio.
• Other Personal Loans grew by 69% to 10804 crore, of which, Vehicle loans registered a growth of 59.5% to reach 3335 crore.
