Tuesday, May 26, 2015

Canara Bank’s Q4 disappointing at Rs 613 crore

Canara Bank’s net profit remained flat at Rs 613 crore for the fourth quarter ended March 2015 compared to Rs 611 crore in the corresponding quarter last year. The gross non-performing assets (NPA) ratio as percentage of total assets increased to 3.89% in March 2015 quarter from 2.49% at March 2014.Net interest income or NII declined by 1.9% to Rs 2,486 crore in the March quarter against Rs 2,535 crore in the Q4 last year.


According to P.S.Rawat, Executive Director and acting MD & CEO of Canara Bank 'In FY 15-16 the bank is targeting 14% growth in loan disbursement if there is visible recovery in the manufacturing sector.' The bank has plans to raise Rs.3000 crore during the current fiscal.

 Other Highlights

Net profit at  2703 crore, up by 11% y.o.y.
Gross profit at  6950 crore, up by 2.3% y.o.y.
Total provisions at   4248 crore compared to  4358 crore in FY14
Non-interest income for FY15 at  4550 crore, up by 15.7% y-o-y.
ROAA for FY15 at 0.55% up from 0.54% last year.
ROE for FY15 at 11.06%, up from 10.59% last year.
NIM (Domestic) at 2.36% and NIM (Global) at 2.25%.
Total Business at  8.04 lakh crore, up by 11.4% y.o.y.
Total Deposits at  4.74 lakh crore, up by 12.6% y-o-y.
Advances (net) at  3.30 lakh crore, up by 9.6% y-o-y.
Continued growth in retail business- Priority Credit (21%), Agriculture (21%), MSME (21%), MSE (26%), Retail Lending (26%), Direct Housing Loans (29%), Vehicle Loans (22%) and other personal loans (80%).
Mandatory norms complied under Priority Credit, Agriculture, MSE (Accounts and Amount), Minority Communities, Weaker Section & women beneficiaries.
Gross NPA Ratio at 3.89% from 2.49% as at March 2014.
Net NPA ratio at 2.65% from 1.98% as at March 2014.
Record Cash Recovery at  5993 crore vis-à-vis  5494 crore last year.
Record increase in e-transactions to 50.21% from 43.84% last year.
930 branches and 2221 ATMs added, taking the total to 5682 branches and 8533 ATMs (the Highest ATM Network among Nationalized Banks).
Major Highlights: Q4 FY15
Net profit for Q4 FY15 at  613 crore.
Gross profit for Q4 FY15 at  1733 crore.
Total Provisions for Q4FY15 at  1120 crore.
Non-interest income for Q4FY15 at  1326 crore, up by 23.9% y-o-y.
Business Performance
•    Global Deposits reached  473840 crore, with 12.6% y-o-y growth compared to  420723 crore as at March 2014.
•    Global Advances (Net) reached  330036 crore, with 9.6% y-o-y growth compared to  301067 crore as at March 2014.
•    Global Business reached  803876 crore, with 11.4% y-o-y growth compared to  721790 crore as at March 2014.
•    Overseas business constituted 6% of the total business. Total business of 7 overseas branches increased to  51831 crore from  41094 crore last year.
•    CASA ratio (domestic) stood at 25.47%.
•    Clientele base increased to 6.58 crore from 5.55 crore last year. Over 1 crore clientele added during the year.
Income, Expenditure & Profit: FY15
•    Gross Profit increased by 2.3% to  6950 crore compared to  6796 crore last year. 
•    Total provision made was at  4248 crore compared to  4358 crore last year. The provision for NPAs was at  3771 crore against  2135 crore last year.
•    Net profit for the full year was at  2703 crore, posted a y.o.y growth of 10.8%.
•    Total income increased by 11.1% to  48300 crore.
•    Income from loans/advances increased by 12.7% to  32066 crore.
•    Non-interest income increased by 15.7% to  4550 crore.
•    Total expenses increased to  41350 crore compared to  36684 crore in FY14.
•    Operating expenses was at  7264 crore compared to  6081 crore in FY14. 
•    Net Interest Income at  9664 crore increased by 8% compared to  8944 crore in FY14.
Important Ratios: FY15
•    ROAA at 0.55% improved from 0.54% last year.
•    ROE at 11.06% improved from 10.59% last year.
•    Domestic Net Interest Margin (NIM) at 2.36% and Global NIM at 2.25%.
Income, Expenditure & Profit– Q4 FY15
•    Gross profit stood at  1733 crore.
•    Total provision made at  1120 crore compared to  1271 crore in Q4FY14. The provision for NPAs at  782 crore against  802 crore in Q4FY14.
•    Net profit stood at  613 crore for Q4FY15.
•    Total income increased to  12429 crore, with a y.o.y growth of 7.1%.
•    Income from loans/advances increased to  8093 crore, with a y.o.y growth of 5.3%.
•    Non-interest income at  1326 crore, grew by 24% y.o.y.
•    Total expenditure increased to  10697 crore compared to  9728 crore in Q4FY14.
•    Operating expenses increased to  2079 crore compared to  1723 crore in Q4FY14.
•    Net interest income stood at  2486 crore.
Capital Adequacy
•    Capital Adequacy Ratio as per Basel III norms stood at 10.56% (as against mandatory requirement of 9%). CET ratio at 7.37% (against mandatory requirement of 5%) and Tier I ratio of 8.02% (as against mandatory requirement of 6.5%). Government shareholding is at 69.91%. Adequate headroom available to raise capital to support business growth momentum.
Asset Quality
•    Reflecting continued stress in the asset quality at the industry level, Gross NPA ratio was at 3.89% from 3.35% as at Dec’14 and 2.49% at March 2014.
•    Net NPA ratio at 2.65% from 2.42% as at Dec’14 and 1.98% at March 2014.
•    Cash Recovery aggregated to a record level of  5993 crore compared to  5494 last year.
•    Upgradation was  2031 crore compared to  2853 crore last year.
•    Recovery from prudentially written off accounts at  1351 crore accounted for 18.29% to outstanding amount. Recovery from bad debts amounts to 80.04 crore.
•    The Bank’s outstanding restructured portfolio at  28371 crore constituted 8.62% of gross advances. 
Diversified Credit Portfolio
•    Achieved the mandated targets in respect of Total Priority (40.89% against 40% norm), Agriculture (20.36% against 18% norm), Direct Agriculture (17.79% against 13.5% norm), credit to specified minority communities (19.26% against 15% norm) and weaker section (13.37% against 10% norm). M&SE (26% y.o.y growth against 20% norm), Number of Micro Enterprises accounts (33% growth against 10% norm) & Credit to women beneficiaries (13.07% against 5% norm).
•    Outstanding advances to various priority segments recorded a y.o.y growth 20.9% to reach  118234 crore.
•    Advances under agriculture portfolio grew by 20.6% to  58868 crore.
•    Assisted 23.96 lakh women beneficiaries to the tune of  37783 crore, constituting 13.07% of ANBC as against 5% norm.
•    Credit to Micro, Small and Medium Enterprises (MSMEs) recorded a y.o.y growth of 21.1% to  60604 crore.
•    Credit to M&SE segments reached  46305 crore, with a growth of 26.2% y-o-y (against mandated 20% norm). Share of Micro credit in M&SE improved to 60% from 55.84% last year. The number of Micro Enterprises Accounts recorded a growth of 33.2% against mandated norm of 10%.
•    Advances to Weaker Sections reached  38649 crore, with a y-o-y growth of 29.4%.
•    Lending to Specified Minority Communities reached  22766 crore, with a y-o-y growth of 28%.
•    Retail Lending Portfolio increased to  42298 crore, with a y-o-y growth of 26.1%.
•    Outstanding Direct Housing Loan Portfolio increased to  16480 crore, with a y-o-y growth of 28.5%.
•    Vehicle loans and other personal loans recorded good growth of 21.6% and 80.3% respectively.
•    Education Loan Portfolio increased to  5636 crore, with a y.o.y growth of 15%, covering 2.73 lakh students.
Performance under Pradhan Mantri Jan Dhan Yojana (PMJDY)
•    Opened 64.76 lakh a/cs under PMJDY and secured a CASA deposit of  858 crore.
•    46.93 lakh Personalized RuPay debit Cards have been issued to PMJDY account holders.