CANARA BANK ANNOUNCES EXCELLENT Q1 RESULTS
CANAR
Major Highlights – Q1FY16
è CASA grew by 11.53%
y.o.y to
109684 crore and CASA ratio (domestic) improved to 24.62% y.o.y
from 24.15% last year.
è Sustained good growth
in retail business (y.o.y)- MSME (25.32%), MSE (27.48%), Retail Lending (15.97%),
Housing (direct) (27.47%), Vehicle (14.12%), Education (15.54%) and Other Personal
loans (40.88%).
è Operating Expenses
reduced by 2.12% y.o.y. Interest expenses, including interest paid on deposits contained
around March 2015 quarter level.
è Net Interest Margin
(NIM) (Domestic) at 2.35% and NIM (Global) at 2.21%.
è Cost-income ratio
down to 44.80% from 48.06% last year.
è Gross NPA Ratio
stood at 3.98% from 3.89% at March 2015 and 2.67% as at June 2014.
è Net NPA ratio at 2.74%
from 2.03% as at June 2014.
è Provision Coverage
ratio at 59.02%.
è 26 branches and 506
ATMs added during the Q1FY16, taking the global tally of branches to 5708 and ATMs
to 9039.
è Enhanced E-transactions
to 51.10% from 44.34% last year.
Income and Expenses- Q1 FY16
·
Total interest expenses
increased moderately by 4.25% y.o.y to
8623
crore. Interest expenses, including interest paid on deposits, contained around
March 2015 quarter level.
·
Net Interest Margin
(NIM) (Domestic) stood at 2.35% and NIM
(Global) was at 2.21%.
·
Cost-income ratio came down by 326 basis points to 44.80%
from 48.06% last year.
Profits and Profitability – Q1 FY16
·
Total provision for the quarter was at
1525 crore
compared to
988 crore for Q1FY15. The
provision for NPAs during the quarter was
1143 crore compared to
1125 crore for Q1FY15.
·
Gross profit at
2004 crore increased by 11.62% y.o.y and Net profit
for Q1FY16 stood at
479 crore, on account of higher provisioning.
·
While
Earnings per Share (EPS) for the
quarter was at
9.63, Book Value increased to
548.45 compared to
521.68 as at June 2014.
Business
Performance
·
The
Bank’s overseas business constituted
6.44% of the total business. Total business of the foreign branches increased to
51245 crore from
41194 crore a year ago.
·
CASA
deposits increased
by 11.53% y.o.y to
109684 crore and CASA share (domestic) improved to 24.62% y.o.y
from 24.15% last year.
·
The
Bank’s clientele accounts increased to 6.75 crore, comprising 6 crore
under deposit accounts and 75 lakh under borrowal accounts. Over 1.1 crore clientele
accounts added y.o.y
Capital
Adequacy under New Basel III norms
·
Capital Adequacy Ratio as per
Basel III norms stood at
10.75% (as against mandatory requirement of 9%). CET ratio at 7.65% (against
mandatory requirement of 5.5%) and Tier I ratio of 8.28% (as against mandatory
requirement of 7%). The Bank in April 2015 raised
1520 crore equity capital.
·
Adequate headroom available to raise capital to support business
growth momentum. Government shareholding is at 64.48%.
Asset
Quality
·
Gross
NPA ratio stood at 3.98% compared to 3.89% at March 2015 and 2.67% as at
June 2014. Net NPA ratio stood at 2.74% compared to 2.03% last year. Provision
coverage ratio stood at 59.02%. Cash
Recovery during Q1FY16 aggregated
to
1056 crore.
·
The
Bank’s outstanding restructured
portfolio at
28704 crore, constituting 8.73% of the gross
advances.
Diversified
Credit Portfolio
·
Outstanding
advances to various Priority Segments
rose to
121978 crore compared to
103694 crore as at June 2014, with a growth of 17.63%
y-o-y.
·
Advances
under Agriculture portfolio increased by 12.91% to
60924 crore, achieving
19.26% to ANBC as against the mandated target of 18%.
·
Credit
to Micro, Small and Medium Enterprises
(MSMEs) increased to
61804 crore, with a y-o-y growth of 25.32%.
·
Credit to M&SE reached
47403 crore, with a y-o-y
growth of 27.48% (against mandated norm of 20%). The number of micro enterprises accounts recorded a growth of 29.50%
against mandated norm of 10%.
·
Credit to women beneficiaries increased to
39818 crore, accounting
for 13.77% to ANBC against 5% norm.
·
Retail
lending portfolio increased to
41976 crore,
with a y-o-y growth of 15.97%. The share of retail credit in domestic credit increased
to 13.91% compared to 12.72% last year.
·
Outstanding housing (direct) grew by 27.47% y.o.y
to
17261 crore. Total
housing constitutes 52% of the total retail lending portfolio.
·
Other
Personal Loans grew by 40.88% to
10522 crore and Vehicle loans registered a growth of 14.12% to
3806 crore.
·
Education loan portfolio rose to
5830 crore, with a y-o-y growth of 15.54%, covering 2.75
lakh students.
A
Holistic Approach to Financial Inclusion (FI)
Pradhan Mantri Jan Dhan Yojana (PMJDY)
Ø
Issued 68.26 lakh Rupay Debit Cards, out of which linked 54.25 lakh
personalized Rupay Debit Cards to PMJDY accounts.
Ø
Covered all allotted SSAs/Wards by opening of 807 brick &
mortar branches and engaging 2459 BC agents.
Ø
The Bank has enrolled 1.41 crore residents under Aadhaar and 96.73
lakh accounts seeded with Aadhaar number.
Social Security Schemes
Ø
51.86 lakhs enrolments have been done so far under both Pradhan
Mantri Jeevan Jyoti Bima Yojana (PMJJBY-15.75 lakhs) & Pradhan Mantri
Suraksha Bima Yojana (PMSBY - 36.11 lakhs). Under Atal Pension Yojana (APY) the
Bank has mobilized over 56,000 applications so far.
Financial Inclusion
Ø
Banking facilities provided in all allotted 10049 villages.
Ø
Total Financial Inclusion branches increased to 807 and 2459 BC
agents engaged for financial inclusion activities. 479 Ultra Small Branches
(USBs) are also functioning to provide banking facilities.
Ø
All financial Inclusion branches have mobilized a business
of
9347 crore, comprising total
deposits of
4221 crore (
2157 crore CASA deposits) and advances of
5126 crore.
Ø
The Bank has formed 119 farmers club during the current FY.
Ø
7440 Self Helf Groups (SHGs) were formed
and 7335 SHGs credit linked to the extent of
147 crore. Exposure under SHGs increased to
2488 crore under 116057 SHGs.
Ø
Business Correspondent agents have done 9.55 lakh transactions
amounting to
162 crore during
the current FY.
Ø
65 Financial Literacy Centres (FLCs) opened at District/ Block
levels. 2.53 lakh persons have been educated and 20195 persons have been
counseled upto June 2015 this year.
Enhanced
Delivery Channels
Ø
As at June 2015, the Bank had 5708 branches, including 7 overseas
branches.
Ø
The Bank added 506 ATMs during the quarter, taking the total
number of ATMs to 9039 as at June 2015. The Bank’s debit card base rose to 2.71
crore. As at June 2015, the Bank had 147 hi-tech e-lounges in major centres for
customers to do banking transactions themselves. The ratio of e-transactions increased to 51.10%
compared to 44.34% last year.
Customer
Friendly New Products/ InfoTech Initiatives
Ø
Web Package for Social Security Schemes of Government of India
released.
Ø
Facilities to accept subscription of Social Security Schemes of
Govt. of India through ATM, SMS and Internet Banking.
Ø
Facility for sending CASA/Term Deposit balance certificate through
e-mail for customers.
Ø
Facility for sending SMS to customers for maintaining minimum
balance in the account.
Ø
Tool for Proactive Risk Management enabled for ATMs.
Awards and Accolades
In recognition of the varied initiatives, the Bank was conferred with
the following awards during the quarter.
·
Golden Peacock Business Excellence Award
(GPBEA), 2015, by the Institute of Directors, New Delhi.
·
Special Award for the Best Financial Institution – Gold, 2015, by the Federation of Karnataka Chamber of Commerce &
Industry (FKCCI), Bengaluru.
·
Order
of Merit for
SME Enablement during 2014-15 by SKOCH
Group.
·
Reserve Bank Rajbhasha Shield for
effective implementation of Official Language in Region 'C' for the year
2013-14.
Goals for FY16
Ø
Thrust
on Retail Business & Asset Quality –
CASA, Retail Deposits, Retail Credit, Fee Income and NPA Management and
improving operational ratios, such as,
NIM, RoA, RoE and Cost-to-Income.
Comments
Post a Comment