www.canarabank.
com
Page 1
Canara Bank
Prepared byRAJESH MAITY AJAY ABRAHAM VINAY KADAM PRAJWAL PATHAK MUKESH PANDEY AMRUTA PHANSE SUMIT DAS MANIGANDAN MUDHALIAR F091026 M091003 F091020 M091024 M091023 H091016 F091008 F091029
KAPIL.R.JADHAV
SHIV KUMAR SINGH HANSRAJ MAHAJAN
www.canarabank.com
M091048
M091037 F091024
Page 2
History
Founded as 'Canara Bank Hindu Permanent Fund' in 1906, by late Sri. Ammembal Subba Rao Pai, a philanthropist. Became Canara Bank Ltd. after nationalization on July 19, 1969. Founding Principles 1. To remove Superstition and ignorance. 2. To spread education among all to sub-serve the first principle.
3. To inculcate the habit of thrift and savings.
4. To transform the financial institution not only as the financial heart of the community but the social heart as well. 5. To assist the needy.
6. To work with sense of service and dedication.
7. To develop a concern for fellow human being and sensitivity to the surroundings with a view to make changes/remove hardships and sufferings.
www.canarabank.com Page 3
Canara .. at present
A Premier Nationalised Bank in India
Well spread network of 2739 branches Over 2000 ATMs spread across the country Nearly 35 million strong cross-section clientele base
Consistent track record of profit making .. Since inception
Financial Supermarket - 9 subsidiaries/sponsored institutions/JVs Foray into High Growth Areas, viz., Insurance and Asset
Management with Global Majors
Pan India Presence
www.canarabank.com Page 4
SHARE HOLDING PATTERN
As on June 30, 2009
5.5% 10.5%
3.1%
6.5%
1.2%
73.2%
Govt of India
FIIs
Resident Individuals
MFs
IFIs
Others
www.canarabank.com
Page 5
Deposit Schemes
CASA: Current A/c Nil
Savings A/c
Term Deposit: Fixed Deposit
3.50%
7.00%
Kamadhenu Deposit
Recurring Deposit Non Resident Deposits: NRO Deposits NRE Deposit
www.canarabank.com
Depends on Period & Amt.
7.00% (Quarterly Compounding)
7.00% 3.71%
Page 6
Loans
Personal Loans:
Education Loan Canara Mobile Housing Loan Home Improvement Loan
Teachers Loan
Doctors Choice Canara Pension Loan Canara Budget Swarna Loan
Canara Mortgage
Canara Rent Canara Trade (Retail Loan) Industrial & Service Sector Loans: Term Loan Working Capital Finance Infrastructure Finance
www.canarabank.com
Export Finance
Page 7
ROBUST PROFIT GROWTH
Net Profit
(Rs. in Million)
12000 10000 8000 6000 4000 2000 0
10525.8
7015
Increase of 50%
Q3 FY09
Q3 FY10
www.canarabank.com
Page 8
BUSINESS PROFILE
Amt. in Rs. Crore
Mar09
Mar08
Y-o-Y Gr
Aggregate Business Total Deposits Net Advances CD Ratio (%)
325112
186893 138219 73.96
261310
154072 107238 69.60
24%
21% 29% 237bps
Robust Business Growth Of Over Rs.68000 Cr
Domestic Business Constituted 97.7%
www.canarabank.com Page 9
TOPLINE GROWTH
186,893
180,000 160,000 140,000
Rs. Crore
154,072 142,381 107,238 138,219
120,000 100,000 80,000 60,000 40,000 20,000 0
98,506
2007
2008 Deposits
2009 Advances
Page 10
www.canarabank.com
INCOME GROWTH: Q1 FY 10
Amt. in Rs. Crore
Jun09
Jun08
Growth
Total Income Interest Income
Interest from Loans and Adv
5032 4558
3425 474
4099 3731
2700 369
22.8% 22.2%
26.8% 28.5%
Non-Interest Income
Robust Growth of Over 28% in Non-Interest Income
www.canarabank.com Page 11
EXPENDITURE GROWTH: Q1 FY 10
Amt. in Rs. Crore
Jun09
Jun08
Growth
Total Expenditure Interest Expenditure Operating Expenses Cost-Income Ratio (%)
3991 3267
724
3395 2711
684
17.5% 20.5%
5.8%
41.00
49.30
830bps
www.canarabank.com
Page 12
PROFIT GROWTH : Q1 FY10
Amt. in Rs. Crore
Jun09
Jun08
Operating Profit
Growth
1041
48%
704
15%
Provisions
Incl. Prov. for Wage Settlement
486
75
581
--
Net Profit
Growth RoAA (%) EPS (Rs.) (Not Annualized)
www.canarabank.com
555
353% 1.02 13.54
123
- 49% 0.27 2.99
Page 13
BREAK-UP OF OTHER INCOME
Amt. in Rs. Crore
Jun09
Total Other Income
Commission & Exchange
Profit from Exchange Trans Trading Profit
Jun08
368.51
148.71 80.31 -21.91 9.44 60.00 91.96
473.57
172.09 51.23 28.16 13.81 79.08 129.20
Dividend Income
Recovery in w/off A/cs Other Misc. Income
www.canarabank.com
Page 14
MEASURES TO AUGMENT
NON INTEREST INCOME
Increased thrust on Fee Income Broadbasing of Fee Income sources Cross Selling of Insurance Mutual Fund Products On-line Trading Services Other Traditional Services- LCs, Guarantees, DDs and
others.
www.canarabank.com
Page 15
PRODUCTIVITY RATIOS
Jun09 Jun08
Business per Employee (Rs. Crore)
8.10 122.06 10.09 5.38
6.25 98.71 6.61 1.15
Business per Branch (Rs. Crore) Gross Profit per Employee (Rs. Lakh) Net Profit per Employee (Rs. Lakh)
Highest Per Branch Business among Peers
www.canarabank.com Page 16
COMFORTABLE CAPITAL POSITION
CRAR of 13.59% at Jun09
well above the regulatory minimum of 9%
Medium Term Objective .. CRAR of above 12% One of the best Capital Position amongst its Peers
still undiluted 73.17% GoI Holding in the Bank Adequate Headroom for Capital Augmentation
www.canarabank.com Page 17
PLANS FOR FY10
Aiming at a Total Business of Rs.4,00,000 crore by Mar10
Rs.2,25,000 crore under Deposits Rs.1,75,000 crore under Advances
Over 200 new branches to be opened during the year Continued focus on Core Business Growth Further CBS rollout during the year- branches and service
units
Increasing technological automation Strengthening overseas presence
RBI approval for 11 overseas Branches/offices obtained Johannesburg, Frankfurt, Muscat, Manama, QFC-Qatar, Leicester, New York, Sao Paulo, Dar-er-Salam, Tokyo and
www.canarabank.com Page 18
INITIATIVES To Expand Credit
RETAIL LENDING PUSH
Intensive focus on housing loans Attractive offerings for housing loans upto Rs.30 lakhs
RoI fixed at 8.25% for 12 months and 9.25% for next 48 months
Focus on Retail Asset Hubs-Central Processing Units
. for reducing turnaround time
www.canarabank.com
Page 19
SPREAD MANAGEMENT
Spread Management
Challenges on Sustaining Net Interest Margin
southward movement in interest rates
Reduction in BPLR - from 12.50% to 12.00% (w.e.f 1st April 2009 ) Reduction in deposit rate from the peak of 10.5% to 7.5% at present
Measures
Intensive mobilization of Core Deposits, including CASA Substitution of high cost preferential rate deposits with low cost
term deposits
Deployment of resources in better yielding productive assets Focus on Corporates Intensive thrust on credit monitoring and containing slippages
www.canarabank.com Page 20
www.canarabank.com
Page 21
