Major Highlights- FY14
Net profit for Q4FY14 at 611 crore up by 49.4% over previous quarter (Q3FY14) net profit level of 409 crore.
Gross NPA Ratio down to 2.49% from 2.57% as at March 2013 and from 2.79% at Dec’13.
Net NPA ratio down to 1.98% from 2.18% as at March 2013 and from 2.39% at Dec’13.
Record Cash Recovery at 5494 crore compared to 4006 crore last year.
Recovery from technically written off accounts at 1247 crore (16.8% of outstanding amount).
Upgradation at 2853 crore compared to 852 crore last year.
Provision Coverage ratio increased to 60.11% from 57.39% at Dec’13.
Increase in CASA ratio (domestic) to 25.9% from 25.1% last year. Savings deposits increased to 85536 crore, with a y-o-y growth of 20.2%.
Robust growth in retail business- MSME (35%), MSE (38%), Retail Lending (45%), Housing Loans (50%), Vehicle Loans (62%) and other personal loans (58%).
Mandatory norms complied under Priority Credit, Agriculture, MSE (Accounts and Amount), Minority Communities and Weaker Section.
Core fee income (excluding treasury trading profit) up by 792 crore to 3269 crore (32% y.o.y) from 2477 crore last year.
Total Business up by 1.24 lakh crore (20.7% y.o.y) to 7.22 lakh crore.
Total Deposits up by 18.2% y-o-y to 4.21 lakh crore.
Advances (net) up by 24.3% y-o-y to 3.01 lakh crore.
Record addition of 1027 branches, taking the total to 4755
Record addition of 2786 ATMs, taking number to 6312.
100% onsite ATMs for all 3728 branches opened upto March 2013.
Record increase in E-transactions to 44% from 27% last year.
Total income for the full year increased by 16.8% y.o.y to 43480 crore.
Income from loans/advances increased by 16.7% to 28457 crore.
Net Int. Income for the FY14 at 8944 crore increased by 13.5% y.o.y and 39.6% Q.o.Q.
Operating Profit for the full year at 6796 crore, recorded an increase of 15.4% y.o.y and 38.3% Q.o.Q.
Total provision increased to 4358 crore in FY14 compared to 3018 crore in FY13 with a growth of 44.4%.
Net profit for the full year 2438 crore.
The Board has recommended a dividend of 110% for the full year, including an interim dividend of 65% declared in January 2014.
Thrust on Asset Quality/NPA reduction, Recovery, CASA, Retail Business & Fee Income.
Canara Bank total business crossed Rs. 7.22 lakh crore as on 31st Mar 2014 with net profit of Rs 2438 Crore for F… http://t.co/RO876HrzVs
— Canara Bank (@canarabanktweet) May 5, 2014
FY14: Business Performance
• Global Deposits of the Bank reached 420723 crore, with 18.2% y-o-y growth compared to 355856 crore as at March 2013.
• Global Advances (Net) reached 301067 crore, with 24.3% y-o-y growth compared to 242177 crore as at March 2013.
• Global Business of the Bank reached 721790 crore, with 20.7% y-o-y growth compared to 598033 crore as at March 2013.
• CD ratio of the Bank improved to 71.56% from 68.05% a year before.
• Overseas business constituted 5.7% of the total business. Total business of the 5 overseas branches increased to 41094 crore from 28786 crore a year ago.
• CASA ratio (domestic) improved to 25.9% from 25.1% last year.
• Savings deposits increased to 85536 crore, with a y-o-y growth of 20.2%.
• Clientele base increased to 5.55 crore from 4.70 crore last year. Over 85 lakh clientele added during the year.
• Business per Employee increased to 14.42 crore from 14.20 crore.
Profits and Profitability – Q4 FY14
• Operating profit for the quarter at 1882 crore was higher by 10.9% over Q4FY13 ( 1698 crore).
• Total provision made for the quarter was at 1271 crore compared to 972 crore provision made in Q4FY13. The provision for NPAs during the quarter was 802 crore as against 346 crore in Q4FY13.
• Net profit for Q4FY14 at 611 crore was higher compared to 409 crore for Q3FY14.
• Return on Assets for the quarter stood at 0.54%.
• Book Value rose to 520.04 compared to 490.56 as at March 2013.
Income and Expenses- Q4 FY14
• The Bank’s total income for Q4FY14 reached 11610 crore with a y.o.y growth of 22.6% over Q4 FY13 ( 9472 crore).
• Income from loans/advances reached 7683 crore, with a y.o.y growth of 26.5% compared to 6073 crore in Q4FY13.
• Non-interest income for the quarter was 1070 crore.
• Total expenses for the quarter was at 9728 crore compared to 7774 crore in Q4FY13.
• Operating expenses for the quarter was at 1723 crore compared to 1399 crore in Q4FY13.
• Net interest income for the quarter was 2535 crore improved by 21.3% over Q4FY13 ( 2091 crore).
• Net Interest Margin (NIM) improved to 2.27% sequentially compared to 2.21% as at Dec’13.
FY14: Income, Expenditure & Profit
• Operating Profit for FY14 increased by 15.4% to 6796 crore compared to 5890 crore last year.
• Total provision made for the FY14 was at 4358 crore compared to 3018 crore provision made last year. The provision for NPAs for FY14 was at 2135 crore against 1861 crore in FY13.
• Due to increased total provisioning, Net profit for the full year stood at 2438 crore.
• Total income for the full year increased by 16.8% to 43480 crore compared to 37231 crore in FY13.
• Income from loans/advances increased by 16.7% to 28457 crore compared to 24380 crore in FY13.
• The Bank's non-interest income (including treasury trading profit) for the whole year increased by 24.7% to 3933 crore compared to 3153 crore in FY13.
• Total expenses for FY14 increased to 36684 crore compared to 31341 crore in FY13.
• Operating expenses was at 6081 crore compared to 5142 crore in FY13.
• Net Interest Income at 8944 crore increased by 13.5% compared to 7879 crore in FY13.
Capital Adequacy
• Capital Adequacy Ratio as per Basel III norms stood at 10.63% (as against mandatory requirement of 9%). CET ratio at 7.41% (against mandatory requirement of 5%) and Tier I ratio of 7.68% (as against mandatory requirement of 6.5%).
• Adequate headroom available to raise capital to support business growth momentum. Government shareholding is at 69%.
• The Bank proposes to raise additional equity capital amounting to 1500 crore by way of Qualified Institutional Placement (QIP) or through preferential allotment during the current financial year.
Asset Quality
• The Bank has performed well in containing NPAs and making higher cash recoveries, despite continuing stress in the asset quality at the industry level.
• Gross NPA ratio at 2.49% came down from 2.57% as at March 2013.
• Net NPA ratio came down to 1.98% from 2.18% as at March 2013.
• Cash Recovery aggregated to a record level of 5494 crore compared to 4006 crore for FY13.
• Upgradation was 2853 crore compared to 852 crore last year.
• Recovery from technically written off accounts at 1247 crore accounted for 16.8% to outstanding amount. Recovery from loss assets amounts to 651 crore.
• The Bank’s outstanding restructured portfolio at 23205 crore constituted 7.64% of gross advances.
Diversified Credit Portfolio
• Outstanding advances to various priority segments reached 97762 crore, recording a y.o.y growth of 23.8%.
• Advances under agriculture portfolio increased by 19.6% to 48797 crore, covering over 48 lakh farmers. Credit to direct agriculture reached a level of 44268 crore with a y.o.y growth 17%. Credit outstanding under Kisan Credit Cards (KCCs) stood at 8031 crore covering 7.09 lakhs KCCs.
• Assisted 20.68 lakh women beneficiaries to the tune of 36669 crore, constituting 15.79% of ANBC as against the RBI norm of 5%.
• Credit to Micro, Small and Medium Enterprises (MSMEs) recorded a y.o.y growth of 35.2% to 50040 crore compared to 37016 crore last year.
• Credit to M&SE segments reached 36703 crore, with a growth of 37.9% y-o-y (against mandated 20% norm). Share of Micro credit in M&SE improved to 55.84% from 32.88% last year. The number of Micro Enterprises Accounts recorded a growth of 99.9% against mandated norm of 10%.
• Advances to Weaker Sections reached 29871 crore, with a y-o-y growth of 14%.
• Lending to Specified Minority Communities reached 17785 crore, with a y-o-y growth of 24%.
• Achieved the mandated targets in respect of Total Priority (42.52% against 40% norm), Agriculture (21.22% against 18% norm), Direct Agriculture (19.25% against 13.5% norm), credit to specified minority communities (18.19% against 15% norm) and weaker section (12.99% against 10% norm).
• Retail Lending Portfolio increased to 33529 crore, with a y-o-y growth of 45.2%.
• Outstanding Housing Loan Portfolio increased to 19684 crore, with a y-o-y growth of 49.8%. Vehicle and other personal loans recorded good growth of 62% and 58.2% respectively.
• Education Loan Portfolio increased to 4901 crore, with a y.o.y growth of 12.8% and covering over 2.50 lakh students.
A Holistic Approach to Financial Inclusion
• During the year, the Bank opened 257 branches in financial inclusion/ unbanked villages taking the total tally of FI branches to 532. Apart from branches, the Bank also has 514 Ultra Small Branches and engaged 2402 Business Correspondent Agents for financial inclusion activities.
• Under more than 2000 population category, the Bank covered all the allotted 1624 villages in 23 States.
• Basic Savings Bank Deposits (BSBD) accounts increased to 85.46 lakh, with outstanding deposit balance of 1647 crore.
• In built OD facility provided to 3.22 lakh beneficiaries, amounting to 114 crore. Provided life insurance coverage to 61247 group/BSBD account holders.
• Exposure under Self-Help Groups (SHGs) increased to 1902 crore under 92117 SHG accounts.
• Exposure under General Credit Cards increased to 832 crore under 3.89 lakh accounts.
• 60 Financial Literacy Centres have been set up to provide financial education to the poor and the common man.
• 20 Micro Finance Branches in urban areas are operational to cater to the needs of the urban poor. These branches have garnered a business of Rs.344 crore.
• 1500 Farmers Clubs opened by the Bank.
• Participating in the Direct Benefit Transfer system in 48 districts in first phase and opened 69232 accounts of DBT beneficiaries & Aadhaar seeded and mapped in 58931 accounts.
• Participated in DBT implementation in 78 districts (Phase II) and opened 60370 accounts DBT beneficiaries and Aadhaar seeded and mapped in 44419 accounts.
• Under DBTLPG, 40.38 lakh transactions done with a total credit of 250 crore received.
• Aadhaar seeding increased from 5.60 lakh as on 31.03.2013 to 39.92 lakh as on 31.03.2014.
Enhanced Delivery Channels
• The Bank has opened record 1027 branches during the year, taking total branch network to 4755, including 5 overseas branches.
• The Bank added 2786 ATMs y-o-y, taking the total number to 6312 as at March 2014. 100% onsite ATMs for all 3728 branches opened upto March 2013. The Bank’s debit card base rose to 1.51 crore compared to 95.53 lakhs as at March 2013. Apart from these, 102 e-lounges were established across major cities.
• Ratio of E-transactions increased to 44% compared to 27% as at March 2013.
New Products
• Loans against Property, Home Loan Plus, Housing Loan to High Networth Individuals, Special Housing Loan Scheme to NRIs and Housing loans to agriculturalists launched.
• CANARA MSE PRAGATI, CANARA MSE UNNATI, CANARA MSE SATKAR and FLAVOUR were launched for financing Micro and Small Enterprises with attractive lending terms.
• Vidya Turant – An online instant loan sanction facility to students and Vidya Sahay Scheme-bridge loan Scheme launched.
• Canara SB Gen-Y, Canara Jeevandhara, Canara Savings Defence Product, Canara Power Plus, Canara Privilege, Canara Payroll Package Scheme, Canara Dhanvarsha RD–Flex launched under deposit products.
Important Customer-friendly Technology Initiatives
• Canara Bank RuPay Debit Card, Canara Club Card –Debit, Canara Secured Credit Card, Canara Elite Debit Card and EMV Chip Cards under debit and credit cards launched.
• Canara e-infobook–an electronic passbook in English, Hindi and 4 Regional Languages –Kannada, Telugu, Tamil and Malayalam launched on mobile platforms-Android, Windows8 & iOS.
• Missed call to 092892 92892 to know account balance for domestic customers and 9192892 92892 for NRI customers and missed call to 092891 92891 to know last 3 transactions.
• Launched e-KYC service to reduce risk of identity fraud, documentary forgery and paperless KYC verification.
• Online Savings Bank and PPF account opening launched.
• Net Banking online User Creation and Login Password by Retail Customers.
• E-Hundi Collection through IMPS facility of NPCI and Institutional Fee Payment through ATM.
• Acceptance of donations through ATM, Net Banking and Mobile Banking for Religious & Philanthropic Trusts/Institutions.
• Enlarged Online payment facility through Aggregators for 17 Institutions.
• Implemented New Generation RTGS and continuous release of NEFT messages as per the directives of RBI.
Subsidiaries/Joint Ventures/Sponsored Entities and Foreign Branches
• Total business of 2 Regional Rural Banks (RRBs) sponsored by the Bank reached 34331 crore, comprising 17304 crore under deposits and 17027 crore under advances. 2 RRBs are profit making.
• All subsidiaries and sponsored entities of the Bank performed better in FY13.
• The Bank has 5 overseas branches one each at London, Leicester, Hong Kong, Manama and Shanghai. All foreign branches recorded improved performance during the year. Total business of the foreign branches reached 43050 crore.
Awards and Accolades
In recognition of the varied initiatives, the Bank was conferred with the following major awards during the year:
• Golden Peacock Award for Excellence in Corporate Governance 2013.
• Golden Peacock Award for excellence in CSR 2013.
• ‘SKOCH AWARD’ under Corporate Social Responsibility.
• C&MD was conferred Mahatma Gandhi Pravasi Gold Samman Award during the Global Achievers’ Conclave organized by NRI Welfare Society of India at House of Lords, London.
• ‘Jury Award for New Initiatives under MSME’ instituted by Chamber of Indian MSME under Banking Excellence Awards 2013.
• Best Bank Award for implementation of Rural Self Employment Training Institutes by the Ministry of Rural Development, Govt. of India.
• Life Time Achievement Awards, Global HR Excellence Awards (Award for Best Strategy in Line with Business) and 8th Employer Branding Awards 2014 (Award for Excellence in Training) instituted by World HRD Congress during February 2014.
• Global CSR Excellence and Leadership Awards 2014 from CSR World Congress.
• Best Home Loan Provider Award from Outlook Money for 2013.
• “Finger Print based Biometric Authorization for CBS” declared as winner for secure IT 2014 award.
• ‘Corporate Collateral Awards’ under various categories by Public Relations Council of India.
Goals: March 2015
• Aims to reach an aggregate business figure of 8.5 lakh crore, with a deposit growth of 16-17% and advances growth of 19-20% as at March 2015.
• Plans to take the number of branches from 4755 to 6000 and number of ATMs from 6312 to 10,000 by Mar’2015.
• Opening a branch at Johannesburg (South Africa) in May’14 and plans to open New York (USA) branch by June’14 and 8 other international centres by March 2015, such as, DIFC (Dubai), Qatar Financial Centre (Qatar), Frankfurt (Germany), Sao Paulo (Brazil), Dar-es-Salaam (Tanzania), Tokyo (Japan), Abuja (Nigeria) and Jeddah (Saudi Arabia).
• The Bank has identified 11 other centres, such as, Kingsbury, East Ham & Birmingham (U.K), Mexico City (Mexico), Istanbul (Turkey), Jakarta (Indonesia) Kigili (Rwanda), Singapore, Auckland (New Zealand), Sydney (Australia), Ontario (Canada) for opening in the medium term.
• Thrust on CASA, NPA and Recovery, Fee Income, Credit–Priority, SME and Retail to continue.
• Technology and business process reengineering initiatives.
• Project ‘Shikhar’ aimed at rejuvenating the Bank by focusing on several themes like energizing branches and customer service, increasing sales from branches, growing a robust asset base and revamping the operating model is in progress. Global Management Consulting firm viz., M/s Boston Consulting Group (India) Private Limited (BCG) is assisting the Bank in this transformation journey.
• M/s KPMG Advisory Services Ltd appointed for comprehensive assessment and to draw roadmap for the Bank’s Subsidiaries/ Associates.
• Aiming at Gross NPA ratio approx. 2% and Net NPA ratio approx. 1 -1.25%.
• To improve NIM to 2.50%.
