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June 2010
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Major HighlightsMajor Highlights
Riding on High Growth Trajectory- Consistent Growth in Business and Profit
Return on Assets at 1.55%
NIM crosses the 3% mark …at 3.01%
Both Gross NPA and Net NPA in absolute and ratio terms have come down compared to March 2010, net NPA at 1%
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Major HighlightsMajor Highlights
Recovery and Upgradation together overshoot Slippages
CBS coverage increased to 2681 branches as on 16th July 2010, accounting for 96% of total business
All branches will be under CBS before 31st July 2010
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TOTAL BUSINESSTOTAL BUSINESS
Total Business added Rs.78324 Crore Y.o.Y
55% Growth in 2 Years
3,34,325
2,66,122
4,12,649
100,000
150,000
200,000
250,000
300,000
350,000
400,000
Jun-08 Jun-09 Jun-10
Rs. C
rore
CAGR at 24.4%
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1,93,657
1,56,295
2,38,855
50,000
75,000
100,000
125,000
150,000
175,000
200,000
225,000
250,000
Jun-08 Jun-09 Jun-10
Rs. C
rore
TOTAL DEPOSITSTOTAL DEPOSITS
CAGR at 23.7%
53% Growth in 2 Years
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1,40,668
1,73,794
1,09,827
25,000
50,000
75,000
100,000
125,000
150,000
175,000
Jun-08 Jun-09 Jun-10
Rs. C
rore
NET ADVANCESNET ADVANCES
CAGR at 25.5%
58% Growth in 2 Years
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CONSISTENT PROFIT GROWTHCONSISTENT PROFIT GROWTH
NET PROFT
555
1013
123
0
100
200
300
400
500
600
700
800
900
1,000
1,100
Jun-08 Jun-09 Jun-10
Rs. C
rore
CAGR at 187%
Over Rs.1000 Cr Net Profit in a Single Quarter
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VALUE FOR STAKEHOLDERSVALUE FOR STAKEHOLDERS
55%
66% 70%
80% 80%100%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
DIVIDEND
FY05 FY06 FY07 FY08 FY09 FY10
Dividend ... Progressive Return for the
Shareholders
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PERFORMANCE HIGHLIGHTSPERFORMANCE HIGHLIGHTSJune 2008 – June 2010June 2008 – June 2010
Jun’2010 Jun’2009 Jun’2008 % Gr Jun’10
over Jun’08
Net Profit 1013 555 123 723.6%
Operating Profit 1483 921 704 110.7%
Net Interest Income 1728 1291 1019 69.6%
Total Business 412649 334325 266122 55.1%
Total Deposits 238855 193657 156295 52.8%
Net Advances 173794 140668 109827 58.2%
(Amt. in Rs. Crore)
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KEY PROFITABILITY RATIO: LAST 3 YEARSKEY PROFITABILITY RATIO: LAST 3 YEARS
Jun’ 2010 Jun’ 2009 Jun’ 2008
NIM (%) 3.01 2.70 2.57
RoAA (%) 1.55 1.02 0.27
Capital Adequacy Ratio (%) 12.44 13.59 12.66
Cost of Deposits (%) 5.69 6.48 6.36
Yield on Advances (%) 9.35 10.05 10.06
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ROBUST PROFIT GROWTH ROBUST PROFIT GROWTH
Q1 FY10 Q1 FY11
1013
555
0
200
400
600
800
1000
Net Profit(Rs. in Crore)
Incr
ease
of 82
.5%
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INCOME GROWTHINCOME GROWTH: : Q1 FY 11Q1 FY 11
Amt. in Rs. Crore
Jun’10 Jun’09 Growth
Total Income 5895 5032 17.1%
Interest Income 5161 4558 13.2%
Interest from Loans/Adv 3794 3425 10.8%
Non Interest Income 734 474 55.0%
Robust Growth of 55% in Non-Interest Income
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EXPENDITURE GROWTH: Q1 FY 11EXPENDITURE GROWTH: Q1 FY 11
Amt. in Rs. Crore
Jun’10 Jun’09 Growth
Total Expenditure 4412 4111 7.3%
Interest Expenditure 3433 3267 5.1%
Operating Expenses 978 844 15.9%
Cost-Income Ratio (%) 39.75 47.80 -805bps
Favourable Cost-Income Ratio Below Benchmark Level
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NET INTEREST INCOME : Q1 FY 11NET INTEREST INCOME : Q1 FY 11
Amt. in Rs. Crore
Jun’10 Jun’09
Net Interest Income 1728 1291 Y-o-Y Growth 33.8% 26.7% Net Interest Margin (%) 3.01 2.70
ROBUST GROWTH IN NET INTEREST INCOME
SIGNIFICANT JUMP IN NIM BY 31 bps
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DECLINE IN COST-INCOME RATIO (%) DECLINE IN COST-INCOME RATIO (%)
49.30 47.80
39.75
2023262932353841444750535659
'Jun-08 'Jun-09 'Jun-10
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PROFIT GROWTH : Q1 FY11PROFIT GROWTH : Q1 FY11Amt. in Rs. Crore
Jun’10 Jun’09
Operating Profit 1483 921Growth 61.0% 31.0%
Provisions 470 366
Net Profit 1013 555Growth 82.5%
RoAA (%) 1.55% 1.02
EPS (Rs.) (Not Annualized) 24.72 13.54
Buoyant Bottomline and Healthy Profitability Ratios
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Interest Income continues to drive growth in income …over 2/3rd of earnings from interest on advances/loans Robust growth under Non-Interest Income
MAJOR COMPONENTS OF INCOME
Q1 FY11 (Jun’10)Q1 FY11 (Jun’10) Q1 FY 10 (Jun’09)Q1 FY 10 (Jun’09)
Investment Income26.2%
Int on Adv64.4%
Others9.4%
Investment Income21.8%
Int on Adv68.1%
Others10.1%
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BREAK-UP OF OTHER INCOME
Jun’10 Jun’09
Total Other Income 733.97 473.57 Commission & Exchange 163.78 172.09
Profit from Exchange Trans 74.35 51.23
Trading Profit 223.95 28.16
Dividend Income 35.38 13.81
Recovery in w/off A/cs 88.00 79.08
Other Misc. Income 148.51 129.20
Amt. in Rs. Crore
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MEASURES TO AUGMENTMEASURES TO AUGMENT NON INTEREST INCOMENON 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.
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EARNINGS PROFILEEARNINGS PROFILE
38.17
50.55
73.69
13.54
24.72
0
10
20
30
40
50
60
70
80
EPS (INR)
Mar-08 Mar-09 Mar-10 . Jun-09 Jun-10
202.33
244.87
305.83
258.25
330.83
100
150
200
250
300
BV (Rs)
Mar-08 Mar-09 Mar-10 . Jun-09 Jun-10
The Bank continued to sustain high levels of earnings. Book Value and Earnings Per Share show consistent rise, year on year
The Bank continued to sustain high levels of earnings. Book Value and Earnings Per Share show consistent rise, year on year
EPS for June Quarters (Not Annualized)
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SHARE HOLDING PATTERN
As on June 30, 2010
11.1%
7.4%4.6% 2.8% 1.0%
73.2%
Govt of India FIIs Insurance Companies Resident Individuals MFs Others
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BUSINESS PROFILEBUSINESS PROFILE
Jun’10 Jun’09 Y-o-Y Gr
Aggregate Business 412649 334325 23.4%
Total Deposits 238855 193657 23.3%
Net Advances 173794 140668 23.6%
CD Ratio (%) 72.76 72.64
Amt. in Rs. Crore
Business Growth of Rs.78324 CroreDomestic Business Constituted 96.6%
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CASA DEPOSITS GROWTHCASA DEPOSITS GROWTH
Amt. in Rs. Crore
29% GROWTH IN CASAHighest CASA per Branch among
Peers
Jun’10 Jun’09 Y-o-Y Gr
CASA Deposits 69350 53854 28.8
Savings Deposits 53565 41756 28.3
CASA per branch 22.66 19.66
Deposits Clientele (Mn) 33.03 31.07
1.96 Mn
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CREDIT FOCUSCREDIT FOCUSAmt. in Rs. Crore
Jun’10 Jun’09 Y-o-Y Gr
Priority Sector Credit 57621 50242 14.7%
Retail Lending 23703 19819 19.6%
Housing 10101 7975 26.7%
Infrastructure Advances 40173 21027 91.1%
Adv Clientele (Mn) 4.46 4.33
Well Diversified Credit PortfolioFocus on Productive Sectors
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PRIORITY SECTORPRIORITY SECTOR
Jun’10 Jun’09 Y-o-Y Gr
Priority Credit O/s 57621 50242 14.7%
Agriculture Adv O/s 23128 20677 11.9%
MSME Advances O/s 31597 23675 33.5%
Amt. in Rs. Crore
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PIONEERING EDUCATION LOANPIONEERING EDUCATION LOAN
Education Loans up by 24.7% y.o.y
Outstanding Education Loans as at Jun ‘10 Rs.2,976 crore
The portfolio covers over 1.71 lakhs students
On-line Education Loan application in web portal
Number ONE amongst Nationalised BanksIn Outstanding Education Loans
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‘‘CANARA NAYEE DISHA’ CANARA NAYEE DISHA’ … DRIVING 100% FINANCIAL INCLUSION… DRIVING 100% FINANCIAL INCLUSION
Mobilised over 75,000 No-frill Accounts during Q1 Cumulative No-frill Accounts 22.54 lakhs
Achieved Total Financial Inclusion
in all the 26 Lead Districts
Sanctioned over 2 lakhs General Credit Cards since inception
9 Exclusive Micro-Finance Branches across India to help Urban Poor
Cumulative SHG Tally up at 3.26 Lakhs .. Credit Linked 2.82 Lakhs
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PROFITABILITY RATIOSPROFITABILITY RATIOS
Jun’10 Jun’09
Cost of Deposits 5.69 6.48
Yield on Advances 9.35 10.05
(In %)
79 bps Decline in Cost of Deposits
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PRODUCTIVITY RATIOSPRODUCTIVITY RATIOS
Jun’10 Jun09
Business per Employee (Rs. Crore) 10.17 8.10
Business per Branch (Rs. Crore) 134.81 122.06
Gross Profit per Employee (Rs. Lakh) 14.63 8.92
Net Profit per Employee (Rs. Lakh) 9.99 5.38
JUMP IN BUSINESS PER EMPLOYEEHighest Per Branch Business among Peers
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Amt. in Rs. Crore
Figures in the brackets are percentage shares in total
INVESTMENT PORTFOLIO INVESTMENT PORTFOLIO
Jun’10 Jun’09
Net Investments (Domestic) 71354 59255
Held to Maturity
57309
(80.3%)
38121
(64.3%)
Available for Sale
13642
(19.1%)
20784
(35.1%)
Held for Trading
403
(0.6%)
351
(0.6%)
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ASSET QUALITYASSET QUALITY
Jun’10 Jun’ 09
Gross NPA (Rs. Crore) 2549 2463
Gross NPA Ratio (%) 1.46 1.74
Net NPA (Rs. Crore) 1729 1812
Net NPA Ratio (%) 1.00 1.29
Provision Coverage Ratio at 78.01%
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COMFORTABLE CAPITAL POSITION COMFORTABLE CAPITAL POSITION
Adequate Headroom for Capital Augmentation
CRAR of 12.44% at Jun’10
…well above the regulatory minimum
of 9%
Medium Term Objective .. CRAR of above 12%
…still undiluted 73.17% GoI Holding in
the Bank
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8.10%8.54%8.01%7.01%7.17%
4.34%
4.89%6.09%6.24%6.33%
-1%
1%
3%
5%
7%
9%
11%
13%
15%
Mar.07 Mar.08 Mar.09 Mar.10 Jun.10
Tier I capital Tier 2 capital
9.0% Minimum Total CRAR
6.0% Minimum Tier I CRAR
Total CRAR
%
CAPITAL ADEQUACY – Basel IICAPITAL ADEQUACY – Basel II
13.50% 13.25%* 14.10*
* Mar’08 onwards - as per Basel II
13.43* 12.44*
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EXPANDING THE REACHEXPANDING THE REACH
Jun’10 Jun’09 Y-o-Y Incr
Branch Network 3061 2739 322
ATM Strength 2017 2019
Card Base (In Lakh) 55.50 48.10 7.40
Strategic Initiatives
Focus on Expanding Domestic Branch Network
Addition of 15 branches during FY11
Opened a branch at Leicester and Representative Office at Sharjah
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4th OVERSEAS BRANCH AT LEICESTER, UK4th OVERSEAS BRANCH AT LEICESTER, UK
C&MD Shri A.C Mahajan inaugurated the Branch on 12.04.2010
in presence of Lord Mayor of Leicester.
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REPRESENTATIVE OFFICE AT SHARJAH, UAEREPRESENTATIVE OFFICE AT SHARJAH, UAE
C&MD Shri A.C Mahajan inaugurated the Rep Office at Sharjah on 20.06.2010
in the presence of His Excellency Shri M K Lokesh, Indian Ambassador to UAE.
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EXPANDED CLIENTELE BASEEXPANDED CLIENTELE BASE
Jun’10 Jun’09 Y-o-Y Incr
Clientele Base in Mn 37.49 35.40 2.09
- No of Deposit a/cs (Mn) 33.03 31.07 1.96
- No of Borrowal a/cs (Mn) 4.46 4.33
Over 37 million strong and growing clientele base
20 lakh Deposit Accounts Added
Over 37 million strong and growing clientele base
20 lakh Deposit Accounts Added
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INFOTECH PROGRESSINFOTECH PROGRESS
16July’10 Jun’09
Core Banking Branches 2681 1058
Anywhere Banking Branches 2091 2078
Internet & Mobile Banking Branches 2681 1362
NEFT and RTGS All Branches
96% Business under Core Banking Solution
100% CBS before 31st July 2010
96% Business under Core Banking Solution
100% CBS before 31st July 2010
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NO.1 BANK IN KARNATAKANO.1 BANK IN KARNATAKA
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FUTURE PLANS FUTURE PLANS
Aiming at a Total Business of Rs.5,00,000 crore by
Mar’11
… Rs.2,85,000 crore under Deposits
… Rs.2,15,000 crore under Advances
Over 200 new branches to be opened during the year
Continued focus on Core Business Growth and Strong Fundamentals
Cover all branches under CBS before 31st July 2010
Plans to Open Branches at Manama and QFC-Qatar
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