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Canara Bank by jizhen1947

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									                     PERFORMANCE HIGHLIGHTS
                          For December 2008



www.canarabank.com                            Dec’08    Page 1
                                              Results
                            Canara .. at a Glance


                     A Premier Nationalised Bank in India
      Well spread network of 2726 branches
        over 1000 branches under CBS
        2016 ATMs spread across the country
      34 million strong clientele base
      Consistent track record of profit making .. Since inception
      Financial Supermarket - 9 subsidiaries/sponsored institutions/JVs
      Business Superbrand Status



www.canarabank.com                                                   Dec’08 Results
                                                                                      Page 2
                     Crossed Rs.3 Lakh Crore Business Milestone




www.canarabank.com                                          Dec’08 Results
                                                                             Page 3
                     FINANCIAL HIGHLIGHTS




www.canarabank.com                   Dec’08 Results
                                                      Page 4
                     ROBUST PROFIT GROWTH




www.canarabank.com                          Dec’08 Results
                                                             Page 5
                            BUSINESS PROFILE
                                                            Amt. in Rs. Crore


                                      Dec’08       Dec’07         Y-o-Y Gr

        Total Business              303759       242733              25%

        Total Deposits              174839       144152              21%

        Net Advances                128920        98581              31%

        C-D Ratio (%)                 73.74        68.39         535 bps

                         Total Business Grew y.o.y by 25%


www.canarabank.com                                                   Dec’08 Results
                                                                                      Page 6
                                   TOPLINE GROWTH


                                                                    174,839
               180,000

               160,000
                                                     154,072
                                       142,381
               140,000                                                  128,920
                         116,803
               120,000                                    107,238
                                            98,506
   INR Crore




               100,000
                              79,426
                80,000

                60,000

                40,000

                20,000

                     0
                            2006           2007          2008         Dec' 08

                                       Deposits                Advances




www.canarabank.com                                                              Dec’08 Results
                                                                                                 Page 7
                                                     TOTAL ASSETS

                                                                            203,026
                                 200,000                         180,529
                                 180,000
                                                       165,961

                                 160,000
                                           132,822
                                 140,000
                     Rs. Crore




                                 120,000
                                 100,000
                                  80,000
                                  60,000
                                  40,000
                                  20,000
                                      0
                                            2006        2007      2008      'Dec'08



                                  Total Asset size has crossed the Rs.200,000 crore mark




www.canarabank.com                                                                         Dec’08 Results
                                                                                                            Page 8
                               INCOME GROWTH

                                                             Amt. in Rs. Crore

                     Q3 FY09   Q3 FY08   Growth   9m FY09   9m FY08          Growth


Total Income            5383      4097   31.4%      13930     11911           16.9%


Int. Income             4625      3550   30.3%      12465     10413           19.7%


Int. Loans/Adv          3484      2468   41.2%       9238      7254           27.4%


Non-Int. Inc             757       546   38.6%       1465      1499            -2.3%




www.canarabank.com                                                    Dec’08 Results
                                                                                       Page 9
                       EXPENDITURE GROWTH
                                                        Amt. in Rs. Crore
                        Q3      Q3                 9m      9m
                      FY09    FY08     Growth    FY09    FY08           Growth


Total Exp.            4169    3339     24.9%    11239   9891            13.6%


Int. Exp.             3381    2616     29.3%    9053    7797            16.1%


Op. Expense            788     723      9.0%    2186    2094               4.4%


Staff Expense          504     445     13.3%    1347    1304               3.3%

Cost-Income
Ratio (%)             39.35   48.82   -947bps   44.82   50.89       -607 bps

 www.canarabank.com                                             Dec’08 Results
                                                                                 Page 10
                           PROFIT GROWTH
                                                   Amt. in Rs. Crore

                           Q3 FY09   Q3 FY08   9m FY09    9m FY08

  Operating Profit           1214       758      2691           2020
  Growth (%)                  60.2      10.5      33.2                8.6

  Provisions                  513       299      1338              919
  incl Prov for Taxation       160       100       300               240

  Net Profit                  702       459      1354           1101
  Growth (%)                  52.9      26.4      23.0             20.2

  RoAA (%)                    1.45      1.08      0.93             0.86

  EPS (Not Annualized)       17.11     11.19     33.01          26.85

www.canarabank.com                                         Dec’08 Results
                                                                            Page 11
                            EARNINGS PROFILE
                                                      Amt. in Rs. Crore


                           Q3 FY09   Q3 FY08    9m FY09     9m FY08

Net Int. Income               1244       934      3412             2615

Y-o-Y Growth (%)              33.2     -10.0       30.5            -11.9

Net Int. Margin
(NIM)                         2.75      2.41       2.75             2.41



                     NIM Improved by 34 bps Over Dec’07


www.canarabank.com                                           Dec’08 Results
                                                                              Page 12
                                   MAJOR COMPONENTS OF INCOME
    Interest Income continues to drive growth in income .. over 2/3rd of earnings from int on advances
    Contribution from fee-based business on a rise .. Fee Income up by 23% over 9m FY08


                         9m FY08 (Dec 07)                                 9m FY09 (Dec 08)

                                   Others                                           Others
                                                               Inter Bk Int
                                    5.9%                                             3.5%
          Inter Bk Int                                             1.2%
              2.4%                                              Fee Incm
         Fee Incm                                                  7.0%
            6.7%



                                                                      Investm ent
                     Investm ent                                        Incom e
                       Incom e                                           21.9%
                                            Int on Adv                                       Int on Adv
                        24.1%
                                               60.9%                                            66.3%




    www.canarabank.com                                                                                    Dec’08 Results
                                                                                                                           Page 13
                        EARNING ANALYSIS : 9m Ending Dec’08


                                                            Dec 08        Dec 07   Mar 08

  Interest Income
  as a % of Total Income                                     89.5%        87.4%    86.5%

  Interest on Advances
  as a % of Total Income                                     66.3%        60.9%    60.2%

  Fee Income
  as a % of Total Income                                      7.0%         6.7%     7.1%

  Treasury Income*
  as a % of Total Income                                     23.8%        27.3%    26.7%

 * Int on Inv. + Trading Profit + Profit on Revaluation + Dividend Incm



www.canarabank.com                                                                  Dec’08 Results
                                                                                                     Page 14
                               BREAK-UP OF OTHER INCOME
                                                                           Rs. in Crore
                                                Dec’08                  Dec’07
                                             Q3 FY09     9m FY09    Q3 FY08      9m FY08


     Total Other Income                        757        1465         546          1499
         Commission & Exchange                  137         441        117              405

          Profit from Exchange Trans             85         160         50              115

         Trading Profit                         344         326         96              334

         Dividend Income                          3          27         42              109

         Recovery in w/off A/cs                  80         220         81              201

         Other Misc. Income                     108         291        160              335
     of the above ..

     Fee Income                                361         978         267             797
                       Fee-based Income for the 9 months grew by 23% y.o.y
www.canarabank.com                                                            Dec’08 Results
                                                                                               Page 15
                                          MEASURES TO AUGMENT
                                        NON INTEREST INCOME


            Increased thrust on Fee Income growth

            Broadbasing of Fee Income sources

            Joint Ventures in Asset Management
                     and Bancassurance front
                     The new Joint Ventures are aimed at unlocking value
                     through synergies - vast branch network, clientele base and global expertise

            Retail sale of Bullion thru’ select branches

            On-line Trading Portal launched ..
                     First major PSB to launch the facility in association with
                     its wholly owned Subsidiary M/s GSTCL

www.canarabank.com                                                                        Dec’08 Results
                                                                                                           Page 16
                                 BREAK-UP OF PROVISIONS
                                                                            In Rs Crore

                                       Dec’08              Dec’07                    FY 08

                                    Q3 FY09   9m FY09   Q3 FY08   9m FY08             Annual



Total Provision &
Contingencies                      512.57 1337.57       299.00    919.26       1394.37
Of Which:


     Non Performing Advances        357.00    650.00    254.10    562.00           875.00

     Provision for Investments       -7.43    387.57    -50.26    120.94           148.82

    Taxation                        160.00       300    100.00    240.00           340.00



www.canarabank.com                                                           Dec’08 Results
                                                                                              Page 17
                              PROFITABILITY RATIOS

                                                                                   (In %)
                                Dec’07     Mar’08     Jun’08      Sep’08       Dec’08
                               (Q3 FY08)    (FY08)   (Q1 FY09)   (H1 FY09)   (Q3 FY09)


  Cost of Deposits                6.78      6.80        6.36        6.60            6.81

  Yield on Advances              10.22     10.22       10.06      10.50          10.69

  Cost of Funds                   6.12      6.24        5.90        6.07            6.23
  Yield on Funds                  8.18      8.31        8.12        8.39            8.57
  Spread                          2.06      2.07        2.22        2.32            2.34

  Net Interest Margin             2.41      2.42        2.57        2.70            2.75

                     Consistent Improvement in Spread and NIM

www.canarabank.com                                                           Dec’08 Results
                                                                                              Page 18
                                 PRODUCTIVITY RATIOS


                                                        Dec’08             Dec’07


  Business per Employee (Rs. Crore)                       7.22                 5.62

  Business per Branch (Rs. Crore)                      111.43              91.81

  Gross Profit per Employee (Rs. Lakh)                    8.53                 6.24

  Net Profit per Employee (Rs. Lakh)                      4.29                 3.40

                 Business Per Employee further moved up to Rs.7.22 crore
              and Business per Branch to Rs.111.39 crore as at December 2008
                     Highest Per Branch Business amongst Peers
www.canarabank.com                                                         Dec’08 Results
                                                                                            Page 19
                                     INVESTMENT PORTFOLIO
                                                                    Amt. in Rs. Crore
                                                              Dec’08          Dec’07

    Net Investments (Domestic)                                 52420            49736

                                                               37430            28447
    Held to Maturity                                          (71.4%)         (57.2%)

                                                               14506            21045
    Available for Sale                                        (27.7%)         (42.3%)

                                                                 484                  244
    Held for Trading                                           (0.9%)          (0.5%)

     Figures in the brackets are percentage shares in total




www.canarabank.com                                                             Dec’08 Results
                                                                                                Page 20
                          ASSET QUALITY



                                          Dec’08   Dec’ 07


    Gross NPA (Rs. Crore)                  2515      1525

    Gross NPA Ratio (%)                     1.94      1.54


    Net NPA (Rs. Crore)                    1653         873

    Net NPA Ratio (%)                       1.28      0.89



www.canarabank.com                                  Dec’08 Results
                                                                     Page 21
                         BASEL II AND CAPITAL STRATEGY


           CRAR of 13.41% at Dec’08.. well above the regulatory minimum

           Successfully migrated to Basel II Norms as on 31 st March 2008

           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



                           Comfortable Capital Adequacy Ratio



www.canarabank.com                                                    Dec’08 Results
                                                                                       Page 22
                      CAPITAL ADEQUACY – Basel II (Mar’08 Onwards)


            14%                Tier I capit al                    Tier 2 capit al


            12%
                                                                                                     9.0%
                                                          6 .3 3 %
                                                                                         5 .9 0 %
                                                                                                     Minimum
                                                                                                     Total
                                                                                         (7242)
                                                                             6 .2 4 %
            10%        5 .4 9 %
                       (3372)           3 .4 1 %          (6925)            (7250)                   CRAR
                                       (2940)
              8%


              6%
                                        7 .8 1 %                                          7 .5 1 %
                       7 .2 9 %                           7 .1 7 %
                                                                             7 .0 1 %                6.0%

              4%       (4483)          (6738)             (7850)            (8148)       (9217)      Minimum
                                                                                                     Tier I
                                                                                                     CRAR

              2%


              0%
                      M ar.0 5         M ar.0 6           M ar.0 7          M ar.0 8    Dec.0 8


              Total   12.78%           11.22%                            13.25%*        13.41%
                                                         13.50%
             CRAR
                 %

                                   (Figures in the brackets are amt. in Rs. Crore)




www.canarabank.com                                                                                   Dec’08 Results
                                                                                                                      Page 23
                          RISK MANAGEMENT
  Basel II Compliance

   Four Credit Risk Rating models in place – steps initiated to move to
  IRB approaches – PD of rated accounts computed –LGD estimated on
  sample data.
   ‘Risk Profile’ of the Bank, based on RBI templates, compiled on
  quarterly basis for placing before Board and submission to RBI.
   Implementation of K-VaR (Value at Risk) modules – the package
  ported in production server and results being observed for back testing –
  nearing completion.
   ALM on day-to-day basis for efficient liquidity management
   All the regulatory disclosures, required under Basel II norms, have
  been made along with the financial statement. Disclosure Committee
  constituted.
   Bank has a Capital Planning Committee- for assessing and monitoring
  capital requirement.


www.canarabank.com                                                  Dec’08 Results
                                                                                     Page 24
                                                   EARNINGS PROFILE

                                                                                                                          236.33
                                     38.17
                                                                                                               202.33
40                           34.65                                                                    197.83
                     32.76                                     33.01
35                                                                         200            171.19
          27.06                                    26.85                         146.15
30

                                                                           150
25

20
                                                                           100
15

10
                                                                            50

 5

 0                                                                           0

                              EPS (INR)                                                            BV (INR)
     M ar-05    M ar-06   M ar-07    M ar-08   .     'Dec 07     'Dec 08         Mar-05    Mar-06    Mar-07    Mar-08   Dec-08


          The Bank continued to sustain High levels of Earnings. Book Value and
           Earnings Per Share show consistent rise, year on year

          Book Value of Rs.202.33 at Mar’08 was after drawal of Rs.989 crore from Reserves
           towards additional staff cost (retiral benefits) as per AS 15
www.canarabank.com                                                                                                      Dec’08 Results
                                                                                                                                         Page 25
                              VALUE FOR STAKEHOLDERS


                       Dividend ... Progressive Return for the Shareholders



                     80%

                     70%                                             80%
                                                            70%
                     60%
                                                     66%
                     50%
                                             55%
                     40%             50%
                     30%
                           35%
                     20%

                     10%

                     0%

                                             DIVIDEND

                              FY03    FY04    FY05   FY06   FY07   FY08

www.canarabank.com                                                            Dec’08 Results
                                                                                               Page 26
                                    SHARE HOLDING PATTERN


                                                                                    As on Dec 31, 2008



                                            5.2%    1.6%
                                    2.5%
                             5.5%

                     12.0%


                                                                         73.2%




           Govt of India     FIIs    Resident Individuals   MFs   IFIs     Others




www.canarabank.com                                                                             Dec’08 Results
                                                                                                                Page 27
                     BUSINESS FOCUS




www.canarabank.com            Dec’08 Results
                                               Page 28
                         CORE DEPOSITS GROWTH
                                                     Amt. in Rs. Crore


                                       Dec’08    Dec’07      Y-o-Y Gr

   Core Deposits                     124099     103507            20%

   Savings Deposits                    39987     34878            15%

   CASA per Branch                      19.11     17.39            10%

   Deposits Clientele (Mn)              30.02     27.73       2.3 Mn

                 Highest Per Branch CASA Deposit among Peers
                               CASA Ratio at 31%

www.canarabank.com                                           Dec’08 Results
                                                                              Page 29
                                CREDIT FOCUS
                                                                   Amt. in Rs. Crore

                                         Dec’08               Dec’07       Y-o-Y Gr


    Net Advances                       128920             98581                31%

    Agriculture Credit                    18904               16328              16%

    SME Advances                          21440               17025              26%

    Retail Lending                        17970               17187                 5%

    Industrial Advances                   50966               42336              20%
    Infrastructure Advances               16135               11269              43%

                          Well Diversified Credit Portfolio
                           Focus on Productive Sectors
www.canarabank.com                                                          Dec’08 Results
                                                                                             Page 30
                         PRIORITY SECTOR
                                               (Amt. in Rs. Crore)



                                Dec’08     Dec’07       Y-o-Y Gr


   Priority Credit O/s          45972      39368            17%
   % to ANBC                    43.39      40.23

   Agriculture Adv O/s          18904      16328            16%
   % to ANBC                    17.46      16.69

   SME Advances O/s             21440      17025            26%


www.canarabank.com                                       Dec’08 Results
                                                                          Page 31
                     To Expand Credit



www.canarabank.com                      Dec’08    Page 32
                                        Results
                        INITIATIVES… To Expand Credit

         Robust credit growth by 31% y.o.y to Rs.128920crore at Dec’08
   Riding on high credit growth, the Bank has revised its credit target for
        FY09 to Rs.1,35,000 crore, indicating a y.o.y growth of 26%
   Meeting emergent needs of corporates and MSMEs and housing,
        auto, infrastructure and other sectors, hit by credit crunch
   Resorting to effective utilization of resources- deposits, refinance,
        market borrowings etc.
   Upward revision of delegation of powers of various functionaries
   Continuing thrust on increasing exposure to all productive sectors-
        Agriculture, SMEs, manufacturing and services
   Special incentives for MSME sector
   Extensive support to NBFCs and Mutual Funds


www.canarabank.com                                                     Dec’08 Results
                                                                                        Page 33
                     INITIATIVES… To Expand Credit

RETAIL LENDING PUSH

 Intensive focus on housing loans

 Attractive offerings for housing loans upto Rs.20 lakhs

     … with nil processing fee and free insurance cover

 Central Processing Units at major centres

       …. for reducing turnaround time

 Tie-ups with Auto Companies and Dealers for enhancing Auto Loans


www.canarabank.com                                           Dec’08 Results
                                                                              Page 34
                         SPREAD MANAGEMENT
Spread Management
 Challenges on Sustaining Net Interest Margin
      … southward movement in interest rates
 Reduction in BPLR - from 14% to 13.25 (w.e.f 10th Nov’08)
                         from 13.25% to 12.50% (w.e.f 1st Jan’09)
 Reduction in deposit rate from the peak of 10.5% to 9% from 1.1.2009
Measures
 Reduction in High Cost Deposits
    ….strict adherence to card rates
   Intensive mobilization of Core Deposits, including CASA
   Deployment of resources in better yielding productive assets
   Focus on Corporates, formation of Prime Corporate Credit Wing
   Intensive thrust on credit monitoring and containing slippages, creation of an
    exclusive Credit Monitoring Wing
www.canarabank.com                                                     Dec’08 Results
                                                                                        Page 35
                                COST MANAGEMENT
Cost Management
 Effective Cost Management to protect ‘Operating Margin’
 Exercising Restraint/Control on ‘Other Operating Expenses’
 Reducing wastages and optimizing use of overhead costs
 Economizing cost and rental for branches/offices/ATMs
 Optimizing the utilization of ATMs
        •    Rationalization/Relocation of ATMs
        •    Increasing number of Debit Cards and hits per ATM
        •    Encouraging Customers to use ATMs and other e-banking channels

 Reducing burden, improving pool of non-interest income by Mar’09
 Enterprise-wide ‘Cost Saving and Cost Control’ awareness

www.canarabank.com                                                            Dec’08 Results
                                                                                               Page 36
                          Beyond
                     Numbers


www.canarabank.com                 Dec’08 Results
                                                    Page 37
                             EXPANDING THE REACH

                                               Dec’08         Dec’07      Y-o-Y Incr

        Branch Network                           2726          2644                      82

        ATM Strength                             2016          1667                   349

        Addition of 48 Branches in the year so far
           Commissioned a Branch at SHANGHAI, CHINA

        ATM Tally of over 2000.. Highest amongst Nationalized Banks
            (812 Off-Site ATMs, including 183 ATMs at important Railway Stations)

        150 e-kiosks for Railway Ticket Booking
           Access to over 30,000 networked ATMs across the country

www.canarabank.com                                                           Dec’08 Results
                                                                                              Page 38
                          EXPANDED CLIENTELE BASE



                                          Dec’08     Dec’07   Y-o-Y Incr


      Clientele Base in Mn                  33.98     31.74        2.24


         - No of Deposit a/cs (Mn)          30.02     27.73        2.29


          - No of Borrowal a/cs (Mn)         3.96      4.01


                         34 million strong clientele base
          Special Savings Campaign- Aug-Oct’08: Added Over 7 Lakh A/Cs

www.canarabank.com                                               Dec’08 Results
                                                                                  Page 39
                              INFOTECH PROGRESS

                                            Dec’08       Dec’07       Y-o-Y Incr

 Core Banking Branches                        1049           331              718

 ATMs                                         2016         1667               349

 AWB Branches                                 2037         1833               204

 IMB Branches                                 1358         1157               201

 NEFT and RTGS                        All Branches         1693            1029

 Debit Card Base (Lakh)                      53.63         30.17          23.46

                        76% Business under Core Banking Solution
                     Largest ATM Network amongst Nationalized Banks


www.canarabank.com                                                       Dec’08 Results
                                                                                          Page 40
                                    FUTURE PLANS

              Aiming at a Total Business of Rs.3,25,000 crore by Mar’09
                       … 23% y.o.y growth under Deposits
                       … 26% y.o.y growth under Advances

              Continued focus on Core Business Growth

              Leveraging the new brand identity to improve standard of
               customer service and attract younger clientele

              Strengthening overseas presence

               RBI approval for 10 overseas Branches/offices obtained…
               Johannesburg, Frankfurt, Muscat, Manama, QFC-Qatar, Leicester, New
               York, Sao Paulo, Dar-er-Salam and Tokyo


www.canarabank.com                                                         Dec’08 Results
                                                                                            Page 41
www.canarabank.com   Dec’08    Page 42
                     Results

								
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