Canara Bank

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PERFORMANCE HIGHLIGHTS For December 2008
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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

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Crossed Rs.3 Lakh Crore Business
Milestone
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FINANCIAL HIGHLIGHTS
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ROBUST PROFIT GROWTH
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BUSINESS PROFILE
Amt. in Rs. Crore
Total Business Grew y.o.y by 25
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TOPLINE GROWTH
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TOTAL ASSETS
Total Asset size has crossed the Rs.200,000
crore mark
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INCOME GROWTH
Amt. in Rs. Crore
10
EXPENDITURE GROWTH
Amt. in Rs. Crore
11
PROFIT GROWTH
Amt. in Rs. Crore
12
EARNINGS PROFILE
Amt. in Rs. Crore
NIM Improved by 34 bps Over Dec07
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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 FY09 (Dec 08)
9m FY08 (Dec 07)
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EARNING ANALYSIS 9m Ending Dec08
Int on Inv. Trading Profit Profit on
Revaluation Dividend Incm
15
BREAK-UP OF OTHER INCOME
Rs. in Crore
Fee-based Income for the 9 months grew by 23
y.o.y
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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

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BREAK-UP OF PROVISIONS
In Rs Crore
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PROFITABILITY RATIOS
(In )
Consistent Improvement in Spread and NIM
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PRODUCTIVITY RATIOS
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
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INVESTMENT PORTFOLIO
Amt. in Rs. Crore
Figures in the brackets are percentage shares in
total
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ASSET QUALITY
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BASEL II AND CAPITAL STRATEGY

• CRAR of 13.41 at Dec08.. well above the
  regulatory minimum
• Successfully migrated to Basel II Norms as on
  31st 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
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CAPITAL ADEQUACY Basel II (Mar08 Onwards)
9.0 Minimum Total CRAR
(7242)
(6925)
(3372)
(7250)
(2940)
6.0 Minimum Tier I CRAR
(6738)
(8148)
(9217)
(7850)
(4483)
Total CRAR
13.25
13.41
12.78
11.22
13.50
(Figures in the brackets are amt. in Rs. Crore)
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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.

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EARNINGS PROFILE

• 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 Mar08 was after
  drawal of Rs.989 crore from Reserves
• towards additional staff cost (retiral
  benefits) as per AS 15

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VALUE FOR STAKEHOLDERS
Dividend ... Progressive Return for the
Shareholders
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SHARE HOLDING PATTERN
As on Dec 31, 2008
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BUSINESS FOCUS
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CORE DEPOSITS GROWTH
Amt. in Rs. Crore
Highest Per Branch CASA Deposit among Peers CASA
Ratio at 31
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CREDIT FOCUS
Amt. in Rs. Crore
Well Diversified Credit Portfolio Focus on
Productive Sectors
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PRIORITY SECTOR
(Amt. in Rs. Crore)
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Initiatives...
To Expand Credit
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INITIATIVES To Expand Credit

• Robust credit growth by 31 y.o.y to
  Rs.128920crore at Dec08
• 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

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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

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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
  Nov08)
• from 13.25 to 12.50 (w.e.f 1st
  Jan09)
• 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

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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 Mar09
• Enterprise-wide Cost Saving and Cost Control
  awareness

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Beyond Numbers
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EXPANDING THE REACH
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EXPANDED CLIENTELE BASE
34 million strong clientele base Special Savings
Campaign- Aug-Oct08 Added Over 7 Lakh A/Cs
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INFOTECH PROGRESS
76 Business under Core Banking Solution Largest
ATM Network amongst Nationalized Banks
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FUTURE PLANS

• Aiming at a Total Business of Rs.3,25,000 crore
  by Mar09
• 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

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THANK YOU