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CANARA BANK . Creating Value For Investors. Brought to you by Bsplindia.com . Third largest Public Sector Bank in India with an asset base of Rs.90644 Crore and market capitalization Rs.5453 Crore. Over 2440 branches and 265 lakh accounts with one of the widest retail networks.

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canara bank

CANARA BANK

Creating Value

For Investors

Brought to you by Bsplindia.com

summary
Third largest Public Sector Bank in India with an asset base of Rs.90644 Crore and market capitalization Rs.5453 Crore.

Over 2440 branches and 265 lakh accounts with one of the widest retail networks.

Growth in credit with CAGR of 30% for past 3 years with relatively low Net NPA at 3.28% due to aggressive recovery efforts.

Cash recoveries Targeting Rs.650 crore during the current fiscal.

Sustained Treasury Income and adequate cushion for Interest Rate reversals.

Summary
summary1
Focus on better yielding Retail Assets accounting for 15.57% of the net credit. Retail assets at Rs.6369 Crore.

Focus on Technology Upgradation/ Hi-tech Banking

Subsidiaries are a source of Income and no more a cause of concern with all the past burdens taken care of.

NIM sustained at around 3.37% coupled with improved operational efficiency (March 2003 at 3.53%).

RoA of 1.28%, Favorably placed among peer banks.

Summary
creating wealth
Creating Wealth

Date Price Market Capitalisation

Dec 2002 Rs. 35.00 Rs.1435 Crore

Oct 2003 Rs.133.00 Rs.5453 Crore

Wealth Created in 10 Months Rs.4018 Crore

Annualized Growth 236%

banking sector strengthening fundamentals
Strengthening of Prudential Norms and Market Discipline

Adoption of Appropriate International Standards and Benchmarks

Human Resource Development as a Catalyst of Transformation.

Focus on Technology upgradation

Banking Sector –Strengthening Fundamentals
corporate objectives 2004
Efficiency

Profitability & Productivity

Organizational Effectiveness

Customer Centric

Hi-tech Banking

Corporate Objectives 2004
plans for 2004
Global Business to reach Rs.131000 Crore at a growth rate of 15.55% - Rs.82000 Crore of Deposits and Rs.49000 Crore of Advances.

Thrust on low cost deposits and 10% growth in client base.

Retail Lending expansion at the rate of 35% of incremental advances

Hi-Tech Banking – 500 ATMs, 2000 computerized branches, 500 branches under Anywhere Banking, RTGS & SFMS

Target of launching Mobile & Internet Banking and Debit Cards already achieved.

Plans for 2004
slide8

Renewed Strategy

Retail Lending

  • High Potential
  • Improvement in spreads
  • Better Asset Quality

Thrust on Technology

  • Reduction in operational cost
  • Better customer service
  • Matching competitive forces

Treasury Management

  • Effective Funds Management
  • Improving Yield
  • Ability to hedge Market Risk

NPA Management

  • Better Asset Quality
  • Higher recoveries
  • Better profitability
slide9

A Snap Shot

Bank with a distinguished history of over 97 years of Continuous Profitability

As of 30/09/2003

Investments

RS.37300 Crore

Advances

Rs.40908 Crore

Deposits

Rs.75396 Crore

Net NPA 3.28%

of

Net Advances

Total Assets

Rs.90644 Crore

Operating Profit

Rs.1495 Crore

CAR

13.27%

Net Profit

Rs.581 Crore

EPS Rs.28.34 *

BV Rs.112.33

* Annualised

slide10

Strong Business Growth

( Rs.Crore)

  • Year on Year Deposit Growth of 11.31% in Sept. 2003.
  • Year on Year Credit Growth of 15.14% in Sept. 2003.
  • Credit Deposit Ratio Sustained at the same levels of 56% in Sept 2003.
  • Gross Profit growth at 57.81% & Net Profit at 38.60% in Sept. 2003.
maturity pattern of investments
Maturity Pattern of Investments

65%

66%

62%

57%

19%

12%

11%

11%

13%

13%

15%

11%

13%

13%

9%

10%

slide13

Capital Adequacy Ratio

  • The Capital Adequacy Ratio has reached a comfortable level of 13.27% in FY 2003 from 11.88% in FY 2002.
slide14

Earning Capacity

Rs.28.34

Rs.14.52

  • The Bank continued to sustain High levels of Earnings
  • Return on Assets at 1.28% compares well with that of peer banks.
  • Book Value of the Share has improved to Rs.112.33 from Rs.98.14 in
  • March 2003
slide15

Business Ratios

-Cost of Deposits/ Borrowings

  • The cost of Deposits has come down from 6.32% for FY 03 to 5.67% as at Sept- 03.
  • The Overall cost of Borrowing has come down from 11.19% for FY 03 to 8.5% as at Sept 2003.
slide16

Business Ratios – Yield%

  • The yield on Advances has come down from 9.83% for FY 03 to 9.20% as at Sept 03.
  • The yield on Investments has come down from 9.99% for FY 03 to 9.04as at Sept 03.
income and expense analysis
Income and Expense Analysis

THE NII HAS GROWN BY 23%

IN FY 03 OVER FY 02

THE NII HAS GROWN BY 10%

IN HY SEP 03 OVER HY SEP 02

THE CORE NON INTEREST INCOME HAS GROWN BY 19 %.

THE NON INTEREST INCOME

OF RS.1209 CRORE AS AT SEPT 2003 INCLUDES RS.389 CRORE OF PROFIT ON ACCOUNT OF

GOVT. BUY BACK OF GILTS

productivity ratios
Productivity ratios

* Not Annualised

retail lending
Retail Lending

(Amount: Rs. Crore)

retail lending1
Retail Lending

(Amount: Rs. Crore)

distribution of branches deposits advances
Distribution of Branches -Deposits & Advances

As at 30.09.2003

  • Well diversified credit portfolio with 12% in the Engineering industry, 11% in Petroleum,
  • 9% in Infrastructure, 9% in Textiles and 7% in Iron & Steel.
  • Well balanced CD Ratio across the country.
  • CAGR of 20% in Credit book over last three years.
deposit mix
Deposit Mix
  • The Term Deposits have grown at an annualized rate of 9% over FY 03
  • The Current & Savings Deposits have grown at an annualized rate of 9% over FY 03
deposit mix1
Deposit Mix (%)
  • Aggregate Deposits increased from Rs.64030 Crore in FY 02 to Rs.75396 Crore in Sep-03.
  • Average cost of deposits declined from 7.16 in FY 2002 to 5.67% in HY ended Sep 2003
  • During FY 04, around RS.3500 Crore of high cost deposits would mature.
credit quality
Credit Quality

(Amount: Rs. Crore)

slide27

Credit Quality

  • Despite credit growth being higher than industry average, net NPA remained lower than industry average.
  • The Bank has been undertaking much higher levels of provisioning. Provisioning coverage, including Write-off, at 68.7% is reasonable by industry average.
  • Bank effected a Cash Recovery of Rs.228 Crore during HY Sep 03 as against Rs.204 during the corresponding period of FY 2003.
focus on subsidiaries sponsored institutions
The Subsidiaries and Sponsored Institutions with focus on identified niche business areas have yielded good results.

Gilt Securities Trading Company, a Primary Dealer in Government Securities Market recorded a Turnover Exceeding Rs.45000 Crore in FY 03.

Canfin Homes Ltd, sponsored by the Bank has created a niche in Retail Home Financing by assisting more than 90000 families with Cumulative Sanctions of Rs. 2767.88 Crore and Cumulative Disbursements of Rs.2374.43 Crore.

Canbank Factors Ltd is Numero Uno in the Indian Factoring Business with ISO Certification.

CIMS is managing more than Rs.1600 Crore net assets.

CCSL, the ISO Certified Software outfit is the only Public Sector IT Company.

Aadequate provisions are being made to take care of all future obligations of Canfina and all the commitments towards the PSUs with which settlement is reached is being met promptly.

Focus on Subsidiaries & Sponsored Institutions
slide29

Technology matters

Computerization

Strategic Direction

  • 1,910 branches computerized
    • 1039 fully computerized
    • 871 partially computerized
  • 87.73% of the Bank’s business computerized
  • All Circle Offices, the Head Office and most Regional Offices inter-connected through INFINET
  • 615 branches brought under Corporate Network
  • Computer Policy and Planning Department to monitor IT activities as per the IT Plan drawn up by the Board
  • The Bank has designated The Indian Institute of Science, Bangalore, as consultant to implement various IT initiatives
  • The Bank is in preparedness to implement RTGS and has designated 191 branches for SFMS implementation.
slide30

Technology matters

Technology-Enabled Delivery Channels and Services

  • Anywhere Banking implemented in 383 branches across 19 cities.
  • 253 Networked ATMs, 28 ATMs under Shared Payment Network System (SPNS) and 1 standalone – SWADHAN and SWITCH connectivity to 253 branches
  • Provision of Televoice Banking in 71 branches
  • The Bank has recently launched Mobile Banking, Internet Banking and Debit Card.
  • Corporate Cash Management Services (CCMS) implemented in 198 Operating Centres and 706 pooling branches