Can Q3 FY09 FinancialResults

Page 1 www.canarabank.
com
Dec08
Results
PERFORMANCE HIGHLIGHTS

For December 2008
Page 2 www.canarabank.com
Dec08 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
Dec08 Results
Crossed Rs.3 Lakh Crore Business Milestone

Dec08 Results
FINANCIAL HIGHLIGHTS
Dec08 Results
ROBUST PROFIT GROWTH
Dec08 Results
BUSINESS PROFILE
Dec08 Dec07 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
Amt. in Rs. Crore
Total Business Grew y.o.y by 25%
Dec08 Results
116,803
142,381
174,839
128,920
154,072
98,506
107,238
79,426
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
2006 2007 2008 Dec' 08
I
N
R

C
r
o
r
e
Deposits Advances
TOPLINE GROWTH
Dec08 Results
203,026
180,529
165,961
132,822
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
2006 2007 2008 'Dec'08
R
s
.

C
r
o
r
e
TOTAL ASSETS

Total Asset size has crossed the Rs.200,000 crore mark
Dec08 Results
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%
Dec08 Results
EXPENDITURE GROWTH
Amt. in Rs. Crore
Q3
FY09
Q3
FY08

Growth
9m
FY09
9m
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
Dec08 Results
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
Dec08 Results
EARNINGS PROFILE
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
Amt. in Rs. Crore
NIM Improved by 34 bps Over Dec07
Dec08 Results
Interest Income continues to drive growth in income .. over 2/3
rd
of earnings from int on advances
Contribution from fee-based business on a rise .. Fee Income up by 23% over 9m FY08
MAJOR COMPONENTS OF INCOME
Investment
Income
21.9%
Int on Adv
66.3%
Others
3.5%
Fee Incm
7.0%
Inter Bk Int
1.2%
9m FY09 (Dec 08)
Investment
Income
24.1%
Int on Adv
60.9%
Others
5.9%
Fee Incm
6.7%
Inter Bk Int
2.4%
9m FY08 (Dec 07)
Dec08 Results
EARNING ANALYSIS : 9m Ending Dec08
Dec 08 Dec 07 Mar 08
Interest Income
as a % of Total Income 89.5% 87.4% 86.5%
Interest on Advances
Fee Income
Treasury Income*
* Int on Inv. +Trading Profit +Profit on Revaluation +Dividend Incm
Dec08 Results
BREAK-UP OF OTHER INCOME
Dec08 Dec07
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
Rs. in Crore
Fee-based Income for the 9 months grew by 23% y.o.y
Dec08 Results
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 J oint 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
Dec08 Results
BREAK-UP OF PROVISIONS
Dec08 Dec07 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
In Rs Crore
Dec08 Results
PROFITABILITY RATIOS
Dec07
(Q3 FY08)
Mar08
(FY08)
Jun08
(Q1 FY09)
Sep08
(H1 FY09)
Dec08
(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
(In %)
Consistent Improvement in Spread and NIM
Dec08 Results
PRODUCTIVITY RATIOS
Dec08 Dec07
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
Dec08 Results
Amt. in Rs. Crore
Figures in the brackets are percentage shares in total
INVESTMENT PORTFOLIO
Dec08 Dec07
Net Investments (Domestic) 52420 49736
Held to Maturity
37430
(71.4%)
28447
(57.2%)
Available for Sale
14506
(27.7%)
21045
(42.3%)
Held for Trading
484
(0.9%)
244
(0.5%)
Dec08 Results
ASSET QUALITY
Dec08 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
Dec08 Results
BASEL II AND CAPITAL STRATEGY
CRAR of 13.41% at Dec08.. 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
Dec08 Results
6.24%
7.51%
7.01%
7.17%
7.81%
7.29%
5.90%
6.33%
3.41%
5.49%
0%
2%
4%
6%
8%
10%
12%
14%
Mar.05 Mar.06 Mar.07 Mar.08 Dec.08
Tier I capit al Tier 2 capit al
9.0%
Minimum
Total
CRAR
6.0%
Minimum
Tier I
CRAR
12.78% 11.22%
Total
CRAR
%
CAPITAL ADEQUACY Basel II (Mar08 Onwards)
13.50%
13.25%* 13.41%
(6738)
(7850)
(6925)
(8148)
(7250)
(2940)
(3372)
(4483)
(Figures in the brackets are amt. in Rs.
Crore)
(9217)
(7242)
Dec08 Results
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.
Dec08 Results
EARNINGS PROFILE

27.06
32.76
34.65
38.17
26.85
33.01
0
5
10
15
20
25
30
35
40
EPS (INR)
Mar-05 Mar-06 Mar-07 Mar-08 . 'Dec 07 'Dec 08
146.15
171.19
197.83
202.33
236.33
0
50
100
150
200
BV (INR)
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 Mar08 was after drawal of Rs.989 crore from
Reserves
towards additional staff cost (retiral benefits) as per AS 15
Dec08 Results
VALUE FOR STAKEHOLDERS
35%
50%
55%
66%
70%
80%
0%
10%
20%
30%
40%
50%
60%
70%
80%
DIVIDEND
FY03 FY04 FY05 FY06 FY07 FY08
Dividend ... Progressive Return for the
Shareholders
Dec08 Results
SHARE HOLDING PATTERN
12.0%
5.5%
2.5%
5.2%
1.6%
73.2%
Govt of India FIIs Resident Individuals MFs IFIs Others
As on Dec 31, 2008
Dec08 Results
BUSINESS FOCUS
Dec08 Results
CORE DEPOSITS GROWTH
Amt. in Rs. Crore
Highest Per Branch CASA Deposit among Peers
CASA Ratio at 31%
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
Dec08 Results
CREDIT FOCUS
Amt. in Rs. Crore
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
Dec08 Results
PRIORITY SECTOR
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%
(Amt. in Rs. Crore)
Dec08
Results
To Expand Credit
Dec08 Results
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
INITIATIVES To Expand Credit
Dec08 Results
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
INITIATIVES To Expand Credit
Dec08 Results
Spread Management
Challenges on Sustaining Net Interest Margin
southward movement in interest rates
Reduction in BPLR - from 14% to 13.25 (w.e.f 10
th
Nov08)
from 13.25% to 12.50% (w.e.f 1
st
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
SPREAD MANAGEMENT
Dec08 Results
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
COST MANAGEMENT
Dec08 Results
Beyond
Numbers
Dec08 Results
EXPANDING THE REACH
Dec08 Dec07 Y-o-Y Incr
Branch Network 2726 2644 82
ATM Strength 2016 1667 349
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
Addition of 48 Branches in the year so far
Commissioned a Branch at SHANGHAI, CHINA
Dec08 Results
EXPANDED CLIENTELE BASE
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-Oct08: Added Over 7 Lakh
A/Cs
Dec08 Results
INFOTECH PROGRESS
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
Dec08 Results
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
J ohannesburg, Frankfurt, Muscat, Manama, QFC-Qatar, Leicester, New
York, Sao Paulo, Dar-er-Salam and Tokyo
Dec08
Results

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