page 1 save trees, save water and save environment june 2010

www.canarabank.com Save Trees, Save Water and Save Environment

June 2010


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%


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


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%


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


Rs. C

rore

TOTAL DEPOSITSTOTAL DEPOSITS

CAGR at 23.7%



1,40,668

1,73,794

1,09,827

25,000

50,000

75,000

100,000

125,000

150,000

175,000


Rs. C

rore

NET ADVANCESNET ADVANCES

CAGR at 25.5%



CONSISTENT PROFIT GROWTHCONSISTENT PROFIT GROWTH

NET PROFT

555

1013

123

0

100

200

300

400

500

600

700

800

900

1,000

1,100


Rs. C

rore

CAGR at 187%

Over Rs.1000 Cr Net Profit in a Single Quarter


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


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)


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


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%


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


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


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


DECLINE IN COST-INCOME RATIO (%) DECLINE IN COST-INCOME RATIO (%)

49.30 47.80

39.75

2023262932353841444750535659

'Jun-08 'Jun-09 'Jun-10


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


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%


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


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.


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)


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


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%


CASA DEPOSITS GROWTHCASA DEPOSITS GROWTH

Amt. in Rs. Crore

29% GROWTH IN CASAHighest CASA per Branch among

Peers


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


CREDIT FOCUSCREDIT FOCUSAmt. in Rs. Crore


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


PRIORITY SECTORPRIORITY SECTOR


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


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


‘‘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


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


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


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%)


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%


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


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*


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


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.


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.


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


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


NO.1 BANK IN KARNATAKANO.1 BANK IN KARNATAKA


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

page 1 save trees, save water and save environment june 2010

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