Head Office, Bangalore
May 2, 2013
Net Profit for FY13 at 2872 crore
Major Highlights - Q4FY13
Ø Global Deposits - 355856 crore.
Ø Global Advances (Net) - 242177 crore.
Ø Net Profit - 725crore.
Ø Net Interest Margin (NIM) - 2.39%.
Ø Return on Assets (RoA) - 0.77%.
Ø CASA Ratio at 25.12%.
Ø Capital Adequacy Ratio - 12.40%. Tier I Ratio - 9.77%.
Ø Gross NPA Ratio - 2.57%, Net NPA Ratio - 2.18%.
Ø Record Cash Recovery at 4006 crore for FY13.
Ø 128 New Branches and 668 ATMs added during the year.
Profits and Profitability - Q4 FY13
· Net profitfor Q4FY13 at 725 crore improved sequentially compared to 711 crore for Q3 FY13.
· Operating profitat 1698 crore was higher by 12% over Q3 FY13 ( 1516 crore) and 13.9% over the corresponding period Q4 FY12 ( 1491 crore).
· Total provisionmade for the quarter was at 972crore compared to Q3FY13 provision of 806 crore and Q4FY12 (662 crore).
· The provision for NPAs during the quarter was 346 crore.
· Return on Assetsfor the quarter stood at 0.77% compared to Q3FY13 at 0.82%.
· While Earnings per Share (EPS) for the quarter was at 16.37, Book Value rose to 441.92 compared to 431.26 as at March 2012.
Income and Expenses- Q4 FY13
· The Bank'stotal income for Q4FY13 reached 9472 crore with a sequential growth of 1% over Q3 FY13 (9390 crore) and growth of 4.8% over Q4 FY12 (9037 crore).
· Income from loans/advances reached 6073 crore compared to 5958 crore for Q3FY13 and 6189 crore for Q4 FY12.
· Non-interest incomefor the quarter rose to 1007 crore with a sequential growth of 19% over Q3FY13 (846 crore) and growth of 30.8% over Q4 FY12 (769 crore).
· Total expenses for the quarter at 7774 crore has come down compared to 7874 crore for Q3FY13 and grew moderately by 3% over Q4 FY12 (7546 crore).
· Operating expenses for the quarter rose moderately to 1399 crore compared to 1317 crore for Q3FY13 with a growth of 6.2% and growth of 6.1% over Q4 FY12 (1319 crore).
· Net interest incomefor the quarter was 2091 crore improved sequentially by 5.2% over Q3FY13 (1988 crore) and 2.5% over Q4FY12 (2040 crore).
· Net Interest Margin (NIM) as at March 2013 improved to 2.39% sequentially compared to 2.36% as at Dec'12.
FY13: Income, Expenditure & Profit
· Net Profitfor FY13 was at 2872 crore compared to 3283 crore for FY12.
· Operating Profit for FY13 was at 5890 crore compared to 5943 crore for FY12.
· Total income for the full year 37231 crore compared to 33778 crore for FY12.
· Income from loans/advancesreached 24380 crore compared to 23443 crore for FY12.
· The Bank's non-interest income for the whole year was at 3153 crore compared to 2928 crore for FY12.
· Total expenses for the whole year was 31341 crore compared to 27835 crore for FY12.
· Operating expensesreached 5142 crore compared to 4674 crore for FY12.
· Net Interest Incomefor the year was at 7879 crore compared to 7689 crore for FY12.
FY13: Business Performance
· Global Deposits of the Bank was 355856 crore compared to 323963 crore as at December 2012, with a growth of 9.8%.
· Global Advances (Net) reached a level of 242177 crore compared to 218242 crore as at December 2012, with a growth of 11%.
· The lower business growth of the Bank was due to conscious decision taken to de-risk the balance sheet by shedding a substantial portion of bulk business both on preferential rate deposits + CDs (74500 crore) as well as short term unsecured loans (22000 crore), totaling 96500 crore.
· The Bank's domestic business constituted 95% of the total business.
· The Bank's CASA deposits to domestic deposits stood at 25.1%, same level as last year. The Bank's savings deposits reached 71168 crore as at March 2013 compared to 68689 crore as at December 2012, with a growth of 3.6% and current deposits at 14893 crore compared to 12473 crore as at December 2012, with a growth of 19.4%.
· During FY13, the Bank had launched nationwide campaigns to mobilize SB deposits. During the year, the Bank added over 37 lakh SB clientele.
· The Bank's clientele base reached 4.70 crore, comprising 4.17 crore under deposit accounts and 53 lakh under borrowal accounts. 50 lakhs clientele added during the year.
· While Business per Employee increased to 14.20 crore from 13.74 crore as at March 2012, Business per Branch improved to 160.42 crore as at March 2013 compared to 155.43 crore last year.
· The Bank continues to maintain strong capital position among its peers. As at March 2013, Capital Adequacy Ratio stood at 12.40% (as against mandatory level of 9%), witha Tier I capital ratio at 9.77% (as against mandatory level of 6%).
· Adequate headroom available under both Tier-I and Tier-II options to raise capital to support business growth momentum. Government shareholding is at 67.72%
· The Bank has strong Common Equity Capital to meet the stringent Basel III norms during the current year and onwards.
· The Bank has performed well in containing NPAs and making higher cash recoveries in economic downturn, at a time when most banks experienced higher slippages.
· The Bank's gross NPA level was 6260 crore and net NPA level was 5278crore as at March 2013.
· The Bank's gross NPA ratio has come down to2.57%compared to December 2012 position of 2.77%.
· Net NPA ratiohas also come down to 2.18% at March 2013 compared to December 2012 position of 2.35%.
· Cash Recoveryduring FY13 aggregated to a record 4006crorecompared to 3296 crore for FY12.
· The Bank's outstanding restructured portfolio at 18113 crore constituted 7.41% for the total advances.
Diversified Credit Portfolio
· Outstanding advances to various priority segments reached 78998 crore compared to 67383 crore, registering a growth of 17.2% y-o-y.
· Advances under agriculture portfolio increased by 27.7% to reach 40786 crore, covering over 40 lakh farmers. Credit to direct agriculture reached a level of 37984 crore, recording a healthy growth of 36.4%. Credit outstanding under Kisan Credit Cards (KCCs) stood at 5969 crore. The Bank issued more than 1 lakh New KCCs RuPay Debit Cards to all eligible farmers.
· The Bank has achieved the mandated targets in respect of agriculture (18.22% against 18% norm), direct agriculture (16.97% against 13.5% norm), credit to specified minority communities (18.19% against 15% norm) and weaker section (11.73% against 10% norm).
· The Bank assisted 16.69 lakh women beneficiaries to the tune of 32000 crore, constituting 13.96% of ANBC as against the RBI norm of 5%.
· The Bank's credit to Micro, Small and Medium Enterprises (MSMEs) reached 37016 crore compared to 34893 crore for FY12.
· The Bank's retail lending portfolio stood at 23084crore as at March 2013 . Outstanding housing loan portfolio was at 13134crore, constituting 57% of the total retail lending portfolio.
· The Bank's education loan portfolio rose to 4343 crore compared to 3993 crore for FY12, covering over 2.17 lakh students.
A Holistic Approach to Financial Inclusion
· Covered all the allotted 1624 villages (spread across 24 States) with population above 2000 for providing banking facilities.
· Bank is allotted 5867 villages (465 villages with 1600-2000 population, 1324 villages with 1000-1599 population and 4078 villages with less than 1000 population) & 150 Wards in urban centres, for providing Banking services during the next three years.
· Already covered 1255 villages in the less than 2000 Population category.
· Under Direct Benefit Transfer (DBT), 2.71 lakhs new accounts in 43 districts opened and 3.62 lakhs accounts have been seeded with Aadhaar number.
· 17.31 lakhs Basic Savings Bank accounts (BSBA) opened during the year, taking the number of BSBA to 60.55 lakhs, with 1143 crore balance.
· Issued 2.85 lakhs General Credit Cards (GCC) accounts, with balance of 600 crore.
· Outstanding credit to Self-Help Groups (SHGs) stood at 1331 crore, with 82000 accounts.
· In built OD facility permitted to 13621 beneficiaries amounting to 466 lakhs and disbursed 372 lakhs.
· Opened 542 Ultra Small Branches to cater to the financially excluded population.
· 19 Micro Finance Branches are functioning for catering to urban poor.
· 26 Financial Literacy Centres in 26 Lead Districts provided financial education to 38153 persons. Bank also conducted Financial Literacy programmes for children studying in government schools, using tablet PC.
· 1500 Farmers' Clubs are set up all over the country.
· Life insurance coverage provided to 31,117 group members under Micro Insurance policy during the year.
· Issued Smart Cards to 3.48 lakhs customers.
· 29 Bio metric ATMs are functional across the country.
· 35 Canara Gramin Vikas Vahini Vehicles in 35 districts are functioning to spread financial literacy.
Enhanced Delivery Channels
During FY13, the Bank further expanded its branch and ATM network. The Bank added 128 domestic branches, taking the total tally under the branch network to 3728 including 5 overseas branches. The Bank added 668 ATMs during the year, taking the total number of ATMs to 3525 as at March 2013. The Bank's debit card base rose further to 95.53 lakhs.
Important Customer-friendly Technology Initiatives
Internet based Online Loan application and Status Tracking System released for Retail loan Schemes, SMEs and Agriculture.
Canara Public Grievances Redressal Systemenabled for the General Public to register online Grievances.
Umbrella portal for Sarva Shiksha Abhiyan (SSA), National Scheme of Incentive to Girls for Secondary Education (NSIGSE), Central Plan Scheme Monitoring System (CPSMS) and Maulana Azad National Fellowship (MANF) developed for the Ministry of HRD.
Aadhaar Payment Bridge System(APBS) though NPCI for disbursement of Govt. Direct Cash Subsidies enabled.
Fund transfer facility through Interbank Mobile Payment Service(IMPS) has been introduced.
"DEMAT View"has been enabled in Internet banking. Customers can now view details of their holdings through Internet banking.
Option to subscribe for Account Statements at customized intervals has been provided to customers through Internet Banking.
Facility of Registration for Mobile Banking through Internet Banking has been implemented.
Rupay Kisan Debit Cardin co-ordination with NPCI.
Visa Money Transfer Fast Funds- Inward Remittance facility for Debit Card Holders.
Rupay Debit Cards and Rupay Kisan Debit Cards to RRB Customers.
· Immediate Payment Servicethrough Mobile Banking, Net Banking and ATM.
Merchant Payments (Mobile top up) through IMPS on IVRS has been implemented.
Subsidiaries/Joint Ventures/Sponsored Entities and Foreign Branches
· Total business of all 3 Regional Rural Banks (RRBs) sponsored by the Bank reached 25006 crore, comprising 13488 crore under deposits and 11618 crore under advances. All 3 RRBs are profit making. All the RRBs migrated to CBS platform, implemented IT products like NEFT, RTGS, ATM, SMS alerts, KCC RuPay cards etc. All the RRBs have implemented system based recognition of nonperforming assets for all the accounts and accounted the same in the financial statements.
· All subsidiaries and sponsored entities of the Bank performed better in FY13.
· The Bank has 5 overseas branches one each at London, Leicester, Hong Kong, Manama and Shanghai. All foreign branches recorded improved performance during the year. Total business of the foreign branches reached 29062 crore, constituting around 5% of the total business of the Bank.
Awards and Accolades
In recognition of the varied initiatives,the Bank was conferred with the following awards -
· Best Bank Award among large banks by IDRBT for "Use of Technology for Financial Inclusion" handed over by RBI Governor Dr. D Subbarao.
· Skoch Award for Financial Inclusion, handed over by Dr. C Rangarajan, Chairman, PMEAC.
· 1st Rank for Self Help Groups Linkagefor the year 2011-12 in the State of Bihar.
· Award for 'Best Online Bank' among Public Sector Banks- IBA Banking Technology Awards 2011
· Award for 'Best Customer Relationship Initiative' among Public Sector Banks - IBA Banking Technology Awards 2011.
· The Greatest Corporate Leaders of India - Leadership in Banking Award, instituted by World HRD Congress, Feb' 2013.
· Prestigious Platinum Greentech HR Award 2013 under HR Oriented CEO by M/s Greentech Foundation, New Delhi.
· Platinum awards, for Best HR Strategy and Training Excellence by M/s Greentech Foundation, New Delhi.
· National Vigilance Excellence Award- 2012 for the second consecutive year from Vigilance Study Circle, Hyderabad under the auspices of the Central Vigilance Commission.
· Retail Assets Wing to drive Retail Loans.
· Retail Resources Wing to drive CASA and Retail Term Deposits.
· Customer Service & Economic Intelligence Wing to focus on quick redressal of customer grievances and study market conditions.
· Government Business and Cash Management Wing to drive volume under Govt. business and optimize cash holding at branches.
· Marketing & BPR Wing to drive cross-selling and business process reengineering.
Goals for FY14
§ The Bank aims to reach an aggregate business figure of more than 7 lakh crore, with approximate deposit growth of 15% and advances growth of 24%.
§ Plans to take the number of branches from 3728 to 5000 and number of ATMs from 3526 to 10,000 by Mar'2015.
§ Plans to open branches at 9 overseas centres- Johannesburg (South Africa, License already received), Sao Paulo (Brazil), Dar-es-Salaam (Tanzania), Tokyo (Japan), Abuja (Nigeria), Jeddah (Saudi Arabia), Qatar Financial Centre (Qatar), Frankfurt (Germany) and New York (USA) by Mar'15.
§ Thrust on Retail Business- CASA, retail deposits/advances, recovery and fee income and asset quality.
§ Technology and business process reengineering.
§ Thrust on improving operational financial ratios, such as, NIM, ROA, ROE and Cost - to - Income Ratios.
§ Would endeavour to bring down Gross NPA ratio below 2% and Net NPA ratio to approx. 1%.