Canara Bank
NSE Symbol CANBK
Results for
2nd QUARTER
ENDING Sept,2011
The
financial Results of Canara Bank for the 2nd quarter ending Sept,2011 are analysed below :
Interest on Advances has gone up to Rs.5825.60
cr – up by 6.25% from Q1 FY 12 and up by 41.76% from Q2 FY 11.
Income on Investments has
increased to Rs.1729.99 cr – up by 5.91% from Q1 FY 12 and up by Rs.22.13% from
Q2 FY 11.
Interest Earned is Rs.7614.47
cr – up by 6.04% from Q1 FY 12; and up
by Rs.36.52% from Q2 FY 11.
Other Income is Rs.828.26 cr –
up by 57.21% from Q1 FY 12 and up by 65.78% from Q2 FY 11.
Total Income is Rs.8442.73 Cr –
up by 9.54% from Q1 FY 12; and up by 38.93% from Q2 FY 11.
Interest Expended is Rs. 5652.78 Cr – up by 4.92% from Q1 FY 12;
and up by 58.16% from Q2 FY 11.
Net Interest Income is Rs.1961.69 cr –
up by 9.4% from Q1 FY 12; and down by (-)2.08% from Q2 FY 11.
Total Expenditure is Rs.6837.40 cr up
by 6.22% from Q1 FY 11; and up by 46.68% from Q2 FY 11.
Operating Profit is Rs.1605.33 cr –
up by 26.36% from Q1 FY 12 and up by 13.39% from Q2 FY11.
Provisions has increased
much to Rs.553.11 cr – up by 60.53% from Q1 FY 12; and Up by a huge 250.31%
from Q2 FY 11.
Profit before tax stands at Rs.1052.22
Cr – up by 13.65% from Q1 FY 12; and down by (-)16.35% from Q2 FY 11. Higher
Provisions have taken their toll on PBT which has comedown compared to Q2 FY
11.
Net Profit stands at Rs.852.22
cr – up by 17.41% from Q1 FY 12; and down by (-)15.44% from Q2 FY 11. Here also
Higher provisions in Q2 FY 12 has brought down the NPT - compared to Q2 FY 11.
Capital Adequacy Ratio is comfortable at 12.78.
% of Gross/Net NPA stands at 1.43
in Q2 FY 12; 1.34 in Q1 FY 12; and 1.06 in Q2 FY 11.
Return on Assets is reasonable at 1.01
in Q2 FY 12; 0.88 in Q1 FY 12; and 1.52 in Q2 FY 11.
Basic EPS on a FV of Rs.10
stands at Rs.19.24 in Q2 FY 12, compared to Rs.16.38 in Q1 FY 12 and Rs.24.58
in Q2 FY 11. Canara Bank is one of the efficient Banks with a good EPS.
At
current levels of Q’ly EPS, Canara Bank may clock an Annualised EPS of around Rs.78.
Its current Market price
is Rs.361, while its 52 week High was
Rs.671.70 and 52 week Low was Rs.360.10
At
the current level, the PE Ratio works out to just
4.63. In a Normal market, Canara Bank is likely to scale beyond its 52 week
High price. Next Q’ly result also can be expected to be better than Q2 FY 12
result, with lesser Provisions.
Major Highlights –Q2FY12
Þ
Domestic
deposits grew by 26% compared to SCBs’ growth at 19%.
Þ
Domestic
advances grew higher by 27% compared to SCBs’ growth at 21.4%.
Þ
160
Branches and 114 ATMs added during the Second Quarter.
Þ
System
Driven NPA implemented for all loan accounts, irrespective size or category.
·
Savings
deposits rose by 17.9% y-o-y to Rs.64043 crore. The Bank added over 14 lakhs SB clientele
during Q2 of FY12, with the aid of special SB campaign and substantial
mobilization of accounts by the newly opened branches.
·
Advances (net) grew by 23.8% to reach Rs.217938 crore, up
from 
176071 crore as at
September 2010. Credit to deposit ratio stood at 69.7%.
176071 crore as at
September 2010. Credit to deposit ratio stood at 69.7%.
·
The
Bank’s domestic business constituted
about 96% of the total business with 26% growth in domestic deposits and 27%
growth in domestic net advances.
·
Steady
improvement in business is well reflected in quarter after quarter increase in productivity
of the Bank. While Business per Employee increased to Rs.12.98 crore,
Business per Branch improved to 154.35 crore as at
September 2011 compared to Rs.138.70 crore a year
ago.
154.35 crore as at
September 2011 compared to Rs.138.70 crore a year
ago.
·
The
Bank’s clientele base reached 4.04 crore, comprising 3.58 crore under deposit
accounts and 46 lakhs under borrowal accounts.
Asset
Quality
·
The Bank’s
gross NPA ratio increased to 1.73% (Rs,3793 crore) compared to the gross NPA ratio of 1.49% (Rs.2636 crore) as at September
2010.
·
The
increase in NPAs was due to full migration
to system based NPA recognition, irrespective of the size or category.
·
Cash
recovery during the H1 of
FY12 aggregated to a record Rs.1558
crore, higher than Rs.742 crore in the same period a year ago. Cash Recovery for the Q2 was at Rs.808
crore.
Goals
for FY12
- Aiming at a Total Business Growth of 20%
- More than 300 branches during FY12
- Taking the ATM strength to 3000.
- Thrust on business process reengineering and further enhance productivity in the CBS environment.
- Focus on growing Retail Business- Retail Deposits, Retail Advances and Recovery
o Plans to open Branches
at QFC-Qatar and South Africa
FINANCIAL RESULTS IN A NUT SHELL
|
CANARA BANK
|
30-Sep-11
|
30-Jun-11
|
% DIF
|
30-Sep-10
|
%DIF
|
|
Interest on Advances
|
582560
|
548284
|
6.25
|
410956
|
41.76
|
|
Income on Investments
|
172999
|
163338
|
5.91
|
141652
|
22.13
|
|
Income on Balances With
RBI
|
5879
|
6443
|
-8.75
|
5126
|
14.69
|
|
Others
|
9
|
10
|
-10
|
10
|
-10
|
|
Interest Earned
|
761447
|
718075
|
6.04
|
557744
|
36.52
|
|
Other Income
|
82826
|
52684
|
57.21
|
49962
|
65.78
|
|
Total Income
|
844273
|
770759
|
9.54
|
607706
|
38.93
|
|
Interest Expended
|
565278
|
538767
|
4.92
|
357414
|
58.16
|
|
NII
|
196169
|
179308
|
9.4
|
200330
|
-2.08
|
|
Employees Cost
|
76696
|
66768
|
14.87
|
72744
|
5.43
|
|
Other Operatng Expenses
|
41766
|
38184
|
9.38
|
35971
|
16.11
|
|
Operating Expenses
|
118462
|
104952
|
12.87
|
108715
|
8.97
|
|
Total Expenditure
|
683740
|
643719
|
6.22
|
466129
|
46.68
|
|
Operating Profit
|
160533
|
127040
|
26.36
|
141577
|
13.39
|
|
Provisions
|
55311
|
34455
|
60.53
|
15789
|
250.31
|
|
Profit before tax
|
105222
|
92585
|
13.65
|
125788
|
-16.35
|
|
Tax Expense
|
20000
|
20000
|
0
|
25000
|
-20
|
|
Net Profit
|
85222
|
72585
|
17.41
|
100788
|
-15.44
|
|
Face Value(Rs.)
|
10
|
10
|
0
|
10
|
0
|
|
Paid-up Equity Share
Capital
|
44300
|
44300
|
0
|
41000
|
8.05
|
|
Capital Adequacy Ratio
|
12.78
|
13.37
|
-4.41
|
13.88
|
-7.93
|
|
Basic EPS
|
19.24
|
16.38
|
17.46
|
24.58
|
-21.72
|
|
% of Gross/Net NPA
|
1.43
|
1.34
|
6.72
|
1.06
|
34.91
|
|
Return on Assets
|
1.01
|
0.88
|
14.77
|
1.52
|
-33.55
|
|
Public Holding (%)
|
32.28
|
32.28
|
0
|
26.83
|
* * *
E N D * * *
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