MUMBAI, 24 JUNE, 2020 (GPN):  Bengaluru-headquartered lender Canara Bank said in it’s regulatory filing that the Income on a standalone basis during January-March rose to Rs 14,222.39 crore, compared with Rs 14,000.43 crore in the year-ago period.

The lender made a huge provisioning of Rs 5,375.38 crore for the March 2020 quarter, even as it was lower than the Rs 5,523.50 crore parked aside for corresponding period of 2018-19. It has availed option for deferment of provision in respect of frauds reported for Rs 2,349.59 crore requiring additional provision of Rs 1,989.26 crore in terms of option available as per the RBI circular.

Accordingly, an amount of Rs 497.31 crore has been charged to profit and loss account and an amount of Rs 1,491.95 crore have been charged to reserves and deferred for adjustment in subsequent quarters, it added.

On COVID-19, it said that due to lockdown impact on economy, the situation continues to be uncertain and the bank is evaluating the situation on an ongoing basis.

“The major identified challenges for the bank would arise from eroding cash flows and extended capital cycles. The bank is gearing itself on all the fronts to meet these challenges. The management believes that no adjustments are required in the financial results as it does not significantly impact the current financial year,” it said.

Despite these events and conditions, there would not be any significant impact on the bank’s results in future and going concern assumptions as at presently made, it added.

Key Summary of Business Performance (as on 31.03.2020)

Business

• Global Business increased  by 3.2% (y.o.y) to Rs.10,76,574 Cr as at March 2020 with Global Deposits at Rs.6,25,351 Cr (4.4% y.o.y) and Global Advance (gross) at Rs.4,51,223  Cr (1.6% y.o.y).
• Domestic Deposit of the Bank stood at Rs.6,01,664 Cr as at March 2020 with growth of 6.3% (y.o.y).
• Domestic Advances (gross) of the Bank stood at Rs.4,26,684 as at March 2020 with growth of 1.8% (y.o.y).
• Retail Lending Portfolio increased 12.1% y-o-y to Rs.79,800 Cr as at March 2020

• Housing Loan Portfolio increased 18.0% y-o-y to Rs.39,611 Cr 
• Vehicle loans & other personal loans grew by 10.6% (Rs.10,446 Cr) and 5.3% (Rs.20320 Cr) respectively.

• Advances to Agriculture grew by 6.1% (y.o.y) to Rs.96,043 Cr as at March 2020. 

Income and Profitability for Q4 FY20

• Operating profit stood at Rs.2041 Cr as at Q4 FY20. However, there is a net loss of Rs.3259 Cr as at Q4 FY20 due to increased provisions.
• Total Income of the Bank increased by 1.6% (y.o.y) to Rs.14,222 Cr as at Q4 FY20 
• Non-Interest Income increased by 16.8% (y.o.y) to Rs.2,175 Cr as at Q4 FY20 

Income and Profitability for Financial Year 2020

• Operating profit stood at Rs.9360 Cr in FY20. However, there is a net loss of Rs.2236 Cr in FY 20 due to increased provisions.
• Total Income of the Bank increased by 6.3% (y.o.y) to Rs.56,748 Cr in FY20. 
• Non-Interest Income increased by 18.8% (y.o.y) to Rs.7,813 Cr in FY20. 

Asset Quality

• Gross Non-Performing Assets (GNPA) ratio reduced to 8.21% as at March 2020 down from 8.36% as at December 2019 and 8.83% as at March 2019. 
• Net Non-Performing Assets (NNPA) ratio reduced to 4.22% as at March 2020 down from 5.05% as at December 2019 and 5.37% as at March 2019. 
• Provision Coverage Ratio (PCR) improved to 75.86% as at March 2020 from 68.13% as at March 2019.

Capital Adequacy 

• CRAR as on March 2020 improved to 13.65% as at March 2020 from 11.90% as at March 2019. Out of which Tier-I is 10.12% and Tier-II is 3.53% as at March 2020. 

Priority Sector & Financial Inclusion

• The Bank has achieved Targets in Priority Sector and Agricultural Credit at 44.66% and 18.58% of ANBC as at March 2020, as against the mandatory target of 40% and 18% respectively.
• Credit to Weaker Sections stood at Rs.94,619 Cr as at March 2020 (18.48% of ANBC, exceeding the target of 10%).
• Credit to women beneficiaries stood at Rs.59,827 Cr ( 14.72% of ANBC as against the target of 5%).
• Bank has opened 76.38 lakhs accounts under PMJDY and mobilised CASA deposits of Rs.2874 Cr as at March 2020.

Network

• As on 31.03.2020, the Bank has 6329 number of Branches. Rural:1826, Semi-Urban:2004, Urban:1226 & Metro:1273, and 8850 number of ATMs.

Digitalization

• Percentage share of transactions through Alternate Delivery Channels stood at 74% as at March 2020.
• Internet Banking Services users increased by 76% (y.o.y) to 109 lakhs as at March 2020.

Awards

• Best innovation in Banking technology award for CANDI Branch received in IDRBT banking technology innovation contest.
• Canara DiYA won Silver in SKOCH Awards 2019.
• IBA’s 15th Annual Banking Technology Award 2020 received for Most Customer-Centric Bank using Technology
• FINNOVITI 2020 award received for CANDLE for one of the best innovation in financial sectors’ technology. 
• Canara Bank won Tax Deductor of the Year Award for recognition of timely compliance to the TDS/TCS provisions of Income Tax Act.
• ‘SIDBI-ET INDIA MSE AWARD-2019’ for noteworthy Lender to MSE – (Public Sector Bank) Award Category.

Goals: March 2021

• Thrust on business expansion and augmenting market share.
• Improving retail business and shoring up CASA.
• Balanced growth in advances with proper mix of Retail, Agri, MSME & Corporate Credit.
• Verticalization for better business augmentation and customer service. 
• Feet-on –street for lead generation, collection and recovery.
• Focus on NPA management with strategic actions on strengthening credit monitoring, containing fresh slippages and augmenting recovery efforts.
• Strengthening digital capabilities and offerings for better customer service and acceptability with end to end digital solutions. 
• Process Improvements to minimize turnaround time and improve efficiency to enhance productivity.

Bank’s preparedness and support amid Covid-19 challenges

• In the wake of Covid-19 pandemic the Bank has been successfully managing business operations through focused measures to serve the customers effectively. 
• 97% of our branches were operational during the nationwide lockdown period. 
• We tapped our digital potential, thus taking the total number of E-transactions at 23.94 Cr with an amount of Rs.5,16,217 Cr during the lockdown. 
• The Bank accelerated Business Correspondent (BC) services with 119 lakh transaction & Rs.3,792 Cr business during 31st March 2020 to 15th June 2020. 
• Introduced CANARA CREDIT SUPPORT as part of Emergency Credit Line Facilities to Covid-19 affected customers. Loans worth Rs.1571 Cr has been disbursed to 73031 accounts under MSME so far.
• Introduced Guaranteed Emergency Credit Line (GECL) for eligible MSME customers. Loans worth Rs.2755 Cr has been disbursed to 177343 accounts.

Amalgamation of SyndicateBank into Canara Bank

• Amalgamation of SyndicateBank into Canara Bank has become effective from April 1, 2020.
• The combined entity will have enhanced capabilities with best-in-class products & processes for better value to all the stakeholders. 
• Amalgamation would synergize the common history, culture, ethos and vision of both banks and also leverage the legacies, strength and best practices.
• Amalgamated Bank will have 

• Improved presence in all States & Union territory of the country
• Conveners of SLBC in 2 states viz., Karnataka & Kerala and Convener of UTLBC of Lakshadweep
• Lead bank responsibilities in 60 districts of major States/UTs
• Combined network of 10403 branches and 13406 ATMS
• Customer base of over 13 Cr with Total business of Rs.15.58 Lakh Cr Comprising Deposits of Rs.9.07 lakh Cr and Gross Advances of Rs. 6.51 Lakh Cr
• Positioned as 4th  largest public sector bank in the country
• Realizing synergy benefits from cost and income synergies 

 

• Interoperable services (12 key services) are provided in all the branches of Amalgamated Bank from 01.04.2020. 
• Revised Organizational Structure at Head Office with specialized verticals to concentrate on business growth and control/compliance mechanism.
• Four Tier Organizational Structure with 24 Circles and 176 Regional Offices commenced functioning from 27.04.2020.
• Having a strong work force of over 90,000 employees. ENDS