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Canara Bank | 4QFY2012 Result Update
Exhibit 4: Business growth remains moderate
Exhibit 5: CASA decline continues in 4QFY2012
Adv. yoy chg (%) Dep. yoy chg (%) CDR (%, RHS)
Calculated CASA ratio
CASA yoy growth (%, RHS)
28.0
21.0
14.0
7.0
72.3
25.5
25.3
71.6
23.7
25.7
69.7
23.8
25.4
69.5
15.5
19.7
71.1
9.4
11.3
74.0
72.0
70.0
30.0
27.5
25.0
22.5
21.8
28.3
9.7
25.4
12.2
25.8
(1.4)
23.9
(4.2)
24.3
30.0
20.0
10.0
-
-
4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
68.0
20.0
4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
(10.0)
Source: Company, Angel Research
Source: Company, Angel Research
The bank’s reported NIM remained flat sequentially during 4QFY2012, as the 8bp
qoq rise in yield on advances to 10.93% was completely offset by a similar rise in
cost of deposits to 7.35%. Management attributed the declining trend in CASA
ratio mostly to the flight of saving deposits to higher yielding term deposits and
difficulty in sustaining the current account balances due to prevalent domestic
macro headwinds.
Exhibit 6: YoA up by 8bp qoq, but similar rise in COD...
Exhibit 7: ...results in flat reported NIM
(%)
11.00
10.50
10.72 10.85 10.93
(%)
3.50
3.12
10.00
9.00
9.73
3.00
2.50
2.00
2.42
2.64
2.52 2.50
8.00
1.50
7.00
4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
1.00
4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
Source: Company, Angel Research
Source: Company, Angel Research
Fee income declines on a yoy basis on account of a dip in
commission and brokerage income
Commission and brokerage income declined during the quarter by 13.7% yoy to
`215cr. Recoveries from written-off accounts, which halved sequentially in the last
quarter to `68cr, picked up momentum once again as they grew by 44.1%
sequentially. Treasury income posted a healthy performance growing to `95cr in
4QFY2012 from loss of `18cr in 4QFY2011. Overall, core fee income declined by
29.1% yoy to `674cr.
May 10, 2012 4