Sector Bank A Premier Public Sector Bank Performance highlights for the Quarter/Half Year ended 30 th September, 2015 1. Performance highlights of the Bank - Sept 15 [Q2] over Sept 14 [Q2]: [Rs. in crore] Parameter As at 30.09.14 As at 30.09.15 [Q2] [Q2] Growth Operating Profit 637.99 862.56 35.20% Net Profit 160.51 188.61 17.51% Interest Income 4,940.11 5,002.90 1.27% Net Interest Income 983.10 1,161.29 18.13% Total Income 5,229.06 5,434.65 3.93% Net Interest Margin [NIM] 2.00% 2.29% Cost of Deposits 8.11% 7.63% Cost to Income Ratio 49.85% 45.85% Provision Coverage Ratio (PCR) 52.61% 58.83% CRAR [Basel III] 11.28% 11.89% Return on Assets (ROA) 0.30% 0.35% Business 3,27,294 3,46,801 5.96% Deposits 1,91,265 2,04,228 6.78% Advances 1,36,029 1,42,572 4.81% Net Interest Margin [NIM] for the quarter ended 30.09.2015 improved to 2.29% (annualized) as against 2.00% (annualized) of the corresponding quarter of previous financial year. Operating Profit of the Bank for the quarter ended 30.09.2015 [Q2] improved to Rs.862.56 crore as against Rs.637.99 crore for the quarter ended 30.09.2014. Net Profit of the Bank for the quarter ended 30.09.2015 [Q2] improved to Rs.188.61 crore as against Rs.160.51 crore for the quarter ended 30.09.2014. Cost of deposits of the Bank for the Q2 ended 30.09.2015 reduced to 7.63% as against 8.11% for the Q2 ended 30.09.2014. Cost to Income ratio of the Bank for the Q2 has improved to 45.85% as against 49.85% for the corresponding quarter of previous financial year.
2. Performance highlights of the Bank -Sept 15 [Q2] over June 15 [Q1]: [Rs. in crore] Parameter As at As at 30.06.15 [Q1] 30.09.15 [Q2] Growth Operating Profit 809 863 6.69% Return on Assets [ROA] 0.38% 0.35% Cost of Deposits 7.66% 7.63% CRAR [Basel III] 11.28% 11.89% Yield on Advance 10.69% 10.79% Yield on Investment 7.56% 7.57% Net Interest Income 1,081 1,161 7.46% Non-Interest Income 402 432 7.45% Interest Income 4,933 5,003 1.42% Total Income 5,335 5,435 1.88% Net Interest Margin [NIM] 2.13% 2.29% Gross NPA ratio 5.43% 5.32% Net NPA ratio 3.55% 3.54% Provision Coverage Ratio 57.17% 58.83% Business 3,32,427 3,46,801 4.32% Deposits 1,92,102 2,04,228 6.31% Advances 1,40,325 1,42,572 1.60% Priority Sector Advances 40.61% 41.41% (64,082) (65,338) 1.96% On sequential quarter basis, the Operating Profit of the Bank for the Q2 ended 30.09.2015 increased to Rs.862.56 crore as against Rs.808.50 crore for Q1 ended 30.06.2015. Cost of deposits of the Bank for the Q2 ended 30.09.2015 reduced to 7.63% as against 7.66% for the Q1 ended 30.06.2015. The total priority sector advance of the Bank stood at Rs.65338 crore as on 30.09.2015. The share of priority sector advances to ANBC stood at 41.41% as on 30.09.2015, surpassing the regulatory target of 40%. Net Interest Margin [NIM] for the quarter ended 30.09.2015 increased to 2.21% (annualized) as against 2.13% (annualized) of the immediate preceding quarter ended 30.06.2015. Gross NPA ratio of the Bank as at 30.09.2015 has come down to 5.32% as against 5.43% as at 30.06.2015. 2 P a g e
Net NPA ratio of the Bank as at 30.09.2015 has come down to 3.54% as against 3.55% as at 30.06.2015. Provision coverage ratio improved to 58.83% as at 30.09.2015 as against 57.17% as on 30.06.2015. 3. Performance highlights of the Bank for the 30.09.2014 over 30.09.2015 [6M]: [Rs. in crore] Parameter As at 30.09.14 As at 30.09.15 Growth Interest Income 9,793.53 9,935.67 1.45% Total Income 10,444.08 10,769.25 3.11% Net Interest Income 1,927.35 2,242.01 16.33% Net Profit 391.98 392.87 0.23% Cost of Deposits 8.10% 7.64% Book Value per Share [In Rs.] 124.69 124.94 0.20% Operating expenses 1,242.35 1,404.53 13.05% Average Saving Bank Deposits 22,816.00 25,608.00 12.24% Bulk to total Deposits 52.90% 49.60% No. of Branches 2,123 2,364 11.35% No. of ATMs 2,746 2,998 9.18% ATM transaction/ Card fees 45.30 60.55 33.66% Business 3,27,294 3,46,801 5.96% Deposits 1,91,265 2,04,228 6.78% Advances 1,36,029 1,42,572 4.81% Net profit of the Bank for the September 2015 [H1] improved to Rs.392.87 crore as against Rs.391.98 crore for the September 2014 [H1] with a growth of 0.23%. Income from ATM Transactions recorded a growth rate of 33.66% on Y-o-Y basis. Income from ATM Card renewal / other charges recorded a growth rate of 22.30% on Y-o-Y basis. Bank has raised 15,66,15,497 equity shares of face value of Rs.2.00 at a premium of Rs.52.72 from Government of India on 30.09.2015, thereby increasing its equity capital base by Rs.857 crore. The shareholding of Government of India in the Bank increased from Government 63.33% to 69.11%. The wholly owned subsidiary of the Bank, CorpBank Securities Ltd has launched institutional broking services in "Capital Market Segment of BSE and NSE on November3, 2015. 3 P a g e
Operating Profit for September 2015 [H1] stood at Rs.1671.06 crore as against Rs.1335.54 crore in September 2014 [H1] with a growth of 25.12%. On sequential quarter basis operating profit increased by Rs.54.06 crore [6.69%]. INCOME/EXPENDITURE Net Interest Income during Q2 FY 2015-16 stood at Rs.1161.29 crore with a growth rate of 18.13% over corresponding quarter of previous financial year. On sequential quarter basis Net Interest Income increased by 7.46%. For the 6 months period ended 30.09.2015 the Net Interest income increased by Rs.314.66 crore to reach to the level of Rs.2242.01 crore as against 1927.35 crore for corresponding period in previous year with a growth rate of 16.33%. Non-Interest Income in Q2 FY 2015-16 was at Rs.431.75 crore. Non-Interest Income for September 2015 [H1] stood at Rs.833.58 crore. BUSINESS Total Business of the Bank reached to the level of Rs.346801 crore as on 30.09.2015 as against Rs.327294 crore in 30.09.2014, showing a y-o-y growth of 5.96%. Deposits of the Bank increased to Rs.204228 crore as on 30.09.2015 from Rs.191265 crore as on 30.09.2014, showing a y-o-y growth of 6.78%. CASA deposits was at Rs.38541 crore as at 30.09.2015 showing a y-o-y growth of 6.69%. Saving deposits increased by 12.04% on y-o-y to reached to the level of Rs.27485 crore as against Rs.24532 crore of corresponding period in previous year. Advances of the Bank stood at Rs.142572 crore at the end of September'15 and grew by 4.81% as against Rs.136029 crore at the end of September'14. Credit Deposit Ratio works out to 69.81% as at 30.09.2015. 4 P a g e
IMPORTANT RATIOS Cost of Deposits reduced to 7.63% for the quarter [Q2] ended September 2015 as compared to 7.66% for the preceding quarter June 2015 [Q1]. For the September 2015[H1] the Cost of Deposits reduced to 7.64% as compared to 8.10% for the preceding financial year [Y-o-Y basis]. Net Interest Margin (NIM) improved to 2.29% for the quarter [Q2] ended September 2015 as compared to 2.13% for the preceding quarter June 2015 [Q1]. Return on Assets (ROA) stood at 0.36% for September 2015[H1] and Return on Equity stood at 6.86% for September 2015[H1]. Net NPA ratio is at 3.54% as at 30.09.2015 as compared to 3.55% as at 30.06.2015. Provision Coverage Ratio is at 58.83% as at 30.09.2015. Book Value per Share is Rs.124.94 as at 30.09.2015. CRAR of the Bank as on 30.09.2015 stood at 12.28% and 11.89% under Basel II & Basel III respectively. DELIVERY CHANNELS As at 30.09.2015 the Bank's ATM network reached to the level of 2998. The Bank opened its 3000 th ATM Corp Excel Branch with e-lobby at Bengaluru on 19.10.2015. During the first half year the Bank has opened 65 ATMs, across the country. Internet Banking Channels are witnessing a steady increase in usage with more than 10 lakh internet banking users. More than 23 lakh customers are availing SMS alert facility. No of debit cards issued reached to the level of 90.94 lakhs as at 30.09.15. Our Bank is the first Bank to launch the MUDRA Card based on RuPay Platform. The first MUDRA card of the Bank under the Pradhan Mantri MUDRA Yojana (PMMY) was launched by Dr. Hasmukh Adhia, IAS, Secretary, Dept. of Financial Services, Ministry of Finance, Govt. of India on 04.07.2015 at Head Office, Mangaluru. 5 P a g e
As a part of the Digital India Programme of the Government of India, the Bank has launched a high-tech paperless point of sale (PoS) terminal in association with M/s MRL POSNET and the Remit to India portal for inward remittance by NRIs at the benign hands of Dr. Hasmukh Adiha, IAS, Secretary, DFS, Ministry of Finance, Govt. of India. 162 E-lobbies across the country are operational and offering services like Cash withdrawal, Cash & Cheque deposit and Passbook printing. An email newsletter Corp Quest has been initiated by marketing division of the bank to address the high net worth clients by informing them about the new digital initiatives and product features of the Bank. A total of 55,000 emails were sent, which were acknowledged and appreciated by the customers. BRANCH NETWORK-PAN INDIA PRESENCE Bank has Pan India presence with wide network of 2364 branches. During the 12 months period ended September 2015, the Bank opened 241 Branches & 252 ATMs across the country. INTERNATIONAL FORAYS Corporation Bank has two representative offices in Dubai and Hong kong. RETAIL CREDIT Bank continues to focus on Retail lending during the FY 2015-16. The retail credit is marketed under the Brand name of Corp Schemes. The portfolio under Corp Schemes stood for the half year ended on 30.09.2015 at Rs.25253 crore as against Rs.22787 crore during the corresponding half year of the previous year with a growth rate of 10.82%. Retail Loan Basket, a unique incentive scheme to existing customers has been introduced wherein interest concession of 0.25% is offered under select Corp Schemes. A promotional campaign Mega Monsoon Mela [3M] was in operation for a period of 17 weeks from 01.06.2015 to 30.09.2015 with attractive interest rate and 6 P a g e
concessional processing charges under 7 important schemes, viz. Corp Home, Corp Vehicle, Corp Vyapar, Corp Mortgage, Corp Doctor Plus, Corp Rental and Corp Ghar Sansar Scheme to accelerate growth in Corp Schemes. PRIORITY SECTOR The total priority sector advance of the Bank stood at Rs.65338 crore as on 30.09.2015. The share of priority sector advances to adjusted net bank credit (ANBC) stood at 41.41% surpassing the regulatory target of 40%. The total agriculture advance of the Bank stood at Rs.24675 crore as on 30.09.2015, constituting 15.64% of the ANBC. The share of Weaker Sections Advances to Adjusted Net Bank Credit (ANBC) stood at 10.21% as on 30.09.2015, as against the target of 10% stipulated by RBI. The share of advances to women entrepreneurs to Adjusted Net Bank Credit (ANBC) stood at 5.71% as on 30.09.2015, as against the target of 5% stipulated by RBI. Bank has entered into MoU with NCDEX e markets Limited (NeML) for increasing credit flow against warehouse receipts. MICRO, SMALL & MEDIUM ENTERPRISES The MSME advance of the Bank as on 30.09.2015 stood at Rs.26261 crore as against Rs.23732 crore as on 30.09.2015, registering a Y-o-Y growth rate of 11%. The advances granted to micro enterprises stood at Rs.8659 crore as on 30.09.2015, constituting 3.49% of the ANBC as on 30.09.2015. Bank has disbursed a total of Rs.622.67 crore to 104647 accounts under three different categories of MUDRA (Sishu, Kishore and Tarun), which was launched on 08.04.2015 by the Honorable Prime Minister of India. FINANCIAL INCLUSION The Bank has reached a level of 39,39,931 Basic Saving Bank Deposit Accounts (BSBDA) with a balance of Rs.245 Crore as at 30.09.2015. Branchless Banking Units are presently operational in 4685 locations across India as at 30.09.2015 as against target of 4634 locations as at 30.09.2015. 7 P a g e
Progress made under Pradhan Mantri Jan Dhan Yojana (PMJDY): PMJDY is profitable and the Bank had earned a profit of Rs.2.70 crore from PMJDY accounts. This fact has been recognized by Ministry of Finance and the information has been shared with all the PSBs by Ministry of Finance. Our Bank is the first Bank to complete account opening in all unbanked villages and wards allotted well ahead of time. Under PMJDY, Our Bank has been allotted with 2291 villages grouped into 894 Sub Services Areas (SSAs) and 951 wards in urban areas spread across 23 states. Bank has opened 25,00,557 accounts under PMJDY (12,47,286 Rural and 12,53,271 urban) and the balance in these accounts stood at Rs.628.28 Crore as on 30.09.2015. Out of the above 25,00,557 accounts opened under PMJDY, RuPay card has been issued to 98.42% of the accounts and passbooks have been issued to 89.65% accounts. Further Aadhar card has been seeded with 60.38% of the accounts opened under PMJDY. The average balance in non-zero balance accounts is Rs.3298/- per account as against the national average of Rs.2254/-. The percentage of zero balance accounts has been on a declining trend and has reduced from 27.76% ( as on 30.06.2015) to 24.05% (as on 30.09.2015). BANCASSURANCE / SOCIAL SECURITY SCHEMES: Under Life Insurance, Bank has canvassed 546890 policies with premium of Rs.13528.65 Lacs and earned commission of Rs.496.05 Lacs as at 30.09.2015, which includes 536560 enrollments made under Pradhan Mantri Jeevan Jyothi Bima Yojana (PMJJBY) with premium of Rs.1550.65 Lacs and earned commission of Rs.219.98 Lacs. Under General Insurance Bank has canvassed 1191138 policies with premium of Rs.1542.77 Lacs and commission of Rs.154.75 Lacs as at 30.09.2015 which includes 1164326 enrollments made under Pradhan Mantri Suraksha Bima Yojna (PMSBY) with premium of Rs.139.71 Lacs and earned commission of Rs.23.28 Lacs. 8 P a g e
Under Atal Pension Yojana (APY), Bank has enrolled 10,616 accounts with a contribution of 1.64 Crore as at 30.09.2015. Bank has collected 12.05 lakh challans amounting to Rs.28,937 crore as at 30.09.2015 under all types of taxes and earned an income of Rs.2.10 crore as against 11.05 Lakh challans amounting to Rs.21.171 crore during corresponding figure of previous year. Under e-stamping, Bank has earned total income of Rs.184 Lacs as at 30.09.2015 as against corresponding figure of previous year of Rs.114 Lacs. TREASURY OPERATIONS The trading profit from treasury operation stood at Rs.114.53 crore for the half year ended 30.09.2015 as against corresponding figure of previous year of Rs.18.59 crore. The yield on investment portfolio of the Bank stood at 7.57% as at 30.09.2015 as against corresponding figure of previous year of 7.85%. MANPOWER PLANNING Bank is planning a comprehensive talent management, leadership development and succession planning process under its business process re-engineering exercise. High potential employees identified for this process will be groomed by way of a personal development plan that includes external/internal learning, stretch assignments, rotation, coaching and mentoring, among others. This exercise will enable the identified high potential employees to take up strategic and key roles at higher level at the time of requirement. Leadership workshops will be conducted for such executives in senior management. Employees are also encouraged to self-nominate themselves for the courses available in the bank to fulfil their training needs in line with their current job profile and also in other areas of their interest for self-development. 9 P a g e
NEW INITIATIVES The Bank has taken up a project to bring the latest, most modern version of core banking solution with Finacle software in collaboration with Wipro Ltd. This was a technology transformation initiative covering core transaction processing channels across branches, Internet and mobile banking, and included risk-based internal audit and enterprise performance management applications. The bank would be implementing Finacle Ver 10.2.17 which is latest and first amongst PSBs. The project aims at providing customers enhanced uptime and better response. The Bank has opened its first branch (Mangalore Kottara) with Finacle Package as the Core Banking Solution under pilot run basis on 23.09.2015 and another 50 branches will be operationalized by Dec. 2015. Bank has envisaged opening 3 forex hubs viz. Delhi, Bangalore and Mumbai, which will act as central processing unit for branches to ensure smooth processing of forex transactions resulting in enhanced customer service with the help of ever evolving technology. The first of such kind of Forex Hub has been opened at Bengaluru on 19.10.2015. A separate vertical has been created to reduce and control the avoidable operating expenses. The savings of lease rentals over the lease period to the tune of Rs.120 crore could be possible due to effective negotiation for lower rents, rationalization of carpet area of branches, surrendering of surplus space and accommodating some existing premises in the surplus space as identified in the space audit and shifting of offices to locations having low rentals. Bank has unveiled the 'Corp Bullion Plus' scheme for selling gold. Under this scheme, the gold will be sold to jewellery traders and manufactures at marketdriven prices for both domestic and export purposes. Initiation of the process for development of bank owned properties at various locations and empanelment of Government agencies as executing agency were taken up. Allotment of work for development of Ghaziabad-Hindon Towers, Cuttack, Salem and Lucknow properties were given to Prasar Bharti, Delhi. Steps are also taken for establishment of Bank s administrative blocks along with training academy, IT units, Branch and currency chest etc. in 8 acres land owned by the Bank in Bangalore. 10 P a g e
Solar Power Generation: In order to improve operational efficiency besides reducing expenses on power and as a part of green initiatives, Bank intends to implement Solar Generation Projects for its offices, Branches, ATM premises. Solar power generation will be taken up at about 1200 identified locations. Bank has commended the process of empanelling consultants which will be followed up with shortlisting of executing agencies. Bank has initiated multi-pronged strategy for the purpose of close and effective monitoring of the stressed assets and for recovery of NPAs by forming 4 separate verticals (at Head office, Circle Offices and Zonal Offices) for monitoring of stressed accounts and Recovery and up gradation of NPAs accounts. Bank has set up 2 separate verticals for monitoring of CASA growth in newly opened Branches and for monitoring of Payroll accounts. CSR & EMPOWERMENT INITIATIVES The Corporation Bank Economic Development Foundation (CBEDF) is a non-profit economic Trust, which has been pursuing its objectives of fulfilling social obligation in tune with corporate mission. All CSR activities of the Bank are conducted under the aegis of CBEDF. Financial grants to the extent of Rs. 615.85 lakhs were disbursed for execution of various projects of social concerns during the year 2014-15 through CBEDF. In the first half of the current financial year 2015-16, financial grant to the extent of Rs.226.53 Lakhs have been made by the Bank to CBEDF. Through Corporation Bank Self-Employment Training Institute, training is imparted free of cost with free boarding and lodging to trainees. Bank has setup 4 district level and 17 block level FLCC centers through Gramina Abhyudaya Financial Literacy and Credit Counseling Trust (GAFLCC Trust). These centers provide counseling for the borrowers on the basis of financial aspects including insurance, savings and credit related products/services in banks. Bank has setup a wing named Corp Kiran an association of wives of senior executives of Corporation Bank under Corporate Social Responsibility (CSR) for undertaking welfare activities like providing food, cloths, books etc to poor school children and inmates of orphanages, old age homes, destitute homes, helping physically and mentally challenged people, extending medical help to poor people in distress, supporting green initiatives etc. 11 P a g e
CSR through SHG formation - The Bank has spent Rs.121 Lakh in FY 2014-15 for promoting 12100 new SHGs in 5 districts of Karnataka. Through this major CSR initiative, Bank has helped about 181500 families of the members of SHG groups to become financially empowered. In the first half of the current financial year 2015-16, Bank has spent a sum of Rs.89.06 Lakh in the aforesaid direction covering 8906 new SHG s. NEW PRODUCTS Bank has been issuing Corp Bank International Credit Cards in two variants, viz. Classic and Gold in association with VISA which are entry level products. The Bank has plans to introduce higher variant of card such as Platinum Card to cater to the premium segment and Signature Card to cater to super premium and HNI segments. Bank has launched Corp FCNR Premium Account (FCNRP), a new deposit product introduced for NRI Clients. In this scheme the Bank accepts FCNR deposits and offers forward cover for the maturity proceeds to provide more yield to the customer. Bank has launched a new variant Corp Saral Plus Savings Account where the customers can avail of a bouquet of features and add-ons along with personal accident insurance. Bank also launched a special Mobile Banking App through Android and IOS Phones and Tablets through which customer can avail various facilities /services. Corporation Bank was the first Bank to launch a unique product E Mandate (Digital Mandate) Services in order to provide a modern and robust platform for large volume of repetitive payments, eliminate postdated cheques and also to extend Electronic Clearing Services (ECS) on pan India basis. Corp Global current account variant is available for Exporters and Importers who deal in Forex with various facilities. The Bank has launched two new premium Current Account Schemes Corp Club and Corp Privilege with many attractive add on facilities. The Bank has launched a Corp Global Card A Pre-paid Forex Travel Card. The Bank s digital passbook named as Corp e-passbook for customer convenience and as part of green initiative is gaining increased usage and popularity. 12 P a g e
Awards & Accolades Corporation Bank was awarded SKOCH Achiever Award for National SME enablement at New Delhi on 21st March, 2015. Shri. S R Bansal, Chairman & Managing Director of the Bank received the award from Shri. Jayant Sinha, Hon ble Minister of State for Finance, Govt. of India. 13 P a g e
Dr. Hasmukh Adhia, IAS, Secretary, Dept. of Financial Services, Ministry of Finance, Govt. of India launching the First MUDRA Card in the presence of Shri. S R Bansal, Chairman and Managing Director and Shri. B K Srivastav, Executive Director. Shri S R Bansal, Chairman & Managing Director of the Bank inaugurated Forex Hub at Malleswaram, Bengaluru on 19.10.2015. Shri P Paramasivam, Circle General Manager, Shri A K Vinod and Shri A P Suresh, Deputy General Managers were also present on this occasion. 14 P a g e
Financial Indicators [Rs. in crore] Sept 14 [Q2] Quarterly Results Sept 15 [Q2] Half Yearly Results Growth Q2/Q2 Sept 14 Sept 15 Growth 6M/6M Abs. % [6M] [6M] Abs. % Operating Profit 637.99 862.56 224.57 35.20% 1,335.55 1,671.06 335.51 25.12% Net Profit 160.51 188.61 28.10 17.51% 391.98 392.87 0.89 0.23% Total Income 5,229.06 5,434.65 205.59 3.93% 10,444.08 10,769.25 325.17 3.11% Interest Income 4,881.27 4,881.64 0.37 0.01% 9,793.53 9,935.67 142.14 1.45% Net Interest Income 983.10 1,161.29 178.19 18.13% 1,927.35 2,242.01 314.66 16.33% Non-Interest Income from Core Areas 276.23 309.43 33.20 12.02% 538.26 595.55 57.29 10.64% As at : 30.09.2014 30.06.2015 30.09.2015 Growth Abs Sept 15/ Sept14 Growth % Sept 15/Sept 14 Total Business 3,27,294 3,32,427 3,46,801 19,506 5.96% Deposits 1,91,265 1,92,102 2,04,228 12,963 6.78% Average Deposits 1,84,671 1,90,506 1,91,380 6,709 3.63% Net Advances 1,36,029 1,40,325 1,42,572 6,543 4.81% Average Advances 1,32,163 1,40,600 1,39,864 7,701 5.83% Investments 54,014 52,374 57,738 3,724 6.89% Average Investments 54,299 54,081 54,582 283 0.52% [Excluding RIDF,Shares, Bonds,VCF & MF investments] CRAR- Under Basel II 11.82% 11.91% 12.28% Tier I 8.12% 8.41% 8.70% Tier II 3.70% 3.50% 3.58% CRAR - Under Basel III 11.28% 11.28% 11.89% Tier I 7.91% 8.18% 8.70% Tier II 3.37% 3.10% 3.19% Net Worth 10,445 10,689 12,422 1,977 18.93% Gross NPAs 4.45% 5.43% 5.32% (as % to gross advances) Absolute 4,737 7,765 7,729 Net NPAs 2.92% 3.55% 3.54% (as % to net advances) Absolute 3,978 4,984 5,047 15 P a g e