Sector Bank Performance highlights for the Quarter/ Nine months ended 31 st December, 2015. 1. Performance highlights of the Bank for the 9 months ended 31.12.2015: Parameter FY 2014-15 31.12.14 (9Months) FY 2015-16 31.12.15 (9Months) [Rs. in crore] Growth Business 3,27,654 3,40,199 3.83% Deposits 1,87,707 1,97,738 5.34% Credit 1,39,947 1,42,461 1.80% Cost of Deposits 8.05% 7.57% Saving Bank Deposits 24,451 27,947 14.30% CASA 35,144 39,048 11.11% CASA Share 18.72% 19.75% NIM 2.01% 2.12% Operating profit 2062.08 2370.10 14.94% Non Interest Income 979 1251 27.78% Interest Income 14,675 14,677 0.01% Total Income 15,654 15,928 1.75% Net Interest Income 2,956 3,249 9.90% Net Profit 539.19 4.49-99.17% No. of Branches 2,198 2,399 201 No. of ATMs 2,821 3,040 219 ATM transaction fees 70.38 94.62 34.44% Provision coverage ratio 52.47% 56.40% Net worth 10592.26 12170.14 14.90% Bulk to total Deposits 51.61% 47.75% Business as at 31.12.2015 stood at Rs.3,40,199 Crore, recording an increase of Rs.12,545 Crores (growth rate of 3.83%)over the corresponding figure of previous year. A Premier Public Sector Bank Deposits as at 31.12.2015 stood at Rs.1,97,738 Crore registering a growth of Rs.10,031 Crores, (5.34%) over the corresponding figure of previous year. Credit portfolio as at 31.12.2015 improved by Rs.2,514 Crores, to reach Rs.1,42,461 Crore recording a growth of 1.80% over 31.12.2014. Cost of deposits of the Bank for the 9 months ended 31.12.2015 has declined to 7.57% from 8.05% for the corresponding figure of previous year.
Saving bank deposit recorded a growth of 14.30% over 31.12.2014 to reach Rs.27,947 Crore as at 31.12.2015. CASA deposit improved from Rs.35,144 Crore as at 31.12.2014 to Rs.39,048 Crore as at 31.12.2015, recording a growth of 11.11%. Share of CASA improved from 18.72% to 19.75% during the above period. NIM improved to 2.12% as at 31.12.2015 from 2.01% as at 31.12.2014. Operating Profit as at 31.12.2015 stood at Rs.2,370 Crore registering a growth of 14.94% over 31.12.2014. Non-Interest income registered a growth of 27.78% over Dec 2014 to reach Rs.1,251 crore as at 31.12.2015. Provision coverage ratio of the Bank as at 31.12.2015 improved to 56.40% as against 52.47% as on 31.12.2014. Net worth of the Bank has improved to Rs.12,170.14 Crore as at 31.12.2015, from Rs.10,592.26 Crore as at 31.12.2014 registering growth rate of 14.90%. Share of bulk to total deposits has come down from 51.61% as at 31.12.2014 to 47.75% as at 31.12.2015. 2. Performance highlights of the Bank Dec. 15 [Q3] over Dec.14 [Q3]: [Rs. in crore] As at As at Parameter 31.12.14 [Q3] (3 Months) 31.12.15 [Q3] (3 Months) Growth Business 3,27,655 3,40,199 3.83% Deposits 1,87,707 1,97,738 5.34% Credit 1,39,947 1,42,461 1.80% Cost of Deposits 7.96% 7.34% 0.62% Operating Profit 727 699-3.79% Net Profit 147-388 -363.83% Interest Income 4,881 4,741-2.87% Net Interest Income 1,029 1,007-2.15% Total Income 5,210 5,159-0.98% Net Interest Margin [NIM] 2.09% 1.94% Cost to Income ratio 46.67% 50.92% 2 P a g e
CAPITAL INFUSION During the first 9 months of the current FY 2015-16, Government of India and LIC have infused Rs.857 Crore and Rs.143 Crore respectively by way of equity which has strengthened the Networth of the Bank. Networth of the Bank as at 31.12.2015 stood at Rs.12,170.14 Crore increased from Rs.10,592.26 Crore as at 31.12.2014. BUSINESS Total Business of the Bank reached to the level of Rs.3,40,199 Crore as on 31.12.2015 as against Rs.3,27,654 Crore in 31.12.2014, showing a y-o-y growth of 3.83%. Deposits of the Bank increased to Rs.1,97,738 Crore as on 31.12.2015 from Rs.1,87,707 Crore as on 31.12.2014, exhibiting a y-o-y growth of 5.34%. Advances of the Bank stood at Rs.1,42,461 Crore at the end of December'15 and grew by 1.80% as against Rs.139,947 Crore at the end of December'14. Saving deposits increased by 14.30% on y-o-y basis to reach a level of Rs.27,947 Crore as against Rs.24,451 Crore of corresponding period in previous year. PROFIT Operating Profit for December 2015 [9M] stood at Rs.2,370.10 Crore as against Rs.2,062.08 Crore as on December 2014 [9M] with a growth rate of 14.94%. INCOME / EXPENDITURE Total Income during 9 months period ending 31.12.2015 reached to the level of Rs.15,928 Crore as against Rs.15,654 Crore over corresponding previous year 31.12.2014 with a growth rate of 1.75%. 3 P a g e
Net Interest income for 9 months period ending 31.12.2015 stood at Rs.3,248.89 Crore with a growth rate of 9.90% as against Rs.2956.35 Crores as on 31.12.2014. Non-Interest Income during 9 Months period ending Dec-2015 stood at Rs.1251 Crore with a growth rate of 27.81% as against Rs.979 crore as on 31.12.2014 Income from ATM transactions fee on Y-o-Y basis has recorded a growth rate of 34.44%. The income for ATM transactions fees for December 2015 [9M] stood at Rs.94.62 crore as against Rs.70.38 crore for December-2014 [9M]. Due to sustained efforts the Bank was able to control and reduce the cost of deposits. Hence, the interest expense on deposits was lower by Rs.307.53 crore (-2.76%) over 9 Months period of corresponding Previous year. Similarly, the Bank has also undertaken many measures to control the operating cost which has started yielding results. Total expenses for December 2015 [9M] reduced to a level of Rs.13,558 Crore from Rs.13,592 Crore as at December 2014 [9M], thereby reduction of Rs.33.88 Cr. (-0.25%) IMPORTANT RATIOS For the 9 Months period ending as on 31.12.2015, Cost of Deposits reduced to 7.57% as compared to 8.05% for the preceding 9 months ending 31.12.2014. [Y-o-Y basis]. Provision Coverage Ratio improved to 56.40% as at 31.12.2015 from 52.47% as at 31.12.2014. Gross NPA ratio is at 7.32% and Net NPA ratio stood at 4.84% as on 31.12.2015. CRAR of the Bank as on 31.12.2015 under BASEL III at 11.49%. 4 P a g e
PRIORITY SECTOR Total Priority Sector Advances stood at Rs.65,858 Crore as on 31.12.2015. The share of priority sector advances to Adjusted Net Bank Credit (ANBC) stood at 41.74% surpassing the regulatory target of 40%. Outstanding Agricultural advances reached the level of Rs.25,439 crore as at 31.12.2015 as against Rs.18,749 crore as on 31.12.2014 with a growth rate of 35.68%. Share of Total Agricultural Advances to ANBC stood at 16.12%. The lending to SF/MF stood at Rs.11222 crores (7.11 % of ANBC) surpassing the stipulated level of 7 %. Share of Weaker Section advances to Adjusted Net Bank Credit stood at 10.77 %. The bank has surpassed the regulatory target of 10%. Share of Women entrepreneurs to Adjusted Net Bank Credit stood at 5.94% as against the target of 5% stipulated by RBI. Bank has introduced Kisan Mitra Credit Card a scheme to canvass Kisan Credit Card by Bank Mitras (BCs), wherein Bank Mitras have been empowered to sanction (in principle) KCC loans subject to approval by the Branch Manager. This scheme will help in improving Bank s penetration under agri. loan portfolio. MOU with Star Agri Warehousing and Collateral Management Ltd (STAR AGRI) has been renewed and fresh MOU has been executed with M/s. NCDEX E Markets Ltd (NEML), Three Ware House Service providers (WSPS) and National Bulk Handling Corporation under Corp Agriculture Produce loan. The Bank has received 3 Awards under Mid Sized Bank Category from Chamber of Indian Micro and Small & Medium Enterprises (CIMSME). RETAIL CREDIT Festival celebration offer (FCO), a promotional campaign was in operation for a period of 3 months from 01.10.2015 to 31.12.2015 with attractive interest rates and concessional processing charges. Focus on Retail lending continued during the FY 2015-16. The retail credit is marketed under the Brand name of Corp Schemes. The portfolio under Corp Schemes as at 31.12.2015 stood at Rs.26,107 crore as against Rs.23,522 crore during the corresponding period previous year with a growth rate of 11.00%. 5 P a g e
MICRO, SMALL & MEDIUM ENTERPRISES The MSME advances of the Bank as on 31.12.2015 stood at Rs.26,880 Cr.as against Rs.24,347 Cr.as on 31.12.2014, thereby registered a growth rate of 10%. Advances granted to Micro enterprises stood at Rs. 10,337 Crore as on 31.12.2015, constituting 6.55 % of ANBC. Bank has achieved 94.60 % of annual disbursement target for MUDRA loans under Pradhan Mantri MUDRA Yojana [PMMY]. An amount of Rs.856.10 crore is disbursed to 1.41 lakhs of beneficiaries under PMMY during the current year. 13613 MUDRA cards have been issued for the working capital limits under PMMY with a sanctioned limit of Rs. 171.54 crore. FINANCIAL INCLUSION All 1880 villages allotted to our Bank as per Financial Inclusion Plan 2013-16 has been covered by providing banking infrastructure under Financial Inclusion. As a part of Financial Inclusion, bank has actively participated in implementation of Pradhan Mantri Jan Dhan Yojana (PMJDY) and all the social security schemes introduced by Government of India. Under PMJDY, the Bank has opened accounts of all households in the allotted villages and wards. Till 31.12.2015, Bank has opened 25.56 lakh accounts and mobilized an amount of Rs.663.97 Cr in these accounts. Out of the above, 22.78% of the accounts are zero balance accounts against the national average of 31.81%. Average balance in the non-zero balance accounts is Rs.3364/- which is one of the highest (National average is Rs.2161/-). Issued Rupay debit cards to 98% of the account holders and passbook to 90% of the account holders. Aadhaar number has been seeded in 61% of the PMJDY accounts, which is one of the best. SMS alerts are being sent to the customers for DBT/DBTL transactions. 6 P a g e
Fixed point Bank Mitras have been engaged at all SSAs where bank branches are not opened. 90% of Bank Mitras are active and carry out daily transactions. Bank has formulated attractive remuneration package to Bank Mitras and hence the attrition of Bank Mitra is one of the lowest. Average transaction per Bank Mitra per month is 302, which is one of the best. A separate incentive scheme has been formulated for Bank Mitras to get zero balance account funded (i.e Rs.2000/- for getting funded in 200 zero balance accounts and Rs.1000/- for each additional 100 accounts). Empowered Bank Mitras to sanction (in principle) Kisan Mitra Credit Card loans upto Rs.1 lakh, subject to approval by the Branch Manager. Financial literacy and training are being imparted to the Bank Mitras periodically to ensure updating their knowledge on banking products and other schemes. DELIVERY CHANNELS As at 31.12.2015 the Bank's ATM network reached to the level of 3040. As of 31.12.2015 the Bank has installed 70,597 POS Machines (including Mobiles POS Machines) at various merchant establishments. During the quarter the bank has added 43 KIOSK outlets, whole self service Off-site counters, taking total number to 205. No of debit cards issued reached to the level of 94.27 lakhs as at 31.12.15. The Bank has received two runner-up awards for National Financial Switch for its performance in acquirer transactions and immediate payment service. (IMPS). The Bank has also received the winner award jointly with Indian Bank for Cheque Truncation System. BRANCH NETWORK-PAN INDIA PRESENCE Bank has a pan India presence with wide network of 2399 branches. During the calendar year i.e, from 01.01.2015 to 31.12.2015, the Bank opened 215 Branches. 7 P a g e
INTERNATIONAL FORAYS Corporation Bank has two representative offices in Dubai and Hong kong. BANCASSURANCE / SOCIAL SECURITY SCHEMES: In terms of The Department of Financial Services, Ministry of Finance, Govt. of India instructions, our Bank rolled out Pradhan Mantri Jeevan Jyothi Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension Yojana (APY), from 1st June, 2015. Performance under these schemes are as under: Scheme No. of enrollment PMJJBY 551056 PMSBY 1204048 APY 15274 TOTAL 1770378 Bank has reached a level of 39.78 lakhs Basic Saving Bank Deposit Accounts (BSBDA) with a balance of Rs.256.97 crore as at 31.12.2015. The Bank maintained No.1 Position in LIC Premium mobilization amongst channel partners of LIC. The bank has earned an income of Rs.677.82 lacs from life insurance business for the period ended 31.12.2015 against Rs.473.22 lakhs during the same quarter for the previous year. Under General Insurance business, Bank has mobilsed premium of Rs.2234.77 lakhs and earned Non-Interest income of Rs.196.50 lakhs. MANPOWER PLANNING In order to improve Talent Management and leadership development strategies, Performing employees with good potential and ability to succeed in higher level of jobs will be identified and groomed by way of personal development plan, consisting of external/internal learning, stretch assignments, rotation, coaching & mentoring etc., 8 P a g e
During the FY 2014-15, training has been provided to around 8246 employees on various fields. Credit Programmes, Behavioural and Induction programmes had a major share of the trainees among the other trainings. NEW INITIATIVES Our Bank is one of the front runners in providing robust, Standardization Testing Quality Certificate (STQC) certified, 1.5.1 version compliant Micro ATMs to all the Bank Mitra. These Micro ATMs are interoperable, capable of carrying out Aadhaar Enabled Payment System (AEPS) transactions, pin based Rupay card transactions. AEPS off-us (interbank) transactions are also being carried out in our Micro ATMs. New CBS platform Finacle has been introduced in newly opened branches at Kottara, Mangalore successfully. The Bank has identified further 50 pilot branches have been aligned for migration to the New CBS platform. In the Intranet Banking portal, authentication by using digital signature for high-value transactions has been introduced. In order to improve operational efficiency besides reducing expenses on power and as a part of green initiatives, Bank intends to implement solar generation for its offices, Branches, ATM premises. Solar power generation will be taken up at about 1200 identified locations. CSR & EMPOWERMENT INTIATIVES The Corporation Bank Economic Development Foundation (CBEDF) a non-profit economic Trust 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. 331 lakhs were disbursed for execution of various projects of social concerns till 31.12.2015 during the year 2015-16 through CBDEF. Amongst others, CBEDF implemented following major CSR projects during FY 2015-16. CorpKiran Project of CBEDF For the welfare of underprivileged, through CorpKiran, Bank has initiated several welfare activities through various Institutions. The major activities included providing food, books, computers, water purifier etc., to poor school children and inmates of orphanages, old age homes, destitute homes, helping physically and mentally challenged people, participation in Road Safety week at Mangalore. Out of the 78 9 P a g e
activities conducted under this scheme, 8 Government Schools were sanctioned with a financial grant to purchase computers, LCD TV and multimedia projectors to equip them with modern technology. Around 10 old age homes and destitute homes are provided with daily needs like, grocery, blankets, ceiling fans, etc. Sanitation activities like construction of toilet blocks for girls in the Government Schools was also carried out under Corp Kiran. Other activities under the project include assisting blood banks in conducting blood donation camps, donation of blood weighing scale to the blood banks, etc. Corporation Bank Self Employment Training Institutes [COBSETI] COBSET Institutes at Chikmagalur and Kudige in Kodagu district are regularly conducting training programmes to train the rural un-employed youth of these two districts. During FY-2015-16, 1399 candidates have been trained in various skill based activities like, Dairy, Computer hardware and networking, beautician courses, etc. The settlement rate of the candidates trained by these institutes is nearly 80% till December 2015. The programmes conducted at the institute are compulsorily residential and free of cost. Both the Institutes have so far trained about 29000 unemployed youths in various skills from inception with a settlement rate nearing 80%. During the grading exercise for the FY 2014-15 by MoRD, COBSETI- Chikmagalur secured AA and COBSETI- Kudige secured A grade for their performance. Gramina Abhyudaya Financial Literacy Trust [GAFL Trust] GAFL Trust sponsored by the Bank is regularly conducting financial literacy camps at various places through Financial Literacy Centres [FLCs]. These Centres (23 Nos) educate people about the usefulness of the Bank account for all their economic needs and empowerment. The Centres also guide the common people for enrolment under various Social Security Schemes of Government of India. During April- December 2015-16, the Trust conducted 747 Financial Literacy Camps at schools, colleges, other institutions and SHGs, involving 21353 persons. SHG formation The Bank has promoted 11500 new Self Help Groups (SHGs) in Hassan, Mandya, Belgaum, Tumkur & Ramanagara districts of Karnataka during April December 2015. Through this major initiative, Bank has ensured that the members of groups have access to banking facilities including deposits and loans. Swachh Vidyala Campaign Bank successfully completed renovation of 114 dysfunctional toilets in 53 schools across the country under Swachh Vidyala Campaign as directed by MoHRD, GOI. The prompt completion of the project in time has been appreciated by the Ministry. 10 P a g e
NEW PRODUCTS Pradhan Mantri Awas Yojana (PMAY) a new housing loan scheme for the urban poor has been introduced. A new product Corp Home Smart a variant of housing loan scheme with running account facility has been introduced which gives added comfort of interest saving and liquidity. Retail Loan Basket, a unique incentive scheme to existing customers has been introduced where in interest concession of 0.25% is offered under select Corp Schemes. Two new payroll variants namely Corp Pay Elite & Corp Pay Delite has been launched exclusively for Government Employees with free accidental insurance as well as free term life insurance facility. Bank has unveiled the Corp Bullion Plus scheme for selling gold. Under this scheme, the gold will be sold to jewellery traders and manufacturers at market driven prices for both domestic and export purposes. With a view to contain hard core NPA in small value accounts with balance upto Rs.10.00 lakhs, the Bank has launched New Special OTS Scheme named Corp-Riyayati- III. 11 P a g e
Awards & Accolades Corporation Bank has won 3 BEST SOCIAL BANK EXCELLENCE AWARD 2015 in the Mid Sized Bank category namely: 1. Best Social Bank 2. Best Rural Bank 3. Best Bank for participation in Government Schemeinstituted by The Associated Chambers of Commerce & Industry of India (ASSOCHAM). The Awards were received by Chairman & Managing Director of the Bank from Shri Jayant Sinha, Hon ble Minster of State for Finance, Govt. of India at 11th Annual Banking Summit held at Mumbai. Corporation Bank has bagged MSME Banking Excellence Awards-2015 instituted by Chamber of Indian Micro and Small & Medium Enterprises.[CIMSME]. The Bank has won three awards under Mid Sized Bank category namely: A] Best MSME Bank Award- Winner. B] CSR & Business Responsibility Award - Runner Up. C] Best Bank Award under MUDRA Yojna - Runner Up. The Awards were received by Chairman & Managing Director of the Bank from Shri. Piyush Goyal, Hon ble Ministerof state with independent charge for Power, Coal, New & Renewable Energy, Govt. of India. 12 P a g e
Dec 14 [Q3] Financial Indicators Quarterly Results Dec 15 [Q3] [Rs. in crore] Financial year Results Growth Q3/Q3 Dec 14 Dec 15 Growth 9M/9M Abs. % [9M] [9M] Abs. % Operating Profit 726.54 699.04-27.50-3.79% 2,062.08 2,370.10 308.02 14.94% Net Profit 147.21-388.38-535.59-363.83% 539.19 4.49-534.70-99.17% Total Income 5,209.55 5,158.52-51.03-0.98% 15,653.63 15,927.77 274.14 1.75% Interest Income 4,881.27 4,741.11-140.16-2.87% 14,674.80 14,676.78 1.98 0.01% Net Interest Income 1,029.01 1,006.88-22.13-2.15% 2,956.35 3,248.89 292.54 9.90% Non-Interest Income from Core Areas 260.62 299.18 38.56 14.80% 798.88 894.73 95.85 12.00% As at : 31.12.2014 30.06.2015 30.09.2015 31.12.2015 Growth Abs Dec 15/Dec14 Growth % Dec 15/Dec 14 Total Business 3,27,654 332,427 3,46,801 3,40,199 12,545 3.83% Deposits 1,87,707 192,102 2,04,228 1,97,738 10,031 5.34% Average Deposits 1,84,549 190,506 1,91,380 1,90,824 6,275 3.40% Net Advances 1,39,947 140,325 1,42,572 1,42,461 2,514 1.80% Average Advances 1,32,924 140,600 1,39,864 1,40,672 7,748 5.83% Investments 53,257 52,374 57,738 55,661 2,404 4.51% Average Investments [Excluding RIDF,Shares, Bonds,VCF & MF investments] CRAR- Under Basel II 53,708 11.75% 54,081 11.91% 54,582 12.28% 55,203 12.07% 1,495 2.78% Tier I 8.09% 8.41% 8.70% 8.48% Tier II 3.66% 3.50% 3.58% 3.59% CRAR - Under Basel III 11.26% 11.28% 11.89% 11.49% Tier I 7.90% 8.18% 8.70% 8.27% Tier II 3.36% 3.10% 3.19% 3.22% Net Worth 10,592 10,689 12,422 12,170 1,578 14.90% Gross NPAs 4.88% 5.43% 5.32% 7.32% (as % to gross advances) Absolute 6,932 7,765 7,729 10,707 Net NPAs 3.27% 3.55% 3.54% 4.84% (as % to net advances) Absolute 3,978.17 4,984 5,047 6,897 13 P a g e