Canara Bank (CANBK) Q2 2027 Earnings Call Transcript

Q2 FY27 Earnings Conference Call. Today, we have with us the senior management team of Canara Bank represented by –    

Shri. Brajesh Kumar Singh, MD and CEO Sir Shri. Hardeep Singh Ahluwalia, ED Shri. Bhavendra Kumar, ED and Shri. S. K. Majumdar Sir, ED.

• With this, I hand over the call to the MD Sir for his opening remarks post which we will have a Q&A Session. Thank you and over to you, Sir.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Thank you. Thank you there. I just welcome all our esteemed analysts to this Analyst Meet after having published our September quarterly results. And I am very happy to inform some of the salient features, though we have already provided the full Balance Sheet and Profit & Loss statement posted.    

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So, this quarter crossed a very important milestone of ₹30 lakh crores of business and our Total Global business stands at ₹30,72,000 crores at 15.88% YoY growth. Then Global Deposit also grew by 13.13% YOY and it is as of now at ₹16,97,000 crores. Global Advances grew very robustly at 19.46% YOY, ₹13.75 lakh crores. And the most heartening to note is our core business, the income from core business, that is Net Interest Income, grew by 20.39% and it is at ever highest YOY also and ever highest outstanding gross amount at ₹11,000+ crores. Net Profit also grew very handsomely and it is also ever highest profit of any quarter at ₹5,175 crore and YOY is 8.40%. CRAR is very well placed at 17.19% due to plough back also and at the same time density of our risk weighted asset has also improved like anything. The PCR coverage also, we have increased it by 175 basis point YOY basis and now it stands very robustly at 95.34%. Gross NPA; our total asset quality has improved like anything. Our guidance for the full year 31st March, 2027 was for Gross NPA 1.50 and now we have already improved it at 1.33%. And Net NPA also we said that it will be around 0.40%. It has further improved and it is as of now only at 0.30%.

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So, if we go granularly in the Advances side, the advances growth was broad based. I mean, every RAM and large corporate everybody has equally contributed. To discuss, RAM grew by 21.03%. Within RAM; Retail Credit at 31.61%. And even we in Retail if we talk about Housing Loan, it has also grown 17.35%. All these numbers are YOY. Vehicle loan grew by 25.50%. If we talk about MSME also, there is a very good growth at 15.49%. And in Earning Per Share also the growth is 5% and we are at ₹22.06. There is an improvement of 21 basis points on YOY versus in credit cost and it is very handsomely placed at 0.47%. And the Slippage ratio has been contained like anything and the annualized Slippage ratio is only 0.58% and there is an improvement of 18 basis points.

• So, let me conclude by just giving you how we have fared against our guidance, which we gave in the start of the year.    

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So, we said we will grow Total Business by 10%-11%. Against that, we have grown 15.88%. Advances we said 11%-12%, we have grown 19.46%. Deposit growth we said 9%-10%, now we have growth at 13.13%. CASA we have said that it will be in between the range of 30%-32%, which as of now we are at 29%. We have protected that at 29% in spite of the fact that we could garner $5.8 billion of FCNR(B) deposit, which in rupee terms is close to ₹55,000 crores, which is all on that Term deposit. Had it not been there, we would have also achieved or surpassed this guidance also. Despite the Term deposit and that too in a very short span of time, we have still maintained it at 29%. NIM, we said it will range between 2.50%-2.60%, we are at 2.53% on annual basis and on quarterly it is 2.55%; even better. Gross NPA, I already discussed. Net NPA also I discussed. PCR also discussed. Slippage ratio; guidance was 0.80%, now it is only at 0.58%. Credit cost also I have said that we have improved and against the guidance of 0.75% it is only 0.47%. Return on Equity we said 16.5% and it is 2% more around 18.49%, to be precise. Earnings Per Share also we said ₹20 and it is at ₹22.06. Return on Average we said between 1.01%-1.05%, we are at 1.04%.

• So, you see, barring CASA, that too I have explained why, we have surpassed by good margins on all the guidance.
• Now, I shall be open to your analysis, your questions, any further clarification from our side and any guidance from your side, please.

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Q&A Session

• Moderator:
• Thank you, Sir. We will start the Question & Answer session. Participants those who have any question please raise your hand.
• We will take the first question from the line of Maru, please go ahead with your question.
• Ms. Maru – Analyst:
• Yeah. Hello, Sir. Good evening. Congratulations.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Good evening, Maru. Yeah.
• Ms. Maru – Analyst:
• Yeah, congratulations, Sir.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Thank you.
• Ms. Maru – Analyst:
• Sir, I just had a couple of questions, what would be your incremental yield on corporate loans currently and what would it be last quarter? As in, what was the incremental yield on corporate loans in the second quarter and what was it in the first quarter? And likewise, on Gold loans, your yields?
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Okay, that I will provide you. Yeah, we have got. Yes, let me see.
• Mr. Hardeep Singh Ahluwalia – Executive Director, Canara Bank:
• The corporate the yield is 7.72% and on gold it is increased to 9.10%. It has improved from 8.96% to 9.10%.

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- Ms. Maru – Analyst:

• Okay. And corporate has improved?
• Mr. Hardeep Singh Ahluwalia – Executive Director, Canara Bank:
• From 7.68% it has improved to 7.72%.
• Ms. Maru – Analyst:
• Okay, Sir. Got it, got it. And, Sir, what is your take on margins from here on? Do you see margins improve from here on too?
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• I guess we will be able to sustain this NIM at 2.55% considering, I mean, there is a rate hike also of 0.25 basis point. We are at 25 basis points. And our Repo rate linked book is 53%. And again, MCLR will be also repriced but at the same time it will further depend upon how deposits and advances are getting repriced. But as of now, as we speak, 53% of book is already repriced.
• And then this season there will be a lot of festivity also, so there will be a lot of underwriting under retail lending and growth propelled through widespread consumption. So, we see there is good, good margin also.
• In Retail, our margin is 8.65% of our earning. So, that way it will improve. 53% already repriced.
• Ms. Maru – Analyst:
• Got it, Sir. Sir, and again on Gold loans, competition keeps increasing. I know Canara Bank has done well, it's one of the leaders there, but competition keeps increasing. So, do you see pressure on yields going ahead? Your yield has actually improved QoQ but do you see pressure on yield going ahead, given that competition keeps rising, even large NBFCs are now getting into it in a big way?
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• So, we work under a very competitive environment. So, that we are used to, I mean, taking on competition. So, yes. But one thing I would like to say, Gold loan we are doing for years all together. And I think we are very much skilled in doing Gold loans. All our people are very smart. We have got a very good setup of appraisers, gold safes. So, the whole ecosystem we have got, it is very well placed. We are market leaders also. And as

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of now also we are not pricing very aggressively, like this NBFC and all. And we are always below NBFC and they can't be below us considering they borrow from us only and then they further go on lending. They are not a deposit taking NBFCs.

• So, yes, competition is there, but we know this business, how to do this business. And we will be further bettering, it will be not dipping, I guess.
• Ms. Maru – Analyst:
• Okay, Sir, perfect. Thank you so much.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Thank you, Maru.
• Moderator:
• Thank you. We will take the next question from the line of Jay Mundra. Please go ahead.
• Mr. Jay Mundra – Analyst:
• Sir, good evening, and congratulations on a steady quarter.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Good evening, Jay. Thank you.
• Mr. Jay Mundra – Analyst:
• Good evening, Sir. Sir, a few questions. First is the bulk deposit, while we have raised huge FCNR(B), but it looks like that the bulk deposit has not moved either ways. I was under the impression that, you know, the bank may be tempted to reduce bulk deposit or may replace bulk by FCNR. So, what is your thought process? Can bulk deposit be decreased? The entire FCNR will be in Retail TD only, right? Is that understanding correct?
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Yeah, let me request Ahluwalia ji to answer.

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- Mr. Hardeep Singh Ahluwalia – Executive Director, Canara Bank:

• See, Sir, last quarter we have increased the bulk and CD by ₹12,000 crores. So, from ₹4,25,000, the bulk has gone to ₹4.37 lakh. Now, this quarter, we have consciously not taken and maintained at the June level from ₹4.37 lakhs to ₹4.38 lakhs. During this process, we have decreased the cost of deposit by 1% because the FCNR deposits were at 1% less than the bulk’s prevailing market price.
• Mr. Jay Mundra – Analyst:
• Right.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• So, we have grown by 19% in Advances also. We have grown 13% in Deposits. So, there is a gap also, so it was funded there also. The part of it was utilized there.
• Mr. Hardeep Singh Ahluwalia – Executive Director, Canara Bank:
• For credit.
• Mr. Jay Mundra – Analyst:
• Fully?
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Fully.
• Mr. S. K. Majumdar - Executive Director, Canara Bank:
• With robust credit growth, it was utilized. No, it has replaced. What you understood was correct, it replaced bulk deposit. It fully replaced the bulk deposit. Otherwise, had FCNR not been there, bulk deposit would have been more by ₹30,000-₹35,000 crores. I mean, bulk CD put together.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Yes.
• Mr. Jay Mundra – Analyst:
• Right-right, okay. And in the process, you have saved 100 basis point cost on bulk, right?

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- Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:

• Yes, yes. Wherever we have replaced it, we have saved 100% . Consider it was at 6.5% and that was at 7.5%. Further we have saved on cost of CRR and SLR also, which is also 22-23 point. Consider this were not supposed to be a charge CRR, SLR also. So, again, there is that earning also. Yeah.
• Mr. Jay Mundra – Analyst:
• Right. So, Sir, I'm not able to understand your NIM trajectory because 50% of the book will move up by 25 basis point immediately or it is already moved. And bulk deposit, even if the rate seems still softer or stable type, right. So, mathematically, the NIM should go up only. What is the offset?
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Okay-okay, I'll answer. This quarter, the effect of that FCNR(B) leverage will also come, wherein we do not have a spread of 2.55%. The spread in this, $3.2 billion, in leverage is only 40 basis or 50 basis points. So, that will be compensated with this. Little more, it will be compensated more. So, that impact will also come from this quarter know.
• Mr. Jay Mundra – Analyst:
• OK, sure. And, Sir, in Interest Income, Interest Income on Advances, was there any one off? I mean, the calculated yield and even the reported yields are up by, you know, 3-4 basis point, on the loan yield. Is there anything which helped us in improving the loan yields?
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• No, no, no. It is only since our average advances has continuously increased and it never dipped, you see. So, due to average advances on the trading side and very calibrated underwriting also we have done. We have not done any sub-seven loans. Rather, we have settled some of the sub-seven loans. And at the same time, we have settled some of the high cost deposit, like Mr. Ahluwalia told.
• So, that's why this increased earning is there. It is merely on the count of average outstanding advances going one side northward only.

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- Mr. Jay Mundra – Analyst:

• Right, understood. And, Sir, your Gold loan, total Gold loan, in rupees crore and how much of that is Agri gold and Retail gold? Sir, if you have that number?
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Okay. So, ₹2.82 lakh crore is the total Gold loan. Out of which, Agriculture is ₹1.74 lakh crores and ₹1.08 lakhs crores is the Non-agriculture. So, all together ₹2.82 lakh crore.
• Mr. Jay Mundra – Analyst:
• Right. Last question, Sir, from my side is on AFS reserves. If you can quantify what was the AFS reserve at the end of Q1 and at the end of Q2? Yeah.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Number I will also give but in percentage terms, I would like to say, 80% of our investment book is HTM, 20% is other than HTM - AFS and FVTPL. Out of that also 15% book, 15 point some odd percentage, is AFS reserve; AFS. So, even if HTM is not supposed to be…if you are asking about that dent of mark-to-market, so HTM is not supposed to be hit by MTM. But AFS is also not hitting our profit and loss. That will directly go to AFS reserve. Only FVTPL, which is less than 4% , around 4%, there the impact of mark-to-market is coming. That also I can quantify.
• Mr. S. K. Majumdar - Executive Director, Canara Bank:
• Jay, you wanted to know that what is the increased loss AFS? The loss for the quarter is around ₹1,300 crore for the quarter in AFS.
• Mr. Jay Mundra – Analyst:
• OK, but that is adjusted in AFS reserve, right? Nothing to do with P&L.
• Mr. S. K. Majumdar - Executive Director, Canara Bank:
• Exactly. It is it is adjusted in AFS.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Yes.

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- Mr. Jay Mundra – Analyst:

• Right. And, sorry, Sir, you are mentioning about the sensitivity of FVTPL.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Yeah, FVTPL, last quarter our earning was ₹55 crore, this year…
• Mr. S. K. Majumdar - Executive Director, Canara Bank:
• This year loss 55.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• This year, loss ₹55 crore. Last quarter, earnings was around ₹500 crore,
• Mr. S. K. Majumdar - Executive Director, Canara Bank:
• ₹555 crores.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• ₹555 crores. Altogether, loss is, say, ₹600 crore.
• Mr. Jay Mundra – Analyst:
• Right. Sure, Sir.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• That is there.
• Mr. Jay Mundra – Analyst:
• Lastly, Sir, if you can, I think I heard you on TV saying about this drought situation is not very problematic as of now. But are you seeing anything that can reduce your recovery efforts even in those affected district? How can that pan out? I mean, if you can…
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Not much. 3 states have been declared drought-affected.

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- Mr. Hardeep Singh Ahluwalia – Executive Director, Canara Bank:

• Part of Karnataka, then Maharashtra. These 2 states are only affected, that too part. There will not be much effect on the recovery because restructuring is happening through SLBC.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Total exposure to drought-prone area is around ₹10,000 crore to ₹13,000 crore.
• Mr. Hardeep Singh Ahluwalia – Executive Director, Canara Bank:
• ₹13,900.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• That will not affect much. ₹13,900 some odd amount. Again, some dispensation also will come from SLBC side. That has already come. We’ll sell through that, I guess.
• Mr. Jay Mundra – Analyst:
• Right. So, Sir, these amount, let’s say ₹13,000-₹14,000 crore, that will be restructured, right? Or can be restructured?
• Mr. S. K. Majumdar - Executive Director, Canara Bank:
• Absolutely
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Yes. Restructured, or deferment is there, moratorium is there, some restructuring, some additional support also it comes. It is decided state by state by State Level Bankers’ Committee.
• Mr. S. K. Majumdar - Executive Director, Canara Bank:
• SLBC has already helped.

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- Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:

• And like last to last quarter, emergency line of credit was there, so that helped. Some kind of dispensation every time comes. This will be also not an exception, you see.
• Mr. Jay Mundra – Analyst:
• Right-right. No, Sir, my worry is by the time dispensation come, can these account become NPA or they will be straightaway restructured?
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• So, like I've said, there is no stress in my book going further also. Even if you take SMA 0 into consideration, total stress is only 2.42%. Slippages also last quarter were only 0.15%. That way we do not see or perceive any stress in our book.
• Mr. Jay Mundra – Analyst:
• Right. This 2.4% is all ticket size, right, including below ₹5 crore also?
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Every ticket. Yes-yes. If you talk about more than ₹5 crore, then it is less than 1%; 0.30% only.
• Mr. Jay Mundra – Analyst:
• Right-right. Okay, Sir. Great and thank you and all the very best.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Thank you. Thank you, Jay.
• Moderator:
• Thank you. We will take the next question from the line of Sushil Choksey. Please go ahead.
• Mr. Sushil Choksey – Analyst:

Sir, congratulations to Team Canara on excellent performance.

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- Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:

• Thank you, Choksey Sahab.
• Mr. Sushil Choksey – Analyst:
• First question to you, Sir. Your key ratio table, page number...I have heard whatever you have replied to Maru and Jay Mundra.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Yeah.
• Mr. Sushil Choksey – Analyst:
• So, I have a specific question. As you are saying, there is no stress, margins have bottomed out, your efforts on saving CASA is looking good, irrespective of FCNR deposit taking up the toll. Would you like to revise your guidance for the year on any parameters starting from ROA, ROE, cost to income, CD or any of the parameters?
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Like I said, Sir, these were all decided before my joining the bank, and we are just respecting that. I said, I will work hard, team will work hard, we will better it. You have seen everywhere we have already bettered it, and we will sustain it. I said, instead of going and revising my own guidance, let me better it. We are bettering it only. We are not restricting ourself anywhere, we are not sticking to guidance. You see, against Advances growth of 11%-12%, we are booking 19%. We are just concentrating ourself to let this growth story be a very sustainable one. So, we have no plan to evaluate, Sir. Yeah.
• Mr. Sushil Choksey – Analyst:
• Sir, as of October 14th, what is the visibility on RAM business being festive quarter and Karnataka has a big festive, pretty specifically around Dussehra?
• Second thing, how is your Gold loan business looking?
• How is your corporate pipeline looking and overall business mix? How do you see visibility for Canara for the quarter and for the year?

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- Specifically, looking at the businesses which are emerging in state of Karnataka and Tamil Nadu, where we have a good concentrate, manufacturing business are expanding. Be it Auto, be it Defense, many other such businesses are emerging out of these two states, so how is the new business segment emerging for you where the credit is likely to do well?

• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• So, first question, Sir, we are seeing very robust demand for retail lending products. Our Housing loan in excess of 17%, 18% is growing. Total retail, 21%, vehicle loan, 25%. It is a very good demand also, that too without this festive season. We have already started getting those numbers. We are already in the festive mode.
• Yes, our presence is very good in the state of Karnataka and Tamil Nadu, Kerala, and Andhra Pradesh, Telangana also. What benefit we get due to this presence, and since we are born here only, that we are very well-recognized. That branding issue is not there, and we are kind of first choice bank here. That benefit we are already getting.
• And this quarter, due to this festivity and others, like Governor Sahab also you would have seen, in spite of him raising Repo rate by 25 basis points, he revised the growth projections for the country from 6.7% to 7.1%, 40 basis points. That way, country is also very resilient and robust, and we do not see any stress in our books also. We see that this quarter, going further, will be a good quarter.
• Again, regarding pipeline of large corporate book or mid corporate book you asked. So, altogether, already sanctioned not disbursed, and we have got good hot leads in hand. That is around ₹47,000 crore. Let’s say, around, in and out, ₹50,000 crore.
• And in June also, similar kind of pipeline was there. I guess, there is a sustained demand also from the market, most particularly from power sector, green sector, power evacuation, battery storage, data centers. Many, Sir. From infrastructure also. There is a good pipeline, I can say. That ₹50,000 crore is in my hand only.
• And RAM is also doing good, Sir.
• Mr. Sushil Choksey – Analyst:
• Sir, my next question is, how is outlook for recovery from written off accounts? Second thing is on your subsidiaries. And third is, treasury, you will have a painful time, how are we weathering the storm where treasury is concerned? So, if you can highlight more on your subsidiaries and the written off accounts.

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- Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:

• Okay, Sir. I will start with the recovery part. Recovery, though, there is no challenge as such. In percentage basis, we are recovering very handsome. Every quarter, we are recovering more than what we are slipping. This quarter was also not an exception. That is one.
• But, yes, at the same time, let me accept that very pool of that written off accounts is dwindling down. All those Gross advances also, you have seen, it is only 1.33%. In the total absolute terms also, it is around ₹18,000 crore only. Part of it is already resolved and recovered also. And some of the outstandings are in our book only due to CIRP or PPIRP processes. That pool is dwindling down, and we are not slipping also very heavily in the new slippages; only 0.15% quarter. That pool is this.
• So, in absolute term, recovery will be not as much as what we are recovering as of now. But, yes, 1-2 quarters, there is absolutely no issue. But going further, that very pool is dwindling down. One thing. But there will be another benefits, if we are not slipping, then what we will recover. That is one thing.
• Then the next question you asked, Sir, regarding?
• Mr. Sushil Choksey – Analyst:
• Subsidiaries.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Subsidiaries.
• Mr. Sushil Choksey – Analyst:
• Insurance and- Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Treasury. Treasury and subsidiaries.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Treasury and subsidiaries. Yeah. Subsidiaries, last time, 2 of our subsidiaries, we listed them. They are all good, profit earning, and their share/stock is also doing good. Canara HSBC Life and Canara Robeco, that is a mutual asset company. This quarter also, we

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intend to sell it out, one of our subsidiary called Canbank Factors. That deal is already done. So, total investment was only ₹14 crore, but we’ll get 4X. 4X we will get at least. Our share will get 4X. That is on account of subsidiary. We have got 14 subsidiary associates and joint ventures. Everywhere we are doing good. All our subsidiaries are doing good and giving synergy to us and augmenting our Balance Sheet side also.

• Then we come to Treasury operations. Yes, there is pain in that side only due to hardening of yield. At the same time, there were no much OMO operations so that we had any arbitrage. Last year, very handsome income was there from treasury side. This year, instead of income, there is a loss. But everybody is exposed to that, we do not have much say into that. But, yes, with our own prudence, we are trying to minimize losses. But whatever is mandated, like mark-to-market, you have to book, you have to book. So, that is what we have booked and said we will be little bit less affected considering 80% of book is HTM. In that 20%, maybe 15% is AFS, that will go to AFS reserve directly. 5% that vulnerability is there. For one quarter, it was affected by ₹600 crore. That is due to 44 basis points hardening of yield in one quarter. It is further hardening, but that is a dynamic situation, we do not know. If we know, we can speculate but there is no speculation. Whatever is there, we are coping with that.
• But that is being compensated by robust NII growth.
• Mr. Sushil Choksey – Analyst:
• Yes, yes, I agree with you on all the parameters. Sir, my last question, I know I won’t get answer, but still I’m asking you. Looks government has expedited result season for PSU banks this time. This is led by some speculation or reality, we don’t know, that there’s a Diwali gift of some merger, and Canara Bank stands out to pick 1-2 banks in the merger fold. Do you have any comment on it?
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• No, no, Sir, it was all our decision to give a result as early as possible. It has got nothing to do with the government. It is all solely our decision, top management decision, and heavily supported by all my vertical heads and our statutory, central statutory auditors, only.
• Why we wanted to publish our result as early as possible? Considering every quarter, we are publishing these results by 22nd, 24th and sometime by 28th of the month. In a way, what happens, we lose one month, then we are left with only two months in the quarter. Even if you are not that much bogged down with the process of auditing and publishing your results, still your mind is occupied with the results and all. So, that way, we have just tried to make ourself free.

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- Now, at least, we are having 2.5 months instead of 2 months to perform in the quarter, and this is a very important quarter.

• Mr. Sushil Choksey – Analyst:
• Sir, if all PSU banks are justifying with productivity, it’s congratulation and best wishes that it sustains the same momentum for quarters to come.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Thank you, Sir. Thank you.
• Mr. Sushil Choksey – Analyst:
• Thank you. Thank you for answering all my questions.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Thank you, Sir. Stay blessed.
• Moderator:
• Thank you. We will take the next question from the line of Parth Gutka. Please go ahead. Parth, please go ahead with your question.
• As there is no response, we will move to the next question from the line of Ashlesh. Please go ahead.
• Mr. Ashlesh – Analyst:
• Hi, Sir. Good afternoon. Sir, few questions from my side.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Good afternoon.
• Mr. Ashlesh – Analyst:
• Firstly, if you can share what was the interest on IT refund this quarter. I believe the number for June quarter was roughly ₹250 crore.
• Secondly, what was the quantum of AS 15 related provision in the June quarter as well as September quarter?

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- Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:

• Okay, I’ll ask CFO to answer. Please, yeah.
• Mr. Amit Mittal - CFO, Canara Bank:
• So, this quarter, we could book the IT Interest Income around ₹90 crore.
• Your second question is regarding AS 15 provision. So, pension and gratuity are put together, ₹950 crore we have provided as per actuarial valuation.
• Mr. Ashlesh – Analyst:
• This ₹950 crore, Sir, is for September quarter, right?
• Mr. Amit Mittal - CFO, Canara Bank:
• Yes, this is for quarter. Correct.
• Mr. Ashlesh – Analyst:
• What was the corresponding number for the June quarter?
• Mr. Amit Mittal - CFO, Canara Bank:
• June was also more or less same.
• Mr. Ashlesh – Analyst:
• Okay. Understood.
• Mr. Amit Mittal - CFO, Canara Bank:
• Another ₹40-₹50 crore was less, but more or less same trend.
• Mr. Ashlesh – Analyst:
• Understood. Sir, and ,secondly, can you share any update on the ECL one-time provision impact, which we will see?

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- Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:

• See, amount we have not calculated exactly, but what we roughly presume, it will be somewhere ₹12,000-₹15,000 crore. It has increased ₹2,000-₹3,000 crore considering the hardening of yield, considering one-time provision for M2M we will have to provide. The kind of CRAR we are having 17.19%, which is as against 11.5% only. And CET1 also, against 8.5% we are having 12.80%. Even if in percentage term we count, it will be not be more than 1.2%; 1%-1.2%.
• So, I guess we will be easily sailing through it. And the kind of profit also we are making. Last year, we could make ₹19,000 crore of profit, and this year also, in half year itself, we have booked ₹10,000 crore. I think that will be not much.
• Only thing we have to decide is, in how many years we are going to do it, considering RBI has given dispensation for 5 years. But nobody will take it to 5 years. Let us decide. And PCR also we are having of 95.34%, so it will also help. And improvement in asset quality is also going to help.
• Mr. Ashlesh – Analyst:
• Understood, Sir. Sir, you mentioned some additional impact because of some revision in estimate because of the hardening of yields. Can you just explain how the yields factors into the ECL calculation?
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• See, all those books now, on date of reckoning, on 1st of April, they are like how we are doing mark-to-market as of now. So, we have to do it mark to market. Yes, HTM will be also mark to market. So, that will affect us by ₹2,000-3,000 crore, depending upon how much holding we have on that day and what is the yield rate on that day. We do not know, it will further harden or soften.
• Mr. Ashlesh – Analyst:
• Soften it will.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Yes. But at the same level we have calculated, then also it will be ₹2,000-₹3,000 crore. So, there is not much impact of that also. And that is also going nowhere out, it will remain with you only. That is a provision, so it will come, it will go. Sometime you write back, sometime you have to provide.

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- Mr. Ashlesh – Analyst:

• Okay. Sir, in that case, how do you expect to protect your ROA of 1% because it seems like the credit cost will inch up next year?
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:

Credit cost is not a…Yeah, you answer, please.

• Mr. S. K. Majumdar - Executive Director, Canara Bank:
• Credit cost will only increase if I make a provision for that; extra provision for going forward. It is yet still not decided what the industry will do, whether a part of it will be passed on. That will be based on the industry scenario. At this point, we do not see that will affect much; there may be some. In case we decide to make provision for that going forward, that will have some credit cost effect. As you have seen, our credit cost today is below 0.5. And the kind of asset quality improvement that is happening and the kind of slippage restrictions are happening, I think that will automatically offset, if any, such provision requirement.
• Mr. Ashlesh – Analyst:
• Understood, Sir. Sir, another thing you mentioned was on the Gold loan yield, that the yield has gone up by roughly 15 basis points quarter-on-quarter. Do you expect to take more hikes going forward? Can this yield go up further?
• Mr. Bhavendra Kumar - Executive Director, Canara Bank:
• Yeah, certainly. When it comes to Gold loan, we are earning as of now 9.10%, but it is going to give further because rates are now hardening. I think we can have better yield than our gold going forward. Still, we are lower than many of the peer banks.
• Mr. Ashlesh – Analyst:
• Understood, Sir. Sir, just lastly, one data keeping question. If you can share the slippages across segments for the quarter.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Okay. Total slippage is ₹1,844 crore. Segment-wise, I will tell you. I will just tell you. Yes. ₹687 crore we slipped in agriculture, ₹13 crore in corporate, gold by ₹40 crore, ₹777 crore in MSME, Retail ₹327 crore. All taken together, ₹1,844 crore. ₹1,844 crore.

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- Mr. Ashlesh – Analyst:

• Understood, Sir.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• So, it is not somewhere very concentrated sort of, yeah.
• Mr. Ashlesh – Analyst:
• Understood, Sir. Thank you very much for answering the questions.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Yeah, thank you.
• Moderator:
• Thank you. We will take the next question from the line of Param. Please go ahead.
• Mr. Param – Analyst:
• Yeah. Hi, Sir. Congratulations on a great quarter.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Hello! Thank you.
• Mr. Param – Analyst:
• Yeah. Sir, firstly just to, again, pick up on the comment you made on ECL. Did I hear you correctly, you said that the extra provisioning may not pass through to the bottom line. There might be some, say, pass-through to the customer. Is that what you were trying to imply?
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• No, no, we said actually how market is going to respond, so we will be aligning with the market. As of now, there is no plan to pass it on to the customers. Even if we are not passing, then ROA will be not, say, in excess of 1%. Then new normal will become 80 basis points, you see. That is also very handsome and good. Yeah.

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- Mr. Param – Analyst:

• Yeah. So, that is what we’re trying to understand, Sir, as investors, that it will be reset to a new normal or will our effort be to defend that 1%?
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• That will be very premature to say.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• At this stage.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• That market will decide. As of now, we do not see much of movement out of that also.
• Mr. Param – Analyst:
• Okay, Sir. And this ₹12,000-₹15,00 crores Sir, when I look at it as a percentage of your net worth, your reported book value, it is like almost 10% of your book value. So, when you are saying the phasing of that over 5 years, I mean, on Day 1, will your net worth look 10% lower or will that also get spread over 5 years?
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• No-no. Yeah, you answer.
• Mr. S. K. Majumdar - Executive Director, Canara Bank:
• Net worth will be spread over 5 years. That option is there, but we do not think we need to spread it over beyond 2 years. If not in first one year itself, it all depends if the bond yields remain elevated, then we may have to cover it in 2 years. But I think 2 years should be more than enough, given a profit of more than ₹20,000 crore and asset quality improving, still maybe coming to below 0.3, and the provision coverage going up beyond 95% to 96%, 97%, hopefully. I do not think that we will need more than…without denting even your credit cost and even ROA, for that matter.
• Because, one thing, you should also look at that overall profit improvement going forward. I feel that even if we have to provide, that will neutralize given the increased absolute profit figure.

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- Mr. Param – Analyst:

• Okay, okay, got it. On the quarter, Sir, I wanted to understand, so there is a very strong growth in Agri quarter-on-quarter, 10%. Is that largely the Gold loans that you have seen or anything to call out over there?
• Mr. S. K. Majumdar - Executive Director, Canara Bank:
• No, this is not only Gold loans. Core agriculture also, we are growing close to 9%. That is there. Because we have seen growth in the first quarter, that is June-September, in the same line. We have done exceedingly well under core agriculture also.
• Mr. Param – Analyst:
• Okay, so it is a mix of both? Yeah.
• Mr. S. K. Majumdar - Executive Director, Canara Bank:
• To be very specific, out of the Total Agri of ₹304,000 crore, Gold is ₹1,74,000 crore and core Agri is ₹1,29,000 crore…₹1,30,000 crores.
• Mr. Param – Analyst:
• And similar numbers for last quarter, Sir?
• Mr. S. K. Majumdar - Executive Director, Canara Bank:
• Last quarter was ₹1,51,000 crores was Agri gold and core Agri ₹1,2,5000 crore.
• Mr. Param – Analyst:
• Okay. Got it. Thank you so much. And congrats on the performance!
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• So, growth is broad-based, Sir. Growth is broad-based, yeah.
• Mr. Param – Analyst:
• Thank you so much.

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- Moderator:

• Thank you. We will take the next question from the line of Parth Gutka. Please go ahead.
• Mr. Parth Gutka – Analyst:
• Yeah. Hi, Sir. Can you hear me?
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Yes, please.
• Mr. Parth Gutka – Analyst:
• Yeah, hi. Thanks a lot for the opportunity, Sir. Sir, I would like to know what is the amount of disbursement we have done under ECLGS?
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Okay. So, ₹13,000+ crore.
• Mr. Parth Gutka – Analyst:
• Okay, fine, ₹13,000+ crore. And what were the advances given against the FCNR(B) deposits?
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• $3.2 billion. Out of $5.8 billion, $3.2 billion.
• Mr. Parth Gutka – Analyst:
• Okay, fair enough. And my last question was, is it fair to assume that a large part of the FCNR(B) deposits that we have garnered have been utilized this quarter, and from next quarter onwards we will again have to rely on the bulk deposits if we want to maintain these levels of…
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• yeah, part of it has been utilized but part of it has been used for replacing. Our bulk has not increased, it was constant.

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- Mr. Parth Gutka – Analyst:

• Okay. Fair enough, Sir. Thanks a lot. Thank you.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Yeah.
• Moderator:
• Thank you. We will take the next question from the line of Pranav. Please go ahead.
• Mr. Pranav – Analyst:
• Hi, Sir. Thanks a lot for the opportunity.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Thank you, Pranav.
• Mr. Pranav – Analyst:
• Sir, any other avenues of fees that you are investing your time and capital on? Also, what kind of upside you see on latest MDR inclusion for UPI money transfer? Thanks a lot, Sir.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• So, we are investing heavily, both in terms of money and time also, in all those digital advancements. We are just working on adoption part of it. May it be QR code, may it be school fee collection modules, internet payment gateways. Regarding the second part of your question, that we have not calculated as it has not come yet. As of now, we are out of cash only by way of paying some switching charges, you can say, switch charges and all. We do not see much earning considering our penetration in PSPs. We have also one payment service provider platform, that is called ai1Pe. That has not been popularized very much. We do not see much of earning will be there. That, too, it will come on more than ₹2,000. And again, it is capped at ₹300.
• So, I do not see much of earning out of it. But, yes, going further, if volume further increases, our platform is widely utilized, then only we will get to earn something. As of now, we are out of cash only, considering we have to pay charges to others since other platforms are being utilized or somewhere acquirer is different, somewhere payee bank is different.

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- Mr. Pranav – Analyst:

• Understood, Sir. Understood. Thanks a lot, Sir.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Yeah.
• Moderator:
• Thank you. We will take the next question from the line of Aman Singh. Aman Singh, please go ahead.
• Mr. Aman Singh – Analyst:
• Hi, Sir. Thank you for the opportunity.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Hello.
• Mr. Aman Singh – Analyst:
• Sir, can you help me with the all ticket size SMA of 0, 1, 2 for the quarter as on date?
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Okay-okay. If it is ₹5 crore and above, then our total SMA, including 0, is only 0.51%. And in outstanding term, it is ₹7,000 crore. That’s all. On a book of ₹13,75,060 crore. And when it is all taken together, not ₹5 crore and all, everything taken together, then it is 2.42%. That in absolute terms it is ₹33,340 crore. That’s all.
• Mr. Aman Singh – Analyst:
• Sir, can you break it down into SMA 0, 1, 2 also?
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Yes. If you take SMA 2, then if ₹5 crore above we are talking about, it is 0.21% only, ₹2,838 crore. If we are talking about SMA 1, in ₹5 crore and above, it is 0.09%, ₹1,304 crore. Taken together, SMA 1 and 2 is 0.30%, ₹4,142 crore. SMA 0 is ₹2,901, and in percentage term it is 0.21%.

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- Altogether, 0.51%, ₹7,043 crore. If we take all, even ₹1, then SMA 2 is 0.9%, SMA 1 is 0.53%, total SMA 1 and 2 is 1.43%, and SMA 0 is 0.99%. Taken together all, it is 2.42% only.

• Mr. Aman Singh – Analyst:
• Right, Sir. Thank you.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Yeah, thank you.
• Mr. Aman Singh – Analyst:
• Also, Sir, can you give me the LCR for the quarter?
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Pardon? LCR?
• Mr. Aman Singh – Analyst:
• Yeah. Yes, Sir.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• 115% as of 30th of September. 115%
• Mr. Aman Singh – Analyst:
• Okay, Sir. Thank you so much.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Yeah, thank you.
• Moderator:
• Thank you. We will take the next question from the line of Lavish. Please go ahead.
• As there is no response, we will move to the next question from the line of Saket Kapoor. Please go ahead with your question.

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- Mr. Saket Kapoor – Analyst:

• Yeah.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Yes, please.
• Mr. Saket Kapoor – Analyst:
• Yes, Sir. I am audible, Sir?
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Yes, please.
• Mr. Saket Kapoor – Analyst:
• Yeah. Sir, firstly, in terms of the impact of the treasury, that MTM is negative of ₹600 for this quarter. What is the total number for H1 and the comparable number for last year, Sir? If we are seeing an impact of negative ₹600 in this quarter in profits, then what was it in Q1 and what is the total in H1?
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Okay-okay, we will answer.
• Mr. Hardeep Singh Ahluwalia – Executive Director, Canara Bank:
• I will respond to this. In June, the total trading, MTM, OMO, and others, cumulatively it was ₹654 crore. In this quarter, it is ₹153 crore. If I compare to previous year, it was ₹1,217. Basically, on MTM profits of ₹762 crore in September last year.
• Mr. Saket Kapoor – Analyst:
• Last year it was profit of ₹762 crore, and this time it is a loss of ₹61 crore.
• Mr. Hardeep Singh Ahluwalia – Executive Director, Canara Bank:
• On MTM, it is a loss of ₹61 crore. If I compare to previous quarter, it was ₹611 crore MTM profit.

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- Mr. Saket Kapoor – Analyst:

• Sir, what our MD Sir mentioned was that for this quarter we have booked losses of ₹600 crore. That understanding is correct?
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• No. As compared to last quarter.
• Mr. Hardeep Singh Ahluwalia – Executive Director, Canara Bank:
• Last quarter.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• There was a ₹550 crore earning in last quarter, this quarter is ₹50 crore loss. If you add them, it becomes ₹600 crore.
• Mr. Hardeep Singh Ahluwalia – Executive Director, Canara Bank:
• Yeah.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• It is like that. Yeah.
• Mr. Saket Kapoor – Analyst:
• Sir, next, coming to the valuation part. Our book value currently ₹124, closer to ₹125. The market price is closer to either ₹120 or ₹125. So, we are trading at one time book. What according to you, Sir, are the steps that are still in the anvil that will improve the valuations for the investing community as you have guided for 2.5 NIM and ROA closer to 1.02%? Where are we, Sir, in terms of that valuation curve that will benefit your investors?
• Second point is on the bid pipelines of loans, if you could just give us some color how that pipeline is shaping up and our win ratio in the same?
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• It is trading on book value or a little less than also. But today we have gained some market after this result and, I guess, if you people are spreading good thing about us, all these analysts and all, it will further go up. I personally, along with Mr. Majumdar, our

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ED, went Mumbai and met many of the analysts and our investors also, just to bring about our perspective. For our part, we have to perform. We are performing continuously for last 2-3 quarters, you see. Last year also, we have posted ₹19,000 crore and we have given 220 basis points of yield also. Our yield is also more than saving bank rate of interest. So, people will understand and they will start investing and remain invested. That will take our share to some greater heights. That is what I wish and pray.

• Regarding pipeline, we have got ₹30,000 crores hot lead and ₹17,000 crores already sanctioned but not disbursed. Taken all together is ₹47,000 crore, close to ₹50,000 crore. This is basically all from green energy, battery energy storage, power evacuations, and data centers. Some HAM projects also, one or two. It is widespread. A lot of good pipeline we see. Going further also, we absolutely have no dearth of good leads and proposals. From these sectors, we are getting good deals and all. We have given many NBGs also, so those things also will come and materialize.
• Moderator:
• Thank you. We will take the next question from the line of Shobhit. Please go ahead.
• Mr. Shobhit – Analyst:
• Hi, Sir. Thanks for the opportunity. I know we have spoken a lot on ECL, but just one last bit on the steady state impact. I think last quarter we had called out that it will be very minimal, like around 4-5 bps. So, have we had a chance to firm up those numbers?
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Come again, please.
• Mr. Shobhit – Analyst:
• Sir, last quarter, I think we had mentioned that it would be 4-5 bps, the steady state credit cost impact.
• Mr. S. K. Majumdar - Executive Director, Canara Bank:
• No-no, if you remember, last time we said ₹10,000-₹12,000 crore will be the requirement. Now, with the given market conditions, that is firming of our yields and this, we are saying for HTM category because we understand even HTM may require a provisioning. So, if this kind of yield continues, then we expect it to maximum, maybe instead of ₹10,000-₹12,000 crore, it may be ₹12,000-₹15,000 crore, maybe ₹14,000₹15,000 crore.

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- But we are also optimistic if the oil prices comes down, the de-escalation in political scenario happens, even we may come back to the previous forecast of ₹10,000-₹12,000 crores. But maximum, we envisage around maybe ₹14,000-₹15,000 crore.

• And you have seen in that my CRAR is today above 17%, at 17.19%. And even my CET1 is very comfortable at 12.8%. We have a real control on the risk-weighted assets, which is coming down quarter-on-quarter, and there is no reason this trend will not continue. So, keeping all that into consideration, we feel now the question is whether we should provide in one year or we should spread across a couple of years since we have the flexibility given by regulator. That we’ll take a call maybe as we come towards the last quarter.
• Mr. Shobhit – Analyst:
• Thank you, Sir. Sorry. Sir, thanks for that but I meant the steady state impact, not the one-time impact. If you could clarify on that.
• Mr. S. K. Majumdar - Executive Director, Canara Bank:
• See, that may not be, because you are talking of April going forward in the coming year. That we will have to see, wait and watch, whether I do provide for that or we decide to pass it on. That, the market conditions will decide. But I do not see a much effect on the overall financials because even if we decide to provide, given the dwindling credit cost and the other parameters, I said that should get offset. There cannot be any upside to that. I do not think what projection we gave earlier, we need to enhance that. As on today, I do not see that happening.
• Moderator:
• Thank you. We will take the last follow-up question from the line of Jay Mundra. Please go ahead.
• Mr. Jay Mundra – Analyst:
• Yeah. Hi, Sir. Sorry, Sir, on this ECL, ₹10,000-₹12,000 crores going to ₹12,000-₹14,000 crores, is this including HTM, which is on investment also, right?
• Mr. S. K. Majumdar - Executive Director, Canara Bank:
• Yes-yes.

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- Mr. Jay Mundra – Analyst:

• The loan loss provision, do they also impact or no?
• Mr. S. K. Majumdar - Executive Director, Canara Bank:
• No-no. It is including HTM. Yes, you understood correctly.
• Mr. Jay Mundra – Analyst:
• Correct. But, Sir, do you have a number? Because I think yields impact will be uniform across banks, right, depending on their HTM.
• Mr. S. K. Majumdar - Executive Director, Canara Bank:
• Absolutely.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Yes-yes.
• Mr. Jay Mundra – Analyst:
• But on loan loss only loan-related provision, do you have a number, Sir? For how much will be the advances plus maybe credit substitute put together?
• Mr. S. K. Majumdar - Executive Director, Canara Bank:
• No-no, we have not crystallized the number. But this, what we have just said, taking into HTM, I don’t think it should vary significantly on that. Total number.
• Mr. Jay Mundra – Analyst:
• Right. And, Sir, this September 30th, banks were supposed to make the final kind of a run on ECL, right. Have you done anything?
• Mr. S. K. Majumdar - Executive Director, Canara Bank:
• No-no. No-no, there is nothing that September 30th. We have time up to April, maybe by end of this quarter we will.

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- Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:

• We have had this thing, understanding our technological, our knowledge partner, Coforge is also there. Technological capabilities we are working on, models we are writing. Those things are all under testing and at final stage. So, somewhere in this quarter we will have that dry run and all. So, technical capabilities also we have to grow, at the same time.
• Mr. Jay Mundra – Analyst:
• Right-right. Okay.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Yeah.
• Mr. Jay Mundra – Analyst:
• All right, Sir. Thank you so much. Thank you.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• Thank you.
• Moderator:
• Thank you. That was the last question for the day. I hand over the call to the MD Sir for his closing remarks.
• Mr. Brajesh Kumar Singh - MD & CEO, Canara Bank:
• So, thank you all who have participated and very enthusiastically you have understood our Balance Sheet also and probed and asked questions also. I would request all of you to please, just like some of the analysts asked why our share price is not fancy in the marketplace, so I would request all of you to propagate something good about us, our fundamentals. You see, we are continuously working on our efficiency parameters more than top lines and kind of strength we are giving to Balance Sheet. Like you have seen, 175 basis points we have increased in PCR. We would have shown more profit, instead that we have provided for PCR, which is going to help us in ECL, considering there were many questions in ECLs also.
• We are very well capitalized. Our assets are very balanced, very good quality of assets we have got. We are going at a very good pace. Our NIM are protected. We are making

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good kind of profits. So there is no case that we are not being rewarded in the marketplace. Today, yes, market has responded very well after our results. Let us hope and I will ask your help also to give us support in the marketplace so that our market capitalization increases.

• So, that is all from my side. Thank you all for being there for us and every time, every quarter I see most of you are there. That shows your interest in Canara Bank. Thank you and appreciation for that also. Thank you all. Have a good rest of the day.
• Moderator:
• Thank you. That concludes the Canara Bank Q2 Call. You may now disconnect the line. END OF TRANSCRIPT

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