1

Udupi - Heritage Museum & Financial Research Centre

2

Financial Inclusion – Branchless Banking

� Bank has operationalised banking services in all 333 locations allocated by

various SLBCs, 14 locations by the way of Branch Model and 319 locations by

the way of BC model, by 31st December 2010, 15 months ahead of the

schedule i.e. 31.03.2012

� Branchless Banking operational in 2500 locations. Added 1300 new locations

during the current financial year

� Total number of “no-frill” accounts stood at 12.60 lakhs and the CGCC cards

issued was at 23323

� Bank has presented Financial Inclusion Model to the Commonwealth

Secretariat in London. Bank in collaboration with Commonwealth Secretariat

proposes to hold Youth Enterprise Financing program. Bank is focusing on

providing sustainable Enterprise Development using Branchless Banking

Model.

� Bank has implemented Urban Financial Inclusion in 50 urban locations and

branded it as Corp Shahari Vitthiya Samaveshana Kendra.

� Bank has set up a Financial Inclusion Resource Centre at Heritage Centre

Udupi. 3

4

SKOCH FINANCIAL INCLUSION AWARD 2011

Corporation Bank has bagged SKOCH Financial Inclusion Award 2011 instituted by

SKOCH Consultancy Services Pvt. Ltd. Shri Ramnath Pradeep, Chairman & Managing Director of the Bank received the Award from Dr. K C Chakrabarty, Deputy Governor, Reserve Bank of India

5

New Initiatives – Brand Ambassador

Corporation Bank has appointed International Sprint Athlete

Miss Ashwini A C as Brand Ambassador of the Bank on the

occasion of International Women’s Day, towards empowerment of

women.

New Initiatives

� As part of Urban Financial Inclusion, extended Branchless Banking to 15 BPCL petrol bunk locations for providing basic banking services to Drivers, cleaners, etc., at urban areas. Similar services have been extended to 30 locations in collaboration with one MFI & NGO at Bangalore.

� The Bank provides non-life micro-insurance and health products through smart cards facilitating the customers to avail these insurance products from their own villages.

� The Bank has also signed MOU with UIDAI for acting as Registrars for issue of UID numbers to residents.

� Verticals have been created for corporates , mid-corporates, Retail, Priority sector and Asset recovery to have more focussed monitoring

� Bank has facilitated “e-Kanike / e-Donation” service through its e-payment gateway

� Founder’s house at Udupi has been converted as a heritage building and Financial Research Centre

� Revitalising our business relationship with LIC of India for more business opportunity

6

7

The Bank celebrated its 106th foundation day by dedicating a Heritage

Museum and Financial Research Centre at Udupi, Karnataka – the Bank’s

birthplace. The inauguration was done by Shri Pranab Mukherjee, Hon’ble

Union Minister for Finance at a function held at New Delhi.

New Initiatives – Heritage Centre at Udupi

8

New Initiatives / Products launched

�Priority Banking services launched for high net worth customers

�Credit Delivery Camp held in association with Bardhan Financial Services, MFI at Kirnahar, Birbhum District, West Bengal

�“CorpMcash” a new technology product – mobile based valet for Retail payment launched

�“Corp Nano Super” Flexi Savings Scheme with sweep facility for Micro Traders / hawkers

�“Corp Tutor Fee” scheme for financing tution fees for preparation of entrance examination of

professional exams

�“Operation Customer outreach” drive to increase retail Term Deposits

�“Corp CA” to cater the various financial needs of Chartered Accountants

�“Corp CS” to cater to the various financial need of Company Secretaries

� “Corp Tax Saver Plus “ deposit scheme with three benefits viz., High interest rate , Tax

benefit under section 80C and Personal Accident Insurance Cover

�“Corp Home Premium – NRI”, a New Housing Loan scheme for Non-Resident Indians (NRIs).

�Bank has held SME meets at 5 centres across the country as the focus area for deployment and 82 branches taken up for focussed lending to SME.

9

Banking Technology Awards - 2010

Corporation Bank has won Three Banking Technology Awards 2010 for its efforts in use of

technology in Online Banking, Financial Inclusion and Training and e-learning initiatives under the auspices of the Indian Banks Association [IBA]. The Bank has bagged Winner Award - under the category “Best Financial Inclusion Initiative” and “Best Use of Technology in Training & eLearning Initiatives” and Runner Up Award - under the category “Best Online Bank” amongst Public Sector Banks.

10

Best PSU Bank Award

Corporation Bank has bagged the Bloomberg UTV ‘Financial Leadership Awards 2011 - “Best PSU Bank of the Year”. The Award was received by the Bank under the category of Banking Awards.

11

AWARDS & ACCOLADES

�Shri Ramnath Pradeep, Chairman & Managing Director, Corporation

Bank is honoured by Bangladesh Women Chamber of Commerce &

Industry (BWCCI) for the support provided by Corporation Bank to

BWCCI through XI Commonwealth – India Small Business Development

Programme.

�Corporation Banks gets an Award for its Financial Inclusion

Programme by Association of Development Financing Institutions in

Asia and the Pacific (ADFIAP).

�Corporation Bank has been conferred “Best Public Sector Bank” by

Financial Express – India’s Best Banks Survey 2010”. Corporation Bank

has bagged the ‘Number One Slot’ under the category of

“Nationalised Banks”.

�Corporation Bank has been rated as India’s most Customer Friendly Bank in the survey conducted by ‘The Outlook Money - TNS”conducted during October – December 2010

FY 2011 – Q4 Highlights

NET PROFIT

`345 Crore

OPERATING PROFIT

`747 Crore

NET INTEREST INCOME

`762 Crore

NIM

2.5%

NET PROFIT

`1,413 Crore

OPERATING PROFIT

`2,622 Crore

NET INTEREST INCOME

`2,940 Crore

NIM

2.52%

FY 2011 Highlights

20.8% 22.7% 54.4% +26 bps

10.6% 37.0% 29.2%

Growth % Y-O-Y12

+18 bps

(` in crore)

March 2010

FY

March 2011

FY

Growth (%)

(Mar’11/Mar’10)

Total Business 155,936 203,598 30.56%

Total Deposits 92,734 116,748 25.90%

Total Advances 63,203 86,850 37.42%

Total Income 8,481 10,460 23.33%

Net Interest Income [NII] 1,903 2,940 54.45%

Operating Profit 2,137 2,622 22.73%

Operating Profit (Excl. 2nd option for pension) 2,137 2,807 31.38%

Net Profit 1,170 1,413 20.77%

Net Profit (Excl. 2nd option for penison) 1,170 1,537 31.31%

Sustained Performance

13

(` in crore)

March 2010

[Q4]

March 2011

[Q4]

Growth (%)

(Mar 11 /Mar 10)

Total Income 2,195 3,046 38.8%

Net Interest Income 589 762 29.2%

Operating Profit 545 747 37.0%

Net Profit 312 345 10.6%

Net Interest Margin 2.3% 2.52% +18 bps

Performance Highlights Q4 FY2011

14

Profitability

Core Operating Profit is profit excluding treasury trading gains

(` in crore)

15

Shareholder Returns

Consistent growth in BVPS and ROE16

17

Sustained Business growth over last decade ` in Crore

Total Business doubled in THREE years

span and 8 times in 10 years

Mar-07 Mar-08 Mar-09 Mar-10 Mar-11

Total Business 72,306 94,610 122,496 155,936 203,598

Growth [y-o-y %] 27.21% 30.85% 29.47% 27.30% 30.56%

Total business growth

y-o-y Rs.47,662 crore

Total business growth

y-o-y 30.56%

Total business has

doubled within a span

of 3 yearsMar-07 Mar-08 Mar-09 Mar-10 Mar-11

72306

94610

122496

155936

203598

(` in crore)

Total Business

Deposits portfolio

�CASA deposits grew at 14.42%

y-o-y to `30,297 crore as at March 2011

` in Crore

1914.4% y-o-y

Particulars 31.03.2010 31.03.2011 Growth y-o-y

Current Deposits 13,452.99 14070.78 4.59%

Savings Deposits 13,025.26 16226.12 24.57%

Total CASA 26,478.25 30296.90 14.42%

Term Deposits 66,255.42 86450.60 30.48%

Total Deposits 92,733.67 116747.50 25.90%

CASA % 28.55% 25.95%

Composition of Deposits

Savings Bank deposits record sustained growth

` in Crore

Healthy growth in Advances portfolio

�Advances portfolio achieved a

robust growth.

�Gross advances grew at 37.42%

y-o-y

�Average advances grew at 28.08%

y-o-y

�Major component of loan book was

Large Industries (38.82%)

�Retail lending grew by 33.98% y-o-y

�SME advances grew by 79.18%

y-o-y

` in Crore

21

[` in Crore]

* Comm Real Estate works out to 3.38% of total advances in March 2011

Sector Mar-10 Mar - 11 Growth

Abs(y-o-y)

a. Real Estate 10,088 13,576 3,488

Hsg Direct 5,280 6,025 745

Hsg Indirect 2,137 4,617 2480

Comm. Real Estate * 2,671 2,934 263

Of Comm. Real Estate:

Corp Rental 1,072 729 -343

Builders 1,153 1,795 642

Others 446 510 64

b. Capital Market 1035 1,331 296

Credit 465 673 208

Investment 570 658 88

c. Commodities 608 1,460 852

Total 11,731 16,367 4,636

Exposure to sensitive sector

22

March 2010

March 2011

% to total NBC

[Mar-11 [%]

Deployment to Total

Mar-10 [%]

Deployment to Total

Mar-11[%]

Infrastructure [Breakup in next slide] 8,616 14,867 17.1% 28.8% 40.4%

Chemicals, Dyes, Paints 2,432 1,886 2.2% 8.1% -3.5%

Engineering 1,855 2,569 3.0% 6.2% 4.6%

Gems & Jewellery 1,079 1,479 1.7% 3.6% 2.6%

Textiles 2,798 3,240 3.7% 9.4% 2.9%

Iron & Steel 2,516 3,851 4.4% 8.4% 8.6%

Metals & Metal Products 927 966 1.1% 3.1% 0.3%

Petroleum 2,204 4,011 4.6% 7.4% 11.7%

Others 7,455 12,470 14.4% 24.9% 32.4%

Total 29,882 45,339 52.2% 100% 100%

` in Crs

Industry wise credit exposure

23

[` in Crore]Industry wise credit exposure

Infrastructure - breakupMar-10 Mar-11 % growth over

Mar-10

Power 4,899 7,226 47.5%

Telecomn. 1,210 3,595 197.1%

Roads & Ports 671 1,476 52.0%

Hospitals 631 759 20.3%

Educational Institutions 149 232 55.7%

Others* 1,026 1,579 53.8%

Total 8,616 14,867 72.6%

*Others include Info Park, SEZ, Construction relating to projects involving agro-processing / storage of agro products, etc.

24

Mar-10 Mar-11 Y-o-y Growth %

11,696 15671 33.99%

Retail Lending Portfolio

Housing, 51%

Education, 9%

Vehicle, 6%

Mortgage, 4%

Personal, 2%

Corp Vyapar, 2%

Corp Mitra, 1%

Other Schemes, 26%

[` in Crore]

Segment Amount

Housing 8,035

Vehicle 1,416

Education 929

Mortgage 591

Personal 244

CorpVyapar 250

Corp Mitra 121

Others 4085

Total 15,671

25

PARTICULARSPARTICULARSPARTICULARSPARTICULARS 31.03.2010 31.03.2010 31.03.2010 31.03.2010 [12M][12M][12M][12M]

31.03.2011 31.03.2011 31.03.2011 31.03.2011 [12M][12M][12M][12M]

Growth (%) Growth (%) Growth (%) Growth (%) Mar11/MarMar11/MarMar11/MarMar11/Mar’’’’10101010

Total IncomeTotal IncomeTotal IncomeTotal Income 8,481.03 10,459.62 23.33%

Interest IncomeInterest IncomeInterest IncomeInterest Income 6,987.69 9,135.25 30.73%

a) from Advances 4,979.20 6,475.21 30.05%

b) from Investments 1,784.52 2,327.67 30.44%

c) Others (Swap, RIDF, Call) 223.97 332.37 48.40%

Non-interest Income 1,493.35 1,324.37 -11.32%

Non-Interest income excluding Profit on sale of investments

877.61 1,114.89 27.04%

Profit on sale of investment declined by `406.26 crore from ` 615.74 crore in Mar

‘10 to ` 209.48 crore in Mar ‘11 resulting in reduced Non-interest Income over Mar

‘10 .

Total Income` in Crore

26

March 2010

[12M]

March 2011

[12M]

Growth (%) Growth (%) Growth (%) Growth (%) (Mar(Mar(Mar(Mar’’’’11/Mar11/Mar11/Mar11/Mar’’’’10)10)10)10)

Non-interest Income from Core areas (Comm. Exchange, Brokerage)

645.82 759.35 17.58%

Profit on Exchange Trans. 93.36 107.62 15.27%

Profit on Sale of Investments 615.74 209.48 -65.98%

Dividend on Shares 4.50 7.36 63.42%

Cash Management Services 36.33 33.62 -7.45%

Bad Debts Recovery / Write back 97.60 206.94 112.02%

Total Non-Interest Income 1,493.35 1 324.37 -11.32%

Non-Interest income excluding Profit on sale of investments 877.61 1,114.89 27.04%

Non-interest Income Break-up(` in crore)

27

Fee Income – From Core Areas

Increase y-o-y 17.58%

(` in crore)

28

Increase y-o-y 31.1%

29

PARTICULARS FY 2009FY 2009FY 2009FY 2009----1010101012M12M12M12M

FY 2010FY 2010FY 2010FY 2010----11 11 11 11 12M12M12M12M

Variance %Variance %Variance %Variance %(Mar11/Mar10)(Mar11/Mar10)(Mar11/Mar10)(Mar11/Mar10)

Total Expenses 6,344.30 7,837.22 23.53%

Interest Expenses 5,084.35 6,195.51 21.85%

a) Interest on Deposits 4,555.30 5,333.55 17.08%

b) Interest on Borrowings 529.05 861.96 62.93%

Operating Expenses 1,259.95 1,641.71 30.30%

a) Salaries 631.70 894.94 41.67%

b) Other Operating Expenses 628.25 746.77 18.87%

Salaries (Excl. of AS15 Provisions) 500.70 560.39 11.92%

AS-15 Provisions [excluding 2nd

option for pension]

131.00 149.79 14.34%

AS-15 Provisions - 2nd option for

pension0.00 184.76 100.00%

Total Expenses (` in crore)

29.2% y-o-y 54.45% y-o-y

Growing Net Interest Income (NII)

FY 07FY 07FY 07FY 07 FY 08FY 08FY 08FY 08 FY 09FY 09FY 09FY 09 FY 10FY 10FY 10FY 10 FY 11FY 11FY 11FY 11

NIINIINIINII 1,3081,3081,3081,308 1,4431,4431,4431,443 1,5741,5741,5741,574 1,9031,9031,9031,903 2,9402,9402,9402,940% Growth% Growth% Growth% Growth 15.9%15.9%15.9%15.9% 10.3%10.3%10.3%10.3% 9.1%9.1%9.1%9.1% 20.9%20.9%20.9%20.9% 54.4%54.4%54.4%54.4%

NII for the last 5 years

(` in crore)

(` in crore)

30

31

PARTICULARSPARTICULARSPARTICULARSPARTICULARS Mar-10 (12M)

Mar-11 (12M)

Increase(%) Increase(%) Increase(%) Increase(%) (Mar11/Mar10)

Operating Profit 2,136.73 2,622.40 22.73%

Provisions 966.48 1,209.13 25.11%25.11%25.11%25.11%

a. For Bad & Doubt Debts 345.25 547.76 58.66%58.66%58.66%58.66%

b. On Standard Assets 39.50 72.54 83.65%83.65%83.65%83.65%

c. Investment Depreciation 61.91 79.71 28.72%28.72%28.72%28.72%

d. Income Tax 492.05 520.37 5.76%5.76%5.76%5.76%

e. Others 27.77 -11.25 --------

Net Profit 1,170.25 1,413.27 20.77%

Break up of Provisions(` in crore)

Mar’10 Mar’11

Net Worth (` in crore) 5,775 7,138

CRAR- Basel I 15.00% 12.90%

Tier I 9.03% 7.95%

Tier II 5.97% 4.95%

CRAR – Basel II 15.37% 14.11%

Tier I 9.25% 8.69%

Tier II 6.12% 5.42%

• Bank is well capitalised

• CRAR 14.11%

Healthy Capital base

CRAR UNDER BASEL II

32Government of India has contributed Rs.309 crore to equity capital in March 2011

Key Ratios

33

Cost/ Yield/ NIM Mar’09 (FY)

Mar’10 (FY)

Mar’11 (FY)

EARNING RATIOS:

a Cost of Deposits 7.02% 5.95% 5.74%

b Cost of Funds 6.30% 5.54% 5.31%

c Yield on Advances 10.82% 9.90% 10.05%

d Yield on Investments 8.09% 7.18% 7.19%

e Yield on Funds 8.56% 7.62% 7.83%

f Interest Spread (NIM) 2.26% 2.07% 2.52%

RATIOS Mar’09

(FY)

Mar’10

(FY)

Mar’11 (FY)

Earnings / Efficiency Ratios:

a. Cost to Income Ratio 37.40% 37.09% 38.50%

b. Operating Expenses To AWF 1.51% 1.37% 1.41%

c. Net Profit to Total income 12.44% 13.80% 13.51%

d. Return on Assets (%) 1.28% 1.28% 1.21%

e.Return on Equity (%)

(Net Profit / Net Worth) 18.23% 20.26% 20.70%

f.

Asset Utilisation (%)

(Operating Profit to Average Working

Fund)

2.52% 2.33% 2.25%

g. Earning Per Share (`) 62.24 81.58 98.50

h. Book Value Per Share (`) 341.36 402.60 497.62

34

Key Ratios

Productivity Ratios show consistent improvement (` in lakhs)

35

• Investment growth (y-o-y) ` 8930

crores

• Average Investments growth (y-o-y) 30.33%

24,938

34,523

43,453

Mar 09 Mar 10 Mar 11

Mar’ 10 Mar’ 11

Investments 34,523 43,453

Invest.excl RIDF/MF 30,445 37,328

Trading Profit 615.74 209.48

Yield on Inv. [%] 7.18% 7.19%

[` In crore]

Investments

36

Duration [Yrs] Mar-09 Mar-10 Mar-11 Modified duration Mar-11

AFS 2.52 2.33 1.62 1.53

HFT 0.42 0.22 1.84 1.76

Category (Incl. Of MF/RIDF) Mar-09 Mar-10 Mar-11

HFT 0.50% 1.31% 0.65%

AFS 37.20% 25.16% 32.35%

HTM 62.30% 73.53% 67.00%

Category (Excl. Of MF/RIDF) Mar -09 Mar -10 Mar-11

HFT 0.55% 1.49% 0.76%

AFS 41.05% 28.39% 35.10%

HTM 58.40% 70.12% 64.14%

Treasury Management

37

31.03.09 31.03.10 31-03-11

Gross NPAs at the beginning of the year 584.42 559.22 650.94

Add: Additions 236.46 476.82 797.18

Less: Recoveries / Upgradation / write off 261.66 385.10 673.65

Gross NPA at the end of the period 559.22 650.94 790.23

Gross Credit 48,927 63,629 87,213

Gross NPA % 1.14% 1.02% 0.91%

Net NPA 138.30 197.25 397.74

Net NPA % 0.29% 0.31% 0.46%

Provision Coverage Ratio 80.17% 80.78% 74.70%

` in CroresMovement of NPAs

38

(` in crores)

Sl No

Item Number Amt

1 Proposals approved and implemented up to

31.03.11

14221 3,143.88

2 Proposals approved and implemented upto

31.03.09

01.04.09 to 31.03.10

01.04.10 to 30.06.10

01.07.10 to 30.09.10

01.10.10 to 31.12.10

01.01.11 to 31.03.11

4,728

7,641

65

1,333

165

289

2,406.00

357.87

47.50

105.01

119.67

107.83

3 % of Restructured accounts to Advances 3.60%

Restructured Accounts

39

Period ended → 31.03.10 31.03.11

Branches 1155 1361

ATMs 1145 1250

Branchless Banking Units

[Grameen Vikas Kendras]

1200 2500

Total 3500 5111

Growth y-o-y

Branches

ATMs

GVKs

101

113

789

206

105

1300

The Bank has 2 representative offices at Dubai & HongKong

Branch Network

40

Andhra , 133

Delhi, 73

Gujarath, 69

Goa, 46

Haryana, 46

Karnataka, 347

Kerala, 79

Maharashtra, 131

Punjab, 38

Tamilnadu, 141

U.P., 53

W.B, 30

M.P. 21

Rajastan, 29 Others, 71

Others:

Assam 5

Bihar 7

Chattisgarh 14

Dadra Haveli 1

HP 8

Jharkhand 6

J&K 1

Meghalaya 2

Orissa 13

P’cherry 2

Sikkim 1

Tripura 1

Uttaranchal 7

Chandigarh 3

Total 71Total no. of branches 1361

Branch Network – State Wise – 31.03.2011

State % age

Andhra Pradesh 10%

Delhi 5%

Gujarath 5%

Goa 3%

Haryana 3%

Karnataka 25%

Kerala 6%

Maharashtra 10%

Punjab 3%

Tamilnadu 10%

Uttar Pradesh 7%

West Bengal 3%

Madhyapradesh 2%

Rajasthan 2%

Others 5%

41

58.52%25.49%

8.25%4.56%

0.26%2.92%

Govt. of India

LIC of India

Fis, MFs, Banks &

Corporate Bodies

FIIs & Overseas

Corporate Bodies

NRIs

Resident Individuals

Shareholding pattern as on 31.03.2011

Government of

India58.52%

LIC of India 25.49%

Resident

Individuals2.92%

NRI 0.26%

FIs, MFs,

Banks &

Corporate

bodies

8.25%

FII &

Overseas

body

corporates

4.56%

42

43

Information Technology

� All 1423 units under CBS – 100% of branches/offices under Core Banking

� The Bank has operationalised and networked 1250 ATMs, across thecountry inclusive of 8 Biometric ATMs.

The new facilities introduced during the year are :� Instant Debit Cards� Pin Entry after every ATM transaction as per RBI guidelines� OTP facility for all IVR transactions� 16420 POS Terminals have been installed at different merchant

establishments all over the country. � Under Net Banking:26AS Tax Statement for online viewing of their tax credits by our

customers.Enabled e-Payment of taxes for state of Goa, Gujarat & Maharashtra� VAT collection software for Delhi, Maharashtra and Goa are

enabled for collection of physical challans

Looking Forward

44

�Total Business in FY 2011-12 targetted at

` 265,000 crore�Deposits growth 33% to reach ` 156,000 crore�Advances growth 25% to reach `109,000 crore�200 new branches to be opened to make

national presence, increase from 1361 to 1561

�Exploring the possibility of opening branches at

HongKong, Tanzania, Nepal, Vietnam, etc.

Thank you

45