Canara Bank Ltd Q2 2022 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Aditya Singhania - Enam Holdings Pvt. Ltd - Analyst : This is Aditya Singhania from Enam. I just wanted to clarify a couple of things on the Dewan accounting. So sir, what was the total exposure we had? And if you could sort of tell me whether it was in the form of bonds or loans? Unidentified Company Representative Okay. We had about INR 3,600 crores in the form of loan, about INR 3,385 crores in the form of investments, right? So that was the original thing. Out of that, what I said was around INR 1,700-odd crores we received. So we still have a book liability where -- because our liability towards the guarantor still exists. So that thing, we are still keeping alive. So about INR 1,950 crores is there liability, which we are attributing towards the guarantors. So that call will be taken as to how and when we are going to take action against that.

Question: Aditya Singhania - Enam Holdings Pvt. Ltd - Analyst : So is there a recovery possible on this INR 1,950 crores? Unidentified Company Representative We will definitely try, as a consortium, we will definitely try.

Question: Aditya Singhania - Enam Holdings Pvt. Ltd - Analyst : Okay. So there is personal guarantees? Unidentified Company Representative Personal guarantee. Yes, yes, yes.

Question: Aditya Singhania - Enam Holdings Pvt. Ltd - Analyst : Yes, yes. And this was not written off earlier. This was 100% provisioned account? Unidentified Company Representative It is 100% provisioned account. Yes. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 26, 2021 / 10:00AM, CNBK.NS - Q2 2022 Canara Bank Ltd Earnings Call

Question: Aditya Singhania - Enam Holdings Pvt. Ltd - Analyst : Okay. And sir, so what I could not understand that Chairman mentioned that you have made an total INR 2,200 crore further provision using this. So if you could just explain that aspect?

Question: Aditya Singhania - Enam Holdings Pvt. Ltd - Analyst : Right. Sir, so additional mean in addition to our RBI mandate right now?

Question: Aditya Singhania - Enam Holdings Pvt. Ltd - Analyst : Right. And so all of this is part of INR 2,678 crores, which is provisioned for NPA plus what is INR 475 crores in others, sir?

Question: Aditya Singhania - Enam Holdings Pvt. Ltd - Analyst : Okay. So that is against that, right.

Question: Aditya Singhania - Enam Holdings Pvt. Ltd - Analyst : Right. Right. That's very clear. Just a second question I had on the DTA. So we understood that the DTA outstanding now is INR 8,000 crores?

Question: Aditya Singhania - Enam Holdings Pvt. Ltd - Analyst : Okay. So how much of that is not getting allocated to CET1 right now, sir?

Question: Aditya Singhania - Enam Holdings Pvt. Ltd - Analyst : Okay. So INR 2,000 crores of further tax provisions in the books hopefully in the next 2 quarters will be added to CET1 as it gets used?

Question: Aditya Singhania - Enam Holdings Pvt. Ltd - Analyst : I understand.