The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Mahrukh Adajania - Elara Securities (India) Private Limited, Research Division - Analyst
: Sir. So a couple of questions. Firstly, there's a lot of lending that has happened to NBFCs during the quarter. So what kind of NBFCs are these because
that's the key growth driver, correct? So what kind of NBFCs are these?
Question: Mahrukh Adajania - Elara Securities (India) Private Limited, Research Division - Analyst
: So sir, my other question follow-up is that -- what kind of, like, is it a Power Finance NBFC, is it other private NBFCs? That's what I meant. Whether
it's PSU or it's private?
Question: Mahrukh Adajania - Elara Securities (India) Private Limited, Research Division - Analyst
: Got it, sir. Sir, my other question is on asset quality.
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JANUARY 27, 2022 / 11:15AM, CNBK.NS - Q3 2022 Canara Bank Ltd Earnings Call
Sir, the first question is that, was there any reversal of provisions related to Air India this quarter? And will there be some more in the next quarter?
And then on future retail, I mean, it would be part of the restructured book, and it's probably not performing as the restructuring terms, correct?
Question: Mahrukh Adajania - Elara Securities (India) Private Limited, Research Division - Analyst
: Got it, Sir.
Sir, and in terms of future?
Question: Aditya Singhania - Enam Holdings Pvt. Ltd - Analyst
: Congratulations, sir, for excellent results.
Question: Aditya Singhania - Enam Holdings Pvt. Ltd - Analyst
: So I have 2 questions, both are somewhat accounting questions. So one is, so you have made INR 2,700 crores as provisions for loans, loan loss
provision. And the write-offs are around INR 1,300 crores. And the provision -- outstanding provision coverage has not increased in absolute terms.
So I was just curious where is the balance INR 1,300-odd crores?
Question: Aditya Singhania - Enam Holdings Pvt. Ltd - Analyst
: Sorry. So you're saying that INR 2,705 includes the INR 1,300 crores for pension?
V. Ramachandra
No. It [disposed] that.
Question: Aditya Singhania - Enam Holdings Pvt. Ltd - Analyst
: But you're saying INR 2,700 crores does not include the family provisions, right?
V. Ramachandra
Yes. Yes.
Unidentified Company Representative
No. It does not include [revenue path]. And of course, there is a write-off [fee] offset, to the extent we have written off a part of the loan that is
being offset.
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JANUARY 27, 2022 / 11:15AM, CNBK.NS - Q3 2022 Canara Bank Ltd Earnings Call
Question: Aditya Singhania - Enam Holdings Pvt. Ltd - Analyst
: Okay, okay. So the second question was on the accounting change that you did where you have mentioned in your notes to accounts that about
INR 400-odd crores, INR 436 crores was the increase in interest income due to the change in accounting policy, and INR 342 crores was the increase
in gross NPA. So in which [head] has this been accounted for in gross NPA?
Unidentified Company Representative
Sir, existing -- existing or head only, it has been adjusted.
Question: Aditya Singhania - Enam Holdings Pvt. Ltd - Analyst
: I understand that. I'm just trying to understand where this INR 342 crores is gone in the NPA? Is it debits in existing NPA accounts, or is it fresh
slippages?
Unidentified Company Representative
No, sir. These are all existing NPA accounts.
Question: Aditya Singhania - Enam Holdings Pvt. Ltd - Analyst
: In the original treatment, your income would have been lower by INR 436 and your outstanding gross NPA would have been lower by INR 342.
Unidentified Company Representative
And provision also, corresponding provision also.
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