In this report, we take a look at Canara Bank and Union Bank’s earnings for the quarter Q1FY19. Both banks have historically shied away from releasing information about digital performances.
Canara Bank reported a 11.87% rise in its net profit to Rs 281.49 crore in the quarter ending June 30, 2018 (Q1 FY19), as compared to Rs 251.60 crore in the corresponding quarter last year. The bank attributed the unexpected profit to a strong growth in its Net Interest Income (NII), which surged 43.13% during Q1FY19 to Rs 3,883 crore from Rs 2,713 crore in posted in Q1FY18.
Internet & Mobile Banking
– Internet Banking: The bank reported 5.09 million users at the end of June 30, 2018, as against 4.78 million users at the end of March 2018.
– Mobile Banking: The bank had 9.56 million users in Q1 FY19 as compared to 9.01 million users in the previous quarter.
Rupay Cards issued
In this quarter, Canara Bank issued 4.25 million Rupay cards, slightly down from the 4.27 million such cards it issued in the same quarter last year. The bank said that it had issued 4.26 million Rupay cards in the quarter ending March 2018. Rupay is India’s payments system for enabling financial transactions, and is similar to Visa and Mastercard.
- The bank said that it has 45.2 million debit card users at the end of June, as compared to 43 million users in the previous quarter.
- The lender said it had a network of 9,221 ATMs, as compared to 9,395 ATMs in the previous quarter.
- The bank said that it had a total of 6,299 branches, as compared to 6,212 it reported in the previous quarter
- The lender launched Canara OTP, an application to generate OTPs via net banking, instead of receiving SMS based OTPs.
- It introduced a facility for customers to ‘seed and authenticate’ their Aadhaar numbers to their bank accounts via net banking.
UNION BANK OF INDIA
For the quarter ending June 2018, the Union Bank of India reported a 11.2% rise in its net profit to Rs 130 crore, compared to the Rs 117 crore in posted in the same quarter last year. The bank attributed its rise in profits to the growth seen in its net interest income, which rose 17.1% to Rs 2,626.2 crore compared to Rs 2,242.6 crore in the same period last year.
Internet Banking & Mobile Banking
The bank did not disclose the number of it internet banking users.
– Mobile Banking: The bank reported that it had 2.25 million users in Q1 FY19 as compared to 2.05 million users in the previous quarter. On a yearly basis, the lender said that mobile banking users grew by 77% from 1.27 million in Q1 FY18.
The lender said the value of the transactions carried out via mobile banking in Q1 FY19 stood at Rs 5,344 crore as compared to Rs 4,521 crore in the last quarter and Rs 2,534 crore in Q1 FY18.
Rupay Cards issued
Union Bank issued 4.85 million Rupay cards in the quarter ending June, slightly down from the 4.88 million such cards it issued in the last quarter.
- The bank said that its debit card issuance has grown 16.9% on year, without disclosing the number of cards it had issued.
- The bank said that its credit card issuance has grown 19.3% on year, without disclosing the number of cards it had issued.
- The bank claimed that 76% of all its transactions happen via alternate channels. However, it did not disclose what all transactions are classified as alternate channels. This number was 75.7% in the quarter ending March 2018 and 67% in Q1 FY18.
- The bank said it has a network of 7,556 ATMs this quarter, as compared to 7,642 ATMs it had in the previous quarter. Both the numbers exclude the number of Micro ATMs which stood at 5,407 in both, Q1 FY19 and in Q4 FY18.
- The bank also claimed to have replaced 1,241 old ATMs with new advanced ATMs in the quarter.
- The lender said that it had a total of 4,302 branches, as compared to 4,301 it reported in the previous quarter.
Earlier this month the bank blocked Aadhaar Enabled Payment System (AEPS) transactions for its users on micro ATMs (installed by private banks since April) for alleged round tripping by Business Correspondents of private lenders.