In this report, we take a look at Canara Bank and Union Bank’s earnings for the quarter Q2FY19. Both banks have historically shied away from releasing information about digital performances.
Canara Bank reported a 15.3% rise in its net profit to Rs 300 crore in the quarter ending September 30, 2018 (Q2FY19), as compared to Rs 260.1 crore in the corresponding quarter last year. The bank’s Net Interest Income (NII) fell by 15.5% to Rs 3281 crore in Q2FY19, although it surged by 17.89% YoY from Rs 2783 crore.
Internet & Mobile Banking
– Internet Banking: The bank reported 5.4 million users at the end of September 30, 2018, as against 5.09 million users at the end of June 2018.
– Mobile Banking: The bank had 9.8 million users in Q2 FY19 as compared to 9.56 million users in the previous quarter.
RuPay Cards issued
In this quarter, the number of RuPay cards issues remained flat over the last quarter at 4.2 million cards. RuPay is India’s payments system for enabling financial transactions, and is similar to Visa and Mastercard.
The bank said it seeded 4.1 million bank accounts with Aadhaar, as compared to 3.7 million accounts in the same quarter last year.
- The bank said that it has 45.8 million debit card users at the end of June, as compared to 45.2 million users in the previous quarter.
- It had a network of 9,207 ATMs, as compared to 9,221 ATMs in the previous quarter.
- It had a total of 6,308 branches, as compared to 6,299 it reported in the previous quarter
- It launched Canara OTP, an application to generate OTPs via net banking, instead of receiving SMS based OTPs.
Union Bank of India
For the quarter ending September 2018, the Union Bank of India reported a 110% rise in its net profit to Rs 139 crore, compared to a loss of Rs 1531 crore in posted in the same quarter last year. The bank’s net interest income rose by 7.5% to Rs 2494 crore compared to Rs 2321 crore in the same period last year.
Internet Banking & Mobile Banking
The bank did not disclose the number of its internet banking users.
– Mobile Banking: The bank reported that it had 2.5 million users in Q2FY19 as compared to 2.25 million users in the previous quarter. On a yearly basis, the lender said that mobile banking users grew by 74% from 1.4 million in Q2FY18.
The value of transactions carried out via mobile banking in Q2FY19 stood at Rs 5,953 crore as compared to Rs 5,344 crore in the last quarter and Rs 2,904 crore in Q2FY18.
RuPay Cards issued
Union Bank issued 4.82 million RuPay cards in the quarter ending June, slightly down from the 4.85 million such cards it issued in the last quarter.
- Its debit card issuance has grown 16.9% on year, but it did not disclose the number of cards issued.
- Its credit card issuance has grown 15.5% year 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 was 76% in the last quarter as well.
- It has a network of 6,794 ATMs this quarter, as compared to 7,556 ATMs in the previous quarter. The numbers exclude the number of Micro ATMs which stood at 5,407, which was the same last quarter.
- The lender said that it had a total of 4,303 branches, as compared to 4,302 in Q1FY19 and 4301 in Q4FY18.
- The bank seeded 7.5 million bank accounts with Aadhaar. In the last quarter, the bank blocked Aadhaar Enabled Payment System (AEPS) transactions on micro ATMs (installed by private banks since April). This was due to alleged round tripping by Business Correspondents of private lenders.