Canara Bank net up 26 per cent at Rs241 crore in April-June 2007-08
Our Banking Bureau
26 July 2007

Mumbai: The Canara Bank has reported a net profit of Rs241 crore for April-June 2007-08, up 26 per cent from Rs191 crore in the corresponding period of the previous fiscal.

Operating profit for the first quarter of the current fiscal rose to Rs612 crore compared to Rs575 crore during the corresponding previous quarter.

Buoyed by a strong 43 per cent growth in the core interest income, the bank's total income grew over 36 per cent to Rs3,760 crore compared to Rs2,755 crore for first quarter of previous year.

Non-interest income for the quarter amounted to Rs380 crore, up 57 per cent as against Rs 243 crore for the same quarter a year ago.

Earnings Per Share (EPS) improved from Rs18.64 to Rs23.48 while book value rose to Rs203.52 from Rs176.11 for the corresponding previous quarter.

The bank has made a total provision of Rs372 crore, its chairman and managing director M B N Rao said.

Canara Bank's global business reached Rs2,37,866 crore in June 2007, clocking a 17 per cent year-on-year growth compared to Rs2,03,272 crore in June 2006, Rao said.

Total expenditure for the quarter amounted to Rs3,148 crore.

Business was driven by a 16 per cent growth in deposits and 18 per cent growth in advances. While aggregate deposits touched Rs143,126 crore, advances (net) reached a level of Rs94,740 crore. Credit to deposit ratio stood at 66.19 per cent compared to 65.32 per cent a year ago.

Capital to Risk weighted Assets Ratio (CRAR) worked out to 13.65 per cent vis-a-vis the regulatory minimum of 9 per cent.

During the first quarter alone, the bank has mobilised 89,000 no-frill accounts, taking the cumulative figure to around 4.3 lakh at June 2007.

The bank has so far achieved total financial inclusion in five lead districts of Palakkad, Malapuram, Wynad and Kozhikode in Kerala and Davangere in Karnataka.

While bank's gross NPA ratio came down from 2.15 per cent as of June 2006 to 1.55 per cent in June 2007, net NPA ratio has declined further from 0.91 per cent 0.89 per cent.

The bank's investment portfolio aggregated to Rs50,061 crore as at June 2007.

Outstanding advances to priority segments grew 26 per cent Y-o-Y to Rs37,970 crore. Credit disbursement to agriculture stood at Rs2,390 taking outstanding agricultural advances to Rs15,621 crore, he said.

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