Canara bank to open over 100 new branches in 2008-09

Mumbai: Canara bank will open 100 new branches across the country and add five new branches overseas as the public sector bank targets 20 per cent growth in the 2008-09 financial year.

Canara bank expects a 20-per cent growth in business to Rs310,000 crore by 2008-09 from Rs2,61,000 crore in 2007-08, its chairman and managing director A C Mahajan said.

''We will open 100 new branches this year, including 28 branches in Punjab, Haryana and Himachal Pradesh, during this year,'' he said at the launch of a loan distribution function in Bangalore.

Canara Bank currently operates 2,694 branches across the country. It has also branches in China, the UK and is planning to open an office each in Bahrain, Muscat, Oman and Qatar in the Gulf and Johannesburg in South Africa during the current financial year itself.

''We are expecting growth from power and infrastructure sectors,'' he said.

Speaking at a loan distribution function for the economically weaker section in Bangalore, Mahajan said the bank has mobilised 1.2 million 'No Frill Accounts' till June 2008.

The government, meanwhile, is planning to give preference to public sector banks (PSBs), including Canara Bank, over private firms in handling merchant banking activities for government companies.

The government is planning to entrust all disinvestment-related merchant banking assignments to PSBs to help them get more exposure in this field. However, exceptions would be made in cases where an assignment cannot be handled by state-run lenders due to technical reasons, government sources said.