Canara Bank’s net profit for Q2 of FY10 rose by 72% to reach Rs.911 crore
October 26, 2009:
Canara Bank’s net profit for Q2 of FY10 rose by a robust 72% to reach Rs.911 crore, compared to Rs.529 crore recorded in the corresponding quarter last year.
Operating profit grew by 84% to reach Rs.1419 crore. With a provision of Rs.243 crore towards NPA, the Bank has made a total provision of Rs.509 crore.
Return on Average Assets for the Q2 improved to 1.63% compared to 1.13% for the same quarter a year ago. Earnings Per Share (EPS) (not annualized) for Q2 improved to Rs.22.21 from Rs.12.91 a year ago. Book Value rose to Rs.280. 38 compared to Rs.219.25 as at September 2008.
Income and Expenses
The Bank’s total income during Q2 grew by 26% to reach Rs.5602 crore, with Rs.3505 crore contributed by interest income from loans/advances. Non-interest income of the Bank grew by a robust 163.6% to touch Rs.893 crore.
While total expenses contained at 13.8%, the operating expenses during Q2 grew by 10.3%. The Bank continues its austerity drive to control expenses under various heads.
Net Interest Income for Q2 increased to Rs.1314 crore, registering a growth of 14.3% compared to Rs.1149 crore a year ago.
First Half Year Performance
Net profit for the first half more than doubled to Rs.1466 crore, registering a robust 125% growth compared to Rs.652 crore a year ago. Operating profit rose by 67% to Rs.2460 crore during the first half of FY10.
The Bank’s total income rose by 24.4% during the first half to reach Rs.10634 crore, with Rs.6930 crore contributed by interest income from loans/advances. The non-interest income of the Bank grew by 93.2% to touch Rs.1367 crore.
With a total expenditure growth of 15.6%, the growth in operating expenses during H1 was contained at 8%.
Net Interest Income during the first half of the current financial rose by 20.2% to Rs.2605 crore compared to Rs.2168 crore as at September 2008. Net Interest Margin (NIM) for the first half protected at to 2.66%.
Business Growth and Productivity
Aggregate Business mix crossed Rs.3.5 lakh crore to reach Rs.3,50,740 crore, registering a y.o.y growth of 20.6%. While aggregate deposits grew by 19% to reach Rs.2,04,284 crore, advances (net) reached a level of Rs.1,46,456 crore, registering a growth of 22.8%. The Bank's core deposits, comprising retail and CASA deposits, recorded healthy y-o-y growth of 52%. With a savings deposit growth of 14%, the ratio of CASA deposits to domestic deposits was at 29.19%. Credit to deposit ratio improved to 71.69% compared to 69.57% as at September 2008.
The Bank’s domestic business constituted 97.8% of the aggregate business with Rs.200513 crore (98.2%) under deposits and Rs. 142332 crore (97.2%) under advances.
While Business per Employee of the Bank rose to Rs.8.46 crore as at September 2009 compared to Rs.6.86 crore a year ago, Business per Branch improved to Rs.125.00 crore compared to Rs.107.16 crore in September 2008. With an addition of over 10 lakhs clientele during the first half of the current financial, the Bank’s clientele base increased to 35.83 million as at September 2009.
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(This is a press release from Canara Bank)
