Canara Bank Q3 net profit soars 50% to Rs 1052.58 crores

Capital Adequacy and Asset Quality

Capital to Risk Weighted Assets Ratio (Basel II norms) worked out to a comfortable 14.44% vis-à-vis the regulatory requirement of 9%. Given still undiluted 73.17% Government of India holding, the Bank has enough headroom for need based capital augmentation under Tier I, signifying strongest capital position among peers to support the business growth.

The Bank’s gross NPA ratio stood at 1.77% (Rs.2619 Crore) and net NPA ratio at 1.34% (Rs.1976 crore) as at December 2009. Cash recovery for the nine months period improved to Rs.896 crore compared to Rs. 836 crore during the corresponding period of the last financial.

Credit Segments

Advances to priority sector recorded a growth of 19.4% to reach Rs.54893 crore, accounting for 40.65% of the adjusted net bank credit. Credit to agriculture grew by 21% to touch Rs.22880 crore, covering 26.32 lakh farmers. The Bank's credit to Micro, Small and Medium Enterprises (MSMEs) grew by a robust 32.6% to reach Rs.28427 crore compared to a level of Rs.21440 crore a year ago.

Sustaining its leading position among nationalized banks, the Bank's education loan portfolio increased to Rs.2791 crore as at December 2009, registering a y-o-y growth of 28% and covering more than 1.65 lakh students.

The outstanding credit under retail lending operations rose by 19.4% to Rs.21462 crore as at December 2009, with a disbursal level of Rs.5135 crore during the first nine months of the current financial. Advances under housing (direct) recorded an impressive 26.9% growth to reach Rs.8464 crore. Housing portfolio, with a significant portion in priority ambit, constituted 39.4% of the retail portfolio.

Driving financial inclusion in the country, the Bank has achieved total financial inclusion in all the 26 lead districts spread across five States. The Bank has mobilized 3.11 lakhs no-frill accounts during the nine months period, taking the tally under such accounts to 20.41 lakhs since inception. Amount under such accounts increased to Rs.355 crore. The Bank has so far formed 3.03 lakhs Self Help Groups (SHGs), with credit linking of 2.57 lakhs SHGs, with an outstanding amount of Rs.768 crore.

Delivery Channels and Technology Advancement

The Bank’s branch network has crossed 3000 as at December 2009. During the current financial year, the Bank undertook major branch expansion drive across the country. The Bank has opened 273 branches during the first nine months, taking the total tally under the branch network to 3005 as at December 2009, including 3 overseas branches at London, Hong Kong and Shanghai. On 19th November 2009, Bank’s founder’s day, the Bank has opened 104 branches across India, befitting its 104th year of service to the nation.

The Bank has covered 1768 branches, accounting for 90% business under Core Banking Solution. With over 2000 ATMs, the Bank has a debit card base of 46.75 lakhs as at December 2009. The number of branches offering Anywhere Banking (AWB) and Internet and Mobile Banking (IMB) services expanded to 2086 and 1918 branches respectively. Under the advanced payment and settlement system, all branches have been enabled with RTGS and NEFT facilities.

Goals for FY10

The Bank aims to reach an aggregate business figure of Rs.4 lakh crore, comprising total deposits of Rs.2,25,000 crore and advances of Rs.1,75,000 crore.

The Bank will continue to focus on core business, with the objective of augmenting profits and profitability.

Expanding global footprints, the Bank is likely to open a Representative Office at Sharjah and its second branch at Leicester in the U.K.

Further roll-out of CBS branches/units.

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(This is a press release from Canara Bank)