Canara Bank net up 18% at Rs 362 crore

BS 200 Scorecard

Canara Bank has registered an 18 per cent rise in net profit to Rs 361.77 crore for the second quarter of current financial year compared to the same period last year. For the first half of the financial year, the bank's net profit was up 12 per cent at Rs 553 crore.

Total income for the quarter rose by 20 per cent to Rs 2,993 crore. Interest income on advances recorded a robust growth of 39 per cent to reach Rs 1,792 crore. On the other hand, other income, including from treasury operations, fell by 19.4 per cent to Rs 313.82 crore.

The bank's return on assets (annualised) stood at 1.03 per cent during the second quarter as compared to 1.04 per cent last year. The earnings per share (not annualised) during the quarter was Rs 8.82 against Rs 7.48 in the same period last year.

Announcing the results at a press conference here, Canara Bank Chairman and Managing Director M B N Rao said, "Increase in the interest income on advances, maintenance of good quality advances and reduction in non-performing assets helped the bank to improve its performance during the second quarter."

During the second quarter, the bank made a provision of Rs 253 crore, including Rs 197 crore towards NPA. The gross NPA ratio declined from 3.45 per cent to 2.13 per cent, with net NPA ratio declining to 0.96 per cent from 1.46 per cent. The capital adequacy ratio of the bank stood at 12.27 per cent, while the book value worked out to Rs 184.95.

The bank is planning to raise resources in excess of Rs 3,000 crore to maintain the capital adequacy ratio above 12 per cent and fund future expansion, diversification of operations and comply with Basel-II norms, Rao said.