Canara Q3 bottomline soars 34% to Rs 954 crore

Canara Bank has registered a 34.18 per cent increase in net profit to touch Rs 954 crore for the 9-month period ended 31 December 2003, when compared to the corresponding period last year. The operating profit for the same period increased by 47.76 per cent to clock Rs 2181 crore.

The bank has registered its net profit after making a total provision of Rs 1227 crore as against Rs 765 crore for the corresponding period last year.

Provision of Rs 814 crore is made for NPA as against Rs 330 crore made for the same period last fiscal. The bank has also made a floating provision of Rs 550 crore for NPA over and above the minimum prudential provision requirements.

On the quarterly basis, the net profit of the bank has increased by 27.76 per cent to reach Rs 372.69 crore when compared to the corresponding period last year. For the same period, the total income of the bank has increased by 6.91 per cent.

Announcing the results of the bank, R V Shastri, chairman and managing director, Canara Bank said, "The bank is poised to better its performance when compared to the previous fiscal. We are hopeful of reaching a minimum 25 per cent increase in our net profit for the current fiscal."

The aggregate business of the bank has registered a year-on-year growth of 13.99 per cent to touch Rs 1,20,516 crore. While the deposits have grown by 14.46 per cent, growth in advances has increased by 13.14 per cent.

Productivity in terms of business per employee increased from Rs 2.67 crore from Rs 2.50 crore as on March 2003.

The bank's NPA (Rs 1718 crore) ratio has marginally slipped from 3.59 per cent in March 2003 to 4.05 per cent in December 2003.

The bank attributes this to the fact that it preferred to consider the Dabhol account of Rs 390 crore as an NPA. However, Shastri hoped that this account would become a performing asset by the end of this fiscal.

The return on assets improved from 1.24 per cent in March 2003 to 1.33 per cent (annualised) for the 9-month period ending December 2003. During the same period, the bank's EPS has also improved from Rs 23.27 to Rs 20.56.

While plans are on to go for further dilution of its stake during the next fiscal, the bank is also upbeat on its bancassurance business during the current fiscal.

Having recently commenced marketing of life insurance products at several strategic branches, the bank expects its annual premium collection by the end of this fiscal to be about Rs 4 crore.

The bank is targeting a business of Rs 1,31,000 crore by the end of this fiscal, registering a year-on-year growth of 16 per cent.