The Bangalore-based public sector lender, Canara Bank, is hopeful of seeing its advances grow over 25 per cent during the present financial year on the back of its focus on retail business.
“We should be able to achieve our target in credit growth on the back of strong demand,” S Raman, chairman and managing director of Canara Bank, said.
During the last financial year, the bank witnessed a 25.5 per cent rise in its advances to Rs 2,12,467 crore across major segments including retail, priority, MSMEs, industrial and infrastructure among others.
Bank’s retail lending portfolio recorded a 32 per cent growth to reach Rs 31,572 crore by end of March, 2011. Outstanding housing loan portfolio stood at Rs 15,219 crore, which is 48 per cent of the total retail lending portfolio. Bank’s credit to micro, small and medium enterprises recorded a sound growth of 21.3 per cent to Rs 37,684 crore compared with Rs 31,074 crore recorded in the previous year.
Total advances to the priority sector segments grew 19.3 per cent to Rs 70,757 crore, which is 44 per cent of the net bank credit.
During the last financial year, credit to agriculture touched Rs 29,656 crore, with an 18 per cent growth over the corresponding period of previous year.
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The public sector lender witnessed a growth of 21 per cent to Rs 3,503 crore with a coverage of 193,000 students.
Similarly, the bank has registered a 25.3 per cent growth in deposit to Rs 2,93,973 crore in the last financial year.
“Our total business has touched Rs 5,06,440 crore by March-end, 2010, and we aim to reach an aggregate business of Rs 6,25,000 crore during the present financial year,” he said.
The bank has registered a 79 per cent growth in its net profit to Rs 899 crore in the fourth quarter of the present financial year compared with Rs 503 crore reported during the corresponding period last year.
The rise in net profit is attributed to an increase in the net interest income and lower provisioning along with a sound recovery from non-performing asset (NPA) accounts.
The total income of the bank rose 33.5 per cent to Rs 7,351 crore during this period compared with Rs 4,823 crore reported about an year ago.
Operating profit of the bank increased 18.53 per cent to Rs 1,695 crore during this period.The net interest income of the bank grew 23.5 per cent to Rs 1,973 crore in the fourth quarter of last financial year.