 "Canara Bank aims at 18-20% business growth in FY15")
Public sector lender Canara Bank today said it is aiming at a growth of 18-20 per cent in its total business at Rs 8.5 lakh crore in 2014-15. It is aiming at a deposit growth of 16-17 per cent and a growth of advances of 19-20 per cent as of March 2015.
The bank reported a growth of 20.7 per cent year-on-year (YOY) in global business at Rs 7,21,790 crore in 2013-14 compared to Rs 5,98,033 crore as of March 2013.
Its global deposits reached Rs 4,20,723 crore, 18.2 per cent year-on-year growth compared to Rs 3,55,856 crore as of March 2013. Global advances (net) reached Rs 3,01,067 crore, with 24.3 per cent year-on-year growth compared to Rs 2,42,177 crore as of March 2013.
The overseas business constituted 5.7 per cent of the total business. Total business of the five overseas branches increased to Rs 41,094 crore from Rs 28,786 crore, a growth of 42.75 per cent, said R K Dubey, chairman and managing director.
He said, the bank plans to take the number of branches from 4,755 to 6,000 and number of ATMs from 6,312 to 10,000 by March 2015. In 2013-14, the bank added a record 1,027 branches, taking the total to 4,755. “We had never opened more than 325 branches in a single financial year. It is also the first time that any bank has opened more than 1,000 branches in a year,” Dubey said.
During 2014-15, the Canara Bank will open at least two overseas branches and eight other international centres. In May, it would open a branch at Johannesberg in South Africa and second branch at New York in June. International centres will be set up in DIFC (Dubai), Qatar Financial Centre (Qatar), Frankfurt (Germany), Sao Paulo (Brazil), Dar-es-Salam (Tanzania), Tokyo (Japan), Abuja (Nigeria) and Jeddah (Saudi Arabia).
The thrust will be on improving CASA to 30 per cent from 25.9 per cent in FY14, NPA recovery, improve fee-based income, credit-priority, SME and retail during 2014-15, the chairman said.
It is also aiming at a gross NPA ratio of 2 per cent and net NPA ratio of 1-1.25 per cent and improve the net interest margin to 2.50 per cent during FY15.
The bank has engaged global consulting firm, Boston Consulting Group (BCG) to assist in revamping the operating model. The project ‘Shikhar’ aimed at rejuvenating the bank by focusing on energising branches and customers’ service, increasing sales from branches, growing a robust asset base has been launched with the help of BCG, he said.
The bank reported a growth of 20.7 per cent year-on-year (YOY) in global business at Rs 7,21,790 crore in 2013-14 compared to Rs 5,98,033 crore as of March 2013.
Its global deposits reached Rs 4,20,723 crore, 18.2 per cent year-on-year growth compared to Rs 3,55,856 crore as of March 2013. Global advances (net) reached Rs 3,01,067 crore, with 24.3 per cent year-on-year growth compared to Rs 2,42,177 crore as of March 2013.
More From This Section
Outstanding advances to various priority segments reached Rs 97,762 crore, recording a YOY growth of 23.8 per cent. Advances under agriculture portfolio increased by 19.6 per cent to Rs 48,797 crore, covering over 4.8 million farmers. Credit to direct agriculture reached a level of Rs 44,268 crore with a YOY growth of 17 per cent. Credit outstanding under Kisan Credit Cards (KCCs) stood at Rs 8,031 crore covering 709,000 KCCs.
The overseas business constituted 5.7 per cent of the total business. Total business of the five overseas branches increased to Rs 41,094 crore from Rs 28,786 crore, a growth of 42.75 per cent, said R K Dubey, chairman and managing director.
He said, the bank plans to take the number of branches from 4,755 to 6,000 and number of ATMs from 6,312 to 10,000 by March 2015. In 2013-14, the bank added a record 1,027 branches, taking the total to 4,755. “We had never opened more than 325 branches in a single financial year. It is also the first time that any bank has opened more than 1,000 branches in a year,” Dubey said.
During 2014-15, the Canara Bank will open at least two overseas branches and eight other international centres. In May, it would open a branch at Johannesberg in South Africa and second branch at New York in June. International centres will be set up in DIFC (Dubai), Qatar Financial Centre (Qatar), Frankfurt (Germany), Sao Paulo (Brazil), Dar-es-Salam (Tanzania), Tokyo (Japan), Abuja (Nigeria) and Jeddah (Saudi Arabia).
The thrust will be on improving CASA to 30 per cent from 25.9 per cent in FY14, NPA recovery, improve fee-based income, credit-priority, SME and retail during 2014-15, the chairman said.
It is also aiming at a gross NPA ratio of 2 per cent and net NPA ratio of 1-1.25 per cent and improve the net interest margin to 2.50 per cent during FY15.
The bank has engaged global consulting firm, Boston Consulting Group (BCG) to assist in revamping the operating model. The project ‘Shikhar’ aimed at rejuvenating the bank by focusing on energising branches and customers’ service, increasing sales from branches, growing a robust asset base has been launched with the help of BCG, he said.