Canara Bank net up 2.13% to Rs 190.93 cr

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Canara Bank has posted 2.13 per cent increase in its net profit to Rs 191 crore for the first quarter (Q1) ended June 30 as compared with Rs 187 crore in the first quarter of FY 06.

Total provision of Rs 109 crore for NPA and Rs 277 crore towards the depreciation and investments have been provided in determining net profit.

Total income has gone up by 23.80 per cent to Rs 2,771 crore as against Rs 2,239 crore in the year-ago quarter.

Operating profit stood at Rs 590 crore as against Rs 560 crore. Excluding the trading profit, operating profit growth is 11.2 per cent, said chairman and managing director of the bank M B N Rao while addressing a press meet to announce the bank's first-quarter results.

The bank also saw a jump in its profits due to a continued focus on building quality assets backed by further containment of the bank's non-performing assets (NPAs), both in absolute and percentage terms, he added.

With this, the bank's cash recovery stood at Rs 190 crore during the quarter under review as against Rs 180 crore in the corresponding period last year.

Percentage of net non-performing assets (NPAs) of the bank improved to 0.91 per cent (Rs 727 crore) as against 1.12 per cent (Rs 988 crore). Capital adequacy ratio (CAR) stood at 11.02 per cent for the first-quarter as against 11.22 per cent in Q1 2005-06.

Retail lending during Q1 aggregated to Rs 1,914 crore as against Rs 1,266 in Q1 of 2005-06, thereby recording a year-on-year growth of 51.20 per cent.

Bank's outstanding priority credit rose to Rs 30,136 crore by the end of Q1 2006-07 as compared to Rs 25,172 crore disbursed last year.

According to Rao, Canara Bank's total business grew by 29.4 per cent to touch Rs 2,03,272 crore at the end of Q1 2006-07 as against Rs 1,57,126 registered at the end of Q1 of 2005-06.

Deposits comprised of Rs 1,22,953 crore and advance was Rs 80,319 crore. Productivity measured by business per employee, stood higher at Rs 4.59 crore as against Rs 3.53 crore a year ago.

Rao giving guidance for FY 2006-07 said, the bank has set a target of Rs 2.33 lakh crore with a growth rate of 18.74 per cent, comprising Rs 1.38 lakh crore under deposits and Rs 95,000 crore under advances.