Business Daily from THE HINDU group of publications
Friday, Jul 21, 2006


News
Features
Stocks
Cross Currency
Shipping
Archives
Google

Group Sites

Corporate Results - Public Sector Banks
Money & Banking - Financial Performance
Canara Bank Q1 net up marginally at Rs 191 cr

Our Bureau

Impact of large provisions on account of depreciation of investments


Score Card
The bank's advances are estimated to grow to Rs 95,000 crore
Targets business of Rs 233,000 crore for the financial year
Plans to raise at least Rs 4,000 crore of capital


MR M.B.N. RAO, CMD, Canara Bank, at a press conference in Bangalore on Thursday. — G.R.N. Somashekar

Bangalore , July 20

Canara Bank's first quarter net profit increased by 2.2 per cent to Rs 190.93 crore as against Rs 186.90 crore posted during the corresponding period of the previous year.

Addressing a press conference here on Thursday, the Canara Bank's Chairman and Managing Director, Mr M.B.N. Rao, said that the profits would have shown a much higher increase but for the large provisions the bank had incurred on account of depreciation of investments. Depreciation provision was Rs 276.91 crore in Q1 this year as against Rs 188.41 crore during the previous year.

Q1 Financials

Operating profits rose 5.3 per cent for the same period to Rs 590.20 crore from Rs 560.30 crore. Canara Bank's gross income rose to Rs 2,770.95 crore from Rs 2,238.58 crore.

The increase in income was driven by interest income that rose to Rs 2,512 crore from Rs 1,979.53 crore. Interest on advances rose 35 per cent to Rs 1,651.85 crore.

The increase in interest income was powered by a 36 per cent in advances to Rs 80,319 crore.

Gross expenditure also rose to Rs 2,180.75 crore, up from Rs 1,678.28. The increase was largely on account of an increase in interest costs on deposits.

Interest expenditure was up at Rs 1,565 crore from Rs 1,146.69 crore. This increase pushed down the net interest margin of the bank slightly down to 3.22 per cent from 3.36 per cent during the corresponding period of the previous financial year.

Net NPAs

Mr Rao, however, said that net interest margin would be restored as some of the loans get re-priced. The bank during the period brought down its gross non performing assets to 2.15 per cent of the advances in Q1 or Rs 1,738 crore as against 3.86 per cent or Rs 2,339 crore for the corresponding period of the previous year.

Canara Bank has targeted a business of Rs 233,000 crore for the financial year. In its guidance for the current year, the advances are estimated to grow to Rs 95,000 crore.

For sustaining the advances, Mr Rao said that the bank would be raising more capital. The bank currently has a capital adequacy ratio of 11.02 per cent. For the current year, the bank hoped to raise at least Rs 4,000 crore of capital. Mr Rao said that the bank was weighing the capital raising options, though it had the option of raising the full amount in the form of debt itself.

More Stories on : Public Sector Banks | Financial Performance

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Reliance net up 10 pc in Q1


Emkay Share Q1 net at Rs 4.43 cr
Gujarat Ambuja Q4 net doubles
Thermax plans additional unit at Vadodara
Nicholas Piramal net falls 5.7 pc
Ranbaxy Q2 net rises 19.5 pc at Rs 121 cr
Raymond net dips by 38 pc
Emtex Ind trims loss to Rs 6.52 cr
MRF Q3 net drops to Rs 8.17 cr
Godrej Consumer Q1 net up at Rs 30.49 cr
Havell's Q1 net profit up 81 pc
Ganesh Housing Q1 net up
Sasken Q1 net rises 38 pc
TNPL posts Rs 18.81-cr Q1 profit
Biocon net dips 16 pc in Q1
KS Oils Q1 net up 142 pc
Kotak Mahindra Bank net up 21%
Canara Bank Q1 net up marginally at Rs 191 cr
Union Bank net declines 30 pc on higher provisioning


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line