Thaindian News

Bangalore, May 5 (IANS) Leading state-run Canara Bank posted net profit of Rs.899 crore for the fourth quarter (January-March) of fiscal 2010-11, registering a whopping 79 percent year-on-year (YoY) growth.

For fiscal 2011, however, net profit increased 33 percent (YoY) to Rs.4,026 crore from Rs.3,021 crore a year ago.

“Record cash recovery (Rs.2,032 crore), lower provisioning (Rs.181 crore) and higher income from core banking business have shot up net profit to 79 percent YoY in the fourth quarter,” Canara Bank chairman and managing director S. Raman told reporters here.

With total income for the quarter under review (Q4) increasing 34 percent to Rs.7,351 crore due to higher realisation from interest, income from investment and non-interest income, operating profit rose 19 percent to Rs.1,695 crore, as total expense was pegged at Rs.5,656 crore though up 39 percent YoY.

“Net interest income increased 24 percent YoY to Rs.1,973 crore for the quarter, while net interest margin expanded 32 basis points to 3.12 percent YoY for fiscal (FY 2011),” Raman said, highlighting the bank’s performance during the quarter and the fiscal.

Total business for FY 2011 jumped 25 percent YoY to Rs.5,06,440 crore from Rs.4,03,986 crore, with total deposits growing 25 percent to Rs.2,93,973 crore and net advances 26 percent to Rs.2,12,467 crore.

Similarly, total income for FY 2011 rose 19 percent YoY to Rs.25,767 crore, with 22 percent growth in interest income from loans and advances, while operating income grew 21 percent YoY to Rs.6,107 crore from Rs.5,061 crore a year ago.

“Net interest income for fiscal under review (FY 2011) shot up 38 percent to Rs.7,823 crore from Rs.5,681 crore year ago,” Raman pointed out.

On robust performance, the bank has declared a dividend of 110 percent for the fiscal on Rs.10 per share par value as against 100 percent for the previous fiscal (FY 2010).

Capital adequacy ratio (CAR) improved to 15.4 percent YoY from 13.4 percent year ago, with tier-1 capital ratio at 10.9 percent as against 8.5 percent in FY 2010.

The bank’s CASA (current account/savings account) deposits grew 22 percent to Rs.83,117 crore during the fiscal.

Gross non-performance assets (NPA) improved to 1.45 percent YoY (Rs.3,089 crore) compared to 1.52 percent (Rs.2,590 crore), while Net NPA ratio stood at 1.11 percent (Rs.2,347 crore) compared to 1.06 percent (Rs.1,800 crore) year ago.

The bank has set an ambitious business target of Rs.6,25,000 crore for the new fiscal (2011-12), comprising total deposits of Rs.3,55,000 crore and advances of Rs.2,70,000 crore.

“Our thrust during this fiscal will be on retail business, including deposits and advances, as retail lending portfolio grew 32 percent YoY in FY 2011 to Rs.31,572 crore, with housing loans at Rs.15,219 crore constituting 48 percent of total retail lending,” Raman added.