The Hindu : Business : Canara Bank pays 70 p.c.

Online edition of India's National Newspaper
Thursday, May 03, 2007
ePaper

Business

Business

Canara Bank pays 70 p.c.

Special Correspondent

BANGALORE: Canara Bank, which had a 23 per cent growth in its global business during 2006-07, reaching Rs. 2,40,000 crore, has put in place systems to comply with Basel II norms by March 2008, implementing a new capital adequacy framework, Chairman and Managing Director, M. B. N. Rao, said here on Wednesday.

"The overall objective is to maintain capital to risk weighted ratio within the regulatory minimum of nine per cent; last fiscal it was 13.50 per cent. During the year, we raised Tier II capital of Rs. 1,975 crore apart from sourcing $250 million through Medium Term Notes," Mr. Rao told reporters.

Canara Bank recorded a net profit Rs. 1,420.80 crore. Its operating profit for the year grew 14.2 per cent to Rs. 2,912.47 crore. The board of directors has recommended a 70 per cent dividend as compared to 66 per cent in the previous fiscal. Earnings per share improved to Rs. 34.65 from Rs. 32.76. The investment portfolio of the bank aggregated Rs. 45,226 crore with duration brought down as a conscious decision in view of interest rate volatility, Mr. Rao said.

Signs MoU with Robeco

Foreign business turnover of the bank showed a 32 per cent growth to reach Rs. 1,30,083 crore with outstanding credit at Rs. 7,896 crore and 27 per cent increase under remittances from overseas.

The second overseas branch was opened in Hong Kong, a representative office is in place in Shanghai and the aim is to have 21 more overseas branches.

Among the new initiatives was the signing of a memorandum of understanding with Robeco Groep of the Netherlands for asset management business overseas and the bank was looking at more joint ventures.

Printer friendly page
Send this article to Friends by E-Mail

Business

News Update

Stories in this Section