The Hindu : Business : Canara Bank Q2 net up 11 p.c.

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Friday, Nov 02, 2007
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Canara Bank Q2 net up 11 p.c.

Special Correspondent

BANGALORE: Canara Bank rebalanced its credit portfolio and shifted focus to priority sector areas during the second quarter of the current financial year.

Addressing a press conference here on Wednesday, M. B. N. Rao, Chairman and Managing Director, said, “We have contained the growth of retail advances.” Retail advances grew only by 6 per cent on year-on-year basis to Rs. 17,187 crore. Priority sector advances grew by 25 per cent to Rs. 38,920 crore.

The portfolio moderation notwithstanding, the yield on advances improved to 10.23 per cent from 8.95 per cent. The improved yield was partly achieved through repricing of advances, Mr. Rao said.

About 10 per cent of the outstanding advances of Rs. 95,344 crore had been repriced, he said. As a result, the net profit improved by 11 per cent in the quarter ended September 30, 2007, to Rs. 401.57 crore compared to the corresponding last year.

The profits were partly buoyed by the Rs. 423 crore received through recovery of non-performing loans. Besides, the bank also received Rs. 90 crore on account of its divestment in its asset management company to Dutch financial conglomerate, Robeco Asset Management Company. The bank, he said, would open five branches abroad this year.

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