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Canara Bank net soars to Rs. 1,565 crore

BANGALORE: Canara Bank has earned a net profit of Rs. 1,565 crore for the year ended March 31, 2008, which is the highest in the history of the bank, claimed M. B. N. Rao, Chairman and Managing Director. Releasing the annual results at a press conference here on Saturday, Mr. Rao said the operating profit for the year stood at Rs. 2,959 crore, while the net profit for the fourth quarter was Rs. 464 crore.

Outlining the business growth in the last fiscal, Mr. Rao said the bank’s core deposits, comprising retail and current and savings accounts (CASA) deposits, recorded a growth of 25 per cent. The bank has also added incremental CASA deposits of Rs. 3,640 crore. Consequently, the ratio of CASA deposits to aggregate domestic deposits improved by 40 basis points to 32.39 as on March 31, 2008.

The decision to shed preferential rate deposits by about 24 per cent had an impact on aggregate deposits, which grew by Rs. 11,691 crore to Rs. 1,54,072 crore. The bank’s net advances moved up by Rs. 8,732 crore and crossed the Rs. 1 lakh crore mark at Rs. 1,07,238 crore.

The bank’s global business reached Rs. 2,61,310 crore and credit ratio of the bank improved to 69.6 per cent.

Mr. Rao said advances to the priority sectors rose by Rs. 5,359 crore to Rs. 43,203 crore, accounting for 44 per cent of the bank’s adjusted net bank credit which is well above the 40 per cent norm.

Mr. Rao said the bank had targeted a global business of Rs. 3 lakh crore aiming to garner deposits of Rs. 1,75,000 crore and advances of Rs. 1,25,000 crore.

He said the insurance joint venture company with Hong Kong Shanghai Banking Corporation (HSBC) would begin operations in 2008-09.

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