Canara Bank Q1 Net Up 81.9% To Rs 256 Crore

Bangalore, July 30: | Updated: Jul 31 2003, 05:30am hrs
Canara Bank has clocked a net profit of Rs 255.85 crore in the first quarter of FY04 registering a growth of 81.9 per cent as against Rs 140.65 crore recorded in Q1 FY03.

Addressing a press conference here on Wednesday, RV Shastri, chairman, Canara Bank, said credit growth, increase in returns from investments, reduction in the cost of deposits were some of the key factors behind the good performance of the bank.

Mr Shastri added the bank is expecting an incremental increase of Rs 8,000 crore in credit offtake in the current fiscal. Out of this, 40 per cent is expected to be contributed by the retail investors.

Aggregate business of the bank grew year-on-year by 15.06 per cent to touch Rs 1,13,038 crore comprising Rs 72,890 crore in deposits, Rs 40,148 crore in advances. While deposits grew by 12.56 per cent, adva-nces grew by 19.91 per cent.

While interest income has recorded a growth 10.01 per cent to reach Rs 949 crore as against Rs 863 crore in Q1 FY03, non-interest income grew by 45.91 per cent to touch Rs 376 crore from Rs 258 crore.

The bank has made good use of the buoyancy in the treasury operations by booking a profit of 120.31 per cent to reach Rs 201 crore for the quarter as against Rs 91 crore in the corresponding period last year.

The cost of deposits declined to 6.03 per cent compared to 7.09 per cent in the same period last year and 6.32 per cent in the quartee ended March 2003. As a result, interest on deposits declined from Rs 1,121 crore as at June 2002 to Rs 1,087 crore as at June 2003 despite an year-on-year growth 12.56 per cent in deposits.

Its net NPA ratio came down to 3.56 per cent to touch Rs 1429 crore from Rs 1,453.87 crore in March 2003. The total capital adequacy ratio continued to be above 12 per cent as against the stipulated minimum of nine per cent. Earnings per share worked out to be Rs 6.24 as against Rs 2.43 for the corresponding quarter.