Canara Bank has shown 11% growth in its net profit for the second quarter ended September 2007 to record Rs 401.57 crore as against Rs 361.77 crore during the corresponding period of the previous year. The total income also went up by 36.1% to touch Rs 4,054.66 crore as against Rs 2,977.93 crore during the previous corresponding period.
Chairman and managing director M B N Raod said the bank had received the Reserve Bank of India’s nod to open five overseas branches. These branches would come up in Johannesburg, Frankfurt, Muscat, Manama and Qatar. He also said that the bank’s Shanghai office, which is currently a representative office, would be converted into a full-fledged branch.
Rao also said the capital adequacy ratio of the bank was 13.89% as on September 30, while the net non-performing assets (NPAs) were 0.99%. “We are fully geared to make a smooth transition to the new capital adequacy framework under the Basel II norms,” he said.
The aggregate business of the bank showed an 18% growth to touch Rs 2,40,537 crore.
In its endeavour to improve its visibility and position itself as a strong customer-centric bank, it has also undertaken a brand building exercise. Rao said the bank has appointed Boston Consulting Group to work out a comprehensive corporate strategy.
Canara Bank that had entered into an agreement with HSBC and Oriental Bank of Commerce for life insurance and incorporated Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd was expected to issue its first policy early next year.