Canara Bank’s net profit for Q2 of FY10 rose by 72% to reach Rs.911 crore
Capital Adequacy and Asset Quality
Capital to Risk Weighted Assets Ratio (Basel II norms) worked out to a comfortable 14.46% vis-à-vis the regulatory requirement of 9%. Given still undiluted 73.17% Government of India holding, the Bank has enough headroom for need based capital augmentation under Tier I, signifying strongest capital position among peers to support the business growth.
Asset quality of the Bank was largely affected by the economic downturn. As at September 2009, the Bank’s Gross NPA ratio and Net NPA ratio was at 1.60% and 1.16% respectively. The Bank has made cash recovery of Rs.530 crore for the first half of FY10.
Credit Segments
As at September 2009, outstanding advances to the priority segments reached Rs.53026 crore, registering a y-o-y growth of 18%. With a credit disbursement of Rs.8931 crore to agriculture during the first half, outstanding agricultural advances rose to Rs.22583 crore, covering around 26 lakh farmers. Credit to agriculture recorded a y-o-y growth of over 20%.
Under Small, Micro and Medium Enterprises (MSME) segment, the Bank's credit grew by 33% y-o-y to reach Rs.27029 crore compared to a level of Rs.20323 crore a year ago.
Leading the nationalized banks, the Bank's education loan portfolio increased to Rs.2652 crore as at September 2009. Education loan portfolio recorded y-o-y growth of 30%, covering more than 1.5 lakh students.
The outstanding credit under retail lending operations rose by 16% to Rs.20608 crore as at September 2009, with a disbursal level of Rs.3291 crore during the first half of the current financial. Advances under housing (direct) recorded a good 25.4% growth to touch Rs.8230 crore. Housing portfolio, with a significant portion in priority ambit, constituted about 40% of the retail portfolio.
Expanding the coverage of financial inclusion in the country, the Bank has achieved total financial inclusion in all 26 lead districts spread across five States. The total tally under the mobilization of no-frill accounts rose to over 19 lakh since inception. The Bank formed 2.89 lakh Self Help Groups (SHGs) as at September 2009, with credit linking of 2.43 lakh SHGs.
Delivery Channels and Technology Advancement
The Bank is currently expanding its domestic operation by substantially scaling up its number of branches across India. The Bank has already opened 128 branches during the current financial. Total number of branches moved up to 2806 as at September 2009, including 3 overseas branches (London, Hong Kong and Shanghai) and an Offshore Banking Unit at NOIDA, UP.
The tally under Core Banking Solution increased to 1591 branches, covering a significant 87.5% of the Bank's business. With over 2000 ATMs, the Bank has a debit card base of 6.5 million as at September 2009. The number of branches offering Anywhere Banking (AWB) and Internet and Mobile Banking (IMB) services expanded to 2084 and 1591 branches respectively. Under the advanced payment and settlement system, all branches have been enabled with RTGS and NEFT facilities.
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(This is a press release from Canara Bank)
