Canara Bank aims to reach aggregate business of Rs 8.50 lakh cr

Public sector lender Canara Bank is targetting to reach an aggregate business of Rs 8.50 lakh crore during this fiscal with plans to add 1,250 branches, a top official today said.

"The bank was aiming to reach an aggregate business figure of Rs 8.50 lakh crore with a deposit growth of 16-17% and advances growth of 19-20% by March 2015," bank's Chairman and Managing Director R K Dubey told reporters here.

During 2013-14 fiscal, the bank's business had touched Rs 7.22 lakh crore. Last year the GDP growth had dipped, there was slow down in economy and raising capital was a problem.

But the bank registered a 20.7% growth, opened 1,027 branches of which 80% was in rural and semi urban areas, he said.

The public sector lender will be adding 1250 branches this year, including 100 in Kerala, to increase its branch strength from 4,755 to 6,000 and ATMs from 6,312 to 10,000 by March next year, he said.

The bank was planning to raise capital of Rs 3,000 crore this fiscal to meet its capital requirement. "We may raise capital from government or from market or from bonds. As market improves, we will go for the best option subject to government and RBI approval," he said.

The bank has five overseas branches -- London, Leicester, Hong Kong, Manama and Shanghai and had plans to open 20 more branches abroad. Total business of the foreign branches reached Rs 43,0450 crore during the previous fiscal, he said.

It would be opening a branch at Johannesburg in South Africa and has plans to open branches at New York by June this year and 8 other international centres, including Dubai, Qatar, Frankfurt, Sao Paulo, Dar-es-Salaam and Tokyo, by march next.

On recruitments, he said 9,000 persons were recruited in various categories last year and 8,000 would be taken this year. The total staff strength of the bank was 50,000.

Asked about media reports that government wanted commercial banks to offer interest free loans of up to Rs 50,000 to victims of loan sharks, Dubey said "under no scheme loans can be given at zero rate of interest. Loans cannot be given as doles. Interest can be subsidised by the government", he said.

The bank was also aiming to reduce its gross NPA to touch approximately 2% and Net NPA 1-1.25% this year.