Canara Bank sees 25% rise in credit

Bank's net profit in the second quarter of 2013-14 fell by 5.3% to Rs 626 crore

Canara Bank is expecting a credit growth of over 25 per cent in the current financial year, while deposits are likely to grow by 17 per cent, a top official said in Bangalore on Wednesday.     

“We are expecting over a 17 per cent deposit growth in the current fiscal and in credit we are expecting over 25 per cent growth,” Canara Bank CMD R K Dubey told reporters on the sidelines of a conference on ‘Financial Inclusion for Reviving Growth’, organised by CII.     

Canara Bank’s net profit in the second quarter of 2013-14 fell by 5.3 per cent to Rs 625.94 crore on sharp increase in bond yields.     

Dubey said the bank is focusing on ensuring good service and prompt delivery as part of its growth strategy and it will emphasise on lending to the priority sector.     

“Priority sector, agriculture, MSME (micro, small and medium enterprises) are the areas we are focusing. New sectors such as road and infrastructure are also coming up (for borrowing),” he said.     

He said the bank has brought down net NPAs to 2.64 per cent in the second quarter.     

“...So we have worked hard to control the NPAs. We have improved recovery, as well as credit. Asset quality is controlled,” he added.     

On bank’s expansion plans, he said 500 branches have been opened so far in the current financial year and the bank is expected to open about 300 more branches before March 2014.