Canara Bank Q2 net up 22%

BS 200 SCORECARD

Canara Bank's net profit for the quarter ended September 2004 grew 21.96 per cent over the corresponding quarter of last year to Rs 396.78 crore. However, this was achieved by cutting provisions by Rs 495 crore to Rs 178 crore. Profits from the sale of investment fell by Rs 56.3 crore or 37 per cent on a comparable basis, whereas interest income rose by Rs 94 crore or 5.4 per cent.

Operating profit on a comparable basis was down 5.68 per cent over the same period last year to Rs 575 crore from Rs 609.43 crore. Last year the operating profit at Rs 998.43 crore included an extraordinary income of Rs 389 on account of the government buy back programme. Total income during the period grew 3.4 per cent on a comparable basis, despite a 37 per cent fall in trading profit, to Rs 2,206.12 crore.

In the first half of the year, net profit at Rs 733 crore was up 26.16 per cent over the same period last fiscal from Rs 581 crore. Total income in the same period increased 4.67 per cent on a comparable basis to Rs 4,391.82 crore.

As on September 2004, the return on assets improved to 1.43 per cent from 1.28 per cent reported during the same period last year. NPA's at Rs 1,498 crore represented 3.09 per cent of total advances. NPA's stood at 3.28 per cent and 2.8 per cent as on September 2003 and March 2004, respectively. Capital adequacy ratio was at 13.95 per cent (13.27 per cent).

Advances, deposits and business grew 18.42 per cent to 48,441 crore, Rs 89,285 crore and Rs 13,7726 crore, respectively, in the first half of the year. Going forward, the bank is preparing a roadmap for overseas foray.

While it has applied to the RBI to open representative offices in Shangai and Dubai to add to the existing locations, RV Shastri, CMD said that the bank will consider acquiring small banks in Europe and US besides several Asian locations to start overseas opeartions.