Canara Bank Net Up 21 % To Rs 285 Crore

State-run Canara Bank has made a net profit of Rs 285 crore during 2000-01 compared with Rs 236 crore during 1999-2000, recording a growth of around 21 per cent.

The bank's new chairman and managing director R V Shastri told newspersons that but for the special voluntary retirement scheme offered, the net profit would have been higher by around 81 per cent.

The bank's operating profit rose to Rs 1,123 crore during 2000-01 compared with Rs 923 crore during 1999-2000. He attributed the increase in operating profit to rise in interest spread achieved through reduction in cost of working funds and an increase in other income. The yield on asset improved to 9.70 per cent from 9.54 per cent.

The interest spread improved to 2.83 per cent from 3.28 per cent, while interest income rose to 5,618 crore during 2000-01 from Rs 4,852 crore in 1999-2000. Non-interest income of the bank rose to Rs 918 crore from Rs 836 crore.

The bank's deposits during 2000-01 increased by Rs 11,069 crore to Rs 59,070 crore. The year-end capital to risk weighted assets ratio remained under 10 per cent at 9.64 per cent in 2000-01, a slight decline from 9.84 per cent on account of the cash settlement approach adopted by the bank.

The bank's advances during 2000-01 rose by Rs 4,285 crore to Rs 27,832 crore.

Shastri said the bank had managed to bring down the gross non-performing assets to Rs 2,243 crore in 2000-01 from Rs 2,334 crore.

As a result, the gross NPA ratio decreased to 7.8 per cent from 9.47 per cent. The net NPA went down to 4.84 per cent from 5.28 per cent during the same period.