Canara Bank targets 25% biz growth in FY11

Bangalore-based public sector lender Canara Bank is aiming at a growth of 25 per cent in its total business to Rs 5 lakh crore during 2010-11. The bank has achieved a 24.3 per cent growth in total business, to Rs 4.03 lakh crore, during 2009-10.

A C Mahajan, chairman and managing director, Canara Bank said, “We have crossed three important milestones during the just-concluded fiscal, 2009-10. Firstly, we have crossed the Rs 4 lakh crore business mark and opened 314 new branches during the fiscal. Thirdly, we crossed the Rs 3,000 crore net profit mark to touch Rs 3,021 crore, up 45.8 per cent over the previous year.”

The bank’s total deposits during FY10 grew 25.6 per cent to Rs 2,34,651 crore and net advances rose 22.5 per cent to Rs 1,69,335 crore. For 2010-11, the bank has set a target of Rs 5 lakh crore, comprising of total deposits of Rs 2,85,000 crore and advances of Rs 2,15,000 crore, a growth of 21.4 per cent and 26.9 per cent respectively, he told reporters, here today.

The bank’s core deposits grew 32.3 per cent during the year. The share of CASA (current account, savings account) deposits in domestic deposits was 29.85 per cent. Savings deposits recorded a growth of over 19 per cent. During the year, the bank launched a nationwide Savings Utsav campaign to mobilise higher savings deposits. The bank could add 1.6 million new savings accounts during the campaign period.

He said the bank would continue to focus on core business, with the objective of augmenting profits and profitability.

A dividend of 100 per cent, amounting to Rs 410 crore, was declared by the board of directors compared to 80 per cent declared last year.

Advances to priority sector reached Rs 59,310 crore, recording a year-on-year growth of 21.6 per cent and accounted for 43.92 per cent of the adjusted net bank credit. Credit to agriculture touched Rs 25,052 crore, a growth of 24.4 per cent covering close to 3 million farmers.

Canara Bank’s credit to micro, small and medium enterprises grew by 30.4 per cent to reach Rs 31,074 crore compared to a level of Rs 23,823 crore a year ago. The bank opened nine exclusive microfinance branches in urban centres to cater to the requirements of the urban poor, Mahajan added.

During the present the bank aims to open a representative office at Sharjah in addition to RBI approval already obtained for nine international centres.