Bangalore-based public sector lender Canara Bank has registered a year-on-year growth of 24.8 per cent in its global business at Rs 5,30,515 crore during the second quarter-ended September, 2011, compared to the corresponding quarter last year.
Total deposits increased to Rs 3,12,577 crore, with a growth of 25.4 per cent. CASA (current account, savings account) deposits were at Rs 80,775 crore, constituting 26.7 per cent of the domestic deposits. Savings deposits rose by 17.9 per cent year on year to Rs 64,043 crore. The bank added over 1.4 million SB clientele during the second quarter of this year with the help of special SB campaign and mobilization of accounts through the newly opened branches, S Raman, chairman and managing director said.
Net advances grew by 23.8 per cent to reach Rs 2,17,938 crore, up from Rs 1,76,071 crore as at September 2010. Credit to deposit ratio stood at 69.7 per cent.
The bank’s domestic business constituted about 96 per cent of the total business with 26 per cent growth in domestic deposits and 27 per cent growth in domestic net advances. The bank’s clientele base reached 40.04 million, comprising 35.8 million under deposit accounts and 4.6 million under borrowal accounts.
The bank’s credit growth at 24 per cent during the first two quarters of the year was higher than the industry’s growth and was broad based across major segments, such as retail, priority, MSMEs, industrial and infrastructure. Its retail-lending portfolio recorded a 23.4 per cent growth, to Rs 25,102 crore. Outstanding housing loan portfolio grew 35.7 per cent to Rs 15,837 crore, constituting over 63 per cent of the retail-lending portfolio.
Canara Bank’s credit to micro, small and medium enterprises recorded a year-on-year growth of 21.3 per cent to reach Rs 39,770 crore compared to a level of Rs 32,801 crore as at September 2010. Outstanding advances to the priority segments gew by 24.4 per cent to reach Rs 75,454 crore. Credit to agriculture touched Rs 32,796 crore, signifying over 37 per cent growth. Agriculture portfolio covers 3.29 million farmers.
Continuing its lead among nationalised banks, the bank’s education loan portfolio rose by 18.3 per cent to Rs 3,856 crore, with coverage of 198,000 students.
During the second quarter, the bank opened 160 branches to take the total number of branches to 3,437 including five overseas branches. It opened its fifth overseas branch at Manama, Bahrain during the quarter. “We have made a presentation to the United States for opening a branch in New York. If we get the approval, we will open a branch there in the next two years,” Raman added.
