Canara Bank Sets Up Four Corporate Service Branches

The bank is also planning to establish corporate connectivity among the top 200 branches and prepare a data warehouse as well. It is in the process of increasing the working hours of its branches and introducing seven-day banking in large number of branches by the end of this fiscal.

Canara Bank has already extended seven-day banking in 141 branches and introduced extended banking hours in 245 branches.

"We are planning to be more computer-savvy in the coming years," said Gupta. The bank already has 315 fully computerised branches and 565 partially computerised branches as in March 2000. "At present, 62 per cent of the total business are computerised and we want to raise this figure to 70 per cent by March 2001," Gupta said.

 

At present, the bank has no plans for a public offering. "We are waiting for the condition in the stock markets to improve," said the executive director. However, it plans to raise Rs 300 crore by way of tier-II capital through a subordinated debt issue by next month. The bank has a capital adequacy ratio around 9.7 per cent and post-debt issue, the ratio is expected to improve over 10 per cent by March 2001.

The next board meeting of Canara Bank will discuss a possible foray into the insurance business, Gupta said.

The total deposits of the bank recorded a growth of 14.4 per cent during 1999-2000 to reach the level of Rs 48,001 crore. The bank has targeted a growth of 14.6 per cent to touch the level Rs. 55,000 crore by the end of the current fiscal. The growth will enable the bank to reach a market share of 5.75 per cent. The global advances stood at Rs 23,547 crore in March and targets to reach the figure Rs 30,000 by the end of the current fiscal.

Canara Bank has reduced its NPA ratio from 7.09 per cent to 5.28 per cent in 1999-2000 and is planning to reduce the percentage below 5 per cent by March 2001. "We are not averse to compromise. It can be done for the cases whether it has already gone to the court or not," Gupta said.