Canara Bank profit grows 11% in Q2

Canara Bank profit grows 11% in Q2

 Canara Bank Chairman & Managing Director S Raman. KPNThe bank reported a jump of 8.4 per cent in total income for the quarter at Rs 6,077 crore, against Rs 5,602 crore in the corresponding period in the previous fiscal.

The bank’s earnings from interest stood at Rs 5,577 crore for the period under review, compared to Rs 4,709 crore during the same period in the previous year. Net interest income for the second quarter rose by 52 per cent to Rs 2,003 crore compared to Rs 1,314 crore in the same quarter a year ago. The bank’s net interest margin stood at 3.16 per cent, up from 2.66 per cent in the same period a year ago.

Briefing reporters, Canara Bank Chairman & Managing Director S Raman said, “essentially, net interest income rose sharply  because of re-pricing of high cost deposits and replacing short-term advances which were given at lower rates of interest.” The bank’s capital adequacy ratio stood at 13.88 per cent, with Tier 1 capital at 8.82 per cent. It had witnessed growth of 23 per cent in CASA (current account, savings account) deposits bringing them to 30.10 per cent of total deposits in the current year, mainly due to aggressive campaign which saw opening of 16 lakh savings banks accounts.  

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