Canara Bank Q2 net jumps 72% at Rs 911 crore

Canara Bank Q2 net jumps 72% at Rs 911 crore

Big treasury income boosts revenue

The growth in net profit came in spite of a 214 per cent increase in the provisions for the quarter under review at  Rs 308.60 crore, as against Rs 144.9 crore in the previous year.

The bank also reported a 26 per cent growth total income to Rs 5,602.10 crore in the September quarter as against Rs 4,447.97 crore in the corresponding period a year ago. Operating profit grew by 84 per cent  to reach Rs 1419 crore.

Canara Bank’s interest income in the September quarter was Rs 4091.16 crore accounting for 73 per cent of the total income.

The bank recorded huge surge of 163 per cent in other income at Rs 892.92 crore, against Rs 338.77 crore in the previous year, propelled mainly by a boost in the bank’s treasury income.  Announcing the results Canara Bank Chairman and Managing Director A C Mahajan said, “The bank attributes the rise in net profit for the September quarter to the gain in treasury income by churning the bank’s investment portfolio.”

Canara Bank’s aggregate business mix touched Rs 3,50,740 crore as on September 30, 2009, registering a y-o-y growth of 20.6 per cent. While aggregate deposits grew by 19 per cent to reach Rs 2,04,284 crore as on September 30, 2009 and advances (net) reached a level of Rs 1,46,456 crore, registering a growth of 22.8 per cent.

 The bank’s core deposits, comprising retail and CASA (current account and savings account) deposits, recorded healthy y-o-y growth of 52 per cent. With a savings deposit growth of 14 per cent, the ratio of CASA deposits to domestic deposits was at 29.19 per cent. Credit to deposit ratio improved to 71.69 per cent compared to 69.57 per cent as at September 2008. 

While business per employee of the bank rose to Rs 8.46 crore as on September 30, 2009, compared to Rs 6.86 crore a year ago, business per branch improved to Rs 125.00 crore compared to Rs 107.16 crore. With an addition of over 10 lakhs clientele during the first half of the current financial, the bank’s client base increased to 35.83 million as on September 30, 2009.  However, implying a slowdown in the economy, Bank’s non-performing assets rose by 59 per cent .