The Hindu Business Line : Highest safety rating for Canara Bank bonds

ICRA has assigned the `LAAA' (L triple A) rating to Canara Bank's proposed Rs 250-crore subordinated bonds programme while reaffirming the same rating to the bank's existing Rs 500-crore subordinate bonds programme.

The ratings, indicating the highest safety and a fundamentally strong position, also takes into account Canara Bank's strong retail franchise, improving profitability, low-cost deposit base, satisfactory capitalisation and comfortable liquidity.

ICRA expects Canara Bank's NPAs to increase in 2003-04 on account of the new norms for NPA recognition. In addition, Canara Bank has also increased its exposure in infrastructure projects during the current year. However with satisfactory capitalisation levels and strong operating profitability, ICRA expects the bank to withstand the adverse impact of changed NPA norms.

Centurion Bank CDs: ICRA has reaffirmed the A3 (A three) rating assigned to the Rs 300-crore certificate of deposit programme of Centurion Bank Ltd (CBL), indicating adequate safety in the short term. The rating continues to be on `rating watch' with developing implications pending capital restructuring under the aegis of Sabre Capital Worldwide Inc. ICRA has noted the new developments of capital restructuring, including the changes in the senior management of the bank.

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