Financial Daily from THE HINDU group of publications
Tuesday, Jan 24, 2006
Financial Daily from THE HINDU group of publications Tuesday, Jan 24, 2006 |
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Money & Banking
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Financial Performance Corporate Results - Public Sector Banks Canara Bank Q3 net rises 30 per cent — `Provisioning lowered profits' Our Bureau
Mr M.B.N. Rao
Bangalore , Jan. 23 CANARA Bank has reported a 30 per cent increase in net profit during the third quarter (Q3) of this financial year. The bank reported a net profit of Rs 356.29 crore during the quarter, up from Rs 273.98 crore in the same period last year. Speaking to reporters, Canara Bank's Chairman and Managing Director, Mr M.B.N. Rao, said the profits would have been higher at Rs 435.31 crore but for the provisions made for standard assets under the new guidelines of the Reserve Bank of India. "We made provisions of Rs 119 crore for all the three quarters to comply with the guidelines," he said. The profits were also higher on a sequential quarter basis. In the second quarter of this financial year, Canara Bank had reported a net profit of Rs 306.51 crore. The bank's operating profit for the third quarter was Rs 699.18 crore, up from Rs 610.06 crore during the corresponding period of the last fiscal. However, at least Rs 40 crore of these profits were driven by treasury profits — sale of investments in Q3. Gross income for the quarter was Rs 2,551.22 crore, up from Rs 2,230.73 crore during the corresponding period of the last financial year. Interest income during the period rose to Rs 2,240.07 crore, up from Rs 1,880.36 crore. Gross expenditure during the period rose to Rs 1,852.04 crore from 1,620.07 crore. The rise in expenditure was contributed by an increase in interest expenditure that rose to Rs 1,281.83 crore from Rs 1,123.71 crore in the year-ago period. The rise was largely on account of the increase in rates that were effected by the bank during the quarter on various categories of deposits. Mr Rao said that during the period the bank had managed to improve the quality of its deposits. Gross non-performing assets were brought to Rs 2,204.13 crore in the third quarter, down from Rs 3,546.84 crore in the year-ago period. During the same period, net non-performing assets were brought down to 1.20 per cent of the advances, from 2.3 per cent during the corresponding period of the last quarter. The reduction in the gross NPAs was largely helped by the cash recoveries of Rs 956 crore during the first nine months of the current financial year, up from the Rs 525 during the corresponding period of the last financial year. Canara Bank, Mr Rao said, was well on its way of achieving its business target. Global deposits grew 18.96 per cent on a year-on-year basis and advances grew 31.79 per cent.
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