Financial Daily from THE HINDU group of publications
Tuesday, Apr 25, 2006
Financial Daily from THE HINDU group of publications Tuesday, Apr 25, 2006 |
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Corporate Results
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Public Sector Banks Money & Banking - Financial Performance Canara Bank net rises 21 pc Our Bureau
Poised for top slot: Mr M.B.N. Rao (left), CMD, Canara Bank, and Mr Alok Kumar, ED, at apress conference at the bank headquarters in Bangalore on Monday. - V. Sreenivasa Murthy
Bangalore , April 24 Public sector Canara Bank has reported a record net profit of Rs 1,343.22 crore for the financial year 2005-06 (FY06), up 21 per cent over the previous year. In 2004-05, the bank had reported a net profit of Rs 1,109.51 crore. Addressing a press conference, the Chairman and Managing Director, Mr M.B.N. Rao, said, " The profits were despite the large provisioning of Rs 1,269 crore last year. Canara Bank is now poised to become the topper among all the public sector banks in the country.'' The high net profit was driven by the increased operating profit of Rs 2,611.88 crore for FY06, from the previous year's Rs 2,585.33 crore. Netted for treasury operations, the operating profit showed a robust 20 per cent growth at Rs 2,500.44 crore (Rs 2,085.55 crore). Profit from treasury operations was just Rs 111.64 crore down from the previous year's Rs 499.78 crore.
The high operating profit was driven by increased income from core operations. Gross income of the bank in FY06 hit a milestone by touching Rs 10,089.03 crore from the previous year's figure of Rs 9,115.8 crore. Interest income during the period was Rs 8,711.51crore up from Rs 7,571.97 crore.
May raise Rs 4,000 cr
The bank, he said, hoped to raise anywhere up to Rs 4,000 crore through a combination of equity float and tier two issue. In FY 2006, the bank, however faced pressures from increased costs. Gross expenditure was Rs 7,477.15 crore from Rs 6,530 crore. The increase was mostly on account of higher interest costs due to increase in deposit rates. Interest expenditure rose to Rs 5,130 crore (Rs 4,421 crore). Mr Rao said interest margins were likely to come under pressure, if deposit rates were further hiked. The results pushed up the scrip to Rs 261.5, up 3.5 per cent, over Friday's closing.
More Stories on : Public Sector Banks | Financial Performance
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