Aided by a 23.5 per cent growth in net interest income, Canara Bank posted a 78.7 per cent growth in net profit to Rs 899 crore during the fourth quarter of 2010-11, compared with Rs 503 crore recorded during the corresponding quarter of the previous fiscal.

The bank's net interest income was Rs 1,973 crore (Rs 1,598 crore). And non-interest income grew 31 per cent to Rs 933 crore.

Commenting on the results, Mr S. Raman, Chairman and Managing Director, Canara Bank, said that during the fourth quarter of 2009-10, the bank had seen extraordinary income of about Rs 600 crore, and this fiscal, there was an additional expenditure of Rs 652 crore during the January-March quarter towards second pension and gratuity liability. “Bringing these two into consideration, our net profit growth would have been much higher. It is more than a splendid performance,” he said.

The bank's gross NPAs improved to 1.45 per cent (1.52 per cent), while net NPAs stood at 1.11 per cent (1.06 per cent). The bank's provision coverage ratio is at 72.99 per cent.

The 2010-11 fiscal

“Aggressive cash recovery, good funds management and 25 per cent growth in overall business” helped the bank to post a 33 per cent growth in net profit during the 2010-11 fiscal, said Mr Raman. Net profits stood at Rs 4,026 crore (Rs 3,021 crore), aided by a 37.7 per cent growth in net interest income, which was at Rs 7,823 crore (Rs 5,681 crore).

Canara Bank, which crossed total business of Rs 5 lakh crore during 2010-11, also made cash recoveries of Rs 2,032 crore during the year. The bank announced a 110 per cent dividend for the fiscal.

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