Canara Bank reports highest net profit ever of Rs. 4000 crore

Canara Bank reports highest net profit ever of Rs. 4000 crore

Mangalore Today News Network

Mangalore, May 28: Canara Bank has made a net profit of over Rs. 4000 crore, the highest declared by the bank in any fiscal year. The net profit for this entire year witnessed a steady growth of 33 percent and reached Rs. 4026 crore, said Canara Bank Executive Director Archana S. Bhargava.  

Addressing reporters at a press conference held at Canara Bank on May 28, Saturday, Ms. Bhargava said that the net profit during the fourth quarter was Rs. 899 crore, the operating profit showed a year on year growth of 20.7 percent to hit Rs. 6,107 crore. The net income grew year on year by 37.7 percent.

The return on assets rose to 1.42 percent as against 1.30 percent on March 2010. The bank declared its highest dividend of 110 percent for 2010 – 11. The total business of the bank has increased to Rs. 506440 crore, which means a year on year growth of 25.4 percent. The bank’s total deposit grew by 25.3 percent to reach Rs. 293972 crore. The advances of the bank also reached Rs. 212467 crore, showing a year on year growth of 25.5 percent.

The bank also shows record cash recovery of Rs. 2032 crore during this year. The NET NPA ratio stands at 1.11 percent this year. The provision coverage ratio is at 72.99 percent above the 70 percent stipulated by the RBI. The return on equity is 28.26 percent, with the earning per share having risen by 97.83 from 73.69 a year back. The book value reached 405 as against 306 in March 2010.

The bank raised 1993.20 crore equity through QIP route in March 2011, with the cost income ratio standing at 41.98 percent in spite of absorbing all additional liabilities toward pension and gratuity, coming up to Rs. 663 crore this year. While the total additional pension gratuity liability is Rs. 3054 crore, Rs. 1028 crore has been charged to P&L during this year and the balance of Rs. 2026 crore has been amortized over a period of 4 years.

Ms. Bhargava said that Canara Bank has 2000 ATMs at present and intends to introduce 2000 more. She also said that the bank has allotted 27 villages in 3 districts and will expand banking services in many other districts.