Canara Bank likely to post Rs. 700 cr. operating profit

By Our Staff Reporter

BANGALORE, APRIL 8. Canara Bank's gross advances have crossed the Rs. 25,000-crores mark registering a growth of 20.6 per cent over the previous year.

The bank may post an operating profit of more than Rs. 700 crores for 1999-2000.

With focus on containing NPA the bank has pictured a better performance.

Retail business also helped improve its business. The NPA was down to 6.3 per cent from 7.2 per cent last year. Measures are afoot to bring it down further.

The bank's advances were Rs. 25,200 crores. Out of this Rs. 700 crores were from retail lending, while outstanding credit exceeded Rs. 1,300 crores.

The credit deposit ratio was 52 per cent against 47 per cent, while deposits were Rs. 48,300 crores, a rise of 15 per cent.

Global deposits went up to Rs. 48,300 crores during the period from Rs. 41,959 crores, posting a growth of 15 per cent. Low cost deposits formed around 40 per cent of total against 37 per cent in the previous year.

The total foreign business reached Rs. 47,680 crores against Rs. 39,858 crores, a growth of about 20 per cent.

The total export credit amounted to Rs. 3,000 crores. Advances to the priority sector were Rs. 7,650 crores, forming 42 per cent of net credit.

Disbursals to agriculture sector were Rs. 1,700 crores against Rs. 15,64 crores.

Cuts interest rates

Canara Bank has cut its interest rates on all short term loans from 12.5 per cent to 11.75 per cent with effect from April 10, in tune with the policy changes announced by the Reserve Bank of India.

The bank had also decided to revise interest rates on domestic term deposits, NRE and NRNR deposits downwards with effect from April 15, the bank said in a press release.

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