Money

CANARA BANK LEADS IN REPUTATION INDEX

In a recent survey of India consumers conducted by Reputation Institute (USA), Canara Bank earned a Global Reputation Pulse rating of 73.34 placing it 8th on a list of the largest companies in India, Canara Bank's Reputation score is above the average rating of all Companies rated by consumers in 32 countries, and places Canara Bank in an elite group made up of the 200 best Regarded companies in the world. Canara Bank's global rank is 103. Among the only 4 Indian banks (all PSBs) in the first 200, Canara Bank ranked second below SBI (29th rank) and above BOB (175th rank) and PNB (178th Rank).
 
Surging Ahead
 
Bank's Net Profit surges to Rs.555 crore, recording a robust growth of 353% compared to Rs.123 crore recorded in the corresponding quarter of the last year. 
 
The Bank's aggregate business rose to a level of Rs.3,34,325 crore as at June 2009, recording a y-o-y growth of 26%.
 
Operating Profit of the Bank rose by 48% to Rs.1041 crore as at June 2009 compared to Rs.704 crore recorded during the corresponding quarter a year ago. The Bank has made a total provision of Rs.486 crore, including a provision of   Rs.216 crore towards NPA and Rs.75 crore for wage settlement.  
 
Aggregate business was driven by a 23.9% growth in deposits and 28.1% growth in advances (net). The aggregate deposits reached Rs.193657 crore, out which Rs.189745 crore has come from domestic branches, up from Rs.151413 crore as at June 2008, with growth of 25.3%. 
 
Advances (net) reached a level of Rs.140668 crore, out of which contribution by domestic branches was Rs.136777 crore, up from Rs.108231 crore as at June 2008, indicating a growth of 26.4%. 
 
Domestic business constituted 97.7% of global business.   
 
The Bank's core deposits, comprising retail and CASA deposits, recorded a y-o-y growth of 42.8%.  Credit to deposit ratio improved to 72.64% compared to 70.27% as at June 2008.  
 
Capital Adequacy Ratio (Basel II) stood at 13.59%, well above the regulatory minimum of 9%. Tier I capital ratio improved to 8.06%. The Bank's capital position is one of the strongest among its peers. Given the still undiluted 73.17% Government of India holding, the Bank has large headroom available under both Tier I and Tier II options to raise capital and support business growth momentum. 
 
Driven by a 26.8% growth in interest income from loans/advances, the Bank's total income reached Rs.5032 crore, indicating a growth of 22.8% over the corresponding previous quarter. The Bank's non-interest income grew by 28.5% to Rs.474 crore as at June 2009 compared to Rs.369 crore a year ago.  
 
The Bank has implemented several steps to control the expenses under various heads. As a result, the growth in operating expenses of the Bank was contained at 5.8% y.o.y 
 
Net interest income improved to Rs.1291 crore as at June 2009 from Rs.1019 crore a year ago, recording a y-o-y growth of 26.7%.  The Bank's Net Interest Margin (NIM) improved from 2.57% as at June 2008 to 2.70% at June 2009, registering an increase of 13 bps.  Return on average assets improved to 1.02% compared to 0.27% a year ago.  While Earnings per Share rose to Rs.13.54, Book Value increased to Rs.258.25 as at June 2009. 

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