Canara Bank posts marginal increase in net profit

Bangalore, July 20 (UNI) Canara Bank today posted a marginal 2.15 per cent increase in its net profit at Rs 190.93 crore for the quarter ended June 30, 2006, despite the income soaring by 23 per cent to reach Rs 2,770.95 crore from Rs 2,238 58 crore in Q1 of FY06 o Rs 2,770.95 crore for Q1 of last fiscal.

Bank Chairman and Managing Director M B N Rao, announcing the results, however said the net profit after taking into account the decrease in profit on sale of investments and additional provision on depreciation of investments would have been higher by 35.4 per cent compared to the first quarter of 2005-06.

He said the quarter saw the global business crossing the Rs 200,000 mark, registering a 29.4 per cent Year on Year. While deposits grew by 25.4 per cent, advances increased by 36 per cent, he added.

Mr Rao said the net Non Performing Assets was brought down within one per cent (0.91 %) from 1.67 per cent during the first quarter of fiscal 2006. The Net NPA level was Rs 727 crore, while the gross NPA had come down to Rs 1,738 crore from Rs 2,339 crore a year ago.

The Bank made a cash recovery of Rs 190 crore during the first quarter as against Rs.180 crore made in the same quarter last year.

He expected the bank to grow at 18.74 per cent during the current fiscal with the global business touching Rs 233,000 mark.

By the end of the year 1500 branches would have been covered under the Core Banking Solution and the number of ATMs increased to 2000.

UNI VK RG RKN1652