Canara Bank posts all time high net profit

Bangalore, May 2 (UNI) Posting an all time high net profit of Rs 1,420.81 crore, leading public sector bank Canara Bank today announced a total business turnover of Rs 240,887 crore for 2006-07, up by 23 per cent over the previous year's mark of Rs 196,229 crore.

Announcing the results here, Bank Chairman and Managing Director M B N Rao told newspersons that the bank was planning a 20 per cent growth for the current fiscal, with the global business level crossing Rs 290,000 crore.

The bank, on an acquisition mood, was looking for possible banks in the North, West and Eastern region. Mr Rao said that with the Basel I norms in place by 2008 and WTO restrictions removed in 2009 opening up the banking business, there was a need for big Indian banks to cater to huge requirements within the country. ''Big, huge and large banks have to be in place by then,'' he said, not ruling out the possibility of merger of banks.

For quarter four ending March 31, 2007, the bank witnessed a 2.3 per cent rise in net profit at Rs 505.09 crore as against Rs 493.52 crore over the same period last year.

The financial institution's total income rose by 37.68 per cent from Rs 2,786.59 crore to Rs 3,836.71 crore in the fourth quarter.

Mr Rao said that in the financial year 2007, while the advances went up by 24 per cent to touch Rs 98,506 crore, deposits rose by 22 per cent to move up to Rs 142,381 crore.

He said the Bank had been prudent in its retail exposure with the year-on-year growth in retail lending contained at 20 per cent.

Retail portfolio as a proportion of net credit was also brought down to 17.84 per cent, which was in tune with the policy focus on re-balancing of credit portfolio. The process would continue during the current fiscal also and the retail credit would be well within 20 per cent. Priority would be given in home loans to existing customers and those seeking home loan of less than Rs 20 lakhs, he added.

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