BANGALORE: Canara Bank on Wednesday reported a net profit of Rs.1,008 crore in the second quarter ended September 30, 2010, an increase of 10.7 per cent over the same quarter in the previous year.
Announcing the results here, Canara Bank Chairman and Managing Director S. Raman said the bank had registered a 53 per cent growth in net income despite ‘muted treasury gains' during the quarter.
He said the bank had for the first time registered a net profit of more than Rs.1,000 crore in two successive quarters. Net interest margin was 3.16 per cent during the quarter.
While gross non-performing assets accounted for 1.49 per cent of all assets during the quarter, the net NPA ratio was 1.06 per cent.
During the quarter, the bank had brought all its branches under the core banking solution network. “This will enable us to improve efficiencies further,” Mr. Raman said.
Total volume of business amounted to Rs.4.25 lakh crore during the quarter. He said the bank was targeting a total business of Rs.5 lakh crore by the end of the financial year.
Mr. Raman said there were two main reasons for the increase in interest income. First, the bank had replaced Rs.11,000-12,000 crore of short-term lending with longer-term assets that yielded better results. Second, the bank had reduced its dependence on bulk deposits by Rs.10,000-15,000 crore during the quarter.
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