Bangalore, India - Canara Bank's global business rose to a level of Rs. 266242 crore as at June 2008, recording a year on year growth of 12%, compared to Rs. 237866 crore as at June 2007. Aggregate business was driven by a 9.2% growth in deposits and 16.1% growth in advances (net). While aggregate deposits reached Rs. 156295 crore, advances (net) reached a level of Rs. 109947 crore. The Bank's core deposits core deposits, comprising retail and CASA deposits, recorded a growth of 20.4% year on year. Consequently, the ratio of CASA deposits to aggregate domestic deposits improved to 34.16%, an increase of 385 basis points (bps) over the corresponding quarter a year ago. Credit to deposit ratio stood at 70.35% ats at June 2008.

Mr. A.C. Mahajan, Chairman & Managing Director, Canara Bank has announced the Q1 results of the Bank in a Press Conference at Bangalore.

Mr. D.L. Rawal, Executive Director, Mr. A.C. Mahajan, Chairman & Managing Director and Mr. G.S. Vedi, Executive Director in a Press Conference at Bangalore

Operating profit for the quarter recorded a 15% growth to reach Rs. 704 crore compared to Rs. 612 crore for the corresponding quarter a year ago. Net Profit for the first quarter stood at Rs. 123 crore, after making a total provision of Rs. 581 crore.

Net Interest Income improved to Rs. 1019 crore as at June 2008 from Rs. 894 crore a year ago, recording a year on year growth of 14%. Net Interest Margin improved from 2.42% as at March 2008 to 2.57%, registering an increase of 15 bps.

Business per branch is also improved from Rs. 91.66 crore as at June 2007 to Rs. 98.75 crore as at June 2008. Bank's gross NPA ratio came down from 1.55% as at June 2007 to 1.31% as at June 2008, net NPA ratio declined further from 0.89% to 0.85%.

Outstanding advances to the priority segments registered a 12% year on year growth to reach Rs. 42359 crore.

Credit to SME segments recorded a 27% growth to reach Rs. 19173 crore compared to a level of Rs. 15106 crore as at June 2007.

In the sphere of education loan, Canara Bank continues to lead the nationalized banks with a loan portfolio of Rs. 1798 crore. Education Loan portfolio recorded 33.68% growth, covering more than 118927 students.

The Bank has formed 2.16 lakhs SELF HELP GROUPS as at June 2008 with credit linking of over 1.78 lakhs.

Number of Branches increased to 2696, with addition of 18 branches during the quarter. Apart from 111 specialized service branches, the Bank has 182 Extension Counters.

In a Significant feat, Canara Bank won 'First Rank' in India's Best Banks Awards under the category 'Strength and Soundness' for 2006-07.

FOR MORE INFORMATION CONTACT :

Mr. ANIL NAYAK
M/s. Canara Bank
Public Relations Officer
Bangalore, India
E-Mail : anilcnayak@canbank.co.in