Canara Bank has registered a net profit of Rs. 1,013 crore during first quarter of 2010-11, against Rs. 555 crore in the corresponding period in the previous year, an increase of 83 per cent.
Also, for the first time the bank's net interest margin (NIM) crossed 3 per cent as net interest income rose to Rs. 1,728 crore, recording a 34 per cent growth from Rs. 1,291 crore a year ago.
With this, the NIM has jumped to 3.01 per cent from 2.7 per cent in the previous year.
Announcing the results , Chairman and Managing Director A. C. Mahajan said the net interest income had touched Rs. 1,728 crore during the first quarter when compared with the previous year's Rs. 1,291 crore, an increase of 34 per cent. Also, the operating profit had increased to Rs. 1,483 crore from Rs. 921 crore, he added.
Stating that the bank “is riding on high growth trajectory — consistent growth in business and profit during the first quarter,” Mr. Mahajan said outstanding advances to the priority segment registered a 14.7 per cent growth to reach Rs. 57,621 crore adding that the bank's lending to the power sector alone stood at Rs. 21,000 crore in the quarter under review as against Rs. 11,600 crore during the corresponding quarter of the previous year.
On the core banking system (CBS), he said 2,681 branches of the total of 3,071 branches had already been offering CBS and the remaining branches would shift to CBS by this month-end.
Mr. Mahajan said that the bank aimed to reach an aggregate business of Rs. 5-lakh crore, comprising total deposits of Rs. 2.85 lakh crore and advances of Rs. 2.15 lakh crore in the coming quarters. The current aggregate business is Rs. 4.13 lakh crore.
The bank plans to open branches in Manama and QFC-Qatar.